Q4 2021 Opiant Pharmaceuticals Inc Earnings Call
Greetings and welcome to the opioid pharmaceuticals for fourth quarter and full year 2021 earnings conference call. At this time all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. If anyone should 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 Ben Atkins, Vice President of Investor Communications, and Investor Relations of Appian Pharmaceuticals. Thank you Ben you may begin.
Thank you operator, and thank you all for joining us this afternoon.
With me on today's call are Chief Executive Officer, Dr. Roger Crystal Chief Commercial officer, Matt roof, and Chief Financial Officer, David Dyck to.
This afternoon, <unk> issued a press release announcing financial results and providing a business update for the three and 12 months ended December 31st 2021.
Please note that certain information discussed on the call today is covered under the safe Harbor provision of the private Securities Litigation Reform Act.
We caution listeners that during this call.
Management will be making forward looking statements actual results could differ materially from those stated or implied by these forward looking statements due to risks and uncertainties associated with the company's business.
These forward looking statements are qualified by the cautionary statements contained in <unk> news release, and SEC filings, including in our annual report on Form 10-K for the year ended December 31st 2021 and subsequent filings.
This conference call also contains time sensitive information that is accurate only as of the date of this live broadcast March 15th 2022.
Undertakes no obligation to revise or update any forward looking statements to reflect events or circumstances. After the date of this conference call.
Now I'd like to turn the call over to Roger.
Thanks, Ben and a very warm welcome to you all thank.
Thank you for joining our conference call to discuss financial results and business highlights for the fourth quarter and full year 2021 .
Everyone's time and attention.
In 2021, we have four overarching goals.
<unk> advanced Okay M. C. There is there are three nasal nalmefene towards NDA submission.
To establish leadership to potentially self commercialize opiate and she's there is there are three if approved.
Three advance our pipeline for maintaining a strong balance sheet in support of all development and commercial goals.
I am pleased to say that we have made significant progress in all four areas of focus.
Starting first with O P&C there there are three or investigate this treatment for opioid overdose.
In 2021, we reported multiple achievements around its advancement.
This included the results of our complementary pharmacokinetic study and the initiation of two further studies, a multi dose study and the pharmacodynamics study requested.
Requested by the FDA.
Over in November the FDA granted opn's. He's there there are three fast track designation.
This momentum has continued in early 2022.
In February we reported positive top line results from a multi dose study in which OPM see there. There are three demonstrated safety tolerability and pharmacokinetic equivalent across multiple nasal doses.
Importantly, these data are fully consistent with the rapid delivery of high plasma concentrations of Nalmefene observed earlier single dose PK study, which we reported in July 2021.
I'm also pleased to announce that we have completed enrollment and reached our targets at 46 subjects and the pharmacodynamics study.
This study is comparing OPM C. There is interest rate with nasal naloxone and reversing the respiratory depression produced by the synthetic opioid fentanyl and healthy volunteers.
As a reminder, we designed this novel PD study at the request of and in consultation with the FDA.
This is the first study ever conducted directly comparing the PD effects of nasal nalmefene nasal naloxone in an experimental model of opioid induced respiratory depression.
We are confident the data generated in this study will support the data generated in a pharmacokinetic studies and provide additional valuable information on the attributes Opn sees there is there its rate relative to the current standard of care.
In this study healthy volunteers were administered high concentrations of carbon dioxide to elevate respiration and once this occurred were administered and infusion of the synthetic opioid retina fentanyl.
Like other opioids, Remy sensible suppresses carbon dioxide stimulated increases and respiration.
The subjects, then received either nasal naloxone nasal nalmefene.
And the extent of reversal with measured over time.
Using a crossover design subjects were dosed with either nasal naloxone, all nasal nalmefene on days, one and five with the study.
So each subject received one dose of each opioid antagonist.
Study was managed to strict safety criteria agreed with the FDA and the institutional review board.
As a reminder, as agreed to with the FDA. The study is powered to demonstrate non inferiority between now and the feed and naloxone with a primary endpoint measuring the change in minute ventilation that's five minutes.
Additional secondary endpoints cover a range of different time points.
As the study progressed, there was a high rates of drop outs related to study conditions, including the wearing of a tight fitting mask for an extended period and the side effects produced by Remy Fentanyl infusion, which include nausea emphasis and dizziness.
Unfortunately, this meant that the study took longer to complete than anticipated.
