Q1 2025 Incyte Corp Earnings Call
Greetings and welcome to the insight first quarter 2025 earnings conference call and webcast.
At this time, all participants are in listen only mode.
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A question and answer session will follow the formal presentation.
Speaker Change: You may be placed in the question queue at any time by pressing star one on your telephone keypad in the interest of time, we ask you. Please limit yourselves to one question and then return to the queue. As a reminder, this conference is being recorded its now my pleasure to turn the call over to Greg Schertzer Investor Relations. Please go ahead Greg.
Greg Schertzer: Thank you Kevin Good morning, and welcome to insights first quarter 2025 earnings conference call before we begin I encourage everyone to go to the investors section of our website to find the press release related financial tables and slides that follow today's discussion.
Speaker Change: On today's call I'm joined by array, Pablo and Christiana, who will deliver our prepared remarks, Matteo Mohammed and Steven will also be available for the Q&A.
Speaker Change: I would like to point out that we will be making forward looking statements, which are based on our current expectations and beliefs. These statements are subject to certain risks and uncertainties and our actual results may differ materially.
Speaker Change: I encourage you to consult the risk factors discussed in our SEC filings for additional detail.
Eric: I'll now hand, the call over to Eric.
Eric: Thank you Greg.
Eric: Good morning, everyone.
Eric: So first quarter was 25, it was very important for insight not only because of the good performance of the commercial portfolio, but mostly because Q1 25 puts us on a great trajectory for long term growth with the continuous expansion of up to a successful launch of nicknamed rule.
Eric: The successes of the public what those studies and it shows on proof of concept study in <unk>.
Eric: So financial performance was very strong with growth of above 20% in both product and total revenues.
Eric: Our cash position at the end of the quarter reached 2.4 billion below.
Eric: On the commercial side.
Eric: Nicknamed goes successfully launch is one of the four planned launches for insight in 2020 filings the U S.
Eric: On the R&D front, we already booked significant progress so far this year, we sit all key data.
Speaker Change: Did you ever read out XL bioequivalence for luxury to name a proof of concept data in chronic spontaneous urticaria or probable and phase III results for what's really creating pretty good in the diaries and provokes 50 need in Hs.
Speaker Change: In Q1 revenue grew 26% with total revenues, increasing 20% year over year up to one point or <unk> 5 billion.
Speaker Change: This growth was driven by the ongoing demand swaps I guess, if I look through all and the initial launch of nicknamed go in third line chronic gvhd.
Speaker Change: Moving to slide seven in the first quarter commercial performance pubs, I got Pi Jakafi net product revenue in the first quarter with 24% Youll value up to 709 million total patients increased 10% when compared to the same quarter in 2024.
Speaker Change: Due to strong demand and the expected continued growth of Jakafi. We are raising the food you have 25 net product revenue guidance to a new range of $2 $95 billion to $3 billion.
Speaker Change: Turning to slide eight and looking at second probably weekly dispenses by indication during 'twenty three 'twenty four in the first quarter of 2025 as you can see.
Speaker Change: Unit growth remains robust across all screen indication.
Speaker Change: Myelofibrosis showed growth again this quarter was the most significant increase was within in Polycythemia Vera.
We expect TV to become the largest contributor Forbes I can tell you over time.
Speaker Change: Reported by the data from the Magic PV study, which underscores the benefit of early intervention with Jakafi and its impact on trauma. This free survival.
Speaker Change: Moving to slide nine total net product revenue in the first quarter were $119 million up 38% when compared to the same quarter last year.
Speaker Change: Driven by continued growth in the U S increased contribution from Germany, and France, and the more recent launches in Italy and Spain.
Speaker Change: In the U S generic prescription.
Speaker Change: Ascription trends for 2024 in the first quarter of 2025 as shown on the right of slide nine reflects continued growth of absurd rule out for both atopic dermatitis and vitiligo.
Speaker Change: Effective March 1st of them premium added up zero to as a preferred formulary, which means subsidiaries no preferred on two out of the three big Pbms National Formularies.
Speaker Change: This transaction enhanced our commercial coverage from 86% to 94%.
Speaker Change: On slide 10, and our newest commercial product nicknamed Pooh.
<unk> believes the sedans product commercialized directly by inside that Jakafi opposite of Iclusig Timothy amongst movie underneath.
Speaker Change: There's nothing medicine launched at the end of January for patients with third line chronic graft versus host disease addresses an important medical need and it has significant long term growth potential.
After two months of commercialization the typical net product revenues in the first quarter were 14 million driven by high patient need and strong commercial execution, along with our partner syntax.
Speaker Change: We are seeing positive early launch metrics with with the widespread product awareness and interest 95% of the BMT centers have using <unk> and 70% of all BMT centers have all that.
Speaker Change: Nicknamed voice the first anti CSF oner antibody approved to target the inflammation and fibrosis associated with chronic gvhd and.
Speaker Change: And we are already seeing the impact it is having for patients, giving us increased optimism for the long term potential of this product as it is moving to earlier lines of treatment.
Speaker Change: On Slide 11, a reminder, for 2025 would be a pivotal year for insight with numerous defining catalysts that to create a significant inflection point.
Speaker Change: The launch of nicknamed it has already shown strong initial success and we are preparing for three additional launches this year productivity or frame important near term revenue potential.
Speaker Change: We plan to initiate at least three phase III study and we anticipate that seven early stage program will generate informative data.
Speaker Change: Developments have the potential to transform our company.
Speaker Change: Finally, before I turn the call to Christiana I would like to address the topic of Paris seven years ago. We started the strategy to establish do you also think cookie insight product with the goal of having a backup FDA or EMA approved facility in case of technical issues.
Speaker Change: This approach is giving us the flexibility for key products to manufacture in the U S for the U S market and for Europe.
Speaker Change: From Europe for ex U S.
Speaker Change: Therefore, we expect the impact to inside of any potential tariffs on pharmaceuticals to be minimal.
Speaker Change: Finally, our exposure to China is now limited to some starting material for some of our drugs.
Speaker Change: And we currently hold inventory of starting material to support our forecasted supply needs, although a multiyear period and have alternative sources of supply of starting materials that we could consider moving to <unk>.
Speaker Change: Needed now.
Chris Tonight: Now I will hand over the call to Chris Tonight for the final sort of it.
Chris: Thank you Eva and good morning.
Speaker Change: In the first quarter of 2025, we delivered total revenues of one point of $5 billion up 20% versus the same period last year.
