Q2 2024 Ligand Pharmaceuticals Inc Earnings Call
Pam: Thank you for standing by. My name is Pam, and I will be your conference operator today. At this time, I would like to welcome everyone to the Ligand second quarter 2024 earnings webcast. All lines have been placed on mute to prevent any background noise.
Thank you for standing by my name is Pam and I'll be your conference operator today at this time I would like to welcome everyone to the ligand second quarter 'twenty 'twenty four earnings webcast. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session.
Pam: After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star 1 again. Thank you. I would now like to turn the conference over to Octavio Espinoza, the Chief Financial Officer of Ligand Pharmaceuticals Inc. You may begin.
If you would like to ask a question. During this time simply press star followed by the number one on your telephone keypad.
Travelle: If he would like to withdraw your question Press Star one again. Thank you I would now like to turn the conference over to travel as you know as I was the Chief Financial Officer of ligand Pharmaceuticals, Inc. You may begin.
Octavio Espinoza: Good afternoon, everyone, and welcome to Ligand's second quarter earnings call. During the call today, we will review the financial results we released after today's market close and offer commentary on our partner pipeline and business development activity, followed by a question and answer session. Our earnings release and a link to today's webcast can be found in the investor relations section of our website at ligand.com. Please refer to the Safe Harbor Statement related to these forward-looking statements, which are subject to risks and uncertainty.
Speaker Change: Good afternoon, everyone and welcome to <unk> second quarter earnings call. During the call today, We will review the financial results. We released after today's market close and offer commentary on our partner pipeline and business development activities, followed by a question and answer session. Our earnings release and a link to today's webcast can be found in the <unk>.
Speaker Change: Mr Relations section of our website at <unk> Dot com.
Speaker Change: With me on the call today are CEO, Todd Davis, Senior Vice President of investments and business development.
Speaker Change: And senior Vice President of investment and head of clinical strategy Doctor Kevin Reed.
Speaker Change: This call is being recorded and the audio portion will be archived in the investors section of our website on today's call. We will make forward looking statements regarding our financial results and other matters related to the Companys business. Please.
Speaker Change: Please refer to the safe Harbor statement related to these forward looking statements, which are subject to risks and uncertainties.
Speaker Change: Remind you that actually events or results may differ materially from those projected or discussed and that all forward looking statements are based upon current available information.
Speaker Change: <unk> assumes no obligation to update these statements.
Todd Davis: To better understand the risks and uncertainties that could cause actual results to differ we refer you to the documents that law again filed with the Securities and Exchange Commission that can be found on <unk> website at www Dot <unk> dot com or on the Sec's website at Www SEC Gov with that I will now turn the call over to Todd.
Todd Davis: Thank you Todd will garner our last several calls we have spent a fair amount of time talking about the steps we have taken to transform the company and strengthen and expand our royalty portfolio and team.
Todd Davis: I am pleased to report that during the second quarter, we committed $175 million to two new investment opportunities and added several commercial stage products to our portfolio.
Todd Davis: We believe that we believe will be a meaningful contributors to our royalty revenue over the next several years.
Todd Davis: This includes two notable regulatory approvals of products with blockbuster sales potential <unk> capex. The first pneumococcal conjugate vaccine specifically for adults. It was approved by the FDA on June 17.
Speaker Change: Verona farmers Oh, two there the first inhaled product with a novel mechanism of action for the treatment of COPD maintenance in over 20 years.
Todd Davis: That NDA was approved by the FDA on June 26.
Todd Davis: Our royalty portfolio now includes 12 major commercial stage products.
Todd Davis: Any that are marketed by Premier global pharmaceutical companies. This is double the number of key marketed products, we have in our portfolio at the beginning of 2023 and <unk>.
Todd Davis: Underscoring the capabilities of our business development team and successful implementation of our Opex slight investment focused corporate strategy.
Todd Davis: As a reminder, we also have more than 90 additional active pipeline programs in our portfolio that are in various stages of development.
Todd Davis: Paul and Karen will share additional updates on our pipeline later on the call.
Todd Davis: During the second quarter. We also added several new team members, which deepened our investment business development and operational bench, Michael vigilante joined Us in May as Vice President investments and business development Michael.
Speaker Change: Michael served in a similar role at a Boston based life Sciences investment firm and brings significant transaction in company building experience.
Octavio Espinoza: We've also added Ruben Flores Saib, Senior Director of Business Development, in April. We believe our revenue growth is on pace to exceed the 22% compound annual growth rate that we previously shared in December. The existing portfolio alone supports a royalty revenue CAGR of 18%.
