Theravance Biopharma, Inc.

Ladies and gentlemen, good afternoon. I'd like to welcome everyone to the TheraVance BioPharma Second Quarter 2025 Conference Call. During the presentation, all participants will be in a listen-only mode. The question and answer session will follow the company's formal remarks. To ask a question, press star 1-1 on your telephone. If listening via webcast, please mute audio on your webcast device before asking a question over the phone. I will repeat these instructions after management completes their prepared remarks. Also, today's conference is being recorded. And now I would like to turn the call over to Rick Winningham, Chief Executive Officer. Please go ahead, sir.

Good afternoon, and welcome to TheraVance BioPharma's Second Quarter 2025 Earnings Results Conference Call. On slide 2, you'll find our forward-looking statements disclaimer, which covers certain risk factors which could cause actual results to differ materially from any such statements we might make in today's call, and which are described further in our filings with the SEC. Moving to slide 3, I'm joined today by Rhonda Farnham, Chief Business Officer, Anya Miller, Head of Development, and Aziz Salah, Chief Financial Officer. And turning to slide 4, we delivered an excellent quarter underscored by disciplined execution across our commercial and development organizations, which drove continued momentum in both UPELRI and Amperloxetine. In addition, we completed a high-impact strategic transaction. This performance reflects a team that sharply focused on delivering value to our stakeholders. Starting with our commercial business, UPELRI, our durable cash-generating product, continues to perform. Net sales for the quarter reached approximately $66 million, driven by continued demand growth and favorable net pricing with strong pull-through performance in the hospital channel. In addition, UPELRI received approval in China, triggering a $7.5 million milestone payment. We also completed the $225 million of our remaining royalty interest in Trelogy to GSK, a transaction that significantly strengthens our balance sheet and represents the first major outcome from our strategic review committee's efforts to unlock shareholder value. Trelogy's strong second quarter performance further increased the likelihood that we will receive the remaining $150 million in milestones from Royalty Pharma over the next 18 months. In turning to Amperloxetine, I'm pleased to report that the phase 3 Cypress trial continues to progress well. Designed specifically to replicate the study 170 MSA pre-specified subgroup, Cypress remains on track to complete enrollment in the open label portion over the next couple of weeks. And we expect to report top line data approximately six months after. The quality of execution and engagement from investigators, patients, and advocacy groups has been exceptional. Given that multiple system atrophy, or MSA, is a rare disease with no proven therapies specifically for neurogenic orthostatic hypotension, or NOH, we believe this program has the potential to bring great value to patients and shareholders. We ended the quarter with approximately $340 million in cash and no debt. Our operations remain near cash neutral. TheraVent has a clear and compelling profile, a strong balance sheet enhanced by visibility into significant near term milestone payments, a growing profitable commercial asset, and on top of that, the potential for a transformative near term catalyst based on the Cypress data readout. We enter the second half of 2025 with clear momentum and look forward to completing enrollment in Cypress and sharing top line data. We're in a strong financial position and together with the strategic review committee, we continue to evaluate a range of opportunities to enhance shareholder value and remain committed to capital discipline and returning excess capital. And with that, I'll turn the call over to Rhonda to provide additional detail on UPELLARY's performance.

Thanks, Rick.

