OXiGENE's (OXGN) CEO David Chaplin on Q2 2014 Results - Earnings Call Transcript

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 |  About: OXiGENE, Inc. (OXGN)
by: SA Transcripts

OXiGENE, Inc. (NASDAQ:OXGN)

Q2 2014 Earnings Conference Call

August 5, 2014 4:30 PM ET

Executives

David J. Chaplin – President and Chief Executive Officer

Barbara Riching – Chief Financial Officer

Analysts

George B. Zavoico – MLV & Co.

Reni J. Benjamin – H.C. Wainwright & Co.

Richard Cabot – Emertech Financial Group

Operator

Good afternoon and welcome to OXiGENE's Conference Call to discuss Second Quarter 2014 Financial and Business Results. Today's call is being recorded and webcast. On todays call from OXiGENE our President and Chief Executive Officer Dr. Dave Chaplin; and Chief Financial Officer, Barbara Riching.

Following this introduction, Dr. Chaplin will provide a business and clinical update and Ms. Riching will review the Company's financial results. Following the introductory remarks, the Company will take questions. OXiGENE’s second quarter 2014 financial results press release was issued today and is available on the Company’s website at www.oxigene.com.

During the conference call, members of the OXiGENE management team will make certain forward-looking statements regarding the Company's future plans and anticipated outcomes that involve risks and uncertainties that may cause the actual results or outcomes to be materially different from those anticipated and discussed on this conference call.

Factors that may cause such differences include, but are not limited to, those risks and uncertainties associated with the preclinical and clinical drug development processes, potential business and financing transactions, and the ability to obtain additional financing to fund the Company's operations.

Please review the risks and uncertainties detailed in the Company's Annual Report on Form 10-K for the year ended December 31, 2013, Quarterly Reports on Form 10-Q, and the Company's other filings with the Securities and Exchange Commission.

Now, I'd like to turn the call over to Dr. Dave Chaplin.

David J. Chaplin

Thank you, operator, and welcome everyone to our call today. I am very pleased to be participating today in my first quarterly update since being appointed President and CEO in May. By way of background as many of you know I have been involved with OXiGENE for sometime both as a Board member and previously as Chief Scientific Officer.

As a tumor biologist I was involved early on in development of the concept of vascular disruption. I believe that our understanding of the therapeutic promise of this class of drugs has grown significantly and that we are on the cusp of being able to deliver meaningful benefit to patients with cancer.

These past few months have been busy and productive time at OXiGENE. Our science continues to advance and we now have meaningful clinical data on our lead compound fosbretabulin also known as ZYBRESTAT in two different tumor types, ovarian and thyroid.

We anticipate new trials of fosbretabulin will soon be underway, a Phase II clinical trial in gastrointestinal neuroendocrine tumors or GI-NETs for short and a Phase I/b2 trial in recurrent ovarian cancer in combination with Votrient to be sponsored by two UK based non-profits, pending agreement on the terms of the final contract.

We are in a strong cash position following the financings early this year and now have more resources to support clinical development activities as well as our ongoing earlier stage discovery efforts. What excites me most about opportunities at this juncture is the tremendous opportunity going forward driven by achievements in three major areas.

First the clinical indication of fosbretabulin activity in ovarian cancer as evidenced by the positive results in the GOG study. Secondly, our strong intellectual property position; and third, our strength in financial position which provides us with the resources to drive our programs towards our next milestone.

To that end, let me briefly review the status of our R&D programs including recent progress and our outlook on key developments in the coming months. I’ll start with the clinical data generated to-date on fosbretabulin in solid tumors.

As you know our lead program fosbretabulin has shown meaningful clinical activity in ovarian and certain thyroid cancers. Given its novel anti-vascular mechanism and ability to block blood flow, we have also identified a compelling opportunity to explore its potential in gastrointestinal neuroendocrine tumors or GI-NETs.

These are slow growing and often (indiscernible) types of carcinoid tumors which do not produce notable symptoms until they spread to the liver where they produce hormones and biological substances that can cause debilitating symptoms. While drug treatment with somatostatin analogues helps to control the symptoms of carcinoid syndrome, patients who become unresponsive to somatostatin have limited therapeutic options beyond surgery or radiation.

