Q1 2025 Fennec Pharmaceuticals Inc Earnings Call
Speaker Change: Good morning, ladies and gentlemen, and welcome to Fennec Pharmaceuticals' first quarter, 2025, Earnings and Corporate Update Conference Call.
Speaker Change: We appreciate you joining us today for Fedex Pharmaceuticals, first quarter 2025 earnings conference call.
Speaker Change: During which we will review our financial results as well as provide a general business update.
Speaker Change: Joining me from Phoenix. This morning is our Chief Executive Officer.
Speaker Change: And board member.
Jeff: Jeff Hi.
Jeff: Before we begin I would like to remind you that during this call. The company will be making forward looking statements that are subject to risks and uncertainties that may cause actual results to differ from the results discussed in the forward looking statements.
Jeff: Reference to these risks and uncertainties are made in today's press release and disclosed in detail in the company's periodic and current event filings with the U S Securities and Exchange Commission.
In addition, any.
Jeff: Any forward looking statements made on this call represent our views only as of today.
Jeff: And should not be relied upon as representing our views as of any subsequent date.
We specifically disclaim any obligation to update or revise any forward looking statements.
Jeff: This conference call is being recorded for audio rebroadcast on Fedex website www.
Www Dot Phoenix pharma Dot com.
Jeff: Where it will be available for the next 30 days and with that I will.
Jeff Hoffman: Now ill turn the call over to Jeff Hoffman.
Jeff Hoffman: Thank you Robert and good morning, everyone.
Jeff Hoffman: I wanted to thank you all for joining US today as we review our first quarter performance and share the outlook for the year ahead.
Jeff Hoffman: I'm excited to share the details and highlights of our results for Q1 in 2025.
Jeff Hoffman: So the alignment of our organization around clear commercial priorities to enhance field execution and support sustainable growth across key petsmart segments really began back in Q4 2024.
Jeff Hoffman: Much of the work was implemented though in Q1 of this year. Therefore, Q1 was a quarter marked by a stronger strategic focus.
Jeff Hoffman: Disciplined execution and a much more meaningful progress across all areas of our business.
Jeff Hoffman: This was accomplished with really just a few critical activities. Let me go into those the first is the development and implementation of it.
Jeff Hoffman: Targeting model.
Jeff Hoffman: A much more sophisticated model than the organization had in the past it was data driven and prescriber and practice.
Jeff Hoffman: To guide field execution and engagement.
Jeff Hoffman: This was a critical step to better understand our business and our opportunities, especially given our expansion beyond pediatrics into the adolescent and young adult or a way a patient population.
Jeff Hoffman: It's targeting includes a structured tearing of cisplatin prescribers nationally prioritizing tiers like tier one.
Jeff Hoffman: <unk> five.
Jeff Hoffman: Or those who treat high number of patients, which is flat, allowing us to focus on engagements with key academic institutions and large community practices, where pet Bart can have the greatest clinical and commercial impact as a result, the first quarter tier one targets prescribed for pet Mark demonstrated early traction.
Jeff Hoffman: And validation of our focused engagement strategy.
Jeff Hoffman: Some of the examples.
Jeff Hoffman: These accounts are tamper General hospital in Florida, Rady children's and San Diego hung.
Jeff Hoffman: Huntsman cancer in Salt Lake.
Jeff Hoffman: Zuni comprehensive health center in New Mexico, and city of Hope, which is one of the largest advanced cancer centers in the country.
Jeff Hoffman: These are just some accounts and others that have begun to integrate <unk> into their treatment plans.
Jeff Hoffman: Further validating its clinical utility and expanding patient access in real world settings.
Jeff Hoffman: As a part of these efforts we continue to be encouraged by the interest and adoption, we see in the Gateway segment.
Jeff Hoffman: As mentioned on prior calls that this opportunity for this segment is very significant in the U S.
Jeff Hoffman: Estimate that approximately 20000 cisplatin chemotherapy patients are treated annually in the primary types tumor types thyroid cancer breast cancer germ cell antigen.
Jeff Hoffman: The market potential in AIA is greater than the size of the pediatric market and has a favorable reimbursement profile.
Jeff Hoffman: Outpatient reimbursement.
