Q2 2022 Erytech Pharma SA Earnings Call
Speaker 1: Good day and thank you for standing by. Welcome to the area tech business update and financial highlights for the second quarter of your 2022 conference call. At this time, all participants are in a listen only mode. After the speaker's presentation, there will be a question and answer session.
Good day, and thank you for standing by and welcome to the Erie.
Update and financial highlights for the second quarter.
2022 conference call at this time, all participants are in a listen only mode.
After the speaker's presentation, there will be a question and answer session to ask a question. During this session you will need to press star one one on your telephone please be advised that today's conference is being recorded.
Speaker 1: To ask a question during the session, you will need to press star 1-1 on your telephone. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jill Byan. Please go ahead.
I would now like to hand, the conference over to your speaker today Jill by him. Please go ahead.
Speaker 2: Thank you. Good afternoon, good morning, Mojolatus. Thank you for joining us for our business and financial update call to discuss the business highlights here today and the financial for the first six months of this year.
Thank you.
Good afternoon, good morning, well good luck.
Thank you for joining us for our business and financial update call to discuss the business highlights year to date and the financial for the first six months of this year.
Speaker 2: We announced our business and financial update yesterday evening. The press release and the webcast presentation can be found on the investor relations page of our website.
We announced our business and financial update yesterday evening, the press release and the webcast presentation can be found on the investor.
Investor Relations page of our website.
Speaker 2: Joining me on the call today are Dr. Iman El Haribri, our Chief Medical Officer, and Eric Swaillier, our Chief Financial and Chief Operating Officer.
Joining me on the call today are Dr.
Our Chief Medical Officer.
Our chief financial.
Chief operating officer.
Speaker 2: Before starting on slide two, I'd like to draw your attention to the disclaimer. Reminding you that today's call includes forward-looking statements such as related to the companies operations, timelines and financials. And as you know, they all involve risk and uncertainties that could cause actual timing and results to differ.
Before starting on slide two I'd like to draw your attention to the disclaimer.
Reminding you that today's call includes forward looking statements such as related to the company's operations timelines in financials and as you know the open both risks and uncertainties that could cause actual timings and results to differ.
Speaker 2: Switching to slide three, the agenda for the call and quite standard. I will, as usual, start with a short introduction and present the key business highlights of the year today, focusing on the two events that appeared after our last call in May.
Switching to slide three the agenda for the call.
Quite standard I will as usual start with a short introduction and presents to key business highlights of the year to date focusing.
You too.
Events that occurred after our call last call.
Hey.
Speaker 2: After this, Eric will present an update of our key financials and the cash balance. And he will also summarize the strategic priorities and expected milestones for the year to come before we then open the lines for Q&A.
After this Eric will present, an update of our key financials.
Our cash balance and he will also summarize the strategic priorities and expected milestones for the coming for the year to come.
Before we then open the lines for Q&A.
Speaker 2: All three of us will be available for your questions after.
All three of us will be available for your questions afterwards.
Speaker 2: Now moving to the presentation, a quick company overview of slide 4. It's for anyone new to the company and for completeness.
Now moving to the presentation, a quick company overview on slide four.
For anyone new to the company and for completeness.
Speaker 2: Brief overview of Eritec. Eritec is the name tells it focused on the development of a retro-side based therapies, red blood cell based therapeutics.
Brief overview of everything everything.
The main delta.
Focused on the development of a retro site based therapies red blood cell based therapeutics.
Speaker 2: And we've been in this field since quite a time. We have been working first with a lead product, every espouse, Graspa, which we established the proof of concept, proof of concept in leukemia, in pancreatic cancer, through different medical files.
And we've been in this field since there's quite a time, we have been working.
First with our lead product every us thoughts crespo.
Which product we established a proof of concept proof of concept.
In leukemia in pancreatic cancer through different clinical trials.
Speaker 2: And I'll explain more about this. We recently decided not to pursue further development of areas past and this is following a setback phase three trial that did not achieve its primary endpoint and also new regulatory rules that we encountered for our development in KLL. More about this in a minute. So the focus is now really on our.
And.
More about this we recently decided not to pursue further development of <unk> and this is following a setback phase III trial that did not achieve its primary endpoint and also new regulatory hurdles that we encountered for our development and pay a lot more about this in a minute so.
