Newsfilter article unlocker

Hi, good afternoon, everyone, and welcome to the Morgan Stanley Global Healthcare Conference. I'm Erin Bright, Healthcare Services Analyst at Morgan Stanley. For more important disclosures, please see the Morgan Family Research Disclosure website at morganstanley.com slash researchdisclosures. And with that, we're happy to have Alonco Animal Health with us today. Thanks so much for joining us. We have the full team, CEO Jeff Simmons, CFO Bob VanHenbergen, and also Bobby Modi, who heads up, I think I have this right, U.S. Pet Health and Global Digital Transformation Head. So thanks so much for joining us. I'm going to hand it over to Jeff first, who wants to give some prepared remarks or some initial remarks. There was obviously a press release out this morning as well from Alonco giving some, I think, some very helpful color in terms of how things are progressing. So I'll hand it off to you, Jeff. Great. Thanks, Erin. Thanks, Morgan Stanley. And thanks for your interest in animal health. We're excited to be here. Exciting time in the era of our company right now. and wanted to bring Bobby along, and we did put a press release out this morning, but maybe just some overall comments at a high level, and we can, I know, get into it with your questions. But continue to see animal health as a durable, compelling market. I think data shows that, not just over the last 30 years of growth. 25 was an interesting year. We saw pet health grow 10%, farm animal grow 10%. Twice the growth rate of pet. So some of these drivers we've talked about, we continue to see. There's a few things. One, the whole protein revolution that's happening. That's the whole wellness movement for more protein. Definitely an aging population for muscle retention that is also driven by GLP use. We're seeing animal numbers like poultry up 3% to 4%, dairy up 4%. That's just an animal number. So Elanco is well positioned there. I think on the pet side, pet grew last year 5%. It grew, and all the major markets and all the major companies, most of 80% of the companies grew in the first half of this year. So we continue to see pet spending for health as a protected budget item, as also another contributor to durable growth. And yes, some changing pet behavior. We can talk about pet buying behavior. So we do see the industry growing from $40 billion to $60 billion over the next 10 years or so because of these trends. Innovation wins. Innovation will be rewarded. And in the release today, what we tried to do is put a little color on the here and now of some of these Trends. And so I think in summary, we continue to see the market growing. We see a responsible market. We see and expect our pricing to accelerate as it has in July and August. And that, I would say, is because of really the headline of the release is the need on the pet side has grown. As some of you may know, this tick challenge has actually grown at the highest level since 2017 when CDC recorded. And the itching dog in the northern hemisphere has continued to be a challenge. So the seasonality used to be 70-30. Elanco, first half, second half is becoming more 50-50. So we have three pet products that we believe are medically differentiated, best medicine, I believe, and they're taking share. They're allowing us to take price and add clinics, and we can put some color to that. So that was the essence of the release, and, again, we can get into a little bit of our strategy and details. Okay, great. So let's get into the release since you brought that up. So you reiterated kind of high single-digit to low double-digIT U.S. Pet Health in the second half. I guess, can you unpack that a little bit in terms of innovation, contribution, volume, price, other dynamics to call out? Yeah, I'll toss it to Bobby that's running the business, but I just come back to, I think, one of the things that needs to, and it came from a lot of our meetings this morning, is, look, these are big markets, and I'll step back and say, you know, DERM is a market that is the itching dog challenge continues to grow, and the markets grow. International grew 9%, and the overall market is continuing to grow, and broad-spectrum parasiticides is growing, and we're in early innings. We just announced, you know, $100 million in Derm and a little over $100 million in Para in these two and, you know, four-billion-dollar markets. We're in the early, early inning with differentiated medicine. So no matter what's happening in the marketplace, we have a lot of runway relative to our share in very big growing markets? Maybe a little color, Bobby, on the U.S. Yeah, I think our growth is going to be really balanced. So I would think about a portion coming from price, innovation being the main contributor to growth across three products, right? Zanralia, Quattro, and then Bifrena, probably more Q4, a little bit in Q3, and then a stable base. And that's sort of how we think about the contribution of the business and what's going to contribute to the sustained momentum that we saw in the first half of the