Q3 2019 Earnings Call
Pharmaceuticals third quarter 2019 conference call.
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Next question answer session will follow the formal presentation.
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At this time I'll turn the conference over to Tom burst Vice President Finance. So you may begin.
Before we begin I'd like to caution that comments made during this conference call may contain forward looking statements involving risks and uncertainties regarding operations in future results of operations appears including statements related to the timing and progress our clinical trials in preclinical programs.
Ownerships and our financial position and actual results may differ materially from those expressed or implied by such forward looking statements.
Factors that might cause such differences are described in our filings with the FCC, including our annual quarterly and current reports.
The information being presented this only after it as of today I'm curious undertakes no obligation to update any statements to reflect future events or circumstances.
I will now turn the call over to Steve Yoder, our president and CEO .
Thank you Tom and thank you to everyone for joining us today for 2018 third quarter earnings call.
I'd like to start my comments by introducing new voices on the call today for those you know my voice you know it sounds a little different today I think that's really reflective of all the outreach we've been doing after our very positive data sets you for Prs 343, and will that a few moments you briefly heard from toppers, our VP of finance who's been serving that capacities and.
Joining peers roughly two years ago after I share more recent pipeline progress and plans for the remainder of the year, you'll hear once they get from Tom who will walk you through our third quarter financials, which we believe continue to reflect an efficient deployment of capital would purists.
Afterwards, we'll move to acuity session, providing an opportunity to hear from Dr., even more bruni, who has clinical development appears as well as Dr shape, All will who oversees translational science at the company.
The recent biomarker driven positive clinical readouts from both Prs. So 60 M. Prs 343 are clear examples are the continued productivity of R&D efforts led by you are in shape.
At R&D day in New York City on November 19th which will be webcast. As we also intend to provide more details what are we programs as well as how these recent clinical data inform our thinking about investing in additional therapeutic programs.
Now moving to a brief recap of our technology platform in R&D strategy I'd like to remind everyone that purists has developed a proprietary class of next generation therapeutic proteins called Eddie Kate Wendt proteins, and killing proteins are engineered human Liberal K ones, which are proteins that are naturally abandoning the body and served to bind and try.
Sport various molecules because okay woods and by extension any K ones are smaller and typically more stable with engineer a bold and antibodies. They offer unique advantages to other treatment options, such as inhaled delivery to treat respiratory diseases locally or creating more complex by specific formats to drive a desirable.
As we are doing in immuno oncology, Prs 60, and 343 or our lead programs in the respiratory an io space respectively.
Now turning to the respiratory franchise first this past year, we made significant progress showcased by very positive clinical data reported for Prs. So 60 last month, we presented data from our ongoing phase one be study your Prs. So 60 at the 2018 European respiratory Society.
International Congress Ers.
Prs 60, which was tested as part of the safety study in 30 subjects with my old House month, but do you had elevated meaning greater than 35 parts per billion of fractional excel nitric oxide ore feed though was found to be safe and well tolerated at all administered doses. Moreover, PR.
So 60, both materially and significantly reduced pheno relative to placebo at all delivered doses ranging from two milligrams to 60 milligrams and showed dose dependent systemic target engagement in the patients.
We believe that the potent pheno reduction demonstrated by Prs, So 60 at all levels.
He is unparalleled compared to other it held biologics and is encouraging early signs of clinical efficacy demonstrating the promise of a local intervention.
In terms of next steps.
We have been busy preparing for a phase two a initiation by Astra zeneca to advance the development of Prs 60 in moderate to severe asthmatics purists. It Astra Zeneca anticipate this study will start next year upon completion of the phase two way study, which will be sponsored and funded by Astra Zeneca, we will have.
Options to co develop and subsequently to co commercialize Prs Oh 60 in the United States.
Turning to or other clinical stage asset and demonstrating the breadth of the any caylin platform. We're also pleased to report that we presented encouraging interim data from a monotherapy phase one escalation study of Prs 343, or four one BB her to immuno oncology by specific including single agent Act.
