Q1 2024 Supernus Pharmaceuticals Inc Earnings Call
Okay.
Speaker Change: Good afternoon, and welcome to the <unk> Pharmaceuticals first quarter 2024 financial results Conference call.
Speaker Change: At this time all participants are in a listen only mode. Later, we will conduct a question and answer session and instructions will follow at that time.
Speaker Change: As a reminder, this conference call is being recorded.
Speaker Change: I'd now like to turn the conference over to Peter Basel of ICR Westwick Investor Relations Representatives Super Nuts Pharmaceuticals, you may now begin.
Peter Basel: Thank you Mark good afternoon, everyone and thank you for joining us today for security Pharmaceuticals first quarter 2024 financial results conference call today. After the close of the market. The company issued a press release announcing these results on the call with me today are <unk>, Chief Executive Officer, Jack guitar and cheap.
Peter Basel: Shall officer today's call is being made available via the Investor Relations section of the company's website at IR <unk> com.
Peter Basel: And of course of this call management may make certain forward looking statements regarding regarding future events and the company's future performance.
Peter Basel: <unk> looking statements reflects in part as a current perspective on existing trends and information and he's exports looking statements are not guarantees of future performance and involve risks and uncertainties, including those noted in the risk factors section.
Peter Basel: These latest SEC filings.
Peter Basel: Actual results may differ materially from those projected in these forward looking statements or the benefit of those who may be listening to the replay. This call is being held and recorded on May eight 2024.
Peter Basel: Since then the company may have made additional announcements related to the topics discussed.
Peter Basel: Please reference the company's most recent press releases and current filings with the SEC. So.
Peter Basel: So purchase declines any obligation to update these forward looking statements, except as required by applicable securities laws I will now turn the call over to Jack.
Jack: Thank you Peter good afternoon, everyone and thanks for taking the time to join us on today's call.
Jack: Following a productive year in 2020 three in which we successfully minimized the impact of the Trokendi XR loss of exclusivity and positioning the company to mitigate the potential impact from the first genetic stellar Exxon.
Jack: We have continued to execute on our long term growth strategy and have delivered another quarter with double digit growth in total revenues, excluding trokendi XR on ox stellar absorbed.
Jack: Driving this growth is calibrated strong performance with 31% growth in prescriptions as reported by IQ here and 75% growth in net sales.
Jack: Prescriptions reached an all time quarterly high of 176503, and net sales were at $45 million.
Jack: Growth in net sales in the first quarter of 2024 benefitted from both prescription growth and gross to net improvement compared to the same period last year.
Peter Basel: Gross to net during the first quarter of this year was well within our target range of 50% to 55%.
Speaker Change: Which is encouraging for the first quarter, considering the typical beginning of year pressure and high deductibles and insurance resets.
Speaker Change: Across the pharmaceutical industry.
Speaker Change: For the remainder of 2020 forward, we expect the gross to net for <unk> to remain in the range of 50% to 55% with fluctuations that you would typically expect on a quarterly basis.
Speaker Change: During the first quarter, we further expanded its base of prescribers ending the quarter with approximately 27138 up.
Speaker Change: <unk> 5938 in the fourth quarter of 2023.
Speaker Change: Collections from adult patients now account for approximately 32% of galleries total prescriptions.
Speaker Change: Switching now to our Arkansas franchise, we saw increased pressure on our brands in the first quarter with higher Medicare rebates based on out of pocket costs and the closing of the patient assistance funds to new and existing patients.
Speaker Change: These dynamics contributed to increased gross to net deductions for our brands, leading an example, tomorrow order growth up 2% on net sales of recovery compared to the same period in 2023.
Speaker Change: During the quarter. We also saw a significant 42% increase in sample distribution by physicians to patients.
Speaker Change: This increase in sample usage allowed many patients to stay on the recovery, while waiting to hit their maximum out of pocket costs.
