Q2 2020 Earnings Call
Ladies and gentlemen, thank you for standing by please continue to hold our program will begin momentarily.
Once again, ladies and gentlemen, thank you for standing by a program will begin momentarily.
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Greetings and welcome to the quotient limited second quarter fiscal year 2020 financial results call.
This time all participants are in listen only mode. A brief question answer session will follow the formal presentation.
If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.
As a reminder, this conference is being recorded I.
I would now like to turn the conference over to your host Mr., Chris Lindop, Chief Financial Officer for quotient limited. Thank you you may begin.
Thank you Melissa and good morning, everyone and welcome to cautions earnings conference call for a second fiscal quarter ended Septemberthirty 2019.
Joining me today as Francois Chief Executive officer of caution.
Today's conference call is being webcast live through an audio webcast a replay of the conference call will be available later today at Www Dot quotient BD Dot com.
During this call portion will be making forward looking statements, including guidance and projections as to future operating results because such statements deal with future events actual results may differ materially from those projected in the forward looking statements additional information concerning factors that could cause actual.
Cells to differ materially from those in the forward looking statements can be found in cautions filings with the U.S. Securities and Exchange Commission as well as in this mornings release.
Forward looking statements include guidance, including guidance and projections provided during this call are valid only as of today's date November 4th 2019, and caution assumes no obligation to publicly update. These forward looking statements with that I'd like to turn the call over to cautions Chief Executive Officer Francois.
Thanks, Chris It's a great play show, but if you if you today. So many positive developments achieved in the past three month.
We have made it clear for some time they'd be belief that the combination of our expanded on each and the initial Sds menu will be highly effective product offering providing significant benefits, but if you took off the muscle mosaic. If this in mind. We are delighted to have completed the critical and B study for.
We expanded our each microarray risk results that in spite of confidence in both its upcoming European and U.S. field trials and its ultimate value for customers around the world.
In October we also successfully completed all for the U.S. field trial for the initial STS panel.
This is important because the initial sds menu and demos a device subject to a five 10-K approach.
This means we can expect to foster a few grow faster than the traditional BLE, which should accelerate the time required to happen approved product in the Haynesville helicopter must into your wife for evaluation.
If all goes well this will be doing to first how mix coming to you.
With respect to the two that field trial data, we had some questions on C.M.B. specificity. So let me say that I caught straight CMB. He's a very common virus with more than how the population having had infections. However, unlike order widely infection people, we see a beep positive results.
Oh allowed to continue to donate block.
The only blocked bake labeling that oculus rift aspect to see MB is CMV negative this system because CMV negative float is required for small patient population.
So what plopping too far looking for is CMV negative donations and are relatively small number false positive results have no impact on that on offense.
Well. This season, we have focused on a very high sensitivity in the design of the C.M.B. I see we are confident based on market coincidence that theyll be products can be approved.
Basically is that the as low as 90%.
The CMBS into deeper deal, 99.7% left outstanding performance, all the syphilis, I'll say give us great confidence into future use menu.
When you.
To this the successful completion of the recent mosaic and both manufacturing facility audit the initiation of three additional Hypercare launch site and early customer feedback, which has been overwhelmingly positive I feel very confident that we are on track for meaningful commercial success.
In the near future.
We have continued to consistently delivered on the plants they'd be made over the you know how difficult while everything is moving forward as planned the acceleration of the initial Sds U.S. field trials have gone a little better than we originally expected.
But they also have been a couple of chunky leaf, which impacted the timing of the expanded IDH Maynooth VNB scottie due in part to our raw material supply challenge that we have now resold and also to the late access to certain rare sample material required for verification testing.
The good news sees that Weve. This horrible overcome the milestones achieved represents the and the development well first commercial menu that if the expanded eight hi age and initial if the if micro race.
Remember that this combination below cost to move to replace two different technology platforms and much of the manual testing beat you say by year to date by providing walk away automation enhanced productivity and a more comprehensively characterized blocked product from each unit of donated blood.
From here on our development efforts will be focused on the expanded Sds menu, which will include seven additional tests when I wouldn't molecular panel, which ultimately include up to between eight and 10 type.
We expect to publish performance data on each of these mean youth in the near future. So please stay tuned.
Everything now is about menu expansion in market access and this quarter performance on the key milestones, which we report that reinforces my confidence on both fronts.
This combination of products, we delivered even greater productivity and cost savings to customers and unlock significant profit expansion for quotient.
