Q1 2025 Supernus Pharmaceuticals Inc Earnings Call
Speaker Change: Good afternoon and welcome to Supernus Pharmaceuticals' first quarter 2025 Financial Results Conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. Instructions will follow at that time.
Speaker Change: As a reminder, this conference call is being recorded. I would now like to turn the conference over to Peter Vozzo of ICR Westwick, Investor Relations Representative for Supernus Pharmaceuticals. You may begin.
Peter Vozzo: Thank you, Lauren. Good afternoon, everyone. Thank you for joining us today for Supernus Pharmaceuticals First quarter of 1025 financial results conference call.
Peter Vozzo: Today, after the closing of the market, the company issued a pest release announcing these results
Peter Vozzo: On the call with me today is the first Chief Executive Officer of Jack Khattar, a Chief Financial Officer of Timothy Dec.
Peter Vozzo: During the course of this call, management made certain board looking statements regarding future events and the company's future performance.
Peter Vozzo: These four-looking statements reflect some harnesses current perspective on existing trends in information. And he said four-looking statements are not guarantees of future performance and involve risks on uncertainties, including those notes and risks after section of the company's latest S&D products.
Peter Vozzo: Actual results made it materially and very objective in the employment status.
Peter Vozzo: For the benefit of those of you who may be listening to the replay, this calls being held in recorded on May 6, 2025. Since then, the company may have made additional announcements related to the topics discussed. Please reference to company's recent press releases in current filings of the SEC.
Peter Vozzo: Supreme has declined any obligation to publicize these poor living statements except as required by a flippable security's loss, a mountain call in New York.
Speaker Change: Thank you, Peter. Good afternoon, everyone, and thanks for taking the time to join us on today's call. Our first quarter results reflect once again double-digit revenue growth from our core products, as well as solid growth in adjusted operating earnings.
Speaker Change: Total Revenue is Excluding for Candace R and Oxcelerex R increased by 26% in the first quarter compared to the same quarter last year.
Speaker Change: Driving this growth was the robust performance of both KELV and GoCovered. These two products collectively accounted for 67% of total net sales. What propendates are in oxterics or accounted for only 9% and 7% respectively.
Speaker Change: In the first quarter, Calbreed grew by 22% in prescriptions, as reported by IQDIA, and by 44% in net sales.
Speaker Change: The product ended the first quarter in a strong position with monthly restrictions of March reaching an all-time high of 75,277 of 25% compared to same period last few
Speaker Change: In addition, we continue to expand the prescriber base for Calorie with the number of prescribers in the first quarter reaching 34,416, which is up by 23% compared to the first quarter last few
Speaker Change: We are also excited about the new data from the Open Label Study in adults with ADHD and
Speaker Change: The data from all 161 adult patients will be presented at the American Psychiatric Association annual meeting later this month.
Speaker Change: The data shows significant improvements in clinician and patient rated measures of ADHD, depression and anxiety symptoms, and the safety outcomes in the trial were consistent with the double-blind
Speaker Change: Regarding the recovery for the first quarter of 2025, prescriptions increased by 12% and net sales increased by 16% compared to the same quarter last year
Speaker Change: The Medicare Inflation Reduction Act with the Reduced Patient Out-of-Pocket Costs
Speaker Change: Draught increased preferentials for recovery among Medicare patients in the first quarter compared to the same period last year.
Speaker Change: On average, Gokavri's Medicare's copay declined by 42% compared to the first quarter of 2024 and by March 2025, 84% of Gokavri's Medicare restrictions were costing patients less than 25 dollars
Speaker Change: In addition, prior authorizations and medical exception approval rates remain high in the quarter.
Speaker Change: These new dynamics and the resolving growth in the first quarter suggest that any potential negative impact from increased mandatory Medicare manufacturer payments for the year could end up being offset by increased prescriptions and gross sales in Medicare.
Speaker Change: Early in the second floor, we launch a natural Supernus-next growth program.
Speaker Change: It is the first and only subcutaneous apomorphine infusion device for the treatment of moral fluctuations in adults with advanced Parkinson's disease.
Speaker Change: It was launched with a support team of experts, including nurse education program and access support, and utilizes our existing Parkinson's disease sales force and infrastructure.
