Q1 2020 Knight Therapeutics Inc Earnings Call
[music].
Welcome to night Therapeutics, Inc., 2021st quarter results Conference call.
Before turning the call over to Jonathan Ross Goodman, CEO of night listeners I reminded that portions of today's discussion.
Made by their nature necessarily involve risks and uncertainties that could cause actual results to differ materially from those humping contemplated by the forward looking statements. The company considers the assumptions on which these forward looking statements are based to be reasonable at the time they were prepared.
But caution.
That these assumptions regarding the future events.
Many of which are beyond the control of the company and its subsidiaries may ultimately prove to be incorrect. The company disclaims any intention or obligation to update or revise any forward looking statements whether as a result of new information future events, except as required by law.
We would also like to remind you questions. During today's call will be taken from analysts only should there be any further questions. Please contact nights Investor Relations Department via email at info at GE, you de Kate and I T Dot com.
Mail to.
Colin info at Judy can I T dotcom or via phone at five one for 6788 930, I would like to remind everyone that this call is being recorded today June 26, 2020, I would now like to turn the meeting over to your hosts today, Jonathan Ross good.
Please go ahead Mr. Goodman.
But you're my follow good morning, everyone and welcome to like Therapeutics first quarter 2020 conference call I'm joined today on todays call, let's first talk yeah.
Our and this is this is new this late breaking news or Chief operating officer.
It's very hard and only about 20 years overdue.
And <unk>, our VP of business development, and urban who turned up our CFO.
We're pleased to report or nights continued progress and its mission to become a rest of the world specialty pharmaceutical company. We can to meet the remain focused on completing the acquisition or be a close caramel and advancing our product portfolio in Latin America, I'm kinda well at the same time, continuing our business development efforts 40 Pan American ex fuel assays.
What kind of.
Yesterday, we had or annual shareholders meeting and I would like to walk him gotten us Murray and Nicolas two jobs.
Oh too in the new independent Board members, who bring with them valuable Latin American experience, but also like to think or exiting board members Toby tumbler, Nazi Harrison and Kevin come on board there multiple contributions I'll now turn over the call customer who will walk through the development of our portfolio on corporate optics.
Thank you Jonathan and good morning, everyone. We're pleased to report that night continuation Advantest Pan American ex us product portfolio on January 2020 night announced that it has entered into an exclusive agreement to come to commercialize stricter Ellen or trial Star in Canada troughs are an l.
HR each agonists is currently approved and sold in Canada subsequent to the quarter like took over commercial activities for trial start.
According to my caveat helped our sales were 2.7 million in 2019, we're excited to be launching this product to several members of the night team are involved in bringing transtar and growing it in Canada. When we were at palace.
In April 2020 night obtained health, Canada approval for its trailer or Tonight, but nor for the treatment of irritable bowel syndrome with constipation. According try to yeah. The total market for life. So that's been Canada, including Oh, Oh, Tc and prescription was $161 million in 2019 in addition.
According to take you yourselves a prescription prescription product sales reached 22.9 million in 2019 and grew at a three year CAGR of 13%.
Can Stella teams continued to be the lead product with sales of $17.1 million in 2019.
We expect to be launching swehla in early 2021.
We're also pleased on our market access progress with the public reimbursement of Probuphine in Ontario. This important products with a fight against opioid addiction is now covered in Ontario, Quebec, New Brunswick, New found one Nova Scotia, Manitoba, Alberta, Saskatchewan, and the and HIV in Veterans Affairs, Canada.
Finally, this quarter, we launch through GBT CRE sound bite in Brazil, CRE somebody is an idle antifungal agent indicated for use in adults for the treatment of invasive aspergillosis, I mean basis nickel mycosis and it's a license husband licensed from Baselayer Pharmaceutical limited GBT holds the rights to commercialize applauded.
In Latin America, and isn't early launch in Argentina, Colombia, Mexico, Chile and Peru.
Now I'll turn it over to corporate updates as a reminder, nightmares in normal course issuer bid on July 11th 2019 underway Schneider with authorized to purchase for cancellation just over 12 million of its common shares.
As of today than I had completed its on T.I.B. and purchase a cumulative total of 12 million 53609 to common shares at an average price of $7 in 14 cents per share.
