Good day everyone, and welcome to today's ANI Pharmaceuticals Q1 2023 Earnings Call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question and answer period. You may register to ask a question at any time by pressing star then one on your touch-tone phone. Please note this call will be recorded and I will be standing by should you need any assistance. It is now my pleasure to turn today's call over to Judy DiClemente. Please go ahead. Thank you, Ashley. Welcome to ANI Pharmaceuticals Q1 2023 Earnings Results Call. This is Judy DiClemente of In-Site Communications, investor relations for ANI. With me on today's call are Nikhil Lalwani, President and Chief Executive Officer, and Stephen Carey, Chief Financial Officer of ANI. You can also access the webcast of this call through the investor section of the ANI website at www.anipharmaceuticals.com. Before we get started, I would like to remind everyone that any statements made on today's conference call that express a belief, expectation, projection, forecast, anticipation, or intent regarding future events and the company's future performance may be considered forward-looking statements as defined by the Private Securities Litigation Reform Act. These forward-looking statements are based on information available to ANI Pharmaceuticals management as of today and involve risks and uncertainties, including those noted in our press release issued this morning and our filings with the SEC. Such forward-looking statements are not guarantees of future performance. Actual results may differ materially from those projected in the forward-looking statements. ANI specifically disclaims any intent or obligation to update these forward-looking statements except as required by law. The archived webcast will be available for 30 days on our website, anipharmaceuticals.com. For the benefit of those who may be listening to the replay or archived webcast, this call was held and recorded on May 8, 2023. Since then, ANI may have made announcements related to the topics discussed, so please reference the company's most recent press releases and SEC filings. With that, I'll turn the call over to Nikhil Lalwani. Nikhil? Thank you, Judy. Good morning, everyone, and thank you for joining our call. ANI remains focused on two strategic imperatives designed to help us serve patients in need and drive profitable and competitive growth. Firstly, the scale-up of our rare disease business with the successful launch of our lead rare disease asset, purified Cortrophin Gel, and the potential to add assets that leverage the rare disease infrastructure we have built. This business will be the largest driver of ANI's growth. The second imperative is driving generics business growth through superior new product launch execution, cost excellence, and supply re-reliability. These efforts, coupled with our... These efforts, coupled with our enhanced operational excellence, have enabled ANI to compete and win across our core business segments and to generate record quarterly net revenues of $106.8 million for the quarter and record quarterly Adjusted non-GAAP EBITDA of $33 million. Our outstanding operational performance demonstrates the strength we've built in our core business segments. I congratulate the team for their hard work in achieving these outstanding results announced this morning. On the rare disease front, we've continued to invest in the launch of our foundational rare disease asset, purified Cortrophin Gel. We've strengthened the team and improved how we're servicing patients, physicians, and payers, which has accelerated our launch momentum and increased access to ACTH therapy for patients in need. As noted on last quarter's earnings call, for competitive sensitivity reasons, we will no longer be providing more detailed metrics on Cortrophin. We are pleased to report that the acceleration of our launch momentum is evidenced by the record quarterly number of new cases initiated in Q1 2023 and record monthly new patient starts and cases initiated in April of 2023. We are also seeing continued growth in the number of new unique prescribers and repeat prescribers. Many prescribers who had previously slowed or discontinued use of the ACTH class have restarted their use of ACTH therapy after the launch of purified Cortrophin Gel. Our promotional efforts are focused on rheumatology, neurology, nephrology, and pulmonology. We have ramped up peer-to-peer education programs across our three target specialties of rheumatology, neurology, and nephrology to further increase awareness of Cortrophin Gel. In addition, we have completed recruitment of and onboarded a modest and dedicated pulmonology sales team. Central to our Cortrophin Gel launch has been our efforts to increase market access for the ACTH class for appropriate patients in need. A critical relevant trend to highlight for the Cortrophin Gel launch is the growth in the overall ACTH category. Prior to the launch, the ACTH category had continued to decline, and according to IQVIA, had not shown year-over-year unit growth since 2019. ANI launched Cortrophin Gel in January of 2022. From June of 2022 to March of 2023, for 10 consecutive months, the ACTH category has showed year-over-year unit growth according to IQVIA. In fact, in the first three months of 2023, the year-on-year category unit growth has been in the double digits. Q1 net revenues of Cortrophin Gel were $16.3 million, which was in line with our expectations and