Eagle Pharmaceuticals - Q4 2022

Transcript

Operator (participant)

Good morning, everyone. My name is Todd, I'll be your conference operator. At this time, I'd like to welcome everyone to Eagle Pharmaceuticals fourth and full year 2022 financial results. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer period. At that time, if you have a question, please press star and one on your telephone keypad. As a reminder, this conference call is being recorded today, March 13th, 2022. It is now my pleasure to turn the floor over to Miss Lisa Wilson, Investor Relations for Eagle Pharmaceuticals. Please go ahead.

Lisa Wilson (Investor Relations Contact)

Thank you, Todd. Welcome to Eagle Pharmaceuticals fourth quarter and full year 2022 earnings call. This is Lisa Wilson, Investor Relations for Eagle Pharmaceuticals. With me on today's call are Eagle's President and Chief Executive Officer, Scott Tarriff, Chief Financial Officer, Brian Cahill, and Vice President of Medical Affairs, Dr. Mike Greenberg. This morning, Eagle issued a press release detailing its financial results for the three months and full year ended December 31, 2022. This press release and a webcast of this call can be accessed through the investor section of the Eagle website at eagleus.com. Before we get started, I would like to remind everyone that any statements made on today's conference call that express a belief, expectation, projection, forecast, anticipation, or intent regarding future events and the company's future performance may be considered forward-looking statements as defined by the Private Securities Litigation Reform Act.

These forward-looking statements are based on information available to Eagle Pharmaceuticals management as of today and involve risks and uncertainties, including those noted in this morning's press release and our filings with the SEC. Such forward-looking statements are not guarantees of future performance. Actual results may differ materially from those projected in the forward-looking statements. Eagle Pharmaceuticals specifically disclaims any intent or obligation to update these forward-looking statements except as required by law. A telephone replay will be available shortly after completion of this call. You'll find the dial-in information in today's press release. The archived webcast will be available for one year on our website at eagleus.com. For the benefit of those who may be listening to the replay or archived webcast, this call was held and recorded on March 13th, 2023.

Since then, Eagle may have made announcements related to the topics discussed, so please refer to the company's most recent press releases and SEC filings. We will be discussing non-GAAP financial measures during this conference call in addition to financial information prepared in accordance with U.S. GAAP. These non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. A description of these non-GAAP financial measures and reconciliations of these non-GAAP financial measures to their most comparable GAAP measures are set forth in our earnings press release available on our website at eagleus.com. I'll turn the call over to Eagle's President and CEO, Scott Tarriff.

Scott Tarriff (President and CEO)

Thank you, Lisa. Good morning, everyone, thank you for joining our call today. 2022 was an outstanding year for Eagle. Our adjusted non-GAAP earnings per diluted share was $7.79 for the full year 2022, compared with $1.68 adjusted non-GAAP earnings per diluted share posted in 2021, our previously best full year. We earned $132 million in adjusted non-GAAP EBITDA in 2022. This is a very significant achievement for a company of our size. This $7.79 more than triples last year's non-GAAP earnings per diluted share and came in at the top end of our expectations for 2022. The fourth quarter of 2022, our adjusted non-GAAP earnings per diluted share was $1.10, compared with $0.83 in the fourth quarter of the prior year.

Adjusted non-GAAP net income grew by 31.8% to $14.4 million in Q4 of 2022, up from $11 million in Q4 of 2021. Our earnings per share in the past few years have been strong, and we expect that to continue in 2023. It's not just that we tripled our adjusted non-GAAP earnings per diluted share year-over-year, it's how we did it. Let me point out once again that this was accomplished mostly organically. We have not raised any money through equity or debt finances in about seven years. In fact, we used almost $250 million since 2016 to buy back our stock through our Share Repurchase Program. In 2022, we also spent about $100 million combined in cash and Eagle shares to acquire Acacia Pharma and its two commercial acute care products, BARHEMSYS and BYFAVO.

We still have net cash and receivables after all of this. Our cash and cash equivalents is held almost entirely at JPMorgan in operating accounts, and we have outstanding $63.8 million of debt on our $150 million credit facility with JPMorgan. As of today, we hold less than $1 million in a small number of accounts at Silicon Valley Bank, with no individual account in excess of $250,000. Not only are we in very strong financial shape, but it places us in good position to acquire assets or companies. Eagle has successfully managed expenses and had strong profitability. We expect to earn $74 million-$80 million of adjusted non-GAAP EBITDA in 2023.

