Endocyte's CEO Discusses Q4 2013 Results - Earnings Call Transcript

Feb.24.14 | About: Endocyte, Inc. (ECYT)

Endocyte, Inc. (NASDAQ:ECYT)

Q4 2013 Results Earnings Conference Call

February 24, 2014 8:30 AM ET

Executives

Ron Ellis - President and CEO

Mike Sherman - Chief Financial Officer

David Meek - Chief Commercial Officer

Analysts

Adnan Butt - RBC Capital Markets

Jason Kantor - Credit Suisse

Simos Simeonidis - Cowen and Company

Laura Chico - Robert W. Baird

Greg Wade - Wedbush

Ted Tenthoff - Piper Jaffray

Bert Hazlett - ROTH Capital

Operator

Welcome to Endocyte’s Conference Call to discuss the company’s Fourth Quarter 2013 Financial Results and Operations Update. Speaking today will be Ron Ellis, President and CEO; Mike Sherman, Chief Financial Officer; and David Meek, Chief Commercial Officer. At this time, all participants are in a listen-only mode. Following their comments, we will open the lines for questions. Please be advised that today’s call is being recorded and webcast.

During this conference call, the company may make predictive statements concerning future events or developments. Actual results may differ materially from those indicated by forward-looking statements. Please refer to Endocyte’s filings with the Securities and Exchange Commission for discussion of risks and uncertainties impacting those results.

Now, let me turn the call over to Ron Ellis.

Ron Ellis

Thanks everyone for joining the call this morning and we apologies to our west coast friends for the early start time on early Monday morning and thanks for joining us. As it mentioned, I have got Mike Sherman and Dave Meek, both on the call with me and we’ll hear from them a little bit later as we go through the key milestones that are coming up.

So, let me just run through with the progress where we are at since the last call. We will begin with the EMA conditional marketing authorization process. As was announced, our oral explanation was planned for last week and it did occur, the team did a great job, the explanations went well and I think all the questions have been addressed. We have been told the CHMP will render their opinion in March and of course, we’ll press release that news went it comes out.

In terms of launch for EU, we have been preparing for the launch over the past 12 months. We have all the field personal hired in the early launch company so -- launch countries, so we are ready to go from field personal point of view.

We have almost all the hires in the main office done. As you recall we’ve had our European Unit General Manager hired for quite a while, as well as the pricing and reimbursement positions in placed. We just stuff the regulatory affairs position last month and we just hired supply chain, I think, in finance last week and we really have one more key hire there which is Medical Affairs and that should happen in the next couple of weeks.

Now, I think, the message is that, we are looking forward to the opinion, Merck and Endocyte already to go, and we will move forward. I am going to have, Dave, here in a minute talk about our interactions with nuclear medicine physicians in launch preparations.

Actually, Dave, why don’t you do that now and then, I will come with the rest of milestones?

David Meek

Yeah. Sure, Ron. Just quickly on the patient population we are targeting has high-end indeed. I think it’s important just to preference our conversations that we have with oncologists and nuclear medicine physicians.

The platinum-resistant ovarian cancer patient only has about 12 to 13 months median overall survival and there is recently published data that says, the folate receptor positive patient has even worst prognosis. So, unfortunately, for fewer than 20% of these patients, they are expected long-term survivals very short for these patients.

And what we have been sharing with oncologist and the nuclear medicine physician, if approved, vintafolide will be the only personalized therapy patients for platinum-resistant ovarian cancer patients and the companion imaging agent etarfolatide is found to be very useful and predictive agents to determine the patients folate receptor status and their eligibility for vintafolide therapy.

What physicians really appreciate is the ability to conduct relatively simple and real-time SPECT/CT scan and the oncologist find this appealing because they can select and deselect patients that could be eligible for vintafolide and other treatment options.

What the Merck and Endocyte teams have been doing on the daily basis, our medical affairs colleagues are out there each and everyday, discussing pre-launch preparation and the clinical data for both vintafolide and etarfolatide with the oncologist and the nuclear medicine physician.

This awareness is increasing every month and there has been a very positive response to the interactions that our medical affairs colleagues have had with the oncologists and nuclear medicine physicians.

As you know, there has been a quite bit of news flow coming from the publications on of our strategy. The JCO Publication in December which was the publication replaced to the PRECEDENT trial has been extremely well-received.

