Inspire Medical Systems, Inc. (INSP) Earnings Call Transcript & Summary

Great. Okay. I think we'll kick this off. Good afternoon to everybody. My name is Graham Doyle. I head up the research team in MedTech in Europe. I'm delighted today to be joined by Tim Herbert and Rick Buchholz from Inspire Medical Systems. Really good time to have you guys in. Obviously, the business is really taking off commercially. I think we're going to see some interesting commercials, as well, today, which would be great. And the plan for the process is to hand over the guys to talk through some slides, maybe see a video or 2, and then go into Q&A. If you have any questions, you can see there's a QR code in front of you, you scan that and e-mail in questions. Or if they don't seem to come in to me, just raise your hand and ask a question. It's fairly informal. Brilliant. I hand over to you guys.

Great. If there aren't any questions, we'll just call on people, right? So that works, too. So thank you. It's really a pleasure to be here. And I was talking to Rick this morning, and the last time he has been in New York was the day, March 4, 2020. That was the day before COVID actually hit. And we're here at -- seeing some people. So it's great to be back in person seeing everybody again. We don't have a lot to show as far as slides. Can you guys advance them back there? There you go. Next, that's the legal one that he makes me put in. But just as a quick summary, at Inspire, we are the only FDA-approved neurostimulation device to treat obstructive sleep apnea. Proud to say right now that we have treated over 25,000 patients. We crossed 25,000 last week. We treat about 35% to 65% of those people who are given a CPAP device because they simply are not compliant with it. And obviously, a lot of dynamics with Philips since last July, and they had to go into that Class I recall, but it's a tremendously large market. It's over a $10 billion annual opportunity. We certainly are not there, but certainly have quite a ways to go. We have a safe, comfortable and convenient therapy. We have over 70 clinical studies published, including over 2,000 patients. What's unique about the device is -- go ahead and go to the next slide. And it's a neurostimulator. It's implanted inside the body, and the patient has a little remote control that you see that they use when they go to bed at night to turn the device on. It's about a 90-minute outpatient surgical procedure to have the device implanted. And then we let the device heal for a month before it's programmed in. The battery, again, last 11 years. So after 11 years, then the patient simply goes in for a local anesthetic to be able to replace the battery and replace it. So there's just 2 small incisions with this. Go ahead and advance. We mentioned we have over 2,000 patients and 70 studies assessing the safety and efficacy. The largest one is our ADHERE Registry, which is a 5,000 patient study. And this is showing the data from the first 2,000 patients. So what's important is over on the right-hand side and on the lower right, after 6 months, we ask patients, what do you think? 92% of them said they'd do it all over again. With the safety and the efficacy and now with the patient satisfaction scores, that's when we knew we hit a home run. So over -- since 2014, when we got FDA approval, we have now garnered reimbursement policies with pretty much all commercial payers in the United States, from United to Aetna to Blue Cross/Blue Shield to Humana, to all of them. We do have Medicare in all 50 states. We do have an approval at the VA and at military hospitals as well. Go ahead and advance. The key to this therapy is that if patients have obstructive sleep apnea, they're not ashamed of it and they're not quiet about it. They will talk about it. They will be at the neighborhood bonfire and say, "Yes, I got that sleep apnea. My wife elbows me, and I've got to put the mask on. I hate that mask." And people talk about it. What that means is this really yields or lends itself well to a direct-to-consumer experience. So Inspire is actually a consumer-based company. We just have a MedTech product. So we do patient outreach. We do TV commercials. We do radio, Google, Facebook to attract attention. We had 4.7 million people come to our website in the first quarter of this year. And if you go through our website and pass 4 questions and provide your personal information to get you in contact with our call center, 24,000 people called the call center, I think we ended up with maybe 3,000 implants in the quarter. So very low in the start of the penetration of the therapy, but it really showed how we can advance the awareness of Inspire and the knowledge and bring people to our website to be educated. And it's always fun at these to be able to show on a couple of our TV commercials. One of them, you may have seen on TV. It goes back to one of the old Beethoven movies, and so we kind of recreated that scenario. The second one is brand new TV commercial. It's going to start to run nationwide on June 1. So go ahead and click twice, and it should start a long night. [Presentation]

If you look at every one of our TV commercials, there's always -- we always try to show a CPAP mask. We always show a patient putting it down, struggling with it and being able to gain benefit from Inspire. So I don't even know if Sandy has seen this commercial yet. So let's see, go ahead and let's run this. [Presentation]