Assuming the mid-range of this 2023 guidance, this would represent a compound annual growth rate for the four-year period of 2020 to 2023 of 6%. As an organization, we are keenly focused on developing important products for the patients who need them. At the same time, we have tried to achieve this in a manner that creates profitability. I doubt our mindset will change in the near term. Let's discuss the strength of our year. Our fourth quarter 2022 gross margin reflects both the expiration of our 10% bendamustine royalty and the buydown of our PEMFEXY royalty. We expect these positive impacts to continue in 2023. I will point out that in the fourth quarter of 2022, we had just over $12 million of PEMFEXY net sales and exited the quarter with a 6% share of the U.S. market in community oncology.

We previously stated that we anticipated doubling that share to 12% by the end of the first quarter of 2023, and it continues to be our expectation as we have already captured 10% share through February. In 2022, PEMFEXY net sales reached $67 million. We expected net sales of PEMFEXY in 2023 will be higher than $67 million. As a reminder, in Q4 of 2022, we reduced future royalties on PEMFEXY profits in exchange for a one-time payment of $15 million to eliminate the royalty on the first $85 million of profit on PEMFEXY beginning October 1, 2022, and for a reduced royalty thereafter. Let me speak now to our bendamustine sales and profitability and provide an update on where we are thus far in the first quarter of 2023.

In 2022, we had year-over-year revenue growth in both BELRAPZO and TREAKISYM net revenues of 42% and 97% respectively, while BENDEKA declined. In total, our bendamustine franchise revenue grew in 2022 over 2021. As we have discussed many times, the bendamustine franchise faced competition for the first time on December 7, 2022. Eagle's strong fourth quarter of 2022 earnings reported today, and just discussed, obviously include those three weeks of competition in December. Based on IQVIA data through February 24, BENDEKA and BELRAPZO hold an 88% share of the U.S. bendamustine market, where historically those two products have held about a 90% share. We continue to believe that BENDEKA is a meaningfully superior oncology product for patients and healthcare providers compared to TREANDA or generic TREANDA, and that it will continue to maintain strong market share positions throughout 2023.

As we have been saying for some time, we expect BENDEKA and BELRAPZO to maintain approximately 75% of our gross profit in 2023 compared to 2022. In the nearly 90 days since competition entered the market, we can see that our products are holding up quite well relative to our forecast erosion to support our expectations. Let me also point out that we no longer pay the 10% royalty on our bendamustine products, a royalty obligation that came out of gross profits until it expired in Q4 of 2022 and had a lifetime cap. Turning now to the Acacia products, BARHEMSYS and BYFAVO.

Although still a small base, the nearly $1.5 million in combined sales of BARHEMSYS and BYFAVO in the second half of 2022 represents a doubling from Acacia's reported net sales of $722,000 for these two products in the second half of 2021. In 2022, sales for the two products included $1.2 million by Acacia prior to the closing of our acquisition of the company on June 8th, and $1.6 million by Eagle post-close. Keep in mind that Q1 of 2023 is the first quarter in which we have our full size and fully trained sales team. We are extremely encouraged and hopeful the growth trends will continue. Both products are patent protected until 2031.

Net sales of RYANODEX increased year-over-year by 19% for the full year of 2022. Vasopressin and PEMFEXY, our two new launches in 2022, generated $131 million combined in net sales in 2022. During the first quarter of 2023, we decided to exit the vasopressin market by discontinuing all related manufacturing and halting sales beyond the current inventory levels. This is our opportunity to proudly discuss our record year in 2022. The question on everybody's mind is what about 2023 and beyond?

Once again, as we have indicated in the past, we believe our product and pipeline opportunities are collectively strong with seven commercial products on the market and three exciting pipeline programs. Our guidance of $74 million-$80 million of adjusted non-GAAP EBITDA for full year 2023 would represent an historical record second to our record year for adjusted non-GAAP EBITDA in 2022. Taking a look even beyond 2023, as we have indicated in the past, Eagle desires to make an accretive acquisition for additional patent-protected assets to solidify our growth for several years. This brings us to our cash and balance sheet. We are being very selective, but we believe we have the ability to make a meaningful acquisition, one that we'd expect to potentially go a long way in positioning Eagle as a growth company for many years to come.