Speaker Change: In this role, response from physicians has been encouraging based on patient and home
Speaker Change: In only a few weeks into the launch more than 75% of the sales territories that generated one more patient enrollment form with more than 100 prescribed submini such forms.
Speaker Change: Switching now to our legacy products for the first quarter of 2025, combined net sales of candy. It's our own accelerates over down 46 percent.
Speaker Change: For the remainder of 2025, we expect further erosion on both product sales and maintain our 2025 guidance of 65 to 75 million in combined net sales.
Speaker Change: Moving on to our CNS pipeline of novel product candidates, we plan to initiate a follow-on phase to be multi-center, randomized, double-mind, placebo controlled trial with SVNA-20 and approximately 200 adults with major of the impressive disorder.
Speaker Change: This study will examine the safety and power ability of SPNA-20 at a dose of 2400 mg given intermittently twice per week as an adjunct of treatment to the current baseline and like the present
Speaker Change: as well as assess the rapid onset of improvement in the process of symptoms.
Speaker Change: As we mentioned on our last call, we completed a pharmacokinetic study of two oral formulations of STN-443 and healthy adults. Both formulations of STN-443 showed adequate biodegradability and well tolerated.
Speaker Change: SVN 443 is our new stimulant-like product candidate for ADHD and other CNS disorders. The company expects to disclose a lead indication for the product by the end of 2025.
Speaker Change: Regarding corporate development, it should be a top priority for us looking for strategic opportunities to further strengthen our future growth with revenue-generating products
Speaker Change: And finally, given the current environment for tariffs, it is difficult to predict what impact, if any.
They feel the potential you have on our business.
Speaker Change: We don't expect tariffs on finished products to impact Calgary, Propendix, or Recovery, or NAPCO, or Apothem, as they are either manufactured in the U.S. or are under arrangements that shield us from impact of tariffs.
Speaker Change: On the other hand, myoblogs that they are going to sell it or finish products are manufactured in Europe or in Canada, and therefore could become subject to import tariffs.
Speaker Change: All our products, raw materials are imported from various countries outside the U.S.
Speaker Change: Therefore, any potential impact from tariffs will likely depend on numerous factors, including of not limited to current
Tim Dec: Timing of any new orders that may be subject to the task, the country of origin for the various materials and the applicable percentage task. With that, I will now turn the fold over to Tim.
Thank you, Jack. Good afternoon, everyone.
Tim Dec: As I reveal our first quarter of 2025 results, place referred to today's press release and attend to you that was filed earlier today.
Tim Dec: Tobal Redmond for the first quarter of 2025 was 149.8 million, compared to 143.6 million in the first quarter of 2024 in the first quarter of 2024.
Tim Dec: Total revenue in the first quarter of 2025 was comprised of net product sales of 142 million and royalty revenues of $7.89 million
Tim Dec: This $3.5 million increase in net product sales was primarily due to increase in net product sales of our core products, Calgary Angle Covers.
Tim Dec: Excluding net product sales and pretend the XR and our stellar XR in low periods, total revenues for the first quarter of 2025 increased 26% compared to the first quarter of 2024.
Tim Dec: For the first quarter of 2025 combined RME and S-QNA expenses were 116.9 million, as compared to 111.4 million for the prior year of quarter.
Tim Dec: The increase was primarily due to higher art and ease spend associated with our ongoing clinical programs as we continue to progress our pipeline.
Tim Dec: Operating loss on a gap basis for the first quarter of 2025 was 10.3 million as compared to an operating loss of 3.2 million for the prior year period.
Tim Dec: This increase was primarily due to higher contingent consideration loss related to the achievement of an Apple-related monstance.
Speaker Change: Yeah, Met Loss was 11.8 million for the first quarter of 2025, our Loss per diluted chair of 21 cents.
Tim Dec: Compared to Jack Knight Arne's of 124,000, our Arne's particular share of zero listens in the prior year quarter.
Speaker Change: on a non-depth basis, which excludes amortization and cannibals, share-based compensation, contingent consideration, and appreciation.
Speaker Change: Adjusted operating earnings for the first quarter of 2025 was $25.9 million compared to $22.3 million in the first quarter of 2024 for the first quarter of 2020.
Speaker Change: As of March 31st, 2025, the company had approximately 463.6 million in cash, cash equivalents, and marketable securities, compared to 453.6 million as of December 31st, 2024 [inaudible]
Speaker Change: This increase was primarily due to cash generated from operations, offset by a $25 million payment of the inactive related milestones in the first quarter of 2025.
