Q3 2020 Capricor Therapeutics Inc Earnings Call

Greetings and welcome to the Capricor Therapeutics, Inc. third quarter 2020 earnings call.

At this time all participants are in a listen only.

A brief question answer session will follow the formal presentation.

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As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host CFO AJ Bergmann. Thanks.

Thank you you may begin.

Thank you before we start I would like to state that we will be making certain forward looking statements. During todays presentation. These statements may include statements regarding among other things the efficacy safety and intended utilization of our product candidates for future research and development plans, including our anticipated conduct.

And timing of preclinical and clinical studies are planned to present or report additional data our plans regarding regulatory filings potential regulatory developments involving our product candidates.

And our possible uses of existing cash and investment resources. These forward looking statements are based on current information assumptions and expectations that are subject to change and involve a number of risks and on.

Uncertainties that may cause our actual results to differ materially from those contained in the forward looking statements. These and other risks are described in our periodic filings made with the FCC cleaner quarterly and annual reports you are cautioned not to place undue reliance on these forward looking statements, we disclaim any obligation to update such statements.

With that I will turn the call over to Linda Marbn CEO.

Good afternoon, and thank you for joining our third quarter earnings call and corporate update I will begin my remarks with an update on our rapidly advancing engineered accidentally platform, which include our EM orally and VLP vaccine candidate.

I will then update you on cap tirreno to our cell therapy.

The product for the treatment of patients with later stage to shed muscular dystrophy and patients would COVID-19.

Now, let's talk about the next chapter for Capricor. This.

This has been an exciting week for all of us, but the announcement on Monday by Pfizer other potentially effective vaccine for COVID-19, most.

Most.

Most importantly, it is likely that humanity will benefit, but also of great importance to capricor and our exosome platform for drug delivery that we are building.

Pfizer's vaccine as an add on a vaccine and demonstration of its effectiveness could change backs analogy and in fact, even there.

Pubic permanently.

We have anticipated this outcome and believe that the best delivery partner for M&A is an engineered exosomes and that is exactly what we have been working on for the better part of 2020.

We are now ready to develop our needs for therapeutic delivery and are excited to be part.

This new wave of opportunities and biotechnology.

The success of the vaccine candidate as validating for our platform and paves the way for our potential jet into vaccines that could confer greater cellular immunity as well as generate antibodies.

Our vaccine candidates express more viral.

Proteins to elicit potentially broader coverage.

More importantly, the recent success of an M&A vaccine candidate presents many important opportunities for Capricor as we build our ordinary axis home delivery platform, which includes an expanded focus on engineered exosomes to treat.

Page or prevent a variety of different diseases and disorders.

We have been working on zones for the last two years and realize they could potentially revolutionise biotechnology very much like antibody therapy did over two decades ago.

Now earlier this week, we announced.

The publication of what we consider to be our most important publication since our founding.

We have shown that Exosomes made from a standard commercially available cell line and loaded with M. Arnie for four viral proteins and due to a long lasting cellular and Hugh moral immunity and mice potentially.

He is setting the stage for clinical trial.

Our current thinking is that the M&A vaccine, we haven't developments could be an important and necessary stepping stone towards gen. Two vaccines that illicit broader immune protections and or display enhanced delivery on expression.

Okay.

The paper, which can be found on bio archive I Act establishes the first fruits of our new accident oriented research programs.

Earlier this year, we began rebuilding our research team focused on the development of a novel engineered axis.

On top form.

Our goal is to develop accident product by harnessing the natural features that Exosomes possess act.

Exosomes are the bodys own drug delivery vehicle produced by also abundant in all bio fluids and demonstrated to be safe by decades of transfusion and transplantation medicine.

They are safe and non toxic unlike with the nanoparticles, which can have toxic side effects.

Additionally, they can be directed to the cell type that we'd like to treat and are readily able to deliver payload to the self directing protein expression.

These are goals of drug delivery that have been.

