ArQule's (ARQL) CEO Paolo Pucci on Q1 2014 Results - Earnings Call Transcript

May. 7.14 | About: ArQule, Inc. (ARQL)

ArQule (NASDAQ:ARQL)

Q1 2014 Earnings Call

May 07, 2014 9:00 am ET

Executives

William B. Boni - Vice President of Investor Relations & Corporate Communications

Paolo Pucci - Chief Executive Officer and Director

Robert J. Weiskopf - Principal Accounting Officer, Vice President of Finance, Corporate Controller and Treasurer

Brian Schwartz - Chief Medical Officer and Senior Vice President of Clinical & Regulatory Affairs

Analysts

Adnan S. Butt - RBC Capital Markets, LLC, Research Division

Chad J. Messer - Needham & Company, LLC, Research Division

George B. Zavoico - H.C. Wainwright & Co, LLC, Research Division

Jonathan Eckard - Citigroup Inc, Research Division

Richard Goss - Leerink Swann LLC, Research Division

Operator

Good day, ladies and gentlemen, and welcome to the ArQule Inc. First Quarter 2014 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call may be recorded. I would now like to introduce your host for today's conference, William Boni. Please go ahead.

William B. Boni

Good morning, everyone. Welcome to the ArQule investor conference call reviewing operational and financial results for the first quarter of fiscal year 2014. This is Bill Boni, VP of Investor Relations at ArQule. This morning, we issued a press release that reported results for the fiscal quarter ended March 31, 2014. The release is available on our website at www.arqule.com.

Leading the call today will be Paolo Pucci, Chief Executive Officer of ArQule. Also present for the company are Peter Lawrence, President and Chief Operating Officer; Dr. Brian Schwartz, Chief Medical Officer; and Rob Weiskopf, Vice President of Finance.

Before we begin, please note that we will be making forward-looking statements as defined in the Private Securities Litigation Act of 1995 (sic) [Private Securities Litigation Reform Act of 1995]. Actual results may differ materially from those projected in the forward-looking statements due to numerous risks and uncertainties that exist in ArQule's operations, development efforts and the business environment, including those factors discussed in our press release announcing this call and posted on our website, as well as in our reports on Forms 10-Q and 10-K and subsequent documents filed with the SEC. The forward-looking statements contained in this call represent the judgment of ArQule as of today. ArQule disclaims any intent or obligation to update any forward-looking statement except to the extent required by law. We will provide an opportunity for questions and answers at the end of this call.

I would now like to introduce the CEO of ArQule, Paolo Pucci.

Paolo Pucci

Thank you, Bill. Good morning, everybody, and thank you for joining us for this morning's call. Let me start our operational review for Q1 of the current year by talking about the progress we've been making with our most important trials in hepatocellular carcinoma with tivantinib, our leading-class c-MET inhibitor.

The first trial I would like to update you on is METIV-HCC trial. During the first quarter of 2014, momentum has begun to build again in the enrollment of patients in the pivotal Phase III trial of METIV-HCC. This trial is conducted in the Western countries and is partnered with Daiichi Sankyo. Our partner in the Asian territory is Kyowa Hakko Kirin that is conducting a sole [ph] separate trial.

However, both trials are testing tivantinib as a single agent therapy against the best supportive care in second-line hepatocellular carcinoma. The METIV-HCC trial and the JET-HCC trial being conducted in Asia are the only trials of their kind. These are, in fact, the only ongoing trials in this setting that are enrolling a biomarker-defined patient population. The biomarker that defined the population as ITT is MET, and we are deploying in both trials a MET diagnostic test. All the patients have, in fact, been tested for MET status, and the rate of enrollment will begin, in large part, upon the screen failure rate that we will observe, and that we're gaining experience in that matter.

We -- the patient must be classified as MET-high by a central labs to enter the trial. And we will update as we accumulate more data about what is the screening -- screen failure rate that we observe.

We expect to enroll in the METIV-HCC trial about 300 patients. They will be randomized at 2:1, receiving tivantinib 2 and placebo 1. And we will be -- we are recruiting in approximately 120 sites worldwide in the Western world. The trial is being conducted in the U.S. under a special protocol assessment agreed upon with the FDA, which is still intact even after the changes of late last year that were made to the trial.

