Theravance Biopharma Inc. Q1 2023 Earnings Call
Okay.
Ladies and gentlemen, good afternoon, I'd like to welcome everyone to the third bench Biopharma first quarter 2023 conference call. During the presentation. All participants will be in a listen only mode. A question and answer session will follow the company's formal remarks to ask a question press the star key.
Followed by the digits one one on your telephone.
That star one one to ask a question if listening via webcast. Please mute audio on your webcast device before asking your question over the phone.
Will repeat these instructions after management completes their prepared remarks also today's conference call is being recorded and now I'd like to turn the call over to Rick Winningham, Chief Executive Officer. Please go ahead.
Good afternoon, and thank you for joining the thorough events Biopharma first quarter 2023 earnings conference call.
On slide two I'd like to remind you that this call will contain forward looking statements that involve risks and uncertainties, including statements about our development pipeline.
Expected benefits of our products anticipated timing of clinical trials regulatory filings and expected financial results information concerning factors that could cause results to differ materially from our forward looking statements is described further.
In our filings with the SEC.
Your attention to slide three I'm joined today by Rhonda Fordham Chief Business Officer, Rick Graham Senior Vice President of research and development. It was he swarf Chief Financial Officer.
On slide four I'd like to begin my presentation by focusing your attention or thereabouts is immediate future. Those of you who are familiar with the company recognized the tremendous work that our team and partners have done to bring the organization at this point through a combination of perseverance and resilience, we're down a possession to focus our energies.
Behind two key initiatives capitalizing on the tremendous opportunity we have to grow your perl rate and.
Executing on an unambiguous regulatory pathway for <unk> team and multiple systems atrophy patients with symptomatic and a wage.
These are reflected in the 'twenty two 'twenty three targets, we outlined at our last quarterly call and I'm pleased to share with you the progress that we've achieved to date on.
On slide five beginning with your power, where we got our team in collaboration with Beatrice turned in a solid quarter with sales up 8% year over year.
As we've previously discussed there are many COPD patients is not well controlled on their existing therapy, who could benefit from either the addition of or switching to you powered weed.
We bring a coordinated approach to reducing the barriers that prevent patients from receiving your perl rate.
And are working diligently to translate this into tangible results importantly, we know our hospital customers comprehensively and we meet them with solutions that fit their individual needs.
This quarter, we were successful at driving growth in both the hospital and the community settings with hospital volumes up 62% and retail patient new starts up 61% year over year, we reached new highs in market share in both the hospital and community settings, Rhonda will go into greater detail regarding your Perl worries performance.
The new growth opportunities later in the presentation. However, I would remind listeners that your power demand currently doesn't reflect any upside that we may a joke may enjoy should our peffer to study be successful Rick Graham will provide an update on deferred to later in the presentation.
On slide six Walworth highlight while we're excited about your power is continuous continued perform that's we're just as excited for the potential of <unk> success in Cyprus, we worked extremely hard to optimize the phase III design and consultation with the FDA and believe the results from this study could support a.
Approval for MSA patients suffering from symptomatic wage we're pleased with the progress we've made having now open the study and plan to continue to add a number of important recruitment sites in the coming weeks. We've also submitted a request for an orphan drug designation and expect to hear back from the FDA Some time.
This quarter as Rick Graham will discuss ampere locks. The team has the potential to offer significant efficacy safety and dosing advantages over existing therapies and could represent a life changing therapy for MSA patients with symptomatic N O H, we project that enrollment in Cyprus.
Will be complete by the second half of 2024 and look forward to providing additional guidance around regulatory milestones and commercial plans as we move forward.
Now turning to slide seven I'd like to offer a brief update on our capital allocation strategy and financial condition year to date through the end of April we've returned approximately $215 million to shareholders through our share repurchase program. We remain on track to return the 110 million that remains outstanding.
Standing by the end of the year importantly, we are doing this from a position of financial strength, we have positioned ourselves by reducing our expense base and remain on track to reach non-GAAP profitability on an ongoing basis.
Time in the second half of the year.
Finally, I'd like to publicly welcome Jim Kelley of wife's asset management to our board and express my enthusiasm for the probably for the.
Abuse ins that we expect from Jim Susanna Gray at our other board members.
We continue to make Jim brings a unique skill set and shareholder perspective to the board as well as remarkable energy with that I'll now hand, the call over to Roger to review your Power's first quarter 2023 performance and the opportunities we see to deliver robust growth for the remainder of the year and beyond.
