Q3 2020 Vanda Pharmaceuticals Inc Earnings Call
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Ladies and gentlemen, thank you for standing by and welcome to the third quarter 2020, Vanda Pharmaceuticals earnings conference call at this.
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Oh no like your hand, the conference over to your first speaker for today, Vandas Senior Vice President and Chief Financial Officer Mr., Kevin Moran. Please go ahead Sir.
Thank you Eli.
Afternoon, and thank you for joining us to discuss Vanda pharmaceuticals third quarter 2020 performance.
Third quarter 2020 results released this afternoon and are available on the Fccs Edgar system and on our website Www Dot Vanda pharma dotcom it.
In addition, we are providing live and archived version of this conference call on our website.
Joining me on today's call is Dr., Mihael, Polymeropoulos, our president and CEO.
Following my introductory remarks also update you on our ongoing activities I will then comment on our financial results before opening the lines for your questions.
Before we proceed I would like to remind everyone that various statements that we make on this call. We forward looking statements within the meaning of federal Securities laws.
Our forward looking statements are based on current expectations that involve risks changes in circumstances assumptions and uncertainties.
These risks are described in the cautionary note regarding forward looking statements risk factors and management's discussion and analysis of financial condition and results of operations sections of our annual report on form 10-K for the fiscal year ended December 31st 2019 as updated buyer subsequent quarterly reports on form 10-Q.
Current reports on form 8-K, and other filings with the FCC, which are available on the Fccs Edgar system and on our website.
We encourage all investors to read these reports and our other SEC filings.
The information we provide on this call is provided only as of today and we undertake no obligation to update or revise publicly any forward looking statements. We may make on this call on account of new information future events or otherwise, except as required by law.
With that said I would now like to turn the call over to our CEO Dr. Mihael Polymeropoulos.
Thank you very much Kevin good afternoon, everyone.
The third quarter has been an outstanding quarter. Despite the pandemic disruption would speak into late spring.
The late spring disruption did affect demand for both HETLIOZ and Fanapt is measured by news creates quick each of the projects.
Given the several week delay from the time as quick as we can.
Tied to feel pretty Lucky EPS, the late spring and Pacsun Heck, yes demand translated to fewer starts in the third quarter, despite that and given the continued strong got kids HETLIOZ revenue was minimally impacted.
Our sales force returns because it feels in the summer and has effectively navigating local medical office closures and implemented telemedicine approaches.
Since late August we have seen a significant increase in use that's your kids with Google News clips in September reaching all time highs.
This trend has continued in October and we estimate again another record high could you shed tears screen generation in this month.
Despite the expected pay or hurdles, we remain optimistic that this demand will translate through into revenue and fuel HETLIOZ go into fourth quarter and leaves us with a positive momentum in 2021.
They have to use new script volume comes from both blind inside did not 24 individuals with a larger portion of these new prescriptions involving they cited non 24 population.
Well, it's not fun that's revenue in the third quarter was relatively flat compared to the second quarter.
In December we launched a direct to consumer campaign with National television advertisement.
While it is early in the campaign the lead indicators of web site visits and searches so significant increases as compared to before the initiation of the campaign.
Qualitatively pick on payments and you see the international dialogue on schizophrenia.
Aimed at reducing the stigma put these devastating illness impart.
<unk> follow.
Weirdness four hours Fanapt, Brad is entering the national stage and is being incented into the vocabulary of the U.S. population.
We remain optimistic that awareness, we need to used car that will hopefully translate to an increase in the number of patients on treatment.
Well, we continue the marketing and sales efforts aimed at growing our commercial revenue. We're also focused somebody's certain development pipeline on both the already committed to life as well as our.
Peak commercial pipeline projects.
The FTC view of our application in Smith again, you seem to four times the Nokia is ongoing.
Yes. The answer is granted priority review for this orphan indication.
And has said he could do for action date in early December.
DFT age the buggy to have two key since were two point formulations of personality on the mass the mass the capsule formulation for adults and the liquid formulation for children.
[laughter], we didn't seem to.
He's a new developmental disorder caused by a genetic mutation on chromosome 17, we.
Yeah.
And Mike Weve been listen in 90% of the peaceful and eight point mutation, maybe Ah Hey, Hi, Dan which is included in that Mike was a nuisance pizza and that he made you 10% of the patients.
The most common and most disruptive clinical expenses Oh, the disorder is they sleep disorder that impacts the function of basins and consequently their phones.
