Q4 2019 Earnings Call

Inc. fourth quarter 2018 conference call.

At this time, all participants Arnie listen only mode.

A question answer session will follow the formal presentation.

If anyone should require operator assistance during the conference. Please press star zero under telephone keypad.

As a reminder, this conference is being recorded I would now like turn the conference over to your host Mr., Tom burst VP of Finance. Please go ahead Sir.

Thank you.

Good morning, everyone and thank you for joining us for our yearend 2019 conference call and corporate update on a call today, we have to do you go to our president and CEO, who will provide a corporate overview outlook in our pipeline.

<unk> ours, that's <unk> instead of clinical development and.

Shane Oh, well, our SVP and kind of translational science will be available work you had.

You can access the press release released this morning on Investor Relations page of our website at Www Dot Prs Dot com.

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 the operations future results of operations up here.

Adding statements related to do a timing and progress our clinical trials and preclinical programs our partnerships.

Financial position and actual results or events may differ materially from those expressed or implied by such forward looking statements.

Does that might cause such differences are described in our filings with the that's it.

<unk>, including our annual quarterly and current reports.

The information being presented its only after it other today and pure undertakes no obligation to update any statements to reflect future events or circumstances.

I'll now turn the call over to Steve.

[music]. Thank you Tom and thank you everyone for joining us today for our 2019 yearend earnings call.

2019 was marked by a very substantial progress it appears across all our proprietary partner programs I would like to begin with a quick introduction to purists before moving onto a recap some of last year's highlights and our plans for the rest of this year.

It appears we have developed proprietary class of next generation therapeutic proteins called NTK, what's what's your engineered versions of naturally occurring proteins called lip, okay ones, but binding transport various molecules because any K ones are smaller more stable at engineer, a bold and antibodies they offer you.

He could managers such as in shale delivery to treat respiratory disorders locally.

Or the ability to treat more complex by specific formats to drive a desire biology as we are doing in immuno oncology.

The positive clinical data sets, we reported last year from the lead assets within both of our core franchises of respiratory and immuno oncology served as a validation of the specific approaches and more broadly or any caylin platform.

Last September at the European Respiratory Society International Congress or Ers, we presented interim results from our ongoing phase one be multiple ascending dose study of PR rational 60, and inhaled I all four receptor alpha antagonist that we are developing in collaboration with Astrazeneca stroke.

Patients with moderate to severe asthma.

This study is assessing the safety Tolerability pharmacokinetics and pharmacodynamics Prs, So 60 in patients with mild asthma, who have elevated levels, namely greater than 35 parts per billion of female sexual chilled nitric oxide, which is a.

Clinically well validated marker <unk> Airways inflammation.

They all of this study results presented at Ers sound Prs, those things seem to be safe and well tolerated that Paul administered dose is notably a statistically significant reduction in pheno levels relative to placebo was observed with all doses of Prs 60, ranging from two milligrams.

To 60 milligrams twice daily over 10 days. Additionally, piura. So 60 showed dose dependent systemic targeting engagement as measured by piece that 60 inhibition ranging from no detectable systemic activity at the lowest dose tested to prolong activity at the higher.

Those are suggesting the drug candidate it couldn't be administered foreign exclusively local or a dual local in systemic target effect depending on dose.

We're very encouraged by the totality of the data, which we believe positions Prs. So 60 as a potential best in class in Hollywood inhaled biologic for asthma.

That's part of the preparations to Conductus phase two way study in moderate to severe uncontrolled astronautics, which will be sponsored and funded by Astra Zeneca, we have been exploring different doses in additional mad cohorts in the ongoing phase one be study, including dose levels at the lower end of the dose range.

Previously tested given that a pronounced pheno reduction was observed at the lower two milligrams of liver dose level.

We are finalizing enrollments in these cohorts and we expect the phase two study will begin in the second happened. This year a timeline can beat last month I astrazeneca.

As a reminder, upon completion of the phase two study purists will have options to co develop and subsequently co commercialize Prs So 60 in the United States.

Beyond Prs 60, we continued to advance three or four discovery programs in our five collaboration five program collaboration with Astrazeneca Astrazeneca will have the option to initiate the force discovery program.

