And when we do that, we're actually giving room for a potential plan to be added. So, you know, we're in discussions with a plan that we would like to have a contract with going forward. We'll see if that happens or not. It is one of the areas where we have friction. So we'll see if we can get that done. And that would cause, you know, the rates to move to the mid to high 30s. I think if without that plan, we'll be more in the low 30s. We're only up a half a point this quarter. So, you know, I think still, again, very attractive. And I do think, you know, barring any other contracts or us wanting to do anything else, I think that kind of low to mid-30s will be kind of where we live going forward. And then I'll turn it over to Si for the second question on the volatility.

Thanks, Scott. Good morning, Olivia. Thanks for the questions. So in terms of overall volatility that we've seen over the last several weeks, I think a lot of it's tied to, as we had stated previously, the expected summer schedules, especially the HCP offices, and as well as the patients themselves coming in and being out of school and vacation schedules. I think you see that affecting an acute marketplace in which we're marketing within. What we do see, however, is an uptick in overall claims and then obviously utilization of Zelsudmi where we had our highest week, just as we stated from our previous week's data. And, you know, as it relates to back to school, we really do feel like there is going to be, you know, an influx of patients back in for traditional wellness checks. And then, you know, the natural tie to then potentially serving their molestom diagnosis. That obviously is going to vary depending upon where you are geographically, meaning, you know, some regions will be getting back to school a little sooner than others. But we do expect that to normalize here in the coming weeks. But again, I think we feel pretty confident based on what we've seen here in the last couple of weeks in particular in terms of an overall utilization.

Yeah, I'll just add a little bit to this, Scott. I think a holiday like July 4th, it impacted, July 4th was on a Friday, impacted that week. the week ending the 4th and the next week because people were taking long weekends and maybe a vacation the next week. So, you know, Cy mentioned us being an acute drug, and we're really dependent on NRXs coming in, though our refills have actually gone up quite a bit in Q2. As a, you know, quarter over quarter percentage-wise, they were up greatly, almost doubled. And so when you think about the impact of a holiday it's much greater in a market like this so and then even the week that kids go back to school they're not going to the doctor that week right so there's a little choppiness right now as well we expect to grow in the quarter um you know nonetheless like we grew in july over june even though there was a holiday in july okay great thank you both very helpful color thanks olivia appreciate it your next question comes from the line of brandon folks with H.C.

Wainwright. Please go ahead.

Hi, thanks for taking my question, and congrats on the progress. You know, just following on from the earlier question, you talked about sort of the back-to-school wellness checks. So, just sort of following on that theme, you know, as Zoltusmi continues to grow, can you just talk about pediatrician awareness of the product and the willingness to treat, the willingness of pediatricians to treat? Are you seeing an increase in both awareness and willingness to treat from a pediatrician perspective. Thank you.

Good morning, Brandon. This is Sai. Thanks for the question. And yes, I do believe we are seeing an increased awareness in the space, largely prompted through what our field force has been doing as we call on an equal amount of pediatricians compared to a traditional dermatology segment. So we do see an increase of the urgency to treat. We see an increase in the utilization of Zelsumi in that category. We're still hovering in that 25% to 27% range of pediatric utilization and prescribing of the product. So we feel very confident that that will increase over time. We have a lot of other tools that we are using to get out there as it relates to non-personal and digital promotions. And then being at the conferences, the pediatric community definitely does not have as many conferences as the dermatology community, but we will surely be at the ones that make the most sense in order to get the word out and, again, increase that awareness and ultimate utilization.

Yeah, and Brandon, hi, Scott. Thanks for the question. Just a little bit to add there. So, we're seeing growth across all specialties. Two of the metrics that we really like as we look at our performance is that we're adding anywhere from 150 to 200 new prescribers each week. Cy mentioned that we're over 8,000 now prescribers a year in. So, you know, quite good there, but not just new, but repeat continue to grow as well. Over time, it's trending in the right direction. And mentioning PEATs, I think in my comments, I mentioned the new consensus guidelines that were just published. And that was led by Nanette Silverberg, who was really one of, if not the top KOL in the world for Moleskine. We think that that's going to be a great educational tool going forward for peds that maybe aren't treating or aren't treating as much as they should probably. So I think it's pretty compelling. It's a very balanced and fair, and you know, that panel was comprised of, you know, some of the top pediatric derms, and again, in the world, and a top-tier pediatrician as well. So, and that, as you can imagine, that'll get a lot to play posters and whatnot or podiums at the different talks, including the pediatric ones.

Your next question comes from the line of Jeff Jones with Oppenheimer.

Hi, this is Meera on for Jeff. Thank you for taking your questions. Just had two questions. Just wanted to ask more about how do you anticipate sort of the Scripps trend to trend into the fall and how should we think about that seasonality in the second half of the year? And then my second one is sort of what investments and sort of like gaining items do you think will be required ahead of the Zeppi and Zeglice launches next year? Thank you.

Thank you, Maureen, Mary. I'll take the first question, and thanks for the question. In terms of our expectations, as I shared earlier, I think, again, as it ties to seasonality and the overall claims that we've seen in Q2 and that we expect here in Q3, I think it'll still be very much in line with our expectations. And, again, as we've stated now, kind of the overall, you know, kind of sequence of getting back into school should vote well for us as we're positioned, both our field force and then our other promotional mechanisms to essentially attend to the needs of the quarter. But, again, in terms of our overall expectations, very much in line with what we would see as per expected claims.

