2023 Fennec Pharmaceuticals Inc Earnings Call
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Good morning, ladies and gentlemen, and welcome to the Phoenix Pharmaceuticals fourth quarter and full year 2023 earnings and corporate update conference call. At this time all participants are in a listen only mode. Later, we will conduct a question and answer session and instructions on how to participate will be given at that time as a reminder, today's conference is.
Being recorded now I would like to turn the conference over to Phoenix, Chief Financial Officer Robert E.
You may begin.
Thank you operator, and good morning, everyone. We appreciate you joining us today for Fedex Pharmaceuticals fourth quarter and full year 2023 earnings conference call.
During which we will review our financial results as well as provide a general business update.
Joining me from furnished this morning are Rusty Rykoff, our chief Executive Officer, and Adrian <unk>, our Chief operating officer.
Before we begin I would like to remind you that during this call. The company will be making forward looking statements that are subject to risks and uncertainties that may cause actual results to differ from the results discussed in the forward looking statements.
References to these risks and uncertainties are made in today's press release and disclosed in detail in the company's periodic and current event filings with the U S Securities and Exchange Commission.
In addition, any forward looking statements made on this call represent our views only as of today and should not be relied upon as representing our views as of any subsequent date.
We specifically disclaim any obligation to update or revise any forward looking statements.
This conference call is being recorded for audio rebroadcast on furniture website, www Dot Fedex format Dot com, where it will be available for the next 30 days.
And now I will turn the call over to Rusty rykoff.
Rusty.
You Robert and good morning, everyone on today's call will detail, our fourth quarter and full year 2023 financial results.
All of which were outlined in our earnings press release issued this morning prior to this call.
Rostislav Raykov: We will also discuss ongoing commercial launch efforts.
And the progress that we're making with petsmart and the U S and provide details when you're exclusive licensing agreement, we announced on Monday with <unk> to commercialize <unk> in Europe, Australia and Asia.
Rostislav Raykov: As you May recall, we announced preliminary unaudited fourth quarter and full year 2023 net revenues at the end of February and we're pleased to report that spec margins with fourth quarter revenues of approximately $9 million.
This brings our full year 2023 net revenues of approximately 20.
It was an exciting year for Phoenix, given the strong performance with petsmart in the full fiscal year following U S commercial launch.
Pleased with our execution against strategic plans and our momentum in 'twenty, three which sets us.
The stage for further success in 'twenty four and beyond.
He needs to be very encouraged with the progress we've made.
Rostislav Raykov: And we're even prouder of the work that is underway to sustain this momentum throughout 'twenty four and beyond.
Earlier this year, we announced that the FDA issued a public communication days aware that some providers, maybe preparing all of a sudden title sulphate products for patient use in place of bedrock.
Including the looking at yes products approved for auto uses to match the strength of Panama.
The FDA reminded health care providers that are state of the patent box prescribing information.
Mark is not substitutable with honestly, sometimes smoking products.
Rostislav Raykov: The FDA stated that Fitch subsea.
Substitution supposed to potential health risks.
<unk>.
But backing chloride exposure, which is high dose can lead to increased risk of acute cardiac events and other serious adverse reactions.
Laura is not present bedrock.
Overexposure to break as it can.
Rostislav Raykov: <unk> health risks, including headache, hypothermia, restlessness, wariness, Reno injury dermatitis, alopecia anorexia and indigestion.
And Mark also contains boric acid instead.
At a lower concentration than our SCS products.
Overexposure to start give nitrates, which can lead to conduct risks, including medical glove anemia.
The nitrate these co package restocking pilots operated a separate borrowing some products is not present bedrock.
The public communication was issued.
North Payors and stakeholder engagement staff with the center for drug evaluation and research communications.
We're pleased with the Ikea reminder, to providers of this issue.
Which supports our educational efforts.
She's bad market as a necessary complement agent when prescribing cisplatin based therapy for appropriate patients with localized non metastatic solid tumors.
To that end. This month, we sponsored an educational program with met safety Board a subsidiary of the Institute for Safe mitigation practices or ICP.
Which experts faculty rearview and doctor not betterment reduced therapeutic considerations for reducing the risk of Destocking you saw excuse in pediatric patients.
Regarding our commercial efforts our Salesforce continues to target approximately 200, pediatric hospital centers, including CEO G MTI MCC and institutions across the U S that drive 80% of pediatric use.
<unk>.
We're also continuing to build upon our commercial momentum through expanding the prescriber base to the community increasing.