The primary endpoint of the METIV-HCC trial is overall survival, while progression free survival is the secondary endpoint. We currently estimate the completion of patient enrollment in the METIV-HCC trial in mid-'15. And we are -- we'll be informed -- we will inform you if there is a change in that forecasted date, and then as I said, largely depends on how recruitment will proceed and how screen failure will proceed.

The JET-HCC trial is conducted by our partner Kyowa Hakko Kirin. It's enrolling -- it's planning to enroll 160 patients. It's also randomized 2:1 tivantinib to placebo. The endpoint of this trial differently than the trial in the West is progression free survival, agreed with the regulatory authorities in Japan. And overall survival here is the secondary endpoint. We plan to inform investors in the scientific community as we receive updates from our partner.

So we have essentially now 2 programs actively recruiting a total of more than 400 patients in second-line HCC in a biomarker-defined population with a companion diagnostic. And this trial is, for this reason, this COMPANION trial, and this HCC program is attracting quite a bit of attention from the scientific community because this is unique of its kind. And a previous attempt to establish a standard of care for second-line HCC has failed so far and several drugs have attempted to establish themselves as a second line in hepatocellular carcinoma. And what -- the drugs that attempted that are all different in mechanism of action. But they have one thing in common: They all attempted to establish themselves as standard of care second-line HCC without selecting for a biomarker in the population, the population that they tested in those trials.

So with the METIV-HCC and the JET-HCC now ongoing, we have a very solid again pivotal trial -- program that is on the cutting edge of science. We have been comforted in our confidence in the potential of this trial by a couple of recent publications. And I will talk about these publications briefly, and we'll be happy to take questions later on at the end of the call.

So the expression of interest and the engagement we've seen from investigators in recruiting for our trials probably have been stimulated by a first publication in -- which is a review article, The Future of Oncology, that underscores the potential of MET as a target in hepatocellular carcinoma. This article echoes the findings of the tivantinib Phase II double blind randomized trial in second-line HCC. And in fact, the article reiterates that the presence of c-MET over-expression appears to have a diagnostic -- or a prognostic relevance in terms of increased vascular invasion, tumor recurrence and tumor survival. And I quote the article concludes by saying, "Thus making c-MET an intriguing therapeutic target in HCC."

The second article that has piqued ours and the scientific community's interest [ph] comes from the Journal of Hepatology and discusses the advancement of compound from Phase II to Phase III in the clinical development in HCC. This article has been prompted by the many failures that have occurred by testing drugs in Phase III second-line HCC. The editorial notes that, and I quote, "The development of tivantinib, a small molecule inhibitor of c-MET receptor can serve as a target for a recent advancement of a drug from Phase II to Phase III in second-line HCC," highlights specifically the use of predictive biomarkers already in a double-blind randomized Phase II.

So these results of interest in second-line HCC after the recent failures of a couple of important drugs in that setting is benefiting our trials and is making us optimistic about their prospects. We still have -- leaving HCC, we still have nothing to report about the last semi-analysis that we still owe the investment community and the scientific community for our discontinuing non-small cell lung cancer trial in the West or the data for the subset of [indiscernible] from the trial is not mature at this point in time. And therefore, we should not report any data on that, but we hope we'll be able to do so in the near future.

Also, we continue with all of the NIH trials, and specifically, that -- those in prostate, head and neck and kidney cancers, and we will forward on any results as soon as they become available, and they're communicated to us by the NIH.

Let me now turn to the early-stage pipeline. Our -- as we've discussed in previous calls, we have prioritized out of our pipeline of 5 compounds: ARQ 092 and ARQ 087. ARQ 092, I shall remind you is an orally bioavailable, non-ATP competitive allosteric inhibitor of AKT. And that already makes it different from several of the other AKTs in development.

Interim data for the Phase Ia of -- for this compound, ARQ 092, was presented at the American Association of Cancer Research [indiscernible] 2013 and demonstrated inhibition of the pathway, and thus far, also a manageable safety profile.

Early signs of efficacy include a partial response, importantly, in the patients with the small lymphocytic leukemia harboring the PI3K mutation. And we have a number of stable disease. Much of these signs of efficacy for the drug have been seen when we deployed an innovative 1 week on, 1 week off regimen. And we are evaluating the whole body of data that is available, and that we will soon initiate a Phase Ib portion of this trial and will give more details about that. And we intend in the Phase Ib trial to seek to test the drug in solid tumor characterized by dysregulated AKT/PI3K pathway activity, where the clinical activity has demonstrated -- has shown us activity for 092. And the tumor types that we will focus on the most likely will include lymphoma, neuroendocrine, endometrial and ovarian cancers. 092 could lend itself to be studied beyond oncology. And there is a number of orphan-like indications where the target could be implicated. I'll mention 3 of those, which are produce syndrome [ph], fibroadipose hyperplasia as well as [indiscernible].