Jeff Hoffman: We also made significant strides on the medical front, increasing positive engagements with key opinion leaders and building momentum around awareness of the impact of cisplatin induced OTO toxicity.
Jeff Hoffman: Our medical team also strengthen their clinical messaging based upon the data and interactions and new medical science liaisons, our MSL that joined our team.
Jeff Hoffman: And are already engaging with national Kols.
Jeff Hoffman: As an example of our cross functional alignment in late April.
Jeff Hoffman: Phoenix and our teams.
Jeff Hoffman: At an advisory board comprised of key opinion leaders from across the nation with specialties in medical oncology Urologic surgery directors of pharmacy. This discussion focused on a Y a treatment paths within academic institutions and these large community practices.
Jeff Hoffman: During this meeting Phenix team gathered additional market insights to further inform and refine our execution excellence moving forward.
Jeff Hoffman: We're also actively working to further enhance our panic here is patient support program to ensure a more seamless supportive experience for both providers and patients at every step of the Petsmart journey.
Jeff Hoffman: These upgrades designed to improve access streamline reimbursement and expand home nursing capabilities fenech.
Jeff Hoffman: Here's.
Jeff Hoffman: Is critical for the health care providers adoption and patient adherence, we experienced improvement in patient adherence throughout the quarter and we expect this to continue throughout the year as we bolster and support our offerings, both with the Hcp's and patients that we serve.
Jeff Hoffman: By removing some of these friction points and delivering a very high touch experience across the treatment journey, we're not only supporting better care, but we're also helping to empower providers to identify and treat more eligible patients.
Jeff Hoffman: This is essential and critical given the growing recognition recognition of hearing loss.
Jeff Hoffman: As an essential part of cancer survivorship as awareness increases our program ensures providers are equipped with the right tools and support to proactively engage patients who may benefit from pet bark intervention, helping us to advance the clinical.
Jeff Hoffman: Axa and also outcomes take care.
Now I'd like to also address the commercial launch efforts and the progress that we're making with pet mark outside the U S.
Jeff Hoffman: Following our exclusive licensing agreement that fenech executed back in March 2024, with nor gene Pharmaceuticals.
Jeff Hoffman: The product is now launched commercially in Germany and in the UK.
Jeff Hoffman: And just this past week, nor gene announced that the Scottish Medicine consortium or SMC has accepted <unk> for use in Scotland.
Jeff Hoffman: Collectively these recent launches market important steps in achieving phenix mission of expanding access to pet Mark and Pat Mark C to cancer patients at risk of hearing loss in the European Union and the UK.
Jeff Hoffman: Also on the global front, the investigator initiated trial in Japan, or STS J O. One evaluating <unk> Mark was fully now enrolled as of October 2020 for the clinical trial STS J O. One evaluates the efficacy and safety of petsmart and reducing audit toxicity induce.
Jeff Hoffman: Spices flatten in children and a ways with localized solid tumors.
Jeff Hoffman: The primary endpoint of this trial is to assess the frequency of hearing impairment at the end of treatment.
Jeff Hoffman: Results of the trial are expected in the second half of 2025 with potential evaluation of both the registration in partnering or licensing of pet market in Japan thereafter.
Jeff Hoffman: Looking ahead, we are building a solid foundation with a laser focus vision as I mentioned as we entered into 2025. This includes deepening our relationships with our key accounts expanding adoption with new existing customers and seeking evidenced based data generation through investigator sponsored.
Jeff Hoffman: <unk> trials.
Jeff Hoffman: We call them <unk>.
Jeff Hoffman: Based on our sharpened messaging, our strategic focus and disciplined execution in the first quarter, we made some meaningful progress across all areas of our business, we're seeing positive momentum.
Jeff Hoffman: In our strategy to move health care providers from trial to adoption of pad Mark.
Jeff Hoffman: The strong momentum has continued in early Q2, and I look forward to continued progress and sharing those results with you throughout the year.
Robert: With that I'll turn it back over to Robert.
Robert: Thank you Jeff.
Robert: Our press release contains details of our financial results for the first quarter of 2025, which can be viewed on the investors and media section of our website.
Robert: Rather than read through all those details my comments today will focus on some key financial results.