Lastly in November 2019, Knighton medicine hat and to have entered into into the definitive agreement pursuant to which night agreed to sell to medicine. The group to the Medicine group all those night shares and medicine in consideration for $77 million payable in cash.
We agreed to release each other from all claims and withdraw all legal proceedings initiated by both parties. In addition, medicine, which together with its affiliates owns approximately or own approximately 10.4 million shares.
Light agreed to a four year central commitment and we'll divest their position in Nigeria in this period.
During the quarter medicine paid the full amount of the settlement and night received 75% or $57.8 million of the consideration and the remaining 25% or $19.3 million is being held by a trustee and is expected to be released a night upon the issuance of attack certificate by.
Israeli tax authority, which is expected later this year.
I'm not going I turn the call over time I'm all for an update on BD activities.
Thank you Samirah as a reminder, the acquisition of GBP was part of our rest of World tried to GE is becoming a one stop shop for a second tier markets.
Today Night is the company best position to provide this one stop shop for the entire lifetime region.
Group will be at this kind of has provided night with an immediate presence in our high priority markets, including its Paul it footprint across seven countries and a diversified portfolio, including a number of and license specialty pharmaceutical product.
Both of our companies focus on in licensing late stage innovative products as well. This is published product. We both promote branded pharmaceutical products to physicians and we both pursue growth while maintaining a rigid focus on financial discipline.
As we previously announced the acquisition of 100% of GB keys by way of a two step transaction.
The first step was the acquisition of 51.2% majority stake through a private transaction, which closed on November 29. So it was last year, giving night controlling interest.
In December of last year, we started the process for the second stuff, which is the mandatory tender offer for the minority shareholders or the BTR holders. This process has already concluded Brazilian exchange approval and is under Brazilians Securities Commission, We view, we expect to complete the second staff in Q.
Three of this year.
Over the last several months our team teams have been working together to not only integrate the businesses.
Also we've been busy on business development efforts to acquiring unlike innovative products for the Pan American ex us markets.
Our objective remains to acquire under promoted or legacy assets from big pharma unlicensed innovative products and to pursue bolt on corporate acquisitions in the region.
I will now turn the call over to ours and to go over the financial results for the quarter.
Thank you animal.
Because of just come from school I will refer to nights adjusted earnings which is in non afterwards measure.
I defined adjusted earnings as a bridging loss or income adjusted to exclude amortization and you pretty much everything to us its depreciation acquisition close nonrecurring expense incurred but includes net interest income earned and costs related to leases.
Sure Yeah understood earnings did not reflect a portion of diabetes adjusted earning a true attributable to reduced non controlling interest.
I am pleased to report that put a quota ended more tricky foods Twentytwenty, we reported revenues of $45.8 million, an increase of $42.8 million or 1451% compared to the same period not yet.
The group rather use is explained by the consolidations of GBP its financial results, which accounted for 40, so when for 42.7 million those incremental revenues.
GBT generated 14 million, those Brazil and $45 million in Argentina.
With $1 million in Colombia, and $9.1 billion that Russia Latin America.
Historically diabetes first quarter revenues only get it will be impacted by seasonality due to reduced economic activity, resulting from the year and summer holidays as well as going you both events.
<unk>.
Reap the exclusion of hyperinflation impact on the I guess 29, the revenues reported by GBP that goes quota of 2019 represented 20% obese annual consolidated revenues and Eutwenty, 7% decline compared to the full quota of 20.
Comparatively attribute to revenues in the first quarter of Twentytwenty represented 28% decline compared to the full quarter since you thinking.
We also reported gross margin of 19.9 million those and the gross margin percentage of sales or 43%.
Good 2.2 point 3 million Boes also with each of them with the same period got shoe.
The change in the gross margin those and as a percentage of sales was mainly attributable to the consolidation of diabetes financial results.
Furthermore, GBT recorded an inventory provision oh people improvement as those of which 800 insulin <unk> $4000 relates to so did bench, we destroyed because obesity richer exclusions returns quotation.
And abolish is due to delayed into the new product launches and Korean Nike.
Furthermore of to excluding the Bayko hyperinflation accounting in accordance with is 29.
