Q4 2019 Earnings Call
Ladies and gentlemen, thank you for standing by welcome to the PDL Biopharma 2019 fourth quarter and full year conference call.
At this time all participants are in a listen only mode. Later, we will conduct a question and answer session and instructions will follow at that time as a reminder, today's call is being recorded for opening remarks and introductions I would now like to turn the call over to Jody Cain. Please go ahead ma'am.
This is Jody Cain with L.A.J.. Thank you all for participating in today's call. Please note that a slide presentation to accompany management's prepared remarks is available in the Investor Relations section of the P. deal web site at PDL Dot Com joining me today from PDL, Biopharma or Dominique Monday President.
And CEO and as a block no vice President and Chief Financial Officer, The Curtis CEO of LENSAR, what a p. deals operating subsidiaries will join us for the question and answer session. Please.
Please turn to slide two and let me remind you that during this call management will be making forward looking statements regarding the companys financial performance and other matters and actual results may differ materially from those expressed in our implied by the forward looking statements factors that may cause differences between current expectations.
Actually skills are described in the company's FCC filings, which are available it seems to be dot Gov, and then the Investor Relations section of PDL Dot com.
Forward looking statements made during this call should be considered accurate only as of the date of the life broadcast March 11th 2020, Although the company may elect update forward looking statements from time to time in the future. The company, specifically disclaims any duty or obligation to do so even if new information.
Liberal or other events occur in the future.
Today's conference call remarks will include both GAAP and non-GAAP financial result, PDL believes the non-GAAP financial measures provide investors with useful supplemental information about the financial performance of this business.
Enable the comparison the financial results between periods, where certain items me very independently of citizens performance and allow for greater transparency with respect to key metrics used by management and operating in the business. These non-GAAP financial measure measures RPM, so for the information and compare.
It is purposes, it should not be recorded as a replacement for corresponding GAAP measures reconciliation between GAAP and non-GAAP financial measures can be found at the end of the financial results news release that was issued earlier today before turning the call over to Dominique Monday I'd like to direct you to slide three.
I refer you to the upcoming P. deal 2020 proxy statement for additional information.
I'll now turn the call over to Germany.
Thanks, Jody and good afternoon, everyone and thank you for joining us I would like to start by thanking my P.D. colleagues as well as a team that blends out I know Dane one of this past quarter and robust results in 2019.
Why do we want don't some I say that your and I'll talk about you we sold our testament to the quality an intrinsic value of all assets as well as you did you casing and skills of our teams.
We exceeded or how upwardly revised revenue guidance figures for the year well at the same time executing a radical change of strategy in some 2019 was a strong year for PDL.
Starting with slide four I want to ship, we'd use the progress we have quickly made on August 20, cheap money time, Oh I see.
You may recall that following an extensive why did you review conducted by all management and board of directors, so, but that weve outside legal and financial advisors.
The second half of last year, we did your mind, but selling the company as a whole <unk> Paul was it based upon to unlock its food value for stockholders.
We have begun to process of marketing PDL I know portfolio basket.
Deeply into poet we've been focused on maximizing midcourse he spoke stockholders.
And I am very encouraged by the Rocky programs, we have already made.
We put together Coke Ramsey plan of competing liquidations that was approved by our board in early February.
We have engaged leading investment banks would die size in the execution of these many times Asian pastas.
Ensuing abroad outreach to put on sort of why arose whether for a whole company called transaction Oh, the divestiture of individual assets.
These policies now well underway Weve real action plan responsibilities and resources and a timeline agreed upon on regularly reviewed we've all board.
We have engaged the following financial advisors to partner with us.
Do you have a securities acting adult financial advisors in connection with the sale of the whole company always for young people for you.
We have started the process to sell Noden pharma subsidiaries and have engaged or are you actually be safe and.
Why is also advised you guys I'll, just say Alibaba evil same biossance he stock.
We remain fully committed to lend itself fixation on the development of these next generation technology why do we just use the appropriate path to maximize that you for pdx PD L. stockholder.
We have engaged is VB leerink to lead these processes and evaluate opportunities available to lanes all.
It's DB Leerink has also been we tended to advise on management team in board of directors on overall liquidation and distribution strategies.
In view of these Robbie installed our goal is now to compete either a whole company Sam or the monetization of all four key I said by the end of 2020.
Significantly exceeded what do you timeline compare.
To the to do for you as we previously communicated.