Tivity at city. This past weekend, notably this was the first clinical dataset from our immuno oncology franchise and the results support continued advancement of this program.
It's also is the first comprehensive clinical dataset presented for a for a long bebe by specific anywhere demonstrating purist his position of leadership in the area of T cell Costimulatory agonism.
No more specifically in this study we enrolled patients with a variety of her two positive tumors, including gastric breast and gynecological. The majority of the patients had been heavily pretreated, including with multiple her to targeted therapies, we enrolled 12 cohorts with the predicted efficacious dose cohorts beginning with coordinator.
<unk>, which was a 2.5 milligram per kilogram dosed. Once every three weeks and we went up beyond that through cohort 11, B, which wasn't continues to be dose in separate cohorts. Both in 11 at eight big per keurig doses at different dosing schedules, either Q2 weekly or Q3 weekly.
Prs 343 was found to be safe and well tolerated at all doses and schedules tested the drug also demonstrated objective antitumor activity any heavily pre treated patient population across multiple tumor types and showed a clear increase and see a positive T cell numbers in the tumor micro by it.
Microenvironment up responders, most encouragingly in cohort 11, B, which is the eight make per keurig Q2 weekly regimen, we achieved.
As best response, a disease control rate or DCR of 100% into five patients who were a valuable at that time, which consisted of two patients with confirmed partial responses in three patients with stable disease.
We regard the presented data as very positive and believe that measured continued investment in this program is warranted which include a plan for next year to begin an expansion trial with Prs 343 in patients with gastric tumors, where we believe there is an unmet need.
Beyond continued escalation in the coming months, we're also exploring different dosing frequencies and pretreatment with the anti CD 20 antibody obinna twos about to assess the impact of anti Cdtwenty pretreatment on plaza exposure levels for Prs 343 in a small cohort.
As a final update on the progress of our immuno oncology program, but pipeline I'd like to give a brief update on our partner programs. We plan to file in India application for Prs 344, which is a PD L. One antibody fuse to the same for one BD building block as Prs 343.
And this is a lead program in our immuno oncology collaboration with Servier, We plan to file this idea in the first half of next year.
Additionally, our Seattle genetics immuno oncology collaboration is progressing on schedule. Although we are not at Liberty to provide any further details at that time.
Finally, I'm happy to remind everyone that we are hosting an R&D day in New York on Tuesday November 19th next week, well, we will present, an overview of our lead respiratory in immuno oncology programs as well as share emerging data highlights from our phase one combination trial of Prs three.
343, with Tesla, let's Uh huh.
He is that will feature presentations by four prominent thought leaders Dr., Sally Wenzel and Dr. underwriter Ray both from the University of Pittsburgh, and you will focus on asthma and.
And then also Dr. Jeffrey true from Memorial Sloan Kettering Cancer Center, the principal investigator on the Prs 343, monotherapy study and the presenter. It sits he this past weekend and Dr. Michael current from MD Anderson Cancer Center, one of our immuno oncology program advisers and a true expert on the phone.
And one BB pathway.
This concludes my prepared remarks, and I would now like to hand back over to Tom to guide you through our financial results for the third quarter of 2018.
Thank you, Steve and good morning, again to everyone.
Cash cash equivalents in investments totaled $86.2 million as of September 30 in 2019 compared to cash equivalents and investments totaling 128.1 million as of the end of December 31st 2018.
It's about excludes the $32 million in gross proceeds from the November 2019 financing, which will I did I will discuss more in a minute.
Included in the company's cash spending during the third quarter of 2019 was a one time 2.3 million dollar payments to the technical University in Munich for sub license royalties due on an upfront join upfront and milestone payments related to collaboration agreement signed in 2017 and 2018.
R&D expenses were 13.2 million for the quarter ended September 30, 2019, compared to 11.4 million for the quarter ended Septemberthirty 2018.
