Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Cory Kasimov with JPMorgan.
Cory Kasimov – JPMorgan
Hey, good afternoon guys. Thanks for taking the questions. Actually, my clinical questions are basically answered last week at your Breakfast, but some financial ones here. First of all, can you discuss the plans to draw down the remaining loan from Al, would you do this all at once, or is this going to be gradually throughout the year as needed?
Matthew J. Pfeffer
It would be gradually throughout the year as needed. You know we get keeps it from having to draw it all at once and frankly what the interest on money we don’t need before we need it.
Cory Kasimov – JPMorgan
Okay, so all right. And then in terms of R&D budgeting for 2009, Matt, do you said that you expect the burn to decline by 30% to 40%, but could you give us a little bit more clarity in terms of the contribution from a manufacturing scale up and how that may contribute to R&D spending? And I mean, so you think in the fourth quarters as a decent run rate going forward?
Matthew J. Pfeffer
It’s just going to be a little lumpy, but that’s not a bad estimate I think you?ve seen most of the ramp up in the manufacturing are already built in. We should be able to see reductions pretty much in all areas, but yeah the manufacturing will stay more stable.
Cory Kasimov – JPMorgan
Okay and then lastly, as it relates to Hakan’s comment on the cost efficiency of AFRESA, can you guys talk at all about where you expect the gross margins for the product ultimately come out maybe how you are thinking about pricing at this point and given that you are maybe just about a year away from commercialization? Thanks.
Alfred E. Mann
Well we have during actually 2008, met with managed care companies that was responsible really for about 30% of covered labs in the U.S. and what I can tell you at this point in time is knowing what the – that the reimbursement is in terms of tearing and also in terms of the cost did by rapid acting insulins. We feel that we are able to successfully compete in the space where rapid acting insulins are at this point in time from a cost point of view and the reimbursements.
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