Speaker Change: We have already seen a bounce back in the recovery business in the second quarter as we believe patients started transitioning from those samples to refilling their prescriptions.
Speaker Change: Switching to our legacy products ox validates our net sales for the first quarter 2024.
Speaker Change: $26 nine compared to $28 9 million in the first quarter of last year. We expect the introduction of the first G&A of <unk> in September of 2024.
Speaker Change: Trokendi XR first quarter net sales were $16 million down by 54% from the same quarter last year with expected further erosion in trokendi, XR and empty and a stellar XR generic later this year, we continue to anticipate combined net sales of Trokendi XR and <unk>.
Speaker Change: So far in 2024 to be in the range of $125 million to $135 million.
Speaker Change: Regarding SPN 830, as we disclosed in April the FDA issued a complete response letter in response to the company's NDA, indicating that the review cycle for the application is complete but that the application is not ready for approval in its present form.
Speaker Change: The company will announce defining Forex resubmission after meeting with the FDA. Later. This month, we are committed to Parkinson's patients who need this potential new treatment option and to breaking SPN eight three for the marketplace.
Speaker Change: Moving on to our emerging CNS pipeline of novel product candidates, we have exciting catalysts coming up in the next 12 months.
Speaker Change: Regarding SPN eight 'twenty the company expects to provide data from its phase II B study in adults with treatment resistant depression in the first half of 2025.
Speaker Change: The phase II study recently achieved more than 50% enrollment of the total 268 target number of patients.
Speaker Change: The phase two open label study is currently enrolling and targeting a total of about 50 patients with major depressive disorder.
Speaker Change: Regarding the phase Iia study of SPN 8174 treatment resistance seizures. The company now expects to report interim data from approximately 40 patients.
Speaker Change: Greater than the one half of all randomized patients already generally targeted as such we plan to hold a conference call on May 20 <unk>.
Speaker Change: We report these interim data.
Speaker Change: This study is examining the safety tolerability and efficacy of SPN 817, as adjunctive therapy in adult patients with treatment resistance seizures.
Speaker Change: Offline results for the full study are expected in the second half of 2024.
Speaker Change: In addition, we plan to initiate a phase one single dose study of SPM four importantly in healthy adults following submission of an investigational new drug application.
Speaker Change: SPN four importantly is our new stimulant life product candidate for ADHD and other CNS disorders.
Speaker Change: Finally, we remain active in corporate development looking for strategic opportunities to further strengthen our future growth and leadership position in CNS.
Speaker Change: With that I will now turn the call over to Tim.
Tim: Thank you Jack good afternoon, everyone.
Tim: As I review, our first quarter 2024, our results. Please refer to today's press release and 10-Q that was filed earlier today.
Tim: Total revenue for the first quarter of 2024 was $143 6 million compared to $153 8 million.
Tim: In the prior year quarter.
Tim: Total revenue in the first quarter of 2024 was comprised of net product sales of $138 4 million and royalty and licensing revenues of $5 2 million.
Tim: At $2 $2 million decrease in net product sales was primarily due to a $28 million decline in net product sales of Trokendi XR and <unk> stellar XR.
Tim: Actually offset by a $19 $3 million increase in net product sales of Calgary.
Tim: Excluding net product sales of Trokendi XR <unk> XR in both periods total revenues for the first quarter of 2024 increased 12% compared to the prior year quarter.
Tim: For the first quarter of 2020 for combined R&D and SG&A expenses were $111 4 million as compared to $106 8 million.
Tim: For the prior year quarter.
Tim: The increase was primarily due to R&D spend associated with the clinical programs for SPN 817, and SPN eight 'twenty as we continue to progress our pipeline.
Tim: Operating loss on a GAAP basis for the first quarter of 2024 was $3 2 million as compared to an operating earnings of $5 2 million for the prior year period.
Speaker Change: Income tax expense in the first quarter of 2024 was 119000 as compared to an income tax benefit of $7 9 million for the same period in 2023.