bolsters our confidence in our full year Cortrophin Gel revenue guidance of $80- 90 million. We are pleased with the progress of this launch and look forward to enhancing the scale and scope of our rare disease business. We continue to actively explore adding other assets that can leverage our rare disease infrastructure. Next, I will turn to the generic established brands and other revenue segments, which increased to $90.5 million, an increase of 43% over the prior year. These results showcase our ability to use our U.S. manufacturing footprint and agile operations to deliver timely solutions to our customers. During the past two years, we have enhanced ANI's operational excellence by combining long-standing strength in manufacturing and our strong GMP track record with best-in-class research and development capabilities, all with a patient-first orientation. This has enabled us to capture market demand arising from the numerous supply disruptions impacting patient access to much needed medicines. We have increased our R&D investment with focus on niche opportunities. We continue to file multiple new ANDAs in Q1 of 2023 and retained our top ten ranking in the number of ANDA approvals. We have also retained our number two ranking in competitive generic therapy approvals in 2023. Our efforts to drive cost excellence have included the consolidation of our manufacturing network with the rationalization of manufacturing operations in Oakville, which is now completed. Discussions with potential buyers for the Oakville site are ongoing. In addition, we have augmented our analytical and development facility in Chennai, India, with over 60 skilled colleagues. Equally important are our efforts to ensure reliability of supply. We have a strong compliance and audit track record enhanced further by recent successful FDA audits across all three sites. Our New Jersey site was inspected in March of 2023 and had zero 483s and an NAI status. Last but not the least, we continue to maintain healthy inventory levels for finished goods and raw materials, allowing us to capture any opportunities arising from market disruptions. These achievements demonstrate ANI's ability to deliver sustainable, competitive, and profitable growth while keeping the patient at the center of everything we do. The overall trajectory of our business boosts our confidence in the 2023 outlook. We are therefore raising full year revenue guidance to $385- 410 million and Adjusted non-GAAP EBITDA guidance to between $97 and 107 million, and Adjusted non-GAAP EPS guidance to $2.99-3.45. Steve will now walk through our detailed Q1 financial results and discuss the revised guidance for the year in more detail. Steve? Thank you, Nikhil. Good morning to everyone on the call. As Nikhil indicated, we posted very strong results in Q1 of 2023, capitalizing on the groundwork we have laid over the past two years to build sustainable growth platforms and strengthen the capabilities of ANI. We saw growth across our core businesses, generating record Q1 revenues of $106.8 million, marking the first time in ANI's history that our quarterly revenue has surpassed $100 million. This represents $42.3 million or 66% growth over the $64.5 million reported in Q1 of 2022, and is up 13% sequentially from the $94.2 million of revenues reported in our previous record Q4 of 2022. It is important to note that this is first quarterly reporting period where results are on a consistent basis with our two growth catalysts. The acquisition of Novitium, which closed in November 2021, and the launch of purified Cortrophin Gel, which occurred in Q1 of 2022. As such, Q1 of 2023 performance is reflective of organic growth at the company. Revenues from Cortrophin reported in our rare disease segment were $16.3 million in the quarter, up 15 million from prior year. We are pleased with this result, and it is in line with our expectations. Further, we believe this level of Q1 performance creates a strong foundation for achievement of our full year 2023 Cortrophin revenue goals. Revenues of our generics, established brands, and other segment rose $27.3 to 90.5 million, an increase of 43% over the prior year, and $13.8 million or 18% as compared to the Q4 of 2022. These increases were driven by a $14.6 million gain in our generic pharmaceutical products, an increase of nearly 30% year-over-year, and a $12.7 million gain in our established brands, royalties, and other category for an increase of 90% year-over-year. The growth in this segment was driven by increased volume and ANI's strong commitment to U.S.-based manufacturing, excellence in generic product selection and R&D, and an informed and nimble team. These attributes, when combined, enabled ANI to quickly and efficiently meet evolving market needs. Operating expenses increased by 16% to $96.9 million for the three months ended March 31, 2023, from $83.7 million in the prior year period. Cost of sales, excluding depreciation and amortization, increased by $3.4 to 37.7 million in Q1 of 2023 compared to 34.3 million in the prior year period. Primarily due to a shift in product mix and increased volumes of sales of generic and rare disease pharmaceutical products. During the prior year period, we recognized $3.8 million in cost of sales representing the excess of fair value over cost for inventory acquired in acquisitions. There were no comparable expenses in the current year period. Excluding the impact of acquisition accounting, stock