If you turn to slide six, you'll see that the TheraVent's Beatrice Commercial Partnership delivered another strong quarter of UPELLARY performance. Second quarter net sales increased 22% year over year to $66.3 million, our highest Q2 results since launch. That growth was driven by three key elements. First, solid demand growth of 4% versus Q2 of 2024 and 5% sequentially from Q1 of 2025. Second, continued net price improvement supported by pricing discipline and a favorable channel mix. And third, a one-time favorable adjustment to net pricing in the quarter. It's worth noting that even without the non-recurring pricing benefit, we would have still delivered a mid-teen year over year net sales growth in Q2, underscoring the product's strong and sustained growth trajectory. Importantly, these results increase our confidence in achieving the $250 million calendar year sales threshold required to trigger a $25 million milestone payment. Turning to slide seven, in addition to the strong net sales growth in the quarter, UPELLARY continued to experience expanding profit margins and strong momentum across both hospital and community outpatient channels. The hospital channel remains a critical differentiator and a key driver of prescribing for the brand. Notably, hospital volume increased 31% versus Q2 of 2024, reflecting our team's sustained success in securing formulary wins and implementing therapeutic interchange protocols. In Q2, UPELLARY's long-acting nebulized market share in the hospital reached a new -to-date high of approximately 20%. Hospital performance continues to serve as a foundational component of our strategy, functioning as a key entry point for transitioning patients to community outpatient maintenance therapy care. I would also like to call attention to the recent approval of UPELLARY by China's National Medical Products Administration in June. The approval triggered a $7.5 million milestone payment, and importantly, Beatrice will lead launch and commercialization efforts, meaning Theravans will incur no commercial cost. Given the recent approval and that Beatrice is still finalizing the commercialization plan, we will not be providing guidance on formal launch timing at this stage. We'll share additional updates and future calls as Beatrice's plans continue to take shape. Looking ahead, market research continues to point to a sizable remainable, addressable patient population in the US. Our aligned strategies with Beatrice, promoting concomitant use with nebulized lavas and converting appropriate handheld patients are gaining traction. Enhancements in fulfillment, adherence and persistency further reinforce UPELLARY's durable growth profile. With the prospect of a $25 million near term US sales milestone for achieving $250 million in calendar year net sales and patent protection into 2039, we believe UPELLARY is well positioned to deliver long-term sustainable value for Theravans and our shareholders. With that, I'll turn the call over to Anya to provide an update on the Amproloxetine development program.

Anya? Thanks Rhonda. Let me begin with an update on the Cypress Phase III study. We are now very close to completing enrollment. With strong traction across our study sites over the last quarter, we are wrapping up screening activities and will close enrollment to the open label portion of the study in the next couple of weeks. This milestone will mark a pivotal moment in our development program. And we are incredibly encouraged by the high quality execution that has brought us here. As we approach the end of enrollment, we are energized by the momentum we have built and are optimistic about the potential of this trial to deliver a meaningful outcome for patients with multiple systems atrophy or MSA. This optimism is rooted in two core strengths. Firstly, the precision of Amproloxetine's mechanism of action and secondly, how we have designed and are executing this study. Moving to slide nine, I want to remind you why we believe this molecule is particularly well matched to the pathophysiology observed in patients with MSA who experience neurogenic orthostatic hypotension or NOH. Generally, these patients with autonomic dysfunction have a distinct profile. While their central autonomic pathways are impaired, their peripheral neurons remain relatively intact. Amproloxetine is a highly selected norepinephrine reuptake inhibitor designed to increase synaptic norepinephrine concentrations. By leveraging preserved peripherals sympathetic function, it is intended to enhance the vasoconstriction, improve blood pressure and alleviate symptoms of NOH. This tailored mechanism has been supported in our previous trials in the pre-specified MSA subgroup analysis from our earlier Redwood study, also known as study 170. Patients on Amproloxetine demonstrated durable improvements in symptom burden and daily function. While those withdrawn to placebo experienced a clear loss of benefit, including a drop in standing blood pressure and worsening of symptoms. Importantly, Amproloxetine was not associated with worsening of supine hypertension, potentially a key differentiator versus existing therapies. Thanks to its targeted and physiologically attuned mechanism. Moving now to slide 10, Cypress was designed in collaboration with FDA to confirm the benefits observed in study 170 in a larger population of patients with MSA. Like study 170, Cypress uses a randomized withdrawal design and intentionally includes an enrichment strategy, allowing us to identify patients who show clear symptoms benefits during the open label phase and progress only those individuals to the critical randomized withdrawal phase. This gives us high confidence that we are measuring the drug sustained efficacy in a population most likely to benefit and therefore optimize our ability to detect worsening of symptoms when they are taken off Amproloxetine. We applied key learnings from study 170 to refine the design of Cypress, while ensuring consistency in enrollment and enrichment criteria in both studies. As a result, we believe we have optimized the probability of success for the Cypress study. We also remain focused on strong and high quality execution. We partner closely with leading MSA centers of excellence and academic institutions known for their high touch approach to care and best equipped to manage patients through our study. Our teams have maintained an unwavering focus on ensuring we enroll the right patients at the right sites. As with study 170, we are utilizing an external enrollment committee comprised of the same clinical neurologist to review every patient enrolled. This continuity ensures consistent application of the enrollment criteria across both studies and provides an independent review of a diagnosis of MSA. Also, by managing this study directly, we are uniquely positioned to apply real time operational oversight and foster high levels of engagement with our sites. Additionally, we have taken a proactive approach to educate our sites about patient retention strategies through the randomized withdrawal period and managing variability throughout the duration of the study. Looking ahead now on slide 11, we are also executing on NDA readiness in parallel. With modules already in advanced stages of drafting, we are preparing for an expedited submission should the readout be positive. At filing, we intend to submit an application to support a full approval and also intend to request priority review to further accelerate potential approval and access. In summary, we believe Cypress is positioned well to deliver. Through its smart design, high quality execution and a mechanism of action biologically tailored to MSA, we are advancing what we believe could be the first precision therapy in autonomic neurology for a community with high unmet needs. I will now hand the call back over to Rhonda to discuss the commercial opportunity for Amperloxidine. Rhonda?

Both Brick and Anya have emphasized we're approaching a pivotal moment for TheraVans as we anticipate the upcoming Cypress results. From a commercial perspective, our excitement comes not only from the potential impact of the data, but also from the substantial market opportunity with pre-launch activities already underway. We believe there is a meaningful commercial opportunity for Amperloxidine to stand apart in the space with high unmet need. Today, no approved treatments offer both meaningful efficacy and durable benefit for NOH and patients with MSA. In fact, 65% of patients remain symptomatic despite currently available treatments such as Mitodrine and Droxidopa, which are often limited by a short duration of action, frequent dosing requirements, and box warnings for supine hypertension. Amperloxidine is uniquely positioned to address these limitations. Offering the potential for once daily oral dosing, durable symptom relief, and a well tolerated safety profile is demonstrated in the Redwood study and now being further evaluated in the ongoing Cypress study. We estimate an addressable population of approximately 40,000 patients in the US with a clear need for better options. In parallel with study completion, we're advancing key activities across stakeholder engagement, market access, and launch readiness. With focused execution across key commercial and medical work streams, we are preparing to deliver a transformational therapy for this patient community. And with that, I'll turn the call over to Aziz to walk through the financials. Aziz?

Thanks, Rhonda. Starting on slide 14, I'll begin with an update on our trilogy milestones. With GSK delivering another strong quarter, our outlook on achieving these milestones is stronger than ever. In Q2, GSK reported an all-time high of 1.1 billion in sales, exceeding consensus and bringing -to-date sales to approximately 2 billion, an 8% increase year over year. This performance puts us firmly on track to exceed the 3.4 billion annual sales threshold in 2025, which would trigger a 50 million milestone payment. With the brand's annualized run rate now above 4 billion, we remain confident in achieving this milestone, as well as the additional 100 million milestone in 2026, where 3.5 billion in annual sales is required. In total, that represents 150 million in high probability milestones over the next 18 months, further strengthening our financial profile. Turning to slide 18 and our Q2 financial highlights, where we came in favorable to expectation. Collaboration revenue grew 31% year over year, driven by continued UPELLARY net sales growth, leading to improved brand level profit margins. Note that even excluding the one-time benefit, the pricing that Rhonda mentioned, collaboration revenue would have been over 17 million, still favorable to consensus. We also recognized as part of license revenue, a one-time 7.5 million milestone, following UPELLARY's regulatory approval in China. R&D and SG&A operating expenses were in line with expectations. R&D reflected near complete Cyprus enrollment and NDA related activities. SG&A increases were tied to Amper-Lokstein pre-launch commercial and medical affairs activities. Share-based comp decreased 16% year over year, reflecting continued cost discipline. Related to the prelogy of royalty sale, we recognize 75 million of other income. Note that under our accounting guidelines, the total 225 million upfront was reduced by approximately 145 million, which was already recognized in prior periods. Non-GAAP losses improved to 4.2 million compared to 6.3 million in prior year, excluding one-time items. We ended the quarter with approximately 340 million in cash. Excluding large one-time items, cash burn for the quarter was approximately 3 million, highlighting strong cash management. Looking ahead, we expect to pay approximately 27 million in taxes related to the prelogy royalty sale in the second half of the year. These taxes were fully accrued in Q2 and will not impact the P&L going forward. On slide 19, we are reaffirming all elements of our 2025 financial guidance. That said, excluding the impact of one-time milestones in taxes, in other words, focusing on recurring operations, we expect both non-GAAP losses and cash burn to improve in the second half compared to 2024. This reflects improvements in underlying business performance and continued cost discipline. To summarize, we delivered a strong quarter of financial results and now anticipate a stronger second half than previously expected, creating a solid financial foundation as we approach the upcoming Cypress Data Readout. With that, I'll turn it back to Rick to conclude. Rick?

Thanks, Aziz. In summary, TheraVance enters the second half of the year with clearer momentum approaching a transformational catalyst in the Cypress Data Readout. We're operating from a position of financial strength and executing at a high level across both our R&D and commercial organizations. UPELRI continues its profitable growth. The sale of our remaining prelogy royalty interests significantly bolstered our financial position and with up to 175 million in potential milestones remaining between trilogy and UPELRI, we continue to see substantial value ahead. Amproloxetine remains our most important driver of potential upside and we are now a couple of weeks away from completing enrollment in the open label portion of the Cypress study. We are confident that Cypress is well positioned to confirm the meaningful benefit observed in the pre-specified MSA subgroup of our prior Redwood study. This program has been executed with discipline, quality and conviction. And if successful, we believe Amproloxetine could redefine standard of care in this rare neurogenic condition where no proven therapies exist today for patients with NOH and MSA. In summary, TheraVance is focused, well capitalized and advancing towards a pivotal inflection point with a profitable commercial business, a strong balance sheet and a late stage, rare disease neurology focused development program that is nearing a critical milestone. We're excited and well positioned to drive meaningful value for patients and shareholders in the months ahead. With that, we'll open the line for questions. Operator?

Thank you, sir. Once again, if you would like to ask a question, you may do so by pressing star one one on your touchtone telephone. If listening via webcast, please mute audio on your webcast device before asking a question over the phone. If you're using a speakerphone for today's call, please make sure your mute function is turned off to allow your signal to reach our equipment. Again, that is star one one if you would like to ask a question. We will pause a moment to assemble our roster.

Our first question is gonna come from the

line of Douglas So with HC Wainwright. Your line is open, please go ahead.

Hi, good afternoon and congrats on the progress. I guess starting with you, Pelry, I guess Rhonda, there were comments about sort of better pull through this quarter. I'm just curious what you attribute that to. And then also on you, Pelry, I'm just curious, we've obviously made some progress in terms of sort of optimizing or improving the channel mix to improve pricing. I'm just curious, if you think about what sort of a realistic, optimal channel mix, how far away are you from that? And how is it realistic to get there? And how long might that take to get? Thank you.

Thanks for the question, Doug. On

the first note of continuing to improve the pull through that certainly is related to that move of volume that continues to move over to specialty pharmacy. And with that, I would say, why that continues to help the support of the pull through is certainly driven by two aspects. One, the pricing in that channel, but more importantly, the persistency and the support patients receive. So not only is fulfillment improved, but also the persistency is much greater when fulfillment occurs in that space. As far as how much more to move and how quickly, we still continue to believe it's very important to ensure patients and healthcare providers have whatever option they feel is best for their individual needs. So keeping that open network still remains a strategic focus. However, ensuring that there's proper education to help clinicians make the best decision based on the patient needs, that will be first and foremost, the priority.

And Rhonda, I guess in terms of the specialty pharmacy and that sort of persistence, is that just sort of the typical services that specialty pharmacies provide in terms of reminders on refills and so forth?

Yes, and dedicated outreach, dedicated personnel for follow-up. So as you can imagine, that certainly is far better served relative to conventional retail pharmacy.

Okay, great, thanks. I'll step out

of the queue. And yeah, I'm just gonna kind of finalize, finalize Rhonda's comments, which I also think that the transition of care work, hospital to home is also improving and certainly channel mix specialty pharmacy facilitates some of that work as well as the ability for patients to choose what works best for them. So, okay, great, thank you very much.

Thank you, and one moment for our next question. Our next question comes from the line of Julian Harrison with BTIG, your line is open, please go ahead.

Hi, thank you for taking my question. Let me have my address and all the recent progress. On you, Helri, in China, I'm curious if we could talk about the outlook for near-term growth, and can you remind us of the longer-term market opportunity there as well? And regarding Cypress, are you able to comment now on how US versus ex-US enrollment has been trending? And when open label enrollment is expected to be confirmed later this summer, should we expect any disclosure of baseline characteristics around that time, or is that something being safe for top line disclosure?

Rhonda, you wanna take you, Pelri, and then

we'll come back to Anya on the Cypress questions from Julian.

Yeah, thanks, Julian. As I highlighted in the earlier commentary, with Beatrice taking the lead, and frankly, the ownership of the China market, we're gonna leave the additional comments based on the market plan, the full launch plan itself, to when they unveil that, so my comments are really limited at this stage.

Anya, Cypress.

Julian, so to your first question in terms of ex-US versus ex-Split, we have many of the same sites that we've included in the previous 170 study, so overall, we expect the split and the profile to look very similar. And with regard to disclosure in advance of top line readout, obviously, the pivotal data is on the endpoint, at the end of that randomized withdrawal period, so our plan at the moment is to disclose all data at top line readout.

Very helpful. We will, Julian, we will issue a press release when we reach the full enrollment of the open-label portion of the study.

Got it, thank you, that's helpful all around. Congrats again.

Thank you, one moment as we move on to our next question. Our next question comes from online of Deepen, Jonna Chatterjee with Jones. Your line is open, please go ahead.

Hi, thanks for taking my question and congrats on the quarter. I had a question regarding on how you would think about pricing, AmpliLock fitting. I know we are still a little far from the top line data, but it would be helpful if you could share your thoughts on the pricing of the drug and if NorthEra and its usage,

it's a good benchmark.

Rhonda, you can take that.

Thank you

for the question and it's a very important one. To your point, it's still a little bit early to really reflect on a very narrowed view on what the price will be, but I will say in harkening back to some commentary from our last opinion leader event for AmpliLock fitting, we did an analysis looking at rare neuro drug launches and across the average of the most recent 10 launches to try to gauge what an average price would be and that was roughly $380,000 per year, so that can give you a sense of what is occurring in the rare disease space. As a reference to Draxidopa and looking at their higher strength costs on an annual basis, that is roughly $280,000 a year, so hopefully that can help you appreciate some of the dynamics that will be taken into consideration for our pricing work that will occur once we have data from the CIPR study.

That's very helpful. Another quick follow up on the US and ex-US dynamics in terms of reimbursement and peer perspective, are there any differences between US and ex-US and do you expect any pushback given there are genetics out there, although less effective and with peer

side effects?

Rhonda, do you wanna take that?

Sure, I'll comment more so on their vast differences and to really even say US versus ex-US, I think that's even too broad, so I'll focus on US given that's where our launch focus is. We are already actively engaging payers and I think it's very important to ensure they appreciate the value of being educated about the disease itself as well as the very high unmet need and they've reacted very enthusiastically to wanting to learn about this important underserved patient population. What's important to them is appreciating the data once we have the data and really what the durability will be offered for these patients given that is an unmet need currently with existing therapies as well as the safety profile which will be critically important.

And the other point I would add to Rhonda's points are simply the endpoint that we're using here which is the OHSI composite score which is an overall endpoint containing a number of different symptoms on the overall wellbeing of patients and I think this is quite important for describing the impact that the product has on the overall quality of life of the patient and the patient's ability to interact and quite honestly live a life that's not restricted or as restricted by bad time and bad. So we're very excited by the early perspectives of payers and then also it's important to underscore the endpoint here being the OHSI composite score as being very distinct from something like dizziness alone.

That's excellent, thank you so much. Thank you in one moment for our next question.

Our next question comes from the line of Ellen Horst with TD Cowan, your line is open, please go ahead.

Hi guys, thanks for taking the question and congrats on the quarter. I'm wondering if you can speak to the pace of SGNA increases that you expect would be associated with Amparloxetine sales filled out between both now and the data and then how that might change on the backend of the data if the data is positive?

Yeah, sure, I can take it. So I think if you're talking about this year, if you look into the second half relative to Q1 and Q2, I don't expect the SGNA number to increase at all. It should be pretty stable versus at least Q2 and even Q1. So we have been spending a little bit on prelaunch commercial and medical affairs related activities as Rhonda was previously describing. Not a whole lot, but a little bit. We expect that to be kind of stable throughout the year. So you will not see a meaningful increase in SGNA between now and the Cypress data readout. We are maintaining as much conservatism as possible while still pushing as much value into the brand as possible prior to the data readout. So stable through now until the data readout, post data readout, we're still working through what that would look like. Obviously we don't provide guidance until next year, so you'll have to stay tuned in terms of the exact numbers, but obviously if positive, there's gonna be a big value inflection point and we will be increasing SGNA spend through next year into launch. In terms of magnitude, as Rhonda and Rick have mentioned previously, we are looking at a targeted launch, so you're not talking about huge levels of incremental spend, but there will be incremental spend as part of the launch preparation.

