Q1 2021 Catalyst Pharmaceuticals Inc Earnings Call
Greetings and welcome to the catalyst Pharmaceuticals first quarter 2021 results conference call. At this time, all participants on a listen only mode. A question and answer session will follow the formal presentation. If you would like to ask a question you May press star one on your telephone keypad if anyone.
If you require operator assistance during the conference. Please press Star Zero on your telephone keypad. As a reminder, this conference is being recorded it is now my pleasure to introduce your host Ms. Alicia Grande Vice President and Chief Financial Officer and Treasurer. Thank you you may begin.
Good morning, everyone and thank you for joining our conference call to discuss catalyst first quarter in 2020, one financial resources.
And in the country, we have Patrick Mcenany, Chairman and Chief Executive Officer, We are joined by Mr. Steven and operate.
Officers, and Chief Scientific Officer, and Jeff Carney, Chief Commercial officer.
And the Q&A session, we'll also ha and Gary Ingenito, Chief Medical and regulatory officer.
Before we begin and we'd like to remind you and the final.
On my comments you on it.
And session and will make things and so on expenses.
Results, which maybe forward looking statements and practices.
Sales volume.
These statements relate to our growth.
And then quick action and are not guarantees of future six months.
And we'll see.
And assumptions that are difficult.
And it may prove not to yet.
Especially in light of the effects of COVID-19.
Actual results may vary.
These forward looking statements should be cash.
In conjunction.
And the opinion on it.
The SEC filings.
And maybe factors right.
Moving on.
And this time and all of it.
Yeah.
Thank you Allie and thanks, everyone for joining us this morning for our first quarter 2021 result, and do it.
Update call.
I hope that everyone is staying safe and healthy during these challenging times.
Although we continue to see physician practice and is beginning to reopen and many parts of the country data is still supports the fact that certain parts of the country are much Florida opened and others and.
Some patients remain reluctant and physical visits to physicians offices or its rollout.
We continue to see signs that these dynamics are gradually improving and we remain optimistic that we will see a significant uptake and revenues during 2021.
We are pleased to report first quarter revenues from $32 million versus $29 1 million from the first quarter of last year.
The first quarter of 2021 will most likely be the most challenging comparison.
Year over year, because the first quarter of last year was only modestly impacted by COVID-19.
Whereas the Q1 of this year, we were still recovering as we begin to move into the post pandemic period.
Despite being in recovery mode.
Had a good quarter.
Revenues increased from 4% over the same quarter of last year. However, there were several charges and effect on operating income and net income for the quarter and alloy and will explain those details on a few minutes.
GAAP net income was $7 7 million and non-GAAP net income was $11 6 million.
This year's first quarter net operating income was reduced substantially on a timing difference relating to a charge of approximately $2 million committed and the first quarter 2020, one per patient assistance and foundation to support programs.
We were we're required to expense and the first quarter, rather and then expensing and over four quarters of 2021.
Ali will be providing more detail regarding the differences for this quarter between the GAAP and non-GAAP financial results.
Very late in the first quarter this year.
Our board of directors approved a share buyback program of up to $40 million and as of today. The company has purchased and the open market and 507555 shares.
Common stock and an average purchase price.
On a $4 49 per share.
We continue to believe the rational purchasers of our Ishares and the open market is prudent and increasing shareholder value. While at the same time, we are increasing the cash on our balance sheet to be utilized for strategic growth opportunities.
We ended the quarter was $143 $3 million and cash and investments and.
And again no funded debt.
On the human resource side, we are well into our search for a chief product development officer, as well as bringing in house, our investor relations function and.
And we hope to on board.
Two very important new senior leadership position this quarter.
Our commercial team continues to operate at a high level, despite the challenging conditions.
The growth initiatives, we put into place a little over a year ago are now beginning to accelerate new patient enrollments, which ultimately drives increased revenue.
We have a number of new marketing programs and so we've introduced Joe will increase awareness of lemons, among physicians and patients as well as the fact that there is now and FDA approved therapy and furnaces.
So it is deemed to be safe and effective and.
And treating the disease.
Jeff will have much more to say about our commercial operations shortly.
Our research and development team continues to make good progress on your efforts to expand the label for them for an average brand.
We expect to make a final decision before the end of this quarter with regard to a potential path forward for Musk Mg.
It will be after we completed our discussions on this topic with the FDA.
Additionally, we are on target to begin enrollment of our proof of concept study for H N. P. P. Early next quarter.
