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DATE

Wednesday, March 25, 2026 at 4:30 p.m. ET

CALL PARTICIPANTS

  • President and Chief Executive Officer — Helen Sabzevari
  • Chief Commercial Officer — Phil Tennant
  • Chief Financial Officer — Harry Thomasian
  • Chief Operating Officer — Rutul Shah

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TAKEAWAYS

  • Net product revenue -- $3.4 million was recorded in fiscal Q4, representing the initiation of commercial shipments of Papzimius in November.
  • Projected revenue -- Management expects fiscal Q1 revenue to exceed $18 million, with CEO Sabzevari stating, "we expect revenues in Q1 to exceed $18,000,000."
  • Annual revenue -- $9.7 million for fiscal 2025, up 149% from $3.2 million in fiscal 2024, driven primarily by the Papzimius launch.
  • Papzimius label -- Received full FDA approval for adult RRP with "no restriction based on the number of prior surgeries," reflecting broad inclusion criteria.
  • Payer coverage -- As of late March, approximately 215 million insured lives are covered in the U.S., including nearly all major payers and fee-for-service Medicare and Medicaid; approximately 90% of U.S. insured lives now have access.
  • Patient uptake -- Over 300 patients are enrolled in the Precigen patient support hub, up from over 200 in mid-January; patient numbers continue to increase.
  • Payer mix -- The current U.S. channel mix consists of 60%-65% commercial payers, with the remainder comprised of Medicare and Medicaid.
  • Gross-to-net -- CFO Thomasian stated, "We anticipate the gross-to-net will be in the high teens, low twenties," and initial results to date are consistent with this guidance.
  • Operating expenses -- Research and development expenses decreased by $11.7 million, or 22.1%, compared to fiscal 2024, primarily due to prior pipeline prioritization and reclassification of manufacturing costs post-approval.
  • Selling, general, and administrative expenses -- Increased by $28.8 million, or 69.8%, compared to fiscal 2024, with $27.3 million attributed to commercial activity for the Papzimius launch.
  • Net loss -- Attributable to common shareholders was $429.6 million, or $1.37 per share, for fiscal 2025, including $318.5 million, or $1.02 per share, of noncash charges from preferred stock warrants and conversions; management stated, "such items will not recur in the future."
  • Cash position -- $100.4 million in cash, cash equivalents, and investments as of year-end; CFO Thomasian said management believes these funds plus anticipated sales "will fund operations through cash flow breakeven, which we currently expect to occur by the 2026."
  • J code implementation -- A permanent J code for Papzimius will take effect April 1, expected to streamline benefits verification, prior authorization, and billing.
  • Geographical expansion -- The EMA has validated Precigen's marketing authorization application for Papzimius in Europe, and "positive feedback" is being received from European clinical leaders.
  • Pediatric expansion -- Plans are in place to commence a clinical trial for Papzimius in pediatric RRP in Q4 2026.
  • Pipeline update -- PRGN-2009, leveraging AdenoVerse technology, is under evaluation in multiple Phase 2 trials targeting HPV16/18-related cancers in combination with pembrolizumab.

SUMMARY

Precigen (PGEN 4.56%) reported an accelerated commercial launch of Papzimius, initiating sales in November with rapid adoption in both major centers and community practices. Management attributes full FDA approval with a broad adult RRP label, robust efficacy, and expanded payer coverage to the observed launch momentum. Over 90% of U.S. insured lives now have access to Papzimius, with the permanent J code effective April 1 expected to further streamline reimbursement and uptake. Operating expenditures reflect a strategic shift from research and development to commercialization, while the reported net loss is heavily influenced by nonrecurring, noncash warrant-related charges. Clinical expansion efforts target both geographic markets through EMA submission and new indications via pediatric and cancer pipeline trials.

  • CFO Thomasian stated that fiscal 2025 product revenue reflects only a partial quarter for Papzimius, as first sales began in November.
  • Chief Commercial Officer Tennant noted that institutions have flexibility in vial ordering, typically ordering single vials, with "very little stocking" reported at launch hospitals.
  • Patient conversion from both the Precigen support hub and external institutional hubs is contributing to treatment uptake, indicating multiple activation channels.
  • Cold chain logistics and just-in-time shipping solutions have been implemented to facilitate adoption of Papzimius in community practices lacking advanced storage infrastructure.
  • Management highlighted a consensus paper in Laryngoscope recommending Papzimius as the preferred first-line immunotherapy for adult RRP, supporting medical adoption across disease severity levels.

