Q1 2020 Earnings Call

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To the Scoop, it's nice uptake in first quarter financial results Conference call.

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Thank you operator. Good afternoon. This is a bomb Briggs with L.A.J.. Thank you all for joining today's call to discuss Opco health financial results for the first quarter of 2020.

Back to remind you that any statements made during this call by management other than statements of historical fact will be considered forward looking and as such will be subject to risks and uncertainties that could materially affect the company's expected result.

Those forward looking statements include without limitation the various risks described in the company's FCC filings, including the annual report on form 10-K for the year ended at December 31st 2019, and in supply subsequently filed FCC reports.

Importantly, this conference call contains time sensitive information that is accurate only as of the date of the live broadcast may six 2020.

Except as required by law Opco undertakes no obligation to revive or to revise or update any forward looking statements to reflect events or circumstances. After the date of this call.

Before we begin let me review the format for todays call Dr. Phillip Frost, Chairman and Chief Executive Officer will open the call then Steve Rubin Opkos Executive Vice President will provide a business update and pipeline review and then Dr. Cohen will discuss bio reference laboratory.

After that Adam local Opco CFO will review the company's first quarter financial results and then we'll open up the call to question.

Let me turn the call over to Dr. Frost.

Good afternoon, and thank you for joining the call today.

More change since our last conference call.

Sure extraordinary times in the public kills Charles just posed for the Cobra 19 Prime dynamic.

In part due to almost every aspect of our lives since the end of February.

Oh, we're pretty solid returns it's been at the forefront of testing for this novel granting of ours and we remain in constant contact with government officials at all levels I'm really proud of our management team and our employees, who continue to work around the clock to bring various testing for forms online to retrieve or targeted capacity levels too.

Me, increasing demand and to play a critically important role and probably killed.

There's really no.

Bar will bring says hoard partnerships with several states cities and more health care systems to provide more color testing to some of the hardest hit areas.

As of last week, we also started awfully I don't body testings, nice nationwide, which may be helpful. In understanding who has been exposed to the virus and has some level of immunity.

And then a body testing is an important next step as we start to open up the economy, a move forward with our personal lives.

As you would expect or based testing business has been impacted.

You remember government initiatives to reduce the spread of divorce with social distancing and stay at home orders, it's been a significant reduction in physician office visits and what the medical procedures. Although this impact is continuing into the second quarter. We believe demand for covert 19 testing provides an offset to this.

Coin and routine testing volume.

Yes, we with the pent up demand for on the body testing.

And then do you have a great work would be our ROE, we continue to make progress with our pharmaceutical business. As you know we reported favorable topline results, where there's some other well regarding phase three trial in children and growth hormone deficiency meeting the endpoint of Noninferiority.

Prior to the once a week product.

[noise] good only bar once a week brought compared to the current standard of daily injections. We look forward to reserving detailed phase three trial data to reschedule Endo online 2020 this true.

Also or sales representatives visits with physicians and their offices were severely limited reality. Nevertheless continue to make progress in terms of sales number of prescriptions a number of prescribers.

During this past quarter, we announced interim results from two clinical trials underway with reality to broaden its indications are never going to turn the call over to Steve you're going to more detail on our business units Steve.

Thank you Phil and good afternoon, everyone and thank you for joining US today I hope everyone is staying healthy can save true these unprecedented times.

Phil mentioned, while we experienced both headwinds and tailwinds relating to coping 19. During this quarter, we're very pleased with the company's progress in all of our business units.

As discussed on our last call.

Our global Phase three trial evaluating so microgram dose once weekly in pre people little children with growth hormone deficiency successfully met its primary endpoint Noninferiority computer Tropin objected dealing with respect to high velocity after 12 months.

Two abstracts at the dataset were accepted for oral presentation at the Endocrine Society 2020 meeting in San Francisco in March which was subsequently canceled due to the koby 19 outbreak have rescheduled as a virtual event for June we're now scheduled for an oral presentation on June eight present data from both abstracts.

One pertaining to the results of our pivotal phase three study.

And the other two influence like growth factor or IP at one level following administration somewhat program.

In addition, both abstracts will be published online in the April may supplemental issue of the journal a benefit society, which we expect will be available in a week or so.

Our commercial partner Pfizer is on track to submit the biologics license application to the FDA and the second half of 2020.

