Amgen Inc. (NASDAQ:AMGN) Wells Fargo Securities Healthcare Conference September 6, 2023 9:30 AM ET

Company Participants

Arvind Sood - VP of IR

Peter Griffith - EVP and CFO

Conference Call Participants

Mohit Bansal - Wells Fargo

Mohit Bansal

Thank you very much for joining us today. My name is Mohit Bansal. I'm one of the biopharma analysts here at Wells Fargo. And I have Peter Griffith, the CFO of the company; and Arvind Sood, the greatest of all times. So thank you both for joining us today.

I'll turn it over to Peter for opening remarks here.

Peter Griffith

Mohit, thank you very much. And actually, this is Murdo Gordon masquerading. But good morning, and we're so glad to be here. Thanks for inviting us. As we always do at Amgen, let's start with patients and our mission to serve patients through discovering, developing, manufacturing and distributing first-in-class and best-in-class medicines to patients with grievous and serious illness all over the world.

We're creating value for patients, staff and shareholders, and are well positioned on any number of fronts that deliver long-term growth. We're driving a successful integration beginning off an early fourth quarter close with Horizon Therapeutics based on that exceptional strategic fit. We're driving the best innovation through our pipeline, and we're driving results as we did in the second quarter with record revenue and a record non-GAAP earnings per share.

We remain well positioned for continued volume-driven growth with 11% year-over-year volume growth in the second quarter. Underneath that was 16% year-over-year volume growth outside the United States, and underneath that was 46% volume growth in our JPAC region. Based on our strong second quarter and outlook for all of 2023, we raised our financial guidance for the year, just as we did after the first quarter. We're excited to be moving forward on Horizon. We expect to close early in the fourth quarter, and it is a great strategic fit for us. Why is it a great strategic fit?

First, their products are innovative, first-in-class biologics, that make a big difference in the patients who receive them. That's the exactly the focus of our R&D strategy. Second, these products treat autoimmune disorders, which have been a core focus for us for decades.

And third, these products are in early stage of their life cycle with lots of ways for us to add value. Where do we expect to add value? Across life cycle management, including in global development, manufacturing, process development, new formulations, delivery devices and so on. We expect to add value in international markets where they haven't yet built out their capabilities. Ours are in place, fully prepared to go on these new products, particularly on TEPEZZA and ongoing research and development, Sjogren's and other potentially attractive markets, including those identified in our review of the genetics behind their targets using our deCODE team.

So where are they going to add value to Amgen, Horizon's industry-leading rare disease capabilities will be an immediate benefit to TAVNEOS and other rare disease opportunities in our pipeline. Finally, as we have consistently said, we expect this deal to be accretive to our financials and additive to our long-term outlook. We will talk more about driving results in the business in a minute. But before that, let's cover our innovation in our pipeline, where momentum is building, multiple Phase III trials position us well for long-term growth.

Our oncology pipeline includes any number of late-stage opportunities, announced positive potentially registrational results from tarlatamab in small cell lung cancer, where we see annual incidents of 65,000 to 70,000 patients across major markets. It's the first BiTE molecule to demonstrate unequivocal activity in common solid tumor.

We're excited to share these data later in the year and are rapidly moving tarlatamab into earlier lines of treatment to maximize the opportunity for patients. Later this fall, we'll be sharing exciting initial data from Xaluritamig, our STEAP1 bispecific being studied in prostate cancer and AMG 193, our MTA-cooperative PRMT5 inhibitor, where we've seen responses across multiple solid tumor types. We announced positive top line Phase III results from LUMAKRAS in combination with Vectibix in metastatic colorectal cancer.

And then moving to inflammation and general medicine in the pipeline, we continue to explore the potential of TEZSPIRE in multiple additional indications and then rocatinlimab in atopic dermatitis and continues to enroll Phase III very well as does Olpasiran, our Lp(a) molecule, also in Phase III. Maridebart cafraglutide, also known as [mari], known hereafter is mari, AMG 133 and AMG 786, two of our obesity assets in our evolving obesity platform, both -- those are in Phase II and Phase I trials, respectively. Mari is enrolling very well. The goal of that study is to generate data that will provide broad optionality to design a Phase III program.

Turning to commercial performance. Our priority products within each therapeutic area performed well in the second quarter. Our innovative hematology/oncology portfolio grew 10% year-over-year with continued growth opportunities in BLINCYTO, KYPROLIS and Vectibix. We saw strong sequential growth across our innovative brands, including Otezla, ENBREL, TEZSPIRE and TAVNEOS.

