Q4 2024 Neurocrine Biosciences Inc Earnings Call
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Speaker Change: Good day, everyone and welcome to today's Neurocrine Biosciences reports Q4 and fiscal year 2024 earnings call. At this time, all participants are in a listen only mode.
Speaker Change: Later, you will have the opportunity to ask questions. During the question and answer session.
Speaker Change: Please note today's call will be recorded and I will be standing by should you need any assistance it.
Speaker Change: It is now my pleasure to turn the conference over to Vice President of Investor Relations Todd too slow.
Todd: Thank you and a good Thursday afternoon, everyone welcome to Neurocrine Biosciences fourth quarter and full year 2024 earnings call. Joining me today are Carl <unk>, Chief Executive Officer, Matt Abernethy, Chief Financial Officer, Eric benefits, Chief Commercial Officer, and I read Roberts Chief Medical Officer.
Todd: During our call we will be making forward looking statements. These statements are subject to certain risks and uncertainties and our actual results may differ materially I encourage you to review the risk factors discussed in our latest SEC filings, we'll go to Q&A I prepared remarks, and as is our custom and with your help we will try to get every.
Carl: One's questions at this point I'll turn the call over to Carl.
Carl: Thanks, Todd and good afternoon to everyone over the last several years Neurocrine has evolved meaningfully across our entire enterprise to research and development to commercialization or 2024 results demonstrate positive impacts from this evolution and we are excited to build upon these successes with four proved medicines coming from our own efforts we entered 2025.
Carl: A fully integrated biopharmaceutical company that is strong stable and growing we are prepared to take on industry challenges and capitalize on opportunities to continue to deliver for patients and shareholders.
Carl: From a commercial perspective.
Carl: <unk> continues to set the standard eight years after introducing the first treatment for tardive dyskinesia. We are on track to once again achieved double digit year over year growth. This year, while our guidance reflects a moderated growth rate relative to 2024, which was our all time highest growth year. We are focused on all opportunities to continue to maximize it.
Carl: So congrats on that and its impact on patients.
Carl: Okay.
Carl: From a big picture perspective, congrats its differentiated profile and T E N H D Korea will enable us to do just that.
Carl: <unk> has advantages such as unsurpassed efficacy, yes, it's a complex titration in novel Sprinkle formulation for patients with difficulty swallowing and advantages in certain sensitive patient populations such as those that are part of clean air.
Carl: This strong clinically differentiated foundation ensures our ability to help many more patients fall into the latter part of the next decade, when combined with our expanded and enhanced sales organization, which was rolled out in the last quarter. We are now better positioned than ever to meet the needs of approximately 90% of 800000 tardive dyskinesia patients in the U S.
Carl: We remain currently untreated what they'd be back two inhibitor.
Carl: Just hasn't graduate transform the standard of care for TD patients, we anticipate Chronicity will do the same for people living with classical congenital adrenal hyperplasia.
Carl: As a reminder, chronicity is the first medicine, specifically designed and developed for the CAH patient community and the first new treatment option in over 70 years.
Carl: Launching a groundbreaking new treatment is not without challenges, but over time, we believe chronicity has the potential to be Newark, and second blockbuster therapies.
Carl: Looking at launch cadence, we anticipate growth for <unk> will initially be metric, but as the first in class best in class medicine for patients. We are confident in its ramp up and long term growth potential we look forward to leveraging for nasty to diversify <unk> revenue profile and drive near and long term sales growth.
Carl: Turning now to research and development in 2025, we will address new therapeutic areas advance new modality, specifically biologics and improved productivity and ultimately establish the foundation of what we expect to become a sustainable internal R&D engine of innovation.
Carl: Importantly, we will expect this enhanced productivity to deliver on average a new commercial launch every two years at steady state.
Carl: Starting this year alone we anticipate our clinical stage pipeline will grow from 12 to 18 programs by year end, which will represent the most broad and robust neuroscience pipeline in the Biopharma industry.
Carl: Importantly, we will initiate multiple phase II programs. This year, but also capital where in major depressive disorder, and MDI 568 in schizophrenia, both of which have the potential to further transform neurocrine and drive significant growth at the end of this decade and into the next.
Carl: As we entered this year with a strong foundation neurocrine is well positioned for sustained long term growth and is well on its way to becoming a leading neuroscience company with that I'll turn things over to Matt.
Matt: Thanks, Kyle 2024 was a tremendous year for nurturing with record sales growth for <unk> positive phase II data for both the muscarinic M for an E&P programs and last but not least the approval and launch of Chronicity. These achievements and then a strong foundation for Americans future <unk>.
Matt: In 2025, we anticipate an aggressive sales to be $2 5 billion to $2 $6 billion, reflecting $250 million of growth at the midpoint of the range. While the guidance range reflects good dollar growth, we saw increased competitive pressure as well as increase utilization.
Matt: Asian management by payers over the course of 2024.
Matt: This led to a slower growth trajectory heading into 2025.
Matt: We are taking proactive steps to address this including efforts to further develop and educate the TD market were still approximately nine of 10 TD patients who are not currently being treated with a <unk> two inhibitor as well as efforts to drive future sales growth growth most notably the recent sales force expansion.
Matt: In Q4 last year, which we expect will have a full impact in the second half of 2025 and beyond.
Matt: Turning to Chronicity, although not providing an annual guide we do want to provide a few thoughts as you develop your financial models for 2025.
Matt: We expect chronicity to be a blockbuster medicine, helping many patients with classic CAH for early revenues are expected to be measured primarily due to three factors first the delayed timing of reimbursement for our new rare disease product second the frequency of patient flow into offices and <unk>.
Matt: Third the Trialing that will naturally occur as clinicians obtain real world experience with the novel Medicine like Chronicity.
One additional note on <unk>, we did recognize $2 million in net sales in Q4 for initial bottle orders from our pharmacy partner in late December.
Matt: To close a few comments on our investment profile, we continue to align our operating expenses with our top two capital allocation priorities, which are number one drive revenue growth and number two advance our R&D programs, our 2025 SG&A operating expense.
Matt: Reflects a year of investment behind the Chronicity launch and also the expanded ingressive salesforce for R&D the increased investment in 2025 aligns with our previous guidance, reflecting the initiation of our two major psychiatry programs advancing into phase III neuro.
Matt: For now fully funding the <unk> program.
Matt: Please note we included $60 million of development milestones and R&D, including $35 million for Takeda and $15 million for next year are associated with the initiation of our phase III programs.
Matt: If other future development milestones are achieved we will update our Opex guide as appropriate.
Eric: With that I now hand, the call over to Eric <unk>, Our Chief commercial Officer Eric.