Turning to the conventional reagent out about by quotient business, we had another outstanding quarter, recognizing product sales fell $7.1 billion a record what I would say comfortable.
In the quarter gross margin on product sales also trended positively over the prior year.
Increased volume pricing and ongoing operational improvements following our move to the new state of the art Alan Rock Compass late last fiscal year contributed to this positive trend.
This time last year, we read in the middle of the transition period, and we were securing costs, both our previous manufacturing facility as well as the cost of the new campus.
Milestone payments earned from the development of certain rat on theater patrons four key OEM customers also contribute $750000 autumn known product revenues into quarter.
With that let him let me handover the call to Chris Lindop, our CFO , who will provide more color on business performance. So far this year and on the outlook for that any scope the Chris.
Thanks, Ron well I'm happy to report that our second quarter product sales of 7.1 million increased by 14% from last year's second quarter and exceeding our original guidance range of $6.3 million to $6.7 million.
In the first time product sales were $15.3 million, an increase of 8% from $14.1 million in the first half of last fiscal year.
The increase in product sales is attributable to both OEM customers and to direct and distribution sales.
As Frans noted total revenue included other revenues of $750000 earned in connection with the development and approval for sale in the U.S. of certain rare antisera for our largest OEM customer for which there was no comparable amount in the prior year.
In the quarter OEM sales of $4.7 million grew 7% year over year and represented 66% the product sales.
While direct customer and distributor sales of $2.4 million increased 28% year over year and represented 34% of product sales.
Product sales from standing orders in the quarter were 71% versus 70% last year and for the first half of the fiscal year OEM sales grew 4% and direct sales grew 18%.
[noise] shifts in the timing of Red cell reagent ordering can cause quarter to quarter variability year over year, which tend to average out over a longer comparative periods.
Gross profit on product sales in the quarter of $3.1 million increased from $1.7 million last year in the quarter gross profit was impacted positively by top line growth yield mix and pricing increases.
In addition last year, we incurred approximately $200000 of duplicate facility costs in the second quarter related to the company's former manufacturing site.
The gross margin on product sales was 44.1% compared to 27.1% last year.
The relocation to the new bio campus.
The Eleanor bio campus is an investment in future growth and efficiency opportunities and in the short term gross margins have been negatively impacted by the higher cost basis of the facility, which in the quarter included $480000 of incremental noncash expenses offset input.
Part by increased volumes improved yields and contracted price increases.
The transition of manufacturing to the HRC.
It was completed in the fourth quarter of last year.
In the second quarter. The operating loss was 18.4 million compared to 21.1 million last year operating expenses decreased $440000 from last year the $22.3 million.
The year over year comparison includes an increase of $400000 in sales and marketing expense.
On a 100000 dollar increase in research and development expense offset by an 800000 dollar decrease in general and administrative expenses.
Last year's general and administrative expenses included $300000 related to the transition to our new facility in Scotland, and $500000 or other costs and advisory fees, which did not recur this year.
[noise] stock compensation expense was $1 million in the second quarter down from $1.2 million in the prior year.
In the second quarter net other expense was $8.5 million compared with $6.3 million in the same quarter last year.
Net other expense consisted of $7.3 million of interest expense and $1.2 million of foreign exchange loss arising from the revaluation of monetary assets and liabilities denominated in foreign currencies.
Interest expense payable currently in cash of $4.3 million increased $800000 over the prior year as a result of incremental borrowings during the first quarter this fiscal year.
Crude noncash interest expense related to an estimated future royalties payable to the note holders also increased as a result of the incremental future royalties under the senior note facility. Following the December 2018 note restructuring and the April 2019 note issuance.
Overall, our net loss for the quarter was $27 million or 41 cents per ordinary share.
Moving to the balance sheet and.
Cash and other short term investments were $72.8 million on September 30, well senior notes outstanding were $136.3 million net of an outstanding offsetting excuse me long term cash reserve account of $8.7 million.
On September 30 accounts receivable were $4.3 million, an inventory totaled $18.1 million.
Capital expenditures amounted to $1.4 million in the second quarter.
Now moving to guidance, we're confirming previously provided guidance ranges for product revenues of between 30 and $31 million, we have reduced our estimated operating loss for two fiscal year 2000 2020.
So between 75, an $80 million.
Estimated operating losses included approximately $18.5 million of non cash expenses, such as depreciation amortization and stock compensation.