And I'll talk about the launches of the other products. So, again, you know, one of the reasons we really like these acquisitions is we really have our commercial infrastructure in place. And it's just we're going to leverage it. So it's really more about the marketing side and the manufacturing side. So and, you know, these won't have the same marketing budget that Susumi has. But, you know, right now we're looking at probably a March of 2027 launch for Zeppi. we we've made we've actually made commercial product are going through the different testing that needs to be done and then we need an FDA approval because there was a change in manufacturer sites here so and then it aligns really well with the national sales meeting if we do that so you know we decided to to make sure that you know we get everything done and we're able to train and launch properly instead of trying to do kind of a soft launch there so it'll be a minimal spend around it because of the synergies. And then Zeglize right now, we're, again, just ramping up manufacturing. It starts a little bit sooner in the process. So, we have to, we work on API right now. So, really, it's mostly manufacturing probably until almost middle of next year before we start really investing in Zeglize spend.

Thank you so much.

Yep. Thank you.

Your next question comes from the line of Thomas Flatton with Lake Street. Please go ahead.

Hey, good morning. Thanks for taking the questions. Just a quick one for John. You mentioned the step-up inventory, and you need to sell that through until gross margins come back to maybe more of a normalized level. Do you know how long that will take to burn through that inventory?

Yeah, thanks, Thomas. Appreciate the question. Yeah, so as it relates to the finished basis step-up from the finished good inventory, we've actually sold through all of that. What we did have on hand from an ATI standpoint that also had a basis step up, we will continue to convert that into finished good products, and we think that we'll burn through that in the next 12 to 15 months.

Yeah, it'll be Si's job to speed that up if possible.

And speaking of which, what can you tell us about the number of touches that you need with the docs before they write their first prescription? Has that changed since launch? Is there a differential between PEDs and DERMs? any kind of color on that would be super helpful.

Yeah, I'll take that question, Thomas, and good morning. No, it's a great question because I think in terms of when you get to a steady state or a steadier state, rather, you do see the need for lesser touch points, and I think that's indicative of our repeat writers that we have. This last week, we hit an all-time high of repeat writers of 193, so I think we have a situation where we have a really important element and a view of where that we see an overall view of there being a need to tie back to, you know, the validation of the clinical profile, and then overall tying back as well to the repeat utilization, as we also see with refills. And, you know, as Scott had mentioned, we've seen an 82 percent quarter-over-quarter increase in refills. And, you know, really, as I was mentioning, as it ties to the refill mechanisms, that 193 was to the refill count specifically the HCP writer count is at 157 at an all-time high in our previous week so we really do see you know a constant view and continued validation of that repeat writer and overall view of refills as well which I think decreases the amount of need of attention and frequency at times got it thank you thanks Thomas your next question comes from the line of James Molloy with Alliance Boulevard Partners.

Please go ahead.

Hi, guys. Matt on for Jim this morning. Thanks for taking our questions, and congrats on the progress this cue. Could you give us a bit of an overview on your view of the relative strength of YCANTS recently, as well as what counter-detailing messages you guys and they are using against each other out in the field? Thanks.

Good morning, Matt. This is Sai. I'll take that question. So, just to be pretty straightforward about it, we don't ever get into a situation where we do any actual counter-detailing. We stay very firm to our clinical profile, for which we feel incredibly confident on and in terms of our overall approved messaging. So, there's never a situation where we either train or suggest any level of counter-detailing. We exist in a very fortunate market in the sense that we're the first and only at-home treatment prescription option. There's never been that type of option to date. The other products that exist in the procedural space have their kind of own category, but by virtue of what we go to market with and what we sell every day in terms of the overall HCP category, very, very closely tied to our clinical profile, our efficacy story, our safety story, and overall access to the medication.

Got it. And any commentary on the relative strength of YCANTS in the script world recently?

Yeah, I mean, obviously we see where they're going. I think, like Cy said, there's room for both of us. I think you could compare our results and decide which, you know, and which revenue is growing faster. But, you know, I think there's, you know, they're used in different patients, different offices sometimes. There is some overlap in doctors using for both. So, honestly, I would ask you to ask them about their growth. It's really about us growing our own business. That's what we're focused on.

All right. Thanks for taking our questions.

Your last question comes from the line of Jonathan Ashoff with Roth Capital Partners, LLC. Please go ahead.

Thank you. Congrats on a nice quarter. How much of the 2Q revenue represents units versus channel fill?

Yeah, so Jonathan, in my script, I shared we actually pulled our days on hand down to three by three days. I'm sorry, which is under three weeks in the channel at this point and only up a couple hundred units basically of inventory. So very minimal.

Okay, thanks. And you mentioned 67 sales territories. Is that because you hired three more people? You know, 50 plus 14. Did you add three? And what were those geographies? You kind of rambled them off pretty fast.

Go ahead. Thank you, Maury, Jonathan. It's Pittsburgh, Pennsylvania. It's Shreveport, Louisiana, and Albany, New York.

Thank you very much, guys.

Thank you. Thanks, Jonathan.

This now concludes our question and answer session. I would like to turn the floor back over to Scott Plesha for closing comments.

Thank you, Operator. I want to thank everyone for joining today's call. I'd also like to thank the PELTOS employees for their continued focus, execution, hard work, and dedication in supporting patients, caregivers, and healthcare providers. Thank you again for joining our call, and we look forward to updating you on our progress in the future. Have a great day.

Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines and have a wonderful day.