year. Okay. And, you know, you gave that guidance, you know, potentially before you were fully kind of aware of what, you know, a competitor in the market was going to do from a pricing perspective. What has played out relative to your expectations on that front? Yeah, that's a great question. So on pricing, things have played out exactly as we had anticipated. First half of the year, we saw pricing of about 2%, and that's really across farm and pet. It's across international and U.S., so It's pretty broad-based. But we did say we expected price to accelerate in the second half of the year. And today's press release, we did state that, hey, we have seen that price accelerate two months into the quarter. And so I feel great about what we expected and what we've seen there. Yeah, and I just say broad strokes, what we see in the marketplace is responsible pricing. We see some investments in pockets that tend to be time-bound. That's not been very different in our industry for sort of years to come. And we're not seeing massive sort of price investment that's sustained because, frankly, you can't generate a return on that. And what we really lean into is medical differentiation and commercial execution, largely driven by share of voice. And we think those are the winning formulas for success with our customers. And when you're talking about, you know, price and the competitive environment, you're taking a broad-based price, too. And I think that that's important, you know, across the portfolio, given some of the competitors deploying, you know, bundling tactics across the portal. Are you seeing anything outside of the innovation and outside of the more innovative product, meaning in Durham and Paris, in terms of price pressure? Yeah, I would start as that here. But I mean, it's always typical to have a pocket or two around the world in a certain segment to where there may be, you know, it is a competitive environment. it's not a payer environment, but there's nothing that has changed from the first half in July and August that we see that's any different. Maybe what, to Bobby's point, what has changed and why we wanted to highlight in the release, the need has increased. The speed of tick kill that we're seeing with Quattro and the significance of that differentiation has increased because of the need and the willingness to come. We're adding, again, 500 to 600 clinics a month. And that's because, you know, I think the differentiation continues to grow through our opinion. And the same with the Nitchin, Doggins, and Relly, as we highlighted, you know, in the competitive Derm market in Europe, we picked up 10 share points in the first semester, and that's two points to our competitor, the new incumbent coming in. And I would just say innovation has given our portfolio greater relevancy. So we've seen our vaccine business grow, market share, the most it has this year in the first half prior to the previous five years. And we've seen Credelio, a product that's been on the market for eight plus years in the most clinics that it's ever been in, as sort of these new products give us greater relevancy, but both pet parents, but also our customer base in clinics. And that's a nice sort of fuel that's allowed our base to sort of stabilize and put us in a really good position. That was my next question, because I think that was the other highlight. I think that I like to focus on a lot too in the press release this morning was the base business and how much you truly are seeing some of that halo effect on the back of innovation and how that's truly materializing. Any other examples you can give us? You mentioned the vaccine portfolio. Obviously, you've had some innovation there too with canine flu vaccines that gives you a more well-rounded kind of portfolio there. But any other areas where, you know, you do see probably a longer tail in terms of like you're under-indexed in this category, but there's a long runway for growth as you continue to take care and leverage the broader innovative portfolio around it. Yeah, we have a very large therapeutic portfolio, and those products tend to be sort of smaller in nature. And it's nice that when you get into a clinic and have a discussion with a clinic that you haven't had normally, you get to talk about the whole portfolio, and we're seeing really nice growth on those products as well. And I jump over on the farm animal side. You know, we had the second quarter, Bobby's business grew 11% U.S. pet health. Our U.S. farm animal grew 11%. We have Xperia with a beef shortage, adding a lot of value to the U.R. beef industry, but that's pulled the majority of the beef portfolio with it as there is a portfolio effect that we get from innovation as well on the farm animal side. You know, I think I know the answer to this to some extent, given kind of the way you're answering the questions in the press release this morning, but since I asked, you know, a competitor, the same question, but, you know, do you think some of this behavior truly is temporary in nature in terms of some of the competitive