And the purchase price allocation I, just met Oak six <unk> 2000, Boes the gross margin percentage of sales would have been 46%.
I would also like to point out that earlier today, we have posted it presents they shouldn't explaining the basic.
I don't think hyperinflation, but the nice web site under the investors relation the present patients section.
I was selling and marketing, Jamie and already or do you put a quote the increased by 16.1 building those over the first quarter Oakland Geninety.
The environments is explained by the consolidation of GBTA financial results, which accounted for 16.8 billion those incremental expenses.
This was offset by a decline in Q1, Twentytwenty persist two onetwenty 19, ignite on selling marketing and Jamie and or meet decreased mainly due to nonrecurring expenses into first quarter of 29 to really took to me as jacobson triple digit activist campaign.
I would like to know that might expect we go significant additional expenses in the second half of Twentytwenty related to closing the GBP mandatory tender.
No moving onto amortization and the amount of intangible assets.
The quarter I'm, well aware on what those you shouldn't be tangible asset is at 6 million those an increase of $5.6 million versus the prior period.
The increase is related to be on what the addition of indefinite life intangible asset or you can distribute your transaction.
Moving to interest on our cash marketable securities and strategic loans were reported interest income of 4.61 of those.
Decrease of $1.2 million or 21% compared to the same period in the prior year due to a decrease in the average cash and marketable securities balances.
Actually offset by a bridge loan balance.
In addition, we recorded interest expense for the quota of 3.2 million Boes interest expense on JBT is loan.
1.1 million those as well as interest accretion of through more than those on the led me to relate to it could be mandatory tender.
<unk> adjusted earnings were 6.4 million, those 39% or $1.8 million compared to the same period last year.
The consolidation of GBT its financial results accounted for 3.4 million goes and decrease.
<unk> expenses any decrease inmates interest income.
The nonrecurring adjustments made to the open Cmos for Q1, Twentytwenty represent a total of 1.7 million Boes.
It includes 252000 those on restructuring activities.
Hundred 50000 gold is really good too deep bench, we destroyed you treat temperature its cushing as well as 652000, those really good twin old trade receivables existing prior to the nice acquisition of the controlling stake contributing.
Now moving onto gains and losses that though not reflected in adjusted earnings.
The quota we recorded a net loss on potential assets measured at fair value to profit or loss of $6.7 million, mainly due to unrealized losses on revaluation of the strategic from an equity investment.
[noise] nice recorded total loss of 5.2 million on the strategic investments in the statement of income.
However, the loss of 5.2 million is offset by the foreign exchange gains open conversion to Canadian dollars, Oh 7.7 million Boes.
The merger would give this gain was recorded in the state of other comprehensive income.
In addition, we recorded in Medicaid on the mandatory tender offer.
For MTO liability of 1.5 million those two to unrealized gain on the foreign exchange revaluation of the Brazilian rise denominated liabilities.
Upset by an unrealized loss on board and non Deferrable code contracts.
Furthermore, we recorded it realized gain of $2.9 billion on that I said.
Of course sales due to just the disposal of wishes of medicine any realized gain of $2.9 million an hour and she has the entebbe's automatic share purchase but.
We also recorded it for injection loss of $4.9 million.
Through the depreciation on the left I'm currency at the end of the quota partially offset by naturally to gain on so 10, U.S. denominated net assets.
I will now turn the call back to summer.
Thank you our event.
The recent outbreak of the current over the so called it 19, which has been which has been declared by the world Health organization to be a pandemic has spread across the globe and is impacting worldwide economic activity.
Public health pandemic, including Kroger 19 poses the risk at the company its employees contractors suppliers and other partners may be prevented from conducting business activities for an indefinite period of time, including due to shut downs that maybe requested or mandated by governmental authorities.
Certain countries, where knight has significant operations have required entities to limit or suspend business operations and have and have implement to travel restrictions and quarantine measures.
As a pharmaceutical company at night is working to alleviate some of the pressures of the global Kogan 19 pandemic has placed on our health care systems, and then to ensure that we maintain supply of our medicines to our patients.
All of their employees, our transition to working remotely, including our field sales and medical teams.
And Argentina, where we manufacture a branded generic products, we have implemented cautionary measures to ensure safety and continuity of supply.