There is no approved consecutive for these patients.
But I think it's been working over the years in collaboration with a piece now because she organization prisms to double check is for SMS and didn't get the basins.
We plan to continue our collaboration to expand our efforts to increase awareness of the disorder and once approved.
The project for the broader dismissed patient population.
That's in the space and received a diagnosis to a small number of specialized that'd be clubs.
That it has and will continue to have problems relationships with all of this context across the spectrum of the diagnostic and therapeutic base uncertain.
Then is well positioned with the existing know how and existing sales force personnel to support the marketing and selling cookies and that's the best answer.
That's enough attacks 120000 births with an estimated prevalence of approximately 15000 basins.
Approximately two comes with some of them have already participated in bad this SMS registry and hundreds of associated with the prisms advocacy organization.
Thousands of basins are already diagnosed with DNA test maybe more remain undiagnosed.
Hi, underclass, its top and its a program and the network that will assist in improving our wins for us a mass while enhancing and accelerating diagnostics.
Well you didn't do you feel like the marketing authorization and bringing this important project to basins with SMS and they're probably lives as soon as possible.
On Tradipitant.
The people till they decided gastroparesis has reached the milestone of more than 50% enrollment for this time.
As we have previously communicated we believe the current phase three study can be the last Africa systems required for at the time.
With enrollment there maybe to be complete in the first half of 2021, we expect to have the filing for Gastroparesis.
Later in 2021.
As part of the clinical hold for saudis longer than three months prevent us from collecting patient safety data for longer than three months, which may affect the economy.
Do you see maybe prevalence of gas in place in the U.S. is only five even pay since the majority of which remain undiagnosed.
The only 58 approved treatment for Gastroparesis is Mexico combined.
First approved a 1979, which due to its potential of severe side effects case, a black box warning and limitations of years of no more than capable.
Based on a Q via data there are over 3 million prescriptions of oral metoclopramide dungeon.
Given the highly limited treatment options and the safety and Tolerability profile profile of Metoclopramide, we believe that a new therapy could achieve significant market share and tend to present, a beat of dollar peak revenue opportunity for that.
Okay. Thank you thought would be 10 programs in motion sickness and they told me during my time here [laughter] pause news on dispositions until deemed safe enough to continue clinical studies given the COVID-19 endemic.
In August we announced the results of the interim analysis from the well do some study.
Tradipitant in basins with COVID-19 pneumonia.
Which showed tradipitant may accelerate clinical improvement in patients with COVID-19 pneumonia.
And he analysis suggests that's where they can be actually accelerating the time to peak of improvement for patients with severe probably 19 when you.
He couldn't huh.
These effect may be of significant technical benefit for patients as well as for public health by decreasing the amount of resource employed in the treatment of patients with severe coconut oil.
[noise], although pretty even though he does it themselves are encouraging.
Larger sample size it would be required can definitively determine whether to get to know because you did benefit in hospitalized patients with coking 90 pneumonia by accelerating time to technical improvement.
The results from this interim analysis will be submitted for publication in the peer reviewed journal.
Additional clinical programs for HETLIOZ in the late phase disorder.
And didn't some yeah in OCC is spectrum. So there are in the final stages of planning before beginning their respective phase three programs and the next year.
Clinical development programs for Fanapt, including bipolar disorder.
Parkinson's disease psychosis.
And the long acting injectable formulations 'cause affinia are also in various stages of preparation.
This week.
We announced that the FDA has approved the investigational new drug application to.
Evaluate cystic fibrosis, and Splunk <unk> conductance regulator CSAPR activator.
The U.S.J. 110.
The treatment of allergic conjunctivitis.
This approval marks the beginning of Vanda is developing a therapeutic in ophthalmology.
By exploring the compounds dual anti inflammatory and pro secretary mechanism of action.
The initial phase two study will evaluate the acute I'm thinking from until the effects of B.S.J. 110 in an ocular allergic salads model and with the value. They close the could totally effects using standard oculus fluid assessments.
The results from this phase two study will help guide further development of via say you want to keep a b. Riley of ocular inflammatory conditions, including.
Dry eye disorder.
Right, Yeah, you disorders, our matrix healthcare burden with an estimated worldwide prevalence of 5% to 20% about 60 million.
Reports to be affected in the United States, the more than 10% or people older than 50 years old are affected.
Well put those games by geology dry eye disease presents with common clinical signs and symptoms, which include corneal epithelial engine decreased alternate sleep and tear breakup time <unk>.
