Amneal Pharmaceuticals Inc. Q1 2023 Earnings Call
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Hello, everyone and thank you for standing by the Amnio Pharmaceuticals first quarter 2023 earnings conference call will be beginning in just a few minutes time. Thank you for your patience.
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Hello, everyone and welcome to the email Pharmaceuticals first quarter 'twenty earnings Conference call. My name is M&A and I'll be your moderator for today's call.
After the presentation, you'll have the opportunity to ask any questions by pressing star followed by the number one on your telephone keypad I'll now turn the call over to <unk> head of Investor Relations Tony Dumai. Please go ahead.
Good morning, and thank you for joining <unk> first quarter 2023 earnings call today, we issued a press release reporting our full Q1 results, we announced certain unaudited preliminary results for the first quarter on April 17, 2023 press release and presentation are available on <unk>.
Dot com.
Certain statements made on this call regarding matters that are not historical facts, including but not limited to management's outlook or predictions are forward looking statements that are based solely on information that is now available to us.
Please see the section entitled cautionary statements on forward looking statements in the earnings presentation.
And our SEC filings for a discussion of factors that may impact our future performance.
We also discuss non-GAAP measures.
Information on our use of these measures and reconciliations to U S. GAAP are in the earnings presentation.
On the call today are <unk> <unk> co founders and co Ceos Cascone Darris CFO , our commercial leaders Andy Boyer for generics, Joe render for specialty harsher staying for Biosciences, and Jason Daly Chief Legal Officer, I will now turn the call over to Sharon. Thank you Don.
Any.
Good morning, everyone.
We delivered a very strong first quarter results with $558 million of revenue growing 12% and adjusted EBITDA of $116 million growing 16% we.
We saw robust topline growth in Q1 across all three business segments genetics specialty and home care.
New store net leverage to four nine times and our firm.
Our full year 2023 guidance.
Taking a step back for those who are newer to the story, we are a global pharmaceutical company with an expanding portfolio of approximately 270 products.
Our strategy focuses on launching new products in high growth and high impact areas of medicines, such as complex generics Injectables Biosimilars and specialty since 2019, we have significantly diversified our business fueled by the productivity of R&D.
Pipeline and strategic investments to build our global flexible.
As a result of any of the diversification we have seen continuous strong financial performance since 2019, as we have delivered substantial revenue and EBITDA growth.
In 2020 to approximately $500 million of who our top line performance came from products launched since 2019.
We see momentum accelerating in 2023 and beyond underscored by our strong Q1 results and 2023 outlook in.
In short, we are very well positioned for sustainable long term growth.
Accelerating profit profitability.
And continued deleveraging.
I will now briefly walk through how are we executing on our key strategic priorities across our businesses.
First in the generics segment.
Our diverse portfolio of approximately 230 <unk> generic products is continually expanding.
Moving up the value chain of complexity and generating durable top line growth since 2019.
Our strategy to diversify with more complex products has been deliberate over the years to give you context, we expect about 55% of 2023 generics revenue.
We'll be from complex products up from 35% in 2019.
We feel great about the breadth and depth to avoid R&D pipeline, which we expect will continue to deliver 20 to 30, new product launches every year and continue to differentiate our business as we move forward move towards complex products.
We have been on a remarkable journey. This last 40 years and the team has been hard at work focusing on the highest value products in complex generics with many nearing the finish line.
Altogether, we expect continued strong execution and growth of <unk> business.
And the Injectables similar similar to where we are today in U S generics.
Our goal is to be a top five U S injectable business and also a global player.
Today, we have about 30 institutional products with over 30, new launches expected by 2025.
We had executives exit executing very well on our injectables growth strategy by expanding our portfolio building key capabilities and adding capacity our.
Our commercial strategy centers on our ability to be a differentiated supplier of our growing portfolio of injectables for hospitals.
The resilient supply chain and a market impacted by shortages.
And today, we are pleased to share a major milestone with the successful U S. FDA inspection this week.
Our fourth and largest injectable site.