Speaker Change: The company continues to have a strong malci with significant financial flexibility for potential M&A or other value creating opportunities.
Now I'll turn you guys [inaudible]
Speaker Change: For the full year 2025, the company re-agreates its financial guidance for total revenue, combined R&D, and SG&A expenses, and now get operating earnings.
Speaker Change: As such, we expect total revenues to range from 600 million to 630 million, comprising net product sales and royalty revenues.
Speaker Change: For the four-year 2025, we expect combined art and DNA expenses to range from 435 million to 460 million.
Speaker Change: Overall, we expect full year 2025 gap operating earnings lost in the range of 15 million gap operating lost to 10 million gap operating earnings.
Speaker Change: and Non-Get Operating Radies to Range from 105 million to 130 million.
Speaker Change: Place referred to the earliest pressure of this issue prior to this call that identifies the various ranges of reconciling items between damp and non-gint. With that, I will now turn the call back to the operator for Q&A. Operator?
Speaker Change: Thank you. At this time we will conduct the question and answer session. As a reminder to ask a question you will need to press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster.
Speaker Change: Our first question comes from the line of Andrew Tsai with Jeffries. Your line is now open.
Speaker Change: Hey, this is John on for Andrew. Thanks for taking the question. Could you just please remind us the key growth of Travis Recalibur in 2025?
Speaker Change: Is it fair that 2025 will be more about volume than price? Or could sales still be driven by volume and price? And then could you just provide a little more color on your decision to move forward with a 20 and MDD? Like what kind of placebo just said efficacy delta? Do you think you could ultimately show and then what can we expect data? Thanks.
Speaker Change: The growth is going to be combined, I mean volume and a little bit of price increase, a very small price increase January but the majority of the growth is going to be based on volume and growth in prescriptions.
Speaker Change: As we showed, we had a really good first quarter or no, typically first quarter, you know, you might see some a little bit slow down in growth or you might see flatish.
Speaker Change: So we're pretty off the mistake on where the band is, the position that's in the first quarter and certainly look forward to more growth in the subsequent quarters. As far as SBNA 20, you know, regarding the
Thank you.
Expectation, as far as you can see, was adjusted.
Speaker Change: You know, improvement in Madras and so forth. If you remember in the open label, and it's very hard, of course, to make these comparisons because it was an open label study. We had very significant reduction in Madras and yet in the face to be subsequently.
We had-
Speaker Change: Lesibo effect in the 12.10 to 12 point reduction in Madras.
Speaker Change: So, if you account for something of that nature and we can do a little bit more than the plus we will buy five to eight points, which is typically what is considered to be clinically and medically relevant and significant.
Speaker Change: that that will be something that certainly will be shooting for. So anything between, you know, around the
5 to 8 points, reduction in matter as placebo adjusted will be clinically significant reduction and that's certainly we hope to get even more than that given the initial in the future.
Speaker Change: Our results are that we had the way back in the open label. And again, the reason we decided to do the follow-on study on 820 is because of the different dosing regimen, so we believe
Speaker Change: The M4Q1 mechanism is as such that this is important that you don't have to hit very frequently every single day, but if you do it intermittently as we did back in the open label, we have a much better and higher chance.
showing the impact of the drop-down.
Speaker Change: Thanks so much. And then when to be possibly expect data readout from the study.
Speaker Change: Yeah, at this point we're looking and we're not promising this yet because there was a lot of work to be done in preparation for the new study but at best case we'll probably start the study before year end this year.
Speaker Change: and therefore we need a good year and a half to finish the study and get data.
So, depending on the equipment, of course, and looking at 200
Speaker Change: patients to be randomized, so depending on how quickly we can do that. Now, it is MVD, so it should go a little bit faster than the TRD study, so that will remain to be seen with certainly of the folks as time goes on.
Great. Thanks so much.
Thank you.
Speaker Change: Our next question comes from the line of Stacy Ku with PD Cowan. Your line is now open.
[inaudible]
Stacy Kuh: Thanks for taking your questions. So the first is on Calbury.