INDUSTRY GLOSSARY

  • J code: A permanent reimbursement billing code assigned by the Centers for Medicare & Medicaid Services (CMS) for drugs and biologics administered in outpatient settings, used to streamline insurance claims processing and payment.
  • Gross-to-net: The difference between a product's gross sales and net sales, accounting for revenue deductions such as rebates, discounts, chargebacks, and payer allowances.
  • Hub: A centralized support service coordinating patient access, benefits verification, prior authorization, and onboarding for specialty therapies.
  • RRP (Recurrent Respiratory Papillomatosis): A rare disease caused by human papillomavirus (HPV) leading to benign tumors in the airways, requiring repeated medical intervention.
  • AdenoVerse: Precigen’s proprietary adenovector technology platform used for gene delivery in immunotherapy products.

Full Conference Call Transcript

Helen Sabzevari: Thank you, Steven. I would like to extend a warm welcome to all those joining us for our update call today. In the short time since the early and full approval of Pap smear in August, the standard of care first-line treatment for adults are our peak We are seeing a tremendous progress with the first ever therapeutic commercial launch in RRP. These substantial advancements constitute a pivotal milestone for all stakeholders impacted by RRP including patients, their families, healthcare providers, and the RRP Foundation. As we commenced commercial sales in Q4, Precigen, Inc. has completed the transformation from an R and D company to a product revenue-generating commercial biotech company.

Phil will detail the specifics of the launch progress later in the call, but I wanted to highlight the accelerating trajectory we are seeing in the revenue growth. We do not plan to provide the revenue guidance on a regular basis, but instead focus on indicators we believe are important for gauging progress of the launch trajectory from a long-term perspective. That said, as we are only a few days away from completion of Q1, which is the first full quarter of Papzimia's commercial sales, we think it is helpful to provide investors with color on the Pap smear itself ramp-up. As reported in our 10-K, net product revenue for Q4 2025 was $3,400,000 with shipments commencing in November.

As prescribers at major medical centers and community practices continue to add Pap smear to their practice, we are seeing strong momentum in Q1. As a result, based on the commercial activity to date, we expect revenues in Q1 to exceed $18,000,000. This is a clear sign of the enthusiasm we are seeing from patients and physicians alike, leading to a robust uptake in the therapy. I will now provide a brief recap on the reasons we believe we are seeing such a strong interest in Pap smear. Papzimias received full FDA approval with a broad label for adult RRP with no restriction based on the number of prior surgeries.

This reflects the truly transformative clinical data including unmatched efficacy, a strong and durable ongoing responses, and a pivotal study powered by prospectively defined primary endpoint of complete response rate. Thanks to its mechanism of action, Tapsinis also offers the potential for redosing if needed, which is being evaluated in the clinic now. With the full approval powered by unmatched efficacy, we have significantly raised the bar for any future competitor entering the adult RRT space. Let's examine the key facts which led to FDA's approval. Proximus directly addresses the root cause of RRP by eliciting a targeted immune response against HPV six and over 11.

To be clear, we enrolled and treated more severe RRP patients and achieved an unmatched complete response rate with an impressive durability of responses with more than three years of follow-up, which is echoed and appreciated by physicians in the field. It not only surpassed the highest statistical bar using the most rigorous efficacy endpoint ever evaluated in RRP but produced the strongest data demonstrated in the field to date. Given the underlying cause of RRP, these results readily extrapolate to less severe patients as reflected in the FDA's broad label approval for Pap smear. In contrast, extrapolating results from a less severe population to a more severe cases is far more challenging and less reliable.

What I just detailed has been supported by landmark consensus paper sponsored by the RRP Foundation, and authored by 16 leading U.S. physicians specializing in RRP, published in Laryngoscope, a top peer-reviewed journal in the field. The paper recommends Papsimians as the first immunotherapy which is the newest standard of care and preferred first-line treatment for adults with recurrent respiratory papillomatosis, or RRP. These developments represent a pivotal advancement for the RRP community prioritizing medical therapy over repeated interventions to improve patient's outcome. I will now turn the call over to Phil for details around our commercial launch. Phil?

