Q3 2020 CASI Pharmaceuticals Inc Earnings Call
[music].
Afternoon, ladies and gentlemen, and welcome to the C.A.S.I. Pharmaceuticals third quarter financial results and business update conference call at.
At this time, all participants have been placed on the listen only mode.
He had to be prepared statements participants will have the opportunity to ask questions. When posing question. Please pick up hand should still allow for optimal sound quality I.
I would like to hand Colbert to Cynthia from C., I guess high from filling them actually Smith. Please go ahead.
Thank you operator, good afternoon, and welcome to Kathy third quarter Conference call earlier today, Kathy issued a press release, providing the details of the company's financial results for the quarter ended September Thirtyth Twentytwenty. The press release is available in the Investor Relations section.
Companies' website.
Today's call will be led by Dr., <unk>, Oh, chairman and CEO.
He along with Dr., Alex the Peasquito, our Chief Medical Officer Dr., Jim Go Schmidt, our senior Vice President of business development and I will also be available during the Q and a portion of this call.
As a reminder, our remarks today will include forward looking statements, including all business plans objectives and milestones.
These forward looking statements are not guarantees of future performance and therefore, you should not put undue reliance upon them.
These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from those projected or implied in our forward looking statements.
For a description of important factors that could cause actual results to differ we refer you to all statements in today's press release, and you know as Seifi filings.
Now it is my pleasure to turn the call over to our chairman and CEO Dr. will huh that's.
Uh-huh. Please proceed.
Thank you your things here are good afternoon, everyone and thank you for joining US today I will begin the call with a general update followed with an update on our lead programs and Alex will help but you know gave people some color on.
Our pipeline.
And then I will conclude with the third quarter financial highlights.
Let me begin by saying that we are very pleased with the progress we have made in the third quarter from both a clinical and corporate perspective I.
I'm extremely proud of our team across all functions for their continued dedication and focus.
There's no doubt in my mind that we are well on our costs in building a leading biopharmaceutical company.
We will continue the momentum generated from our most recent in license.
B I wanted to have sex and from our underwritten public offering completed in the third quarter with your support and our strong balance sheet. We will continue to make incremental progress sees with our product portfolio and continue to aggressively pursue.
Additional assets.
A few words about how we go about our pursuit of assets.
We are pursuing assets with proven targets and all low clinical and biological risk, but we will be opportunistic in our hunger for what we like to call diamonds to add to our pipeline.
We are interested in products that fits our core competency in global drug development, allowing us to leverage China clinical development and the large patient population in China, we look at business development opportunities with a entrepreneur.
Yes, specifically, we not only look at an asset that's fundamental global development potential, but we also look at I'll hop enough investment potential.
Our business development execution, typically crudes, an embarrassment component component in our partner.
We believe this additional layer of investment deepens, our collaboration with our partners and signals our confidence and trust.
Venture approach has proven effective in developing all our cross cultural global relationships. It also provides a.
I'll walk shareholders additional upside and the potential return on equity.
For example in connection with our car T 19 commercial asset.
Kathy through our China subsidiary is also a major shareholder in our Pompano Juventus.
We believe Juventus, a China therapy, a cell therapy leader with a pipeline of innovative cellular based the product could potentially capture a significant value from the Asian capital markets.
Access to the Asian capital markets could unlock significant value for its shareholders, including Kathy.
Similarly, Kathy will be a shareholder of by event our partner for B. I won 206 bio event as a publicly traded company on the NASDAQ stock home exchange and has validated proprietary platform that generates promise.
The new drug candidates to feel its pipeline. In addition, Kathy also is a shareholder of a spin off company black belts therapeutics from which we acquired at global rights to see I'd want those three we believe our style of venture Madison that is embedded.
Shifting in our partners wide jointly developing an asset together one greatly enhances our collaboration and to give our shareholders an additional opportunity to capture value.
This approach also reflects that deep experience and core expertise of our executive management and board.
In both drug development and pharma investments with this approach we will continue to build our pipeline one asset at a time.
