Good morning. Please welcome to the stage Chief Financial Officer and EVP Corporate Development, Lauren Silvernail.
Wonderful to see so many friendly faces in the audience. Welcome to everyone that's here. We're delighted to have you. I'm Lauren Silvernail. I'm the Chief Financial Officer and EVP Corporate Development at Evolus. What I wanted to do is make sure if you haven't met the management team, we've tried to get around and meet all of you. Make sure you do, you'll see all the faces as David presents. Make sure you get a chance to talk to us and ask us your questions on our launch and on the company. I want to thank those that are joining us by webcast today. We appreciate you being on the line. There are slides online at www.evolus.com, and the webcast can be replayed for about 30 days. Of course, I have a few housekeeping items.
First, I need to make my lawyer happy and tell you about our forward-looking statement. We will be making a number of forward-looking statements today. These statements are based on management estimates, current expectations, and involve risks and uncertainties. These could cause the stock or other things to trade and be different materially from actual results. We ask you to review our risk factors and other updates in our SEC documents that are filed. We take no obligation to update forward-looking statements made today. Just to continue the legalese, we promise this will be more fun after I'm done. Today, we are discussing our product, Jeuveau. Jeuveau carries a box warning. We are presenting important safety information about the product on this slide, which is number four in the presentation.
You can access this important safety information as well as the prescribing information, including the box warning and medication guide on our website at evolus.com or jeuveau.com. We have planned a very exciting agenda for you today. We will start off with David Moatazedi, who will give you the latest update on Evolus and where we are with Jeuveau. Michael Jafar, our Chief Marketing Officer, will take you through our U.S. go-to-market strategy and our launch plans. Rui Avelar, our Chief Medical Officer and Head of R&D, will briefly discuss our transparency clinical data set, followed by a panel of experts whom we are delighted to have with us today. These experts will be taking questions from the audience, get ready with your panel questions, please. Lastly, David will wrap up and we'll have a Q&A with company management.
Now it's my sincere pleasure to introduce David Moatazedi, the President and CEO of Evolus. David just celebrated his one-year anniversary at Evolus. He came to us from Allergan, where he was the head of U.S. Medical Aesthetics Division for Allergan, which included facial aesthetics, plastic surgery, and skincare products. Earlier in his career, David worked in various leadership capacities at Allergan for 13 years after being a sales manager at Novartis' Dermatology Division. Thank you very much, and I'd like to bring up David Moatazedi.
Good morning. It's a pleasure to be here with you all and for the first time to unveil our commercial strategy. As you all know, for the last year, we spent building our plans internally and being strategically quiet externally. For the first time today, you'll hear from our Chief Marketing Officer, Mike Jafar, about how we plan to introduce this new technology and a new company into a category that has not seen a technology enter in nearly a decade. I'm pleased to announce today that we will be launching Jeuveau. The launch date for Jeuveau will be next Wednesday, May 15th. On that date, we anticipate shipping product. Over the course of the next week, you'll hear about our final preparations in anticipation of that launch on the commercial team.
The media activity that will occur in anticipation of that. Of course, as you can imagine, with the number of customers injecting neurotoxins in the U.S., giving those customers a week lead time in order to begin preparing and booking their patients is an important last step before we commercialize. For those of you that don't know Evolus, the company was formed six years ago. The root of the name Evolus was around this concept of evolving with the market. The original founder was the former head of R&D at Allergan, developed this neurotoxin and focused it solely on this category of medical aesthetics. Being dedicated to this category enables us to operate differently.
What you will see today is a company that over the last 12 months has been optimized to focus in this category and positioned against what we believe is a much larger opportunity, which is performance beauty. I'll tell you a little bit more about what performance beauty means. Earlier in 2018, the company did an IPO. Many of you know this was in 2018, one of the most successful healthcare IPOs. Over that time, roughly after the IPO, we built out the leadership team. I'll speak to the team that we've hired on, but there's a depth of experience within this group. Collectively, roughly 70 years of experience in medical aesthetics that builds out what you will see today in our commercial plans. We also have a focus around the customer. Everything we do surrounds that customer group.
Over the last 12 months, we held 12 different advisory board sessions with different groups of customers to understand how the market's evolved and how we could better position a company to meet their needs. The customer is at the center of every activity that we deploy, and you'll see that reflected as you see the plans. We also have a collective database now of 2,100 patients from multiple clinical trials that have been branded transparency data. The reason we branded it transparency is because in this category, data's been reflected in many ways, whether it's a one-point difference versus placebo, a two-point difference, or for the first time, the largest phase III head-to-head study versus the market leader. Collectively, this data set is profound.
It moves the market, and we've shared it in advisory board meetings, and doctors have a lot of confidence in this data set as they make that decision to use Jeuveau. The R&D team has delivered. We've obtained regulatory approvals now in the United States earlier this year, in Canada, and we received a positive opinion in Europe just this month. Last month, rather. We expect an approval by the middle of this year in Europe. We also have built out a digital platform unlike anything the market has seen. We recruited talent from the Bay Area, from companies like Google and Facebook, and up in the Northwest with companies like Microsoft. A team with no healthcare experience, but an expertise in disruptive innovation.
Today, we will preview what that technology does and why at scale, we believe that we can be more efficient and we can have a more profound impact on the category with a single focused digital platform that powers every aspect of our company. We've also partnered with the major societies. The Plastic Surgery Society, where we published in the Aesthetic Surgery Journal, the largest head-to-head study versus BOTOX last month, as well as the Dermatologic Society, where in Dermatologic Surgery, our U.S. pivotal data was published. We have a premier sponsorship level with all major societies, and we have a very active presence, including next week at a major medical meeting, the American Society for Aesthetic Plastic Surgery, where for the first time, we will have a full commercial presence.
We also, thanks to Lauren and the finance team, completed $100 million in financing earlier this year, putting Evolus in a position where we have adequate capital to enter one of the largest and fastest-growing markets in medical aesthetics. Our footprint at launch is meaningful. We've positioned the brand as a premium product, not just in pricing, but in the way that the brand represents itself to the consumer and the way we carry ourself in front of the doctor. The sales force has been hired, they've been trained, and they're actively in the market now, opening accounts in preparation for the launch strategy that we're going to share with you today. I'm pleased to report that nearly 2,000 accounts have been opened over the last several weeks since our Evolus national sales meeting. We are not just a startup company.
When we enter the market, we will enter with a significant and profound presence. It is all deliberate. We have intentionally, over the last year, had a building effect. Today, we'll share that detail with you. We've also moved our offices, our corporate headquarters, to Newport Beach. For the staff and the company, this represented a significant shift. We're a beauty company and we're in a beauty market, and our office is representative of the culture that we have, and I'll speak to that in just a moment. Lastly, I mentioned product. We plan to have available on Wednesday, May 15th, we plan to begin shipping product. Clearly, any organization is led by the leadership team, and this would not have been possible to accomplish without the quality and the experience of the group that we have here.
Not only has this group led in more complex organizations, but has led in different industries and has a depth of experience and success that will continue to build this company for what we believe is a company that starts with the singularity and focus today on a product, Jeuveau, and over time, will form into a portfolio company and a leader in medical aesthetics. That was the lens that myself and the board used as we brought on the leadership team that I'll talk through here. Going from left to right, Crystal Muilenburg, who is our head of PR and communications, has extensive experience working on major brands, including the current market leader in the space in U.S. and international marketing, worked on pharmaceutical as well as beauty products.
Her experience has been meaningful and you'll start to see that effect as we build up our PR and communications and activity. Kurt Knab is our head of sales. Kurt, over the last 90 days, we have hired 140 sales representatives. Kurt has been leading that effort and had an extensive and rigorous interview process associated with it. We started with 6,000 candidates that expressed interest in 140 positions. Through a sales leadership team, every candidate that came through the process met with sales managers, the leadership, and more than half of those reps I met with one-on-one to ensure that the quality of our sales rep met the quality of the customer that we're supporting. In the end, the tools and the product matters, but the quality and the customer centricity is paramount.
That is what differentiates us in this market, and through consolidation and evolution of this market, we believe we can create a lot of value around our focus. Kurt also comes with an extensive background, having led one of the most successful sales forces in the surgical space, LifeCell, having built that team up to $500 million in revenue, growing double digits before he joined us. Lauren Silvernail, you all know very well. She's been obviously very experienced as a CFO, formerly with ISTA Pharmaceuticals, which was later acquired by Bausch + Lomb. Then following that was the CFO at Revance. Lauren has been a key pillar for us as we've raised the capital and built this organization from an early-stage startup to one that's now prepared to commercialize.
Rui Avelar, who I've known for many years, for those of you who haven't met Rui was formerly the Chief Medical Officer at Allergan, led significant product development programs, including brands like JUVÉDERM VOLUMA, breast implants, class 1, 2, and 3 devices. His team is equally as skilled and has experience as Rui. What you've seen thus far with the approval of Jeuveau in less than six years, it represents the fastest time from inception to approval of any neurotoxin in the U.S. The quality of that team is the reason why we have confidence that we can build out a portfolio over time. Jeff Plumer, our Head of Legal, brings a significant amount of domain expertise, having been with the organization for a number of years and helped lead this company through the IPO process.
Jeff's been a cornerstone as we've built out how we define performance beauty relative to the traditional pharmaceutical industry and how they operate. Amy Fox, our Head of HR, joined us about six months prior. Amy's got extensive experience in early-stage companies as well as developed companies. She's helped define the culture that we operate with, that I'll share with you today, and helped us build out this organization from roughly a 30-man organization to north of 200 in such a short window of time. Alex Abad is our Head of Operations. Alex joins us from Deloitte, where he was a partner in the consulting operations and led the operations function. Alex has experience working not just in the U.S., but with international partners across different products from biologics to devices.
That extensive experience has been useful for us to date to launch and will be incredibly beneficial to us as we build out this organization. Then lastly, after I present, I will introduce Mike Jafar. For the first time, you'll get an opportunity to meet Mike. He's a forward thinker. I've worked with Mike for many years. Mike led the launch of Voluma that Rui handed off to him years ago. For those of you that don't know, in medical aesthetics, JUVÉDERM VOLUMA was the single largest product launch. Mike was the mastermind behind that launch and successfully worked on many different brands in aesthetics and has put together a well-skilled team, and he's going to roll out the commercial plans that surround that. It all starts with the culture. You should feel the culture in the slides.
You should feel the culture with every interaction you have with this management team. It defines how we operate, and this leadership team lives by it and has helped define it. There's three facets to our culture. It's actually fairly simple. It starts with transparency. We believe that transparency is the future of this category. It's not about complexity. It's not about customers not knowing what their price is, and it's not about employees not being aware of what's coming next. It's about being open and honest with your employees so that you have an environment that thrives off that transparency. Our digital platform enables us to operate with a single click in a way that's transparent to the market. No hidden fees, no confusion. The same applies to the way we roll out our data. It's all about impact.
We recognize we're entering a market with well-entrenched competitors, a market that's been in existence for a significant amount of time. Every interaction matters. It's all about high impact. We believe we have an outsized presence in every interaction that we have because the power of everything that we roll out is magnified by our platform. Lastly, it's a culture of having fun. The entire organization is oriented around this idea that if we can make our culture fun, then for the consumer, that beauty experience will be delightful and achievable. I'll give you an example of what that looks like.