Stacy Kuh: Just how much of the normal seasonality or Q1 dynamics impact to help re-net pricing this quarter and how should we think about the jump to Q2, your remainder of the year in terms
Stacy Kuh: And then maybe could you comment on the level of comfort you might have around helper consensus around $290 million for the year.
Stacy Kuh: As we think about the infrastructure required, maybe talk about the plumbing to make sure all start forms can be transformed into patient prescriptions, getting patients on drug. What are your thoughts on the timing to go for them to start form to getting Annabel to the patient? Thanks so much.
Yeah, there's a running kettle brewing.
Stacy Kuh: Q1, as we all know, discuss, typically tends to have pressure on the growth of the net clearly and the whole net price for prescription.
Stacy Kuh: So in the first quarter, Grostenet went up to somewhere in the early 50s, you know, 51-52 somewhere
Stacy Kuh: It should do very well towards the vessel of the year.
Stacy Kuh: Regarding <unk> the infrastructure the infrastructure is very well established clearly probably the few years that we've been in this space in Arkansas.
Stacy Kuh: An annual coverage.
Stacy Kuh: So the whole infrastructure from.
Stacy Kuh: Sales force for the hub services nurse educators.
Stacy Kuh: Endorsement helped all of that is <unk>.
Stacy Kuh: It's been already established and has been improved activity over the last several years in preparation.
Stacy Kuh: As well for example.
Stacy Kuh: So it is a little bit of volume right now because we just launched the product and we just started getting all the patient enrollment forms.
Stacy Kuh: The DVA good idea as to how long the cycle would be from the patient enrollment form until it actually gets to the product.
Stacy Kuh: From our experience from recovery in April and so forth, we are well within the industry average if not a little bit better.
Stacy Kuh: At the same thing goes with the year prior.
Stacy Kuh: So we're getting the actual endorsements so how many out of the patient.
Stacy Kuh: Patient enrollment forms and actually translating into the actual product that gets into the hands of the patients. We typically run at a little bit better than industry average our rates.
Stacy Kuh: Of the 40% to 50%, but it's in that range.
Stacy Kuh: So we feel very optimistic about.
Stacy Kuh: The process that we have.
Stacy Kuh: And really making sure we can process in these patient enrollment forms and get the product to the patient as soon as possible.
Stacy Kuh: Okay. Thank you so much.
Thank you.
Speaker Change: Our next question comes from the line of Annabel <unk> with Stifel. Your line is now open.
Speaker Change: Hi, This is Jack on for Annabel, Thanks for taking our questions.
Speaker Change: So could you provide maybe some more details around reimbursement discussions and how we should think about the trajectory of the launch for NAPCO are there any points of differentiation that physicians are immediately looking towards compared to something like <unk> pump.
Speaker Change: Yes regarding reimbursement as I mentioned earlier.
Speaker Change: We expect a very good level in percentage of these enrollments loans to end up going through all the way.
Speaker Change: Fulfilled actually fulfill so that the patients.
Speaker Change: Ends up getting the product itself.
Speaker Change: We have complete support for that throughout the process right from the beginning that based on more than phones get.
Speaker Change: Brendan.
Speaker Change: It's really a very high level of service and taking that long.
Speaker Change: <unk> was the hub services, all the way to make sure that the reimbursement adjudication, all that insurance and everything works out as smooth as possible.
Speaker Change: And we have exited before we.
Speaker Change: Really most of our products so to speak we have some early ones that we ran through the process, but that's the process and make sure. It is smooth so that when the product became.
Speaker Change: Became available.
Speaker Change: Some of these forms starting flowing through we had the process.
Speaker Change: Worked out as we can.
Speaker Change: We're pretty confident about that.
Speaker Change: What is the product differentiation.
Speaker Change: I mean, the product clearly first of all it's a very different molecule than any anything that is out there except for of course <unk> again.
Speaker Change: So April morphine is a very.
Speaker Change: Strong important molecule that works very well good dopamine agonist, probably one of the best out there.
Speaker Change: And most of the other immuno that well from the efficacy and the data that came out of the study on <unk> as well as April and in general I mean as a molecule.
Speaker Change: So.
Speaker Change: The only pump clearly.
Speaker Change: <unk> provides that option to patients continuous infusion of April morphine.
Speaker Change: And a lot of patients out there.
Speaker Change: Many choices and if you've been on levodopa with Apple for so many years do you want to add.