Rhonda thanks.
Thanks, Rick.
Moving to slide nine we are pleased to share the latest performance for you tolerate.
During the quarter total net sales would you tolerate reached $47 million up 8% year over year.
There are answers imply 35% share of net sales for you Pal rate during the first quarter of 2023 was $16 4 billion.
As a reminder, there are answering Beatrice co promote you tolerate in the United States. There are answers commercial and medical teams covering the hospital segment and the interest is responsible for outpatient based community health care needs and promotion for the product.
This quarter as we expected and previously communicated seasonal factors impacted reported you tolerate net sales.
Changes in ordering patterns, which are typical of the pharmaceutical business and often more pronounced during the first quarter had a larger than normal effect. This period.
However, we remain confident that our team will deliver strong performance for the year based on a number of positive key performance indicators to this and.
Commercial I'm, sorry customer demand once again increased quarter over quarter and as well will show later in the presentation patients fulfillment continues to reach new highs.
As Rick mentioned in his opening comments, we have formulated a winning strategy for driving your salary growth in the hospital setting.
We focus our efforts in a number of areas, including formulary wins clinical pathways and discharge planning protocols, all with the goal of making <unk> available for COPD patients.
You may benefit from the only once a day long acting Nebulize Lama.
Looking at there are answers hospital results on this on the right side of slide nine.
And doses sold exclusively in the hospital setting represented an increase of 15% from the previous quarter and 62% compared to the same period, a year ago, Darren reaching the highest quarterly total launch to date.
We have driven significant growth and your calories hospital business every quarter since the third quarter of 2020, the point at which our team was able to reengage more fully following the initial impact of Covid.
Turning to slide 10, <unk> share of the long acting nebulize market in the hospital setting once again reached a new record high of 15% in Q1 of 2023.
As a key component of the joint strategy between that there are answers Beatrice genes data continue to show that approximately 90% of patients receiving you tolerate in the hospital setting.
Our discharge with a prescription to continue their treatment in the outpatient setting, allowing for continuity of you tolerate maintenance therapy post hospitalization.
Reflecting further on the outpatient care setting <unk> market share in the overall community setting increased to 27, 7% through January of 2023, which is our latest data point.
We have also been encouraged by the growth trend seen specifically in the retail channel as Q1 total prescriptions grew quarter over quarter, while historically script volumes have decreased in the first quarter due to seasonal factors.
On slide 11, we provide a snapshot of <unk> retail new patient starts which during the first quarter increased a robust 61% year over year and 23% quarter over quarter.
New patient starts are key to future performance and the recent exceptional growth can be attributed to the realization of new commercial initiatives, which include concomitant use education expansion into additional site of care channels and additional focus on fulfillment and support.
Looking beyond this quarter's success, there still exists significant long term growth opportunities for your salary.
Starting with the current long acting Nebulize patient population, we expect our market share to continue to grow both from switches as well as an add on therapy with further deployment of concomitant use education.
There are also many patients inappropriate Lee using short acting that'd be like treatments for maintenance, who may benefit from switching to a once a day long acting therapy such as <unk>.
Lastly, there are even more patients on handheld maintenance regimens that remain uncontrolled due to a number of reasons, including dexterity challenges cognitive impairment and our low peak inspiratory flow.
In total these patient segments represent a sizable niche opportunity for <unk> and we've only started to scratch the surface.
Given the significant remaining opportunity we expect to be able to continue if not accelerate the pace of your salaries adoption moving forward one of the ways in which we plan to do so is by making available and communicating data from our phase four for Q study were results of which we expect later this year.
With that I will turn the presentation over to Rick Graham Rick.
Thanks, Rhonda and my section today I'll be discussing the <unk> two study at a high level and we'll spend most of the time discussing the underappreciated opportunity of ample oxygen and development for the treatment of MSA patients with symptomatic NIH.
Slide 13 serves as a reminder, that we conducted a prior clinical trial called Pepper one.
Serve to inform the design for the ongoing prefer to trial. The left hand figure shows the results of the intent to treat population and pepper one.
Before one included gold two three and four patients with a pay for value of less than 60 liters per minute and inclusion.
<unk> access is lease squares mean change from baseline in F&B, one at day 30.
While the results demonstrated a larger change from baseline for <unk> relative to Tia Tropaeum. This effect was not statistically significant.
Portly, a pre specified analysis of gold three and four patients shown on the right hand figure demonstrated a clear 50, milliliter and clinically relevant treatment benefit of <unk> benefit over Tia tropaeum.