For 097 [ph], which is a multi-kinase inhibitor of [indiscernible] fibroblast growth factor receptor activity. The compound has shown, so far, a safety profile slightly different from other FGFR kinase inhibitors in the clinic. We have no renal toxicity observed so far, and we have early evidence of efficacy in the form, thus far, of long-term stable disease. Both compounds are in the final stage of dose escalation for the Ia portion, and we are preparing for Phase Ib work.

Now let me turn finally to our financials. We ended 2014 with approximately $86 million in cash and marketable securities. So we continue to make investments in tivantinib with our partners as well as in our proprietary pipeline, while maintaining financial discipline. And as such, our guidance for the year remains unchanged, and we plan to finish this year with $57 million to $60 million in cash and marketable securities.

Now for a few more details about the financials, let me turn the question -- the call to Rob Weiskopf, who will elucidate. Rob, please.

Robert J. Weiskopf

Thank you, Paolo. The company reported a net loss of $7,141,000 or $0.11 per share for the quarter ended March 31, 2014, compared to a net loss of $5,755,000 or $0.09 per share for the quarter ended March 31, 2013.

At March 2014, the company had total of $85,758,000 in cash equivalents and marketable securities. We reported research and development revenue of $2,676,000 for the quarter ended March 31, 2014, compared with $5,661,000 for the quarter ended March 31, 2013.

Revenue in the 3 months ended March 31, 2014, is comprised of revenue from the Daiichi Sankyo tivantinib development agreement and the Kyowa Hakko Kirin exclusive license agreement. The $3 million revenue decrease in the quarter ended March 31, 2014, is primarily due to revenue decreases of $0.6 million from our Daiichi Sankyo tivantinib program, $0.6 million from our Daiichi Sankyo 092 agreement that ended in June 2013 and $1.8 million of other revenue related to a onetime research project in the quarter ended March 31, 2013.

Total costs and expenses for the quarter ended March 31, 2014, were $9,981,000 compared to $11,581,000 for the first quarter of 2013. Research and development costs for the quarter ended March 31, 2014, were $6,731,000 compared to $8,181,000 for the first quarter of 2013.

These decreases were primarily due to lower labor-related costs of $1.2 million and reduced lab expenses of $0.4 million. These cost decreases were partially offset by $0.3 million higher outsourced clinical product development costs related to our pipeline program, including ARQ 092 and ARQ 087.

General and administrative costs for the quarter ended March 31, 2014, were $3,250,000 compared to $3,400,000 for the first quarter of 2013. This decrease was primarily due to lower noncash stock compensation expense.

Our guidance for 2014 remains the same as provided during our 2013 year end call on March 5 of this year. For 2014, ArQule expects net use of cash to range between $35 million and $38 million. Revenues are expected to range between $8 million to $10 million. Net loss is expected to range between $30 million to $33 million and net loss per share to range between $0.48 to $0.52 for the year. ArQule expects to end 2014 with between $57 million and $60 million in cash and marketable securities.

With that, I would like to hand the call back to Paolo.

Paolo Pucci

Thank you, Rob. I would like to open now to questions. But before we do that, as a reminder, I'm joined here by Peter Lawrence, President and Chief Operating Officer; and Brian Schwartz, Chief Medical Officer. And we will direct the questions to them as necessary. And operator, if you would, we can open up to questions.

Question-and-Answer Session

Operator

[Operator Instructions] Our first question will come from the line from Adnan Butt from RBC Capital Markets.

Adnan S. Butt - RBC Capital Markets, LLC, Research Division

So 2 questions here. First, at this stage, can we assume that dosing in the METIV trial, the Western trial is progressing without any hiccups? And if there is monitoring for neutropenia, how is that progressing? And then secondly, Paolo, you -- I think I heard you say on the call that enrollment seems to be picking up. Could you expand a bit on that, and when this year will you be able to provide an update on timelines?