So the focus is not really on our.
Speaker 2: preclinical pipeline, preclinical pipeline, which includes working ware businesses and work also on extra cellular physicals, we call it, every step, every trocyte, derived extra cellular physicals. It's the exosomes space.
Preclinical pipeline preclinical pipeline, which includes working in rare diseases and vertical so extra cellular physicals, we call. It a reset erythrocytes derived extracellular vesicles.
Exosomes space.
Speaker 2: exciting and exciting possibilities there, earlier stage obviously. And then the other key element of this is strategic partnering that we have announced since quite a while and where we're making good progress.
Exciting exciting possibilities there earlier stage obviously.
And then the other key element is.
Strategic partners that we have announced and since quite a while and where we're making.
Good progress.
Yes.
Speaker 2: And that on slide five brings me to the key items for the second quarter.
And on slide five brings me to the key items for that.
Second quarter and year to date.
Speaker 2: Quite intensive. So first of all, obviously, there was in April the sale of the Princeton facility, Princeton facility.
Quite quite an intensive.
First of all obviously there was in April the sale of the Princeton facility Princeton facility.
Speaker 2: state-of-the-art cell therapy facility that we built in 2018. And this was in view of the phase three clinical trial with CRASPA in pancreatic cancer. For the trial…
As a state of the art cell therapy facility that we built in 2018 and this wasn't view of the phase III clinical trial with <unk> in pancreatic cancer.
For the trial and for the early commercial.
Speaker 2: On the trial then, it did not turn out positive. This facility was clearly too big for our needs. We then launched the sales process and were pleased to find a good partner with Catlin. We sold the facility to Catlin, one of the leading CDMOs in cell and gene therapy. And so the consideration we received was $44.5 million.
On the file that.
But not to turn a positive this facility was clearly too big for our lease.
We then launched the sales process and were pleased to find a good partner with Scotland, we sold the facility Kathryn one of the leading CDN most in cell and gene therapy.
So concentrations, we received was <unk> 44 and $5 million.
Speaker 2: Also our entire team, site team, transfer to Katlyn. This was in May.
Also our entire team sites team transferred to Catherine This was in.
Speaker 2: That was the first item. Second item is more difficult one. This was in August recently, and this is where we have to announce that after a long development path and encouraging data in ALL.
In may.
The first item second.
Second item is more difficult one.
In August recently.
This is where we have to announce that after alone.
<unk>.
Pop and encouraging data in AML.
Speaker 2: high-percentive LL, we decided to no longer pursue our plan to a NAM or our POP to a US approval.
Hypersensitive.
Decided to no longer pursue our planned to in our path to a U S approval.
Speaker 2: You may remember that we had been encouraged by post-agenda data that we saw end of 2020 in the Phase 2 trial run by the NOFO, which is the pediatric oncology group of the Nordic countries in Europe .
You may remember that we have been encouraged by by positive data on data that we saw in 2020 and the phase II trial run by the <unk>, which is the pediatric oncology group off of the Nordic countries in Europe .
Speaker 2: Based on this trial, we had a long dialogue with the FDA, dialogue to explore the path to approval in the education based on this IST running Europe .
Based on this trial, we had a long dialogue with the FDA dialogue to explore the path to approval in this indication based on this.
Then in Europe .
Speaker 2: The dialogue started off very well with a could pre-PLA meeting already more than a year ago. This was in June 21.
The dialogue.
February with a.
Pre BLA meeting already more than a year ago. This was in June 'twenty one.
Speaker 2: After which we had multiple exchanges and data requests with the FDA.
After which we had multiple exchanges and data requests with the FDA.
Speaker 2: including the submission of the pediatric plant which was happened in July , in the initial pediatric plant, high PSP.
Including the submission of the pediatric plan this was.
July .
Initial pediatric then.
PSP.
Speaker 2: And there we received feedback in August feedback that
And there we receive feedback in August .
The feedback.
Speaker 2: asked for additional clinical data. So basically, then we had a long evaluation of the feedback, the possibilities, pros and cons. But after all, and taking into account this need for additional data and the need, and the changes in the competitive landscape or new approval in this very small indication, we took the difficult decision to abandon our plans for the grass part in A&L. So clearly we announced this a few weeks ago.
Asked for additional clinical data.