The company's increase in R&D expenses reflects higher, albeit reimbursable manufacturing activities related to pure 60 as part of phase two a readiness activities for the program.
As well as higher personnel and allocated facility costs due to growth and the company's R&D organization to support higher levels of preclinical and clinical activities.
<unk> expenses were $4.8 million for the quarter ended September 32019, compared to $4.7 million for the prior quarter ended Septemberthirty 2018, there was no significant change and the composition of gene expenses on a quarter over quarter basis.
Net loss was 2.6 million or five cents, a five cents loss per share for the quarter ended Septemberthirty 2019, compared to a net loss of 6.6 million or an 11 cents loss per share for the quarter ended September 30, 20 aging.
Last week, we completed a $32 million private placement led by DVF partners with significant additional participation from eco our one capital acquittal capital management surveyor capital and sense are a bio capital.
The placement consisted of unit.
Shares priced at a premium to the prior days market closing price along with warrants priced at two times, the closing price or $7 in 10 cents per share.
The warrants are intended to facilitate pierces exercise, but lets co development option for Prs 60, following the conclusion of the positive phase two way study.
At the top line results under study disclosed achievement of the primary efficacy endpoint and the stock reaches a pre specified price then the warrants will expire 60 days following such disclosure and may only be exercised for cash otherwise the warrants exercisable procure five years from the date of issuance.
We anticipate they use the proceeds from the financing for measured for making measured investments and Prs 343, as Steve described continuing co development of Prs 344, and advancing our proprietary product pipeline of inhalable respiratory drug candidates following proof of mechanism.
With respect to Paris 60.
As well as for working capital and general corporate purposes.
With that I will turn the call back over to Steve.
Thank you Tom and the conclusion just want to say, we're really pleased with the encouraging data. We recently reported for our lead partner respiratory program 60 for Asmir Drs and for our lead I O program 343 in her two positive cancers at Citi last weekend, we're looking forward to hosting the R&D day next week in New York Hope you cannot be there a participate.
Great.
And we'll present will present, a detailed overview as well as updates on these programs.
Thanks for joining us on the call and we'd now like to take the time to open up for your questions.
Thank you.
If you like to ask a question today. Please press star one from your telephone keypad and the confirmation tell indicate your line is my question Q.
The press Star to here later move your question from the Q.
Professor would you think speaker equipment, maybe necessary to pick up your handset before pressing the star Keith.
One moment, please hold the poll for questions.
Thank you first question will be coming from the line of John Miller with Evercore ISI. Please proceed with your question.
Hi, guys. Thanks for taking my question and congrats on the data over the weekend or I guess I wanted to start by asking about your plans moving forward and two expansion cohorts I noticed that both responses that you've gotten this dose escalation portion of the trailer in her to high Expressers I wanted to ask how selection is going to be done for the expansion cohorts that you're planning and else.
Want to get a little bit more granularity on the timing of the expansion cohorts. You said next year do you have any.
More color on when you could start those are what the hurdles are there. A then just following up a I would like to ask about continuing to higher doses, you've mentioned that you're continuing to enroll in cohort 11, B.R., you're going to continue to escalate even higher than that.
Thanks, Thanks, John .
So two questions there just to recap timing.
Actually three.
How we're thinking about her two levels in.
Expansion.
Timing for expansion and then further escalation Kurt protocol, so that's going to turn it over to anymore to take those one of the time.
Yeah. So yeah as mentioned before US we will begin in expanding cord gastric tumors and we plan to get further details on the development plans beyond that expansion trial and you know after the conclusion of the ongoing phase one escalation study.
[noise] you asked for timing.
We think you know it could be possible to do this within.
The second quarter 2020.
While we continue to.
Look at higher doses in the ongoing escalation as well as alternative.
As mentioned I think here is going to be date informed because we are escalating me, we're probably more color on that note, we're going to push hard I can think Q2 mid year is what we're aiming for but stay tuned for more details at the R&D day on that point and a more color will come out as we have more data.
