Q3 2024 Travere Therapeutics Inc Earnings Call
Speaker Change: Good morning and welcome to the Traveard, therapeutics, third quarter, 2020-44 financial results conference call. Today's call is being recorded.
Speaker Change: At this time, I would like to turn the conference over to Nivi Nehra, Vice President of Corporate Communications and Investor Relations. Please go ahead, ma'am.
Nivi Nehra: Thank you, Sally. Good morning and welcome to Turea Therapy, the third quarter 2024 financial result in corporate update call. Thank you all for joining.
Speaker Change: Today's call will be let by our president and chief executive officer, Dr. Eric Dube, Ayrich, will be joined in the prepare of remarks by Dr. Jula Inrig, our chief medical officer, Peter Heerma, our chief commercial officer, and Chris Cline, our chief lineage officer.
Speaker Change: Dr. Bill Roe, Senior Vice President, every research and development will join us for the Q&A session.
Speaker Change: Before we begin, I'd like to remind everyone that statements made during this call regarding matters that are not historical facts.
Speaker Change: A full interview statement within the State Cover provisions of the private security's litigation with formats of 1995.
Speaker Change: for the St. Louis Art not guaranteed this performance, being well known in unknown risks on certain peace and assumptions that may cause actual results for performance and achievements to divertiturally from those expressed for employee-by-the-state men.
Speaker Change: Please see the board looking statements disclaimer on the company's press release issued earlier today, as well as the risk factor section in our form 10Q and 10K files with the SEC.
Speaker Change: In addition, any forms of constateness to represent RVs only as the dates that statements are made up to a 31, 2021, 24, and triggers specifically to claim any obligations to update the statements to reflect future information events or circumstances. Without letting out during the call over to Eric.
Eric Dube: Thank you, Nivi, and good morning everyone.
Eric Dube: Our team has delivered another exceptional quarter, advancing our leadership position in rare nephrology with the full approval until sparking for IG and prophecy and the ongoing commercial launch.
Eric Dube: As you will hear shortly from Peter, our commercial team's execution resulted in continued strength and demand, more than 30% growth in that sales over last quarter, and a recent acceleration in new patient-start forms following full approval and the draft Kadeigo guidelines.
Eric Dube: Our vision for Phil Sparich to become foundational care in again is clear and we are making great progress towards achieving this.
Eric Dube: As we look ahead, there are tangible growth drivers that we believe will enable us to reach significantly more patients with again.
Eric Dube: He's included the full approval label, which now provides the ability to educate the neurology community on the incredibly strong two-year data.
Eric Dube: The updated draft can ego guidelines which should drive nephrologist to treat more ambitiously.
Eric Dube: and useful sparring foundational care and the growing body of data providing further support for earlier treatment with sparring and paving the way for use in combination with other medicines.
Eric Dube: I am pleased to share with you.
Eric Dube: We also recently submitted an S&DA to modify the frequency of liver monitoring in the Phil Sparie Rams.
Eric Dube: If this modification is approved, it represents another step forward in improving access for patients as it would align their liver monitoring with regular schedule of lab work while maintaining patient safety as a key priority.
Speaker Change: Moving beyond I can, the recent recommendations of the parasol group offer new hope to the FHGS community. As a reminder, there are currently no medicines approved and few in development for this progressive rare kidney disease.
Speaker Change: Specifically, we were very pleased that this group of experts, including representatives from FDA, aligned around a potential protein-urrea-based clinical trial endpoint for FSGF.
Speaker Change: Jula will touch on this shortly, but when we look at the data from our duet and duplex studies, to a the largest prospective controlled study ever completed in FFGS.
Speaker Change: We see a statistically superior reduction in proteinuria with sparsentin compared to maximum dose standard of care across multiple proteinuria thresholds and time points.
Speaker Change: We now have a meeting with FDA scheduled where we look forward to reviewing these data in the context of the parasol findings with the goal of establishing a path to an S&DA submission for an FST SNDCation.
Speaker Change: We anticipate being able to provide an update on our discussions by our Q4 earnings call.
Speaker Change: and Parallel, we are working diligently in preparation of an S&D-8 filing. If we are able to submit, we would anticipate a potential full approval for Sparscent and NFSGS next year.
Speaker Change: Lastly, we're continuing to expand access to Phil Spore outside of the US with our partner CSLV4 and Renella Farmo.