Oh, my boy wants some more of this treat. He doesn't know it feels so good. My baby's feet standing out the door. All the funky monkeys running wild with joy. You wouldn't believe it, there will be some more. With just one sock I step in the door. They say hi, say no. They say fight, no. Mama, don't let me nobody but him touch my toe. They say hi, say no. They say fight, no. Mama, don't let me nobody but him touch my toe. They say hi, say no. They say fight, no. Mama, don't let me nobody but him touch my toe. They say hi, say no. They say fight, no. Mama, don't let me nobody but him touch my toe. They say hi, say no. They say fight, no. Mama, don't let me nobody but him touch my toe.
You've heard performance beauty. What does it really mean? We know that only one out of 10 consumers that are considering treatment are in the office today. What is holding this market back? What are the friction points that keep a consumer on the outside from going into an office and getting treated? We believe it starts with the way that we communicate. We at Evolus, we speak human, we don't speak medical. This market was originally formed with medical language. Think about the category, medical aesthetics. That makes sense if you're on the medical professional side and you're injecting these products. If you're a consumer, you're going in for a beauty treatment. What does medical aesthetics mean to you if you're a considerer? Performance beauty reflects performance, reflects that the products work. Beauty is the aspirational and cultural expression of what everyone's trying to achieve.
By positioning Evolus as a performance beauty company, we believe that we will look and feel different and communicate differently to that consumer. Practices have evolved over the last 20 years. Should the industry. We're not a pharmaceutical company, we're a performance beauty company. We enter with Jeuveau in the largest category in medical aesthetics. It's a $1.1 billion category, estimated in 2018, growing double digits through 2022, 2021 to roughly one and a half billion. Our advantage is our singularity and focus. Every competitor in this space operates as a pharma company, multiple divisions in pharmaceuticals, and that heritage that carries over to the medical aesthetics franchise.
We stepped back as a leadership team a year ago. We said, "If we want to be a beauty company, what elements of a regulated environment do we need to maintain in order to maintain that performance heritage and operate within the space? What elements could we acquire from the beauty space that allows us to look and feel different?" What you observed in that video and what you'll see over the course of this day is a completely different way of communicating with that consumer. That singularity and focus has allowed us to identify all the friction points we believe that exist in this market. We're eliminating them at launch. We'll continue to eliminate them over time with the goal of disrupting this market by bringing more consumers into this space through a beauty brand. We present, we believe, a frictionless alternative.
It's a combination of the experience of this organization. 80% of the sales force that we hired has experience in aesthetics. The doctors know our reps. We know this market. It's a platform that when we launch, doctors will be able to download a single Evolus application. They'll be able to order product. They'll be able to communicate through that same application with our sales representatives. Even with our medical affairs organization, it powers the entire company. At scale, it presents efficiency and transparency in how we do things. Of course, a product that was designed from the outset to compete with the market leader. The studies were designed to compete directly against the market leader and for practices.
You don't have to do anything differently as it relates to the way that you reconstitute the product or the way that it's injected in the area that we're indicated. What you're going to hear about today is our commercial launch plan. There's four facets to our launch. Over the next 90 days, the focus will be around the Jeuveau Experience Treatment Program, we call it J.E.T. We believe it to be the single largest experience program ever launched in the space. Over the next week, our sales representatives will be increasing the account base from roughly 2,000 to 3,000 in anticipation of this launch. In a matter of hours, accounts following the ship date will have access to the product and begin participating in the J.E.T program. Consumers will see Jeuveau in a different way. You see on the stage here, #NewTox.
It's a different way of communicating the category to those patients. That consumer experience means a lot to us. This is not just a product, it's about how you engage with the brand and the company over time. We also have spent time building out our pricing program in a thoughtful way. We announced a price premium to ensure the pricing integrity maintains in this market and that we're a category builder. We also built a pricing program that's designed to improve profitability for the practice. Through a strategy called index pricing that Mike will talk you through, we believe that we can break the bundle in any account that wants to use Jeuveau, that we can create value and improve the profitability for that practice, regardless of where they sit within the portfolio programs of the competitive set.
Lastly, that all gets powered through the same technology that our reps use, that doctors will interact with. With that, it's my pleasure to introduce Mike Jafar.
Well, good morning. It's great to be here. I've spent the last 12 months in the backdrop carefully planning for this moment. It started by listening. We've held over 12 advisory boards in the last 12 months, touched a variety of different customers, key thought leaders, well-established in this marketplace, subject matter experts in the toxin category. Next generation that's fueling the perspective of our future. We've brought on an external group of key digital advisors led by the former Chief Digital Officer of Bayer, who's connected us to her network, CMO for GE, prior CMO for Walmart, key executives at Facebook, key executives at Google. That external expertise complemented our internal expertise. They've pressure-tested everything we've done. Internally, we've built one of the most unique group of individuals that are not here for a paycheck, that are here for a purpose. Those individuals come from Facebook.
Our head of design was a former head of design at Microsoft, leading the design for HoloLens. A gentleman from Tesla, who's leading our technology, a variety of different key individuals that come completely out of this space. We did this to create one of the most impactful launches in aesthetics. The market is ready, the energy has never been any higher in this category. The reason being is that this is the first 900 kilodalton toxin to enter in 20 years. To many of you see this as the fourth entrance. To us, it's the second option. Our aesthetic-only indication gives us tremendous flexibility. This is the first toxin in this category that has an aesthetic-only indication. We're not fettered by a therapeutic indication, giving us tremendous pricing flexibility and a unique go-to-market strategy. The timing's also optimal because the consumer mindset has drastically shifted.
10 years ago, the average age in this category was north of 38, 39, 40. Now, it's shifted downwards to about 35. What's driving that is the growth of a millennial population, a mindset that influences up. You couple all this with a digital platform, as you heard from David, a unique digital platform in this category. In the hands of the best talent in this space of 140 sales representatives, the combination of technology and expertise gives us an outsized presence in this category. To most of you, this is an introduction of a brand. The brand is called Jeuveau. The inspiration behind the name comes from the word nouveau, meaning modern and up-to-date. That's core to our principles.
From the phrase "evolve with us," which inspired Evolus, to the meaning of Jeuveau, which was inspired by nouveau, everything we commit to every single day is to continue to modernize this space. To us, it's beyond a name. It's a language. It's an introduction of a different language in this category. To launch a modern brand, we had to listen. We listened by conducting some of the largest set of body work in this space. In combination of four key research projects, we've amassed 31,000 consumers and surveyed them to listen, to size, to identify what their interest is. Some of the common findings are the principle as to why they interact with this category. Feeling youthful, feeling confident, wanting to look their best, things that we've all heard for many years.
What's interesting is that they wanted to also be spoken to like humans, less medical, more beauty. They wanted an experience, not an injection. We got down to the level of detail that tells us that they prefer rosé over red wine. That's the intricate details that we designed for. We know her extremely well. To modernize this launch, we had two options. We could have shown up and said, "Jeuveau is now FDA-approved to treat," and so on and so forth. "Please ask your physicians for it." We chose a modern language. We chose to introduce a hashtag as our launch comment. Our commonality between us and the market is to speak differently. Hashtag #NewTox says a lot to her. It modernizes the launch. It gives our customers a different way to speak to her.
It says the word new, which newness gets us a lot on a short-term basis. What was interesting in that research across 31,000 consumers is that when you did some social listening, you realize that 96% of the content in this marketplace is produced by injectors. Consumers consume information, injectors produce information. Giving them an asset like #NewTox drives a different language and a different set of energy in this category. We released this in the last four days, and we've garnered over seven million impressions, organic impressions, driven by just south of 300 individuals. We've yet to fully release this campaign, and this campaign has the best shot of virality in anything that we've done in this space. The goal here is to unlock a significant market. Currently, about two million people are getting injected in a given year.
Over the next 12 months, six more million people have expressed interest in entering this space. If you step back and look at the potential of this addressable market, it's about 36 million wide. It's a significant market that's been penetrated in tune of 6%-7%. 48% of the consumers that are interested in getting injected are actually sitting in the office today. They're getting microdermabrasions, peels, skin care. They're interested in this category, but only if we speak to her differently. Take the fear out of it and introduce the beauty element of it. The newness of this brand in combination with a modern language will make this a lot more approachable. Beyond that, we've built a modern company. In today's world, introducing a brand has to be done drastically different.
The expectation on the consumer and the provider is not the same as it was 20 years ago. You'll hear the word design a lot from Evolus. That design principle follows three tenets. We've built a company that thinks about the content that we put out there to ensure that it's desirable. Desirable just simply means, am I interested in consuming this information? Is everything being brought to me appealing? The second tenet we deploy is looking at technical feasibility. Can we deploy modern technology to eliminate friction? Our team spends thousands of hours to minimize a few seconds in our customers' day-to-day operation. Lastly, is this economically viable to ensure full scale? Harvard Business Review writes on this quite a bit. The philosophy that's generated from Palo Alto, a modern way of thinking for any tech startup, a revolutionary thought process within pharma and within medical aesthetics.
It's a different way of thinking. I'll give you some examples of what that type of thinking has done to this market and outside of this market. If you look across many disruptors, innovators, you'll quickly see a common thread amongst new companies and existing conglomerates. Airbnb's market cap is north of $30 billion, close to 34, 35 on a given day. Marriott's market cap is north of $40 billion. That delta is not that big for a company that doesn't own a single property, a single building. That company deployed design thinking. Airbnb started by listening. It listened to a consumer that said, "I'd like to vacation, but I'd like that vacation to feel more personal. I don't want a cookie-cutter stamp experience. I want a unique experience on my own terms." It produced and leveraged technology to connect homeowners and vacationers.
It made that entire transaction economically viable. It's modern design thinking. Dollar Shave Club disrupted the razor market. A market that operates on razor-thin margins. The pun is intended. The design principle says, I will listen, I'll realize that there's a commodity that you go out of your house every single day or week to obtain, consume and dispose of. Can I package it in a way that will be delivered to you on an ongoing basis? Can I leverage the price point to make this economically viable and scale? That's disruption within that category. That's design thinking. As you've all seen, Tesla outsold Mercedes. Tesla started by listening. It produced one of the first electrical cars that looks attractive. People wanted to consume it because it was desirable. The oversized iPad was desirable. It then deployed technical feasibility.
In that, a group of designers think about every painstaking interaction that you have with your car, and they use technology to offset it. For years, we've walked up to our cars, searched for our keys, and tried to unlock the car and start the car with a key. Tesla thinks of that as a waste of time. You should just simply walk up to your car and the door should just pop open. You should drive up to your driveway and step out of the car and it should just park itself. The technology has caught up to modernize the experience with a commodity. Lastly, they realized they were not going to be disruptive until they became economically viable. Until the launch of the Model 3, Tesla had no chance of outselling Mercedes-Benz.
At a $45,000 car, in a design principle that listens, that produced a great quality product, that leveraged modern technology and made it economically viable. They're a design-forward company. Closer to our space, what guides our principle is the following analogy. ROGAINE, nearly a $500 billion brand at its peak before going generic. Gone generic, and it's nothing more than minoxidil now. A company like Hims took the idea of saying, people realize that they're balding and they're losing hair, we don't need to remind them of that in our imagery. We need to make that experience a lot more desirable. We need to show great images with people with great hair. We need to leverage technology as basically an online pharmacy. We need to make this whole thing feel like it's personal to them. They don't even mention a brand name.