Stable and provide you with more details on these programs as well as I've heard and long acting development program and a few minutes.
We've also been quite busy on the business development front, we are currently evaluating and conducting due diligence on several very exciting potential opportunities to expand our portfolio of marketed products and our product pipeline of early and late stage programs well, we haven't answered.
And do any binding commitments to this point, we have to pull the trigger on one or more product acquisition opportunities in 2021.
Turning now to our ongoing litigation with the FDA because on the reserve G to approval and violation of <unk> orphan drug exclusivity.
Oral arguments occurred on March 23rd 2021, and we're now waiting for a decision from the three judge panel on the 11th Circuit Court of Appeals.
And we don't control when the court will rule.
And we're hopeful on the support will render a decision and the very near future.
Lastly, with regard to the ongoing patent litigation with Jacobus Pharmaceuticals, and Panther or on the matter is proceeding slowly and is still on and it's early stages. We are vigorously pursuing the case in order to defend our intellectual property and we intend to protect our IP.
Wherever we determined that someone is infringing it.
At this point I would like to turn the call over to Jeff John Carman, Our Chief commercial officer to provide you with further details on our commercial operations.
Thanks, Pat and good morning, everyone. We are very pleased with Q1, net sales and $32 million, which represents 4% growth quarter versus the same quarter last year. Despite the pandemic ongoing negative impact on diagnostic visits and subsequent new to brand prescriptions and.
As mentioned this quarter and 2021 will most likely be the most challenging comparison year over year, because the first quarter and last year. It was only modestly impacted by COVID-19.
Strong net revenue in Q1 was driven primarily by new patient enrollments and outpaced Q4 2020 and.
And you had favorable reimbursement dynamics and a significant decrease and discontinuation.
Q1 is the third consecutive quarter with growth and new patient enrollment.
In fact, new naive to three for that patient enrollments were higher in Q1 and any other quarter. Since Q3 2090, 815% increase over Q4 of 2020.
Our strong patient persistence resulted in continued low 90 day discontinuation rates of less than 10% and 40% less and Q1 2020.
And as I had mentioned on our last earnings call. We expect continued growth in 2021 versus same quarter as last year and we build upon the momentum generated in Q4.
Through Q1, I E, a COVID-19 and margin impact.
Yes and diagnostics.
And the overall pharmaceutical market were approximately 12% lower and a hypothetical non COVID-19 scenario.
And fascination rates continue to increase we are confident.
Ignostic visit backlog.
And will translate into stronger new patient enrollment trends and the upcoming quarters.
Based on early observations and Q2, we are very optimistic about the growth potential preferred apps versus same quarter last year.
As well as vs Q1 2021.
And April new patient enrollments remained strong and compliance and persistence rates continued to be stable.
Catalyst pathways are free personalized patient services program and offers patients and families. One on one support throughout their treatment journey has done an outstanding job, ensuring adult <unk> patients have an optimal experience on for apps per.
Your scripts and approval rates remain over 90% across all payers and government or private commercial insurers.
And are more 98% of re authorizations were granted in Q1, which shows the value and third as is recognized by payers pay.
Patients enrolled in catalyst pathways, including those who are covered by Medicare and accessing foundation assistance and have an average co pay of less than $2 per month.
We continue to meet key milestones and the development and execution of our oncology strategy, which includes and detailed market assessment.
Direct work with oncology thought leaders and ongoing market research and.
And we move into phase two of this strategy, we are confident that through precision planting and provider education, we will be successful and achieving our ultimate goal, which is to support the unmet need of adult tumor lens patients.
We have already seen a slight increase and the percentage of new enrollments and.
Identify as tumor lens patients on.
And our in 2021.
One key element to highlight in this area is the inclusion of lens testing and the most recent national comprehensive cancer network guidelines for small cell lung cancer.
<unk> outlined the need for <unk> testing and small cell lung cancer patients complaining from weakness and autonomic dysfunction and a positive D. G. T C test indicate a possible letters diagnosis.
We expect that the strategies, we have in place, which shortened the diagnostic journey of adult <unk> patients and then even catalyst to serve the significant number of additional patients sooner.
Our focus on providing educational and branded resources and potential adult <unk> patients and has generated over 1400 unique users and have opted in on line to receive useful information regarding labs and.
She lives containing lens disease state information directed towards health care providers has also gained traction in.
In closing we are excited about the opportunity ahead to help all adult <unk> patients and I want to thank the entire team and catalyst for their unwavering commitment and <unk> community.