Eric: Thanks, Matt 2025 marks an important year of transformation and execution for our commercial organization.
Eric: With the recent launch of Chronicity, we have the opportunity to raise the standard of care for the congenital adrenal hyperplasia community and to add an important second growth driver at generic trends commercial portfolio.
Eric: Before I provide further insight on Chronicity I wanted to take a moment to highlight that 2024. It was an all time record growth year for aggressive increasing annual sales by approximately $475 million driven by increased volume continued strong compliance and improvement in gross to net dynamics even.
Matt: With this record performance as Matt highlighted.
Matt: We still have a tremendous opportunity ahead for our <unk> <unk> franchise.
Matt: With approximately 800000 people in the U S suffering from TD and less than 10% of them currently being treated with <unk> inhibitors, the foresee substantial growth potential in the years to come.
Matt: With last year's investment to expand the sales force ongoing health care provider disease State education, and direct to consumer efforts. We expect continued growth in 2025 across the psychiatry neurology and long term care segments of our business, notably health care provider turnover remains particularly.
Matt: Hi, in psychiatry, and long term care settings.
Matt: Therefore as in prior years, our commercial and medical teams continue to address the high unmet medical need for education and to motivate healthcare providers to screen diagnose and treat TD in Huntington's chorea patients.
Matt: Our 2025, and Reza net sales guidance range of two 5% to $2 6 billion contemplates the continuing growth of the beam at two class across <unk>.
Matt: Cardiac dyskinesia in Huntington's chorea and takes into account key external factors like the increasingly complex payer environment and competitive dynamics.
Matt: Looking beyond 2025 within graduate a differentiated product profile and expanded <unk> talented team and 13 remaining years of exclusivity.
Matt: We expect to maintain our position as the leader in the B mat to market. While we continue to develop the next generation of <unk> two inhibitors.
Matt: So now turning to Chronicity, we were delighted with the early FDA approval in mid December and the broad labeling for this first in class and first in disease medicine.
Matt: Following approval there is a significant level of enthusiasm and excitement across the endocrinology provider in CAH patient family communities.
Matt: Even though FDA approval came right before the holidays. We were pleased to receive 11, new patients start forms in the less than two full weeks before exiting 2024.
Matt: As a brand new medicine, Chronicity is starting out as a non formulary drugs across all health plans. Therefore in the early phase of the launch we expect the majority of patients starting Chronicity will initially be dispensed non reimbursed prescriptions via our quick start program that gets them going on treatment while reimbursement is.
Matt: <unk> secured.
Matt: For each patient our team together with our specialty pharmacy partner Panther Rx rare, we'll work through their insurance company's process to secure reimbursement and transition them to commercial product.
Matt: Intimately, we expect chronicity to be broadly reimbursed with the majority of patients paying $12 or less per month out of pocket.
Matt: Long term success with Chronicity will be driven by our ability to reach and educate the CAH community on this breakthrough medicine.
Matt: We know from our experience within graduate that this effort can take some time there are no shortcuts when it comes to building new markets are.
Matt: Our field teams have a considerable number of appointments and programs booked in the coming months to educate endocrinologists on this exciting new medicine.
Matt: We've long said Chronicity has all the hallmarks of our next blockbuster opportunity and wont happen overnight, but we couldnt be more excited about its potential.
Matt: All in all we're pleased with the receptivity to Chronicity from the CAH Committee and excited about the prospects to improve the standard of care for people living with classic congenital adrenal hyperplasia.
Matt: So with that I'll now hand, it over to my colleague Dr. <unk>.
Dr. <unk>: Thanks, Eric and good afternoon to everyone.
Dr. <unk>: Joining European over seven years ago, and Greta had just received approval for the treatment of tardive dyskinesia and our pipeline feature just three programs.
Dr. <unk>: Over time, we have transformed into a vastly different organization today and I could not be more proud of the significant progress we've made.
Dr. <unk>: Since 2018, perhaps there is no program more emblematic of this transformation on connectivity.
Dr. <unk>: We were extremely pleased with the outcome of the FDA approval process and final labeling for <unk>.
Dr. <unk>: Many thanks to the regulatory clinical development and all other cross functional team members, who successfully steered the program through development from start to finish.
Dr. <unk>: With a strong label that includes impressive efficacy and tolerability data from the adult and pediatric Registrational studies.
Dr. <unk>: <unk> has the opportunity to transform the treatment paradigm for patients with classic congenital adrenal hyperplasia.
Dr. <unk>: For over 70 years prior to <unk> approval, the only available treatment for CAH patients with lifelong treatment protocol, it's usually at high Super physiological doses.
This fundamentally flawed approach was the only option for patients and their doctors until connectivity.
Dr. <unk>: <unk> is the first and only approved non steroidal treatment for classic CAH that enables independent control of ACTH and after again, creating the opportunity for endocrinologists to work with patients and their families to reduced glucocorticoid dose to more.
Dr. <unk>: Physiologic replacement levels.
Dr. <unk>: Since approval Medical affairs field teams have been highly engaged with the endocrinology community conducting extensive educational programs to support launch means.
Dr. <unk>: Meanwhile, our clinical development effort continues to generate valuable longer term data from the ongoing open label extension studies in adults and pediatrics.
Dr. <unk>: To work towards the generation of clinical data in patients younger than four years old.
Dr. <unk>: In parallel our health outcomes teams are focused on generating important data to characterize the burden of disease in CAH.
Dr. <unk>: The value proposition of <unk> as an effective treatment for patients with CAH.
Dr. <unk>: I'll reiterate early feedback from Kols and advocacy groups has been encouraging as we bring this new treatment option to patients with greater needs, who are looking for a better choice.
Dr. <unk>: Turning to late stage programs Neurocrine phase III pipeline is also set to transform this year as we initiate multiple registrational studies, starting with <unk>.
Dr. <unk>: Potentiate, yet for the adjunctive treatment of major depressive disorder in adults.
Dr. <unk>: Last week, we announced the initiation of the first of three Registrational study of <unk> and MDT their remaining two phase III studies will initiate in the months ahead.
Dr. <unk>: Separately, we will also initiate the Registrational program for MDI 568, a M.
Dr. <unk>: <unk> selected for prosthetic agonist for the treatment of schizophrenia. Following the recent successful end of phase II meeting with the FDA.
Dr. <unk>: The positive phase II results from last year's proof of concept study gave us the confidence and conviction to rapidly advance this molecule into phase III studies as well as to initiate a phase II study in bipolar mania in the second half of this year.
Dr. <unk>: Meanwhile, our early stage, Mexico next portfolio is progressing through healthy volunteer phase, one study and notably we anticipate initiating a phase II study for the deal and one in four agonist N V. I spy 270, and acute psychosis in the second half of this year.