They don't have a movie star. They don't have anything beyond the word Hims on the package. Simplicity, packaging, and technology has taken this company, the latest estimates I've seen is between $180 million to $200 million. It's minoxidil repackaged. Design matters. In our space, our goal is to make this entire beauty experience delightful and achievable. We believe that design orientation will unlock this market. Our head of design has painstakingly journey mapped every step of our consumer's journey. There are 32 steps, to be exact. From the moment that they become aware of their lines, we know what age within your 20s you're most aware of those lines. That specific age is 21. In your 30s, at 32, you're most concerned about your lines. In your 40s, it's actually 39, you're most concerned about your lines.
We know exactly the moment in which you're concerned about that line, we've journey mapped the awareness, the conversion, and retention. In total, there are 32 steps that we've designed specifically for. We've brought this company on that you saw from David evolve drastically. It was an unknown entity. We've put its element of beauty to it. The logo itself was designed for. It speaks to movement. It speaks to evolution. It's simply desirable to look at. The color choice, it's not pink, it's not orange, it's coral. It happens to be the color Pantone of the year. The typography that's typed on every brochure down to your name tag here is consistent and thought through. Illustration, motion, language. There are key principles that we abide by from the company that drives our DNA from the inside out.
That platform that we put out to the marketplace for Her is the first of its kind in this category. It's much more beauty, it's less medical. It's much more attainable. More importantly, that platform connects our consumers and our providers. The idea of performance beauty allows our providers to describe their definition of performance and their definition of beauty. Right now, if you were to visit common websites to search for providers, they're nothing more than just a name. People seek one provider over the other because that provider's specialty, years in practice, the way their office is designed, the experience that's been designed for, and more importantly, the way that provider sees beauty. We will highlight that on our platform. We realize the entrance of Jeuveau will drive a lot of attention to the website. That experience from that moment on should feel different.
I'd like to give you an idea what that looks like.
Hey, brother, what you thinking? Beneath that old record spinning. You feel the rhythm going. Get down on it now. Legs ain't got time to lay low. Your knees are bending low. It's time to get up and let go. Get up on this party. Hey, sister, how you feeling? Keep your body moving. This is party time. Get down on it now. This floor is shining. You and I feel it. Let the rhythm play us. Tonight, it's time to let go. Baby, can you move it around the floor? We can't get enough and just wanna get up and rock it. One down, body body coming. Make the people highlight. Can you move it around the floor? You know we're living it up. Speed it up, it ain't no hate. Gonna bust a move. Can you move it around the floor?
We can't get enough and just wanna get up and rock it. One down, body body coming. Make the people highlight.
That's our head of design who's really proud of that work. We've taken all of our content and collateral and put it out in front of our consumers and asked them their thoughts on this. Neurotoxin-experienced consumers look at this content and says, "This feels more playful than. It's less clinical than. The image that's portrayed and conveyed here is more inviting. It's welcoming. It's ads I've never seen. Jeuveau feels fresh, feels younger." People do this to feel youth, confidence, and energy. That communication should strike that emotion. We not only modernize the content, we modernize the way we've powered this entire company. Beyond desirability is technical feasibility. Today's technology's caught up. Our transaction with our customers is very modern. It's unique in the space. Let me be clear, this is not a bolt-on type of work.
This is a customized, proprietary, and personalized set of code and development that's listened to our customers' pain points and alleviated by way of technology. Customers can download the Evolus Practice app, place their orders on the app. They then get what they've all asked for for nearly 20 years, which is full price transparency, down to the vial and unit. They've asked to be connected to the industry much more efficiently. To get a hold of medical affairs, to get a hold of customer experience, it's a two, if not a three-step process. Amazon has changed the conversation of a one swipe to checkout. That access at your fingertips is a modern expectation. They simply can text any questions to our medical affairs group and they'll get a reply back. The entire company, from its onset, is designed with technology first.
It gives us scale and it gives us efficiency over time.
What if you just get what you pay for? What if you're just in the know all the time? This is Evolus Practice, designed for your practice. Order on demand right from your phone. Unlike other ordering apps, you'll get true price transparency. You'll know exactly what you're getting. No guessing, no waiting. Instant discounts, timed for you. Let's talk about your order. You should know whether your product is shipped or processed today. That's why Evolus gives you the most up-to-date status on all your orders, whether you are ordering or someone else is ordering for you. What you won't be wondering about? Fees. Because Evolus Practice doesn't have any fees, not even hidden ones. This is Evolus in your pocket, meaning the most important resources available to you. They're one text away. It will all live in Evolus Practice app on your phone.
Simple, personal, and connected.
You take this technology in the hands of 140 sales representatives that are focused solely on this category, you drive an outsized presence. It's a modern way of thinking. It's the expectation that we all have in this room as consumers of many products. This technology with our sales force will launch the single largest program that we have. We believe it to be one of the largest experience program to ever hit this market. You heard the code name J.E.T., the Jeuveau Experience Treatment. It will reach nearly 3,000 customers in a very focused amount of time. This program will last about 90 days. We will collect an immense amount of data on the consumer and on the practitioner. We'll obtain that feedback and report that back out to every single practice. This is a high impact program. It's designed for quick market share uptake.
We've spaced carefully the launches you heard that will take place next week because we've created accounts for just north of 2,100 accounts. Which means we're 900 accounts away from having 3,000 customers deploy this all within a few days at once. It's been hard to listen to the demand of the market and meet it. That demand has said, "I want access. I want a lot of access. I want early access. I want it now." It was hard to single out an individual group or an individual pocket of the country. In combination with my astute colleague, Crystal, who'll be running a joint effort between myself, our head of sales, Kurt, we will deploy this with technology at scale within a few days. The last element of launch, which is probably why you're all here.
The conversation of price. You may have heard that price is a short-term play or people don't value price. I may agree, I'll tell you, there isn't a single customer that doesn't value profits. The conversation is not about price. The conversation is about profit. I say this because everything we've rolled out has been deliberate. The last thing we have rolled out is price. The entrance of Jeuveau is not about price. Our sales force just found out a few days ago what the pricing structure looks like. They first found out what the clinical program is like, what the data says. They learned about the experience program and the details, and how to optimize an experience for beauty within the office. Those were the two things that were most important to us as a company as we introduced our sales force to our customers.
The last thing that we've introduced is the conversation around price. Why is price such a topic of conversation in this space? It is because the profit over time has decreased drastically. The cost of goods in this category has gone up nearly 50% over the last 20 years. Our customers' revenue has only gone up on a per unit basis about 10%-12%, which means our customers' margins have taken an impact on the single largest category in their practice. You'll hear from our panel today, most practices range anywhere between 40%-60% of their treatments within this category. Customers have told us for years, "I consider this to be a loss leader. I consider this to be the gateway, but the loss leader," meaning I am much more profitable in other areas within aesthetics than I am on this. It's a necessary evil.
You cannot not offer this procedure. It has the right economic value for the consumer. The transaction is rather seamless, the effect is almost instant, and it lasts for months. It also has the largest age demographic of anything else in this space. Consumers are starting as early as 21, 22, 23, and they're carrying this procedure on north of 60 years old. The lifetime value in this category is high. The profit is not. Before I speak about our pricing structure, I'd like to share with you what the market currently operates in terms of pricing. For customers that are purchasing this product, they purchase it by way of loyalty programs. There are three key programs out there. It is some of the most convoluted and complex system that's been presented.
If you ask 30 customers today, "Tell me your price per unit on any given toxin in this market," not one will be able to tell you that. The reason being is because some programs take dollars and convert it into points. Those points get converted into rebates. Those rebates look at annual performance and your growth rate. A kicker is applied on the whole portfolio. Some programs only allow you to earn points on toxins, but not discounts. Other programs weight the toxins differently to other products. It is rather complex for a group of injectors that went to med school not to get a PhD in finance. For that, they've asked for transparency and simplicity because they're operating businesses. The way they operate currently is they take their list price of the product and they multiply it by two, and that sets their retail price.
Everything from there on, they just tell you, "I cannot figure it out. I'm assuming I'm making money. I'm assuming I am profitable. It's a necessary evil. I can't do away with it." To ensure responsibility within this market and ensure profit, we wanted to make sure that our customers maintain their top line. Like I said, they maintain their top line by setting their list price. As you heard about a week ago or so, we announced our list price at $610 a unit. I'm sorry, a vial, on 100 vial basis. About $6.10 per unit. Our customers like to do simple math. They'll take that and they'll multiply it by two or so on average, and they'll set their retail price as they have historically.
We brought in the objective of increasing profits and, more importantly, giving customers the option to break the bundle. Right? There are portfolios out there relative to our singular focus. It just so happens to be that our singular focus is in the largest sector within medical aesthetics. The ability to break the bundle at the right price starts within toxin. If we had launched this company with any other product, it would have been hard to break the bundle. Nearly half of the checks our customers cut to manufacturers is in this category, which means opportunistically, there is much more business to be had and much easier to break the bundle. The way we do it is we index price. We index price our discount to the market leader.
For example, the range of discounts within the market-leading programs start at 0% and go as high as 18%. In a survey we recently conducted, we learned that the discount average is anywhere between 2%-4% for a large segment of this market. Our price across the board, from the bottom to the top, will be additive to current discounts. It'll be indexed on an individual level, on an account-by-account level. For purpose of modeling, I continue to stick to the 20%-25% relative to the market. We realize the market is about $1.1 billion, $1.2 billion. I discount that by 20%-25% over the course of the next three years. As I said, this is a complex market, and it comes down to the individual account to identify what it'll take in terms of share and cost.
No matter where you sit within any loyalty program today, this product will be much more profitable. How do we take complexity and simplify it? We give our sales force a profit calculator. That calculator has been designed to allow customers to give our representatives inputs. That input would be the following. What status are you within the competitive set? What percentage of that status is earned within Toxin? There'll then be a simple bar that says, "How much of your business will you move over?" Anything north of 13%, this becomes very profitable. You break the bundle on an individual-by-individual basis, and that ranges. This product, relative to the size within this market, at this price, has the ability to break the bundle. We'll provide a very simple tool in order to do so.
I'll close by saying that we did not build this company to grow over time. We built this to scale overnight. The three tenets to that will be a fresh, modern, new approach, a new language with #NewTox. The J.E.T program, our Jeuveau Experience Treatment Program, will create a seismic shift in this marketplace. Lastly, there isn't a single customer in this market that doesn't want profits. Thank you.
My name is Rui Avelar. I hope what you are getting a sense of is probably the most important thing about us is the company, the way we want to interact, our culture. The way we want to interact with both physicians and patients is unique. That defines our culture. That's a brand-new approach to this whole sector. Now, the nice thing is we actually happen to have a product. What I'd like to do is take a few minutes and introduce you to our first product, which is Jeuveau. When this project started, the objective was to develop a product that was actually competitive with the gold standard. The original founders, by no accident, sourced the 900 kilodalton complex. At the same time, there was a high priority for quality, and that's why in our collaboration, a brand-new facility was built for the purpose of making this product.