This year.

We are also hard at work developing several proprietary discovery stage respiratory programs on their own in the second half of this year, we plan to disclose data and the rationale for advancement of one of these programs into R&D, enabling studies.

With positive clinical data in hand, with PRN. So 60, validating our inhaled therapeutic approach we are committed to pursuing biology complementary to idle for receptor alpha as we explore the possibilities of other inhaled any caitlin proteins for novel targets.

To that effect, we signed a research collaboration last quarter with two renowned experts in the pathophysiology of basketball University of Pittsburgh professors, Dr., Sally Wenzel, M.D. and Dr. honor Rod array Phd the collaboration in balls comprehensive immune phenotype enough patients with moderate to severe asthma and.

The elucidation of driver pathways in disease manifestations and progression. Our ultimate goal is to couple of these findings with targeted patient enrichment strategies for more streamlined development of novel inhaled therapies, we look forward to leveraging this collaboration to build an industry leading portfolio of.

Evaded proprietary respiratory therapeutics.

I'd now like to turn to an update on or other core franchise immuno oncology our lead clinical program. Prs 343 is our novel and proprietary for one Bebe hurt you by specific which is part of a broad ongoing effort. It peer is to leverage our deep understanding of the biology.

Good for one Bebe Prs 343 is the first tumor targeted for long BB agonist to have entered a clinical trials and our second most advance for won't be asset Prs 344, which is partner, but Saturday a is a forum on BB PDL, one by specific for which we expect to file in.

Andy and the first half of this year.

As you know for won't be as a member of the tumor necrosis factor receptor superfamily and as a T cell costimulatory receptor, which they expressed on activated T lymphocytes natural killer cells in other immune cells for warm BB agonism is believed to provide a critical signal that leads to T cell proliferation cytotoxicity.

Cytokine secretion and enhance T cell memory.

Among other effects to help mediate anti tumor activity.

Targeting a four won't be de through conventional antibody based approaches have tried limited success due to the Tata toxicity issues mediated by unwanted engagement of FC Gamma receptors on the surface yourselves and the liver.

Or inadequate efficacy.

We have successfully engineered our four won't be based by specific to your Prs 343 to avoid these unwanted effects, while achieving objective clinical responses both as a single agent any combination therapy in clinical studies so far.

Specifically last November we presented encouraging interim data for Prs 343 from our phase one dose escalation studies at the society for the immunotherapy of cancer or Strensiq annual meeting, which showed promising signs of efficacy for 343 as a single agent linked to clear biomarker evidence of.

For walk Bebe Agonism, Prs 343 was safe well tolerated with no patients experiencing a dose limiting toxicity.

And the maximum tolerated dose had not been achieved.

As of the October 23rd cut off date Prs three 343 achieved a disease control rate of 100 per site in the five patients who were invaluable at the time in cohort 11, B, which was the eight milligrams per kilo Q2 weekly dose regimen, which consisted of two patients.

With partial objective responses, one stage for gastric cancer patient and one stage, one pharmacological cancer patient and three patients with stable disease.

We also presented emerging data at R&D day event in November from the dose escalation phase one study of Prs 343 in combination with a telco lets the mob a PD L. One inhibitor provided under a drug supply agreement by Roche.

As of November 19th cut off date, the data indicated that the combination regimen was safe and well tolerated. There were two confirmed partial responses and several patients experiencing disease control.

Responding patients included two breast cancer patients tumor shrinkage, one of whom exhibit a confirmed and deepening partial response with co relative biomarker signatures showing over eight fold increase in CD eight positive T cells in post treatment biopsies over baseline from both of these patients.

Additional data included a non small cell lung cancer patient with the confirmed partial response after previously receiving and progressing on a Tesla lifts AMAP monotherapy.

Since the R&D day presentation in November we have made a lot of progress on both studies with respect to patients who had been on study as well as in enrolling additional patients and we look forward to completing the enrollment of all patients soon.

Based on emerging data from the monotherapy and the PDL one combination trials, both of which show additional clinical benefit with co relative biomarker signatures attributed to four one BB engagement in patients beyond what we disclosed at city and at our R&D day in November.

