Lantheus Holdings, Inc. (LNTH) Earnings Call Transcript & Summary

I'm John Sourbeer, UBS' Life Sciences, Diagnostic Tools and Pharma Services analysts. We're -- our next presentation here, we have Lantheus. We're going to do a little bit of a presentation and then some Q&A. Starting off, we have President and CEO, Mary Anne Heino. And then we have Robert Marshall, CEO and Treasurer. Mary Anne, would you like to get started?

Yes. Yes. Good morning, everyone, and thank you for attending. We look forward to talking with you this morning about Lantheus. I'll take a little while to talk to you about our products and what we're trying to achieve with them. And then Bob will bring you up to date on our most recent financials and a look at our strategic goals for the company. So Mark, if you move forward, as always, I have to offer you our safe harbor statement for any statements we might make today that may be inferred as your right or your privilege to invest in our stock, which we hope you will. This statement is also available on our website, and we invite you to read it. Next slide, Mark. If we take a look at Lantheus, this is a company that has been truly around in its space for a very long time, over 65 years present in the nuclear radiopharmaceutical and 65 years of continuous innovation. At Lantheus, we hold many first in our space, including nearly 50 years of offering technetium-based generators into the radiopharmaceutical space with our product TechneLite. We are the first commercially available technetium generator in the U.S. medical space. We also -- we were the first to offer and still hold the record for the most used Cardiolite product, which is the most used heart imaging radiopharmaceutical product. We also offered DEFINITY, which is the #1 ultrasound-enhancing agent worldwide used in echocardiography. And most recently, we launched into the prostate cancer community, our first and best-in-class PSMA PET imaging agent, which is named PYLARIFY. Today, I'll focus a lot of my comments on our leading products, but we'll also take a look at what's in our pipeline and what we're trying to achieve across our pipeline in the spaces that we're interested in. Mark, if you move forward. We are a growth company with a diversified portfolio. Currently, we divide our products across 3 categories, and I'll explain now what they are. Our first category is what we call precision diagnostics, and you can see the products that are included in that category. This category right now is led by our product DEFINITY and its other formulation, DEFINITY RT. And we also include in this category our spec portfolio of products that are offered out to the nuclear community. I'll offer some comments in a few minutes about DEFINITY and what we achieved there. Our second category is radiopharmaceutical oncology. And here, this category includes our PET imaging agents and our PET therapeutic products, PYLARIFY and PYLARIFY AI, which, as I mentioned, we've recently launched; also, our product, AZEDRA, which is the first and only approved therapeutic for 2 rare cancers that are called PPDL, pheochromocytoma and paraganglioma and also our product candidates in our pipeline which are 1095 and LMI 1195. Our third category we call strategic partnerships and others, and I'll speak to this later when I talk about our pharma services business. But this is a category that we have recently spent a lot of energy and time building out, which we think is very important to our future. And here, we are very interested not only in biomarkers but also in artificial intelligence and other aids to therapy, in choosing therapy for patients and then in confirming what therapies are right for patients that really bring value, we believe, into life sciences. And I'll show you a lot of the work that we've done there recently. So first, I'll talk about some of our highlighted products, and I'll start with DEFINITY. DEFINITY has been in the market for over 22 years. And in fact, in mid-June of this year, it will celebrate its 22nd birthday. At this time of year, when we're all attending a lot of graduations, we'd like to say that DEFINITY would be graduating summa cum laude in diagnostic certainty. This is a product that has been a go-to for the echocardiography community for the entire time it's been in its market. It is the #1 product of choice, not only in the U.S., but worldwide. This is a product that's used in conjunction with echocardiography. Now echocardiography is, in its class, the second most used cardiac exam in the United States medical market. The only other cardiac exam that's done more frequently is EKG. So 27 million to 32 million times a year, echocardiography is used to assess patients for their cardiac status. Thankfully, a lot of times, that comes back as a positive finding of health. But many times, you're also looking at a patient to determine what in fact is abnormal about the patient's heart and it's with the use of echocardiography and the addition of contrast or an ultrasound-enhancing agent that you really get a strong look at the patient's heart, especially the left ventricular wall. And you can see here, if you look at the picture on the side of this slide, what the difference is between an unenhanced echocardiography exam and enhanced exam. You see the incredible clarity. We say it's like putting a flashlight behind the heart that you have when you add an agent to that exam, and you really get very good clarity around the left ventricular wall and what kind of motion it has with each heartbeat. That's what DEFINITY offers to clinicians as they're studying the heart. And if we move forward, I'll show you the importance that brings to this disease. Cardiac disease, as we know, is one of the disease of high prevalence incidence and prevalence. And in fact, as you can see, every 