Q4 2019 Earnings Call
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Time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance. During the conference. Please press star zero on your telephone keypad.
As a reminder, this conference is being recorded it is now my pleasure to introduce your host Lynn Lewis Investor Relations. Thank.
Thank you Lynn you may begin.
Thank you so much but probably begin today, let me remind you that the company's remarks made during this conference call. Today March 12 2020 include forward looking statements, but then the meeting of the Securities Act is 1933 concerning current belief of the company forward looking statements are subject to numerous assumptions risks and uncertainties many of which are beyond that.
Jim Byers control, including risks and uncertainties described from time to time and kept <unk> SEC filings, including those under risk factors and elsewhere. Okay buys annual report on form 10-K for 2018 combine those results may differ materially from those projected combine undertakes no obligation to publicly revise or update any forward looking.
Statements made today encourage you to review all of the company's filings with the FCC concerning these and other matters with that I'd like to turn the call over to Gal page interim President and Chief Executive Officer, It can't bio.
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Thank you for joining.
It appears to be speaking with you today, our interim president and CEO and also to introduce Rick I really don't mean, kenbei as our permanent president and CEO.
I would like to begin the call highlighting several recent accomplishments and then talking about where I see our business today and our position for success going forward I will then turn the call ever to nail the will review our financial.
Before we dive into the quarterly update I would like to comment on the transition since the beginning of the year.
First I would like to thank the management team and the shareholder for your support over the past couple of not.
This has allowed us to provide the continuity needed and remain focused on our key initiatives.
Second to realize the cost improvements for our investors and extend our went away by decreasing our Casper. We have created project. When this all this initiative, where you're going to focus the key driver for the businesses, we look forward.
Third the board of directors as important Rick ever lead to serve as the new CEO, Rick as an industry veteran who will bring a wealth of experience to the company.
Lastly, we just announced this morning as their ticket parkerson liquid maritech, which demonstrates our ability to leverage our assets in an expeditious manner when opportunities present themselves.
During the commentary I will provide more detail with regards to our nascent yet and the announcement around the present 19 strategic partnership.
We had a busy for next year I kept by 2019 end of it or 2020, well positioned for success.
First I would like to address our financial result that we were disappointed with the reduced rate of growth in our product revenues versus prior years are you western European businesses were up but they were mitigated by shortfalls in Africa and Asia. We believe this is in large part due to the timing of annual tender.
Total revenue shortfall was principally driven by the increase in R&D and grant revenues.
Likes to the cadence of our collaborative for work with customer so to the after spending the indicator.
Now I'd like to review a number of recent highlights from last year and started this year.
We closed the acquisition of a privately held Brazilian manufacturer and distributor point of care diagnostic test for infectious diseases, which is now operating as a wholly owned subsidiary of kept by now known as Kevin by Diagnostics, Brazil.
The team that's an expanding our private fund business in Brazil, and they're able to access to markets outside of federal government Wood coatings state and private sector is what we're saying for future growth opportunities for all of our product.
We were state two important approval by the World Health organization birth, we received the data and kind of Prequalification approval of our Malaysia manufacturing facility, which allows the company to cost effectively manufacturer our stat Pak HIV test in Malaysia and supply into international markets.
We are pleased so now that we began shipping in the fourth quarter of 2019.
Hello production in this facility, we expect cost to goods sold to be ready and our global production capacity to increase their full provide opportunities to proceed admitted business. It paves the way for future qualification Hooper. These other parents in this facility.
Our second approval, it's easier for qualification for sure check HIV self test, which allows the company could expand commercialization.
What we believe is the easiest to use HIV self test available.
Yeah, We announced the award for the DPP Zika I P. M D J system for $1.5 million from units it and expect to start shipping products thing.
We entered into a collaboration with shark human genetic therapies, a wholly owned subsidiary Takeda pharmaceutical and earlier. This week, we announced that we've completed the technical feasibility phase we support their ongoing research programs with indicators rare disease therapeutic area. We're pleased to have completed that they said it'll be bay.