In Europe, we expect Pfizer to submit a marketing authorization application upon completion of the open label study demonstrating benefit and compliance with reduced treatment burden.

Would you still expect to complete in the third quarter of 2020.

The main study in Japan for pediatric growth hormone deficiency patients was completed in early March 2020, and final topline data are expected in mid 2020.

Turning now to our commercial pharmaceutical business I would like to focus on rally.

Our commercial performance perspective reality numbers for the quarter breakdown as follows.

Total prescriptions reality in Q1 2020 as reported by our Q U.

Increased 79% compared with Q1 2019 and showed continued sequential growth with a 2% increase compared with Q4 up 29 team.

Sales in the second half of March 2020 were negatively impacted by Copel 19, as patient visits to Dr. offices.

Hi, significantly and our sales representatives were unable to detail it positions in their offices.

New patient starts decrease by less than 1% in Q1 versus Q4 and since launch over 18000 patients have had reality prescribed by almost 3000 positions approximately 280 positions are over 9% of the total number of prescribers, where new reality prescribers in Q1.

Our partner before percentages continues to anticipate European approvals reality at first commercial launch later this year.

We're making excellent progress with our ongoing clinical trials for Rayaldee to expand its indications and ended the first quarter. We reported interim results from an ongoing phase four clinical trial, comparing reality with three comment treatment regimens for secondary hyperparathyroidism in adult patients with stage three or four CKD.

And vitamin D insufficiency.

The interim results indicate that a daily dose.

60 micrograms of reality is the only one of the for treatment regimens tested that reliably raises serum total 25 hydroxyvitamin due to the range of 500 to 100.

Nanograms per mill, a level required to effectively suppressed elevated plaza intact parathyroid hormone in CKD patients.

The 80% of subjects have completed treatment and there are sufficient data now available to make conclusions about the treatments pain study.

In view of the immense logistical difficulties and safety concerns posed by the ongoing pandemic Ofwat has decided to end the study early.

I will result in the trial are expected in the second half of 2020.

We also recently reported interim results from an ongoing phase two clinical trial exploring the safety and efficacy of a high strength formulation that reality as a new treatment for secondary hyperparathyroidism in adult patients with stage five CKD requires regular hemo dialysis and vitamin D insufficiency.

Interim results indicate the reality is well tolerated.

That's really metabolized who is active form despite the lack of kidney function.

And is capable of treating secondary hyperparathyroidism.

Enrollment is being delayed by the ongoing pandemic and full enrollment is now expecting to second half of 2020 with final topline data expecting the first quarter 2021.

Aqua has decided to continue this study to completion if it all possible has the subjects must come into the clinic for regular hemo dialysis anyway, and therefore face minimal additional risk to their safety. If you had a pandemic.

We are we were playing started phase three study with reality in pediatric patients in the third quarter of 2021.

Part of a post marketing requirement, but we have decided to postpone study initiation until after the ongoing pandemic subsides in order to protect these patients from unnecessary exposure. We have requested an extension of time to complete the study from the FDA.

Now before John discussed by reference labs in our coping 19 testing services I wanted to quickly mention fourkscore.

Medicare coverage for poor case, where resumed on January one and this year as or as a result for the new local coverage determination by Nova to us with Medicare reimbursement in place we began our salesforce expansion and nearly 16000 poor case core tests were performed during the first quarter of 2020.

However, following the cobot 19 outbreak in March it was a significant drop off in orders, which has continued into the second quarter.

However, we expect to return to growth at stay at home or does begin to be lifted and patients resumed visits to physician offices. We will also resume our plan to increase our salesforce and seek additional commercial payers for the test with that let me turn the call over to Jon Cohen for discussion of our by reference lab business John.

Thanks, Steve and good afternoon, everyone.

Before I discuss covert 19 testing at its impact I buy a reference let me begin with some observations of our performance in the first two months of the year before the pandemic occurred.

I'm pleased to say, we started to see the positive impact of the organizational changes we put in place to grow our specialty lab business, including oncology Urology Women's health Enginetics, coupled with our business development efforts to secure a new strategic partnerships, we expect to announce some new and exciting hospital a large metal.

Partnerships within the next several months.

At GDX whole exome volume had 14% growth in Q1 of 2020 versus Q1 of 29 team.

Neuromuscular neuro development had a 9.5% growth Q1 of 2020 versus Q1 of 2019.