Moving into balance for many years and now we believe that the exosomes can provide the answer to that biological conundrum too.

To that end and as you have heard us talked about extensively our first strategic step was to begin working with a world expert in Exosomes Dr., Stephen Gould Professor of biological chemistry.

At Johns Hopkins University.

Dr Rules has worked in the exit downfield for nearly two decades and works with Capricor, both as an executive consultant and scientific collaborators.

Dr. Gould has helped accelerate the exosome program within Capricor, bringing new ideas innovative technology and.

Valuable know, how well also helping us to assemble a team of scientists and our Los Angeles labs to work on product development quality control and manufacturing.

To support this work we have entered into a sponsored research agreement with Johns Hopkins University.

The result is a dynamic axes I'm focused.

Street Research team with approximately 10 phds working to build exits on technologies in collaboration with Dr. rules.

With a focus on execution mediated therapeutics, the COVID-19 pandemic presented us with an immediate opportunity to determine whether exosomes might offer advantages.

Relative to EM are nay vaccines in development costs.

Currently results from Pfizer, Madonna and others appear to justify the inclusion of spike expressing and marinades as the primary component of an effective vaccine at least for short term protection.

Our work has been designed to Ics.

Stan these advances by developing a two component vaccine one with M&A driving expression of spike well the second tomorrow night drives long lasting protective cellular immune responses to other viral proteins.

We have especially targeted the nucleo capsid or end protein.

Which is a major target of the immune response in COVID-19 patients and the basis impact of many commercial antibody test.

The results of our initial study posted on bio Rx Ivy last Friday demonstrate the general validity of this approach by.

I keep mentioning the induction of immune responses to both bike and Nucleo capsid, including antigen specific immune responses of CD four positive and CD eight positive T cells nearly two months following the final injection burden.

Furthermore, we use this initial study to explore the effect of the live.

Livery and marinades via Exosomes, which are normal biological constituents of human bodies, non toxic and well tolerated.

Unlike certain Olympic delivery vehicles that are themselves inflammatory and at high doses toxic we detected no adverse reactions upon administration.

Dr of Exosome delivered marni in mice.

In fact.

Certain observations raised the possibility that inclusion of exit them into our formulation may even enhance functional marinade delivery, which if true they offer an avenue for increased potency for a wide array of M&A based.

<unk> products, we will be submitting this data to a peer reviewed journal shortly.

And a parallel yeah independent series of experiments. We have also developed a platform for producing Sars koby to virus like particles that contain high levels of spike membrane an envelope with.

Within an exosome side vehicle that cycle.

Originally developed for research purposes, as a non infectious mimic other mature virus particle we have found that Sars koby to be Lps elicits potent anti spike immune response.

Produced in a human cell line that has been.

Prolong ago adapted for the production of Biologics are VLP technology is not based on production of a single protein, but rather on the inducible coordinated expression of multiple viral proteins. This.

This work relates directly to our efforts to generate engineered exosomes as a same basic tech.

The lower Jeeze underlie both approaches.

In fact, all of our work in the fight against Sars cope to otherwise known as COVID-19 is merely a prelude to our development of Exosome based vaccines and therapeutics, but the ultimate goal of generating formulations of engineered axis zones, and synthetic MRT used to prevent.

Treat human disease.

It should also be noted our two vaccine programs are rapidly adaptable if mutant viruses emerged that escape the limits of our current formulation.

We can redesign the vaccines dr. immunity to these novel forms we.

We realize there are various vaccines in advance.

Technical development, but what we have established by our initial studies or the potential exosomes as an R&D delivery vehicle. The fact that tandem marinade vaccination can elicit a broader immune response to multiple viral proteins and that the principles of Exosome engineering can be applied to the.

Production of safe Noninfectious VLP is that maybe the virus structure, and then and induce potent immune reactions.

As we continue to refine our technologies and products in the fight against Coven 18, we're extending our work to the production of therapeutics with monogenic metabolic and <unk>.