I'll now turn the call over to Dr. Steven Miller, our Chief operating Officer, and Chief Scientific Officer for an update on R&D activities.
Thanks for the commercial up there, Jeff and I'll now provide and update on our clinical pipeline to develop further for additional indications catalyst has now submitted our plans for a new clinical trial for the symptomatic treatment of M. U S. K myasthenia gravis or on the rest K M. G to the FDA from a review and comment we.
And the agency's response to our plans within the next 90 days.
And our briefing materials to the FDA discuss the differences and the design of the neutral relative to the design of the completed trials as previously announced our evaluation of the feasibility of conducting this trial is on.
<unk>.
Upon receipt of the agency's comments and completion of our feasibility analysis, we will update the investment community on our further plans for the symptomatic treatment of M. U S. K M G referred labs as.
As previously announced our multicenter phase III trial for the treatment of Emulous <unk> Mg with <unk> did not achieve statistical significance for the primary and secondary endpoints. We concluded that the trial did not meet its end points due to higher than expected day to day disease state variability and a large placebo effect.
Also previously reported there was a marked clinical improvement upon initiation of therapy, which leads us to believe preferred apps may provide clinical benefit for some patients finally significant clinical improvement was also seen in the previous proof of concept trial. We believe our proposed new clinical trial design will address the limitation.
And of the previous phase III clinical trial, and we hope the new trial design may better demonstrate the efficacy of further up from the symptomatic treatment of Mus K M G.
Catalyst will be initiating a proof of concept study to evaluate the treatment of hereditary neuropathy with liability to pressure policies or edge on P. P referred apps during the third quarter of 2021 and protocol for this clinical study is currently under review by the S. T. A H N P. P is an autosomal.
Dominantly inherited demyelinating peripheral nerve disease caused by a heterozygous deletion of the P. M. P 22 gene leading to a reduction of <unk> P. M. P 22 proteins by 35% to 50% of normal levels, which results and disruption of the island's chiefs of motor and sensory nerve axons.
Patients with H N P. P often present with focal sensory and motor deficits, including numbness and focal paralysis.
The events may be triggered by mild mechanical compression of innocuous to healthy people and <unk>.
And H M. P. P patients are also.
Affected by fatigue catalyst believes that H N P. P affects about 6000 patients and the United States scientific basis for considering the syndication and set the functional demyelination and H M. P. P results and excessive outward current through intermodal voltage gated potassium channel applications per pass.
And from channel blocker like Jama fabric and.
And this is expected to improve action potential propagation and H M. P P, thereby alleviating sensory deficits motor deficits and fatigue, and H and PPA.
This hypothesis is supported by research on Asia and P. P. Animal model book P. M. P 22 heterozygous deletion.
Moving on to other markets and research opportunities. We previously reported that we reached agreement with the Japanese P. M. P. A on a regulatory pathway to seek approval offered ups in Japan and Mexico.
For the treatment of web. Additionally, and April catalyst was granted orphan drug designation for the treatment of lamps for tariffs would be a new chemical entity for that market and as such would be granted 10 years of market exclusivity as a reminder, the Japanese market and it's about 40 per cent of the size of the U S market with about 12.
Hundreds of 1300 loves patients. There are also no therapies from the Japanese market for Mus K M G and H N P. P. And finally, we are hoping to complete and agreement with a development partner and Japan to carry this project to completion and to commercially market the product and Japan.
Regarding our <unk> long acting product that is under development. We have developed the first group of candidate long acting formulas that have also completed pharmacokinetic or PK study for these candidate formulations. These PK results will inform on the design of future formulations with the ultimate goal of providing.
Patients with an effective medication, but they only need to take once in the morning and once in the evening. We have also interviewed numerous positions and lumps patients to obtain their input and to the design of and optimal product that they feel would be superior to the current <unk> product offering.
That input as the basis for our design goals for and referred ups Allied product.
Catalyst has also made significant progress on developing and intellectual property estate to prevent and protect preferred up franchise last.
And last October we reported the issuance of U S. Patent number 10, and 793 893 methods of administering and free for Dime and appeared and expiring April 7th 2034.
Catalyst has also begun to protect our firm.
And the franchise and has filed suit and federal court against Jacobus Pharmaceuticals, and Panther are.
For induced infringement of our issued patent.
A number of the documents related to this case are publically available for anyone interested in learning more about this case and addition catalyst has four other pending patents related to the use of ferd ups.