Just to add to what Aziz has provided a nice summary as to where we are, I think it is very important to understand that with 40,000 patients with MSA and OH and the targeting that this really permits us to do of understanding where those patients are and what we need to do in the advent of a Cypress, good Cypress data and approval to support the offices and the physicians that treat these patients. And I think all the data that we have will allow us to be extremely focused on the SGNA spend with regard to the marketing of Ampiloxetine.

Thanks, that's very helpful.

Thank you, and one moment for our next question. Our next question comes from the line of David Reisinger with Lerink Partners. Your line is open, please go ahead.

Yes, thanks very much. I have a few questions, please, and congrats on the very strong financial performance. So with respect to the Viatris collaboration, so the revenue grew 31% on a 22% upeliori net sales increase. Should we expect continued operating leverage in coming quarters with collaboration revenue growing higher than upeliori sales? So that's the first question. And then with respect to Ampiloxetine, I believe the phase three trials primary endpoint is a longer duration primary endpoint than previously studied. If you could just talk about that and whether you think that will, or how that may impact the results versus results that have been previously reported, meaning as patients stay on drug longer, do they have any tachyphylaxis? Do they, might they improve more over an extended, a more extended period of time? Any perspective would be helpful. Thank you.

So it's easy to wanna take on the operating leverage question of upeliori, and then we'll go to Anya for the Ampiloxetine analysis.

Yeah, thanks, David, for the question. And good observation, obviously, the collaboration revenue growth was a good amount higher than the net sales growth, 31% versus 22%. As you probably know, the difference between the collaboration revenue and simply 35% of the profit is the netting of the reimbursement between the two companies related to the cost. So, but going forward, I don't expect it to kind of continue to be that significant of a gap between the collaboration revenue and the net sales growth, because I think that the costs are gonna be relatively stable. The costs just do sometimes bounce around quarter to quarter. So it just so happens this quarter was a little bit lighter, but I don't expect there to be a meaningful gap going forward between the collaboration revenue growth and the net sales growth.

David, we are

able to get some leverage, as you point out, on the P&L, from the nature of our work and efficiency, but I think continued increases in leverage, as he's pointed out, is one probably shouldn't expect that. So, I'm for Loxetine.

Rick, just on the upholery comment, what I was describing was just the difference in growth rate between the collaboration revenue and the sales. If you're talking about a profitability perspective, we do expect increased profit margin as the net sales growth, because as the costs stay flat, but the net sales increase, the margin continues to expand. So from a profit margin perspective, I do expect continued increases to the profit margin as the net sales increase. Go ahead, Rick.

Yeah, Anya, Cypress.

So

David, thanks for

the question. So you're correct in terms of the primary end point in Cypress is the OHSA composite score. And durability of effect is really central to the design of Cypress. And what we've seen previously in 170 was a durable benefit, which is very different to what others have seen in this space in terms of benefits. So other approved drugs have not shown the benefits beyond two weeks. So we really hope that durability is gonna be a key differentiator for us. And in the Cypress study, what we hope to see in the randomized withdrawal and the randomized withdrawal for Cypress is eight weeks long is for the patients that stay on Amproloxidine that we continue to see stability in the benefits that we've seen over the open label period. And those then taken off Amproloxidine would worsen during that eight week period. So that's our expectations and rightly durability being the central theme to that randomized withdrawal design.

And then David, on your comment on tachyflexes, it's important to understand, as Anya sort of pointed out in terms of mechanism, Amproloxidine is a reuptake inhibitor. So we're blocking the reuptake of norepinephrine. It isn't an agonist per se. So we're not adding additional norepinephrine from an exogenous perspective into the system. We're just blocking the naturally occurring norepinephrine that occurs in the synapse. We're keeping it there longer so that in fact enables the exertion, enables an increase in blood pressure that is measured overall by the individual symptom score of the OHSA composite. So that's our expectation. Great, thank you.

Thank you. It appears we have no further questions. I would now like to hand the conference back to Mr. Winningham. Please go ahead, sir.

Yeah, operator, thank you very much. And I'd like to thank everyone for joining us today. As we reported, our second quarter results were obviously very excited about the performance in the second quarter. And we're very excited about what the future brings for TheraVans across our portfolio. So thank you very much. And we look forward to bringing you further updates as the year progresses.

This concludes today's conference call. We thank you for participating. You may now disconnect.