Phil Tennant: Thank you, Helen, and hello, everyone. I am delighted to share the most recent highlights of our launch efforts with comments on Q4 results, but also bringing everyone up to speed on the exciting progress we are making with the PapSimius launch in Q1 of this year. As mentioned earlier, we made great progress in Q4 in setting the platform for accelerated brand uptake. This included continued progress in expanding payer coverage, further activation of accounts across the country, and the initial prescriptions for Papsenius. As we speak today, I can give you more granularity on some of the leading indicators of strong launch performance. Our patient numbers continue to grow.

As of JPMorgan in mid-January, we had over 200 patients in the Precigen, Inc. patient support hub. As of today, that number is well over 300, indicative of the pent-up demand for the new standard of care for adults with RRP. Payer coverage continues to expand. In early January, we had approximately 170,000,000 lives covered, which has now increased to approximately 215,000,000 including nearly all major payers across commercial, Medicare, and Medicaid. Including regular Medicare and Medicaid fee-for-service lives means that we now have approximately 90% of insured lives covered in the U.S., which is phenomenal progress for a rare disease drug like Pap smear.

Brand utilization is accelerating across the country in both the large institutions and academic centers as well as in the community setting. Pleasingly, we are seeing utilization across a range of patient severities, which speaks to the broad label of the brand. And finally, as Helen mentioned, the publication in January of the expert consensus paper clearly positioning patsymia as the first choice for adult patients with RRP is a significant statement of intent from the KOL community and a testament to the strong efficacy and safety profile of the drug. The significant increase in revenues anticipated in Q1 that Helen mentioned clearly shows how the healthcare system is embracing the first and only approved medicine to treat adult RRP.

We are very pleased with the momentum we are seeing and will, of course, provide final revenue numbers during our Q1 earnings call later next quarter. In terms of outlook, we expect these trends to continue. Assisted by the assignment of the permanent J code from April 1, and supported by the continued durability of response that we are seeing in patients. We expect continued institutional activation as well as significant utilization within community practices. We look forward to sharing further progress with you at the Q1 call as we continue to drive this fundamental transition of a debilitating condition that has been surgically managed for over one hundred years into one that is now therapeutically managed.

I will now turn the call over to Harry for an overview of our financials. Harry?

Harry Thomasian: Thanks, Phil. We sure are exciting times for both Precigen, Inc. and the RRP community as a whole. I want to spend a couple of minutes discussing our results for the year ended 12/31/2025 and our financial position as of that date. Revenue for the year totaled $9,700,000 versus $3,200,000 in 2024, resulting in an increase of $5,800,000 or 149%. This increase was primarily driven by the commencement of Pepsimio's product revenue, which totaled $3,400,000 in 2025. It should be noted that the first sale of Pepsimios was recorded in November 2025, thus revenue for the year only reflects a partial first quarter of the Pepzymyos launch.

While speaking of revenue, I do want to reiterate that the 2026 is showing a tremendous ramp of Papzymyos revenue from the 2025. As Helen mentioned, based on our commercial activity to date, we expect revenue for 2026 will exceed $18,000,000. We are thrilled with the early launch results and encouraged by the launch trajectory. I also want to repeat that we do not plan on providing forward-looking revenue projections in the future.

Due to the timing of our year-end earnings call, being close to the first quarter end, which provides us an understanding of where we believe first quarter revenue is trending, we feel we can provide this guidance as a help to our investors' understanding of the Paximios launch trajectory. Continuing with expenses on our statement of operations. Research and development expenses decreased by $11,700,000, 22.1%, compared to the year ended 12/31/2024. The decrease was primarily driven by a $9,400,000 reduction in costs as a result of the strategic prioritization of the company's pipeline announced in 2024.

In addition, the company, upon FDA approval of Pepsimios, began classifying manufacturing-related costs to inventory, which ultimately will be recorded as costs of products and services when the related inventory is sold. Manufacturing costs related to Papsimios were recorded as research and development expenses prior to the FDA approval of Pepcimios. Selling, general, and administrative expenses increased by $28,800,000, or 69.8%, compared to the year ended 12/31/2024. This increase was primarily due to a $27,300,000 increase in costs incurred related to Pepsimio's commercial activities. Our net loss attributable to common shareholders was $429,600,000, or $1.37 per share, for the year ended 12/31/2025. These results include two large noncash items related to our preferred stock related warrants in 2025.