Given this opportunity, we are on plan to initiate a company sponsored Phase II trial of fosbretabulin monotherapy in patients with recurrent GI-NETs who have elevated biomarkers. This study is currently on-track to begin soon in the third quarter. The study will evaluate fosbretabulin in approximately 20 somatostatin-refractory GI-NET patients at five clinical sites in the U.S. The primary endpoint is a reduction of biomarkers, and secondary endpoints include improvement in symptoms, tumor shrinkage and quality of life. We estimate that we can recruit patient into the study within 12-months.

As a remainder, we believe there is a strong rationale for pursuing fosbretabulin in this indication, late last year our collaborators from the Albert Einstein College of Medicine presented preclinical data showing significant activity with fosbretabulin treatment in preclinical models of neuroendocrine tumors.

Finally, I would like to point out that the strategy [ph] may also provide additional patent protection for fosbretabulin for which we have recently filed an additional U.S. patent application.

Another project we ought to initiate soon is in ovarian cancer, a Phase Ib/II study evaluating the combination of fosbretabulin and tyrosine kinase inhibitor pazopanib or Votrient in patients with recurrent disease.

As you may recall the study is being led by The Christie Hospital in U.K., a prominent non-profit research hospital. We estimate that it will begin enrolling patients this fall pending completion of final agreements to support the study and provide drug supply. The planned trial is design to enroll approximately 120 patients, both platinum-resistant and platinum-sensitive with progression free survival as the primary endpoint.

We expect the study to build on the body of knowledge about fosbretabulin in the ovarian indication and could provide further evidence of the complementarity of anti-vascular drugs combining angiogenics and VDAs. Also in ovarian cancer we are very pleased to confirm that more data from the GOG study of fosbretabulin in combination with bevacizumab will be presented at the International Gynecologic Cancer Society conference in Melbourne this November. You recall that we previously reported topline results from the study showing that it achieved its primary endpoint of an increase in progression free survival.

Specifically, the result showed a significant improvement with the combination of fosbretabulin and bevacizumab as compared to bevacizumab alone. The presentation of more complete data in November will be important to providing greater insight into the potential of fosbretabulin in this indication. As we think about the opportunity in ovarian cancer presented by these studies we are also increasingly encouraged by the potential role of fosbretabulin as part of non-chemotherapeutic regimen for recurrent ovarian cancer.

Patients with recurrent ovarian cancer often experience a significant number of treatment cycles with conventional chemotherapeutic agents. A combination of anti-vascular therapies could we believe offer patients meaningful therapeutics benefit without the same side effects and limitations associated with conventional chemotherapy, and provide physician with an additional tool for managing this difficult cancer.

Our recent discussion with thought leaders in the field have underscored their potential interest in such an approach, which is informing our current development plans for future studies of fosbretabulin in ovarian cancer. We look forward to assessing the complete dataset with our advisors and outside experts in order to determine the most appropriate pathway forward.

Let me conclude with a few other pipeline related comments. For fosbretabulin anaplastic thyroid cancer continues to be a potential opportunity for OXiGENE and we are evaluating the possibility of a future regulatory filing in Europe using the exceptional circumstances pathway. During the quarter we have also proceeded with additional drug manufacturing in order to support all of our ongoing drug development programs of fosbretabulin and potential late stage studies in the future.

The Phase I study of OXi4503 in AML is continuing at a single center at the University of Florida. We are evaluating strategies to accelerate this study going forward. Our research collaboration with Baylor University continues to flourish, these early programs focusing on benzosuberene as payloads for Antibody-drug conjugates and the development of novel cathepsin L inhibitors have shown potential.

We look forward to additional progress and again are looking at ways to potentially accelerate the preclinical development of these assays.

With all of these initiatives in place I'm optimistic about the next phase of the company and look forward to seeing additional progress in our various development programs. We continue to take steps to advance our company and anticipate a number of important milestones in our near future as we advance our lead candidate in multiple indications. And we also continue to investigate potential strategies for accelerating progress in our earlier stage programs.

The Board and management team join me in thanking you for your continued support and interest in the company. Now let turn our call over to Barbara Riching, our CFO.

Barbara Riching

Thanks Dave. Good afternoon every one. The second quarter was significant for OXiGENE as we further strengthened our cash position through a $16 million offering of stock and warrants in May. Including net proceeds from the offering our cash balance as of June 30, 2014 was $36.3 million compared to approximately $7 million at December 31, 2013. With these resources in place we are able to proceed with R&D investment to support our clinical and preclinical programs as Dave just outlined. Based on our current and plan new programs and our current operations we expect our cash balances to last approximately through mid-2016.