Capital expenditures are now expected to be between five and $7 million for the full fiscal year.
Other revenue estimates for the full year of $1 million include $250000 of product development revenue that is contingent upon achievement of regulatory approval for certain products under development and as such the receipt of the remaining portion of these milestone payments involves risks and uncertainties.
For our third fiscal quarter, we expect product sales in the range of $7.1 million to $7.5 million compared with $6.7 million in the third quarter of fiscal 2019.
Now, let me turn the call back to fronts.
Thank you very much crieff, so moving now to the future and to what you can expect over the next 12 month.
As I have noted our focus will be on menu expansion and commercialization of costs menu availability will be achieved in the near term by the submission of our expanded each microarray following our European in U.S. field trials, which we plan to stock for in Europe later this quarter.
This product when combined with the initial Sds microarray will provide a highly differentiated and value added offerings to our customers.
As I have mentioned our near term menu expansion highlights will be in will include the completion of an independent evaluation of our molecular testing platform by up lots and laboratory.
The purpose of this exercise is to both obtain customer usability data and also to permit to our customers to use and understand the power of the platform in advance of commercial availability.
To date molecular testing required to pooling of at least 16 samples of than eight o'clock due to the price charged with such tests and the timing will in each testing cycle.
When one of these pools test positive for the target of disease state the pool must be peak so to speak retesting each individual donation define the impact that don't have our recent is for older require molecular tests to be loaded on a single low cost microarray.
So that in a continuous interrupted ultimately to the work flow each the nation can be tested the into we'd really not pool of VR at the present time, allowing lots and to save time and money against today's standards of testing.
This is only possible through the unique advances we have made in the last five years in microarray based molecular multiplexing.
Also with respect to menu expansion later this year, we plan to present, the first performance data for our expanded STS menu, which will include seven additional taste only formulas required around the world between two o'clock safety, we plan to complete VNB for expanded Sds and the first.
Quarter over 2020, paving the way for field trials in subsequent submission later that year.
This product will represent a powerful opportunity for customers already using our expanded IDH and initial sds menu by simply replacing the initial Sds capacity if the expanded STS menu. They will then be able to retire for testing platform, which is used today exclusively for sale.
Eagle testing, our customer three get older donor testing results they need for Immunohematology and several Archie serology in a single automated workflow using one technology, providing two different testing modalities huge efficiency and savings for customers in a significant grow in revenue.
Q4 quotient.
With respect to commercialization as we reported we have initiated for out of the total of now 10 Hypercare launch sites. So far this year.
The initially take on such issues as effectiveness of the setup ease of use and training have all been very positive we expect to learn a lot from these early customer interactions, which will permit us to make all platform even beta but early indications are very positive.
The initial addressable target market for mosaic is both highly developed and substantial our initial focus will be on the 2.3 billion dollar contribution.
Market on the don't fight, which addresses the combined needs of safety and the compatibility of donated block.
This so called the when the market is highly concentrated operating on a almost industrial scale and uniquely able to benefit from high throughput automation of standup tasting panels, which was a multiplexing microarrays provides.
And I believe that the capabilities, which make mosaic a unique and valuable technology for pounds fusion diagnostics. We also have tremendous future potential for although very large diagnostics screening application applications, such as dose required by the commercial loss my industry and in the same.
To a laboratory and panels will be more north sea and molecular pace required for a diagnosis.
But near term, we will continue to be absolutely focused on execution of the remaining steps to bring more sake to market in the don't look portion of transfusion diagnostics initially in Europe .
With that I'd like to thank all our employees and partners for their tremendous contribution towards the continued success of caution I will now after operator to begin the acuity session.
Thank you at this time will be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad a confirmation total indicate your line is in the question Q.
You May proceed start to if you'd like to remove your question from the Q for participants using speaker equipment. It may be necessary to pick up your handset before proceeding the starkey.
Our first question comes from the line Brandon Couillard with Jefferies. Please proceed with your question.
Hi, Thanks, good morning.
Good morning brands running.
France, just on the molecular data.
Could you just.
Based on when do you expect to have that feasibility data available to share with us what form will it take in terms of will it be precedent in terms of concordance or sensitivity, specifically and then thirdly is molecular even really on the radar screen of customers, who are kind of looking at mosaic right now and how significant do you think that might be.
In terms of influencing their decision to perhaps adopt mosaic today understanding that there might be a pathway towards some form of molecular capabilities.