For neurologic diseases as potential prime targets, there are many opportunities to explore.

Let me elaborate for a moment you.

Using this platform, we can load our days or proteins or even small molecules into the exosomes and target them therapeutically.

Our vision is that we will expand our platform.

Our new thing the axis films with a variety of our news.

Then messenger on a micro are they or silencing our name.

To drive protein expression and the direction next the series to treat the disease process for instance, it could potentially be a wage replaced broken proteins, while we wait for gene therapies to provide.

Lifelong chores.

We have an exciting technology that we envision may be a periodic infusion lead to replacement proteins in monogenic diseases or those metabolic diseases or lack of a certain protein can be sales.

With both products our plan is to continue to build apart.

Platform by partnering licensing and developing some indications for internal development.

These are indeed exciting times, please stay tuned for more updates on our vaccine candidates and continued platform expansion.

I would also like to provide you with an update on our Duchenne muscular dystrophy program.

Well, we are laser focused as you can see on building the axes own platform technology, we are still hard at work on our DMD program.

As you recall, we have had very positive data from the hope to clinical trial, which was a randomized double blind placebo controlled trial of cap 10, or two and non and.

Ambulant boys and young men with advanced DMD.

The treated subjects had on average a 2.4 point improvement over placebo patients underperformance of the upper limb or pull score.

This was on top of steroids, which is standard of care in DMD men.

Many products and clinical do.

Dahlman for DMD have failed because they test their product and steroid naive subjects, but.

The fact that our patients improved while receiving optimal steroid treatment is very important.

The F.D.A.M. published work suggests that a one point improvement in the poll could be clinically relevant and we saw a 2.4 point change.

Change again, demonstrating the likelihood that have tended to improve upper limb function in DMD in a way that could delay disease and improved quality of life.

We also saw improvements in the hearts of patients as measured by ejection fraction. The most important measure of cardiac function there had been no products to date.

The lead to the type of improvements in cardiac function in DMD that we have shown with captain are too.

As you May know cardiomyopathy as the number one cause of death in patients with DMD. So.

So anything that can delay or prevent that decline is highly desirable the DMD community along with us at Capricor.

We are extremely encouraged by this data.

At this time as we have previously stated the FDA has recommended that we do a phase III clinical trial, which we believe will delay this important therapy from getting to those with DMD.

We are committed to boys and young men core later stages of this disease and we will continue our efforts.

Towards making capital no two available to all DMD patients.

We are in discussions with the FDA with respect to the size of a potential phase three study.

Our statisticians estimate a clinical trial size of approximately 50 to 70 patients. However.

However at this time however.

Capricors working with after <unk> to explore alternative ways to move this program forward.

We also are having active discussions with several potential strategic partners for this program and we will keep you updated as to our progress.

Finally, I want to update you on our COVID-19 clinical program.

Graham using capital to.

This program is testing cap tenants, who and treating severe patients would COVID-19 severe means those that are hospitalized and meeting oxygen supplementation, but who are not completely ventilator dependent.

We initiated an emergency use authorization program in the spring when covertly.

Team was first peaking and have results that suggested cap turn or two with acting as expected, which was anticipated immunomodulator and seemed effective at reducing the impact of the cytokine storm that is the part of COVID-19 that often rises patients. These results were not unexpected.

Based on this important program, we realized that cap tenants, who could potentially be very important in treating the later stages of COVID-19.

Based on a series of patients treated under the emergency use authorization protocol, we published the patients treated with cap tenants, who demonstrated some improvements and biomarkers of cytokines.

Hi, storm, such as White blood cell counts IL six C reactive protein otherwise known as CRP and in some cases are reduced reliance on supplemental oxygen.

The data from these patients inform the design of a larger phase II clinical program to treat COVID-19 with capstone to.

Today I am delighted to share that we have now have an active clinical trial called inspire and are actively screening patients in this study of up to 60 patients.

