Q3 2020 Emergent BioSolutions Inc Earnings Call
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Ladies and gentlemen, thank you for standing by and welcome to the emergent Biosolutions Inc. three Q 2020 earnings conference call. At this time all participant lines are in a listen only mode. After the speakers presentation. There will be a question and answer session to ask a question. During the session you will need to press Star then the number one on your telephone keypad. Please.
That states.
I would now like to hand, the conference over to your Speaker, Bob Barr is vice President of Investor Relations. Please go ahead.
I don't think for the benefit of those who may be listening to the replay of this webcast. This call was held in recorded on November five 2020. Since then emergent may have made announcements related to topics discussed during today's call.
With that introduction I would now like to turn the call over to our President and CEO, Bob Kramer Bob.
Thank you Bob and good afternoon to everyone. Thank you for joining today's call.
Profitable growth is fueling the strength as reflected in our strong quarterly and nine months financial performance.
Taking into consideration or a year to date results and our visibility through to the end of the year. We also updated of 2020 financial guidance, maintaining the same midpoint of 1.55 billion for total revenue for the year as well as increasing our profitability ranges.
<unk> a nasal spray.
Recently, we committed completed too important product lifecycle improvements that we expect will provide meaningful value for our customers first we launched the generation to narcan nasal spray device, which is identified by a red plunger.
Hi number of opioid related deaths across Canada, coupled with the difficulty for pharmacists and assessing the potential risk for opioid overdose.
Unfortunately, the number of opioid overdose deaths continuing to rise do likely in part to the impact of the COVID-19 pandemic. We believe continued efforts to increase awareness expand availability and maintain affordability of naloxone products like narcan nasal spray.
At high risk of exposure, such as healthcare workers military personnel and others.
The ongoing COVID-19 pandemic on the ability to execute on the trial for influenza.
Turning next to the vaccines business unit, we've continued to make deliveries of our anthrax vaccine candidate 87, nine O nine to the strategic National stockpile in July this year of the U S government exercise an option to secure additional doses over the next 12 months.
In parallel with delivering doses of this candidate into the stockpile. The clinical path continues on schedule during the quarter. We completed the year one follow up for the Phase III study and remain on track for submitting the BLA in 2021.
For the single dose vaccine for chicken Gunia and 2021.
We are constantly moving forward and poised to extend our strong progress as we approach 2021.
Reflecting sales VIP and fat.
Our third quarter results first we increased our contingent consideration liability by $30 million to reflect our expectation that the second and final milestone related to the adapt pharma acquisition will likely be paid in full.
Second we took a $29 million noncash impairment charge related to our naloxone Prefilled syringe development program that we are continuing to evaluate.
And third we incurred $17 million of exit and disposal costs associated with managing our travel health business during the pandemic, including $14 million of noncash inventory write down costs.
Our financial performance nine months of 2020 was also very strong driven by all the factors just discussed for the third quarter.
The year to date financial results also include net R&D expense of $74 million or 8% of adjusted revenue, reflecting investments in our chikungunya product candidate and COVID-19 therapeutic product candidates.
Set by reduced spend related to our flu IGT Ivy product Kennedy.
SG&A expense of $221 million or 23% of total revenues compared to 27% in the prior year, reflecting continued scaling of our business, even with an increasing share based compensation and continued investment in staffing to support our growth.
And in terms of year to date profitability, adjusted EBITDA of $340 million or 35% of total revenues and adjusted net income of $225 million or 23% of total revenues.
Turning to our balance sheet, we ended the quarter and the strongest liquidity physician in the company's history with combined cash accounts receivable and available borrowing capacity exceeding $1 billion.
Our liquidity position was significantly enhanced during the quarter as a result of our issuance in August of $450 million of senior unsecured notes do in 2028, which enabled us to fully refresh the borrowing capacity under our $600 million revolving credit facility.
We ended the quarter with $450 million in cash and accounts receivable of $196 million, bringing encouraged liquid assets to over $600 million.
And our net debt position of September 30 was $476 million a reduction of 27% from December 31.
As a result and based on the midpoint of our updated full year guidance. We are on track to achieve a ratio of net debt to adjusted EBITDA of less than one times for the full year of 2020.
Our cash flow highlights include year to date operating cash flow of $291 million, which is also the strongest in our history and reflects the substantial cash generation capability of our current product and services mix.