Speaker Change: Total product revenues of $922 million in the first quarter, representing an increase of 26% year over year, driven by strong demand growth for Jakafi and Laura as well as initial contributions from the commercial launch of nicotine both during the quarter.
Speaker Change: Turning to Jakafi on slide 16.
Speaker Change: <unk> net product revenue was $709 million for the first quarter, representing 24% growth versus the first quarter of 'twenty 'twenty four.
Speaker Change: Demand increased 10% versus the prior year period, reflecting continued growth in all indications.
Speaker Change: Net product revenue growth also reflects a positive gross to net impact from the removal of the part D coverage gap liability under the inflation reduction Act and insights phase in participation in the part D nation, and that's a strategic phases.
Speaker Change: Partially offset by growth in three for TB.
Speaker Change: As a result of Jakafi qualifying for the small biotech exception inside participation in the part D coverage is limited to 1% in both the initial and catastrophic phases in 2025.
Speaker Change: We expect this gross to net favorability for part D to be limited to Q1 and for the remaining quarters. In 2025, we expect the part D coverage liability to be in line with 2024.
Speaker Change: Lastly, the year over year comparison of net product revenue includes a 7% positive impact due to less destocking in the first quarter of 2020.
Speaker Change: Five versus the first quarter of 'twenty 'twenty four.
Speaker Change: At the end of Q1, 2025, Jakafi inventory levels were within normal range.
Speaker Change: Turning now to our pillar on slide 17, net product revenue for the first quarter was $119 million, representing a 38% increase year over year.
Speaker Change: U S net product revenue of $95 million was up 20% year over year, driven by a 24% increase in paid demand, partially offset by a reduction in channel inventory.
Speaker Change: Inventory levels ended the quarter within normal range.
Speaker Change: Ex U S. Net product revenues of $23 million were driven by continued uptake in Germany, and France as well as the recent launches in Italy and Spain.
Speaker Change: Turning to slide 18 as in prior years, absolutely our first quarter results reflect the typical seasonality we see in the first quarter of each year driven by the reset of insurance plans.
Speaker Change: Deductibles in the U S as well as holidays and other events that negatively impact scripts.
Speaker Change: Turning now to other hematology oncology products on slide 19, net product revenues for the first quarter were $94 million, representing a 30% increase year over year.
Speaker Change: This is primarily driven by the commercial launch of nicknamed during the first quarter of 2025, which contributed $14 million in net product sales.
Speaker Change: Growth from on jewelry in the first quarter of the year, primarily reflects a full quarter of insight regarding net product revenues in the U S versus two months of net product revenues in 2024 as a result of the acquisition of the exclusive U S rights alone jewelry that closed in February February 2024.
Speaker Change: Moving on to slide 20, and our operating expenses total GAAP R&D expenses were $437 million for the first quarter, an increase of 2% year over year driven by continued investment in our late stage development assets.
Speaker Change: All set by the timing of certain expenses, which favorably impacted Q1 2025.
Speaker Change: Moving to SG&A total GAAP SG&A expenses were $326 million for the first quarter, representing an 8% year over year increase primarily driven by timing of consumer marketing expenses and certain other expenses.
Speaker Change: Finally.
Speaker Change: Operating expenses in the fourth first quarter of 2025 increased 6% year over year compared to a 20% increase in revenues during the same period.
Speaker Change: Adding to further increasing operating leverage and margin.
Speaker Change: Moving onto our guidance for 2025, we are increasing our full year guidance for Jakafi from a range of two nine.
Speaker Change: 92, 5% to 97 5 billion to a new range of $2 $95 billion to $3 billion.
Speaker Change: We are reiterating our full year guidance for absolute I'd, rather dermatology oncology product Cogs R&D and SG&A.
Speaker Change: For R&D our guidance, excluding the impact of the recent deal we signed with Genesis, which is expected to add $15 million to our full year R&D spend.
Speaker Change: I'll now turn the call to tableau for an R&D update.
Speaker Change: Thank you Christina and good morning, everyone.
Speaker Change: It was really highlighted a year ago and we summarized on this slide we remain on track to deliver more than 10 high impact launches by 2030 from programs across our portfolio.
Speaker Change: And the next few slides I would like to provide an update on two of these programs. The phase two proof of concept study of <unk> in patients with chronic spontaneous urticaria.
Speaker Change: Data on the phase III results for <unk> in patients with header at night issue for Tivo.
Speaker Change: We're delighted to announce a positive topline results from the phase II study evaluating <unk> in patients with chronic spontaneous urticaria.
Speaker Change: The study met the primary endpoint at the 75 milligram dose of change from baseline in the urgent care activity score summed over seven days, our U S. Seven at week 12.
Speaker Change: Treatment with proper Sydney was well tolerated with no new safety signals observed.
Speaker Change: These results open the door to a potentially new treatment option for over 300000 patients with CSU, who are inadequately controlled on antihistamines.
We're pleased with this proof of concept results, which will be presented at an upcoming medical conference and we will be engaging with regulatory agencies to determine next steps as we plan a pivotal study for <unk> in patients with CSU.
Speaker Change: Just a few weeks ago, we presented the results of their phase III studies stop Hs one stop ages, two evaluating <unk> in patients with moderate to severe Hs.
Speaker Change: The study showed statistically significant and clinically meaningful improvements and high score at both doses and both studies.
Speaker Change: Slides 25, and 26 summarize updated results through 18 weeks of follow up invest two studies.
Speaker Change: As a reminder, patients on placebo were allowed to crossover at week 12, and were randomized to either 45 or <unk> 75, Amerigas October citizen.
Speaker Change: As illustrated in the chart for those patients who started on <unk> and stop Hs one the number of patients achieving high score increase from 176, a week 12 to 203 by week 18.
Speaker Change: Among the patients who crossed over from placebo to receive either <unk> Sydney at $45 or 75 milligrams high score at week 18 improved from 28, 6% on placebo to 57, one and 57 eight respectively.
Speaker Change: Importantly for the crossover patients the number of responders increased from 58 to 100 and just six weeks demonstrating once again the rapid onset of benefit produced by <unk> in patients with Hs.
Speaker Change: Similar findings are observed in its top Hs one summarized on this slide.
Speaker Change: For those patients who started on polar Sidney the number and proportion of patients achieving high score continues to increase from 164 patients have week 12 to 177 patients at week eight team.