compensation, and the effects of our Oakville, Ontario plant closure, all of which are detailed in the tables contained in this morning's press release. Cost of sales on a non-GAAP basis as a percentage of total non-GAAP net revenues decreased 13 percentage points from 47% in Q1 of 2022 to 34% in the current year period. Primarily as a result of favorable sales mix from the impact of higher sales of established brands, Cortrophin, and the net impact of annualization of new product launches in our generic franchise. Research and development expenses were $5.9 million in Q1 of 2023, an increase of 0.7 million from the prior year period. Primarily due to year-over-year timing of work associated with generic products, coupled with an increase in projects related to Cortrophin Gel in the three months ended March 31, 2023. Selling, general, and administrative expenses increased by 27% to $36.5 in Q1 of 2023 compared to 28.8 million in the prior year period. Primarily due to a $3.4 million increase in sales and marketing expenses related to Cortrophin Gel and increased headcount costs, tempered by a $0.7 million decrease in transaction expenses related to the Novitium acquisition. Depreciation and amortization expense was $14.7 million for the three months ended March 31, 2023, essentially in line with prior year. During the quarter ended March 31, 2023, we recognized a non-cash fair value adjustment of $1 million related to the contingent consideration recorded in conjunction with Novitium purchase accounting. This is compared to $0.8 million recorded in the prior year period related to this item. In addition, we recognized $1.1 million of restructuring expense in Q1 of 2023 associated with the closure of our Oakville, Ontario facility. No restructuring activities were recognized in the prior year period. We have excluded both the transaction, as well as portions of the Canada results that are expected to be non-recurring post-closure from our non-GAAP financial measures, as detailed in the tables in this morning's release. Net income available to common shareholders for Q1 of 2023 was $1 as compared to a net loss of 20.5 million in the prior year period. Diluted GAAP earnings per share was $0.06 per share as compared to a 1.27 loss in the prior year period. GAAP earnings per share reflects significant amortization and purchase accounting-related charges related to the Novitium Pharma acquisition, coupled with Oakville-related restructuring activities. On an Adjusted non-GAAP basis, we had diluted earnings per share of $1.17 per share for the quarter, compared to a loss of 0.12 per share for the prior year period. Adjusted non-GAAP EBITDA for Q1 of 2023 reached a new company record of $33 million and reflects significant gross profit pull-through from the strong revenue performance. This is an increase of $28.7 compared to the 4.3 million recorded in the prior year period. Importantly, adjusted non-GAAP EBITDA also rose $9.7 million on a sequential basis, up 42% from our previous record, $23.3 million in Q4 of 2022. From a balance sheet perspective, we ended the quarter with $67.8 million in unrestricted cash, driven by cash flow from operations in the quarter of $21.4 million. This compares favorably to cash used in operations of $18.9 million in the prior year period. We have $296.3 million in face value of outstanding debt, which is due in November of 2027. In addition, we have $40 million of untapped capacity in our revolving credit facility. Finally, as outlined in this morning's press release, we are pleased to raise full year 2023 guidance as follows. We raise total company expected net revenues to between $385 and $410 million, up from the previously issued guidance of $360 to 385 million, representing approximately 22%-30% growth as compared to the $316.4 million of net revenues recognized in 2022. We raised total company Adjusted non-GAAP EBITDA to between $97 and 107 million, up from previously issued guidance of $78 to 88 million, representing approximately 74%-91% growth as compared to the $55.9 million recognized in 2022. We raised total company adjusted non-GAAP earnings per share to between $2.99 and 3.45, up from previously issued guidance of $2.09 to 2.59, representing approximately 120%-154% growth as compared to the $1.36 reported in 2022. We maintain Cortrophin-specific revenue guidance at between $80- 90 million, representing 92%-116% growth as compared to the $41.7 million recognized in 2022. We continue to expect 2023 Cortrophin SG&A to increase approximately 10% over 2022 to account for a modest sales force expansion. We now project total company non-GAAP gross margin of between 60% and 62.5% as compared to previously issued guidance of 59.5% and 61%. In addition, we currently continue to anticipate between 16.8 and 17.1 million shares outstanding and an effective tax rate of approximately 24%. With that, we will now open up the call to questions. Operator, please announce the instructions. Certainly. At this time, if you would like to ask a question, please press star one on your touch tone phone. You may withdraw your question at any time by pressing star two. Once again, that's star one. We will take our first question from Elliot Wilbur with Raymond James. Please go ahead. Thanks. Good morning. First question for Nikhil and Steve as well. Just wanted to dive a little bit deeper into the overperformance in the base business generics and brands and loyalty lines specifically. Was