Cool. The key to that is when we look at the patients that called the call center, we see a very high percentage, greater than 70%, tend to refer to spousal poll. Meaning the spouse is encouraging the partner to make a phone call. And what that means is the wife is telling the husband, "You got that sleep apnea thing. You call the doctor right now and get an appointment for Inspire." So we really want to draw on that. We want to build the awareness of that and target where we run those ads. My last point, then we will -- we can stop here, is, we are focusing on our digital platform. We made 2 investments in the first quarter, about technology companies, one called EnsoData, the other called, Ognomy. And it's all about using technical tools to help patients through the process and result in an Inspire implant, thereby, growing the adoption. So we don't want to invest in diagnostic tools like a home sleep testing device, that's not what we're interested in. We're interested in the technology or the tech tools that can help the patients through the process. And Inspire Cloud is our cloud-based patient management system, everything will plug into that. From when they call the call center, that data goes to Inspire Cloud. When we help them with our insurance prior authorization, that data will be in there. When they receive their therapy and we go through the e-registrations, that data is in the cloud. And 5 years after they've been implanted, we do a postal follow-up, that data is going to be stored up in the cloud, too. So everything is going to be around the cloud and as we continue to grow the development of the technology. So I think we can probably stop right there and kind of see where you want to go with this?

If you start commercially, when we think the patients are going for first, presuming you've got a target market, you've got what's going on with Philips separately, but are you targeting patients who have tried CPAP and are thinking like, "This just isn't -- it's not working right. I don't want it." Or are you targeting newly diagnosed patients?

For the most with our ads, and you can see how they're targeting. And even the last commercial, she, as walking down the street, happened to have a CPAP mask, right, that she threw. We target those patients that have been diagnosed, have been given a CPAP device and are struggling with it. We know that there's probably 700,000 new patients like that every year in the United States. And so that's definitely the target market. Down the road, several, several years from now, we'll probably look to kind of focus more on original patients, if you will, of those that are just being diagnosed. But probably a 20%, 25% of the people that come to the website are naive. Naive meaning they've never been diagnosed with obstructive sleep apnea. They're not ready for Inspire. They need to go see a sleep physician and have a study and be diagnosed first. So we want to take care of those patients as well because we know they will circle back around, and they will be candidates for Inspire one day.

And is that -- do you think that's a sort of a benefit that you guys have in that? At the moment -- well, I suppose, for the last 5, 6 years, you really struggled to get patients diagnosed because you've got to do the sleep therapy -- sleep diagnostic. And that's becoming easier over time because we're going to virtual and digital, which presumably by the time you tap into that market means the market is much and much larger?

Absolutely. Absolutely. And with our outreach programs, we're increasing our awareness for us. I think we're still at like 42%, which is a decent number for where we've come. Nike is, what, 99.9%. So we have a long way to go. But people now know about Inspire. It's safe to say most, if not, all sleep physicians in the United States can intelligently talk about Inspire. And the ENTs know about Inspire. And we've just come so far in the education process. Now we need to build the confidence of those sleep physicians who will refer patients to the ENT.

And when you think of these patients, what's their pathway? So have they -- they are having CPAP? How often are they seeing their sleep physician? And how often they -- like, how extreme? And do we not appreciate how difficult this particular inflection is, I suppose?

I think that's an interesting point, in that, patients get initially diagnosed. Could be their private practice doctor, could be a sleep physician. They can do a home sleep test at home or they can go in lab to a polysomnography. There's multiple ways to get a diagnosis. And the standard of care today is everybody try CPAP. And if it doesn't work for you, you go back to your sleep physician. The sleep physician will say, "Let's try a different mask. Or there's other features that might make it more comfortable for you. Or we can help you become more comfortable with the therapy." But they will get to a certain point where the sleep physicians may lose those patients. That's why it lends itself so well for the direct-to-consumer. Because a lot of times, the patients that we see, they have been to the sleep physicians. They have tried CPAP. They have tried CPAP many times, many different apparatus or facial masks or different types of masks and they just are no longer in the health care system. And so the loss. So we're able to bring them back in to see a sleep physician, see an ENT, get a right diagnosis of what's that right therapy for them, and hopefully, they like the prospects of Inspire.