Which demonstrates once again the diverse applications upset by acknowledging our team successfully provided quantitative results and approximately 15 minutes from a small 10, microlender drop a finger stick blood using our patented DPP platform and handheld optical analyzer. In addition to pay that down.
Providing such sports talk the funding for the next phase of the program.
We entered into a worldwide strategic partnership with a merit The act limited to develop chronic care diagnostic test for the depiction of the Coke in type two diabetes as well as.
I am an RBC antibodies all boats for a little married the air and kept by DPP platform. This expands its.
Right, that's our existing relationship with the merit the yard and further demonstrates our scientific expertise and the versatility ever DPP platform through our joint efforts, we expect the new products Super Dot com.
Perhaps the leases to the new demand certainly the worldwide testing needs for cousin 19.
We generated fourth quarter total revenue was 6.9 million and product revenue of 5.5 million, representing an increase of three fold not perfect and 17.9% respectively compared to the prior year period.
Product revenues were driven by Brazil, Latin America Europe anywhere in the U.S. HCV landscape continues to grow organically, we brought in Brazil, we continue to work with our partner by Membrana to provide the federal government with S.T.D. it profitable disease Pat.
2020 award has not yet been granted and we continue to make progress towards securing this important business.
Also we had made significant strides integrated they aren't black organization, which we have now renamed hidden by diagnostics prevail.
Well this team our focus is the real state and local customer we began recognizing regulated revenues from this organization in December and expect this contribution to growth as a timbar product portfolio achieved registration.
After a period, where do we have created several parties within the commercial organization.
First the maximize infectious disease vertical through all voice product improvements and targeting additional me.
By creating a formal service vertical which will focus on pharma and collaboration.
We have demonstrated the depth and breadth of our novel technology platform and expect to expand upon these efforts. This will allow us to provide oversight or efficiently so would treat profitable revenue and expand our offering.
Lastly, put them on the possibility of including other products technology and platforms that are complementary and take advantage of our existing manufacturing capabilities as well as our regulatory and commercial infrastructure.
Relative to advancing our R&D pipeline, we achieved CE Mark for sure check HIV self test and we had two upcoming FDA approval pending.
These include the P. It may approval for DPP, HIV syphilis, multiplex, Paris, and Mike Reger system, which we communicated previously they need to repeat the reproducibility said I'm pleased to report those are on track.
The five okay approval for BARDA DPP easy to I'd be able to system with Mike reader.
We continue the successful integration of Tim Diagnostics, Germany. This team has successfully completed development of the second generation analog Atlas and achieve CE Mark we continue to focus on our opportunities to expand existing I weigh in business as we move forward.
In addition, we continue to pursue research and collaboration in the area because.
Operationally, we also made significant progress to add capacity for continued growth are you in its manufacturing automation strategy is designed to increase gross margins as well with increased production capacity deficiency and flexibility as you recall, we commenced production BP Pete.
Parents I'll I don't want remember one early in 2019 line number two is slated to be operational and the second quarter and we expect it well I remember three to be operational mid year. Obviously, we're continuing to monitor how has probably been like team pandemic might impact or supply chain and technical support.
Our automation program, we're putting in place backup plan should they be needed regardless facilities, we will adjust our schedules to accommodate our project red hat's off goals and objectives.
Looking ahead. These are the key initiatives that we will focus all decreasing the burn and extending our cash runway expand our sales and marketing efforts to drive more profitable rather than we are open to bolt on technologies and they tend to grow organically and be opportunistic to that end, we admire the CEO that Andrew.
Transition with me and continued to execute palm initiatives, we have discussed on this call today.
Next we met successfully complete the integration of Timbar, Germany can buy Malaysia and by Brazil.
We have a great team and wouldn't you doubtful that doesn't tell just to continue to create shareholder value.
