Question-and-Answer Session
Operator
Thank you. (Operator Instructions). And, we will go first to Donald Ellis with Thomas Weisel Partners.
Donald Ellis
Good afternoon guys. I have a few questions. First for, I guess are on Sular. Can you just kind of give us an update on where the wholesalers and pharmacy stocking goes with the old versus new formulation Sular? And then what percent of the managed care programs have you signed agreements with? And give us an idea thirdly on any price differentials between the old versus the new formulations?
Edward Schutter
Yeah. Hey Don, this is Ed. As far as the Sular conversion managed care plans, we essentially have the exact same Tier 2 coverage that we had with old Sular, which is greater than 70% of lives in the US. So that’s exactly the same and may in fact be a little bit better in some instances. As far as the pricing, it is the same price as the old Sular, there is no differences there. And then as far as the supply, supply is running low of the old Sular and in fact we will probably take steps in the near future to facilitate a more quicker conversion in the marketplace.
Donald Ellis
And then, Darrell, a question for you regarding gross margins. You guys tend to run pretty flat gross margins in the first, second, and third quarters of the fiscal year and a little high in the fourth quarter. Are we going to see that in fiscal ’08?
Darrell Borne
Yeah, assuming that we continue with the price increases that we have done historically, yes, you would see higher gross margins in the fourth quarter. Now keep in mind too, with Twinject, the margins on that product are a little bit lower. So as that impacts the sales mix that will have some impact, but I would assume we would have similar gross margins going forward.
Donald Ellis
Okay. And last question regarding the epinephrine market, you mentioned it's been growing a figure would you say 7%?
Darrell Borne
17.
Donald Ellis
17%.
Darrell Borne
Yeah.
Donald Ellis
How much of that is units versus price?
Darrell Borne
It's only -- price only accounts for about 6 or 7% of that annually. The rest of it is units.
Donald Ellis
Great. Thank you very much.
Darrell Borne
Okay.
Operator
Thank you. We will go next to Annabel Samimy with UBS.
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