We're making additional investments into Otezla this year from a position of strength in the general medicine portfolio, Repatha grew 30% year-over-year with 35% volume growth in the second quarter. We also see continued upside opportunity for Repatha. And also, we're making additional investments into Repatha this year also from a position of strength there.

The bone franchise continues to deliver growth. Prolia growing 11% year-over-year and surpassing $1 billion in quarterly product sales for the first time ever. And EVENITY, also in the bone portfolio growing 47% year-over-year. Our biosimilars portfolio continues to generate meaningful sales and continues to create meaningful returns for our shareholders.

As we have consistently said, we see long-term growth driven by launches of new products and into new markets. We're excited about our recent initiation of a pivotal study evaluating ABP 206 with OPDIVO, one of six planned new biosimilars.

So finally, we continue to execute on multiple capital allocation opportunities. In the second quarter, we invested over $1 billion in internal innovation, about $300 million in capital expenditures, including into any number of artificial intelligence use cases, and we increased the dividend by 10% year-over-year.

So Mohit, we're creating value for patients, staff and shareholders, well positioned on any number of fronts to deliver long-term growth, driving the successful integration with Horizon Therapeutics based on the strategic fit driving the best innovation through our pipeline, driving results as we did in the second quarter with record revenue, record non-GAAP earnings per share.

And with that, I'll turn it over to you to drive some Q&A.

Question-and-Answer Session

Q - Mohit Bansal

Thank you very much. Thank you for this great introduction. And if you guys have any questions, feel free to let me know, raise your hand, and it's your event. But I have a lot of questions as well. So maybe let's just start with the first question, like you pointed out, do you have a lot going on and a lot of this pipeline is longer term, right? I mean if you look at the OX40, Lp(a), obesity franchise, which could be a big -- which could be on -- in itself like a single asset could be a big growth driver for Amgen.

Organically, though, people think that next 18 to 24 months without Horizon are going to be a little bit challenging in terms of -- this is the argument from some investors. I mean how do you counter that argument? How -- when you look at your base business, which are the points which could provide growth even without Horizon that, that people may be missing here?

Peter Griffith

Excellent. Mohit, thank you very much. So we'd point to the double-digit volume growth in Repatha. By way of example, we see continued upside opportunity there. It was up 35% in volume year-over-year. We look at EVENITY, up 53% year-over-year. TEZSPIRE up 37% quarter-over-quarter sequentially. And the hematology/oncology portfolio, up 12% year-to-date.

So we think that's very strong. So we see continued near-term and long-term opportunity in those products. We continue to invest in Repatha in the primary care physician presence. We think that's reflected in that strong volume growth and will continue to be.

We've talked about Otezla's growth potential. We think that labels a strong label, especially in the mild to moderate area, and we're investing accordingly. We're going to be launching biosimilars to STELARA and SOLIRIS. By January 1, '25 and March 1 of '25, respectively.

We also expect to be in the first wave of EYLEA have similar launches, but we don't have a date set yet on that. And I think for the near-term pipeline catalysts, we look forward to positive tarlatamab data and what can happen with that. We need to talk to regulators about that and move that along, but we're very focused on that. LUMAKRAS data at upcoming medical congresses this year. And as we've said, that Phase II tarlatamab data is potentially registration -- potentially registration-enabling.

In the second half of '23, we have initial data readouts coming on Xaluritamig, as we said, that's AMG 509 in prostate and AMG 193 in solid tumors. And TEZSPIRE, we've got the Phase I COPD and the initial 786 data coming in the first half of '24.So when we think about that 18 to 24 months, we have a lot to do. As we said, we've got a close on Horizon early in the fourth quarter.

So we're looking forward to welcoming those colleagues and their great medicines TEPEZZA, UPLIZNA and KRYSTEXXA along with their portfolio of rare medicines. So we think we've got a lot to do. We're focused on it, and we're excited about the next 12 quarters.

Arvind Sood

And Mohit, I would just to add that since your question in the next 18 to 24 months, I would remiss if I didn't say Prolia is doing extremely well. And as Peter pointed out in his opening comments, we actually had a record quarter when we reported the Q2 revenues. And recently, we also had some data, which once again reaffirms that in terms of fracture risk reduction versus alendronate, we had some additional data that we communicated recently. So Prolia continues to be a very strong contributor as well.

