Operator: Thank you. At this time, we will conduct a question-and-answer session. [Operator Instructions] Andrew with Jefferies. Go ahead, Andrew.
Andrew Tsai: Hey thanks. Good afternoon. Thanks for taking my questions. So, congrats on the progress too. First one is on Calgary. We’re one month into Q2, would you expect the acceleration in TRx scripts this quarter? Or should the quarter-over-quarter growth be relatively similar to what we saw in Q1 and then Q3 is when we see the real acceleration? And I’m just curious where you got — have you guys been impacted by the Change Healthcare cybersecurity attacks as well?
Jack Khattar: Yes. Hi Andrew. If you look at the first quarter of 2024 sequentially versus the end of the fourth quarter of last year, our prescriptions grew by about 2% if I’m not mistaken 2.5% we are already seeing in the second quarter. If you look at sequential growth quarter to date the second quarter versus the first quarter, sequential growth is about 11% or 10%. So, to answer your question yes it looks like it is starting to pick up the Q1 kind of phenomena which typically maybe in all metals down a lot of activity and so forth and insurance issues and so forth. So, we’re looking at acceleration in the second quarter already. Certainly with the back-to-school season, we expect that to be healthier. And I mean that remains to be seen.
But clearly as to how strong the back-to-school season third quarter versus second quarter or third quarter versus the year before. Regarding the second question the answer is no we were not impacted by the change healthcare issue. We had other providers that could step in and continue to provide service for our customers.
Andrew Tsai: Okay. And then on SG&A 17 with the — later this month we’ll have the interim data set. How much follow-up data should we be expecting on all 40 patients? And maybe talk to us what kind of seizure freedom rates existing epilepsy drug show and whether you think eight one seven can surpass or be higher than those?
Jack Khattar: Yes. I mean the first question as far as how much more data follow-up I mean as we said in our press release we’re going to be bored — with my remarks we’re going to report on somewhere around 40 patients. We still have few patients still in the study. So one in the second half of this year when we report the full study. We would have a handful of more patients to report on so we can finalize all the full dataset to report on. Regarding the second question as far as seizure freedom rates, and there’s so many different definitions that people use regarding seizure freedom. But I mean typically I’ll give you one example on Oxtellar XR if I remember some of the data we have at one point around 11% seizure freedom which was very solid in affordable product for example Oxtellar XR.
There are so many agents out there with a whole host of ranges of seizure freedom. Clearly anything above the 10% typically is a good number especially for those who are refractory patients and in the space 33% to 40% of patients are refractory. So depends on are you getting seizure freedom within one patient population if you’re taking a patient from those who are refractory and you’re turning them to be seizure free, that is incredible even if it’s 5%. But if you’re taking people hard from the beginning started getting treated with epilepsy drug and then you turn them seizure-free early on in their disease and they had not progressed as badly that probably is not as impressive. So there’s a lot of variety of how people measure them and in what patient population.
Andrew Tsai: Got it. Got it. And then last quick question is just bigger picture, in general how much firepower do you guys think you have in terms of BD or M&A? Thank you.
Jack Khattar: [indiscernible] It is a very simplistic way. I mean we could probably do some transactions in the $500 million to $1 billion. It could get higher if we use equity. So it all depends on the situation itself. As far as the acquisition candidates what profile that company has. The Z company come with assets that generate significant cash flows than you’re able to leverage against these cash flows and maybe it will allow you to go to a bigger size transaction. And if it is transformative kind of transaction that equity could become part of the mix as well as for paying for that acquisition. So I think a $500 million to $1 billion to $2 billion there’s a fair range. I know it’s a wide range but it all depends on the situation we’re dealing with.
Andrew Tsai: Makes sense. Thank you again.
Operator: One moment for our next question. And our next question comes from David with Piper Sandler. Go ahead David.
Unidentified Analyst: Thanks. Just have a couple. First on Qelbree. So you seem like you’re doing nicely in terms of getting to the gross to net our target in the low to mid-50s. I guess just given where the already is in 1Q given that it’s seasonally tougher is it possible that the gross to net it could dip below 50% as the year progresses? Just wanted you to talk to that if you can. And then secondly on SPN-830, can you elaborate on the issue in the CRL or maybe not issue what was raised in the CRL regarding the master file for the infusion device? And is there anything that you’ve learned since the CRL is used interfaced with the manufacturer that you can share with us. And so that’s number two. And then lastly on 817, can you just remind us of the path forward and beyond this Phase 2a. I believe the Phase 2b is in the works. So talk to the design of that study. Thanks.
Jack Khattar: Thanks. Yes sure. First question on Qelbree and gross-to-net, the reason we said for the full year we remain to target 50% to 55% is because quarter-to-quarter, you’re absolutely right, typically gross-to-net improves. And if in the first quarter we had a little bit better or we are in a good place to start with, there is nothing but to improve from here. The only caveat to this sometimes we see quarter-to-quarter fluctuations, some of which are unexpected or unknown like a high return or something that could come in. So that’s not anything we’re trying to be guarded against everything else being equal. Let me put it this way. Yes, there is a potential that we may end the year on the shorter end or the lower end of that range if that makes sense.