I will now address our commercial product and then Alex will address our pipeline.
Eva Maaleh, we recorded Eva Maaleh revenues of $4.2 million for the third quarter for the full year 2020 revenue, which is really our first.
Four year of commercial activity, we expect to exceed $14 million in revenue.
This exceeds what we have previously forecasted.
As you recall, if I'm Alice is approved in China for the use as a high dose conditioning treatment prior to hematopoietic stem cell transplant transplantation in patients patients with multiple myeloma.
Melphalan was previously not available in China, and even my life is not just melphalan. It is a proprietary formulation with patent protection until at least 2030 it.
It is currently the only form of Melphalan commercially available in China.
And based on our front line work with hospitals and the medical centers, we have witnessed first hand, the strong endorsement of this product from our chaos and physicians.
We expect that autologous transplant will continue to be increasingly adopted as a standard first line treatment for multiple myeloma our.
Our Eva Maaleh post market study is in progress so far the data. We are seeing is consistent with published studies of Evomela, we expect to complete enrollment for this required study by the end of this year.
Through Eva Myla as our first commercial product we have built a commercial sales team that has been follieri tested with the successful launch of the Ebola and now stands ready not just.
Expand that Youve umbrella, but also ready to launch additional products such as our car T 19.
Sarah.
We will keep doing this launching one product after another.
With that I'm going to turn to Alex and Alex will give us an update.
On our our pipeline drugs.
Alex I.
Thank you Andrew Good afternoon, I now excuse TV Chief Medical Officer, Kathy in for the next few minutes I'm going to give you an update on the Cassie pipeline.
Let me first start with CN Cdnineteen, our comp our Cdnineteen car T asset our partner Juventus is making great progress with its current phase one studies in be NHL and be Ll. These two trials are single arm open label non randomized dosing.
Escalation phase one studies to determine the safety and efficacy in the relapsed or refractory settings. So far we're seeing a level of activity that is extremely encouraging.
Based on the progress of the phase one trials, we understand that you've entered Juventus expects to initiate the phase two registration trials by the end of 2020.
This is earlier than previously forecast Needless to say we are excited about with the progress that you that this has made to date now.
Now for a factor to highlight little about see NCT 19. There are currently no approved CD 19 car T therapy products in China.
Either produced by a foreign or domestic manufacturer CNC T. 19 will be local is locally developed and manufactured which greatly distinguishes it from other car T 19 therapies.
Developed and manufactured outside of China.
As you are aware drug pricing still remains a substantial issue for patients in China, particularly particularly for premium and innovative products.
Terrible CD 19 therapies that are developed manufactured outside of China are subject to ex China, CMC and cost of goods, making the cellular therapy price point significantly higher than what we believe CNC 19 can be priced.
Next I will address our most recent pipeline addition.
Hi, 12 or six.
We recently announced our in licensing of VI Twelvesix a novel anti.
And see gamma are to be antibody for the greater China market.
Twelvel six two up has a novel mode of action blocking the single inhibitory antibody checkpoint receptor. The FC gamma are to be to unlock.
Anti cancer immunity in both Hematological malignancies and solid tumors.
FC Gamma receptors are antibody checkpoints that modulate efficacy of tumor directed targeting antibodies and immune checkpoint targeting antibodies usually cancers.
No therapy.
12, or six can potentially be used in all therapeutic monoclonal antibodies that rely on ADCC or CDC CDC for efficacy. It is by one cents lead drug candidate and is being investigated by by wouldn't end in a phase one two trial in combination with the anti PD.
One therapy Keytruda judge.
Generic name Pembrolizumab and in solid tumors in a phase one to a trial in combination with rituximab for the treatment of non Hodgkin's lymphoma.
We believe that VI Twelvel six has broad clinical application with the potential to be used across multiple tumor types in many first line indications and the refractory setting.
Which we plan to explore together with violent event, we plan to develop VI 12 will six in both liquid and solid malignancies with Kashi responsible for the development.