Mohit Bansal

So I always joke that we have a 2009 model for Prolia, XGEVA. And if you -- the numbers are reversed, actually Prolia is doing what we were expecting XGEVA to do, and it's like the bone franchise has done really well, not too close to that phase...

Peter Griffith

Yes. I think this year will serve -- is it about 7 million patients, I think, worldwide with the bone franchise. So it's super exciting. It's a great one that osteoporosis disease.

Mohit Bansal

Awesome. Maybe let's just stay on this before we move on to Horizon for a little bit. Can you talk a little bit about Otezla because the competitor have played a sampling game or a free drug program not just SOTYKTU, but also these topicals there. How -- when you think about next few years, do you think Otezla can get back to the double-digit growth you first thought about when you acquired the asset? It is move -- it is rather stable at this point despite all those challenges. So do you think there's a max inflection point coming from the product?

Peter Griffith

We're very focused on it, Otezla. We think, first and foremost, it's an excellent medicine for patients with psoriasis, especially in that category mild to moderate. It's the only systemic approved for mild and severe, and it's a great place for patients to start when they really need something systemic early.

So we think about Otezla as post-topical pre-biologic. We continue to be confident. 800,000-plus patients, strong safety profile, no lab monitoring, and great payer coverage. And so it's well set up. It's well positioned. We've made a decision to invest in it this year. We think there is growth left in it through the LOE.

We think patients see it as a great opportunity and prescribers when patients do start on a systemic, so we're going to continue to invest in it. And certainly, the free drug will affect it in '23 that's out on the market, both SOTYKTU and closer to the biologics side. And then the topicals we've seen a slowdown, we think, in the free drug, but we're continuing to stay focused on it. We think it's a great opportunity, a great medicine, and we're confident that we're going to be able to see it grow between now and the LOE.

Mohit Bansal

Got it. Got it. That's super helpful.

Peter Griffith

And I -- and Mohit, I'd remind you, I think we had 80% plus growth quarter-over-quarter from the first of the second quarter. So that was very, very helpful and a strong comeback from the first quarter.

Mohit Bansal

Got it. So can you talk a little bit about those trends? I mean, what -- like -- I know back in the days, you talked about there are like 1/3 patients who are prebiologic -- pre like naive to everything who go on to Otezla, like what kind of patients you are losing SOTYKTU at this point?

Peter Griffith

I think the way -- maybe the question to ask is what kind of patients are focused on Otezla. And it's the patient that comes off of the topical or comes into the dermatologist office, and really realize this is a systemic situation. So I think you'll see us out in the market focused on why systemic and that's really a post-topical prebiologic effort that we're making that we think is important for patients to look at.

So in terms of the numbers, we think there's a very robust set of patients there. I think it's 1 million is -- it maybe 1.5 million or so. I think we see in the United States market. And so there's good numbers there. There's a good opportunity with patients that need this. And so we're excited to be able to provide it out there, and we'll stay focused on it.

Arvind Sood

Well, just to add to what Peter just mentioned, Mohit, much of the intrusion, if you will, has been on the new patient acquisition side because given a choice between a product that's going to cost you some out-of-pocket expense versus free drug, right? I mean, the choice is pretty obvious.

But I think back to Peter's point, if you look at the profile of Otezla, we can cover the full spectrum disease from mild to moderate to severe psoriasis, no laboratory monitoring requirements. So once this free drug is marked up from the system, I think that's when it becomes truly relevant in terms of how much durability they're going to have in keeping those patients on SOTYKTU.

And the other point that Peter mentioned, which I think is worth mentioning again, is if you really look at the pricing of SOTYKTU, I think they're priced to compete more with the biologics side than they are with the oral side, there is a significant price difference -- so we feel very comfortable with the profile of Otezla, and we think that will serve patients well longer term.

Mohit Bansal

Awesome. This is helpful actually. Maybe just move on to the HUMIRA biosimilar part at this point. I mean, how should we think about the second half of the year and longer term? Do you -- so this is like actually Murdo warned me about this. This is like this is part D. Don't think of it similar to Part B. This is going to be a different kind of launch. So when you compare to expectations, how it is -- how it has gone so far? And how should we think about rest of the year versus next year for this product?

Peter Griffith

Very good. Listen, as we've said, this would be a gradual, gradual opportunity for us. And as we said in the first quarter, there was a significant inventory build. This is an evolving landscape, as we've said, you said it Mohit. The Part B and the Part D is really, really different here. And so we will continue to work really, really hard to get HUMIRA out to patients. We think it's get AMGEVITA rather. We think it's a great opportunity for the system.