that a dynamic that emerged late in the quarter, or do you simply now have more visibility on the continuation of some of the favorable trends that you're seeing versus what you had previously anticipated, I guess, in early March when you provided the initial 2023 guidance? Then just if you could provide a little bit more granularity in terms of some of the key drivers, whether we're talking about competitive wins in the generics business, benefit of off-contract pricing perhaps, or just new launch dynamics, maybe just a little bit more granularity on where the actual overperformance is coming from. I've got a couple follow-ups. Sure. Good morning, thank you, Elliot. You know, to the first part of your question, maybe I take the second part of your question, which is what are the specifics around these trends? Look, ANI's robust results in our generics established brand and other segments showcases our ability to leverage our U.S. manufacturing footprint and our agility in operations to deliver solutions to our customers. Now, this has enabled us to capture a market demand arising from the supply disruptions impacting patient access to much-needed medicines. We see this as a positive trend impacting our business due to several structural factors, and there's a mix of factors, right? There are product-specific issues, there are manufacturing site-related issues arising from FDA audit outcomes. There are company-specific financial issues such as Chapter Eleven and Chapter Seven situations, and there are broader market-driven opportunities. While the mix of these issues will change, you know, this trend is here and may be likely to continue. ANI remains well-positioned with our U.S.-based manufacturing, dedication to supply chain and manufacturing excellence, and nimbleness as an organization to capture these opportunities. I would also reiterate that first and foremost, Q1 performance represents strength across all four businesses. As Steve noted in his remarks, this is reflective of organic growth of the company, right? These include strength of new product launches in generics, the continued evolution of our Cortrophin launch, and the impact of innovative go-to-market strategies in our established brands business. That's the second part of your question, Elliot. On your first part on the, you know, what did we know in March versus now. Look, at any given point, we're giving the best information available to us, right? While this trend may have started earlier in the quarter, we wanted to give it some time before, you know, before we went ahead and reflected that, right? Our best thinking is reflected in the guidance we gave in March. As we had more, you know, visibility, you know, we've raised the guidance. Okay. Thanks, Nikhil. A follow-up for Steve as well, going back to a subject matter I guess we discussed more than usual last quarter, and that being cash flow. Looks like you generated operating cash flow of just over $21 million in the quarter. Working capital looks like it's now a neutral versus a negative as it's been for several periods now. You're still seeing increases, I guess, in some of the larger working capital asset accounts. Just wondering, with the increase in full year EBITDA guidance, how should we be thinking about cash conversion and cash flow performance versus what we saw in Q1? Are there any other chunkier items that may work to your benefit over the course of the year now that you've got that $20 million plus contingent liability on the balance sheet? Yeah. Elliot, good morning. Thanks, and thanks for the question. Obviously we're very pleased with the cash conversion in Q1. Again, we posted $21.4 million of cash from operations. And right, it's thematically in line with everything that we've discussed on the evolving calls throughout 2022, and the year-end call, just back in March, right? That the 2022 era where the company was using significant amounts of cash to stand up the Cortrophin Gel launch and to stand up the rare disease business within ANI, that those chapters are starting to, you know, starting to be in the rear view mirror, so to speak, right? When you couple that track that we were on with, you know, a very significant and healthy quarter, you know, you have a significant unlock of cash in Q1. You know, looking forward, we would obviously expect that to track with our P&L guidance. I think, you know, we're very confident and having a increasing level of confidence in terms of the cash generation that we expect from the business, as we look forward to the next three quarters. Obviously cash tracks the P&L performance, and lags it by a bit. To your question about, you know, chunky items, you know, I think the only, well, the few that I would highlight, right? I talked in the prepared comments about Novitium contingent consideration. We do anticipate, right, we'll have the two-year anniversary of the Novitium transaction in November of this year. That will kick off the first leg of contingent consideration payments to the selling shareholders. We're currently anticipating about a $12.5 million payment in this year. That would be the very first payment due to selling shareholders. There would be a second payment of a similar amount early in 2024. We're clearly planning for those events, and we're clearly more than happy to pay those contingent outflows because it's, you know, a very present indication of the strength of the transaction, and the fact that