In addition to providing confidence on the probability of technical success. The results appear for one inform the design of the <unk> two study.
Turning to slide 14, the phase <unk> study continues to actively enroll patients and will potentially provide even further competitive upside for your salary we.
We continue to guide toward top line results in the second half of 2023.
Transitioning to ample oxazine norepinephrine reuptake inhibitor being developed for the treatment of symptomatic NIH and patients with MSA.
And MSA patients with NIH blood pressure fall went upright owing to impaired release of norepinephrine, leading to debilitating symptoms, which can have a profound impact on quality of life.
Moving to slide 16, we are pleased to announce that the phase III study Cypress is open and actively recruiting patients.
We are projecting that enrollment will be completed in the second half of 2024.
Slide 17 illustrates how we believe <unk> works on a cellular tissue and patient level. The top left panel shows the untreated state where the norepinephrine reuptake transporter reduces endogenous norepinephrine levels in the middle panel low norepinephrine causes blood vessels to dilate, leading to a deal.
Greece and blood pressure. This condition can result in syncope and when a patient stands up as depicted in the far right panel.
In contrast, the bottom panel shows the effect of ample oxygen by inhibiting the norepinephrine reuptake transporter <unk> increases norepinephrine levels, leading to laser constriction and an increase in blood pressure.
This ultimately leads to better organ perfusion and relief of symptoms for patients.
As shown on slide 18, we believe that effective treatment with ample oxiclean requires intact peripheral nerves. This has been a long standing hypothesis and are supported by the scientific literature and.
In the previous Phase III study, we incorporated a threshold at 40% of the study population to have MSA and we pre specified disease type analysis and the protocol for this very reason.
MSA as depicted on the left slide.
It's characterized by lesions in the brain that lead to atrophy. However, the peripheral nerves that leave the brain and innovate the vasculature are generally intact.
This situation facilitates the potentiation of endogenous norepinephrine and MSA patients in contrast patients with Parkinson's disease and parent IMAX failure tend to have degenerated peripheral nerves, which hinders norepinephrine signaling to the vasculature.
Moving to slide 19 previous clinical studies have demonstrated that ample OXXO team increased norepinephrine levels preventative drop in blood pressure and preventive symptom worsening in patients with MSA.
The left panel of the figure shows that after four weeks of ample oxiclean treatment norepinephrine levels increased by 57% from baseline.
In the middle panel the figure during the randomized withdrawal period of study 170 patients who continued ample occupancy and maintain their blood pressure, whereas those who are administered placebo experienced more than a 12 millimeter of mercury drop in their blood pressure.
As depicted in the far right panel of the figure patients who remained on <unk>. During the six week randomized withdrawal period maintained symptomatic benefit as measured by the O HSA composite score in contrast patients administered placebo experienced a clinically meaningful one five point worsening of the IHS a composite score.
Let's take a look at slide 20, which outlines the unique benefits of ample oxygen treatment that we've observed.
In the Phase III study of 170, <unk> 10 was effective at treating a range of Cardinal symptoms and MSA patients and the effect was durable over the full course of the 22 week study.
Additionally, <unk> improved activities of daily living that require standing or walking for a short period of time.
<unk> is a single 10 milligram tablet administered once daily.
This is especially beneficial for MSA patients with Dysphasia, which is a frequent and disabling symptom of the disease. This feature set potential ample oxygen treatment apart from current therapies that require multiple tablets to be taken several times a day.
Patients with Eno HR risk for supine hypertension, a dangerous increase in blood pressure, while we miss supine position.
Two FDA approved therapies for NIH Black box warnings in the label highlighting this risk however in a safety database of more than 800 patients in healthy subjects no signal for supine hypertension has been observed with ample oxygen treatment.
Slide 21 outlines the design of a Registrational study 197 also known as Cyprus for the treatment of symptomatic Noh H and MSA patient.
The study is comprised of a 12 week open label period, followed by an eight week double blind placebo controlled randomized withdrawal phase.
Primary endpoint is the change in IHS a composite score.
Based on the strength of the prior phase III study results and alignment with the FDA on the primary endpoint as well as the study design. We believe the Cypress study has a high probability of technical and regulatory success.
Now that the study is ongoing our development team will begin working proactively on the new drug application importantly, we previously met with the FDA to align on the non clinical pharmacology toxicology clinical pharmacology and CMC strategies to support the NDA.