Speaker Change: GAAP.
Speaker Change: Net earnings was 124000 for the first quarter of 2024 earnings per diluted share of zero cents.
Speaker Change: Compared to GAAP net earnings of $16 9 million or earnings per diluted share of 29 cents in the prior year quarter.
Speaker Change: On a non-GAAP basis, which excludes amortization of intangibles and share based compensation contingent consideration and depreciation adjusted operating earnings for the first quarter of 2024 was $22 3 million compared to $30 5 million in the same quarter of the prior year.
Speaker Change: As of March 31, 2024, the company had approximately $309 4 million in cash cash equivalents and marketable securities.
Speaker Change: Compared to 271 5 million range as of December 31, 2023.
Speaker Change: The increase was primarily due to cash generated from operations.
Speaker Change: The company continues to have a strong balance sheet with significant financial flexibility for potential M&A or other value creating opportunities.
Speaker Change: Now turning to guidance.
Speaker Change: For full year 2024, the company reiterates its financial guidance for total revenue combined R&D and SG&A expenses and non-GAAP operating earnings.
Speaker Change: As such we expect total revenues to range from $580 million to $620 million comprised of net product sales royalties and licensing revenues.
Speaker Change: For the full year 2024, we expect combined R&D and SG&A SG&A expenses to range from $430 million to $460 million.
Speaker Change: Like an increased level of R&D spend as our pipeline progresses.
Speaker Change: Overall, we expect full year 2020 for GAAP operating loss in the range of 30 million to breakeven.
Speaker Change: And non-GAAP operating earnings to range from 80 million to $110 million.
Speaker Change: Please refer to the earnings press release issued prior to this call that identifies the various ranges of reconciling items between GAAP and non-GAAP.
Speaker Change: With that I will now turn the call back to the operator for Q&A.
Speaker Change: Thank you at this time, we will conduct a question and answer session too.
Speaker Change: To ask a question you will need to press star one one on your telephone and wait for your name to be announced.
Speaker Change: To withdraw your question. Please press star one one again.
Speaker Change: Please standby, while we compile our Q&A roster.
Speaker Change: Our first question comes from Andrew with Jefferies Go ahead Andrew.
Andrew: Hey, Thanks, Good afternoon. Thanks for taking my question so.
Andrew: Congrats on the progress to first one is on Calvary.
Andrew: Uh huh.
Andrew: We're one month into Q2 would you expect acceleration in Trs scripts this quarter or should the quarter recorded growth be relatively similar to what we saw in Q1, and then Q3 is when we see the real acceleration and I'm. Just curious where you guys have you guys been impacted by the change healthcare cyber security.
Speaker Change: Jack as well.
Jack: Yeah, Hi, Andrew.
Speaker Change: If you look at the first quarter of 2024 sequentially versus the fourth quarter of last year. Our prescriptions grew by about 2% if I'm not mistaken to two 5% are we already seeing in the second quarter. If you look.
Jack: Sequential growth quarter to date, the second quarter versus the first quarter sequential growth is about 11% both 10%. So so to answer your question, yes. It looks like it is starting to pick up the <unk>.
Jack: Q1 <unk>.
Jack: Phenomenon, which typically metals down a lot of activity and so forth and insurance issues and so forth. So.
Jack: So we're looking at acceleration in the second quarter already certainly with the back to school season, we expect that to be healthier.
Jack: It remains to be seen clearly as to how strong the back to school season third quarter versus second quarter third quarter versus the year before.
Jack: The second question. The answer is no we were not impacted by the change healthcare issue. We had other providers that could step in and continue to provide service for our customers.
Jack: Okay, and then on SPN 817 with the.
Jack: Later this month, we will have the interim data set.
Jack: Follow up data should we be expecting on all 40 patients.
Jack: Maybe talk to us what kind of seizure freedom rates.