The system looks at Amgen when it thinks about biosimilars and even in Part D, where it's the reliability of our supply chain. It's the extensive patient experience. It's the strong -- we're good at devices. It's the -- we commercialize these and get out to the patients with the same and to the -- deliver them with the same team we do for Otezla and ENBREL, we don't have a separate unit. And we think that's really important from an efficiency and service standpoint. And we have the same patient support system as we have for ENBREL and Otezla and our other INI medicine.

So we think that's really important for patients, and we think prescribers will think about that. So we see an opportunity there. It will continue to be an evolving landscape, but we're going to continue to play as hard as we possibly can because we know at the end of the day, it will be good for patients.

Mohit Bansal

Got it. This is super helpful. Maybe moving on to Horizon deal for a little bit. So Horizon can be an important part of that 18- to 24-month period we talked about here before you have a next set of catalysts coming up. So first quarter for Horizon actually spooked some investors and then second quarter was fine. When you think about how the quarters have gone so far for TEPEZZA. And how do you see growth coming. So like can you talk a little bit about which are the areas where you could as an -- Amgen as an organization can actually add value to that sales franchise? And how should we think about next couple of years for TEPEZZA in the context of what you can say?

Peter Griffith

Absolutely. We're still limited by Rule 2.7. But I would just start by saying, let's think about Horizon, and we think about it as a marathon, not a sprint. We're super excited about the strategic fit of Amgen and Horizon, as I mentioned upfront.

When we think about TEPEZZA, the opportunities they had the low CAS approval, which quickly found its way into the label, the clinical activity score on the chronic side. That's very important and very helpful. That increased the breadth of prescribers more into the ophthalmologists, as general ophthalmologists and the endocrinologists. And then we'll also see the increase globally.

We see the opportunity, as I said earlier, for Amgen to bring the international infrastructure we have, which we have invested in to build, as you know, over the last 10 or 12 years. And it's extensive, it's strong. Our regions outside the United States are extremely excited to be able to work on this, of course, once it gets approved in various countries. Good data in Japan, OPTIC-J coming along.

So we're excited about the international side, excited about low CAS. We think it's a great medicine for thyroid eye disease, and we're going to continue to stay very focused on it. But maybe as you think, too, about Horizon broadly, KRYSTEXXA has done very well this year as people have seen you please as a very important medicine and NMOSD, also looking at MG and some other indications there.

So that's a great medicine. And their portfolio of rare medicines, which is maybe $700 million or $800 million is growing nicely and steadily. So we're very excited about all of that put together and look forward to working with them going forward. And I think you make an excellent point, Mohit, that in the next -- we think about the forward 12 quarters. We're excited to work with Horizon and have them as part of our portfolio to deliver patients with rare diseases.

Arvind Sood

So let me just add a couple of points, Mohit and Peter, if I may. So notwithstanding the fact that we can leverage our international infrastructure to drive the product once we have acquired Horizon. 99% of TEPEZZA's revenues today come from the U.S. market. So your question, I think, is very valid, that how do you drive that going forward? And I think that was also recognized by Horizon because towards the end of last year, they added to their sales force, there was a sales force expansion that they went through to also facilitate their interactions with the peer community.

Now there's a lag period from the time you generate a so-called PEF or Patient Enrollment Form, and you have a patient start. There's prior authorization. There are other -- they're scheduling issues that you have to deal with.

So I think they began to see the benefit of the sales force expansion at the end of Q1 when there's an uptick in these so-called PEFs. And those are beginning to now materialize in additional patient starts because if you look at the Q2 performance for TEPEZZA on a sequential basis, Mohit you might recall, the TEPEZZA was actually up 10% right. And adding to that, as Peter pointed out, they now have the chronic data that was very quickly reflected in the label. So I think all the attributes to really drive this product going forward are now there in place.

Mohit Bansal

Got it. That completely makes sense. Super helpful. Another question is actually, we get a lot of questions around leverage because you had to stretch the balance sheet to get this deal done. How do you think about the long -- do you have like -- I don't know whether Amgen has talked about the long-term goals for the leverage, debt-to-EBITDA ratio and things like that. How do you think about leverage? And what is your goal in terms of paying down this debt and come to a more normal level, what is normal here?