Let's move on to slide 22, we estimate that the addressable patient population for <unk> is between 35% and 45000 and we are seeking orphan drug designation in the United States.
Despite two approved therapies for orthostatic hypotension, there remains a significant unmet need and <unk> has the potential to offer a unique treatment profile, including effectiveness on multiple symptoms durability of effect once daily dosing and a favorable safety profile as.
As we enter a new era in treating MSA symptoms the potential of <unk> gene offers hope to MSA patients with symptomatic Noh H.
Now I'll turn the call over to <unk> to review the financials.
Thanks, Rick there Vance Biopharma is a much different organization with an improved capital structure compared to where we were only a year ago.
We've derisked our balance sheet by eliminating all debt during a period of unprecedented interest rate increases.
Improving liquidity, returning significant amounts of capital to our shareholders.
That's the focus of our capital capital allocation behind our two most valuable assets <unk> and <unk> 10.
Skipping over to slide two our financial performance in the quarter on slide 26, I'd draw your attention to the collaboration revenue of $10 4 million.
This figure reflects our 35% share of <unk> net sales adjusted for expense reimbursements recognized through our partnership with <unk>.
For those modeling for those modeling our earnings potential going forward. It's important to note that while we recognize our 35% share of your powering net sales within the collaboration revenue we report.
Technically entitled to 35% of <unk> shared profit.
Thus while quarter to quarter variance in shared expense recognition impacts the collaboration revenue we recognize it as your calories profitability in aggregate that matters most to our earnings.
I would note that you probably continue to be profitable, but this quarter with a similar level of shared expenses.
With a similar level of shared expenses relative to past quarters. Despite the seasonal effects that impacted our net sales.
The complexity of our collaboration revenue accounting, we have added slide 35 to the appendix of this presentation to help provide clarity on the calculation.
Shifting to expenses, we reported a combined $27 million of R&D and SG&A expense, excluding share based comp and restructuring costs compared with $31 million in Q1, 2022, a reduction of 13%.
When we provided financial guidance in February we indicated that Q1 2023 expenses should be the highest of the year.
Turning to the coding to the head count reduction we made within the research organization now is completed at the end of March.
During the quarter, we completed the restructuring we announced in February and incurred a total of $1 6 million of restructuring costs.
In line with our guidance of $1 million to $2 million, we do not expect to incur any additional severance or termination costs moving forward.
We ended the quarter with $260 million of cash and no debt and during the quarter.
<unk> five 2 million shares.
Bringing our shares outstanding to $65 million.
Turning to slide 27, I'll provide an update on our return of capital program through.
Through April 30, we have completed $215 million of our 325 million authorization at a weighted average share price of $10 38.
We expect to complete the remaining $110 million of the program by the end of 2023.
The board will continue to evaluate their events its financial condition and progress towards the achievement of our financial targets and in consideration of these factors. We may update the plan in the future similar to when we increased our capital return program from 250 million to $325 million earlier this year.
Finally on slide 28, I'll provide updated commentary regarding our 2023 financial guidance based on our performance to date, we are reiterating our guidance for operating expense of between 35% and $45 million for R&D and between 45 and $55 million for SG&A exclusive of share based comp and onetime.
Items.
Worth mentioning that R&D expense at this point largely tied to our ability and intention to enroll patients in the Cypress study, which we expect to build over time, while driving to our results for <unk> two during the second half of the year.
Based on our internal projections, therefore, R&D R&D expense should be lower in Q2 compared to Q1 before building throughout the second half of the year.
SG&A expense should also be lower in Q2, and then largely stable through the remaining quarters of the year.
As a result of a commendable start to Q1, coupled with our expectation to drive holiday sales growth, while managing expenses effectively.
This is exclusive of any potential any potential one time milestone payment.
Simultaneously, we are tracking well against our expectations for a material reduction in stock based comp for the year.
Stock based comp in Q1 is down.
34% year over year, excluding restructuring expenses were 52%, including restructuring expenses.
That I will turn the call back to Rick for closing remarks, Rick.
Thanks disease.
Turning to slide 29, and summarize our commentary we're delivering on our strategic focus for 2023 first we're making <unk> available to many individuals with COPD more uncontrolled on their current therapy.
And we are simultaneously laying the foundation for added growth with potentially market moving data from Pepper. Two later this year.
Second we are working with the MSA community in treating clinicians to ensure we meet our cypress milestones for <unk> and advance this important potential therapy as expeditiously as possible.
