Bill Peters: No, because remember, because BAQSIMI, that we had our net economic benefit was at 100% margin. So the net economic benefit that we get next quarter will also be at 100% margin. But – as we move forward, we will have – we’ll start incurring the revenues and the cost of goods. So in the future, our revenue number goes up, but our cost of goods number goes up as well So instead of BAQSIMI being 100% margin product, it’s going to be something that’s well above our corporate average, but it will still have a cost associated with it once we begin distributing in locales, around the world. And I know that’s a little bit complicated and a little bit – it’s going to be country-by-country basis. So it’s not all – it doesn’t all happen at once.
Tim Chiang: Right. Got it. I think historically, what U.S. BAQSIMI sales had made up about, what, 80% of the total BAQSIMI high?
Bill Peters: That’s correct.
Tim Chiang: Okay.
Operator: Thank you. Our next question is from David Amsellem with Piper Sandler. Please proceed with your question.
Unidentified Analyst: Hi, this is Tim on for David. Thanks for taking the questions. A few from us, and apologies if there’s a little overlap here. So on BAQSIMI, I guess, stepping back, what’s your overall view on the glucagon rescue market growth both near term and longer term. And with respect to your sales force, what are you thinking in terms of sizing? Is that going to be a contract sales organization? Or will it be internal? And when do you expect for them to hit the field? And then second, on the glucagon injection generic. Could you speak to how penetrated you are in the institutional setting and the extent to which you’ve been able to leverage our expanded manufacturing capacity. And over time, how big do you think the opportunity is in that setting?
And then last, on the shortage products, can you talk to the extent to which you’ll continue to benefit from shortages in 2024? I know you called out those three products that the competitors aren’t making right now, but beyond that, what is the impact of the shortage is going to look like next year relative to this year? Thanks.
Dan Dischner: Okay. So the first one I got was overall glucagon growth. So as we’ve said, we think the BAQSIMI is going to grow for us, going to be somewhere in the $250 million to $275 million revenue range product for us at peak. So it’s a really strong growth from where we are today, but just some are annualizing around $150 million in revenues. We do think that some of that market share comes out of the traditional glucagon, the generic glucagon that we’re selling today. However, our current glucagon generic is also used as a diagnostic aid. And because it’s used as a diagnostic aid, that doesn’t go away with the conversion to BAQSIMI because it’s – the BAQSIMI is not indicated for that. On the sales force, we haven’t said how many sales people we have, but we do have said that we have a contract sales force that we did engage.
They began selling on October 1, so they’re out there right now marking the product, so that we’ll have that expense in our P&L in the selling expense line in from now on. We’ve also repurpose some of our internal sales force to be BAQSIMI salespeople as well. So they’re also on the job, but they’re already doing this. They trained – all of these people were trained during the third quarter and ready to hit the ground running at the beginning of the fourth quarter. So that’s definitely something that’s ongoing. On the glucagon injection, the segmented I think the glucagon injection sales about 31% in the retail space and about 69% in the nonretail space. So that’s the different breakup there. And then what was the last question, shortage on – the shortage products.
We see shortage products every single quarter for as long as we’ve been reporting our sales. So somewhere, some products, somehow is always in need currently because of certain issues, we have a little more shortage products, and we’re just happy that we planned accordingly and are able to meet those needs at this time.
Bill Peters: Yes. And then just going back to elaborate on what Dan said, I’ve been at the company now 9.5 years and every quarter, we’ve had some benefit from other competitors having shortage problems. And it’s frequently the dextrose and the sodium bicarbonate, sometimes it’s epinephrine, sometimes it’s phytonadione, and sometimes it’s lidocaine, sometimes it’s atropine or calcium chloride. But there’s always something that’s going on in the market. And because we’ve built that extra capacity about three, four years ago, we’ve been able to capitalize it on it over the last several years. And it’s something that we did as a strategic decision. And it’s working out well for us.
Unidentified Analyst: Great. Thanks for taking the questions.
Operator: Thank you. There are no further questions at this time. I would like to hand the floor back over to Mr. Dan Dischner for any closing comments.
Dan Dischner: I want to thank everyone for joining us today. We would like to characterize 2023 as a year of execution amongst our key high-margin products and the further enhancement of our company portfolio within the proprietary product segment, especially with BAQSIMI. We look forward to updating you all again. Have a great day.
Operator: This concludes today’s conference. You may disconnect your lines at this time. Thank you for your participation.
