Hello, everyone. Welcome to the second day of the J.P. Morgan Healthcare Conference. We're so excited to see you. I'm Elizabeth Eguedea. I'm an associate in the healthcare coverage group, and it is my pleasure to introduce Scott Tarriff, the founder and CEO of Eagle Pharmaceuticals.
Well, thank you, Elizabeth. Thank you for everyone here in attendance. Thank you for everybody listening online. You know, another great year in San Francisco. It's just, it's fun going around the room to see everybody has bragging rights to see how many times they've been to this conference over the years.
Just as I have all of these years, I would like you to take many moments to read our forward-looking statements. Okay. We can get going. Anyway, really thrilled to be here this year. Much to discuss today. There's just so much happening at Eagle. There's really a tremendous amount to discuss. I'm not really sure where to start, but we put this slide deck together.
For those of you who have been following us, those of you who are interested, we had what I thought was a wonderful investor day about three weeks ago in New York that's still on our website, if you wanna take a look at it, where we spent several hours going into our pipeline and some of our branded commercial products.
You're here today listening to a company that has traditionally been a reformulation 505(b)(2) company who's transitioning into the goal of becoming a diversified pharmaceutical company. We have in our portfolio now a few new chemical entities. We are developing a first-in-class NCE pipeline that we're spending into with the hope, and we're in the middle of this transition, of becoming a diversified pharmaceutical company.
Just to give you a little bit of background, over the last several years of Eagle, it's been... it really has been a remarkable period of time. We've been in business for 15 years now, which I think just says a lot in this industry to begin with.
We've been generating quite a bit of cash over the years. We have been, and we continue to be, and we will be a very strong, financially driven company. We have now bought back just shy of a quarter of a billion dollars of our stock in the last few years, which has now netted us down to only 13 million shares.
If you're EPS-driven and EBITDA-driven, and you wanna think about what our earnings power is over time, and you look at our pipeline and our products, just think 13 million shares and you can start to figure out what that would equate to. We have net working capital of $63 million, cash and receivables of $112 million right now.
That is after making an acquisition that we made, in the middle of last year for a company by the name of Acacia, which brought us two new chemical entities, Barhemsys and Byfavo, that we'll speak a little bit about. We purchased almost that entire company with cash other than $25 million of stock that we gave the shareholders. We are generating cash. We are reinvesting it in our company.
Our R&D will increase next year, and even with that R&D, we continue to earn a substantial amount of money relative to our size. I think two really important, future-looking comments to make. As we look at Eagle, we've been generating quite a bit of our cash over the years through our bendamustine franchise, and for the first time, we will be getting some competition for the old legacy product, Treanda.
There's been, you know, thoughts about where our bendamustine business is going to ultimately wind up. To be clear, in 2023, can't believe it's 2023 already, but we would expect that we're gonna maintain about 75%, maintain 75% of the bendamustine profitability. We're gonna talk about that a little bit more in some of these slides.
Earlier in 2022, we launched PEMFEXY, which has been really a wonderful product for us. To be clear, and we're gonna explain how we get there, but our anticipation is that we will sell more PEMFEXY in 2023 than we did in 2022. If we're right about all of this, one of the takeaways here is that we have more than ample capacity to make another acquisition.
We will probably use our balance sheet, really for just about the first time, take on debt. Our hope is to make what I would define as an immediately accretive acquisition for branded products that we can just feed into the company. This example, when we made this acquisition of Acacia earlier in the year, you know, these are approximates. They had approximately 70 employees.
We kept about 20 of those employees, and those individuals that we kept with the company were largely in the commercial side of things. We're expanding our sales capability as we go. I think we can bring in more products into the sales team that we have without needing a lot more people in our company.
We have a financial synergy opportunity in front of us that we want to take advantage of. This is, I think, an incredibly important slide that I'm gonna spend some time on. This is a rarity for us as a company, but we're actually gonna provide some guidance today on what 23 looks like. Let's spend some time on these metrics here.
If you just look at this snapshot from what we look like since 2020, we just picked 2020, you know, it seemed like a good starting point. Look at the adjusted EBITDA we've been earning as a company. We earned $64 million, almost 65 in 2020. We had a little bit of a dip down to $43 million in 2021.
