Mallinckrodt (MNKTQ) 11 Aug 222022 Q2 Earnings call transcript

Good morning, and welcome to the Mallinckrodt Q2 2022 Earnings Announcement and Business Update Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Daniel Speciale, Global Corporate Controller and Chief Investor Relations Officer. ahead. go Please

EVP morning, today. Good Mallinckrodt's thank for Bryan you President Officer. Thanks, me everyone, this us Reasons, and Officer; With Chief Olafsson, Chief morning joining Financial and Anthony. Executive and and are new Siggi

to over the stated assume these some you be make Siggi, let statements, materially results expectations. could and we it's different Before that call me obligation hear our you'll Please I note, no to turn actual from us forward-looking remind if you possible that expectations refer contained update even of change limitations such materially. for to statements the future statements, results or explanation of filings forward-looking looking actual cautionary more SEC We to in statements. in-depth inherent a encourage our the

measures adjusted and distribute related non-GAAP use can our mallinckrodt.com. should of look non-GAAP selected our to at of financial be website, as A earnings provide to information, information. website also is found a will Investor measures this important page release, performance. and Relations these We for the you time-critical website in company reconciliation included our which our our on We channel

XX, period As April July X, bankruptcy June as a predecessor quarter emergence Chapter noted X the release, from ended June the included XX. successor XX a on to July in second XXXX, period a X, XXXX, earnings our XXXX, June from to and from XX result of

that, today the periods mentioned net on are to The Siggi? the turn And second with will those changes otherwise XXXX. discussing ended against results basis. constant percentage currency we for second over unless be operating sales quarter the XX, With a be June I'll quarter will we call Siggi. comparisons combined here predecessor, specified,

little our how working business Mallinckrodt's years, to recently both Actavis became career, of and a Teva leadership which good and generic Earlier in pharmaceutical positions on CEO I'm as Pharmaceuticals. Hikma I most challenges drugs. my served Pharmaceuticals, by the my then the ahead Thanks, Watson I in about as had I'd XX business for you Dan, nearly and in the branded and myself everyone. the perspective industry the telling why on at and Pharmaceuticals, Mallinckrodt's CEO. like see and to first you time opportunities company's been -- join insight Mallinckrodt excited bit share be It's start new here. to and already a be Each speaking has I've I'll Allergan then to President plan pleased we we director and Pfizer. is to future. alongside as for pleasure the I'm our today, us. Board. morning, brought for highly been valuable input of

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by believe years pandemic, have lot from a in with opportunity at the many A has has recently patients. U.S. to the financial already flows the which operation, immunology. cash liquidity, foundation changes to to business, inflection done competitive in and in global solutions critical on innovative the significant establish doubt and company strong care commercial challenges delivering past few we solid platform underpinned bring a of the While Today, Mallinckrodt back and work and important meaningful completed faced point. I no focus reorganization the an to positioning been is is

Therakos, Gel we and bottom executing to the include and the the that address. of Mallinckrodt, challenges of growth These in the performance a exist is work stabilizing terlipressin there U.S. hard of Although gaining challenges for protecting approval at lot for significant I launch Acthar careful reinvest potential to will while have and today INOmax, shortly, StrataGraft, believe to and we results details for guidance line all the the but continuing generics, the pursuing reflect balance the currently business in our cash the we will is the in facing. financial of quarter quarter management are and go are headwinds the our business. into sharing opportunities Bryan driving

reorganization, right by to need navigate course, an am our personally Further, been committed strengthening I pipeline. our we stabilizing and organization. with healthcare working on litigation of that some I is portfolio real has has are to balance we with call making increase sheet, wider combined our perceived. that shareholders investment to communication the Injecting of reenergize led some will a to the stakeholders. of with our I three and Importantly, partners, This teams organization opportunity our with near-term many our optimism new company impact there's and This investor patients, the a customers, to time. and priorities. our focusing recognize complement -- redouble urgency culture business payers relationship these need the relationship with into Mallinckrodt's first clear priorities: is headwinds Mallinckrodt the near-term am how strengthening is something had to providers, fixing. to our and in engagement on vital our Mallinckrodt's and in be