With the current uptick in cases nationally and hospitalizations, increasing we believe we have a product candidate that is potentially poised to treat a group of patients.

Once those with severe disease for which very little has proven effective.

No as I had mentioned in the past we have worked closely with the United States Army Institute of surgical research and other collaborative Raiders to investigate the use of CDC exosomes, the potentially active ingredient of the sales to treat trauma.

Which has similar.

So the allowed the consequences of the cytokine storm associated with COVID-19.

Such as hyper quite gullibility elevation of inflammatory biomarkers renal dysfunction and others to qualify the.

The preclinical data from this important study should be published soon.

Please stay tuned for updates on trial progress.

Hello data analysis on this important program now.

Now I would like to thank you for your time and attention today I am proud to be at the helm of this company. During these exciting times and look forward to seeing the axon platform technology continue to evolve along with continuing to move capital to further along in clinical development.

And now I'll turn the call over to AJ for a brief update on the financials Asia.

Thanks Linda.

This afternoon's press release provided a summary of our third quarter ended.

September Thirtyth 2020 financials on a GAAP basis.

And you May also refer to our quarterly report on form 10-Q, which.

We expect to become available very soon and will be available on the FCC web site as well as the financial section of our website as of September Thirtyth 2020, the company's cash cash equivalents and marketable securities totaled approximately $35.3 million compared to approximately $9.9 million at December 31 2019.

Yes.

Additionally, in the third quarter of 2020, Capricor raised approximately $2 million in net proceeds at an average price of approximately $5.87 per share under our ATM program.

Now turning quickly to the financials in the first nine months of 2020, our net cash used in operating activities was approximately $6.2 million.

For the third quarter of 2020, excluding stock based compensation, our research and development expense was approximately $2.6 million compared to approximately 800000 in Q3 2019.

Again, excluding stock based compensation, our general and administrative expenses were approximately 885000 in Q3 2012.

Compared to approximately 750000 in Q3 2019.

Net loss for the nine months ended September Thirtyth, 2020 was approximately $9.5 million compared to a net loss of approximately $6.2 million for the first nine months of 2019 in summary, as we move forward, we continue to focus our expenses, but our compass.

Many on the advancement of our core pipeline programs as Linda articulated.

We will now open the line up for questions.

Thank you we will now be conducting a question and answer session. We would like to ask a question. Please press star one on your telephone keypad, but.

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Company. Your line is in the question queue.

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One moment, please while we poll for your questions.

Our first question comes from the line of Joseph Tangents of H.C. Wainwright. Please proceed with your questions.

Good afternoon, guys. This is actually in line, we're not calling for Joel.

Congratulations on the progress across the pipeline and another question regarding the exit them.

But in a vaccine. This is obviously very exciting and as you mentioned Linda during your remarks.

Or Phil.

In the gas deliveries in development at on the M&A vaccine.

So in in the in the field. So I was wondering what would be a key elements.

That would make you had been seen in one of the EPS active choice is moving forward.

Yes. Thank you for the question Manuel and I do have Dr., Stephen Golden John Hopkins also on the line tougher.

To further answer the question, but I think the thing that we're most excited about is the development of what appears to be a long lasting cellular.

Ill based immunity this.

This is due to some of the proprietary ways in which we are making the vaccine its little bit different using the exosomes were able to utilize some techniques to drive cellular immunity that may not be possible with ellipta nanoparticle and so as we've shown in the paper.

We're able to see a long lasting response, even several months after the last boost which indicates long lasting immunity. You also you know the.

The data was very exciting that we've seen so far is very short term.

And in a relatively few patients the nice thing about the Exosomes is that they are nontoxic they should have absolute.

Really no negative effects when delivered to people and so we believe that the exosomes as a delivery vehicle of an M&A vaccine is also beneficial and then finally of course using more of the viral proteins. The four structural viral proteins focusing on the and the EPS as I said in my prepared remarks, the end protein is.