Dr. <unk>: The early stage pipeline continues to expand also with several programs set to advance into phase one studies, it's yet most recently with <unk> a selective dual novel 1216 goodness in collaboration with Xenon Pharmaceuticals.
Dr. <unk>: A potential treatment for epilepsy, which initiated earlier this week.
Dr. <unk>: We also anticipate the phase one study of <unk> 675, and internally developed next generation <unk> inhibitor to begin this quarter as well.
Speaker Change: Furthermore, our chief Scientific officer, <unk> <unk> and his team have made tremendous progress with our preclinical portfolio of internally developed large molecules, including peptide antibody LNG therapy.
Speaker Change: These molecules progressed through G. L. P talks in the coming months is successful they set us up very well for additional potential first in my clinic entries later this year and into 2026.
Speaker Change: In closing we felt what we believe to be one of the broadest and deepest neuroscience focused pipelines in the industry and this is just the beginning.
Kyle: With that I'll turn the call back to Kyle Kyle.
Kyle: Thanks, sorry, operator, I think we're ready to take questions now.
Speaker Change: Certainly at this time, if you would like to ask a question. Please press the star and one on your telephone keypad.
Speaker Change: Let's try yourself from the queue at any time by pressing star two.
Speaker Change: And we will take our first question from Phil Nadeau with Cowen Your line is open.
Phil Nadeau: Good afternoon. Thanks for taking our question you've been very clear that you expect a measured launch for <unk> in terms of revenue during the first half of this year. We've also guided to giving new start forms as you did today. It is a very vigorous debate among investors as to what is a good trajectory of new start forms and what isn't.
I'm curious if you'd be willing to provide any of neurocrine perspective on on what pace of new start forms swished anticipated through the first half of this year and into the second half of 'twenty 'twenty five.
Phil Nadeau: Yeah. Thanks, Phil This is Eric So first off just really pleased that we got.
Phil Nadeau: An early approval last year late last year.
Phil Nadeau: <unk> very broad label to work with.
Phil Nadeau: And obviously it gave us an opportunity to get moving a little bit before the end of the year so as.
Phil Nadeau: As we had said earlier this year at the Jpmorgan conference, we will be providing updates each quarter on the prior quarters.
Phil Nadeau: Treatment forms that have come in and that 11 represents just that.
Phil Nadeau: Few working days frankly, before the turn of the year.
Phil Nadeau: We're really pleased with the.
Phil Nadeau: Early launch dynamics here I'm really excited about the feedback that we're getting from providers.
Phil Nadeau: And I kind of comment specifically on what constitutes.
Phil Nadeau: A good ramp.
Phil Nadeau: But.
Phil Nadeau: So far so good and I'd say more than good in terms of the <unk> launch dynamics.
Speaker Change: Just a reminder, this is the first new medicine for these patients and over 70 years, so thinking about what the adoption curve might look like Phil.
Speaker Change: I think everybody is wanting to know what that would look like.
Speaker Change: As Eric said receptivity has been incredibly strong so far and I think you'd probably.
Speaker Change: Since that and all of the market checks that you win.
Speaker Change: Other investors too.
Speaker Change: So so far so good but we're early in the launch and I'm not going to claim victory, yet and we will share more detail in may.
Speaker Change: Thanks for taking my questions.
Speaker Change: Okay.
Speaker Change: We'll move next to Paul Matisse with Stifel.
Your line is open.
Speaker Change: Hey, Thanks, so much I appreciate the question.
Speaker Change: Can you expound upon mix and drives the guidance.
Looking at my model I'm really confused because you grew 26% guide is less than 10% sequentially and I know historically, you guys have giving conservative guidance, you've done a great job of BBVA.
Speaker Change: I'm just concerned are you trying to send us a greater message here that this market is actually sort of changing going into 2025 like what are you seeing during the quarter and I'm wondering if the street is just getting something here given that I think that this is.
Speaker Change: Hi, Thank you.
Speaker Change: Yes.
Speaker Change: I'll tackle that Paul So first of all I just want to reiterate that it's amazing that seven years. After the launch that we had a record growth year for <unk> in 2024, and I'm really proud about that.
Speaker Change: And as I mentioned in my prepared remarks, our 2025 guidance of $2 $5 to $2 6 billion reflects continued growth of the <unk> category.
Speaker Change: External factors, such as an increasingly complex payer environment and competitive dynamics.
Speaker Change: We're taking proactive steps to address the competition, including our recently expanded sales team and DTC and historically, we've done really well in terms of access to reimbursement and we're going to continue to provide excellent support to our customers.
Speaker Change: In order to maximize their access to and present going forward.
We have been granted a differentiated product profile and expanded and talented team a long runway of exclusivity and less than 10% of TD patients currently being treated with be Matt two inhibitors, we really expect to see continued strong growth for <unk> in 2025 and beyond.
Speaker Change: Just to add Paul This is Carla we did have our sales force expansion in Q4, which always caused some disruption and we expect that to pick up steam and help us into 2025, as we get longer into the year and certainly in subsequent years, but on the on the growth potential I think that we're ever more bullish on the opportunity for them.
Speaker Change: Starting with the differentiation over our other competitor in this space the deuterium Tetra benzene.
Speaker Change: Starting with the first dose being efficacious dose efficacy profile that we have the ability to present, a new formulation for patients that have difficulty swallowing and advantages in certain patient populations, particularly those with hepatic impairment all the reasons to believe the continued growth in the product over time. We appreciate there are some headwinds moving into <unk>.
Speaker Change: This year some of them, having to do with us and the sales force expansion.
Speaker Change: We're ever more excited about the opportunity that remains here and the vast majority of patients still arent being treated with a <unk> inhibitor.
Ahmad: And we'll move next to <unk> Ahmad with Bank of America. Your line is open.
Ahmad: Great. Thank you for taking my question mine is also running Kratsa can you talk about general expectation for Wednesday, 25, maybe comparing them to prior when Qs, which which was part of seasonality I guess.
Speaker Change: We're curious about it this year, just given expectations potentially for lowered revenue per script. This year relative to 2020 for should we be thinking that you could have a decline on quarter on quarter revenue. This year. Thanks.
Speaker Change: Yeah. Thanks, Thanks, Susan So I can't comment on the specifics of our inter quarter performance, but typically this is a challenging time of the year due to the need to get our many continuing patients reauthorized rebuilds in a timely manner.
Speaker Change: And our teams are really busy executing their plans and working with their HCP customers and with the dispensing pharmacies to minimize any treatment gaps and of course retain patients.
Speaker Change: As you know Q1 is the quarter each year with the biggest growth to net impact due to commercial copay contribution sets and.
