Q1 2023 Collegium Pharmaceutical Inc Earnings Call
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Greetings and welcome to the Collegium pharmaceutical first quarter 2023 earnings call Conference call. At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance. During the conference. Please press star zero on your teller.
Phone keypad. Please note that this conference call is being recorded I will now turn the call over to Christopher James Vice President of Investor Religion Relations Acheloos gentlemen, Thank you you may begin.
Welcome to Collegium Pharmaceuticals, first quarter 2023 earnings conference call.
I'm joined today by Joseph <unk>, Our Chief Executive Officer, Colin You Tucker, our Chief Financial Officer, and Scott Dreyer, our Chief commercial officer.
Before we begin today's call we want to remind participants that none of the information presented today is intended to be promotional.
Any forward looking statements made today are made pursuant to the safe Harbor provision of the private Securities Litigation Reform Act of 1995.
You are cautioned that such forward looking statements involve risks and uncertainties, including without limitation. The risks that we may not be able to successfully commercialize our products that we may incur significant expense and that we may not prevail in current or future litigation pertaining to our business.
These risks and other risks of the company are detailed in the company's periodic reports filed with the Securities and Exchange Commission.
Our future results may differ materially from our current expectations discussed today, our earnings press release and this call will include discussion of certain non-GAAP information you can find our earnings press release, including relevant non-GAAP reconciliations on our corporate website at Collegium form of Dot com.
Now I'll turn the call over to our CEO Joseph Oni.
Thank you Chris Good afternoon, and thank you everyone for joining the call today, we will discuss our financial performance during the first quarter and provide an update on our progress towards achieving a banner year in 2023.
At Collegium, we are focused on building, a leading diversified specialty pharmaceutical company.
<unk> to improving the lives of people living with serious medical conditions.
Our commitment to improving lives extends to our communities and in support of that during the first quarter. We made a charitable donation to kitchen Tech a nonprofit organization, leading stem education initiatives for kids from low income households, and we donated 1000 hygiene and essential kits for.
People in need through life science cares I'd like to thank our team for their commitment to our mission and for making Collegium a great place to work.
In the first quarter of 2023, we delivered strong financial results and made progress against our strategic priorities key.
Key accomplishments in the first quarter include we delivered record quarterly revenue and adjusted EBITDA, We generated record quarterly BELBUCA and extends the ER revenue.
We achieved gross to net for expansive E. R. A 55%, reflecting the immediate impact of the successful contract renegotiations completed last year.
We presented four posters at the American Academy of Pain Medicine annual meeting and we increased our cash balance, leaving us well positioned to execute on our capital deployment strategy.
With our strong performance in the first quarter. We are confident 2023 will be a banner year.
As we move through 2023, we expect to recognize significant top and bottom line growth.
Topline drivers include extensive E. Our gross to net improvement.
Full year, BELBUCA revenues, and BELBUCA and extensive E. Our prescription growth on a full year basis.
We believe our fully synergize cost structure and financial discipline will further fuel bottomline growth and enable us to deploy capital to create long term value for our shareholders.
Our 2023 financial guidance includes growing adjusted EBITDA by over one and a half times revenue and over two times adjusted operating expenses, we are confident in our ability to deliver on our financial and strategic goals and have already made progress in the first quarter of the year.
We are dedicated to making 2023, a banner year by executing our two pronged strategy maximizing the potential of our pain portfolio and deploying capital.
We plan to maximize the potential of our pain portfolio through strong commercial execution.
During the first quarter, we saw an immediate acceleration of extensive E. Our revenue to a record level with year over year growth of approximately 52%, primarily driven by gross to net improvement to 55%.
We also delivered record quarterly BELBUCA revenue and we will recognize the benefit of owning BELBUCA for the full year.
We do expect BELBUCA next steps that you are prescription growth on a full year basis, and we anticipate that the NUCYNTA franchise and some project will be steady contributors.
Our capital deployment strategy is focused on creating long term value for our shareholders.
Our top priority is business development, we are focused active and engaged we are looking for differentiated commercial stage assets that generate that have the potential to generate over $150 million in annual revenues with exclusivity into the 'twenty thirties, we built.
Market conditions are conducive to potentially getting a deal done.