The nice thing about a brand-new facility is you put in brand-new equipment that's modern and state-of-the-art. A huge implication for a quality system. The other thing is in the manufacturing of this product, we use what's called a high pure technology, and there are elements of it that are proprietary and they're a trade secret, and there are elements of it that are actually patented. Ultimately, we were able to do things because we've learned from past experiences to do kind of little extra things. For instance, when you put things through the filtration column, why not put it through twice? We have this unique process where we go twice in these anion exchange columns, and that helps ensure high purity for everybody. The transparency clinical trial has five studies in it.
There are two long-term repeat dose studies that went over a course of a year. There were three phase III studies, and they've recently been published, I'd like to share that with you. In the U.S., the FDA wants you to run not one, but they want you to run two phase III studies just to make sure you didn't get lucky in one of them. They're also wanting to look for consistency. The criteria for a U.S. study is a little different. The patients that we enrolled were the same as patients in all our studies. They were over the age of 18. There was no cutoff on the age in terms of the upper limit.
All the patients who enrolled were moderate or severe in terms of glabellar lines. The unique thing about the FDA is they have a primary endpoint that's called a two-point composite. Clinically, it's not as relevant as other endpoints, but statistically, it represents a really high bar. What this means is both the investigator needs to see a two-point improvement, and the subject independently needs to see a two-point improvement, and it only counts when it overlaps. In our 01 study, what we saw as a responder definition was 67.5%. You could see the components of that composite up above. On our 022 study, what we found was 78.4%. Once again, you could see the composite and the contributors to that score.
The study met the primary endpoint successfully of superiority against placebo. This was the basis for approval that we announced here from the FDA in February. We used the same standard of a two-point composite to understand and ask the question, statistically, do we still see a treatment effect against placebo? We asked that question at month four. We asked that question at month five. What you see is in both studies, we saw statistical superiority, both at four months and at five months. Again, a two-point composite represents a high statistical bar. This is of interest to the statisticians. For the clinicians, what we provided was this. We gave them all visibility in terms of the glabellar line scale at maximum frown. Just from a piece of background, when you look at a glabellar line scale, by definition, a one-point improvement represents a clinically meaningful change.
Here you can see, just to orientate you quickly, the small bars are the placebo, assessed by the investigator or the subject, and the larger bars, in general, are the treatment arm. You could see here what it looks like over time, all the way from day two right through to day five for both studies. A different way to look at efficacy asks a simply different question, that is the Global Aesthetic Improvement Scale. This is a little bit broader interpretation. You're looking specifically for an aesthetic improvement. It's called a balance scale, so in the middle, there's no change, and then you have two potential increments to get better. You can be improved or much improved, or two increments to get worse or much worse. Again, here you could see the effect over time.
The third way we looked at efficacy, very important, particularly for clinicians, is subject satisfaction. At the end of the day, the subject or the patient is always right. Here again, it's a balanced scale where there's no change in the middle. You can be improved, satisfied, or very satisfied, or unsatisfied or very unsatisfied. Here are the responder rates over time, right up to five months. From a safety perspective, the top line represents all adverse events in the trial. That includes related and unrelated adverse events. Then the bottom line are all the adverse events that were related to the drug. Some of the highlights in the adverse events, if we look at eyelid ptosis, you could see a blended rate of 1%.
If you look at all our studies, the overall eyelid ptosis rate that's related to the drug was about 1%. That's pretty consistent. Also of note, most of the adverse events were mild in nature, so by definition, that means barely noticeable, and there were no serious drug-related adverse events in any of the trials, actually. Here's a quick little excerpt from our label. It does have a box warning on it. On the left, you could see all treatment emerging adverse events with an incident of over 1%. That means even the unrelated and the related, they're all there. We provided the placebo here for you, so you have a little bit of a sense of context.
Then on the right, what you see is all the adverse events greater than 1% that were related to Jeuveau, and you can see there's only two that actually hit the 1% mark. This was the head-to-head study, we recently put out a release on this. Brand new. It was just published a few weeks ago. This was a large study, 540 patients. Most of them were randomized to the drug arm. It's 5 to 5 randomization. Again, same criteria. Over the age of 18, most of the patients were moderate or severe enrollment. The unique thing about this trial, and different from the U.S., was the responder definition. Here, the responder definition was something that's quite often used in clinical literature. That means Sorry. To be a responder, you had to All of them started as either moderate, severe glabellar lines.
To be a responder, you had to improve to either none or mild glabellar lines, and it was as judged by the investigator only. Here are the results. At day 30, which is standard for pivotal phase III studies as a primary endpoint, the responder rates were 87.2% for Jeuveau and 82.8% for BOTOX. What you could see is the difference between the two was 4.4 in favor of Jeuveau. Importantly, what you see is the lower limit of the confidence interval is well above non-inferiority. This successfully met the definition of non-inferiority. This was the basis for the positive opinion that we just received from Europe, that we announced a couple of days ago. From an efficacy standpoint, we also looked at the very beginning and the very end in secondary endpoints.
You could see at day two, the majority of the patients were already responders, superior to placebo. You could see, again, right at the end of five months, we were still statistically superior to placebo. We are very interested in subject satisfaction. Again, the customer is always right, and we consistently see these really high numbers. At day 30, clearly superior to placebo, and you could see a responder rate of 91.3%. What was new in this publication was for the first time, we actually showed the head-to-head data across everything. Here you could see BOTOX versus Jeuveau looking at a glabellar line scale by investigator. Or you can look at the glabellar line scale assessment by the subject. Some people prefer the Global Aesthetic Improvement Scale, so you can see it again by investigator. Or if you like, you can look at the SEM scale by subject.
Finally, some patients and some doctors really want to know about subject satisfaction. Again, you could see them. The really important thing about this publication is, for the first time, doctors have 30 brand-new exploratory endpoints they could look at. Whatever they're interested in, glabellar lines, Global Aesthetic, subject satisfaction, they can look at it from day two, any interval they want, all the way to five months and pass their own judgment on the product. That was, for us, a very important thing to allow physicians to have full transparency into our data set. From an adverse event perspective, you can see all adverse events in the top line, both related to the drug, not related to the drug. The lower line, what we see is the drug-related. Highlights, eyelid ptosis rate 1.6 for Jeuveau, zero for BOTOX.
If we look at eyebrow ptosis rate, zero for Jeuveau, 0.4 for BOTOX. In closing, I'd like to share the image that was in the journal for those of you who have not actually seen the pictures of glabellar lines. This is what it looks like. Here's a baseline patient. Peak effect's usually around day 30, and you can see what it looks like over the course of time. With that, I'd like to say thank you, and I'll hand it back over to Mike.
Great. All right. Rui and I have done this several times before. In our previous life, he handed over a great product within this category, in which, on the commercial side, I was the lead. Profound respect for Rui, and wouldn't be here without you, so thank you for that, Rui. With that, I'd like to turn this over to our expert panel. We have an astute and a very diverse set of individuals. We did this by design because this market is not a homogenous market. We wanted you to get perspective from a variety of different customers and have you answer or ask any questions that you may have. We'll start with Dr. Harper. Dr. Harper has 11 locations in the U.S., between Ohio and New York and across the East Coast. Thank you for joining us.
The interesting part about Dr. Harper here is that as you know, in technology, the legal, the finance, and the healthcare sector is usually the laggards or the late adopters. Dr. Harper is as much a clinician, a businessman, and a technologist all within one. He has a unique view on technology and what it's done for his practice at scale. He's looked under the hood, under our technology stack, and I think he'll speak profoundly to that. It's a pleasure to have you here. Dr. Sunder is a double board-certified facial plastics out of Beverly Hills. Thank you for joining us. Dr. Sunder has a unique balance of realizing that she's as much a physician as she is a operator and a marketer. In today's world, physicians need to showcase their skill set, especially socially, where most consumers now go to consume information.
The idea of talking about her skill set, her pedigree on a social platform is not all that common within healthcare, but it's relevant to aesthetics, so thank you for joining us. Dr. Shridharani is a board-certified plastic surgeon. He practices here in New York, cross section of 5th and 7th. He's built a unique practice that combines both luxury and surgery. If there's a person that understands the importance of experience, it's Dr. Shridharani. If you go to his practice, he's thought through where the speaker should be, in front or behind the wall. Should you get a cold or a hot towel? He's measured through every part of the experience because to be competitive in today's age, experience matters. We're fortunate enough to have you here. Jake Lavin. Jake Lavin has a very different background than any of these individuals.
Jake is a operator, spent some time on the business side at Johnson & Johnson and at Allergan, working on loyalty. He then opened up, with his beautiful wife, a very successful practice. They have three locations. They're in the top 10 in terms of volume in this space. He has an MBA in finance that looks at this in a very different way. We're fortunate enough to have Jake with us. Without further ado, I'd also like to reintroduce Dr. Avelar to join us at the end in terms of Q&A. Many of you have submitted some questions to us in advance. I'd like to start by asking a series of questions, and then we'll turn it over to all of you to ask individual questions. I'll start with Dr. Shridharani.
A lot of people have stated that this is a fourth product or fourth entrance, most customers don't really need a fourth option. What's your view on the launch of Jeuveau relative to this market?
I think first and foremost, one of the most important things is we are at such an exciting time to be in aesthetic plastic surgery. If I had to pick my career path, this is the right one because whether it's aesthetic plastic surgery or aesthetic dermatology, we've had more patients than we've ever had, yet we only have 6% or 7% market penetration into our practices as far as the number of people that are undergoing these procedures. The fact that we've got such an abundance of riches with patients, have the ability to treat them very well, still means that there is tremendous room
For a lot of great product and great innovation. For me, okay, this year it's a fourth toxin. Next year there could be a fifth one, so on from there. Actually, only two are this 900 kilodalton molecule, which means a lot to me. It instills a lot of confidence that you basically have Jeuveau and BOTOX, and then the rest.
Really, when I'm thinking about having access to neurotoxins that are good quality, modern new ones, to me, it makes a big difference that I've got a lot of excitement and buzz around products that I can use for my patients while we continue to grow and expand the market, because there's millions of patients out there that are interested but just haven't come in yet for a myriad of reasons, this should hopefully break some of those old practice patterns of being afraid to get treatment.
Thank you for that. What's interesting about this launch, unlike others, is we'll introduce Jeuveau and not ask a single thing of our customer, meaning we won't ask them to do anything different. We won't ask them to change the language within their practice. We won't ask them to think about the injection pattern in any different way. I think one of you said the training on this one is rather simple. Just do what you've been doing. Just do it again. Right? The frictionless alternative is unique to this market. On the clinical side, and a question to Dr. Sunder and Dr. Shridharani here, from a clinical performance standpoint, you've seen the data. I'm just curious to know what your impression is as a physician behind this data. You've yet to try the product, obviously.
Right. The clinical data is extremely impressive to me. This is the first 900 kilodalton neurotoxin to go head-to-head in a phase III clinical study against the market leader, and come out showing a non-inferiority status with a trend towards performing better. That, to me, is extremely impressive. The glabellar line scale, that's all good and that's fine. What I notice is important, but to me, what's paramount is what the patient feels. To me, that five-month data showing 70% of patients were very satisfied with their results speaks volumes to me. At the end of the day, it's really what the patient feels like that matters to me and matters to most physicians.
Appreciate that. Dr. Shridharani?
