Question-and-Answer Session
Operator
(Operator Instructions)
Debra Crawford
While we're waiting for questions, I'd like to mention we have some conference we'll be presenting at in the next several weeks, the BMO Capital Markets 9th Annual Focus on Health Care Conference this Wednesday, August 5th at the Millennium Broadway Hotel in New York City, the Thomas Weisel Partners Annual Health Care Conference on Wednesday, September 9th at the Four Seasons Hotel in Boston, and at the UBS Global Life Sciences Conference at the Grand Hyatt Hotel in New York which is taking place September 21st to the 23rd. If you're attending any of these conferences we invite you to meet with us in person. A webcast of our corporate presentation will also be available on the Santarus website.
We're now ready for the first questions.
Operator
Your first question comes from Annabel Samimy – Thomas Weisel Partners.
Annabel Samimy – Thomas Weisel Partners
On ZEGERID, it seems pretty clear that ZEGERID is slashed sequentially because the prescriptions had gone up a certain amount, so can you give us an idea of what may be driving that? You had mentioned the Medicaid portion of the business is not as profitable. Is that potentially putting pressure on it and what component of the business is Medicaid?
Debra Crawford
Just to clarify your question, I thought you indicated that you thought sales were down sequentially.
Annabel Samimy – Thomas Weisel Partners
Slightly up sequentially.
Debra Crawford
They're up slightly.
Annabel Samimy – Thomas Weisel Partners
Essentially flat if you're rounding, so can you give us a better idea of what may be driving that?
Debra Crawford
I think you mentioned it and Bill can add to this, but we are seeing a little more business coming from the Medicaid component of the market and that has had an impact on the overall value of a prescription. That really is an element of why we've decided to look at moving outside of that business, just the net pricing of Medicaid has become quite reduced. And that is one factor, although I think generally speaking, our overall ASP is pretty similar quarter to quarter.
Annabel Samimy – Thomas Weisel Partners
How much of your business is Medicaid?
William Danby
It's about 8% to 10%. And that will kick in more significantly in terms of withdrawing from that business in October.
Debra Crawford
There's always a slight difference between shipments and prescriptions and so you have modest changes that can be occurring in the channel inventory so there might have been a slight decrease in the second quarter channel inventory but generally we feel the prescriptions were tracking the shipments in both quarters.
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