Hey state steps are being taken to minimize personal interaction as much as possible and to stem the disease and flattening curve.
In the field of pharmaceutical marketing increase social contacts such as interaction between sales representative and medical science liaisons with health care providers has the potential to counteract these important public health initiative and to put our employees patients and health care professionals that risk.
Light and GBT teams have established digital and virtual chiles to ensure that physicians and patients continue to receive continued support.
In addition in several of our markets, where take making contributions of supplies or products that can help patients.
And health care professionals deal with the crisis.
For example in Canada, we have launched a probuphine access program to allow patients who do not have public coverage to receive probuphine at no cost.
We remain committed to ensuring the safety of our employees and the and interrupted supply of our medicines, where active complete working with our partners to minimize business interruption and to ensure uninterrupted products supply.
As of the date hereof. The outbreak has not had a material impact on the company's results I'll now turn the call backs Jonathan for his concluding remarks.
Thank you Samirah.
Tim remains focused on developing in licensing and acquiring innovator pharmaceuticals for the Pan American actually lets say market.
Thank you for your continued to support and confidence in the night team. This concludes my formal remarks sort of now lot not unless you open up default to claim.
Operator, thank you.
Before beginning my please your mind you questions. During today's call will be taken from analysts only should there be any further questions. Please contact nice investor Relations Department via email.
Two info at G. D night Dot Com mail to info at do you de night Dot com or via phone at five four.
Five one for 6788 930, if you'd like to ask a question see suppressed star followed by the number one on your telephone.
If you are using a speaker phone please lift your handset before pressing any key.
Your first question comes from a line of David Novak from Raymond James You May begin.
Good morning folks thanks, very much for taking my questions and I had fantastic you hear all your voice is again, a really nice quarter here, which is actually spot on with our estimate so take a few questions for me. This morning to kick it off notwithstanding the impact is covered 19, you guys are leading to some seasonality in Latam as a result.
Of holidays in advance.
If possible I just wanted to channel check my rest of your assumptions that you guys currently actually about 21% of revenues hitting in Q1 27 in Q2 25 in Q3 in about 28% in Q4 without getting into specific revenue numbers proportionately speaking MLP mine the right ballpark here.
And I suppose on the same train of thought Cobiz, obviously, continuing to disproportionately hit various lat am countries like Brazil, and Argentina, So how should I be thinking about that impact as it relates to GBT in Q2.
Hi, David its merits and it's a fantastic the hearing devices, while the honestly the issue that I haven't commenting on your numbers is the impacts of cope. It we are obvious one other things as utilities in launch phase on a lot of products.
As I said earlier in call, we're launching because somebody in Brazil. This is a launch is going a little bit slower than we expected.
And so we do we do look we do expect the right balance of the year to include but we don't know how it's going to phase I and we are working very closely and the team is working very hard to continue to commercialize through digital means having advisory a virtual advisory.
Boards communications or through other channels.
When it comes to how is co that impacting these markets a lot of it is really around shutdown. So for example, Argentina is extremely shut down even lose went to people is very complex.
Where we where youre seeing the numbers it should be noted solidly in a lot of these countries the issue isn't.
The there is there's two car a two types of economies.
HM.
And there is a significant portion of the population that is let's say they want the underground economy than let's say the informal economy, where social dispensing and work from home is not feasible and that is where we're seeing the majority of that terrible.
There's.
GVT and Tonight, we really are operating more in the private market.
And less so with a public market there there will be an impact, but we don't expect that a significant impact that this year and apart private market, but I was the economy a job we will we would we expect to see it [noise].
Got it great. Thanks, so much and and just sort of building upon your comments on CRE somebody fab, it's something both you guys as well as GBP seem to be highlighting in your financials. This quarter and could you provide us a little bit of insight around this asset.
Is it I guess from a top level perspective is this expected to become a major revenue contributor going forward.
Where somebody is a really great product. It has it hasn't bader better safety and efficacy profile to existing products and [noise].
We do expect it to grow dramatically. We're excited about the launch I'm actually going to turn it over to along to provide more information.
Thank you Premier and good morning, David Yeah, I mean, we're highlighting a CRE somebody because it's a it's a key launch for JBT and for us.