40 seconds, there's a cardiac event in the United States. That leads to a very high prevalence, 18 million adults who suffer with cardiac disease and a very high death rate, unfortunately, every year. It's a disease we continue to invest in for better care, both preventative and identifying, but also in response. And that's where DEFINITY is used in conjunction with echocardiography. Of the approximately 32 million ultrasound exams at the heart that are done annually, about 20% to 30% of them are considered to be suboptimal in that when you see the images of the heart, they're not clear enough to make a strong diagnostic read as to what the patient's condition is. And those are the exams that are then amenable for the addition of an agent, and that's where DEFINITY is used. So if you go to the next slide, Mark, this is the market that DEFINITY competes in. So again, of those up to 32 million echoes, you have the ability for use of ultrasound-enhancing agent and up to 30% of them, which equates to of our 5 million to 10 million. And that's where DEFINITY has been used successfully across its across its life cycle. So it's a market valued at up to about $600 million. We continue to build the market through medical education. We have the largest fully dedicated echocardiography ultrasound sales force, which, again, we've had for the entire time we've been in the market, and we continue to support that market with medical education and with our other efforts. If we move forward, I'll now turn my comments to PYLARIFY. And this is, for us, been an incredibly exciting launch and an incredibly exciting partnership, I would say, with the prostate cancer community. PYLARIFY was accepted for priority review with the FDA and was approved at the end of almost exactly at this time last year. So we're about 1 year into our launch. And you can see the indications that we were approved for. These are both very broad indications that essentially cover a gentleman's journey with prostate cancer. From initial diagnosis, when a physician is trying to determine what their first intervention will be with that gentleman, over to the somewhat ender later course of this patient's experience when unfortunately they've been found to have their disease recurring after having had initial treatment. And if you move forward, Mark, I'll show you how many men this affects. Over 3 million men in the U.S. alone are living with prostate cancer today. And every year, up to 270,000 men are newly diagnosed. And unfortunately, 35,000 of them will perish from their disease on an annual basis. The availability of PYLARIFY as a PSMA agent is recognized truly as an innovation in the diagnosis and treatment of this disease because PSMA is solely and specifically expressed on the cell surfaces of prostate cancer cells. And so to be able to specifically recognize within a prostate cancer patient exactly where that disease is really gives extreme certainty and very -- and high specificity to how you want to treat that patient. And if we move forward, I'll show you what that means. This is a market with tremendous opportunity because of the specificity and innovation that PSMA represents for treating clinicians. There are up to 250,000 scans done of men. And this may be more than one scan in a single patient that are represented annually possibly in this market with a market value of over $1 billion annually. And that's because you can use these scans to not only initially diagnose exactly where the cancer is. You can tell if the cancer is still contained within only the prostate gland or whether unfortunately, it has already escaped the prostate gland and is still only local or has spread to other parts of the body. You can also use these scans to determine after initial treatment whether, in fact, cancer still exist in other parts of the body and will require additional treatment. You can use these scans to determine if you're going to approach therapy, whether the patient will be amenable to therapy if they're -- they say PSMA-avid, therefore, will they be responsive to a PSMA-based therapy. And once you start therapy, you can use the scan to see if they're responding to that therapy by showing a reduction in PSMA-based activity in their body. So there's multiple ways to use scanning of these patients, either for initiation of therapy, determination of treatment or response to therapy. And that is what's addressed as the market potential here for a product like PYLARIFY. We see very significant and differentiated advantages for PYLARIFY, and I think they're worth reviewing. Until the availability of PYLARIFY, there was no PSMA-based PET imaging modality available. Conventional imaging was what was available for men with prostate cancer, and it simply lacked the specificity that PSMA offers in specific determination of PSMA disease in prostate cancer men. PSMA, as I said, is specifically expressed on the cellular surface of prostate cancer cells, and that level of specificity is what makes it such an innovation in the diagnosis and treatment determination for prostate cancer patients. The conjugate isotope that's used with PYLARIFY is F 18. And this isotope offers several advantages versus the other isotopes that are used in some other preparations. When you're dealing with nuclear isotopes, there's some very clear, I would say, qualifications that you're looking for. You want a tight -- gosh, that's going to be terrible. You want a tight distribution of the -- of your isotope as it decays because the shorter and tighter decay that you have, the clearer an image you will have and F 18 has a shorter half-life and therefore, a shorter distribution or decay of its isotope, decay as it happens versus some of the other preparations that are out there. You also want a longer half-life, because half-life is -- allows