I'd echo a lot of what Dr. Sunder just said. I think you'd be hard-pressed to get 70% satisfaction in general in a practice in aesthetics at times, because you want 100% satisfaction across the board because people are having these procedures. With the data and the science showing me that, it was pretty impressive. At its core, I like the numbers, and I like the confidence interval and how I think Dr. Avelar and the team really put together such a strong head-to-head clinical trial in terms of that non-inferiority, which is a very challenging thing to do when you're going up against the market leader.
For me, having not injected it yet, but just having great science instills tremendous confidence in me to know that I'm going to do the right thing for my patients and my staff, my family, when I start treating them out the gate. According to Mr. Moatazedi, next week, that's exciting for us, certainly, because I didn't know.
Just for the first time. That's right.
For the first time, I'm wondering, chomping at the bit to know when we can have it in the clinic.
I personally spent a few years earlier in my career working with physicians in ophthalmology and as a sales representative. I got to tell you, there's nothing more powerful than giving a group of sales folks, 140 of them, really good data. The level of confidence that they have as they go into doors and say, "We have a new product," and knowing that they'll be met with the question, "How does it compare to the market leader?" Not having an answer limits your uptake. Having an answer in a phase III clinical program makes a world of difference. I appreciate you commenting.
Rightfully so, because we're treating patients at the end of the day. If the team doesn't have good data, it's scary for us to treat paying patients that are coming in with these new treatments. If the team has confidence in data, we also do, because there's going to be a lot of physicians that are waiting for the first ones, the key opinion leaders, the global thought leaders who adopt it and use it. Out the gate, we feel really good about what we're seeing and what we know.
That's great. Speaking of paying, I think the subject of du jour here is about price and cost and profit. A question to you and then Dr. Harper. Let's start with your view on loyalty programs and contracts and so on and so forth. Then a follow-on question, which is on the mind of everyone in this room, can you break the bundle?
Yes, great question. What I can say is that the pricing model that's been rolled out here is completely consistent with industry and the way that I've seen it for my 17 years in this industry on both the industry side and as a customer. What's really refreshing here is the transparency. My background's very different than everyone else up here. I have an MBA in finance, but I cannot tell you what my price per vial or price per unit of BOTOX is for the reasons that Mike laid out earlier. What's refreshing is this transparency, and what I really love about the pricing model is that I don't have to wait 90 days for a rebate check to come back. I know instantly at time of invoice what my price is, so I can keep my cash on hand and reinvest it into the business.
You asked about the bundles, and the bundles can be broken. I think that's something that I've read about in the financial literature, that there's concern that the physicians that you have up here are beholden to contracts or bundles. That's not true. They can pick and choose. Ultimately, the power is in the hands of the physicians and the injectors that make those decisions.
Dr. Harper?
I would echo just the complexity of we're engaging with those. We're generally small practices as a whole. We don't have a lot of complexity to manage figuring out what is our price per unit. Managing our profitability, not having that much cash on hand is a real barrier to us growing. You saw from the generation of content, we make up 97% of the generated content. If it's unclear to us, if it's too complicated, we have to spend a lot of time figuring it out, it serves as a barrier, a hindrance to us. What we've been asking for years really is, we just want it to be simple. Why can't we just know what our price is? We get that people will get different prices based on how much they do and how that works out.
If we can make it simple, it makes us more efficient, helps us to build businesses more effectively.
Dr. Sunder, if we pivot off of price, you have now a different way to market a product. Can you give us your perspective, what you've done recently, some anecdotal information on how is this any different in how you speak to consumers about this?
I think the marketing is really brilliant, and the idea of #NewTox really resonates with the consumer and potential consumer. The culture of aesthetics has really evolved in the last 10 years, and truly in the last five years, where patients and consumers are much more accepting of this as a beauty regimen. It's more about maintenance and prevention rather than a true treatment as it was 10 years ago. People are changing the way they think about it and approaching it as a more maintenance regimen as the beauty regimen. What I think is innovative about the #NewTox phenomenon is people understand exactly what it is. It's the new toxin on the market. They understand what it is, but at the same time, it's more playful, it's more approachable, it's fresh, and I can see it really resonating with the potential consumer.
As you heard earlier, we've only tapped into 7% of our potential consumers right now, and there's a wide range of percentage where we could reach out to these potential consumers. I saw this firsthand. I use a lot of social media marketing for my patients. I happened to speak at the Evolus national sales meeting a few weeks ago. I presented and I posted about it on my Instagram page with the hashtag #NewTox. Later on that night, I got a phone call from a famous YouTuber who had sustained a laceration on his forehead. I went in in the middle of the night to sew him up, and as a way of thanking me, he and of course, he's live streaming this whole thing, and he's posting on his Instagram stories about how Dr. Sunder came in in the middle of the night.
He said, "Go show Dr. Sunder some love on her most recent post," which happened to be the #NewTox post. I'm getting all these messages, DMs from women aged 16 to 32 who are the target demographic being like, "Thank you so much for saving Taylor. Thank you for sewing him up. By the way, what's #NewTox?" You can see how it really garnered their attention, and it goes to show you the power of marketing with this just one hashtag alone. Just overall, the marketing package, the rollout that the company has, I think is just so fresh, so approachable. I think there's been an obstacle to convert those patients all the time because they view BOTOX as a treatment that and they worry about freezing their forehead, or they worry about it being too invasive.
If it's packaged in a way that's palatable and that's approachable, I think it's just a matter of time to open the floodgates to these potential new consumers.
It's great to hear. Basically, the success behind this company lies on a 31-year-old YouTuber.
Yeah.
Follow and stay tuned. Dr. Harper, just shifting the conversation to technology a little bit. Everyone says we have an app, I have an app, you have an app. Everyone is already in the digital present. What's different being at the forefront of technology, you've seen the industry and you've built your own, what's different here or what's unique about what we're building?
Yeah. I think this has an opportunity to truly be disruptive. I think the interesting thing when you're building technology from scratch, if you design it intentionally, if you design it with a design focus, what you see should be simple, but that shouldn't take away from how complex the workings are to make it actually perform and work properly. Mike commented on something that I truly believe in, that it takes an hour to build something, 10 hours to make it work, then 10,000 hours to make it easy or to make it simple and truly function. I think when we think about technology, bolt-on technology feels like that. I always think of the Windows versus the PC commercials, they're like bolting on things, it just wasn't a very good experience. I think true technology blends into the background. It makes our life easier.
In this platform, I've had the opportunity to look at depth at kind of how it's built and the infrastructure and everything around how it's been designed. I can pretty comfortably say that it's not good for aesthetics, it's just good. I think that's what's different. It has the same types of technology, the same types of design innovation, the same types of builds that you would expect in a true technology company rather than a more legacy-based pharmaceutical company.
I appreciate that. One closing question here in the sense that, a lot of folks on the audience, this is an unknown company. It's a year old company and product hasn't been out. Obviously you're seeing the data. The question is in confidence. I'll start with you, Jake, but what gives you the confidence in working with the company or the potential that the company will be successful?
Yeah. A few things come to mind. Number 1, this is a beauty product being launched by a beauty brand from a beauty company. That's a very important distinction to make from the traditional model of pharmaceutical companies, which is my pedigree. I spent nearly 15 years at Johnson & Johnson and Allergan, and I can tell you that those organizations just aren't built to serve the beauty industry. They don't go through the level of thoughtfulness that Mike and his team went through with all the design steps that you talked about, topography and color and points of customer touch and consumer touch. That just doesn't happen. It's a very different space that we work in. I think number 1, that gives me a lot of confidence.
Second reason would be the data giving, the clinicians on this stage and throughout the market, that reason to believe this is the best data set that at least I've seen in my time in the aesthetics industry, in terms of the number and the quality of the research and the data that came back. It's finally, it's the management team. You just mentioned, Mike, this is a new company. I disagree with you respectfully. The management team that you were introduced to here today, these are some of the most experienced executives in the aesthetics industry. This is not at all a new company. These are folks that have done a lot within the aesthetic space, and I've got tremendous confidence that they know what this industry needs.
I appreciate that. Dr. Harper, same question, we'll just go down.
I think for me, it's a combination. When something's new in this industry, I tend to be a pretty skeptical person. When you hear the same words, how does it actually fundamentally act or behave differently? What piqued my interest initially was the quality of the management team, then I wanted to look a little deeper and make sure that it wasn't just business as usual. I think what really turned the corner for me, and it's clear that I'm kind of a technology nerd, I think the fact that if you look at the way the technology team alone is built, it's not a pharmaceutical technology team. I believe fundamentally that all companies are somewhat of tech companies in this day and age. It's the only thing that truly allows us to move fast enough and scale quick enough.
You couldn't scale overnight without heavy utilization of technology. I just don't believe that that's possible. To see a very unconventional technology team, a very modern approach to the way they're approaching the market in what I consider like an omni-channel frictionless pathway, which is extremely important to me. I think that the experience plus that does make it a fundamentally different experience.
For me, what instills confidence in this company is two things. One is the clinical data, which we've already reviewed. Before I even saw the clinical data, I was eager to find out more about this company because of the leadership team, I'm extremely confident in the capabilities of the leadership team. Whenever Rui Avelar's name is attached to any sort of study, you can be sure, we as physicians can be sure that there is a high quality of scientific rigor behind that data. Even before you even see the data, you can be confident in it. As you've demonstrated, the data speaks for itself. Mike and David have been in this space for decades in significant leadership roles. As a medical community, we've interacted with them for many years, they really understand the physician perspective.
They understand the importance of physician relationships that a lot of other members of other companies' leadership fields don't really understand. That unique perspective is key to the fundamental success of a company like this, they truly understand that. Beyond that, they really get the consumer and the potential consumer mindset unlike any other leadership team or unlike any other company I've seen before. The ads that they've rolled out, the marketing package that they rolled out, when I first saw one of the ads, I had like an aha moment. I was like, "These guys actually get it." As a provider, also as a patient, I'm like, "That's me up there." I completely understand that they understand where I'm coming from and where my patients are coming from.
From, as a provider, as a patient, these guys just understand the consumer experience from start to finish, and I really couldn't ask for anything more.
Thank you for that.
I think when we're thinking about confidence, building confidence, instilling confidence, why would I make a switch or a transition? To me, I think much like you've heard from everyone, it's kind of multifaceted. There's a myriad of reasons why. I think first and foremost, there's fidelity in the science. I'm not going to belabor that. I think Dr. Avelar has already done a great job of distilling down years of his work to nine minutes. That's all it came down to. Nine minutes. Ultimately, there's just tremendous fidelity, trust in the science. That's important. To me, though, it's about the experience. What is the experience that I'm trying to curate for my patients at my practice, LUXURGERY? It's the confluence of luxury and aesthetic surgery. We are a luxury goods provider, but my luxury product is aesthetic surgery and aesthetic medicine.
Delivering a high level of clinical care is a given, and now it's matching the experience with it. I've got good science in my practice and delivering it to my patients, which are my clients. I think what's often been missing in the industry for a patient or for clinician adoption, even with the other toxins that are out there beyond just the industry leader, is that there hasn't always been as great of science, and it hasn't always been a patient-centric or clinician-centric approach.