We are in a strong financial position, which gives us gives us the flexibility to evaluate a range of deals that could be a great strategic fit for Collegium. We will remain disciplined in our approach we are committed to rapidly paying down debt and opportunistically utilizing our share repurchase program.
To return capital to our shareholders.
We are encouraged by our first quarter performance and confident that we are on track to achieve our financial objectives. Our strategy is clear and our organization is focused on execution I will now hand, the call over to Colleen to discuss the financials.
Thanks, Joe Good afternoon, everyone. We had a strong first quarter in which we delivered record quarterly revenue and adjusted EBITDA maintain financial discipline and generating strong cash flows while paying down debt.
Financial highlights for the first quarter included net product revenues were a record $144 8 million for the first quarter compared to $83 8 million for the first quarter of 2022, an increase of 73%.
BELBUCA net revenue was a record $44 2 million in the first quarter.
Nancy E. Our net revenue was a record $47 9 million in the first quarter, an increase of 52% over the first quarter of 2022 and extends to E. Our gross to net was 55% in the first quarter.
The lower gross to net was primarily driven by the extents. The E. R contract renegotiations, we completed last year.
As a reminder, gross to net is generally more favorable in the first quarter of each year due to the lower coverage GAAP expense also known as the donut hole in Medicare coverage as we move through the year gross to nets are expected to be less favorable in the second and third quarters and improve sequentially in the fourth quarter, but remained less favorable.
In the first quarter level. This is consistent with what we have experienced in past years, we expect full year extensive E. Our gross to net to be between 61% to 63% in 2023.
NUCYNTA franchise net revenue was 49 million in the first quarter, an increase of 1% over the first quarter of 2022 gas.
GAAP operating expenses were $52 8 million in the first quarter, which decreased 10% compared to $58 5 million in the first quarter of 2022.
Adjusted operating expenses were $38 2 million in the first quarter, which increased 52% compared to $25 2 million in the first quarter of 2022, our operating expenses were front loaded into the first quarter, reflecting investment in our growth initiatives for the year, we expect operating expenses will trend lower in the subsea.
Equity quarters of 2023.
Net loss for the first quarter was $17 4 million compared to a net loss of $13 1 million in the first quarter of 2022.
Included in GAAP net loss among other items that do not represent our ongoing operations is a $23 5 million loss on extinguishment of debt related to the repurchase of a portion of our 2026 convertible notes and an $8 $5 million charge related to our settlement agreement with the question of Therapeutics.
non-GAAP adjusted EBITDA was a record $87 6 million for the first quarter compared to $43 5 million in the first quarter of 2022, an increase of 101%.
GAAP loss per share was 51 basic and diluted in the first quarter compared to.
GAAP loss per share of 39 basic and diluted in the first quarter of 2022 now.
non-GAAP adjusted earnings per share was $1 32 in the first quarter compared to 71 cents in the first quarter of 2022 an increase of 86%.
Please see our press release issued earlier today for a reconciliation of GAAP to non-GAAP results.
As of March 31st 2023, our cash balance increased to $269 $5 million during the quarter, we paid down $25 million in debt related to our term notes. We also completed a $241 $5 million convertible note offering with a maturity in February 2029.
Matter of good corporate hygiene. The later maturity provides us with more financial flexibility in the management of our debt.
We used the $141 million of proceeds from the offering to repurchase a portion of our convertible senior notes due in 2026.
After note issuance costs, you had approximately $97 million of net proceeds, which we intend to use for general corporate purposes, including the implementation of our capital deployment strategy.
We ended the first quarter at one and a half times net debt to adjusted EBITDA and expect to end the year at approximately one times.
We are pleased with our strong first quarter performance, which reflects the progress we are making as we execute our financial objectives for the year.
We are reaffirming our financial guidance for 2023, we expect net product revenues in the range of 565 to 580 million adjusted operating expenses in the range of 135 to 145 million and adjusted EBITDA in the range of $355 million to $370 million.
Our capital deployment strategy is focused on creating long term value for our shareholders. Our strong financial position allows us to execute our capital deployment strategy. Our top priority is business development and we are committed to taking a disciplined approach and a market that we believe is conducive to potentially get.
Any transaction done.
We are locked into rapidly deleveraging our balance sheet, we're on track to repay a $162 $5 million of debt in 2023, which would put us at approximately one times net debt to adjusted EBITDA at year end our.
