Osiris 's (OSIR) CEO Lode Debrabandare on Q1 2014 Results - Earnings Call Transcript

| About: Osiris Therapeutics, (OSIR)

Osiris Therapeutics Inc (NASDAQ:OSIR)

Q1 2014 Results Conference Call

May 13, 2014 / 9:00 A.M. E.T.


Lode Debrabandere – President & CEO

Phil Jacoby – CFO


John Ranin – Jefferies & Co.

Ted Tenthoff – Piper Jaffray & Co.

William Plovanic – Canaccord Genuity


Good morning, everyone. Welcome to the Osiris Therapeutics' first-quarter 2014 earnings conference call.

Before we begin, I would like to remind everyone that this conference may include forward-looking statements that involve uncertainties and risks. Actual results could differ materially from those anticipated in forward-looking statements for many reasons, including the factors described in the section entitled, risk factors, in our filings with the Securities and Exchange Commission.

As a reminder, today's call is being recorded.

I would now like to turn the conference over to Dr. Lode Debrabandere, President and CEO of Osiris Therapeutics. Please go ahead, sir.

Lode Debrabandere

Thank you, Ben. Good morning, everyone. Welcome to our first-quarter 2014 conference call.

As mentioned by the operator, I would like to draw your attention to our forward-looking statement disclaimer. You should keep in mind the risks associated with any possible forward-looking statements made today. For further information on risk statements, you can look at our filings with the Securities and Exchange Commission.

For the call today, I plan to provide an update on the progress we made, and the execution of our business strategy of innovation, commercial transformation, and differentiation, as we continue to position the Company as the regenerative medicine leader in wound care in orthopedics and sports medicine. After that, Phil will discuss in more detail the financial performance, and I will wrap it up with our key priorities moving forward.

Let's first review our recent key accomplishments. We continued to experience very healthy growth in the first quarter, and reported sales of $10.1 million, a 146% growth over same-quarter last year, and a 25% growth over the previous quarter. Second, gross margin improved from 73% in the previous quarter to 78% this quarter. Third, Osiris obtained Medicare coverage in nine states, representing 18% of Medicare lives.

This quarter we also reported a loss from continuing operations of $600,000. As you know, we continue to invest heavily in our commercial transformation, and, as expected, we incurred initial commercial expansion costs in the first quarter. As explained in our March conference call, and I'll repeat it again today, we expect the investments in our new sales infrastructure to pay off in the second half of the year.

We also strengthened our leadership team with the recent additions of Dwayne Montgomery, who is leading the Orthopedics and Sports Medicine franchise, and Theresa Dixon, who is our General Manager for Market Access and Reimbursement. The commercial team stands at 70 people, as of today.

To further differentiate our products, additional studies are being conducted, internally as well as externally. Pharmacoeconomic and scientific characterization studies were featured at this April's Symposium for Advanced Wound Care, and I will elaborate on this in a few minutes.

Also, at the March Annual Meeting of the American Academy of Orthopedic Surgeons, Dr. Vangsness, who is Professor of Orthopedic Surgery and Chief of Sports Medicine at USC, presented a very well-attended session on the characterization of Cartiform for microfracture augmentation for focal chondral defects. Lastly, we received a third milestone payment of $15 million in cash, as per the agreement with Mesoblast.

Let's review now, in a bit more detail in the next slide, the numbers for the first quarter, and compare them to the same-quarter last year and the previous quarter. I'm really pleased with the quarter-over-quarter growth rate of 25%, or revenue of $10 million. With our recent commercial expansion, and the newly hired sales force trained and in the field now, we do expect continued growth.

But even more important are our increased efficiencies in manufacturing and logistics that, along with increased volumes, resulted in significant gross margin improvements. Gross margin improved 5 points, from 73% to 78%. Gross profit for the quarter increased from $5.9 million in the previous quarter to $7.8 million this quarter, an increase of 32%.

As mentioned earlier, I will provide, every quarter, updates on the progress we make in the execution of our business strategy. The key drivers of our business strategy are innovation, commercial transformation, and differentiation.

Let's get started with innovation. Obviously, the launch of a new product is a clear example of innovation. But also, in my opinion, equally important is the improvements our scientists make on existing products. Improvements can include expansion of indications through Phase III quality clinical programs, new delivery systems, improved biology and efficacy of our products, and so on.