The utilization of the recent endorsement from the S. Four petsmart, the adolescent and young adult <unk> patient population.
To be clear, our EBITDA indications pediatric and our commercial teams to only promoting our EBITDA indications.
And Mark also continues to have broad and favorable and favorable payer coverage as evidenced by their approved U S.
Prescription claims.
With commercial insurance plans and Medicare part D plans.
As a reminder, we estimate our more current benchmark patients approximately 50% of commercially insured, we don't not a 50% insured through government sponsored programs.
With regards to our evaluation of the best commercial Bank in Europe. We were pleased to announce on Monday that Fedex has entered into an exclusive licensing agreement with <unk>, a leading European specialty pharmaceutical company.
Under which no northern with commercial lifestyle marketing in Europe, Australia, and New Zealand.
But mark sees the first and only approved therapy in the EU and U K for the prevention of Oracle <unk> induced by smoking chemotherapy patients from one month to 18 years of age with local lifestyle metastatic solid tumors.
Under the terms of the licensing agreement.
Panic received approximately 43 million U S dollars in upfront consideration and the potential for up to approximately 230 million in additional commercial and regulatory milestone payments and tiered royalties on net sales by democracy in the licensed territories up to the mid <unk>.
Speaker Change: <unk> will be responsible for all commercialization activities in the licensed territories and will hold all marketing authorizations.
Sure.
This partnership represents an important step in achieving our mission of expanding <unk> to patients across the globe, who are at risk of suffering spiking and you saw the CST from a deal perspective. The term the terms provide us with many important benefits, including an upfront payment further solidifying our balance sheet attractive economics.
Arms, providing meaningful participation in the ex U S successive fed moxie.
And an experienced partner to successfully launched <unk> in the licensed territory.
In closing I want to reiterate that the focus of our commercial strategy remains on executing the following establishing bad market necessary complement agent when prescribing is platinum based therapy.
Speaker Change: For appropriate patients with localized non metastatic solid tumors minimizing the barriers to access and ensuring rapid responses two product questions and inquiries.
And its balance sheet.
Partner of choice in the oncology in patients and community setting.
With that I will now turn the call over to Adrian who will provide an update on our commercial strategy and operations.
Adrian.
Thanks Rusty.
As a reminder, we estimate that in the U S. There are approximately 3500 on label pediatric oncology patients.
The majority of these are treated in the specialist pediatric centers and receive an average of 12 vials per patient.
Speaker Change: Conversely, there are more than 25015 to 39 year old cancer patients many of which received cisplatin.
And as Rusty said the N CCN is recommended Padma for this defined patient population with a rating.
Taking testicular cancer as an example, there are approximately 3800 patients and the majority of these are likely to receive high dividend.
Putting them at very high risk of hearing loss.
Speaker Change: The average testicular cancer patients.
Weight based dosing requires many mobile as the petsmart the younger pediatric patients.
Testicular cancer has very high cure rates.
<unk> segment to beyond but.
But in such cases hearing loss is lifelong and devastating.
The unmet medical need for preventative treatment is clear there is a very strong health economic argument that justified spending on preventative treatment.
These patients are exclusively treated in the community hospitals and infusion centers.
Anyway of patients with cervical and.
Speaker Change: In head and neck cancers are also likely to be treated with his spotted.
The gain if prescribed will require a significant number of vials of petsmart.
Since November our Salesforce has primarily focused our activities on the community treated population.
We have been very encouraged by the community's response.
Petrarch most of them, whilst being acutely aware of the hearing loss caused by started we're not aware of the availability of a preventative treatment.
Incorporating padma up into the treatment schedule requires some adjustment to current practice for example, infusion clinics may have to stay open for an extra hour or so in order to accommodate the need to administer the petsmart.
Speaker Change: Six <unk>.
Six hours after the end of the dispatch an infusion.
All of this takes some time to put in place.
Sequence, we focused our efforts during the last few months on disease awareness and treatment to witness and then subsequently working with the centers on the logistics of administration.
We essentially just a couple of months into what is in effect, a new launch with petsmart, but we're encouraged by the reception. We received patients are already being treated and reimbursed by payers.
As we look forward to the conference season, and in particular to Exco, we intend to appropriately educate all oncologists and create awareness of pet Buck.
We've had to deal with one barrier to uptake and I'm pleased to say that from April. The first this has been resolved prior.
Prior to April of 2024 hour J code did not differentiate between petsmart and other formulations of STS.
As a consequence, there has been some confusion and impact to the adoption of pet Marc we informed CMS and in January 2024.
