Good afternoon and welcome to Eton Pharmaceuticals First Quarter 2025 Financial Results Conference Call. At this time, all participants are in a listen-only mode. Following the formal remarks, we will open the call up for your questions. Please be advised that this call is being recorded at the company's request. At this time, I'd like to turn it over to David Krempa, Chief Business Officer at Eton Pharmaceuticals. Please proceed.

Thank you, operator. Good afternoon, everyone and welcome to Eton's first quarter 2025 conference call. This afternoon, we issued a press release that outlines the topics we plan to discuss on today's call. The release is available on our website, etonpharma.com. Joining me on our call today, we have Sean Brynjelsen, our CEO; James Gruber, our CFO; and Ipek Erdogan-Trinkaus, our Chief Commercial Officer. In addition to taking live questions on today's call, we will be answering questions that are emailed to us. Investors can send their questions to [email protected]. Before we begin, I would like to remind everyone that remarks made during this call may contain forward-looking statements and involve risks and uncertainties that could cause actual results to differ materially from those contained in these forward-looking statements. Please see the forward-looking statements disclaimer in our earnings release and the risk factors in the company's filings with the SEC. Now, I will turn the call over to our CEO, Sean Brynjelsen.

Thank you, David. Good afternoon, everyone and thank you for joining us today. If you were aware or with us for our Investor Day in March, you heard about Eton's transformational 2024 and I'm proud to say the momentum has continued into 2025. Our existing products are generating strong growth. We recently added 2 high-value commercial assets to our portfolio with the acquisition and relaunch of Increlex and Galzin, and we've advanced our pipeline candidates, setting the stage for 2 potential approvals in the next 9 months. We've seen now sequential growth in product revenue for 17 straight quarters since the launch of Alkindi Sprinkle. Though we are very proud of this track record of commercial execution, we are just getting started. With attractive growth prospects for our existing products and a strong late-stage pipeline, we expect this streak to continue well into the future and we're very excited about what lies ahead. I'd like to begin with one of our important new products, Increlex. Increlex is a complex biologic product used in treating patients 2 years of age and older who suffer from severe primary insulin-like growth factor 1 deficiency. SPIGFD affects an estimated 200 children in the United States. When we signed the transaction in the fourth quarter, we were very excited about the deal given the strong strategic fit within pediatric endocrinology and what we saw is a very attractive growth opportunity. We are now nearly 5 months into the transaction and I am pleased to say that it is exceeding our expectations. Eton saw a tremendous opportunity to leverage our existing pediatric endocrinology sales force and commercial infrastructure as well as make new investments into community initiatives to raise awareness of this ultra-rare condition which unfortunately had seen an increased number of children going undiagnosed in recent years. At its peak, more than a decade ago, Increlex had 185 patients in the United States, but that number has been declining for years and was at only 67 patients when we completed our acquisition in late December. With the significant investments we have made plus the hard work of our commercial team over the last 5 months, I am pleased to say that the trend appears to have reversed. We've now reached over 90 active patients and remain confident that we can reach our goal of 100 patients by the end of this year and even higher levels in the years to come. Missed diagnoses have been a long-standing problem with this condition. When physicians are presented with short-stature patients, IGF-1 deficiency is not necessarily top of mind. There is an ingrained habit of automatically prescribing growth hormones; SPIGFD patients generally have normal growth hormone levels, so this treatment is ineffective and delays a proper diagnosis, causing SPIGFD patients to miss the Increlex treatment window. We feel that it's important for all shorter stature patients to be screened for severe primary IGF-1 deficiency and are using our deep relationships in the pediatric endocrinology community to drive greater awareness of SPIGFD and push for the screening. Eton is also working to expand access for U.S. patients by seeking to harmonize the U.S. and EU labels. The definition of what constitutes severe primary IGF-1 deficiency differs between the regions. While the height criteria is consistent, the IGF level is not. In the United States, a patient's IGF level must be at least 3 standard deviations below the median, while in the EU, patients must be in the bottom 2.5 percentile for their age and gender which translates to approximately 2 standard deviations. We have completed statistical analysis of the patient registry that has tracked hundreds of Increlex patients over the last decade and we believe it shows that the product is safe and effective in the slightly broader EU label population. We expect to submit a supplemental filing to the FDA in the second half of 2025. By harmonizing the 2 definitions, we estimate that up to 1,000 U.S. patients could clinically benefit, significantly expanding treatment opportunities beyond the current 200 patients. We are proud of the team's hard work to close, integrate and relaunch Increlex that the growth achieved in such a short period of time is impressive and it is clear that the long-term growth opportunity remains with or without the label harmonization. During the quarter, we announced the out-licensing of Increlex's international rights to Esteve Pharmaceuticals for an upfront payment of $4.3 million. Increlex's international opportunity is relatively small, highly fragmented across more than 30 different countries and has slim margins. In addition, the out-licensing eliminated the need for