Supernus Pharmaceuticals, Inc. Price & Performance (SUPN)

Today, after the close of the market, the company issued a press release announcing these results. On the call with me today are Supernus' Chief Executive Officer, Jack Guitar Chief Financial Officer, Tim Deck. Today's call will be made available via the Investor Relations section of the company's website at ir.sufernis.com Supernus. During the course of this call, management may make certain forward looking statements regarding future events, and the company's future performance These forward looking statements reflect Kurnus' current perspective on any such forward looking statements are not guarantees of future performance and involve risks and uncertainties. Including those noted in the Risk Factors section of the company's latest SEC filings. Actual results may differ materially from those projected in these forward looking statements. For the benefit of those of you who may be listening to the replays, call is being held and recorded on 02/25/2025. Since then, the company may have made additional announcements related to the topics discussed. Please reference the company's most recent press releases and current filings with the SEC. Sapirtis declined any obligation to update these forward looking statements except as required by applicable securities laws. I'll now turn the call over to Nick.

Thank you, Virgo. Good afternoon, everyone, and thanks for taking the time to join us on today's call. Our 2024 results reflect solid commercial execution, a across the company, including continued growth of our core products, and strong growth in operating earnings. Our performance in 2024 underscored our emphasis on growing our core business despite the loss of exclusivity on both 25% for the full year 2024. Driving this growth was Kelby's robust performance with 25% growth in annual prescriptions as reported by IQVIA. And 72% growth in annual net sales In the fourth quarter of twenty twenty four, prescriptions reached another all time quarterly high of 214,600 prescriptions. In 2024, Kelby's annual prescription growth outpaced that of the ADHD market, grew by 9% reaching 103,000,000 prescriptions. Calgary's back to school momentum carried through the fourth quarter sequential prescription growth of 11% compared to the third quarter This prescription growth enabled Calvary to have a strong fourth quarter with net sale reaching $74,000,000 representing a 60% increase over the fourth quarter of twenty twenty three. In 2025, Calgary's off to a good start with exciting news about the end FDA approval of its The new label further elaborates and differentiates Kelby's mechanism of action as a novel nonstimulant reinforcing its multimodal pharmacodynamic profile.

And highlighting its unique partial agonist activity at the serotonin five HT2C receptor and inhibition [indiscernible] Also, the label is now updated with new and important leg Such information is crucial for the important and growing adult female patient segment. In addition, earlier this month, at the annual national cycle Pharmacology Update Conference, Supernus presented interim results from an open label Phase four trial with Keldri in adult patients with ADHD and mood disorders. Interim data for the first ninety five patients who completed the trial show improvements in clinician and patient rated measures. Of ADHD depression and anxiety symptoms. The data are encouraging and suggest that the effects of Calgary may extend to adults with complex ADHD. The safety outcomes in the trial were consistent with the double blind pivotal trial of Kelby in adult ADHD. Full results from all the one hundred and sixty one adult patients who enrolled in the trial. Are now available and are consistent with the interim results. That data will be presented at the Americans like Care to Association Annual Meeting in May of this year. Finally and importantly, the company received a two plus year patent term extension from the U. S. Patent and Trademark Office for one of The U. S. Patents that covers Calgary.

This extends the original expiration date of that patent to the year 02/1935. Regarding Ocobre, for full year 2024, net sales increased by 9% compared to 2023, and by 15% in the fourth quarter of twenty twenty four, reaching $37,000,000 Earlier this month, the FDA approved on Apto Supernus next growth product. It is the first and only subcutaneous abomorphine infusion device for the treatment of motor fluctuations in adults with advanced Parkinson's disease. We are targeting the launch of ONAPCO in the second quarter of twenty twenty five with a support team of experts, including a nurse education program and access support. ONAPCO fits very well within our portfolio as it utilizes our existing Parkinson's disease sales force and infrastructure. Switching to our legacy products, the first generic for Oxtellar XR entered the market in early September twenty twenty four. Resulting in both a year over year and sequential quarter to quarter decline in net sales of Oxtellar XR in the fourth quarter twenty twenty four. For full year 2024 combined, net sales of Trokendi XR and Oxtellar XR were down 22%. In 2025, we expect further erosion in both product sales with combined net sales to be in the range of $65,000,000 to $75,000,000 Moving on to our CNS pipeline of novel product candidates.