dig let's by details forward. more today. moving As begin say, about our we information I'll some talk to business refresher, providing I’m into are in then and priorities segments going on we'll where a our

core on drug global serving margin segments, for and Our conditions. that commercialization innovative with patients visibility business records, Brands. revenue brand segment employees, Generics. Specialty and products company Specialty and high a established Brands approximately critical to X,XXX track strong Specialty is to Starting with from development has through talented branded severe recognition focused foundation two and benefits value. This This bring patients a underserved robust streams, drive

help potential products, base our exciting terlipressin, business. U.S. In the future to and addition the to along to in-market StrataGraft of an stabilize are launch forward we to our with of of in midst enhancements line launch look

Let in-market branded and our products opportunities. me highlight

First, superior expansion, technology, and customer INOmax oxide and nitric the have with leader allowed and INOmax international the gas oxide inhaled a brand service nitric recognition is vasodilator in market. coupled it and contracts navigate the to for long-term nitric significant towards visibility continue provides to work pressure revenue oxide competitive inhaled the product the in market. stabilization. leader we remain as Moreover,

We continue more launching drive moment. franchise and look will EVOLVE, in I to INOmax innovation talk in a forward the which to about

ability fight Therakos enhances immunology platform patient's Next, to a disease.

validated ECP niche drug indication are extracorporeal profile. fully world's integrated the well-established combination very a Therakos and with or device safety system. We is photopheresis only and

Japan to and the are host labeling, additional expand graft geographies. disease U.S. plan and adding in versus also to to into pursuing expand label Therakos launch in XXXX We additional including opportunities

in by ECP product and this from While and utilization it market oral continue pressure has COVID-XX will been product to the expect over we remains therapy competitive time. grow impacted therapies, leader

our the repository a On Gel, ACTH line injection episodic currently the living these complex across autoimmune therapeutic indications currently Acthar mixture leader efficacy disorders. and Gel immunology is and and offerings, biggest later side indications its product of in promote for with the XX corticotropin XX treatment backed focus that other has on patients supporting acute is safety. of a peptides of Acthar the and of multiple with We by decades market of our clinical evidence specialties.

U.S. this minute. injector retains We a for our about first the own total of for the product support partial-thickness market, like we'll are in It globally burns. ability XXXX. see January device, annually to strong utilization to body’s and select activator continued alternative for for burns. a a lubiprostone the where innovation partnered constipation the for responsibilities. autograft drive the CIC-X talk in Amitiza, market S&T which with StrataGraft, autograft in also and designed Acthar of exclusivity heal. and the extends Japanese which launched is franchise has adults to and is partnered to FDA-approved hospitalized committed continue being handle Mallinckrodt in XX,XXX is self-delivery with to product, patients treatment treatment It approximately the to large We delivering addressable severe which manufacturing deep an in the

providers ensure that the can of the launch helping healthcare positive been have to a ensure deliberate play with role outcome victims. We the understand burn and in StrataGraft

a surgeons, we with due this to by are progress our we recognize date. thorough approach be educational encouraged slow will are taking launch the we While to

made cycle that this of changer. with where a the enable pleased be over U.S., XX% StrataGraft the in line and Moreover, in burn expand we we remaining into life doctors full surgeons thickness period, received we and have therapy to in providing invest XX-year in burns ample and a have centers game have are of indications, goals, exclusivity feedback the to including us from can we pediatrics, presentations runway with opinion think We our leaders. key internal and will

innovation. We about are excited new this very

pipeline. branded our to now Turning

This indicated with of start If to HRS. improve Disease agency clinical the function driver, U.S. growth use markets. PDUFA Association and adults me we history Syndrome European for doctors demand the confident of will Hepatorenal selective good established NDA to the Let a Terlipressin kidney approved. a global our vasopressin synthetic with a for as first June, the a In and if terlipressin. analogue FDA only of in of countries or be we Study we an the in treatment. a we treating high this terlipressin for approved, the resubmitted X. therapy. Terlipressin and to will is And American has the period be according treatment FDA-approved preferred it seven Drug with in HRS HRS have it's Orphan patients treatment guidelines, approved, Study for exclusivity, where are in as treatment the December approved, for Liver first-line that and awareness, recommended Associations if will strong date have Since years global exclusivity including a a is Liver

