Question-and-Answer Session
Operator
Thank you. (Operator Instructions). Thank you. Our first question comes from Katherine Lu of Oppenheimer. Please go ahead with your question.
Katherine Lu
Hi, good morning. Thank you, for taking my question. First of all, I just want to ask a question regarding to your sales force deal in the pharmacy channel. Now, with SoluCLENZ Rx Gel launched. Do you see and we should be expecting more sales force deals for the rest of the year or you think the sales force number is picking up and to take care of the product.
Steven Carlson
Thank you Katherine, this is Steve. In response to your question, we believe we are right sized, the sales force on the therapeutic dermatology does support SoluCLENZ with the 45 people, we have done that by specifically targeting through IMF, the high volume therapeutic dermatologists that write the majority of prescriptions in this segment.
Katherine Lu
Okay, thank you. And with this product launch, is it good for us to assume there will no new product launches for the rest of the year?
Steven Carlson
As we have discussed before Katherine, we don’t provide guidance on timing of new products, what we have committed to is at least new product launches per year. If another opportunity represents itself within our pipeline to launch additional products, we’ll do so, and as we have in the past announced that at the time of launch.
Katherine Lu
Okay, I see. Then I would like to ask a question on the Nu-Derm and the growth of Nu-Derm seems to come back a little bit compared to the first quarter. I am just wondering; have you seen anything different in the second quarter compared to the first quarter in terms of the ordering pattern. If it’s just a result of the sales force refocus and also if you can give a little bit more detail on the DTC awareness campaign about, like how long it will last and what kind of financial impact it will make to SG&A that will be great? Thank you.
Steven Carlson
Yeah, in reference your questions relates to Nu-Derm’s trend from Q1. I think as we’ve reported, Katherine, in Q1, we had a change in ordering volumes with our larger accounts, as we’d indicated, we certainly were feeling some impacts of the economy at that level. I think, we had a very excellent Q2, as it relates to focus of our sales organization and coupled with that as you had indicated, we’ve invested strategically in a direct consumer awareness campaign at multiple levels between print advertisement as well as web-based and we think that’s an appropriate investment to continue to drive growth in this segment and create overall awareness to the Obagi brand and specifically to the condition and enhanced systems. Again at this point in time, we are not providing any outlook as to how long we will continue the DTC campaign awareness, we expect to see good returns on those investments and we’ll adjust expenses going forward accordingly.
- To read the full transcript on Seeking Alpha, click here »