Speaker Change: Under CSLB force leadership, those firing has now launched in two key European markets, Germany and Austria. And recently received temporary marketing approval in Switzerland. We look forward to continue progress and they launch in other countries. Now, let me turn the call over to Jula. Jula?
Jula Inrig: Thank you, Eric. I'm pleased to provide a medical perspective following the full approval of Phil Spari. And the increasing confidence we hear from nephrologists about Phil Spari's role as a foundational treatment for patients with IGNisropathy.
Jula Inrig: This confidence is rooted in filth-fari compeling clinical profile, as the only kidney targeted medicine which blocks two pathologic processes, end of the 11 and Anger-Tenson 2.
Jula Inrig: These two pathways work together to amplify information and kidney injury in IJ Nehraopathy.
Jula Inrig: Our growing scientific evidence demonstrates that so far, as the only dual endothelin and angiotensin receptor antagonists, significantly reduces proteinuria and preserves kidney function for patients with eye-jane property.
Jula Inrig: We just attended ASN Kidney Week in San Diego, the largest worldwide gathering of nephrologists.
Jula Inrig: Hi, I'm Anne Crotteau, and I'm a student at the University of New York.
Speaker Change: Data Supporting the use of Del Spari Early Entreatment
Speaker Change: As well as early data paving the way for potential combination use with other medications.
Speaker Change: I'll briefly highlight some of these data sets.
Speaker Change: First is a Spartan study of newly diagnosed Rasm inhibitor nii patients with IGNFopathy, which showed that the farest reduced protein area up to nearly 70%.
Speaker Change: With approximately 60% of patients in the study achieving complete remission through 24 weeks.
Speaker Change: and EGFR was stable throughout the measurement period.
Speaker Change: Also, as part of Spartan, we examined initial human mechanistic data, which demonstrates that so far he reduces an important inflammatory biomarker called urinary CD163.
Speaker Change: This biomarker is recognized as highly predictive of eye-dancing disease progression.
Speaker Change: The magnitude of CD-163 reduction that was seen with so fari has only previously been seen with a systemic immunosuppressives.
Speaker Change: These clinical data are consistent with our three clinical models and support the kidney targeted anti-inflammatory mechanism of self-sari.
Speaker Change: They're also promising, given so far, is the only non-monitor-president treatment available for patients with hygiene and properties.
Speaker Change: We look forward to presenting more data from Spartan on how to feel sparring impacts important pathologic processes that cause kidney inflammation and injury in patients with eye-dance at upcoming meetings.
Speaker Change: We also presented promising data in patients from contact with lower ranges of proteinuria, less than one gram for grants and should treatment with filth bars reduced proteinuria and preserved kidney functions similarly to patients with higher ranges of proteinuria.
Speaker Change: This is especially important given the recent draft KD Go Guidelines, calling for physicians to diagnose and treat all patients above 0.5 grams per day or even 0.3 grams per day.
Speaker Change: Uniquely, we also showed encouraging data on patient-reported outcomes that suggest that treatment with the sparring versus herbisartants can improve a patient's burden of kidney disease.
Speaker Change: Lastly, an IBM, consistent with the growing approach of using multiple treatment options for patients with digene of property. We presented compelling efficacy and safety data in combination with STLT-2 inhibitors and amino acid presence.
Speaker Change: Both from real world youth, as well as from our open-labelled extension study. We expect this will provide an astrologist with even greater confidence in using Safari as foundational care.
Speaker Change: In a late breaking session at ASN, we also presented exciting new data in high-risk subgroups of genetic SSGF patients who were historically the most difficult to treat.
Speaker Change: The data demonstrated that our sentient was able to deliver a rapid and sustained propinary reduction in high-risk patients with genetic FSCS.
Speaker Change: including only a Sarsent Entry to Patient Achieving Complete Remission and Low Rates of the Kidney Failure Composite Empoint compared to Urbicartan.
Speaker Change: The efficacy of first-sentiment patients with genetic SSGS was consistent with the overall due sex due-plex populations, which is promising given the sub-supervephus GF patient is typically resistant to treatment.
Speaker Change: From a regulatory perspective, we have submitted an S&DA for a modification to our rent for Safari and IJ Nehra Puppy, request a change in our liver monitoring frequency from monthly in the first year to quarterly.