We're exploring a variety of potential transaction, including the sale, it's been AFUDC, two fu Sheng distribution or a combination of transactions.
We plan to distribute the net proceeds still quota in new tax efficient manner in the form of share repurchase E. N D V James well bio's.
V season ambitious plan under an accelerated timeline and we are fully committed to its execution.
Underlying our confidence I was a high quality about license, which we believe makes them attractive acquisition targets.
And now team of employees advisors and board members with the expertise to execute these process.
We believe at the best approached the minimizing approaching cost, including the notable cost of being a public company.
Just a complete response as quickly without adversely impacting the market value about license.
This is why we said the ambitious target Oh, good things it sounds to bulky I'd say by 2020 your <unk>.
These timeline, we'd also help in minimizing he's calling tell dependencies and maximizing tax efficiencies.
In addition to speed of execution, we have implemented a broad range of cost reduction initiatives as part of our budget for 2020.
Including the progressive downsizing of the PDR team as we sell assets.
Our board has formed a dedicated cost management committee.
Let's see these policies.
Turning to slide five.
You know what he said movie in addition to approving a plan of computer liquidation I'll both passed a resolution to seek stockholder approval for dissolution of the company is even a whole company sales force it would not maximize the value from my wife said.
I can be a return to our stockholders.
We would plan to include beat dissolution propose already know proxy statement always vote I told 2020 annual meeting.
I, assuming stockholder approval, we've we've been talking to find a certificate of de solution in Delaware by 2020 year end.
After the solution, we anticipate that the company will remain solidly to manage potential litigation and results claims post dissolution distribution and the many times vision of remaining mine will pass you back.
The company would also handle remaining stockholder matches and administrative issues.
Please refer to upcoming proxy statement for further details on the distribution policy.
On slide six additional steps, we have already taken in connection with all change of strategy. Among these ALS you announced changes doable.
Elizabeth Oh power would join as a director in June 2018 was named Jefferson at the beginning of 2020, replacing booked a very selic retired at the serving on the P.D. abroad for nearly either than yours.
Well the Sun Man was being a director for the past 12 years, we retired from the border PDL 2020 annual meeting of stockholders.
On behalf of the bordering on tie your company I would like to think variant pool for that long service to PDL and be a many that you'd contributions.
With the appointment of Allen Bezhalel and following poll SUNS minds retirement, the PDL board would be comprised of seven directors gone from nine I tell 2019, I nor meeting.
This is a highly experienced in diapers board with five of out you make do the having joined within the past two years.
Oh directors at deep expertise in area, it's important to all monetization strategy and must have served in senior executive position as some of the world's leading biopharma companies.
We've also taken important steps towards stockholder value creation with substantial shale on convertible notes repurchase program.
You know early December we announced with our board authorized at 200 million dollar share and not buyback program.
Shortly thereafter, we retired 80% about 2021 2024 convertible notes $444 million.
Hi of $98 million into cash and 13.4 million shares of all common stock.
This reduction you know comfortable nuts, we love the last two money towards all I said with greater flexibility and more favorable financial terms by significantly listening the potential impact of provisions of the comfortable not indentures onset transactions.
Additionally, we have already $12.6 million in cash coupons into raised by retiring that debt early and an additional $9.4 million of accretion interest that would have been you are the 2024 notes I bet you Ritchie.
For the wins you announce note exchange the board authorized is 75 million dollar increase to the repurchase program, bringing the total to $275 million.
The board also approves the implementation of a Tenbfive one plan.
Summary, as part of the buyback program. We every good shape 7 million shares of all common stock at an average price of $3.43 per share.
We also retired an additional $13.7 million in principal value of our remaining nodes, leaving $17 million in principle that you have notes outstanding.
Or talk about that we have deployed $184 million of the authorized 275 billion dollar program Weve $91 million remain.
Let me now turning some detail to all high quality assets and the implementation of all process to monetize them.
On slide seven beginning woodlands I'll.
Net sales to the fourth quarter reached a record $8.5 million <unk>.
This is a 19% increase from the fourth quarter of 2018 under 5% increase from the five quote the third quarter 2019.
For the full year 2019 lens on its sales reached $30.7 billion, increasing 25 to signed up as it probably a year and exceeding our full year 2019 guidance of $27 million to $29 million.
Linda as these increasing as being increasingly recognized by of techniques surgeons as a technology leader in the Femtosecond lasers used I see steep cataract surgery market all flux.