Speaker Change: Among the patients have crossed over from placebo to receive either polar Sydney 45, or <unk> 75 milligrams highest car week 18 improved from 29, 7% on placebo to 58% and 55, 2% respectively. While the number of those achieving high school increase from 60 to 99.
Speaker Change: <unk> results from both stop Hs, one and stop Hs to clearly show that the response rates in the proper Sidney of arms continued to increase over time, and perhaps more importantly demonstrated a doubling of the responses in patients initially randomized to placebo. After there were switched to either Paul or Sydney dose level.
Speaker Change: Yeah.
Speaker Change: We previously reported a greater differential efficacy in favor of <unk> in patients previously treated with biologics with an average placebo adjusted difference in highest COVID-19, 1% for poker sitting at 45 milligrams and 18, 3% for power sitting at 75 milligrams in the pooled analysis for.
Speaker Change: Stop Hs, one and star paycheck too.
Speaker Change: It slides 27, and 28 show that this is true regardless of the type of biologic being consider either anti TNF anti IL 17 agents.
Speaker Change: Shown on this slide is the highest score by prior anti TNF therapy with a placebo subtracted high score of 13% to 23% in the different arms of these two studies.
Speaker Change: On slide 28, we see the high score by prior anti IL 17 therapy with a placebo subtracted high score of 5% to 25% in favor of <unk> treated patients.
Speaker Change: In all the totality of the data presented clearly demonstrates that patients with Hs have the potential to benefit from power Sydney therapy, regardless of whether they have received treatment with a biologic and regardless of the type of biologic they received.
Speaker Change: We're pleased by the positive data that power center continues to generate with positive phase III data for Hs positive phase II proof of concept data previously presented for vitiligo Perrigo inaugural Arris and now CSU spyware Sydney has solidified itself as a potential new medicine across several indications.
Speaker Change: <unk> and development.
Speaker Change: We're executing a broad development plan and anticipate additional proof of concept data for it not to be available in the second half of 2025.
Speaker Change: We continue to evaluate additional opportunities for power Sydney and plan to share this update in the second half of 2025.
Speaker Change: As mentioned by <unk> 2025 will be a pivotal year for insight with over 18 key milestones, including four new product launches for pivotal trial Readouts at least three phase III study initiations and seven proof of concept study results.
Speaker Change: As you can see on slide 32, we have achieved several of these milestones with the launch of Nick Tim vote by Equivalency data for a rock solid and have extended release phase III data for rux cream in Perrigo inaugural Iris and <unk> never had and how to separate Teva as well as the phase II proof of concept data for <unk> here.
Speaker Change: Forward to Shane additional updates on these milestones over the course of 2025 I will now hand, the call over to <unk> for closing remarks.
Speaker Change: Yeah. Thank you before we close the presentation. Following tableau is a bit on the global data in the Hs I would like to comment on the <unk> market in 2027 in the U S. When people will be launched it's a fast growing market, where there are more than 100000 diagnosed patients with moderate.
Speaker Change: And CBA, it says who do not yet receive advanced systemic therapy.
Speaker Change: The illustration on slide 32 reflect the group of patients aren't systemic therapy.
Speaker Change: There are around 3000 patients who are not eligible for injectable treatment with biologics as research shows that 10% to 15% of eligible diagnosed <unk> patients are not receiving injectable therapy for practical financial reasons or adaptations request.
Speaker Change: What will be the only all treatments approved in the pre biologic setting and we anticipate this segment to grow significantly in the years following the approval of <unk>.
Speaker Change: In 2027 below will compete for the 16000, new biology can enable patients started on systemic therapies that youre in dark blue on the graph.
Speaker Change: With a competitive product profile based on them all treatment with high high school durable responses and fast pain relief.
Speaker Change: So the largest segment at launch in 2027 would be the group of patients in light blue on the right who have received biologic treatments, including anti IL 17, and will require a new treatment option for lack of good disease control.
Speaker Change: We estimate that group of 27000 patients around one third of a pool of 70 12000 patient on biologics that year.
Speaker Change: This is equivalent to an estimate of average biologic treatment duration of three years.
Speaker Change: In this patient population is tableau has presented earlier, but what's the assumed efficacy profile is unique and will drive the early adoption curve.
Speaker Change: Although all these estimates show that velocity.
Speaker Change: And it would be potentially targeting 46000 Hs patient in 2027.
Speaker Change: With the longer term data shown today for new patient with efficacy data maintained in the post biologic setting we see it just as an important contributor to the total potential of paroxetine Abe with vitiligo, probably gonna do I read some notes here too as the subsequent indications.
Speaker Change: To recap we are we have developed a very strong commercial execution in the first quarter in both oncology and dermatology.
Speaker Change: The successful launch of Nick Tim go demonstrates that there is a clear need for new treatments in gvhd, giving us optimism for the long term potential of nicknamed book.
Speaker Change: This quarter is when we confirm that bubble will be perpetually launch in.
Speaker Change: In 2027, four it says with positive data on all primary endpoints in both phase III studies, the competitive profile in treatment nave and post biologic Hs.
Speaker Change: Now proof of concept in CSU.
Speaker Change: These results reinforce perverted, but onshore as a multibillion driver of future growth for our company.
Speaker Change: Our pipeline continues to advance with short term deliverable for three additional launches in 2025.
Speaker Change: <unk> XR in 2026, and good progress of the <unk> project and.
Speaker Change: And importantly, we have multiple upcoming milestones and catalysts remaining in 2025, which will further shape, our trajectory and create additional value.
Speaker Change: Operator that concludes our prepared remarks, please give your instruction and open the call for Q&A.
Speaker Change: Certainly we will now be conducting a question and answer session if you'd like to be placed in the question queue. Please press star one on your telephone keypad, if you'd like to remove yourself from the queue. Please press star two.
Speaker Change: The interest of time, we ask you. Please ask one question and then return to the queue. Once again Thats star one to be placed in the question queue and please ask one question and then return to the queue. Our first question today is coming from Michael Schmidt from Guggenheim. Your line is now live.
Michael Schmidt: Hey, good morning, Thanks for taking my questions I had a question on Jakafi.
Speaker Change: PV as you mentioned is now the most important growth driver for the product capturing about one third of sales and can you talk a bit more about your expectations for how much of that is driven going forward by new patients versus continued.
Speaker Change: Use of the drug by patients on therapy and secondly.
Speaker Change: Some recent positive announcement of phase III data of a hep site mimetic in NPV as an add on to standard of care. How do you expect that potential approval to impact potentially use of jakafi going forward. Thanks, so much.