Our ability to Delever quickly is a testament to our strong cash generation.
Finally, we have the ability to return capital to our shareholders by strategically leveraging our share repurchase program.
In January 2023, our board authorized a new share repurchase program for $100 million. We are very pleased with our first quarter performance and strong start to 2023 as we positively track against our key financial and strategic priorities I will now turn it over to Scott.
Thanks, Colleen as we look at performance in the first quarter. There are two key takeaways first the contract renegotiations for extensive E. R. That we completed in 2022 have had an immediate positive impact driving gross to net improvements and accelerating net revenue.
This year, we have the opportunity to renegotiate contracts that represent 30% of prescriptions and we've created room to opportunistically secure new payer wins, while ensuring gross to net for extensive E. R remains below 65% forever.
Second as we look at BELBUCA and extensive E. R. Prescription performance was generally in line with our expectations. We believe the growth of ex stamps and BELBUCA were pressured by typical first quarter dynamics, where deductibles reset and increased out of pocket costs for patients consistent with past years, we expect this to me.
<unk> in the second quarter.
Additionally extends to ER prescription growth was pressured due to extensive being removed from formulary on January 1st within plans, we renegotiated last year that represented approximately 10% of extends to ER prescriptions.
We believe that on a full year basis, you will see prescription volume growth for BELBUCA and extents. The E. R. This is our number one commercial priority.
The fundamentals of both brands are strong and we believe they are positioned for growth.
<unk> E. R. M. BELBUCA are viewed favorably and are considered highly differentiated by health care professionals. These.
These same hcp's have indicated a strong intent to increase prescribing of ICH stamps and BELBUCA.
The prescriber bases of both extensor N BELBUCA are large with approximately 19009 thousand prescribers in the first quarter respectively.
This reflects the value of these products bring to pain management.
Both products have broad commercial coverage and extensive E. R has strong coverage within Medicare part D.
X Samsung and BELBUCA grew market share in the first quarter compared to the fourth quarter of 2022, and extensive BELBUCA and NUCYNTA ER have a combined 49% share of the branded ER market.
The commercial organization is taking specific actions to differentiate our portfolio and fuel growth. These.
These actions include the following launching new promotional campaigns and educational resources for our sales team to use during interactions with HCP is and pharmacists.
Launching new digital and non personal promotional content, which reinforces the clinical differentiation of <unk> and BELBUCA.
Launching new personal and non personal promotional tools and working with payers to pull through the strong access positions of extensive E R and BELBUCA.
In March we had a national sales meeting to reinforce the brand strategies and messaging for our differentiated products.
Our commercial organization, a highly motivated group of people, who believe deeply in our pain products.
And on our priorities and participated in numerous workshops in practice sessions designed to strengthen the impact of their customer engagements.
Every member of the commercial organization is focused on executing our plan.
Our second commercial priority is winning in managed care.
Our first step to winning is pulling through the strong access positions that we have for stamps the E R and BELBUCA.
Our second step is renegotiating extends to ER contracts that expire this year, which represent an additional 30% of prescriptions.
Our third step to winning in managed care is securing new access positions for BELBUCA index stamps that in 2024.
For BELBUCA, our priority is improving access within Medicare part D.
We believe that the clinical differentiation of BELBUCA warrants broader coverage within Medicare part D and we're actively engaged with payers to find a path to better access for patients.
We're highly engaged with payers discussing the clinical value of <unk> E. R. N BELBUCA and the difference both products can bring to patients we're encouraged by the level of engagement.
In closing, we're committed to achieving our commercial priorities in 2023 of growing extensive E R and BELBUCA prescriptions and achieving wins in managed care I'll now turn the call back to Joe.
Thanks, Scott we are encouraged by our performance in the first quarter, which demonstrates the progress we are making on our strategic priorities. We have a lot of work ahead of us, but we are confident that 2023 will be a banner year for Collegium.
I will now open the call up for questions operator.
Thank you and at this time, we will conduct a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad.
Confirmation tone will indicate that your line is in the question queue. You May Press Star two if you would 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.
Our first question comes from.
David I'm sell them with Piper Sandler Please state your question.
Yeah.
Hey, Thanks, So just a couple of first Joe I know you talked about.
Exams, and BELBUCA volume growth or your expectations.