When the barrier come up to face when you try and convince physicians to move this direction. I know historically, we looked at the epilepsy space. There was actually a genuine confusion as to why the product worked. We knew it worked, but we just didn't know why.

Right.

How easy is to convince people about the mechanism of action here?

Well, the key is exactly that. It's the mechanism of action. When you do a vagal nerve stimulation and my cellphone has Medtronic app. I've done spinal cord stim, sacral nerve stim, deep brain stimulation, even a stomach stimulator. It's very difficult to expand mechanism of action. Sleep apnea is different. Sleep apnea is a physiologic obstruction of the upper airway. And to be able to overcome that, what CPAP does is continuous positive airway pressure. CPAP blows enough pressure to shunt the airway open, hold it open so the patient can inhale, and then BiPAP is bilevel, it lowers it when you exhale. We do the same thing, except using pressure, we have direct stimulation of the hypoglossal nerve that innervates the genioglossus muscle, which is a fancy term saying tongue. So by -- when a patient inhales, we sense that. And during the inspiratory cycle of respiration, we stimulate the hypoglossal nerve that can track the tongue muscle and it moves it forward, right? And we hold the airway open so the patient can inhale. And then when they start to excel, then we turn stimulation off. And the airway doesn't collapse on the exhale because you're blowing air out. We can show that on videos to patients, doctors, investors to show exactly what the mechanism of action is, and it's very easily understood. So you don't have that nerve blocking or all those other terminologies. People always ask us about deep brain stimulation. And how does that work? And the first word out of your mouth was, "Well you go into a big line of dissertation." Here, it's very easy to say. We're direct functional stimulation. We move the tongue forward when the patient inhales to prevent obstructive events.

Maybe one for Rick, in terms of financials, how does the commercial model here work? So -- and is there a potential to have upgrades and sort of long-term benefits from the data that you can also commercialize?

Thanks for having us, by the way. Our plan has not changed from the time we've gone public. Our plan is to just continue to build capacity, to address the significant interest we have in our product. We add capacity by adding centers and adding territory managers. We'd like to have 4 to 6 centers per territory manager. So over the last year, we increased our number of centers by about 55%. We're up to 733 centers. We've also increased the number of territory managers to 173, thereby having that ratio of about 4 or 5 centers per rep. And so we have a significant amount of interest from our DTC efforts. We have reimbursement that is in place. It's a profitable procedure for the facility and the surgery center. So our -- the fact that we no longer have regulatory reimbursement to address as we did several years ago, when we went public, we had 3 million covered lives. Now we have 260 million covered lives and 100% Medicare coverage. And so our focus is just to continue to focus on the commercialization. We have good reimbursement in place; our own code, that actually started in January of 2022; as well as a new code for the physician, and so that's really our focus. And we have an Advisor Care Program, a call center. We actually kicked that off in March of 2020. And now as we sit here today, we have 90% of our centers around that Advisor Care Program. And so that's really kind of a white glove to take those 4.7 million web visits we had in the first quarter and help them along in their process to get -- if they're potentially a good patient and get better qualified patients to see health care providers faster. And so our real focus is just to continue to expand our commercialization efforts. And we had a successful 2021. We increased revenue by 102% to $233 million, and then we provided updated guidance in our most recent call for 2022. And so we're very excited about the opportunity in 2022.

And when we think of the sort of the value of the patient to you. So it's a one-off procedure, and so you get that revenue. Is there anything you can do longer term to have a recurring component, given high valuable your devices to a patient for a very long period of time?

Right. So we do have a recurring model, but it's a 11-year recurring model. But we have the battery, which is -- you don't have to recharge it, which we think is a very significant benefit. And it's a simple press of a button on and off. And so we have the onetime sale, if you will, for the procedure. Our gross margins -- our guidance is between 85% and 86% for gross margins. And again, we started -- we got approval in 2014. So as we get closer to 2024 and beyond, we think we're going to have a significant replacement for -- when we have -- when those batteries are out in 11 years. And so we'll have recurring revenue starting in -- more sizable revenue in 2024 and 2025 and beyond because of that. But our market is so immense. As Tim mentioned, there are 700,000 patients. We think our market, on an annual basis, is about 500,000 eligible patients on an annual basis. Last year, we had about 9,000 procedures in that $233 million of revenue. And so we're very low in the penetration of the number of procedures as well as a number of centers.