the Novitium transaction has. Not only fulfilled our expectations, but exceeded our expectations, as we've combined that great business into ANI. That's one on the outflow. Obviously we've talked about the Oakville closure, right, which is from an operational perspective is fully complete at this time. It was completed on track and on target with our timelines. That facility continues to be held for sale in Canada. Obviously we can't predict the exact timing of when that sale will close. We expect a, you know, a nice cash inflow from that transaction. Okay, thanks. Last question for Nikhil. You highlighted a lot of the continued positive trends in the uptake of Cortrophin and specifically thinking about indications that new patient starts, new patient initiations were at record levels in April. Do you have any sense as to whether or not these are new to therapy or treatment-naive patients versus, you know, potential switches from your competitor in the marketplace? Guess the reason I ask the question is some of the, some of the data out there, and granted it's relatively low frequency, may not be that high quality, but some of the data shows fairly sharp uptick in terms of switches to Cortrophin from your competitor. Not sure if that is accurate or not in terms of what you're seeing, and if so, any thoughts as to what may have impacted that? Thanks. Yes. No, thank you, Elliot. Look, I think it's a mix. It's a mix of patients that are naive to the therapy, as well as patients that are switching. What I will say is, you know, as I was saying, we've ramped up our efforts to increase awareness of Cortrophin Gel, and obviously, you know, there's an increase in the number of new prescribers as well as repeat prescribers. With repeat prescribers, what you will see is that as they start using Cortrophin Gel, you know, they and see, you know, the many parameters of the use, right? The time from enrollment to fulfillment, the impact of the patient, the engagement with the company. I think all of those factors drives their, you know, the HCP to think about, you know, shifting their usage, right? As I had also mentioned in my prepared remarks, that there is a number of, you know, prescribers that used to use ACTH therapy that had just stopped over the years or had reduced their usage significantly. As we've ramped up our increased awareness of Cortrophin Gel and, you know, they've sort of reintroduced ACTH into their, you know, suite of treatment, treatments that they use for patients, you know, of course, for appropriate patients in need. That's why you're seeing the year-on-year monthly unit growth, right, for 10 consecutive months, according to IQVIA. Okay, we'll take our next question from Vamil Divan with Guggenheim Securities. Please go ahead. Great. Thanks for taking my questions. Nice results obviously here. A couple questions I just wanna dig into a little bit more. One, on the Cortrophin, and I appreciate you're not saying, you know, too much for competitive reasons. I'm just wondering if you could share any sort of just general feedback from providers as you're talking about, you know, some people may be returning to this market, patients returning, and then also some new, you know, new providers potentially. Just feedback you're getting in terms of how the product is performing relative to maybe prior experience with the competitor. Also, is there any sort of added costs we should assume on the, you know, behind the launch sort of for the rest of the year? You know, in terms of it sounds like the sales force is all in place now, but anything else there or added sort of, you know, marketing, you know, meaningful increases over what we saw in Q1? The second question was just more general. Again, getting back to the cash discussion. I'm just curious if you can talk a little bit more about sort of how your comfort level around your leverage ratio as you think about investing behind, you know, Cortrophin, but also potentially bringing in additional rare disease assets. What kind of level? I think your debt's around close to $300 million, but you have about $240 or so of cash plus the accounts receivables. I'm just curious how much added leverage you'd be comfortable taking. Thank you. Thank you, Vamil, and good morning. Let me answer your second question and then your first, and then I'll let Steve start on the last one around the leverage ratio. We are not adding any costs. You know, when we had spoken at last quarter's earnings call for Cortrophin SG&As, we had indicated that we expect 10% higher than, you know, previous year SG&A. I think it's in our press release too, that we will maintain the SG&A spend at that, so no added costs. That's the answer to that question. Look, in terms of general feedback from prescribers, I think it's a few things. First is that they comment on the on our sales force. You know, our sales force is highly experienced, highly trained, and they focus the discussions on, you know, patient need, right? On the ACTH category. I think that that engagement is one that they speak very highly of, right? Because, you know, this is a rare disease product, right? It's for identifying the appropriate patients in need. So I think that's the first thing they speak about. I think the second, as I mentioned in my remarks, that, you know, the central to our, quote, "the Cortrophin Gel launch" has been our efforts around market access and improving the enrollment to fulfillment process. I