Patient reported symptoms of automotive discomfort or functionally paramount in the low humidity environment.
Treatment options available in the United States. The prison include does that get so, yes, punctum plugs and the topical anti inflammatory drugs cyclists for it and you put the grass.
Despite the available options and even with the successes coal Restasis Insider said Brandon.
Hi, I disease is increasing in incidence and the base an unmet medical need.
Other relevant indications include Connie to come I totally conditions, such as those I will come back to guidance, which remain poorly addressed with coda to fund options.
To conclude we're optimistic about the growth prospects of our commercial products HETLIOZ and Fanapt as we enter the fourth quarter and look quite positive momentum into the next year.
We look forward to advancing older pipeline programs, and we're particularly looking forward to the pesky a decision on our SMS applications in December.
And beyond that were excited for the completion of the Gastroparesis program and then the filing in 2021.
I'll now turn the call back to Kevin to discuss our financial results for the quarter and after that.
I'll be happy to address any questions you may have.
Kevin.
Thank you my house.
I'll begin by summarizing our financial results for the first nine months of 2024, turning to discuss the third quarter of 2020.
Total revenues for the first nine months of 2020 were 180.5 million, a 9% increase compared to 166.3 million for the same period in 2019.
HETLIOZ net product sales of 116.5 million with a primary contributor and driver of our revenues for the first nine months of 2020 and saw a 12% growth can be compared to the same period in 2019.
Fanapt net product sales of 64 million for the first nine months of 2020 reflects 3% growth compared to the same period in 2019.
For the first nine months of 2020 Vanda recorded net income of 15.1 million compared to net income of 111.3 million for the same period in 2019.
Net income for the first nine months of 2020, including income tax provision of 5.6 million as compared to an income tax benefit of 88.1 million in the same period in 2019.
As a reminder, the income tax benefit of 88.1 million reflected in the financial results for the first nine months of 2019 includes the favorable impact of the release of Windows deferred tax asset valuation allowance, which occurred in the third quarter of 2019.
End of cash cash equivalents and marketable securities refer to as cash as of September Thirtyth 2020 for 348.5 million, representing an increase of $48.9 million to cash as compared to September Thirtyth 2019.
Turning now to our quarterly results.
Total revenues for the third quarter of 2024, 60.3 million, a 1% increase compared to 59.5 million for the third quarter of 2019.
HETLIOZ net product sales were 39.6 million for the third quarter of 2025% increase compared to 37.6 million in the third quarter of 2019.
The year over year growth of the heaviest business was driven by a combination of unit demand and that price favorability.
As of September Thirtyth 2020, the specialty pharmacy channel held under two and a half weeks of inventory on hand as calculated based on trailing demand and reflects an increase in value of 1.7 million when compared to June Thirtyth 2020.
Fanapt net product sales were 20.7 for the third quarter of 2026% decrease compared to $21.9 million in the third quarter of 2019.
As of September Thirtyth, 2020, wholesalers have higher inventory on hand calculated based on trailing demand when compared to June 32020.
The value of this inventory change was less than $300000.
Fanapt prescriptions in the third quarter of 2020 as reported by a quickie exponent increased by less than 1% compared to the second quarter of 2020.
The performance of the Fanapt business during the second and third quarters of 2020 was impacted by the pandemic and the related disruption to patient visits with their physicians and restrictions on physical access of our salesforce to health care providers.
Based on equip your reported data for 2020, other branded drugs and atypical antipsychotic class also appear to have been negatively impacted by the pandemic.
For the third quarter of 2020, Vanda recorded net income of 5.9 million compared to net income of 100.4 million for the third quarter of 2019.
Net income for the third quarter of 2020 included an income tax provision of 2.5 million as compared to an income tax benefit of $88.1 million in the same period in 2018.
Again, the income tax benefit of 88.1 million reflected in the financial results for the third quarter of 2019 include the favorable impact of the release of and its deferred tax asset valuation allowance, which occurred in the third quarter of 2019.
Operating expenses in the third quarter of 2020, or 52.6 million compared to 48.7 million in the third quarter of 2019.
$3.8 million increase was primarily due to a combination of higher R&D expenses related to our late stage clinical programs and higher commercial expenses related to non 24 awareness and fanapt marketing efforts.
Operating expenses in the third quarter of 2020 were essentially flat as compared to 53 million in the second quarter of 2020 as new randomization for several clinical trials remain on hold as a result of the Cove in 19 pandemic.
