Operator: Our next question comes from Umer Raffat with Evercore.
Michael DiFiore: This is Mike DiFiore in for Umer. I just want to ask on the recent deal regarding your acquiring a share of Ionis’ Spinraza royalties. What are your view with the long-term prospects of Spinraza, especially given the fact that U.S. sales have struggled although BIB does note a possible ex-U.S. resiliency and how much meaningful contribution to Univision for high-dose Spinraza as well as the adult SMA opportunity?
Pablo Legorreta: Sure. Marshall?
Marshall Urist: Yes. Thanks for the question, Mike. I think overall, the SMA is a market we’ve followed for years and I think looked at all of the major medicines there. Spinraza being first-in-class, first-in-disease has a very important role in the treatment paradigm for patients, their families for physicians. And when we were doing diligence for Ionis, we took a fresh perspective there and definitely see a meaningful role for Spinraza into the future on — in the management of SMA around the world. So that was really our underlying view that supported the Ionis the Spinraza portion of the Ionis’ investment and given the unmet need for these patients, these patients do need options. That’s why we’re really happy to be — to participate in Evrysdi as well as well as Spinraza.
On the other two, on the high-dose Spinraza as well as adults. Whenever we make an investment, we think about all of the scenarios and the high dose data and continued expansion into adults and we could see more competition from Zolgensma, the gene therapy in adults as well in the future. And I think those were all things we contemplated. Although I would just remind you, our royalty is only on sales up to $1.5 billion every year. So some of these — some of these things, high dose, et cetera, might have less of an impact on the portion of sales that we participate in because of the way that it’s structured. But regardless, we always take a very scenario-based approach and think about how all of these can impact our investment and we feel very happy to be — to have Spinraza as part of the portfolio.
Pablo Legorreta: And maybe just to add, if you look at the total capital deployed and just internally on how we allocated that $500 million, we’re very comfortable with different scenarios materializing on Spinraza, delivering our target returns for approved products which are high single digit, low double digit. So that is obviously a very important aspect of this transaction. And then if you look at the capital that we allocated to the really exciting Lp(a) component of the transaction, that should provide very significant upside for us on this new class. So again, we approach this investment with high — a lot of discipline and really making sure that each investment on its own was going to deliver attractive returns, unlevered returns. Obviously, Spinraza also has this characteristic that we can lever that with a very low cost of debt which enhances dramatically the returns for us.
Operator: Our next question comes from Ashwani Verma with UBS.
Ashwani Verma: I have two. The first one on just the cystic fibrosis franchise. So the vanza triplet , the Phase III SKYLINE study is they’re expected to complete by the end of this year. Just curious like what are your thoughts on how the profile can stack up against Trikafta? And is it possible that the arbitration process for the royalty on the triplet can get started with the Phase III top line? Or is that something that could only begin with the product launches? Second question, so it’s — like after a little bit of a while that the biotech market has started to open up a little bit since the start of the year. Just curious if you think that is going to impact your deal activity this year?
Pablo Legorreta: Sure. Terry, do you want to take the first part of the question and maybe, Chris, the second one?