And how should we think about the IP? Because obviously, this is a -- it's a market people really want to get into. And I certainly find some companies who have tried many, many times and failed. What is your IP position here? And what do you think the competitive landscape does over the next 5, 10 years?

Well, the original patents of Inspire were written probably back at about '91 and have seen expired. But at Medtronic, we rebuild that IP portfolio based on where we saw the technology moving over the first 10 years. That IP has -- was spun out when we created Inspire Medical Systems. Some of the earlier patents, there are also starting to expire. But where we focused our attention now is where we believe where the puck is going to be. And I got my Canadian friends, so I got to bring my hockey reference into it. So we know where the puck is going to be. And so where we want to look at this is really 2 basic elements. We have the whole digital aspect. We showed Inspire Cloud. And so the whole interface between the implanted device, the patient's remote control, which now has Bluetooth that communicates with the patient's smartphone, everything connects them to Inspire Cloud. And the physician will log into the cloud. And the physician will be able to do remote programming from the physician's office to the patient's home. And as we mentioned earlier, we'll be able to track patient outcomes 5 years after they've received therapy because we now have direct communication. And if we can have every center globally on Inspire Cloud and every patient globally on Inspire Cloud, now we can track the outcomes, right? And we can track that the patients in Germany are doing just as good in France, in the U.S., in Japan. And the first implants in Singapore are scheduled for tomorrow. And so all of these -- we can reduce the size of the world, which is great and track all those elements. If we're successful with that, and we can show a true value to the physicians, there is a SaaS model in there. There is a subscription fee that we could also start to develop as additional revenue stream. But we spend a lot of time focusing on our IP, on that whole area of digital management of the patients. The other side of it is the technology itself. And so we are in the -- right now, we have the fourth generation system on the market, and we are developing the fifth generation. The fifth generation takes that pressure sensing lead, that senses respiration, and we incorporate that inside the neurostimulator. And we're going to be using an accelerometer, which mounts on the circuit board inside the neurostimulator itself. So that sensing lead goes away. But we also are creating a microprocessor-based system with that device. So when we go to Inspire 6 or 7, it is now just firmware updates. It's not a hardware update. Inspire VI is one example which is going to have sleep detection. It will know when the patient falls asleep, and so it will activate itself. It will know when the patient wakes up, so the device will turn itself off. Now we don't need the remote anymore, right? We're just with -- we solved therapy compliance with patients because the patient they don't know anymore. It's inside them. It turns on when they sleep it, it turns itself off. The next step after that, when we get to Inspire VII, is actually conduct our own sleep study either externally or inside with the sensor that we have inside the can. And we will have a device that will use our own artificial intelligence and start to auto program itself. So during the night, if the patient rolls over from left side, right side to supine, and that's when you get the elbow because gravity drops your tongue back and you start snoring. The device will know that you've moved into a supine position. It's going to take more energy and the device will increase the energy while you're sleep and auto-adjust. So we really focused a lot of our patent work on technology advancement as well as all of our digital and really, of course, to all international IP platform.

It's slightly cheeky question, but 92% rate of people would do it again. What are the 8% saying?

Well, there's always the law of diminishing returns. There are patients that don't benefit as well to the therapy. And it could be that they have residual obstructive events. It could be that when they had their initial programming, they didn't have a positive experience, that it was -- the stimulation was a little high, so it felt sore during the morning or tired in the morning, and we can reprogram those patients. The key is you got to catch them early. And so if it is uncomfortable for the first several nights, they will quit therapy and stop using it. Now that they connect with the cloud with their smartphone, we'll send them notes on how is it going, how did it go, your first couple of nights? Are you acclimating properly? If not, let's get them in and get them reprogrammed. We can capture those patients right upfront. There's always some adverse events very, very rare, but we need to take care of that and continually improve the therapy. One example would be if the nerve is over-manipulated, it can cause inflammation. And it will feel like a little tongue numbness, if you will. And that's very temporary less, maybe 2 days on average. But every now and then, it might take a week or so for that to -- the inflammation to resolve down and patients didn't have such a great experience there. But we -- if we can get on top of the patients quickly, we can take care of them. We can solve those problems if we know about them early enough. And the key is not letting them go 30 days without seeing their doctor. And with the interconnectivity, we can keep daily contact with them now.