If we can accomplish this while we work towards our objectives for BARHEMSYS, excuse me, and BYFAVO, we believe it would have huge impact on our ability of future growth. It is our belief that our pipeline opportunities offer not only potentially first-in-class products, which could have significant impact on treatment options, but the potential market could possibly have dramatic impact on Eagle's size and value if successful. The significant pipeline opportunities include ENA-001, an investigational one-of-a-kind new chemical entity. It is an agnostic respiratory stimulant being developed by Enalare Therapeutics for the potential treatment of postoperative respiratory depression, community drug overdose, and apnea of prematurity, for which FDA granted orphan drug designation in Q4 2022.

As a reminder, we acquired approximately a 17% equity stake in Enalare in exchange for two upfront investments paid in August of 2022 and February of 2023. We have an option to purchase the rest of Enalare in the event specified milestones are achieved. CAL02, a novel first-in-class broad-spectrum anti-virulence agent for the treatment of severe community-acquired bacterial pneumonia, for which a global phase II study is underway with 276 expected patients and 120 centers expected in 22 countries. Our NDA for landiolol is under FDA review. The filing seeks approval for landiolol for the short-term reduction of ventricular rate in patients with supraventricular tachycardia, including atrial fibrillation and atrial flutter. We expect to have informative data re-readouts on Enalare and CAL02 in about a year or so.

In the meantime, in 2023, we are projected to use cash to support Enalare's ENA-001 through an additional equity investment and for CAL02 through R&D expense of about $35.5 million-$37.5 million combined. This does not include any cash that would be required in the event that Enalare achieves certain milestones or that we exercise our option to purchase the remaining shares of Enalare. As we transition into a diversified pharmaceutical company, we see two avenues open to us to meet this goal, clinical development and acquisitions. For now, we plan to balance both, acquire Acacia Pharma and hope to make an additional acquisition. We recognize that clinical development carries more risk, but with a potentially higher return.

To be clear, if we do not succeed with the CAL02 and Enalare clinical programs, we intend to add the cash we would have spent on development and any accompanying earnings back to the company and then concentrate on acquisitions. If we are successful, we believe our investments will be money extremely well spent. In summary, 2022 was an outstanding year for Eagle, and we believe 2023 is shaping up to be another very strong year. We hope to make a meaningful acquisition, focus our efforts on BARHEMSYS and BYFAVO to support the development of ENA-001, and work hard on advancing landiolol and CAL02 over the next year or so and see how those turn out. Well, with that, I'll turn the call over to Brian Cahill to discuss our fourth quarter and full year financials. Brian?

Brian Cahill (CFO)

Thank you, Scott. Good morning. In the fourth quarter of 2022, total revenue was $60.7 million compared to $42.3 million in Q4 of 2021. Primarily reflecting continued revenue from sales of vasopressin and PEMFEXY, which we launched in 2022, as well as the addition of BARHEMSYS and BYFAVO to our commercial portfolio. Full year 2022 revenue was $316.6 million compared to $171.5 million in 2021. Net product sales during the fourth quarter of 2022 were $37.2 million compared to $16.2 million in Q4 of 2021. Full year 2022 net product sales were $214.5 million compared to $65 million in 2021.

Vasopressin net product sales were $3.6 million, and PEMFEXY net product sales were $12.1 million in the fourth quarter of 2022. For the full year of 2022, vasopressin net product sales were $63.2 million, and PEMFEXY sales were $67.5 million. Regarding vasopressin, during the first quarter of 2023, we notified customers and the FDA of our decision to withdraw from the vasopressin market. Inventory on hand and in distribution channels is expected to be depleted by the end of the second quarter of 2023. BELRAPZO net product sales were $11 million in the fourth quarter of 2022, compared to $5.5 million in Q4 of 2021. For the full year, BELRAPZO net product sales totaled $33.7 million compared to $23.7 million in 2021.

Fourth quarter 2022, RYANODEX net product sales were $7.2 million compared to $6.1 million in Q4 of 2021. Full year 2022, net product sales of RYANODEX totaled $30.2 million compared to $25.3 million in 2021. Q4 2022 royalty revenue was $23 million compared to $26.2 million in the prior year quarter. Full year 2022 royalty revenue totaled $98.3 million compared to $106.5 million in 2021. Royalty revenue includes royalties earned on sales of BENDEKA in the U.S. and TREAKISYM in Japan. During 2022, we recorded $3.8 million of other revenue for a cumulative sales milestone on sales of TREAKISYM in Japan by our marketing partner, SymBio.