And it's a product for that's that's indicated for invasive aspergillosis, an invasive speaker mycosis.
Both our you know serious infections that affect that affect Ah Ah patients who already have other a serious health conditions. So it's from an unmet needs perspective, it's a it's a really important product and that really kind of attitude weibo.
Her we're so we're excited about it fits very well within our portfolio, whether it's the anti infective portfolio or even the or the him on portfolio because some of the him on patients are more susceptible to these types of infections. So it is a very important product or one of our key launches.
Got it excellent thanks, and Okay, I guess moving on to the a inventory loss experienced in the quarter due to temperature excursions injuring transportation is this a type of provision we should be expecting in the normal course of business in lat am or are there any improvements we might see night make it GBT that could tackle batching and.
Again on the same line are there any other areas of focus that you can speak to now having spent some time would GBT that team night would like to amend within the company.
Hi, so temperature excursions.
Our identity.
Cosign normal in the industry, it's not just the GBT factor.
We obviously all try to avoid the reason we're identifying those are the because there is potential for insurance claims and I don't want to house.
Take the benefit in the margin when they chose that one if there is a claim so kind of to highlight an unusual item.
When it comes to is there I mean other issues that we've seen that we want to see improvements on a one other things that we were saying when we acquired the company a lot of it is really around.
On the fact that JV T was a company that came together as four separate companies. So GVT itself, which was the Colombian company, United Medical which was the Brazilian and Alcan dose, which are there too.
Branded generic arm based companies never really came together are sort of note a lot of it is about systems processes and coordination of activities amongst each other and that's what the entire like myself I'm, all and off Oh, Arvind had been working on it with the team there over the last.
Seven months and it is that it's a long slog of that we have from maybe the next year in a bit as well because it's not just putting the night culture, It's really building a culture.
For our entire organization together.
Got it great and I guess, just last week, turning our sites back to Canada last week 50, MPR be published a second sort of draft guidelines and announced the rags had been delayed tier Jan 2021, I was wondering if you could comment on whether night might be submitting feedback on the current draft guidelines and further any comment.
On how you seem to be current dropped a impacting night or the industry as a whole going forward.
So I'm working with the Canadian teed off.
If they have that contain that you're talking to right now we've now got two levels within our organization. So that Canadian here has been really focused on the guidelines and I have a call with them. Later this afternoon about that the what I can tell you is first and flash lights.
You better well where.
Excited about is that you know there we have an extra six month of delay and hopefully were able to see going through this process that there are certain other changes potentially a further delay.
And we're going to we will see but it's it be.
It may not affect existing products as much.
There is still a sense early on that this could this will attract new product launches. So were worse lighting. The I know our team is still in the assessment period, I know that the industry Association of filling the assessment paired and I know that's Oh, there will be a lot of common submitted.
Got it great well excellent. Thank you very much guys keep up the great work and I'll hop back into queue.
Thank you.
Your next question comes from a line of just in key West Some stifle GMT. Your line is open.
Good morning, and thanks for taking my call just on the working capital in the quarter on the receivable balance. So are you comfortable with those levels is there any risk of collection there are bad debt expense.
I, just don't think I'm going to turn it over to Arvind to answer that question.
Hi, Thank you for your question too in terms of the whose question in terms of levels of the receivable and working capital. What you see is the normal course of working capital in normal course of receivables.
Typically my time, it takes a bit longer to collect receivables compared to kind of vessel. Typical collection is between 90 210 days and that's why you kind of cheetos level based on the on the field.
In terms of.
Of the bad debts, we did have both disclose that we did have about the moving into additional bad debts, we recorded in the quarter.
We've done in different offices and this is what we see so far as potential collection issues are going into the quarter and then into the next future quarters. At this point, there's no well still collecting in most of the countries within the collection period, and we don't see any significant legal collection issues I just want.
Thanks, just to clarify that's 1 million in bad debt expense.
One 1.1 moving.
Okay, alright, not much alright. Thank you and then I just have a broader question on diabetes portfolio.
I believe there's 40% or related to infectious disease or could you just expand on that a bit more on how that breaks down on a more granular basis as far as therapeutic areas.
Sure [laughter].
In the GBP focus is really infectious occasion oncology I'll go hematology and a little bit and rare CNS.