Eton to make a multi-million G&A investment to support global infrastructure, maintain foreign regulatory approvals and facilitate commercial and distribution activities. We believe the transaction will be far more additive to Eton's profitability than if we had commercialized the product internationally ourselves. The transaction also provided us with a $4.3 million upfront payment, recouping a meaningful portion of our initial purchase price and providing excess capital that can be reinvested into our attractive pipeline opportunities. And finally, it eliminated the distraction and resource burden that would have come with managing more than 30 territories and several other team members to fully dedicate their time and attention to our 3 high-value U.S. product launches in 2025. Esteve shares a similar philosophy of putting patients first, so we are confident that they will be a good partner for the product and ensure that the international patients have access to this meaningful therapy. Turning now to Alkindi. This has been a strong growth driver for us for 17 straight quarters with no signs of slowing down. In fact, the pace of referrals has actually increased in 2025. As you may remember, beginning in January, we made our existing sales force 100% focused on pediatric endocrinology. We believe this has driven increased efficiency which is apparent not only in the strong launch of Increlex but also in an increased rate of new Alkindi Sprinkle prescriptions. Through April, the number of new patient referrals received this year exceeds the first 4 months of any other year since launch. Despite the relatively high discontinuation rate, we have still added a significant number of new patients this year and are quickly closing in on our 500 active patients. Eton has been encouraged by Alkindi's strong start to the year and are expecting the rate of new patient adds to our adrenal insufficiency franchise to accelerate even further in the second half of 2025 with the anticipated launch of ET-400. As we have discussed at length, we continue to see a large portion of the market using unapproved compounded hydrocortisone due to the preference for a liquid dosage form. We believe approximately 50% of young children are using a non-FDA liquid hydrocortisone today. With an estimated 5,000 adrenal insufficiency patients under 9 years of age, we continue to see a very compelling market opportunity for ET-400. ET-400's PDUFA date is just 2 weeks away and we are prepared to launch quickly upon potential approval. We've manufactured our launch inventory in our specialty sales force and promotional campaigns are ready to go live. We have been engaged in communications with the agency throughout the review and we're optimistic that they will meet their PDUFA goal date of May 28. It's a very exciting time at Eton. After many years of hard work, our team is very excited to be on the cusp of making this important medication available to the patients in need. Transitioning now to another significant opportunity. The treatment of Wilson's disease or Wilson disease, more correctly, a rare genetic disorder that causes excessive copper accumulation in the body. Patients suffering from this condition do not metabolize copper normally with their bodies absorbing the copper instead, preventing it from leaking in the body and Galzin is an FDA-approved treatment for patients with Wilson disease who have been initially treated with a chelating agent. It is the only FDA-approved zinc therapy for Wilson disease today. As with Increlex, we were driving Galzin as an acquisition because we saw significant opportunities for Eton to add value, grow the product and improve the outcomes for patients. And similar to severe primary IGF-1 deficiency, Wilson's disease is a severely underdiagnosed condition with a lack of product investment leading to inadequate awareness and education. Wilson's disease is estimated to impact approximately 10,000 people in the United States, but we estimate that only 2,000 of those patients are diagnosed and actively on a therapy today. Unfortunately, most patients are not diagnosed until they are in their 20s or 30s when symptoms begin to present after years of excessive copper buildup. This delayed diagnosis leads to worse outcomes, including neurological damage and liver failure. The increased frequency of genetic testing in recent years has led to earlier diagnosis, allowing patients to proactively start zinc therapy before liver or other damage occurs, but an unmet need still remains. Of the roughly 2,000 patients that have been diagnosed and are on treatment, we estimate approximately 800 use zinc therapy, while the remainder are on chelating agents. However, due to historical challenges with access, affordability, and awareness, most patients on zinc therapy appear to be using over-the-counter supplements rather than the FDA-approved prescription product. The nutritional supplements are a different form of zinc which have been shown to be less effective than Galzin. We acquired Galzin because we feel that we are the right company to address this dynamic. We relaunched the product in March with robust patient services, including a $0 co-pay. For the first time ever, every Wilson disease patient who wants Galzin can access it regardless of insurance status. We believe Eton Cares is one of the most generous high-touch patient assistance programs in the industry and one of the many things that sets us apart from other rare disease companies. Our relaunch has received a warm reception from the community, including patient advocates and leading Wilson disease physicians. We are currently migrating patients to Eton's commercial infrastructure and Eton Cares program. This migration kicked off in March and will be a multi-month process as the previous pharmacies work through inventories that remain in the channel. We expect the conversion to be largely complete by the end of the third quarter, at which time Galzin should begin producing meaningful revenue. I'm pleased to be able to solve the access and affordability issues that have impacted Galzin users for more than a decade. However, we believe that there is