Speaker Change: We remain confident in the safety profile of Phil Spari, especially given increased patient exposure from our clinical trials and commercial use, which continued to demonstrate no change in the low rates of asymptomatic LST elevation.
Speaker Change: and no cases of driving this liver injury.
Speaker Change: That's we believe we now have the data to support the proposed change to the liver monitoring frequency within our rims and have aligned with the FDA on the presentation of the data package, but them to consider the request.
Speaker Change: Quarterly monitoring of liver function is what was used in our clinical trials, and it aligns well to the regular testing of the patient's undergo with their nephrology.
Speaker Change: We have requested priority review of this ram's submission with the potential for this modification to occur in the first half of next year.
Speaker Change: Let me now turn to SSGS to discuss the recent data from the Parasol Initiative, as well as our plans for a potential SNDA submission, 4% in the SSGS.
Speaker Change: The Parasel Group held their public workshop in Early October and we were encouraged by the input of the patient community, thought leaders, regulators, and industry who came together with a common goal to identify a path forward for medicines to be approved for the FSGS community.
Speaker Change: During the workshop, participants heard firsthand from patients and family members.
Speaker Change: Dory's a perseverance and a hope for a better future, such as an eight-year-old's wish to leave the hospital to attend his sister's third birthday.
Speaker Change: These compelling stories are a constant reminder that the data reviewed at Parasol are from people living with a rare kidney disease with no approved treatment options.
Speaker Change: and our view the Parapole meeting was as successful as the consensus from the workshop which reviewed comprehensive analyses for more than 20 databases encompassing over 1600 children and adults with FSGS.
Speaker Change: Reply vent of potential news platforms for regulatory approval in FSGF.
Speaker Change: A walk through some of the key findings in the Parasoul work and how we believe data from our Extension Programp Cline
Speaker Change: First, due to the relaxing and remitting nature of FFGS, there is clearly too much variability in [inaudible]
Speaker Change: This was Evident in our due-plex data set, the largest randomized study run in FFGS to date.
Speaker Change: Second, Reduction and Crote Nuria over 24 months is strongly associated with a reduction in the risk of kidney failure in FSGF patients.
Speaker Change: including responder definitions based on thresholds of protein area that are both biologically plausible and strongly supported by epidemiologic data.
Speaker Change: We have seen this response consistently across both our Phase 2 duet and Phase 3 duplex studies.
Speaker Change: In duet, we saw significantly more patients achieve the modified pressure admission endpoint with our sent-end versus herbicirton, and in the open-legal extension portion of the study, with approximately four years of follow-up on the sent-end. 43% of patients achieved complete remission.
Speaker Change: Among those patients who achieved complete remission with Sparsantin, which was roughly an 80% reduction in court-nuria over time, they had a significant list while we're rate of loss of kidney function, approximately 1 mil per minute per year.
Speaker Change: and negligible rates of kidney failure.
Speaker Change: In Dube Flex, Percenton Demonstrated is statistically significant and clinically meaningful treatment effects on the modified partial remission endpoint at 36 weeks, and this treatment effect is durable to 2 years.
Speaker Change: and as published in the New England Journal of Medicine and its supplement, we see that multiple pre-specified thresholds of print-neryeths, from 1.5 grams for grams, down to 0.3 grams for grammar complete remission. For a sentence demonstrated a statistically significant treatment effect versus herbisartin.
Speaker Change: Notably, the magnitude of the treatment effects became even stronger as the Crop Norea thresholds got more stringent.
Speaker Change: and Wild Duke-class was not powered to share statistically significant treatment effects on hard outcomes. The race of kidney failure were nearly doubled with Urbicart and versus Parcenten, with a meaningful 42% reduced risk of kidney failure.
Speaker Change: Third, there needs to be clear biologic possibilities for how a potential therapy works to reduce prognoria and or preserve kidney function.
Speaker Change: With Protoneria as an indicator of potocyte injury, it is in the mechanistic pathway leading to kidney failure in FSGS.
Speaker Change: and in our pre-clinical data, some of which was recently featured in the journal of Clinical Investigation Insights. For attention, light's improvements in prototype number, familiar-ler-key mode dynamics.
Speaker Change: Bell functions and tissue repair, resulting in reduced proteinuria and preserved kidney function.