Alright, Thank you very much.
Our next question is from the line of Joe Padding and this with H.C. Wainwright. Please proceed with your question.
Hi, guys good morning, and congratulations on the data as well.
With regard to you just said you're going to continue escalating in the current study and if I recall.
The comments from sits see I think they also mentioned you're gonna potentially backfill some of the prior doses is that true.
Yes.
And just to build the additional safety profile.
Yes.
Well.
I think the safety profile, it's pretty established.
I think more to look for additional if you could see signs and we have the ability as we've mentioned before tobacco up to 10 patients for cord.
Got it got it and then can you provide the rationale on my heard on your prepared comments potential combination the rationale for including because I buy in the treatment continuum.
Yes, thanks, Shoger, she's going to take that one.
Yes, so as we reported that's it see we've got about 20.
27% of patients without is.
Over the active dose range and we don't seem to see on a correlation between the auditors and responses, but what we want to do is really the test the testimonial as much as possible in this escalation phase so what we're going to explore as a b cell depletion strategy I tested.
The smoke or to pre treatment with anti Cdtwenty two assessed on the impact on drug exposure and as you're maybe aware, there's a lot of people into by specific space looking at this I, including including Roche. So yeah. We report refund reports results from those studies next year as well.
Thanks, a lot guys.
Thank you.
Our next question is from the line of my do Kumar with R.W. Baird. Please proceed with your question.
Oh, yes, thanks for taking our questions. So on this point about the anti drug antibodies can you give a little more detail about these anti drug antibodies was there any evidence they were neutralizing when do they emerge in the course of therapy have you gotten where you kind of assess what types of epitopes are being recognized.
By the night drug antibodies any of that information.
Yes, I leave machines get it shakes. Thanks machines can take out what as well, yes. So you know its.
But the current time point, we're still evaluating a lot of the things that you lost in terms of you know whether they're neutralizing what portion of the molecule that they bind to what I can say at the moment is we don't see any correlation between and they emerge.
Surgeons have been onto drug onto body on embarked on response or PD and but we you know we will do it judicious assessments off them. So that we're in a best place to too.
Develop a treatment.
Regimen that works for a for the drug going forward.
What I would I'd just add there may be two other flavors is while we were really pleased with what we see already like in court 11 beat. So we don't think this is required but we would like to.
Look holistically.
What the B cell depletion regimen could do within our four won't be by specific franchise. We have the approval from 58 to do this and as we have other programs coming forward, including 344, which is four while BB PDL. One this will be a very efficient way to look at what flexibility we might have in the future.
Should the need arise, but we do not think it's necessary for go forward development with 343.
Okay, well just to circle back when did the anti drug antibodies emerge and of course the treatment.
So it's good it's going to be different you know, it's not it's not necessarily going to be a fixed time point or for patients.
But it was over a range of time points of treatment.
Yes, yes, okay well. Thank you it doesn't my question, thanks, very much guys.
Thank you Melissa.
The next question is from the line of Chris Shibutani with Cowen. Please proceed with your question.
Oh, yes.
Graduations on the update over 60, a question on three for treating the monotherapy side as well as on the combination side for the monotherapy side, you state that you're going to be doing indication specific expansion trial.
Can you give us a sense for how you're going to be trying to manage which tumor types and what kind of.
Denominations of patients will be trying to achieve that each.
Yes, Shakespeare thinking more can can take that one I think we mentioned as you did we mentioned you know even at the recent panel with it its ITSI.
This past weekend gastric cancer is one we particularly like given biology and given the standard of care in emerging standard of care in how we think we could fit in there. So they may be ingmar can can maybe answer that even in the context of of the case study that was presented.
By Dr. COO at the presentation on on Saturday.
Yes, so Chris we its mentioned, but Steve already through were we see certainly gas rig gastroesophageal arm parts. You know my it's a you know a good target indication and we'll pursue this.