We are mobilizing for continued development of Prs 343, and a more homogenous patient population and had a selected dose.

More specifically, we're going to advance Prs 343 in Hertwo positive gastric cancer patients as our priority indication and we plan to share the highlights of our development plan in the second quarter of this year. Once we have refine the details on study design as we finalize these plans weve guided by the.

The principle of trying to strike a balance between appropriately exploring the high potential of the drug candidate, while ensuring our investments our phase appropriate.

In the interest of giving the emerging datasets additional time to mature why we finalize our plans for the next phase a 340 threes development, we're not going to disclose more specific details of the data today. However, given the importance of these data in informing our plan, we intend to present topline data.

From these studies at the time, we provide those details.

Further we intend to disclose detailed results from the entirety of the monotherapy and combination therapy escalation studies for Prs 343 at a medical or scientific conference in the second half of this year.

The data we have generated for three or four Prs 343, strengthen our conviction in the attractiveness of a tumor microenvironment localized for won't be the activation approach and we look forward to continuing our efforts as one of the pioneers of this approach through both continued development of 343 as well as advancing other for lumpy DB.

Hi, specifics towards and into the clinic, our second most advanced Io program Prs 344, which is the PDL one for one BB by specific and the lead program in our Io collaboration with Servier is under rigorous I, Andy readiness development and as mentioned, we intend to file a 90 for this program in the first.

After the year.

And finally rounding out the Io chapter we have in I O collaboration with Seattle Genetics, which remains an important part of our I O franchise and is progressing on schedule.

Before turning the call over to Tom for our financial update I would like to say a few words regarding the impact its corona virus or coded 19 on our operations.

Although it is too early to tell how impactful this pandemic will be we're mindful that the circumstances.

Continue to evolve.

We're not running any clinical trials in India. The hot spots that had been affected to date and.

We have enough drug product available to put complete our ongoing clinical studies.

We also have the infrastructure in place that will allow many of our employees to work remotely if needed and.

And we are taking the necessary precautions.

To minimize exposure to the virus, including limiting unnecessary travel.

Of course, we are continuously monitoring the situation and are doing our best to ensure that all of our employees are safe and that operations continue to run smoothly, including our laboratories.

Looking ahead, we expect 2020 to be a year of continued successful execution across all our proprietary important programs, including the entry into the next phases of clinical development for Prs 343, and Prs So 60.

This concludes my prepared remarks, and I would now like to hand, the call back over to Tom to guide you through our year end 2018 financial results.

Thank you, Steve and good morning again, everyone.

Cash cash equivalents or investment totaled $104.2 million as of December 31, 2019, compared to a cash cash equivalent and investment balance of 128.1 million as of December 31 2018.

Great. Thank cash was primarily due to the company operational needs during 2019.

Hi proceeds from the private placement financing completed in November 2019.

R&D expenses were 55 million, but a year ended December 30, Onest 2019, compared to 41.5 million for the year ended December 31 2018.

The increase in R&D expenses was primarily due to higher manufacturing cost supported plan and ongoing clinical studies as well as higher personnel facility and I T com supporting ongoing advancement of our clinical our pipeline.

The increase was offset by a decline in royalty expenses due to lower upfront and milestone payments compared to 2018.

Jamie expenses remained flat at 18.4 million for both years ended December 30, Onest 2019, and 2018 in comparison to the prior year, we realized savings and external spending on professional services as we better leveraged our employee base.

Along with lower facility and I T costs attributed to Jay functions. These cost savings were offset by higher hardware and software costs to support operations growth and efficiency and higher audit and tax fees due to new accounting regulations and internal control requirements.

Costs were offset.

By both lower professional service fees and the company better leverage internal resources into 2019.

And lower facilities and actually costs attributed to GA functions.

Net loss attributable to common shareholders was 28.3 million or 56 cents loss per share for the year ended December 30, Onest 2019.

Compared to a net loss of 26.8 million or a 50 cents loss per share for the year ended December 31st 2018.

With that I'll turn the call back over to Steve.

Thanks again, Tom I'll just in conclusion, we are pleased with our R&D achievements in 2019, including the very exciting clinical data we reported for Prs 60, and 343, we look forward to continuing the development of both of these programs this year, including the advancement of those 60 into a phase two a study in the.