As we ramp up commercial production later this year in line with our plan. We expect the next revenue inflection point in 2024.
We remain on track for over $300 million Injectables revenue by 2025.
Next in Biosimilars.
Very pleased with the initial market penetration of our post two biosimilars lenses Andrew local.
Since the launch in Q4.
Our commercial team is executing very well by adding new customers outlets for both products and driving substantial pull through as usage rates of our biosimilars have doubled month over month since launch in particular, we are seeing strong market adoption of our <unk> product.
<unk>, which is the <unk> biosimilar referencing avastin.
This month, we plan to launch our third Biosimilar for the network and we will have three U S oncology biosimilars in the market.
Based on our strong commercial execution and trajectory, we are well on our way of achieving this year target of $40 million to $60 million.
More next year and over $200 million in peak sales beyond. These three initial biosimilars, we are working to expand our portfolio with additional molecules where do we can.
Lead to the market and vertically integrated from development to commercialization overtime <unk>.
<unk> is to be a top five biosimilar player in the United States overtime.
Internationally, we are leveraging our diverse portfolio of U S FDA approved products to expand into new geographies.
In India, we are expanding and needs brand presence and leveraging our local teams and infrastructure as we focus on the hospital market.
The rest of the World, we are working with distribution partners, we expect meaningful incremental revenue and profits over time.
Next in the specialty segment, we continue to grow our branded products in directory in Parkinson's and units Floridian hypothyroidism delivering strong growth again in Q1 in parallel we are advancing our pipeline of new CNS and endocrinology products.
On <unk> III, we are one step closer to delivering a new impactful therapy for Parkinson's patients as we head towards the June 30th produced to date as.
As we expand our portfolio, we expect over $500 million and especially revenue by 2027.
In the third segment, we see continued momentum across the multiple channels distribution.
We'll go where men and unit dose. We expect this business will continue to deliver durable double digit growth going forward.
Given by the ongoing expansion of the distribution channels.
Overall, we are proud of the strong momentum across our mill each quarter, our portfolio's incrementally larger and more diverse as we launch new increasingly complex products, we are leveraging our key capabilities and global footprint to operate at scale.
Across our business as we execute we look to build upon our sustainable growth profile.
And drive higher adjusted EBITDA levels.
I wanted to touch briefly on our capital allocation strategy, which <unk> will discuss further to be clear reducing debt and strengthening our balance sheet has been always a key priority as a result, our net leverage has reduced from seven four.
Times in 2019 to four nine times this quarter and our goal is to be below four times net leverage by the end of 2025.
I'll now hand, it over to Chengdu.
Good morning, everyone. Thank you Doug let me begin by thanking the Amnio family, who work hard every day to make it possible for somatic we're really excited about our strong start to the year and the great progress we are seeing across our organization.
I'll touch on power strong foundation in operational excellence and highly productive R&D engine continues to propel our company strategy forward.
<unk> operations, we are focused on operational excellence and efficiency superb quality and expanding our global capabilities, particularly in Injectables. Let me provide more color on each first we remain focused on operational excellence and driving efficiencies the team has done.
An excellent job as we move manufacturing for over 30 products to low cost locations and we are on track to achieve our India operational efficiency goals. We are taking various other measures to lower cost and expand our margins. In addition, our prudent capital.
Spend focusing on driving operational efficiency automation and supporting long term growth.
Second from a quality perspective, <unk> has maintained a superb track record and commitment to the highest standards of quality over the years since 2005. The U S. FDA has conducted over 90 successful inspection with no.
Or warning letters, we are very excited to share the successful U S. FDA inspection. This week off our largest injectable site, we look to commercialized products from this site starting in third quarter. This is an important corner stores cornerstone of our injectables growth strategy.
By increasing our capacity and capabilities across all areas.
Now have 19 production lines across various dosage forms, including wires prefilled syringes cartridges, LBP bags and emotion.
Over the last two years, we have invested over $150 million in capital and tremendous energy to bring two new injectable sites online as a result, we are.