Third we've got a robust plan in place to return capital to shareholders as appropriate for the long term health of the company and shareholder value creation.
You everyone for your time and your participation.
Turn the call back over to the operator for questions.
Certainly and as a reminder, ladies and gentlemen, if you have a question at this time. Please press star one on your telephone and one moment for our first question.
And our first question comes from the line of David Risinger from SBB Securities. Your question. Please.
Yes.
Very much and thank you for all the updates.
I guess I have.
Two key questions first could you provide some more color on the 8% net sales growth year over year.
Including.
I guess anything you can say about.
Anything further you can say about the spending growth year over year, which limited caravansary net sales just so that we understand.
Little bit more about that 8% growth and if you could also just comment on whether you expect better growth than that in the future or if costs could continue to grow meaningfully and hold back the air Advanced book net sales relative to the end.
<unk> sales growth.
And then with respect to <unk>.
And phase III enrollment could you discuss efforts to drive the enrollment given the unmet need.
Obviously this is a rare disease, but just wanted to understand if there are opportunities to potentially accelerate enrollment given.
The significant unmet need.
Much.
Thanks, David for your question first on the financial impacts and our perspective on <unk>.
<unk> expenses in the.
The 8% net sales growth I havent sees comment than that.
Rhonda.
Let's take a few comments on.
Unexpected growth for the future as these.
Yeah. Thanks, David for the question I think where youre getting at is why is why is that when net sales is up 8% why was the collaborations with revenues slightly down year over year. So just as a reminder, the difference between that 35% of the sales under collaboration revenue as the netting of the shared.
Between the two companies so for.
For example in the case of this quarter. The difference was approximately $6 million in other words, the 35% of sales was $16 four in the collaboration revenue was $10 four so the delta there was $6 million.
That $6 million difference that's been pretty consistent over the last several quarters. It was $5 million in Q4 6 million in Q3 of last year $6 million in Q2 of last year.
This means that the cost base has actually been pretty consistent the trailing four quarters.
The only difference I think in Q1 of last year, specifically the cost base with a little bit light relative to the rest of 2022 and that was more of a timing issue.
<unk> costs could bounce around a little bit, but that's obviously skewed our year over year collaboration revenue.
But again the takeaway here is our cost base has been stable for pretty much the last four quarters. So it hasnt increased.
Really at all except for again in Q1 of last year, which was which is more timing related. So I don't expect the cost base to be much different from the last three or four quarters.
Lastly, David I think we've talked about it before a couple of times.
Given the complexity of the collaboration revenue we have added a new slide to the appendix of the presentation. I noted this on that on the prepared remarks, but at slide 35, if you want to take a look that may help you and other investors digest the collaboration revenue a little bit.
Do you want to comment on the net net sales and transitioned to Rhonda.
Okay.
Can you repeat the question on that one rich.
David David.
Question on the 8% Thats up 8% sales growth.
Alright year over year.
Color you can comment on.
Yes, yes.
So Kevin let me comment on kind of the seasonality aspect of it and I'll pass it over to Rhonda.
For kind of demand drivers, but as I think Rhonda and Rick Winningham I've mentioned several times on previous calls.
Q1 tends to be the softest quarter of the year that was something that I think was said during the.
Previous call in February and reiterated.
Latest adds over the Investor Conference a couple weeks ago for a background in Q1 of 2022, we were down slightly in Q1 of 2021, we were down 5%. So this is something we've seen consistently over the last couple of years.
While this year's magnitude was a bit higher the decrease was about 16% it was well within our expectations due to the Q1 buying slash ordering patterns at the.
A wholesaler in EMEA level. So this is a dynamic you've seen <unk>.
Across Biopharma Biopharma companies that tend to report softer Q1 sales. So ultimately this is more of a timing phenomenon.
And we're more focused on the strong demand trends.
Now, we're seeing that will eventually lead to higher net sales on a kind of transition to rhonda to talk through those demand trends a little bit.
Yeah, So certainly thinking about that timing phenomenon and I think <unk> done a nice job of really explaining that and us having the expectation of stability continued stability in the cost basis I think it is important to really focus on the.
Performance metrics, all of which we highlighted in the script.
It's to go but I think you see it and its totality from the increase in new hospital wins the number of accounts.
Both in the outpatient setting as well as in the hospital setting.
Quarter over quarter and year over year growth in the hospital business the increase in new sites of care channels, specifically, where the team has been focused and continuing to see the retail script increases both year over year and quarter over quarter as well as that market share in both the outpatient and hospital study.