In 2025, the preferred stock was converted to common shares and the warrants were reclassified to equity. Thus, such items will not recur in the future. These noncash items hold $318,500,000, or $1.02 per share, of the $1.37 loss per share reported. Turning to the balance sheet. We ended the year with $100,400,000 of cash, cash equivalents, and investments. Based on our current projected business plans, we believe that these funds plus anticipated cash to be received from Pepsimio sales will fund operations through cash flow breakeven, which we currently expect to occur by the 2026.

For more information on our financial statements, I refer you to today's press release, and our 10-Ks which were filed with the SEC after market closed this afternoon. With that, I would like to turn it back to Dr. Sabzevari.

Helen Sabzevari: Thank you, Harry. I wanted to briefly provide other portfolio updates. Are actively advancing plans to commence a papillomial clinical trial in pediatric RRP population. We hope to have this initiated in the fourth quarter of this year. Additionally, we have begun efforts for geographic expansion. This is seen with the validation of the marketing authorization application to the EMA for Papsenia. Of note, we are seeing positive feedback from thought leaders in Europe on the prospects of a new medical standard of care. To that end, we are also pleased to announce that we will be sponsoring activities around the third annual RRP Awareness Day in June.

This will present another opportunity to help spread global awareness of this disease and the newest standard of care for its treatment. Other than capsidium, we continue to advance the platform with PRGN-two thousand and nine. This program utilizes the same adenoverse technology as pap smears. PRGN two thousand and nine is designed to activate the immune system to recognize and target HPV sixteen and eighteen, the root cause of HPV-associated cancers such as head and neck and cervical cancers that represent almost five percent of all global cancer. Patients. PRGN-two thousand and nine is currently being investigated in combination with pembro in multiple Phase two clinical trials in head and neck cervical cancer.

I am very excited about the prospects of this program and look forward to updating you in our upcoming Q. With that, I will now turn the call over to the operator for Q and A. Operator?

Operator: Thank you. Ladies and gentlemen, we will now open for questions. Should you have a question, please press the star key followed by the number one on your touch-tone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press the star key followed by the number two. One moment please while we assemble the queue. Your first question comes from Jason Butler of Citizens Bank. Your line is now open.

Jason Butler: Hi, thanks for taking the questions and congrats on the progress. Specifically, really thanks for giving the 1Q guidance. That is really helpful. Two questions for me. First, can you help us think about how you guys are planning the flow of patients from the hub to receiving reimbursed drug? Do you expect the majority of the 300 patients to ultimately get reimbursed treatment? And then what kind of time frame, understanding it is still early in the launch. And then second question, are you now at the point where patients are starting to get their second dose in the treatment regimen?

And can you give us any color about, like, you know, the proportion of patients that are that are eligible or are getting the second treatment? Thank you.

Helen Sabzevari: Hi, Jason. Thank you for the questions. And definitely, I think for the first question, I am going to defer it to Phil. Phil, maybe you can go through that.

Phil Tennant: Yeah. Well, obviously hi, Jason. We are obviously very pleased about the continued recruitment of patients into our hub. And just a reminder that is not the complete picture because we are seeing significant conversion of patients from our hub, but we are also seeing utilization from patients that are not in our hub as we have talked about previously. That is not the complete picture, the Precigen, Inc. support hub. So we are pleased that we are seeing patients being treated from both sources. In terms of that conversion speed, you know, we clearly the patients that are in our hub, that is a clear intent from the market that those patients are in need of treatment.

And we want to make sure that the vast majority, if not all of those patients are converted onto treatment. That is obviously our goal. In terms of the speed at which that is being that will happen and the patients will be converted, it really will vary by patient by patient and institution by institution. What we have done in the fourth quarter and continue to do in the first quarter get all the pieces of the puzzle in place. In particular, the payer coverage and obviously the identification of patients. Now it is really up to the IDNs to continue to be activated.

And once you have all of those things in place, the actual prior authorization with the payer should only take a matter of weeks. But really it is about the activation of the IDNs, and that is, for some patients, the rate-limiting step. But we have made great progress throughout Q4 and into Q1 in terms of converting those patients. And, Jason, maybe I can add further to what Phil mentioned.

Helen Sabzevari: Clearly, the patients keep coming in, and you are absolutely correct that they are converted. And but this is a continuous process for the hub. It is not a onetime thing that the patient comes as patients get basically prepped and treated, then new patients are entering to our hub. But it is very important to stress what Phil mentioned. That our hub is not the only source for the patients. There are a number of other hubs that, for instance, large centers, they have their own hubs. And they can be entering, and we have seen that for the enrollment.