Growth in both of these sectors is related to a more focused commercial strategy and our increase in Salesforce. We have put in place in Q4 last year.

Prior to the covert pandemic, we were trending towards a double digit volume growth at GDX in March.

With the onset of the covert 19 pandemic and government initiatives put in place to reduce the spread of the virus with social distancing.

Stay at home orders everything has changed.

Starting in late February we were a constant contact with the CDC FCTA at the White House Task force at various state departments have helped to quickly and effectively respond to the pandemic and played a leading role and testing of covert 19.

We've made the decision to immediately bring up the CDC assay and additionally, validates several other real time PCR testing platforms to perform covert 19 molecular testing.

The cost by a reference is a highly complex laboratory with deep experience in viral testing. Several of these platforms were already existed at a lab and we have a deep bench of technicians experience in this type of assay validation and performing the testing.

This allowed us to quickly increase our capacity what about the pending a one vendor for reagents and supplies.

In addition, we've made the strategic decision to immediately prioritizing coming samples to hospital patients first responders and healthcare workers at other patients.

We worked hard to keep our turnaround time to a minimal.

As a result multiple types of clients move significant volume tuberous early on.

In addition to our Nash and nationwide offering we developed a specific expertise and providing testing to over 30 drive through sites around the country.

In addition, we entered in partnerships with numerous states cities and healthcare systems, including New York State New York City. The state of the Jersey State of Florida and other cities.

Last week, we announced our partnership with Rite aid and the U.S. Department Health and human services to provide testing services provide a self swap testing sites at 25 store locations with a plant to grow this number over the next several weeks.

To date, we have performed approximately 700000 covert test we now have a current capacity of approximately 35 test per day, we continued to see a substantial need for PCR testing from our existing clients and new clients for the foreseeable future.

The next phase of the diagnostic journey for the pandemic will be antibody serology testing in addition to ongoing PCR testing.

Last week, we started to offer covert 19 antibody blood testing on the nation wide basis.

Yes.

Accurate involves a venus draw by a trained healthcare professional not point of care or Fingerstick and that to blood is it sent to our lab for testing.

We believe that accurate antibody test thing is the next diagnostic step is providing valuable information about the direction of the disease.

Data around potential immunity emerging every day our goals are to score epidemiological studies of covert 19 to assist in understanding how antibodies correlate with immunity to identify at risk populations. So identify plasmid donors.

To help provide information to sport employers and employees around the workforce decision business decisions.

Well at Midnight, we expect our antibody test capacity to reach 400000 test per day, our existing clients before the pandemic and new clients. We developed as a result of the pandemic have already started sending us antibodies specimens.

In addition, we announced our first government partnerships with New York State in New York City to provide covert 19 antibody testing to state city employees, a large segments of the population.

We've also seen significant large employers and health system interest in utilizing our capabilities for both antibody and PCR testing as they develop their return to work strategies and they reopen the hospitals for elective procedures.

As you can see we're committed to supporting the nation's covert 19 effort in any way possible I will remain committed for the duration.

I want to reiterate what Phil said during his opening comments our team, including our frontline workers worked tirelessly 24 hours a day in seven days a week to bring up these platforms and then deliver 700000 test results for highly complex test we have not performed eight weeks earlier.

Our performance during this criteria crisis and are mostly very positive news coverage result in us being recognized as one of the few truly national commercial laboratories.

Over the long term this recognition it performs at vaulted us into the national limelight as a provider of excellent diagnostic services.

I'm very optimistic that this has positioned us to grow our segments of our business in the future.

I am encouraged that our strategy to grow our specialty segments to focus on cost containment measures to advance our business development efforts started produce top and bottom line results.

As a result, I believe we will emerge from this trend as well position for growth and success and now let me turn it over to Adam.

Thank you John despite a challenging environment, our financial performance in the first quarter of 2020 was largely in line with our expectation.

As John mentioned in his prepared remarks.

We are well positioned to meeting Leif will support the reopening of America through our PCR Anthropologie testing.

Despite our demonstrated capabilities. It remains unknown on how much of this testing will be performed and at what rate. These tests will be reimbursed.

In addition, there continues to be an uncertainty around when stay at home orders will ease around the country and when medical procedures in routine medical testing will resume thereby allowing our base business to begin returning to historical volume levels.

Furthermore, alright, aldi and for case score commercial teams have transitioned to virtual sales calls, although they are doing a good job working remotely our sales teams have less impact on current utilization considering doctors are not actively seeing patients and it reserve result.