Right? I'm delivering this care to my patient who's my client. Who's really actually focusing on me being their client other than just sending a rep into my office? Are they really building my practice or just say that they are? Again, I think with the models and everything you guys have rolled out, I actually fundamentally think that your team wants to build the industry, build my practice at a patient by patient, account by account basis up and expand the market because you're taking a very innovative approach to these treatments, which historically have been affiliated with some negativity. I think that word frictionless is so important. I've been thinking about what frictionless means to me, and you guys have said it a lot today, but friction to me means an abrasion. Friction to me leads to erosion, right? That's what friction does.
Erosion in my practice is erosion in my experience. It's the experience from my patients. It's an experience from my staff. Ultimately, I'm on the receiving end of all of it. I need something that's not going to lead to erosion, abrasion, and friction, yet LUXURGERY. That is a really important confidence builder because someone's taking the friction, the erosion, the abrasiveness out of the process and complexity and making it a simpler process for me.
It's amazing. If you come into our offices, we literally have more of a polarizing group. We have our entire financial group that's in there looking at stock and our financials, then we have the entire tech team that could care less where the stock goes in any given minute, day, week, or year. They're just head to the ground trying to figure out how to eliminate friction out of this market. They're truly there with a purpose to change the industry versus anything else. It's fun to have people appreciate that, especially within the space. I'd like to now turn it over to the group here for some questions, if you don't mind. We'll start ladies first.
We talked a lot about that friction point. I was wondering if you can walk us through that interaction with a patient when they come in asking for something else, don't necessarily know #NewTox, but they're coming in asking for BOTOX, obviously, it's a market leader. How does that interaction at this point proceed for you? How do you respond to any kind of resistance there? That friction of switching that patient over. Do you intend on switching patients over? Do you just intend on bringing new patients to the market? How does that work for you? Just walk us through that interaction.
If the clinical data proves to be true in my hands, I do intend on switching patients over. I do hope that there are new patients that are brought in. I think it's going like, we were using the word friction. It's going to be a frictionless transition for several reasons. First off, it's reconstituted the same exact way of BOTOX. It's injected the same exact way. The unit conversion is the same exact. We put a lot of hours in training our staff when there's a new toxin that's formulated differently in terms of reconstitution. All that's taken out of the equation. From a practice perspective, that's going to be easy. In terms of speaking to the patient, patients come to me as an expert in this field.
Even if they come in with, "Oh, I'm here for my BOTOX treatment," if I say, "This is a product that's just as good, perhaps can perform better," they leave that choice to me. I don't think it's going to be a difficult conversation in my practice with the patients to switch them over. I think it's going to be a very smooth transition from the back end of the practice working.
I'd say for us in our practice, patients come in and are very educated these days, but they're often not as educated as we think. They come in and they take anything that's done in a syringe as BOTOX because that's been the word that's permeated. They come in and it's like, "I want that new BOTOX in my lips to volumize." You're like, "No, that's going to make you not be able to speak," right? The fact of the matter is, they say, "Oh, I want that new BOTOX here." It's like, "But you're asking for a flu shot." Like anything that comes in with a syringe is basically BOTOX.
I think the word NewTox has the ability to permeate into the American lexicon, much the way BOTOX did, kind of break away from what traditionally has been thought of as maybe a frozen face or different issues in that capacity. I think patients, again, as Dr. Avellar said, trust in us. They certainly come to my practice and they say, "What do you think I need?" Right? The filler market has exploded, I've never been happier. It's an abundance of riches to have several different paints or colors to paint with as what we would think of as an artist in that capacity. Again, from this standpoint, it's going to be understanding what the patient wants. They want to refresh their face or relax lines.
They're not typically coming in and saying, "I need Xeomin, I need Dysport, I need BOTOX." I think they will ask about Jeuveau specifically because there's going to be such a tremendous new interest and buzz in a modern toxin. I think converting them, switching them over is going to be fundamentally predicated on what we think is the best option for our patients as clinicians.
If I could add one-
Yeah.
Oh. If I could add one thing, and I caught at the end, switching was at kind of the root of your question. This is not a zero-sum game. I want to go back to some of the data that was presented earlier that only about 7% of the target demographic for neurotoxins in the U.S. has been penetrated to this point. I think back to my time at Allergan, this is many years ago. This has always been a single digit penetrated market. There's so much more room to grow. This is not a zero-sum game about physicians pulling share from BOTOX or from Xeomin or from Dysport.
This is very much new sales, it's been 10 years since this particular part of the market, the biggest part of the market, has had an entrant, it's never been done with a forward-thinking, customer-centric, consumer-centric, design-focused firm like this. I'm very bullish on the fact that this will expand the market. Another question, we'll go through these.
Hi.
Oh, sorry. Hi.
Louise Chen from Cantor.
Hi, Louise.
Thanks for taking my question. My question for the physicians on the panel would be, how realistic do you think it is given Evolus's guidance that they will be the second player in the market in 24 months? If you think that's realistic, do you think they can get beyond that? Can they get to 30% share or what would it take for that to happen? Thank you.
Be careful how you answer that, guys, because you'll hold us to it. Go ahead.
I think for us, what we're looking for is pretty simple. You can boil it down to a couple of things. The data has to play out. We've seen good data. For those of us, we're trained to be skeptical, we're trained to not trust things. We've seen products launch and their data not to be totally supported and then just not to succeed. First and foremost, the clinical experience that we experience has to match the data, which we expect it to, but we need to see that happen. Number 2 is this frictionless methodology has to play out. It has to move forward. With that will come increased profitability and increased ease of use.
We also, kind of paralleling on both of those questions to some extent, with the 6% market penetration, almost by definition, everybody in this industry is an early adopter. The fact that it's new alone has tremendous power that I think is underestimated. I think that the industry as a whole, it's improving. The whole industry is improving. Whereas maybe five, six years ago, we only had one company that was really robust. Now that we have multiple companies, we're already starting to break our own bundles because we want to pick from the best products in the industry.
A combination of good clinical data, good performance, better profitability, ease of use, really answering kind of our, I don't want to say grievances, but the things that have made it difficult for us to do business for years, I think removing those pain points sequentially will definitely lead to its success.
I'd echo what much of Justin said. On top of that, I think when you look at it becoming your kind of startup by saying, can it really in 24 months become the second biggest player in that capacity? I think it is very likely that it would, and I think there are very few barriers to it not. Primarily because the other two players in the market, the non-900 kilodalton molecules, the non-BOTOX ones, when they came onto the market as a clinician, one speaks a different language in its preparation, its dosing, the way I have to tell my team to reconstitute it. My team focuses on becoming a creature of habit in terms of, okay, this is the standardized dose. This is how Dr. Shridharani likes this toxin to perform. Too much means it's going to dilute and may spread.
Too little means you'll drop a brow because it's so concentrated. They spoke different languages on one of them. The other one, I think, plain and simple, really hasn't performed as well as what the gold standard industry standard was. Again, that could be for several different reasons. They don't compare unit to unit, apples to apples in any capacity. It's all of a sudden, why would I change what I'm doing when I'm getting such great outcomes unless a patient, for whatever reason, requests this other product by name? Because for me, it's not about the price, it's about the outcome. It's about the procedure, because we know we're going to build our practice based on giving people a good quality outcome.
I think it is very feasible and likely that it would become the second biggest player within 24 months, because I'm tired of everyone saying frictionless. I'm going abrasionless transition to something that's not going to create a lot of issues in terms of this, again, frictionless transition.
We've got a question here and then one in the back. Oh, perfect. There's another one right here.
Hi, Irina Koffler, Mizuho. I have two questions. One is, do you have excess capacity in your practices to absorb this market expansion if it should come? We toured and met with a group, several doctors that were booked years in advance with their injections or facelifts. Just wondering if you have an increased patient volume, if you could absorb it. That's the first question. The second question is Evolus helping you market your practice in a way that you before have not had assistance with? Can you see it benefiting your bottom line through other expansions into other procedures for your patients?
Good question. I'm happy to answer on the absorb the demand. We run a fairly large practice with a lot of annual patient visits. I think what you're watching in the market as a whole is the, it's incredibly rapidly growing in terms of total number of providers out there, the total number of practices. The expansion of the infrastructure of the market is definitely there. If you're looking at do we have an infrastructure that can support additional growth or rapid growth? I would say absolutely. Do all of us up here have individually enough capacity to handle all the growth? Probably not by ourselves, but collectively, I think the market can definitely absorb that growth. I'll let somebody else answer the marketing question.
I do think Evolus is supplying us with marketing assets that are useful. They're providing us with content for social media, content for email campaigns. Other companies do that, I think what's innovative and different about this company is it's one thing if they give you an ad to use or a social media post to use. It's not as impactful if it doesn't resonate with the consumer. This marketing material really resonates with the consumer because the company understands that mindset. It's useful content that we're able to incorporate into our own media strategy or marketing strategy, and then they have their own additional marketing content. I think it's a thought out, a well thought out, and unique marketing strategy that we haven't received from companies in the past.
Well, I think because they're the only neurotoxin that is an aesthetics-only indication, they're not beholden to certain types of restrictions that historically people that have to go through Medicare reimbursement or different things like that are. They're so focused on the beauty and the aesthetics brand component that I think that they're thinking and looking at it very differently. It feels forced. Maybe look at that ROGAINE and Hims ad earlier that Mr. Jafar showed. You're looking at ROGAINE celebrity endorsement. Okay, we've seen that over and over again. It's kind of like, okay, you've got the traditional model and then the model that's thinking really differently.
I think that, the big key element is that they're an aesthetics-only company and not beholden to the insurance component because they have no intention, at least as I'm aware of, to go after anything other than aesthetics. I think they can really partner with us differently for aesthetics-only practices.
Thanks. It's Gregg Gilbert from SunTrust. Mike, I don't see any coral-colored socks up there.
Hang on. Hang on.
It's almost there.
It's almost there. The orange and the pink was supposed to kind of.
Yeah.
It might be a little bit closer.
That design element hasn't gone there yet.
For the injectors, if a skeptical analyst or just a skeptical person comes in and says, "Hey, you're telling me this is a new, exciting brand, but you're not telling me it's fundamentally different or better than BOTOX. I read an article that suggests you're buying it more cheaply, yet you're charging me the same amount." Is that an issue, or do you just tell someone like me to shut up and give me BOTOX and go away? My second question is, are you noticing any competitive responses already from the other companies? If not, what do you expect them to do? Thanks.
Competitive responses. I'm sure your phones are probably blowing up right now.
I left mine in the back.
It's like
I don't mind answering the first question or that standpoint. No, we're not going to tell you to shut up and go away from that standpoint, of course. Basically, the way we look at it from so many different perspectives are, the market became commoditized for a while because there was sort of only one major player in the market. Then the other two have tried to fight on price but haven't really brought an equivalent or perhaps in some individuals' hands, potentially even more equivalent or a superior product. That will get sifted out once we actually get to use it. There's only so much the data can take us. We have confidence, of course, that it's going to be a non-inferiority well-designed study. Once we actually start using it in our own practices, we may find that it performs potentially even better.
With that in mind, it's going to be all about the outcomes that we deliver. The fact that they're trying to put money back into our practices can translate, if you want that to the patients, or it translates into the profitability that deserves to be there. We shouldn't have been commoditizing this and turning this into a price per unit type of treatment. This is ultimately a medical procedure. What's happened is that so many people have fought on trying to differentiate. We, as clinicians, commoditized and cannibalized our own practices and markets by starting to go on a price per unit. The biggest part of our non-surgical practices or for an injection-only practice with dozens of injectors is neuromodulator injection. Why should that be the lowest amount of money that is made, considering all the things that can happen with it?