In November 2024, we reported top line results from an open label Phase 2a study with SPN-eight 17, in patients with treatment resistant seizures. The study suggested a differentiated profile with strong efficacy in focal seizures at the three milligram to four milligram twice daily doses. SPN-eight seventeen was safe and had acceptable tolerability with two subjects discontinuing because of treatment related adverse events of the 26 subjects who entered the maintenance period, Stage B of the Phase 2a study is ongoing and includes the concomitant use of [indiscernible] The company has initiated a Phase 2b randomized double blind placebo controlled study of three milligram and four milligram twice daily doses of SPN-eight seventeen targeting enrollment of approximately two fifty eight adult patients with treatment resistant focal seizures. Also, the company completed a pharmacokinetics study of two oral formulations of SVM-four forty three in healthy adults. Both formulations of SVM-four forty three showed adequate bioavailability and were well tolerated. SPN-four forty three is our new stimulant like product candidate for ADHD and other CNS disorders. We recently disclosed that the Phase 2b study of SPN-eight twenty in adults with treatment resistant depression does not demonstrate a statistically significant improvement on the primary and secondary endpoints versus placebo.

The safety profile of SPN-eight twenty in the study was consistent with previous clinical trials showing few adverse events. We continue to analyze the data and we'll update you when we reach a decision regarding the future steps for the program. Finally, corporate development will continue to be a top priority looking for strategic opportunities to further strengthen our future growth through additional revenue generating products for late stage pipeline product candidates. With that, I will now turn the call over to Tim. Thank you, Jack. Good afternoon, everyone.

As I review our fourth quarter and full year 2024 results, please refer to today's press release and 10 ks was filed earlier today. Total revenue for the fourth quarter of twenty twenty four was $174,200,000 compared to $164,300,000 in the same quarter last year. Total revenue in the fourth quarter of twenty twenty four was comprised of net product sales of $166,400,000 and royalty, licensing and other revenues of $7,800,000 The increase in net product sales was primarily due to increase in net product sales of our core products Calgary and GOCOVRI. Excluding net product sales of 29% compared to the same quarter last year. For the fourth quarter of twenty twenty four, combined R and D and SG and A expenses were $108,100,000 as compared with $104,600,000 dollars for the same quarter last year. Operating earnings on a GAAP basis for the fourth quarter of twenty twenty four were 21,400,000.0 as compared to an operating loss of 1,000,000 for the same quarter last year. Recall during the fourth quarter of twenty twenty three, we booked a $20,200,000 intangible asset impairment charge reflecting the forthcoming loss of exclusivity of Zydago in December of twenty twenty seven. GAAP net earnings was $15,300,000 for the fourth quarter of twenty twenty four, or $0.27 per diluted share.

Compared to GAAP net earnings of $1,200,000 or $0.02 per diluted share in the same quarter last year. On a non GAAP basis, which excludes amortization of intangibles, share based compensation, contingent consideration, impairment charges and depreciation adjusted operating earnings for the fourth quarter of twenty twenty four, $48,300,000 compared to 47,100,000.0 in the same quarter of last year. Total revenues for the full year 2024 were $661,800,000 compared to $607,500,000 in the same period last year. Total revenues were comprised of net product sales of $637,700,000 and royalty, licensing and other revenues of $24,100,000 The 11% increase in net product sales was primarily due to the increase in net product sales of our core products [indiscernible] Excluding net product sales of Trokendi XR and Connectedeler Xceleratexilent, total revenues for full year 2024 increased 25% compared to last year. Combined R and D and SG and A expenses for the full year 2024 were $430,400,000 as compared to $428,000,000 for the same period last year. Operating earnings on a GAAP basis for the full year 2024 were $81,700,000 as compared to an operating loss of $5,300,000 for the same period last year. The increase in operating earnings reflects the higher revenues, and lower operating expenses in 2024.