more that can be done to improve the lives and outcomes of Wilson disease patients. After access and affordability, the 2 most common complaints about zinc therapy are the burdensome dosing requirements and unpleasant GI side effects. We've set out to tackle these challenges with the development of ET-700 which we disclosed for the first time in March. ET-700 is an extended-release version of Galzin which we believe will eliminate the need for 3 times per day dosing as well as potentially reduce the GI side effects that are reported by some patients on zinc therapy today. We initiated ET-700 development last year prior to the acquisition of Galzin and have now filed a patent on our proprietary formulation. We're now advancing this program at full speed and working with the top Wilson disease thought leaders to prepare a clinical study protocol. We are preparing for the manufacturing registration batches later this year and have a meeting with the FDA in the second quarter to discuss our proposed clinical program. If everything goes as planned, we expect to file an NDA in 2027. We believe this product candidate has the potential to generate more than $100 million of peak revenue. Our metabolic portfolio, which includes Carglumic Acid, Betaine, Nitisinone and GoLike continues to provide steady revenue and cash flow. The group of products produced solid year-over-year growth in the first quarter but will have reduced significance to Eton going forward due to the rapidly increasing revenue contributions from our high-margin pediatric endocrinology products. Turning now to our development pipeline. During the quarter, we were pleased to report that ET-600 passed its pivotal bioequivalency study which allowed us to submit an NDA for the product in late April. ET-600 is Eton's proprietary patented oral solution of desmopressin under development for the treatment of central diabetes insipidus. Leading pediatric endocrinologists have long expressed the need for this product because it allows for the small precise and titratable doses required to treat pediatric patients. ET-600 is the same pediatric endocrinology prescriber base as Alkindi Sprinkle, ET-400 and Increlex. This should provide an important head start once commercialization activities begin. We expect our application to be assigned a 10-month review which would allow for an approval and launch potentially as early as the first quarter of 2026. Pre-launch commercial activities are already underway and we are excited about the prospects for this important product. Eton is also continuing to advance Amglidia which we acquired late last year. Amglidia is designed for the treatment of the ultra-rare condition of neonatal diabetes mellitus which impacts an estimated 300 children in the United States and is within our pediatric endocrinology call plan. Although the product has been approved in the EU since 2018, there are currently no FDA-approved oral treatments for the condition and therefore, it is not possible for infants in the U.S. to receive the correct dose in an FDA-approved manner. Today, caregivers must either obtain a suspension from a compounding pharmacy or crush adult tablets to create a suspension at home. Similar to ET-400 and ET-600, Amglidia gives an opportunity to bring a liquid formulation to the market to provide precise and accurate pediatric dosing. Our acquisition terms allow us to have an FDA meeting to receive confirmation of the clinical pathway before any payment occurred. This meeting occurred in April and we were pleased with how it went. The FDA was receptive to what we believe is a feasible clinical pathway to bring this critical treatment to patients in the U.S. In the first quarter, we also unveiled another new internal development program, ET-800. Our French development partner, CROSSJECT, will continue to work on advancing the Zeneo hydrocortisone auto-injector and separately Eton will manage the development of this injectable vial product which we are calling ET-800. In addition to the large retail opportunity for hydrocortisone injection which we have discussed extensively, there was an even greater use in the hospital setting. A total of more than 5 million vials per year and approximately $100 million in sales today. Today, hospitals use a lyophilized freeze-dried powder vial which must be manually reconstituted prior to administration. We have developed and filed a patent on a proprietary ready-to-use liquid formulation that we believe will save time, reduce the risk of medical errors and is an important factor as hydrocortisone is often used in emergency rooms and operating rooms. If development activities progress as planned, we expect to make registration batches in the coming months and submit an NDA in early 2027. On the business development front, we expect acquisition and licensing transactions to remain a central part of our long-term story, and we continue to evaluate new opportunities. We've demonstrated that we can successfully execute value-creating transactions and we expect to continue to do so. However, our strong position allows us the luxury to remain disciplined and focus solely on products that are aligned with our ultra-rare disease strategy and can meet our high threshold for financial returns and value creation opportunities. As you have heard today, it's a very busy time at Eton; we have made great strides in our mission to bring as many new rare disease treatments to patients as possible. With 2 major product launches and relaunches already underway this year and the largest launch in our history potentially a matter of days away, there's never been a more exciting time for the organization. Following the expected launch of ET-400, we see a clear path to reaching $100 million of revenue in the near term and much higher levels as our pipeline products come to market. Through years of hard work, our team has built an extraordinary organization and we continue to make progress every day toward our goal of becoming one of the leading ultra-rare disease companies in the world. With that, I'll turn it over to James, our Chief Financial Officer, to discuss the financials and to address the questions.

