Q4 2021 Caladrius Biosciences Inc Earnings Call

Okay.

So fourth quarter and full year.

2021 financial results.

This update conference call currently all participants are in a listen only mode.

Following managements prepared remarks, we will hold a Q&A session.

To ask a question at that time. Please press the Starkey followed by one on your Touchtone phone.

If anyone has difficulty hearing the conference call. Please press star zero for operator assistance.

As a reminder, this call is being recorded today Tuesday March 22nd 2022, I will now turn the call over to John Man, Dino Vice President of Investor Relations and corporate communications at <unk>.

Please go ahead Sir.

Thank you operator, and good afternoon, everyone welcome to cloud here since fourth quarter and full year 2021 conference call to discuss our financial results and provide a business update.

Joining me today from our management team are Dr. David Mazzo, President and Chief Executive Officer, Dr. Christian Buck Executive Vice President of research and development and Chief Medical Officer, and James <unk>, Vice President of Finance and Treasury.

Shortly before this call we issued a press release announcing our fourth quarter and full year 2021, our financial results, which is available under the investors and news section of the company website, along with the webcast replay of this call.

If you've not received this news release or you would like to be added to the company's email distribution list. Please email me at Jay <unk> at <unk> Dot com.

Before we begin I will remind you that comments made by management. During this conference call will contain forward looking statements that involve risks and uncertainties regarding the operations and future results of collateral.

I encourage you to review the company's filings with the Securities and Exchange Commission, including without limitation. Its forms 10-K, 10-Q, and 8-K, which identify specific factors that may cause actual results or events to differ materially from those described in the forward looking statements. Furthermore, the content of this conference call contains time sensitive.

The information that is accurate only as the date of this live broadcast Tuesday March 22022.

<unk> undertakes no obligation to revise or update any statements to reflect events or circumstances. After the date of this conference call with that I'll now turn the call over to Dr. Mazzo Dave.

Thank you John and good afternoon, everyone.

Thank you for joining us today on our fourth quarter and full year 2021 business update conference call.

Despite the challenges of the COVID-19, pandemic and difficult financial markets, we successfully navigated 2021 with advancements across our development programs, while strengthening our balance sheet, giving us the confidence and means to fund operations for the next several years based on our current development portfolio.

Notably, we further diversified and strengthened our management team with the addition of several highly qualified and experienced personnel, including the appointment of Christopher J Buck M. D. As executive Vice President of research and development and Chief Medical Officer.

In addition, <unk> continued and continues its concerted efforts to identify and evaluate strategic development opportunities with the aim of consummating transactions that will deliver additional value to our shareholders beyond our current development pipeline.

I'll now turn the call over to James <unk>, Our Vice President of Finance and Treasury to review and provide commentary on our fourth quarter and year end financial results James.

Thanks, Dave I'm pleased to join you today to present, a summary of our fourth quarter and year end financial results.

Starting with operating expenses.

Research and development expenses for the fourth quarter of 2021 were $4 2 million or 43% increase compared with $2 9 million for the fourth quarter of 2020.

And $17 7 million for the year ended December 31.

2021 compared to $9 3 million for the year ended December 31, 2020, representing an increase of approximately 91%.

Research and development activities in both the current year and prior year periods focused on the advancement of our ischemic repair platform and related to <unk>.

Expenses associated with efforts to continue execution and acceleration of enrollment of the freedom trial XOMA.

She'll be at 16 and expenses associated with the planning preparation and initiation of the phase one proof of concept trial for C. L. B S 201, as a treatment for diabetic kidney disease and ongoing.

Expenses for the development of <unk> as a treatment for critical limb ischemia and burgers disease in Japan associated with maintenance of manufacturing facility and personnel qualification as well as contract research organization engagement, despite no subject treatment execution.

Due to the COVID-19 proposed states of emergency in Japan throughout the year.

General and administrative expenses, which focus on general corporate related activities were $2 7 million for the three months ended December 31, 2021, representing an increase of 6% compared to $2.5 million for the three months ended December 31 2020.

And 11 4 million for the year ended December 31st 2021, representing an increase of 15% compared to $9 9 million for the year ended December 31 2020.

This increase was primarily due to an increase in directors and officers liability insurance premiums.

I think that generally has been experienced throughout the health care industry.

And strategic consulting expenses.