GAAP net earnings were 73,900,000.0 for the full year 2024, or $1.32 per diluted share. Compared to $1,300,000 or $0.02 per diluted share in the same period last year. On a non GAAP basis, which again excludes amortization intangibles, share based compensation, continuing consideration, impairment charges and depreciation adjusted operating earnings, was $183,700,000 compared to $125,100,000 in the same period. This is an approximately 47% increase year over year. As of 12/31/2024, company had approximately $454,000,000 in cash, cash equivalents and marketable securities. Compared to $271,000,000 as of 12/31/2023, This increase was primarily due to cash generating from operations. It should be noted that we have generated approximately $300,000,000 in cash from operations in the past two years. Because of that, the company has a strong balance sheet, We noted with significant financial flexibility for for potential M and A and other growth opportunities. Now turning to guidance. For full year 2025, we expect total revenues to range from $600,000,000 to $630,000,000 comprised of net product sales and royalty licensing revenues. Note that total revenue guidance for full year 2025 assumes approximately $65,000,000 to 75,000,000 of combined net sales of Trokendi XR and our stellar XR. For the full year 2025, we expect combined R and D and SG and A expenses to range from $435,000,000 to $460,000,000 Overall, we expect full year 2025 operating earnings in the range of 10,000,000 to an operating loss of $15,000,000 And finally, we expect non GAAP operating earnings Changes of reconciling names between GAAP and non gas.

With that, will now turn the call back over to the operator for Q and A. Thank you. At this time, we will conduct a question and answer session. Our first question comes from Andrew Tsai at Jefferies. Your line is open. Hi, thanks for taking my questions. Good afternoon. Congrats on the nice quarter. A couple of questions to start. If we backed out other products from your 2025 revenue guidance with reasonable assumptions, Is it fair to infer maybe your thinking Calvary this year could do maybe somewhere around $2.65 to 2.95 Is that a fair range or are you thinking something different? And then secondly, what do you think are the key levers to sales growth? This year? Is it more TRx or is it more price or is it both? Thank you.

Yes. Hi, Andrew. Regarding mean the range is a fair range. We try not to give guidance by product, but you could back into something like this. As far as the key levers for this year, there's certainly continued subscription growth. As we've seen, we've been very pleased with the performance of the product As I mentioned in my prepared remarks, Q4 carried a lot of the momentum from the back to school season and set us up a very nice way to start in a nice place for 2025.

So we're certainly looking forward for more prescription growth. The market grew by 9% We grew by 25% last year.

And we still have a long way to go here. As I mentioned, more the market is now at 3,000,000 prescriptions a year. We're only at seven sixty seven thousand prescriptions in 2024. So we still have a lot of penetration that we can accomplish clearly with the product. And the basics of the product are still very, very solid. What I'm referring to is really satisfaction by patients, The very important segment, for example, of the whole segment patient satisfaction is very high. It's around 80%. To give you a little bit of reference, it's only 53% for spare And to have a very nice high satisfaction rate for a non stimulant in the adult population that does pretty strong. We all know adults love their stimulants. So for a non stimulant to have that level satisfaction. So we're very encouraged by a lot of the metrics behind the product. [indiscernible] another hopefully strong year. On Calgary.

Great. And then as we think about your pipeline after SPN-eight twenty's TRD data, how does your BD appetite change now, if at all? And can you remind us the latest and greatest on how much firepower you have now Thank you.