Thank you, Sean. I'll start by addressing the tariff situation in the U.S. since that seems to be at the top of everyone's list of questions right now. We believe Eton would see minimal impact from any of the tariff proposals discussed to date. The majority of our products are produced in the U.S.; Eton does not hold any IP in any foreign countries and we do not have any intercompany transfer pricing arrangements. Our primary exposure will be with Increlex and Alkindi, which are both manufactured in Europe. However, the anticipated cost of products purchased from Europe represents less than 5% of our forecasted revenue. So a 20% tariff on European purchases would impact total company gross margin by less than 100 basis points, and the potential impact would likely be even smaller in future years since our late-stage pipeline products, ET-400 and ET-600, will also be manufactured within the U.S. In short, we are not concerned about the impact of tariffs, but we will continue to monitor the situation closely. Turning to our financial results. Our first quarter revenue was $17.3 million compared to $8.0 million in the first quarter of 2024, an increase of 117%. Net sales during the quarter included $3.3 million of licensing revenue, of which $1.8 million was from the licensing of Increlex rights outside of the U.S. Although Eton is receiving $4.3 million upfront, accounting guidance results in recording $1.8 million immediately with the remaining $2.5 million recognized over the licensing term. We also recorded $1.5 million of licensing revenue from a regulatory milestone event associated with our previous divestiture of DS-200. There was no licensing revenue recognized in the prior year quarter. Product sales were $14.0 million for the first quarter of 2025 compared with $8.0 million in the first quarter of 2024, an increase of 76%. This growth was driven primarily by increased sales of Alkindi Sprinkle and the addition of Increlex which was acquired in late December. We expect product sales to continue growing quarter-over-quarter throughout the rest of 2025 and beyond and we continue to expect to exit 2025 at an approximately $80 million annual revenue run rate. Gross profit for the quarter was $9.9 million compared with $5.0 million in the prior year period, primarily due to increased product sales. Adjusted gross profit, which excludes the impact of acquired inventory step-up adjustments and intangible amortization, was $12.0 million or 69.5% of total revenue versus $5.2 million of adjusted gross profit or 65.6% of total revenue in the prior year period. This increase was driven by continued growth of higher-margin Alkindi Sprinkle and the recognition of higher-margin licensing revenue in the first quarter of 2025. We expect to report full-year 2025 adjusted gross margin of approximately 70% and long-term adjusted gross margin to exceed 75% by 2028. R&D expenses for the quarter were $1.2 million compared with $0.7 million in the prior year period, primarily due to increased expenses associated with our ET-700 and ET-800 project development activities. It's worth noting that in April, we paid a $2.2 million NDA application fee related to our ET-600 submission. That cost will be fully recorded as R&D expense in the second quarter and we also expect to record a $500,000 expense for an Amglidia licensing payment in the second quarter of 2025. Besides these 2 one-time items, we expect R&D spending to remain largely in line with historical levels for the remainder of 2025. General and administrative expenses for the quarter were $9.2 million compared with $5.2 million in the prior year period. As mentioned in our fourth quarter call, increased SG&A expenses in 2025 were planned and necessary to build out the infrastructure needed to support the significant growth in our product portfolio and revenue base. These incremental investments include our new dedicated 5-person metabolic sales team which launched on January 2, commercial investments made in the product relaunches of Increlex and Galzin, investment in our ET-400 launch readiness activities, and additional corporate staff to support the growing portfolio in the areas of quality, regulatory, and finance. On an adjusted basis which removes the impact of share-based compensation, transaction-related costs and other one-time expenses, G&A expense was $7.3 million compared to $4.4 million in the prior year period. In addition to the planned increases in our infrastructure, SG&A expenses during the quarter were also affected by relaunch and prelaunch commercial activities in the period. We are not planning to make further significant investments in SG&A this year and anticipate that adjusted G&A spending will remain flat or slightly decline for the remainder of 2025. We believe that the investments we've made in G&A during the quarter will support revenue levels much higher than where we are today. As a result, we expect to return to minimal G&A growth in 2026 and beyond. Adjusted EBITDA for the first quarter of 2025 was $3.7 million compared to $0.5 million in the first quarter of 2024. Total company net loss was $1.6 million for the quarter compared to a net loss of $0.8 million in the prior year period. Net loss per basic and diluted share was $0.06 during the quarter compared to net loss per basic and diluted share of $0.03 in the prior year period. On a non-GAAP basis, we reported net income of $2.4 million for the first quarter of 2025 compared to $0.2 million in the prior year period and diluted earnings per share of $0.07 for the first quarter of 2025 compared to $0.00 in the prior year period. Eton finished the first quarter with $17.4 million of cash-on-hand and we generated $2.1 million of operating cash flow during the quarter. This concludes our remarks on first quarter results. And with that, we'll turn it over to the operator for Q&A.