Now at scale and inject it was with four manufacturing locations doubling the capacity, we had a few years ago and a deep R&D pipeline that provides a clear runway for long term injectables growth with our expanded infrastructure, we have valid Pos.
Vision to be a top five U S injectables business and a global player.
Let me move to generics R&D, where we are continually adding new products.
To our pipeline in the first four months up to 2023, we have launched 10, new genetics and we are on track to deliver over 30, new products. This year overall, we have 99 andas pending with the U S FDA with 63% representing.
Non oral solid products. These include 32, Injectables and ophthalmic hand, topical six oral liquids and 40 inhalation products behind that we have eight England pipeline products with 89% representing non oral solid products in comps.
Next categories, which tend to drive higher profitability profitability and have longer product lifecycle.
Over one third of our pending Andas and two thirds of our pipeline.
Expected to be first to market first to file or firefighters to.
And Injectables, we see your cadence of innovation continuing as we remain on track to file 10 to 15 more NDA in 2023, including many complex Injectables, we look to file our first firefight do ready to use bag this year as well.
Insulation, we recently completed clinical trials for generic Proair and look to submit our NDA shortly.
In addition, we shared last quarter, our new partnership to in license the software technology platform for the development of recipe met installation programs.
Also we are pleased with the progress of our MBA programs and expect to submit additional anda in the coming years.
Next let me highlight a few notable upcoming new product launches.
As discussed last quarter, we are very excited about our anda for naloxone nasal spray our generic version of Narcan, which is currently under priority review with the U S. FDA. We believe this product now over the counter we improve access to critical life.
Saving opioid overdose treatment for millions of people across America. In addition, we are on track for the July launch of an authorized generic version of Xyrem, which is a key therapy for narcolepsy.
East of our notable launches is included on the key growth catalyst slide in the presentation.
<unk> added a number of new programs to the list this quarter.
Turning to specialty R&D, we are expanding our portfolio through our pipeline, we have our <unk> date for IPX, two or three coming up on June 38 <unk>.
We see IPX, two or three and then important innovation that advances the standard of care with a broad market appeal for Parkinson's patients.
Accordingly, we continue to see IPX towards III as the $300 million to $500 million peak status proportionality. In addition, we are making good progress on international licensing opportunities for IPX towards fee, which is which is pending approval. So that this new therapy can reach the globe.
Well patient population.
Next in Biosimilars, we are very excited about the value <unk> can bring to this space. Our first oncology biosimilars are seeing strong uptake in the market and we see tremendous opportunity to expand our portfolio through partnership for future molecules, we see biosimilars.
As a key long term growth driver looking globally, we see 2023 as a foundational year for our international expansion strategy.
R&D team is well positioned to leverage our rich portfolio and five key products in markets around the world, including Europe , China and other emerging markets.
We have begun registering selected products. This year as we pursue over 50 product opportunities in different emerging market countries. We have a dedicated team at <unk> focused on driving international expansion in summary, we continue to drive operational excellence.
And execute well across our innovation strategy, which is fueling our ability to drive sustainable growth.
I'll now hand, it over to Tassos.
Thank you Chantal.
Ill first discuss first quarter results then capital allocation followed by a brief review of our full year 2023 guidance affirmation.
We're very pleased with our first quarter results with total net revenue of $558 million growing 12%.
Adjusted EBITDA of $116 million growing 16% and adjusted diluted EPS of 12% in line with prior year.
First quarter generic net revenue was $344 million, an increase of $26 million or 8% versus the prior year.
Strong performance was driven by new product launched in 2022, and 2023, which added $31 million of revenue and stable performance in the rest of our broad portfolio.
In addition to the strong performance, we're very pleased by the continued evolution in the refreshing of our generics portfolio.
As an example products launched an added since 2019 now account for 42% of our generic revenue, which bodes well for continued growth and profitability.
Q1, specialty net revenue of $92 million increased $7 million or 8% versus the prior year, driven by unit droid up 39% and Rytary up 14%, which reflects strong commercial execution as well as substantial pace.