And that were recently published all four of these patents are being prosecuted under track on status of the U S patent and trademark office and we remain hopeful that most if not all of them will issue in 2020 one.
Assuming issuance of these patents catalyst also anticipates, taking appropriate legal action to protect.
This new patented intellectual property if needed.
I will now turn the call over to Ali Grande, Our Chief Financial Officer to review our financial results.
And <unk>.
Yesterday, we filed I played with you on.
And you would be.
And you see I mean, what are your first quarter financial lease hold interest.
And I asked me and our high level financial results for the first quarter.
And Joe and I see.
Let me highlight a few loans you sold.
And we appointed and we ended the quarter with cash and investments.
Please be please be a million.
And then ive with any on a flip back and R&D programs and support.
And our strategic initiatives and here.
Each of which 80 and.
Okay.
And to enable grill and body weight.
And the free.
Yes.
One two.
And $2 million.
$9 1 million in Q1 'twenty.
And I'm, Chris Cooley.
And can you to EBIT.
On the 19th.
And aviation industry.
And next year.
Companies and our industry and the impact.
Impacted by the reset on the patient need and tell us.
Well that's it.
Despite these challenges and revenue.
Well, Chris and hiring.
What is in 2020 one.
And that's very clear on 2020.
And then as I've mentioned on the abdomen.
And Andrew.
Yeah.
And when do you want.
On the 19th.
Right.
We reported GAAP net income.
And I said, I'm millions and Q1 'twenty one.
Good day and date.
Yeah, Okay to GAAP net income free.
And.
And well.
Thank you on 'twenty.
Before I continue on that and take them on.
Right.
Great.
And that's to.
What day of 2021 'twenty two.
What percentage.
Yeah.
And the same time and again.
And 120 <unk>.
Right.
And non cash items.
And.
Nevada.
Net operating loss and in 'twenty.
We expect that we will continue to that and he can teach and future periods from the east.
Right.
And 88 net operating losses.
And if I'm doing great although no on that.
And Lindsay.
Normalized fancy wisely and paying off our net operating loss.
Yes.
And the first quarter and plenty plenty wisely.
And what commitments to make alright, and wonder nation.
And what is the foundation.
Net patient well.
Such conciliation and slowly.
And from the first quarter of 2020, one when we commit to this on deviation.
And what does that patient programs was in 2020 one physically.
Non-GAAP net income for Q1 'twenty one.
But maybe.
Good day, and then this year.
And GAAP net income base compensation expense.
And one 6 million depreciation of C L.
And 1 million stipulation for income tax.
There's some day.
Non-GAAP net income for Q1, 'twenty well six.
And are you well.
And the other issue which is.
GAAP net income.
And it made compensation on one 5 million depreciation and net.
Provision for income taxes of Stephens, Inc.
He goes on there.
And they use a volume right.
And this first quarter 2020 one.
First of all your <unk> 2020 when you need that this non-GAAP measure is useful and.
And Oh.
And so some operations and this range.
And to 21 based on this.
And we split in 2020.
From sales.
The fourth one 7 million.
So Q1, 'twenty, one, whereas the 90.
Slipping.
On Q1.
And 15% EBITDA.
Yeah.
And reminder.
Got it.
From inventory.
Net inventory.
And for the Las Vegas.
And on F&B and pathways.
Research and development expenses must be emailing, and Q1, 'twenty one down from 42.
$5 2 million for Q1 'twenty and.
29% decrease in D C.
And expenses year over year.
And increasing cleaning Photronics, Inc.
Yeah, and U S. A M D and try.
And I mean.
And in 2020.
We expect that research and development expenses and opinions to be substantial and 2021 and beyond on that.
And what <unk>.
H E B and C.
And then excess billions.
Yeah.
Thanks, Patrick.
And do that and then.
And for them.
Fair enough.
And you know our regulatory path.
And I'm transferring the treatment and the lens.
And then fair enough.
And our nation.
And he will also increase.
And we said.
And he executed on our.
It's just easy initially.
Oh come on you on.
Innovation and knowledge.
And who are you and <unk>.
Let me ask Laurie.
And I have no.
And on expenses for Q1, 'twenty, one and what else.
And $7 million compared to $10 1 million and Q1 'twenty.
And 26% increase year over year, Nike and Stephen.
And I know the reporting like charge for his commitment to me charitable contributions.
Foundation supporting patient.
And I just got.