What is so prevalent in the facts and the virus that it's even what we look for when we look for an antibody response. So we're thinking that it will have a broader based.

The ability to drive immunity. So in summary, more proteins broader based immunity long lasting.

T cell or cellular immunity.

Safe and on time.

Toxic all lead to what we think will be a very important gen. Two vaccine.

Got it and new passionately answer to this question already but.

Oh great.

Was that related to.

Potential compiled isn't really that it seems.

Scenes like how do you think you'll have a data compared to.

So the clinical data available for yes.

Yes, so we don't have clinical data to compare yet we're gearing up to get into the clinic for sure hoping to do a phase one study in 2021.

And then we'll have apples to apples comparisons.

For now what we're focusing on is the fact that we think.

That the vaccine will be an important.

You are an important vaccine for use in treatment of covered or other types of.

Viral disorders, because how very rapidly marinade can be shifted and change for use in different vaccines.

Sure No I meant actually.

And then picking code base. Thank.

That gives you kind of compatible like clinical data available for other vaccines, yes.

You can't compare preclinical to clinical what I can say is we have a very clear path forward to the clinic okay.

Well, if you want to answer.

[music].

No I think you addressed.

And I would just say the only thing I would add is that we're getting cellular immune responses two months out to the nuclear caps approaching and this of course, despite only vaccines don't try to generate that type of immunity. So at that level that that's a.

Dip a major difference.

Got it thank you for that.

With regards to cost cannot to can you give us a little bit more color on what do you think could be an antibiotic platform or the them as opposed to phase three study.

Yeah. So we're talking to every day. There's you know we would like to have them consider the concept of accelerated approval, we've been saying that for a while we've been working towards that for a while I'm. During the current stage of a state of the universe with the pandemic, although now things could be looking up.

Clinical trials have been very difficult to enroll we would feel a little remiss in our job and trying to protect and defend human life by bringing people out to do a clinical trial.

Whereas if they could go to for instance, a local infusion center, we have a great opportunity to treat a a lot of the duchenne patients that could.

Would qualify for cap 10 are too. So we're trying to see if the agency has some bandwidth to think about that type of a program. We're very appreciative of the efforts that they've made to work with us.

And we are excited by the quality of the data, which is why I highlighted it again today I think it's warranted.

To note that the clinical data is really excellent and we hope that we'll be able to provide the therapeutic to the boys and young men with DMD very soon.

Got it. Thank you and then just last question if I can on when it got to the entire study can you remind us how long do you think do you expect the study.

I need to be and how many centers of screening patients.

Yup. So we haven't provided enrollment updates as yet what I can tell you is with the uptick in cases nationally in the amount of hospitalization that is following.

Following on from that.

We're expecting that it will enroll relatively rapidly.

We have even a site in Texas, where as we all know they just surpassed 1 million cases.

Yesterday so.

We're going to be going for up to 10 sites in the United States and we expect that we will have data on this trial.

Fairly soon but stay tuned fairly soon meaning.

Getting into 2021 sometime.

Sure. Thank you very much and go back to the queue.

Thank you. Our next question is coming from the line of Jason Mccarthy with Maxim Group. Please proceed with your question.

Hey, guys. Thanks for taking the questions I congratulate.

Actions on all the progress in it seems like this so.

All the bad that co because it's like a serendipitous.

Chance to get the Exosome platform front and center can you talk just a little bit about.

The way you are delivering more in a.

With the Exosomes, because pfizer not with Exosomes.

Is there with M&A, obviously, they are having some challenges now with shipping and cold chain did the exosome platform or the Exosomes amenable to not meeting minus 80 degrees.

Yeah, that's one of the things that we're working on is seeing if we can change the storefront.

Relations I'm Curt.

Currently we have been working with minus 80, just because everybody you know nodes that are in a can degrade very quickly and so it's the safest way to transport, our ne but Steve I don't know if you want to comment a little bit on our efforts on this under behalf happens this.