In addition year to date capital expenditures of 105 million.
Reflect a variety of capacity and capability expansion that we have previously described principally are ongoing projects to scale the video business device and Marilyn in Massachusetts.
And free cash flow, which we define as operating cash flow less capex was $186 million in the first nine months of the year or 12 times the level realized in the first nine months of 2019.
And some are accelerating operating momentum creates favorable conditions for us to execute on our growth strategy and deliver solutions to address global public health threats.
I will now move onto our updated guidance.
Taking into consideration the performance for the first nine months of the year our outlook for the remainder of the year across all of our business units and the expectation that challenges in some parts of our business will be offset by expansion in other parts. We are updating our 2024 year forecast.
This forecast consists of the following elements.
Total revenues narrowed to a range of 152 billion to 1.58 billion, maintaining the midpoint at 1.55 billion.
In terms of product specific detail anthrax vaccine sales and a range of $350 million to $370 million, an increase of $25 million versus the midpoint of the prior range, reflecting are improved visibility into this year's anticipated deliveries of 87 909, as we continue to gain more experience with this development stage product.
Candidate.
Narcan nasal spray sales and a range of $295 million to $315 million, an increase of $5 million at the midpoint, reflecting greater visibility into this year shipments to both retail and public interest channels.
In <unk> 2000 sales and a range of 160 million to $200 million, a decrease of $10 million at the midpoint.
Reflecting the possibility of fewer AKM doses available for shipment this year than previously anticipated due to a timing issue.
For the CD emo business revenues and a range of $450 million to $470 million, an increase of $10 million at the midpoint, reflecting the timing of certain activities and additional business acquisition and project extensions to be realize this year.
Our profitability guidance includes adjusted net income of $375 million to $405 million, an increase of $25 million at the midpoint versus the midpoint of the prior range and adjusted EBITDA of $575 million to $615 million, an increase of $28 million at the midpoint and a further clear.
<unk> of the earnings potential of our overall diversified operations.
Importantly are revised 2020 guidance takes into account the following operational considerations, which has not changed since July when we last spoke the guidance.
Improvement a full year gross margin by 400 to 600 basis points, driven by product mix and increased contribution from our CD mow business.
The previously announced delay into 2021 of the launch of the Phase III clinical study for the Chick <unk> LP program due to the timing of certain operational factors.
But continued deferral into 2021 of a follow on procurement contracts with the U S government for Roxy bathroom at due to the impact of the prioritization of the operation works feed program on our efforts to tech transfer the Roxy process to the baby Baltimore site.
Continued significant disruption of global travel for the entirety of 2020, which greatly reduces vax Cora in vivo chief revenues and finally, an assumption of no generic competition in 2020 for Narcan nasal spray.
In conclusion, we had emergent are committed to building a strong and resilient business with the capabilities capacities and financial strength needed to deliver preparedness and response solutions to public health threats.
Our current outlook in recent accomplishments tangible evidence of the durability and viability of our unique business model and the role that we play in protecting and enhancing lives across the globe we.
We are executing on our mission and sustaining solid operating and financial performance as we approach the end of 2020 and move confidently into 2021.
That completes my prepared remarks, and I'll now turn the call over to my colleague Sayiid Hussein, who will take us through an overview and update on the CD mow business, including for the first time certain key metrics regarding the help of this business unit Sayiid.
Thank you rich good afternoon to everyone. Thank you for joining today's call I'm incredibly pleased to be here today to provide a deep dive into the <unk> business.
As Bob noted earlier, we have demonstrated significant revenue and portfolio growth by deploying our expertise across development services drug subsequence manufacturing and drug product manufacturing with both industry and government customers while much of the recent growth has been driven by collaborations on COVID-19 programs.
I want to emphasize the durability and sustainability of our CD ammo business.
Our ongoing investment in both capacity in new capability will increase our ability to meet the expected long term demand leading to significant long term growth.
I'll start my remarks with a key factor that has led to our current success and will continue to be a differentiating factor going forward.
As an integrated CDMA emergent occupies a particularly unique position in the landscape combining the customer focus and dedication as a pure play CD with the expertise and experience of a CD ammo embedded in a pharma company. We have the distinct mindset to provide services to bring products all the way from can't.
Set to market.
There is no other CMO with this unique position in the landscape and resulting value proposition.
Next I would like to highlight and we are trying to address a 20 billion dollar market opportunity.