Jack: Existing epilepsy drugs show and whether you think 807, Ken surpass our be higher than those rates.
Jack: Yes.
Jack: The first question as far as how much more to data follow up I mean, as we said in our press release, we're going to be order my remarks were going to report on somewhere around 40 patients.
Jack: We still have a few patients still in the study so one in the second half of this year when we report the full study.
Jack: Without a handful of more patients to report on them. So we can finalize all the full dataset to Rick.
Jack: Boardwalk.
Jack: Regarding the second question as far as seizure freedom rates.
Jack: So many different definitions that people use regarding seizure freedom.
Jack: Typically I will give you. An example on <unk> if I remember some of the main that we have at one point the around 11% seizure freedom, which is very solid for our product for example, <unk> or there are so many agents out there with all the host of ranges of seizure freedom clearly anything above the <unk>.
Jack: And that gave us a good.
Jack: Number, especially for those who are refractory patients in India.
Jack: Space, 33% to 40% of patients are refractory.
Jack: So it depends on are you getting seizure freedom.
Jack: Within what patient population that we are taking a patient from most of them refractory and youre turning them to be seizure free that has incredible even if it's 5%, but if youre thinking equal hard from the beginning started getting.
Jack: Hayden with epilepsy drug and then you're telling them seizure free only ananda.
Jack: He is.
Jack: Not quite as badly that probably is not as impressive. So so theres a lot of variety of how people measure them.
Jack: And then what patient population.
Speaker Change: Got it got it and then last quick question is just bigger picture.
Speaker Change: In general how much firepower do you guys think you have in terms of BD or M&A. Thank.
Speaker Change: Thank you.
Speaker Change: And they're very simplistic way I mean, we could probably do.
Speaker Change: Transactions in the 501 billion it could get higher if we use equity so it all depends on the situation itself as far as the.
Speaker Change: Acquisition candidates.
Speaker Change: I'll file that company has.
Speaker Change: Does that company come with assets that generate significant cash flows and you are able to leverage against these cash flows and maybe it will allow you to go to a bigger sized transaction and it is transformative.
Speaker Change: Kind of transaction that equity could become part of the mix as well as for paying for that acquisition. So I think a 500 to $1 2 billion.
Speaker Change: Fair range I know, that's a wide range, but it all depends on the situation we are leaving.
Speaker Change: Makes sense. Thank you again.
Speaker Change: One moment for our next question.
Speaker Change: And our next question comes from David with Piper Sandler Go ahead David.
David: Thanks, So just kind of a couple.
David: First.
David: On Calgary.
David: <unk>.
David: You seem like Youre doing nicely in terms of getting to the gross to net.
David: Target.
David: The low to mid fifties, I guess, just given where there already is.
David: Yes.
David: <unk> given that it's seasonally tougher is it possible that the gross to net.
David: Could dip below 50% as the year progresses.
David: Just wanted you to talk to that if he can.
David: And then secondly on SPN 830 can you elaborate on the.
David: The issue in the Crs out or maybe not issue, but what was raised in the CRM regarding the master file for the infusion device.
David: Anything that you've learned.
David: Since the CRM.
David: <unk>.
David: Interfaced with the manufacturer.
David: That you can share with us.
David: So that's.
David: Number two and then lastly on 817 <unk>.
David: Can you just remind us of the path forward.
David: Beyond.
David: This phase Iia I believe the phase two b.
David: As in the work so talk to the design of that study.
Speaker Change: Yes sure.
David: First question on the Calgary and the gross to net.
David: The reason, we said for the full year, we remain target, 50% to 55% is because quarter to quarter Youre, absolutely right typically gross to net improves and if in the first quarter, we had a little bit better or we are in a good place to start with there is nothing but to improve from here.
David: The only caveat to that sometimes we see quarter to quarter fluctuations some of which are unexpected or unknown like a high return or something.
David: Good come in so that's the only thing we're trying to be guarded against.