moves, or maybe you're not even seeing it hardly at all, but in what could be more of a structural change across animal health in terms in terms industry and pricing and durability of pricing across this market? I think our industry has been very durable. I think if you look at the 12 or so companies that report in animal health and what they did in the first half, we saw more than 80 percent of them show growth. We see innovation be rewarded. We've been on both sides of this. I mean, when you get the next generation of innovation, our customers reward it. Bobby and I had dinner with some of the major vets here in Manhattan last night, and it's very clear to say, hey, they're moving to the innovation because a vet clinic wants pet owners to be satisfied. And they'll do that, you know, because it's the right thing to do, but it also adds value to them. So I believe that we're we're moving to another era of innovation in our industry and Elanco is well suited going into that era. Okay. Let's take a step back in terms of so much on kind of price and competition and everything else, but just the overall health of the market in terms of, in termsof underlying utilization trends or demand trends across companion animal. And then also if you want to comment on livestock as well. Yeah. Maybe start Bobby and talk some, I think also about the channel and what we're seeing with the changing pet behavior in the channel as well? Yeah, I'll start with just Q2, the companion animal market in the U.S. grew, and it grew, you know, roughly 500 to 700 basis points faster than Q1. So you saw a sequential sort of improvement in the growth of the companion animals market. But what we actually focus on is actually pet parent behavior. And what we're seeing is pet parents are buying their products in different places. And we're also seeing that they're buying their pets in different places. So what we've seen is more and more pet parents are buying omnichannel, and more and more pet parents are buying online. And actually what we see is 40% of pet care has now moved to subscription-based, and that's a good thing because it drives greater compliance, more doses. What we see in Elanco's own portfolio is when somebody buys online, they buy 50% more when they're on a sort of subscription-base. And that's good for the veterinarian, that's good for Elanco, and it's good. And so we really think the future is going to be being everywhere the consumer wants to buy the product and showing up with the right education and information they need to make their sort of purchase decisions. And then I think just jumping to the protein market. So with this protein revolution and increased demand, it's increasing numbers of animals and then the demand for more value. And so, you know, I would say that the winner right now is dairy. If I asked everyone in this room who's more concerned and wants to eat when thinking more about eating more protein, you know, statistics would show that over 80% of you are doing that. That's driving animal numbers globally. So poultry and dairy are probably the global winners. Beef, we're in for about a five-year global shortage of beef. And so Brazil, Argentina, I was in Brazil last week, are going to take advantage of this shortage of cattle in the U.S. And so when that gets to Elanco, it means our portfolio is adding more value. There's a higher ROI. Food safety, we got a big food safety vaccine portfolio. Food safety has never mattered more. And they want to win with the retailers and the food chain. So they're looking for more innovation. Where we're probably under-indexed, where some of our competitors have a little advantage, is we need more vaccines as a whole. But overall, we're well position on the farm side and we see a five-year run here with this with this protein change and just one quick clarification for for bobby the 40 percent was that inclusive of otc that's just pet care in general so it's broad yep um and then so when i put this all together in terms of thinking about the fundamentals across kind of companion animal but also livestock and then you raise your organic growth target so growing off of sort of you know a faster kind of growth right into 2027? Like, what's durable? How do we think about the continued growth as we head into next year, just higher level? Yeah, maybe I'll take that one, right? So I think it's going to be innovation-led is what's going grow the business and the continued stabilization of our portfolio with this halo effect. That's important for us, the innovation growth that we see, because it does carry higher margins, Erin, than our corporate average. As you think about just the margin profile for next year. So we expect to grow. We're going to stick with our algorithm. We gave it investor day, although we do have a couple of proof points where we've outperformed the algorithm. But innovation growing at higher margins. As I think about 2027 and beyond, we're goingto have fixed cost leverage as we continue to execute on our current cost structure. And then we have Elanco Ascend