you, from a distribution perspective, to be able to send your product further from a logistics perspective. And F 18, as compared to the other isotopes that are used currently in PSMA products, has a half-life that's twice as long as the other isotopes that are available in PSMA products. And finally, we are the only product that has also approved an AI offering, a software-based offering that can be used to augment read of the scan. It's called PYLARIFY AI. It was approved in the fourth quarter of last year, and it is uniquely dedicated for use with PYLARIFY. And again, can be used by the clinician who's reading the scan to augment their read and quantify their read so that as they follow a patient over time, they've got a baseline of quantified read of their patients that they can then compare over time. to literally quantify disease, either moving up or moving down, in response to treatment so that they have a strong read on that patient that they can follow over time. We think these are unique advantages that PYLARIFY offers in its product offering out to the market. Finally, I'll talk to some of the other work that we've done in our launch with PYLARIFY, which we think really speaks to the success that we've had in our launch just 1 year out. We worked very hard as we brought this product to market to make sure that it would be available for both patients to use and patients to be -- physicians to use and patients to be reimbursed for. And in fact, just 1 year out for a product that was brand new in class, we've already secured 90% coverage of access for patients for PYLARIFY in both its indications. And that truly is, for a new product in a new class, we think, almost record breaking. From a coding perspective, we've worked hard to make sure that there was Medicare coding. So we have both HCPCS coding, and we have what's called pass-through coverage, which is a unique level of reimbursement that's offered for PET-based radiopharmaceuticals by Medicare. And we had that in place as fast as it could be possibly allowed by Medicare and it was in place by January 1 of this year. And finally, and I think this is really testament to what an innovation PYLARIFY represents in its market. But the major societies both moved to add PYLARIFY and the other PSMA-based agents to their guidelines very quickly. And in fact, NCCN and SNMMI both very quickly added PYLARIFY and the PSMA agents to their guidelines, recommending that PSMA-based agents be the modality of choice used when imaging prostate cancer patients to determine what their treatment should be and then how to follow those patients across their disease. As I mentioned, we launched PYLARIFY AI, which is our proprietary AI-based platform, which allows for quantification measurement of disease. It was approved again in priority review by the other division of the FDA. In fourth quarter, we launched it last November, and that is also available and we're rolling that out. It's already been adopted by major academic centers. And we see that it's also becoming the standard of care in assessment of PYLARIFY and of PSMA-based scans in the market. I'm going to move on now and offer some comments on our product, AZEDRA. As I mentioned, AZEDRA is the only therapeutic product approved for treatment of 2 rare cancers, which are pheochromocytoma and paraganglioma. This is a product that's very important to us, even though it serves small markets. As I've mentioned in comments before publicly, this is a product in a patient population that was probably most impacted by the pandemic because the nature of these cancers is that they are indolent. They are long and slow growing. And so these patients also, because of their immune status and their risk, are the patients most likely to reserve treatment during the pandemic and not enter hospital-based systems. So we did see very much a slowdown in treatment during the height of the pandemic. It's also a highly labor-intensive treatment as these patients need to be admitted and they require significant nurse-based care while they're hospitalized. So again, with nursing shortage and I would say, diversion of care to the very sick COVID populations, we did see choice not to treat these patients during the height of the pandemic. Mark, if you move forward. As we're coming out of the pandemic and as we've worked during the pandemic to ensure that all of the treatment centers that do offer AZEDRA were still available and still kind of in place to offer it. And as we stay in touch with the medical societies that know these patients and do seek their treatment, we're confident that patient treatment will return to normal levels, and our supply chain is intact. This is an iodine-based product, and as folks might be aware, there are some parts of the world dealing with iodine shortages. That's not true of AZEDRA. Our Supply chain is out of Europe and is intact, and we are ready to start treating patients again when these patients are available. This is, as I mentioned, some further information about this disease. Again, it's a small population, about 1,200 patients a year. in the United States market. They are kind of identified and treated through a very small network of centers of excellence who are all very familiar to us and to our medical affairs team. And again, as we come out of the pandemic, we're confident that, that patient flow will initiate again and be there to be treated. If we continue to move forward, I'd like to talk about pharma services, which is the other vertical that we built as part of our business and talk about what that means to us and what we're doing with it. This is an area that we see from a life sciences perspective, almost, I'll say, something that will grow as a mandate in life sciences. And that is the mandate that for clinical development, that you have the