Question-and-Answer Session
Operator
Thank you. (Operator instructions) We will take our first question from Scott Hirsch with Credit Suisse.
Scott Hirsch – Credit Suisse
Good evening guys, how are you?
Arthur Przybyl
Hi Scott.
Scott Hirsch – Credit Suisse
Handful of questions for you. I want to start with the vaccines, you mentioned that you have 1500 hospitals in all the major distributors, can you give us a sense of how contracting goes on at this point, what is less under contracts for the rest of this year? When do these GPOs re-contract?
Arthur Przybyl
Sure, it is an excellent question. Contracting with GPOs is typically for several years, two to three years in duration. So we are on every major group purchasing organization contract in the United States for our Td vaccine and our ability to continue to achieve market share gains in hospital market is dependent upon our sales reps converting hospitals from a competitor’s product over to our Td vaccine through contract compliancy and through a greater affordability or lesser cost than we typically offer as compared to our competitor. We continue to see market share gains in the hospital market on a monthly basis and we have seen that also in the month of October which is going to reach a record number of throughput sales in the hospital market, that is relevant because Td vaccine is somewhat seasonal but obviously we continued to see market share gains as we have grown from in essence a launch of the product in January. Our market share in hospitals now is approaching 25% market share in the United States. In the office space physician market, we have relationships with every major distributor in the United States who is buying our unit dose vaccine and we are beginning the transition of the office based physician market from the multiple dose vial product to the unit dose vial product through our major distributors. Some examples of major distributors in the vaccine market would be Henry Schein Physician Sales and Service, McKesson General Medical
and several others that I could name. Then our CDC contract which we initiated for a public health and government purchases I believe in July of this year is good for one year and again we continued to see increases in Td volumes purchased directly from us through the CDC contract on a monthly basis but that contract still has quite a way to go certainly before it reaches maturity. We are not yet at our stated market objective for Td vaccine which is 50% and so from our perspective we still have the opportunity for additional revenue increases over the next year and certainly several months.
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