Peter Griffith

Great question. Very important. So we've been very clear that we expect our leverage to return to the pre-deal leverage levels by the end of 2025. And we believe that will hold even with the closing early in the fourth quarter, which is later than we thought it would be originally. And so we'll return to those leverage levels. I think going back to our capital allocation priorities, they're built on what we call an efficient capital structure. So we think there's a prudent amount of leverage for Amgen.

And depending on how you define that, that's somewhere around 3.0x to 3.2x EBITDA and debt. And so we are thinking about how we pay that down over the next couple of years. We were very clear in the 2.7 document that combined, we expect -- once we close to pay down about $10 million of that debt by the end of '25 get back to those leverage levels. We feel great about that. Obviously, quarters like the second quarter make that something that's we're going to get done and get done on time. And once we get back at the end of '25 to that efficient capital structure, we like being in that type of leverage.

We think it's efficient for us and we'll be in a position to continue to execute on multiple capital allocation priorities as we always have been able to do previously simultaneously. We're still active. I mean, as we said on the second quarter call, we made an investment in the TScan Therapeutics, which is an early preclinical Crohn's disease molecule that Dave and research and development want to invest in. So made that investment. So we're certainly out there and continuing to see what the opportunities are. And we're also continuing, as we said, to grow the dividend.

So I think all in all, Mohit, we're going to continue to maintain a very thoughtful structure in the balance sheet and leverage and be able to accomplish what we need to accomplish to get to the long-term growth that we want to get to.

Mohit Bansal

No, that's clear. That's clear I mean you have a lot of late-stage R&D programs at this point. Some big ones, I mean potentially big ones with obesity and all. So I think that's my next question. With all this, like, number one, do you think your plate is full? Or you -- and then most of the deals in the near term would be probably for early stage stuff at this point?

And then how should we think about the evolution of operating margin because you are at a pretty healthy operating margin already. So is there -- like do you want to maintain this versus like is there an up and how should we think about it evolving over the next few years?

Peter Griffith

Very important. Second quarter, I think we were a 52.6% operating margin as a percentage of product sales. And we've been very clear. I've been very clear for almost four years as CFO that that's not -- the 50% is our guidance not cast in concrete.

If we see opportunities to improve our after-tax cash flows above our hurdle rate for our shareholders, we're going to do it. And you've just brought it up. We are very confident, very excited in our pipeline and our innovation. And we've got any number of molecules in the pipeline in Phase III, and it's super important, and we will make sure that we fund those and get those done. If that means at some point that operating margin is less than 50% that's good for our shareholders because we're investing in things that are very, very thoughtful.

We indicated in our guidance for 2023, by way of example, that we were going to raise our investment this year in non-GAAP R&D from 3% to 4% of product sales to 5%. So we've raised that. And if there's more opportunity there, we need to take advantage of, we will.

We indicated we were making additional investments, as I said in my opening remarks and to Repatha and Otezla. And certainly, that affects operating margin. But we're very confident that we can continue to be one of the most efficient companies in the space. We're very focused on continuous improvement and performance. We're focused, as I said, opening. We've made investments in any number of artificial intelligence use cases from R&D to operations to -- in our commercial and G&A activities.

And so we'll continue to do that. We want to be efficient. We want to continue to redirect capital, Mohit, back into innovation, both internal and external, and the best innovation. So that's where we sit on operating margin. We're delighted that we have a lot to do right now. So we want to continue to execute it in the excellent way that we have historically.

Mohit Bansal

Great. One question, I think I'm sure you are getting this a lot. But last year, sometime in February, you gave a long-term guidance. And then some things have changed since then. Obviously, you acquired a big company in the meantime. So should we expect an update there at some point, maybe later this year, early next year, and how should we think about the long-term growth? Because I think I'm trying to club two questions there because 2025, '30 time frame, you start to lose Prolia, XGEVA franchise as well. So how should we think about all those factors and then timing of the next guidance update.

Peter Griffith

Well, as we said, long-term guidance, that was February of 2022 was the one we were -- we provided that. As we've said since then, we've been marching ahead on track for our long-term objectives. And that was an organic plan only. And so, right now, we are focused on closing Horizon early in the fourth quarter, and we intend on getting that done and getting that done successfully to take advantage of that great strategic fit. Once we do that, then we will consider the long-term guidance side of it.

But I think the most important thing for investors and analysts to keep in mind is when we provided that guidance. And since then, we've continued to state we're on track there with what we've got organically. And so they should think about Horizon is additive to that, and a great opportunity for us to move ahead with that. And it's, again, a strong strategic fit and fits so nicely with us.