I which enhanced streamlined our is Next improved design EVOLVE, device This with automation, and transportability. INOmax earlier. is mentioned next-generation

XXXX a launch. targeting are We

dosage an In delivery for Acthar Gel of patient-friendly our more easier addition, Acthar have device, delivery single and unit device, we new indications. alternate version alternative

franchise will in the in patient over of of indications. device our innovation expanding appropriate expect by performance the patient Gel substantial to help the to therapeutic conversion Acthar of self-administration, Due broader reach a expect most full a stabilize we benefit population. terms time We our to

In terms where device are completed. of has we the been development process, in

ready are we before to remains, we must move ongoing While our an one partners submission, resolved of regulatory which be matter can proceed forward. with involving

generic supply APIs, Vertical medicines number advantage, business high-quality dosage as organization. visibility also ingredients diversified a active is to of business provides and a integration to and of our segment. across finished global complex and highly pharmaceutical streams. quality, vertically specially stable positions this quantity API provide partner or purchasing and competitive including large Turning opportunities. It a affords Specialty consistency important that skilled-strategic in markets revenue integrated -- that This Generics producing a

complex we R&D highly-engaged capabilities In formulation, organization. proven a addition, and have laboratories in state-of-the-art

and APIs ANDAs across Our Generics diversified families portfolio portfolio diversified over the more SKUs of Specialty long-term than to complex has value XXX generics, drive product XX and creation.

We shipments are in we API strong leading that to zero our as pandemic I'm also Specialty the during proud Generics. the execution for of supplier analgesics. COVID-related pleased report missed

at details. Starting priorities, further top will Now mentioned of I with call, the the three the now which I near-term in sheet. strategic discuss our balance

strides the taken actions the the reorganization we prioritize While drive wisely. reducing that year spending start will continuing and will flows. last and debt to process, company through critical costs has company the made on strong reducing over cash plus, reducing we by further Building

to segment the were R&D and refocusing a protect costs number containing model shared to This SG&A last realigning a across operations. reduce made service a support leadership base, shifting of the in the to Over lower there spend long-term and includes margin priorities, cost and segment growth. months, EBITDA the and changes the XX R&D achieve

continue organization. the like across will efforts We this

do spend will further efficient, also we it. the how priorities key we we noncore evaluating At delever. to of operate of is the impact we and the will that and can assets a look maximize the less today. confident to close dollar do so, doing we same And opportunities better my to taking and time, be each size enhance market of continue suit we at One In streamline I'm spent. way become divest everything more to

course, strengthening to second me of which generate is flow, part sheet, other our takes strong cash balance the third priorities. On continuing of to and our

starting Our and stabilizing with portfolio, are we is which second maximizing critical. products. in-market priority for a opportunities our On strong is this front,

to the these executing align to opportunities products will existing focus markets. We bring organization's on the new around

to will We solutions third continue patient-friendly is market. more bring driving priority pipeline. our And also our to innovation

focus a we here new While investing several to exciting our pipeline have of in expansion development, market. on our in bringing products with regular goal of new a be of will cadence therapies value-enhancing the establishing

you providers, the them approximately Bryan, Mallinckrodt's think And process seven for lives time shareholders from hearing to turn to employees since and positive impact with doing redefine what extraordinary to in serve valuable the value with look didn't these to well, for and I future. my joining success. is note the it to create a will to for doing while but us, and here resilience what belief successful same great it they our in I've Mallinckrodt's quarter ago, partners over year. future do over have focus, out Mallinckrodt the reiterate confidence Mallinckrodt with insight of I'll our the a to are weeks also I all, day. here directly With our can want this deal outlook have a for and conversation forward turn the on that that patients' The near The I second better. reinforced be Before conversations about to from of engaging crucial results our have a speaking feed into I for we learned grit, remainder we our every the work we patients that that Bryan create foundation customers, cut forward. we wouldn't we above be already make today want healthcare who our are patients that, path ability undertaking on every discuss have to will and teams desire company. possesses and I chart we a to spent

have to with exchange in public us. for look to moving board thank you soon everyone us the to possible. also excited as as to Thank We're a on and stock I'd today. We're to thrilled Siggi. like be you, national joining back to forward the markets