CMS issued a new J code for the whole product and men and amended our J code to specified Padma.
Importantly, CMS has also stated that the two formulations are not interchangeable.
To repeat this important change will become effective on April one 2024 and.
And we do expect significant acceleration in uptake as a result.
As Rusty mentioned on January eight the FDA issued an email reminder, that Padma cannot be substituted with other formulations of STS due to significant safety concerns.
As this email was not sent individual doctors individual pharmacists are hospitals, but rather to organizations for example, exco and the American Hospital Pharmacists Association.
Our sales force has been working to create further awareness of this notice to pediatric hospitals.
As a result, a significant number of hospitals have scheduled new formulary committee meetings to discuss the FDA notice.
And some have already ceased compounding again this doesn't happen overnight with many meetings taking place on a monthly.
Monthly frequency.
I'm also pleased to report that the American Hospital pharmacies Pharmacists Association drug information resource H S.
H S has recently been amended to clearly differentiate between the various formulations of STS and clearly states they are not substitutable.
So in closing I'm very pleased with the progress we are making and I'd like to thank the commercial and medical affairs teams for the tremendous effort they've made over the last few months and I look forward to see next saturation in revenue.
With that I'll turn the call over to Robert to go over the financials for the quarter and full year results Robert.
Robert: Thank you Adrian.
Our press release contains details of our financial results for the fourth quarter and full year of 2023, which can be viewed on the investors and media section of our website.
Rather than read through all of those details my comments today will focus on some key financial results.
The company recorded net product sales of Petsmart for our first full fiscal year after launch of approximately $21 million in fiscal 'twenty three with over $9 million in the recent Q4 2023.
This compares to $1 5 million in fiscal year and fourth quarter 2022.
Robert: Increase in net sales reflects strong growth in new patient starts and accounts.
G&A for the 2023 fiscal year increased by $2 3 million compared to the 2022 fiscal year.
This increase is largely attributable to payroll and benefit related expenses, which rose approximately $1 million and higher noncash stock based compensation.
Selling and marketing expenses, including <unk> of our sales and marketing employees dollar spent on marketing campaigns, such as sponsorships tradeshows and presentations and any activities to support marketing and sales activities.
The company recorded $12 1 million in selling and marketing expenses in fiscal 2023.
The fourth quarter of 2022.
Robert: R&D expenses are negligible as we've mentioned before as the company reduced research and development costs when it received FDA.
In EMEA approvals pet Mark.
The majority of traditional research and development expenses associated with pad Mark are now recorded as G&A expenses were capitalized into inventory and eventually recorded to cost of product sales.
Our net cash used in operating activities was $16 million in 2023, which is consistent with our approximately $25 million in annual cash operating expenses prior to any contributions from net revenue.
Further Q4 2023.
The first six months of 2000 2024 have additional expenses associated with the internal preparation for the EU launch.
With the announced partnership with <unk>, we anticipate these EU expenses to tail off significantly in the second half of 2024.
And finally, our cash position, we ended the year with approximately $13 million in cash cash equivalents and investment securities.
Which included the December 2023, third closing a $5 million senior secured convertible notes under the existing agreement with Patrick.
The original investment agreement provided access to up to $20 million of additional financing through December 31 2023.
As part of this closing and I can petrocorp have amended the agreement to provide access to up to $15 million of additional financing through December 31 2024.
In addition, and importantly.
As announced earlier this week, we received approximately $43 million from the licensing of Europe, Australia, and New Zealand to <unk>.
Inclusive of our licensing transaction.
Pro forma December 31, 2023 cash balance is in excess of $56 million U S dollars.
Robert: We anticipate that our cash cash equivalents and investment securities as of December 31, 2023, when coupled with Petsmart revenue assumptions and the recently announced license agreement for Europe will be sufficient to fund our planned operations for at least the next 12 months.
Speaker Change: And operator with that we're ready for questions.
Certainly as a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one again, please standby, while we compile the Q&A roster.
Speaker Change: One moment for your first question.
Speaker Change: And our first question will be coming from <unk> <unk> of capital One Securities. Your line is open.
Good morning, and congrats.
On all the progress and thanks for taking my question. So I was just wondering.
We think about the quarter last quarter.
In terms of the growth was it more from your account repeat prescribers and when do you think the contributions from the a Y a group of filtering.
Yes.
Hello.
Speaker Change: Yes, I would say.
<unk>.
Overall, what's really the hospital the existing accounts a few newer ones.