Speaker Change: Hi, Michael Mohamad here. Thank you for the question, let me just address the PV.
Speaker Change: Growth drivers first the team is doing a really nice job today executing on our PV strategy educating the marketplace on the importance of it.
Speaker Change: Treating PV earlier, with Jakafi, which results in reducing the risk of thrombosis and because of that we're seeing actually new patient growth as well as patients continuing on therapy. So the drivers for growth for us in the future will be a combination of both new patient starts as well as persistency within that and then from the phase <unk>.
Speaker Change: <unk> data that you are mentioning look I think first and foremost is always good to see new treatment options available for patients that said the agent that you're referring to is currently being studied in combination with other agents, we think that that's going to be.
Speaker Change: Generally in combination with Jakafi and others and Jakafi.
Speaker Change: They're hand remains the only FDA approved JAK inhibitor for PV after HQ.
Speaker Change: <unk> or intolerance that addresses both hematocrit and disease progression, that's a really unique profile for us that we think can.
Speaker Change: <unk> to put us in a really competitive leading position.
Michael: Thanks again for the question Michael.
Speaker Change: Thank you. Your next question today is coming from David Lebowitz from Citi. Your line is now live.
David Lebowitz: Thank you very much for taking my question in terms of cobalt for chronic spontaneous urticaria, ultimately where do you see it fitting is there something that would be before moving to biologics such as xolair and other therapies, but after things like the <unk>.
Speaker Change: Antihistamine and Montelukast.
Speaker Change: Or do you see it more competing directly with the post xolair crowds.
Speaker Change: So let me let me take that question, so look I think that as.
Speaker Change: As you know most of the patients more than half the patients fail not only conventional anti histamines by next generation anti Histamines and high dose antihistamine and send those patients. We believe will benefit from having an oral option to manage their chronic spent to answer two carrier. So I think it will be both populations I think it will be a patient preferences IMAX.
Speaker Change: Some patients will prefer to try another oral like poor Sydney before trying to biologic other patients, particularly perhaps social hygiene, which are about half the patients will prefer to try a biologic first those patients don't have a very high failure rate and they could be treated with <unk> as an alternative after that so I think we will potentially address both patient population.
Speaker Change: <unk>.
Andrew Burns: Thank you next question is coming from Andrew Burns from Leerink Partners. Your line is now live.
Andrew Burns: Thanks, and congrats on the new polo HSA, though.
Andrew Burns: I know the placebo patients cost server this trial, but what would you have expected the control longer do based on historical data.
Andrew Burns: Are you guys going to continue following these patients beyond 18 weeks and then you also suggested in the press release that there may be increased activity of naive patients.
Andrew Burns: Crossing over placebo was this the data that you shared at the presentation in patients that have received a prior biologic or these 200 patients.
Andy: Morning, Andy So a couple of points to address your questions.
Andy: Yes, we will continue to follow the patients for efficacy and safety to 52 weeks.
Andy: So as you know, we're not going to provide an update every few weeks, but there will be future updates on the maturity of the data both for efficacy and safety from the two studies I think we wanted to provide an update now because our study was analyzed how week 12, which was a little bit earlier than other studies from our competitors. So we wanted to show longer follow up.
Andy: From the from both treatment arms, and particularly important in this case, the crossover arm, which show how quickly the placebo patients improve when they're crossed over to Sydney.
Andy: I think that when it comes to nave versus biologic exposed I think the important point is the overall of the two studies met the primary endpoint both studies in both dose levels and that's I think important to remember we wanted to give clarity on the post biologic use because we think that are very highlighted as one of the areas where <unk> could have a very important role.
Andy: For patients and so the clarity that it works very well regardless of prior biologic use on regardless of the type of biologic and we thought it was an important thing to remind everyone.
Speaker Change: Thank you next question is coming from testing them out from Bank of America. Your line is now live.
Speaker Change: Hi, good morning, Thanks for taking my question.
Speaker Change: Well I think we'll get an update on one of your pipeline assets, mainly the Keller compound.
Speaker Change: Got that.
Speaker Change: For this calendar year or is that still the plan and if so just give us a little bit of guidance on what level of data.
Speaker Change: Sure.
Speaker Change: Yeah.
Speaker Change: This is Pablo I think you were asking about them.
Speaker Change: You can call our monoclonal antibody, we promise data in 2025, and we will present data this year.
Speaker Change: It will be a substantive amount of data we have dose escalation, where we're going to have a range of doses, we're going to have data they need T and data in myelofibrosis, and we will present clinical endpoints as well as early data.
Speaker Change: On V. A S. A variable LDL fraction burden over time. So I think you should expect a reasonable number of patients with a range of doses that will be presented.
Thank you next question is coming from <unk> Richter from Goldman Sachs. Your line is now live.
Speaker Change: Hey, great. Thank you. This is Matt on for solving maybe just to follow up on that last question could you share any more details in terms of how we should assess the kind of curative efficacy potential for Cal R.
Speaker Change: And then kind of just walk us through what is the base case in terms of.
Speaker Change: Mono versus a jackoby combo and then if I could just on tariffs. It seems like you all are well positioned from a manufacturing perspective is there anything you guys can share in terms of where IP is based on how much profit you book in the U S. Thank you.
Speaker Change: Okay.
Speaker Change: Let me take the first part of the question on call are so I think that.
Speaker Change: The data for our new interventional or in this case I would call our anti <unk> antibody for patients with <unk> mass.
Speaker Change: Obviously, we would like to change the treatment paradigm in these patients and over time, we would like to see evidence of disease modification that could take time, but we would like to see early on that there is a decrease in the allele burden in those patients and that's an important part of this studies however.
Speaker Change: The immediate benefit for patients or in the near term will be the classic signs and symptoms of these diseases blood counts centers et cetera, both in the TNF map.
Speaker Change: So while we intend to 2% as a comprehensive data package as addressing both sides of that question the clinical endpoints as well as the allele burden reduction and over time, we expect a sustained and more pronounced effect in these patients we continue to treatment with the antibody.
Speaker Change: And on the on the on the tariff question. So.
Speaker Change: As I said I mean, we have manufacturing available for each of the key product in Europe and in the U S. So that gives us.
Speaker Change: Basically on the opportunity to supply the U S market from the U S. And therefore, there is no tariff eligibility there regarding IEPS youre now ship of the patterns for our key product is in the U S.