Robert: For the first quarter of 2025, the company recorded net product sales of approximately $8 8 million.
Robert: <unk> two $7 4 million in the first quarter of 2024.
Robert: This reflects 18% growth compared to the same period last year.
Robert: And an 11% increase over the fourth quarter of 2024.
Robert: Of significance, we are pleased to report our second consecutive quarter of growth and net product sales.
Robert: As mentioned in March 2025, we are focusing on growing that product sales and anticipate the most significant quarterly growth in the second half of 2025.
Robert: When all of the foundational pillars and initiatives, we are putting in place are expected to materially impact the growth of 10 Mark.
Robert: The company recorded $2 9 million in selling and marketing expenses in the first quarter of 2025.
Robert: Compared to $3 9 million in the fourth quarter of 2024.
Robert: $5 2 million in the first quarter of 2024.
Robert: The decrease on a year over year basis is primarily attributable to the elimination of expenses associated with European pre commercially pre commercialization activities, which occurred in 2024.
Robert: Prior to the announcement of the <unk> partnership.
Robert: To be clear and as stated previously European pre commercialization expenses are not expected in 2025.
Robert: The company recorded $6 1 million and G&A expenses in the first quarter of 2025 compared to $4 1 million in the fourth quarter of 2024, and $5 $9 million in the comparable quarter of 2024.
Robert: For the first quarter of 2025, G&A expenses were consistent on a year over year basis and increased quarter over quarter, largely due to noncash based stock compensation traditionally done in the first fiscal quarter.
Robert: Cash and cash equivalents were $22 6 million as of March 31, 2025.
Robert: Company burned approximately $4 million in cash in the first quarter of 2025.
Robert: As stated in our March 2025 call, we remain confident in the full year cash operating expenses to be similar in 25% to 24 or approximately $33 million.
Robert: This includes the step up in marketing expenses and increased head count offset by the elimination of European pre commercialization expenses.
Robert: As is customary with our business cash operating expenses are higher in the first half of the fiscal year largely as a result of our commercial and marketing spending in fiscal year spending patterns.
Robert: Before concluding I'd like to offer some initial perspective on the recent discussions regarding potential tariffs.
As you May know Ted Mark is manufactured in the United States.
Robert: And as such we don't anticipate currently proposed tariffs, we will have a material impact on our gross margins for overall financial performance.
Robert: Thanks.
Speaker Change: Operator with that we will now open up the call for questions.
Speaker Change: To ask a question. Please press star one on your telephone and wait for your name to be announced.
Speaker Change: Withdraw your question. Please press star one one again.
Speaker Change: In the interest of time, we ask that you. Please limit yourself to one question and one follow up please standby, while we compile the Q&A roster.
Speaker Change: Our first question comes from Chase Knickerbocker with Craig Hallum. Your line is open.
Speaker Change: Okay.
Speaker Change: Good morning, Thanks for the questions just a couple kind of metrics that I think would be helpful. On the OE side.
Speaker Change: First.
Speaker Change: So now that you've got a little bit more experience in that segment of the market.
Speaker Change: Can you sit on kind of what the average number of vials per patient per full treatment has been.
Speaker Change: And kind of how that's compared to your expectations and then kind of what percentage of patients are kind of making it through that full course in and maybe how that has been has improved and how that informs your patient support program.
Speaker Change: Sure Hey, Chris how are you. Thanks for the thanks for the question.
Speaker Change: Yes, we are seeing on average about 30 vials per patient in the <unk> space that can range, obviously, but on average about 30.
Speaker Change: Again, you know this is a kind of a weight based dosing regimen. So it depends on the size.
Speaker Change: As you can imagine we're seeing.
Speaker Change: And one of the things that were improving on is our adherence numbers and we're seeing that that range is around 50% of the patients are getting through.
Speaker Change: The photo full dose or full adherence and so kind of some of the focus that I had mentioned was its about getting fenech here's in the right place.
Speaker Change: It's fenech, here's what's kind of designed for pediatric use in large institutions, but this product now gets moved out into the community setting and a little bit more of the.
Speaker Change: Use and home <unk>.
Speaker Change: Ministration.