Second half of the year and the advancement of 343 into the next phase of development in gastric cancer patients.

We also look forward to announcing the nomination of our next proprietary respiratory program as well as sharing progress across all our partner programs, but most of advanced of which Prs 344, we expect to file it R&D in the first half of this year we serve.

Thanks for joining us on this call today, we would now like to open the call for any questions.

Thank you at this time, we will be conducting a question answer session. If you'd like to ask a question. Please press star one on your telephone keypad a confirmation Tony will indicate your line is into question Q you made press star to if you'd like to remove your question from the Q for participants using speaker.

Quitman it may be necessary to pick up your handset before pressing the star Keith one moment, please while we pull for questions.

Your first question comes from line of Jonathan Miller with Evercore ISI. Please proceed with your question.

Hi, guys and thanks for taking my question and congrats on all the progress in 2019, I guess I'd like to start with Euro six Oh, obviously based who is now coming second half this year, which which seems like a bit of a delayed from last year I know aster already announced is but could you give us a little bit more color about what's causing that bottom.

That is this just because you're still enrolling phase one did you changed strategy there a little bit and can you help us understand why that change happen.

And then secondly.

On.

The gastric expand the gastric.

Moving to the next phase I know, you'll give us detailed in the second half what are you envisioning. This is to be a standalone phase two and what sorts of details would you be able to give us in Q2 I guess.

The other question that Alaska is on.

Prs 344, recently and I, Andy first half, which is great to see another thing moving into the clinic.

What would that trial look like and what kind of timing would you expect from that I, Andy to moving into the clinic.

Thanks, John how he's happy to get the mobile questions from you. So we'll start with those 60, and then 343 and 344, maybe we'll take them sequentially.

I'll Tee up just a framework and the free so for Prs. So 60, you asked around the timelines and.

I would say as a reminder, prs, so 60 timelines or something that we hadn't providing any guidance on.

Until today, which is now conveying what astrazeneca has put out a near year end call, which is the second half of this year for initiating phase two way and the way I would frame. It is that we are availing ourselves to the ongoing phase one the trial to go forward overall in subsea.

Ocwen development with the best possible designed as an informed by real data.

And we are taking some time to make sure that were best prepared for the right phase two a study and that's informed by the totality of data that we presented at Ers as well as emerging data and with that I'm happy to letting more comment a little bit more although there is not as much. We can say given that this is something that is.

Got it and we want to respect communications plan, we have together with Astrazeneca, but happy to put a more little more color on that ingmar, if you'd like to answer or anything else feel free to do so.

[noise] as you said, there's not much we can disclose beyond this.

We have said before that we are exploring given the data that we presented in your ass.

Lower doses. In addition to the courts that have been explored the Mad study and this will inform next phases of development and we're waiting for this.

Okay.

Thank you anymore now for Prs 343, you asked around more details around the the plans on gastric cancer again. This is something that we feel is best suited for a more comprehensive update in the second quarter, which is informed by refine thinking after discussing things with our dark.

Visors and of course, continuing to give the data time to mature and of course, the plans will be informed predominantly I think by data that we are Jay.

Mr. Stephen Yoder are you still ongoing.

Yes, I think we might have just lost Steve.

We are we are having a communication issue it looks like we're conducting todays call from multiple locations just given our remote working policy as part of managing the impact of the krona virus, but.

Maybe to that point.

He was talking about it as these can dial back in.

Other ingmar or Shane can take over on that gastric question that you asked John.

Yeah, just too.

Continue what Steve started to say so we are.

By the additional clinical benefit than we have observed since the subsea and R&D day data presentation, both on the monotherapy trial as well as the year on the it is realism up a combination and we're waiting for these data to mature.

The currently enrolled patients and in the meantime.

Refine our thinking on a clinical development while closely watching the.

Reputed landscape and Steve already mentioned, we'll disclose more detail in the second house.

In the second quarter sorry.

And.

I believe there's one more question Ingmar that maybe you can.

So that John it after about 344, and what would be the trial look like there you can add any color.