And when a few pieces and consequently, no expenses associated with ongoing litigation and the cost of additional personnel and this is bordering expanding operations.
And as Jenny expenses will continue to be substantially planes from anyone as we continue on.
And which can increase revenues from free to sales.
And I did.
And my detail information on on how and this may be fine what day.
Alright.
Thank you.
Well yeah.
And Exchange Commission yesterday.
Okay.
And the beach from a Wednesday.
And so easily and I mean.
And Linda.
And with that I'll turn.
Okay.
Thanks Kelly.
I'd like to close on our prepared remarks by emphasizing the effort and performance of all of our employees and as a team. During these challenging times to continue their challenge and efforts to assist all and patients their caregivers and their health care providers.
I'll now turn the call over to the operator, so that we may take your questions.
Thank you ladies and gentlemen, the floor is now open for questions. If you would like to ask a question. Please press star one on your telephone keypad at this time.
Information on total indicate your line is and the question queue.
You May press Star two if you would like to remove your question from the queue.
Participants using speaker equipment, and it may be necessary to pick up your handset before pressing the starkey and once again Thats Star one to register your questions at this time.
Our first question is coming from Charles Duncan of Cantor Fitzgerald. Please go ahead.
Thank you morning, Pat and team congratulations on a good.
<unk>.
And progress had a couple of questions for you.
In particular on for Jeff perhaps.
Like all the color on how the quarter's going or how the quarter. Wayne can you just confirm that you saw quarterly growth in terms of new patient adds.
Roughly 15% Q4 to Q1 is that is that the case and perhaps provide a little bit more color on.
You know if he will the breadth and depth of prescribers. So are you broadening prescriber base or are you deepening with Ana prescribers practice.
Thanks, Charles and our question and yes, I won't confirm it wasn't 15% growth and new patient enrollments.
And our experience in Q1 versus Q4 of last year.
And so.
On that second part is when we take a look at who our new enrollees are and the new physicians.
And again on the vast majority I would say about 85 and 90% of our new enrollments are coming from physicians and our first time prescribers.
And that goes to show that's why we target.
Broad based on neurologists and neuromuscular specialists with both brands and.
And as well as our three ways Rams R. Our field force inside sales as well as non personal promotion.
And answer your question, 90% of our new enrollments are coming from new writers.
Okay, and then I guess as a follow on when these prescribers kit and feedback from their patients.
Do you have you seen any prescribed per se.
And that they have additional prospective patients within their prime kras or their practice and have on any of them from.
Follow it up with say deepening their prescription.
Practice within it within their practice, so two other patients identify new patients and and deepening it.
Yes and.
And remembering that this is an ultra orphan disease and there yeah.
And patients out there, but to answer your question and there are physicians out there that are repeat writers and more specifically those that are neuromuscular specialists.
They see.
More patients that have these types of symptoms as lens.
And there are many repeat writers now from a general neurologist standpoint, there are physicians and have multiple patients because they see a lot of myasthenia gravis patients and they look at their practice from previous years and some of these patients that may be NAV, misdiagnosed or thought more thorough negative miles and in myasthenia gravis.
Patients and now they are starting to think maybe I should touch on patient score B GTC antibodies to seize day or potentially adult non stations. So we are seeing physicians that prescribed at once and then on local cross their patient base and say maybe this other patient could be a limitation and so we're seeing that both ways yes.
Okay very good that's helpful. I appreciate that added color I did want to ask Steve a question about the pipeline and.
Not sure youre going to be able to be all that disclose it Steve but I'm wondering if you could provide.
Provide any color on call it the elements of difference between the past Musk Mg study.
And any any particular element that you could highlight that.
And they may reduce the variability or reduce the potential compounding.
Fact that you saw and musk Mg as you've proposed to the agency.
Charles I can't give any specific details about the new design, obviously, the FDA may actually ask for changes. So it would be premature to give you a whole lot of specific details generally I can tell you as you'll recall from the earlier part of the presentation that the primary causes of the.
Previous failure to achieve statistical significance was primarily related to a high rate high amount of variability and the disease State and then the other observation that we had was patients generally.
<unk> showed a significant improvement and their condition upon initiation of therapy, so without giving any specific details about the trial I can tell you that we actually included designed elements and the new trial design that will take advantage of both of those observations and the case of noise, you simply collect more data and and the case of initiation of therapy you changed.
Design too.
To take advantage of the fact that.
Initiation of therapy seems to show on our progress.