Speaker Change: The product that gives you also need to adopt <unk> due on a switch to something else that could be more beneficial. So this has made a decision that clearly the movement disorder specialists with mate.
Speaker Change: As appropriate for each patient they are.
Speaker Change: So there is a clear differentiation for the product, but also from.
Speaker Change: Safety Tolerability and take a look at the label of our product versus the label the other products.
Speaker Change: So some clear differentiation as far as the efficacy either fairly compatible.
Speaker Change: The two products.
Speaker Change: As much of a differentiation.
Speaker Change: So that's the general.
Speaker Change: Framework without having obviously you have to have trials. It is very difficult to make these comparisons.
Speaker Change: Got it and then if I could just ask one more for SPN 820 was there anything you were able to gather from the phase two in treatment resistant depression that could either.
Speaker Change: That program and or give you some extra comfort on the phase <unk> in major depressive disorder.
Speaker Change: Do you see that indication is likely dropped at this point or have you not finish going through that.
Speaker Change: Okay.
Speaker Change: Yes, we didn't see from all the data and everything that we.
Speaker Change: We've been doing since we announced the results we didnt see anything the points to the fact that it's an indication driven.
Speaker Change: Difference that we sold between the two studies.
Speaker Change: The key difference is the dosing regimen, so what I'm, saying is initially we're going to go after the MVD with the follow on study that doesn't mean, we're giving up on the <unk>. So we think the product will work in both.
Speaker Change: But MTBE could be quicker as far as enrollment or what have you and thats why we chose to go with MTV.
Speaker Change: At this point as a follow on.
Speaker Change: So we're not giving up on <unk>, because we think that the product mechanistically. If it works in energy it should work in for Ya.
Speaker Change: And the only reason it didn't work and the phase two B mall slightly because of the dosing regimen.
Speaker Change: Understood. Thanks.
Speaker Change: Thank you.
Speaker Change: Our next question comes from the line of David <unk> with Piper Sandler Your line is now open.
Speaker Change: Thanks, So just a couple for me first on a NAPCO I know these early days, but what are you hearing in the field regarding competitive dynamics versus.
Speaker Change: The the Abbvie.
Speaker Change: Abbvie product.
Speaker Change: And specifically are you are you getting any pushback regarding the use of April morphine in general when there is another sub key pump available that delivers.
Speaker Change: Delta and carbon Delta.
One just talk to the competitive dynamics and what you are seeing and expect to see.
Speaker Change: And then just turning to the pipeline on 443, I know youre going to disclose the lead indication.
Speaker Change: By the end of this year, but since it is a stimulant is it fair to say that sleep wake.
Speaker Change: Could be on the table here, either narcolepsy or idiopathic hypersomnia or both and how are you just thinking about.
Speaker Change: That in terms of its fit for what you plan to do with that asset. Thank you.
Speaker Change: Yes.
Speaker Change: Regarding on their call all I can say is.
Speaker Change: Initially this was again very early.
Speaker Change: As I mentioned in our prepared remarks, we're very encouraged actually with the reaction to the product.
Speaker Change: The receptivity and the response from physicians and the level of activity that we've seen behind the product so.
Speaker Change: We also started to get some initial feedback regarding our circle of care, which is our support system that we give our patients.
Speaker Change: Positive feedback.
Speaker Change: And clearly we've had this program for a number of years right now we've kind of perfected it improved over the year and we've had it for <unk>.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Now, we're applying it to a natural so.
Speaker Change: We emphasize of course the level of service that we're giving our patients and our physicians and we see that as a competitive advantage actually in the marketplace and so far all indications are very positive and very encouraging.
Speaker Change: So everybody because it's very early in the launch of course is only a few weeks.
Speaker Change: But certainly it is.
Speaker Change: So a very strong start.
Speaker Change: Better than our expectations initially and hopefully will continue to be that way.
Speaker Change: And as far as again April morphine versus levodopa currently no pump that is something that physicians will have to make that decision. I mean, if you have a patient. These are patients that are advanced.
Speaker Change: Yes.
Speaker Change: And that's where you get a patient type that you are looking at for these infusion devices.
Speaker Change: This is a patient who has been taking levodopa pardon me loan portfolio five years 10 years 15 years, whatever the case might be.
Speaker Change: You don't want to put them back on <unk>.