We expect operating expenses in the fourth quarter of 2020 to be highly dependent on developments in the pandemic and the extent to which it continues to impact our R&D and commercial activity.
We will continue to assess the impact of the evolving pandemic on our business and operations will provide future updates to our financial guidance as necessary.
The financial guidance, we previously communicated included the following financial objectives.
Net product sales from both HETLIOZ and Fanapt of between 240 and 260 million.
HETLIOZ net product sales of between 155 and 165 million.
Fanapt net product sales of between 85 and 95 million.
Year end 2020 cash of greater than 340 million.
I will now turn the call back mouse.
Thank you very much Kevin.
At this point, we'd be happy to answer any questions you may have.
Thank you as a reminder to ask a question simply press star one on your telephone keypad.
Please stand by while we compile the Q and a roster.
Our first question is from the line of Jason Butler of JMP Securities.
You May proceed with your questions.
In for Jason Thanks for taking my questions I guess, that's the first one do you have any updates on the animal Tox studies.
Requested for the treat if it didn't by the FDA in progress with the agency and then I guess sticking with the FDA theme any.
Can you give us any details on discussions with agencies around the HETLIOZ I ask Andy for Smith again its thanks.
Oh of course, so first the question is for.
The Tradipitant nine month toxicology books study, which has been centered discussion with the FDA in order for the FDA to allow.
Safety side just to proceed beyond three months and.
And of course, you know that.
Vanda has kind of stabilized and explain the unnecessary nature of the study and insights.
That vanda will not come back.
That's it's not it does not have the scientific justification, but he will claim a the lives so far dozens of people dogs.
This discussion is a continuing on with the FDA.
So do the formal appeal process or with the agency and it is progressing.
Progressing hot but I need to emphasize that Wow. This is going on the people told us what Krish. This study is ongoing and it is our expectation that if we do have posted good results in this study.
Studies by mid 2021 that will be sufficient.
To file for Gastroparesis syndication.
Holdco, we can anticipate that there may be restrictions or to the length of pitman two or three months.
Of course, all this is a crazy to be discussed, but we believe that given the the cloak them I'd label of three months in the absence of any effective treatments or beyond that.
The FDA <unk> EMA results of course, you will see our application favorite hi.
No guarantees.
Of course, but will continue this discussion with the FDA.
Your second question had to do with the Smith Magenis syndrome.
The view is progressing.
And we believe that the agencies will take action.
By either target <unk> date of December 1st.
Okay, Great and then I had a follow up.
So they they gastroparesis trounced restarted while some other trials not restarted beauty comedy digits local variability in decision, making or what's the rationale there. Thank you.
Of course, the biggest appraised study had.
Not really slowed down not oh, the stock comp.
Last but not all sites I could close and if you people who are ongoing and we managed to get a drug to their homes.
But of course, it is the nature of the disorder.
You understand that this is a.
She's extend the time slight could attain because shorter these patients have no options. So it almost thought it is a pass through from patients and their recognition by the investigators and sites that got the study must continue.
[laughter] contrary to that for a topic dermatitis there.
There are other therapeutic options, although there is still a significant unmet medical need and you can see why for that indication. It it is a little more difficult.
Correct and you could do with any increase in speed.
On motion sickness I do recall, our positive phase two studies that we announced was.
It was conducted on actual boat travel.
So given the local jurisdictions.
It would be not possible to put these patients on the boat with the proximity and all the other.
Probably nine to their sections so hopefully.
Well.
Come out the other way and Oh, it's got seen something like and start begin these activities and decided it will be good.
Yeah, I, just also want to emphasize that.
The obesity study.
Of course in COVID-19 pneumonia. He is ongoing and in fact, it's tied to the base significant speed.
In April of this year at the peak of the epidemic in new.
New York.
It could very quickly the first 60 patients the results of which we report could then a mid late August and since then we had they slowed equipment.
Just a few more pace and so in fact in the last few weeks or giving you.
Due to recent peaks of course, they say something somebody sort of the country.
But these studies we are explaining it did not in our interest list is humping, because when you buy equipment.
Well you know we all know there are a lot of cases in Huston stations.
Nonetheless large studies now are almost exclusively run by the U.S. government.
It's actually creates a difficulty in recruiting so we are approaching the government and discussing the possibility of collaboration them.
Hopefully we can report on that.
Great. Thank you very much.
Sure.
Next we have a.
Chris Howerton from Jefferies. Your line is now open.