Before the on want results, financial through I June. dive what Mallinckrodt briefly to accomplished reorganization into touch completed in this I financial quarter's

which initiatives, is opioids debt eliminating strong related than company billion resolving included our second, credit by the cost-cutting Mallinckrodt process, the private accounts position; liquidity significant efficient reorganization and and organizational and in $X.X executed position a and First, recent meaningfully history. contributes and and million improved litigation more number reduction both meaning enhancements to receivable more This raising Acthar governmental than facility, third, litigation the that $XXX financial by of today Gel, leaner in principal new resolved company to matters; during including uncertainties. Mallinckrodt

net million quarter million, total $XXX $XXX as reflecting Mallinckrodt sales compared results. our of second a to XX.X%. to Turning in decrease the were

primarily sales million. Specialty Brands utilization the Our million pandemic segment product $XXX payer spending. a reported net specialty reflects Acthar of the impact This certain on of overall as $XXX XX.X% Therakos, compared impact and scrutiny to INOmax on COVID-XX of pharmaceutical continued to including Gel, continued the of decrease due and competition to products,

performance to $X quarter, its a onetime impacted the historical which quarter. adjustment company program, During the this rebates incurred million related Medicaid to in Gel Acthar the

Acthar For $XXX the sales for approximately net Gel. year, the anticipates of million company

foreign reported year due was the the start segment preparedness and to a $XXX a of in from unfavorable sales, of $XXX primarily a the profit sales million, companies, of a in and SG&A offset $XXX associated settlement a overall of partially net fresh opioid sales debt the of compared the allowing SG&A respect offset due undertaken net primarily by terlipressin, EBITDA and metrics the R&D us bankruptcy, percentage reduce the other by from reflects a launch adoption. to flow, company adjusted adjusted primarily accounting With the repayments quarter, with adjusted as to the and operating substances for Throughout compared loss seen was impact expense decrease quarter most the expenses sales XX.X%, in specific of net XX.X% foreign net reductions was has past $XXX to quarter primarily to Mallinckrodt's This as emergence payments cash gross the in million. actions XX.X%. and $XX.X impacts This growth as million, currency, generated compared percentage of R&D as satisfy company of adjusted net Generics StrataGraft, of lower strong controlled to sales and number dosage expenses million a SG&A during negative of loss impacts as as launch its currency the was XXXX, net company's driven in in as X.X%, decrease million quarter. sales, was in $XXX we've tendencies cost Our net in was resulting APAC. the second of percentage million a API to Specialty net reduction The incremental and X.X%. approximately of $XXX at over million emergence structure. by sales Like in to the plan-related mid-June.

will generate And sales expect business sheet. to as flows moving continue mentioned, improving to will We Siggi as evaluate balance forward. cash the continue asset company the the we look noncore

In of we announced $XXX $XX obtained which and the The received company closed of review the more fact, $XXX have StrataGraft, recently in million million may liquidity. sale priority in the million. of on has as you seen, voucher we than approval

all the This from July were proceeds the million as Our net cash outflows includes cash equivalents of revenue voucher. and XXXX, sale emergence cash of at the $XXX of retained of million. and $XX X, is priority

in full accounting fresh revolver. payments. it we billion, excludes pay settlement of the financing. with and in a million $X.XXX down financing as a outstanding to undrawn maintain million which debt differs million net second $XXX the was from a of billion the debt quarter continue We at $XXX principal annual balance part completed to sheet accounts receivable This of of financing new and $XXX reflects our $X.XXX exit due the facility Total established start end June

between billion total of million. and full billion sales Brands net $XXX expect $XXX million. $XXX to Generics are year between between and we $X.XXX between And $X.XX $X.XX achieve the in sales million sales Specialty net ahead and $XXX Looking billion. of in Specialty Total net billion. Total adjusted $X.XXX XXXX, EBITDA of and million for

some Now Siggi for I'll remarks. back call to closing hand the

Thank you, a them. equipped cash believe are and Mallinckrodt while Bryan. I from well still liquidity, solid we care strong ahead, to significant positioning commercial U.S. that and meet underpinned foundation want restate competitive critical meaningful And to in a platform flows immunology. I operation, has by challenges have we today