It's just, again, become so commoditized socially and in our practices. Bringing value back is actually just restoring what it should have been to begin with, which is us making appropriate margins on the medical care that we're delivering rather than it being, okay, now we're going to fight even more on price. I am really glad you guys took a high road with your list price that's out there, because otherwise, that would have been the first thing people would have said is that it's so much cheaper than BOTOX. Why aren't we getting that savings or I want the cheaper one? Patients don't need to request a product. They need to request a treatment. I, as their doctor, decide what it is that's going to give them the best outcome. I'll worry about that part.
Yeah, I'll add to that. The conversation around price was around the IPO of the company and obviously FDA approval because the financial community had to figure out what the success of this company would look like with no history, right? Clearly, price is at the tip of the spear. That conversation is long behind us. The conversation around profit is within the customers and the company. It's no different than every other program in this space. There are price differentials amongst everyone that's sitting here based on the loyalty structure. Our PR initiatives and our consumer campaigns speak to premium. In the event someone were to look at our price, our press release of a premium price is what they will see. It's not to our benefit or to the industry benefit to be talking about price.
As a matter of fact, it's probably a bigger detriment to market leaders than it would be to us. Know that the position that we're taking when it comes to consumer language is about premium and an experience. There was another, I think, follow-up.
Competitive response
competitive response. Yeah. Yeah.
So, um-
There's one more just follow-up question on the competitiveness, and then we'll jump right to the back.
There have been direct-to-consumer marketing campaigns for rebates and discounts from the other companies in response to this.
I would say there's just tremendous activity in general, which is not I don't look at it as a bad thing. The fact that the amount of stuff that's happening right now has probably exceeded the previous six months or the previous year, that the more noise there is out there, the more people get exposed to it, the more everyone has to Sachin and I work in New York City, we have, as you could probably reach your arm out and touch a competitor, and that's not necessarily a bad thing, right? It makes us differentiate ourselves into things that improve the overall experience. I think that tremendous increase in activity is definitely going to be good for the market.
Emma Vernarskala of Capital. My question is, your product is improved for glabella, correct? Do you expect doctors to use it off-label? Patient doesn't come in just for glabellar lines. They come in for forehead lines, for crow's feet around the eyes. Is your salespeople going to tell physician, "Oh, you can use it here off-label?
It's a great question.
Doctor can decide, well, it's only approved for glabellar. Why would I buy this product for glabellar only when BOTOX I can use everywhere?
It's a great question. I'll answer our sales force direction, and I'll look to our physicians here to answer in terms of how they're used. I'll remind you that the original indication for BOTOX was not all three areas, right? That market over 20 years has consumed that product in a variety of different areas. Not every toxin has all three indications today, and it's used rather versatile. That's to the doctors to answer. In terms of our direction, our direction is purely on what our label indication is, which is our glabellar. It's our 20 unit indication. That's the direction in terms of the sales force. Where physicians use it, we can't really speak to that, but I'll turn it over to the panel.
BOTOX's initial indication was glabellar lines also, and we as the medical community have been using it off-label. I believe they got indication for forehead lines just a couple of years ago, and we've been using it on the forehead for years prior to that. Similarly, I anticipate using it off-label. We're using BOTOX on the neck and using it in the masseters of extremely popular treatment right now. We use BOTOX off-label all the time, and similarly, I'll be using Jeuveau off-label as well.
We do clinical trials in our practice. When you're getting a clinical trial, you don't have the ability to just get a blanket approval for anything and everything. You have to study that specific muscle group. I think this is just obviously the beginning, start somewhere in that capacity of the product. Medically and legally, we can do whatever we please with the product once it's in our office and we know how it behaves already. I think we'll be rapidly adopting it and using it the same way we would our other neuromodulators.
I think we have time for one more question, please, and then we'll turn it back to the broad panel.
Yeah. David Amsellem at Jefferies. I have two questions. The first is, the manufacturer of BOTOX, without putting exact words in their mouth, says there's the premium product, i.e., their product, and then the discounted products, i.e., XEOMIN and DYSPORT, and that for Jeuveau, that's basically clinicians like you are basically going to replace DYSPORT and the other product with Jeuveau versus BOTOX. First question, is that correct? Is that what you'll be doing in your practice? Secondly, there's some evidence from the data that Jeuveau lasts four or five months versus three months for BOTOX. Is that a point that you will be using with your patients?
I can speak to. For me, I try not to get into the exact endpoints of the studies, because what I'm looking for is the clinical effect that's going to make them happy. I want to see that that's the same or better. When you look at adoption, I actually think it's easier to replace like for like, is kind of a concept that I think about. If somebody has something that they really enjoy or appreciate, I think that it will propagate out in this market because it's a cutting edge market. Our cutting edge consumers want to try the new thing. Especially for practices who only use one and who don't have the skill set to translate the language as Dr. Shridharani mentioned, I think they're naturally going to start replacing things that they know with other options.
Something I'd just like to touch on in getting back to the fact that this market is 7% penetrated. It's important that we focus on the 93% of considerers and that this isn't a zero-sum game. The summary that our clinical team has looked at, they've looked at the data and what they're seeing and what they're beginning to message their patients as they develop their wait list, which they have for Jeuveau, which is great to know we'll have it next week, is that the data shows that the onset is at least on par, the duration is at least on par, and the satisfaction is at least on par. That's enough for them to engage in a conversation with a patient.
Any final remarks regarding that? I'd like to invite, I believe, David to the stage and close us off. Thank you all for joining us. Really appreciate it.
Okay. Thank you all. As we enter the final portion of this Investor Day, leave you with a couple things. The first is we have a clear vision. We're entering an established market that started in the pharmaceutical space. We see an opportunity to transition this category, much like our customers have already transitioned their offices from a medical to a beauty space, and the way that they interact with their patients and the way they communicate. This is a category that's moving from a niched space in medicine to mainstream and beauty. As an industry, we need to evolve with it. Being aesthetic only gives us a strategic platform and an advantage to transition this market from pharma to beauty. We believe we have the right platform for the future. It starts with the group that we've built today. We are focused on creating a movement.
Everything you see, from the way that we communicate, the look and feel of the company, to the team that we've hired on, it's all by design. Over the course of the next 12 to 24 months, we have an edge. It's our singularity and focus. Our ability to launch Jeuveau and achieve the number 2 market position in the next 24 months is dictated by the quality of the people and the quality of our marketing coming together with the new digital platform that will power this company. In the future, we have a lot of work to do. We think a lot about what our portfolio will look like over time, and we'll start initially in building out our pipeline in the face, and we'll continue to build our pipeline as well on the technology side.
We believe the combination of the two will enable us to build a product platform and a technology stack that will eliminate friction points for the consumer entering this category. We believe we have, in performance beauty, the right platform for the future. I'd like to show you this last video before I invite the leadership team up for questions and answers.
All right. We have some mics, I believe, on both sides, and turn it over to the group for any questions, thoughts, or comments.
Can you hear me okay?
Oh, very well.
Okay. Thank you.
Thank you.
My question first is to Mike, anybody else feel free to jump in here. I wanted to ask you, sorry to put you on the spot, why did you leave Allergan? What drew you to Evolus? What are your expectations for the company? If anybody else wants to jump in, please feel free. Thank you.
That's a great question. I get asked that quite often. I left a 15-year career, from a company I respect tremendously and obviously a formidable presence in this marketplace. Learned a lot just being around the individuals and the thought that went through that company. I left for the opportunity. I've stated before, there are 3 things that have converged nicely here, in the form of a unicorn, in my opinion. First and foremost, it starts with the product. We've all had many opportunities to seek employment elsewhere. The product sets the tone. It's the largest category within all of aesthetics, and it's the first product to compete against the market leader, which from my entrepreneurial side, allows me to play, build, and modernize something within my hands and obviously the team's hands. The opportunity to build something around a high-quality product was number 1.
Number 2, it was the market. We have deep relationships in this market. We pride ourselves in our personal relationships that we have. I don't think there's a single day, night, or morning that we don't talk to a particular friend. We don't even consider them customers. We consider them friends of Evolus. We do so because there's so much commonality and interest in seeing this market succeed. Having a great product in a market that you know so well, provides a tremendous opportunity to build. Lastly is, I know this may sound rather cliché, people create opportunities and people work for people. I have tremendous respect for the individuals here to my right, which to me was the face of the company. In May, David joined, David and I have worked together for years.
David listens to every single interaction amongst the management team, amongst the sales force, and more importantly, our friends in the market being our customers. You don't get that type of quality in many leaders. He knows exactly what the market needs as he spent his entire career in that. I appreciate his thought process and his carefulness as he migrates through this. The margin of error for me goes from here to here when it's someone that understands the market. Shortly after David joined, I got to meet Lauren through, obviously, the interview process, and a tremendous amount of respect for someone that's seasoned, that understands this market from the financial sense. Again, limiting my margin of error is the way I like to operate through life. Lastly, Rui and I have done this song and dance before.
We've created tremendous markets off of great products with great data that's been a first in this marketplace. I have an amount of respect for this gentleman beyond many in this space. To have a clinician mind, a statistician mind, and a practitioner that understands this market within a very unique subset within healthcare is an anomaly. I look at this as my unicorn. Such a gentleman.
Hi, Irina Koffler, Mizuho. It sounds like you guys are poised to make a very big move very quickly, and I wanted to get your take, David, as to whether you expect the market to expand very quickly this year or more that you expect to take competitor share very quickly this year, followed by more gradual market expansion. Also, you mentioned that you guys have 2,100 accounts open. Can you share with us, are these dermatology practices, medi spas, plastic surgeons? Give us a little flavor for that. What exactly does it mean to be open? Is it that you're buying product, that you're willing to receive samples? Tell us about that.
Right. Great. Maybe I'll answer the first question. I'll turn over to Mike to talk about the composition of our customer set that we've developed thus far. First off, history has shown that when new products enter this category, market growth has accelerated. You're already seeing it in the way that the competitors have invested. Some have increased their investment in direct-to-consumer advertising. You're seeing increased investment in driving patients back into the office with things like consumer rebates and different promotions. That level of intention and intensity is only there because the market's evolving, and with the new competitor, everyone gets a bit sharper. You're also seeing the effects that has amongst the customer community. There's a greater focus on this neurotoxin market. The postings that are occurring in social media or the attention on this category as a whole because of programs like #NewTox or
140 new Evolus reps in the market talking about a new product and a new way of doing business. All of these are catalysts that provide greater attention and spotlight on this category. Hard to predict what your mix of new versus existing. Clearly, there will be a portion of this market that moves to Jeuveau of existing users that are coming into the category, and there will be, with certainty, new patients coming in. You heard from Dr. Sunder about the younger demographic that heard about it on YouTube that's calling and asking what is #NewTox. Clearly this market has a lot of room for growth. Longer term, this market is all about driving new patients in the category. There's plenty of room for high-quality products to do very well, and we believe that our positioning enables us to be a contributor to that.
I'll let Mike take your question.