Pipeline perspective, I mean, the first thing is just to clarify, eight twenty is not terminated. Otherwise, we would have said that in the press release. So that remains to be seen and we'll see what the next steps will be and certainly we'll communicate that as far as to what decisions we make. But aside from that, our BD activities will continue to be top priority at the company. Looking for from a priority perspective, first, commercial products, If we can bring in more revenue generating products. And then next priority would be things that are more in the mid stage to late stage pipeline assets. And then from a therapeutic perspective, we're agnostic of whether it's psychiatry or neurology. We're pretty flexible there. And we're even open to other therapeutic areas as I may have mentioned in the past and certain remarks that we've actually participated in certain processes and looking at assets outside CNS as long as the situation involves multiple assets, not just one asset in a whole new therapeutic areas. But if there is some scale, there is multiple assets so we would be interested in also expanding beyond just CNS. So it is a top priority.

And as Tim mentioned earlier, we do have significant flexibility clearly given that our balance sheet is [indiscernible] we have no debt We have a strong cash position that we continue to add to. As far as the size per se, it really depends on the situation itself. I mean, you could go pretty big if a certain situation brings in its own cash flows that will help us and will support a leveraging situation. So So that in total could range from a $500,000,000,000 to 1,000,000,000 I mean, depending on the situation and the cash generation by the target that we're looking at.

Thanks so much.

Our next question comes from Stacy Ku at TD Cohen.

Your line is open. Thanks so much for taking our questions and congratulations on the progress. First question is on Calgary. That performance in Q4, can you just walk through the variables driving strong [indiscernible] especially as 2025 just help us understand what you're thinking about gross net this year. And then a second follow-up on Calgary. You just talk about how the adult launch is progressing? And then second question is on SPN-eight 20. Are you able to kind of give some idea of the timing of your strategic conclusions Do you plan to make a decision this year? And then for the third question, for the Onopaga launch, how should we think about the trajectory What needs to be done to be ready? And are there any sales expectations embedded into twenty twenty guidance.

Yes. I'll try to take them in the same order So on Calibri, We had certainly a very strong quarter in the fourth quarter. As I mentioned, a big portion of that is clearly the prescription growth. So we grew by 11% sequentially. As far as the gross to net, it really as related to the pricing portion of that question, it really didn't change much. So the gross to net on Calgary has been fairly stable now in the last March. On the lower side of the range, now will it change in 2025? Absolutely. I mean clearly Q1 is always as we always know in this business in general. Kelby or no Kelby across all the industry Q1 will be worse from a gross to net perspective because of the increase in the co pay costs as we improve the benefits to help patients through the deductibles and and so forth. So for the full year of 2025, probably the gross to net is going to be more in the 5055%. That would be my guess at this point. And that's the same range we had talked about back in November of last year when we talked about the gross tonnage.

Regarding the second question you have on the adult launch, I mean, we've we're pretty pleased that I referred earlier as far as performance of the product with adults, our efforts in the adult segment across male and female patient populations know the product We do see more combination type of use in the adult patient population, meaning physicians are adding Calvary the existing stimulant that adults are on. And over time, they tend to reduce the stimulant dose and increase the calorie dose. With the ultimate goal, of course, is to take the patients off the stimulant completely, but they try not to do that abruptly from day one. Because adults love the stimulants and they don't want to be have the withdrawal if effect from it sometimes as well. So they add probably gradually over time. And because of that, we see the combination use within the adult population somewhere around the thirty five percent to forty percent of the prescriptions we believe are combination use with the stimulants. Not as much in the pediatric side. On the pediatric side, we think that's more in the fifteen percent to twenty percent this combination use. So we're still very encouraged by adult and we'll continue to push forward because the need is tremendous out there.