Basically then we had the loan evaluation of this feedback the possibilities frozen comps, but actual and taking into account this need for additional data and the need and the changes in the competitive landscape.
New approval in this in this very small communication.
We took the difficult decision to abandon our plans for <unk> in AML, So clearly we announced.
A few weeks ago.
Speaker 2: the stop of a long development in a long work with Krasta in KELT in KELT.
Okay.
There's still a long development in that alone.
Vertical with cross buy.
In parallel.
Speaker 2: Then another element, the number three here on this list, is that we basically received the feedback on the results from the start of the Tribeca II trial and the state of Tribeca II trial was a phase II trial to evaluate every espouse, grasp of in metastatic TNBC, people negative breast cancer.
Then another element the number three here on this list that we recently received the feedback of the results from the.
The start of the Tribeca two trial I Misstated Tribeca two trial was a phase II trial to evaluate every SaaS gross box.
Metastatic CIBC triple negative breast cancer.
Speaker 2: This was a trial, a view of building on the pancreatic trial and a view of broadening out to other solid tumors. I'll give it a roll.
It was a trial in view of building on the pancreatic.
The smile and the view of broadening out to other solid tumors.
Target enrollment 64 patients.
Speaker 2: But we stopped enrollment because when we saw the disappointing results of the pancreatic phase 3 trial, the private one trial, we stopped enrollment and of last year. So we had 27 patients enrolled at a time, 11 and 14 respective groups. It was a randomized trial.
But we stopped enrollment in 2020, we sold the disappointing results of the pancreatic phase III trial with <unk>. One trial stopped enrollment end of last year. So we had 27 patients enrolled at the time.
11, and 14 irrespective of their respective groups randomized trial.
Speaker 2: The trial steering committee met now very recently in September and reviewed the results of these patients.
The trial steering committee met now very recently.
Remember.
To review the results of these of these patients overall.
Speaker 2: over conclusion was that the treatment was not all the right. But no clinical benefit was demonstrated. Now it's...
<unk> conclusion was that the treatment was well tolerated.
But no clinical benefit was demonstrated now it's okay.
Speaker 2: In fact, difficult to draw any conclusions given the immature closure of the trial and the small number of patients. But absent a clear signal, this result reinforced our decision to stop the grass path development altogether.
Difficult to draw any conclusions given the immature closure of the trial and the small number of patients.
But.
A clear signal.
This result, reinforced our decision to stop the cross pub development altogether.
Speaker 2: For now obviously this means quite a change for the company. The leap forward being abandoned.
I will now obviously this means quite a bit quite a change for the company.
The leap B Amendment.
Speaker 2: So the priorities for the company now is a deep restructuring.
So the priorities for the company now has eight.
Deep restructuring.
Yes.
Speaker 2: Cost reduction and restructuring, we launched it already in earlier this year. We have performed staff reductions in the US and are now have launched a restructuring plan, a social plan in France. This has been launched and now also recently approved by the labor authorities and Eric will provide more detail in terms of what is the financial impact of this cost saving plan.
Our cost reduction and restructuring we launched it already earlier this year.
We have.
Staff reductions in the U S and are now.
<unk> launched a restructuring plan this week.
So shell social plan.
This has been launched and now also recently approved by the labor authorities and Eric will provide more more detail in terms of what's the financial impact of this cost saving plan.
Speaker 2: Second priority after the change is clearly to focus on our free clinical programs.
Second priority.
After that so no changes really to focus on our preclinical programs we have.
Speaker 2: We have been working on going, I mentioned in rare diseases. And then specifically the new kit on the block, but in the meantime, quite nicely announced, is a work on our extra cell-leur physicals, the exosome-like program, the physicals device from, that's from loaded red cells. So it's building on our every-caps technology. We encapsulate drugs in the red cells, and then we do the physical healing.
Work on building as I mentioned in rare diseases, and then specifically.
The new Kid on the block, but in the meantime, quite quite nicely advanced work on our extra cellular physicals be exhausted. Unlike programming physicals device from <unk> loaded <unk> building on our Ah recaps technology.
Encapsulate drugs in Red cells, and then we do the physical issue.
Speaker 2: We have presented first results. This was feasibility in vitro earlier this year and we are now working on the vivo work and also further feasibility. So this technology holds a lot of promise for what we believe it is promise on immune oncology application on the one hand and potentially also for the delivery of.