[noise] actually had this over to Shane.

Greetings sure slate.

Yes, so so John with regard to 344 I.

Just as a first and patient study, that's obviously going to be.

Predominantly to lock up safety pharmacology off our drug but as you know would Prs 343, we had a very.

Biomarker rich approach, where we Monday suit heard biopsies and that was very very informative in terms of understanding mechanism of action and allowing us to get a nice TD Carla Twits, we're clinical.

Benefits. So certainly we're going to take all the learnings from Prs 343 study trial design.

And you utilize those effectively in Prs three full floor.

And would you expect that to trial to begin soon after the I Andy or is there any any reason to think it would be device.

I would say that's in essence when were when we're preparing for the studies, we will aim to be as efficient as possible between filing and and start up but as you know unit, we need to waste.

On the agencies guidance.

Alright, Thank you very much guys.

Alright, thanks, Thanks, a lot John.

Your next question comes from lineup and bearing with Cowen and company. Please proceed with your question.

Good morning. This is Tam for Chris you, Tony Thanks for the update.

Being healthy.

Can you help set expectations for the next potential day differently or Prs Oh, six so will you provide an update on the multiple ascending dose trial and what should we expect there.

Okay. Thanks. Thanks. Thanks for the question, Yes, I think again, we're aligning with Astrazeneca on the specific communications plan, which includes scientific disclosure or disclosure it into the upcoming scientific or medical conferences. We are currently in discussing around the most appropriate time to disclose additional data from.

The phase one beat which would include as being more had mentioned doses at lower cohorts beyond what we.

Presented at Ers were not going to rule out presenting data in the second half of this year at a scientific and medical conference and that's something currently under discussion, but we're not definitively committing to that because we are doing that in joint collaboration with easy and looking at the best opportunity to present the data I think it's fair to say that.

We are focusing our efforts on phase two a readiness and that's where the attention I think is rightfully placed so at that juncture I think that will be the more focal point as opposed to the interim data or additional data, but stay tuned we will provide more definitive guidance you know as we move for.

This year on precise timing, but our intention certainly is to make those data available once they are complete and once they've been valued at an appropriate for him to share at a conference. Thanks.

Got it and we have just a couple on Prs three four or three in the event that second half medical meeting are affected by the pandemic. How would you think that would affect the three for threed data flow for the year under second question on 343, as what needs to happen before.

<unk> cohort cohort.

Yeah.

Right. Thanks, Pam well as mentioned, we prepare a we pre we're preparing to disclose topline data.

For 343 beyond what we presented at at city at R&D day in connection with when we share the details going forward and it's our intention that those will be very informative to investors and industry as far as detailed disclosure at subsequent.

Upcoming medical conferences, I think we just have to wait and see a I think that we're all as an industry going to need uncharted territories with respect to how we're going to be managing disclosures and attendance at these conferences I think we're not going to let that impact progression of the program.

But we will do our best to keep the investment community apprised of the necessary details in a phase appropriate at a phase appropriate manner.

Got it thanks.

Thank you.

Your next question comes from line of Mad Do Kumar with R.W. Baird. Please proceed with your question.

Hey, everyone Jennifer on for an idea I'm just a quick question about cash runway and I apologize. If you mentioned I called out a little bit during that time.

You just let us know on what your cash runway, we'll go to and which of the current program.

Either in clinic now going into the clinic that my color. Thanks.

Sure. Thanks, Steve here I'm happy to to Tee up that answer at a high level and I'll, let Tom takeover, we have been very I think efficient in the last quarter and mindful of have been bead on the Fisher with our cash spend on a go forward basis and with our lab.

Asked finding out saying, we believe we've achieved our objectives of allowing us to move Prs. So 60 forward in development.

To to be on the other side us.

Used to a data, while allowing additional incremental investments in additional programs. As a reminder, we do not have to make any out of pocket investments in Prs. So 60, those are fully reimbursed by astrazeneca.

And the phase two way, we'll be sponsored and funded in pool by Astrazeneca.

We haven't ever provided cash cash guidance or spend on on a quarterly basis guidance, but you can look at the trends and and you.

You can see how things have been progressing quarter on quarter.