Before I supported cystinuria over your posted your volume growth seems a product was launched in 2012, including a 33% Gagnon poor should your volume for 2019.
The number of lens unfortunate years worldwide topped 100000 in 2019 and by year end LENSAR held an approximate 13% share of the global flax pocket.
Turning to slide eight.
LENSAR is very well positioned for sustained growth basically be effectively building on its position as an innovator for the treatment of cataract that require greater accuracy and procedure customization.
Let's now features a best in class technology would be streamlined fall, which enables the optimize treatment of tissue specific cataract and surgeons management other stigmatism.
Between 70, and 90% of cataract patients treatable vision really significant as much as in prior to surgery, but that the bad. These I stick veggies them remains largely have corrected post surgery.
We expect Glens documents femtosecond laser to continue to gain market share as he's afterwards, he is a growing unmet need for improved twos and features into management domestic matches.
He also addresses the demand for improved visual outcomes with more complex intraocular lenses all your wells.
Laser actually steep cataract surgeries expertise to grow at 2.4 times the rate of the overall cataract surgery market well I, just 7.3% CAGR of 2020 free.
Fueled in part by increased adoption of these advance premium Iowa.
Now to slide nine.
It doesn't do you only need streamlined for laser we believe that blends out next generation system, which we referred to as Jane too.
We substantially enhance east growth prospect.
Jane to will combine in a single compact workstation to stage of the all spent also gone laser and the cycle intensification system, providing surgeons the ability to switch seamlessly between the two technologies.
Further LENSAR intellectual property secures a problem yet technology position for Jay too.
Develop under crystallization.
Gentoo provides a competitive at that date, but is expected to substantially expand linzess position in the market.
Gentoo also capitalizes on market trends, such a decrease in private equity acquisitions of a tiny practices.
It was a tenant reimbursement and stunted cataract surgery, and then move towards you know fees cataract surgery.
[noise] a recent companies consult survey conducted by an independent research group them on the 120 U.S. cataract surgeons. She both are allowed to de mint potential for gentry.
40% of surgeons say, but gentoo would increase in other flax procedures they didn't fall.
89% said it is quick ferry boat to at the same to later in the same room as a sequel system, but only 34% currency abbvies arrangement.
83% would consider acquiring a gentoo system when it's time to replace it think tool is Oh, a sequel system.
83% and 75% of respondents would consider acquiring a gen. Two system. In addition to the occur on central system and ecosystems, respectively.
66% say that's into addresses unmet needs in cataract surgery with an average of 6.9 on a 10 point scale.
And finally, the combination femto FICO configuration ranked higher than the Standalone laser for all five brands tested in the survey.
The development of Gen. Two is progressing well and on schedule, then zeiss targeting submission of a five 10-K applications. The U.S. of da by the end of 2021 Weve commercial launch expected in 2022.
We remain committed and committed to lends a and the development of its next generation technology, while we cannot use the optimal path to monetize this investment.
Oh past capitalization of LENSAR I suppose you shouldn't need for growth, which has resulted in positive revenue and volume growth and the current capitalization or we need to continue with these growth initiatives.
Turning to a current portfolio of loyalty I sit from slide 10.
We received $21 million in net cash while you're at <unk> or about why your with your rights in the fourth quarter of 2019 up from $20.9 billion in a year ago quota.
However, net royalty revenues, which include cash while you tease received as well as changes in fair value of away or do you like I said were negative $26.8 million compared with positive $19.1 million you probably your your period.
The decrease in royalty revenue is primarily primarily related to the decrease in fair values. The will to your rights for the type two diabetes products acquired from its just yourself say optics.
These basket of loyalty right that's already been a very good investment for PDL. It was acquired for $260.5 million from the permit not what's yes, you in 2013 and for your own 2019 returned more than $452 million.
Bausch health markets grew mid south single largest while you're did contribute to.
The second half of 2900, Signode, an accelerated shifting channel mix, but was expected to result in a substantial decline in net selling prices, but what do you pads the run rate for limits on net sales in the fourth quarter and the young and interim PD <unk> revenues for besides that.
In addition expected delays in the international countries of the exact combination products marketed by Leidy and Jensen You know Association I said pool together led to a net value impairment of $46.3 million movies for your T. I said in the fourth quarter.