Speaker Change: Most importantly, FDA was a key stakeholder in the parasol initiative, and through these findings, Prognaria is now expected to be used as a validated surrogate endpoint for full approval in SSGS Dling Board.
Speaker Change: These data were gently-centered at ASN Kidney Week and were received with enthusiasm and support from the community.
Speaker Change: Overall, we believe that our data from Duit and Duplex align very well with the conclusions from the Parathal Group.
Speaker Change: Our next step will be to discuss our data with the FDA to understand their perspectives now in the context of the Parasal Work and a potential path forward for an FSTS indication.
Speaker Change: And Eric mentioned we now have a meeting scheduled with the FDA and we're preparing a robust breathing book that will align with the recent parasol work to discuss the potential for filing an S&DA for Spurs Menton in FSCS.
Speaker Change: In Parallel, we are preparing the S&DA so that we will be in a position to move quickly following our SDA interaction.
Speaker Change: I'll now briefly touch on Tech to that fattening as it remains the only development program that has the potential to be disease modifying for the HCU community who deserves better treatment.
Speaker Change: While we recently announced a voluntary pause in enrollment in our Phase 3 Harmony Study due to necessary commercial scale-up process improvements, we continue to have the utmost confidence in the program and in our team's ability to restart enrollment as quickly as possible.
Speaker Change: We are grateful for the continued support of the HCU Community and our supply partners.
Speaker Change: Overall, we've made incredible progress with the story and it's passed to foundational positioning in Ijana property.
Speaker Change: And we look forward to our upcoming regulatory engagement on the potential to deliver sports sense and depotions with FFGS. Let me now hand the call over to Peter for the commercial update, Peter.
Peter Heerma: Thank you, Jula, and good morning, everyone.
Peter Heerma: During the third quarter, we continued our strong and focused launch execution of Phil Sparier for IGN and Fruppity, while also preparing to build upon our success with full approval and the draft KBU guidelines.
Peter Heerma: And I couldn't be more pleased with this strong results driven by our telemethod and dedicated teams.
Peter Heerma: From a demand perspective, we continue our strong growth trajectory and again, add a more than 500 new patients' cause farms during the Citter Quarter.
Peter Heerma: is in particularly note words, given that we encountered some seasonality as the typical during the summer holidays, as well as the fact that we took our field force out of the field for an entire week to train them on the new label after full approval on September 5th.
Peter Heerma: And I'm very encouraged with the upward inflection in new patients' platforms in the week following full approval.
Peter Heerma: As we highlight its prior to approval, we anticipated that the manhood increase and the sufficient pressure at the trial's faric to more of their patients in new physicians' low rights prescriptions for the first time. And we have seen clear evidence of this coming through with provides added donations to our outlook.
Peter Heerma: We also demonstrated continuing efficiencies in our full film of process, while maintaining high patient compliance and persistence your rates.
Peter Heerma: This has resulted in 35.6 million dollar in net bright sales of sales barri in the third water representing more than 30% gross quarter over quarter gross.
Peter Heerma: With our execution, we continue to perform the most recent Grand Foul of the Alliance's prior to Phil Spari on all guard-launch metrics. And we are on track to outperform these dense marks on net revenue in the first full year of launch.
Peter Heerma: We are even more excited about the opportunity ahead of us.
Peter Heerma: As I outlined during our Eigen Full of Provo Call last month, Phil Sparish knew label is allowing us to further accelerate Phil Sparish growth trajectory for two reasons.
Peter Heerma: One, we can now leverage the full potential of your sparring in our physician communication and educational initiatives.
Peter Heerma: This is important because under accelerated approval, we have limited in our commercial communication efforts to discussing only proteoria.
Peter Heerma: The now with full approval in our compelling label, we can discuss how salespires repot and sustain protonuria reduction translate into superior long-term kidney function preservation relative to active comparator and maximum dose per without long.
Peter Heerma: and the Skinny Perservation Benefit accrues year over year, over the course of the two year measurement period, supporting long-term use of field sparring.
Peter Heerma: and two, the new Indications Statement supports broader use of self-powering in any adult patients with an idea in a frotty who is at risk of progression.
Peter Heerma: As a reminder, the full provol significantly expands the eligible patient population beyond the accelerated approval in the case of statements that guided physician to general hearing generally use cell-styrene only in patients at or above 1.5gm.