Brian Abrahams: Thank you next question is coming from Brian Abrahams from RBC capital markets. Your line is now live.
Speaker Change: Hi, everyone. This is <unk> on for Brian.
Speaker Change: Just a quick question on Lora.
Speaker Change: It's been the contribution to <unk>.
Speaker Change: Atopic derm and vitiligo to <unk> for us to learn how do you how do you tend to see that moving forward.
Speaker Change: We've heard from some physicians that access to 80 continues to be a hurdle. So.
Speaker Change: Are you currently working to improve some of the access to absolutely.
Speaker Change: Yes, it's a two part question is Mateo I'll take the first part on the contribution of a D versus vitiligo right now we see that the split to be pretty constant as both indications are growing at pretty much a similar pace in terms of access to a deep cut in there.
Speaker Change: Future there are two components of it that we're working on one is the formulary position that we had particularly on the commercial plan and as <unk> mentioned before as of March 1st we had a opt in premium moving from not covered for absolute out to a preferred position and that brings us.
Speaker Change: Not just two out of three major pbms in the preferred position, but also as I mentioned more than 90% of patients on commercial plant in call. It. The other aerial work they were doing and were receiving initial positive feedback on improvement that ACP and their office staff C on the accessibility to <unk>.
Speaker Change: Absolutely is on the patient services that we offer so we continue to work on both fronts to make sure that their feedback in that.
Easy to access absolute a feat that continues to improve in the coming quarters.
Speaker Change: Thank you. Our next question today is coming from Jessica Fye from Jpmorgan Chase. Your line is now live.
Jessica Fye: Hey, guys. Good morning, Thanks for taking my question I'm curious if you could update us on how the company is thinking about capital allocation and business development do you want to see the rest of this year's pipeline Readouts play out before making any moves there and with the stock back in the fifties as another ASR on the table. Thank you.
Speaker Change: Okay.
Speaker Change: But if it picks up.
Speaker Change: A big picture on capital allocation is obviously our.
Internal pipeline.
Speaker Change: Excess and or lack thereof, so the evolution of the internal pipeline is driving.
Speaker Change: A lot of the work capital is allocated you can imagine with seven.
Speaker Change: The proof of concept.
Speaker Change: Lance happening each of them can lead to a phase III program and therefore, it would be utilizing a large.
Speaker Change: Portion of our R&D budget. So that's the first capital allocation is.
Speaker Change: R&D in term of.
Speaker Change: External business development, we spoke about it we would be.
Speaker Change: Like we have done recently with Genesis looking at a research partnership are very early.
Speaker Change: Products, where we have an interest on the scientific side late preclinical or early clinical.
Speaker Change: Sort of.
Speaker Change: Now shape and we continue to look for that.
Speaker Change: And regarding our future.
Speaker Change: The strategies in terms of our share repurchase I cannot comment on that.
Speaker Change: Thank you. Your next question is coming from Mark from from TD Cowen. Your line is now live.
Speaker Change: Hi, Thanks for taking my question a couple of follow ups just on some of the earlier topics.
Speaker Change: On the the Cal our update would you would you expect to be able to talk about next steps in weather.
Speaker Change: Do you think theres, a pivotal path forward, yet or is it the state are likely to maybe not quite be at that level of maturity and then on the.
Speaker Change: On the update of that.
Speaker Change: Hs data just the potentially better efficacy in the IL 17 experienced patients is obviously provocative.
Speaker Change: Any ideas as to how you can paint prospectively identify these patients that may do very well on a jack relative to an IL 17 to maybe help them avoid months of what might be in effective IL 17 therapy.
Pablo: Hi, Mark this is Pablo.
Pablo: All are well certainly discuss next steps when we present the data we always try to do that that's why we wait to have a reasonable number of patients and some follow up. So we can tell you what we're planning to do next so you should expect a conversation on that to happen when we disclose the call our data.
Pablo: On your second part or your second question.
Pablo: You know it's hard to tell at this point I think that.
Pablo: We will look in more depth at the data that we have which are two large positive phase III studies to see if we can identify any specific baseline characteristics have predict for better results, but it's going to be hard to figure it out.
Pablo: Head of time, which patients are more likely to respond to in our 2017 that through a JAK inhibitor.
Pablo: Highlighted very clearly where do we think that patients are more likely to benefit or to use a JAK inhibitor from the start of therapy.
Pablo: And in a proportion of patients that will happen after now 17, and a half to anti TNF, but it's going to be hard to identify those patients ahead of time.
Speaker Change: Thank you. Your next question today is coming from different points from Morgan Stanley. Your line is now live.
Speaker Change: Hi, good morning, Thanks for taking our questions.
Speaker Change: Just following up on the immune Cal our questions. We actually had a similar one for the Jack <unk> 675 program just wanted to see what level of update we can expect.
Speaker Change: This year for that program.
Speaker Change: Also kind of what.
Speaker Change: What you might be able to communicate on next steps are there once we have that data set and then secondly.
Speaker Change: Revisiting our rux XR I just wanted to get an update on where that program stands what next steps are and how you would see that moving forward.
Speaker Change: You're assuming.
Speaker Change: Positive uptick from the FDA there. Thank you.
Speaker Change: So on 607 F.
Speaker Change: That program is if you remember as behind the meter and Colorado body program, because we started in healthy volunteers, we had to do some work on the formulation. So it started to be tested in patients later than the Mexican color antibody.
Speaker Change: So the update that we provide which we intend to do this year may be a small number of patients than the medium color antibody, we're still gonna discuss over the next steps out at that time, but the extent of the update could be more limited, let me hand, it over to Stephen to talk about where we are with our Rucksacks Our program yeah. Thanks on the <unk>.
Speaker Change: Tended release as we communicated earlier this year.
Speaker Change: Key component that we had to achieve to meet bioequivalence, which we did and we have in writing from the regulators that that was achieved what follows is to lay down stability and complete that towards the end of this year and then immediately file that response towards the end of this year. It's a response to <unk> the timeline.
Speaker Change: On that from a regulatory point of view, it's six months. So we expect approval for XR should that will go well by the middle of next year. Thanks.
Speaker Change: Thank you. Your next question is coming from crippled the very kind of them to securities. Your line is now live.
Speaker Change: Hi, This is <unk> <unk>.
Speaker Change: In reference to the slide of the HSA market with a 40000 eligible patients that can be treated by puzzle.