Speaker Change: We've also added Rubens Flores Sahib senior director business development in April.
Speaker Change: Reuben is leading our business development efforts with the inventor community, having spent 12 years in industry and 10 years in the University technology transfer sector before joining <unk>.
Speaker Change: On the operation side, we also hired March <unk> as head of human resources Orange has over 20 years of life Sciences, HR experience and will play a key role as we look to bring in additional talent to the company.
Speaker Change: These hires followed the additions of rich Baxter SVP of investment operations and Dr. Karen Reeves earlier this year.
Speaker Change: As some of you may be aware, we filed an 8-K on Friday announcing the ligand president and COO, Matt Kornberg has decided to leave the company and pursue other opportunities.
Speaker Change: That has agreed to serve as a consultant through the end of the year. We are grateful for mass many contributions to the company over the last nine years and wish him well in future endeavors.
Speaker Change: Tahoe will do a deep dive into our financials for a second quarter and the first half of 2024.
Speaker Change: But let me provide a few financial highlights.
Speaker Change: Total revenue in the second quarter grew 58% driven in part by milestone payments. We earned following the approvals of <unk>, there and cap vaccines.
Karen: Which Karen will discuss in greater detail.
Tahoe: Our royalty revenue growth trajectory continued in the second quarter, increasing 11% over the same period in 2023.
Tahoe: We also announced an increase to our 2024 financial guidance in conjunction with your Pyrone Biologics acquisition. We now expect total revenue to be in the range of $140 million to $157 million and core adjusted EPS to be in the range of $5.
Speaker Change: A $5 50 per share.
Tahoe: Turning to slide four we will discuss <unk> strategic differentiation.
Speaker Change: We are a biopharmaceutical company that seeks to offer profitable and compounding growth our diversified portfolio of royalty assets generates consistent and predictable revenues, we target late stage development assets, where there is superior risk reward profile.
Tahoe: There are sizable demand for capital in the life Science industry. This allows us to invest selectively as we offer differentiated capital solutions that traditional investors cannot provide.
Tahoe: Our strategy is executed on by our highly experienced investment team we can source.
Tahoe: Diligence and negotiate proprietary investments once originated we can employ customized investment structures and.
Tahoe: Our novel tactics to create new investment opportunities our acquisition of a payroll is a prime example of this.
Tahoe: Royalty investing is a small percentage of the total capital that is invested today in life Sciences.
Tahoe: We believe our model is scalable and offers immense growth potential for years to come.
Tahoe: Turning to slide five for our royalty revenue outlook.
Tahoe: We've made substantial progress to meet or exceed our longer term growth goals that we outlined at our analyst day in December of 2023.
Tahoe: During the second quarter, we saw an increase in wall Street consensus estimates on several of our partnered products, including <unk> Bari. We also added several major new commercial products to the portfolio, including <unk> and <unk>, which are expected to launch later this year.
Tahoe: We believe our revenue growth is on pace to exceed the 22% compound annual growth rate that we previously shared in December the existing portfolio alone supports our royalty revenue CAGR of 18%.
Tahoe: Future investments should add at least 4% to this with potential upside on top of the current outlook. The operating leverage gained from our lean corporate cost structure is expected to result in adjusted EPS of greater than $10 per share.
Tahoe: In 2028.
Speaker Change: Before I turn it over to Paul I wanted to provide an update on <unk> as I mentioned on our last earnings call. We created a new Standalone company earlier this year called <unk> Therapeutics to commercialize Zelle Sue me, which was approved by the FDA in January for most of them.
Tahoe: <unk>.
Paul: The <unk> team is preparing for the formal commercial launch of <unk> me in the first quarter of 2025.
Tahoe: We anticipate this will be done in partnership with a capital provider <unk>, a strategic partner, which is the same approach that we took with Viking therapeutics and Primrose bio.
Paul: This is consistent with our strategy to reposition and maximize the value of highly differentiated and promising pharmaceutical assets by combining premier management teams and third party funding sources and returned for significant equity and royalty rights in the newly formed entities.
Tahoe: In conclusion, we are proud of all that we've accomplished in the first half of 'twenty four and we are very optimistic about our future prospects.
Tahoe: I will now turn it over to Paul <unk> for a business development update Paul.
Paul: Thank you Todd.
Paul: I would like to take a moment to reflect on a number of exciting milestones we've achieved over the past 18 months.
