Joe Ciaffoni: Next up in queue please.
Operator: Thank you. Tim Lugo was on the line.
Tim Lugo: Hi, team. Sorry about that. I’ll take everyone to my thought as well, just getting over something. I was talking about business development. It sounds like there are a couple of deals that you’re looking at. I think you mentioned $100 million in product revenue. Can you just talk about kind of the profile of the deals you’re looking for in terms of margins as well as overall in the sales force?
Joe Ciaffoni: Yes, sure. So thanks, Tim. And let me apologize everyone. Our systems here went down. So I appreciate you hanging in there with us. Look, from a business development perspective, – because we believe the current market conditions are conducive to getting a deal done, we’re being agile in terms of what potential therapeutic area and what we’re focused on is, number one, differentiated assets. We think that’s critical in order to be able to get reimbursement, which is critical to commercial success. From a peak sales perspective, we’re looking for assets that have greater than $150 million of peak sales potential and then assets that have runway into the 2030s. And you’re correct, Tim, we are very focused and active right now with regards to our business development efforts. And Colleen maybe you can give a perspective in terms of how we think about it from a size and capacity perspective.
Colleen Tupper: Yes. Thanks for the question, Tim. What I’d add on to that from a size and capacity perspective is we have flexibility with the strength of our balance sheet. As we stated previously, we would be comfortable for a commercial stage asset to go up to 4x net debt to adjusted EBITDA. And we’re generally looking at assets that the market caps of $1 billion or lower, and we would be looking for something that potentially not accretive in the first year, but is very rapidly accretive in year 2, definitely by year 3. Great to hear.
Tim Lugo: Thank you.
Colleen Tupper: Thank you.
Operator: Our next question comes from Brandon Folkes with Cantor Fitzgerald. Please state your question.
Brandon Folkes: Hi, thanks for taking my question. So maybe just a few from me. Congratulations firstly on the gross to net performance in the quarter. Can you just talk about that first quarter gross-to-net performance, though, in light of your expectations and in light of the guidance? Obviously, you reiterated guidance on the gross to net side today. Should we expect one or two quarters, maybe 2Q, 3Q sort of outside of that gross to net range and kind of averaging back into it? Or is it just sort of conservatism at this stage, reiterating that guidance range? So maybe we will start there.
Colleen Tupper: Thanks, Brandon. Great question. No, we’re still expecting from a full year perspective to be in the 61% to the 63% range with the portion of business for Xtampza that’s weighted to Medicare Park D, we will see greatest impact of coverage gap in the second and third quarter. And then we will have that bit of sequential improvement in the fourth quarter, but it won’t be as good. We wouldn’t expect it to be as good as what we saw in the first quarter. And so what we see is the typical seasonality associated with the coverage gap. And for the full year, you’ll see that net out in the $61 million to $63 million range.