As for current results for the quarter ended June 30, 2014 we reported a net loss of $3.9 million compared to a net loss of 1.7 million for the comparable period in 2013. The increase in the net loss for the 2014 quarter was primarily related to an increase in R&D expenses associated with advancing our pipeline. Specifically increased costs were primarily related to ongoing manufacturing for clinical and potential commercial drug supply as well as expenses associated with the planned clinical trial for fosbretabulin in GI-NETs.

Our G&A expenses for the second quarter of 2014 were $1.8 million compared to $1.1 million for the second quarter of – as compared to the second quarter of 2013. The increase was primarily due to a one-time charge related to executive compensation, marketing research and an employee incentive compensation program.

I would also like to add that we are increasingly encouraged by our ability to proceed with additional R&D activities at the company. The cash resources we now have in place enable us to more comfortably move forward with our various programs. We are pleased to get these activities underway and to maximize the potential benefits to our shareholders. Thank you for your ongoing interest and support of our company.

I would now turn the call back to the operator to open up for questions.

Question-and-Answer Session

Operator

(Operator Instructions) And our first question comes from the line of George Zavoico of MLV & Company. Your line is now open.

Barbara Riching

Hi George.

Operator

Sir, please check your mute button.

George B. Zavoico – MLV & Co.

Well, hi, sorry about that. Hi and thanks for taking my question. Dave, a question could you about the GI-NET market…

David J. Chaplin

Yes.

George B. Zavoico – MLV & Co.

Can you describe what the potential size of that market is – is it larger than the anaplastic thyroid that’s pretty small (indiscernible) bigger than that?

David J. Chaplin

Yeah, it’s bigger than that but of course anyway I can address that in terms of if you look at the drug that’s approved for treating carcinoid in terms of symptoms and everything else is Sandostatin and that drug even last year its sales were over $1 billion. So I think that carcinoid syndrome is relatively a small market, but in fact a lot of patients have symptoms and we anticipate the drug to hopefully have effect on those patients with the symptoms. So it is in terms of if you base it on the Sandostatin market, quite a large market.

George B. Zavoico – MLV & Co.

And in that regard we are moving into GI-NET, are you planning also to leverage the results that you are getting with the combination with Avastin, can that move into a registrational trial to get ZYBRESTAT on the market perhaps sooner.

David J. Chaplin

I mean that’s something you know, George, going forward we can certainly look at, you are probably aware of bevacizumab is being looked at in that indication and you know based on the results we have in ovarian that’s the question we often get asked. Our focus at the moment clearly is to show single agent activity in this Phase II study and then once we've got that is to decide how we move the drug forward in that indication.

George B. Zavoico – MLV & Co.

Okay. And finally you mentioned it on the press release, but what's the progress going forward with 4503?

David J. Chaplin

Yes, I mean I think we are very excited with all our programs, you know the NET the new indication where we've filed patents in that area and of course you are probably aware with the 4503, we have patents that have been filed for the use in myeloid melignancies and that trial has been a relatively slow progressing trial, because they have it in one center in Florida and we are very excited about the area and try to look for ways we can accelerate that going forward. We really want to see based on the very compelling preclinical data we've got, we want to get to an endpoint where we finish this Phase I study. So that’s something we are looking at going forward is the ways we could actually improve recruitment and accelerate that trial.

George B. Zavoico – MLV & Co.

Barbara, the cash going forward, about two years of cash you say. Does that include this potential expansion into these other indications or what's – or as the trials progress or commence do you feel that your burden is going to increase?

Barbara Riching

To some extent it includes them, it includes some costs to potentially accelerating AML for example, it includes this current NET trial that Dave described, it does not include another follow-on ovarian trial and so it really just includes the programs that we have in place or have planned today as well as our operations.

George B. Zavoico – MLV & Co.

Okay, thank you very much for that and look forward to more data coming out this year.

Barbara Riching

Thank you, George.

Operator

Thank you. And our next question comes from the line of Ren Benjamin of H.C. Wainwright. Your line is now open.

Reni J. Benjamin – H.C. Wainwright & Co.

Hi, good afternoon guys, and thanks for taking the questions.

David J. Chaplin

Hi, Ren.

Barbara Riching

Hi, Ren.