Speaker Change: Is that a snapshot of the current market and when we think about penetration into the different segments. There is an equal penetration that you see public going into for all of those three different segments or just some stand out more than others and how do you see the landscape evolving in the future.
Speaker Change: Maybe I mean, the material can go.
Speaker Change: Complete the puzzle, whereas the slide was was really to give you a picture of 2027, so it's when.
Speaker Change: So we'll be launching.
Speaker Change: And the other is to show that in fact, there is three.
Speaker Change: Three different segments that are part of whirlpool could fit and would be competing one of them. The first one is for patients who don't want to get the injection.
Speaker Change: Injection for many reasons, but that's not new.
Speaker Change: Nothing it's around 10% to 15% of newly diagnosed patients who are moving to systemic therapy. Today, we have some research on that though that the top lines at the top.
Speaker Change: Segment It will stop.
Speaker Change: At around 10% to 15%, which is 3000 patients and obviously as the other piece, which is the dark blue in the graph.
Speaker Change: Is evolving is a place where our newly started patients who are eligible to biology, and that's where basically the competition will be between starting with a biologic versus starting with.
Speaker Change: And I think that will take time, so at the beginning we will be dealing with patients who are not eligible for injectable therapy and a lot of patients who are basically coming out of the pool of existing biologic treated patients and what I wanted to say with this slide is that that number is in fact gold.
Speaker Change: Allows us of the three.
Speaker Change: That's a place where as you have seen that data from our Buffalo was speaking about on the prior biology expose patients we think the first.
Speaker Change: Pool of patients treated with Gogo will be there. In addition to the 3000 early patients was a light blue and then over time as the dark Blue, which is the newly started patient on systemic therapy will be evolving to all treatment. When people are comfortable with the profile of pool. So that's what we are.
Speaker Change: I'm trying to say is that there is a market with biologics plus patients. There is a small segment, who don't want to receive the injectable and <unk>.
Speaker Change: Then over time, we will be gaining share in the salt segment, which is the newly treated patients.
Speaker Change: I can complement on a couple of comments on the evolution of the landscape as Ray said, we are already seeing now in 2024 at the beginning of 'twenty Fi quite a dramatic increase in the churn of patients. They go from our 17, two TNF set and vice versa.
Speaker Change: And we see that continuing to grow all the way to set 2027, where we expect to come with Volvo and <unk> and beyond and that's actually the segment in terms of penetration that we see the highest unmet need from the very beginning.
Speaker Change: So we are very confident and market growth that we see in front of us for polo.
Speaker Change: Thank you. Your next question today is coming from Matt Phipps from William Blair. Your line is now live.
Great. This is Matt <unk> on for Matt Thanks for taking the question.
Speaker Change: Related to Pogo and <unk>, how does the efficacy profile, you're seeing compared to the profile with <unk> inhibition.
Speaker Change: And does the positive data with Hello change your view on the potential to develop backup <unk> antagonist programs.
Speaker Change: So well will discuss how the data compares with a data set once we showed the data later this year I think that related to the <unk>. Two program. We have no intention to when we started this program, we're very happy with the results of Poland CSU.
Speaker Change: We think this proof of concept is very important for Poland for patients with <unk> and we intend to advance to pivotal studies will talk about the details of the data later this year.
Speaker Change: Thank you next question is coming from Ashwin <unk> from UBS. Your line is now live.
Speaker Change: Hi, Thanks for taking my question. So I had a question on jewelry just on these phase III in the first line and relapsed refractory <unk>.
Some mine studies, just if you can change.
Speaker Change: The expectations are here in these studies in terms of the efficacy.
Speaker Change: Would be great. Thanks.
Steven: Yeah. Thank you it's Steven so.
Steven: Tampa Cinema have now obviously is as positive data in relapsed refractory diffuse large b cell lymphoma and that indication is approved and then more recently at Ash last year in mind study in Follicular lymphoma, with really outstanding efficacy in terms of hazard ratios et cetera, and now waiting for the <unk>.
Steven: First line study to report out its event driven it's a large study.
Steven: And we've guided to having data potentially in the first half of this year as soon as we have sufficient events should that be positive would be move very rapidly.
Steven: To complete the submission package and get it across the finish line, but we really like the way the CD 19 antibody shaping now as this new sort of forward and as I said in relapse refractory Follicular and now potentially in first line and with more and more evidence.
Steven: Cumulated in that CD 19 expression is not affected by treatment with this antibody. It's maintained and so people can for example used car T directed against CD 19 after that therapy.
Steven: Profile that we are becoming increasingly encouraged by thanks.
Speaker Change: Thank you next question is coming from Jamie Shen from Deutsche Bank. Your line is now live.
Jamie Shen: Good morning, guys. Thank you for the question maybe.
Speaker Change: Maybe one for Steve and Pablo.
Speaker Change: For the week, 18th over sitting and update it looks like about half of the placebo patients crossover did these crossover patients experience rapid pain reduction from the week like we found with <unk> 12.
Speaker Change: And if I recall around 36% to 37% of the placebo patients were post biologic exposed can.
Speaker Change: Can you give us a breakout of pre and post biologic for these placebo crossovers. Thank you.
Speaker Change: Yes. Thank you it's Steven I'll take that question Pablo May add comments to what he had in his prepared remarks. We thought this was a really important update to reiterate what Pablo said to demonstrate drag effect because once you have that 'twenty eight 'twenty, 9% placebo rate at week 12, and then introduce those patients to either the 40.
Speaker Change: Five or the 75, you can see in six weeks. This dramatic 20 to 30 plus percent absolute improvement in his call rates and that really demonstrates the drag effect of placebo.
Speaker Change: This active drug there. So that's really really encouraging what's more is because of the market breakdown. There are illustrated in the different eligible potentially eligible populations, whether it's naive or biologic exposed again, we thought it was important to illustrate the data and biologic exposed patients both too.
Speaker Change: TNF Alpha inhibitors, IL 17, potentially to both and again demonstrate that in a really encouraging and potentially even better activity in those populations as demonstrated by the data you're absolutely right about one third 35% to 40% of patients on the whole of biologic exposed so the.
Speaker Change: <unk> of the population, 60% plus is is naive.
Speaker Change: That's an important population to study it was really important for Europe in terms of getting reimbursement there as well so.
Speaker Change: So the breakdown in the naive versus experience, we didn't tease out directly but you can indirectly work it out and again activity shown across the board. Thanks.
Speaker Change: Okay.