For volume growth. So I was wondering if you can elaborate more on what youre doing to them.
To drive renewed volume growth for Samsung and also what you're doing.
From a sales and marketing perspective on BELBUCA.
That's number one and then.
Number two is for BELBUCA E. Historically, Medicare part D access was a real challenge so.
Is there anything that's changed.
Regarding your dialogue with payers.
Payers are in terms of part D and what are your expectations on the part D front for BELBUCA as this year progression and looking beyond this year. Thank you.
Okay. Thanks, David I'm going to have Scott answered. The first question around the actions, we're taking to grow volume with expansive E. R and BELBUCA and then maybe I'll share some perspective on Medicare part D. Alright, yeah. Thanks, David Yeah look when you when you look at actions that we're taking I put them into a couple of buckets first we're launching a law.
Lot of new resources to improve the engagement of our customers through the sales representative so I've mentioned at the National sales meeting we went through a lot of training and workshops in the critical piece is we're now a year into the acquisition of BELBUCA and I can see that people are comfortable with the product comfortable with the resources and excited to continue to drive that product forward.
Also from a non personal digital standpoint, we continue to put new content into the marketplace to raise awareness around the profile of our products. So those are the primary actions that we're taking David to reinvigorate growth.
And then David with regards to Medicare part D. I think what we've chosen to do because we think it is a product that certainly merits availability to that patient population is to take a blank canvas approach or assume that the payers knew nothing about BELBUCA and we started.
Foundational way with clinical presentations, and we were surprised to learn that they actually didn't have high awareness and the knowledge that you would expect around BELBUCA and those are the encouraging discussions that Scott referenced that we've had to this point. So we will continue to work towards it our hope is.
Based off of those positive conversations that we'll be able to unlock some opportunity in Medicare part D and that would have impact in 2024, if we were successful in doing so and as we always do in our November call, we'll provide an update on the payer landscape in it.
Evolution.
That's helpful. If I may just follow up in terms of the BELBUCA gross to net I know, it's early and you know this is fluid, but do you have a sense of I guess, where you would take.
The the gross to net up to for BELBUCA too.
It is an exchange essentially for <unk>.
For better part D access.
Yeah.
Yeah, So what I would say, David I don't want to give any.
Specific perspective on that but I would distinguish any approach that we take with BELBUCA.
Would be much different than what it is we've historically done with expansive E are where we were.
Yeah.
Yes.
Got it okay. Thank you.
Thank you and our next question comes from Tim Lugo with William Blair. Please state your question.
Thanks for taking the question.
It sounds like the landscape is a kind of ripe for deals.
Can you talk you mentioned $100 million kind of revenue the type of product can you discuss maybe the profile.
These product a bit more on a similar margin profile.
I'm, probably going to be almost overlapping sales forces can you just.
Maybe give us a little bit more flavor for what the type of products Youre looking at.
One moment please.
Okay.
Yeah.
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Thank you and Tim Lugo was on the line.
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Sorry about that.
I think everyone's family castle, well just getting over something.
Let's talk about business development it sounds like there is.
A couple of deals that Youre looking at I think you mentioned $100 million in product revenue can you just talk about kind of the profile of the.
Deals you're looking for in terms of margins as well, it's a walk in the sales force.
Yeah sure. So thanks, Tim let me apologize everyone. Our systems here went down so I appreciate it.
You hanging in there with us well from a business development perspective.
Because we believe the current market conditions are conducive to getting a deal done we're being agile in terms of what potential therapeutic area and what we're focused on is number one differentiated assets. We think that's critical in order to be able to get reimbursement which is critical.
Commercial success from a peak sales perspective, we're looking for ex assets that have greater than $150 million of peak sales potential and then assets that have one way into the 2030. So you're correct them. We are we are very focused and active right now with.
Regards to our business development efforts and Colleen maybe you can give a perspective in terms of how we think about it from a size and capacity perspective.
Yeah. Thanks for the question, Tim what I'd add on to that from a size and capacity perspective is we have flexibility with the strength of our balance sheet. As we've stated previously we would be comfortable for a commercial stage assets to go up to four times net debt to adjusted EBITDA.
And when but we're generally looking at assets that the market caps of a billion dollars or lower and we would be looking for something that potentially not accretive in the first year, but it is very rapidly accretive in year.