That's a great question. The question was in terms of the composition of the 2,100 customers. I'll tell you, it starts with the top. Highly productive customers, highly productive accounts that have spent years building their practices. We're not calling on accounts that's learning their way through this market because that's rather tough, especially at an early stage. The way we look at our called on universe and our accounts is against those productive large-scale accounts. Whether you're a dermatologist, a nurse practitioner, plastic surgeon, to us, it's the aesthetic focus and aesthetic orientation. Out of that 2,100, we're soon to reach 3,000. We believe that 3,000 set of customers will drive a seismic activity within a short period amount of time. Hence why we're orchestrating the account creation process to reach that 3,000. What does that mean?
One of the follow-on questions, what does it mean to have an account created? As you know, accounts that are purchasing a drug and have the ability to give you cash require several steps. Licensing, ensuring payment authorization is set up. There are several legal documents that need to process in order for us to transact with an account. That is behind us on over 2,000 accounts, soon to be 3,000. At the point of the logistics being behind us, it's as simple as an email out to all 3,000 accounts to download our app and start transacting all within minutes. That hopefully gives you some perspective in terms of the work on the back end.
Thanks. It's Gregg Gilbert again. What are you willing to share about how J.E.T. works? Is it a number of vials you will give for free to those accounts?
Yeah.
All the details you're willing to share would be great. I also just want to make sure I understand. I realize it's frictionless and that the injector points and feel are the same. Is there a training box that needs to be checked, or can someone get product on May 15th and inject it May 16th?
Right. In terms of J.E.T., as I stated, J.E.T. is a significant investment to create an experience within our customer and our consumer. That investment comes by way of downloading the application. They need to invest in transacting with their patients. In doing so, we provide them with five vials to start with across the board. Those five vials would be to download the app and start to transacting with their patient. From there on out, the volumes that will be unlocked varies based on the amount of feedback we obtain throughout that program from customers and where they sit within the loyalty programs. Some customers can consume 50-100 vials within a week, and some customers consume 8-10 vials within a year.
That range is wide in this market, which is the complexity not only against programs like this, but also the pricing conversation. The technology cuts right through all that. We recognize where you sit in terms of the status and your potential. You download the app. You get the five vials. You move on from that. We ask consumers or patients to send us feedback by simply texting Evolus the word #NewTox. As the first five patients text us, we unlock more vials for that particular account. That feedback in 30 days is collected because we ask a series of questions from both the account and the patient about their experience, about the treatment, about the outcome. Are they satisfied or are they not?
Within a short period amount of time, we'll have thousands and thousands of patients providing us feedback that we can give right back to the customer and shorten that evaluation period. That's kind of the semantics behind J.E.T.
Training required?
In terms of training required, there isn't a legal training requirement that mandates you from purchasing or injecting this product unless you have gone through some sort of gate that the company enforces. This is as frictionless as it gets.
Thanks. Don Allen. Is it on?
Hi, Don.
JMP Securities. My question is beyond the J.E.T. trial. What are your thoughts on sampling for the rest of the year for the general dermatology and plastic surgeon market, and will it change as far as quantity by quarter, second, third versus fourth quarter? Thanks.
You want this one? Go ahead. Yeah, in terms of sample, I'll start with as an aesthetic-only indication, the product is not a sample product. It's a promotional product. It's a big difference because that product can be handed to the customer for their use with flexibility. Samples have to be used exactly for the purpose of samples, which is to train or to onboard, not to adjust anything else within the ecosystem in this space. Our promotional product will be given to customers commensurate with their volumes. Again, another tether to loyalty and the complexity behind loyalty because there's volume associated with it. Do we expect that to change over time?
Much like anything in this space, when you launch, you launch with an investment in these promotional products, and you obviously wind down that investment over time because the market have then absorbed and attained a good perspective on the product.
First, just Mike, in terms of the 3,000 accounts that you're sort of targeting, do you know what % of the overall market that represents? I guess my second question in terms of price, one of the panelists sort of mentioned that they were relieved that you're sort of talking about a premium brand. There's also been talk about how under-penetrated this market is. Just curious your thoughts in terms of how much price is a barrier for some of the potential audience. How do you sort of think about your messaging of a premium brand and a premium price product out there preventing you from bringing in some of those incremental patients?
Yeah. Let me take the price question, Mike, then I'll take the second one. The price point for neurotoxin procedure, it's one of the most affordable procedures in this aesthetic market. If you think about a neurotoxin treatment, it's $300 to $500 for a patient to get treated on average in the U.S., and that treatment lasts anywhere from three to four months on average, is what we hear. When you do the math at a cost per day, it's costing less than a cup of Starbucks for a patient to get treated. Affordability to the consumer is certainly not a barrier for a patient coming in.
Now we haven't rolled out our loyalty program, but one of the objectives when we do later this year is to improve the affordability of that treatment because what we know on average is more patients come back twice a year than three times. We believe we can influence that through a loyalty program. You'll hear more about that in coming months. That being said, the investment that's happening within the customer community into the category of neurotoxins is limited because it's not as profitable of a procedure. That's why you'll find often that newer technologies that have greater profitability are advertised by our customers because they want to use that product as the opportunity to generate more revenue and deliver a different outcome.
We think bringing profitability back in line with neurotoxins, in line with what they're getting with fillers and other modalities will create a greater interest in this category. Clearly, we're not deployed on all 40,000 accounts. That would be an army full of folks. Within that group, there are about 10,000 to 12,000 rather productive. If you apply an 80/20 rule against that, you would know that we're concentrated against that 2,400 to 3,000 accounts that represents substantial opportunity. It'd be impossible to pin an exact number because as you saw from our panel, you have Dr. Harper, who has 11 locations in the state of Ohio. He's a large, obviously, customer. You have Dr. Sunder, who is an individual practice, or Dr. Shridharani in New York.
The variance here is so wide within this category, but I'd apply a simple 80/20 rule in terms of how we're concentrated in deployment.
In the context of medi spas, what proportion of patients would come in specifically asking for a brand by name and then perhaps end up getting a different brand of toxin?
Yeah, let me address this conversation of medi spas and different kind of subspecialty, which the reason why the market is so large is because this is one of the few procedures that could be adopted amongst a wide range of specialties. Outcomes vary, based on skill set, but the beauty of this opportunity in toxin is the breadth in which it could obtain. From a consumer mindset standpoint, and this is one of the most interesting findings in our research, they looked at medi spas as closer to a beauty experience than they did a medical experience. Our goal here is to work with our practitioners. As Dr. Shridharani said, this combination of luxury and surgery matters because the consumer shouldn't go in and feel like I'm totally in a medical environment and then step out and see something next door that feels much more attainable and approachable.
Our goal here is to work with our customers to help modernize their practice through their language and through the content. At that point, the consumer experience is really all that matters. Obviously, the brand awareness in this category builds up over time, but this conversation of #NewTox almost has immediacy in terms of asking for what's new, and that should give us a tremendous competitive advantage.
More questions.
Annabel Samimy. This is a really interesting technology platform that you have, and I know it's probably too early to talk about other products, but how scalable is this to multiple products, and do you see this as the basis for the growth for your company?
Yeah. The technology platform was designed to address two things. Number one, it's customer centric. The product surrounds the customer. That portfolio could be broader, and that platform is designed to absorb that. It's also designed for the consumer, that the next version that we'll introduce later this year, which is designed to increase the number of treatments per year and over time reduce the friction points for that consumer in consideration all the way to action. If you think about a platform, it shouldn't just be isolated to a channel. It shouldn't just be to the physician channel. It needs to be broader than that.
Over time, the vision is that a consumer who's engaging in digital media and sees a brand like Jeuveau or #NewTox, she should have fewer friction points from the moment she decides she's interested to the moment she's sitting in that chair. Our digital platform will enable us to connect that doctor and that consumer much faster, which is very different than bolting on creative ways to get the consumer to be aware of the brands, to engage with the brands, and then later go find a doctor to then go in and get treated another time. You can imagine
Every friction point results in a lapse of consumers that enter the market. The market growth has been healthy, but I believe we're entering a golden era where if we can bring both the customer and the consumer together through one platform, we can accelerate that pathway. That, of course, doesn't happen overnight. We have to roll out this platform and build it, and that's what we're committed to.
Excuse me. My question is for Mike. As you think about growing the total addressable market or expanding the market, and you think about the trends in the market, where the people that will need the products are now the millennials that five, 10 years from now will need it, but they now have a different thought process in being comfortable growing old with their lines. How do you expand or grow the market? Is that going to come through the science of the product, or is it going to come from creative and innovative marketing tactics that will be used by the company to sustain the growth going out three to five years?
That's a great question. Basically, the question is how do we view market growth and where the potential is from where we sit. Look, this market has been quoted to be under-penetrated for years. You've all known the saying that when all you have is a hammer, everything else looks like a nail. Our approach is very different. The goal is not to just do the exact same thing over and over and over again and then expect a different outcome, as we all know what that definition is of. Our goal is to speak a different language. As we roll out our consumer campaign, this will become very evident. Our language has shifted and will shift. Our color choices have been emulated across the market because people are realizing people need to absorb content very differently today. Our attention span is small. We want an experience.
We want something delightful. We want motion. We want activity, and we want to enjoy what we're consuming. Our design principle will help unlock and grow that market. The way we speak unlocks not only the bottom end of the market being kind of the younger 25 to 30, but also throughout the 40s and 50s. As you saw in our closing video, we believe beauty is for everyone, and that you should consume it wherever and whenever. Our key differentiator here is in the diversity. As you see it in our panel selection, as you see it in our leadership team, as you see it throughout our customers and our consumers and our sales force, but more importantly, as you see it in the content that we put out there.
We believe that we have the opportunity to cast the widest net to change the language, which hasn't been done before.
Irina Koffler, Mizuho. When you were talking about the price calculator, you had indicated that if the doctor goes beyond 13%, the discount becomes much better for them. Can you talk about how you arrived at that 13% figure and what that really means, and also how that calculator anticipates your competitors taking down the price of fillers or other things in the bundle?
Yeah, why don't I address the first one if you want to take on the second one, David. This market is on an individual-by-individual basis. I'll start there. That matters because some customers get to their status, whether you're with the leading programs or the other programs, by way of fillers only, by way of implants, by way of mix of all, or by way of toxins. That insight is important because to break a bundle, you have to realize what your points are consumed of or how you're obtaining these points as a customer. That calculator makes it rather simple. If you input a high toxin share within that practice, then your break-even point is going to be much lower.
If you input a significant percentage, meaning that most of my investment to get to this status is driven by way of toxin, that also impacts what that break-even point. On average, we assume that customers are in the range of 30, 40, maybe 50% of their status is obtained through the toxin. Which means the break even should be in the range of 10, maybe 11, 12. It ranges upwards of 16% on an individual and account-by-account basis. That is driven by the account that's driven by that conversation between that account and that customer. Our price point then comes into play because relative to the share you move, you get to see what offsets the one or two points lost on the overall portfolio due to the volume of product you're moving over at the deeper discounts.
It's a multi-variable dimension in terms of identifying exactly what is the sweet spot to break the bundle. I'll tell you, north of it, as you start to realize where that opportunity is, it is almost a logarithmic benefit to an account financially in terms of profit.
Thank everyone on the webcast and in the room today for your attendance, your interest, and particularly your great questions. We wish you a great afternoon.