A terrific example of innovation and of bringing high-quality, effective and easy-to-use products to our customers is seen in our newly launched Grafix delivery system, which is featured on this slide. In order to effectively compete, we needed to bring smaller sizes to the marketplace that are also very easy to use. Very easy to use is not always obvious for living cell skin substitutes like Grafix, Dermagraft, and Apligraf. There's always the process of thawing, rinsing, handling, and applying these wet graphs to wounds. The smaller the graphs, the more difficult this handling can be.

However, with this brand-new delivery system of Grafix, we've made the whole process fast, easy, and a great experience for physicians and wound-care nurses. With the transparent backing, you can actually see the wound through it. And to apply the graph to the wound, you just hold the graph over the wound and slide it on with your finger; no tools needed at all. A first-grader can do it, and it just only takes three seconds.

An additional major advantage of this new delivery system, besides the fact that it really looks very nice -- you've got to admit that -- is the unique design of this plastic-like backing. This unique type of mounting configuration, and the type and sequence of drilled holes on the backing, allows the manufacturing of Grafix using much less cryopreservant. Therefore, thawing the graph is now 5 times faster than before. It only takes a minute or two.

Grafix, in this brand-new delivery system, is launched and offered in four different sizes: 5 by 5, 3 by 4, 3 by 2, and 2 by 1.5 centimeters. The initial feedback from our customers is extraordinarily positive, and we have completely eliminated all potential small inconveniences that a living skin cell substitute application might have.

Let's go to the next pillar of our business strategy, which is commercial transformation. I already provided updates on the commercial progress, and will not repeat those anymore. However, let me zoom in into two most important areas of our commercial strategy: reimbursement, and sales force expansion and deployment. I'm really pleased to announce that Grafix is currently covered in nine states, representing 18%, or close to 7 million, of covered Medicare lives. We still have a long way to go, and a newly hired market access and reimbursement team is laser focused to make continued progress. We expect additional coverage in the second half of the year, and we will keep you posted on this progress during upcoming investor meetings or conference calls.

From a sales force expansion and deployment perspective, we initiated, in the first quarter and through the month of April, our first wave of hiring. As of today, the commercial team includes 70 people, including 10 reimbursement specialists. Our focus over the previous two to three months has been to fully train and deploy the team. As mentioned during the March conference call, the impact of the team will take some time, and there's more expected in the second half of the year.

Our commercial strategy to date has not changed. We initially focused on the high-potential VA hospitals. As you know, there are 145 in the country. The goal in 2014 is to obtain repeated usage in at least 80. These 80 high-volume VA hospitals represent 85% of the overall VA business in wound care.

I'm really pleased with the progress to date, as close to 90% of the targeted VA hospitals have already started to order and use Grafix. While the VA is an extremely crowded and competitive market, the clinical results of Grafix and the unique science behind it are very well received and acknowledged by the VA healthcare providers.

The third pillar of our strategy is differentiation. Differentiation is what elevates great products to great brands. Great brands are set apart from the competition because they offer unique, differentiating benefits that competitors don't have or they didn't generate the evidence for it.

For this past quarter, I would like to highlight two areas of differentiation that we accomplished, and both represented at last April's Symposium of Advanced Wound Care. I'm pretty sure you all get the question: If all of these placental-derived products are the same? And if not the same, how are they different?

Well, there are many areas of differentiation. However, the most obvious one is how the product is manufactured. There are two main categories of manufacturing. One, cryopreservation technologies versus, second one, non-cryopreservation technologies. In most cases, cryopreservation technologies allow the presence of living cells, and keep the three-dimensional extracellular protein matrix completely intact. Then, you have non-cryopreservation technologies, or dry products, that do not allow the presence of living cells, and do modify or destroy the extracellular matrix of the tissue.

For this particular differentiation study, a quantitative analysis was conducted for relevant variables of wound management, as broadly described in literature, were compared between products manufactured through cryopreservation techniques and products manufactured through non-cryopreservation techniques. The following variables of wound management were evaluated through quantitative assays, anti-inflammatory and antioxidant properties, cell migration and recruitment characteristics, and angiogenesis potential.

The table in this slide provides the comparative results of all parameters tested. I will spare you the scientific details of these assays and of the relevance of these variables in wound closure management. All of these are very well described in literature, and are considered relevant for diabetic foot ulcers.