Speaker Change: Thank you. Your next question is coming from Salim Sayed from Mizuho Securities. Your line is now live.
Speaker Change: Great. Thanks for the question guys just maybe one for me on the Knick timber actually so a pretty good beat this quarter I'm. Just curious if you maybe comment on just some of the.
Speaker Change: Dynamics with the $14 million of sales was there anything there, particularly one timer that we should be aware of and then kind of related to that.
Speaker Change: A J code going effective for 125, how much of a tailwind has that been kind of through the.
Speaker Change: Through the month of April Thank you.
Speaker Change: By selling Mohamad here again, thank you for the question Yeah look so let me just start by saying, we're very pleased with the launch performance. So far our team has done a really effective job of driving broad and productive utilization of Nick timber as you heard earlier in the prepared remarks, 95% of our top accounts are using the kimbo, 70% of all targeted.
Speaker Change: <unk> are already using the timber and from a onetime perspective, there isn't really much there we're seeing that penetration and productivity continue as you would expect Nick timber. This early on is used primarily in that fourth line plus patient and there is obviously a bolus of patients with an urgent need for these new treaty.
Speaker Change: Options, I think thats, where youre seeing the kimball's rapid uptake really take both the great news, though is that these patients are seeing a rapid response, that's very favorable which is going to naturally encourage providers to use Nick timber earlier in treatment and then the last thing maybe I'll touch on from a onetime perspective as you know we have a generous EAP.
Speaker Change: Program in the first quarter only 50% of those patients moved on to paid drug and the other 50% or so will come.
Speaker Change: In.
Speaker Change: Q2, and then.
Speaker Change: As you would expect when a new product is launched there is certainly an inventory dynamic that you see in Q1, so about a third of our sales in Q1.
Speaker Change: <unk> also coming from some inventory build but we expect that to be stable for the rest of the year.
Speaker Change: Okay.
Speaker Change: Thank you. Our next question today is coming from Kevin Clark Gardner from Evercore ISI. Your line is now live.
Speaker Change: Hey, guys I just wanted to quickly follow up on the tougher first line phase III <unk> trial.
Speaker Change: I believe on the slides you noted the data got moved to the second half of this year I think Stephen you May have noted data was still in the first half potentially I just wanted to confirm the latest guidance and also clarify if zero point 703 hazard ratio from <unk> trial is a reasonable benchmark. Thank you.
Speaker Change: Yes, Kevin it's Steven and it's always tricky with event driven studies to be precise as you know and when data will ultimately come, especially when it spans a quarter change, but you can read in the marks from my remarks that we expect it sometime soon we are getting close to the required events to trigger the analysis what are they.
Speaker Change: Following database closure cleaning independent review of radiology et cetera. So it may it may track as later, we see and that could be a positive thing if those obviously delay of events is due to two activity and I think the the Pahlavi effect in first line diffuse large b cell lymphoma.
Speaker Change: Is probably in the ballpark of a reasonable benchmark because its a similar population of the more severe people with this disease are the ipi highest scores in terms of prognostic index and it was just to remind everyone. The first positive study increase in cure rates in first line diffuse large b.
Speaker Change: Cell lymphoma in a long time, obviously with the CD 70 non mechanism, we really interested now in dual inhibition of <unk> 19 in 'twenty. We've shown data just to be repetitive in relapsed refractory Follicular and now we'll see what the first line data shows we.
Speaker Change: He will announced because of the materiality of this data as soon as we have have it available and we're waiting for those events.
Speaker Change: Thanks.
Speaker Change: Thank you. Our next question today is coming from Jay Olson from Oppenheimer. Your line is now live.
Speaker Change: Oh, Hey, thanks for taking the question and congrats on all the progress for your CDK <unk> inhibitor.
Speaker Change: The key data points, we should be looking out for in your Astro update and.
Speaker Change: What are the gating factors to starting the phase III study in ovarian cancer, and especially if you could talk about for companion diagnostic and how that's progressing thank you.
Speaker Change: So thank you for the question. So what you will see it Oscar as an incremental update.
Speaker Change: You remember, we presented a very comprehensive.
Speaker Change: Data set at ESMO last year.
Speaker Change: <unk> will provide a little bit.
Speaker Change: More data more follow up in some of those patients I think more importantly to a second part of your question as we are in process of implementing the pivotal trials in platinum resistant ovarian cancer. So that's moving forward. We are moving forward with the diagnostic as well that's advancing very well and we are conducting.
Speaker Change: A combination phase one study in combination with Bevacizumab, which is necessary to launch the platinum sensitive ovarian cancer types are all of those things are moving forward as we speak.
Speaker Change: Thank you. Our next question today is coming from Kelly <unk> from Jefferies. Your line is now live.
Speaker Change: Yes.
Clay: Good morning, this is clay.
Speaker Change: Kelly Congrats on that David.
Speaker Change: Mike just one ish.
Speaker Change: No.
Speaker Change: Please go ahead Sir please.
Speaker Change: Please go ahead Steve.
Speaker Change: Thanks, Rob.
Speaker Change: Thanks Roger.
Speaker Change: At this point in March.
Speaker Change: At this time.
Speaker Change: Evolve over time.
Speaker Change: I'll, let Jason.
Speaker Change: What's the timeline.
Speaker Change: Sure Scott.
Speaker Change: Thanks, Jim.
Speaker Change: Okay.
Speaker Change: The question was about <unk> and where it's used them go launcher. Yes. Thank you for the question. Let me take the net timber piece and then I'll pass the timeline for Pogo Hs.
Speaker Change: Pablo and Steven.
Speaker Change: As I mentioned.
Speaker Change: Nick timber.
Speaker Change: When when introduced in such an unmet need.
Speaker Change: That currently exists. We're currently seeing it used in really primarily in the fourth line plus patient is as you would expect there's a bolus of patients with gvhd late stage that have an urgent need for new treatment option, and that's where I think Nick timber will make an impact as soon as it gets introduced like I also mentioned.
Speaker Change: Great News, though is that we're seeing these later stage patients respond very favorably customer feedback has been very positive.
Speaker Change: With some sharing that theyre seeing that timber.
Speaker Change: Really demonstrate its rapid and broad efficacy profile that we're seeing in clinical trials and practice and that will naturally move Nick Tembo earlier line Nick.
Speaker Change: Nick Tim go.
Speaker Change: And our perspective.
Speaker Change: As a key differentiator, which is the mechanism of action, which is completely different pathway than other approved agents, making it simple I think a great addition.