We have not closed our fourth quarter. What we elect to do on this slide, we're just giving you the last 12 months from the end of Q3 going backwards, since we haven't closed Q4 yet. I don't think that really matters for the point that I'm trying to get across. Our last 12 months adjusted EBITDA was $125 million, right? If you look at that is up considerably from history.
If you go back to our non-GAAP EPS, we earned $3.54 in 2020. Accordingly, we dip down to $2.59, and we just, you know, those last 12 months, the LTM, $7.54 per share of non-GAAP EPS. I mean, it's just easy to see that that's about a triple from where we were in 2021.
Interestingly, though, as a company, look where we've traded from an EBITDA multiple standpoint. We were trading at about a 10 back in 2020. We jumped to 16. I assume that the 16 was in anticipation of the launches that we had in 2022. Look where we are now. We'll talk about this more.
Since we're at the J.P. Morgan investment conference, we were gonna make this a little bit more numeric and a little bit more financial than we have in the past. You can see that we traded at a three multiple to EBITDA with the $754. Then you just have to ask yourself why, why is that?
Part of the issue, I assume, in speaking to people, is that we've had this concern that 2023 was going to be less than 2022 was because a little bit nervousness around bendamustine. We're gonna spend the rest of this presentation speaking to why we believe our bendamustine franchise is strong, why we believe our growth of our other products, especially PEMFEXY, are strong.
The 2023 range that we are presenting today is an EBITDA number somewhere between $74 million, adjusted EBITDA of $74 million-$80 million. If you go to the right, if we just jump to the right of this page for a second and look at non-GAAP R&D expenditure of $41 million-$45 million, that's also an increase for us.
We're spending more money in 2023 to drive products like CAL02 for severe bacterial pneumonia, which we believe could be a breakthrough therapy worldwide. We're very excited about that. We have a 275 subject clinical trial underway, phase 2 study at 120 sites worldwide, Europe, U.S., and South America, that we're very excited for. You'll see that we are hiring more salespeople to drive these products that we have.
When we get into our year-end earnings call, we'll tighten this up a little bit. That'll be at the beginning of March. You'll see that our expenses are going up, and yet we still think we're going to earn between $74 million and $80 million of EBITDA, which would translate to a non-GAAP EPS of somewhere between 4.20 and 4.53.
I believe that the best year as a company we've had previous to 2022 was about 4.40 a year. We are having one of our best years, and this is in the face of some of the concern people have had around bendamustine, which we'll go into some more detail now.
I would also point out from my point of view, anyway, is that even if you pick the mid-range here of what we believe our non-GAAP EPS is in 2023, we still sell significantly below the multiples of the sector. It's hard to pin down what the real multiples of a sector are.
There's depends on how you define this, how you look at people. From our standpoint, trading at a five to what our earnings are going to be, but, you know, this is the first time that we've spoken about those earnings next year, so maybe that will change. We're trading at a five. You know, pick that earnings that we have.
You're looking at a company that since 2020 has a cumulative annual growth rate here of 6%-9% per year, which I think is outstanding in as difficult of an industry that we're in. We're rather excited about it. One of the takeaways here are we are in great shape financially. We're earning a lot of money. We expect to do that. What you'll see is that we have what we believe is an incredibly exciting pipeline as well.
Okay, here is something that I'd like to take some time because I think it's important. We've known for quite a number of years that eventually we would get some competition in the bendamustine space, and we've been planning for that accordingly. How have we planned for that?
We've planned for that mostly organically by driving our R&D and bringing new products, new additional products to the market. You know, we've had mixed success in R&D like everybody does in the industry, but we did just launch three products in the recent past that's been driving our earnings. If you go back from this timeframe, from about 2016 to 2021, you know, we were a bendamustine company.
It generated about, I don't know, pick a line here, 80%-85% of our revenue historically. With the launches that we've had, if you see here in the last 12 months back to 9/30/2022, that number came all the way down to 46%. We still had record earnings in 2022 by far, and yet bendamustine now is 46% of the business.
If you take our internal forecast for where we think bendamustine will be in 2023, you can see it drops down to 32%, which means that the bendamustine market, although still incredibly important to us, is a smaller portion of our business than it's ever been, in fact, considerably. If we're right about all this, we're still going to generate significant earnings. bendamustine, you know, we get through the bendamustine issues, and it's a smaller and smaller piece of the business right now.
My takeaway on this slide, again, is these legacy products that we have that have been generating all this money for the company will continue to generate a lot of money for the company. We're taking that cash, and we're putting it into R&D, which we'll speak about. New chemical entity-branded R&D.