With that I'm pleased to introduce Rick Airberlin, Rick will make a few comments.
And we will have an asteroid joining today and its official start date will be all this coming Monday, the 16 would that Rick.
Good afternoon, that's your jail for the introduction I'm excited to join Chembios, It's about CEO.
It is clear to see that Kim bio has a talented and motivated team.
I want to thank the board of directors or deal because the interim CEO for their vote of confidence and my leadership skills.
Mr experience and track record of success and the rapid infectious disease market.
I look forward to a strong collaborative relationship with the board of directors and working closely with deal over the next several months to assure a smooth transition of leadership.
Chembios success penetrating global infectious disease markets expanding applications for the DPP product platform, an automated manufacturing or things I believe we can build upon immediately.
The strong platform technology has attracted some of the largest collaboration partners in the industry.
The company's investments in manufacturing automation will enable efficient stealing of operations to compete in the global infectious disease market.
The expansion of the disease state categories provides the opportunity to the two diversified growth in both revenue and profitability.
Again, I look forward to contributing my past 23 years of international experience and expanding global capabilities through acquisitions commercial partnerships and expanded manufacturing capability.
Finally, I'm excited to meet and work with the members of the gym bio investment community.
He worked as a senior executive real public company for many years.
I'm committed to work with the board of directors shareholders customers and employees of Tim bio to ensure a continued supply of high quality products to our customers a great place to work, where our employees and a strong return on value for shareholders.
So thank you.
I want to recur.
Comments and remarks and that we have a remarkable team an opportunity with data out there to nail to provide details on our financial results.
Hi, Thanks, Gail and good afternoon, everyone and I Echo Gail's comments and looking forward to having Rick joined the team.
Net sales for 2019 were $28.8 million, an increase of 3.3% compare to the prior year for the year end to 29 see total revenue was $34.5 billion, a decrease of 23% compared to the prior year license royalty R&D and <unk>.
Net revenues combined for 29 fees were $5.6 million, a decrease of 15.7% compared to the prior year.
R&D revenue is related to the timing cadence of program performance obligations, which do not always occur in a certain period, but we continue to incur certain of the expenses.
As Gale described earlier compared to the prior year, that's harder sale experienced gains in the U.S. Europe and Latin America.
The U.S. sales benefited for winning back at large public health program and other competitive opportunities about Latin America benefited from the initial sales of our trust for Zika daily and chicken Gunia in Brazil.
These sales were offset by lower sales in Asia, and Africa, which we believe it was in large part due to the timing of annual tenders.
The relatively flat results in total revenue was principally driven by the decrease in R&D Grant revenue, which relates to the cadence of our collaboration work with customers such as Astrazeneca and Takeda.
Gross profit margins improved by $1.1 million compared to the prior year.
This corresponding to a 340 basis points improvement from 19% in 20, 18% to 22.4% in 29 team.
The gross product margin improvement resulted from the impact the geographic mix on average selling price initial benefits from our first automated assembly line reduced contract labor costs and the increase in product rose.
Other expenses, which includes research and development and selling general and administrative expenses were $24.7 million for 29, TDE compared to $19.6 million from the prior year.
R&D costs were relatively flat it was the increase in clinical and regulatory costs related to new product registrations and ongoing work related to the DPP HIV syphilis P.M.A. was offset by a decrease in other research and development costs corresponding with the decrease in R&D right.
I do that I mentioned earlier.
The 5 million dollar increase in S. DNA, primarily related to zero point $9 million of additional cost from having kind of bio diagnostics, Germany onboard now 1.1 million higher non cash equity compensation costs and point $7 million or grant.
And other costs related to leasing our new facility and how apart New York, which were also partially non cash and 29 feet due to the upfront period without any base rent payments.
Net loss in 2019 was $13.7 million or 81 cents per diluted share compared to a net loss of $7.9 million or 54 cents per diluted share in the prior year.