In terms of you know line and design. If you know expansion cohort, let's say we were you know as Steve mentioned, we're encouraged by the fact that the drug seems to be able to overcome even you know very powerful regimen or first line regimen like you know what.
Now keynote 80, 11, which you know by no doubt most powerful regimen out there.
For emerging standard of care and we think beyond that you know patiently patients will eventually relapse and we'll look at the lines beyond that.
So talking about second line and potentially beyond.
And that will you know translate into any expansion cohort, where we plan to make a measured in bad investment.
Staged approach.
Relatively small patient size or patient number in the beginning and then futility in between.
But beyond that we're you know.
We're interested in other indications as well such as you know letter, but we still see potential in the and the current therapeutic landscape in medical need for patients.
Yeah, I think the key thing to keep in mind, Chris and everyone else is these are very fresh data.
And so we as we continue to over enroll in further escalate we want to be informed by those data and so stay tuned for more details somewhere at R&D day, but into early 2024 more details if that's not sufficient color for you today, but I think just bear bodies are very fresh data and we want to make data informed decisions on the basis of more comp.
Because of data.
And then to help us set expectations for what kind of quote emerging data, we'll see for the combination can you remind us what doses.
The patients have been receiving for 343 and in particular, what kind of patient selection criteria have there.
Yeah. So I'm a this is not very different from the monotherapy trial. We you know did do the CMO unparallel, but you know the FDA allowed us to start at a higher dose because we had already cleared five dose levels.
On the monotherapy trial, so that's where the trial started and we have explored you know up to the.
Milligram dose, but that's concurrently still enrolling who don't have a complete dataset there, but you know this will be available soon.
And in terms of inclusion that's in that sense. Similar you require you know her two positive Eddie either for gas chicken breast.
Or you know the society guidelines.
I see in fish positivity and for the other indications institutional guidelines, which could also be you know ngs data.
And or I see.
And no PDL one positivity required for this trial. We're you know rechecking does on the trial, but not an inclusion criteria.
Chris maybe one other point is just on the PD effect, what other types of data to look for is similar flavor to the types of data that we had with the monotherapy Ics escalation. We are of course mandating paired biopsies and looking at CDH. For example, after multiple cycles of therapy, and I think thats, an important piece to keep in mind when you look.
At different modes of action she will comment on that vis-a-vis her to single disruption.
Yes, certainly so want to where we were very encouraged by the PD.
The biomarker data, we've we've observed in the monotherapy trial, where we're seeing.
A significant expansion all hotels in the tumor micro environment post treatment and it's it's very encouraging that it's something mechanistically that you wouldn't anticipate whether or not to her to therapy like just doesn't mob nor would you anticipate the level of proliferation that were seen with foreign B b.
The agonism move you if you looked at it vis-a-vis what would be anticipated with checkpoint inhibitor, where proliferation is not as a a significantly.
<unk> I would serve that that's a significant levels.
Great. Thank you, we'll look forward to more details that R&D day next week. Thank you.
Thank you Chris.
Our next question is from the line of beer and I mean with Jefferies. Please proceed with your question.
Yeah, Hi, guys. Thanks for taking my question. Thank congrats on the data over the weekend.
So maybe just to start on the on the combination trial.
As you said before you not selecting for PD one positivity.
What gives you confidence that you would be able to see a response and PD, one negative patients, especially given that.
Face to pass your trial with Herceptin on top of.
Prime Pembro shown a zero percent response rate and.
Her to expressing breast cancer patients.
Yeah, you're in.
Good question, I mean, I, just want to remind everybody that.
As a dose escalation trial and we.
We felt it was for the you know.
Initial he.
Peter said, we look at that point.
It would be sufficient.
Checking them all come up population of course defined by her to positivity.
And you know there.
It's also the potential that you know for to be a effect.
PDL one expression.
Expression.
In these cases in these patients even if they turn out to be negative in the beginning of this some of the questions. We wanted to interrogate on trial.
So stay tuned for no.
For the readout.