Tom feel free to add any other color on that if you want.

Okay.

Sure I think just you you've covered all again, our cash balance at the end of year was $104.2 million.

And like you said, we don't historically provided annual cash.

Burn or runway, but but certainly we do not have issues of.

Looking out beyond.

Going concern.

Timeframe for us so.

We grow our good position to continue our clinical development of 343.

During the three important Florida, I envy and into the clinic, and then and as Steve mentioned on 60, which is.

Not a cost for us but.

I would expect to those current clinical trials to continue.

Great. Thanks, so much guys.

Your next question comes from one of buyer in women with Jefferies. Please proceed with your question.

Yeah, Hi, guys. Thanks for taking my questions. So if that's overall.

On Prs 343, how many patients will we get at the eight milligram per kilogram dose for monotherapy I think your dosing at every two weeks, that's where I think you saw signal at at the Society meeting and then I guess for your plans in gastric are you looking at combinations with Cyramza and path.

And second line I think you mentioned this at your R&D Day last November and also in combination with PD L. One and third line is that the plan that you'll likely analysis in the third quarter and the second quarter or things change.

Yes, Hi, Barry and Steve here.

I would say on the first question, we're not going to disclose specific details today.

We wish the file design, we have the flexibility to enroll as you saw from the city presentation ill patients be honest standard three plus three study.

And we would intend to unveil such details including number of patients.

When we provide the more more.

Detailed topline disclosures when we announced the more to find development plan for this program as far as combination therapies. We did outline some contours of continued development, whether monotherapy or in combination therapy at R&D day, our thinking continues to evolve there anything Mark you want to provide.

Additional color.

You can do that now although again took the context here is stay tuned for more definitive details as we work through multiple options over the coming couple of months.

Yes, again, not so much to add.

The combinations that you had mentioned.

They still.

And the focus of our considerations, but we're also looking at other.

Options, while carefully monitoring the therapeutic landscape as it evolves.

And we will disclose more definitive plans and the second quarter.

And then based on the dataset that Youve generator are there any tumor types that you study that you hold out.

To move forward with what's the before three.

I think we still.

Prioritizing gastric.

Yes.

Our first indication to look at while not pulling out of anything else at this point, we still continue to look and follow the or two space and.

We're not.

Putting any possibilities there at this point.

But stay tuned for yeah update in this in the second quarter.

Great. Thank you.

What I'm hearing.

As a reminder, if you like tasks question. Please press star one on your telephone keypad as a reminder, if you'd like to ask a question. Please press star one on your telephone keypad one moment, please while we pull for questions.

Your next question comes from line of Matt Fips with William Blair. Please proceed with your question.

Hi, everybody. Thanks for taking my question just.

One I know you might not be able to say, but I was wondering if you selected the every two weeks every three week dosing for 343 going forward and then also you think that dosing frequency will be used initially for 344.

Hi, Matt Steve here. Thanks, again, good questions that really centered on the biology of four one DB and looking at that PK PD relationship and we we have been of course generating a database from 343 and also we have preclinical.

Data to support how we're thinking about 344, so I would let shane provide a little bit of a.

More details on how how the emerging 343 data our informing both ongoing development data.

A fixed dose as well as 344 associated why don't you take that one.

Sure. So some months thanks for the question and one one thing I would say that there will be learnings from Prs 343, which will help inform design and interpretation of fade out a prs 344, but we have to remember there are two very you know there their unique programs on the molecule.

Olds, while both targeting form be we'll have a unique properties that will require.

Depended devaluation in terms of Prs 343, we certainly broken the flexibility seats lock us different regiments schedules in terms of.

Three weekly every two weeks in every week dosing.

To ensure that we.

Capture as much information about full BB biology as possible in this program. This is as you know our lead program and also the first form BB by specific in the clinic. So there's a lot of lessons that we can learn here. So we can then apply to the franchise as it grows.

In terms of Prs 344, we haven't.

Closed trial design.

For it but you know it's as it was say as the other said, we would look to build and some of the flexibility stocks, we found very very valuable and the Prs 343 critical.

So just a follow up I mean, I guess the real question is with 343 I mean, you guys went all the way up the dose escalation before then really looking at changes in the temporality dosing and I guess, starting 344 now or you are you going to.