On the balance sheet cash cash equivalents as of December 31st 2019 totaled $18.3 million net working capital as at December 30, Onest 2019 was $26 million.
Yeah, we will now open it up for questions.
Operator. Please go ahead. Thank you.
Thank you.
We will now be conducting a question answer session. If you would like to ask a question. Please press star one on your telephone and wait for your name to be announced.
You made fresh start to if you would like true maybe a question from the Q. If you are using a speakerphone. Please pick up your handset to ask your question. Your first question comes from Kyle thousand from Dougherty and company. Please.
Please go ahead.
Thanks, Hi, good currently own welcome aboard Rick Thanks for your comments here.
Thank you Carl.
So I'll start off with the partnership with Lumire de XM, how long can we anticipate you know taking to develop a test and then subsequently to get the okay from the F.D.A., maybe you could just kind of walk us through timelines and next steps here.
Oh, sorry in the past that can Tyler.
As far as timing I think the only thing we're prepared to comment on today at the obviously, we believe bringing the two organizations together will really propel this and that will be denbury expeditiously. Obviously, we had been doing some feasibility work and monitoring and nurturing things as they have developed.
So it's our goal to obviously brings something to the market as soon as possible, but we want to bring something that's commercially viable something that can make a difference and it's not just noise in the market.
It does that help you.
Yeah. That's helpful and just following up on that so you know of course, the beep DPP platform seems perfect for an accurate test here as it relates to covert 19, but can you talk about what Lumire will provide his partnership I know one in the previous partnership Dave.
You know for infectious disease testing, they provided funding, but it looks like.
You're gonna be utilizing their own platform as well so so how how does the partnership look in kind of who's doing what.
Sure.
So obviously you know we bring a lot of scientific expertise to the title as Steve America, yet and we process together. So that we can put our collective intelligence together they have a tremendous distribution network and this is a case, where it is a strategic partnerships and we built in the spirit of a win win so.
But that aside the properly incentivized and rewarded our goal is to bring the products to market all part of platform and the merit the export sales ATP and their own platform. We will I think that's in the 8-K, we'll talk a little bit more about [noise].
I actually thought or develop the program, but this is really I program, where it is a in the spirit of is pretty strategic partnership.
Sure. Okay, Thanks, and any to the extent you can share I mean, any estimates to how much of your own capital you'll be committing to pull that 19 and.
And further you in talks with no local governments are foundations for grants around this test.
Yeah totally in most of the fashion, but obviously you know our working capital is very prices to us and we understand that it's a fan to point out because it's important is our box.
[laughter] does have Claire and there's.
There's has class a assets to anymore. So when you think about it you know there's the best the best laurels here with all the.
Oh products that we can develop and that we have on the table and there is obviously component to this where the merit funding you know the development.
They're box.
Okay. Thanks, It and then just trying to actually here.
Keith or walk us.
Sorry.
As a target Oh <unk>.
Can you just walk us through relate to the ticket partnership. So the feasibility is done can you speak about what the next phase of this product project details.
And in you mentioned it triggered a subsequent tranche of funding you can you speak to levels capital that was triggered.
Yeah.
So I'm going to refer back to jabar, It's our chief Technology Officer.
Well I'll just give a brief comment on the on the next phase of development.
No. This is your bonds.
We basically have I'd be made a press release be completed the feasibility and we are non busy to do whose development program. That's one of these and that's when it will be completed evoke not pre the design and.
I'd be shoes and verification.
Okay, then as loved the level of funding for the Tron trying to I don't know if I got that.
Oh, Yeah, Kyle as you may remember from previous a newer programs going back over the last a year I have heard too we've gotten away from disclosing those amounts for competitive reasons.
Okay understood. Thanks, so much for taking the questions. That's it for me.
Hi, mom tied to follow up.
Sounds great.
Thank you.