With enrollment now complete however, we are now diligently preparing all study data for analysis.
Although we had initially hoped to have topline data by the end of Q1, given the completion of the clinical portion earlier. This month, we now anticipate these results coming.
Results in the coming quarter.
Okay.
We believe this significant milestone completes all clinical studies required by the FDA.
Earlier this year, we requested a pre NDA meeting with the FDA, which is scheduled for later this month.
Pending the outcome of this meeting we havent dissipate a mid year NDA submission, which if approved could position PNC. There is there are three the commercial launch in the U S by early 2023.
As we progressed towards as we progress O P. N T. There is there its rate we continue to attract strong and experienced talent to key roles.
In November we welcome Tanya Tom that Thomas as our VP of regulatory and medical Affairs.
Tanya joined US after 15 years at Pfizer and GSK, having held senior positions, leading regulatory affairs teams both in the U S and globally.
She has a demonstrated track record in supporting successful U S and ex U S regulatory approvals.
We look forward to Tania, leading our efforts with the FDA to approve to obtain approval for OCA in CS areas. There are three.
Now turning to commercial pipeline and our balance sheet.
Especially as we get closer to NDA submission.
Preparations for the potential launch of <unk>. There is there are three are progressing well.
Matt's Ruth our Chief commercial officer will speak to that in a moment.
In R&D, we continued to advance our pipeline and have several exciting milestones expected over the next 12 to 18 months.
We reported in January that we initiated enrollment now a 300 patient phase two randomized double blind placebo controlled study evaluating <unk> P&C. There there are two nasal naltrexone for the treatment of alcohol use disorder or a U D.
The study, which we are conducting in Europe has already reached 10% of our recruitment goals. We anticipate data from this trial in the first half of 2023.
Okay and see they're there it's a essentially represent a major breakthrough for treating AEG as its rapid onset of action and short half life are ideally suited for administration on an as needed basis without the need for prior abstinence.
As we also previously reported we are progressing opn sees there, therefore, drip and treatment for acute cannabinoid overdose or ACO towards IMD, enabling studies working in partnership with the National Center for advancing translational Sciences.
More and more states legalize both the medical and recreational use of cannabis and particularly edibles, which contains very large amounts of th C. There is an increased need for an effective treatment of ACO in the emergency room setting.
For example, a study recently published in Jama report, Ontario, So nine times more emergency department visits per month.
This poisoning and young children under the age of 10 after Canada legalized recreational cannabis in 2019.
We hope to have a pre IMD meeting by the end of this year and have Opn theory. Therefore in clinical studies next year.
Lastly, we managed our balance sheet in 2021 beyond the high end of our.
Which David will go into in more detail a little later.
Let me end my remarks by reminding you of what we do and do that's opiates and why.
Our mission is to develop medicines with the potential to treat addiction and drug overdose.
America is facing a deadly opioid epidemic.
From twin from September 2020 to September 2021, opioids accounted for roughly three quarters of the more than 104000 deaths in the U S from drug overdoses.
Since the mid 2010, the opioid epidemic has transitioned to very potent and elicit synthetic opioids in particular fentanyl.
As we've discussed on previous calls fentanyl and other emerging synthetic opioids are distinct from heroin and prescription opioids.
That takes a highly like to fill it and enter the grade more quickly than other opioids.
The act with far greater potency and many of these compounds have long half lives relative to heroin and prescription opioids.
These longer half life increase the risk of <unk>, if a victim as Vic is rescued.
Short acting agents like naloxone.
In the few years since elicit synthetic opioids began proliferates in the U S yearly drug overdose deaths has more than doubled making this one of the most rapidly spreading epidemics and history.
The increase in deaths due to opioid overdose has given rise to concerns about the longer term effectiveness of current overdose reversal treatment and led to Kohl's for innovation in this space.
And a 2016 report an FDA Advisory committee indicated that higher or multiple doses of naloxone, often when needed in the community setting to revive individuals when stronger opioid like fentanyl were involved.
Since then the C D C. The NIH and other public health agencies have issued similar warnings.
Opioid overdose is the leading cause of death, among Americans, aged 18 to 45.
This is robbing us of lives and all future infill.
In February a new government report concluded that overdose deaths caused the economy, a trillion dollars of yeah and health in.
Fences and health expenses.
Reduced productivity and other losses equivalent to nearly half of America's economic growth last year.
