Question-and-Answer Session
Operator
Thank you so much. (Operator instructions) We will go first to Scott Henry with Roth Capital.
Scott Henry – Roth Capital
Thank you, Carol. Just a couple specific questions and then the big picture questions. And I might have missed a couple of things, but could get on a little late. First in Q4 you reported about $73.3 million in product sales, what was the split up? Is most of that Glumetza? When I say most, I mean 98%?
Carl Pelzel
Yes. Most of it is Glumetza Scott.
Scott Henry – Roth Capital
So 7 – let’s say it is $7.2 million Glumetza that looks a little above script, was there deferred revenue that popped in that quarter as well.
Carl Pelzel
Tammy.
Tammy Cameron
Scott, I can answer that for you. Yes, we did – on Q4, we put the revenue recognition in Q3, which was a $6.3 million increase. Q4 would be primarily –
Carl Pelzel
I think in Q4 we have began to see over the build in inventory of scripts come up so the pipeline is little bit fuller – has been, and I think that is the result both retailers and wholesalers recognizing that we now have a 350 million sales force on board, so they are more likely to stock more inventory.
Scott Hendry – Roth Capital
And Carl, what did you say was your first goal in 2009? I had the other four, but the first the first.
Carl Pelzel
That as it has been that is to maintain and build cash.
Scott Hendry – Roth Capital
Okay. You know I guess – I am a huge fan of yours and I think you really did a tremendous amount in 2008 and I give you all the credit in the world for that, but when I look at your goals for ’09 you may look a little conservative to me, I mean the three studies having results that is going to happen. Would you care to list any stretch goals? I know you guys had a pretty good ’08, you certainly want to keep the pressure up?
Carl Pelzel
Well absolutely and to be honest any additional stretch goals might involve an additional expenditure for example doing additional clinical trials in earlier programs and frankly in this environment I would like to wait and see the results for the PHN trial, which if positive will give us a feeling of comfort that they will be able to capture the additional 70 million in free commercial milestone and then like to see the results obviously of the hot flash trial before I go forward and spend additional cash. So, we have internal, very aggressive internal goals as it relates to expense reduction and manufacturing activities getting ready for Solvay’s demands and bringing new products to a point where we would be spending external dollars. So, we have a strong series of programs internally identifying the next series of products, but I really don’t want to spend external dollars on those until I see the results of these major events in 2009.
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