Have presented first results this was feasibility.
Earlier this year and we are now working on the visual work and also further feasibility. So it's technology holds a lot of promise for.
What we believe.
Thomas on immuno oncology applications on the one hand and potentially also for the delivery of <unk> of June so far in May.
Speaker 2: June so far, and they don't viral, June delivery for example. So work to be done still, but at least an interesting and quite an exciting platform to work on. More to come, we'll keep on the results soon.
Non viral gene delivery for example, so work to be done still but at least an inch.
Christine.
Quite an exciting platform to work on.
More to come we will be.
The results soon.
Speaker 2: And then the third and the last bullet on this slide is the strategic partnering. So we launched this process already in November last year after the phase three setback in pancreatic cancer. First step has been the.
And then the third and the last bullet on this slide is the.
The strategic partnering so we launched this process already in November last year. After the phase III setback in pancreatic cancer first step has been.
Doug.
Speaker 2: The sale of the Prince and Facility to Katland.
The sale of.
The first of the Princeton facility to Catlin.
Speaker 2: And we are now, we continue with this step behind us. We then brought them out. Look at very different strategic options we have now. After a broad screening of our pencil options, we've zoomed in on a few valuable, in fact, and lead options. And we mentioned in the press release, we hope to be able to provide an update soon in the fourth or last week. We said.
And we are now obviously.
Continue with this.
When you step behind us we've been broadened out.
Looked at very different.
Strategic options, we have now after a broad screening of potential options.
Zoomed in on a few valuable impact any options.
I mentioned in the press release, we hope to be able to provide an update soon in the fourth quarter as we said.
Speaker 2: And the partnering we're envisioning is really building on what Aerotech has to offer. We are a listed company. We have an Aeric World Xplain. For the test basis, we have a great team.
And the partners were enrich thing is really building all of them.
Everything has to offer are a listed company, we have and Eric will explain.
On a cash basis, we have a great team.
Speaker 2: left after-group structure. We have a manufacturing facility in the old, a cell therapy manufacturing facility, and obviously we have our area kept and every staff platform. So along these elements, we have searched for partnering options and we're now pursuing a very neat options in ASAP.
After the restructuring.
We have a manufacturing facility and the old notes.
Cell therapy manufacturing and obviously the half hour that recaps and every SaaS platform. So around these elements we are.
We have searched for partnering options and we're now pursuing a very lead options.
And.
As we speak.
Speaker 2: So with this, I will stop the introduction and hand over to Eric, who will provide an update on our Q2 and first half financials. We will also at the end, summarize the new slope after which we'll come back the three of us for Q&A.
So with this I.
We will stop the introduction and hand over to Eric who will provide an update on our Q2 and first half <unk>.
<unk>, we will also at the end to summarize the new slope after which we'll come back the three of us for for Q&A.
Speaker 2: Eric, the floor is yours. Thank you. Thank you, Virgil. Good morning, everyone. Bonjour à tous. We are now reviewing the financial highlights for the first half of this year. We're on slide seven of the slide deck and we're starting with P&L information.
Eric the tourist yours. Thank you. Thank you <unk> good morning, everyone.
We are now reviewing the financial highlights for the first half of this year slide seven of the slide decks and we're starting with P&L inflammation.
Speaker 2: Gilles just explained a number of unusual significant events happened in the first six months of this year from the sale of the US protection facility to the restructuring and re-thrasing of the company's operation in France and these transactions obviously impacted our financial results as of June 30.
Just explained.
A number of unusual significant dividends happened in the first six months of feature from the sale of the U S production facility to the restructuring and resizing of the company's operational and Charles and these transactions, obviously impacted our financial results of the <unk>.
Speaker 2: But beyond the one of the impacts of these significant unusual transactions that we call them, the financial results for the first half of 22 confirm a steady and notable decrease in operating expenses and cash retrievalization. And that's in connection with the completion enclosure of most of our clinical development activities and the related decrease in protection.
But beyond the one off impacts of these significant unusual transactions as we call them. The financial results for the first half of 'twenty to confirm a steady a notable decrease in operating expenses and cash utilization and that's in connection with the completion and closure.
Most of our clinical development activities.