There was another publication that just came out few weeks ago and Pharmacogenomics and Personalized Medicine titled the targeted treatment of folate receptor positive, platinum-resistant ovarian cancer and companion diagnostics was specific focus on vintafolide and etarfolatide is also been very well-received by the physician community in Europe.

I also want to mention that our pricing colleagues have been out there working with the payers in early launch markets in Europe and our pricing and value proposition has also been very well-received by the payers in these markets.

So that’s just a brief update on what we have been going to get ready for the launch assuming we do get a positive approval from the EMA. Ron?

Ron Ellis

Yes. So, I think, that, we are first looking for that, so the announcement in March. We, on the PROCEED trial which is the Phase 3 trial, the key take home message here is, enrollments on track. We expect the interim analysis in the second quarter of next year, that’s interim analysis that will trigger whether additional 100 patients are enrolled for less analysis but we are still on track with that study.

The TARGET trial which is a non-small cell lung cancer study, we had said we thought we would see top line data in March, we’re still on track for that. We’re blinded to the study but the data base has been locked and so we’re in the process of doing the analysis and we’ll see those results in a few weeks.

The next trial after the ovarian and lung would be the triple negative breast cancer. Merck’s announced that that would begin in the first half of this year, I think ct.gov, clinicaltrials.gov list that is in April start. The other two programs worth mentioning are the new products that are going in the clinic the Folate-Tubulysin molecule, EC1456 has started dosing in Phase I and progressing well. We’ll learn a lot more as we go through the additional cohorts but so far everything has gone well with that product.

And then the next product is for prostate cancer and we had announced that would go into the -- in the clinic in the first quarter and we’re on track there as well. We would expect that we would have the IND in here shortly and then be able to begin dosing on patients with prostate cancer. So those are two really additional exciting programs as well as of course the exciting news we hope that will come out of the CHMP decision in March.

So with that, I’m going to turn it over to Mike and let Mike go through the financials and then we’ll take Q&A.

Mike Sherman

Thanks Ron. I’ll just hit these financials pretty quickly and we’ll get to your questions. We recognized $17.3 million in revenue during the first quarter, little higher than the $16.5 million for the two previous quarters and up from $14.5 million last year.

R&D of $13.5 million was steady with the Q3 spend and up from $10.5 million last year and that means the PROCEED trial remains strong and was up sequentially versus last year. I expect that would remain steady through the year, through this year from an expense standpoint but recall that Merck’s portion of that obligation will be increasing if we move on to enroll that final 100 patients. The TARGET trial investment declined sequentially as you would expect as that trial is winding down, all of those expenses are covered by or reimbursed by Merck.

G&A at $6.7 million was pretty consistent on a quarterly basis throughout the year, up from $5 million last year and that’s primarily driven by investments in commercial readiness. We ended the quarter with approximately $149 million in cash, down from $159 million at the end of the third quarter. So cash burn of about $10 million for the quarter and about $53 million for the year.

So we ended out nicely in the range of our cash guidance for the year. Cash guidance for year end ‘14 is an expected balance between $90 million and $110 million as we see our responsibility for vintafolide development decline will offset that investment in the proprietary pipeline. So cash outflow for the year pretty closely in balance with what we saw in 2013.

So with that, let me turn it back to the operator and take your question.

Question-and-Answer Session

Operator

(Operator Instructions) And our first question comes from the line of Adnan Butt with RBC Capital Markets. Your line is open.

Adnan Butt - RBC Capital Markets

Good morning everyone. Hope you can hear me? Two questions here, first on the non-small cell lung cancer study, since the data lock -- data lock has occurred already. Was there anything that could push beyond March. And secondly on the EU infrastructure, so how much training time from your feedback in talking to radio-oncologist. How much training time would be needed and is it a single scan or do you see hosting a number of scans over the course of treatment. And then lastly for Mike in terms of guidance, what revenues or milestones are you expecting for the cash guidance? Thanks.

Ron Ellis

Okay. And on the first question, maybe let Mike take the first and then I’ll take you through the date one, I should take the second question on training time. And then I think on the first question, the answer is we don’t see anything slipping for March. But I think it would just be a question of when Merck announces and I don’t have a firm data on what they would do and when they would announce on that but right now, we’re unscheduled for the March timeframe.