Gross margin was 67% in Q4 compared to 71% in the prior year quarter. This decrease was the result of the addition of product sales of vasopressin, PEMFEXY, BARHEMSYS, and BYFAVO to our portfolio, which contribute lower margin than historical revenue mix, which has been dominated by BENDEKA royalties. Compressing margin is the inclusion of amortization of intangible assets related to the newly acquired products and the reduction of the PEMFEXY buydown beginning on October 1st, 2022, which will continue going forward. On the expense front, R&D expenses were $7.2 million for the fourth quarter of 2022 compared to $3.8 million in the prior year quarter. This increase is largely attributable to CMC and clinical trial spend on our CAL02 program.

Excluding stock-based compensation and other non-cash and non-recurring items, fourth quarter, 2022 non-GAAP R&D expense was $6.6 million. Full year 2022 R&D expenses were $34.1 million compared to $51.3 million in 2021, primarily reflecting the non-recurrence of a $10 million upfront payment related to our license agreement with Combioxin for CAL02 and $5 million upfront payment related to our license agreement with AOP Orphan for landiolol. Lower headcount costs of $1.3 million and lower spend on vasopressin of $7.6 million. RYANODEX NDA Article 11 of $3.1 million and PEMFEXY of $2.2 million. This was partially offset by $10.7 million of CMC and clinical expenditure on our CAL02 program in 2022.

Excluding stock-based compensation and other non-cash items, adjusted non-GAAP R&D expense for 2022 was $31.5 million. SG&A expenses in the fourth quarter of 2022 were $24.1 million compared to $20.3 million in the fourth quarter of 2021. This increase was driven by higher headcount and marketing spend related to our newly acquired products, BARHEMSYS and BYFAVO, and PEMFEXY, which launched in February of 2022. Excluding stock-based compensation and other non-cash and non-recurring items, fourth quarter 2022 non-GAAP SG&A expense was $19.9 million. For the full year of 2022, SG&A expenses were $106.6 million compared to $75.3 million in 2021. This increase primarily reflects costs associated with the acquisition of Acacia, including severance expense and other deal costs.

Higher headcount and marketing spend related to our newly acquired products, BARHEMSYS and BYFAVO, and PEMFEXY, which launched in February of 2022. Excluding stock-based compensation and other non-cash items, adjusted non-GAAP SG&A expense for 2022 was $70 million. We expect our SG&A spend in 2023 on a non-GAAP basis to be between $68 million and $90 million. Net income for the fourth quarter of 2022 was $8.2 million or $0.63 per basic and $0.62 per diluted share, compared to net loss of $6.2 million or $0.48 per basic and diluted share in the prior year quarter.

For the full year 2022, net income totaled $35.6 million or $2.76 per basic and $2.73 per diluted share, compared to a net loss of $8.6 million or $0.66 per basic and diluted share in 2021. Adjusted non-GAAP net income for the fourth quarter of 2022 was $14.4 million or $1.11 per basic and $1.10 per diluted share, compared to adjusted non-GAAP net income of $11 million or $0.85 per basic and $0.83 per diluted share in the prior year quarter.

For the full year 2022, adjusted non-GAAP net income total of $101.8 million or $7.87 per basic and $7.79 per diluted share, compared to adjusted non-GAAP net income of $22.3 million or $1.71 per basic and $1.68 per diluted share in 2021. For a full reconciliation of non-GAAP measures to the most comparable GAAP measures, please see the table at the end of our earnings press release. Please note, as disclosed in the footnotes to this morning's press release, beginning in the fourth quarter of 2022, Eagle no longer excludes expenses for in-process research and development from its non-GAAP results. Historically, the company excluded these charges.

These changes rather, have been made to align with the views expressed by the U.S. Securities and Exchange Commission. Prior periods have been recast to reflect these changes. Following the completed acquisition and synergizing of Acacia, the company had $55.3 million in cash and cash equivalents, $72.4 million in net accounts receivable, and $63.8 million in outstanding debt, resulting in $64 million in net cash plus receivables. In 2022, we repurchased $18 million of our common stock as part of our Share Repurchase Program from August 2016 through December 31st, 2022, Eagle has repurchased $46.1 million of its common stock. During the fourth quarter, we refinanced our debt facility.

The company now has a new three-year, $150 million facility with a bank group led by JPMorgan that includes a $50 million Term Loan A and a $100 million revolving credit facility. The terms, including covenants of this facility, have been publicly disclosed and are similar to those of the prior expiring facility. With that, I'll ask the operator to open the call for questions.

Scott Tarriff (President and CEO)

Operator, please go ahead.

Operator (participant)

Yes, sir. At this time, if you would like to ask a question, please press the star and one on your touch-tone phone. You may remove yourself from the queue at any time by pressing star two. Once again, that is star and one to ask a question. Our first question comes from Brandon Folkes with Cantor Fitzgerald.