Your next question comes from next Mizusaki from Canaccord Genuity.
Please go ahead.
Hi, good afternoon.
Hi, Matt.
Hey, So you know your global organization I imagine that public health organizations are preoccupied with cover 19 right now how some of those conversations been going lately.
And how could covert nineteena SEC traditional timing cadence since these government tenders.
I don't I don't think that yeah, we haven't seen it that's being an issue at this point in time, but this is a very dynamic situation in the market and the best we can do is make sure that were in touch with ever Gideon monitoring this daily, but we haven't seen habit.
At this point, but you know we don't know how to it's very hard to protect set at the moment of how we might change, but we haven't seen anything relative to impacting our other orders.
Okay, that's great to hear and then on a mirror gx. So how maybe maybe javan can answer this one how the proposed test address some of the issues with the existing tests that are available.
But in shortage right now and then from scientific standpoint.
How confident are you that that it's possible and that helps us get the turnaround time be.
Sure. So let me comment and then I'll have to bomb comment I think when you put when you think about putting me.
Competencies and these two companies together and you put it together in the form a strategic partnerships, where we're all brings to table one of the things that we all thought about as they monitor this situation I hope that everyone will respect that we did not major we've been very entirely focused on understanding what's going out.
Monetary good dynamics in understanding what is it ultimately the market's going to need and testing.
So we think about speed, we think about time to market and we think about a collection of intelligence of Latin America, where instead the title. In addition to Kenbei I like I said, yeah. When you bring all that together and you put it together every that even send about him awarded we think we're going to bring a big difference.
And that describes it to a lot of the folks internally, but we don't want to be another another company opposition specking knowing when it comes at the table, we want to do something that significant and what makes a difference and that has you know some aftermarket impact because you know some one time yeah there.
This will come down so to speak that we want to make sure that we've got something that will be valid to the market as we move forward relative to no our ability and what would that I'll turn it over to bond to make a comment.
I want to try to explain very shortly at Florida. What are we devote up you know how competitive it will be.
Based on information we release, we are developing two sets up the program. One is the direct NP June but we are looking for why right that will be based on it sounds like a swap the other would it be federal logical that they are similar goes products that we have developed an approved I'd, Yemen, LNG detection, which we have to.
Seem to value added for monitoring and and and surveillance program. Obviously as Dave mentioned, we will use the expertise of two company, we have been working but limited for a period of the time and we have also extensive network even government agency University access.
The reagents access example, and I know, we know the basically basketball, we seem to be can bring to commodity product line to the market.
That's very helpful. Thanks, and then one more if I can I guess, how how would you characterize where's levels for from potential customers and HIV syphilis and the value in the multiplex test and then would you say that there are customers under that are waiting for approval pent up demand order and so once this does get.
It approved what do you expect the adoption curves to maybe be a little bit steeper or more of just to push out to that adoption curves.
[laughter].
[laughter], so if I understood you right, you're asking about the its Honda HIV syphilis.
Yes.
Right so.
Well, we put out an update a press release when I talk with many many people many of our investors about that one other things, it's important where the HIV.
It was combat is yeah, we don't have aspirations that we're gonna go type business or whether it's going to quit for labcorp, but there is I think market out there, but is there a concern with the mother baby transmit the transition of transmission.
And when you think about it if they can have thought that there's pits at one time, that's a big benefit so what's going to be important is when we get that approval. It's also just subsequently get our CLIA waiver approval and that's going to put us into a lot of the market, where they really want that HIV syphilis combo testified that it's very hard at it and it's a very.
At quarter past to help us penetrate the U.S. market.
Okay, great. Thanks for taking the questions and Rick Congrats on the new role going forward to work and you.
Thank you Max Likewise.
Thank you.
Once again, if you wish to ask a question. Please press star one on your telephone and what's your name to be announced your next question comes from Bruce Jackson from Benchmark company.
Please go ahead.