Speaker Change: An option to be used right. After jakafi in the third line so whether it's.
Speaker Change: In the third line now versus reservoir rock.
Speaker Change: We're not I think.
Speaker Change: Soon to be told but we're really optimistic about the competitive profile and the customer feedback so far and again, where we're really optimistic about it being used earlier in line once.
Speaker Change: Providers and patients get more experience with it yes.
Speaker Change: And Kelly in terms of the timeline for the Hs submission.
Speaker Change: Obviously, you've seen the efficacy data and the safety profile through week 12, and now through week 18, very clean the key component of this is negotiated with the regulators as to how much of this safety they'll require at the time of initial submission versus the ability to supplement that is at the four months safety update.
Speaker Change: <unk> Hasnt changed we wanted to do it as quickly as possible towards the end of this year tracking potentially into early 'twenty six at the moment and we will provide more precision on that when we have more precision. Thanks.
Eric Schmidt: Thank you next question is coming from Eric Schmidt from Cantor Fitzgerald. Your line is now live.
Speaker Change: Hi, This is Jim again.
Eric Schmidt: Good morning, everyone.
Eric Schmidt: Two questions from me a quick one on <unk> could you comment on.
Eric Schmidt: That $14 million of what proportion of that is inventory it looks securities from let me say congrats.
Eric Schmidt: And then one question on plays that Wendy Hs and the longer term data. After week 12 could you talk about how.
Eric Schmidt: The dropouts are treated in that latest section.
Eric Schmidt: And by the patient.
Eric Schmidt: ASCII medications like antibiotics in the week 12 controlled period with any kind of added back in because I think that was part of that and I'll Miss Linda.
Eric Schmidt: Criteria.
Speaker Change: Imogen Mohamad here. Thanks for the question on Nick timber.
Eric Schmidt: In just the first couple of months, we're seeing about 20% to 30% of.
Eric Schmidt: The sales so far is really made up of inventory, but as I mentioned multiple accounts have already re ordered and that inventory level continues to be stable. So that's what I would expect for the rest of the year.
Eric Schmidt: And then imaging. Thank you on the long term data.
Eric Schmidt: Really interesting. So we obviously had a very conservative approach in terms of the analysis in the non responding imputation and that anybody who discontinued for whatever reason was considered a non respond very similar modified approach, which some other competitors are using we will analyze both and at some point in time.
Eric Schmidt: Provide both we expect the modified NRI actually to have slightly better numbers.
Eric Schmidt: And then the conservative approach we use so thank you for that question an important one.
Speaker Change: Thank you next question today is coming from Evan <unk> from <unk>.
Speaker Change: BMO capital markets. Your line is now live.
Speaker Change: Hi, Malcolm Hoffman on for Ed. Thanks for taking our question for obsolete you noted a slight reduction in inventory, which maybe dampened sales could you quantify the impact of any further and then also can you provide any additional commentary on how you've seen two usage in the U S progress I know at the start of the launch.
Speaker Change: This was highlighted as an expansion opportunity.
Speaker Change: I still think we could see more tube usage per patient over time. Thank you.
Speaker Change: Hi, Michael and MS. Christiane I'll, let me take the first part of the question regarding Oxy Laura in the inventory as I mentioned in my prepared remarks are in the U S.
Speaker Change: Net revenue growth was 20% with a PE demand growth, 24%. The difference came from the reduction in inventory days reduction in inventory was mainly because given where the end of the year holiday happened took place this year, which was in the middle of the week.
Speaker Change: Tell us about.
Speaker Change: Before that so it impacted Q4, and we saw that.
That inventory level.
Speaker Change: <unk> back down in Q1 of the year.
Speaker Change: As I mentioned.
Speaker Change: We look at the current inventory levels.
Speaker Change: Within our <unk>.
Speaker Change: Normal range and expect to continue to be pretty stable at those levels.
Speaker Change: And I'll comment on the on the tube usage over time and what we expect we expect increased utilization overall and bought indication I think it's driven by two dynamics are continuous prescription growth, which includes obviously the addition of new patients. So theres timing bodes indication as well as the use.
Speaker Change: Is it just the tubes across the extensive patient population that we have.
Speaker Change: Build so far and then to continue to close with that is the feedback that we continue to get from on the patient side highest level of patient satisfaction or people that have used <unk> and on the HCP side, we continue to see the willingness to utilize in more in the coming future. So when we put everything together we expect.
Speaker Change: Higher utilization in the coming quarters.
Speaker Change: Thank you. Our next question is a follow up from Michael Schmidt from Guggenheim. Your line is now live.
Michael Schmidt: Oh, Hey, thanks, guys for taking the follow up.
Just another one on <unk>.
Michael Schmidt: This continued increase in high school 52 week 18 hours. It looks very very interesting did you observe a similar trajectory awesome for the highest score was 75 outcomes.
Speaker Change: And the other question I had is just on your cameras T 12, D inhibitor, where I know you've guided to POC data later this year just wondering how you think about differentiation in the competitive landscape. There just given we've seen some data recently at ACR. Thanks for taking the follow ups.
Speaker Change: So Michael I'll start on the per the Hs a question through the updated data through week 18, obviously, we just showed for efficiency reasons. The his call 50, because that was the primary endpoint and we.
Speaker Change: We wanted to demonstrate that over time, we absolutely will have the others as well his cost 75 et cetera, and the trend I can say is similar to your question I'll hand, it over to Pablo for your <unk> question.
Speaker Change: So Michael Thank you for the question as you know a.
Speaker Change: K Ras inhibition continues to get increasingly competitive I mean, I think there were 57 posters and presentations at ACR.
Speaker Change: And new data continues to be presented.
Speaker Change: We are very happy with the profile of our <unk> inhibitor.
Speaker Change: That study is advancing very well and we will have data to discuss with you later this year I think at that point.
Speaker Change: We're optimistic that our profile is going to be very competitive we're advancing not only single agent, but we starting combinations as well. So we'll have a broader conversation when we have the data, but so far we're very happy with the progress of that program and we think we're going to have a very competitive profile.
Thank you we reached end of our question and answer session I would like to turn the floor back over for any further or closing comments.
Speaker Change: Thank you all for participating in the call today and for your questions. We will be available for the rest of the day for follow up Thank you and goodbye.
Speaker Change: Thank you that does conclude today's teleconference and webcast you may disconnect. Your line at this time and have a wonderful day, we thank you for your participation today.