Brandon Folkes (Managing Director of Biopharma/Biotech Equity Research)

Hi, thanks for taking my question, and congratulations on a very strong year. A few from me. Maybe just firstly, let's talk just on PEMFEXY, maybe just can you talk about the moving pieces around 2023 revenue? As you gain this market share, any dynamic that revenue should not track around a similar growth rate?

Scott Tarriff (President and CEO)

Sorry, sir. Yeah, can you repeat that again? Brandon, we lost you for a second.

Brandon Folkes (Managing Director of Biopharma/Biotech Equity Research)

Sure. Apologies. On PEMFEXY, can you just talk about the moving pieces around 2023 revenue? Just as you're gaining market share, any dynamic that revenue should not track around about a similar growth rate?

Scott Tarriff (President and CEO)

I see. Well, thanks for the question, Brandon. Good morning. Yeah. You know, we are out in the marketplace with our sales force concentrating on PEMFEXY. We're thrilled about the growth that we've had so far. The announcement today, the $12 million in Q4, the market share of about 10% where we are today. I think if I understand your question, it's really about how inventory levels relate to sales and how that shakes out in the course of the year. For the most part, our customers have acquired inventory in anticipation of their future growth. You know, we expect the 10% to grow to 12% by the time we get through March, grow beyond that standpoint. You know, it may not track exactly from quarter to quarter with script activity.

We'll just have to see how that all shakes out and see where the market share winds up. At the end of the day, you know, we'll expect to have sales in excess of last year's number of $67 million. Right now, we're on track. You know, we're right where we thought we would be. We're hoping to have and still have high expectations that we're going to have a strong year for the product. Remember, you know, the profitability of the product is improved this year as well as we bought down that royalty payment. It's, you know, it's exciting year for us as it relates to PEMFEXY.

Brandon Folkes (Managing Director of Biopharma/Biotech Equity Research)

Great.

Scott Tarriff (President and CEO)

Did that answer?

Brandon Folkes (Managing Director of Biopharma/Biotech Equity Research)

It did, yeah. And then maybe on BELRAPZO. you know, now that we have the TREANDA generics on the market, did your strategy around that product change at all?

Scott Tarriff (President and CEO)

You know, we are doing our best to protect our franchise. We have an oncology sales force that, you know, is very focused on the product. You know, we just think we have two really good products, especially in BENDEKA, the 10-minute infusion, BELRAPZO being a liquid product. You know, I think we're just gonna stay very focused. You know, we've committed before or at least expressed that we thought we would be within this 25% loss, you know, keeping 75% of our product. You can see after the first 90 days, Brandon, we're, you know, really in very good shape. We've been able to do a, you know, really nice job keeping our products, and we expect that.

You know, we're just gonna have a strong 2023 as it relates to the bendamustine franchise, both BENDEKA and BELRAPZO. Combined with, you know, what we just articulated on PEMFEXY, you know, we're expecting to have another strong year across the board with our products in 2023. It's an exciting time for us.

Brandon Folkes (Managing Director of Biopharma/Biotech Equity Research)

Great. Thank you very much.

Scott Tarriff (President and CEO)

Thank you.

Operator (participant)

Thank you. As a reminder, if you wish to ask a question at this time, please press star one. Our next question comes from Tim Lugo with William Blair.

Lachlan Hanbury-Brown (Research Analyst of Healthcare)

Hey, guys. This is Lachlan on for Tim. Thanks for taking the question, and I'll add my congratulations on a strong 2022. On PEMFEXY, the market share data you provided is very useful. I was wondering if you can talk about sort of how much of the market you call on with the sales force, to help us think about sort of where that market share could get to? [Yeah. Over to you.]

Scott Tarriff (President and CEO)

Well, let's start there, Lachlan. Thank you. Our sales force covers the entire market. The market is split between commercial and the hospital market, the 340B market, pretty evenly. We're mostly focused with the sales force on the community side, and those are the shares that we're referring to as the share in community. You know, it's a big marketplace. We're very focused on it. We expect the share to continue to grow throughout the year. You know, we haven't guided to where we expect to go. We'll take it quarter by quarter, you know, we feel pretty confident at the 12% level as we leave March, especially considering that we've already grown from 6%-10%. We do have a focus on the hospital market obviously as well.

We'll see how that goes. Right now, very focused on community. The sales force covers 100% of that business. You know, as of today, we're feeling pretty good about it.