Every wound-care expert knows that you must control inflammation of the wound beds. You must also stop the damaging effects of reactive oxygen species in the wounds, and provide protection from apoptosis. It is also described in literature that in order to close the wound area and rebuild surrounding tissue, indigenous cells must first migrate into the wound area.

Two types of cells whose migration is critical are fibroblasts and keratinocytes. Fibroblast migration is important as these cells [who form the granulation tissue] and secrete extracellular matrix proteins. Keratinocytes are critical for re-epithelialization.

Lastly, angiogenesis was tested. Vascularization is a critical step in the wound-closure process. Formation of new blood vessels is required to provide nutrients for cells to be able to survive and proliferate to close the wounds. The formation of tubes or blood vessels can be quantified and measured.

As you can see, across the board, the ability to improve these very important wound-management variables by using cryopreserved technologies compared to non-cryopreserved technologies is huge. In this overview, this comparison is expressed as relative-effect size. The differences speak for themselves, and range from about 200% improvement using cryopreservation technologies, to over 800% improvement by using cryopreservation technologies compared to non-cryopreservation technologies -- pretty impressive. The scientific data will be published soon.

Lastly, before Phil walks you in more detail through the financials, I want to highlight top-line data on the ongoing pharmacoeconomic evaluation study. This pharmacoeconomic evaluation study focuses on the economic advantages that Grafix provides, using both real-world data of our 302 clinical study, and claims and discharge data from approximately 7 million patients sourced from the Center of Medicare and Medicaid.

This comprehensive economic benefit research project is a collaboration between our academic clinical research organization, CPC, who is responsible for the management, conduct, and statistical analysis of the 302 clinical trial, and the team of health economic experts of the Division of Healthcare Policy and Research at the University of Colorado Medical School. The goal of this pharmacoeconomic evaluation was to understand the real cost of closing the wounds in a patient, and the real cost of not being able to close a wound.

Treatment costs, or just the cost of a medication, does not reflect the actual cost to the healthcare system when addressing the clinical condition of a diabetic foot ulcer. A holistic estimation of costs needs to include all patient medications, all additional clinical procedures, and adverse events, such as infections, as well as much more expensive, in-patient hospitalizations and down-the-road amputations.

This evaluation was pretty comprehensive, and resulted in 106 cost-related variables that were finally bucketed in five distinct cost categories, and matched with claims and discharge costs from the CMS database. This comparison will be done at 3 months, 6 months, and 12 months. Already at three months, the cost/benefit study highlights the overall cost savings of closed ulcers versus non-closed ulcers in the DFU trial.

Mean cost savings for a closed ulcer was $20,622, which represents a 47% cost saving over the course of the first three months compared to non-healed ulcers. Over $20,000 of cost savings in the first three months is a huge number, and was highly statistically significant.

As you can imagine, the cost of not closing a diabetic foot ulcer starts to escalate over time as more cost-significant events arise, such as administering additional treatment modalities, which we all know have limited efficacy; adding additional clinical visits and procedures; managing complications of infections; repeated hospitalizations; and ultimately, amputations. The team is currently quantifying these costs for the six-months and one-year time points, and we expect to observe much more important cost benefits over longer periods of time.

We plan to use these cost/benefit assessments in discussion with the payors, and will make the argument that investing upfront in a slightly more expensive but superior quality product is paying off very, very fast; as a matter of fact, within weeks. Both the scientific differentiation study and this economic benefit study are examples of how Osiris will continue to collect data to support and set apart our brands. I expect to be able to provide further updates on these programs during future calls.

Now, I'm going to let Phil discuss, in more detail, the financial aspects of our Business. Following that, I will conclude the call with our key priorities. Phil?

Phil Jacoby

Thanks, Lode. Good morning, everyone. As you probably know, we did file our quarterly report on Form 10-Q yesterday afternoon, in addition to our usual press release announcing our financial results. Many of you may have already had the opportunity to read the complete results for the quarter.

On our balance sheet, we continue to report a very solid financial position, including almost $81 million in cash, investments and receivables as of the end of the first quarter. In the first quarter, we did utilize almost $5 million of our investments available for sale. We invested $4.3 million of that in our trade receivables, and a little over $400,000 of that in our product inventory.

Our days sale outstanding of our trade receivables at the end of March had increased to approximately 90 days outstanding, as we are offering temporary, longer payment terms as an incentive to new customers who were brought in primarily by the new members of our sales team. We expect to continue these incentive programs for most of the current fiscal year, so receivables will probably stay pretty high.

