Joseph Ciaffoni: And Lachlan, I would just add, with regards to the renegotiations in general where we have maintained access, we are not in parity positions. And the only instances in which we are now at parity with OxyContin is generally where we’ve come off the formulary. And I think from that perspective, the clinical profile of Xtampza is a differentiated asset. And as the leader in responsible pain management, we are the only ones out there educating physicians on our products.
Operator: Our next question comes from Serge Belanger with Needham & Co. Please proceed with your question.
Serge Belanger: Hi, good afternoon. And thanks for taking my questions. First one, I guess, for Scott, on Xtampza. I think so far this year, we’ve seen about a 6% prescription erosion for Xtampza. Curious if that’s what you were expecting and if you expect to — for those to come back? And then second question, I guess, for Joe. Regarding BD, I think BD transaction has been a priority for the company now for, I think since 2022. Has your view or strategy around that priority evolved? And also as part of that question, I guess, in the past, you’ve talked about wanting to lever up for such a transaction. So also curious with the recent share price appreciation, whether you would purchase via equity to complete a transaction? Thanks.
Joseph Ciaffoni: Thanks, Serge. Scott will take the first, and then Colleen and I will share the second.
Scott Dreyer: Yes. Thanks, Serge. Yes, in simple terms, yes. Where the brand is performing right now is right in line with where we’d expect it to be. And similar to last year where we were moved, the greatest impact tends to be in the first quarter as we move then throughout the year.
Joseph Ciaffoni: Yes. And Serge, with regards to BD, what I would start with is capital deployment. What we’re really focused on right now is what we know we’re going to do, which is we’re going to rapidly pay down our debt and we will opportunistically leverage our share repurchase program. One of the things we take a lot of pride in is our track record of being really good stewards of capital and executing deals that make sense and deliver value for our shareholders. So as we continue to get stronger, what I can tell you is when the right deal was there at the right price, we are in a great position to execute. And Colleen can talk a little bit about how we think about the financial aspects.
Colleen Tupper: Yes. So Serge, great question on the leverage side. What I would say is we have the ability to raise debt and are comfortable with a net debt ratio of around 3x or below for commercial-stage asset, which is what we’re seeking in the current environment. I would also say, given our commercial focus, we are focused on near-term accretive and positive EBITDA. And as noted, we also have the ability to use our equity if the market dynamics are supportive. So we think we have a multitude of options there to fund the right deal when it comes along.
Serge Belanger: Thank you.
Joseph Ciaffoni: Thanks, Serge.
Operator: Our next question comes from Les Sulewski with Truist. Please proceed with your question.
Leszek Sulewski: Thank you and congrats on the quarter guys. Just to take another stab on the BD opportunity. You have mentioned in the past of $150 million in peak potential sales. Maybe we can — is there a potential where you could see a few smaller deals versus one chunky one or something that would be pre-approval in terms of an asset play?
Joseph Ciaffoni: Yes, thanks, Les. I appreciate the question. Look, from a BD perspective, I think what I would reiterate is everything that we have been focused on continues to be on the board. And I think they all fit the criteria of what it is that we’re looking for, differentiated commercial-stage assets, peak sales potential greater than $150 million with exclusivity into the 2030s. The one commentary I would make is that doesn’t mean like the deals we’ve done previously, they already need to be at $150 million. So we — for the right opportunity, if we have conviction that it can be $150 million plus, then we’re in a great position to execute around that. And if one of the reasons why we’re the better owner is because of the resources that we can bring to the table, we would go for that type of opportunity.
Leszek Sulewski: Got it. And if I might squeeze one follow-up. On the capital deployment plans potentially outside of repurchases, have you specifically looked at a potential enactment of a dividend plan? Or any payout of a form of a onetime special dividend? Thank you.
Joseph Ciaffoni: Yes. Les, I appreciate that question. I’m going to hand that one off to Colleen.
Colleen Tupper: Yes, Les, we evaluate all options, but we highly prefer the share repurchase program over dividends. And you could see that continue in the near future.
Operator: Our next question comes from Oren Livnat with H.C. Wainwright. Please proceed with your question.
Oren Livnat: Thanks for taking the questions. I have two. On Xtampza, kind of interesting that you mentioned your large headroom now between, I guess, your 56% to 58% gross net guidance and I guess, this theoretical ceiling that you want to maintain a 65%. Can you talk about how big potential opportunities, even if not exactly near term, but the next couple of years, you might have to add volume opportunities that would still keep you under that? Because we obviously don’t see the mix between Medicare plans, Medicaid, et cetera. For example, something as gargantuan as a SilverScripts realistically on the table at a gross to net, that would still keep you under that 65%? And I have a follow-up. Thanks.