Mike Sherman

And then on the cash guidance, we would have milestones associated with an approval if we are granted an approval in Europe. We would have a milestone if Merck transitioned from the Phase II in non-small cell lung cancer to Phase III. I would give more guidance on the size of those milestones as we achieve those events and also -- on the…

Unidentified Participant

Good morning Endocyte.

Mike Sherman

I don’t know.

Unidentified Participant

Okay. I’ll hang up.

Mike Sherman

Adnan, are you there?

Adnan Butt - RBC Capital Markets

I’m here but…

Mike Sherman

Okay.

Adnan Butt - RBC Capital Markets

It’s fine. The person hung up, it’s fine.

Mike Sherman

Okay. Good. It’s Dave. Let me ask you a question regarding the time to train nuclear medicine physician for vintafolide. A key deliverable that we have for the nuclear medicine is in electronic training program that will provide the training and the education for how to conduct in vintafolide scan and this training will be launched as part of the approval.

We had a close group of nuclear medicines physicians assist with us this training program. And to answer to your question, how long will it take? It will take about a half to a full day of training for nuclear medicine physician to get up to speed. And then of course, they will get better with the more extensive date that they conduct over time. Does that answer your question?

Adnan Butt - RBC Capital Markets

Yes, it does. And then the follow-up, you first foresee a single scan or do you foresee a series of scans taking place over the course of treatment?

Ron Ellis

So according to the date, we only need a single scan is to determine the patient’s folate receptor status and that will be a one-time scan.

Adnan Butt - RBC Capital Markets

Okay. Thanks.

Ron Ellis

Yeah.

Operator

Thank you. And our next question comes from the line of Jason Kantor with Credit Suisse. Your line is open.

Jason Kantor - Credit Suisse

Great. Thanks. Just a follow-up on the Adnan’s question, so those are the possible milestones but are you assuming any of those milestones in your cash guidance for year-end 2014, or would those be additional or they somehow probability adjusted in your number?

Ron Ellis

I think those scenarios are reflected in the range of guidance I provided. One of the things to remember is that, if we do get approval in Europe, we wouldn’t really actually desalinate and so kind of summer timeframe and as you know in Europe, summer is slow, number one. Number two is you have access to markets sequentially as reimbursement opens up in each market. So, I would not expect sort of the vast majority of our potential markets that revenue to happen until we get into 2015.

Jason Kantor - Credit Suisse

Okay. And then, who has been paying for all the EU infrastructure build, is that on your dime and then what happens if you don't get the recommendation, do you let those folks go, or is there some other use for maintaining that while you are waiting for the additional data I guess?

Ron Ellis

Dave may add to this, but so the investments, that we are making is to keep in that perspective. It’s focused on the infrastructure required to commercialize the imaging agent etarfolatide. So it’s, in meantime also been supporting the enrollment of our Phase 3 PROCEED trial. So there are some elements of that costs that are shared is that as it relates to PROCEED, most of the investment and most of the investment going forward then it’s our responsibility.

If we were not get to approval then that would require a bit of restructuring and again, I’m not talking about many people that are on board right now in order to even out. By the end of the year, you are talking about roughly a dozen of few more reps people. But some of that, we would probably lead and place anyway to help, wrap up the enrollment of the PROCEED trial because that would be trigger then for reapplication in Europe soon after if we don’t get it now.

Jason Kantor - Credit Suisse

And just one last question on the tubulysin compound that you have in the clinic. When do you think we would get first glimpse of preliminary Phase 1 results for that trial?

Ron Ellis

I got dropped off the call for a few minutes. I think we will keep you updated as it moves along. I don’t know, when the first or more Poster, I imagine when we would come out of Poster Presentation would be but probably later this year, but the reason I don’t know for sure on that.

Jason Kantor - Credit Suisse

All right. Thank you.

Operator

Our next question comes from the line of Simos Simeonidis with Cowen and Company. Your line is open.

Simos Simeonidis - Cowen and Company

Thanks for taking the questions. In terms of last week’s oral examinations at HMC, was there any areas of concern in terms of the efficacy or phase deals over the compounds and was there anything that came out that completely surprised you?

Ron Ellis

I think we probably assumes, not a lot to comment on in terms of the questions and responses. I don’t think there really any -- I would say there are really no surprises. This has been a process where we’ve had many, many meetings with DMA over the course of the past 12 months and so we didn’t have anything that came out that we weren’t aware of that we needed to address. And I think both teams, both Merck and Endocyte which participated in that meeting. I thought things went well. We had answers to all the questions that were given to us.