We have priority our priorities to will These for to top reinduce and efforts hand executing business the Mallinckrodt. the helping a our clear to me path be go forward by and near-term our stabilize reenergize stakeholders teams truly in hand. to

people's Finally, the patients. more that Mallinckrodt has an patients lives. for I've unwavering that be rooted to become working my for further and I'm has a company, alongside making a passion teams share the on the strong future improving pleased difference learned about outcome in conviction in first a focus putting

We next up And it are with what Operator? open excited for comes Mallinckrodt. now will that, Q&A. at I

Instructions] come [Operator Our Greg will Fraser from with first question Truist.

point. on getting to this Congrats

First you the process that anticipate when you the and be relisted walk stock, that could exchange, do through would on timing, getting on question, just if helpful.

Yes, sure.

due We're application So the very to worked -- requirements, that in the point. from make order. to, He something bankruptcy. It's of of need to. you on in We that and quite this to a quickly to as perspective, specific look steps we'll ensuring perspective from possible. in our concentrated Bryan we through wanting of at reference we that the the something from we're advance make a working short application heard and committed requirements that on relisting do didn't meet meet shareholders much nature to didn't exchange as requirements as respect the in is the listing largely emerging obviously

competitor that you about brand assumptions new products. the mitigate and steps of And it. talk couple that that Got key into the kind on specialty questions guidance? you the on on guidance specialty share of INOmax the franchise Acthar, for and talk A with loss taken Therakos you've are the factored and about to Can market? the protect can the

Yes.

INOmax start talk Acthar, Therakos. -- then about and more Bryan the So let me on about will

pressure Acthar, pressure. a mainly pricing what we think have I is the been clearly, product seen So under has

As expanded. the you seen we market market a But a not mentioned, the has affected that can has we Symphony expanded new really with so competitor product on there the competitor have the products XXX(b)(X) is of introduction really And new our data that the from itself, market, coming market. a the is see that what rate. prescription to much new

the self-injector I think be soon. for to the that big device, the we hope us will thing new introduce injection

getting with resolve market. product our soon challenge one our giving is good opportunity feel hard FDA to But that this the a will as franchise. to at And very of hope opportunity we an as tailwind of the a and working turning issue. of the some a with boost from and have partners looking the We that product. one to the a into I doctors real around better Acthar feedback very Still be the suppliers, patients, and we can and bring which

trials You has different behind XX in promoted indications. different have mind clinical a It's to XX this keep in it. product is that that

pleased very mainly market. over INOmax years, performing. and to and product the Bryan, clearly, the been Therakos. in has on pricing due pressure, are it's maybe last We pressure the under how the But it few with

a make of comments. I'll couple Thanks, Yes.

market kind in the as now. INOmax, of we the a when been of of largely Praxair a has We're of renewal round the know, years a you customers, look kind contracts for competitive in at So couple markets. through of

we are the institutions market seeing to starting view, bifurcate And that and to the are a of product value kind are oxide stabilize. commodity as -- technology see nitric start could versus of we glove between that delivery service. white So that

been has a consistent for historically and We latter. Therakos, growth very are -- us. been asset seeing in compete that, On the that's obviously we

pandemic, quite of there's to a a cell During and we see when bit go transplant did patients to these lag dip stem therapy. bit, the a on

we stem that very, in of for growth. oral out cell couple very Therakos return of there's see that. dip. early return there There But we did normal are to levels do a to a and kind therapies. both stage to which competitors do of types So expect on it the the that as see market -- We we to kind see room

Yes. Maybe appreciate Greg, add you guidance. And mentioned I'd one thing about question. specifically to, the I

to remainder XXXX, that of for today and really or just I in we think $XXX product comments made Acthar set an we expectation one million maybe XXXX an was the this for -- that totality the of referenced for specifically, approximately mark try year. so

provided So that with total, in looks if like. kind take you Specialty guidance we sales consideration the for into net frame to portfolio of what Brands of respect that the should help you rest the

it. helpful. Got Very

Just three the much base roll And off a INOmax. quick locked next How those over is follow-up or long-term contracts on of the customer with do in years? how two contracts?