It is now and into the future.
Given time constraints I am not going into detail on our service offerings that do want to note three main buckets develop.
Development services drug substance manufacturing and drug product manufacturing and packaging.
Again, offering one two and or all three services allows us to rapidly partner and collaborate with customers from concept to commercialization, which we describe as molecule to market.
The next slide shows a high level overview of our facilities, which are spread across nine locations in the United States, Canada and Switzerland.
While this slide reinforces the substantial expertise in infrastructure already in place importantly, it also shows the significant opportunity for expected further investment as evidenced with our active investments at three of our facilities.
Errol vector in gene therapy drug substance manufacturing and our canton, Massachusetts facility non.
Non viral drug product manufacturing at our Baltimore, Maryland, Camden facility and viral drug product manufacturing at our Rockville, Maryland facility.
This will allow us to increase our capacity to deliver on future business opportunities in the coming years. As a reminder, presently we are only in only one year into the Relaunching of this business to realize the full potential of our broad network of sites as well as growing capabilities and capacities.
At the analyst and Investor Day, I laid out a series of key initiatives that we believe will drive market penetration and lead to future growth ongoing.
Im going to quickly reiterate those now.
Continued expansion of our sales and business development team is a key initiative. We now have many experienced professionals in place and we are already seeing their impact on our funnel of future agreements. We will continue to enhance our molecule to market offerings, which is vital and will provide additional opportunities for our sales and business development.
I mean to interact with both existing and potential customers growth with existing customer clients through cross selling is at the heart of our strategy and a scalable business.
Not many CDMO organizations can match the breadth of the merchants technologies.
To support our sales and business development teams, we are focused on increasing brand awareness and expansion within the United States and internationally through innovative marketing, including the virtualization of the sales and marketing process.
We are expanding the appropriate levels of the organization to increase our targeting of small and midsize pharma and biotechs. As these companies are at the heart of innovation and key in our concept to market strategy.
You guys are in progress in the business importantly, we are evaluating how often to update on these metrics in the future.
We are also providing our current funnel opportunities to give insight into the considerable number of potential programs. Currently in negotiation that we believe have a reasonable probability to enter the portfolio in the near term.
As a reminder, the team works to continuously increase our opportunity funnel through prospecting efforts across the pharma in biotech and government non government agencies customer segments with all of our offerings and network of development and manufacturing facilities.
I want to highlight that as with our current portfolio. There is a nice mix in terms of customers molecules and projects, including active discussions for our capabilities and capacities and facilities not routinely reference such as Lansing, Michigan in Winnipeg, Canada, as well as our active investments in Rockville.
Maryland, and Canton, Massachusetts.
As a snapshot through Q3 2020, the total potential value of the funnel at present.
$500 million.
I would like to stress that our current portfolio an opportunity funnel do not tell the full story two key items to highlight first the previous Sally's I discussed do not include existing project extension from our current portfolio of customers like Johnson, and Johnson are astrazeneca, which could be sizeable alt.
So there is a substantial amount of prospecting discussions ongoing we could also which could also enter the opportunity funnel or portfolio shortly.
We are enthusiastic in this regard as we are experiencing a steady increase in inquiries and interest for our CD ammo services, especially our mammalian and viral technology platforms and development services drug substance and drug products.
Finally as shown on this slide I'd like to highlight the key takeaways. We are very pleased with the progress made in the <unk> business in less than a year and we remain incredibly confident in our ability to execute and delivering on our growth initiatives.
Our current portfolio of approximately $1.8 billion provides a solid base over the upcoming years are current funnel of opportunities is approximately $500 million not including potential price potential.
Potential existing project extension.
Also we are committed to further investment in the business of greater than $200 million to provide expansion of capacity and capabilities.
The ongoing expansion of our sales and business development efforts should increase our opportunity funnel further and secure additional business. We believe this will lead to both market share penetration and long term growth.
We look forward to updating all of you on future progress in the coming quarters.
With that I will turn the call over to the operator to begin the question and answer session operator.
Momentarily there. Please operator idea of Hydra eyes are one year, if you'd like to ask a question. Please press side. The pin number one on your telephone keypad to draw your question price detailed key.
Please standby Wally cabal, the Q&A roster.
And your first question comes from Jacob Hughes with Wells Fargo Securities.
Hey, good afternoon.
Look on the third of two questions one is on dark.