Our first question comes from Chase Knickerbocker with Craig-Hallum.

Congrats on the results here. Just first on Increlex. Sean, have you had your meeting with FDA to discuss that label expansion at this point?

The meeting request has gone in. So we'll be looking forward to having that, I would say, in the coming weeks, possibly most likely July, in my opinion, and then it would follow ideally with the submission in the third quarter of the actual update. We believe the data we have is compelling. It's based on patient registry data out of Europe and should support that label change.

Great. And maybe staying on the FDA front. I appreciate the commentary on ET-400. Any additional color on any recent interaction with FDA that you can give us? I mean, are things progressing as you would expect with the review at this latest stage as in things like manufacturing inspections and final label discussions, et cetera?

Yes. The last step in the review process of a new drug application is typically the discussions about labeling, which includes the package insert. We have received the FDA's feedback on our label and have already resubmitted it to the agency. We believe this should be the final step. While there could be additional updates, I feel confident that we are on track for approval in two weeks or less.

Great. And on the Amglidia front, it sounds like you liked what you heard there. Does that mean you expect to just need a fairly simple kind of PK study to support an NDA filing there? Or just kind of any additional color?

Yes. We appreciated the feedback from the agency because it was clear they want us to develop this product and bring it to market. They provided a clear pathway for us, and we understood what steps we need to take. We had a few clarifying questions, so we are scheduling a follow-up meeting with the agency to confirm that we are aligned with their expectations. I was very encouraged by their comments, and I believe that we will just need a straightforward pharmacokinetic study, as you mentioned.

Got it. There has been impressive progress with Increlex, especially with 90 patients involved. If I look further into the discussion around Increlex and Sprinkle, it seems that the $80 million run rate in Q4 is starting to appear less risky. Is there anything I might be overlooking? Or do you have any comments regarding that Q4 run rate?

No. I think at the appropriate time, we feel very comfortable with the number to first address your question. We plan to leave it where it is for now and will monitor sales in the second quarter, but we're feeling optimistic. Sales have been strong overall and we are very pleased with the Increlex launch and the rapid increase in patients. We believe the upcoming weeks will help us provide more information during the next conference call.

And our next question coming from the line of Madison El-Saadi from B. Riley.

Yes. So could you maybe provide an update on the recent weekly Increlex prescription trends? I mean, it really looks like March was a tremendous month. Is that kind of the proxy barometer going forward? And then...

Yes, we've significantly increased the number of patients. As we continue to grow, we expect the rate of new patients to decline as we approach our potential target of 185 patients in the U.S. Currently, we are fully engaged in launching that product and anticipate meeting or even surpassing our goals this year. I believe we will exceed those targets. I'd like to gather more data over the next few months before we provide an update. As of now, we're in the 90s regarding patient numbers, and we will share further updates on the rate and better address your question regarding its trajectory.