<unk> definitely by year three.
Great to hear thank you.
Thank you.
Our next question comes from Brandon Folkes with Cantor Fitzgerald. Please state your question.
Alright, Thanks for taking my question.
So maybe just a few for me.
Congratulations firstly on the gross to net performance in the quarter can you just talk about the first quarter gross to net performance, though in lots of your expectation and then lots of the guidance obviously.
Obviously, you reiterated guidance on the gross to net side today should we expect you know one or two quarters, maybe two Q3 Q sort of outside of that gross to net range in kind of averaging back into it or is it just sort of conservatism at this stage are reiterating that guidance range. So maybe we'll start there.
Thanks, Brandon Great question, no what we're still expecting from a full year perspective to be 61% to 63% range with the portion of the business for extensive that's weighted to Medicare part D. We will see the greatest impact of coverage gap in the second and third quarter, and then we'll have that bit of sequential improve.
In the fourth quarter, but it won't be as good we wouldn't expect it to be as good as what we saw in the first quarter and so what we see is the typical seasonality associated with the coverage gap and for the full year, you'll see that net out in the 61 to 63 range.
Great. Thank you and maybe just a high level one and so I appreciate all the color on the extends on BELBUCA volume growth and the initiatives to drive growth in the back half of the USA.
How do you feel about bringing or how should we think about bringing in additional commercial assets at this stage, while you're still sort of execute on those.
Initiatives and sort of try and get those two assets.
Back to volume growth.
Obviously.
I'd imagine it's going to be an adjacent.
Yeah, Peter product, but just how do you think about it strategically in terms of focusing on volume growth versus business development and maybe kind of executed nice you can parallel thank you.
Sure. Thanks for the question, Brandon and I think that gets to our two pronged strategy prong. One is maximizing the potential of the pain portfolio. When you think from a business development perspective, the types of things. We're looking at will be lower synergy deals than what we've previously done.
And that's really highlighting that will be pivoting to another therapeutic focus which will set a second beachhead.
For the organization and have a separate field force and commercial infrastructure, So and that's important to the type of question, you're asking because it will have no disruption to the focus on the people who are dedicated to maximizing the potential of our pain portfolio and it's something that we believe will be able to absorb.
Bring over the.
The individuals and be able to be successful with whatever it is we acquired two.
Great. Thank you very much and congrats thank you.
Our next question comes from Serge Belanger with Needham <unk> Company. Please state your question.
Hi, good afternoon.
Just wanted to dig in a little bit on the one Q performance I'm just curious if the.
Usual earlier impacts were more pronounced than usual this year.
You talked about gross to nets on <unk>, but what about the.
BELBUCA and NUCYNTA gross to nets, and then maybe just comment on.
Description volumes through the first quarter.
Thank you okay.
Serge I'll have Colleen start off and take the gross to net question.
Alright, thanks for the question Serge So so I would say overall, our expectations on gross to nets were aligned with where we saw them come in for the first quarter to give you a bit of additional context on what we saw by a product beyond extensive that I already mentioned, our BELBUCA gross to nets in the first quarter were 47.8.
NUCYNTA IR was 41% and NUCYNTA ER was 40.7 and those are all in line with our expectations from and built into our guidance.
And Serge with regards to prescription trends in the first quarter I don't think that there was anything out of the ordinary with the following caveat. This is the first time in the history of expanse, where we didnt add any new payer wins, and so was subjected to that first quarter dynamic and although the team.
Did an outstanding job and you can see that in the revenue and gross to net performance of renegotiating those 54% those contracts that represented 54% are bulk stamps. The ER prescriptions, we did come off formulary and 10% of those plants, which we think also in the first quarter put some.
Sure on prescriptions with regards to BELBUCA I think it's in line to what you would historically see.
Okay. Thank you nice quarter.
You got it. Thank you appreciate it.
Our next question comes from Greg Fraser with true of Securities. Please state your question.
Yeah.
Good afternoon folks thanks for taking the questions.
I had a question on the topic of BELBUCA generics and I'm curious do you have insight into the technical issues that camera research had what they say.
And that filing and why.
Those challenges if you know what they are to potentially be faced by other generic filers.
Okay Gregg thanks for the question so.