Reni J. Benjamin – H.C. Wainwright & Co.

So, just a couple of quick ones, when we think about Avastin and ZYBRESTAT, could you just remind us as to why there should a synergistic effect especially when we are thinking about two agents that are targeting the vascular system?

David J. Chaplin

Yes, I mean, I think, Ren I think the way we look at it, I think a lot of other people in the field look at is the fact that bevacizumab is really out there designed to stop new blood vessel growth, it really does not expect the normal already existing vessels in the tumor, whereas fosbretabulin target those abnormal pre-existing vessels. So, we’re targeting two different components of the tumor. I think that’s why we anticipate that we would like to see in terms of and we’re already seeing that in the GOG study, the fact - the potential of putting these two together, because they act in the complementary way on the vascular system [ph].

Reni J. Benjamin – H.C. Wainwright & Co.

And then, just in terms of the next steps of moving forward. Obviously we are going to see more data with the GOG study, but what’s the rationale for evaluating this now in combination with Votrient versus maybe sticking with bevacizumab?

David J. Chaplin

I think the two different ways of targeting angiogenesis, I mean bevacizumab clearly knocks out one pathway the VEGF pathway, TK inhibitors like pazopanib of course to knock out several different pathways of angiogenesis. I think the interest clearly is - the potential of fosbretabulin is in combination of anti-androgenic growth in this space, so we are actually looking at bevacizumab and we think the Votrient study will give us another way of looking at the combination with anti-angiogenics in a slightly different way. So, we are excited about moving that study forward as well.

Barbara Riching

And I’d just like to point out that study is primarily being funded by a non-profit and so it’s costing us very little - just the cost of the drug and a little bit of extra that we are kicking in.

David J. Chaplin

Yes, I think and that just emphasizes the fact that the interest in this area of combining VDAs like fosbretabulin with anti-angiogenics people are very keen to fund the study to go forward?

Reni J. Benjamin – H.C. Wainwright & Co.

Right, and, I guess where I was kind of going with it was trying to understand the path forward, given that correct me if I am wrong, Avastin has a PDUFA date that coming up in November for a second line ovarian and so clearly the landscape is going to be one that’s where bevacizumab anything should be added on to that as opposed to something else, so I was just to trying get a sense as to your rationale.

David J. Chaplin

I think, you’re right, Ren is the fact that I think we are aware of the landscape changing. We feel currently as we’ve mentioned and that’s one thing we are talking about, the actual potential for a regime that doesn’t contain chemotherapy in these heavily pre-treated patients, I think that other people are looking at TK inhibitors, anti-angiogenics in this indication with that the AZ work with Cediranib and their PARP inhibitors. So I think the – just because I think we expect Avastin to change the landscape in combination with chemotherapy going forward doesn’t mean we shouldn’t look at these other indications or other combinations.

Reni J. Benjamin – H.C. Wainwright & Co.

Yes, fair enough, and I guess another – data that’s coming out from the GOG, do we expect to see any survival data maybe announced in top line results?

David J. Chaplin

I would be hopeful that they would, of course this is GOG data and as the data matures that overall survival data will become mature. So I'm hopeful that at their presentation in November we will see some of that whether it become fully mature, but we expect to see more data on the PFS and OS and also the breakdown of different groups within the ovarian population.

Reni J. Benjamin – H.C. Wainwright & Co.

Excellent. Just switching gears to GI-NET can you talk a little bit about the biomarkers that you are looking at? It seems to be a biomarker – call it biomarker event driven study as to – as opposed to more let’s say clinical event driven study, how should we looking at that - the types of results we’re going to be generating from the study?

David J. Chaplin

So yes, I mean it’s a company sponsored study, those we've done for a while and really is focused on the biomarker, because we expect based on the preclinical data that when we close blood pressure down, weaker cells we stop them producing biological mediators and so we’re actually looking at the classic biological mediator involved in carcinoid tumors which are serotonin, chromogranin A and some other ones on top of that but those are the two major ones we are looking at serotonin and chromogranin enabled. Looking at a variety of biological markers and actually we expect in the preclinical studies if we are actually killing the tumor cells we would do so with biological mediators and it really is a proof of concept Phase II first to go on to design hopefully a larger subsequent study.

Reni J. Benjamin – H.C. Wainwright & Co.

Okay, but is that fair to assume that they will also be secondary endpoints looking at the response rate?