We used the cash to make an acquisition of Barhemsys and Byfavo. Both of those products are also NCE-branded products. We hope to use the additional cash that we're generating every day, plus using our balance sheet now to make another accretive acquisition somewhere along the way for branded products with long patent life that we can feed into our sales force.
That's really where we're going. We're taking the cash from the legacy business and putting it into what I would say, higher long-term value products. The way we get down to this 32% again is by maintaining a good amount of our bendamustine, a lot of our bendamustine, increasing the PEMFEXY sales, and that's how we will diversify the company by bringing new products into the company. Okay.
Now here are some metrics that we don't usually show either, that I believe that this is, you know, here's where some of this news is for the day to help explain why we believe that our earnings will be as strong as we do in 2023. This first little box, I would point out that the bendamustine market brings us three products, BENDEKA, BELRAPZO, and TREAKISYM.
TREAKISYM is marketed for us in Japan. We have been paying historically since we launched the products, the 1st bendamustine products about seven years ago, a 10% royalty to an early development partner, and that's 10% from gross profits. For an example, last 12 months, we paid $12.5 million in royalties.
Again, if you just think about twelve and a half million dollars of royalty to Eagle, which only has 13 million diluted shares outstanding, and see that's a big piece of our earnings going to development partner. Those royalties had a lifetime cap on them. That cap expired sometime towards the end of Q4. Now going forward, we no longer pay that royalty.
If you think about our earnings that I've been showing as we go into 2023 and beyond, we are freed up of that 10%. That's how you can start to see improvement in our margin and improvement in our EPS as we go forward. As I've been saying, as we meet with investors over the last year, we've been stating that we believe we'll sell more PEMFEXY in 2023, 2022.
I've said it a couple of times today. Let me give a little bit more detail on why we feel that way. But first, let me point out that we believe so much in the product that we have now, bought out a development partner that we had on PEMFEXY that was meant to have 25% of gross profit paid to them.
We wrote a $15 million check recently, and for that, we eliminated that royalty for the first $85 million of profit. For those of you who wanna go make that calculation, I think just numerically, we made a pretty good deal. You know, we'll make a little bit of money on that. But the real value comes, do we earn, do we sell more than $85 million?
Because once we get past that number, the royalty amount that we were paying comes down substantially. At least what I think this is meant to say to everybody is at least we have enough conviction on PEMFEXY that we actually think we're gonna make $85 million of profit.
I think there are a lot of people that have been looking at some of the metrics that you can see through some of the secondary sources would lead you to believe that maybe that's not the case. We believe it is. We were aggressive enough to buy down our royalty, this is part of what's bolstering our earnings going forward.
When you look at the PEMFEXY opportunity, and this is a critical statement for us to make to give everybody, I think, for the first time, a little bit more visibility why we feel the way we do. Let me start by saying that the commercial market for this product is valued at about $550 million, depending on where price is. It's still a reasonably large market. We are actually doing pretty well with PEMFEXY. We left Q4 with a 6% share of that commercial market, a 6% market share of that segment. That's not that easy to see.
We had to take data sources from a couple of places to get to the number, but we're very confident with that we ended 2022 with a 6%. Very importantly, what we're here to say today is that we anticipate doubling that share by the end of Q1, the quarter that we're in now. We think we're going from 6% to 12%, you know, over this 13-week period.
That's really very critical when you start to think about where we are in terms of our profitability. If you take that 6% of commercial, that equates to about $8 million per quarter. If you double that's obviously $16 million per quarter. We haven't closed Q4, so, you know, I don't mean to say that we sold $80 million next year. There's ins and outs.
We had inventory in the system that needed to be worked out with some customers. We have other customers buying inventory in anticipation of having a strong Q1. Those two things need to balance out. If you look at the out movement, the actual usage of PEMFEXY to the end customer, that equates to about $8 million in Q4, as I stated, with the ex-expectation being that that number will double.
I think this is such an important chart. If you will, allow me, I'm going to go back to the guidance chart and take a look. Now that you've listened to some of these metrics over the last 15 minutes or so, I think it should become a little bit more understandable, and maybe we are all a little bit more comfortable understanding why we are as bullish on 2023 as we have been.