David: Everything else being equal let me put it this way yes. There is a potential that we may end the year on the shorter end or the lower end of that range if that makes sense.
David: As far as SPN 830, I mean, as we when we announced the CRM. We did mentioned there are couple of areas one around the quality and one around the master fire, which we're learning more and more now as we're having discussions directly with the manufacturer around that.
David: We think these are areas that can be addressed and we already secured a meeting with the FDA. Later this month. So we're really moving really fast as fast as we can to openly address all of these issues and we wanted to make sure also that aren't new issues that pop up later on so we're trying to make sure we have everything we need.
David: Before the Resubmission and Thats why we would like to have that meeting first before we communicate any timeline for the resubmission.
David: And then the last question on <unk> seven.
David: Just as a reminder.
David: Current study we are reporting on which was the interim data is on an open label exploratory study, where we looked at several types of seeing those we look at so many different doses and it was meant to help us.
David: And as time goes on as the study continues to enroll all help us in designing the phase <unk> study, which typically would be our next step.
David: So clearly that is the next natural step.
David: After the Phase Iia open label study and we will share the details with you guys on May 20.
David: Okay.
Speaker Change: And if I may just sneak in a follow up.
Speaker Change: On an 830.
Speaker Change: There is also the other issuers was on product quality and I believe you said that you've submitted that that data to the FDA.
David: Is it possible to elaborate on what was meant.
David: Product quality.
David: Yes.
David: Yes.
David: I'll get into all the details at all.
David: The formulation itself. So it is not.
David: Device issues. So that's when we say product quality it was more related to the product the formulation. The April morphine solution. So to speak that's as far as we can share at this point and yes. We have submitted some data at that time that the FDA didn't have the time to review or they didn't break deal. So.
David: So clearly the meeting upcoming meeting will be very important for us to clarify do they need anything else on top of that or whatever we submitted could be sufficient. So that's really the purpose of that meeting.
Speaker Change: Okay I'll leave it there. Thank you. Thank you.
Speaker Change: Please standby for our next question.
Speaker Change: Okay.
Speaker Change: And our next question comes from Stacy with PD Cowen go ahead Casey.
Stacy: Hi, John Congratulations on the quarter and thanks, so much for taking our questions. So we can have a few follow ups.
Stacy: Just one more on calibrate that strong net pricing that we're seeing in Q1 whats driving that is it higher doses because adult patients are being added is it the price increase is it still kind of that pulling back the copay assistance program and then as we look forward as we consider these connect growth next fluctuations.
Stacy: I have alluded to are you going to be making investments as we think about back to school season, this year just quarter to quarter.
Speaker Change: Should we expect a more stable net price for the year.
Speaker Change: That's the first question and then the second question is going to be on SPN 817.
Speaker Change: It sounds like enrollment.
David: Foster than expectation. So can you just broadly talk about steady demand among the patients and then just set expectations. What do you expect will be competitive seizure reduction through forward understanding. This is an open label and and Youre going to get this data and lately.
David: Curious the decision to move into late <unk> and help set expectations for the street. Thank you.
David: Regarding category.
David: We've talked about that actually several quarters regarding what are the key drivers for calibrate to continue to grow and to continue to perform well and obviously continue to grow the net price at the end of the day.
David: Clearly.
David: Higher daily doses, and we can get there.
David: Avenues.
David: Highly daily doses that patients are taking on a daily base.
David: Whether it's pediatric or adult and that is typically a function of physicians getting more and more comfortable with the medication and by trading up to the real dose that they need to use actually for the product will be very well.
David: Effective in treating symptoms and that is in line with the phase III data.
David: Based on the phase III data, we did continue to communicate to our physicians what are the target a total daily dose that they should be working up to in both patient populations. So clearly as time goes on we ought to get we are getting there the speed by which we get that as always.
David: Hard to predict obviously, because we've always have new prescribers on a completely new to the product at least new prescribers will always take it.