Any incremental rebate agreements kicking in.
Speaker Change: I'll be able to provide a little bit more color on Q1 performance when we get to the Q1 earnings call, but this is.
Speaker Change: Typical for us to be working through all of these payer related issues and it's something that we've got better at each year over the course of the launch.
Speaker Change: So to be clear. So Dean you mentioned net revenue per script year over year I would just say that embedded in our guidance is an assumption that net revenue per script in 2025 is going to be very similar to what we saw in 2024, but sequentially. There is that headwind moving from Q4.
Speaker Change: Or into Q1, which is around 3% call. It this year.
The other item that I would just flag is that I am keeping an eye on ordering patterns. The way that the calendar sets itself up at the end of the quarter, there may be a little bit of noise.
Speaker Change: Obviously very hard to predict.
Speaker Change: How folks will order and we obviously don't influence that but we flag. It for you just in case it causes noise at the end of the quarter, but with largely net itself out through the rest of the year and when.
Speaker Change: B you need to.
Speaker Change: To neurocrine, so a lot of moving parts here I think our focus remains for for TD.
Speaker Change: More diagnosis get new patients being generated in our sales force is very hungry to be able to help in that regard.
Speaker Change: Yeah.
Speaker Change: We'll move next to our cash to worry with Jefferies. Your line is open.
Speaker Change: Alright. Thanks, so much a quick one on <unk> and then on the Chronicity should we expect that 60 40 market share split holding up given the evolving payer dynamic between and graduate and not Sito Youre Guide currently implies a 4% to 5% market share loss versus Capex Guide and then your teams talked about physicians will likely need to see patients in.
Speaker Change: <unk> before prescribing them Chronicity some of our kill all work has suggested otherwise how many of your new patient starts are.
Speaker Change: Actually with telehealth and how do you see that dynamic evolving over time. Thank you.
Speaker Change: Maybe I'll start with the Brexit question, what we've seen over the past couple of years is great overall growth in the category. It appears that both brands are doing quite well here I think what we will see and expect moving forward is that we continue to be the market leader and been on the profile that we have with <unk>, which we think is quite differentiating.
Speaker Change: On the <unk> piece and I'll, let Eric chime in on that one.
Speaker Change: Yes, certainly.
Speaker Change: I do think there are some endocrinologists that are.
Speaker Change: Prepared are comfortable to prescribed chronicity.
Speaker Change: Remotely virtually without necessarily an accompanying patient visit.
Speaker Change: All the work that we've done leading up to launch indicates that the majority of endocrinologists are going to want to see their patient first and have that conversation with them in person before they recommend treatment with <unk> and given the fact that it's a new medication with that totally new mechanism of action. It's understandable and then over time I think as doctors get more experience.
Speaker Change: Well get more comfortable and potentially start to initiate treatment without a patient visit corresponding.
Speaker Change: Okay.
Speaker Change: We'll move next to Cory <unk> with Evercore. Your line is open.
Cory: Hey, good afternoon, guys. Thanks for taking the question I'm wondering if you could provide additional detail on payer traction with chronicity kind of feedback thus far and how long you expect the free drug program might last thank you.
Cory: Yeah. So.
Cory: We put a.
Cory: Our system in place to make sure that when patients get prescribed chronicity that they can get on treatment pretty quickly.
Cory: Coming out of the gate here with this launch <unk> is a brand new medicine, it's not on any formularies yet. So the process is to go through a formulary exceptions process for each and every patient.
Cory: In order to get people started while reimbursement is being secured we do have a fast start program with chapter about a week.
Cory: The prescription claim hasnt been approved yet by the health plan.
Cory: Ship free free product to them to get them started and the expectation is that early in the launch most patients will require a months or possibly two months of free goods.
Cory: Before they are able to transition over to reimburse products.
Cory: <unk>.
Cory: Feedback from the health plans.
Cory: Early days yet.
What we're seeing is that as expected. Many of these patients are going on to the free goods program. Initially, but we haven't had some patients that have had there.
Cory: Prescription claims reimbursed.
Cory: Pretty quickly and they have been able to start upon on commercial product right from the get go.
Cory: So far so good and as I said before we're really pleased with the feedback that we're hearing from.
Cory: Chronologist and feedback from the <unk> community and we're confident in our ability to get reimbursed.
Cory: And to make sure that it's accessible and affordable.
Cory: We estimate that the majority of patients will pay less than $12 per month.
Cory: And Corey just an example, we had a great win even yesterday one of the major plans came out with a coverage policy that was very.
Speaker Change: I guess friendly in terms of what it would require between.
Cory: Being over the age of four.
Cory: Being confirmed diagnosed with ER with CAH and so I do think the plans understand the disease.
Cory: <unk> is doing a really good job of educating those plans and so far I would say that things are positive, but we're only five weeks into launch.
Cory: So a lot still to go but early signs are very positive.
Cory: That's helpful. Thank you.
Speaker Change: We'll move next to David Epsilon with Piper Sandler Your line is open.
Cory: Hum.
Cory: So you say utilization management related to <unk> can you elaborate on.
Cory: What that's looking like and how does that tie into your competitors behavior vis vis.
Cory: Payers in other words as your competitors getting more aggressive.
Cory: With payers in terms of positioning on plans. Thanks.
Cory: Yeah. So.
Cory: The access and affordability are really high priorities for us in our credit and historically, we've done really well with high prescription dispense rates in most patients paying less than $10 out of pocket.
Cory: Per month.
Cory: And in terms of utilization management.
Cory: That's something that evolves over the course of time and what we saw especially in the second half of last year.
Was that some of the plants, we are starting to tighten up their utilization management and really what that might look like for example is changing the criteria.
Cory: Periodically and so on.
Cory: Ultimately, we need to stay on top of that payer environment, and how plans are managing and grant and by plan basis.
Cory: We have a pretty sophisticated infrastructure to make sure that.
Cory: That we're really maximizing access for our patients we have field reimbursement specialists.
Cory: We utilized.
Cory: All the data that we have to make sure and and I should say that we also have a really good pharmacy network in place so as.
Cory: As I said in my prepared remarks, it's a complex payer environment.
Payors continue to evolve in terms of how they're managing specialty drugs and thats something that we expect to see going forward and that's a factor in our in our guidance.
Rama: We'll move next to <unk> Rama with J P. Morgan Your line is open.
Malcolm: Alright. Thanks, so much for taking the question. This is actually Malcolm cuda alone or IV pump.
Malcolm: So with regard to the <unk> guidance can you talk a little bit about the levers of growth amongst the segments are you expecting outsized growth from any one of the three segments.