Speaker Change: I would also say that we did have.
Speaker Change: Several patients started treatment.
In the <unk> population and it's aging or two units.
The vial usage in those specialty significantly higher.
But as you can imagine those were also.
In the context of a.
Speaker Change: CMS J code issue debt.
He has been results starting April one.
Okay, Okay terrific.
Congrats on the licensing deal I was just wondering.
Maybe two related to that.
Speaker Change: So when will that transferred the help of technology.
The AC dossier and any relevant materials.
Has that already occurred with <unk>.
And do you expect to maintain the timeline for launch in Europe.
In the second quarter and finally relate.
Related to that who is going to go through the regulatory approval I think I'm, sorry, but I'm not sure.
And so it's all in Australia, and New Zealand.
Yes, this is over to Adrian.
Yes so.
Second question.
Easy to onset the no team will be responsible for EB.
Adrian: Everything regulatory in the licensed territories. So we've already begun the process of transferring the European and UK licenses to no gene they will be responsible for applying in Switzerland, Australia New Zealand.
We already have begun the process of introducing no gene to health technology vendors.
They know gene will take over our has taken over responsibility for the management of those vendors.
It's not for me to comment on when no gene will choose to launch.
I think that we'll probably let the dust settle.
And evaluate where they are so I would be.
Painting, a European launch probably in the second half of the year.
Just for logistical reasons.
Alright, alright. Thank you so Mike Thanks for taking my question.
And one moment for our next question.
Adrian: And our next question will be coming from Chase Knickerbocker of Craig Hallum. Your line is open.
Good morning, guys I wanted to share my congrats as well on the EU licensing deal.
Chase Richard Knickerbocker: Really nice deal you negotiated there yes.
I'm going to start there maybe.
Chase Richard Knickerbocker: Maybe.
That color is helpful around northern plants kind of maybe second half of the year from a launch perspective.
Maybe kind of building off that they appear to be set to launch a florida theme in the near future as well and seems to be like they see some sort of strategic rationale and the synergies. There can you kind of speak to the excitement level that <unk> has kind of launching those two assets together.
And then second on that.
Chase Richard Knickerbocker: That would be in my opinion, a pretty competitive process to get the strong terms that you received can you give us any sort of insight in how potential partners. We are thinking about strategic value of pet market. As you kind of went through this process not only in EU, but globally and in the U S as well.
And maybe I can start with the second half of the question.
Chase Richard Knickerbocker: Okay.
Adrian: Turning over to Adrian.
Adrian: In terms of the value proposition that bed, Mark seeing spread Mark offers as you know.
It's very difficult to.
Get a product approved.
It has been 14 years seem to making.
And it's very rare for anyone to develop a product.
In the pediatric oncology setting.
We also did an outstanding job.
We're not just getting this.
Adrian: This product approved but also.
Setting it up for success in Europe, and it's largely two ags efforts.
That were underway since he joined us in August.
So I think that set the stage for for an asset that is ready to look at ultra rare for an asset that is ready to launch.
The large niche.
Adrian: All of the risk is basically off the table.
And.
This is something very very attractive as you could imagine many many parties, especially when there is a specific need in market for a very very unique product.
So so maybe Adrian you could you could discuss the first part of the question.
In terms of the.
The overall.
Direction to northern will take this forward.
Yeah. So.
As I think I mentioned on the previous call that the work that we've been doing over the last six months or so with European health technology vendors has brought us to the conclusion that we can get a pretty significant price in Europe.
And.
Youre correct in saying that it was a competitive process.
A number of potential suitors, all came to that conclusion.
It became clear to us that the the suite as well.
Very excited about the potential of the product we're prepared to commit significantly more resources than we would've been able to do given our other priorities in the U S.
Adrian: And it's got to it became very.
Competitive we had.
A number of very high quality European speciality pharma companies that were prepared to invest.
Significant resources.
And Padma.
I'm, absolutely delighted with the partnership with <unk>.
They're they're completely bought into the concept.
Clearly aligned on our pricing assumptions.
They see this as you said chase as highly synergistic to their growing portfolio.
Pediatric oncology.
They're prepared to put very significant resources, both in terms of people and cash to support the launch.
If that answers your question.
Adrian: Yeah.
Yes.
Helpful. Maybe.
Maybe digging in a little bit more on the J code issue. This is a kind of nuanced question, but.
So there's going to be a separate J code for the other STS product is that and is there any chance.
Excuse me sorry is there any chance that there is any sort of confusion around the AOSP reporting for your J code from.