David: Low and slow so to speak from a penetration perspective. It also depends on how they are using it they are using it in combination with stimulants, sometimes they go much lower and much slower because they're adding it to the stimulus that the patient has already on and as they try to take the stimulant off.
David: From the therapeutic regimen for that patient and adding category. They will reduce the stimulant and increase the calorie. Those so that is a function of that based on a case by case basis.
David: And then the final dynamic that will impact higher doses is clearly the adult population as our mix of the business continued to grow in evolves and becomes a bigger piece of our total franchise on a blended basis clearly that is going to increase the total daily dose and gives us the benefit of a higher price.
Speaker Change: <unk> so the net price in the first quarter of this year was about 255, I guess, if you divide the net sales by the quarterly prescriptions, which is down versus $2 67, which was the number in the fourth quarter of.
Speaker Change: And last year, and Thats, because the cost and it always gets a little bit worse in the first quarter versus the previous quarter.
Speaker Change: As far as the year goes on our investments and so forth now. This morning, we continue to push and evolve as we were neglecting pediatric absolutely not but we continue to push in those especially in female about.
Speaker Change: Sign up some really great in store and Susan have partnership with like busy Phillips, which we announced very recently.
Speaker Change: <unk>.
Speaker Change: She's talking about ADHD and our <unk>.
Speaker Change: Experience in ADHD and her experience with category as a product that has helped us head toward a tremendous which so we hope to continue the market education and encourage patients to step forward and talk about their disease above their conditions about the things that they struggle with every single day and let them know that there are.
Speaker Change: Our options out there and these options don't have to be stimulus. They don't have to be controlled substances and they can be very good.
Speaker Change: Well tolerated non stimulant that can be very effective which is the case with category and every metric we have looked at elevate.
David: Time goes on we have more and more data and more evidence that the product really works and it really works fast and it works well with kids and adults. So we will continue to invest in these areas and clearly as we get closer to the back to school season will make more investments and more prioritization of re.
David: The back to school season.
David: Regarding <unk> 107 in the profile.
David: Again, I mean, we will reveal of course the data.
David: May 2000.
David: 27th of May I mean, clearly you want a product that works I mean at the end of the day when you look at epilepsy in the landscape. There's so many agents out there and we've been in that space for so many years before with <unk> stellar XR, trokendi, XR or even quite a mature way back.
David: And many patients referred to earlier they become refractory unfortunate.
David: And they don't respond to as many of education in these patients end up on way more than one or two drugs eventually.
David: And therefore, you need a drug that really works and works well and hopefully works well.
David: You avoid adding that patients will progress and even become refractory I mean clearly that's.
David: The gold standard that Youre looking for is to try to treat patients early.
David: And you will make them.
David: Sponsored for these medications that are responsive and progress.
David: Sure.
David: Worsening of their condition is delayed as spine goes on.
David: So 807 from what we've seen so far looks like is an effective medication from the data we have.
David: Earlier back in the R&D day as well as some of the patients we have in Australia at a way back in the early early study.
David: So we hope to have a profile of a drug that actually works well.
David: And again in <unk> given.
David: Our model of action and so forth. If it does also have some pro cognitive attributes that would be huge.
David: That would be huge specifically in this patient population. So so we will see as the analysis, where literally completing a lot of that analysis as we speak even though we had a little bit more patients than we initially expected and.
David: With share all of that on May 24.
Speaker Change: Okay understood. Thank you so much.
Speaker Change: Thank you.
Speaker Change: Standby for our next question.
Annabel: And our next question comes from Annabel <unk> Stifel go ahead Annabel.
Speaker Change: Hi, This is Jack on for Annabel, Thanks for taking our question.
Jack: So I know you've mentioned previously that about 30% of calibrate patients are treatment naive and the other 70% are switches from existing therapies are there any differences in the responses that these two patient populations have to calibrate when it comes to things like speed.