Simos Simeonidis - Cowen and Company

Okay. Great. And then finally on TARGET, in [east], for example the trial is not -- you are able to meet the primary endpoint. Is there any significance, subgroup analysis you are going to looking at in terms of going to the next trial?

Ron Ellis

I think that’s a great question. So it’s a Phase 2 trial. So the primary purpose of that trial is to determine if the drug is active, but to design the appropriate Phase 3 trial, and so there are a number of sub analysis that are being done to look at that data. For example, the study enrolled both squamous and non-squamous patients. And so, we will be curious to see if the activity is the same in both those drugs. As you know, docetaxel is active in both of those histologies. However, Alimta for example was not. And so that’s one of the indication, one of the subgroup analysis that we’ll be looking at in those data. So we will start seeing the analysis is -- as I say database is locked, analysis has begun at the statistical group but contracted with and we’ll start seeing that analysis in March.

Simos Simeonidis - Cowen and Company

Okay. Thank you very much.

Operator

Our next question comes from the line of [Joe Smith] with (inaudible). Your line is open.

Unidentified Analyst

Good morning, guys. I had a couple questions regarding this morning’s press release. The first is that, you mentioned that you will enroll the final 100 patients in the PROCEED trial if the PFS hurdle is achieved. My first question is, whether or not you can state what that PFS hurdle is? The second question is, when you report the non-small cell data, I know you’ll have PFS data. Will you also have median overall survival data? And finally, when must Merck make a decision on whether or not to proceed with the Phase 3 study in lung cancer? Thank you.

Ron Ellis

Three good questions. Let me start with the last one. And there is really no timeline specified I think with Merck is to make a decision, though I know planning has begun in case, the study is positive and how that would look. So I wouldn’t anticipate it would be very long before you’d want to get that study up and going on that.

I think the first question was on PFS and what the hurdle was? We’ve not disclosed what the futility hurdle is at that point. We’ve said that when we pass that, we would have a high confidence that the study is going to be positive because of the number of events that would have been seen by that point. And the whole idea of that futility analysis was that we didn’t want to enroll the extra 100 patients if we didn’t think there was a good chance. The primary endpoint was going to be met if those 100 patients are largely for overall survival.

On the next question which was about, would we have OS data to disclose at the TARGET data? The OS data, of course, will not be matured, and I am actually not sure whether OS would be released or not. My guess is, this is just a guess and part of this is to Merck is that we would give insight into the PFS data and then just say the OS data is not matured, we’d announce that later, but I am not positive on that. Do you know Mike or Dave?

Mike Sherman

It’s a Mike. I expect what you said is accurate just because the OS data will be very immature.

Ron Ellis

Agree.

Unidentified Analyst

All right. And just to follow up on the second one about the PFS futility hurdle. As an investor, how am I supposed to know, how the probability of success in the study has changed if the PFS hurdle is not disclosed, they don’t seem like it should be a secret to me?

Mike Sherman

Well, the part of the reason why it needs to be secret is because we don’t want to disclose the results to the physician community or patient community. So in dialogue with the FDA, very clear that they wanted those results to remain blinded and so that’s really the driver. We will be blinded to those results. We will know that the hurdle was cleared, but we won’t have any visibility into what the actually PFS is at that point.

Ron Ellis

Well, I am not asking for the PFS, just what the hurdle is, I mean you know the hurdle, and you’ll know whether or not they hit the hurdle by inference when the data is happening. So why can’t you say what the hurdle is?

Mike Sherman

Well because the hurdle is set consistent with what the final endpoint is, disclosing -- achieving that hurdle would give a meaningful insight into physicians and patients that could impact the enrollment of the remainder of the trial. I guess the question is, ideally we have full transparency to that, but to keep physicians generally blinded to the progress of the trial, that’s the agreement that we’ve reached with the FDA.

Operator

Our next question comes from the line of Chris Raymond with Robert W. Baird. Your line is open.

Laura Chico - Robert W. Baird

Good morning. This is Laura Chico in for Chris Raymond. Congrats on the progress. I guess one question related to PROCEED if I could. I think you’ve given a good deal of color around the PFS process, but just curious on OS. Has there been any changed to your outlook there, I guess you’re still going to need OS for full approval, correct?