Malcolm: Yes, maybe just this is Kyle I'll start the question, we generally see.
Malcolm: Gross still continue to come from the psychiatry segment.
We also see good investment a return on investment from our expansion into LTC over the past couple of years and see that being a larger portion of the business as well in combination with work.
Malcolm: The efforts in the neurology space, but I think largely still the growth opportunity remains in psychiatry.
Malcolm: Some of the.
Malcolm: The headwinds there still involve telemedicine the turnover in the offices and the best way to tackle those.
Malcolm: Through keeping TD top of mind and those different groups that are using those different aspects.
Malcolm: Aspects of telemedicine, and <unk> as well and the way to look at breaking through that is through having greater frequency of interactions and that's where the sales force comes in for us.
Malcolm: So in terms of growth overall in psychiatry, but it will come across the board and the segments that we're looking at in psychiatry LTC in neurology.
Malcolm: Great. Thank you.
Speaker Change: We'll move next to Chris <unk> with Goldman Sachs. Your line is open.
Speaker Change: Thank you, maybe if I could move to the operating expense side of the equation, particularly with the guidance now thinking about how within Grad saw.
Over the course of several years, you did have periods, where you reassessed reinvested.
Speaker Change: Our extensive levels.
Speaker Change: Confident are you in terms of the current thinking about <unk> and then reflecting upon what the potential will be in a market that obviously has some differences how should we think about your confidence in potential need to adjust either up or down or in some other way with chronicity launch. Thank you.
Speaker Change: Yes, I think the I think it's very clear within this space.
Speaker Change: The number one driver of shareholder value as revenue growth and that's exactly where we've been putting our money over the last five years and those periodic reassessment of and graduate that you referred to whether it was sales force expansion or direct to consumer advertising and then more recently another sales force expansion.
Speaker Change: So from an investment perspective, just over the last three years, you've seen I've showed tremendous SG&A leverage.
Speaker Change: From the mid 50 percents of revenue and SG&A.
All the way down to the low 40%. So the investment that you see this year and both Chronicity and the expanded sales force, it's going to be a little bit less leverage coming out of that but the expectation is that when we look at 26 and beyond we aren't sitting here today thinking that we're going to need.
Speaker Change: <unk> increase or change in infrastructure required to support both brands chronicity in and of itself being a rare disease.
Speaker Change: And the nature of the patient population, we expect this to be extremely profitable quite quickly.
Speaker Change: But that's something that will show up from a P&L leverage perspective.
Speaker Change: Do you think about 2026.
Speaker Change: We'll move next to Marc Goodman with Leerink partners. Your line is open.
Speaker Change: Yes, Matt with your comments on ordering patterns are you, suggesting that fourth quarter may have been helped by inventory into did inventories change and you're expecting maybe first quarter for that to reverse.
Speaker Change: And then I guess my question really is for Irene to talk about the and one of them for the 570 <unk> molecule that you're pushing forward can you just describe the characteristics of that product and how you expect it to be differentiated from the one that's on the market today.
Speaker Change: Yeah I'll cover the ordering pattern question really is more of a Q1 phenomenon the nature of our business our wholesalers largely order on a Monday products delivered on Tuesday, and that's when revenue is recognized typically and so when you just look at the calendar setup.
For the first quarter you only have 12, Tuesdays and then 14 Tuesdays pop up in September so it nets itself out throughout the course of the year, we don't do anything to dictate the timing of orders.
Speaker Change: This may not become an issue, but I know, it's something that I just flag just in case, if there is noise around timing of orders because of the nature of just how the calendar falls so nothing associated with Q4 that I would I would mentioned mark.
IRA: And then IRA you would you like to answer the blood screening.
Speaker Change: Yeah, Hi, Mark Thanks for the question happy to answer that.
Speaker Change: As we said in the pre closing.
IRA: Closing remarks.
Speaker Change: Akshay.
Speaker Change: Still completing the phase one evaluation of the 570 <unk> four molecule in Dot phase one evaluation in healthy subjects, we have an opportunity to profile the pharmacology associated with dose and for pharmacology.
Speaker Change: And whilst I can say that we were very confident and pleased with the results that we saw in schizophrenia, and our phase II study for <unk> and for selective agonist.
Speaker Change: Obviously potential for a dual agonist to add additional potential benefit in areas such as cognition through the one effect and so for that reason, we are very keen to take that molecule forward in the second half of this year to test it in a phase II study of schizophrenia as well.
Speaker Change: Are there obvious differences versus corona's drug.
Speaker Change: Corona extra visa Pan muscarinic agonist. So it is not only hits and one in four but also the other muscarinic Scott.
Speaker Change: Scott tight from end to end <unk> and Thats. The reason why the peripheral trustee and has to be added to the co benzene molecule in order to.
Speaker Change: And manage the potential side effects associated with off target and to answer your NIM side effects. So we do not hit in two and three O N E.
Speaker Change: So we would anticipate that it would be differences for a selective and one and four and as I said, when we complete phase one and go into a phase III study later this year, we'll be able to talk more about 10.
Speaker Change: We are anticipating and hoping to see.
Speaker Change: Thanks.
Speaker Change: We'll move next to Jeff hung with Morgan Stanley.
Speaker Change: Your line is open.
Jeff Hung: Thanks for taking my question can you talk about the feedback that you've heard from the end of phase two meetings for <unk> and 568 for five to say with any concerned by the agency on lack of dose response or that benefit was seen with the 20 milligram dose. Thanks.
Speaker Change: Or do you want to take that one.
Speaker Change: Yes. Thank you and we were very happy with the end of phase two meeting for both <unk> and <unk> six eight and I think we got alignment and guidance from the agency. So both of those interactions that was the support of the registration program as we designed it and defined it.
Speaker Change: Support of the dose selection and particularly as you asked around 568, Nevertheless, complete support for moving forward with the 20 milligram dose into the phase III program.
Speaker Change: Also got alignment on the endpoints that we were using and the nature of the whole registration plan. So I'll focus right now is on moving to to implement those programs, we already initiated the <unk> phase III.
Speaker Change: And we are moving towards.
Speaker Change: Initiating the phase <unk> study in the very near future as well.
Speaker Change: Okay. Thank you.
Brian: We'll go next to Brian <unk> with Baird. Your line is open.
Speaker Change: Yeah.
Charlie More: Hi, This is Charlie more on for Brian Thanks for taking our question.
Speaker Change: So we were just wondering.
Charlie More: <unk> earlier in the pipeline.
Charlie More: Your friedrichs ataxia gene therapy collaboration with Voyager.
Charlie More: And it would just be great to get some color on how you think it could differentiate from current clinical stage gene therapies.
Charlie More: <unk> dual and one targeting <unk>.