So if we take the the made the high point of your guide An' implies.
Some softening in in the fourth quarter from the third quarter, maybe you could just talk about the key drivers of and then on on the CDMA all both of those maybe maybe you could provide some additional detail.
The cost that you are currently incurring related to your COVID-19 contracts and then.
Longer term, if a vaccine access to US fall how should we think about the economics on a per dose basis for those contracts. Thanks.
This is Bob Thanks for ticket for the questions. Thanks for joining the call. So the first one.
Q3 versus employ Q4, nor can.
First of all the Q3 revenues for narcotics.
An all time high of roughly 89 million.
Roughly 10% above queue to as.
As we talked about throughout the year, our annual view and guidance on Narcan.
Was predicated on a couple of things first of all.
That there would be no generic entrants or competitor to nordkyn nasal spray during 2020.
Second that there would be a couple more states that would adopt co prescription either policy or legislation.
Which could potentially give a bit of a lift to the overall revenues.
So we continue to be quite bullish an optimistic for that franchise in that product.
I think what you might be implying in our queue for number that if you back into it it is maybe a little.
Lower than 89, but.
Again.
We will continue to monitor.
We'll say as in Q3, both the retail component of Narcan nasal spray revenues as well as the public interest market or higher.
And part on the pet market driven by some of the state programs.
In California, and New Jersey, Michigan in Georgia, So again, we're quite optimistic.
On COVID-19, and the contracts.
Terms of the economics.
I guess I would say that.
We continue to evaluate.
The economics, and what that additional revenue brings to the business.
Our sole focus right now during the first really eight months of these contracts has been to make sure that we are honoring our commitments and obligations to stand up a menu a robust manufacturing process and supply chain here in the United States.
For a number of our collaborators, including J&J in AZ will evaluate longer term the economics.
Of what those contracts might look like under the commercial supply agreement.
But as we have commented on right now those contracts. In addition to the contract with BARDA and OWS are meaningfully contributing to both revenue and profitability.
During 2020, and we expect the same for 2021.
But first of all about.
Sure.
And your next question comes from Jessica.
J P Morgan.
Hey, guys. Good evening. Thanks for taking my question and I. Appreciate you providing that additional detail on the CMO business I'm trying to better understand the potential for near term upside from that business I think he said you're investing in building on site, Maryland, Massachusetts.
So how much of your capacity it's spoken for at this point and how much do you think you could still contract out over the next year or two.
Sure. Thanks, just for the question and good to hear your voice again, we will come back.
I guess in the capacity issue and suggest that you will look at it as a couple of different ways first of all.
Site is articulated we have.
Fairly broad and diverse network of nine different seed BMO development and manufacturing sites and as you know just from following us for quite some time.
All of those manufacturing sites are a bit different.
If you're talking about capacity for COVID-19 vaccine development manufacturing in Bay view, which is where the majority of that work is being done.
I think we've said out loud that were pretty much capacity maxed out right now with the work that we're doing with J&J with a Z with Novavax and is wells with.
Vax art.
How that looks going forward will be somewhat dependent upon.
What the eventual yield is for many of those products.
But I'll turn it over to say you can comment more and more detail about the other kind of non COVID-19 sites.
Including what we're doing in canton to build that side out for future development.
Thank you Bob and thank you've had a question just so the perspective that I would add on top of Bob's comment is to really reiterate the network effect from utilization standpoint. So if you go back to my prepared comments with respect to first off the offerings. So we have three distinct offerings between development.
Services drug substance and drug product the ability to offer those individually and an integral and in an integrated fashion across all the technologies allows us to still continue to onboard new business across the network that we have that $500 million funnel.
<unk> is proud across opportunities that could go across our network.
And that that even takes into account as I mentioned facilities that we don't routinely reference such as the one in Lansing, Michigan as well as Winnipeg, Canada.
And it also takes into account facilities that are coming on stream based on are committed capital investment. So for example, the expansion in Rockdale, Maryland is coming Onstream at the end of 2021, the investment in Canton, Massachusetts, which really puts us.
Into advanced therapies from a Jean Jean therapy standpoint comes online in 2023. So these this network as well as our ability to to partner with customers across each of these offerings as well as the $500 million funnel will allow us the opera.
Unity to over the years, including this year and next year.
Continue to leverage available capacity that we have and be setup to utilise capacity, that's coming onstream with the committed investments.