Speaker Change: Today I am proud to say, we have assembled a strong team of investment professionals.
Speaker Change: Moreover, we have developed a very robust proactive outbound sourcing capability.
Tahoe: On this call we are showcasing some of the fruits of those efforts such as cross border M&A and venture outreach.
Tahoe: Our team with decades of investing experience has a number of structural tools in our toolkit.
Tahoe: With proprietary sourcing ability, we are able to pursue a robust number of exciting investment opportunities across multiple therapeutic areas within the global Biopharma sector.
Tahoe: Turning to slide seven.
Tahoe: We now have an investment office and team that is headquartered in Boston.
Tahoe: The most prolific life science hubs across the globe.
Tahoe: Over the past 18 months, we have committed over $275 million across 12, new investments.
Tahoe: I am very proud of our team and what we've accomplished in such a short time period and I'm, even more excited for the future.
Tahoe: Now, let me highlight several of our key investments over the past few months.
Tahoe: Turning to slide eight on July eight we announced the $100 million acquisition of the Pyrone Biologics investment that had been in the works for months.
Speaker Change: <unk> wasn't a privately held Austrian based biotechnology company that received royalties on cars EBIT and.
Tahoe: An approved monoclonal antibody for one of the most common forms of pediatric cancer neuroblastoma.
Tahoe: The product was approved in Europe in 2017.
Tahoe: It is now marketed in over 35 countries worldwide and is well entrenched in pediatric oncology treatment guidelines.
Speaker Change: Importantly, the royalty rate is a healthy 15% to 20% of net sales.
Speaker Change: Royalties over the past 12 months were in excess of 20 million euros and the acquisition was highly accretive to ligand given the near 100% profitability.
Speaker Change: Finally, although record Audi is evaluating a U S patent market. Our base case projections did not include U S sales or approvals.
Speaker Change: The acquisition, which closed a week later is immediately accretive by $1 per share on an annualized basis.
Speaker Change: This acquisition was a true team effort, we think the appear on shareholders for selecting <unk> as their partner.
Speaker Change: Car Zieba with its long dated IP and lack of near term competitive threats will carry <unk> oncology royalties well into the next decade.
Speaker Change: We are excited to welcome record Daddy cards, EBIT marketer as a partner of <unk> and look forward to working with them to support <unk> as continued access to young cancer patients and their families globally.
Speaker Change: Turning to slide nine.
Speaker Change: Karen will discuss barone as recently approved <unk> program.
Speaker Change: Like to note that today, we are sharing that during the last six months, we purchased additional royalties from inventors for approximately $17 million.
Speaker Change: These acquisitions further strengthen our exposure to the first novel inhaled treatment approved in COPD in over 20 years.
Speaker Change: This brings our total <unk> royalty to just under 3% of net sales.
Speaker Change: These investments also showcase our team's ability to meet the needs of individual inventors, who are seeking to diversify away from single royalty asset risk for wealth planning and charitable endeavors. These.
Speaker Change: These add on investments or very low friction as they are executed on fully diligence products that are already part of our portfolio.
Speaker Change: Turning to slide 10.
Speaker Change: With respect to our investment in particular stat cadence President of R&D say the following on their earnings call on July 31, and I quote.
Speaker Change: As previously communicated <unk> failed to demonstrate clinical benefit in <unk>.
Speaker Change: So tickled stat also fail to meet its primary endpoint in the <unk> syndrome phase III trial narrowly missing with a P value of 0.06.
Speaker Change: However, the totality of data from this study had a meaningful effect on key secondary endpoints and when combined with the highly significant results from the large phase II study suggests clear clinical benefits for particular stat and drove eight patients with a differentiated safety profile.
Speaker Change: Given the large unmet need in <unk>, we are investigating a potential regulatory path forward and quote.
Speaker Change: From <unk> standpoint, while we expected a stronger topline data announcement, we are encouraged by indicators continued drive to secure a potential path forward for these rare epilepsy patients who have limited options as we learn more we will update accordingly.
Speaker Change: Turning to slide 11.
Speaker Change: Second quarter, we made a $75 million investment across several clinical stage oncology royalties with agenesis.
Speaker Change: Current assets and one synthetic royalty and their lead internal pipeline program bought Val.
Speaker Change: Having completed their end of phase II meeting with the FDA, a janus has clarity on their phase III dose, which is an important achievement.
Speaker Change: Our team investment based on the strength of existing data and we will be focusing on monitoring the maturing study.