ability to determine and to demonstrate that anything that you're developing clinically, you can prove what patient population it should be used in and that those patients respond to it. And some of the areas that we see that are most, I'd say, in need of that demonstration are demonstrated here. And I'll point to the middle of this slide into immuno-oncology. Here, our product NM-01, is a PD-L1-based product, and this will be used in demonstration of checkpoint inhibitors. Checkpoint inhibitors are an incredible class of drug that are one of the most widely studied drugs now in oncology because of the potential they have for treating very serious oncologic diseases. However, they come with a very significant adverse event profile. And unfortunately, right now, they only demonstrate about 30% efficacy in the patient population they're used in. And that's because they still have not had a high, I would say, success in identifying the exact patient profiles where they're most likely to have efficacy. If you can assign a biomarker such as NM-01 to first screen about which patients have the highest likelihood to respond to therapy, you change that risk-benefit ratio for the patient. So you can think about it also from a health care perspective about higher success rate on use of health care dollars because they're also very, very expensive treatments. But first and foremost, from a do-no-harm perspective, you have that better kind of, say, equation of bringing to a patient a very, very efficacious treatment where the side effect profile matches the value that a patient will undergo, and that is our benefit here. Our strategy in building out this sector is to work in partnership with pharma and other companies to be their partner of choice in handling these products because these products are all typically isotope based. So this is the expertise that Lantheus has, that we've always had in not only [ knowing ] how to develop these products, but how to formulate them, how to conjugate them, how to deliver them so that they are available and can be used in clinical development in these large clinical trials. In exchange, we get the clinical data for development of ourselves for these product candidates. So they're used in clinical development. We have a revenue stream that comes in. I am not -- and Bob will keep me very honest here. We're not posing this as a significant revenue contributor to our company. We've got lots of other great products that are doing that for us. But what it is, is it's a continuous product development, a clinical pipeline for us that lets us develop these products for commercial application while getting this rich source of data in from their use in other clinical development pipelines for our partners. We've done this already. We're doing this in the immuno-oncology space. We're doing this in the FAP space, fibroblast activation protein is another very exciting area that's being used, and we have a product candidate there. And our own product, which we call -- when it's not being used commercially, we revert back to its chemical name, which is piflufolastat F 18, which is PYLARIFY by its chemical name is also already involved in most of the major clinical trials that are being done to study prostate cancer that are underway in the United States as well as abroad. So this is an area that's very exciting for us. You can see down at the bottom of the slide, who some of our current partners are. It's our intent to be the partner of choice in clinical development where radiopharmaceuticals are being used for the study of product therapeutic candidates and other candidates in life sciences. Mark, if you move forward? I'll show you now a look at our pipeline. And when you see our pipeline, it echoes some of the comments I just made about how we're partnering and how we're organically or inorganically trying to ensure that we have a diverse and robust pipeline moving forward to continually bring candidates into the company. As you see up top, this is our group of radiopharmaceutical diagnostics that are currently under development. And as you can see, if you look to the right hand -- my right-hand side, you're probably left-hand side, you can see where those are partnered or where they're being organically developed. In the middle of the slide are our radiotherapeutic candidates. And there, we have our own 1095 candidate, which is currently in Phase II. And recently, I think it was probably third quarter last year, we announced that we passed interim analysis with that candidate. And on the bottom of the slide, you see the several microbubble partnerships we have. Here, and I didn't mention it when I was talking about DEFINITY, microbubbles are coming into an incredible renaissance for utility in life sciences. And that's because microbubble has incredible utility in being used as a transport vehicle to transport, anywhere in the body, molecules or other preparations that might be destroyed if they were introduced into the body in other means such as infusion or orally. You can use a microbubble to trap something and put it into the body anywhere you'd like. And then you can use the properties of ultrasound to burst that bubble wherever it is in the body so you can directly administer drugs or other materials. And that's what these partnerships are all about. You can use a microbubble to cross the blood-brain barrier or you can use a microbubble to introduce something directly into bone. And that is the way that it's being appreciated now in life sciences to get either large molecules or I'll say delicate preparations to parts of the body, which were not amenable by other kind of parenteral or oral pathways prior. And that's really what you see happening here in our pipeline. If we move forward, I'm going to turn over and then Bob talk to financials.