And commercialization in greater China, our lead indication will be 12 of six in combination with rituximab in patients with relapsed refractory non Hodgkin's lymphoma.
We are now in the process of establishing our joint steering committee to kick stout kick start our development plans in China, starting with our regulatory submission to the Chinese NMTC.
We are excited to work with our new colleagues at Biogen and we'll have more to update at our next teleconference. Let.
Now, let me move on to Cie.
I'd want to three.
Which is the anti cdthirty eight antibody.
See I'd when all three is a fully human IBG, one anti cdthirty eight monoclonal antibody, which recognizes a unique epitope.
It was selected to have strong ADCC activity against Cdthirty positive malignancies cells with a reduced CDC activity, thus, resulting in a potential reduction of infusion reactions, which are observed with existing anti cdthirty eight treatments.
Preclinical data demonstrated that Sky D 103 has enhanced activity against a broad array of malignancies, expressing cdthirty eight and potentially a better safety profile when compared to other cdthirty eight monoclonal antibodies.
In addition, the results of Envivo studies have shown promising data.
That cdtwentyxcdthree outperforms, what is currently available and the data from the in vivo efficacy models.
And preclinical toxicology studies have shown higher entities higher cdthirty eight killing high ADCC activity.
Which recognizes a unique epitope improved safety profile with no overt related infusion reactions less cytokine release decreased binding to human RBC ease and the potential for shorter admitted administration time versus the competitors.
We have recently completed a preclinical study in collaboration with the New York Blood Center. The study investigated the impact of Cie when all three on RBC pre transfusion test methods utilizing dare to win them as a positive control seat.
C. D 103 demonstrated very low binding to RBC fees that was not detected by most blood bank test methods independent of the concentration.
Of drug C. D 103 demonstrated significantly less RBC interference.
Relative to dare to Matt while these observations are encouraging for laboratory testing of patients needing trends RBC transfusions confirmation will be undertaken in the CIA D 103 phase one clinical study.
Based on this and other data we have observed so far we remain.
Encouraged that I'd want to three has the potential to be best to be a best in class anti cdthirty eight antibody and I look forward to initiating our clinical study in the very near future.
As we guided last quarter. The Cove. It 19 pandemic impacted targeted start time of our CIA D 103 phase one trial, but our expectations remain on track with what we have reported last quarter, we have filed our eye MPD application.
To the M. HR aid, the British Health authority and to the NSM, The French Health authority, and we expect to initiate our phase one study.
In.
In sites in both the UK and France as soon as the institutions are opened for clinical activities that we expect to start in Q1 2021.
As reported the phase one study.
Okay 81, all three will be a dose escalation study with an expansion phase to determine the safety and preliminary activity of Cie won all three in patients with relapsed refractory multiple myeloma. The trial protocol is designed to test a priming dose as well as dose escalation with the objective.
To reduce the infusion duration as recommended by the data Review Committee.
This completes the update for our three lead assets in our pipeline. Let me take you through a few of the other assets, which we previously reported on.
Our other assets include.
Included in the pipeline are also progressing well our registration trial for Octreotide lock the long acting injection is on track to be initiated this fourth quarter Twentytwenty.
And our registration trial for style team is in the planning stages and is on track to be initiated in Twentytwenty one.
We're also making progress with regards to our will she manufacturing facility. We have started the early phase of construction and land improvements with Fuller scale long term construction plans in.
In current discussions with the local government.
Please find additional information by referring to our web site and filings. We're also happy to address any questions during our Q and a session.
With regard to COVID-19.
The pandemic is still ravaging the global community, including our colleagues around the globe, taking care of patients within China, we are observing a semi.
Balance and return to normalcy due to the tight and centralized response systems in place. We believe overall the impact of COVID-19 to our operations will be manageable.
As we close out the year and head into Twentytwenty. One however, there is no assurance.
That they still evolving pandemic will not impact our supply resources transportation the hospitals, where the studies are being conducted our clinical sites in which event, we will quickly respond and adapt at.