Charlie More: Cardiac tissue as well as if that's still on track to initiate first in human trials. This year. Thanks.
Charlie More: And maybe I'll take this question and I.
Charlie More: I refund any gaps for this we're really excited about the program that we have with voyage or it's something that we've been working on for several years as a part of our collaboration we've gone through first and second generation capsid that allow us to deliver pretax and two targeted tissues.
Charlie More: We have an approach here. That's so exciting is that patients have the opportunity to have an IV administered gene therapy that delivers free tax into the cardiovascular system as well as the CNS. So the cornerstone symptoms of the disease, either at the movement component or heart disease cardiovascular outcomes.
Charlie More: Would be addressed by our gene therapy, and a standalone treatment. So very excited about that we are on track for.
Charlie More: Graduating this program from preclinical to clinical development later this year.
Charlie More: Great. Thanks, so much.
Speaker Change: Hi, apologies Goldman Sachs to Mohit Bansal with Wells Fargo. Your line is open.
Speaker Change: Okay. Thank you for taking my question.
Speaker Change: Sorry for keeping keeping the staying on <unk>.
Speaker Change: If I look at the fourth quarter number and if I just straight line. It looks like your blended the guidance assumes just flatline.
Speaker Change: Using fourth quarter. So is this something massively changing in your contracting or the.
Speaker Change: Pricing dynamic it doesn't seem like that from your comments.
Speaker Change: Oh.
Speaker Change: So can you can you help us understand that and then I'll.
Speaker Change: Also are you are you expecting or modeling any benefit of <unk>.
Speaker Change: Fourth expansion here, because that would mean second quarter second half bump, but that doesn't seem to be part of the guidance here.
Speaker Change: Okay.
Speaker Change: Yeah on the call.
Speaker Change: <unk> front just to be clear, we did enter into some contracts that have some incremental rebates.
Speaker Change: But it pretty much offsets the annual price increase so from a year over year perspective on price.
Speaker Change: Pretty pretty flattish a little sequential down maybe Q4 to Q1 as I as I mentioned earlier, so I understand the straight line math Theres a lot of variables at play.
Speaker Change: <unk> pace of new patient additions relative to discontinuation for example on a much bigger patient.
Speaker Change: And so those are normal growing launch dynamics and as we mentioned with the sales force expansion. We do expect to have nice momentum in the second half of the year, but it's going to take a little bit of time for them to get up to full speed.
Speaker Change: Got it.
Speaker Change: We'll move next to Ash Verma with UBS. Your line is open.
Ash Verma: Great Yeah. Thanks for taking my question. So just one more on and Greg. So do you expect to see what is the utilization management had been in 2025 under Medicare part D. Plans are these hard part D plans and moving down to address slower because they have the catastrophic coverage.
Ash Verma: That burden going up they need to make up the daughters that's fair.
Ash Verma: He can comment on that that would be great. Thanks.
Ash Verma: Yeah. So.
Speaker Change: Quick comment we don't expect to see any.
Speaker Change: Significant changes in terms of our coverage in 2025 versus 2024.
And certainly we're looking and monitoring closely what's happening with the first wave of medicines that have been negotiated and the impact potentially on heavy trucks in those classes.
Speaker Change: But so far we're not seeing any major shifts.
Speaker Change: And the other thing I'd point out is that because we are designated small manufacturer weekend.
Speaker Change: And benefit on the contribution to the.
Speaker Change: Catastrophic phase so.
Speaker Change: Our competitors some of Theres no.
Speaker Change: No one that advantaged in that regard within the <unk> two class.
Speaker Change: We'll move next to Sam Kulkarni with Canaccord. Your line is open.
Sam Kulkarni: Good afternoon. Thanks for taking my question and it's another one on it goes at the FERC has been in the market for some time now your comments suggest there's still some way to go on penetration in the tardive dyskinesia market, but we seem to be at a point every few quarters when the debates around the growth trajectory seems to intensify and then you kind of grow does that by beating our initial numbers so help to sort of help settle this.
Speaker Change: Uncertainty our debate somewhat what's your latest philosophy on offering any detail on what you think eventual peak sales potential for you guys that might be in the U S.
Sam Kulkarni: Yes, it's funny.
Sam Kulkarni: Bill and I were talking about this earlier.
Sam Kulkarni: Earlier this week.
Sam Kulkarni: Original models for Brian <unk> peak sales of 500.
Sam Kulkarni: <unk> million and here, we are in 2024, having grown almost $500 million year over year with the market now being close to $4 billion. So.
Sam Kulkarni: We're not going to give a peak potential but what we do see as we are.
Eric: Eric has alluded to.
Eric: Still nine out of 10 patients with part of Dyskinesia are not currently being treated with the <unk> two inhibitor. So we do anticipate there is significant demand out there.
Eric: As <unk> said, there are ebbs and flows in the market development process for tardive dyskinesia, some are pretty clear to understand others less clear, but we do feel like theres a lot of growth trajectory.
Eric: And maybe just to add to that part of our discussion that we had is the one of the really unique aspects of tardive dyskinesia is that we believe the underlying prevalence continues to grow at a rate that exceeds the growth rate of the general population, so getting your hands around market size and value, it's something that's dynamic.
Eric: And a psychotic.
Eric: Prescription volume was about $75 million last year and it continues to grow in the low digit number that's multiples above the growth rate of the general population. So that's why you saw us increase our prevalence number late last year and that's something that we'll continue to revisit on the annual basis, but we are ever more surprised as we get into the market.
Eric: A little more about it as of how large it can be and how much work. There is still ed for us, but with that work a lot more opportunity and we're quite thankful to be in a situation, where we have 30 more years of market activity to help build the market.
Eric: Thanks.
Speaker Change: Well move next to Myles Minter with William Blair.
Eric: Your line is open.
Speaker Change: Hey, maybe one for Ari just back on $5 Stephanie.
Speaker Change: You Havent completed the phase one yet, but just curious as to your decision to move into adults.
Speaker Change: <unk> seen schizophrenia acute psychosis.
Speaker Change: Not our Thomas as any psychosis does that mean, you're still contemplating that indication or is it maybe that you're saying something on the tolerability side for that molecule that you want to go into adults first prior to the elderly population thanks very much.
Speaker Change: Yeah happy to take that and I think obviously, we have experience with 568 for the full of selective in the acute psychosis checking in adults, which makes it a pretty steady.
Speaker Change: A straightforward choice to evaluate <unk> in that patient population as well with respect to other potential indications. Obviously remain we remain very open to that and as we continue to generate data you may well see us going into different indications beyond that initial psychosis study.