Okay got it.
To kind of follow up to that how flexible are the Swedes here building out for the Covid vaccine and to the extent the those partners ended up not meeting your capacity can you help us understand how simple or complicated it would be to switch over that capacity to other products.
For a different client.
And then the last question is just.
What's the current operating margin for the city in the business and what do you think of it as on a normalized basis.
Absolutely so I'll I'll answer the first question and then pass it over to my colleague rich for the second one.
With respect to the first question all of our development and manufacturing facilities are predicated on being multipurpose.
So they are designed to handle multiple multiple products. They have foundational technology platforms that then allow them to be customized for the specific product and process that were that were working on.
And specifically when we talked about the drug subsequent facility in Baltimore.
Which is known as our Bay view facility.
So right now.
That is predicated on multiple products being in there.
If for any reason those products are not successful certainly with our deals structures that we've provided information on previously were protected from a financial standpoint.
But then also given the fact that they're multipurpose facilities, we can pretty readily transition to other opportunities either through those same innovators or opportunities that are in a funnel.
In parallel to that.
While we focus our efforts on our drug substance facility, we're able to onboard new relationships and development services and and drug product as we've done over the past quarter.
Okay and in terms of the <unk>.
Profitability of CDMA, so on a normalized basis longer term, we would expect the.
Margins to be in the 45% area somewhere in the mid forties with an opportunity to improve from there.
As we look at this year and next year.
We're experiencing better margins and that is driven by a number of factors, including the fact that because of the facilities are so highly utilized right now.
As a much higher degree of absorption of the overhead and those facilities.
As well as some benefits were receiving on.
Some of the capacity reservation fee so.
Several quick higher this year and next year major contributor to that four to 600 basis point blended gross margin improvement.
And thats, but on a longer range basis more normalised in kind of a 45% may be higher margin area.
Great. Thanks.
And your next question guys from Reagan dogs with Cantor Fitzgerald.
Hi, Thanks, Chris and congratulations on the quarter.
I'd say, it's based a little bit yeah.
You talked about the hitter in the travel vaccines business and that's completely understandable just given environment.
Does that change how you thinking about the development timeline chikungunya product is it something you may look to push out just given.
What is going on with the travel world any color. The just in terms of what we should expect would be great. Thank you.
Yeah. Thanks, Brendan for the question and thanks for joining the call.
And we continue obviously to evaluate.
Our ability to execute the development plan for the chicken good candidate.
Our best information.
Tells us, though so we should be able to start that clinical trial in 2021 and.
Clearly I think you're you're right in identifying because there may be some risks to starting now because of the the macro issues around COVID-19.
Again, as we stand here today, we plan initiating in in 2021.
Great. Thanks very much.
Sure.
And your next question comes from key K.
K with.
Target.
Ah yes, thanks, just wanted to talk about.
Some of the guidance system a product revenue.
Bob Your anthrax vaccine revenue guidance much higher.
What goes through his comply for next year generally speaking we do see.
These numbers on a year over year basis fairly steady this is going to be upsized here.
How do we think about 2021.
<unk>.
Yeah.
Okay. Thanks for joining the call so, let's let's take one year at a time.
2020.
As you know we were able to increase the range from last quarter.
From it was 320 to 350 now is 350 to 370.
So again I will readily acknowledge that but I'll also acknowledged.
<unk> 2000, we have to take a little bit of a haircut on the bottom side of the range.
And this is all due to.
Our best view of our ability to meet delivery schedules and to supply the appropriate number of doses for in this case, both anthrax vaccines as well as a camp 2000, and you know from our many years of conversations the risks associated with.
The supply chain around biologic products, whether it's the production cycle or the testing cycle or regulatory review cycles.
Emerson flows a bit so there's a little bit of variability around that and we've been able to manage that effectively when it comes to anthrax vaccines in 2020 to the point, where we were able to up the guidance of it and as rich indicated with a camp 2000, the smallpox vaccine.
Provided essentially a little bit of a different range just and.
In recognition of some of the supply chain challenges that go with biologic. So.
We will give some guidance as we always do for 2021.
Probably in early January of next year.
As we've talked about it in the past.
We expect there to be.
On the run rate for anthrax vaccines, which have historically been and that 250 to 300 range.