At this point in time, I'll turn the call back over to will.
Thank you Alex.
So I'll give.
Everybody some financial highlights.
A few words on our financial highlights for our third quarter, our press release and 10 details of our financial results.
Rather than read through all of these details my comments today will be well address the key highlights for the three months ending September thirtyth.
Kathy recognized 4.2 milling dollar revenues.
Consisting prime prime array of product sales of Eva model.
That launched in August 2019.
For the full year 2020 revenue, we expect to rich at least $14 million performing better than previously forecasted.
Our cost of revenue this quarter was reduced compared to last quarter due to transition to a new manufacturer, resulting in decreased in the unit cost of inventories of EUV umbrella.
As of Sept as of September Thirtyth, 2020, cash and cash equivalents totalled approximately $74.6 million compared to 44.9 million as of June Thirtyth 2020.
As previously reported reported the company did an under written public offering in July 20 July 2020, generating gross proceeds of approximately 43.7 million.
This financing brought in additional long term house kit dedicated financial institutions, taking into consideration the cash the cash cash equivalents.
Balance as of September Thirtyth.
2020, the company has sufficient resources to fund its operations at least through 2021.
We continue to be extremely thoughtful on how we deploy our cash with a focus on building shareholder value.
Before we turn the call back to the operator, we hope to have come back to you our optimism and Kathy is positive outlook.
The bottom line is we are committed to building a major integrated biopharmaceutical company using China as our initial market.
We intend to increase our pace of acquiring assets and.
And we will be tactical and entrepreneurs neural about it couple in clinical development partnerships with venture investment in our partners.
And we will continue to build and strengthen our R&D capacities.
Further strengthen our sales and marketing team and to expand the rich <unk> of our business development activities.
It is an exciting time to be part of cash and we look forward to future updates as we hit all milestones.
I will now turn it to the operator for questions operator.
We will now begin the question and answer session. If you would like to ask a question. Please press Star then the number one on your telephone keypad.
Again, that's fine then the number one on your telephone keypad. Please stand by while we compile documenting roster.
Your first question comes from the line of Sean Lee. Please go ahead.
Good afternoon, guys and thanks for taking my questions.
See Evomela revenue is picking up I was wondering whether you can provide with them I will provide us with a little bit more color on the commercial opportunity. There for example.
What percentage of hospitals and doctors on your targets that Youre targeting have you reached out to what maybe what percentage of them have already ordered or use the drug like where do you see the room for growth over the next one to two years.
Who are actually I.
Actually.
Our president Larry powering can address that question much better. Unfortunately, its a very early morning time in China. He is not on the call our take a shot at it added as I understand it.
We think this is still a very early phase of launching evomela in China.
Because thanks to a few very mature multiple myeloma company in China. They historically has come bands physician that track.
Transplant is secondary to.
To our colleagues.
Transplants should be.
The drug is already as good as transplant, but so we are doing almost a re education of the.
Physicians in China that for many patients transplanted should be the first line treatment.
It has much better clinical outcome for many many patients so I think that the in terms of the.
The commercialization with this drug and that the.
It's still at the very early phase of its commercialization and of the second comment I want to make is.
The potential of our.
Autologous transplant is still limited by.
The limited availability of transplant centers in China.
For the top academic center I'm pretty confident we probably have already detailed a majority of it.
But we're seeing signs that even secondary hospitals are building out transplant centers. So we believe that the potential of this molecule and or the potential of the autologous transplant procedures is much larger in China than probably we anticipated.
And there's also potentially other utility of Melphalan in other indications and we are kind of starting to explore I don't know if that answers. Your question Sean. Thank you. So much for your always for your support.
That was very helpful.
My second question is going to be.
Twelvel Tulsa totaled six.
Nice.
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Through this very unique molecules as one day, but a lot a little more on the exact structure of the deal.
Well Casey has the commercial lives the greater China do you guys are you guys solely responsible for development in the area as well or the development is going to be a part of that process between the.