And this trajectory is getting worse recent estimates in the medical journal the Lancet suggested opiate overdose could kill up to an additional 1.2 million Americans by 2029.
Since opens the original development of the Narcan nasal spray and its FDA approval in 2015, Narcan nasal spray has helped lead the fight against opioid overdose.
It's just made it clear and extremely positive difference in communities across America.
It's fundamentally changed how we respond to overdose by engaging bystanders within our homes and communities.
Yet the crisis today is different than it was when we developed narcan nasal spray.
The limitations when matched against far stronger more lethal opioids are becoming more and more evident.
The public health and to save lives, we must make progress on prevention and treatment of opioid overdose.
New medicines are needed as the potency of the illicit drugs flooding America grows.
Is there a the overdose crisis heightened our colleagues across the opens up more determined than ever to be part of the next potentially game changing great breakthrough.
And with that I'll turn it over to Matt <unk>, our chief commercial officer.
Yeah.
Thank you Roger.
We are closer to NDA submission and F. D. A consideration of O. P. M. T. 003, we are ahead of schedule in building our foundation for launch.
I'm very pleased with the response, we received to hiring.
We now have all of the elements for launch covered and our leadership team, including government affairs trading distribution marketing and market access.
As I mentioned on our last earnings call. We have the very experienced Mike <unk>, who will lead our field sales recruiting and execution as we get closer to a potential commercial launch.
We have our external agency partners in place and have established and begun executing a comprehensive strategy in preparation for commercialization of O. P. M. P 003, where we are building experience depth and critical commercial and government affairs functions and will continue.
To build as appropriate and necessary.
As we build and execute our strategy call for action rings allowed as we speak with and listen to those confronting the opioid epidemic and with the families tragically affected by overdose. It is clear that we must elevate the education awareness preparedness.
Importantly increase access to appropriate reversal agents.
Nasal naloxone is a vital tool we continue to hear strong enthusiasm for advancement in opioid overdose reversal agent options with the rise of that now and synthetic we hear strong support for a treatment option with a faster action longer duration.
And is stronger to combat higher potency opioids.
Data generated so far indicates OPM.
Zero three exhibits these attributes.
When my team and I launched Narcan. The first FDA approved nasal naloxone in 2016, we changed the game.
Narcan empowers medically untrained citizens and responders to administer potentially lifesaving emergency treatment now it is a great privilege to work for Narcan original creator OPM, which remains dedicated in its pursuit of even more effective treatment of opioid.
Overdose in America.
Summary, we have the experienced team we have the unique and relevant marketing market expertise and we are.
We're well advanced in establishing the conditions to successfully commercialize opm's zero-zero, three if approved and.
And I hope to deliver a much needed new tool to fight the escalating severity of opioid overdose.
And with that I'll turn it over to David who will provide a summary of our financial performance.
Thank you Matt.
The details of our financial results are in the press release, So I'll focus now on a few highlights.
For the fourth quarter and full year 2021, we reported revenues of $13 8 million and $48 million respectively.
Continued demand for Narcan nasal spray in the last quarter of 2021 meant we exceeded our previously provided full year 2021 royalty revenue guidance of approximately $38 million.
Actual 2021 royalty revenue of approximately $41 million.
<unk>, 49% increase over full year 2020.
We also recorded approximately $7 1 million in grant and contract revenue compared to approximately $2 2 million for full year 2020.
This was due to funding received from the National Institute of drug abuse, and Biomedical advanced research and development authority for the development of O P. N P 003.
Total operating expenses for the fourth quarter were $12 5 million compared to $11 million for the same period in 2020.
Operating expenses were $42 6 million for the full year 2021, compared to $31 9 million in 2020.
Full year increase was primarily due to our investments in R&D, which were approximately $16 8 million as compared to approximately $9 2 million in the comparable period in 2020.
Net income for the three months ended December 31, 2021 was approximately <unk> 8 million or income of 17 cents per basic share.
An income of 11 cents per diluted share comp.
Compared to a net loss of approximately <unk> 7 million or a loss of <unk> 16 cents per basic share and diluted share for the comparable period of 2020.
For the full year 2021, net income was approximately $3 million or income of 68 cents per basic share and income of 51 cents per diluted share.
<unk> to a net loss of approximately $1 9 million or a loss of 44 cents per basic and diluted share for full year 2020.
As we have noted on prior calls with opioid related deaths increasing throughout the pandemic.
<unk> nasal spray sales have also been on the rise.