Yes.

on So a it's it contracting. INOmax, basically

some multiyear the a contracting, years. last are in So customers on contract three yearly on other a are two, customers

coming So at much more new this that into at gives visibility. least me a business

I think we are still the market leader.

months and market, But front, our a negotiate are a go have we contract least we back. at need up, have comes but But good some to that the contracts. whenever visibility share. XX contracts multiyear We healthy market gross at of

Any other Greg? questions,

I'm good. in back the I'll queue. hop

David come will Piper with question next Our Amsellem Sandler. from

had a And just couple.

talking So of competition. but is first, the to stabilize I you're trying reality there Acthar, know about

assets, bandwidth your look Do on size, terms away how brand diversify be related as you're also deal thoughts also about I the that, you you assets? you looking your And you're from generic to about Siggi, at can how that would just M&A about of wanted thinking at development? So Acthar. And talk ways further terms to get helpful. to you're articulate of can thinking in in then that business business

Yes.

David. So thanks,

we months the -- on of reducing the focusing last or there. EBITDA costs ways. we balance thing a the in reducing preparing more is stabilizing first debt the are as lower point there reducing but have have, by prepared of over with we doing first we that job the debt. great our we really company. And In I has So -- debt, to that the in do EBITDA two done opportunity keep the mentioned remarks, come. team in the that is my think How we sheet. And this landscape I the XX way, a hopefully But increasing can and

at that to the future of the size for we think will the and revenue we Mallinckrodt of need look of and opportunities product I this offerings the rightsizing have. business

The reduce us little to the this to of noncore opportunity opportunity debt, for of second also a in-market thing, selling an product. assets bit for obviously, is but the business give

In business The key Gel INOmax. Acthar terms is us it. of you highlighted for the itself, thing stabilize and now to

we have last under will we now three market, soon feel years. opportunity is we pressure but over the pressure next what's and of have the that. have pipeline, bring the detail this been months, be in in the under because that -- we really extension help to more business we else. have through everything for the went to that that and We will than the around hopefully, reasoning understanding feel the XX turning And we we we products us there which hand a stabilize line that in will still the We in both understand anything for for

be the we how has we it that of around to the have. business, grow terms pipeline In can

autograft know a all, but really, First And very excited is be this is StrataGraft. alternative a to treatment how XX,XXX think to great I'm if of changer works, game I there knows able patients burn mentioned burn about of uptake, that. for a StrataGraft in anyone slow victims I I utilize. the is burns around the victims. for

the will therefore, and believe line be big also It we their know have product excited behavior in extension, a are, in working a I'm We key is a a they surgery. product. belief personally going on epic where how about need for the food this pediatrics, terlipressin, and to And slow reason I both way, also will slower on burn is -- burns epic. how be in it's changer that. a thickness, but terlipressin forward. game this product. on a think about I excited I'm utilize, we surgeons treat change they to for that So But work we the with

PDUFA the liver very We product HRS. U.S. people there's is have XX every that X. treatment critical approved date over failure year. a is in for XX,XXX condition. HRS of In get There the -- no the people And today, on a December U.S.

the So work from the U.S. their be HRS, real this profile indication the is a product we real the of expect issue need. X there to from of outside well-known And the U.S. this known patient abroad, that kidneys and that's product colleagues functioning, where a type well this U.S., is is know doctors a the stop safety outside

other the we of think generics to look at and opportunities, need brands. pipeline I terms In both