coming in, being very proactive on margins. And, you know, to remind you, 75% of that value is going to be in gross margin, 25% in op-ex. And And, you know, again, we've accelerated some of those opportunities in the second quarter, and we saw that benefit come through margins in Q2. But as I think about going forward, I'm incredibly enthused about the globalization of what we have with Ascend. We have over 5,000 projects that are being tracked on a global basis. We have visibility to new opportunities within procurement, within G&A, with AI, opportunities within our four walls, and then even cash. All right, so as I think about 27 and beyond, you know, I think we're going to have continued growth and innovation, margin improvements. We did lay out or state in our last earnings call, we see a path to 60% gross margins. Not putting a time frame on it, but you think about the levers I've just highlighted. I think just a high degree of confidence that we can do that and ascend is a major part of that. Okay, that's great. So let's move to Cordelia Quattro and dig into that a little bit. So can you talk about where we stand now in terms of share, however you want to quantify it, whether it's puppy share or broader share? And then can you tell us a little about where you're seeing it more specifically from a pricing perspective there? has their, and I assume that there was no need for kind of competitive response, but if you feel that there wasn't anything to call out from a pricing perspective on that front. Yeah, I'll highlight just the marketplace backdrop of we continue to see the differentiation across palatability in our minds, the tick differentiation, speed of tick kill. We're going to continue to invest in medical data to continue to show and demonstrate what we believe is a product that has medical differentiation or, in my opinion, best medicine. You know, we've got the quick worm kill in month one and just the broader coverage, tapeworm, et cetera, with four active ingredients. So I think we're going to build a medical program that just continues to demonstrate that differentiation, and the marketplace has given us a problem that we're going to lean into in a big way. This alpha-gal concern on the human side as well as the Lyme disease has opened up, I think, a much higher interest by veterinarians to have that tick be removed before the dog removes back to the house. But maybe now talk a little bit about the marketplace, Bobby, and the specific dynamics. Yeah, we've been very consistent. There's three really drivers for growth for us as we think about Cordelia Quattro. One is market growth, and the nice thing to see is the Indecto market grew mid-single digits in Q2, and that was a significant increase from Q1, and we expect that to sort of continue to grow through the balance of the year. important. The second is we're adding new clinics each and every month. And in the press release, we talked about the run rate of 500 to 700 clinics a month. So we added 1,100 clinics between July and August. And that's really not a slowdown in spite of whatever competitive reactions you may sort of see in the marketplace. And the third area of growth is share within the clinics. And as our puppy index continues to grow and is higher than sort of that one ratio, that means our share is only going to grow within the clinic, and we're certainly seeing that play out thus far this year. And any seasonal dynamics to call out? I think when we spoke kind of after the most recent quarter in sort of that sell-side breakfast, you kind of called out some dynamics in terms of the quarter-to-quarter progression in terms of Quattro. Is there anything else to callout or any nuances? Should we see that sort of seasonal slowdown, or should you be able to grow through that as still a newer product? Yeah, I think, look, the Indecto market is still seasonal, so you'll see it's sort of the market itself, sort of, the absolute numbers shrink in the, call it the October, November, December timeframe, January even, as well. So, but what we're seeing and what we talked about this morning is an elongated season, so we still see very strong demand in August and September. We've shifted a lot as a company when, as I said, we were a 70-30 from coming out of Bayer to now it's more 55-45 in terms of the split. And then where do you think share ultimately shakes out in terms OF the combo parasiticides, either overall as a category and then with Quattro? You know, I would just speak into the $800 million international market. It just continues to, it's growing at a faster rate. Again, we've got dog numbers continuing to grow where they've leveled off in the U.S. internationally. They continue to grow. and again, I see this segment continuing to grow at a faster rate internationally. So when you balance that out, I continue to say this is the fastest growing segment in parasiticides, our largest market. And to Bobby's point, we had a cold January, February, which I think caused a lot of concern in the marketplace. And I think it was more weather