But at the same time, I'm pleased to inform you that the quality of our trade receivables remains excellent. We did not incur any bad debt expense whatsoever in the first quarter of this year. Our inventory continues to turn over very rapidly, and we presently have less than 30 days sales in inventory.

Our current assets also include trading securities of approximately $16.7 million, which represents the $15 million in stock paid to us on the Prochymal sale, plus the value of the downside protection against price declines that could occur between the date we receive the stock and what we'll be able to sell it in December of this year. The price protection derivative is valued at $1.9 million at the end of the first quarter, and this entire amount will be absorbed into other income/expense by year end. This is a non-cash charge, however.

Our current assets at March 31 also include other receivables of $15 million, which was paid to us in cash by Mesoblast in April of this year. We ended the quarter with $91 million in total assets, including $83.5 million of current assets. Our total liabilities were just under $10 million, and we continue to have zero debt.

On the income statement, our product revenues during the first quarter of this year, as Lode said, was $10.1 million. It was almost 25% higher than what we experienced in the fourth quarter of FY13. The gross margin increased to 78% for the first quarter compared to 72% for the same period of the prior year. We believe that we should be able to maintain these gross margins throughout the year, but we could experience variations due to manufacturing efficiencies and changes in product mix.

We do continue to operate our facilities using a single shift, but we have expanded the manufacturing over most Saturdays and Sundays. We do expect to move to a second manufacturing shift in the very near future.

Our research and development investment in the first quarter of FY14 was approximately $700,000, which is unusually low for us. This reflects the completion of most activities on our Protocol 302 study, and also the delay of beginning our venous leg ulcer studies. We expect to experience increases in our R&D costs during the remainder of the year as we continue to invest in additional studies, develop new products, as well as continue our product improvement efforts on our existing products.

Our selling, general and administrative expenses grew to $7.2 million in the first quarter of this year, from $2.4 million in the prior year. SG&A costs were almost 72% of product revenues in the first quarter of FY14. As Lode discussed a few minutes ago, we are investing very heavily in building our sales, marketing and reimbursement infrastructure to support and promote our continued sales growth. We brought in almost 70 new professionals in the first months of FY14, and we've already started to see sales increases from these assets in April and in the beginning of May of this year. We do expect that investment to start paying off very substantially in the second half of the year.

We reported a loss from continuing operations of $611,000 for the quarter. This loss included approximately $1.3 million of non-cash charges related to share-based compensation paid to our employees and members of our Board of Directors, changes in the fair market value of the Mesoblast stock and related price-protection derivative, as well as depreciation charges.

We reported a loss from discontinued operations of approximately $750,000 for the quarter. We incurred these costs wrapping up our Prochymal activities, and assisting in the transition of that business to Mesoblast. We expect these costs to be completely eliminated during the next several fiscal quarters.

We reported a basic and a diluted loss per common share from continuing operations of $0.02 for the first quarter of this year.

With that, Lode, I will turn it back to you.

Lode Debrabandere

Okay, thanks, Phil. I will wrap it up here with our key, near-term strategic priorities. First: obtain full reimbursement for Grafix; thus the same key priority first quarter will be the same priority in the next two or three quarters. This is the most important one, and will not change. We have started the process and obtained coverage in nine states, and will continue to focus on this deliverable.

Second: grow revenue. We have a new sales team in place, and have focused the team on penetrating the VA hospital setting. With the recently obtained reimbursement and expected future additional reimbursement, we plan to expand our reach into the commercial space in the second half of the year.

Third, educate physicians and nurses on the 302 clinical data, and the government and private payors, on the powerful pharmacoeconomic research data. Fourth, continue to build in additional efficiencies in our operations, and manage our gross margin. We already improved the gross margin from 58% in 2011, to 67% in 2012, to 73% in 2013, and started this year with a gross margin of 78%. Lastly, we want to expedite the publications of multiple manuscripts on the recently completed scientific, clinical and cost-benefit studies.

To conclude the call, you are invited to see us at the many, many upcoming events. It will be a busy next couple of months, as we expect our reach and presence at multiple medical and scientific and investor conferences.

With that, I will conclude my comments and turn the call over to the operator for questions. Thank you very much.

Question-and-Answer Session


(Operator Instructions) Our first question today comes from the line of Eun Yang of Jefferies. Your line is open. Please go ahead.