Great. Thanks, so much for taking the questions and congratulations on all the pipeline progress and obviously persevering in the face of pandemic.
So for me I think interestingly, mostly related to financials they think.
Hi in terms of the questions that I have.
So I guess first and foremost for HETLIOZ in finance.
Maybe in the holiday is a you can remind us in terms of.
What the current kind of market access restrictions are and you know any color you can provide to us with respect to conversion of new prescriptions to to paying scripts. The second question I have a relates to Smith Magenis syndrome, just kind of you know what is.
The expectation in terms of the trajectory of the launches there is fair amount of patients that you have in either an expanded access or compassionate use that you could theoretically convert to paying customers and what is you know what's the expected payer mix for that patient population and then the third one is probably a.
Relatively simple question, but just trying to understand the impact of the DTC campaign for financing.
You know how are you thinking about the incremental spend in the face of delays of potential label expanding clinical studies support for that drug and thanks, guys for taking the questions.
Yeah, Yeah, let's be clear about Chris So first of all let's discuss it'll get the care environment.
With HETLIOZ in non 24.
Nothing much has changed.
And as we have discussed before.
It is a minority.
Less than half of the creates a.
Written that actually.
Get field and that is good significant hurdles Oh prioritizations hurdles. This creates and then a follow on appeals. So that state of affairs has not changed impact has been pretty constant over the last several years.
We do plan to address.
Just first I did see a make a push for a better feel rates are but for now it is what it has been and we have characterized it for less than 50%, which is pretty sad the fair to think about it could pay since per week. This is the only choice.
Uh huh.
But as I pointed out the reason, we remain optimistic profit growth and momentum in next year. Non 24 is actually this serves all of your demand in your script that we saw in the last part to bogus, but it continued roaring into some 10 merger.
In October reaching now.
New highs for the entire history since launch Paul Farr chapters in non 24.
[noise] as we turn to your question about the is this launch and expectations.
We do have about 20 to 30 patients we have been on track for several years now. This is in the open label portion on the EPS. The most time.
So these people will make up for it upon approval of course two.
Two suits them to commercial projects.
Beyond that we will focus on our existing registry of approximately 200 or more prominence.
We thought from where he connecting letting them know about the progress of the PUCO and upon approval a win in the for profit is to see if Ah two actually get him to start the discussion with their physicians.
Our proximity in collaboration with prisms, where they have several hundred family. This is.
As members will be critical in getting the word out prisms has been fantastic for us in helping with recruiting for the very difficult to recruit our clinical programs and they're very excited we're brainstorming in ways.
That we can make their constituency I'm aware of the solution once approved.
Beyond that.
Yes, I mentioned briefly on the script.
The majority of the diagnosis with micro deletion mutation is done based personalized genetic laboratories.
We saw whom with one in particular, we have a well see.
Significant collaboration for years now.
And the others are standard Dillard's laboratories, where they can become a point of increasing awareness.
Beyond that we believed that working together with the advocacy organization and targeted.
Digital advertising will be able to reach into the potential thousands of patients lived in all that diagnosed and work with the advocacy organizations to actually enhance the rate of diagnosis not every patient with us and that's is diagnosed.
That I just talked about the payer mix of these basins. It is not yet tier there are.
Miners they're adults.
Some of them will get them done.
Yeah, pints insurance some of them would be in commercial and others will be on a government. It's something that we're sorting this out at least with a fabulous that's have a registered in our database. That's a project that we plan to complete can connect or a few months.
[noise] Ah Okay. The third question you had was did you see a step.
And how does that line up with the growth with the project.
I guess, maybe just another one just to maybe add a little color to that to move all of this is just you know I think if we look at the you know the spend quarter over quarter. This year was higher you know in the first quarter slightly lower in the second quarter and really you know basically flat to the third quarter. So I guess.
You know what sort of trajectory, there and and I guess is the D. T C spend for Fanapt, something that's meaningful lawyers or am I barking up and in Petri here.
[laughter] first of all let me say that the guidance we have a.
For the year for Oh personal expenses and the forecast.
Is inclusive of what we're doing with Fanapt, there's not a campaign, we just yeah Brent.
I don't have a you know it was planned I know if you think about the future I cannot quantify for you yet I'm not going to forecast 2021, but the principle is that if the campaign is successful in return on investment of course, that's a campaign that you want to find bonds even more.
What we do know is that.
Did any of 'em psychotics is highly promotional Lee.
Sensed it but of course, the testicles or too.