related than market related. And we've seen the bounce back pretty consistently all the way through August. So that growth that Bobby's talking about in the second quarter is pretty important to note. And look, and I would just say our belief is Credelio Quattro, as I've said, and the family of Credelcio will be our largest brand family. We feel strongly about that and our 70-year history. And we're going to continue to invest as we continue to see this product, continue to add clinics. Inside those clinics, as Bobby said, it's going to take share. And next year, we plan to launch in Europe, U.K., most of the major pet markets, Brazil, others. So next year look for not just Bofrena to be a big driver, but OUS, Quattro will also be a driver of growth. Okay, okay. And then, you know, you mentioned you were at dinner with some consolidators, I guess, last night. You know, how is this resonating in terms of whether it's product differentiator or what's the go-to-market strategy when you go to, you know, a larger player like that? They're probably using multiple different, a lot of different products, right, in terms of different brands. How do you make sure you're kind of first on the list in terms OFD? Yeah, everything for us starts with medical differentiation, right? And we know that specifically in this area, ticks is a big deal, and speed of kill is really important. as you think about sort of disease transmission, not just sort of with the pet, but also in the house. And we also know that a message like broadest coverage really resonates with the consumer, and our media strategy that is driving awareness of the brand and causing consumers to ask for our product is really important in terms of what the vet decides to dispense and ultimately stock. And I think that's been a winning strategy for us and one that we will continue. And what's next in parasiticides? You know, what are you thinking about in terms of long-acting injectable products or other, I mean, you kind of play in a bunch of different categories, OTC, collars, you know, oral solids, obviously, and others. So how do you think about your playbook in parasiticides? I'll start just by saying, you now, when we acquired Bayer, shortly after the IPO, the whole idea was omni-channel. I mean, it was every pet owner, where they want to shop, at the price point they want to shop at. We're in the dollar store. We're at the vet clinic. We're all the major retailers, major online, and we're using that leadership position now to even as the script business starts to move into some of those channels in a big way. So we will continue. Ellen has built a great pipeline with Bobby's help and Bobby's retail team for retail, OTC. AdTab's a great example of that over in Europe. Four-month collar that we're launching now. We're leveraging the Advantage brand, probably one of the most known, you know, recognized brands by pet consumers. And then look, yes, we are looking at the next generation of innovation. We know that, you Know, everything from long-acting injectables to the next generation of retail to even, you Know, just other modalities that can add more value to the veterinarian will be key. So we're in all those spaces. Let's talk about DERM. So, Xenrelia, where do you stand now in terms of kind of adoption trends across the U.S. market and OUS? You know, it seemed to really pick up nicely. Is that continuing in terms of the momentum that you're seeing there? And yeah, what's the latest on Xenrelia? Maybe I'll start with Xenrealia U. S. You know really similar to Crevelio Quattro, our drivers of growth are going to be market growth, clinic penetration growth, and market share growth within the clinic. What we're really pleased about is we continue to see clinic penetration growth. It's been very consistent month to month, again, 500 to 700 clinics a month, and that's really positive. The other thing we continue to see is frontline use increase. And so now 42% of the clinics we're in, people are using Xenrelia as a frontline treatment, and we've seen that shift significantly over the last eight to nine months, where we were just below 20% before that. And so we're going to continue on that momentum. And what Zanrelia really means in the marketplace is differentiation. And really what we see is differentiation on efficacy. And I think once people see their dog get on that product and get relief, they're hooked for life. And I Think that's really a powerful thing for us. I would pick up just the international DERM market grew 9%, as we highlighted this morning. So the market continues to grow. Innovation, let me be very clear. innovation and today's innovation is making markets grow and that's what the data shows and so the derm market is one that continues to be you know dissatisfied if you have if you're veterinarian and you have a dog return and it's itching they will do whatever is needed at the same time if a dog is satisfied on a product it's less likely to change so you know there is also a dynamic that a satisfied customer is one it's hard for us to get a