[noise].

I don't have anything specific to add other than to reinforce that this is a very active.

<unk> of work that's ongoing in the company and we're hopeful I'm a little hopeful that we can you know overcome that hurdle, but there's we don't we don't have enough data to make a comment.

About it.

Okay. This is the exosomes provide more stability to the MRT molecule, even though it requires minus 80.

You have spike and and protein.

Et cetera et cetera, So you get this more robust kind of.

Immune response versus what the other groups might be getting.

No actually those are very stable there even stable at room temperature, there really actually hard to degrade.

Next is combined with.

So far and they are a little bit of a different story and that's what we're working on and so we are aware of the conundrum faced with you know the coal stores the stability of the shipping.

And that kind of thing and so with our Gen. Two vaccine program one of the things that we're working on is you know the sort of chain of storage and shipping.

Stability and so stay tuned for more updates on that we're very excited at the opportunity.

Sure and then on the inspire trial can you walk us through what the endpoints of that trial will be in severe patients will be reduced mortality time in hospital.

Days to ventilation and can you help.

Help us understand a little bit more about you basically just hit on several of them. So we're it's of course, you know mostly focusing on safety. Although it is a phase two we've built in a composite endpoint, we're looking at hospitalization mortality time and I see you.

And then a variety of Biomarkers and physiologic manner.

Big and stations of the cytokine storm. So we're looking at all of those things where sort of a primary focus on days of hospitalization.

Got you and when do you expect an update on any potential partnering discussions around the DMD program.

Yes, so what I can say is where I'm in active discussions with several partners at this time obviously.

In my opinion anyway, a highly desirable asset to partner with us on and and moved very quickly towards a registration and commercialization.

And so we'll keep you updated as soon as we have any tangible.

Well news.

Gotcha, and then just last question sort of going back to the axis on platform. You you had mentioned using VLP.

Given that their exosomes to that.

Mitigate some of the.

Extraction and purification steps that are there.

Group's making VLP is use and just whole cell lines and just take from there not specifically the exosomes.

Yes. So this is one of the programs I am most excited about and.

We have some really interesting opportunities with that program because of how unique the exosomes are.

And.

There are no becoming.

Becoming a VLP and using them as a VLP, Steve you want to provide any more color on that program.

Yes, just even a more general comment about what what people refer to as the VLP. The definition of that term is quite loose.

I will.

Simply say that our DLP is distinct from anybody elses.

That are leased vehicle, leading candidates that are considered DLP isn't that we're making our Lps are using multiple viral proteins fats proteins that.

The structure of the the infectious Miriam.

So they have the same type of secular structure. The same protein structures. They don't have any viral arnie in them so they're completely sales.

But they are designed to really mimic the structure of viral particles in that sense. There about the closest thing you can come to an end and inactivated by.

Hello.

Vaccine.

Of course, those are very effective types of vaccines, but they are dangerous so dangerous to make and there's always a risk of incomplete Kelly and then getting some tax maybe people.

Disease during the vaccine process, so ours are a bit different than others.

And as Linda said were.

Very excited by our preliminary results in small animal studies, and we think it's going to be quite successful is.

Is there an opportunity to get non dilutive funding.

Grasser manager or some other source for this program given the anomaly.

[laughter], there's always the past.

The ability of getting non dilutive funding.

Yep.

And actually take that Jason So again, you're relatively precedent yet there theres great opportunity, especially for that program nothing unique in the space and so we are actively pursuing some opportunities and we'll keep you guys updated as that becomes clear if we get that perhaps.

Successful.

Well they compete for some sorry.

Got it thank you.

Thanks, Jason Thanks, Jason.

Thank you. Our next question is coming from the line of Alan Leon Biowatch News. Please proceed with your questions.

Thanks for taking my questions good to hear from you.

Dr.

Hey, Jay and Dr. Linda.

I might ask a a little bit more about the additional utility of the of working.

Working on the M protein that you've made.