The balance wanting to increase the actual does forgiving versus also started into test.

Different gotta scheduling of those is.

Yeah, well as as we presented Oh I see we performed in a preclinical study studies.

Simulations, which suggested when we felt we would start see informed bebe organism.

That allowed us to be.

Two two to identify the area in which we should explore different term for all those things.

In terms of to starting dose with these studies.

There is somewhat defined by.

The FDA is safety criteria. So what we would aim to do likes like what Prs 343, we would aim to do.

Very limited works and initial cohorts, where are we gather safety data and then based on our preclinical models really focus on on on that section of the study where we believe form BB agonism is really coming into play so.

I am I would say that.

There's.

There was a lot of methods in terms of how we approached the the.

Valuation of different schedules and Prs 343, certainly we can refine drops further for three or your US three four for what we need to be mindful that there are different agents Prs 344 is a four won't be PDL one by specific so.

Opportunities for additional agonism or the additional T cell activation beyond since before and be as well there. So those things will all play into our thinking in terms of how to manage the clinical trial.

I guess, the PD ones that appeal ones.

Show activity at a fraction of their approved dosages.

So I guess as your as you're looking at yeah. The dose escalation at the 44 is it.

Yes, really going to be rely more than a biomarker data.

Yeah.

Ways to look at I guess, the Ford BB agonism of it as opposed to maybe just looking for responses, which you might start seeing at lower doses just because of the.

PDL one inhibition.

Yes, so those things will all be taken into consideration maps and what we will aim to do it.

Sure future updates is give more color in terms to our thinking and so I'm not the appropriate time.

Resent designs on and emerging data.

Thanks, and then one last question I mean, it it does sound like you guys are I.

I guess, becoming more encouraged by what you're seeing with 343 in general the before we'd be coast and strategy. So excited for the 44 star, but are you at a point where you're.

Got it thinking about other programs and then I guess kind of a lot of new play right now but.

Do you think we hear about other programs that you this agonism or maybe anything from the sale to the collaboration.

Yes, well think about seem here then I can maybe just stay a couple of words and then Shane feel free to color in a think of the answer is yes of course I mean, we we have been investing.

For last half decade deeply into four lumpy biology coast in biology, we we then into the clinic first in bi specific so for a long BB and the whole industry and continue to have a position of leadership and that doesn't stop at 343 or 340 for the good news is that we have multiple partners.

The ships that allow us to advance multiple projects forward at a capital efficient manner and those are as you see with 344 also for lumpy based but we are continuing to look at other approaches including other for when BD pairs as well as other ideas.

And that's something that we will continue to consider in a thoughtful way knowing that we want to have a balanced pipeline and we want to.

Exploit the value of current partnerships to help advance the pipeline in most efficient manner possible, while looking at the potential for additional partnerships as well as additional fully proprietary programs that could complement what we've already been doing.

A chain if you want to provide any other callers on the biology leadership that we've been going out I think that would be.

Worthwhile.

Yes, certainly in just two two months points, you know that the fundamentals that attracted us to form bebe.

Our strong as strong as ever an over those.

Five years that we've been really pushing hard.

In developing prototype molecules and that bringing Prs 343 into the clinic the emerging scientific data from independent of the bar trees as only strengthened our conviction that this crossways relevant we have been endeavoring to do over the last.

Last years in the clinic has been in a very methodical way.

Identify and elucidate as much as possible that buys were four won't be agonism is relevant when we believed that puts us in a great position too.

Hi, Prs 343 forward, but also work hand in hand, what our partners, including Sergei to ensure that are the follow on programs our position in the most appropriate way.

All right. Thanks.

Yes.

Alright, Thanks Pat.

Ladies and gentlemen, we have reached the end of the question and answer session and I would like to turn the call back to Mr., Stephen Yoder for closing remarks.

Well nothing more to say other than to thank everyone for your attention and for your continued support of peers are we look forward to keeping you updated on our progress and thank you again for joining the call today.

Great day.

This does conclude today's conference you may disconnect. Your lines at this current thank you for your participation.

[music].

Oh.

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