Speaker Change: And with the other infusion device because it is zero don't walk out of it.
Speaker Change: You can use it as an add on to the all difficult program to be built by basically half of it.
Speaker Change: Place the oral completely but with our pump because it is April morphine you could continue to keep the patients on the oral levodopa coffee local while at the same time using on that goal and fusion device gives you have April morphine.
Speaker Change: So that's another clear differentiation between the two products.
Speaker Change: And being an add on <unk> growth could be a potential advantage, but we will see in the marketplace.
Speaker Change: Regarding the pipeline it for free.
Speaker Change: We are looking at for free as we have presented earlier long before it is a stimulant potential stimulant ADHD with potential schedule.
Speaker Change: Instead of seed to scheduling.
Speaker Change: So that would be a huge advantage in the marketplace.
Speaker Change: But we're also looking at it for other indications and Thats why we Havent made the final the final selection of what indication whether it be the lead indication.
Speaker Change: We mature the lead indication and potential.
Speaker Change: Indications as well as a follow on to that.
Speaker Change: Indication.
Speaker Change: So we are still finalizing now some of the work we're doing some animal models and so forth and we'll make that decision before year end.
Speaker Change: The exciting asset.
Speaker Change: And.
Speaker Change: But it remains to be seen as to where do we take it initially and then follow on with other indications potentially.
Speaker Change: Okay.
Speaker Change: Okay. Thank you.
Speaker Change: Thank you.
Speaker Change: As a reminder to ask a question you will need to press star one on your telephone.
Speaker Change: Our next question comes from the line of Kristen <unk> with Cantor Fitzgerald. Your line is now open.
Speaker Change: Hi, This is Ian on the line of Kristen. Thank you for taking our questions on calibrate do you have a sense that the proportion of naive patients that are getting on.
Speaker Change: H D medications for the first time and that is.
Speaker Change: Siding.
Speaker Change: I can calculate and then you previously mentioned the combination use with Dan the adult population being around 35% to 40% of the prescription.
Has this changed.
Speaker Change: Okay.
Speaker Change: Regarding <unk> the split of the year sort of business over the sorts of patients so to speak.
Speaker Change: It's around 32%, 33% it bounces around that are completely.
Speaker Change: Naive first line treatment.
Speaker Change: <unk>.
Speaker Change: And then the remaining 67, 68% basically switches or most of them are switches from existing medications.
Speaker Change: The bulk of that switch typically comes from the stimulant side.
Speaker Change: Products like <unk> and all important genetics in general.
And then the 35% of the switches that is coming from the other non stimulants legs prepare back into them and so forth.
Speaker Change: As far as the combination use I think it is still around.
Speaker Change: Between the 34, 35% and 40% and about being in combination.
Speaker Change: It will be interesting to see.
Speaker Change: As the data gets more disseminated and people learn more about some of the data.
Speaker Change: And the label of the product and so forth whether that will change over time.
Speaker Change: It could.
Speaker Change: Especially with a lot of adults, who have a lot of comorbidities, but thats what remains to be seen but at this point, it's still around that range yes.
Got it thank you.
Speaker Change: Thank you.
Speaker Change: I'm showing no further questions at this time I would now like to turn it back to Jack Qatar for closing remarks.
Speaker Change: Okay.
Jack Qatar: Thank you for joining us to learn about our operating performance in the first quarter of 2025. The company has executed well from the loss of exclusivity on tool that's legacy products.
Jack Qatar: Excluding these legacy products, we continue to deliver robust double digit growth in revenues also continued to generate strong cash flows behind the strength of our portfolio, particularly our core products and through the efficiency of our operations. We believe we are well positioned for continued growth beyond that.
Jack Qatar: <unk> transition and our focus on several key areas first driving growth and generating strong cash flow from our core products, allowing us to continue our investments in our pipeline second the launch of our Nashville, and strengthening our leadership position in Parkinson's.
Jack Qatar: Third advancing our innovative R&D portfolio of differentiated first in class molecules and finally, continuing our emphasis on corporate development is a top priority Gulf man hour growth through externals, where trends. Thanks again for joining us. This afternoon and look forward to updating you on our next call.
Jack Qatar: Thank you for your participation in today's conference. This does conclude the program you may now disconnect.
Jack Qatar: Okay.