Lachlan Hanbury-Brown (Research Analyst of Healthcare)

Awesome. Thank you. You mentioned in the press release and in the prepared remarks that you're anticipating growth in BENDEKA and BYFAVO now that the sales force is fully scaled. Can you just talk about when that sort of happened? You know, when did you complete that scaling, and sort of how big is it now compared to what it was last year?

Scott Tarriff (President and CEO)

Yeah. The scaling is really just coming into play. We only purchased the company closed on, excuse me, in June. We went back to the territories now that we had these new products, and we made some changes. We made some expansions. At the end of the day, we have more reps today than we had last year by a few. You know, we're just really very excited about the ramp. It's looking good. I realize it's a small base, but you can see by the remarks we made today, there's strong growth there. We're expecting 2023 to be a very solid year and lay the foundation for future growth. You know, we still have really high expectations. The two products are wonderful.

We're getting great feedback from our customers and the users of the product. You know, we had what I thought was a really very strong investor day a couple months ago, and we just keep hearing wonderful things, and let's see how the growth goes. Right now, we are also very enthusiastic about the trends for the product.

Lachlan Hanbury-Brown (Research Analyst of Healthcare)

Thank you. I guess on the topic of sales force, if I could just quickly ask, are you expecting much incremental expansion there around the landing of potential approval?

Scott Tarriff (President and CEO)

I think we're right-sized for all of our launches and all of our business this year. I think the step up that we've took and the people that we have now, is sufficient to get us through, at least the next year.

Lachlan Hanbury-Brown (Research Analyst of Healthcare)

Great. Thank you.

Operator (participant)

Thank you. Our next question comes from David Amsellem with Piper Sandler.

David Amsellem (Managing Director and Senior Research Analyst)

Thanks. Just a couple. First, on vasopressin, can you just go through your thought process in more detail on the withdrawal? Is that just a function of the crowded nature of the market, or are there other considerations? And then can you just talk to how you thought about the ROI on that, given the withdrawal and, you know, is there a potential to come back at some point as you look in market conditions? Just a few on those. And then secondly, on bendamustine, I guess it was sort of in early days with the, you know, generic market formation, but can you talk about where you ultimately think things will settle out regarding both BENDEKA and BELRAPZO share?

Something of a longer term question there. Thank you.

Scott Tarriff (President and CEO)

Yeah. Okay, let's start with vasopressin. Thank you for the question. vasopressin was the only generic we've developed in the company's history. We thought we had a unique capability of bringing the product to the market and getting through the courts, which we did. We sold quite a bit last year and the year that we launched it. The rest of our business is just so strong, right? The bendamustine market, the PEMFEXY market, we're investing behind CAL02 and Enalare. There's just no real room in the company for a generic product, so we exited. You know the generic markets well. As the price declines, there's just no reason for us to be spending our time and our salesforce's focus on a generic product. In terms of coming back to the market, that's really very interesting.

Certainly, we have the capability of doing that as things change. We did have very good market share for the product. We don't have any plans in the near future or anything that we see on the horizon considering that we just exited. The MVA is viable, so we'll see how markets shake out. Sometimes things change. That's, you know, basically the vasopressin story. Bendamustine, BENDEKA, we've guided to keeping 75% of the gross margin in 2023. So far, 90 days into it, almost 90 days into it, we're really encouraged. We're ahead of our forecast and our plans. I think that speaks well to the strength of the benefits of the products. Let's see how the months go. You know, we'll give more of an update when we close out Q1 when we report there.

I mean, so far, we're thrilled about how the products are holding up and how the trends are working. Right now, you know, again, we just feel great about bendamustine and, quite frankly, the entire line. Let's see how things unfold. It's gonna be another really good, strong year for us in 2023.

David Amsellem (Managing Director and Senior Research Analyst)

Thank you.

Scott Tarriff (President and CEO)

Thank you.

Operator (participant)

Thank you. At this time, I show no further questions in queue. I'll turn the call back to Scott Tarriff for any additional or closing remarks.

Scott Tarriff (President and CEO)

Well, thank you everybody for joining the call. Look, 2022 was a record year for Eagle, and we're committed to carrying that momentum into 2023 and beyond. Our team remains focused on delivering value to stakeholders and ensuring the patients have access to our therapeutics. We look forward to updating you as we continue to pursue growth organically and potentially through acquisitions. thank everybody for joining today. I appreciate it, and be healthy.

Operator (participant)

This concludes today's call. Thank you for your participation. You may disconnect at any time.