Again, if you look at the EBITDA, the adjusted EBITDA number of $74 million-$80 million, now look at it in the context of knowing that we no longer pay the 10% royalty on bendamustine to development partner, that that $12.5 million paid in the previous 12 months is no longer there. The fact that we bought down the PEMFEXY royalty and that the first $85 million of profit that we earn has no royalty attached to it, that'll certainly help the margins and help the EBITDA, adjusted EBITDA number for 2023.
I assume that the run rate of 6% is a pleasant surprise to everyone, and the fact that we are, again, that we have the conviction to say that we think that that share is doubling just in Q1 should help to give you some understanding of why we believe the numbers will be where they are. Just quite frankly, because of the products that we've launched, although important, and I also point out.
I think I forgot to say this, but just as a reminder, that Bendeka, where we received the large amount of the royalties and profitability out of Bendamustine that we get, that that product is still, as of now, patent protected all the way till 2028. We have five more years of Bendeka royalty, which made up 77% of market share in the Bendamustine market in 2022.
That's why we say that bendamustine has been a very important part of this company, will continue to be a very part of this company, will continue into 2028. However, it is less critical to the company that it has been historically because we will be losing some of it to competition, and because we've had new products launched by the company.
All of that said, if you know, if we're right about our $420-$453, we are still trading at a 5x to 2023's EBITDA. Everyone here in the room or those of you listening on the call, you can judge if that's the right price we should be selling at. All we can do is give you the metrics and a better understanding of where we think our business is going and why.
What I would do now is just go a little bit into the products. What is this? one, two, three, four, five, six, seven, eight. By the way, we have eight products on the market right now. I don't think people realize that. I don't think Eagle is thought of as having a diversified company deriving its revenue from eight different products. Here we are, and hopefully, that eight will be growing substantially over time.
Barhemsys and Byfavo, two great products. We're still extremely enthusiastic about them. Barhemsys for postoperative nausea and vomiting and Byfavo for short-duration sedation. Very excited. It's a big part of our future. We expect that, those two products to be a mainstay of our EBITDA going forward, especially as you get to the, you know, 2023 is a ramp-up year, 2024, 2025, 2026.
Those two products are patent protected into the beginning of the 30s. They're both new chemical entities. Very excited about it. You can see the rest of the product lineup. You know, here's where, you know, the potential sea change in Eagle could be, where we're really very excited. We have the short-acting hospital beta blocker, landiolol, which we filed with the FDA.
We have an action date of sometime in late May. We're looking forward to adding that product to our portfolio here before next year is over. We have CAL02. CAL02 for severe bacterial pneumonia. As I said, we have a very large phase 2 study underway. You'll learn as you spend more time with us, we don't do things that we don't do with gusto and with meaning.
For a phase two study, especially for a company our size, to be trying to recruit 275 patients across 120 sites worldwide is pretty significant. We're hoping at about the end of this year, maybe it'll bleed into 2024 a little bit, but at the end of this year, we'll get the 50% results.
On the study, which is a big data point for us. Let's hope we can recruit the way we hope to recruit and get these sites up and running. We're doing a good job so far. Hopefully, we'll announce first patient in here shortly. We'll see what day that is. Big opportunity. Still the second or third largest cause of death around the world. Worldwide, CAL02 has the potential to be a worldwide blockbuster.
We're putting a lot of resource, a lot of time, and a lot of money into a very significant opportunity. If you wanna learn more about CAL02, we can have some calls about it, but the best place to go is to our website because we did have this two or three-hour, four-hour investor day where we had a number of key opinion leaders speaking about CAL02 and the clinical design.
I would urge everybody who's interested in Eagle to go back and listen to that. We have ENA-001. We have an option to purchase a company by the name of Enalare. We have taken an equity stake. We'll take a series of equity stakes based on milestones. The first two are based on time, the second two are based on milestones.
Ultimately, we'll invest $55 million for the right to see this phase 2 study that will be starting later this year. 200 patient phase 2 study. Again, a very large study for phase 2. We have really very, you know, interesting, encouraging data in about 110 healthy volunteers across, I think it's eight phase 1 studies. You know, we have good insight there.
We're studying ENA-001 for three indications, postoperative respiratory depression, which is a very significant market and one that's very much needed. Community drug overdose for respiratory depression for those people who unfortunately have that problem. BARDA has agreed. We have a contract with BARDA to deliver us up to $50 million to develop the clinical program for community drug overdose.