And DTC is obviously increasingly important in med devices as we go forward. Do you guys -- I mean if you think about customer acquisition costs, have you done much work on that? Have you got it down to a science as to what you need to do once you put out these advertisements? How do you narrow the funnel? How do convert patients?

Yes. We're still early in the rollout, the commercial rollout. Long term, we think we can be in about 1/3 of the hospitals and surgery centers in the U.S. So there's a total of 8,000. Our goal is to be in around 2,400 long term. We're in 733, so we have a long ways to go. And so we don't have any competition for the next several years, and we're investing in our growth, and we're going to do that for a long time for the foreseeable future. Again, our gross margins are between 85% and 86%. And we actually had -- looking back from the fourth quarter, we actually had positive EBITDA. And so we have gained quite a bit of leverage with our sales growth -- and we're going to -- we lost a little bit of leverage in the first quarter because we had 12% seasonality. That was seasonality as well as the impact of COVID, which we've had the last 2 years -- for the last 2 Januaries, if you will. But we did increase our guidance, and we'll have a return to a strengthening of leverage. And so it's our market to build. We put forth the guidance that we can achieve. And we're going to continue to add territory managers, as I said before, and centers. And so we want to support those centers by providing DTC. We have now -- in the next week or so, we'll be into our 50th state. We've been -- we're in all the states in the country. And so we're going to continue to make those investments because last year, in all of '21, we had 7.3 million web visits. We had 4.7 million in the first quarter alone. Part of that is attributed to national advertising campaign that we kicked off for the first time in January. And we are seeing some real good returns on that, and that's one of the additional highlights that are going to be helpful for us to continue to grow that top line.

This is a highly symptomatic disease, right? And it's clearly an area where when we see in other places, if you invest heavy in sales and marketing, you can get a great return in terms of volumes. You've got really, really strong gross margins. So how do you balance the investment versus trying to show that EBITDA positivity going forward because you're ain't there first? It's a great opportunity right now.

I'll start, and then maybe let Tim add. But we're really focused on revenue growth and we're driving that top line. We're not focused on EBITDA positive. We know it's very important, and it seemed to have been more important in the last 10 days than ever. But we're going to continue to invest in sustainable revenue growth for the long term. And then as we continue to grow with those margins, profitability will rise, obviously, and we're closer than we used to be. We have gained leverage, but we don't -- we want to grow. We want to be measured on our revenue growth in that top line versus optimizing our P&L because we're still so early in our commercialization phase.

I'll add to that. We did do -- we haven't done a price increase on our product in 4 years. And we did do a 5% price increase, that started to take effect now. And we'll fold in, in the United States through the rest of the year. We'll have it all in place by the end of the year. That should have a slight improvement in gross margins. I don't think it will have any impact on our growth because the patients are still coming through the system. And our biggest challenge is we just don't have enough capacity to serve the demand of the patients that we have. And so I think that we did have a pretty strong fourth quarter that kind of showed, as Rick mentioned, that we're on the cusp of profitability. But it's going to happen in due time. We're not going to change our story based on market dynamics. We know that this is a more recent phenomenon where you used to invest for growth. Now you got to invest profitability and a safety net. We don't burn a lot of cash. We have plenty of cash in the bank. We're going to continue to drive our top line. But with our gross margin and our ASP, it certainly gets us in a strong position in the near future.

Well, surgeons don't really have another option in this particular segment. The logical option is a CPAP or it's a device. So I suppose, in a way, why wouldn't you just push price? Because it's profitable regardless. It's more profitable than getting...