Guys on Basel bent.
So we will do you want to address that or shall I take it yes, you can take it yes. So the deal is for.
For us that we are responsible for the development in the greater China area. However, this is a true collaboration as we look forward to registering the drug under the import drug registration pathway.
Our programs will be hand in glove with bio invent so the joint steering Committee.
Will dictate how the studies are being conducted the targets et cetera. So it will be a true collaboration in terms of the clinical development program on a global basis.
Does that so I take that as a.
Yeah, the drug will be developed more in the U.S. until it's ready or pivotal study either in China or the U.S. or both.
Before they get for registration in China.
John I would say that that's not entirely correct.
We are working towards.
True collaboration with bio invent to establish.
Tribute to the phase two program as soon as feasible so.
So we will be working towards filing all the regulatory documents, which will enable us to participate in the global development program, which may not be a registration at this point in time.
It may be an exploratory our signal searching study et cetera.
Understood.
Yes, Sean maybe.
Yes, Sean I, maybe our inject a little bit comment here, because I think there is still a.
Under appreciation.
The vast patient population in China.
Especially in oncology space, because China, probably today is that number one cancer incidence country in the world and also the Chinese regulatory agency finally, as part of the in the IC age, it's really actually I always say this is the first time.
In the 5000 years, China as part of the IC age people poverty I'd highlight really.
Graph grasp the importance of that so I think we are going to experimentation a clinical development strategy with some of our partner.
Which is.
For instance, this drug if they if that by event.
Took this company into a global phase two trial.
We probably you mean Cassidy in China, we will become part of the global phase two clinical trial, but we might be able to enroll certain patients faster and cheaper.
Cheaper and more efficient than a lot of oncology centers in other countries and that is where you think that atrophy can add tremendous value to adding clinical data us too important molecules like the the FC receptor inhibitor, so does that make.
We are.
Yes.
Yes.
Very helpful.
Maybe you could help us about a little more about the.
Austerity on clinical development.
Can you can you say that again I didn't catch that up.
Maybe can you.
A lot there is a lot more on what's the cost sharing structure between you and volume but.
For the clinical development.
Alex you want to make a comment on that or.
I can take a shot on the understanding is that I mean, the costs in China, we will be at some of the costs in China.
Yes, we will.
We will bear the cost or the development program Jim.
Yes. This is Jim Goss from yes, we.
Kathy will be responsible for all.
Nickel costs incurred in China.
Since that is our our territory, but as we say we will also have the right to participate in all global clinical trials.
And the sites that we.
Yes up in running independent patients that we recruit and enroll into those trials in China will be our cost.
Great.
My final question is a bit of a high level one now with a good good.
Good stable about drugs already your portfolio I was wondering whether you are still looking to in licensing additional products and if so whats the expected timing for these and also are you only going to be going forward are you all going to be looking to license products for the greater China area or maybe for the China and the us markets.
Thanks.
We are very open minded right. So the if you look at our Cie you almost threex, we actually got the global rights of the CD 38, you won one loss rate so were not limited to China, but we think China is a great.
You know kind of the starting.
Market for us because we see that the global arbitrage opportunity.
China 1.4 billion people aged.
Has a high demand for innovative products globally.
But China is also a wonderful clinical.
Hello, Brian.
Market.
But were not going to limit ourselves to China market per se.
Ideally, we'd love to have you know multi billion dollar global assets right. So thats the associated the wireless three is a great example of that we own the global rights.
Lets see I'd want to three.
And we by the way on the global rights of our our COVID-19. The question is do we really want to launch COVID-19 in the US was already two products approved in the us it's unlikely right, but that drug in other.
Cost sensitive market might be actually a pretty good dry dock.
And Thats. Another comment is we probably will be extremely aggressive to add more drugs to our pipeline that's.
Thats, we have stated many shareholder meetings and that cash is going to be.
More aggressive moving forward to bringing in assets into the pipeline.
Okay, Great. That's all I help thanks for.