David J. Chaplin

The secondary endpoints will be in term of chain symptom relief, also quality of life also we will get some data on looking at premature shrinkage in tumor size

Reni J. Benjamin – H.C. Wainwright & Co.

And how long do we expect this trial to run and when might we see some initial top line data?

David J. Chaplin

Ren I'm always love to get prediction on this, but we do expect this trials to recruit within a year. And as its you are really looking at each patients being their own control, we will get data out along the way, which we will give us indication to the biomarker changes, because it’s not a control, so it’s not blinded, we are actually looking at the data that comes out from the patients.

Reni J. Benjamin – H.C. Wainwright & Co.

Okay, okay. Just switching gears to the thyroid indication, can you just talk a little bit more about when you’re going to have these regulatory discussions and if any thoughts on the timing?

David J. Chaplin

Okay. Ren, again I would like to be realistic on my timing, I think without discussions with the authorities in Europe and we are incorporating that feedback we have received into our potential MAA filing. And also along with that we’ve already initiated production of registrational drug, which again will be somewhat the limiting factor, because you got to have registration of drug batches plus stability. So it will be realistic in looking at all that I would expect that we would have that data in 2016 for a potential filing.

Reni J. Benjamin – H.C. Wainwright & Co.

Excellent, okay.

David J. Chaplin

If we decide to go forward.

Reni J. Benjamin – H.C. Wainwright & Co.

And then just one final question. I know we've talked about various milestones, especially the initiation of studies that are coming up in the next 12-months and you mentioned obviously that the net study that can have data over the next 12-months. Any sort of publications or data presentations that we can expect over the next six months or so beyond the Gynecologic conference that’s coming up?

David J. Chaplin

I can only give what abstract have been submitted in terms of the GOG term, if we know, I mean we would anticipate hopefully in terms of with the NET next year of having data to be able to submit to a conference as well some time next year. That’s what we are hoping at the moment, we also hope that by the end of the year we’ll have strategy to accelerate our 4503 program. And if we got more patients in that study abstracts will be submitted on that data as well.

Reni J. Benjamin – H.C. Wainwright & Co.

And just to confirm nothing at this year’s Triple Meaning or the ASH conference?

David J. Chaplin

I mean not in terms of the clinical data, no.

Reni J. Benjamin – H.C. Wainwright & Co.

Okay, excellent. Well thank you very much and congrats on the products.

David J. Chaplin

Thanks, Ren.

Operator

Thank you. And our next question comes from the line Richard Cabot of Emertech Financial Group. Your line is now open.

Richard Cabot – Emertech Financial Group

Thank you for taking the call. My first question it seems to obviously that Avastin and ZYBRESTAT work very well in combination shouldering the ovarian cancer. Now Avastin, has used in multiple indications. What indications with Avastin do you think ZYBRESTAT could also be use and other than ovarian?

David J. Chaplin

Well, clearly I think our focus is in ovarian, we've got no data in any other indication to indicate benefit, well one would expect from just from the preclinical data and from the mechanisms there should be potential benefit in any indication that are Avastin is used in, because you are really targeting two different pathways of the blood vessels and tumors, those are already there and those are being formed.

Although its difficult to give you a definitive answer, because really our focus at the moment is looking – getting full data of the ovarian package and looking that data, but we are very encourage the fact we've seen benefit in that indication with this combination, because for many years we've actually said that preclinical data combining anti-androgenic and VDAs have been very compelling and I think for the first time in ovarian data, we are seeing that translated into a clinical settings. So yes we could speculate down the road that it could be used in multiple indications, I think our focus at the movement is on ovarian.

Richard Cabot – Emertech Financial Group

Right. Now that gets to me my next question which is something which I’ve talked with company before on, it seems to me that its vital that OXiGENE partnered with a major pharmaceutical company so it can do a board spectrum of trails, it can get some of these drugs through Stage III in filing much quicker than can on your own? Can you give us some progress on what has happened in partnership front?

David J. Chaplin

I think we are always open to discussion, I think as everything else we along with everybody else want to see the full data of the ovarian package. I also think that the data that comes out of the NET study next year will be key in that kind of discussion as well, but it does, I mean we as much anybody else are always open to the right kind of discussions with right the companies and that’s clearly how we move forward and why we choose our indication to get the best value out of where we are with our compound at the moment, I think that we are doing the pazopanib study clearly in ovarian.