In a few years thanks.
So I think molecular testing is very much under either.
Our cost of us because they are obliged by all to do all three types of facing each in ssds and multicolor sold a comp.
Comtech overcrowded.
I think initially they will be extremely happy getting the first combination because thats a significant reduction of complexity in the though will also replaces manual work.
Then for off the upside ideally the expanded Ssds and then the Jerry on the top the Mds application.
So mds for US works on the bench that we know now we would like to give it to a customer to do clinical trial and study study with the study protocol to growth rates, it's scalable and it works into handle for third party not only on outlook on our bench.
The plan is to execute this trial in November if everything goes right to it also depends on customer availability for the current plan is now from a payment then we will.
Shortly thereafter publish data and its head to head.
Comparison versus Cobots.
From Roche. So we are trying to benchmark off against the state of the application and the menu that will focus on its what they call a big three.
Hi, Ivy HBV and HCV no.
Hi, guys and then just on the other seven STS markers that comprise.
The 2.0 expanded SCS microarray, sorry about the relative difficulty of dealing with those other seven markers compare to syphilis and CMV, whether they're a little bit more complicated to work with at all or not and just your level of confidence in terms the performance of the other seven thanks, yes. So we would be made already quite so.
Okay Fair enough I indicated in my.
Path remarks, before we will show some data of illness.
Valuable for disclosure and.
We're very confident otherwise we wouldn't make this statement I mean every taste is difficult in itself that unless it's complete that you don't know what do you what kind of hurdles you can expect but so far we have taken all of them for me in a simplified the main that I think the HR and what's the biggest want to take it has kind.
Okay.
So from.
Improve from that the painting right to block sales on the on glass on the microarray, it's more difficult and straightforward chemistry.
So I h. too I think what's the most difficult one it works for immuno assays that we have proven to be 50 to.
If the FDA panel beef.
CMV and syphilis.
Hi, Hi, I'm very confident that weekend scaling up to two nine taste.
Thanks for the last one just on the Hyperscale on sites any initial feedback you can share from initial placements talk about timing or the other seven.
Specifically what does it some of the things you hope to next and expect to learn.
From the sides terms of feedback.
As they sort of installing began running tests. Thanks.
I think it will be another it depends when the customers are starting to Hypercare launch, but I think up between north of six to nine months until everything is completed.
The initial feedback from the Hypercare sites in Europe are very positive and it's all about convenience you know it said I recall for instance that the first side mentioned only takes only two days to get everything up and running and everybody trained and he takes like seven days, we if the competitor then but in with the competitor if you have.
HM two wind Sds you have more than one platform and manual testing so that the of course, okay simply contributes to the length and complexity of doing the same beep beep alternative solutions. So it's all about the convenience because we have had always seeing.
In vain not into business of inventing new test we're in the business of providing to test which are required in a better package workflow optimization and workflow optimization provides then an economic benefit than those savings of course.
So positive feedback, but all about convenience. So the positioning is correct im not talking about that pace because to taste outperforming that talking about how to work flow has improved and that even if we talk to customers who are lot now lining up.
So we'll get into us among the common to me well I'm really looking forward with inquiry is to see what mosaic and due to my work flow improvement.
So that's I think we get this reconfirm, but we also got positive feedback from the U.S. field trials.
These almost hypercare.
Right, but field trial sites for STS and I think one feedback I remember I remember because I really liked it will.
It's the based instrument I have seen in 27 years, so that means in all the work they have not seen any innovation for walks away but.
Thank you 70 us is a long time.
Like like Forever. So I think they are really happy that finally as more company comps and tries to make their life easier going all the comments, we hear about convenience ease of use brick flow improvement that surprised how comprehensive it's going to be when we talk about the expanded gauged comp.
The that you can do everything in one goal and we don't have to do mandible testing and if that's really possible I think it will be not affordable but.
So for US it's approximately the same costs, whether that few war or maybe pay someone like Corey.
So positive feedback.
Hi, good thank you.
Our own 10 sites you know, we originally calculate that that we have to resources to support eight.
Then one customer didn't take note for an ends up in a normal on Harold about it and opted to be part of it.
As well, but because they don't take so much work you know it's actually easier to do would then be initially thought we can accommodate titan instead of eight.
Thank you. Our next question comes from line of Josh Jennings with Cowen. Please proceed with your question.