I'm not sure if we've provided t. a data but in.
India infectious diseases, we have her samba and we have ample shown as what are some HIV and HCV Park in oncology, we have the candidates and the HIV and HCV part of HIV products, especially we have both the gilliat portfolio as well as some of our own brand.
Branded generic products in Argentina, and oncology, we have the ace I portfolio, we have the celgene BMS portfolio as well as several of our own VGX products.
And in a rare channels, it's really around like called <unk> and you know belong and that's really and I am going out a lot to add some more is really where our focus of in licensing is as well because this is where we can build on the infrastructure that we huh.
So somewhere else so [laughter] sure I'm, sorry, I was amazed so the in terms of of BT focus the areas that we're looking at is really to ahead to two those to those key focus areas where in so.
Oncology he is him on because while infectious disease, I think you're asking I don't know if you're asking with the breakdown within that therapeutic area, but if you look at the portfolio within infectious diseases were not really no. We're not talking about your run them for the middle antibiotics right. So these are high specialty.
It's an infectious disease products. So they really split between the hospital based antifungal the Unbilled and CRE somebody and we also have a partnership with scale yet fourth there HIV in Hep C portfolio, So that's really where infectious diseases.
So whatever we look for in this area would be really complimentary a there plus the other two therapeutic areas that Ah. That's in there I mentioned for in terms of breaks down I think sales breakdown of GBP disclosed last year.
About 40% of of their of their revenue was worthy infectious disease portfolio, and but less than half for all came along and with the other specialty areas accounting for the right.
Okay. That's helpful color or they'll certainly seems diversified and then I just have a question on GB Tees up R&D and not a research programs I believe there's a around 50 in progress or equal to provide some additional color there like or any of these assets in the late stages as far as a trials or how.
Would you characterize the maturity of those assets.
Oh, Yeah, how long do you want to take that.
Sure. So I think what you need to I guess and think about when we're talking about GBP development assets.
We are talking about a branded generics portfolio. So it's not your typical clinical development pathway that you'd be used to whore for an innovative a product oh, so really talking about primarily formulation development.
So timelines are really much shorter so kind of you know if you look in the same lance out as we would look at and T. development I guess all of them what kind of count as late stage right. Because these are known molecules such as the question of development formulation and so the lifecycle is Ah.
It's quite toward a comparison and see kind of coal clinical development Buckley.
Okay. That's helpful. Thank you for taking my questions.
Thank you.
Your next question comes from a line of under I know from NBC. Your line is <unk>.
Good morning, Thanks for taking my questions I, if you for me I'll start with that Canada.
First so I I wonder if you have any updates on the health kind of this review some index the entire but youve on.
There'd be any delays or there are you seeing anything on that regulatory and.
I'm. Good morning, how are you [laughter] exactly and did you like continue through the review process.
We have had a lot of questions. The team is responding as fast as they can and unfortunately until you get to the finish line you don't really know what happens, so where where could be assessment is continuing we're in we're answering their questions.
Okay, great. Thank you and.
One more on the Canadian our product side for a narrower links or just kind of more.
Not specifically, but in terms of field, but like when do you would you expect it to contribute.
Two to two revenues basically.
So none of this is a card but were eating out our launch actually and what we're doing is.
Unfortunately, this is a launch similar to some of the activity that we're talking about and a lot of time is a launch injuring Coca chiller being more measured as to the launch our medical team has been conducting a lot of activity virtual AD boards education.
They are starting to see pick up but and our market access team is working very hard for public or private reimbursement and again, that's advancing but slowly given what's happening in cope it.
Expected to start becoming more meaningful but in a slower launch it'll still be a couple more years to contribute meaningful to the Canadian numbers.
Okay.
Great. Thank you for that and I just start turning onto lapping am.
Yeah, you much samirah Dod to us or I mean, perhaps the virus starts to impact and award the private or the pandemic rather private.
Joining me in in Latin America, and you know could be impacted a little bit of will offer and if you can kind of provide a bit more granular granularity there in terms of what you mean park more impact on field.
On growth or launching new products, which one of those here I do think would be more impacted and let them hey, so what we've seen historically is when they.
They they pandemic as.