Peter Heerma: With our broader indication and the exciting data that was presented at the A's in last week, showing the patients below one grant program, also benefited from those firing, we are eager to reach these patients who can operate their foundational treatments.
Peter Heerma: These messages resonate well with the phroviest and are representatives of what we heard from the broad community of key opinion leaders and community decisions at A.H.M. last week.
Peter Heerma: And as I mentioned earlier, we are very encouraged by the demand of the egg we are seeing in the first month's post full approval.
Peter Heerma: The recently published draft KD Go Guidelines
Peter Heerma: are already being referenced by nephrologists and expected to build further momentum.
Peter Heerma: These draft guidelines emphasize the urgency to diagnose and treat patients earlier and more aggressively.
Peter Heerma: More specifically, they go for every eye-gamp patients who isn't in the room to be treated with a kidney-targeted medicine. In highlight that Phil Spire is the only medicine to have shown superiority over in trial, up-dite-rated rats in the room.
Speaker Change: Before Henry the call over to Chris.
Chris Cline: Let me share an eye-again story that exemplifies why we are so excited about the impact that Phil Spari is having on patients.
Chris Cline: His patience recently shared in one of our national broadcasts that he looks forward to taking so sparring every morning, because he is in complete remission and feeling great.
Chris Cline: Giddys Crotte, receiving his lab results and, again, to get an A plus on a school report card.
Chris Cline: Well, this is the result of only one patient and another effective result. We hear similar stories regularly. And these are the types of stories that motivate our teams every day.
Chris Cline: And we know there are so many more people living with IGN of property who can benefit from the treatment that has shown superiority over maximally those rise in the vision.
Chris Cline: and how Phil Sparish Convenience, one's daily, oral, kidney target and non-immunic address of profile provides new hope.
Chris Cline: With our strong U-Label, the draft KDU guidelines and focus execution, we are confident in our ability to reach these patients.
Chris Cline: Accelerating our growth trajectory and establishing Fields Barrier SD Foundation, treatment option for IGN for up to patients.
Speaker Change: Let me know what you're going to call over to Chris for the financial update. Chris?
Chris Cline: Thank you, Peter, and good morning. During the third quarter, our execution led to a significant increase in net product sales and discipline investment in the areas we believe will drive growth.
Chris Cline: Net Products sales for the third quarter of 2024 for a $61 million, compared to $33.9 million for the same period in 2023. This increase of approximately 80% is attributable to strong performance in the ongoing US launch of Sospari and IG in a property.
Chris Cline: During the quarter, we also recognized $1.9 million of licensed and collaboration revenue, which resulted from $62.9 million in total revenue report to the period compared to $37.1 million in the same period in 2023.
Chris Cline: Research and Development expenses for the third quarter of 2024, we're $51.7 million. Compared to $60.6 million from the same period of 2023.
Chris Cline: On a non-gap adjusted basis, R&D expenses were $48.4 million for the third court South 24 compared to $53.8 million for the same period in 2023.
Chris Cline: selling General Administrative expenses for the third quarter of 2024 or 65.6 million compared to $67.8 million.
Chris Cline: and Unknown Gap, adjusted basis, SGA expenses were $49.7 million, but they're a quarter to $24 compared to $51.8 million for the same gear to $2,000, 23.
Chris Cline: The decline in year of year operating expenses is attributable to the restructuring enacted at the end of 2023 and reduced clinical expenses as a sparsented Bay of three studies advanced towards completion.
Chris Cline: Importantly, we continue to invest in evidence generation to support post-Farionizing the prophecy and potentially FSSGS, as well as continue to invest in commercial efforts in IGNF prophecy. Now, it's full approval and drug kidding of bad lines and hands.
Chris Cline: So the other income, Net for the third quarter of 2024, was $1.3 million, compared to $3.4 million, she didn't seem here at a 2022 trade. The difference is largely attributable to decrease in interest income.
Chris Cline: That loss, including from discontinuoperations from the third quarter of 2024, was $54.8 million or $70 per basic share, compared to an income of $150.7 million or $1.97 per basic share from the same period of 20.3.
Chris Cline: A non-gap adjusted basis, net loss, including from discontinued operations for the third quarter to 24, with $35.6 million, support a six-cent per basic share, compared to net income of $173.5 million, or $2.27 per basic share, for the same period in 2023.
Chris Cline: The difference is largely a turbidlet to again related to the sale of the biolastic products which was recorded in the third quarter of 2023.