Paolo Pucci

Yes. So let me take the second question first, and then I'll let Brian comment on the first. Enrollment is picking up, and this is largely driven by the addition of a number of countries and centers who were not open at the time that we had to make the modification to the dose. So if you will, these are fresh centers that did not experience any disruption related to those circumstances. And they started fresh, and they started fast. I have to say that the recent scientific articles that have emerged and the full presentation that was given for the [indiscernible] Phase III failure have also helped significantly interest in our trials, which is unique. That's what we are hearing. What has also been important is reach out that has been done by the ArQule and Daiichi Sankyo Medical team that has touched individually all of the sites that are, at this point in time, important. To be a little bit more precise on the -- as of the timeline, we need a few tens [ph] more of patients screened to solidify, at least, in the West our assessment of the screen failure rate. And if recruitment continues at this pace, we should have that before year end. We should have that experience before year end. We also need to see a couple of important countries to come back fully online and recruiting because those countries were recruiting exceptionally well before we had the change in dose. And with them coming on board this summer, we'll also have a sense of how fast generally the recruitment is going to go. So before year end, we hope to fine-tune the date by which we proceed to conclude recruitment for the trial. And I'll let Brian comment to your first question because he's much closer than I am to the safety data.

Brian Schwartz

Just to refresh, everybody, around the oldest timeframe, we had the issue with neutropenia, the DMC instituted a look in a cohort of patients before they gave us the full clear [ph] to go full steam ahead, and that was given on a reasonably large cohort of patients. Since that timeframe, we have enrolled almost as many patients as the DMC looked at, and the safety profile looks very, very much the same [indiscernible]. The DMC review the study periodically so that there's no real issues at this point in time and they would inform us if they have seen any issues.

Adnan S. Butt - RBC Capital Markets, LLC, Research Division

Brian, if I may follow-up, previously, you had shared some results about PK exposure. Is more work ongoing, or is the company essentially just pacing -- dosing patients at this time?

Brian Schwartz

We continue the PK work that continues. It goes to the DMC primarily and they inform us after the meeting if there's any change in initial assumptions that we projected to you guys.

Operator

Our next question will be coming from the line of Chad Messer from Needham & Company.

Chad J. Messer - Needham & Company, LLC, Research Division

Just wondering if there's anything to report from what I have to assume are some ongoing analyses from ATTENTION and MARQUEE. And any thoughts from your [ph] discussions with your partners about lung cancer?

Paolo Pucci

For lung cancer, we are in a wait-and-see mode, quite frankly, as we have said before. But in a skeptical wait-and-see mode, to be honest with you. And our skepticism has been fed by the recent announcement from Genentech that has stopped its own Phase II -- Phase III MetMAb plus Tarceva second-line HCC in the MET, what they define as MET-positive patient population. It's going to be very important for us to see what the -- those results are, and I believe they're going to be presented on the Monday of ASCO, if I recall correctly. So that's where we are, and I think where everybody is, quite frankly. Now a cautionary note on that is that those results will be [indiscernible] lung cancer results, and in our opinion, apply to that tumor setting and not necessarily can be transferred over to other tumor settings. And the second caution is we are talking small molecule versus antibody. And if you talk to antibody experts, they'll tell you that's one type of an antibody and they believe that there are different types of antibodies that might have better outcomes down the road, and we shall see. As far as data that we are expecting ourselves to see from our trial, there's nothing more we are really expecting other than the analysis -- the final data for the EGFR mutant subset of the MARQUEE trial, that is the trial in the West. That data is still not much worth [ph]. We are likely going to, under Daiichi Sankyo's leadership that executed the trial, do another sweep sometime before the end of this year. And once we have that sweep, it's by that time, the data has matured, we will probably have the first opportunity, most likely in a scientific meeting, disclose what we have seen. So in that respect, if you connect the 2 items, what we'd be most interesting to see -- interested in seeing from the MetMAb presentation is what was the effect of MetMAb in that population, just in case we ended up with good data after the final sweep. The other things we are interested in seeing in the MetMAb data is what kind of effect they had on secondary endpoints, because as you recall, we had a profound effect in MARQUEE and ATTENTION as well on the effect. It's just that, that effect did not translate in overall survival. So we're very interested in seeing if that effect was reproduced by MetMAb because in that case, we need to ask the question, can it be that MET inhibition has a profound but limited to PFS, so not durable impact on the disease in that setting. We should talk in the next call, Chad, or at ASCO where we'll know a little bit more.

Operator

[Operator Instructions] Our next question will be coming from the line of George Zavoico from H.C. Wainwright.