And some of the additional benefits it confers and I recognize this might be theoretical but isn't there a little bit of a risk.

Gherkins that got invoking EPS.

Spiked protein immunity may not help and sometimes even me.

Maybe even hurt having a target or a vaccine that would work for the M protein helps to provide additional margin protection or safety or efficacy.

So I'm going to ask Steve who is my Guru on all things.

Vaccine related to answer that one.

Yeah.

Oh, Yeah, I think then.

Easiest way to start answering that question is just call your attention to a number of studies by groups across Uh Huh.

<unk> in various different countries that have established quite clearly in in non human primate models and then more recently in a retrospective studies of patients.

Yes, there's a quite good immunity that builds up as a consequence of viral infection.

When he.

Oh the animals are in fact, it was sorry, because they're going to be generating in the bodies and cellular immune responses to a large number of.

Viral proteins not just spike.

So given the empirical evidence that infection leads to protective immunity.

It would be.

Ideal to how the vaccine that mimic the natural immune responses to some extent not as practical limitations on this is really good rational reasons to start with a spike focused vaccine.

And we knew that this would be the the primary focus in the early stages and that's why we started off.

Hi, presuming that a spike.

M&A would be one component of the vaccine and then to try to see whether we can simultaneously induce immunity to other proteins. So that's what your question is sort of anticipating.

Is that yes.

Generating.

That seems that raise immune responses to a broad array of key viral proteins have.

Our priority a better chance of.

Providing protection to a large percentage of the population that's long lasting and that's why we've taken the strategies we have.

Yeah.

Maybe just slightly redundant, but I'm a little bit slow you caught my attention. When you thought about you know the best.

Trying to get the natural immunity within and activate it form the things I remember what the old live virus vaccines, which are really nice the durability of response.

The efficacy eras.

Parts and also the correct antigen specific instructions.

Okay.

And.

With that context I almost want to re ask the question can you walk me through a little bit more about M.R.M. on a.

Approach or the presentation using local films and.

And what you hope to.

Two.

What you hope to achieve and I think having a covered a correct me and say you know what you know about you know those programs are wrong, but that's why that's why extrapolated from the from the discussion.

Okay. No you didn't have anything wrong and I'll try to make it a concise as possible. So you know.

The traditional or non recombinant vaccines will either be an attenuated why virus or killed or inactivated virus particle. So in if you immunized with an attenuated light virus, you will generate immune responses to every single protein encoded by the virus give or take.

Kills the virus particles are not as broad based because they are only composed of the structural protein to the virus in the case of Sars co. Two you've got more than two dozen proteins encoded by the virus. If there were an attenuated my buyers vaccine you would potentially be generating.

Responses to all those proteins, whereas a killed Sars co two virus, but primarily only be generating antibody responses to spike nuclear capsid and membrane, possibly on so those definitely to all types of vaccines. Our approach is to try to generate immune responses.

We knew a large number of viral proteins, focusing primarily on the structural protein, but in our not published but in our you know our latest iterations, we are actually incorporating some additional proteins in our inogen structure.

And that way, we have to get a better immune response.

Oh I congratulate you Mark Thank you for calling for excited however by the paper well. Thank you.

Thank you so much Alan and I. Thank you again, Steve.

As a reminder, if you would like to ask a question. Please press star one on your telephone keypad.

Sure.

There are no further questions at this time I would like to turn the floor back over to London Marek for closing comments.

In closing we continue to build on our recent progress and we expect Twentytwenty, one should be a transformational year for capricor.

We are committed to becoming a leading company in the development of cellular and Exosome based therapeutics for diseases.

We are focusing on advancing our products and delivering on our milestones I.

I would like to thank Dr. Gould, our clinical investigators and my colleagues at Capricor for their dedication and outstanding EPS. This quarter. Thank you.

And please say well.

Thank you. This does conclude today's conference you may disconnect. Your lines at this time. Thank you for your participation and have a great evening.