We expect demand for community based reversal agents to increase significantly in the coming years.
However on its most recent earnings call E. B S provided 2022, Narcan revenue guidance of $240 million, just two $1 million to $310 million.
This is significantly less than the 434 million of net Narcan sales reported by Ebs in 2021, and apparently reflects the impact of at least one generic entrant and branded competitors into the nasal naloxone market.
In December 2021, Teva Pharmaceuticals announced the launch of its generic nasal naloxone.
At the same time Sandoz through an agreement with a B S launched an authorized generic of Narcan.
In addition, during 2021 Hikma pharmaceuticals launched clock, so clocks, though.
Eight milligram nasal naloxone.
We do not yet have doubted that determined the evolution of the nasal naloxone market.
Well wait information for me B S. Wonder reports Q1, Narcan sales next quarter.
As a reminder, we receive tiered royalty payments on Narcan net sales with rates ranging up to 12%.
However, with the launch of a generic equivalent in December of 2021, the royalty amount will reduce to 2% on a country by country and quarter by quarter basis.
When the sales of Narcan, including sales of the authorized generic are cumulatively less than 70% of what the net narcan sales were in the third quarter of 2021.
It is important to note.
That this will be calculated separately each quarter.
This means we could have some or all quarters in 2022 at the standard tiered rate.
However, we could also have some or all quarters at 2%.
It will depend on Narcan sales performance in a given quarter.
Royalty revenue from net Narcan sales will continue in 2022, however, until we have further clarity around net narcan sales in the coming months. We are not currently in a position to provide royalty revenue guidance for the full year 2022.
With that said, we start the year with approximately $53 million of cash.
Continue to prudently manage our capital resources, providing us with a strong financial foundation to support our planned commercial and R&D initiatives. This year.
We also have access to additional $30 million under the existing debt facility upon achievement of certain milestones.
To conclude a generic entrants of NOLA nasal naloxone into the marketplace doesn't change the dynamics that exist for most opioid overdose relate to higher potency.
Opioids.
And the innovation in treatment of overdose will need to evolve.
All in for the introduction of new products.
She is R. O R O P N T 003 nasal nalmefene.
Thank you and with that let me open the call for questions.
Thank you we will now be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad.
Information tone will indicate that your line is in the question queue.
You May press star two if you'd like to remove your question from the queue.
For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys, one moment, please while we poll for questions.
Okay.
Thank you. Our first question comes from Brandon Folkes with Cantor Fitzgerald. Please proceed with your question.
Alright, Thanks for taking my questions and congratulations on all the progress.
Maybe just chew on there is there are three and maybe they're related but.
I guess, firstly would a pre NDA meeting informed anything around the PD data just any comments on the sequence of events. There is it really just at the P. P. D data took a little longer for the reasons. You mentioned it was the most efficient use of time to keep it at that date or is there something that could inform that.
PD data before we see it.
And then I know this is this is a tough one to answer but.
Yes.
How do you think about a label at this stage and I mean that in terms of where.
What do we think about it detailing this product I agree with you.
The attributes and.
The need for fentanyl.
Strong agent against the synthetic opioid.
I guess, how direct do you think you can be in your marketing with the data generated to date. That's this is a better product than what's on the market. Thank you.
Thank you Brandon.
So in terms of the the pre NDA meeting we wanted it to.
Schedule that because they have a ton of existing data anyway.
And we want the F T H two.
Ideally allow us to proceed with a rolling review and.
The PD data, even though they won't have it in hand, when we have the meeting.
Again, they've already.
Study design and statistical plan, so really it's everything out but that that's still important to bring to the table. So that we are in the best place to submit an NDA in a timely manner.
The on the label one of the key attributes and advantages. We believe that there is there a threat in the long half life and in fact that data.
Data is already in the existing revert label.
That.
Why.
Nalmefene was approved as an injection where actually.
State that has a longer half life is longer.
Duration.
On naloxone.
That data, we are able to use from the existing label.
In addition, we will be able to provide all the additional data we generate in into the package.
Package insert.
Especially the existing well known data around the.
Actual.
Potency of novelty and the affinity et cetera.
And the speed of absorption, which appears to be faster than naloxone as well.
Ultimately the PD data I think it's gonna be a key piece as well.
And even though it's powered for non inferiority.
If we are for example, saying the majority of patients so healthy volunteers.
Having that.
Breathing restored faster, but nothing that will also very much apparent.
