But typically, the adoption curves are slower here in cervical dystonia than what you would see in aesthetics. But now in aesthetics, you’ve got so many different variables. And so, we will continue to kind of analyze that and look forward to getting this data back from preview to then be able to provide what we think will be the right kind of adoption metrics on the therapeutic side.
Annabel Samimy: Okay, great. Thank you.
Operator: Our next question comes from Tim Lugo with William Blair. Your line is open.
Unidentified Analyst: Hi, this is [Wachlan] on for Tim. Thanks for taking the questions. I guess first, just Toby, it looks like you’re sort of being pretty disciplined on the expense side, but you’ve obviously got the restructuring and then you’re ramping up with the CD launch. So should we be thinking about the Q3 numbers as reasonable run rate for the next few quarters, or are there more changes to expect there? And then on the therapeutic side, I think you said you had about 150 patients. I know you mentioned you’re targeting 30 practices. Did you have a target patient number in mind that are you sort of generating revenue from these patients through insurance during the PrevU program?
Toby Schilke: Thanks. This is Toby. I’ll take your first question and turn it over to Mark and Dustin. So, on the expense side of things and the guidance, we’ve provided annual guidance of 315 to 335 from a non-GAAP perspective for the course of 2023. And obviously then that is the extent of our guidance right now. However, as Mark and I have said on our prepared remarks, the exit from the OPUL business provides us some optionality with the $20 million that we’re annually investing in the OPUL business, so more to come on that one.
Dustin Sjuts: This is Dustin. On your second point, we’ve treated more than 150 now. You mentioned revenue from these patients. I want to be clear that these are patients that have been sampled. The goal of this program is not to generate revenue potentially through this channel or in the early phases. Now, will some of these providers begin to start testing when we have that permanent J-Code and others utilization kind of in a non-sample setting? We do think that will happen in the first part of next year, but ultimately that’ll be relatively slow because it is those 30 providers. I think as we start unlocking larger channels like federal and others, we’ll be able to provide some more kind of input as it relates to kind of what that adoption looks like.
But from an overall PrevU perspective, we’d anticipate anywhere between 200 and 250 or so patients that are going to be utilized through this program. And remember, it’s not just to push patients to the first start, but it’s really in cervical dystonia to get them to experience a couple different treatments because of that titration that typically happens. A lot of these patients that are actually being put on to DAXXIFY have already been titrated to significantly higher doses than their starting dose of other neuromodulators. And so they’re coming back in now at DAXXIFY with a dose that potentially is different than what they’re on now today with some of the neuromodulators. And so, it’ll be understanding that trajectory over a couple cycles, not just first starts like we saw on the aesthetic side.
Unidentified Analyst: Great. Thanks.
Operator: Thank you. Now turn to Uy Ear with Mizuho. Your line is open.
Uy Ear: Hi guys, thanks for taking my question. Can you talk a bit about on the patient’s level, whether the new pricing strategy is being passed on to the patients and at what level? I just wanted to get a better sense. That’s my first question. I guess, in this quarter, it seems that you’ve increased about 500 accounts. And just wondering if that’s driven primarily by RHA more or by DAXXIFY? Thanks.
Mark Foley: Yes, Uy. So first on the pricing program and whether or not that’s being passed on to the patients. I mean, that’s our expectation and that’s the positioning that we’re taking and the whole justification and rationale for the price change that we took based on feedback, which was, hey, I like the product. As I started attaching a premium, it makes for a longer and more involved switch discussion and then sometimes expectations. And so, when we onboard new accounts or we go back to existing accounts, we let them know that we’ve really adjusted this price so that you can price it to patients at the same level as your current toxins and get familiarity and experience and get more comfort with it. So that is the hope.
I’m sure not all accounts follow that. Some perhaps take maybe a modest premium or whatever, but that’s what the whole reason that we made the change. And I would say a majority of them are doing that. And we think that that’s the right way to get a lot more familiarity and experience with the product because there are going to be subtleties with all these products that they need to sort of really optimally work our way through. And then the second question.
Uy Ear: I just wanted to know the account increase in the quarter, whether that was driven more by RHA?
Mark Foley: Yes. We said, last quarter we said we were at around 6,000 accounts. Now we’re at 6,500 accounts. That’s total. And then we said at earnings Investor Day that we had less than 2,000 DAXXIFY ordering accounts, and then this quarter we’re 2,500. So I think you’re seeing good growth in the DAXXIFY accounts. So that’s going to probably represent a lot of the growth in the quarter.
Uy Ear: Okay. Thank you.
Mark Foley: Thank you.
Operator: We now turn to Serge Belanger with Needham and Company. Your line is open.
Serge Belanger: Good afternoon and thanks for taking my questions. First one, can you talk about how the third quarter was trending in terms of vial volumes ahead of the price change? And then secondly, when you launched this product, you launched it with a catchy DTC advertising of breaking up with BOTOX. I think emphasizing the switch opportunity for DAXXI. Just curious now with the lower price, whether you think you’re better positioned to catch the new patients coming into the aesthetic market? Thanks.
Mark Foley: Yes. Thanks, Serge. Maybe I’ll take the second one first. In terms of how we’re positioned in the marketplace with this price change and what does that mean for adoption and the DTC program that we did. As I mentioned earlier, we believe that the best way to switch a patient is at the practice level. If the practice is bought into, I like this product. I believe it’s something that I want to offer my patients because I think there’s value that I can provide to them that they’re not currently getting out of their conventional neurotoxin. We believe that the credibility that the injector has far and away is more valuable than a consumer coming in and asking about something that is new. So we spent a lot of our time and effort arming the entire staff with materials about this new product.
And then the value for the injector is they see that, hey, I can give my patients something that they don’t have today. Most of them are trying to figure out how do I give them the best value for the dollar. And then over time, it will give them another option in terms of something they can either charge a premium for once they have experience and feedback from patients, or it’ll give them more value knowing that most of them come in less than two times a year. So we’re going to continue to lean in at the practice level to make sure that they have the right tools on the switch. And we think that the pricing lever was a biggie in terms of facilitating that switch. And so it’s less about trying to capture new and more about allowing them or giving them the right tools to switch the patients over.