Got it. Understood. And then on ET-400, if we assume approval is on time, what's the expected timing to the first commercial revenue that you would book? Do you think this could be an end of 2Q story or maybe early 3Q?

I'm thinking more about a Q3 launch. We plan to introduce it around the approval date, aiming for the first week of June. It will take some time for patients to receive their prescriptions since they need to return to the office for a doctor's approval. Consequently, there will be a delay between the launch and the actual revenue generation. I would estimate that we should focus more on the revenue impact in Q3 and Q4. We anticipate a quick uptake as there is significant pent-up demand for an oral solution. Overall, while it won't substantially affect revenue this year, we expect it to have a more meaningful impact in the following quarters.

Got it. And then lastly, I really appreciate the color on the tariff risk exposure which looks to be really a nonstory. Any commentary to theoretical exposure to the White House Executive Order, the most favored nation policy?

Thank you for the question. It's likely on many people's minds. Initially, I was uncertain about the situation due to the lack of details provided. However, after further examination and additional research, I don't believe it will significantly affect us. We operate solely in the U.S., so we're not competing with overseas products sold at lower prices. This is a strong position, as we do not engage in dual pricing like larger pharmaceutical companies. I think this may primarily impact those larger firms. Additionally, we are not as dependent on Medicare and Medicaid compared to most pharmaceutical companies; in fact, we have minimal involvement with Medicare and only with Medicaid, where we incur losses on some products. However, we do profit from Medicaid through other offerings. We have no plans to sell our products internationally, so we believe that the most favored nation pricing won't be applicable to us. Our focus is on rare and ultra-rare diseases, which makes our situation quite distinct from typical pharmaceuticals.

And our next question coming from the line of Swayampakula Ramakanth from H.C. Wainwright.

This is RK from H.C. Wainwright. So I know you have had more experience with the relaunch of Increlex compared to Galzin. But, in general, what's the feedback from the sales force on Galzin? Anything anecdotally you can tell us about how the relaunch is going and what the expectations are internally for adoption during 2025?

Galzin is a crucial product for our company, and we aim to establish ourselves as a significant player in the Wilson disease market. Besides Galzin, we have the ET-700 product, an extended-release version, for which we anticipate clinical trial results in January. This small study is expected to demonstrate similar efficacy to the thrice-daily dosing, but with potentially fewer side effects. The extended-release version represents a major opportunity for us. Galzin has been beneficial for patients, especially since we have resolved previous supply issues, eliminated co-pays, and ensured fast overnight shipping. We expect this product to generate considerable revenue in the upcoming quarters, as patient adoption has been progressing well, with new patients transitioning from over-the-counter options and compounded medications due to past barriers such as high co-pays. We have removed these obstacles and are also building strong relationships with the Wilson Disease Foundation and leading prescribers in the U.S. to better understand how we can support patients effectively.

Do you happen to have the current patient numbers using Galzin, or do we need to wait for the next update?

I think for the next update, we'll provide patient numbers because it's still in the transition period, but I can tell you that it is going better than expected, and I'm very pleased with the launch and the work that our Chief Commercial Officer, Ipek, has done with the organization. We have a dedicated sales team in that area just like we have for our other endocrinology products.

Perfect. A quick question for Jim. I noticed an increase in the Medicaid rebates and receivables in the cash flow statement. Can you explain what is driving those numbers and how stable they are?

Sure. Let's begin with the receivables. There was a significant increase, largely due to normal operating activities and the addition of Increlex. We discussed the substantial impact from Medicaid related to this product relaunch, resulting in a notable rise in Increlex receivables. Regarding licensing revenue, although we recognized only $1.8 million from the Esteve licensing deal in the first quarter, there is a receivable payment of $4.3 million that we have not yet received. Consequently, a major portion of the $5.8 million increase in receivables was attributed to licensing revenue, while the remainder stemmed from Increlex sales. On the Medicaid front, the rise in liability was primarily driven by Increlex and its relaunch. Overall, the increased liability is typical, but it's important to note that we have a traditional patient mix in Increlex, which leads to higher dollar amounts for that product.

Okay, thanks. Thanks for that clarification. Appreciate you taking the question folks.

Thank you. And there are no further questions in the queue at this time. Ladies and gentlemen, this concludes today's conference call. Thank you all for your participation and you may now disconnect.