Ron Ellis

That’s been our communication that we’re very confident that we’ll have what PFS would lead to a solid approval and all that would be required for full approval.

Laura Chico - Robert W. Baird

Okay. So no change.

Ron Ellis

No, no change.

Laura Chico - Robert W. Baird

Okay. I guess one separate question on TARGET. Any idea what the topline data might come across as is or is it just going to simply be a press release as the primary endpoint was met or a little more color there, I think you started to mention? That’s the last question.

Ron Ellis

Yeah. I don’t know. We haven’t really seen the data and we haven’t really set down with Merck. And since the other funding that’s for study, a lot will have to do with how Merck wants to announce that. And so I don’t know what the range of announcement would be at this point.

Laura Chico - Robert W. Baird

Okay. Answer if you know the answer to this. Is there any possibility we’ll see detailed target data at ASCO?

Ron Ellis

No, you won’t see at ASCO.

Laura Chico - Robert W. Baird

All right. Well, thank you. Congratulations.

Ron Ellis

Thanks.

Operator

Our next question comes from the line of [Bill Cooper] with Credit Suisse. Your line is open. Bill, your line might be muted. Our next question comes from the line of Greg Wade with Wedbush. Your line is open.

Greg Wade - Wedbush

Thanks, and thanks for taking my question this morning, Simos asked one of that, the EMA review but I just want to follow up with quick question on inflammatory program. Can you just give us a bit of an update as to what you are expectations are in 2014 for progress there? Thanks.

Ron Ellis

For those who may or may not be aware, we have a program in targeting activated microphages from inflammatory disease. And there has been some, last year, some really interesting data come out of Duke University about the ability to identify active osteoarthritis with our imaging agent. It’s a data that was done by Virginia Kraus. And so we have been moving the product, forwarding in the plan, entering into osteoarthritis.

Right now, Greg the plan is that we would hopefully be able to get into the clinic this year. We still need to have a pre-IND meeting with the FDA. So I’m a little bit hesitant exact on the timing until we have had that meeting and got classification on everything that they would want but we are pushing for this year to start with that product.

Greg Wade - Wedbush

So you have completed GLP talks as necessary to ask for that pre-IND meeting?

Ron Ellis

No.

Greg Wade - Wedbush

Okay.

Ron Ellis

We’d have the pre-ID meeting before we do the GLP talk stuff.

Greg Wade - Wedbush

Okay. Thanks, Ron.

Ron Ellis

Okay, Greg.

Operator

Our next question comes from the line of Ted Tenthoff with Piper Jaffray. Your line is open.

Ted Tenthoff - Piper Jaffray

Great. Thank you very much. Can you hear me okay?

Ron Ellis

Yes. Hi, Ted.

Ted Tenthoff - Piper Jaffray

Hey, how you guys are doing? Thanks for the update. I guess, just going a little bit deeper into the pipeline, can you give us an update on, started with PSMA and whether any other competitive update more recently kind of change your thinking around that target or kind of how the small molecule drug conjugate approach may differ from some of the other purchase and any thoughts on what you might be showing from the proprietary pipeline at ASCO?

Ron Ellis

I will take the first one, I think on the ASCO, I’m not sure, Dave, you may know we have -- going on in ASCO and I think in the prostate cancer because there has been a lot of great progress with some drugs in prostate cancer. It has been a different field that has involved over the past couple of years. We had a very positive advisory meeting, I think it was November or December with leaders in this field that went through the data on the prostate cancer program.

And we are still very encouraged about the potential for the product, both using the diagnostic and as well as delivering a targeted therapy. These agents really are much better than patients have access to, but there is still a need for agents that are active in these patient population agents, that have low toxicity for this patient group. And so we are still encouraged by the product and of course, a lot will tell as we go through the Phase 1 study because that will be a study where not only we will establish dose, but will give a good sense of the activity of the drug since we will be in the patient population that would be indicated for.

Mike Sherman

Regarding ASCO, will we be able to make ASCO with EC1456 or our EC1169. I think we are going to miss ASCO because of the pre-clinical data, we are getting published in conferences like AECR, once they get into ASCO. But there is a lot to it at which the data comes in we’ll determine the publication. So at this point, we will see how the Phase 1 progresses from the ASCO.