Hi, good morning.
Good morning.
Good morning.
Thanks.
Just a follow up on your best answers it sounds like you're getting tremendous feedback from Hypercare sage.
Field trial sites.
Abuse.
Held a few weeks back.
And can you talk to just about the funnel of that's developing.
Talked historically about and a number of potential tenders that you could be involved in but in any incremental color just in terms of how that demand fund all is progressing.
Yes, the a b b, we had like 80 customers spending.
Demonstrations here and.
If you recollect that to cost of accounting for over 90% of the business into your wife. So these very employees of course, when these new customers and some smaller ones. So so really relevant that relevant the presentation.
And.
Mike My take is.
In Europe pertain to processes are more rigorous yeah.
The U.S. that is more flexibility so given the show the regulatory approval times in Europe , we will have the portfolio first in Europe , but the slow will take up in the us because it takes longer to get filled with a belief.
Processes.
We will half the portfolio, maybe a year later at any in Europe , but the take up will most likely be the brand faster because there is more flexibility in how organize the processes for our customers. So we have visibility and we know that pain defend that is actually a tool into.
Based tool available for manufacturers that everybody has transparency on what the upcoming tend to fall I think the good thing for us is that.
Most of our customers FX late or potential customers I have to say have postponed the tender.
In order to be able to able to wait this technology and considering the full day lap and some modest half.
Takeout clausus incorporate that the so I don't know how this is going to be leaf, but it's an additional flexibility. So we have not lost any kind of because there were no pain in the last few lost a few months. So now it all depends along really take on TV app by each two approved Sds is still in the approval.
Process based on the questions. We have received no showstoppers there, it's just having dinner sunsetting it out.
But we need the IDH two worthwhile because this is the combination and pending when DC. So we're able to be we'll have to more constant currency on that what pain. The savi now eligible eligible to yes, because these can be a few months more or less it's very difficult to predict.
As we have transparency, we're planning for that and we are you seeing now the hyper care launch phase actually as a pretend to phase.
You gave the customers the opportunity to to play with the technology become familiar and also to write the thing. The specifications later on in a way that we have a chance to win so I think we're not losing any time here.
Thats, something we would need to do anyhow afterwards.
And the other slack yes.
There's a tremendous amount of customer awareness is probably 100% in the us in about 95% in Europe .
I've received detailed briefings on this powered at dinner intra expressed interest so yeah, and I've never seen that in the industry that product, which is the market has like Mike weighted average over 95% awareness in the developed markets yes.
Great Thats. It Thats helpful. I just wanted just wanted to follow up from the press release.
About the raw material supply challenges the expanded h. too.
Test or micro rates.
Just two two part question one.
Let me can you just give anymore detail in terms of why how this is solved and why there's no.
Although happening again, and then to just have just to be clear. This did not have any impact on the results of the VNB testing.
Yes, it was a change in process of a supplier this happens.
And any supply chain.
And.
We obviously detect its quality issues with the supply on a receipt and we are then went back in and worked with the supplier to.
Revalidate there their processes and.
To to make sure that we have reliable supply going forward. It just takes time.
There is a business cycle that takes through and we're talking about weeks not months, but it obviously delayed our ability to start the VNB.
And it Didnt know because we then seeing is the good thing is our internal quality system pick it up and we didn't do and proceed reefer faulty material right and we never had problems with the supply we have to say here too we will always great, but they had a change a change in process Didnt tell us about it.
We picked it up we went back and now of course, it's Craig.
The next batch was okay, yes.
Excellent and then just lastly, just.
Just to expand sites to menu.
You have the VNB results can you just help us.
To remind us.
The steps here to in terms of moving to use field trials, one and then to.
Just how how you guys field trials do differ.
Materially or image or just minorly from.
The VNB testing and potentially why.
The concordance levels can can go up from DMV.
She field trials, thanks for taking the questions.
We have to breakout Bobby protocols with the customers we have to wait until the customer is ready to actually exit execute that is.
The trials.
And we believe we believe there is a probability off even improve performance out before I felt like already a further after say to performance as we happy today, we are absolutely confident that's all we need and it will be competitive in the market.
I mean, you have like 22 test instead of pain. So you have twice as much than everybody else. So.
So if you're facing a lot of manual work the.
Normally that quality off the results goes up because the block. This ratio you have to picture. If we do in terms will be an internal VNB study, we have to get the samples from the labs and a lot of the samples extra came from the us and some of the sample set up to five thief before we could actually do.