The number of new prescription and the number of tests being ordered have been impact.

Given the significant uncertainty regarding the duration answer severity of the pandemic on a global basis. We are withdrawing 2020 financial guidance, we provided in February.

We will be as transparent as possible with our periodic update until we can reasonably forecast during these uncertain times.

Now moving to our first quarter financial performance I will start with our diagnostics.

We reported revenue from services of $170.8 million compared to $178.9 million for the 2019 period.

This decrease in net revenue while in line with our previously issued financial guidance was impacted by Cobot 19, and stay at home orders were issue, resulting in a significant decline in a routine and genetic testing businesses.

Getting an early March in the last two weeks of March 2020, our diagnostic segment experienced the decline to testing volumes, resulting in approximately a decline of 60% compared to the 2019.

Not including the offset from Covidien 19 testing services, when including Cobot 19 overall volume.

In Q1 declined approximately 6.6% compared to the first quarter of 2019.

Those declines continued into the second quarter. However, we have seen several weeks of steady increases from their lows and the early days of May we have seen a year over year increase overall testing volumes inclusive of cobot 19.

Despite the decrease in revenue.

Cost control measures put in place over the last 18 months continue to result in improved operating metrics within the diagnostic operating.

Segment.

Operating expense.

Decreased $23.5 million from the 2019 period.

The 2019 period included a onetime legal expense of $10.6 million.

Operating loss for the diagnostic segment decreased from $33.6 million for the first quarter 2019.

To $18.1 million or the first quarter of 2028.

Team point 4 million dollar improvement.

Moving to our pharmaceutical segment, we reported revenues of $40.6 million for the first quarter 2020 compared to $43.6 million for the 2019 period.

Revenue for product sales.

For the first quarter 2020 increased to $31.1 million, including $9.9 million related to rally compared to $25.3 million for overall product sales for the first quarter 2019, which included $5.8 million of revenue from my Alvin.

As Steve mentioned Rayaldee continued to perform well, let's thing a 78% growth prescriptions.

When looking at revenue from the transfer of intellectual property, we reported $9.6 million of revenue for the 2020 period compared to $18.3 million a year ago.

Electing the completion of our so much rogan phase three clinical trial as a reminder, we had been amortizing our upfront payment from Pfizer over the development period of so much for them.

Loss from operations from our pharmaceutical segment decreased by $15.4 million to $14.1 billion for the 2020 period compared to an operating loss of 29.5 million sort of 2019 period. The decrease in operating loss principally reflects a decrease in cost.

It's or so much Rogan development program.

Overall research and development expense for the first quarter of 2020 was $18.6 million compared to 33 point that $33 million for the prior year period.

On a consolidated basis, we saw the first quarter of 2020 show with 34.6 million decrease in or operating loss to $40.8 million and net revenues of $211.5 million compared to an operating loss of $75.3 million and 220.

$2.5 million revenues for the 2000.

Our net loss for the first quarter was $59.1 million or nine cents per share compared to a loss of $80.8 million or 14 cents per share for the 2019 Terry.

Our first quarter net loss in 2020 include other expense of $12 million related to the mark to market activity or some of our strategic investments.

Our cash balance as of March 31st was $34.5 million. In addition, we have the 100 billion dollar line of credit with Dr Frost, which remains under utilized.

After the quarter end, we were able to participate in certain program or the carriers that including advanced Medicare claims payroll tax deferrals as well as the grant received on the cares back to $6 million in total the cares Act provided us with nearly $30 million of near term liquidity to support our office.

Patients.

With that I'll open the call for questions Chris.

And again to ask a question I start any number one.

And your first question comes from our E rate crop with Jefferies.

Everyone. Thanks for taking my questions. The first question is just on the cobot antibody test I just wanted to clarify for that test you have to apply for and get FDA approval on similar to some of the other antibody test.

Hi.

Hi, It's Jon Cohen of our we're going to run re platforms are predominantly two platforms. Both already have you at approval two of the three heavyweight approval, the others or the other the LPG approved by the by two states, but we're moving really to the two that have you ever approval within the next couple days.

Got it Okay and then for this ties can you provide any specifics on costs and quantities related to sizable orders or or contracts that you have with some of the different partnerships in place.

I have ever you oh, either what you're going into.