Hi, Thank you for taking my questions if I could get an update on the the a Astra zeneca test that'd be great.
Yeah.
Okay, Hi, My second I'm going to pass them I haven't seen goodbye.
We have communicated we completed development, we achieved the CE mark imminent product. So right now we are in discussion would address any cost for continued clinical trial be or do we need you animal and that's what's the RV at this point.
Okay and.
Then you made an announcement about you a companion diagnostic test with some Takeda yeah, completing an important milestone do you ever rough idea of one that might actually reached the market.
We have no we haven't got insight into that at this moment as you can imagine [noise].
Yeah, we're part of the overall research programs in that entity that are focused on rare diseases. So the good news is is that you know we're continuing to be part of that and we will progress that we don't have any insight into that.
Okay. Then next question is on the the contract with Ethiopia, which is a three year contract and that's going to or come to the end of its term. This year. How do you feel about your prospects forgetting that contracts renewed after after December 2020.
Oh.
Yes, hi, its Neal Bruce So what I can tell you is that we are in the Ethiopian algorithm and is a quick reminder, for everyone in and most patients in Africa HIV testing follows an algorithm, where there's a screening which is the first level and then there's if you receive upon.
The first level, there's a for inventory, which is the second level and then if you get this it was confirmed then you have HIV and there is it's their results. There's a third level algorithm. So we are right in the first level position in Ethiopia, which we think positions us well for.
Or for the a renewal of that and as the appropriate time will enter into negotiations and comment on that in due course.
Okay and then last question is on just about your pursuit of the decoded 19 testing you guys are really known for blood borne infectious agents. This is your first venture it think into the respiratory.
Area I'm, just curious to know why you decided that this was something that you wanted to pursue and and.
What's long term.
I could potentially do SEC for for rapid test product compared to a standard laboratory based products.
So we do so there's a twofold answer for your question.
We do have experience of respiratory programs, we have not maybe market did what we have.
Several years ago extensive program at this CBC on them on on that too.
But.
The products that we are now recruitment. Indeed is really is a screening program based on a pro dock them based on other all spread to be happy to eat refunds outbreak psyche bolt on Zika Sabra platform, all would analyze that excrete very well because as you may know we October.
Involved in large population always ask symptomatic and we believe that our past when we provided a peak about doing that.
Also the relation goes with them Ramiro had hoped for value here because the habit experience in respiratory area. So this is the reason we've seen these added mapping here.
Okay, So where did the point how does the test change the treatment of the patient. So is this test if it's available on a rapid format I couldn't change the way that the patient is treated or will the the a clinician start treating the patients and then one a follow up later with.
The other tests, so I guess when a driving it is.
What's the point of having a rapid cove at 19 test.
Obviously this is a very dynamic.
Process right now so we talking to agencies and he does a b demand on the past fees and that it is just it wouldn't be everyday sometimes quite every hour. So here. We are we think that we have a platform do you have a technology. We have expertise we can bring added value, but maybe you don't do of course.
So you are asking is disgusting right now in old agency and we are contributing we are trying to be part of that discussion and so how's that didn't pass will be use if not better but not broken up every one right now what we see weekend with the partnership here be part of the discussion and contribute.
[laughter].
Thank you.
There are no further questions at this time.
I'll now hand back.
To me there is actually one more question.
Your next question comes from Pet Ostlund from Craig Hallum Capital Group.
Please go ahead and human error good afternoon, everybody sorry for the the 11th hour Star One [laughter] I apologize in advance if I duplicate anything because I was I was trying to be a into places at once so I'm just a follow up with on Bruce's question with.
It relates to lira Dx, so you've got a strategic partnership there.
In place, you know where youre going to be introducing.
A number of products in collaboration with linear over.
Over a period of time and I'm curious in terms of.
How you structure that relationship yes.