Got it and then I guess in addition to C.D.A.T. cells did you look at other pharmacodynamic markers on both the model therapy and.
Combination studies. So for example, tomorrow tumor infiltrating lymphocytes have you looked at Tom.
Those within the two studies.
Yeah. It's a good question and certainly we are doing we've set up the.
Trials to really Monday, those paired biopsies and we want to get as much information from as possible. We felt in real time. It was very worthwhile to look at the cdafs levels by I see a it's a robust read outs that you can really you can then how can parts for across other.
No immune modulator reagents.
In terms of other read out such as nano straying or maybe more phenotypic assessment of what's going on in the tumor microenvironment, we're going to do botch analysis at the end of this study where we will hopefully have nice training sets off responder patients non responder patients, where we can tease out or parse out some of the mechanistic detail.
Great. Thank you.
Thank you Barry.
The next question is from the line of well Myra with Evercore. Please proceed with your question.
Hi, Thanks, so much for taking my question as well, Steve I'm trying to understand how did you guys think about the dosing frequency in the first 11 cohorts and I asked because the only responses were seeing are both at every two weeks and I realize you can't go by the half life. A 45 days that you guys disclose but I was just curious are you opened to weekly regimen as well.
And I had a follow up.
The date day. So we're so yeah look yes, I think your question implied maybe the answer which is it's a small dataset right already so we want to want to read too much into it but yes. The objective confirmed objective responses, we see in our Q2 weekly the good news is that the protocol affords us.
A lot of flexibility both in terms of frequency and overall dose levels and we are as we alluded to in the prepared remarks and can confirm that here in the answer we are exploring the the benefits or that you know the impact of dosing more frequently and are currently enrolling that Q weekly.
Eight make per keurig dose as well.
Got it and then secondly, Steve and just delayed these responses into context can you speak to prior literature and or trial data on her to reduction in heavily pretreated patients.
So good question looking machinery, where he was the field that will yeah, I can take that Omer, yeah I mean.
You probably.
Flying the answer a little bit here I mean, there is you know in the past and you know the practice that you know if you're out of other therapeutic options that physicians often you know.
Treated with with trusts.
You know that's become less popular.
Overtime, but a you know I think its no. It's a in that said data set of patients that we have you know there's.
Oh also significant number of patients have been heavily pretreated, where you're pretty confident that you know those are those are resistant.
Oh, but it's a fair point and I think that's that's all I can answer to that I would just supplement by saying we that's why we're so happy to have had the PD infrastructure for this trial and so we're not aware of any examples of a responder to a herceptin or her to targeted therapy that also presents was such an increase in Cds.
And so having that correlation of PD to clinical benefit is what remains critical for US which is why we're investing in that alongside or as part of a critical part of the trial and we'll continue to do so.
Got it and Steve just in closing what was the cut off date for sits C.
I'm just trying to understand how much incremental data you have in house right now, especially considering that the responses. We thought the 12 dose if I mean, the Florida 11 be appeared to have kicked in by as early as a six week. So.
Just curious.
Yes. So they are the cut off date was October 20 Threerd.
And yes. So that's that's a straightforward answer there and we're looking to continue to get out incremental data as we go forward.
We're going to have exceeded the incremental date additional case studies at the R&D day, and really be more focused on condos as it's the first time will present combo data, but I think it's fair to say that our objective is to get additional data coming out in Q1.
I give you the medical conference and stay tuned for for that.
Thank you very much.
Thank you over.
Thank you that's reminder to ask a question your press Star one.
The next question is from the line of massive suddenly Blair. Please proceed with your question.
Well done guys. Thanks, taking my question one just fit the profile looks looks really good but just could you say if that was spread out across the dose levels or was there any increased frequency of some of these infusion related reactions at the higher doses.
Anything like that.
Yeah, Yeah, you more go ahead and take that so yeah. We looked at the data you know the analogy normally done in the entire population and it's it's not a material difference between the a you know the entire.
Study and the.
Active dose range.