Speaker Change: I think Myles to this is this is Kyle the interesting thing about the muscarinic says will be discussed is that there is still a lot to learn about this is as a target class and Fortunately we have a number of molecules that allow us to compare and contrast, the pharmacology that we have on one way to do that as look at.
Speaker Change: A dual pharmacology and the same patient population and see what type of outcomes do you can get from a selective indirect agonist that we have in 568, so theres a lot of value a lot of opportunities here across the different molecules that we have in knowing that we can't do everything.
Speaker Change: We like the approach that we have here with 568 going into bipolar mania and dual going into schizophrenia.
Speaker Change: Makes sense. Thanks.
Speaker Change: We will take our next question from Laura Chico with Wedbush Securities. Your line is open.
Laura Chico: Hello, Good afternoon, I'm, sorry, just one clarification from me with respect to the field force expansion and I guess I'm trying to relate back to the 25 guidance here.
Laura Chico: Wondering whether youre going to see the biggest benefit from driving new patient starts.
Laura Chico: Channel expansion or.
Laura Chico: Leasing adherence I guess I'm, just trying to understand where the field force impact is most likely to be felt any commentary there. Thanks.
Laura Chico: Yes, a couple of things.
Laura Chico: Things I would point out with regards to sales force expansion and our experience from prior expansion first of all and I think we.
Laura Chico: We alluded to earlier.
Laura Chico: When you hire.
Laura Chico: Essentially a new team or expand your existing team and deploy them. It takes some time for them to come up to speed and to hit their strides so to speak and so we do expect to see the majority of the impact from the expanded team as we go into the second half of the year.
Laura Chico: Second thing is in terms of what's the benefit of the team is primarily in driving new patient starts.
Laura Chico: Lot of.
Laura Chico: Education.
Laura Chico: They are able to increase our reach and also increase our.
Laura Chico: Our presence in existing practices.
Laura Chico: Driving recognition and diagnosis and of course initiation, we think Reza the two areas that we expanded our team into where psychiatry and long term care.
Laura Chico: And as Kyle mentioned earlier psychiatry continues to be the segment that has the largest patient potential and there is still.
Laura Chico: Fast growing and we recognize that we hadn't really increased our footprint in psychiatry since going back to.
Laura Chico: I think it was 2018 so ultimately.
Laura Chico: We.
Laura Chico: We do see the opportunity to expand.
Laura Chico: Our footprint in both psychiatry and LTC.
Laura Chico: Those teams are relatively brand new and we do expect to see the benefit of having that expanded presence, especially in the second half of the year.
Laura Chico: Thank you.
Laura Chico: Okay.
Laura Chico: Next to Amit Bhatia with Needham.
Laura Chico: Your line is open.
Speaker Change: Hi, good evening, Thanks for squeezing me in two.
Laura Chico: Two very quick questions Firstly just.
Speaker Change: A follow up on the questions around the guidance.
Laura Chico: It's already seen.
Laura Chico: Quite conservative given all the other comments around.
Laura Chico: The trends, but it sounds like you are taking a conservative view keeping in mind kind of the increased.
Laura Chico: With regards to prior art.
Laura Chico: If you can comment if that's kind of what's driving this conservatism or if im missing something there and then just with regards to the 11 patient forums for Chronicity can you give us some color on.
Laura Chico: Where these patients are being treated.
Laura Chico: And something about kind of weapons to tradeoff for prescribing the drug to these patients.
Laura Chico: They set off on the hi.
Laura Chico: Clinical steroids or whether you sort of knock.
Laura Chico: And knocked about controlling under current treatments any color would be helpful. Thank you.
Laura Chico: Yeah on the <unk> piece. We've commented previously I think that there are a number of variables that play out here towards the end of 2024 that reads on our thoughts on 2025.
Laura Chico: Competitive pressures there.
Laura Chico: Our competitor in this space, what their XR formulation getting to a once a day type of medicine. After a complex titration regimen. We've also seen the competitive pressures there on the payer front.
Laura Chico: But I don't want to discount also something that we've talked about the disruption of our own sales force expansion. In Q4. These are things that we saw play out over the course of the second half of next year or last year excuse me and we think that will still be a factor for here for us as we start 2025.
Laura Chico: I don't want to dwell too much on the headwinds that we have here I also want to call out all the things that we think that will benefit us here into 2025, and subsequent years and I've touched on these already but to really be that sales force expansion that cause that disruption in Q4, we will start paying dividends this year and certain label clean on that heavily.
Laura Chico: And subsequent years as well and then our differentiated product across things like efficacy dosing regimen.
Laura Chico: Other formulations for patients with difficulties. These are all things that will play out with this upside salesforce.
Laura Chico: Allow us to do quite nicely over time, so we balance both of these things in terms of our guidance.
Laura Chico: Seeing growth this year, it's not going to be.
Laura Chico: The guidance suggests.
Laura Chico: Large that was in 2024, which was our largest grocery year ever, but we still see significant growth year. This year and certainly in the following future years as well.
Speaker Change: Yes, let me let me just quickly comment on.
Speaker Change: Sort of what we're seeing in terms of the treatment forms coming in at that sort of the day.
Speaker Change: City of location so.
Speaker Change: Obviously.
Speaker Change: We've done work leading up to the launch.
Speaker Change: Our expectation is that.
Speaker Change: Adoption will be probably very early are faster in the pediatric segment.
Speaker Change: We expect that we'll also see more rapid adoption.
Speaker Change: The centers of excellence however.
Speaker Change: Early on with the.
Speaker Change: A relatively small sample size so to speak.
Speaker Change: Well, we are seeing is treatment forums are coming in from.
Speaker Change: Community Endocrinologists from Endocrinologists Center are part of.
Speaker Change: Teaching hospitals or CH clinics, we're seeing patients getting started that are pediatric patients. We're seeing adult patients getting started so really it's fair.
Speaker Change: Alright diverse and across the board and as I said before just really excited about the momentum and the trajectory that we're on here. It's early days yet.
Speaker Change: Yes.
Speaker Change: That said Theres still a lot of people that we need to reach in a lot of work that we need to do but I think that the fact that we had invested in CEC and education that we had teams in the field in the second half of last year, and we will read prepared for an early approval.
Speaker Change: Is it really set us up for success this year and beyond with Chronicity.
Speaker Change: Thank you.
Speaker Change: Yes.
Speaker Change: Well move next to buoy ear with Mizuho. Your line is open.
Speaker Change: Hey, guys. Thanks for taking our question so on questions on <unk>.
Speaker Change: Congrats a quick one on for Q was there a significant or any volume growth in the quarter from Q3 to Q4.
Speaker Change: And.
Speaker Change: Quickly on the guidance as well that's the guidance I assume.