Speaker Change: Adherence is really critical for the product and Thats why we needed to really focus our efforts on re kind of revamping fenech here and making sure that we increase those adherence numbers as high as we can get them and we will see that increase.
Speaker Change: As we move throughout the year.
Speaker Change: And what capabilities in the <unk> program.
Speaker Change: The biggest drivers of improvement or where are you kind of sought to drive adherence improvement from.
Speaker Change: Yes, I think it's just redesigning the program to really be focused on giving this product and potentially in the home setting with our partners we have.
Speaker Change: Partners that.
Speaker Change: And.
Speaker Change: Organizations that.
Speaker Change: We had set up to make sure this product be administered there.
Speaker Change: So there are a whole bunch of different details chase I can walk through with you offline.
Speaker Change: But those details needed to be really ironed out to make sure that that experience went well in.
Speaker Change: When we gave when we get this product at home right because remember we're giving this product in some cases six hours after.
Speaker Change: In all cases six hours after some slight it's been given so it's.
Speaker Change: In the home setting it's all of the all the details to be ironed out to make sure that that that administration goes well.
Jason: Yes, Jason I'll, just add a little bit.
Speaker Change: But just to make other people aware.
Speaker Change: When we are administering the AIA population largely done outpatient.
Speaker Change: Or is as Jeff did.
Speaker Change: In the home health setting.
Speaker Change: So the education of the product.
Speaker Change: Awareness and in particular, the administration and what you expect the antiemetic.
Speaker Change: Hydration and so we've really put a focused effort and a concentrated effort with our <unk> program and with our medical team that as you know we've augmented.
Speaker Change: So I think that is all speaks well to what progress we've made in the last quarter, but also what we hope to happen.
Speaker Change: Throughout the year.
Robert: Great and then Robert can.
Robert: Can you maybe just speak to so it's opex call. It flat in Q2, and then we should see a little bit of a step down in the back half it sounds like and then.
Robert: Just as far as kind of how that launch with nor gene has went so far I mean is that can kind of been a long I know, it's early but along kind of what expectations were and how does that inform your confidence in and kind of future milestones over the next 12 months.
Robert: Sure Yeah with the Opex, Yes as stated in the.
Robert: Our remarks in the script.
Robert: It's front end loaded for the year.
Robert: That's just the spending patterns and also as we get into trying.
Robert: Trying to create additional awareness con.
Robert: Contracts generally have upfront and then amortized over the rest of the year. So that's just traditional.
Robert: It will see a tailing off in particular as we start Q3 and Q4.
Robert: Nor gene we are we're very enthused.
Robert:
Robert: As we stated they've launched in the U K.
Robert: With an official list pricing.
Robert: 10% less than the U S, but we're excited about that.
Robert: Germany as well.
Robert: It's early on.
Robert: But we're really pleased with the progress.
Robert: Dave commented on some positive indicators of engagement.
Robert: And uptake.
Robert: So we look forward to giving you more updates and material updates.
Robert: As the quarters progress as it relates to the sales milestones.
Robert: There are two milestones that we've communicated before.
Robert: That are of particular note as it relates to 2025 one is.
Robert: The official pricing in Germany.
Robert: That has one milestone related to it.
Robert: Second one would be for the first year sales so as we get closer towards the end of 'twenty five we.
We hope to give.
Robert: More progress updates as it relates to those milestones.
Speaker Change: Great. Thanks, guys congrats on the progress.
Jason: Thanks, Jason.
Jason: Thank you as a reminder to ask a question. Please press star one one.
Speaker Change: Our next.
Speaker Change: Question comes from Sudan, low Gannon with Stephens. Your line is open.
Speaker Change: Hi, good morning, Thanks for taking my questions and great to hear about you do targeting strategy, how it's really showing in the stronger first quarter.
Speaker Change: On that front.
Speaker Change: Do the prescribers noteworthy land on the peering.
The algorithm that you have and is there any.
Speaker Change: Incentives in terms of reimbursements that they may get.
Speaker Change: Tier two tier three prescribers were able to move up to be considered a tier one.
Speaker Change: Yes, I mean, we don't see Dan. Thanks for the question I appreciate it and we don't typically share that information with our with our providers obviously they are.
Speaker Change: They realize they are high prescribers of cisplatin and it's one of the reasons why we're we're in there in their office is trying to educate them and I think many of them realize that.
Speaker Change: The impact of OTO toxicity is having I think.
Speaker Change: More where we see the interest and the reason why we target. These high prescribers just because they do see the impact of what's happening and in some cases.
Speaker Change: There there is still.
Speaker Change: Significant lack of awareness not only of <unk>, but also of what the impact of other tested toxicity is having on their patients and so I think it's really critical for us to get to start there and.
Speaker Change: To start at that top tier when it comes to.
Speaker Change: Physicians.
Speaker Change: Throughout that.
Speaker Change: That hearing or that targeting process.
Speaker Change: Starting at tier one because.
Speaker Change: Our of our size and because of the amount of folks that we have out there, but eventually we will move down.
Speaker Change: Throughout and we Shouldnt see any any differences in reimbursement or any differences in our conversations as you start to move out throughout the rest of that list.
Speaker Change: Yes, it's great to hear.
Speaker Change: And then just to add there is no there is no different.
Speaker Change: Difference in terms of our pricing or reimbursement as it relates to the tiers.
Speaker Change: Really more so that we can focus our commercial team.
Speaker Change: On those top level accounts, but obviously, if we make progress on a tier two or tier three we're just as focused and provided just equal support and as well as pricing and reimbursement options.
Speaker Change: Yes, that's great to hear.
Speaker Change: Currently like regionally a leak in the United States do you have a.
Speaker Change: Pretty much most regions covered now among.
Speaker Change: These tier one do you have like pier.
Speaker Change: Tier one accounts in each region at this point that you're honed in on or is there areas that are still need to be kind of targeted and maybe just get more.
Speaker Change: I'll put hold.
Speaker Change: In certain areas in United States.
Speaker Change: We're covering.
Speaker Change: We're now deploying our commercial organizations throughout the United States and this peering or these focused and large.
Speaker Change: Academic centers and large community centers are being targeted by our by our commercial organization. So it's throughout the country.
Speaker Change: Okay Cool and then next on.
Speaker Change: The.
Speaker Change: Since you've kind of been on the market now for over a year.
Speaker Change: May be able to see that the differences between the pharmacy formulation to compounding component versus pet mark or just how much the breakdown there could be between the two.
Speaker Change: More education.
Speaker Change: Yes.
Speaker Change: The ability to get out to the physicians and prescribe prescribers.
Speaker Change: Kind of helps get credit Mark Moore.
Speaker Change: Traction there or do you still see a small percentage of maybe some company pharmacy are coming through trying to.
Speaker Change: Get solution out to.
Speaker Change: Okay.
Speaker Change: Any way to eat into that if possible.
Speaker Change: Yeah, no. It's a good question.
Speaker Change: I think where you are asking is are we seeing any inroads even in not just a way, but in the pediatric setting and in accounts that potentially work compounding in the past and you know our medical team.
Speaker Change: Has.
Speaker Change: And I've asked them to continue to target. These institutions and we've had some really exciting discussions with institutions, where we have maybe in the past have been kind of shut out of those discussions because of.
Speaker Change: And the compounding issue and any issue with reimbursement and the Drg's. So we're re engaging.
Speaker Change: In every instance that we can in these organizations.
Speaker Change: I'm, hoping to share potentially some successes in the future with some of these discussions that we're having but this is all really surrounding around I think as we upgraded and improved.
Speaker Change: Our competencies with our medical team.
Speaker Change: Got you great one more last one if I could squeeze it in.
Robert: Maybe a question for Robert.
Robert: Terms of the revenue growth and the progress that you're making maybe the second half of this year being a little bit.
Robert: Better on that side is there a revenue number and with the current level of opex or maybe slightly lower that you'd think that you can consistently breakeven or also obviously be EPS positive going forward is that something that we can maybe expect for the second half of this year.
Speaker Change: Yes, thanks for the questions Sudan.
Robert: As stated.
Pleased with two consecutive quarters of growth and I think that should be specifically highlighted a noted.
Robert: But we're not done yet so our goal is to continue that growth throughout the year.
Robert: We are focused on the back half of the year as having that growth from all of these pillars and the foundational put into place with the initiatives, including our new commercial leadership team augmentation of staff et cetera.
Robert: So we look forward to giving you more progress there as it relates to cash flow breakeven another metric that for us internally its very very important.
Robert: We were close to it in Q4.
Robert: But what Hasnt changed is that total revenue product sales number that we need to get there and thats roughly eight 5% to $9 million of sales.
Robert: As I stated.
Robert: For the year, we will have roughly 33% to $34 million of cash opex. So that's how we think of it internally.
Robert: From a GAAP EPS perspective, there is some fluctuation quarter to quarter, primarily based on stock based comp.
Robert: With the higher parts, obviously being in Q1.
Robert: But if we get to those levels 859 million, we start generating cash we start generating earnings and internally, that's a big focus for us.
Speaker Change: I appreciate all of the answers the questions and congrats on the great quarter too.
Robert: Thanks. Thanks, So thank you Dan.
Operator: Thank you. Our next question comes from Jason Mccarthy with Maxim Group. Your line is open.
Speaker Change: Hey, guys. This is Michael <unk> on the line. Thank you so much for taking my questions today.
Speaker Change: No problem Hi, Michael.
Operator: Okay.
Speaker Change: So I just wanted to see if you could touch a little bit on.
Operator: Sure.
Operator: Where youre, making these initial inroads into the <unk> setting is this mostly in those.
The smaller proportion of patients that are treated at those NCI centers or are you meaningfully penetrating now into the community setting.
Operator: Yes.
Operator: The MTI centers, we've said in the past are critical obviously for this.
Operator: Where they have these <unk> centers of excellence right and you see those in multiple places around the country and those are places obviously, we want to target because we know that a lot of the gateway a patients will.
Operator: Get treated in the centers, but we're also seeing.
Operator: This though.
As we move out into the community and some of the and I think our targeting has really kind of allowed us to do that to get into to places, where we typically probably wouldn't have gone.
Operator: Not just in the center itself, but.
Operator: In these in these community settings. So we're seeing growth in both places I think the community setting.
Operator: As well as the academic are probably as we get.
Operator: Much more focused on on.
Operator: Our efforts will play critical roles for.
Operator: In both settings. So I can't tell you that one is right now more important than the other.
Operator: But we've got a team that can be able to do that and be able to approach.
Operator: These top tier targets since these large cisplatin users whether they are in the academic or community setting.
Operator: Alright. Thank you and then just on the on the community setting in particular some of the infusion centers has.
Operator: The operating hours of the centers remain the challenge for this anyway setting or.
Operator: Some of the initiatives that you're working on kind of overcoming that challenge.
Operator: Yeah, Yeah, it's a really good question because and that's why we mentioned the fenech hears.
Operator: Sure.
Operator: Enhancements that we had to make and it is something that we needed to make in because.
Operator: Because when a physician realizes that he wants to prevent auto toxicity, but doesn't have the ability it doesn't have.
Operator: A chair to have that available.
Operator: Available because they're center closes at a certain time.
Operator: Moving with fanuc, here's and with that team to be able to move.
Operator: Move into home health and into administrating outside that.
Operator: That infusion center some infusion centers do stay open later.
Operator: And those.
Operator: And a lot of cases will administer pet bark in that center, but we want to make it seamless to the point where.
Operator: If there is a situation where a patient wants to get this outside of these infusion centers that we have a program available it's easy.
Operator: It's.
Operator:
Operator: It allows the patient to be able to be confident that this product can be given in a home setting and we now have achieved that we've achieved multiple.
Operator: Administrations of pet market in a way a patient in the home.
Operator: And.
Speaker Change: I feel really really confident that this is.
Operator: A big opportunity for us as we move forward.
Speaker Change: Alright, Thank you I really appreciate the additional clarity.
Operator: You got it thanks for the questions.
Speaker Change: Thank you as a reminder to ask a question. Please press star one on your telephone again that is star one one to ask a question.
Rob: Our next question comes from Rob <unk> with H C. Wainwright Your line is open.
Rob: Alright, thanks, very much for taking my questions just on the ex U S. Front can you maybe give us a sense of your most updated thinking regarding.
Rob: Any additional remaining ex U S territories that you see is particularly strong and potential future opportunities for pet Mark and also on the European side. If you could maybe run through for US what you expect to be the cadence of new country by country introductions of pet Mark fee.
Rob: As we look through the remainder of 2025 above and beyond the countries in which the product obviously has already been launched.
Rob: Yes, there is the big five in Europe. They are focused on moving again of course, Scotland just coming on.
Rob: And getting approval.
Rob: <unk> is exciting, but again another country, but obviously a small market, but it's still.
Rob: It's still impactful you can think of.
Rob: Countries.
Rob: As we as they focus themselves is.
Rob: Next up our Spain, Italy.
Rob: And France, and you can start to kind of think through.
Rob: And obviously, then really continuing to expand.
Rob: Both in Germany, and the UK as the launches really only got started a month or two in the first quarter. So they really the second quarter will really be the first full quarter of the launches in both those countries as well. So we continue to be excited and bullish on on what it is that theyre doing they've got a great team.
Rob: <unk>.
Rob: We meet with them often.
Rob: We share best practices.
Rob: And.
Rob: And we share data that we can gather and but it goes both ways as well we're learning from them.
Rob: There are milestones that Robert talked about that are potentially achievable towards the end of this year and.
Rob: We're going to stay close to them on on making sure that those get those get achieved.
Rob: And just very briefly secondary.
Rob: <unk> previously talked to and I. Suppose this is really a question for Jeff about the possibility of looking at other strategic opportunities, particularly in the context of oncology supportive care, but I was just wondering if you had any updated thoughts on that front or if at this juncture at least you can kind of.
Rob: Give us a sense of.
Rob: When you think it would be most appropriate to look into that further and possibly identify.
Rob: Assets or product marketing opportunities that might be synergistic with our accretive to the pet mark value opportunity in the United States. Thank you.
Rob: Yes, good question.
Rob: Really wanted to come in and get the organization.
Rob: Structured correctly and also executing correctly and so.
Rob: The first quarter is really.
Rob: My second full quarter with the with the organization and I really know.
Rob: Or are starting to feel comfortable with the execution and the way we are structured and we have the right leadership in this organization. So yes now you start to kind of think alright, and we have had people in the past even in my time here in the last six months reach out to that.
Rob: In the supportive care space as well as not in the supportive care space to say Hey, we we like we see what you guys are building are there synergies there we're going to continue to look at that I think Robert mentioned about.
Rob: Our financial situation as we move throughout the year and sales continue to grow. This is definitely an option not only here, but also as we talked about Japan.
Rob: And partnership potential opportunities if that.
Rob: Brink's itself to light as well as we get more of the data finalized. So we have a couple of opportunities like that that I think are really critical for the future.
Rob: And also are additive to not only what we're doing in the commercial organization here in the U S.
Rob: But those opportunities are additive to what it is that we potentially could deliver.
Rob: That's a good question.
Rob: Thank you. Thank you.
Thank you I'm showing no further questions at this time I would now like to turn it back to Jeff Hoffman for closing remarks.
Jeff Hoffman: Thank you and thanks for the questions, everyone and being a participant on the call. So in closing.
Jeff Hoffman: I'd like to say that Q1 was really a pivotal a pivotal and exciting start to this year for the company marked really strong execution of our team.
Jeff Hoffman: It marked a strategic clarity and real momentum and we want to continue that momentum and Youll see that as we go throughout the year. We're encouraged by the early impact of our foundational work.
Jeff Hoffman: It remained to be focused on building, a sustainable and valuable business here.
Jeff Hoffman: Through deeper engagement.
Jeff Hoffman: As I mentioned smarter support and continued innovation in this space. So thanks for joining today I really appreciate it Rob.
Jeff Hoffman: Robert and I look forward to keeping you updated.
On our progress throughout the year. So thank you.
Jeff Hoffman: This concludes today's conference call.
Jeff Hoffman: You for participating you may now disconnect.
Jeff Hoffman: Okay.
Jeff Hoffman: [music].
Jeff Hoffman: Okay.
Jeff Hoffman: [music].
Jeff Hoffman: Yes.
Jeff Hoffman: Okay.