In regard to the second question that you had as far as have the patient moved from the first treatment to second, absolutely. The patients are moving through all their treatments, and some of them that have started last year, for instance, they have moved through their last treatments. So this is, as I mentioned, is a very fluid momentum in the hub that patients enter. They get prepped, and Phil can speak further to that. I was just gonna make another point about the hub because, obviously, we mentioned

Phil Tennant: we will have the permanent J code as of April 1, and that will streamline and smooth the whole process by which patients pass through from our benefit verification institutional readiness, and then prior authorization with the payers. So that is gonna be a help as we go into Q2.

Jason Butler: Great. Thanks again and congrats again on the quarter.

Helen Sabzevari: Thank you.

Operator: Your next question comes from Swayampakula Ramakanth of H.C. Wainwright. Please go ahead.

Swayampakula Ramakanth: Thank you. Good afternoon, Helen and team. It is great to notice that not only the launch is going well, but certainly this year this year or this quarter, actually has ramped up quite bit. Having said that, just trying to understand a little bit more of the of the nuances. Especially with the you know, with the flow of patients through the through the hub into the into the conversion. And, also, how is the J code you know, how is that helping out in terms of adding more patients? You know, not only in the in the in this quarter, but also getting them up for the next quarter.

I would think that it takes a certain amount of time between the patient coming into the into the clinic and then getting the therapy.

Phil Tennant: Okay. Thanks for the question. So it is Phil here. The J code really does simplify the workflow and billing process from both provider perspective and a payer perspective. We are looking at some analogs of rare disease launches that some payers have been hesitant to take on the financial risk and you know that accords with our experience. But now with the permanent J code, that sort of disappears, and it is a streamlining of the administrative process and it increases certainty and, of course, speed at which these patients should be processed.

Helen Sabzevari: RK. This is not specific to Papsenius. This is for any drug that is out there, including all the checkpoint inhibitors. There is always that transition. And then it would be the streamlining and making it easier on some of the centers to do that. And I think this is the trajectory that we see which we are extremely excited to go from Q4 to Q1 exceeding, as we have said, $18,000,000. It is very important in the preparation that the team did at the early onset of approval after approval. And really, appreciating the number of the payers that the team got in the first in beginning of the fourth quarter.

Because as we all know, for patients entering to the hub and even in the other hubs, the reality of the situation stands with the payers, making sure that all of the elements for getting treated is there, and big part of that was the payers' approval. And now with more than 200,000,000 lives covered, which is an amazing amount. This is why you are seeing the trajectory of very fast acceleration from the Q4 to Q1 going from where we were in Q4 to excess of $18,000,000 in Q1.

And I think this is quite exciting, and we are having now all of the components of the commercialization in place the payers, the hubs, the institute coming in, and finally, the J code. This just makes it for the next trajectory as we move to the Q1, Q2, and Q3, and Q4.

Swayampakula Ramakanth: Perfect. No. I certainly sense the excitement and what you are experiencing. Thinking about the MAA and also the European potentially, European launch. You know, in terms of your discussions with the with the regulatory body there, you know, where are things now? And do you do you expect the approval you know, in the '27, or should we assume it is going to be later? And also, in terms of the launch, you know, so should we send the Phil back to Europe and, you know, get that launch going over there?

Helen Sabzevari: Yeah. So as, you know, we had submitted our EMA application as we shared with the market last year. And it has been the application is under review. So we are excited about that. And I think from for instance, what we are receiving from physicians across Europe. And, we just had a presentation at UroGen, which is one of the major conferences in the field of HPV and especially on RRP. There has been a tremendous enthusiasm from the physicians, really looking forward to having this first line and a standard of care of therapy, which is now at the U.S., also to be applied in Europe.

So we are looking forward, obviously, as the CLA undergoing review in Europe, and we obviously will not it will be I think, your assumption around the time. It is it perhaps is a good guess, but we will leave it to the European authorities when they have decision and they communicate we will definitely share with market. So we look forward to that as well. Thank you. Thanks for taking my questions. Sure.

Operator: Your next question comes from Brian Cheng of JPMorgan. Please go ahead.

Brian Cheng: Hey, guys. Thanks for taking our questions this afternoon. A couple from us. Can you clarify on the $18,000,000 revenue guidance here? Is the $18,000,000 guidance inclusive of collaboration and service revenues? In addition of Pepsi news product revenue. It is $18 only referring to Pepsi meals product revenue?