See if I can do this without falling off the stage.

You mean out of there?

Yes, I'm over here. All right, Mark. All right. So these are some slides that we actually offered last week at our Investor Day, so I'll just speak briefly to some of the key highlights. So one of the key things to highlight, the fact is that we, as a company, are in a very strong balance sheet position. We have been able to sustain free cash flow generation over the last numbers of years irrespective of the fact that we've all been dealing with the effects of COVID-19, but also in 2020, absorbing the Progenics acquisition, yet still maintaining a positive free cash flow. Last week, I offered the fact that while we hadn't talked about free cash flow for 2022, that I would expect that number to exceed $175 million this year and then be sustainable and grow from there on a go-forward basis over the next number of years, and we'll see that here in a couple of slides. We had $105 million of cash on hand at March 31. We have an undrawn revolver with access to $200 million. And from a net debt leverage perspective, we are at 0.7x. So we're very -- in a very good spot. Our free cash flow numbers don't yet reflect the impact of the PYLARIFY sales ramp based on the specifics that we have around DSO. I would expect those numbers to start to ramp meaningfully here as we go through the balance of 2022. So this was the guidance, so the free cash flow number wasn't a number that we had provided prior. So for Q2, here, we are still here talking about a $200 million to $215 million, revenue number was $0.67 to $0.73. And recall, we did, I think, about $0.97 in the first quarter, but that included about $0.25 related to the Novartis agreement that we had signed in Q1. So that then would sort of normalize it back here for this. This implies a PYLARIFY number right around $100 million to $115 million for Q2, up from what had been about $93 million in Q1. For the full year, we did go up from our original range of $685 million to $710 million to $800 million to $835 million. Again, that does include the $24 million number for the Novartis agreement that was embedded in the Q1 numbers. And then, of course, now moving our earnings to $2.90 to $3.15. So for the full year range, we then move from what had been a $300 million to $325 million range for PYLARIFY to $385 million to $420 million. Mark? So again, this last week at our Investor Day, we had talked about some new long-term financial targets. Both the gross margin and EBITDA margin are both adjusted or non-GAAP numbers that we're targeting. We do believe that we can sustain revenue growth that supports these financials. From a gross margin perspective, I had been talking over the last number of years about how we could deliver 800 basis points of gross margin improvement from what had been our 2019 baseline, which is about 52%. And that was going to be driven by both DEFINITY and PYLARIFY growth, both of those products providing an above company average, particularly as we drive scale. Those mechanisms on top of the fact that we have a new on-campus manufacturing facility. And I think AZEDRA, at scale, can also be accretive to gross margin. All of those things still remain true, particularly as we continue to accelerate PYLARIFY over this time horizon. And I guess I should mention the fact that this is a view from sort of through 2025 that we should be able to build off of the 1,000 basis point improvement that we documented in Q1 off the -- so we did 1,000 basis points from Q1 2022. I think there's more room to grow, particularly as we go forward. We've not talked about EBITDA margin, but this is about driving a levered P&L. This number is basically double where we've been over the last couple of years. And that will come from obviously expanding the gross margin, but also leveraging our operating base from an expense perspective. And the combination of those things can drive and this is a 2022 to 2025 cumulative number of $900 million plus. And I do believe that, that number is very achievable. I talked about the $175 million in 2022. Those numbers will continue to ramp as we go through the balance of this planning horizon. And I do think that the opportunity to hit that number or more is very feasible. Mark? Mary Anne?

So I think just in summary, and this was what we kind of offered as our Q1 takeaways. We are very, very focused still on our launch of PYLARIFY. This is something that, again, from an executional perspective, we like to define it as this is where innovation meets commercial excellence, operational excellence in execution. It's something we're thrilled about in the marketplace that we kind of have the right and privilege to bring in the marketplace where we're still very, very much focused on it. DEFINITY, throughout the pandemic, we have seen different types of impacts on it. More recently, I think we'd say it had to do with nursing staff in hospitals, but we see recovery coming along, and we're thrilled certainly in Q1 with the earnings and the revenue that we reported, and we see a very, very healthy, strong 2022. As an operational team and an executive team, I think we are characterized by our -- kind of our focus on performance and our focus on execution, and we continue to stay that way throughout 2022.

Thank you. Mary Anne and Bob. That was a pretty detailed presentation there. Just in the last few minutes, just a couple of questions. I guess just touching on PYLARIFY. The company has talked about having 34% penetration around 1 year from launch. Can you just talk about some of the key success factors that you've seen there around the launch?

Sure. And just to note, that's an annualized penetration rate based on quarterly penetration. And again, I really think that, that reflects the medical community's intent with PSMA-based agents and the innovation that it represents. And it also absolutely is then tied to how hard we work to make sure that we could make that product accessible, because you can't -- innovation means nothing if it's not really available to physicians and therefore, to patients. And that is something where I will say hats off to, and I can say because it wasn't me, it was the team. But that is just hard grinding work to make sure that from a logistics perspective, you can get the product there and then to make sure that the product will be reimbursed. That insurers know about it, that access knows about it. PET-based imaging is essentially 100% prior off in the United States insurance market, which means that somewhere, a staff member must call an insurance company first to say and make the claim as to why a patient requires a PET-based image versus just, I'll say, a simple x-ray, but it's really conventional imaging. And so this is not kind of an easy process. It takes work to make the case as to why PET-based imaging should be widely available. And the work that we did also with the medical societies who are ready, because of the innovation, to make sure that all of the guidelines are updated, which is then the work you use with insurance companies to say, patients -- this should be available for patients hand-in-glove across. I'll also note, we did this on an accelerated time line because we had priority review. So the product was approved 4 months earlier than what the standard time line is for FDA review. And we were hyper-focused and hyper-determined that we would get this product to market for patients and it worked.

And building on that, the company had mentioned that 90% of covered lives have access to PYLARIFY 1 year after launch. It's pretty impressive. Can you just talk about the path to get there and to reach that level of covered lives quickly?

Again, it was incredibly coordinated. We looked at the United States as a map and we were focused geographically on major insurers, major population areas, where the manufacturing sites were. One thing I didn't mention that is true, again, this is true about PET-based products. They are manufactured at local sites called PET manufacturing facilities. We are not the end manufacturer of this product. It's literally -- we transfer the API to a site that's called a PET manufacturing facility. Every one of them must be individually approved by the FDA as a manufacturing site. We had 2 of them in our NDA. And as of today, we have 23 of them. Every single one of them is a partner to us that had to be individually approved by the FDA. That is coordination. And so you have, geographically, we rolled this product out geographically to ensure where were the PMFs that were approved. How do that match the local insurers, how do that match to local physicians who are aware of the product and all of that had to come together, and it continues to. We are not done.

And Mary Anne, maybe just one on DEFINITY. Can you just talk about the outlook for this product and where you see this going in the future?

So as I mentioned, 22-year-old product, still growing. And defy folks to find many other products and life cycles that continue to grow. We say 22 is the new 5 for DEFINITY. But that also speaks to echocardiography as a modality. You have an easy-to-administer, a very mildly invasive -- it's noninvasive at all if you're just doing echocardiography. Contrast is mildly invasive because you just start a butterfly IV and administer the contrast, but richly yielding in cardiac data about the patient. So it's very much appreciated, and it's still growing as modality. It's fairly -- relatively comparative to other modalities, relatively inexpensive, especially comparatively to CT and other types of exams. And so the modality continues to grow, and it's getting more mobile. It's getting literally handheld and mobile. You can now, like, carry the equipment in ambulances. You can do it at the bedside, which is what we found out during the pandemic. You could take this modality to the bedside. You don't have to transport a patient to the basement of a hospital. And so we continue to invest.

And just in the last few minutes here, Bob, any, just, updates or thoughts on capital deployment strategy for the second half of the year into next year? And then just what kind of opportunities are you looking at?

So for capital deployment, I mean so you can look at that in different ways. So from a CapEx perspective, I think we're going to continue to be very disciplined in the way we deploy capital around our traditional PP&E or infrastructure. We are embarking on an information technology sort of advancement project at the moment, which I would expect to be in this year and then into the next years. Other than that, you can see we have a very strong balance sheet, and we have the opportunity to deploy capital in a meaningful way. As we think about ways to continue to diversify our product portfolio, and we will be very thoughtful about how we approach that.

Thanks. Well, I think with that, we're just about out of time. Mary Anne and Bob, thank you very much for participating today. And thank you, everyone in the audience, for listening.

Thank you, everyone.