Notwithstanding this impairment as well as he payment of the <unk> of our exit Rx, while you're Tees in Q2, we're very pleased as a high quality of loyalty I said, an expert do we continue to put you strong cash flows making them attractive acquisition candidates in a market where demand for what are your T. has said is high.
We received $79.3 million in net cash, while you're teasing 2019 compared to compared with $78 million in 2018 far exceeding the raise guidance, we announced on our last earnings call.
[noise] Sweetie switching to Noden pharma on slide 11.
Due to changes you know strategy for loading as a result of all monetization plan. We we called in an impairment of intangible asset that you have $22.5 million in the fourth quarter.
Which speaks more to our longer term plans movies and TV does foods contributing results.
Our our actions in 2019 to increase the profitability of Dick tuning the U.S. and to mitigate the impact of generic competition paid off.
Excluding the you an impairment charge no then achieved a passionate profitability with net operating income of $3.4 million for 2019.
We significantly reduced no didn't cost structure by even 18, our domestic sales organization in 2018 and by terminating or promotional efforts followings, a generic launch in 29 team.
We are pleased that Randy tick tuna and authorized generics October that maintaining is 73% chair at your hand.
Moving on to April same by Hussein sees on slide 12.
It will thing was a strong performer for PD L. in 2019, we've only invest many of these publicly traded women's health company generating immediate returns.
28% equity stake if people think posted a net gain of $18.3 million for the fourth quarter Weve shares are they both any squeezing 71% between our initial investment in April 2019 to your and.
It was only both them share prices decline recently together with a broader equity market. It remains above Oh acquisition front.
We are proud of all work with big effect doing 2019, we FCC that talented management team in achieving major regulatory and clinical milestones.
In late November book them, we submitted a new drug application with the FDA voids drug candidate on for for the prevention of pregnancy.
Very soon thereafter.
People thing, we posted positive topline results from the I'm presents phase to be trial evaluating harmful for the prevention of chlamydia and gonorrhea.
We expect additional catalyst for value creation in 2020.
He is a bit if I did form fall off a prevention of pregnancy in late May Verizon and <unk> on an anticipated six months safety review.
Commercial launch of them for the prevention of pregnancy subject with the approval is anticipated in the second half of 2020.
So in summary, well very confident you know ability to execute our monetization plan and to unlock significant value for our stockholders.
With that I'd like to turn the call over to adding Pocono to discuss our financial results Ed.
Thank you dominate please turn to our income statement on slide 13.
Total revenues for the fourth quarter 2019 were negative $5.8 million included $21 million in product revenue and negative $26.8 million in revenue from royalty rights change in fair value.
Among the highlights.
Product revenue from LENSAR was $8.5 million up 19% from the prior year period and up 5% from the third quarter of 2019, LENSAR procedure volume for the fourth quarter increased 41% over the prior year period.
Product revenue from Noden pharma was $12.4 million compared with $18.8 million in the prior year period with revenue of $4.3 million in the U.S. and $8.1 million in the rest of world.
As Dominic mentioned.
Its market share for branded Tekturna and our authorized generic was 73%.
Relatively unchanged from the third quarter of 2019.
Net royalty payments from acquired royalty rights in a change in fair value of the royalty rights assets were negative $26.8 million compared with positive $19.1 million in the prior year period.
The reduction was primarily related to the decrease in fair value of the royalty rights for type two diabetes products acquired from a studio therapeutics.
Turning to operating expenses.
In the fourth quarter of 2019.
Total operating expenses were $64 million compared with $11.6 million for the prior year period.
The increase in operating expenses was the result of the following factors.
An impairment and then noden intangible assets of $22.5 million due to a change in strategy for Noden as previously mentioned.
Prior year benefit for the release of the noting contingent consideration liability of $19.2 million.
No comparable adjustment in 2019.
A 10.8 million dollar impairment of the care view communications note receivable compared to an 8.2 million dollar impairment in the prior year corridor.
Higher R&D costs for LENSAR associated with the development of its next generation technology.
Hi, or gene a expenses, primarily due to higher compensation costs, which were mainly the result.
Oh, the prior year expense reversal of a significant portion of the employee long term incentive award.
Increased professional service expense.
And an increase in cost of goods sold primarily due to note and product sales outside the United States.
Which were partially offset by a decrease in sales and marketing expenses for our Noden subsidiary.
For the three months ended December 31st 2019, our net loss was $54.9 million or 48 cents per share.