All of those demand trends really giving us confidence that we will continue to reflect on increases for the remainder of the year.
And just as I transition to direct all at <unk> I think in.
In particular.
The growth of new patient starts in the first quarter on the retail side was extremely encouraging and I think were onto highlighted really.
Three key reasons for that.
That increase in new patient starts one of them is concomitant messaging, which we rolled out last year with Beatrice and then obviously the.
But the high percentage of patients, leaving the hospital now with a prescription for you tolerate so Rick you want to touch on Davids comments on <unk>.
Right.
Yes, I will and David Thanks for that question I mean, I think as you're alluding to enrolling trials in a rare disease condition is a little trickier and requires a more strategic approach and thoughtful approach to make sure that we can expedite enrollment. So a few things I'll comment on one is it really helps to have the strong headwinds that we.
Do where we're aligned with FDA on the primary endpoint of the Cypress study the study design and the ability for cypress to form the basis of a full approval is positive. We also have compelling data from our prior phase III study.
In addition to that we've got good relationships with sites remember, we ran a phase III program previously so we're going to lean into those relationships.
We also have developed over the years, good relationships with advocacy organizations as well and we've been very thoughtful about our operational infrastructure, providing a mix of sites within the United States and sites outside the United States and we're bringing those on.
Day, we're adding new sites and really for a rare disease. It's the accumulation of sites over time that drives enrollment.
And with small numbers of patients at each site, we have to be operationally focused on adding these high quality clinical trial sites over the course of this year.
Got it thanks very much.
Thank you one moment for our next question.
And our next question comes from the line of tobacco from Evercore. Your question. Please.
Hi, Thank you for taking our question. This is Jim Lynch on for Lisa.
Our question is on <unk>, So could you remind us what's the powering assumptions for the Cypress study.
What is the threshold for clinical meaningfulness for Osha Com Potlucks Glenn Thank you.
Rick.
Yeah, Hi, Jami thanks for the question.
We don't comment on powering of our trials, but I will say a couple of things. One is you can generally assume that the powering for this study would be consistent with what you would expect for a registrational trial and then two if you look at slide 20.
The results from the 170 study and you look at the IHS data, which is in the top swim lane there.
The symptom composite score we had a nominally statistically significant result, there with just 38 patient. So we're enrolling 100 patients in the open label period of Cypress with the intention.
Getting 60, Completer with the randomized withdrawal so that should give you a sense of the powering and the sample size. Okay. And then your other question was around clinical meaningfulness. Another really good question. This is something that we've talked a lot about with our kols and its generally considered on each of the symptoms and the FHFA.
<unk>.
Somewhere between <unk> eight and one is considered to be a clinically meaningful change and you can see across each of our symptoms, maybe with one minor exception, where right there within that range for clinically meaningful results.
Got it thank you.
Thank you and as a reminder, ladies and gentlemen, if you do have a question at this time. Please press star one on your telephone one moment for our next question.
And our next question comes from the line to be a wrong from TD Cowen Your question. Please.
Hi, guys. This is David on for Marc Frahm, Congrats on the quarter.
To understand the seasonal impacts for you Paul are you a little bit better.
Timing is the biggest driver of this impact.
Were there any changes in.
Channels that contributed.
May have contributed to a potential decrease in that pricing and then just on that have the proportion of patients on therapy with Medicare versus commercial plans changed.
Your line.
Rhonda Rick I can yes, I can take that and I'll start with that last question. There has not been a change in patient mix. So I appreciate you're flagging that that is something that we obviously want to pay close attention to our commercial basis, there's about eight 8%.
Commercial patients with an <unk> business.
And relative to further specifics any timing is of the essence here relative to the purchasing and so im not going to get into specific pricing and channel dynamics, given our partner managers Batman, but it really boils down to the simplicity of tiny.
Okay. That's helpful. Thank you.
Thank you.
This does conclude the question and answer session of today's program I'd like to hand, the program back to Rick Winningham for any further remarks.
Thank you operator, and thanks, everyone for participating we look forward to updating you on our progress.
As we move through 2023, we're extremely excited about what we've been able to accomplish with regard to your power demand.
And launching the Cypress study with <unk>.
Thank you and have a good day.
Thank you, ladies and gentlemen for your participation in today's conference. This does conclude the program you may now disconnect good day.
Okay.
[music].
Yeah.