The end point of is there going to be some sort of asps that were reported for the other product that gets included in your J code or is that going to get taken out.
Yes.
Adrian: Certainly has been the confusion that's going to be taken out so it very clearly says.
STS head Mount.
And then he says STS hope.
And there's also a footnote that saying the products are not interchangeable.
Adrian: So anything you guys are confident that the AFP is going to be accurate for your J code to reflect the pricing of your product starting April one.
Yes.
Got it and if we kind of think about how that kind of parlays into maybe some of the confusion that was seen in a way population and those physicians I mean, how should we think about potentially some volume kind of coming in in that April 1st timeframe.
Once that confusion is kind of correct. It do you have a good handle on what kind of volumes out there that wasn't using your product.
Yes.
Yes.
Yes, so what I would say Jason as you know this is not a chronic treatment. So you don't you.
You don't sort of have patients just waiting for it.
Adrian: It's really when the patient starts.
And then when the patient finishes the Spartan treatment.
So overall we'd.
Many of these community oncology.
Centers, where the setting for Ford the Spartan infusion takes place and as Adrian mentioned from these comments this is ware.
The volume of <unk> administered for these patients and also where fed mark would be administered in this population so.
So I think we have to wait and see how this plays out but again based on the numbers, we're highly encouraged that.
Adrian: That this would be.
And this will be well received.
Great and then maybe one more around the business and then one on financials.
Around the FDA communication first of all have you seen kind of any influx in kind of volume from.
That or subsequent to that communication and then second can you just update us on some of the metrics that you gave last quarter as far as kind of being in 20% of those 200 institutions and the Max kind of being 25% penetration into an institution sorry, if I missed that but just an update there.
Adrian: Yes.
Adrian: So maybe Robert you can address that and then and then maybe you can address the earlier part.
Yeah Chase I mean, our our penetration continues to grow I think that's reflective certainly in our in our net revenues, we don't want to get set ourselves up on the guardrails and in particular also as we are expanding the market with the <unk>.
A y a population in the community hospitals, so those basis of 25% on the 20th have certainly grown.
But we're going to shy away from getting into the specific growth numbers at this time.
And Adrian maybe.
Could shine a word or two I know you had in your prepared remarks in terms of how the P&C committees in hospitals take these EBITDA communicate safety communication and how quickly they affect change.
Yeah as I said, Unfortunately, this wasn't sentence to individual doctors or hospitals, a pharmacist. It was sent to organizations I think it was about 12 different organizations and.
Initially went up Salesforce went out have you heard about the recent communication from the FDA no I haven't seen it.
Adrian: So the sales force of that to basically go out with the laptops laptops and show and show the email and then things don't happen overnight.
This has to go through a formulary committee process has to be discussed people to get buy in.
So these these formulary committee meetings in most cases are just been scheduled or just about to take place.
Does that.
Haven't felt that have stopped compounding immediately but this takes time. So we have seen some increased use but it's not like switching a light on it.
It's slow it's slow.
Got it and then just lastly, Robert I apologize for taking up so much time, guys, but I just wanted to dig in a little bit more on the SG&A can you give us a little bit more sense of what was in the quarter or at least benchmark is a little bit that we should consider kind of one time expenses from any sort of consulting spend are deal related expenses in Europe.
We think of SG&A being flat once we back those out from Q3.
And then as we look into 2024, how should we phase out those expenses is it are we flat from an opex perspective into Q1, and then it starts to phase out or.
How should we think about that.
Yes, I think you have a good benchmark there certainly in Q4.
We did have a good amount of expenses related to our EU preparation and launch, which we believe is well worth it.
That will continue so those SG&A at levels will continue into Q1.
Adrian: And start tailing off certainly into Q2.
And our understanding is it will basically go to very little if any.
For the second half of the year kind of similar to my remarks.
Speaker Change: Is that helpful. Jason Great. Yeah. Thanks for all the questions guys, sorry, I'll hop back in the queue.
Thanks, guys.
One moment for our next question.
Our next question will be a follow up from <unk> Patel of H C. Wainwright.
Your line is open to patients.
Speaker Change: Good morning. This is <unk> Patel on for Rod cell for Roger several questions.
First is I'm wondering what are the stocking patterns like OPEC Mark at U S hospitals, and how does <unk> expect this to evolve overtime.
Yes.
I'll take that so there is roughly 200 hospitals.
Largely affiliated with <unk> and CCN.
And.