I think II, expand a product. the Phase on is brands on more bit little to III Phase

actively looking that. flow are our still for partnership cash in projections. cash have on We We

also supporting the We down paying up we are pipeline the in-market are products. debt, but building and

business, three introducing won't a significant of exciting really which us. as part to I to there we a But in could or Sandoz one still this business years the overall, been pipeline, difference giant the a maybe but the to for the that do makes -- the to have for is five we market, or Teva It's as the this of know, they've or saw I products I'm a you and small we'll generics part the niche four, feel two market, difference few company our make relatively a generics So used continue last years. we invest by for opportunity ago, maybe be same big XX years, in in that difference comparison have. or what been make I've Viatris impressed maybe in that. with that business to in wouldn't the

XX XX of big cash M&A simply next do months, don't have terms we the M&A, So I don't in expect us to that flow. to in any

be some have And we down business debt. Our availability to utilizing cash grow focus if us on then to will to anything Bryan, enable going paying continue forward. you? from remaining the

do No, great there's in to an obviously, opportunity commercial in, we creative-type think, to add to commercial months, where delevering. that's I'd any wouldn't back-end on some infrastructure. drop type a with upfront. M&A transactions could XX XX large utilize -- structures our think an the in next our with just asset that current to that I an BD And a or and maybe I focus have we smaller bring -- answer. the royalties require opportunity But

structure big to We're term. some there a is diluted-type in to and on upfront near creatively asset. doing year. in next So to going and wait be accretion, transactions long-term But the not we'll near-term those look have the and that attack

follow That's may guys. up, Okay. And if helpful. I

there And when mean, Siggi, franchise you're piece was that I So certainly a big no the that injectable of hospital there. big to at stranger is obviously, you're a business. Hickman,

is, brands. hospital here And you have think asking I do a of about generics, guess do what So But XXX(b)(X)s, that out how infrastructure. about in the expertise hospital franchise, as injectable you you the further it's given how maybe experience and do your whether your going piece evolution think think Mallinckrodt, of some of you regular some I'm that forward, build about business?

Yes.

really our know care I critical first thing we need. business. the have we infrastructure the We in know think So the doctors, impressed I'm the that is with

nature We answered INOmax, We question the service have relationship the such the StrataGraft relationship. but we relationship. just product is of a INOmax due provide. to a is the a amazing about

XXX And them burn working there's U.S., burn the half. the We spoken are units in in We really We've up of more of building mind, the whole because already I have. to are unit. U.S. with and critical in only trust than a terlipressin the unit. Keep us will relationship into that of think the is is our care hospital And business with -- help we which really market, an injectable a there coming in product.

an that. I think there expand to opportunity is

I would short in an two market. We take or has be term, that we needs products on an to to commercial our opportunity somebody it to really more partner would one think the a products. partner have that the ideal we in for bags be take

have We bandwidth. the

We have the expertise.

we We service. team, access have the market the customer have

doubt good So or I I think coming couldn't is any But the a the matter you really to now. reason I've a specialty partner the special What for it department that would do impressed for where I'm that service with is. that's having this, drugs, we -- I with. impossible hospital, seen, need I mentioned. is of protected differentiation, differentiation, what think XXX(b)(X) if focus we good no product to seen the into a say generics. for type be

have we early think an I products.

in phase infrastructure. We have hopefully year this be the is StrataGraft in this launch terlipressin, approved. we the which the opportunities products launch later two and when phase have But will with really,

expertise. We have this

the have positive have part really expand feedback business. very opportunities this and to us to of that's We from that the BD part the M&A would allow And hospitals into that product that expand our of we offering.

questions? Operator any more

closing further There back question-and-answer are Speciale concludes currently This the like turn session. conference to to Daniel any over for remarks. our I'd questions. no

want we to the We look coming Anthony. for all interest weeks And company. thank you the and your days engaging guys in with Thanks, in ahead. you Yes. to certainly forward

way and as possible. have and the a Siggi to you. to And best best hold as your with soon Derek day. get get the and investors any and as look forward of Bryan you we have If e-mail, forward Thank moving a I we'll questions, here obviously well. having certainly engage nice you will today with be and you the back to All families

now conference presentation. today's for concluded. you has attending The Thank

may You now disconnect.