think they comment about that and, you know, the reduced sort of burden that they have there. I think third, you know, equally important is they talk about, you know, the reduced cost to the healthcare system and the reduced cost to the patient and the, and the favorability of that. Of course, you know, again, I have to be careful about what I say here, but I mean, underlying all of this is the impact to the patients, right? These are the patients that they're treating and these are, you know, complex cases and, you know, patients dealing with complex indications and comorbidities and the impact that they're seeing on those patients is part of it. I think those would be the, you know, the points, the feedback that we're getting from the HCPs. Your last one, question on leverage ratios, you know, obviously, you know, Steve will jump in, which is, you know, with the EBITDA of $33 million, you know, that has a very favorable impact, and also our guidance has a very favorable impact on our leverage ratio. I'll let Steve comment on, you know, how we think about that going forward. Sure. Thanks. Good morning, Vamil. Yeah, I think it's important because I think your question, it kind of weaves together two aspects, right? The cash, the leverage, and then also just, you know, kind of the BD thought, right? As we look to build out the rare disease business. I think it's important to note, right, as I answer this, that there's no black and white, there's no absolute. We're obviously going to retain flexibility, right, as we approach different business development opportunities. Every opportunity, right, would have a different profile in terms of, you know, the asset that we're approaching, what is its cash flow profile. With those kind of caveats, you know, I think obviously we're pleased with the cash position as of March 31, and the progress that we've made there. As I just answered with Elliot's question, you know, this is a strong platform for us to build that cash position as we look to future quarters. We will always remain focused and balanced in terms of our leverage position. For, you know, for folks that have been following the company for some time, I think one of the, you know, one of the hallmarks of ANI and how we've navigated the markets throughout the years is to remain a bit conservative on leverage. As we spoke about on these calls and with our constituents, right, in 2022, we were a bit forced, if you will, to go beyond our comfort zone in order to do what was right for the business and to stand up rare disease and to launch Cortrophin with an eye towards strength and with an eye towards doing the Cortrophin launch correctly right out of the gate. You know, we're very pleased that as we look forward, you know, at the current moment, we're delevering organically as projected. We're very pleased that that will continue to occur here in 2023. All of these factors, right, put us in a better position of strength to approach business development opportunities. You may note, right, as you're going back through the prepared comments for today, I did cite the untapped credit facility of $40 million. That's the first time in a while, right? I wasn't citing that in our 2022 earnings calls because, you know, Nikhil and I would not be comfortable, you know, tapping into that given the leverage levels that we were at in 2022. Again, all these factors, we would expect, looking forward, right, that, that credit facility may be another, you know, piece of the puzzle for us as we look to continue to grow the business. Okay, thanks. That's all very helpful. Thank you. We will take our next question from Brandon Folkes with Cantor Fitzgerald. Please go ahead. Hi. Thanks for taking my questions, and congratulations on the very strong results. Maybe firstly from me, just on the gross margin, this is very strong in the quarter. Can you just elaborate on why we're not expecting further gross margin expansion in the updated guidance, just given the increased contribution of Cortrophin through the rest of the year? I would have expected Cortrophin to have better gross margins than the established brands product. Along those lines, can you just talk about if there were any one-time price benefits in the quarter on the base business, especially due to some of the supply disruptions you mentioned? Maybe I'll ask my second question because it may go hand in hand with that. Can you just help me further understand the guidance? It just seems if I take Q1 base business run rate and I add the low end of your Cortrophin guidance, I'm getting close to sort of $440 million in revenue. Can you just talk about either perhaps some of the one-timers in Q1, headwinds in the base business for the rest of the year? Or is this just sort of conservatism given how early we are in the year? Thank you. Yeah, thanks, Brandon. Why don't I start, and Steve, you can jump in. look, our guidance, you know, implicit in your question one and three on evolution of gross margin and then the question on guidance is really the question on guidance. you know, our guidance is based on several factors, right, as you would appreciate. this includes accelerated launch momentum that we're seeing with Cortrophin Gel, where we had a record number of new cases initiated in Q1 2023, but also a record number of new patient starts and new cases initiated in April of 2023, right, which is the month that finished eight days ago. that's the first factor, you know, set