<unk> needs.
Our <unk> business continues to perform exceedingly well with Q1 net revenue of $122 million.
Up $27 million or 29% compared to the prior year due to continued expansion of our distribution channel.
We're very proud of the work our <unk> team is doing an increasing market share and providing our customers with new products and innovative solutions.
Q1, 2023, adjusted gross margin of 39, 4% compares to 43, 5% in the prior year was in line with our expectations, reflecting discontinuation of a handful of legacy products timing of fixed overhead absorption and our mix of business.
Our first quarter adjusted gross margin represents the low point of the year as future quarters will benefit from new product launches operating efficiencies and manufacturing plant utilization increases.
First quarter, adjusted EBITDA of $116 million increased 16 million or 16% versus the prior year.
This strong performance reflects our revenue growth.
Higher investment in sales and marketing to support our Biosimilar and specialty brands.
Offset by tight expense management across the remaining operations.
First quarter adjusted diluted EPS of <unk> 12.
In line with prior year.
As higher interest expense expense offset our adjusted EBITDA growth.
From a cash flow perspective, we generated operating cash flow of $140 million, which includes our interest expense and $85 million payment and <unk>.
Related to the Opana ER settlement.
We announced last year.
This strong performance was driven by robust cash collections related to our higher accounts receivable balance at year end 2022, as well as the continued strength of our topline growth.
Let me now turn to our capital allocation over the last few years, we have successfully increased profitability.
Wired capabilities.
And well run businesses reduced legacy legal exposures and lower leverage.
As a result, we have grown annual adjusted EBITDA to over $500 million compared to $339 million in 2019.
We invested about $500 million.
In M&A such as healthcare.
State of the art injectable facilities.
Rebuilt our specialty R&D pipeline and settled some.
Potential legacy legal matters.
In addition, we reduced net leverage from seven four times in 2019 to four nine times in the most recent quarter.
With many of these investments now behind us our intent is to prioritize debt reduction.
We believe our strong cash generation bottomed.
Bottom line growth as many of these investments come to market and active debt Paydown will further reduce net leverage to below four times by the end of 2025.
For full year 2023.
<unk> our guidance expectations.
As a reminder, we expect total net revenue of $2.250 billion.
To build a $350 million.
In 2023, which reflects continued mid single digit growth driven by growth across all our three business segments.
Also we continue to expect 2023 adjusted EBITDA between 505 hundred $30 million, which includes incremental investments, particularly in sales and marketing to support new launches and scale up in higher growth areas of the business.
We expect adjusted EPS between 40 and 50.
Which reflects higher interest expense, including the potential refinancing of our term loan b.
On the cost side, we continue to expect 2023 operating cash flow between $200 million to $230 million, which includes.
Includes interest expense and excludes the already announced legal settlement costs of about $90 million, mostly related to Opana, ER and capital spend between 50 and $60 million.
With that let me hand, it back to Sheila Thank you toss us.
In summary, we are pleased with our excellent start of the year, we expect to have strong momentum will accelerate over 2023.
<unk> remains well positioned for sustainable long term growth with a diversified and expanding portfolio.
And key near term catalysts happening all now, including Biosimilars complex Gx, Injectables and IPX towards three.
As we continue to execute our strategy will further diversify our business and deliver profitable growth, we expect to drive higher levels of adjusted EBITDA and remarkably Delever. The company, let me now open the call to questions.
If you'd like to ask a question. Please do so now by pressing star followed by the number one on your telephone keypad.
You change your mind I would like to be remains for Nicky. Please press star and then K when preparing to ask a question. Please ensure that your mic, Brian Android device on muted lately.
Our first question today comes from the line of Bellagio Prasad with Barclays. Please go ahead.
All the details in the slides.
Also congratulations on the injectable specialty so I think thats, probably right on top of it Chuck can you help me understand.
The broader commercial opportunity in the Injectables market isn't addressing shortages or is this called Clara for a player with strong pricing power.