It's kind of a different group. So the surgeons themselves, they get reimbursed by doing the procedure and doing the work. And they get paid on RVU, it's relative value units and a dollar multiplier rate per RVU. So their payment is established. Now the good news is, we had a brand-new CPT code that just took effect January 1 of this year. Last year, they did a full RUC survey. RUC, I don't even know what that acronym stands for, for measuring the amount of work it takes to do a procedure. And so they have a very fair measurement of deal work. And they got a very fair reimbursement, and they know what they get paid from Medicare and the commercial payers. The hospital side or the site of service, hospital or ambulatory surgical center, they're the ones that get reimbursed from Medicare or from Aetna, United, Blue Cross/Blue Cross or the commercial payers. And the national average Medicare payment is now $30,000. With our 5% increase, that brings our price from $23,800 to like $24,900. It still leaves $5,000 for them to do a 90-minute outpatient procedure. Their capitated cost may be $3,000, $4,000. So even with Medicare, it's a profitable situation for a hospital. Commercial payers will pay 1.4x that. So it pays $40,000 whatever. It's a very profitable procedure for hospitals. So when it comes time to staffing challenges or what else have we heard during COVID, we get a high priority for scheduling cases. We get a high priority for OR type because it does contribute to the hospital financials. That's an important thing. As far as the surgeon goes, this is a therapy that works. And it's a therapy that's a very safe profile. And there are other options, there are something called the UPPP, uvulopalatopharyngoplasty, right? Did you write that down. And it's a very painful surgery. It's a -- it could be a 3-week to a month long recovery and exposes a lot mucosal tissue in the airway and it hurts. And they get poor feedback from those patients, and it has a 50% probability of working. So that's not a desirable surgery, the number of those procedures has continually gone down over the years. And Inspire will continue to increase because we have a very good safety profile. Obviously, what we showed there, a very good patient satisfaction score, and it works. And we can show the efficacy of it. And yet, we still have strong economics for the physicians. The sleep physicians that do the device programming, they have their own codes when they do the device programming. So there's a financial positive for the sleep physicians as well. So it really is a win-win and we just need to continue to grow the awareness in which they will just grow the adoption of the therapy.

Well, may be to sort of finish up because when we think about the positives in terms of driving the business, you've obviously got that strong reimbursement dynamic, which helps in terms of attacking a big volume opportunity. And I suppose -- I mean a sort of indirect competitor in quite a tough spot? The 2 ends like -- and think of that you need to navigate this year are going to be labor in your end market, can you get the people in to perform the procedure? And then the situation around chips and electronic components, so if you maybe tackle those and sort of reassure us as to why...?

So I'll start with staffing. So the only real staffing challenge that we have is if the surgeon themselves or the sleep physician themselves get COVID and then they're out of action for a short period of time. The good news is, we see a resurge in COVID happening now. We don't see it affecting hospitals, and we don't see it affecting procedures, at least this go around because this variant has not shown itself to have significant consequence as far as shutting down hospitals again. Now it's knock on wood on that, that it stays that way. The challenges we have is the staffing inside the ENT office. So when a patient calls our Advisor Care Program or the call center, we deem this to be a good patient. And then together, we call the center to make an appointment for this patient and nobody answers the phone. Because the ENT offices, they don't have staff sitting there waiting for an Inspire to call and make an appointment. And it goes to voice mail, right? Press 4, press 5, you can imagine how -- it's a buzz kill for these patients, right? And so we need to fix that. So what we've done to overcome that staffing challenge is we've gone to more of an e-mail system to get them their appointment and not rely on a live person picking up the phone at an office. They just don't have the staff to be able to do that. In the operating room, we're able to pull priority from what we just talked about with economics and the strong therapy and the very consistent OR time they can book, just 90 minutes for the procedure. There's a pretty consistent time for it, so they don't have to book long periods of time. And so we're able to overcome any staffing issues that we have in the operating room just by priority, but we're also opening up ambulatory surgical centers to add capacity. So that's where we solve that problem. Switch gears in 15 seconds to talk about the supply chain. The good news from our standpoint is, we only do one thing. We have a neurostimulator for sleep apnea. The real challenge we have with chips is in the patient remote, and we hold at least 1/4 of safety stock in finished goods. But we have several quarters in WIP, work in process. And so when we're buying our components right now, we're buying out probably 3, 4 quarters. We have the same problem with other people. I think the talk of the town right now is a Schottky diode that goes in the remote control, who no even knows what engineers we have and what a Schottky diode is. But the current one is just unavailable. There's 7 different variants. So we're able to find a replacement part. And we have plenty of time, so it has no risks on product supply. A couple of weeks ago, the buzzword was operational amplifiers, Op-amp. We had one part that was hard to get, and we did find a provider of it. That provider, instead of charging us to normal $4, wanted to charge us $100 right? I said, "Well, that's we're going to protect our supply. We're going to pay it, and you're going to answer to that at a higher level." We'll start doing gouging like that. But we're able to overcome it, and so we don't have any risks on product supply, and we have line of sight for at least a year.

Great. Well, thank you very much, both, and thank you for joining us.

Thank you.

Thank you very much. Appreciate it. Good.