Okay very good that's helpful. We'll await those details my last question is perhaps for pad.
Regarding business development activities, you've you've conducted some diligence or I think that you. You stated that you haven't gotten any firm commitment in terms of how to move forward, but are there any particular call it drug classes or areas of focus that you can.
I like that.
And that would in particular leverage your existing <unk>.
Successful approach to marketing marketing for gas because it would seem to me that not only is the drug itself and asset, but your back office and abilities with first apps and the one patient population could be leveraged cross other orphan disorders.
Yes good.
Good question Charles Thank you.
Obviously, we'd love to leverage our existing sales force with another neuromuscular product.
Those are very difficult to find.
And when they are available they are extremely costly.
And so we.
And about a year ago, we decided to expand our therapeutic look into general neurology and.
And.
And the end of last year, we decided that we would be interested in products and any therapeutic area outside of oncology on.
Apologies too complicated so we don't want to stay and the rare disease space ideally neuromuscular or neuro.
But we are looking at other therapeutic areas and.
And we believe with rare disease drugs like.
Her and apps to treat limb.
We do believe that we can replicate our sales and marketing team and put together.
And really strong effort.
And then another therapeutic area such as endocrinology your immunology so I.
I think we're well positioned and I think we're looking at a broad spectrum of therapeutic categories right now again anything outside of oncology.
Okay. That's helpful. Thank you for taking my questions congrats on the quarter.
Thank you Charles.
Thank you once again that is star one if you would like to register a question at this time.
Our next question is coming from Joon Lee of Truth. Please go ahead.
Hi, Good morning. This is less on for June and thank you for taking my questions.
So I just wanted to get back to the revenue line and.
And you've mentioned on the last call. You also saw a significant increase and new patient starts perhaps you could quantify what that percentage increase was you didn't mentioned it was 15% and the early stages of this quarter.
Essentially what I'm looking for is what impacted the sequential decline, although it's flight to two per cent herself from for Q. If you could just provide a little bit more color on that thank you and I have a follow up.
Yes.
And it could be.
And that's specific I can tell you that new patient enrollments from Q3 Q4 of last year and Q1 of this year sequentially.
And have been increased and we continue to see increases and we believe that the sanction on through for the rest of the year.
Right.
We're not prepared to be that specific as to percentages on a number of new enrollments.
Okay.
And with regard to the litigation side I believe on end of March we received some news from the Federal Court and Canada.
Regarding the dismissal of the application against <unk>.
<unk> can you comment on that and and there appears that there was no appeal made from just one.
Wanted to know what that means for your decision win for your partnership with key and and your expected commercialization efforts and Canada.
Yeah. That's a good question and I'll turn that over to Brian Ellsberg, our chief legal and compliance officer.
Yes, thanks for the question, but I'm not exactly sure where it's coming from we have not received any such notification of.
The loss of our ongoing action were actually awaiting a decision from the federal Court of Canada.
We've actually been in contact with the lawyers and the last couple of day, there's been no.
A decision yet from the hearing that was held back in December.
Okay, well and then I guess my mistaken, but perhaps can you just kind of update us on.
And he and use that we could potentially see and the near term and and you sort of timeline that you would expect.
With regard to our low set against health Canada.
Yes.
Brian you want to opine on that.
We're expecting and decision any day now literally any day now so.
On the docket and Canada on a daily basis, and see if theres decision so when.
When we hear something I'm sure it will be public and you'll hear the answer.
Excellent okay. Thank you.
And last one from me and I'll jump back into queue on just regarding the share repurchases.
And I guess, it's great choice, given where the stock is but can you just kind of perhaps remind us what the expiration date is on the $40 million repurchase program and have you established any kind of accelerated buybacks, where that's right that trigger a certain price and the stock.
Yes, we haven't put any timelines on the.
On the $40 million purchase.
I think that we were.
Thinking internally and our discussions at the board level.
It would be would that would likely be a one year program.
No.
And again, we wanted to be strategic and thoughtful about these purchases and we wanted to do it on a rational basis.
So there really is no accelerating program.
And just from.
Time to time dipping into the market when we think it's appropriate to repurchase additional shares.
Great. Thank you for the clarity thank you.
Yeah.
At this time I would like to turn the floor back over to management for any additional or closing comments.
Okay.
Thank you for joining us today and I look forward to future calls have a great day. Thank you.
Ladies and gentlemen, thank you for your participation you may disconnect your lines or log off the webcast at this time and have a wonderful rest of your day.
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