Any kind of advantage Shannon I'd also just remind me MLD kind of digestible size and what are the key contributors to take you to the $300 million portfolio.
And the second question is on the Biosimilar side.
Can you give us update on how enrolment for our partnership in Biosimilars is as you look to bring in more biosimilars into the U S.
And lastly on the same front other combined biosimilars revenues greater than $15 million molecule. Thanks.
Thank you biology, let me start with the injectable strategy as we have stated that our strategy is to expand capacity have redundancy in the supply chain and that's exactly what we've been doing.
Our focus has been to introduce differentiated products such as triamcinolone. We were first in the market and still is a major market share cyclophosphamide.
Now LBP bags.
The peptide based products coming soon so it's more driven towards complex products, which has the demand less competition with supply chain.
Security for our customers for our hospitals, we very deep relationship. We are building. We're also going to supply certain commodity products that are in shortages and thats. How we have built very strategically so far our injectable business and going forward. It is built to be more durable more.
Complex products more relationship with hospitals, and clinics and bringing them, what they need which is shortage products as well addressing shortage products. So today, we do about $180 million and we expect to be well over $300 million by end of 2025.
And continue to grow from there after that and that obviously also will include.
International revenues as these products have good international markets as well.
On Biosimilars very excited with two launches about to launch the third one the team has done a great job.
All all across as we always do great job in commercial site.
Again ex selling with building relationship using the old relationship that we had with the wholesalers.
Building, new ones with the community oncologists and hospitals, we do have a sales force market access we take the promote specialty sells.
That help on the marketing and market access as well so with that we are very.
Well over on our way to reach this target about $50 million to $60 million, but that accelerates because we're accelerating in Q3 and Q4. So next year's significant uptake for these three products and then we are working on the pipeline, which we have announced as we have a stated goal to be the top five.
<unk> layered in the United States is the long run so we're going to be here. We always said it is not just one year two years three years is to stay in the game for next 10 years and we see highly valuable franchise is biosimilars.
For the United States and for the global market.
Just to add one point to Chicago on the injectable. Thank.
Thank you good morning <unk>.
We have 32 pending andas at FDA and we continue to file.
While about 10 or 15 every two years and now we are at scale with 19 production line so to get to from our current revenue of about 171 if.
If you can just do the math 32 pending in 10 15 and also all of these are in a differentiated dosage from many complex drug device combination card <unk> peptides.
Some of them may be long long before long acting depot injection. So we are very well positioned and we have no dependence in our resiliency in our.
Our manufacturing footprint, which is the biggest challenge in Injectables I think we are very excited.
With all the lines now going live and you will be commercializing in third quarter from our newly.
FDA inspected site and this gives us the <unk>.
Elaborating a multibillion areas flooded areas are also very lucrative part of our international expansion.
Okay.
Thanks, that's helpful.
Our next question comes from Chris Schott with J P. Morgan. Please go ahead, Chris Your line is open.
Great. Thanks, very much just two questions on guidance for me maybe.
Maybe first on the on the generic gross margin trends can you just elaborate a little bit more in terms of what happened to gross margins. This quarter and just how we should think about generic gross margins for the balance of the year. I know you mentioned there were some onetime issues, but I don't think <unk> had gross margins of slow for a few years I'm starting my hands around what exactly is happening there and probably more importantly, just how to think about the next few quarter.
<unk>.
And the second was on revenue growth.
Obviously, a very good start to the year with this quarter, but I think the go forward guidance implies more modest revenue growth for the remainder of the year.
Again, just similar question there just help me a little bit about the cadence of revenue growth as we think about the next few quarters and kind of drivers there. Thank you.
Hey, Chris This is <unk> good morning.
Yes.
As you know gross margin.
Any given quarter can fluctuate a little bit.
For us it was just.
Certain products small product discontinuation, so as I've mentioned and related kind of obsolescence product that we had to write off and just timing of our production lines. So so you are correct reflect lower that has been in previous quarters, but from our perspective I expect I fully expect Q2, a step up in the above.