hold of if it's not on Zanrelia. The data I like to see is in Europe as well as in the U.S. and other markets is we're getting a lot more first-line treatment. We've taken over market share leadership in Brazil and in France, and we're close in a few other markets. And as we highlighted this morning, we're anywhere from 13 to over 30 percent share in Europe with three Jack products. And we have picked up 10 points, as I mentioned, while the other competitive entrant has picked up two. So, and why I think Bobby and I, the consistency across the 40-plus countries is efficacy. And the efficacy is very strong, and it's a special product. And I think Bafrena will just add to our DERM leadership following Zenreli. Where is pricing shaking out amongst the three? Yeah, I think there's not a lot of differentiation on price in the European market. I think, you know, there's definitely launched programs that are coming to an end. And I think now it's starting to be the efficacy determining the price level. And in Europe, there's very little difference. In Brazil, we have that competitive entering there, and the price differences are very, very similar. Yeah, it depends largely on weight band and dosing. But on average in the U.S., the market incumbent is still slightly premium priced, low single, mid single digits. And the two competitive entrants are a little bit less than that. We've taken three price increases since we've launched Zinrelia, and our philosophy is always to price the value. And the more people sort of see the value in the product, the greater sort of the willingness to pay is. And that's even post some of the price actions taken from a competitor. That's correct. Okay. And then I think you still have commitment to, you know, hopefully a clean label for Zinrelia. where does that stand in terms of what's the latest on that front? Yeah, we're on a path for continued label improvement. We're committed to that, so the research continues. Our plan is to make a submission at the end of the year, and then the FDA with the Dufo would be coming back to us in the middle of 27. Okay. Okay. And then for Frena, so I think it's been, you know, a nice surprise to see kind of you highlight that as such a driver for what was supposed to be kind of a measured launch. So where do we stand right now manufacturing-wise in terms of any sort of limitations on that front, but also what you're seeing in terms OF traction and the go-to-market? Bobby's causing a lot of trouble for great manufacturing. So, you know, the demand has been greater than we expected. And so on monoclonal antibodies, there's a ramping that occurs when you go from one stage of bioreactor to another. It can be over 100 days to move, so there's a staged manufacturing supply. And we're in the midst of that. That's tracking Grace's teams all over it. I was in the plan a couple weeks ago, Bobby and I. So it's going well, but it's ramping, and the demand is much greater than we expected. Maybe share a little bit of the market reaction. Our plan is to be off from a constrained demand sometime in the first half of 27. I think what's great about the product is the differentiation, right? And we say very similar to Zanrelia, differentiated on convenience, value, and ultimately efficacy. And the good news is we started seeding this with KOLs months ago, and they've used it on dogs. And the product's performing as intended or better, and that's always nice to see. And the second thing is it's a great complement to our DERM portfolio. I think now with this product in, we have arguably one of the broadest sort of DERMs portfolios, which is going to be a tailwind for the rest of our Derm products, but also will help the front of the ramp even quicker once we get into an unconstrained supply situation. And I think, Aaron, just step back. We're talking about a $2.5 billion market that has a growing need that's becoming more elongated in a year. And we're coming in with two products that we believe have medical differentiation, and we're less than $100 million or so in a $200 billion market. So that's, I mean, there's a lot of market dynamics going on right now, but I think, you know, even investors coming back to us, I think that's the one piece of feedback is we have a long runway here. And our intention is more share voice, more commercial execution globally, more dollars against those launches, and really good investment in medical differentiation. That's, and we have, Ellen's got more products coming in Durham. Our plan is to be a major player in global Durham the rest of this decade. Yeah, I Think that that's, you know, an important dynamic to think about in terms of, you know, you're under-indexed in certain categories, there's significant room for you to grow, especially in some of these even more competitive categories as well. There's probably room for more than one player. Do you think that, you knew, there is a portion of this market that is sort of underserved, if you will, in terms DERM and in terms response rates to Apoquel or others, is there also room for