Taking my question.
Yes.
Thank you John.
Your next question comes from the line of setting.
Sedco. Please go ahead.
Paul.
Thanks quick question, Sean Sean managed to get a lot of mine and.
All right.
Oh, yes.
No.
In Eagle Mellow sales is that something we should consider normalized run rate.
Given that.
What's going on like that and think starting up and and things.
Yes, so on and off is in that 4 million four and a half million.
Grow on.
For modeling going forward.
We think so I mean, the China is pretty normalized.
The.
Rick with regard to the Coke in 19 situation and so we are only going to grow from this space right. So this is only the first year weighted.
We launched a product for Kathy so.
There's still a lot of Kinks, while walking out where we built it a commercial team last year. So it's a brand new team at the at the.
Global standard team and they are our team did a beautiful job for a niche drug like Eva Maaleh.
Were targeting over $14 million in the first year.
But that's really just the beginning right. It's the first before you can argue that Kathy first drug ever in its history right Oh sure. So.
Yes, so as I said at the very beginning at the very beginning of our commercial.
You know effort.
So.
So I personally expect to see number far better than this quarter.
Yes, certainly certainly I just wanted to make.
Make sure that we're not expecting that there wasn't extra channel fill this quarter and that the normal run rate. It is yes.
3 million so just minor.
Minor minor thing in the big yes.
Yes.
In the Big picture would you be willing to.
Data on what you see as.
Potential.
Market size in terms of Asian first of all the new jobs I think when we last spoke.
The party 19, you were thinking 30000 patients.
Sort of and that the incidence rate that's the total market right. That's a total.
Right right Catarina emerging country Katrina hunting is still going to be relatively expensive drug right. So the so so.
And if it's initially as a probably unlikely or be reimbursed by the government because it's.
Hi price so.
No we still we have not giving out any guideline guidance yet.
But you look at Gilliatt drug it's doing I think on the runway of doing about $1 billion a year and.
And obviously that pricing and much higher we think that the initial number should be.
Should be comparable to what Gil is doing right. So because China has five times more population for four to five times population, but pricing what really low. So there is still a lot of variable.
In terms of pricing and we are very.
Actively following.
The the drug ahead of us and our competitive drydock. So.
But the good thing is clinically we are really really moving forward.
So.
So I think we probably will be a little bit more comfortable to give you a guidance.
Little bit further into the.
Into that into the market.
Absolutely absolutely.
So of course my follow up would be do you have any thoughts in terms of target market size for some of the.
Some of the other drugs, but my guess is you're going to say.
Too early.
Yes, it's probably too early I think for our CD 38 I.
I mean, the big if it after we dosed 2030 patient next year.
Are we confident this is indeed, the best in class molecule right right. If everything we see in preclinical holds true.
Then I will be probably a lot more optimistic about this molecule.
And we all know Jane de Dollarize doing about $3 billion on CF.
CD 38 already.
It's a big molecule right.
So you know, we we probably will be a lot more confident about this molecule.
After we dosed.
A few patients basically right.
Can you remind me the bird length of time.
For those studies on the off chance that this latest wave of co bid.
She is out clinical clinical studies in the UK and France for animals.
Another six months or something like that what small start till finish time.
So the Alex Yeah, Yeah, the sites in France appear to be operating without too much interference from the COVID-19 pandemic at the present time in the UK, that's a different story.
Dave Phelps the burden.
Endemic but we anticipate further.
First quarter.
The first patient will be in and by the end of the year, we will be substantially through the dose escalation study, which will carry on probably into.
2021.
Okay, and Wendy porn Adam.
Yes.
So we will report out at some point in time the ongoing study just the status of it but we will not provide any data until we're finished the dose escalation portion of this okay.
Excellent. Thank you so much.
Thank you.
Again to ask a question. Please press Star then the number one on your telephone keypad again, that's star then the number one on your telephone keypad.
Your next question comes from the line of Leland Gershell. Please go ahead.
Hi, guys I mean, we will essentially going the question.