George B. Zavoico - H.C. Wainwright & Co, LLC, Research Division

A couple of quick questions. You mentioned before the liver trial here in the West, you're using a central lab to confirm the high MET status. In the JET trial in Japan, is it the same central lab and is it the same diagnostic test that they're using? Or is there a central lab in Japan that's doing it?

Paolo Pucci

Yes, it is the same.

George B. Zavoico - H.C. Wainwright & Co, LLC, Research Division

So the [indiscernible] samples are coming to the U.S. to be confirmed?

Paolo Pucci

No, they're not coming to the U.S. I mean, they're also using a central lab.

George B. Zavoico - H.C. Wainwright & Co, LLC, Research Division

But it's their own central lab?

Paolo Pucci

No, no. It's the same central lab but they're not coming to the U.S.

Brian Schwartz

The company has 2 branches...

Paolo Pucci

Yes -- sorry. [indiscernible] same company with labs in different continents, right?

George B. Zavoico - H.C. Wainwright & Co, LLC, Research Division

Okay. So you don't expect any variation in the interpretation of the MET status then from JET and METIV?

Paolo Pucci

I would say we have collectively put in place as many safeguards as we can to avoid that to happen.

George B. Zavoico - H.C. Wainwright & Co, LLC, Research Division

Okay. And given the -- what you've learned about having the biomarker-driven trial in liver cancer, how are you looking at that in terms of 092 and 087? You mentioned something in your prepared remarks, Paolo, about looking first for PI3K mutants. So in the Phase I trial, you're just sort of looking at the biomarkers. But do you think when you move on to the later-stage trials that -- do you think those will evolve into biomarker-driven trials as well?

Paolo Pucci

That will be the intent, particularly in some of the orphan indications that are beyond oncology where Akt 1 mutation seems to be -- it's been described in the literature as being a key driver of the disease. But that is true as well for Oncology. But, Brian, do you want to add anything?

Brian Schwartz

George, we haven't really disclosed a hell of a lot, but it's very much following the field in that with both the FGFR and the AKT, focusing on maybe easy -- nothing is easy in the diagnostic world, but easier tests, such as mutational analysis and amplification analysis, rather than looking at immunohistochemistry, which is a little bit problematic in both those targets. So we will be doing biomarker-enriched programs in the next phase of development.

Paolo Pucci

And that's one of the reasons why we have chosen to proceed this time around with a Phase Ia and a Phase Ib portion of the early stage trial. Because in Phase Ib, we're going to focus more strictly on patients where there is a rationale, but where we are hypothesizing a rationale that needs to be tested.

George B. Zavoico - H.C. Wainwright & Co, LLC, Research Division

Okay. Finally, just one quick question. For those 2 trials, you said they're both dose escalating? If you can provide any more details, maybe you can't, on how many cohorts you've gone through and how close you may think you are to MTD?

Paolo Pucci

So as far as being close to MTD, George, we said that we are planning for Phase Ib. So that by itself tells you that we believe we are not far at all from MTD. As far as of dosage regimens, we have deployed various dosage regimens, some quite creative as well, and we haven't yet finalized what are the regimens we're going to employ in the second phase of the Phase Ib, but we are actively discussing it with the investigators. We have cohorts enrolling right now. So I'd say that because we were more inventive with the AKT dosage regimen, we had a few more cohorts there than we have had so far in the FGFR. But it's the number of cohorts you would normally expect from a Phase Ia.

George B. Zavoico - H.C. Wainwright & Co, LLC, Research Division

Okay, great. Sorry, go ahead.

Paolo Pucci

[indiscernible] ASCO, we're going to say more about the Phase Ib. What we wanted to begin to socialize [ph] with you today was more of the concept of the kind of indication we would be looking at for a Phase Ib. It's going to be a seamless transition between Phase Ia and Phase Ib. We'll recruit a couple of centers that specializes at the tumor types.

Operator

[Operator Instructions] Our next question will be coming from the line of Jonathan Eckard from Citi.

Jonathan Eckard - Citigroup Inc, Research Division

I apologize, I missed a good chunk of the prepared remarks. So if you mentioned this, again, I apologize. But for the FGF, I think, you said are going to have data later this year. Could you kind of remind us of the types of patients that were enrolled in this trial? I'm sure they are just advanced patients. But regarding tumor types and things like that, that could be telling even from a dose escalation trial? And then what -- if you gave any updates on some of the other ongoing programs, even investigator-sponsored. If you have any detail or color that this data may be coming this year even if you're not sure what meeting it's going to be?