We expect that going forward I think what we are experiencing in 2020 is a little bit of maturity quite frankly in the transition of the strategic national stockpile from bio tracks only two a bio tracks and Avi seven 909.
Stockpile so.
Just part of the evolution of maturity that transition.
Okay. So we shouldn't necessarily think that the.
The upsize 2020 numbers eating too much into what we would normally think on an average basis 2021.
Yeah, we'll talk about 2021 and a couple of months.
Okay switching to Roxy.
Mentioned with the focus on.
19.
And the impact on getting the follow on contract how far out should we think about that follow on contract now being.
In terms of being able to secure that those.
I would hope that sometime during.
2021 will get clear line of sight in terms of the.
The overall procurement and contracting process.
I think it's.
And part.
Impacted by the the more macro issues around COVID-19.
So we will.
We'll hope to flatten that out in.
In the first half of 2021.
Do you need to have.
The.
Usa's manufacturing to a certain point before you were able to successfully complete that contrast.
And for your back on racks, you know, okay, yes, yes, yes.
Yes, we will as we've talked about in the past.
Our plans work to do a tech transfer from GSK to our Bay view facility.
And right now the baby's facility aside articulated is.
Essentially full up in full committed to COVID-19, So we'll work through the issues I think we'll have again clear line of sight in the first half of 2021, what the long term implications if any for Roxy will be.
Okay, great. Thanks.
Sure.
And again as a reminder, if you'd like to ask a question. Please press stars and the number one on your Taylor. Thank keypad that is so I wanted to ask an audio question. Your next question comes from Dana Flounders with it Guggenheim partners.
Hi, This is devin on Dana Thanks for the question just a few for me today.
First the midpoint of your guidance reply I believe if my math is correct central decline in four Q EBITDA margin you provide some color on what's driving that step down.
Sensually and is this just a function and neck and lower realm.
That's a beautiful.
Emo and tender.
That's kind of overall revenues.
Yeah.
Yes, Devin thanks for joining the call. Thanks for the question.
I'll make a couple of comments now as rich to weigh in as well.
I think it's important to note.
In fact, we have guy is up the adjusted EBITDA number for 2020.
Even from quarter too early this year, which was significantly higher than what.
What we got it initially in the beginning of 2020, so I think what you're probably referring to is when you start doing the math and backing in two Q4 number looks like given the large revenue.
Contribution again as a result of backing into the number may.
Maybe the margin looks a little.
Out of one particular, if you look at it compared to.
Q3, I wouldn't read anything into that.
Will be the result of mix.
Contributions, but I wouldn't read much into that.
Yes.
We can go through that with you offline, but we're not expecting a decline missile Gretchen recliner adjusted EBITDA margin the fourth quarter.
Okay. Thank you and then I guess, just just one follow up.
So on the on the business.
And I know you guys mentioned I didn't have the slides up but the you.
You mentioned $1.8 billion and current portfolio $60 million in new business, an existing projects then a funnel of approximately $500 million.
Assuming that the 1.8 billion includes the Covid contract.
But is there is there any other covid related business that rolls up into those other I guess.
Into the funnel or into the new contract this quarter.
Yeah, so at a high level.
You are correct.
One 5 billion and COVID-19.
Contracts that we've announced and press release during the first.
Nine months of this year are included in the one $8 billion.
So I don't know if the additional color or detail you want to come in about the remaining 300 million.
In terms of what's covid versus what's non covid.
Yeah, absolutely. Thank you Bob.
Full of things with respect to that one point approximately $1.8 billion.
That $300 million that separate from the Covid response that is predominantly.
Non non covid.
The other aspect is that 1.8 billion approximately $1.8 billion does not include existing project extensions from our current portfolio customers like Johnson, and Johnson are astrazeneca, which could be sizeable.
From a opportunity funnel standpoint that we had talked about which is as a snapshot right now approximately $500 million, we see a very diverse set of.
Discussion within that 500 million.
That does include some additional covid opportunities as well as a very healthy mix of non covid opportunities as well.
Great. Thank you.
And there are no further questions I would now like to turn the confidence that Guy Richard Bob.
Thank you Amanda with that ladies and gentlemen me now conclude the call. Thank you for your participation. Please note an archived version of today's webcast as well as the PDF version of the slides used during today's call will be available later today and accessible through the investors landing page on the company website. Thank you all again and we look forward to speaking with all of you in the future Goodbye.
That does conclude today's call you may now disconnect.
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