Speaker Change: This program has significant potential to be an important addition for metastatic colorectal cancer patients in later lines of therapy as well as other potential expansion indications.
Speaker Change: Finally, <unk> will likely need a partner to achieve their global development plan, our ambitions and our team has been consistent in our messaging.
Speaker Change: We are focused on the development of this data and monitoring the partnering process.
Speaker Change: Additionally, agents may revisit accelerate approval once the data is more mature.
Speaker Change: We recently learned that select partner programs are being returned eight Janice.
Speaker Change: <unk> has an obligation to seek to re license these programs and ligand, we will maintain our economics.
Unknown Executive: We look forward to their continued progress and success.
Speaker Change: Pleased with the continued progress of our unique investment strategy and our team's performance our portfolio continues to strengthen and mature and we look forward to updating you in the coming quarters.
Speaker Change: I'll now turn it over to Karen.
Speaker Change: Okay.
Karen: Thank you Paul.
Karen: Today, we'd like to highlight some key commercial product in our portfolio.
Karen: Turning to slide 14.
Speaker Change: Let's look at trivia therapeutics, so sorry <unk>.
Karen: License worldwide rights for <unk> and are entitled to milestones and a 9% royalty on global net product sales.
Unknown Executive: Over the past 18 months, Pillsbury has achieved several major milestones, underscoring the significant potential of this product. We believe the new guidelines may potentially emphasize the importance of treating proteinuria early and aggressively.
Karen: Over the past 18 months <unk> has achieved several major milestones underscoring the significant potential of this product.
Karen: <unk> is a dual endothelin, one an angiotensin II receptor antagonist and.
Karen: In February 2023, so far <unk> received accelerated approval from the FDA for primary Iga nephropathy, which affects an estimated 150000 people in the U S.
Karen: <unk> is a progressive kidney disease that leads to hampered kidney filtering proteinuria and progressive kidney function loss.
Karen: The basis of the FDA accelerated approval was traverse phase III protect study, which met its prespecified interim primary endpoint mean reduction of proteinuria Phil.
Karen: <unk> became commercially available in the U S. In late February 2023.
Speaker Change: Of $27 $1 million during the second quarter, which represented strong growth of 37% over the prior quarter.
Speaker Change: Analysts are projecting Pete global so as far as sales of $500 million to $700 million.
Karen: Turning to slide 15.
Karen: Let's look at one of our most recent pipeline wins Verona farmers Oh two there.
Karen: Oh to bear previously known as <unk> received FDA approval on June 26.
Karen: And is indicated for the maintenance treatment of chronic obstructive pulmonary disease.
Karen: Allowing for broad use in adults with C O P D.
Karen: Oh, two there is a novel dual phosphodiesterase inhibitor with Bronco Guy later and anti inflammatory effects that.
Karen: That is administered twice daily the nebulizer inhalation.
Karen: It is the first inhaled product with a novel mode of action approved for the maintenance of COPD and more than 20 years.
Karen: Primary endpoints in both phase III trials, enhance one and Ian and enhance too.
Karen: Statistically significant for improving lung function.
Karen: COPD is the sixth leading cause of death in the U S.
Karen: Yeah.
Speaker Change: Now, let's turn to Merck's cap vaccine another recent pipeline win.
Karen: Got back Steve previously known as the Li 116 is a novel Pneumococcal 21, valent conjugate vaccine that received FDA approval on June 17th for.
Karen: For the prevention of invasive pneumococcal disease, and pneumococcal pneumonia in adults D.
Karen: The F D. A summary basis for regulatory action States and I quote S.
Karen: FDA granted priority review on December 15th 2023, with a justification that have vaccine meets the qualifying criteria.
Karen: As a drug to treat or prevent serious conditions, IBD and pneumonia and provides a significant improvement and effectiveness.
Karen: Over currently licensed pneumococcal conjugated vaccine.
Karen: And quote.
Karen: Have vaccines, but typically designed for adults that includes eight streptococcus pneumonia serotype not covered by other currently approved pneumococcal vaccines on the market today.
Speaker Change: In their latest earnings earnings call Merck stated.
Speaker Change: Given its compelling clinical profile, we expect that have vaccine will achieve a majority market share in the adult setting.
Karen: Citibank.
Speaker Change: Slide 18 frames up our financial results in more detail like I mentioned, we reported total second quarter revenue of $41 5 million, which is which is 58% above the $26 4 million, we reported in the prior year quarter.