And we are strong believers that people really don't have to be uncontrolled substances. I mean, if you have a non stimulant that reworked whether you're an adult or a child, there is no reason for you to get on a stimulant from day one. You can always get on a stimulant later on if your non stimulant doesn't work. But with Kelvii, what we've seen time after time and now the product been on the market for three point five years or close to four years. The product really works within a week or two and works pretty well across the subscales and people are pretty happy. As I mentioned, satisfaction in the adult population is fairly strong around 80%. So we're very optimistic about the potential in adults, especially given the importance of that segment in the marketplace. [indiscernible] quickly follow-up, what share are you at for the adult segment right now in ADHD for Kelbury? But the split Share of Calvary of the total ADHD market, we're closing in on 125. Sorry, I apologize, the flip. Which is of the Calgary launches [indiscernible] [indiscernible] what percentage is adult right now? For Yes. It's also in the 30% to 32% it bounces around quarter or depending on the seasonality So it's basically the reverse of how the market splits.

If you remember, the market is around 33% pediatric and 67% adult. So we still have a lot of room where we can grow in the adult side. Understood.

And apologize. And now for SBN eight twenty and timing.

Yes, sure. So moving on SBN-eight 20, regarding the timing of what the next steps would be, we sure hope to do that in the next couple of months. I don't know, could we do it earlier? We'll see. But certainly, it wouldn't be this year as related to your question. And we'll do it as early as we can. We do think potentially we know what could be behind the results. We have looked at [indiscernible] studies, we looked at different sub analyses, patient populations, different [indiscernible] we couldn't see anything really that sticks out that have resulted with the result that we issued, but theoretically, there is a good reason to believe that potentially the dosing regimen is what's behind the different results that we got. In the placebo controlled study versus the open label study. So we will be digging deeper into that. Aspect of it and see from a biologic perspective what the rationale is. There is a theory there out there that maybe you don't need to hit the mTORC one system frequently every single day. And actually intermittent dosing is needed or required for the system to function very well and to regulate depressive symptoms.

So and therefore, intermittent dosing is probably more suitable than frequent every single day type of dosing, which was the case in the Phase 2b study. So much more to be investigated at this point. We'll continue to analyze the data and we'll come back and communicate that as soon as possible. And then I believe the last question was regarding on Natco. Is it about if I [indiscernible] Yes, that's correct. [indiscernible] Could you go ahead and repeat the question if you don't mind?

Yes.

So just help us understand the trajectory of the launch, what needs to be done to be ready and if there are any sales expectations embedded into guidance?

Okay. Yes, sure. Yes, the trajectory of the launch, I mean, we we've said all along that it will probably be a slow build. Now, however, having said that, we also know that a lot of KOLs have been waiting for this product. And we may have a bolus of patients who may come in at the beginning and then it will start going back to a more normal slower rate. So that all that remains to be seen. That is a possibility. There, but it remains to be seen. As far as our guidance, to be even more specific, I mean, we don't have really a lot in the guidance for Conoco. It's really single digit number. Mid to a little bit high single digit. So it's not really much a far as this year's guidance.

Thank you so much. Our next question comes from Annabelle Simeon at Stifel.

Hi, this is Jack on for Anabelle. Thanks for taking our questions. So now that you have ONAPCO approved with the label specifically for severe patients, Did you have a better sense of what your market will be and who might the low hanging fruit be for an apolomorphine pump versus a levodopa carbidopa pump?

Could you remind us again how all of your PD products now fit together? Do you expect the pump to partially cannibalize the opportunity for ApoCin at all? And where does GOCOVRI fit in with the rest?

Yes, sure. And the the label for ONEOCAO says advanced [indiscernible] as you would probably expect, I mean, the definition of advanced by a lot of KOLs might vary between what they consider advanced. For some KOLs, advanced maybe could mean that I have a patient been diagnosed now ten years ago They've tried a lot of agents out there. Lot of the oral adjunct therapy with Libidopa, carvedopa and they're getting point where maybe they need in brain stimulation or some other invasive surgery product and so forth. And that could be a candidate and would be a candidate for Onabco. Another KOL might say, you know what, I've had a patient who's only been diagnosed three or four years ago, really struggling with all the oral agents out there and therefore I might want to try the pump. So all this remains to be seen clearly Everything we do promotional and everything will be centered around advanced patients. And far as the interaction or the overlap if you want to say, between ONAPCO and potentially Apokin. Just to clarify, on ATCO, is really providing you with all day continuous infusion of apomorphine and it is for all day control.