Unfortunately, that's not something that I'm going to be able to comment on on this call. What I would say is we believe that BELBUCA is a very hard product to achieve all doses successfully without infringing.
Upon the IP.
And we will always continue to vigorously defend the intellectual property of BELBUCA I'll also remind you that chemo had attach themselves to the album litigation bromine in validity perspective, so both from that perspective are barred from entering the market.
Until 2032.
Got it thank you.
Quick one on NUCYNTA ER sales were higher than expected given the Rx trajectory was there anything to note in terms of inventory or gross to net dynamics that benefited sales in the quarter.
Colin.
Hi, Greg no nothing nothing related to inventory, but in the beginning of every year, we typically have a bit of a prop profitability acceleration because that's NUCYNTA being late in its lifecycle. There are fewer contracts that are renewing and so that led to the net sales that we had in the quarter of E R $21 million.
Got it Okay, and then sorry, if I missed it but did you comment on whether you repurchase shares under the new program or are you holding off on buybacks any visibility on a potential deal.
Yes.
So Greg we have not purchased any shares we did not purchase any shares in the first quarter of this year with the new share repurchase program and we certainly as I've commented on are very active and engaged from a business development perspective.
Which will always be our top priority and a key consideration as you think about when we opportunistically utilized the share repurchase program.
I'd also emphasize over the history of the share repurchase programs that we've had we have acquired back $62 million worth of our stock at an average price of $19. In 2014. So I think we've been good stewards of capital from that perspective.
Yeah.
Thank you.
Yeah.
Thank you and as a reminder to the audience to ask a question at this time press star one on your telephone keypad to remove yourself from the queue Press star two.
Our next question comes from Glen Santangelo with Jefferies. Please state your question.
Oh, yeah. Thanks for taking my questions I just wanted to follow up on a couple of the previous questions. You know first with respect to driving the scripts and it falls from BELBUCA I think scouts, all sort of sounds like they're going to be all of them.
Some resources and calling I'm trying to reconcile that to the SG&A reported this quarter, which was a little bit higher than what we're looking for but I thought I heard you say you expected that the sort of tail off as the year sort of progresses. So I was wondering if you could just sort of reconcile all those comments.
Yeah, absolutely Glenn So we did we came into the year strong and that those investments that we are set up in the fourth quarter and initiated in the first quarter impacted our overall.
Adjusted operating expenses, So we had $38 2 million in the quarter of investment, which is higher than what you'll see in the next couple of quarters. We still are projecting full year and guiding full year operating expenses between 135 and 145 million.
Okay, and maybe just follow up.
To Greg's question on BELBUCA I mean, what's your latest thoughts with respect to our way.
I don't know if you're willing to share.
Your expectation at this point.
Yeah. Glenn This is Joe I. Appreciate the question I would emphasize that there is no change to our thinking what I can articulate for you as our base case, when we did the BDSI acquisition was that there would be a generic entrant in January of 2012.
Seven that's because there was a settlement with Teva. So that's our base case I would emphasize they do not have an.
An approved product and they also relinquished their first filer exclusivity the remainder the remaining and the followers albigenses chemo in their pursuit of in trying to invalidate the BELBUCA patents.
There was a favorable rolling in support of BELBUCA that was upheld on appeal. So there are held out of the market with that formulation until 2032, and then I think as you know recently chemo.
Who is pursuing non infringement received another C. R. L on their product they had communicated that last week and as I said in response to Greg's question. We do believe it is very challenging to.
To achieve all doses of BELBUCA without infringing upon.
Upon the patents and we're committed to very strongly defending.
The IP. The final thing is we have an authorized generic in the event there was a launch.
If teva work to launch and that's an arrangement with par pharmaceuticals, So BELBUCA would have a long tail.
In that scenario and the final comment I would make if you contrast, it to what we're doing with NUCYNTA.
We're pulling back on our investment and managing.
The payer landscape Accordingly, we are committed to investing through 2027 with BELBUCA.
Perfect. Thanks for the time on shelf.
You got it thank you.
Thank you and there are no further questions at this time I'll hand, the floor back to Joseph <unk> for closing remarks. Thank you.
Thank you everyone for joining the call today, we look forward to updating you on our progress and I hope everybody has a great evening.
Thank you. This concludes today's call all parties may disconnect.
Have a good evening.