Wanted to just ask about Eva Miller, two more questions in terms of the drivers there one to ask if you're seeing any use michelito setting or that's really all driven by.
Transplant in myeloma and also want to ask about gross margins with the improvement are we reaching kind of a steady state gross margin or should we expect continued improvement going forward one other follow up thanks.
So Alex do you want to make comments on this or you want me to do it.
Sure. It Leland. Unfortunately, we don't have the specific data on the use of Eva Melo for patients with relapse refractory multiple myeloma that are not undergoing transplant at this point in time, but that analytical data gathering is.
The high interest to us.
There is also other potential off label uses which we are not promoting and all were promoting per label and we're trying to carefully track that to understand who is using the product et cetera, but unfortunately, we can't give you a detailed breakdown in terms of the none.
Of the percentage of cases relative to a transplant versus non transplant setting for patients with multiple myeloma.
Mhm.
Okay, and just one in terms of yes in terms of cost of goods. So you can see it in this quarter our cost of goods sold has reduced quite dramatically.
It's because when we first launched our drug we used as a manufacturer was actually being wind down and we kind of backed them to manufacture last batch for us to get the drug approval and everything but we our team has done a wonderful job of.
After we launch the drug now we shifted to a lower cost manufacturer.
And I think our margin has improved dramatically it probably will only get better.
Uh huh.
So, but there might still be room for us to improve margin but.
What will keep you updated on that.
Okay, Great and then one question I have just on strategy with potential outpacing licensing of geographic opportunities that are outside of China.
For which you have the right. So for example for CLR, one or three you may look to slip.
The.
Greater China rights to another.
Commercial organization, just wondering if you have any.
Timelines in mind, so when that might happen for these types of programs or if it's really dependent on the data and the level of interest that you got from the potential suitors, yet as to when you might transfer you know other rights to another thanks, Yeah, we probably will be opportunistic a little bit.
I think because it depends on what we are adding on right. So right now were betting on the sea I'd.
Almost threex as about a molecule than the molecule.
On the market regarding to infusion reactions that ratable hostile binding add that the evening of.
Ease of administration. So if those I, we think right now that's our we believe that but that is not until we see some real patient data.
It's probably going to be hard to commands a large pharmaceuticals to make a bat big bad on it. So we probably are willing to bite the bullet and move forward.
And see how how it goes thats why I think foresee idea why most three next year is going to be a very pivotal year for us.
So, but we want to be opportunistic and if a large accompany that.
Do we truly believe this is what we believe in its other prohibit us to do a deal earlier right. So.
So.
But obviously with clinical data it will be a lot easier to convince a large player.
And well be strategic because.
You know we are building a commercial team in China. So we have access to market in China, but we don't necessarily have access to market in Japan or in Europe in the multiple myeloma space. So we probably would love to find partners has strong market access to those markets.
[music].
Right. Okay. That's very helpful. Thanks for the additional color and congratulations on the progress.
Thank you.
Secondly, Len.
Thanks.
We have reached the end of the question and answer session I would now let's hand, the conference back to see is high.
Permanent CEO Dr. Hill for closing remarks.
Well I think this is a.
Thank you very much for joining the call.
We believe Kathy is at the very big.
It's really at the very beginning of building a fully integrated pharmaceutical company leveraging global innovation.
China cancer patient population and the new regulatory innovation in China.
The Sky is the limit in our China has 1.4 billion people agent and people are also getting wealthier.
The life Sciences innovation, we look at globally man I think way living in such a wonderful time.
Since our getting beat being invented literally every day.
You guys here about the faxing story for COVID-19 today, and so I think we're living an extremely exciting time.
When we were grateful for the investors.
Trust and Kathy.
Our team is doing a great job and were here to.
Diligently execute our milestones to show to our shareholders that you know.
By investing Kathy.
You know we may do more may be able to do wonders and thank you so much.
It is and gentlemen. This concludes today's conference call. Thank you for participating you may now disconnect.
Thank you.
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