Got it thanks and then.
Interestingly to centric also has a pretty high frequency of 80 days on clinical trials and is there any concerns just from giving a you know two separate antibody therapies that have it is that you almost get.
Increase across.
Both by combining them just from a more challenge I guess to the patient that makes sense.
Well I mean, that's.
It makes sense is a hypothesis.
I think the Oh, we haven't disclosed the data, but its you know it's not a it doesn't seem to be a concern.
Hi, Thank you.
Our next question is a follow up from the latter John Miller with Evercore ISI. Please proceed with your question.
Hi, guys and thanks for taking the follow up I figure since nobody really was asking about 60, l. I might as well I put in a follow up on that.
You have any more granularity at this point on the timing of the phase two way I know that's in answers hands, but maybe you could talk a little bit better the hurdles to starting that trial and what might be required before we could see that get going.
Yeah. Thanks, John Thanks for reminding everybody, we do have this nice platform.
Just an Io company [laughter] I'll.
Look as we said we were pleased to be able to move forward with Astrazeneca and we we do believe we're going to start just trial next year and we're still working through what I would call typical large pharma governance do they have a few more committees. It appears as you can imagine and they just got to go through that we also are continuing to.
Get the maximum benefit out of this a few no high phase one D. Multiple ascending dose trial as a reminder, you saw we hit Dino pretty hard even at the lowest doses tested and so one might say were even at the top end of the dose response curve. So we do feel that there was benefit and looking.
At the impact of Pheno reduction potentially even at lower doses and so all of that would inform how to go forward in phase two eight together with Astrazenecas me, what I think is pretty clear at this stage consistent with what we've said before is that this will be a phase two a study that will be a moderate.
To severe uncontrolled subjects and I think we're going to look at where do pill about shine in terms of patient stratification that will largely inform how we're thinking of enrolling patients in phase two way and it would be likely over the one month.
Like phase inhaled twice, a day, where we would be likely assessing its primary endpoint FTD one.
Improvement and that would be.
Likely the the phase one endpoint, which we are quite phase two am point that would be the basis of triggering the the warrant based financing that we mentioned earlier, which is intended to be a self financing mechanism. If we want to go forward beyond that I think stay tuned I know that 2020 has 360.
Five days at most it's not a leap year and we need to we need to give you more color more color on that as we go forward and stay tuned into further corporate update on specifically with.
All right. Thank you very much.
[noise] next question is a follow up front line of maps with William Blair. Please proceed with your question.
Also asking fix so question, but actually around the the financing structure. So assuming full warrant exercise after phase two way I mean, that's a little over 60 million I believe.
If that is.
Solely going to be used for often to development as they can we read through what level of co development that gets you guys onno six so and co commercialization can you disclose anything around that.
Yes, yes, thanks, Matt I think look think about it it's just I know and alternative financing or Orient optional financing mechanism and we can do what we what we money it's not like it has to be earmarked for Prs those 60 co development, but when you consider the way we structured the milestone payments for Masters and.
Go largely pegged to the initiation of phase of clinical development, we would believe that with the option exercise, which would be yes, 60 odd million dollars. If those are fully exercised plus a clinical initiation milestone we have a fair bit of flexibility.
To take advantage of the one of multiple co development scenarios that we have the option to do in that contract we haven't broken out specifically.
How many they are and what the levels are but it ranges from you know meaningful to approximately half and of course, the more risk we take the more reward we can get and so we're really pleased to have not just that flexible structure, but with the quality of shareholders that came in to that deal in order to afford us is one.
Other optional financing mechanism if the data are positive.
Oh thanks.
Thank you at this time I'll turn the floor back to management for closing remarks.
Well thanks, everyone for the time today the questions just want to thank you for your continued support and we look forward to keeping you updated on our progress starting the next Tuesday, the R&D day, thanks for joining and have a great day.
Thank you. This will conclude today's conference you may disconnect. Your lines at this time. Thank you for your participation.
Uh huh.