Chris Cline: As a September 30, 2024, the company cash, cash equivalents, and marketless securities of $277.4 million. We continue growth until Spari Sails, measured investments, including shifting to some of our investments and picked up at Nats Beyond 2025. We continue to expect our cash use to decline over time.
Speaker Change: Thanks, well, let me first say that I'm incredibly impressed with what we've seen and I'll ask Peter to talk about the dynamics, particularly what we've seen since full approval theater.
Peter Heerma: Yes, Thank you Eric and thank you all for the question.
Peter Heerma: Let me talk to say that I'm really pleased how we have continued our growth trajectory during the accelerated approval period and how we have outperformed reason ran nephrology benchmarks.
Peter Heerma: To the point and what I mentioned in the prepared remarks in Q3, we saw some typical summer seasonality and we also took the teams out of the.
Peter Heerma: The field for a week for training for full approval. So I'm actually really pleased with the continuation of strong growth over 500 patients start forms.
Peter Heerma: But I'm most excited about the opportunity ahead of us and how we will accelerate momentum based on the full approval.
Peter Heerma: And to what I said in the prepared remarks, the demand uptake we are seeing in the first months. After full approval is really encouraging and allows us to end the year strongly.
Speaker Change: Great. Thank you so much.
Speaker Change: Our next question.
Speaker Change: Is from the line of the meal demand with Guggenheim Securities. Your line is open.
Speaker Change: Hi, and it's the same.
Speaker Change: Yeah on colonial congrats on all your progress and thank you for taking our question.
Speaker Change: The agents so that brackets around the target that the agency would has has seemed to align around.
Speaker Change: We're not doing a lot of post hoc analysis ahead of that meeting. So we will go in with the data that we have and work with them on what additional analyses they want to see and in that submission and get that aligned so that we have in the file everything they need to complete their review.
Speaker Change: View.
Speaker Change: Yeah. Thank you Bill and I'll point, you all to our corporate presentation, which is posted on our website. If you look at slide 29, you can see very nicely laid out the treatment effect across those different pre specified thresholds clearly showing.
Speaker Change: Ah benefited superiority for sports center and over Irbesartan NFS, Yeah. Thanks Bill.
Speaker Change: Thank you.
Thanks Harlan.
Speaker Change: The next question is coming from Greg Harrison with Scotiabank. Your line is open.
Speaker Change: Good morning, everyone and congrats on the quarter. This is Joe Thomas on for Greg.
Just one kind of on the patient and physician education front can you maybe comment on any ongoing efforts or opportunities you might have to help patients be getting diagnosed earlier and treated earlier based on the recent draft guideline update thank you.
Peter Heerma: Thanks, Joe Peter.
Peter Heerma: Payers are willing to reimburse her patients that start below.
Peter Heerma: Below one gram.
Peter Heerma: Hum.
Peter Heerma: You know given that your trial enrolled patients that.
Peter Heerma: We're above that.
Peter Heerma: Is there any.
Peter Heerma: Has there been any resistance there from payers. Thank you.
Speaker Change: Thanks for the question Peter I'll turn it over to you and it might also be helpful to talk about how these patients are at risk based on the radar data to frame for you.
Peter Heerma: Go ahead.
Peter Heerma: Yes, maybe.
Peter Heerma: And then last point, maybe it's good to start out patients.
According to the radar registry data sets.
Peter Heerma: Patients.
Peter Heerma: Even <unk> five gram per Gram of course in Europe, but it's still like a 22% chance that they progressed to dialysis or kidney failure within 10 years.
Peter Heerma: So this is a progressive disease.
Peter Heerma: Payers are also recognizing the progressive nature of the disease.
Peter Heerma: We have invested quite a bit in education.
Peter Heerma: Payers as well on this aspect.
Peter Heerma: On your specific question with regards to like how quickly.
Peter Heerma: Is adopting a new guidelines as well as our new label, but we have an active accounting that is focusing on this and really pleased with the progress we are making with some of the authorization criteria are already being updated.
The majority that's the reality is early in the year early in 2025, because we are seeing good uptake and we also start to see that patients with lower proteinuria levels are being treated with pillsbury now.
Speaker Change: Thank you.
Speaker Change: Thank you.
Our next question is coming from Alex Thomson with Stifel. Your line is open.
Speaker Change: [music].