Speaker Change: Benefits from the sales force expansion just wanted to make sure we're clear on that.
Speaker Change: And thirdly, if I can could you maybe just help us think.
Speaker Change: How to perhaps think about the.
Speaker Change: <unk> sales post 2027 after.
Speaker Change: I guess after the price negotiation plus data thanks.
Speaker Change: But.
Speaker Change: Yes, I think I think that the.
Speaker Change: The answer to your questions are yes.
Speaker Change: We have included.
Speaker Change: The sales force expansion in our guidance range, obviously at the high end of the range it's contributing.
Speaker Change: A quicker.
Speaker Change: And.
Speaker Change: So I would just say that.
Speaker Change: Answer to your first two questions are yes.
Speaker Change: In regards to what happens post 2027.
Speaker Change: That's something as Eric mentioned were.
Speaker Change: Keeping our eyes out looking to see what.
Speaker Change: It is happening in the space with other similarly, situated product categories.
Speaker Change: But at the end of the day for US our main focus right now is growing the TV market growing the presence of <unk>.
Speaker Change: There's going to be a whole lot of uncertainty I'm sure through the hole.
Speaker Change: Through the whole IRA implementation hard to predict but what we can control is is ensuring that patients get diagnosed and good opportunity to take aggressive.
Speaker Change: Okay. Thank you.
Speaker Change: We will take our next question from Brian Abrahams with RBC capital markets. Your line is open.
Speaker Change: Hi, This is Joe on for Brian. Thank you for taking our question so related to the earlier question on TD market share split I believe the market share has been pretty stable over time, even after competitor sorry launch.
Speaker Change: Wondering if there's anything more that will drive the changes to the competitive dynamics. This year and how are you thinking about the changes in payer dynamics beyond 2025, do you believe that the complexity.
Speaker Change: And the dynamics will persist.
Speaker Change: Yes, so we've always said that we have a formidable competitor.
Speaker Change: <unk>.
Speaker Change: They appear to have gained a few share points in 2024 due to the rollout of our extended release formulation of deuterium modified tetra benzene.
Speaker Change: As one might expect.
Speaker Change: And.
Speaker Change: <unk> is the leader in the beam at two category and we continue to.
Speaker Change: Growth for the class and for <unk> as I mentioned earlier a lot of headroom.
Speaker Change: Nine out of 10 patients with TD as yet undiagnosed and untreated.
Speaker Change: Currently would be met <unk> inhibitor. So.
Speaker Change: We certainly are bullish in terms of the long term and near term potential and congrats to continue driving that growth and with 13 mortgage exclusivity.
Speaker Change: I'm glad that we have that time to do it.
Speaker Change: Thinking beyond 2026, and 2027, and I mentioned that it's a complex payer environment and the inflation reduction Act makes it even more complex, but we're going to continue to do what we need to do to make sure that patients have access to <unk>.
Speaker Change: This year and in coming years, and maybe just to add to that as a reminder to everyone. I think we have that in our remarks that we do.
Speaker Change: <unk> had been given.
Speaker Change: Specified small manufacturer exemption as well as a small biotech exemption.
Speaker Change: That's confirmed and we would expect our price negotiation observation event to be in 2029, so to Eric's point, we have the opportunity to learn prepare and adjust to the new world that overall and over the next couple of years as products are negotiated at CMS and seeing all of that.
Speaker Change: FX potential other products and some of our categories.
Speaker Change: Well no.
Speaker Change: Next to Evan <unk> with BMO capital markets. Your line is open.
Speaker Change: Hi, Michael Hoffman on for Adam Thanks for taking our question.
Speaker Change: I wanted to ask if you could talk about the decision to amend the agreement with Takeda worldwide development and commercial rights extra Pan for <unk>.
Speaker Change: This decision is driven by increased confidence in pursuing additional indications beyond MDT or was this just more based on just the profile in <unk>.
Kyle: I'll start this is Kyle it.
Kyle: I think that we're very excited about the data that we have that came out of the phase II program and quite frankly, so is takeda.
Speaker Change: As we've seen from Takeda over the past several years, then making a number of strategic decisions that move them away from kind of classical psychiatric disease.
Speaker Change: And MDT most of them most of ambulatory fits squarely in there and the nature of our collaboration really affected their P&L in terms of their expense profile on a year to year basis. So knowing that they appreciate it the data that we have and still like to be involved in this we both work too.
Speaker Change: <unk> is an arrangement where they are able to continue developing this asset in their territory, which is Japan.
Speaker Change: <unk> compound came out of efforts from their Japanese R&D facility, and there's quite a bit of price there and able to take this forward.
Speaker Change: Our country and will continue to work together to develop.
Speaker Change: Most of that inventory outside of Japan, with Neurocrine annoying, the lion's share of economics. So.
Speaker Change: It's a win win for both companies were able to move forward more quickly being a smaller more nimble company and we think that that will ultimately allow us to have the best opportunity to bring this medicine to patients as quickly as we possibly can.
Speaker Change: So we're excited we continue to work with our team there and we'll look to move this into phase III This year.
Speaker Change: I appreciate the color thanks, guys.
Speaker Change: And it does appear that there are no further questions. At this time I would now like to turn it back to Kyle for any additional or closing remarks.
Thank you and thanks, everyone for joining the call. This afternoon as you can see we've got a lot going on here at the company and we've hit on a number of different points throughout our conversation through her opening remarks about 2025 being a year of execution and a year of evolution and it really is and it does start with our efforts on our commercial products and browser.
Speaker Change: And <unk>. The goal here is to drive revenue growth and diversification over time. So it's very important we continue to execute on our commercial medicines that make sure that they are brought to patients as quickly and broadly as possible. The other pieces of the execution involved supporting those programs that are in process in our pipeline.
We've talked about our phase III assets, both <unk> and MBIA 568, and MDT in schizophrenia.
Speaker Change: Successful, respectively, and Thats just the tip of the iceberg, we have programs in phase two coming on board from our muscarinic portfolio you have data readouts that span phase II and phase III NPD and the adjunct treatment in schizophrenia as well as the dyskinesia associated with cerebral palsy, a couple of phase one startup.
Speaker Change: This quarter and then the fun begins the real concept diverse diversified and sustainable portfolio with our R&D transformation and bringing new products that are in the space of peptides antibodies in gene therapy. Those are all things that become a reality in the second half of this year. So we're extremely.
Cited about sharing this news with you as we move forward into 2025 and meeting you all at the healthcare conferences throughout the course of the year.
Speaker Change: Yeah.
Speaker Change: This does conclude today's program. Thank you for your participation you may disconnect at any time and have a wonderful afternoon.
Speaker Change: Goodbye.
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