John Ranin – Jefferies & Co.

This is John Ranin. Firstly, in the past, the Osiris has commented that BLA would be filed for Grafix though not required by the FDA, can you provide any color on this? Are you in discussions with the FDA concerning the future path? When might we hear about the outcome?

Lode Debrabandere

Yes, John, that's a good question. Your first statement is actually totally correct. Grafix is regulated as a 361 product.

We have the option to file BLA, not mandatory. We are in active discussions with the FDA right now, and will give you updates as appropriate, but I don't plan to give updates during the discussions and during our process of clarifying the pathway to transition Grafix from 361 to 351. We will give you updates as appropriate.

John Ranin – Jefferies & Co.

Okay, great. Then a quick follow up. Upon expiry of pass-through status for Grafix, what do you anticipate to happen when it expires? What would happen to the Medicare coverage at that time?

Lode Debrabandere

That's a good question. As you know, we assure to get passed through to the end of this year, potentially longer, but that's not a guarantee. Then we'll fall under the bundling rule, which is in effect right now for most other products. That's one of the reasons that we have actually started to launch the smaller sizes on this improved, new delivery system.

Smaller sizes will all fall under the bundle, and I think it's just cheaper for us to make them. It's cheaper for us to offer them to the customers. We are ready to enter that new space as soon as it starts.

With our four different sizes, three of them will fall totally under the bundle, one will remain a little bit more expensive. That's the 5 by 5, and that's fine, because that's for really huge wounds. Diabetic foot ulcers are traditionally not 25 square centimeters. If they are, we start off with this one.

With all the pharmacoeconomic evidence that we generated recently, and are continue to generate, we really have a very strong value proposition here. We are perfectly prepared for this new bundling rule timing when it happens.

John Ranin – Jefferies & Co.

Great. Last question. If a new trial is required for BLA filing, what would be the requirement from the FDA? If new data is needed, would diabetic foot ulcer data be enough?

Lode Debrabandere

That's part of the discussions we have with the FDA now. The different options that we are evaluating with them, and I can't go into detail on this particular question, but Osiris is committed to complete the clinical studies needed to complete the BLA.

John Ranin – Jefferies & Co.

Okay, great. Thank you.


Thank you. Our next question comes from the line of Ted Tenthoff of Piper Jaffray. Your line is open. Please go ahead.

Ted Tenthoff – Piper Jaffray & Co.

Congrats on the nice quarter. My first question has to do with incremental data that could be coming for Grafix. I know you've discussed venous leg ulcers in the past.

What could that do in terms of increasing utilization? We clearly have seen the Protocol 302 data and the impact that's starting to have. What kind of impact should we be expecting from VLU?

Lode Debrabandere

That's a good question, Ted. When we take a step back, to me, VLU is all about same size as DFU's, if not a bit bigger market opportunity. It is a significant business opportunity. Osiris being Osiris, we will conduct a well-controlled, randomized, multi-center study, Phase-III quality study.

As we embark in this, it is going to be a similar program as the 302 study, so that takes a bit of time. I prefer to invest upfront the time and money and come up with a bit of quality program. As that all wraps up, that, indeed, might open new opportunities to more actively provide the clinical evidence that physician's demand and should demand for these kind of products. That might take a while to complete that study.

Ted Tenthoff – Piper Jaffray & Co.

Okay, great. Looking at the sales in this quarter, where are the majority of those sales coming from?

Lode Debrabandere

Well, as mentioned in the call, our new sales force is extremely focused right now on the VA setting and will for a little bit. I'm a strong believer in really penetrating a particular market segment you identify. You penetrate that, and you become the market leader in that. That's what we do right now, and that's what we will continue to do for a while. Therefore, majority is VA and might actually stay for a little bit VA till more reimbursement is obtained.

Ted Tenthoff – Piper Jaffray & Co.

Okay, great. Lastly, just on the margins. Fantastic results there. Is this sustainable going forward?

Lode Debrabandere

Yes. It is -- many reasons why margins improve, from process efficiencies to product mix changes to volume increases, et cetera, et cetera. There's always a little bit of wiggle room in that, but like I mentioned a while ago, our goal is really to get to these higher 70%s to about 80% even gross margin. That's a goal. We are well on our way to that goal.