And this compares with net income was $16.3 million or 11 cents per diluted share for the prior year period.
Moving onto our full year results on a same side.
Total revenues for 2019 were $54.8 million and included $85.8 million and product revenue and a negative $31 million and revenue from royalty rights change in fair value.
Product revenue from LENSAR was $30.7 million up 25% from 2018.
Things are procedure volume for 2019 increased 33% from the prior year.
Product revenue from Noden pharma was $55.1 million compared with $80.8 million for 2018.
Sales for 2019 were comprised of $25.3 million in the U.S.
$29.8 million.
In the rest of the world compared with $40.5 million.
In $40.3 million, respectively in the prior year.
The decline in sales of branded Tekturna and the U.S. is due primarily to launch of an authorized generic of Tekturna and the launch of a third party generics have aliskiren late in the first quarter of 2019.
The decline in sales and the rest of the world. It due to lower sales volume of rationalizing certain territories in part, reflecting additional measures to maximize product profitability.
Revenue from royalty rights change in fair value was negative $31 million for 2019, compared with positive $85.3 million for the prior year. The decrease is primarily related to noncash adjustment to the accelerates in the surety of royalty us at fair value of negative $60 million in negative 40.
$6.3 million respectively.
Interest revenue decreased by $2.3 million from 2018 due to modifications to our agreement with Caribou communications with deferred interest payments for 2019.
Royalties from PDL licensees to the Queen et al patents were minimal for 2019, compared with $4.5 million for 2018, reflecting the run out of the royalties on the sales as tysabri.
Operating expenses for 2019 decreased by 38% to $154.6 million compared with $248.7 million for 2018.
The decrease primarily resulted from the falling factors.
It 22.5 million dollar impairment for the Noden intangible asset in 2019, compared with a 152.3 million dollar impairment in 2018.
Lower intangible asset amortization of $9.5 million due to the 2018 impairment.
Decreased sales and marketing expenses of $8.7 million, primarily due to notice reduction in sales force and change to a non personal promotion strategy in anticipation of a launch of a third party generic form of Aliskiren in 2018 in the discontinuance of the non personal promotion strategy and.
Early 2019 upon the launch of our authorized generic.
These were partially offset by the prior year benefit for the release of the Noden contingent consideration liability a $41.6 million.
Increased cost of goods sold a $5.2 million, primarily due to termination provisions and Noden supply agreement amended in June 2019 involving end of contract fees.
As well as increased LENSAR product sales.
Increased research and development expenses of $4.4 million, primarily related to the acquisition of intellectual property supporting our second generation lens our product.
And a 10.8 million dollar Paramount.
The Caribbean communication note receivable in 2019, compared with an $8.2 million impairment in 2018.
For 2019, our GAAP net loss was $70.4 million or 59 cents per share compared with the GAAP net loss of $68.9 million or 47 cents per share for the prior here.
Turning to our non-GAAP financial results on slide 14.
We adjusted our Q4 2019, GAAP not net loss of $54.9 million for the Mark to market changes in fair value amortization of intangible assets.
In other non cash items.
This resulted in non-GAAP net income of $4.2 million in the fourth quarter of 2019, which compares with $15.7 million for the prior year period.
We adjusted our full year 2019, GAAP net loss of $70.4 million with the same adjustments as a fourth quarter.
Resulted in non-GAAP net income of $39.1 million, that's compared with non-GAAP net income $60.4 million for 2018.
Turning to our balance sheet on slide 15.
We had cash and cash equivalents of $193.5 million.
December 30, Onest 2019, compared with $394.6 million as of December 30, Onest 2018.
This reduction in cash as a result.
$97.9 million used to repurchase debt.
$86.9 million used for stock repurchase program $60 million use for our investment and evil fan.
Net cash used in operations of $32.4 million and cost incurred in exchange of convertible debt a $4.4 million.
The reduction was partially offset by the proceeds from royalty rights of $79.3 million in cash proceeds from the sale of intangible assets of $5 million.
With that we're ready to open the call for questions operator.
So while we're waiting for the first question.
I'd like to congratulate their aging broke new on his promotion to chief financial IFISA, and which we announced on Monday or a dies made highly valued contributions. He is joining PD l. in October 2018, and we continued to be instrumental for monetization strategy.
Okay, operator were ready for the first question [noise].