You can take it down.

Right.

So I won't get into the.

The cost of testing are we ready now our we did our press announcements relative to our government relationship with New York State, where will you be testing.

A significant numbers of.

The most state residents and state employees we.

We are about we will announce within the next several days other government contracts as they they come up we've had significant interest.

From multiple states for antibiotic testing and we've had.

Oh boy that significant interest from numerous numerous midsize and large employers for both PCR and antibody testing.

Got it okay.

And then for the the growth hormone program.

I'm just wondering if the filing by Pfizer, if that's more likely going to be at Threeq. You are Fourq you event and then for the Endo presentation I'm is that going to be Pfizer or K was given that you presentations and can you provide any more perspective into pfizer's play.

Instead switch from CICC Genotropin do weekly.

Oh. Thanks for this is because the steam room until we are expecting submissions and by year end Q3.

The presentation of at Endo is going to be one of our principal investigators.

Oh, sorry deals on the shared the beneficiary deal that we actually I think but the name in the press release. So that's that's where we'll be providing the endo presentation.

And as having five is planned to switch I don't think that has had its change I mean, obviously they are.

Especially if theres a competitor in the market until the highly motivated to switch to.

Long acting product.

As soon as possible and also grab additional market share keep in mind, there's seven daddy's on the market.

Now so it won't really be cannibalizing their own.

Well actually be growing north.

Got it Okay, and then I just had two quick questions on reality first I'm wondering if you're going to report a more details on the two data updates that you had recently could that committed at a medical meeting when could that happen.

Hi, Marty this is Charlie Bishop if as long as the American Society of Nephrology meeting stays.

On track our intention is to present the data from both through the studies that we gave interim results for at that meeting.

Got it Okay, and then second Parral the in the one day to said the CKD by patients you reported a that your threeq goals were Matt Breese showed high dose reality was well tolerated you saw the elevated.

Serum level of active metabolite and then the greater than 30% decrease in I.P.T.H. from baseline just wondering if you could add more context or on the update and is what you're seeing equate to some level of our normal kidney function or I guess, how do you can actually.

So our assumption is that by the time patients get to the requirement of regular hemo dialysis and most if not all of the kidney function is gone.

And we're taught by the medical textbooks that the activation of the 25 in trying to see vitamin D. Three would you see active ingredient in reality.

Requires.

The kidney to be functional.

And what we're seeing in this study is a unprecedented.

When you give an adequate amount of reality you do see production of the active hormone come back to normal and our interpretation of that although we have to prove it is say we're engaging for the first time the extra renal hydroxyl Lynch. So the.

Enzyme in the kidney that would convert the active ingredient in reality to the active form and it's not as shipped 27 to be one net enzyme has been mapped and the human body. It's in the parathyroid Glenn just since candidates and others issues and we believe that our therapy is enabling pace.

And to have their share of total 25 de levels.

Elevated safely into high enough levels that for the first time, you can engage the extra rental hydroxylase.

Got it okay. Thank you very much for taking my questions Opex. Thank you.

Thank you.

Okay and your next question comes from Yelchin <unk> company.

Oh, thanks for taking the questions the.

And the congrats on the.

Our up into the.

Give out on that.

Couple quick questions. The first one is that.

What's the car written.

Numbers all tested in.

Well the PCR debt at the pulled it be done that test Oh, yes, other reason day.

Sure Okay.

Hi, how are you.

Yeah, we're a word approximately 700000.

So that it gives me the one right if there are day, but that will be.

No. It's we're actually little number since we started testing on March 13 is a little is about 700000, we're doing approximately 25.

Was it a day will be up too.

Cassidy for 35000, a day within the next several days and we will push to 40000, a day within the next week to week in half.

Okay.

And did that will be the full capacity or you think there's an additional room to grow up to 40 today.

There.

There will be additional capacity to grow.

But right now we're going to hold at 40000 at least for some brief period of time.

Before we make subsequent decision to go further.

And it intends socket Pcr.

In terms of antibody.

Maybe just clarify formula you can.

Are you using one up that fall a platform that was getting up to have today.

Approved or how should we see that.

No. So we're we're running to.

Two major platforms are running is is Roche and die assortment, we also running another platform.

In the interim as those are continually being brought up so both of those have emergency use authorization from the ft.

Hey, a you know not to go ahead of the Roche platform. Just you know as you may have seen is close to 100% accuracy for RG <unk>.