And the entirety of the data that we have supporting this product because that's what makes it so exciting.
Okay, that's great and very helpful.
And maybe just one more sign may for David.
Just to clarify so the royalty will drop to 2%.
Sales in the quarter dropped below 70% of <unk> 2021 so I guess at that 70% of that 133, and then is does that include the authorized generic and then do you get a royalty on the authorized generic.
Yeah, Thanks, Brandon Thanks.
Thanks for the question also.
Point of clarification, and you did pointed out that the third quarter was $133 million in total narcan sales.
Remember this is on a country by country basis.
And.
The 133 million is not all U S sales.
It includes also Canada.
And that information is not publicly available, but since there is not a generic in Canada.
All of the revenue from Canada is not subject to the generic reduction clause at this point in time.
So there is a bifurcation that needs to be done on a country by country basis and.
And then you are correct on the 70%.
And the.
Total.
Revenue that will be measuring for that will be the branded product narcan plus the authorized generic.
And so that has to dip that total has to dip below 70% of the sales of Narcan in the third quarter on a country by country basis, and that's I'm emphasizing that because it's an important thing to consider.
Okay. That's very helpful. Thank you, David and just some kind of a thing.
The two yes.
Using a 2% absolute illustrated.
Is that on.
Country by country basis, Narcan sales branded Narcan and authorized generic will just branded narcan.
On both of them.
Okay, Narcan sales at plus authorized generic.
Thank you I appreciate the color thanks, everyone.
Thank you. Our next question is from Carl Byrnes.
But investor. Please proceed with your question.
Hi, This is Carl Byrnes from Northland capital markets.
First thanks for taking the question and congratulations on the progress.
My first question is for Matt Matt.
I'm wondering how you envision the sales force count our target.
For our launch of L. Three and will you be looking at extending offers to candidates subject to approval. Obviously prior approval and then what might you add with respect to like field managers and medical our medical specialist liaisons and then I have a fabulous. Thanks.
So sorry, I think I called out I'll jump in and then I'll, let Matt continue that.
As Roger just yes, just to say I mean.
Our commercial plans and we're not going to provide significant detail around numbers at this point I need to say that the Max obviously Hyatt and initial commercial team.
Tremendous work in the in the Prelaunch World.
Good night.
And then given our view of where we see the market opportunity at the moment.
The balance between the public interest sector and the retail again, where we're gonna be hiring shortly after.
Towards approval and after approval in particular, but.
One of the things that this is not like building a huge sales force.
Most drugs out there.
A lot of it is in around.
Around government affairs activities, and I think that's where it might have tremendous experience, but Matt anything you want to add to that.
No I think you've covered most all of that I will just add that when I built the adapt sale.
Sales force or our market team.
To address this market, we have a tremendous amount of learnings because it is such a unique marketplace and market space with different customer basis. So I plan on using the same intelligence.
We learned way back when you know the good news is we probably won't make some of the mistakes that we made it adapt early on.
I've learned from those.
Great. Thanks, that's very helpful. And then if I could have a follow up question and this is transitioning back over to Narcan, maybe we can talk just a little bit about the dynamics and the difference in the dynamics in the retail space, where you do have.
Generic and you have an authorized generic which the UBS sandoz product.
You, obviously collect royalties on.
And I believe retail is roughly 35 or so percent.
The market.
<unk> is the public sector, where as I understand it theres not a launch.
The authorized generic and also potential sort of encumbrances for E.
Things are encumbered rather from using.
Generic in that space I think given the 65 or so percent of the market.
Anything that you could help with respect to dynamics would be great. Thanks.
I mean, Matt I'll, let you talk about how you see the retail in particular I think.
He called out that they are riding.
Point for Us is the.
This is a product we think has a clear clinical differentiation.
And that's what in our mind will drive choice.
Absolutely I mean people still prefer to use naloxone based products.
But we're highly confident that.
With the data that we have plus essentially the data continues to generate.
So this is what will drive choice bearing in mind that.
Both sectors, there's good retail and then.
In the public interest sector. There is good someday can reimbursement available.
Matt you want to expand on that yeah.
Yeah, that's right I think you hit all the key elements.
If if we get clear differentiation.
From a label perspective, our objective and our strategy will be to ensure that access is wisely.
Available and obviously that it's affordable and then we'll detail physicians as necessary by the means necessary to inform them up.
OPM Zero-zero tree.