Overall net losses were 27 5 million and $8 1 million for the years ended December 31st 2021, and 2020, respectively.

Turning now to our balance sheet and cash flow.

As previously announced in January 2021, we successfully closed on a $25 million capital raised through the sale of the company's common stock and warrants to several institutional and accredited investors and a private placement priced at the market under NASDAQ rules.

Shortly thereafter in February 2021 the company announced that it closed a $65 million capital raised through the sale of its common stock and warrants to several institutional and accredited investors and two registered direct offerings priced at the market under NASDAQ rules.

It is worth repeating that we consummated all of these transactions with at the market pricing. Despite the volatile financial markets experienced at the time.

In May 2021 we announced that we received 1.4 million and non dilutive funding as an approved participant of the technology business tax certificate transfer program.

Sponsored by the New Jersey Economic development Authority.

Additionally, we announced earlier this month that we received another 2.3 million of non dilutive capital from that same program.

This program enables qualifying new Jersey, based biotechnology or technology companies to sell a percentage of their new Jersey, net operating losses, and research and development tax credits unrelated qualifying corporations.

Even in the midst of the COVID-19 pandemic, while many small biopharma companies continue to experience difficulties and heavy competition for capital, we successively successfully secured $90 million in new capital gross proceeds in 2021.

These resources have afforded us the financial security to focus on the execution of our current business plan, while simultaneously looking for opportunities to enliven our future prospects.

As of December 31st 2021, we had cash cash equivalents and marketable securities of approximately $95 million.

Based on existing programs and projections the company projects that its current cash balances will fund operations based on the current development portfolio for the next several years.

Cause of this favorable cash position. The company continues its concerted efforts to identify and acquire additional development assets to diversify our portfolio of product candidates and to enhance the opportunity for shareholder value creation.

That completes the financial overview.

With that I will now turn the call over to Doctor Buck for the review of our exciting clinical development pipeline Kristen.

Thank you James and good afternoon, everyone.

As those of you who have participated in our quarterly conference calls before know Collagenase is currently focused on the development of autologous cellular cellular therapies designed to treat or reverse disease.

Based on human clinical trial data generated to date, our therapies have shown strong signs of efficacy and durability with an excellent safety profile. Unlike many allogeneic therapies.

Importantly, we believe the curative cell therapy products when applied to the right indication and at the right price. It can restore human health and potentially improve quality of life with a single administration as.

As compared to a treatment that requires frequent re administration.

Our CD 34 positive cell therapy technology has led to the development of therapeutic product candidates designed to address diseases and conditions caused by ischemia.

A condition in which the supply of oxygenated blood to the healthy tissue is restricted.

Previously published preclinical and human clinical studies have demonstrated that administration of CD 34 positive cells induces angiogenesis of the micro vasculature.

That is D cells.

Empt the development of new blood capillaries they.

Thereby contributing to the prevention of tissue death by facilitating blood flow to the area of ischemic insult.

We believe that several conditions caused by underlying ischemic injury can be improved through the application of our CD 34 cell technology.

Including but not limited to critical limb ischemia or C. L I and burgers disease is.

Well as coronary microvascular dysfunction C M D.

And diabetic kidney disease decay D.

With that as a general background I will now expand on each of our clinical programs in numerical order kickoff with C. B L. T. L. B S 12 also known as <unk> in Japan.

Our product candidate for the treatment of CLI and burgers disease.

<unk> was awarded a sakigake designation from the Japanese regulatory authorities for the treatment of CLI and burgers disease.

Which is an orphan sized subset of CLI.

The second cocky designation is akin to a regenerative medicine advanced therapy designation or armet designation in the United States.

So I got cocky designation affords the recipient prioritized regulatory consultation a dedicated review system to support the development and review process, including the option of Rolling registration submission.

As well as the reduced review time of six months for the registration application once it's filed.

Additionally, under Japan's regenerative medicine guidelines.

Such as <unk>.

Our eligible for early conditional approval and possibly full approval in Japan based on the assessment of the data from the trial or trials.

Designed in direct collaboration.

With the Japanese Pharmaceuticals, and medical devices agency the P. M D a.

Note.

The conditional approval of soccer Gawky product only requires the demonstration of a trend.

Toward therapeutic effect together with an acceptable safety profile.

As you might expect the sakigake designation is a highly sought regulatory classification of Japan, and we hope that this coupled with our positively trending data from our trial will make her nedra.

An attractive product for partnering to a Japanese pharmaceutical company.

Yeah.

The company study of <unk> in Japan for the treatment of CLI and burgers disease.

Has shown positive results to date.

The initial responses observed in the subjects, who have reached an endpoint in this study are consistent with our expectations of therapeutic effect and safety.

On previously published clinical trials in both Japan, and the U S.

However, as discussed in prior quarters.

Multiple states of emergency declared by the Japanese government during 2020 and 2021 due to the COVID-19 pandemic have made incremental enrollment exceedingly challenging.

While the trial is demonstrating positive trends in both safety and efficacy, which are the key criteria for.

Consideration of conditional approval in Japan under the Sakigake designation.

We have concluded that it is in the company and our shareholders.

Best interest to suspend our enrollment efforts.

The objective of such suspension is to minimize the operational and financial burden that we have incurred and continue to incur due to enrollment delays and the lack of visibility on the time to completion.

The company has turned its focus to securing a partner in Japan to complete the study by enrolling the four remaining no option CLI subjects if deemed necessary.

And or.

To explore the possibility of submitting the existing data to the Japanese regulatory authorities under the sakigake designation.

Over the past several months, we have collaboratively engage the P. M D E on their best on the best path forward for the hidden and your program.

In accordance with their recommendation.

We are currently preparing an analysis of the <unk> study to share with the P. M. D E at a pre consultation meeting mid 2022 .

We anticipate having clarity on the next steps for this program during a formal consultation meeting with a development partner in the second half of 2022.

As discussed in previous quarters, we reported that the United States food and drug administration. The F. D. A granted orphan designation to see L. B S 12, as a treatment for burgers disease.

Based on guidance from the FDA, we believe that a clinical program of some size and cost.

Would be required for U S approval.

Actually since the F D. A felt that the existing data out of Japan would not be representative of the burgers disease patients in the United States.

That said and as previously announced we have decided not to pursue the development of C. L. P. S 12, and burgers disease in the United States at this time.

Turning now to act Zona C. L. B S 16 for the treatment of coronary microvascular disease C. M D.

Coronary microvascular disease or C. N D. It's a disease that continues to be under diagnosed and potentially afflicts millions annually.

A vast majority of whom are female with no current treatment options.

In May of 2020, collagenase announce the full data results from the phase two escape CMT trial at the society for cardiovascular angiography and interventions Twenty-twenty scientific Session's virtual conference.

Killing a highly statistically significant improvement in coronary flow reserve.

Correlating with symptom relief for patients with CMT after a single intra coronary injection of XOMA.

Subsequently the company initiated and is currently treating patients any rigorous phase two.

Clinical trial, known as the freedom trial, which to our knowledge.

Is the first regenerative medicine trial and CMT in the United States.

The freedom trial is a double blind randomized placebo controlled trial designed to assess the efficacy and safety of delivering autologous CD 34 cells, whereas zona.

Two subjects with coronary microvascular disease, and without obstructive coronary artery disease.

Initially investigator and potential subject response to the freedom trial was favorable and early enrollment in the trial proceeded as planned with the first patient treated in January of 2021 .

However, since the inception of the trial.

New technology has been introduced and validated for the diagnosis of C. M. D. At these new technologies are not widely available nor are they associated nor are the associated diagnostic parameters widely accepted.

Further compounding situation is the discontinuation by the manufacturer of the diagnostic equipment that was originally specified in the freedom trial to qualify patients for the study.

This complication coupled with the impact of the COVID-19 pandemic in United States has contributed to a general slowing of enrollment that continues to this day.

Collagenase is taken steps to accelerate enrollment by expanding the number of participating investigational sites as well as modifying the study protocol to make study inclusion criteria more flexible.

But despite these efforts the company is unable to provide an accurate projection on when enrollment will be completed but I anticipate that study to run into 'twenty 'twenty three if continued as planned.

Final data from this study are expected approximately six months after the last patient last visit in the study.

Collagenase continues to monitor the progress of the study and.

And we will consider additional future protocol <unk> execution changes as appropriate.

Lastly, our most recently proposed development plan C. L. B S 201 for the treatment of diabetic kidney disease or decay D.

The company initiated a phase one open label proof of concept trial evaluating C. L. D S. Two O one.

CD 34 positive regenerative cell therapy investigational product for intra renal artery administration in patients with diabetic kidney disease.

The development program focuses on patients that exhibit rapidly progressing stage, three b or for kidney disease.

The scientific rationale for the program is based on the association of Progressive kidney disease with attrition.

Of the micro circulation of the kidney.

Preclinical studies in kidney disease and injury models have demonstrated that protection or replenishment of the micro circulation results in improved kidney function.

Our proof of concept protocol provides for a staggered sequentially dose cohort of six patients overall.

Overseen by an independent data safety monitoring board.

With the objective of determining the tolerance of intra renal cell therapy injection decay D patients.

As well as the ability of C. L. B S till one to regenerate kidney function.

A key readout of data will occur at the six month follow up visits for all patients.

The company anticipates, the first patient to be treated in this study within the next several weeks.

With topline data from all subjects available by the first quarter.

Of 2023.

Finally, as I mentioned on the last quarterly call. We are in the midst of a concerted effort to.

Well identify and secure an additional developed asset or assets to complement our current portfolio of product development candidates.

Fortunately many of the members of the Collagenase development and executive team have deep experience in the development of drug products across all development phases in many clinical indications as well as many therapeutic modalities.

This breadth of development expertise allows us to consider many new product development candidates.

Including those not based on cell therapy.

And were those focused on cardiovascular disease.

Based on the quality and wide range of available opportunities as well as the continued advancement of our existing portfolio I am really excited about our prospects and see a very bright future ahead for collagenase.

With that I'll now turn the call over to Dave.

Thanks Kristen.

Overall, we are pleased with the corporate development achievements, we made in 2021.

Unlike many life science companies of similar size and stage of development. We are financially sound and to date have generated and continued to generate positive clinical data and indications of high unmet medical need.

So building out a team of highly and broadly qualified seasoned experts.

Although our share price has traded over the last 12 plus months in line with relevant indices and the stock market in general, we and I'm sure. All of you continue to be frustrated by the lack of value recognition afforded our company beyond that of our balance sheet.

As a result, while we continue to work to create shareholder value based on our existing development pipeline. We are really looking toward a broadening of our development portfolio to revitalize and significantly increased interest in our company as indicated by our share price.

As we advance all of our programs towards value inflection points in 2022 and beyond.

And with that overview, operator, we are now ready to take your questions.

As a reminder to ask a question. Please press the star key followed by one on your Touchtone phone.

Only one question per listener at a time and then be prepared to return to the queue for any additional questions.

Your first question comes from the line of Kumar Raj out with Brookline capital markets.

Thanks for taking my questions.

First with regard to the fact that you can download my options you guys maintained a little bit about the flexibility in terms of indications.

But in terms of stage of development, how would you guys thinking about it is it like more like late stage or phase, two or where you already have proof of concept.

And also where you are in terms of being all.

Hum.

The timelines plot or out licensing these assets. Thank you.

Hi Kumar Thanks, very much for your questions and thanks for being on the call today. So as it relates to the assets. We're looking at things quite broadly, but our strong preference is for assets that already have been and remain in the clinic. So ideally they will have at least phase one data.

Proof of concept data would be would be best and and and.

Are in the stages of development, where the experiences of our team can add materially to the development plan for the rest of the activities leading to registration. So we're looking broadly, but clearly where we prefer we're preferring clinical assets as it relates to you.

Where we stand in the process we've been as we've mentioned on this call for quite some time, we've been at this for quite a while.

There are many many assets and actually companies available due to the financial volatility of the markets.

And we've been looking at quite a few of them. In fact, we've looked at hundreds of assets over the course of the last 12 plus months.

I would say that without being specific about timing, but I feel like we're zeroing in on a number of very attractive possibilities and if things continue to go well I'm hopeful that we can consummate a transaction, perhaps sometime during the course of 2022.

Your next question comes from the line of Joe <unk> with.

With H C Wainwright.

Hi, everyone. This is landed on for Joel. Thanks for taking my question. So I was wondering regarding more niche y I.

I Wonder if you could.

I Wonder if you are considering alternative avenues, all the time securing a partner in Japan.

So long and thanks, very much and say Hello to Joe for Us.

I wouldn't use gas for being on the call.

As it relates to the whole network, we're looking at.

Broad and opportunistic strategy as possible.

Have been enrolling this program for quite some time, but you know.

As we mentioned on the last call we've experienced approximately an 18 month delay due to the state of emergency in Japan, and the inability during that time frame for studies like ours too to enroll patients during the pandemic. So we've as Christian mentioned gone back to the P. M D. A.

And we're in I think collaborative discussion with them now about what the next steps could be and whether it's even required to enroll four more patients in the trial.

Since this trial was never designed to be statistical analysis.

Analysis, it's it's really to look at trends and certainly we can establish strong trends with the data that we have so depending upon what P. M. D. A says as it relates to the need for additional patients and how they view the data analysis that we will provide for them we may be in a position.

To move you know.

The discussions with potential partners.

Forward at a much more accelerated rate.

Clearly, we're looking for ways to monetize this asset too to see value created from the good work that's been done in Japan over the last several years and we will continue to look broadly at ways to do so, but we are fairly convinced that spending more money.

That is collages capital on additional work in Japan at this time.

Probably not to our benefit and that we should focus on using the data that we've generated and the sakigake designation has the means to generate value for this program.

Your next question comes from the line of Pete Enderlin with MAZ partners.

Hello, everybody. Thank you for taking my questions.

The first one was just so naturally what's likely to be the near term trend of R&D.

Lower spending for an address.

And.

Of course on the other hand the.

Fairly limited scale up on the CK D program.

Hey, P that saves nice to talk to you.

So so as it relates to you I mean, you've just you've just said that you yourself. We are we are.

We haven't provided specific guidance on.

Exact R&D spending specifically because.

We're unable to predict the rate of enrollment for <unk> at the moment and that's the major R&D spend for the company for the rest of this year, but as you've already pointed out we've essentially completed the capital spend on <unk> in Japan, and the <unk> study is.

Weighted to cost in total only a few million dollars. So we would expect that we would be conserving capital.

As we continue to advance the programs. According to the plan that we've described today.

You have a follow up question from the line of Kumar Rajeev.

Rod Thanks for taking up my follow up question.

So with regard to the C. M D program.

Maybe you can.

Talk a little bit about are you know not that different fact, finding a Hollywood things got when we will have clarity in Dom South Plano, how the enrollment is going to proceed and obviously with regard to colleague.

We are seeing like in Florida opening up pardon me.

Most people are vaccinated. So when do you think we will get more clarity on.

How the enrollment is going to go on in terms of the Rd Snow side. So what are you seeing there.

So again, thanks to most of your question so the and I appreciate.

She's just because it gives me the opportunity to augment with Christian's already said about the program and perhaps do so in a in more layman's terms. So we have several factors that have impacted enrollment and freedom.

All of which were.

Unexpected of course, the first was with Covid and the pandemic and the fact that we had a delta waves that seem to be going away and everything seemed to fall back into place and then we had an omicron wave and perhaps there'll be an omicron b a point to wave at some point to or some other variant in the future.

The bigger issue, though is not what people think it's not so much that the.

Pandemic has reduced the interest of patients where their desire to come in.

Participating in this study the bigger impact has been on the institutions, the hospitals themselves and staffing and their ability to provide clinical coordinators and and facilities dedicated to clinical trials, while many other institutions have had to revert to handling large.

<unk> unexpected waves of Covid patients. So that's been really the issue and we hope that that will get better with time, but a lot of nurses and even physicians are a bit.

Burnt out if you will and clinical trials, such as ours, which require the use of a catheter lab.

Interventional cardiologist anesthesiologist radiologists, coordinating nurses et cetera, it's a very labor intensive and there are more difficult to execute when when staffing issues exist. So that's the first bit and we hope that that will get better, but I can't tell you exactly when it will get better.

The second bit has to do with the technology issues that Christian referenced during her.

<unk> when.

When we started this study.

There was really one print.

Principal.

Technique.

That was utilized to diagnose C. M D at least as defined by many of the Kols that helped US design, our trial and that technique was made by one specific provider.

Just after we started the program that supplier unexpectedly announced the discontinuation of that particular technology and instrumentation, because they have plans to introduce a new generation.

C M D diagnostic tools that new generation is not yet completely validated not in the market certainly is not readily available and so in the meantime, Christian and their team had to seek other.

Diagnostic means that were available to diagnose C M D.

And they identified a number of varying techniques that we've looked at.

Doppler techniques that measure.

Coronary flow reserve, we've looked at a P T.

MRI and a number of other techniques and we found that a variety of them exist, but theres not a generally accepted correlation for the various results that you get from these techniques that allows you to be certain that you're consistently enrolling the same population of patients and so.

It's been a bit confounding too.

Have to open up the technology.

Enrollment of the trial to patients who are diagnosed by a variety of means of coronary flow reserve and still find ways to ensure that they are all part of the same population that we're trying to treat in a controlled clinical trial. The other thing is that these techniques are not widely available.

They're typically not available.

Smaller or community hospitals that are only available in large teaching hospitals, and they're often very expensive and so that's been another compounding factor and we've made adjustments to the protocol to.

Allow us to have greater flexibility inclusion criteria, but still maintain some level of control, but that's had an impact on the sites that are now available to treat patients because many of them don't have these technologies and also the the the variety of instant.

Excuse me the <unk>.

Conventional list, who are willing to participate because many of them.

Aren't trained on these technologies or arent well coordinated with the radiology groups and their departments in order to make these kinds of things happen. So for these reasons and I realize there's a lot of operational detail, but I want people to understand the complexity, it's very difficult for us to make an accurate prediction about how.

Enrollment is going to proceed over the course of the next several months. All we can say is what we've already said, which is that the team is looking at is literally on a daily basis, and and proposing adjustments to the protocol that provides for the greatest flexibility of patient inclusion with the whole.

<unk> of seeing enrollment rates return to what were predicted as normal rates prior to the start of the study and the impact of the pandemic in these technology changes. So I think we'll be in a position.

By the end of the summer early fall to give a much clearer indication about when things might be completed.

You have a follow up question from the line of Pete Enderlin.

Alright, thank you.

Given that your stock is extremely depressed and I understand that you want to maintain flexibility to pursue other.

Assets, and so on but why not repurchase a little bit of the stock.

About half of the cash alone of the company at this point you would thereby.

Increase the cash per share without having to use a lot of cash to do that.

Well there are couple of reasons, why we don't do that and as he gets atypical in generals for for biotech and biopharmaceutical companies of our size anyway to repurchase their own stock where development companies and in the best way to create value for our shareholders. We believe.

<unk> is to develop things and so it's better to spend that money on development opportunities than simply but I would say artificially trying to.

By financial means if you will increase the share price in the end our share price as I mentioned in my opening remarks is really a function of our cash balance at this point in time frustratingly. That's the case. So by you know by repurchasing our own shares I'm not sure.

That that will change the overall valuation of us in the long run.

Market cap is.

Function of our cash balance.

Almost doesn't matter how many shares are outstanding sure the price per share could vary but the overall value of the company is it going to change and our goal is to see the value of the company increased substantially and we believe the best way for that to happen is to achieve value inflection milestones in it.

Attractive development programs those that we have today and those that we hope to acquire in the future fair enough.

Are there other people in queue. We're just about out of time or can I sneak in another one.

Go ahead and sneak in one Pete I'll give you okay. Your past.

Thank you.

When you talk about you know wanted to get more strength to your boat. So to speak you mentioned either in assets.

Early.

Clinical stage programs or maybe possibly.

The company itself a corporate entity. So is there any sense of which way you're more likely to go on that.

It's really going to depend on the situation. The reason I mentioned companies just because so many companies are single asset companies and so if you buy the asset or you try to buy the asset you have to buy the whole company otherwise they have nothing left and so there's no point in them, saying well, we're trying to do is to find that that knee.

It'll in the haystack that perfect match, where either we can acquire an asset and just the asset or assets or if we buy a company that the staffing and the additional.

Things that come along with it a completely necessary and complementary to us and as you can imagine that's a difficult one to fill but we've got our eyes on a couple of things that might actually fits the bill and we'll see how the rest of the year.

Unfolds as we continue our evaluations.

This.

The question and answer portion of the presentation and now I will turn the call back to Dr. Mazzo for closing remarks.

Well again, thank you all for participating on today's call. We look forward to speaking with you again during our next quarterly conference call and to continuing to provide updates on our achievements and progress.

We remain grateful for your continued interest in and support of <unk> Biosciences, Please stay well and have a good evening. Thank you and good night.

Ladies and gentlemen, this concludes today's conference call. We thank you for your participation you may now disconnect.

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