significant market expansion with the launch and not just, you know, the three of you competing all against each other in terms of fighting for this $2.5 billion market, that it could be actually bigger. Yeah, we expect the market to grow. And historically, what you see with innovation is the market expands. And what Jeff alluded to is the data internationally is very clear. With the two players launching in the marketplace, you're seeing that market continue to grow. I think there are plenty of pet parents that have an opportunity to move into a new mode of treatment, whether that be a JAK inhibitor, an IL-31 MAP, or new technology that comes in the future. Okay. And so you alluded to it, and I do want to get to it. So innovation from here. We get the question a lot in terms of, okay, what's next? Which is the inevitable question. We're giving you 60 products and we got to know what's new. And everyone wants to know. So what is next? Well, I start with, first of all, what Ellen and her team have done is for five years, we focused on the fundamentals. Let's get six products into the marketplace that are major. We've upped our innovation guidance for three years pretty consistently. We were very clear at our investor day last December is that we've got 15 candidates in clinical. They're in the big areas and a couple of the opportunistic areas. And we're committing to five to six new blockbusters between now and 2031. It won't be a hockey stick. It's going to be a nice attrition. But we've got a really nice runway with Bifrena and all the things that we just talked about into 27 and beyond. But look for us to continue. I think this is really important, Aaron, is one is we can take a lot more growth and bring a lot More innovation in the big markets. So you've got a $6 billion parasiticide market, new modalities, new innovation, DERM, pain, pain will definitely be a market a billion market headed to $2 billion. All the vaccine, infectious disease, and then over there in pharma, that what I would call performance sustainability market is a couple billion dollars as well. Look for us to be there. And then yes, CKD, oncology, obesity, even DERM and CATS will be four markets that we have a pipeline in. What I'm excited about is we've got the most stable probably i think one of the most capable r&d teams and that stability is the lead indicator i think right now so they're very confident that we're going to bring you no no air pockets in innovation that is what keeps me up at night as an innovator is that we are going to be focused on that yeah i did have a question kind of like novel therapeutic therapeutic kind of categories versus others i mean we we do hear from others kind of targeting similar types of categories like where do you expect to be first to market? One of them that you've talked about is a novel immunotherapeutic that has the potential to be First in Class and a major pet health blockbuster, potentially in the next two to three years, if I'm correct. Any more color you can give on that? We've got an accelerated process for the regulatory body on this. It isn't a major market. We do think it is a new type, a new mode of action that can actually have a significant breakthrough. And we'll report more as we go forward. But, again, we believe we can be an innovation leader the rest of this decade. And hopefully what we've shown over the last few years, that demonstrates that. And anything from an investment perspective, like internal investments and commercial capabilities, manufacturing capabilities, that you do roll out this next wave of products? Do you think you have the capacity from a manufacturing standpoint to withstand that? Do you have commercial capabilities based on what you've learned with Quattro and others would love to hear kind of how you feel on that. Yeah, from an investment standpoint, there was a lot of investment put in in 25 and even a little bit in 24 and 26, particularly in the Elwood facility for our MAP production. But I think from an investing standpoint, I think we'll see that investment really normalize as we have in 26 and going forward, and we continue to invest in R&D and we Continue to invest in DTC. But I Think from a capacity standpoint, there's really no gaps as I see here. Are you taking advantage of some of the disruption that you're seeing in the market, whether it's Salesforce defections or otherwise? I assume you're weaving people in. Yeah, we're always opportunistic. I mean, we are on offense right now. We want to have the best share of voice in the marketplace. I think that's something globally and not just commercially, but I think manufacturing and R&D as well. And so, yeah, this is a really good season right now for us and what we think is a very attractive market for talent as well, in our industry and even outside coming in. Well, I think it says something in terms of your dedication to organizational stability as well. So congrats on that front. But thank you so much for your time. I appreciate it. Thanks, Erin. Yeah, thank you. Thank you. Thanks, everybody.