Two big so two we're testing all that the good news is with DTC, which they had they has actually extensive expenses you know over the last six years.
These incremental.
Yeah as long as we have a good measurement you can have Betty as he lead indicators. So before you could make any significant amount of money.
Money in the DTC campaign, you will start to know how its working and what your other lines. So the sum is no impact.
On the Opex for the year.
He will remain as forecasted.
And we're doing this to increase revenue and a little.
Continued this if actually the early indicators are that you will have a positive impact and we sure hope that he will and as I said earlier, the Veda lead indicators of People's interest and awareness.
Good.
Fantastic Okay.
Okay, well very clear and I appreciate the answers and then it could take to get loans.
Thank you peers. Thanks.
All right next we have a the line of Joe will be.
<unk>.
From Citi.
Your line is now open.
Thanks, Phil Hi, Thanks for taking the questions.
The first one is on the SMS you know I wanted to check with you and <unk> Gulf characterize your your confidence and approval for this setting when the FDA makes its decision in December you know it is kinda you know based on the history that you know you have the history of a successful approval for non 24, and then more of a.
Recently, it seemed to be the rejection with the Jetlag.
HM.
Yeah. So so I'm curious you know kind of where that falls on the on the spectrum of Oh, if you could consider it.
[noise], Yeah, I would say were quite comfortable.
And you have these dialogue around this and lessen the FDA is not view as you recall, we filed late last year and nothing new cells the view.
The if.
If you will was oh halted.
Going back to the FDA and we feel the way they.
The issues that prevented a further review and we agreed that.
If you can proceed.
And of course, nobody gets a glimpse of what's going to happen.
But certainly I would say the Oh, the FDA is working hard on this oh, if you and progressing a they're quite familiar.
With the disorder.
And our final and Oh, so I would point Q on or something quite encouraging.
The FDA has at its disposal.
The ability instead of an advisory committee.
To hold the meeting with experts or advocacy organizations and in this case in the summer.
They held sets a meeting with a decent can patient groups with SMS trying to understand what bothers us.
And it seems from the questions. This is publicly available the questions and the dialogue.
They were Oh trying to identify the key issue to be treated and it was confirmed by the spacing some problems than just confidence that it is the sleep disorder and that it is a sleep quality overall as measured by pilots that matters, which is.
What's our primary endpoint goods. So I would consider this that or the division is they engaged and they informed on the program and I would say were very confident.
Great. Thanks for that and then I have one other follow up question.
It's about your your use of cash going forward no I noticed that it seems like you have a growing cash balance.
And ER and you know, maybe roughly 50 million from a year ago.
Threeforty 8.5, now Oh, yeah.
Any any plans or any thoughts on how that cash could be used as it grows.
Yeah. So that gives me a lot of Oh security that we can execute on our programs.
Well that there has been a very conservative organization already 17 years of existence.
Nonetheless, we have made very significant investments both strengthening the commercial presence.
But also in the pipeline.
Our pipeline this year.
Given the covered pandemic or has not advanced is quickly.
So you may.
They see this reflected the oh personal expenses, but.
But we believe the balance we have not only gives us secure.
Security can independence that actually.
Gives us the resources, where we can invest not only of the growth of our commercial.
The next bucket pipeline.
I think a a beautiful example of that is the dirty early investment we made on the calibration would you see yourself on P.S.J. 110 is a novel mechanism of action.
50, our activator and precipitately agent.
We is moving into the clinic.
And he's going after a dry where if it's actually my knowledge of the patients are treated with a blockbuster so the stages and insider and remind you that besides a couple of years ago, you can reach the revenue.
$208 million a year at Shire and the project was acquired after the acquisition, but the key that Takeda.
Divested the pro Dex to Novartis for 2.4 billion or.
So oh this is a recognition that hot dry.
He's a very significant indication and going back to the Andreas I cast balance having the ability to.
To pursue this type of programs and close them is very very important for it he turned bugs show coverage.
Great. Thank you.
Of course, thank you very much.
[noise] [noise] and currently there are no further questions at this time I would now like to hand or turn the call back to vendor management for closing remarks.
Yes. Thank you very much all for joining us and I. Thank you very much for your questions and hopefully we'll talk soon and let's all hope for a good years beginning December.
With the SMB, Hey on SMS. Thank you very much.
Ladies and gentlemen, this concludes.
Today's conference call. Thank you for participating enjoy the rest of your day keep safe and you may now disconnect.
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