If covert 19 kinda jumps to Q1 anything or the things that you were working on with Lira is the cadence that you were looking for for you know call. It does your next year more or less impact in that this is just going to get kinda bolted onto the side of it.
That's a good question [laughter], there's you know I need to be careful here because how we interact while we do a wasn't there yeah, we want to.
Respect their confidentiality if you will what I can say is that.
Okay.
Well that is that this is an entirely new agreements that this is a strategic partnership. This is one where both Chris will have the tests. They lived there will be selling the DPP as well as they're all box.
There are a lot more in this agreement that again properly incentivized to some awards by service for getting the test as a market in a very expeditious manner.
Also I guess to point out there we're all very focused taking all the intelligence and then there is the here and all the intelligent here to make sure we have something to commercially viable. It's just like IRSA. Good yeah, we had to get a test for the fluid right. So how do you get the Doctor and you need to know do I have to Florida, right, there's all kinds of new viruses.
And that goes back to well why do you need to know what do you need to know what they say stay calling you know you know you don't get on the plant. They got the flu or you don't whatever so I think that yeah. We have a lot of expertise and bringing these types of things to the market. We at the platform. They had the close of intelligence, but.
I think it's a it's we're very optimistic and we're sorting out all the details.
Okay. That's that's entirely fair another question that potentially would've gotten touched upon but.
<unk> in realizing that this might be a tiny bit shortsighted, just given the rapidity of the the cold and 19 developments, but are you finding with you know the government and non government agencies are you finding that that there.
No I don't know if there was a if there was a reluctance necessarily to to commit to purchasing.
Pleading tenders in other venues right now besides cobot 19, while they're simply scrambling to try to you know make sure that they've got the appropriate response to the current outbreak or is it the situation where they're trying to do it all at once realizing that these other you know infectious diseases don't don't stop.
Well this one.
[laughter].
Yeah, well, what I can say its day I mean, we've not seen or how does it impact of is it from that standpoint, where they're saying Oh I'm not going to do just because I have to deal with it but it's at least not going away. The problems that they have day to day are not going away. Just because this is interjected itself. So of course will be monitoring everything very close.
Lastly, but to date that has not been an indication.
Okay. That's very imitation is the everyday somebody calls me wanting to know do we have here [laughter].
So how about [laughter], what about and we were able to talk about what we have been writing and where I'm very pleased with the progress that we've made within their Dx.
Excellent excellent all right last question for me then as far as Brazilian fever goes I know, there's been conversation in recent quarters with.
Competitors being.
Literally sidelined because of you know manufacturing issues.
His his Brazil circled around and meet any words, it and in done anything in the room, a fever as far as 2020 is concerned or is that still kind of.
Sitting out there as an opportunity for you.
So for the feeling is the progress even on obviously this new situations made today to process, but they are still we have launched a product in brizzy Lahore.
Took last April we got the chicken when you out and we also mentioned here that we have been up or is it with a unique SAP. They selected our pro forma screen you know the its pregnant woman for Zika. So we are still in discussion.
Okay Debeers. He is very good <unk> the only other thing perhaps I would add hair is as we described on our Oh Wow call. When we announced the acquisition of Orange Light is one of the benefits of having a long facility and on legal entity within Brazil I've given.
I wouldn't say a closer seat at the table. Then we were previously able to have through a longtime partner be only genius, which of course, there's still a very valuable partnership, but that's closer seat at the table is something that we are excited about being able to produce benefits as we get all the process of getting along direct.
Registrations of project all the other products, which is of course ongoing everyday here now.
Okay, Alright excellent I appreciate all the answers and I'd be remiss, if I didn't add my my welcome to Kim bio to you to rec as well so welcome and every day rooms things.
Thank you very much.
[laughter].
Thank you.
There are no set of questions at this time I would now like to hand, the conference back to go page for closing remarks.
Well I guess I think again, thanks, everybody for joining us today for your support during this transition and we look forward to updating you on the next call have a good day.
HM.
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