However, A booking is more [indiscernible] episodes, single injection for acute episodes. So there is a very distinct positioning clearly and uses for these two products. Now we have said in the past that potentially there might be some overlap or some cannibalization of ApoGen In case you have patients, for example, who might be taking multiple injections of Abukin during a certain day, they may choose to try the pump. I mean, there is a possibility, but clearly from our perspective, the two products are separate. [indiscernible] indication as for acute treatment single injection obviously, the pump is more for an all day controlled with a continuous infusion of apomorphine. And [indiscernible] is really a great drug And it really differentiates significantly from, first of all, the oral dopamine agonist It is very much like the dopamine. It acts like dopamine. It actually have one of the best receptor binding profile and affinity to all the D1 through D5 receptors. Unlike some of the oral dopamine agonists, they don't have affinity to the D1 family. So abomorphone actually is very much like dopamine. And also when it gets through the system, it doesn't need to be converted to on the D1, D2 family receptors.

So that's a great drug and it really differentiates versus even Levodopa itself because levodopa even after it gets absorbed it has to be converted to dopamine where apomorphine actually doesn't need to be to have that conversion. Therefore, you don't need the neurons to convert apomorphine to dopamine so that it can get to the postsynaptic. [indiscernible] all in all, we think the drug will differentiate very well and there will be great mean for ONAPTO, it has a great clinical profile as well as tolerability. People ask me the question, how does it compare to the other pump that got approved? Clearly, people I will let people read the labels and make their own decision as [indiscernible] Great. Thank you.

Our next question comes from David Amsellem at Piper Sandler.

Thanks. Just a couple for me. So first on ADHD and Calgary specifically, how are you thinking about the competitive landscape to the extent that others non stimulants enter the market? We're going to get a data readout for sorampitol in adult patients, for instance in the not too distant future. So how are you thinking about competitive landscape, not just in terms of volumes, but how that might impact the payer landscapes and your gross to nets going forward? So that's number one. And then number two, sorry if I missed this, but have you announced pricing for an Aptco? And if you haven't, can you tell us where you think it could be just as a point of reference relative to Avdi's Avdi's Avdi's Avdi? Thanks. Yes. Regarding ADC and the competitive landscape, it's really very broad for us to make any comments at this point until we see the labels of or even first before labels the data from these products. So We didn't have and haven't seen any Phase three data. So that remains to be seen as far as whether these products will be competitive actually. Versus Calgary and so forth. So that remains to be seen on both products.

The two products that are out there and currently in development. And whether that will impact the payer landscape or not we tend to be very disciplined as you guys know when it comes to payers. So we will do what we believe is right for Calvary. We know that Calgary brings an incredible differentiation in the marketplace. We have a significant head start clearly in the non stimulant. And it has been the first novel non stimulant in decades. Introduced in this category and we've been able able to have a very good payout strategy across both and we're very pleased with the coverage that the product has today and in the foreseeable future. Finally, on the price of ONETCO, it is public at this point. I mean, we priced it within a very good range. Clearly, that is competitive in the marketplace. That's all I can say. [indiscernible] Our next question comes from Kristen Kluska at Cantor Fitzgerald. Hi, everyone. Congrats on a great quarter. Given you've been following the ADHD patients for a while, can you comment on roughly what percent of them do you believe have comorbidities that are potentially on two plus drugs to address both the ADHD and other conditions?

And how you're now thinking about penetrating more into that space now that the FDA acknowledged this in your label, although I know you've been believing in this and talking about the data and have had anecdotes from physicians in the past.