The testing, but in the real life.
They do tasting immediately so we can differ if they all maybe on second the latest but nobody wait for five days.
And the of course, the quality of the pasting you can do enrolled three of every additional day and I think beyond five days you cannot even text anymore.
So the pure effect at the block is going to be fresh of should provide a slightly higher results. Although the results we have fox.
It.
Chris if you want to add some additional color just that will likely do this in three sites in Europe and that the and will be measured in thousands not hundreds, but we are absolutely confident that the size of the v. envy was powered to give us statistically relevant results and then just exactly what Brian said fresher blood.
Should give us better results and the what we saw between the initial VNB for the initial IDH micro ran NV and the field trial results for the initial.
I, it's microarray where.
You can go back and look at that historically and see that they trend though.
And it's also an automated system. So you don't need skills like manual work and UK you should Verde, then about the ice to technician us capable of our internal people know because you just loaded and you walk away for eight within annuity based results for just because the different person is loading it.
I don't end of different results and that in combination with fresh blood samples I think.
Makes us confident.
And we showed this data to our customers a BB and the anecdotal response was fantastic they're thrilled.
So.
Okay. Thanks, Thanks for the answers.
Thank you.
Thank you our next question comes online.
With BTG. Please proceed with your question.
Hi, Thanks for taking my question congrats on the quarter.
Most of my question you have been answered.
I'm sorry, just a couple couple of quick one.
We anticipate some revenue recognition from your hyper care side, given the timing of some of the tender.
Before you received CE Mark for the expanded I'm sorry.
The CE Mark to officially participate independent so we need T H to CE Mark expanded.
C market the STS one CE Mark. So this is that the hypercare faced intentionally easily.
To make the customer.
Familiar with the solution with the system. We have also for us to get feedback and actually they have already now trying out the latest panels. So they are not of the the Hypercare trial sites are working right now it is ready moment with the initial serological disease screening Mike Corey. So this one is.
I will get approved so they can use to taste for as a taste of record, but they can use it for research only but it's all we want because we would like to get feedback on the late this products in development. So we can incorporate any potential feedback in the late in the late stage of the developing process. So it's really up it's like a soft.
Launch it flat, it's a it's a pre marketing it's the kind of.
Piecing the customer to adopt is.
All the tree and if we would wait until everything is CE, Mark we would lose valuable valuable month, because the customer would need to go through this process and conclude for himself that this is that technology to adopt anyhow. So I think we're trying to yeah.
To achieve two things to shorten the adoption afterwards and forget feedback in four hour microarrays, even if they are multi at CE Mark portfolio official trial, you will have to have CE mark product for the 40 or peaceful.
And and you have to have.
CE marks.
Okay, Great and then just for I'm not sure if I missed this but for the initial STS right. That's been submitted for CE Mark.
It sounds like from the question is you're getting everything is moving along as expected did you guys update us on potential timing there what youre thinking do you think that.
But we always said up to nine months and to be on the safe side.
For a couple of for that.
Since there were things, which are changing regulatory processes in the in Europe , but.
It looks like it's faster.
Much faster than that.
The question struggled on the initial lie age.
That phase where of different nature integrations, we got now because its.
Nothing to do with beef testing anymore more rip off me up any safety for type of questions and answers that last question. So we're just waiting for that response and couple of fact points and that we submitted right at the end of June June 29th June Thirtyth and.
Our for our first.
CE, Mark which included device manufacturing facility and the more complicated H one.
Twoq seven months, so we're in that range as from zero to seven and.
As we say were.
Based on the questions were hearing we're hopeful that no, but I think it would not be smart.
If we have of course half an anticipation, but it would not be smarter.
To reveal these otherwise you authorities may teach affiliation.
I think they know what they're doing they need that time and.
To help to understand the product and for the questions, but everything is progressing as planned.
Great. That's all for me thank you.
Thank you.
Thank you, ladies and gentlemen that concludes our question and answer session I'll turn the floor back to Mr. Walker for any final comments.
Yes, thank you very much.
So also thank you everybody for joining us on this call today.
So quotient continues to make considerable progress as you have heard on Mozambique, and we look forward to its initial.
Commercial launch next year in Europe , and the yearly till then into your west. So thank you very much.
Thank you. This concludes today's teleconference. You may disconnect. Your lines at this time. Thank you for your participation.