That was a nice surprise to us when we won that contract. We're also studying in premature children, apnea of prematurity. Unfortunately for all these premature babies that have problems breathing after birth. Each three of those indications are very important to society, very important to the patient population. Very proud to be developing drugs like this at Eagle.
I hope you can see, we have the eight drugs on the market. Barhemsys, Byfavo, new chemical entities, landiolol, CAL02, ENA, all eight indications, NCEs. Very long patent life on CAL02 and ENA. landiolol will at least get us five years of NCE likelihood, when that product gets approved. Throw in the other products we have and the ability to make what, relative to our size, a large non-dilutive, accretive acquisition by finally using our debt.
We believe that 23 is positioned to give us a solid return on our investment to continue the history we have at this company of earning significant amount of money, again, relative to our size. Hopefully, the pipeline pans out. We'll protect ourselves from pipeline problems, I suppose, by making an acquisition. All in all, you know, this has been a great 15 years.
You saw some charts that go all the way back to 20-23, and we're expecting that 23 to whenever, you know, out in time into the 30s to 40s, as long as the company is an independent company. This is a company that is focused on shareholder return, focused on earning money, at the same time, investing it back into significantly important products. We've had a great run.
We've had a great trend, as you can see today, and we have a tremendous amount of focus to make sure that trend continues. With that, I would like to say thank you. I believe, Elizabeth, we're opening this up to some Q&A, correct?
Yes, we are. Everyone, let's give a round of applause to Scott. At this time, we are opening it up to questions from the audience. Don't be shy.
I thought you were perishing away a fly.
Oh. Does anyone have anything? I can kick it off with one. You guys can think. I know you mentioned this towards the end of your presentation about your pipeline products. I know you said we could go on your website and have a call about some of them. I was wondering, while we have you, would you mind expanding on what makes some of these newer products that you're looking at unique?
I would love to. You know what I'm gonna do, Elizabeth? We have Dr. Michael Greenberg with us today who is our expert on all of these products. Mike, why don't you come up here for a couple of minutes? You do this great. There's no one I know that has a better way of explaining all of these products. Why don't you... Here, come on up here. Why don't we say a couple words about Barhemsys and Byfavo, and then a little bit about, you know, our three other products that you know so well.
Okay. Thank you, Scott. Barhemsys and Byfavo, the approved products. Barhemsys is the first and only product that has an indication specifically for rescue treatment of post-op nausea and vomiting. In that relatively substantial number of patients who experience post-op nausea and vomiting, despite guideline-directed medical therapy and appropriate prophylaxis.
Barhemsys is the only agent not only with an FDA indication, but more importantly, with prospective well-controlled data to support its use in that patient population. That is a substantial unmet need. Byfavo is a procedural sedative. It's approved for procedures lasting 30 minutes or less for sedation there.
That's also important because it's got some advantages over the other products that are approved in that space. In terms of its limited effect on hemodynamics, in terms of its PK, and really in terms of its opportunity to open up sedation to a larger proportion of healthcare providers.
Some of the other options, such as propofol, really are limited to anesthesia providers, whereas Byfavo can be used not just by anesthesia providers, but also by sedation nurses. We're able to expand access to sedation to that patient population, and therefore, improve throughput through the healthcare system. Onto the pipeline products. Landiolol is under review as a short-acting beta blocker. It is very unique in that it's the most selective of the IV beta blockers that we have.
It's beta-1 to beta-2 selectivity is 255 to one, meaning there really are very limited off-target effects. Again, compared to the other options, it's got an extraordinarily fast on, extraordinarily fast off, and it's able to be used in a broader patient population, so patients with comorbidities that would limit the use of some of the competitive products.
CAL02, Scott talked to the problem or to the challenge of severe community-acquired pneumonia. What makes CAL02 unique in this space is it's being studied as an adjunct to currently approved therapy, so as an adjunct to antibiotics. It is not an antibiotic, but it is going to help antibiotics work better. It's gonna help the body's immune system work better if the studies are successful.
Therefore, really will bring another tool to the armamentarium in what is a leading cause of mortality throughout the world. Then ENA-001, again, as Scott said, this is an agnostic respiratory stimulant. It works peripherally, being investigated for three different indications. Post-op respiratory depression, again, as Scott said, a substantial unmet need, not just for patient safety, but from a health economics perspective, for improving throughput throughout the healthcare system.
