Richard Francis: Well thank you. I apologize Mr. Nate but thank you for asking the question. I’ll hand over the AUSTEDO question to Sven, you can give a bit more detail on that.
Sven Dethlefs : Yes, thanks for the question. So XR off-take is strong. We have a higher share actually in the total business than the 10% that you mentioned. So far, we get one about one third of our new patient starts on AUSTEDO XR and the other two thirds on B and D of course that’s an annualized figure. It’s now ramping up that XR becomes much, much more prominence in new patient starts. And the sources of patients in itself for these patient starts are around about half of them are naive patients. They start neuron therapy for a BMA2 inhibitor, and the other half come either from BID switches, so from AUSTEDO BID, or from Ingrezza or tetrabenazine. So here, what is in currency for us is that we have a significant number of new prescribers that have never prescribed AUSTEDO that now start prescribing AUSTEDO XR because they value the convenience of a once-daily formulation.
And I think that’s very good for us because that is a market segment that we could not access before in the absence of a once-daily formulation. So for that reason here, I think we are right on track in making AUSTEDO continuous growth driver for our innovative business.
Richard Francis: Thank you, Sven. And to your second question about Teva api and guidance on EBITDA, both past and present and future, we are not giving any to level up detail on EBITDA for Teva api at this moment.
Operator: Our next question comes from Glen Santangelo from Jefferies.
Glen Santangelo: Oh, yeah. Thanks for taking my questions. Just two quick ones for me. Obviously, with so much focus on the innovative pipeline, generics often get overlooked. I mean, Richard, it seems like the generic business had a great quarter, particularly in North America. The trend seems to be getting a little bit stronger. I was wondering if you could just sort of comment on the competitive and pricing dynamics that may be driving that trend. And then secondly, as it relates to the Alvotech partnership, the company made an additional investment there in the wake of a number of CRLs right more recently on [inaudible]. Could you give us an update on that relationship and the biosimilar pipeline as it relates to that Alvotech partnership? Thanks.
Richard Francis: Thanks Glen. Thanks for the question. So we are pleased about the performance of our generics business. I think this is a journey in our strategy to make sure our generics business is a sustainable powerhouse. And within North America, we’ve obviously seen a strong quarter there. I think Eli did highlight that big contributed to that was Revlimid. What I would say about your sort of more general market conditions around more favorability and I’ve been consistent on this. I think to be the market conditions will change based on supply, demand and competition and that will be constant. And so as more people come into a market, the prices will go down because the competition will drive that. I don’t see those dynamics changing.
There will be quarters where the pricing pressure is less and there will be quarters where the pricing pressure is more. I think for our strategy to make sure we can be in control of that, we focus our R&D engine under Eric Hughes on making sure we deliver our generics, our complex generics on time and first to the market, more than we have done in the past. And that’s where we’ll drive value creation and will ensure ourselves against this volatility within the market. So I think that’s how we think about market going forward and how we think about making sure we stay competitive and have a sustainable business. With regard to Alvotech and the partnership, the relationship is actually very good. I mean, one of the things we did when we invested again into this partnership is, and I’ve said this before as well, Alvotech is very good when it comes to developing biosimilars.
Their R&D capability, I think we will have the best product on the market if we launch Humira both from a device point of view and a product profile interchangeability. They’re very good at that. What we’re doing is working even more closely with them to ensure that from a manufacturing capability we can help not only get through the FDA inspection, but also be able to deliver the volumes that we see would be necessary. And also think which are very capable of because we have 53 sites and we have roughly 30 FTA inspections a year so we do know what we do. But I think maybe to conclude the relationship is very strong. Our pipeline, we’ve expanded with them because we see their capability. We continue to build out our pipeline through partnerships and so you’ll see some announcements on that hopefully in the future because we do believe our strategy is to have a broad portfolio for domineering through partnerships and that allows us to go to the market with a portfolio play and also to ensure ourselves against the peaks and troughs that are associated with launching biosimilars one year and then maybe not having them the next.
So hopefully that answers your question Glen and I appreciate the call.
Operator: Our next question comes from David Amsellem of Piper Sandler.
David Amsellem: Hey, thanks. So a couple of high-level questions just on overall strategy. So with the upfront payment in hand from Sanofi, so you have a little more wiggle room here, I should say. And with that in mind, are you focused on assets in neuropsychiatry where you can leverage your commercial infrastructure that you have in place? Is that the top priority there? And then secondly, as it relates to biosims, just coming back to the [inaudible] getting out of that business, how do you think about your role in biosims going forward? I know what you’re saying in your comments, but is that something you could be opportunistic about going forward in terms of monetizing that business? Thank you.
Richard Francis: Thanks for the question, David. So starting with the basic thing, because our financial situation improves with the TL1A a deal in the $500 million upfront, how do we think about PD? So as I said, we are thinking about PD, we are active, we’re looking, we’ve hired Angus Grant, a seasoned professional, dare I say, legend in the industry who’s worked at innovative medicines all his life. And so we really have stepped up that and our capability around that and our focus on that. Now, yes, we are targeting CNS and immunology and within CNS, you do obviously psychiatry and neurology because we see the synergy play there with building a capability. In fact, in psychiatry, I think we’re seen as one of the leaders in psychiatry now.