of factors. The second is that the impact of the trend that we're seeing across generics and established brands of several favorable structural factors, such as product-specific issues, manufacturing site-related issues, arising from FDA audit outcomes, company-specific financial issues such as Chapter Eleven and Chapter Seven situations, and broader market-driven opportunities. I, you know, our guidance sort of calibrates the upsides from the same, right? So that, you know, answers hopefully question one and three. To your question around price benefits. Look, again, for competitive sensitivity reasons, you know, we'd like to give that question a pass. I think that the favorability is largely driven by volume, right? Yeah, but I wouldn't want to add more specifics around the price. Yeah. Steve, would you like to add anything? No, I think you covered, Nikhil, the question and what we're prepared to speak to this morning. Yeah. All right, we'll take our next question from Greg Fraser with Truist Securities. Please go ahead. Good morning, folks. Thanks for taking the questions. Can you comment on how to think about the quarterly cadence of generic sales for the balance of the year? On the significant growth for established brands, net revenue, was the growth driven primarily by established brands as opposed to the other segments of royalties and contract manufacturing? It looks like you're no longer breaking those out separately. Just wanted to know if there's something chunky in there that drove Q1 outperformance. I'm not sure if I missed this, but did you comment on the timeline or give any updates on your 505(b)(2) programs? If not, can you give us an update on those? Thank you. All right. Good morning and thank you, Greg. The three questions. The first question is timeline for 505(b)(2). We've not commented on it, and at this point we're not, you know, sharing further information on that. We'll come back when there's more to share on the 505(b)(2) launches. Your first question on the quarterly cadence for generics. Look, I think the, you know, we've always talked about sustainable growth, and for generics, it's really about ensuring that we continue with our strong R&D growth engine, right? Continue delivering new launches, focusing on cost excellence, right, by continuously reducing the costs, and therefore being able to continue to supply and stay competitive. Third is supply security, right? With all of these three, sort of three strategies with the new product launch really at the heart and center of it, we believe that the erosion that we see in our business from generics will be overcome by the growth that we'll get from new launches, from supply security, and from cost excellence, right? We'll be able to grow the generics business as we keep moving forward. That tells you a little bit about the quarterly cadence. On the question regarding, you know, where is the upside from within the established brands, royalties, and other segments, I think while it's, while it's mixed, you know, a good part of it is from the established brand segment. Thank you. Thanks, Greg. We'll go next to Oren Livnat with H.C. Wainwright. Please go ahead. Thanks. I have a few. Just to, I guess, build on the prior questions about, you know, going forward visibility. You know, you've had outperformance from every line, but if we start with generics first, again, implied in your guidance is, you know, some conservatism looking forward. Just can you talk about, you know, if you expect Whatever disruptions happened, supply, bankruptcy, et cetera, does your guidance assume conservatively, you know, some normalization in the competitive landscape going forward? Then on the brand, legacy brand business, which is obviously a high margin contributor, going forward, is that still a declining revenue line, or do we think that has eroded, you know, in volume but offset by some pricing benefits? Is that, is that a stable business going forward? I have, Cortrophin for follow-ups. Okay. I think your first question was on the trend. Look, the impact of the trend, right, it has several favorable factors, structural factors that I spoke about a couple of times, right? Product-specific issues, manufacturing-related issues from FDA audit outcomes, company-specific financial issues such as Chapter Eleven and Chapter Seven, and broader market-driven opportunities. What you see in our guidance is a calibration of the upsides from the trend and an understanding of, you know, the mix of these issues and how that will persist. On established brands, as we've spoken about before, there's a number of steps that we're taking to in our established brands business, right? We have innovative go-to-market strategies for a bulk of our established brands. For our derm-specific brands that we had acquired from Sandoz a couple of years ago, we've launched a partnership that's now sort of in full flow with another company to do co-promotion. That's in full flow. You know, obviously, as we talked about, right, the operational excellence to ensure that as our customers need these products on a timely basis, being able to have a robust local supply chain that can provide these products on a timely basis to customers. Okay. On follow-up, sir, actually before I get to Cortrophin. In the past, you've talked about product concentration and, you know, no single product exceeding X% of total revenue. Can you update us on, I guess, the largest single contributor size percentage-wise in Q1? I have Cortrophin. I think it's Cortrophin by a long distance, right? Yep. I mean, aside from Cortrophin. Yeah. Nikhil, I'd say, you know, we haven't highlighted those products in the past. I'd say we're still very pleased with the product diversification in the portfolio. Okay. Moving on to Cortrophin, if I may. I know I appreciate you're not giving us more granular, granularity on specific patient ads and doctor ads, but I guess can you just characterize as that launch is accelerating Q1, does the pace of new initiations of actual therapy as you pull through, you know, insurance adjudication, et cetera, has that outpaced, or is that higher or lower, I guess, than the new patient referrals or prescribing ads wherever they're coming from? I'm just trying to think about whether you sort of had to catch up this quarter as you pulled through existing prior demand or if it's, you know, sort of steady state on that front in terms of conversion and it's really just organic, end user demand growth. Yeah. Look, our, you know, the growth that we're seeing, right, it's not as simple as saying, you know, what's the pace of new patient adds, right? Because there's a number of other factors that go from new cases initiated to actually, you know, revenue-generating patients, right? It's the mix of patients. It's the number of vials per patient. It's the number of patients that are revenue generating and the time to therapy. There's a number of different factors. I would say that, look, it's straightforward, right? You look at the, you know, what we've done in Q1 and what we're, you know, reiterating our guidance for the rest of the year that we have high confidence in, that that mix will continue. you know, I think one very important point is that our intention is to continue giving investors the best available information. While we're not giving the specific number, we're making it clear that, look, even in the month of April, we've had a record number of new patient starts and new cases initiated. You don't have that unless you have accelerating launch momentum. As simple as that, yeah? Mm-hmm. Okay. You actually kind of segued to my next question when you mentioning the sort of vials for patients, or I guess you can call it units per patient. Can you just comment on with, you know, not pricing per se, but are you seeing a material increase in Q1 and looking forward in the sort of value per patient in terms of the kinds of indications that are getting prescribed and pulled through? You know, we obviously have a big range and some indications have long longer or higher dosing than others. Yeah, no, there's no, you know, we're not necessarily seeing a difference in that, in that dynamic. Okay. What we're seeing is not something that I'm prepared to talk to, for competitive reasons. Yeah. Just lastly, I apologize for all the questions, but on the rare disease space, you know, you sound pretty explicit that you're quite interested in looking at M&A. I'm just curious if you could talk about the kinds of, you know, things you're looking at. You know, are we thinking about on market products, maybe they're underperforming or new launch situations? Are you more inclined towards, you know, a partnership, co-promoting or helping commercialize a product for a company that's not really set up to do so as well as you, or product and/or company acquisitions that might involve more integration activities? Thank you for that question, Livnat. Look, we are looking for assets that can leverage the strong rare disease infrastructure that we have built. When I say that infrastructure, what do I mean? You remember I was saying, the earlier question was asked about HCP feedback. You know, the first thing I highlighted was the highly experienced and expert sales force that we have. You know, we go into three different. The sales force spans three different indications, neurology, nephrology, and rheumatology. The first, you know, first and obvious one would be to pick, you know, an asset that is either of these three. Obviously we just added dermatology, although it's a modest dedicated team. That is an asset that sort of goes into one of these call points, right? That's one. I think the second part of it is just one that leverages our rare disease infrastructure, you know, market access, patient support, specialty pharmacy distribution, right? Compliance, medical affairs, all of that. So assets that can leverage that too. We're, we're looking at and actively exploring both sets of opportunities. From your question around, you know, what kind of assets. Look, we're evaluating all and trying to find what's best for ANI, right? There are no, there are no, there's no sort of nothing that we're blocking from that perspective. Yeah. All right. Thanks so much. I appreciate it. Congrats on a big quarter. Thank you. There are no further questions at this time. I will turn the call back over to Nikhil Lalwani for closing remarks. Thank you everyone for joining our call this morning. Thank you to the folks who asked the questions. We appreciate it. Look, we'd just like to reiterate that ANI is well-positioned to continue delivering sustainable growth and serving patients in need, and we look forward to updating you on our progress. We appreciate your time and interest in ANI, and thank you. Thank you. Thank you. This does conclude today's program. Thank you for your participation. You may disconnect at any time.