Community-acquired drug overdose. Again, anyone who follows the news is aware of the problem with community drug overdoses. What's unique about ENA-001 is its activity or its action is not just limited to opioids. It's agnostic, so it will reverse respiratory depression due to polydrug overdose.
It also will do so, at least in the context of opioids, without putting the patient into full-blown withdrawal. You will just stimulate respiration, again, without putting the patient into withdrawal by completely reversing the opioid or whatever the substance abuse happens to be.
Then for apnea of prematurity, for so long, the only option for these preterm infants to help with their respiration has been caffeine or some type of methylxanthine. Again, there really is an unmet need for an additional tool in the armamentarium, which could either be used in place of caffeine or in conjunction with it.
Very nice job, Michael.
Thank you.
Thank you. Oh, where are you going? Maybe whatever the next question is a medical one.
I have a couple questions. One, I'll start on the EBITDA side. It's a pretty wide range for 2023 on EBITDA that you're guiding to. Can you help us understand the puts and takes on that broad range of $74 million to the top end?
Yeah, let me go back to that slide, if you would, then. It's, I think it's a $6 million difference, right? It's $74 million to $80 million. You know, there's just a lot of ins and outs. It's, you know, it's hard to predict. It's, you know, maybe we'll do better and worse on expense. Maybe we'll do better or worse on some of the market share that we're looking at. I think this is a good stake in the ground to start the year with.
Okay. You spoke to your M&A side. You briefly touched on a couple items. One was you're looking at something could be potentially accretive in the near term. You also talked about your model where you're looking at synergies, structural synergies that as a company you potentially bring to the table. If you translate that into generally therapeutic areas of oncology versus acute care, what's your area of focus or are there certain areas that you would be looking at where you have a higher capability of driving value?
Yeah, very, very good question. What I would say is, right now we have increased our sales team to the largest it's ever been in our history. We now have 75 people split between the two. The hospital group, because we're in the middle of relaunching Barhemsys and Byfavo, is probably not ideal to introduce another new product in the short term, so we can make sure that ramp works out really well for us.
And we have to handle landiolol when it gets approved to give us a third product and another launch. If you look at our oncology business, that's probably the place where we can bring another product into the company here in the short term and start running pretty quickly. Ideally, we would be focused on some of these oncology companies that have mature brands that are doing well.
I think we have one more opportunity to have a lot of synergy and to be able to bring a company, a product into the company with a disproportionate amount of infrastructure requirements. We're very selective. We're not gonna be rushed into anything, 'cause if you look at our earnings, they're strong in 2023. We don't need to do something.
We'd like to do something, but we don't need to. When the right opportunity comes along, hopefully we'll be in position to take advantage of it. Probably more likely in oncology, but I won't rule out some of the hospital products that we're looking at now as well. There are ways that we could isolate the sales team to bring another product in.
That's basically what we're looking at with the primary focus in finding synergy with our company, not just financial synergy, but strategic synergy. Ensuring that our EPS grows over time and take a little bit of the pressure off of the pipeline, even though we're very enthusiastic about it. You know, let's protect ourselves just in case things get delayed. It's a hard industry. We'll see what happens.
Thank you.
Mm-hmm.
Thank you. firstly, congrats on a, on a great pipeline there that you have. As you talk about the base business with bendamustine, you know, being a big part of what the profitability pool has been historically and with, more players now sort of looking to get in, how do you... do you see more price erosion coming in there, in the next 12 months versus next 24 months?
Well, you know, that's a good question, we don't know the answer to where price is going in this market. I will say that BENDEKA, where we enjoy the large portion of the bendamustine royalty that we bring in, is just the far superior product in the market. It's a 10-minute dosing in 50 mls, where the other products are 30 and 60 minutes in 500 mls.
The idea that we have the better product and it's patent protected, that's what gives us the comfort. That the product right from the start took over the market share lead in the bendamustine market. It's just a better product than the old legacy products that are getting the competition. We feel pretty good that It's a great brand. We're gonna treat it as a brand.
We're gonna continue to promote it the same way we've always promoted it. I think based on that is the reason why we have comfort that we're keeping, you know, this 75% of the product going out in time.
Thank you.
Thank you.
Any-
Are we?
Oh. Are there any other further questions? I think we give another round of applause to Scott and Mike. Thank you.
Thank you, everyone. Thank you.