GSK providing the drug, we are providing our drug and clearly people are going to be interested when the full data package on bevacizumab comes out, but clearly that only potential gives us one partner with that indication with bevacizumab. So we are trying to expand our pipeline and interest, the NET study expands it into another area. So I think we are very keen on how we move forward and generate the value in that company of looking at those kind of partnerships, its no something we are closed to.

Richard Cabot – Emertech Financial Group

No because I think that that is really going to be the critical thing to shareholders, because to be very honest with you as a long-term shareholder we've seen substantial decline of the last five years and the stock parts and a lot of its because of the dilution of these offerings, because you don’t have the funding of a major pharmaceutical company behind you. And I really want a stress that that’s where shareholders are focusing and what to see that’s going to be difference in the stock price at this point.

David J. Chaplin

I mean I think we are aiming I mean my aim here - get a value creation points in the company, where we add value to our compound where we actually get the full value for any deal we do with fosbretabulin and 4503.

Richard Cabot – Emertech Financial Group

Thank you.

David J. Chaplin

Thank you.

Operator

Thank you. And our next question comes from the line of GM of GC Financial. Your line is now open.

Unidentified Analyst

Thank you very much for taking my call. We are almost interested in finding our – what you are doing difference then what Peter was intending to do. Can you give me some color on that, Sir.

David J. Chaplin

Yes, I think is the fact that, I think the Peter was doing many other things, I think we have done is maybe older some of the emphasis and try to accelerate some of the program. And, now it’s been facilitated by some of the financing to growth in. And I think that our aim here is to accelerate some of the programs that we highlighted of the NET program and the 4503 program there are the particular value also we are trying to add value to our preclinical assets in terms of the antibody-drug conjugates, we’re doing avail. So, I think I mean as you look at the programs all the programs are still there. I think some of the emphasis is changing its changing because I believe we can add value to those programs into the drug in those areas.

Unidentified Analyst

One more question, sir.

David J. Chaplin

Yes.

Unidentified Analyst

What would you say is the major obstacle to you partnering with someone right now with ZYBRESTAT and Avastin combo?

David J. Chaplin

Because, we have not got all of the drug into the data out of the trial yet, we have not go to the material overall survival data, out of the trial yet, once in November we get that data, the GOG study, and our own study, the data once that data becomes available that will enable us to look at powerful and look at the potential promises.

Unidentified Analyst

What would you say is the most important bit of data that could come out of regard results that would enable our partnership?

David J. Chaplin

Well, I think that’s in the eyes of the partner. I think that you know people want to see the full PFS data, people would like to see some changes in overall survival. I think, we are right and see that data materials in November, when it’s presented as much as anybody else I mean I just my third months in the company, I just wanted to add value to this program and move them forward and what I see is the best way to add value to whole program.

Unidentified Analyst

Okay, thank you for your time.

David J. Chaplin

Thank you.

Operator

(Operator Instructions) And our next question comes from the line of Robert Slone of Oxygen [ph]. Your line is now open.

Unidentified Analyst

Hi, this is for Dr. Chaplin. The market cap at you’re last offering with $44 million, you had cash on hand of $24 million which meant the company had an IP value of $20 million. You sold off 40% in the company for basically an IP value of $8 million and you call that successful offering. Do you really think tat was the successful offering?

Barbara Riching

Was the question directed to me?

Unidentified Analyst

No, its Dr. Chaplin please.

David J. Chaplin,

I mean I think the – in terms of looking at where we are growing and actually getting the program accelerated I think it was an important offering. I think it was, I think it was important at the time we did it to actually increase the value of the company in terms of the programs we are doing at value creation.

Unidentified Analyst

So selling about 40% of the company for an IP value of $8 million was a successful offering?

David J. Chaplin,

Yes.

Unidentified Analyst

Okay. Thank you, bye.

David J. Chaplin,

Bye.

Operator

Thank you. And at this time, I’m showing no furthers participants in the queue. I would like to turn the call over to Dr. David Chaplin for any closing remarks.

David J. Chaplin,

Okay, thank you again for participating on our call today. We look forward to continued progress and seeing many of investors at upcoming investor conferences this fall, starting with Rodman & Renshaw Conference in September.

Operator

Ladies and gentlemen thank you for your participation on today’s conference. This concludes the program. You may now disconnect. Everyone have a great day.

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