Karen: The increase in total revenue was due primarily to the milestones we earned from the regulatory approvals of <unk> Barry <unk>.
Karen: <unk> <unk> and <unk>.
Karen: Royalty revenue increased to $23 2 million from $20 9 million in the prior year quarter with the growth driven by an increase in sales of <unk>, which reported sales up $27 1 million this quarter versus $3 5 million in the prior year quarter. As a reminder, we own we earn a 9% royalty on sales of <unk>.
Karen: Sorry.
Karen: Other major contributors to royalty revenue. This quarter include Jazzes Riley's with reported Q2 sales of $107 8 million and <unk> <unk> with reported sales up $189 million.
Karen: We believe these royalty assets along with the recently approved products as well as cars EBA will continue to drive royalty revenue growth in the future.
Karen: Captisol sales were $7 5 million in the second quarter of 2024 versus $5 2 million in the prior year quarter with the increase due to timing of customer orders.
Karen: We had cash and short term investments of $227 million, which includes $53 million of our holdings in Viking common stock we.
Karen: We expect that our current cash plus annual cash flow generation will be sufficient to fund the investment activity, we anticipate over the foreseeable future.
Unknown Executive: We did not sell any shares of Viking stock this quarter.
Karen: We did not sell any shares of Viking stock this quarter.
Karen: However, we did enter into a call option agreement to hedge against Viking's stock price fluctuation risk.
Karen: We recorded a $15 2 million unrealized gain associated with the color option agreement in Q2, 24, and the value of that derivative asset is classified in other current assets.
Karen: In addition, this quarter, we expanded our credit facility with Citibank by $50 million and now have $125 million available to us under that credit facility.
Karen: Turning now to guidance under slide 19.
Karen: As mentioned earlier, we are reaffirming the updated 2024 financial guidance. We gave on July eight in conjunction with the <unk> acquisition announcement.
Speaker Change: We expect 2020 for royalty revenue will be in the range of $100 million to $105 million sales of Captisol in the range of $25 million to $27 million in contract revenue in the range of 15% to $25 million.
Karen: These revenue components resulted in total revenue guidance of $140 million to $157 million and adjusted earnings per diluted share of $5 to $5 50.
Speaker Change: For record body. This is a growth asset I think if you go to their earnings are the most recent earnings announcement their oncology franchise.
Speaker Change: Net revenue of 117 million euros, which was growing at a rate of 22, 7% and they said that was mainly driven by car zieba with continued growth.
Speaker Change: So that's another product that we don't have a royalty on.
Speaker Change: But.
Speaker Change: The obvious this is a growth asset it's been on the market for seven years, but it continues to penetrate new territories and regions. In fact, just last month, we secured an approval in South Korea, and we see this growing for the foreseeable future, which is why we were eager to bring into the ligand portfolio.
Speaker Change: And then lastly, I would just add if you want to check if you want to take a look at slide five we do have that layered into our longer term outlook. If you wanted to get a sense.
Speaker Change: For our view on that on that royalty stream.
Speaker Change: Got it alright, thank you very much congratulations on the strong quarter.
Speaker Change: Yeah.
Speaker Change: Thank you.
Speaker Change: Your next question comes from the line of Douglas <unk> of RBC capital markets. Please go ahead.
Douglas <unk>: Yes, good afternoon, a couple questions.
Douglas: First one maybe if you could talk about <unk> 24 and the.
Speaker Change: Look and maybe sizing potential deals that you are contemplating I believe you'd like to spin.
Speaker Change: 200, maybe $250 million a year.
Speaker Change: For these investments and I'm just wondering if.
Speaker Change: We're thinking about things in the range of 25 to 75 through to the end of 2024.
Unknown Executive: Yes, we've got that factored into our forecast, contract revenue forecast for the year, and the company Rona has said that they do plan to launch. And if it's not in Q3, probably in Q4.
Unknown Executive: So give us some time, but we hope to have, frankly, a greater yield on those activities going forward.
Speaker Change: Greater yield on those activities going forward.
Speaker Change: Awesome. Thank you I appreciate it.
Speaker Change: Yes.
<unk> Prasad: Your next question comes from the line of <unk> Prasad with Barclays. Please go ahead.
Michelle: And good afternoon. This is Michelle on for <unk>. Thanks for taking our question and the question is ball the Cup vaccine based on the chart on Slide 16. It seems like you guys are expecting a relatively rapid uptake from 294 to 196 with around 500 in the meeting annual sell seen year time.