So all in all, we'll get back and give some thoughts to long-term guidance later on. As we've said, we'll provide guidance for -- with Horizon itself, in the first quarterly call after close. So if closing early in the fourth quarter is before, we have our third quarter call, which, of course, happens in the fourth quarter, then we would provide -- we would expect to provide guidance on that third quarter call for the Amgen...

Mohit Bansal

That is just for the 2023, though right?

Peter Griffith

That correct. That would be for 2023.

Mohit Bansal

Right.

Peter Griffith

Yes.

Mohit Bansal

Got it. That is super helpful. And then what about like your thoughts on 2025 to '30 time period because Prolia and XGEVA, these are growth products for you. And at least from the patent point of view, they might be losing patent in that time frame?

Peter Griffith

When we did the business review, we started by talking about how important it is to recognize biologics erode more slowly than small molecules. Everybody understands that. We just like to remind people that the bulk of our medicines, 22 out of 28 or so and them in the in line right now are large molecules and large molecules, of course, erode more slowly. So we would anticipate that Prolia even after the LOE would continue to provide strong cash flows for us, and we would expect that.

Repatha, we continue to expect Repatha to have additional upside and be a multibillion-dollar product. We expect EVENITY, which grew 47% or so in the quarter to continue to have very, very strong growth there, and we've ended some longer-term outlook on that. TEZSPIRE launch is off to a very strong start, four additional indications in the clinic on COPD, eosinophilic esophagitis, chronic rhinosinusitis with -- chronic rhinosinusitis and then chronic spontaneous urticaria.

So we've got TEZSPIRE coming along to our [indiscernible] portfolio, as we said, is up 12% year-over-year. We expect that to continue to perform really well. Great news on BLINCYTO. We expect to see that based on data and discussions with regulators that we hope go well because it's being very well received. We hope for BLINCYTO to move into earlier lines and continue with that.

We've got tarlatamab coming along. We talked about bemarituzumab. We haven't had a chance to speak about it today in gastric cancer. We expect that in that time period, rocatinlimab, we talked about atopic dermatitis AMG 133, Mari as we named it. I'm not going to give that name another shot pass around, which is AMG 890 and Lp(a).

So a lot of opportunities there. So in that time period, we'll continue to drive results we will continue to drive a successful integration of Horizon, which will go throughout that period. Reminder that Horizon's product certainly in the life cycle. So we expect '25 to '30 to be a good time frame for them. And then, of course, we'll continue to also drive our own pipeline and innovation. So we're really excited about what's going to happen. We look forward to great long term and serving patients.

Mohit Bansal

Awesome. So maybe one last question, which is my favorite question to ask every company, one year later, September 2024, I hope you are here. I know Arvind will be here, but I don't know whether he's here. He won't be here in this seat. He will be asking questions from the audience.

Peter Griffith

He knows how to do that. He has got a lot of experience on both sides of the trade.

Mohit Bansal

So the question is like how -- like when you -- one year forward, then you would look back, what would you make -- what would make you happy that, yes, you have accomplished something?

Peter Griffith

Well, there are so many things. And I would have to -- I'm going to give you two answers, and I apologize, but I can't resist. The first is what would make me happy is what's great for patients. So I think driving a successful integration based on this great strategic fit with Horizon would be very satisfying because that means more patients with rare diseases all over the world are going to be getting the medicine, and that's exciting.

My second answer, Mohit, and I would be remiss not to say it is let is the first BiTE molecule to show unequivocal activity in a common solid tumor. And if that moves along quickly and can get to patients with small cell lung cancer, that's incredible. And I just really hope that happens. And it's based on data, it's based on going through the regulatory process. But that's an important medicine for patients with that disease.

So I hope in a year you and I are here and Arvind is asking us tough questions out there in the audience and that those two we've been able to accomplish both of those...

Arvind Sood

I could be sitting here actually.

Peter Griffith

Like Arvind is sitting very well. We had to go get Arvind out of Bordeaux. He was there for two weeks. We had to send in the French foreign lesion to find him for goodness sake.

Mohit Bansal

Thank you. On that high note, thank you very much, Peter and Arvind.

Peter Griffith

Thank you.

Arvind Sood

Thanks for inviting us.

Peter Griffith

Thank you. Thanks Wells Fargo.

Mohit Bansal

Thank you.

Peter Griffith

Thank you for your interest.