Ladies and gentlemen, if you wish to register for question for today's question and answer session you any depressed start than the number one and your telephone. If your question has been answered any wish to withdraw your request you may do so by pressing the pound key if you are using a speakerphone. Please pick up your handset before entering your request one moment. Please for the first question.
<unk>.
Your first question will come from Max Jacobs with Edison Group. Please proceed with your question.
Hi, guys. Thanks for taking my questions and ration calculations and.
Thank you Oh.
Well I was just wondering you in terms of you know the sale of the company as a whole what kinds of companies or what kind of buyers are you targeting for that are they more on the financial side for like private equity firm.
That's that's a very good question a Max I think a you know we are only reaching out now and as I mentioned, a viavi securities is going to be a leading that effort.
We want to make sure we reach out to any potential buyers.
It is likely that these transaction because of the nature Oh wide portfolio is going to be more financial buyers that strategy. Once I think you.
I think it's embedded in your question I think it's a fact assumptions beyond that supports this which is a you know ongoing now so.
We will keep you informed as easy as it progresses.
Okay, Great that's very helpful and then.
Kind of relate to that the M. Since these are financial buyers do you think that the current market turmoil might impact the timing of monetization.
It is possible for some of all assets I mean, you don't like if you look at the able thin cell quoting a though it is higher but as I've mentioned that the price at which we acquired Bush fabs are a little less than a year ago I think.
We go raced UBS, yes, as I am neutral I couldn't be very sensitive to that I think we have royalties, we truly I in high demand like now if anything in that Jonathan deal with meant that you'll be SWACO TZ that at least as strong as it was before and Ah we forgot to all the transactions, we see our defaults.
And we would make sure that a you know we we are not you know hurry and though we do want to aim at a competing but posted by year end, we soundly on though going to do that in a way of each would impact negatively the values. Yes. It. So at this point or you don't because we are less dependent on all shelf.
Price ideas the value of the of of the share of PD L. today is going to be counted in the some of the proceeds which are going to be returned to shareholders. You know us in form of redemptions.
And.
So I think coming from that perspective for somebody who is taking.
Muddy light medium term perspective, the Joe morning to market really is not affecting has a very much. Besides a short term impact on our share price.
Okay great.
That's everything for me and thanks for asking answering my questions.
Thank you Max Thanks, Matt.
Your next question will come from kind of Atkins with Cowen and company. Please proceed with your question.
Hi, Thanks for taking my question you mentioned during the call that the timeline for monetization of your out that says accelerated versus prior guidance. I mean, you received any indications of interest for specific assets or what gives you confidence that the monetization process can be completed during.
Well, we put together the plan in partnership with the of for I mean that the Freaky partners, which I mentioned and a you know we looked at this and we really believe that that we can execute we'd been by timeline I think.
Clearly some elements you know we are what knowing that and then on the augment we just changed very rapidly. So it is possible, but each we didn't tail some delays, but at this point our commitment is to try to kind of complete that point since we've been together. We think it is feasible to give at dawn and a it is bringing a number of significant benefits including in terms.
So did you mean 18 some fiscal interdependencies.
And so we we you know it's a where we stand now now it is a target cannot then I think we will see how we'd pans out the expression of interest I cannot comment on back now to process is ongoing and they are still in the early stage, but we are encouraged to fall.
We've the expression of interest we have received.
Okay, and and then for them would you wait for an update decision and poor before selling you're holding and the common stock.
What's your thinking there.
Well I think there's a number of options I think really we have an eye on the I kept the least full value creations and we you know we really are exploring the different options that we have like now and in partnership with a withdraw yeah. We also getting you know some input at this point.
SBB Leerink on an overall <unk> strategy as I mentioned, we have engaged van Weve the board to advise as on overall liquidation and many times station strategies, but Oh, we're working with draw your own. This and you know, we see where and what reports we believe is going to be maximize.
In the value back we can return to all shareholders.
Okay. Thank you that's helpful.
Thank you and so you we missed you you know your.
You have got conference I think as we add the quantum of I was on a and now sites and we didn't want to.
Take any risk of at perspective that thanks again for the mutation.
At this time there no further questions I would now like to turn the conference back over to dominate for any closing remarks at this time.
[noise] well. Thank you very much judge you all of you for joining us today I, we look forward to updating you on our progress during our next quarterly calling me in the meantime, we wish you a wonderful rest of your day.
Ladies and gentlemen, this concludes today's call. That's cool. Thank you for participating you may now disconnect.
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