40%.
And in terms of kind of full year expectations from a generic gross margin I think we're going to be around 42%.
In line with prior with prior year. So that's around the gross on the gross margin in terms of from a revenue growth perspective.
Sure.
Yes.
We've been speaking for last few years and you've been following Neil.
This is the rocket about two five.
<unk> now right, because it's well positioned to drive sustainable topline growth and meaningful adjusted EBITDA acceleration in 2023, 24 and beyond let me tell you how it is happening so and how diverse and how good that is that we're not relying on to specialty.
<unk> to make our life or a company like we are.
<unk> portfolio of 270 products driving durable profitable growth number three in the United States and value number four in volume we are the only company that grew.
Where everybody the group and we will continue to grow in next several years highly productive we nowhere do R&D pipeline launching 20 to 30, new products every year 30, plus we look at the diversity we have.
Nude shift to complex products with capabilities across dosage forms so essential business and we are providing essential services.
500, plus million revenue came from recent product launches.
Spending in high growth areas, Injectables and Biosimilars goal to be top five.
We did it before and we're going to do it again.
Growing specialty portfolio.
I know youre not excited on IPX, two or three but we are very excited and we will.
You'll see the strategy being rolled out and why we think such a need we've talked to Parkinson's patient every day kols everyday and a huge need to penetrate dietary penetrated only 4% and 96% there on IR CDL, Lee, which is 30 years old technology.
<unk> and they experienced such a bad off time every day and we are determined to take this product out to as many general narrow as we can and even beyond that.
<unk> distribution business growing double digit after victory there are not many players so it gives us.
Excellent chance to distributor products directly in unit dose in government channels and niche distribution channels.
This is a sizable business now 450 million plus.
On top of that we're entering very meaningfully on international markets further diversified the company.
And all of that with our most of the products made by US we have a global network of manufacturing sites top of the class number one in quality.
The U S champion.
What we need three USB sites for injectable sites, one nasal spray liquids in the United States Transdermal site in the United States <unk> site in the United States to API sites, providing needed API for us.
And one inhalation respiratory site in Ireland. So with all this we are extremely well positioned for growth not just this year, but 'twenty four to all the way to 2030.
Thank you.
Great. Thank you.
Okay.
Our next question comes from David <unk> with Piper Sandler.
Please go ahead.
Hey, thanks.
On the generics business can you talk to.
Product concentration and I'm, specifically interested in contribution from <unk> this year and how youre thinking about.
The potential for competition.
That product down the road I know, it's a complex product, but can you talk to that.
Yes.
In general are there beyond that for me are there any other.
Products, we should be thinking about that have an outsized impact on generics. So that's number one.
Number two.
Helpful commentary on the deleveraging, but I guess my question is on Biz Dev and M&A.
Whats your appetite rguest capacity.
For deals how large can you go and how big of a priority.
Our bolt on transactions.
Hey, David This is Tom I can take the first one in there.
Two I can take the.
More strategic question.
It's whether or not <unk> or any other product in our portfolio.
As more competition or less competition. It does not make a big difference one way or the other because we have done if you kind of go back for example, a number of years ago for example, labor side rock site right.
Was $180 million product for us.
We don't have any such product anymore in the generic segment right. The biggest product, maybe a $50 million to $60 million product.
So that's part of why we kind of keep focused on how the business has been diversified over the course of time and this is a differentiating factor for <unk> compared to any other generic company out there so.
No one product kind of keeps us up at night.
And the other thing is <unk>.
<unk> said earlier on we've already launched 10, new products. There's another 20, new products that are going to be launched whether or not we launched 30 products. This year or 25 products. This year.
It's not going to make a difference in our performance.
On the capital allocation piece I mean, I'll give you my view is as I mentioned before we spend a ton of money.
And thoughtfully right, we never did an acquisition that kind of bet. The company many of them were tuck in acquisitions to fill out specific.