Great. Thanks.
Hi.
As a reminder, if you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue.
Our next question is from David <unk> with Zacks. Please proceed with your question.
Hey, good afternoon, everyone.
Matt I have a question about the sales of.
No lockdown in the public health sector, I guess I don't really understand.
The dynamics of that and then.
What is going to be the most difficult aspect of kind of breaking into that market with L. Three.
Oh yeah.
Yeah.
Yeah. So.
So in regards to this.
Sale of naloxone in the public interest rate is if you could just add a little more clarity in terms of the question that you're looking to.
Learn from.
So basically what what I'm wondering is is this something where.
E M S units or whatever.
Or are they.
They just have it on auto pilot in order like so many units per month, and just keep refilling every month like that.
Sure sure. Okay. So I think I understand the question now so without going through a long process of the.
The distribution flow basically every state first and foremost is very different in how they order, but four departments of health for law enforcement community based organizations. Those types are typically ordered by individuals and the state Department of Health and then product is then funneled out now.
It's complicated because every state is very different.
How they interact MFS is typically done traditionally through our distributors are there are a couple of distributors that supply E. M S.
Across the country, which is pretty clean cut pretty traditional distribution model.
And I think your follow up question was how we intend to interact and engage those.
And if that's correct.
You know the advantages that I've done this before and had to build out the market with a.
With the adapt team we've gotten a couple of those folks from the adapt team on the OPM farmer.
Pharmaceutical team right now so we know where to go we know how to access the different market channels and that's effectively what we plan to do.
Okay. Thanks, that's helpful.
And then Roger I had kind of a I guess a technical question about the P D trial.
So youre looking at the reversal of respiratory depression, and I'm just curious if you can quantify.
How how low.
These individuals' breathing rates get so what kind of differences are you going to be looking out there.
Yeah.
It's hard to.
I'll give you a number at this stage.
No.
What made that public I need to say that.
And the P. T study were comfortable.
We all know who cheap.
Cheap non inferiority.
But this is a.
It was like an experimental science study.
The FDA wanted to see we can't totally and trend.
Full scale overdose.
So I think we'll be in a position where we can essentially showed meaningful differences.
Which is great.
But if anything.
It's got to be really interesting.
In the field once our first responders.
We use this in a true.
Overdose like fentanyl overdose Renaissance and a lot of it is that's why I think even more data that we'll generate close to approval to show the true differences at that point as well so headline that well the PD study will generate the data we need for FDA approval and for them.
Decent differentiation, which we can build on post approval.
Okay, Great I appreciate the.
Answers and for taking the question.
Thank you. Our next question is from Carl Byrnes with Northland Capital markets. Please proceed with your question.
Thanks, again, and I was just wondering what your expectations were in terms of grant funding and timing of grant funding given that the BARDA grant.
Largely funds the NDA submission that's going to be obviously tied your timing of the Mds patient costs.
Preparation of the NDA, especially and then.
Another item on cash you ended with $53 million in cash.
$13 million in royalties on a pro forma basis as safe to assume that your cash balance is really kind of effectively pro forma for the royalties 13 billion are in.
60 thanks.
Yeah, Carl Thanks, again for the additional question.
On the.
Government funding Benighted Grant has been completely funded and we've received all of those funds already.
As of December 31.
Of the $10 3 million in BARDA funding and that includes the additional $2 2 million that we got we had already build a BARDA $5 7 million.
And so that leaves another $4 6 million.
For this year.
Including the filing piece, so that will the majority of that would probably be done would be build this year the way I see that.
And then your second question again was what Carl I'm sorry.
Yes, So you had 53 million.
I got it here yeah, yeah. So yeah, we do receive the third or the fourth quarter royalty in.
In 2020 to the fourth quarter royalty in 2022.
So it's a large number as you indicated.
As you know, we pay out about 26% of that to our.
Certain investors that invested in the company.
Early on.
And so we end up with somewhere.
Around 70% to 75% of that number.
And so the answer to your question on a pro forma just looking at the two numbers together, yes that would be the case.
Excellent. Thanks again.
Thank you there are no further questions at this time I'd like to turn the floor back over to Roger Crystal for any closing comments.
Thank you operator, thank you for joining us today and for your interest in opioid enjoy the rest of your day and please stay healthy.
Yeah.
This concludes today's conference you may disconnect your lines at this time. Thank you for your participation.
Uh huh.
[music].