Speaker Change: 96, so with that would you gave us a ballpark range of how much of these asshats could drive your royalty revenue growth for the next three years and with a vaccine you raise a good benchmark to coffee there. Thanks.
Speaker Change: Yeah, I guess that would want at first.
Speaker Change: I would say that the chart. There that you referenced is that those are analysts' consensus numbers and then if you wanted to get a sense for how we think that how that plays out.
And on the top line royalty revenue stream going out to 2028 I would just refer you to slide five.
Speaker Change: Got it.
Pam: Your next question comes from the line of Larry Solow with CJS. Please go ahead.
Speaker Change: Your next question comes from the line of Larry Solow with C. J S. Please go ahead.
Lawrence Solow: Good afternoon. I echo the congratulations on an active and good quarter. I guess the first question, just to clarify, so the guidance change, which you did a few weeks ago, essentially 10 million of the royalties, that's from the payroll acquisition, and then
Larry Solow: Good afternoon.
Speaker Change: I Echo the congrats on our active and in good.
Larry Solow: Quarter.
First question just to clarify so the guidance change, which you did a few weeks back essentially $10 million.
Speaker Change: Our royalty that's from the pyrone acquisition in them.
Speaker Change: And there is timing.
Speaker Change: And there's the milestone payments for the remainder.
Larry Solow: Basic and essential items that decorate your have you got that right Larry.
Speaker Change: Okay, Great and then the and then I'm just curious just on sourcing so it looks like you acquired this asset for basically about five times royalty.
And it sounds like its not there is some it's growing and doesn't include the U S, which could potentially accelerate growth.
Speaker Change: Just curious on how this asset came about sourcing of it.
Speaker Change: And whatnot without.
Larry Solow: Any secret sauce, but just curious if there's anything you could share.
Larry Solow: Yeah.
Speaker Change: There's a lot of.
Speaker Change: Effort that goes into our origination efforts, but I'll, let Paul answer that since he actually originated that deal.
Paul: Yes, it's a great question I.
Paul: I guess the short of it was proprietary opportunity there were some relationships involved that go back many years and the reason why we were able to securities because we were able to acquire the shares for the selling shareholders.
Paul: There are significant benefits to them from a tax perspective, and so it really made a license on both sides of the transaction and obviously our teams experience in diligence and underwriting these types of complex.
Speaker Change: Cross border.
Speaker Change: His actions came came into play so.
Speaker Change: It just made a lot of sense and there are some future earn outs that were referenced in the press release, and so really where we are have to be.
Speaker Change: Proud owners of.
Speaker Change: IRA.
Speaker Change: Got it great and if I could just switch gears and squeeze one more in just on the on the backs of just another follow up question on that.
Speaker Change: Again, not looking at the Florida is an exact science, but it looks like based on what back new Vantiv today and in my limited knowledge on this market is this.
Speaker Change: The pneumococcal vaccine in the market in general right I guess, its adult and pediatric side as the adult market today.
Speaker Change: As big or even bigger than the pediatric I guess this question a and then B is this <unk> recommendation.
Speaker Change: Change from what the historical or standard of care is today.
Speaker Change: Okay. That's it thanks.
Speaker Change: Yeah, I mean, I can I can give you my perspective on on backs new Vance.
Speaker Change: Formerly known as the 114, and so that that program is trending towards blockbuster status.
Speaker Change: With Merck.
Speaker Change: That backs it.
Speaker Change: We're not quite sure what how the dynamics will play out there with the existing product.
Speaker Change: Pfizer's prep and are clearly the market leader I think Ed you know six months to $7 billion market, there and so yeah.
Speaker Change: Oh analyst analysts expect a cut back to two.
Speaker Change: We show on the chart there too to eclipse the $1 billion Mark as well. So we're excited about that that that royalty stream coming in the future, but it's still it's still early.
Speaker Change: Okay.
Speaker Change: Alright, thank you.
Pam: Again, if you would like to ask a question, press star then the number one on your cell phone keypad.
Speaker Change: Again, if he would like to ask a question press Star then the number one on your telephone keypad.
Speaker Change: Okay.
Speaker Change: Sure.
Speaker Change: Yeah.
Speaker Change: Good morning.
Bob: Hey, Bob.
Speaker Change: If there are no more questions I'll wrap up.
Speaker Change: Okay.
Speaker Change: Thank you everyone for joining today's call and we look forward to updating you on our company progress in the next quarterly call.
Speaker Change: November okay.
Speaker Change: Okay.
Speaker Change: [music].