Harry Thomasian: Hey, Brian. This is Harry. Good to talk to you. Yeah, that $18,000,000 which you said, we expect revenue to exceed includes only FAFSAM. No other

Brian Cheng: And can you talk about the $18,000,000 projection? Is there a stocking effect that accounts into the projection compared to patients that have received Pepsi meals? And then maybe just on top of that, can you talk about the number of doctors that are now actively prescribing a Pepsi and how effective is the conversion rate from your patient hub compared to the academic hub? Yes. Thanks, Brian.

Phil Tennant: In terms of the stocking, so there is very little stocking that we see. We do see a range of orders in terms of the vials that are ordered. Remember, each institution can order one vial at a time, or they can do all four vials at a time. We do see some fours and twos, but predominantly, it is ones, but we do see a mix. So but very little stocking as such from the institutions. In terms of the number of doctors, I mean, obviously, the number of prescribers is increasing and we have all for all the reasons that we have talked about and we see that increasing momentum as we hit in Q1.

We have obviously still got more work to do and more prescribers to bring on board, but we are very excited by the response that we are getting from the institutions and the prescribers. And that number is increasing consistently.

Helen Sabzevari: Yeah. And maybe what I can add, Brian, to this is clearly the consensus paper is really has now make it very clear that pap smear is the first and only standard of care for RRP and for all adult RRP, which is actually very interesting because we see the enrollment of the patient or treatment of the patient across the severity of the disease. And this is another important point that we have said according to the label that was given to Pap smear which is for broad RRP patients regardless of severity, and that is exactly what we are seeing as far as the treatment is concerned and how the physicians are taking up this treatment.

Phil Tennant: Hey, Brian. Just your question on hub versus non hub. I mean, what I would say there is that we are seeing conversion from both sides. And, you know, patients that are in our hub and patients who are not in our hub, and we are seeing, you know, a significant contribution from both.

Brian Cheng: Thank you.

Operator: Your next question comes from Michael Dufour of Evercore. Please go ahead.

Michael Dufour: Hi, guys. Thanks so much for taking my questions and congrats on the obvious products progress you have had in the launch. Two questions for me. You called out community uptake as a pleasant surprise, like I know it is early, but as the community channel develops, what have you learned about what different differentiates community sites that become repeat prescribers versus those that adopt more of a wait-and-see approach? And I a follow-up.

Phil Tennant: Yes. Thanks, Michael. It is Phil here. Look, we always had community in our sites. That was an obvious part of our strategy. I think what we saw when we were soon out of the blocks after the approval was the extreme interest from the community in utilizing Atsymeos. And know, we have got various mechanisms in place so that we can for a low cost, provide them all the logistics they need to use an uptake the drug. So we actually think the community is gonna be a significant contributor to our overall business as we go forward. For those reasons. And the initial experience is very positive.

Rutul Shah: And I can add this is Rutto, Mike. I can add to it. As Phil pointed out, what we have done is in addition to our end-to-end cold chain validated logistics in place, as Phil pointed out, we have multiple solutions now available for community practices who may not have cold chain storage to acquire them at very low cost as well as just-in-time shipments to essentially completely avoid need for the cold storage. So that is also aiding in our efforts to get them on board and continue to prescribe, Papadimias.

Michael Dufour: I see. Very helpful. And my last questions are, if there is any color you could add on the current channel mix of U.S. payers and how we should think about gross-to-net cadence for the balance of the year? Thanks.

Phil Tennant: Yes. I will let Harry talk to gross-to-net. In terms of the payer mix, it is pretty much as we expected and we communicated prior to launch, which was about 60% to 65% commercial. And that is indeed what we are saying. Then the rest Medicare, Medicaid and it is on the government channel. So, yeah, 65% or so is commercial.

Harry Thomasian: Hey, Mike. This is Harry. On the gross-to-net we have historically guided and we continue to guide. We anticipate the gross-to-net will be in the high teens, low twenties. And we have seen those play out as we have seen revenue to date.

Michael Dufour: Excellent. Thank you.

Operator: There are no further questions at this time. I will now turn the call back over to Dr. Sabzevari. Please continue.

Helen Sabzevari: Thank you again for joining us for our year-end 2025 update call. As you can see, we are making tremendous progress on the pepsinius commercial launch. We are looking forward to providing the full Q1 results and detailed commercial progress in May. Have a good evening.

Operator: Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect.