Q3 2021 Establishment Labs Holdings Inc Earnings Call
Good morning, ladies and gentlemen, and thank you for standing by and welcome to the establishment Labs' third quarter 2021 earnings call. At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation should you require operator assistance during the conference. Please press star.
Zero to single and operator. Please note this conference is being recorded.
Now I'll turn the conference over to your host Raj that Hoi interim CFO for establishment labs. Thank you you may begin.
Thank you operator, and thank you everyone for joining US with me today is <unk> Chief Executive Officer. Following our prepared remarks, we'll take your questions before we begin I would like to remind you that comments made by management. During this call will include forward looking statements within the meaning of federal Securities laws.
These include statements on establish a labs financial outlook and the company's plans and timing for product development and sales. These four.
Looking statements are based on management's current expectations and involve risks and uncertainties.
For a discussion of the principal risk factors and uncertainties that may affect our performance or cause actual results to differ materially from these statements I encourage you to review our most recent quarterly reports on Form 10-Q, and other rescue SEC filings, which are available on our website and establish a lapse dot com.
As a reminder, establish allows you received an investigational device exemption from the FDA from acute implants and is undergoing clinical trials to support regulatory approval in the United States, we generally seek to expanded geographies in which our products are regulatory approved please check with your local authority for specific product availability.
The content of this conference call contains time sensitive information accurate only as of the date of this live broadcast November nine 2021, except as required by law establishment labs undertakes no obligation to revise or otherwise update any statements to reflect events or circumstances. After the date of this call.
That it is my pleasure to turn the call over to our CEO Juan Jose.
Thank you Raj and good morning, everyone. I hope everyone is healthy and continues to remain safe.
Revenue in the third quarter of 2021 totaled $29 million, 28% increase over the third quarter of 2020.
The continued momentum in our business allowed us to deliver strong sales results again.
Even though the third quarter seasonally slower and the number of our major markets.
Our singular focus on women's health innovation and a track record of over 10 years of excellent clinical and aesthetic outcomes with Motiva implants continues to be the key for our market share gains and overall market growth.
We are raising our full year guidance for 2021 to a range of $124 million to $128 million. This is an upward revision from our previous guidance of $122 million to $126 million.
This updated outlook represents growth of 46% to 51% over 2020, and 38% to 43% over 2019.
This guidance captures our high level of confidence in our business. We continued to see healthy underlying market demand and are taking market share in geographies around the world.
While the pandemic continues to create some unusual quarter to quarter volatility we are confident that our market share gains and strong results will continue.
Raj will provide additional detail on our third quarter performance and updated outlook in a moment.
Before I turn the call over to him I would like to highlight several recent events.
I wanted to start by updating everyone in the series of important developments that took place over the last couple of weeks.
In October we received notice from the FDA that the agency had reviewed and agreed to a modular PMA submission shell for the aesthetic cohorts of a U S clinical trial disagree.
This agreement allows us to begin submitting to the FDA to four modules needed to support approval of our Motiva implants in the United States.
I am delighted to report that last week, we have submitted the first module of our PMA to the FDA.
Just first module covers that chemical characterization toxicology and biocompatibility of Motiva implants well.
While there is still a lot of work ahead of US. This is an important milestone on our path to U S approval.
As a reminder, in August of this year the aesthetic cohorts past the two year, Mark and we continue to track these patients with excellent follow up.
We also closed a revision reconstruction cohort earlier this year.
Still actively enrolling patients in the remaining reconstruction cohort of the trial, we will provide additional updates over the coming months on our progress towards launching our motiva implants into the United States, which remains the largest market for breast aesthetics and reconstruction in the world.
As a company committed to women's health with devoted the month of October which is breast cancer awareness month to support efforts around the world to create awareness and education and to help women into breast reconstruction journeys.
We directly supported more than 40 different campaigns worldwide across five continents. The campaigns looked to increase awareness and focused on education of our breast cancer, including breast self exam best practices and options for treatment and recovery.
We also directly supported three breast reconstruction initiatives in partnership with over 100 plastic surgeons.
Programs helped more than 300 women receive breast reconstruction surgery.
These campaigns included donations and financial support and were carried out in partnership with hospitals clinics doctors federations distribution partners and other essential stakeholders for establishment labs.
We also conducted a breast health campaign, among our employees in our different sites across the world.
As an example of these efforts on October 2nd we held our first Motiva breast health day at the Sunpower Hospital in Barcelona.
The day was devoted to women's sharing their experiences with breast reconstruction as part of their breast cancer recovery.
We plan to host similar events in other cities as part of our efforts to expand access to breast reconstruction.
Our pincus for power campaign was dedicated to sponsoring post mastectomy reconstruction procedures for women that could not access them.
In Brazil, 245 woman took part in the program. This year that is 245 women, who were able to receive a reconstruction after waiting up to a decade after their mastectomy.
We expanded the program into other countries this year, including Mexico, Colombia, Poland in Korea, and we will continue to build on this important initiative at.
At establishment labs, supporting improved access and providing the tools needed to improve outcomes in breast reconstruction are core to our mission as a women's health company, we believe our efforts and innovations in partnership with breast reconstruction surgeons can create new standards in post mastectomy care and further.
<unk> transformed breast cancer into a treatable disease from which women can fully recover.
An important first step for US is our motiva flora tissue expander in September 2nd we held an event at the London breast meeting Martin the official launch of Flora in Europe, and other CE Mark countries.
Laura has many advantages over other commercially available tissue expanders, including first of its kind RFID enabled port which allows for MRI imaging without artifacts during the time in expander is used after mastectomy.
By being non Mcnatt, ICH, Florida potentially opens new options for radiation oncology treatment during this stage of recovery.
Florida also features our self friendly smooth silk surface technology and several early users at the symposium in London noted improved patient comfort and healthier capsule formation with the expander.
Reconstruction surgeons understand the differentiation of the flora tissue expander and we are already seeing regular use in the key hospitals in Europe as the advantages of floor I become more widely known we are seeing more and more requests for our expander, including for us to participate in government tender programs.
While we have high expectations for the share we can take with the flora tissue expander in the existing the construction market flora is only the first step in our static breast Recon initiative, where establishment labs will offer tools and techniques that allow a woman to receive reconstructive surgeries that achieved the aesthetic ideal.
<unk> to which they aspire we.
We look forward to sharing more with you on these efforts over the next few months.
In October we announced the launch of Joy, our new premium patient centric breast aesthetics program Joy.
Joy includes our Motiva ergonomics, two implants, which were designed based on the overwhelming success of our ergonomics platform that has seen over 700000 implants sold since being launched in 2015.
The ergonomic design of these implants introduced a new dimension to breast aesthetics based on new patient comfort and natural tissue like characteristics <unk>.
<unk> two continues this evolution with improved chemical and mechanical properties and our unique super silicones, making them, 45% softer and 23% more adaptable all of which we believe will result in even greater patient satisfaction.
Joe. It also offers the Motiva Womens choice program. This first of its kind program allows women with joy to receive financial support from establishment labs should they choose to have their implants removed for any reason subject to the program terms as part of this program participating surgeons.
They agreed not to charge any additional fees for this procedure.
Joy is the foundation for a new digital model that speaks directly with women considering breast surgery with online interactive tools and we encourage you to experience it for yourself on our Motiva Dot health website.
Early interest enjoy has exceeded our expectations with woman proactively reaching out to surgeons in countries all over the world enquiring about when and how they can get joy.
On Motiva Mia, our minimally invasive breast enhancement procedure, we continued to perform new cases as well as tracking the original 100 patient cohort. We completed last April we have 100% follow up on this group of patients and the outcomes continued to support our belief that this approach will.
Transform breast aesthetics and significantly expand the market.
According to our market research this new category could grow to $5 billion, which approximately half of the opportunity from new patients that had not previously considered a breast augmentation.
Regulatory clearance in Europe for the tools that are part of the Motiva Mia system remains on track and should allow for a planned launch in 2022.
Our clinical and commercial efforts in China are ongoing and we continue to make progress in this regulatory process. Our plan is to launch Motiva in this fast growing market in the second half of 2022.
In the third quarter. We also published the latest update to our corporate sustainability review, which outlines our sustainability goals for the coming decade, and the progress we are making to achieve that.
The report includes a presentation of our company's value map stakeholders and materiality framework, we are particularly proud to have elevated women's health and wellbeing to a key matter reality topic around which we organize our activities alongside environment employees, social development and govern.
Issues.
We also recently published our updated post market surveillance data report, which now includes 11 year data on Motiva implants, as well as data from several country level independent registries.
Findings continue to show rates of capsular contracture of less than 1% with Motiva implants, and importantly, the rates are statistically equivalent into sub muscular soft fascial and sub lender. Our positions. This is something that is not seen with legacy implants, and again shows that our technical innovations can have.
A meaningful impact on clinical outcomes and expanse choices for both surgeons and patients.
Lastly, I want to highlight a recent addition to the team at establishment Labs, Jeffrey Bettinger recently joined as global head of people.
We're building a strong and skilled team to scale, our global operations as we prepare to enter new markets as well as offering new direct to consumer programs. We look forward to his contributions as we build and inspire organization for continued success I will now turn the call over to Raj to cover our financial.
Actual results.
Thank you Juan Jose.
<unk> momentum we have seen in our business carries into the third quarter. We saw strong sales growth again in what is normally a seasonally slower quarter and our operating expenses and cash RV manage effectively even as we invest in a number of new initiatives.
Total revenue for the quarter was $29 million.
Direct sales were approximately 41% of this total while distributor sales, which can fluctuate based on changes in inventory levels and the timing of Reorders made up the balance.
From a regional perspective sales in Europe comprised approximately 38% of global sales Asia Pacific and Middle East for 28% and Latin American made up the balance.
Brazil, which is our single largest market globally accounted for approximately 13, 4% of total quarterly sales.
Our reported gross profit for the third quarter was $19 6 million or 67, 6% of revenue compared to $15 1 million or 66, 6% of revenue for the same period in 2020.
The change in gross margin was a result of regional mix returning to more normalized levels as well as increased production volumes.
Our gross profit this quarter improved from 67, 1% reported in the second quarter of 2021.
Average selling prices in the third quarter were down slightly from the second quarter of this year.
As we have seen the last several quarters there will be fluctuations in gross margins. We continue to leave the best way to gauge our progress is on an aggregate basis over time, and we are comfortable with the gross margin in the mid 60% range over the near term.
SG&A expenses for the third quarter increased approximately $9 8 million to $24 8 million.
Compared to $15 million in the third quarter of 2020.
The increase in SG&A in the third quarter resulted from a normalization of business practices.
The significant disruption from a global pandemic in the year ago period.
R&D expenses for the third quarter increased approximately $1 2 million in the same quarter, a year ago to $3 9 million.
Expenses also returned to more normal levels, this quarter and will fluctuate quarter to quarter based on the timing of clinical trial and other expenses.
Total operating expenses for the third quarter were $28 7 million, an increase of approximately $10 $9 million from the year ago period.
The increase this period was again due primarily to the normalization of spending relative to a year ago.
Net loss from operations for the third quarter was $9 million compared to a net loss of $2 6 million in the year ago period.
Our cash position remained strong at $64 6 million as of September 30, compared to $84 $5 million on December 31.
As Juan Jose noted earlier, we are raising our annual sales guidance for 2021 to a range of $124 million to $128 million from the previous range of $122 million to $126 million.
The new range represents annual growth of 46% to 51%.
And our funding of our outlook, we took several factors into consideration the challenges from the pandemic have not fully receded. Some markets are not entirely open and we are mindful of global supply chain issues. Today, we have not experienced any disruption in our supply chain, but we are monitoring the situation closely.
Overall, there is considerable mentum in our business, we are taking share globally and we expect this will continue.
As we looked out in the rest of the P&L. We continue to expect to see spending levels increase as we prioritize investments and a significant number of development and commercialization programs we have underway.
Preparing for entry into new markets and advancing our pipeline of new technologies to drive future growth remains a top priority.
However, our strong revenue growth should result in our cash use continue to trend down from pre pandemic levels, even as we increased strategic investments.
Our company remains in a very strong competitive and financial position and with that I will turn the call back to Juan Jose.
Thank you Raj.
Already this quarter establishment labs cross $100 million in annual sales for the first time in our company's history.
This success is the clearest example that our strategy based on science, better safety and better aesthetic outcomes can support sustained share gains around the world.
As important as this milestone is for US we are still at the beginning of our story over.
Over the next few years, we will continue to redraw the map with multiple market expanding initiatives.
We will continue to innovate in our core markets by getting closer to women enduro aesthetic journey, which you can see the recent launch of Joy.
We will enter the United States and China, the world's largest markets, we will work to improve awareness access and outcomes worldwide in breast reconstruction with Earth static breast weakened program.
And Whit flora, leading those efforts and.
And we will launch Motiva Mia opening up a new category and new customer base in breast aesthetics.
<unk> is on the right path to be one of the leading companies in the statics and we are preparing for the next chapter in this growth story grounded solidly in our commitment to women's health and wellbeing.
We recently announced a renewed partnership with the International Chess Federation for establishment Labs is sponsoring professional womens chess events.
Our support of women's chess highlights our commitment to supporting empowered women and all aspects of life and you will see many more programs that promote women's health and wellbeing from us in the months and years ahead.
I will now turn the call over to the operator for your questions.
Thank you.
At this time, we'll be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. If at any time you wish to remove your question from the queue. Please press star two for participants using speaker equipment may be necessary to pick up your handset before pressing the star keys.
Please while we poll for questions.
Our first question is from Josh Jennings with Cowen.
Good morning, Thanks for taking my questions.
Exciting news that the FDA submission process is starting I was just wanted to initial.
Initial follow up on that update.
Just thinking through the modules that you are going to be submitted.
Does the FDA clearing the path for you to also include the clinical data module.
And will you submit that before three year data and get a response from the FDA or have they given you any more.
A confirmation that two year data could suffice for the submission for the aesthetics cohort.
Yes, Josh Thank you.
The first thing is of course, we are super excited by the fact that the.
The FDA approved our shell and that we have now submitted module, one which is basically chemistry toxicology and biocompatibility.
This important thing is that now that we start with the modular submission.
Chronogram than it is no longer about two year versus three year data. It is really by running through the modules module. Two is basically mechanical properties that it goes to module III with manufacturing and then the final one with clinical so when we get to that module with clinical.
We would submit with the data that we have at that time.
Understood. Thanks for those details and then just wanted to ask a question about guidance I think the midpoint suggests roughly $35 million in the fourth quarter or 30% revenue growth, which which would be an acceleration it seems like.
Sequential acceleration it seems like <unk> trends are improving in October and so far in November on the terms of Motiva aesthetic volumes.
Any more details you can provide in terms of assumptions baked in there improving trends.
More contribution from Florida, or economics, two in recon procedures and the other details would be helpful. Thanks, Thanks for taking my questions.
Hey, Josh it's Raj.
Yes, I think you've kind of outlined a lot of things going on right. I mean, clearly we did raise guidance, which gives you some indication of the.
Momentum in the business and how we're feeling about things.
As you noted there are a lot of good things coming from us in the market from us and so we remain very confident in where we are heading into the year.
Over the last couple of months of the year here.
Thank you.
Our next question is from Chris Cooley with Stephens.
Good morning, and congratulations on the stellar quarter and the continued progress with the FDA filing I. Appreciate you taking the questions here this morning.
For me, if we could just start off a little bit as you're thinking about raising the guidance now for the third consecutive time for this year.
Clearly you are taking share, but we're also still seeing pockets of variability and in market. So could you help us think a little bit more I guess kind of a follow on to Josh as prior question.
Regionally, where youre seeing strength and if this is more so driven by augmentation more so than recon I'm, assuming at this point, but just how youre seeing those markets or what's kind of I should say implicit in your guidance raise to the 46% to 51% here for the full year and then I have a quick follow on thank you.
Yes.
Yes, Thank you Chris.
Thank you.
The increase in our guidance shows a can.
<unk>.
To continue to gain share in all markets across the world and the fact that we feel strongly about how we are executing on that.
We are seeing situations in which you still have.
Some some places around the world, where <unk> does create challenges, but I think when you look across the world.
The situation is improving and it's it's working on our on our favor in many different ways. The most important thing for US is to continue to gain market share across all markets and we feel that we are doing that.
Most of the.
Of the revenue this year, we will continue to be aesthetics, although we are very happy to see the interest in in the flora tissue expander remember that market develops based on the tender process and.
That takes time to build on.
That's helpful. And then maybe just a quick follow on here.
The company is clearly.
Expanding globally at a very rapid pace and you have a number of initiatives whether they are clinical maher.
Marketing or just you know women's health and support going on across the globe and so could you help us think a little bit about timing of expenditures and client planned areas of investments that we should be contemplating as we look ahead into 'twenty. Two obviously you have the.
The U S regulatory process and the same in China before commercialization those launches thereafter.
Ongoing rollout of Motiva Mia I'm, just trying to think about where we should be contemplating incremental planned investments in 22 over 21.
Helped drive the sustainability of that growth that we're seeing now for the longer term. Thank you.
Yes, I think thats.
That's a key question because.
Of course, you know we plan to continue to invest to not only gain market share in the markets that we're in we're also expanding into the U S and China. So we're going to start preparing for for those launches.
And then we have these market expansion.
Initiatives like like EMEA and of course going into breast reconstruction. So all of those will require investments, but we are we are very confident that.
Those investments will pay off with not only increase market share, but also with new patients coming into the category of minimally invasive.
Yeah, maybe Chris if I could just add to that a little bit I think.
If you look at the various factors right to the very strong topline growth. We continue to put up strong gross margins we have.
Even as we continue to invest in the many opportunities in front of us, which you outlined.
We do expect our cash use will continue to moderate over time.
So we are in a very nice dynamic again with that very strong top line growth, allowing us to support the business and so again, we're going to keep investing but I think we're going to be judicious and we're in a good spot.
Thank you.
Our next question is from Anthony Petrone with Jefferies.
Thanks, Congrats on another strong quarter here.
I'm going to start maybe with with Brazil, the numbers out of Brazil, obviously largest market.
And so maybe just a little bit more detail on on where you sit in Brazil.
As a percent of total share in that market just considering.
The late August suspension of J&J Siltec brand in that market and I'll have a couple of follow ups.
Yes, we're very happy about our performance in Brazil This year.
We continue to gain market share.
Our view is that we have around 25% market share in Brazil, and some of that has come at the expense of.
Mentor.
And.
Most importantly, what we feel good about is that this year. We have gained about 400, new accounts and we are continuing to invest in medical education remember that's a market that has been traditionally a highly textured market and we are still the only brand offering.
A smooth implants and in our case with our proprietary surface technology of course. This requires some level of adaptational for surgeons when they moved from a highly textured implant towards smooth silk, but we are happy to see that all the investments that we have done in medical education are paying off.
And that surgeons and patients are seeing the difference with the Motiva implants.
Maybe just two quick follow ups here, maybe just a high level on where the discussion is amongst plastic surgeons.
Now that we have.
An increasing level of publications nature and sheer.
Just supporting smooth versus textured, so how are those discussions shifting.
Between plastic surgeons and our sales force that would be one and just a quick one on on the FDA when we look at.
Primary versus revision will that be separated for the two individual clearances and is there any update on the reconstruction cohort enrollment. Thanks again.
Okay.
Thanks, Anthony and I'll try to answer all of that so.
So first on on how patients perceive.
The overwhelming data that is being put out.
So we just.
Published our 11 year post market surveillance data one of the most important things in that is that we have now independent data from several of registries in Europe and in Australia.
So that provides further confirmation independent confirmation of the numbers that we have been seeing in our own registries on top of that what you see there is that there is no statistically significant difference in capsular contracture rates between sub muscular or so planned replacement.
And that is very important because thats not something that you see with legacy implants and it allows for surgeons to put the implants, where it's best for the patient without having to worry about capsular contracture and thats going to be fundamental when we come to the United States because a lot of surgeons.
Don't choose a soft language airplane because they are afraid of capsular contracture. So this is actually very important for us that we can provide these new choices for surgeons and then get what is best for the patient then when we move to.
New publications like the one from nature of course, you know it just gives confidence to the medical community that everything that we've been seeing over the years. It is further.
Complemented by all these publications. So we will continue to see more of those both clinical and scientific and that also is going to help with our FDA submissions because of course, they do look at the science and they do look at the data not only the data from the trial, but also real world data.
With regards to the data that will be presented in the final clinical module of course, that's going to include the primary and also the revision in the aesthetic cohorts with regards to recon cohorts of course during the pandemic.
It is the indication that was delayed.
Because of all these hospitals using space to treat COVID-19 patients.
We continue to make progress and.
We are still committed to finishing that cohort before the end of the year.
Okay.
Our next question is from Amit <unk> with Goldman Sachs.
Hi, This is still for me and thanks for the question.
Okay.
Maybe if you could opine on the recent FDA announcement about the new safety labeling requirements or for U S devices.
And how you might be positioned in a year or so when the decision comes up for for your product.
Yes on that.
Does.
Re commendations date from a year ago.
Now they've moved onto enforcement and remember we've been talking about this for years patients need to have more information ahead of making an informed decision and every times every time patients.
Get educated.
Given access to the information we are bound to win and that is very important to us. So we are in full.
Compliance with the international rules and when we come to the U S. We will follow the rules at the Fda's gives to us, but we are very happy to see that.
<unk> indication is going to be a key factor because when that happens we will be in front of that.
Just a quick follow up there given the lack of correlation of LCL from your device versus other devices is it possible that you could have a differentiated label by the time you come to the U S.
I think it's too early to tell but definitely the data on <unk> from a T. By implants is impressive now we are at one 8 million implants and more than 11 years in the market and when you think about the median time for <unk>.
LCL, it's around eight years, so we're way past that date and if you look at publications like Languorous obligation. We have is a low inflammatory surface and <unk> is a chronic inflammatory condition. So definitely that is.
That is the important part and.
We will see when.
When we get to that point, how our labeling will be.
Great. Thanks for that additional color I was hoping for my second one you could you could speak in a little bit more detail on the China timeline.
Affirmed today, how discussions and what stage, we're at with the FDA and what we should expect kind of the next steps moving forward both from from our commercial and clinical standpoint.
Yes look we are committed to our Chinese market entry and we are working on our commercial strategy. This is one of the largest and most dynamic opportunities in breast aesthetics, and we think of the Chinese market is a market, where we can do very well.
People, often speak of Korea, as being a benchmark to what happens in China and as you know we are the number one brand in South Korea and continued to perform very well. There. So we are hoping for a regulatory clearance in the second half of 2022 for a control launch shortly after.
We are making progress with our regulatory filings and.
Expect those to take place on time.
Thank you.
Our next question is from Matt Taylor with UBS.
Hi, Thanks for taking the question.
I just wanted to follow up on two key points and questions that have already been out. So the first one was just on the U S timeline.
So what I'm understanding from what you said is that you're able to move forward with the submission of these modules.
Does that mean that the gaining factor for the clinical module is no longer a three year follow up but more so the ability to submit the other module in front of that.
Well you can certainly look at it that way.
But I think the.
The way to approach it is when you follow the different modules and <unk>.
By the time, you get to the final module, which is the clinical one then we will have data at that timeframe, which will be the one that we submit.
We are very confident of this strategy and we are very happy to see that the FDA approved our shell and that we do.
And then have moved on with the submission of module one.
Okay.
Following that up are you able or have you had discussions with FDA about being able to use international data to support your submission.
So remember India.
In the FDA guidance.
They talk about real world data, so definitely we will use real world data.
To complement our dataset from U S.
We are working not only with registry data and in that sense. The independent registry data is very strong you can find our post market surveillance report online in our website and.
And look at it but.
Furthermore, we also have now over $1 8 million implants out there.
Definitely by the time, we submit to the FDA the clinical module, we will be including specific datasets from different areas around the world.
Okay. Okay.
And then I did want to ask you a follow up question on the recent FDA announcement about.
The safety requirements and the patient decision checklists theirs.
Theres really two questions here one is.
Do you think that those requirements could have any tamping down or negative effect on the market overall and then the other side of that coin is.
Another questioner was asking you about a differentiated label what is your understanding about.
How you would fall under this or not based on the data that you have.
Again, I think it's too early to tell what our labeling will be but definitely.
We can make claims based on the data that we submit to the FDA and based on the approval that we get from the FDA. So if you look at our international data. It is pretty impressive. So we use that all the time in the international market to differentiate ourselves.
Versus the other products.
With regards to the decision checklist, we see it as a positive.
Pollution for patients because now they will be fully aware of the.
The potential side effects of <unk>.
Breast implants, but more importantly.
They will have the information necessary to make that informed decision and when they have that we expect them to make a choice towards motiva implants.
Great Alright, thank you for the color.
Ladies and gentlemen, we have reached the end of the question and answer session I would now.
Like to turn the call back to Juan Jose Chacon Quiros for closing remarks.
Thank you for joining us on today's call and we look forward to providing our next quarterly update in early 2022, and I wish everyone happy holidays and good health.
This.
Today's conference establishment labs. Thanks, you for your participation you may disconnect your lines at this time.
Okay.
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