Paolo Pucci

The last question is -- I'll take the last question -- the second question. I'll let Brian comment on FGFR. We are beholden to the investigators for data flow. It is possible that some of the industry initiated trials for tivantinib will begin to give data this year. I'm not sure on the timing of it and what the preference of the investigators would be for presenting it to the scientific community. There is at least one trial that looks close and then it isn't -- the data isn't mature. So we thought we were getting close, but then just like it was for the subgroup for MARQUEE, the data is not mature. [indiscernible] disclose or present. So we -- that's as much as we said earlier in the call. For FGFR and the quality of patients that were recruited, I'll let Brian comment.

Brian Schwartz

So Jonathan, for the first portion of the trial, we enrolled all comers. So they weren't restricted by the FGFR status. However, we are at 2 sites who routinely do genetic testing, so there is a preference for patients who have the FGFR pathway potentially modified, such as -- so we have a higher proportion of breast sarcomas and are starting to get more bladders coming in to the trial. So hopefully, by the time we present the trial in the next couple of months, the first dose escalating portion of the trial, we at least have a few patients treated at sort of therapeutic doses who have the pathway up-regulated or mutated. But the numbers are small, predominantly standard Phase I patients with multiple tumors.

Paolo Pucci

And obviously, Jon, our experience is also influenced by other drugs in development in the setting. And for FGFR, we are somewhat differentiated, so that experience is quite relevant. For AKT, I would say that we looked at other competitors, including those that have now gone beyond Phase II. But there we are more cautious because -- or we do believe we have a different type of AKT inhibitor, not only because of its binding mode, which is the -- in the line of tivantinib, but also because of some other aspects that are being illustrated in terms of our balance of potency between the [indiscernible]. So in AKT, we really had to mature our own experience with our own clinical data, more so than we have to do for FGFR. So -- and that's as much as what we can say at this point.

Operator

[Operator Instructions] Our next question will be coming from the line of Howard Liang from Leerink Partners.

Richard Goss - Leerink Swann LLC, Research Division

This is Rich Goss calling for Howard. I know you said you weren't able to provide any details in the timing of the investigator-sponsored trials. But I was wondering if you had any opinions on which tumor types you believe might have the greatest potential?

Brian Schwartz

I think it's 3 randomized trials, and obviously, we put more effort on the randomized trials than the single agent trials when we put the trials together. So the 3 randomized trials there. And you can see from clinical trials [indiscernible] some of them have stopped recruiting and then the data collection phase are -- the one that's furthest along is the prostate cancer [indiscernible]. The second one is head and neck in combination with cetuximab. And the third one is in papillary renal in combination with erlotinib. So those 3 trials, the randomized trials, were the ones that we have the most interest in. Some have finished accrual, some are still continuing. And our hope was we would get the prostate cancer data at the last data review. There weren't enough events, so we're still waiting for the next round.

Paolo Pucci

And then if I may add to that, though we don't have preference, we don't handicap them differently, there are a few things that still can be said. For example, we do see that the combination of the [indiscernible] cetuximab was a useful combination. It didn't exactly know when we started it in the past. We do know that the erlotinib combination with c-MET inhibitors is now a little bit more in question because of the lack of success both at the end some of our colleagues have had. And the process remains a very interesting field based on the results that were achieved by other c-MET inhibitors that are now in Phase III. That's how I would put the way we look at it so far.

Operator

And at this time, I'm not showing any further questions. I would now like to turn the call back over to William Boni for any closing remarks.

William B. Boni

Thank you, everyone, for attending our Q1 2014 call. We look forward to providing you with additional updates as the year progresses. And if you have any questions, please don't hesitate to e-mail me or give me a call. Thanks a lot. Have a great rest of the day. Take care.

Paolo Pucci

Bye-bye.

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 great day.

Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to www.SeekingAlpha.com. All other use is prohibited.

THE INFORMATION CONTAINED HERE IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL, CONFERENCE PRESENTATION OR OTHER AUDIO PRESENTATION, AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE AUDIO PRESENTATIONS. IN NO WAY DOES SEEKING ALPHA ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S AUDIO PRESENTATION ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS.

If you have any additional questions about our online transcripts, please contact us at: transcripts@seekingalpha.com. Thank you!