Oh. He has essentially said that this is going to have a global economic and POC and as I can only get in park construction, we see some job losses happening in those job losses people will lose insurance, what we know is historically when we see not in large markets like Brazil. There is a very isn't there.
Client sales alone or the growth slows down and then it starts to pick back up as people as.
The economy, we engine what what we know is that it has happened and the private market is the is what recovers faster than the public markets and our operations are more so in that public and not private market and.
Maybe a couple of years out as there is a little bit of a depth and then we expect to come back.
Okay. Thank you thanks for the color.
And.
The two more questions actually on Lat am but I think over the last call. On Q4, you mentioned there were some potential for negotiation for renewal of some are from exists expiring agreements I wouldn't be departed like I'd first like how is it is going and then has it been impacted or with a pandemic at all.
Sure I'm going to actually ask them all to answer that question.
Oh sure. So yeah, I mean, we had I think we had dimension than we there are some agreements that <unk> existing agreements I think that was your question correct that are that would that would be up for renewal over the next few months to a year. So we are working on that.
We're expecting to to be able to renew or potentially a different terms from what we have today.
But we are we are expecting to be able to renew a I think you're the other part of your question was on the the impact of of the pandemic [laughter]. That's going thanks down I think that's more of a kind of if I look at overall BD discussions some some discussions are continuing.
As a as normal and others are some discussions are being delayed because of the pandemic. So it's really a you know some impact and some are not impacted at all.
Okay.
Thank you and since we are actually under discussion I mean have you seen any changes in terms of Ah multiples or prices that are being upcoming especially if we contemplate contemplate a bit of a dip because of a slow down in the economies.
Yeah. So we're not we're not seeing any and he just in valuations in fact, if you look at Oh, the financing and all the cash inflow into the factor.
Anything it may be kind of doing the opposite so we're not really see again improved valuations or any higher sales. There is there's pretty healthy cash inflow into into the factor. So no change no no improvement on valuation.
Okay I think it in the last one for me thing I'll, let them I Wonder if you can talk a little bit about Oh, the management team in there how do you see developing I mean, especially when you finished the tender in Q3 like any comment.
Income from the structure to treat specter. Thanks.
Hi, Andrew.
So what are the things as I mentioned earlier on the call what were really trying to build is one organization. So to have people who are working assets.
Whether they're in Canada, or whether they're in last time to really focus on us as a global company. We do there are certain gaps in the organization that we had identified when we were doing the acquisition as we've been working through their talent or within the company that we we will continue to.
Elevate and there's other places where we do need to continue to fill the gaps and during this time, it's a little unusual to be recruiting over zoo, but we are putting those we are really in the process took putting people in those positions and working through that.
Okay. Thank you.
Again, if you'd like to ask a question. Please press star and the number one on your telephone keypad. Your next question comes from a line of Andre audits fraud Mackie Research. Your line is open.
Hi, Good morning, everyone. Just wondering though when do you think you'll be able to monetize your for venture fund investments.
Sure. So we've decided to I guess over the last couple of years of that.
The venture funds have been very successful for us financially, but from a b D efforts they've been a lukewarm at that.
And that we're not investing in new funds when it comes to monetizing the decisions for now is to continue to.
Hold on until their maturity at this point in time, we don't we still have a nice set a amount of cash so unless there's a need we won't really be monetizing.
Okay, and what are your Ah your top three public equity positions right now.
I'm going ask Arvind I don't think and ER.
All locked arvind to answer that question.
You might be on your garden.
Sorry, I was news receptive I was equity position like we don't have anything that's material. In fact, if you go to the disclosures and I were on our financial statements its.
Less than a couple of million a couple of million dollars at best.
Okay perfect. That's why I'm, just curious and also just wondering if you're going to be providing any our garden sanjiv ti going forward.
That's one other things a little too we have been trying to work on or close will lead you to cope with it it's a little hard a internally to to do that.
But we [noise].
As we come out of that so we should we will be.
Okay. Okay, that's great. Thanks summer.
Yes.
There are no further questions at this time I'll turn the call back over to the presenters.
Thank you for your confidence in the night team as Bret Jordan in our first quarter 2020 conference call. Please.
Please stay healthy and stay safe.
This concludes today's conference call you may now disconnect.
[music].