Areas that are going to drive future growth. So as a result, I think at this point in time with investments we have made the interest rates being where they are right. This is why you're hearing us kind of de prioritizing M&A and focusing more so on debt Paydown suraj.
Any additional thoughts tassos, you've covered really well David.
We do not have that 2018 problem.
Leaky buckets on a big Gx products is highly diversified across the business segments within generics, we have multiple products with.
10, 2030, 40, 50, and will continue to drive and obviously organically leads the way it's kind of.
Branded Gx, if you would call it.
And then M&A look we invested almost $600 million over the last four years and that is paying off really well we continue to invest almost 200.
$40 50 million every year, combining R&D internal R&D external R&D as well as.
Capex.
Adding a new peptide side.
Biosimilar investment so we have enough for next two three years. So right now we're zoomed in with low the consolidated business that we have different segments diversification.
Our goal is to Delever lower the debt.
That amount increase the EBITDA and then from 2026, we would be in a much better position to think about anything big strategic but right now we're loading all of the businesses and Theyre all firing on all cylinders, So which is a beautiful thing theres not a weak link within any of the segments of our businesses.
Okay. Thank you.
We take our next question as a reminder, if you would like to ask a question today. Please do so now by pressing star followed by the number one on your telephone keypad.
Our next question comes from Greg Fraser with curious Securities Greg. Please go ahead.
Thanks, Good morning folks.
Yes, Q3, you mentioned in the slide that data generation plan that support potential for earlier can you expand on that planning additional clinical work and then can you just give us an update on your efforts to refinance the term loan b. When do you expect to finalize our refinancing and what are your expectations for terms to the new debt. Thank you.
Okay Alright.
Hi, good morning, So IPX two or three we are very excited about how novel. This formulation is compared to what is currently available in the market.
And how it can benefit the patient.
It is a very unique formulation that combined with immediate release.
Sure.
<unk> got rid of Alibaba, especially levodopa is a huge problem over absorption through the Gi track and hops short life. So the way the formulation is done.
And our data shows as part of the Clinique of that one five hours of all those in bromine compared to wired CD LD and again.
That's what.
<unk> in the label, but label and everything remains under final negotiation. So it can help many many new patients who are starting on the immediate relief cognitive while Uruguay therapy, which can take the fluctuations out and again stabilize the patient and can give.
Long being able good on time. So that's why we are excited current our dietary product only.
Offers over 40% of the patients and 96% of patients that are going to step up. So once we get the final label and what is on the label.
<unk> can be very very helpful for the Navy and the new patients.
And provide them awesome good on time compared to their current therapies on the market.
Hey, Greg on the refinancing as you know our term loan b doesn't come up for.
That doesn't become due.
Two years right. So its may 2025, so there is plenty of runway right, having said that.
I wish I wish it was as CFO in 2007, eight and nine so having lived through that you never know what happens to the capital markets. So this is why.
As a company want to be constructive and Thats, what we said we would like to.
Extend to.
Refinance our term loan b sometime this year. So we're in active conversations with the market, we have a number of kind of grade.
<unk> in our current term loan b.
Hope to see many of them.
You've expressed an interest to kind of continue.
Refinancing efforts.
So we'll continue to try to be constructive with the market.
But not at any cost and that the tenure terms.
So.
Our expectation is continued to focusing kind of getting it done before the end of the year and if it goes beyond that so be it.
Thank you.
Okay.
We have no further questions registered I'll turn the call back to <unk> for closing remarks.
Okay.
Thank you. Thank you very much.
So just closing out.
Summarizing <unk> has a diversified differentiated and growing across all businesses.
It's a show me story, we know that and we've been showing it will be showing more that's what we are doing and we are laser focused on execution.
Having higher EBITDA in deleveraging and our future is very bright and so very excited all 7000 employees are extremely excited to take make a meal the American champion and be the leading affordable Medicine company for the United States. Thank you very much.
Thank you.
Thank you everyone for joining us today. This concludes our call and you may now disconnect your lines.
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Okay.