I can't commit that this is going to be a total, smoothless trajectory to get there, but nevertheless, our goal is 80%. As I mentioned, we come from 58%. We are at 78% right now.

Our products are complicated to make. They require quite some resources and are labor intensive, but as you grow and as you build efficiencies and as you train your people, you can get to better margins. Our goal is up to 80%.

Ted Tenthoff – Piper Jaffray & Co.

Alright, excellent. Thanks, Lode.


(Operator Instructions) Our next question comes from the line of William Plovanic of Canaccord Genuity. Your line is open. Please go ahead.

William Plovanic – Canaccord Genuity

Great. Thanks. Good morning.

Lode Debranbande

Hey. Good morning, Will.

William Plovanic – Canaccord Genuity

Congratulations on a good quarter. Couple questions for you. Just in terms of the rep hiring, you mentioned that you brought them on -- like 70 people. How many are quota carrying reps? You mentioned the back half of the year. Is this more a Q3 Q4, or should we really see it start ramping up like in June?

Lode Debrabandere

Okay. As I said, at 70-ish and 10 of those are reimbursement specialists, so they are not really sales reps. The rest is salespeople.

William Plovanic – Canaccord Genuity


Lode Debrabandere

Your second question was when do we expect a return of the sales to significantly increase, was that your question?

William Plovanic – Canaccord Genuity


Lode Debrabandere

They are all pretty new. They're all pretty recently trained. They're all pretty recently in the field, so it takes a bit of time. Normally, my base-case scenario is it takes six months for a rep to be pretty productive and to grow to full capacity. That's my expectation.

Of course, that goes hand-in-hand with our ability to secure reimbursement. With reimbursement the rep can get to full capacity, without reimbursement, the rep cannot get to full capacity. These things go hand-in-hand. I'm pleased to where we are at right now, and I expect this investment to start to pay off in the second half of the year.

William Plovanic – Canaccord Genuity

Okay. You mentioned that you have -- I think it was nine states covered, if I'm correct? Which MAC did you get? Is that one or two of the MACs, and which ones are those?

Lode Debrabandere

Two MACs. One in Northeast and Mid-Atlantic.

William Plovanic – Canaccord Genuity

Okay. As I look at the business, the question is always, how much of your business is coming from this split between Cartiform, Ovation and wound care? Or, if you're splitting it up, how much is from orthopedics verse wound care? On top of that, Stability Biologics, are they all of your orthopedic sales, or are they just a component of sales?

Lode Debrabandere

We haven't broken down the numbers, and I don't plan to do this in the foreseeable future. We might change that down the road, but for now we don't.

In terms of the orthopedics, Stability Biologic is an important partner for us and is working on the orthopedics side. Having brought a drain on and the expanded team in sports medicine of little bit as well, we do start to have more of a balanced approach here. Overall, Stability remains an important partner for us.

Like I mentioned, Cartiform -- your question was around Cartiform. As I mentioned before, I didn't really highlight Cartiform or OvationOS right now, in this call, because we are still way more in a extensive clinical evaluation phase for these products. That's what I prefer to do is collect the appropriate data, take your time, do the right things.

The issue with these, the issue which is pretty normal, but what the clinical endpoints are for bone growth and for cartilage repair, it's not a six-week, twelve-week wound closure endpoint. It's a two-year endpoint, so it takes more time to fully assess the role and the benefits of these products. That's why there's more focus on the clinical side to push this products forwards, than on the commercial side.

William Plovanic – Canaccord Genuity

Okay. But, to go back to the wound care orthopedic, to ask a different way, you went from about $4 million to $10 million year over year. Nominally, was the driver of that orthopedics, or nominally, of that $6 million increase was the driver of that wound care?

Lode Debrabandere

You asked the same question twice, Bill. (laughter) I'm going to give you the same answer.

William Plovanic – Canaccord Genuity


Lode Debrabandere

So that's that.

William Plovanic – Canaccord Genuity

Okay. Thanks, Lode. Appreciate taking the question.


Thank you. Ladies and gentlemen, that does include our question-and-answer period. I'd like to turn the conference back over to Dr. Debrabandere for any closing remarks.

Lode Debrabandere

Thank you very much for joining us. Looking forward to upcoming meetings and to the next conference call in August. Thank you so much. Have a wonderful day. Bye-bye.


Ladies and gentlemen, thank you for your participation in today's conference. This does conclude the program, and you may all disconnect. Have a great rest of your day.

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