Speaker Change: Those hospitals, obviously are the ones that we target they treat the pediatric patients largely in patient.
Those hospitals.
As we discussed in earlier calls they go through a very rigorous PMT process to approve a drug on formulary before start using it.
Overall, I would say a limited success in some of those accounts.
And now with the FDA communication on the safety risks, we are encouraged by that and.
Our sales force as well as our medical team.
Speaker Change: Is out there educating and as Adrian mentioned we are.
We are in front of many of these hospitals and we're hopeful that we.
We've seen a little bit of change, but we'd like to obviously see additional.
In the in the coming months. So so that's really the.
That should be the market in the in hospital setting as you could imagine.
Speaker Change: It's not easy to sell in the in hospital in general.
So we it's actually very very proud of what the team has been able to accomplish it.
Thank you and I think there's more good news coming there, but but again, it's not it's not a light switch that comes on I think it is gradually hopefully there is a light switch.
The next three to six months, but let's see it and then and then we can we can discuss it with you guys.
Thanks, I appreciate the color and my second question.
Speaker Change: What kind of infrastructure does <unk> plan to use to launch <unk> in Europe, and what is the estimated size of the opportunity there.
Speaker Change: Yes, Adrian over to you.
Adrian: Yeah, they're they have a presence in all of the major European markets in Australia, and New Zealand.
They I think back of the envelope looking at allocating around 50 ftes to the product.
What I consider to be the appropriate level of commercial spend.
To make a success of the products.
They're hiring a mixture of.
New new specialist specialist.
Folks to fill gaps and also reallocating some people but to be honest, that's very high level question phonology Randy.
And.
Speaker Change: What I would also add because we got two we've interacted.
Speaker Change: With several teams.
Sure.
And in Europe, overall, and I would say that.
Speaker Change: Nor genius really committed to pediatric oncology.
Not only did they have our product, but they have another product as well that they're planning to launch.
Roughly at the same time.
Speaker Change: It's it's really exciting it's really exciting because theyre passionate COVID-19 is right up there with ours I cannot be more pleased to see.
A very strong and capable player.
Compared Mark C and really get access for it in the in these territories. So so imagine that we're going through 200 hospitals in the <unk> setting so imagine that with each country and each.
Speaker Change: The health care system Health economics argument et cetera. So it's it's a major major task.
And they have done this many times that theyre up for it and importantly, there they're really committed to this space. So this could not be more perfect partner for corporate Mark seat and in terms of.
The revenue expectations for the product I would say that.
Speaker Change: We can model as Adrienne said earlier.
<unk> is not that dissimilar to what they had model for it. So so I think in terms of milestones and royalties stay tuned to that but most of that most of the timing in this biotech deals you have a bio box, if you will and people sort of discount those things carefully.
Let's let's let's give it a little bit of time, but I think most of these things are very realistic.
Thanks, That's very helpful. And then final question does Fedex plan to use any of the upfront cash from the <unk> transaction to expand its pipeline. If so what kinds of opportunities do you plan to pursue whether it's like development stage assets or crude products and I think you've kind of alluded to this.
I'll ask you. The question is at Phoenix long term is that its long term intent to remain focused on oncology. Thank you.
Well, that's a very good strategic question I think we just closed this deal so we.
<unk> and management.
Speaker Change: He has to evaluate everything from a 360 degrees.
Speaker Change: We've always been a very very good stewards of capital historically called that to continue going forward.
As you can imagine the market is full with assets that need funding.
And it's something that we.
We as management and board will have to decide at some stage. If that's what we want to pursue and we will.
Obviously update the market on that.
But for now we're keeping our head down and we are executing on the opportunity ahead of us.
And you had mentioned from the number perspective, we have greater than 10 times the market opportunity in the community setting and we're really focused on that and whats again, what's really really exciting is that despite the J code issue, we've been able to put patients on drug and those patients have been having have been reimbursed.
Right, which is really important. So then from here, let's see what we can do in the coming months in terms of.
Speaker Change: Overall usage for the product.
In addition to what's coming up down the number five.
Pediatric hospitals, which again I discussed earlier.
From a P&L perspective.
Great. Thank you so much for taking my questions.
And I'm showing no further questions at this time I would now like to turn the conference back to Rusty for closing remarks.
Thank you. Thank you for the discussion and good questions.
And joining us today, and we look forward to updating you on our continued launch progress and corporate milestones on future quarterly calls.
Thank you and have a great day.
And this concludes today's conference call. Thank you for participating you may now disconnect.
Okay.
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