Ted Tenthoff - Piper Jaffray

Fair enough. Appreciate the update. Thanks, guys.

Ron Ellis

Thanks, Ted.

Operator

Our next question comes from the line of Bert Hazlett with ROTH Capital. Your line is open.

Bert Hazlett - ROTH Capital

Thanks. We have covered a lot of ground on targeted proceeds in your other programs. My question is with regard to the SG&A spending in the magnitude of spending. If you achieve a positive recommendation in EU regarding etarfolatide, when do you really start materially spilling it up, I think some time in the second half of 2014 and what magnitude should we assume going forward in 2015? It doesn’t look like that there is tons of spill up, what magnitude should we anticipate hitting at P&L in 2015 and beyond? Thank you.

Mike Sherman

Yeah. Bert, I would say that given the size of the organization that’s going to be required, I mentioned that this summer, we’re going to be in the sort of dozen timeframe and maybe also to 15 to 21 year fully scaled, but your total spend is not going to change our P&L dramatically. The way we look at the diagnostic business, certainly in the early period, it’s one of those that look for to be essentially kind of a breakeven operation over the course of the 18 to 24 months were the real potential comps where that becomes a very interesting business is follow-on indication.

And the infrastructure required for example to make that product available to support breast cancer or lung cancer really doesn’t have to change, they’re largely going to the same centers and the training for the most part already taken place. So profitability for that business then becomes very attractive.

David Meek

All right. So that’s the Mike’s comment, especially on the commercial spend necessary in Medical Affairs. We need to remember that Merck is driving all the demand for vintafolide and etarfolatide. So it’s a real heavy spend for med affairs and the typical sales and marketing will be generated by Merck. And our responsibility is to make sure the Nuclear Medicine physicians are trained very well.

In Europe, we’re targeting just about 400 Nuclear Medicine physicians throughout all of Europe that will be affiliated with centers that treat platinum-resistant ovarian cancer patients. So it’s a pretty small audience that will responsible for and committed to trend. And so that’s a little bit more clarity there to why our spend over time will not be tremendous.

Bert Hazlett - ROTH Capital

And just a quick follow-on, do you have a strength of the timing of reimbursement. I know you’ve talked that you anticipate fairly rapidly assuming there would be a positive decision, but the other strength of timing or the reimbursement decisions in the country is going-forward?

David Meek

Yes, Bert. Yes, our timing assuming approval for reimbursement would be very typical launch in Europe, I would say based on my experience watching quite a few products in Europe, we’ll see markets like Germany first, Germany, Austria, some of the Nordic countries also go early. And then we’re targeting -- we’re trying to accelerate fast as much as possible. So within the first six months, we expect about 40% of the patient population open to reimbursement.

Bert Hazlett - ROTH Capital

Thanks for that. Appreciate it.

David Meek

Thanks.

Operator

(Operator Instructions) Our next question comes from the line of [Daniel Dream with Dream Capital]. Your line is open.

Unidentified Analyst

Hi, thanks for taking my question. So with 1456, how was you initiated in December, how was that trial enrolling, and when do you expect to have the first data coming out of it?

Ron Ellis

So it’s a standard Phase 1 dose escalation study with three patients per cohort and then you escalate after those three patients have gone through well into the first cohort. We haven’t started the second cohort yet. It will depend on how many cohorts we’re able to escalate in before we all know when we’re done with the study.

As I said, I think we will keep people pretty well abreast in the quarterly calls, I mean how things are going in terms of the cohort ran and how we’re moving forward. And then I would hope we would have some data to present this late summer/fall on results of the study, whether it’s complete or not, but again it will kind of depend on how many cohorts we’ve gone through.

Unidentified Analyst

Okay. Thank you, guys.

Operator

I’m not showing any further questions at this time. I’d like to turn the call back over to management for closing remarks.

Ron Ellis

Well, again, thank you all for joining an early morning call, especially those on the West Coast. I know it’s early and we appreciate you joining on the call. It’s been a lot of progress made in the past quarter. We are looking forward to some big milestones coming forward in the next few months.

And on behalf of the management team and those we really appreciate the great question we’ve received and we appreciate all the work by the Endocyte and Merck team over the past few months as we prepare for these major milestones. So that will end the call. Thank you very much.

Operator

Ladies and gentlemen, thank you for participating in today's conference. This does conclude the program. And you may all disconnect. Everyone have a good day.

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