Yes. ADHD is very well known. [indiscernible] that to have significant comorbidities across the board. A lot of it are mood disorders such as depression, anxiety, even bipolar and so forth. As far as the percentages, they do range from we've seen numbers from the as many as forty percent to even sixty percent of ADHD patients that have a lot of these comorbidities. They do tend to be an issue for a lot of patients out there because kind of counter indicated for a lot of these mood disorders because they tend to exacerbate these tissues. And that's why A lot of the adults or some of the adults are on non stimulants for that reason. We are certainly as I mentioned in my prepared remarks, we're certainly pleased with the fact that It is now acknowledged that velocasine is very different than ethamoxetine. It does have a very unique mechanism of action. It is a multimodal pharmacodynamic activity that happens with Veloxo, same specifically on the serotonin. And that's really what has separated the molecule for actually years or decades. From strata that had failed. Actually in clinical trials in treating certain mood disorders. Now that is something we cannot promote.

We will not promote and we will not talk about any other indications for Calvary other than what's on the label. But clearly, But it was a very important scientific information that physicians had been looking for since actually the day we've been developing. The category, because they have seen certain things in the clinical studies and they would like to know clearly around the serotonin because they do use other products that also could have seladelane activity and we need to inform physicians about that because they worry about serotonin syndrome and all kinds of things from safety perspective. So we're very pleased to see that change in the label to better inform physicians on the activity of the drug in general. And clearly, we are very also encouraged by the open labels study that I talked about, which is an ADHD and comorbid disorders, mood disorders. So we encourage folks to look at the publication of the poster at the conference in May.

Okay. Thank you for that. And then on the BD front, can you talk about I know you had some comments on it before, but just therapeutic areas and spaces that you think are really promising and you can kind of leverage some of your in house capabilities that you've been working on in the past?

Yes. I mean, we look for areas that are they don't have to be necessarily adjacent to CNS or synergistic with CNS They could be on their own as long as that situation has some scale So we won't be as interested in something completely new with only one product.

Because then it puts more pressure to try to look and build around that one product and find other products, low product candidates, pipeline assets that could help you build that scale in this new therapeutic area. So preference would be if we were to enter a new area, hopefully from day one, we could find something that could be a multi asset situation, whether that's commercial pipeline, a mix of both. That will allow us to bring in the scale and the efficiency and the operation from R and D all the way into commercial execution. So that is how we think about it. And it doesn't really matter whether I'm just going throw out examples. It doesn't mean that's what we're looking at. But whether it's dermatology, ophthalmology, urology, any of these specialty areas where we can be very efficient and effective with a reasonable small sales force effort behind it. In addition to that, we have a really good infrastructure to deal with the rare disease and orphan diseases. We're very well set up, especially for example in the Parkinson area where we have very strong infrastructure to support rare or orphan diseases. So those will be all areas that we would be interested in.

Thank you, Jack.

I'm showing no further questions at this time. I would now like to turn it back to Jack for closing remarks.

Thank you. In concluding our call, afternoon, we thank you for joining us to learn about our strong operating performance in the fourth quarter and full year 2024. Company has executed well through a multiyear transition and the loss of exclusivity on two of its legacy products. Excluding our legacy products, Tocendyxorin, Oxtell XR, we continue to deliver robust double digit growth in revenues. The company continued to generate also strong cash flows behind the strength of its portfolio, particularly its core products and through the efficiency of its operations. As a result, and as we mentioned earlier, we finished the year in a position of financial spend $454,000,000 of cash on the balance sheet at no debt. We believe we are well positioned for continued growth beyond the current transition and our focus on several key areas. First, driving growth and generating strong cash flow from our core products particularly Kelvii, allowing us to continue our investments in our pipeline. Second, the launch of ONACTO in the second quarter of this year and third, advancing our innovative R and D portfolio of differentiated first in class molecules. Finally, corporate development will continue to be a top priority to augment our growth through external opportunities.

Thanks again for joining us this afternoon. We look forward to updating you on our next call.

Thank you. This does conclude the program. You may now disconnect.