Speaker Change: Speed of effect onset.
Speaker Change: Essentially trying to ask here is there a better onboarding strategy or do both populations perform identically in one state initiated calibration.
Speaker Change: Not really I mean.
Speaker Change: So pretty remarkable the consistency of the feedback we get from the field.
Speaker Change: Whether the patient.
Speaker Change: First of all as pediatric orders without or where the patients come from to the Calgary franchise as.
Speaker Change: As far as the efficacy of galleries. It works fast as I mentioned earlier I mean between a week to two weeks, depending on whether EMEA to titrate. If you have an older patients.
Speaker Change: The lesson or you haven't obviously, you have to titrate and whether the physician despite rating as on the label or the <unk> trading a little bit slower just because they choose to do that right, but nevertheless patients feel and they start seeing the improvements during the titration and enduring.
Speaker Change: With the onset of action is fairly quick actually.
Speaker Change: Some of the survey results that we have seen over time since we launched the product physicians will use calibrate and had to use that data for many years late value Calgary once within a week to two weeks and on an average per capita.
Speaker Change: At least four or five weeks I mean, even in they've known it themselves and they see them given the experience they've had was put there. So we know that the product is working really well.
Speaker Change: Regardless of whether you to switch over to you are completely naive nuke.
Speaker Change: <unk> still got on calculate from the beginning.
Speaker Change: Okay.
Speaker Change: Got it and then just kind of ask one more speaking about physician feedback. So I know that youre looking at Calgary and the co morbid symptoms more formally in the phase four and we're going to see that data eventually.
Speaker Change: In the meantime have you heard any anecdotal real world reports from physicians, maybe not involved in the trial.
Speaker Change: About how <unk> might be performing in these kind of patient population.
Speaker Change: Yeah, we actually started hearing about it and for singly even way back when we were doing the studies from some investigators.
Speaker Change: Who at that time again anecdotally. This was nothing like portable data collection on anything anecdotally is telling us.
Speaker Change: We see and that was <unk>.
Speaker Change: But even on top of it. So we don't know where the patients are talking about state and county are taking placebo at that time, but they were betting on us.
Speaker Change: It looks like the patient is not just getting better because they can pay model and channel focus or whatever that just feeling better overall in general.
Speaker Change: So it's more about the whole the mood of the patient the whole well being of the patients not just focus attention or.
Speaker Change: 70, or hyper activity or anything specific for ADHD and we would have these investigators on that say why do you have an idea and then.
Speaker Change: Again, not knowing what that patients wherever they are referring to we don't even know they could be on placebo, but not knowing it cleanly with delta and what the background of the molecule is being an anti depressant and so forth and then of course, they say, okay and the molecule works on sort of tone and so forth. So then they really speculate of course in our mindset.
Speaker Change: Yes, maybe that's why it is working better across different mood disorders that these patients may have because we know ADHD does come with a lot of comorbidity with things like anxiety depression bipolar.
Speaker Change: Disorders, and clearly it looks like again anecdotally that.
Speaker Change: Ill leave it was helping across different areas not just ADHD.
Speaker Change: Okay.
Speaker Change: Great very helpful. Thank you.
Speaker Change: Thank you. This concludes our question and answer session I would now like to turn it back over to Jeff for closing remarks.
Jeff: Thank you and you concluding our call. This afternoon, we remain focused on first driving the long term growth of the company by continuing to drive significant growth with calibrating and together with the recovery in the rest of the portfolio generates strong cash flows, allowing us to continue our <unk>.
Speaker Change: Investments in our pipeline and second progressing our innovative R&D portfolio of differentiated first in class molecules that have several exciting and upcoming clinical milestones and catalysts. Thanks for joining us. This afternoon, we look forward to updating you on our Mexico.
Speaker Change: Thank you everybody for your participation in today's conference call.
Speaker Change: Does conclude the program you may now disconnect.
Speaker Change: Yes.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].