Right.

And then maybe last question here is that maybe let you answer which is.

What kind of that's sort of a commercial opportunity with the.

<unk> liking test Oh, no combined the antibody as opposed to PCR.

Just assuming that going forward, there will be quite a while that that these to.

E.

I'd in demand is there anyway ways you guys. It at least tried to model that [noise].

Yeah, it's a difficult it so it's a difficult thing to model, yet, but I think.

As we sit back you know the PCR testing as John mentioned, we've got no current capacity of 35000 tests per day.

You know we've performed 700000, we gave an update in early April that we when we had passed the 200000 Mark.

So if you wanted to kind of get a a run rate you can do the math to see what our daily averages looks like and it is testing that's being done seven days a week.

You know as we look forward. We you know we are continuing to expand our capacity as John mentioned, because we see that the demand for PCR testing continue whats unknown to us is how long that demand will stay.

We also when we look at the antibody testing, we do think.

That is going to be a meaningful way to get the country back open again, and we continued to expand our capacity as John laid out to bring our our capacity to do 400000 patient samples, which which as you know you know as a significant increase historically about effort.

You know process, just just less than 40000 samples a day.

On its normal business so as as.

Well be antibody and PCR testing.

Come through.

The potential upside is dramatic in comparison to what references historical businesses. It's just we don't know that what the demand is going to look like in the duration of the demand further to that this rally testing.

Still hasn't hasn't gotten a reimbursement amount yet so there's a lot of variables.

For us to consider as we look to forecast ourselves.

And maybe.

Last question here or just addition question here really is that do you intend to pay all projected lease will be for the full year.

Many twangy if not even more.

Yeah.

I could only I'll tell you.

That the.

The interest level.

There are multiple different segments with a lot of deferred interest I would say that you asked specifically about those PCR answer allergy I will tell you that a large number of employers.

Both large medium or looking for both as they try and develop their strategies to reopen their businesses. So having substantial discussions with large over employers around that issue.

Second is is that hospitals and health systems.

Continues to have a fairly significant appetite for both the Oh PCR and the antibody testing for their healthcare workers. In addition to as they open up for elective procedures elective surgery outpatient procedures et cetera, they're looking to do increased numbers of.

PCR in addition to sequential antibody testing.

Okay, great. Thanks, appreciate and good luck on that.

Yeah.

And your next question comes from pets enough pipeline.

Good question is holding up very reality data, how will that be incorporated and read on how can that actually becoming really created.

Two.

[laughter] doctors.

You know as a company records indicator there or.

Would it ultimately have to wait for label expansion, how should we be thinking about that thank you.

Yes. This is Charlie Bishop again, that's a great question, what we have found in the market for which we already have 58 approval is that patients with stage three chronic kidney disease, which is an earlier stage disease shows a shame.

Response to the drug as patients who have a later stage of kidney disease, which is stage for CKD.

And what's fascinating about that is that reality.

According to mainstream format has to be activated in the kidney and yet it shows in our current market that it works just as well in early stage CKD hasn't later stage CKD, which suggest very strongly that the kidney is really not important in active.

Dating industry right now.

Now when we go to stage five and we see where the kidney is altogether in most cases, it's not functional that rail they can be activated and that we can lower P.T.H. that adds to the story that likely reality doesn't need the kidney to be activated which is very important because.

The lead drugs to treat secondary hyperparathyroidism, all do not require the kidney.

And now around me with the data that regenerating looks like it doesn't need the kidney either the advantage of reality or is the leading therapies is it doesn't have the safety concerns.

So.

To answer your question. We are currently thinking about the indication for Sage five is just being an extension ever current indication. We are indication right now reach that we are approved to treat secondary hyperparathyroidism in adult patients with stage three or stage for chronic kidney disease.

And vitamin D insufficiency.

And the label that we would intend should pursue.

Presuming that our development program for stay transmission stays on track would be simply to add stage five.

To that indication.

But our data allow us to use.

Tell physicians about this.

Possibility of being.

Activated without a strong kidney.

We can tell the story now.

Great that's very helpful. Charlie Thanks, everybody.

[noise] [noise] and there are no further questions at this time.

[noise] I want to thank everybody for participating and we look forward to speaking with you again next quarter.

Right now.

Ladies and gentlemen, this concludes today's conference call. Thank you for participating you may now disconnect.

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