And the related decrease in protection activities.
Speaker 2: With that net loss for the first half of 2022 was 1 million euro, which is a 27 million improvement over the same period of last year. And obviously related mostly to the 24.4 million euro net capital gain on the sale of a production facility in Prince George.
With that net loss for the first half of 2022 1 million Euro, which is a $27 million improvement over the same period of last year.
Obviously related mostly to the $24 4 million Euro net capital gain on the sale of our production facility in Princeton.
Speaker 2: operating expenses of 25.2 million euro. We're also showing a 6 million euro decrease, that's minus 19% year over year, with a 5.9 million decrease minus 25% in R&D expenses, again related to the decrease in clinical develop.
Operating expenses.
$95 2 million Euro we're also showing a 6 million euro decrease that's minus 19% year over year with a $5 9 million decreased minus 25% in R&D expenses again related to the decrease in clinical development activities.
Speaker 2: Total operating expenses include an asset improvement provision of 2.5 million euro on the Lyon production facility related to the ends of area space operations.
Total operating expenses.
Asset impairment provision of $2 5 million Euro on Belgian production facility related to the ends of our real estate operations.
Speaker 2: And a 1.1 million euro provision for restructuring and repising the Council of Keyallet just mentioned related to the to the French operation.
And at $1 9 million euro provision for restructuring and resizing. The also Charlotte just mentioned relate.
Two the two differential durations.
Speaker 2: Income tax included also a provision as of June 30, 2022 of 3.7 million euros and that's actually 4.1 million US dollars reflecting the best estimate of the tax impact of the capital gain from the sale of the Princeton.
Income tax included also a provision as of June 32022 of $3 7 million erosion, that's actually $4 1 million U S dollar.
Reflecting the best estimate to date.
Of the tax impacts of the capital gain from the sale of the Princeton facility.
Speaker 2: So now moving on to slide number eight for comments on cash.
So now moving on to slide number eight for collecting cash.
Speaker 2: So as of June 30, 2022, every tax cash and cash equivalent of 53.3 million euro, approximately 55.8 million dollars compared with 33.7 million euro as of December 31.
So as of June 32022, I would take our cash and cash equivalents of $53 3 billion in euro approximately $55 8 million.
Compared with $33 7 million as of December 31 last year.
Speaker 2: This is a 19.6 million increase in cash position during the first stop of 22. And that was the result of the net cash of 37 million.
This is a $19 6 billion increase in cash position during the first half of 'twenty two and that was the result of the net cash of $37 million.
Speaker 2: 30% 1.6 million euro received from the cells of the printing facility net in cash inflow, 24.4 million euro of net cash utilization in operating and investing activities including the cell of the printing facility.
One 6 million Euro we received from the sale of the Princeton facility net.
Cash inflow.
24, $20 4 million euros of net cash utilization in operating and investing activities.
Within the sale of the facility.
Speaker 2: and a two million euro of net cash generated in financing activities, including a three million.
And 2 million of net cash generation generated in financing activities, including a 3 million euro.
Speaker 2: Euro pre-funding of the expected 2021 R&D tax credit.
Euro pre funding of the expected 2021 R&D tax credits.
Speaker 2: In the period, the variation of the US dollar against the euro led to a 0.4 million euro positive currency exchange.
In the periods the variation of the U S dollar against the euro rates to 0.4 million euro positive currency impact.
Speaker 2: I wish to remind that every tech has not drawn any charge on the convertible loan facility, the full-code Ocapta since last year 2021, and there are no obtaining and uncoverted no.
I wish to remind.
<unk> is not drawn at a trough on the convertible loan facility the circles or capture.
Flat year, 2021 and there are no outstanding unconverted notes.
Speaker 2: The OKCASTA financing line has expired in June 2020.
Okay.
Lansing line up expired in June 2022.
Speaker 2: Already this year, the company initiated, as you'll mention, that already a deep restructuring and cost protection program, which is no further intensified with the halt of the BLA process. And considering these ongoing initiatives to reduce operating expenses, the company believes that its current cash position can fund its current programs and plans operating expenses to mid 2024.
Already this year the company initiated a field mentioned, that's already a deep restructuring and cost reduction program, which has no further intensified with the halt of the BLA process.
And considering these ongoing initiatives to reduce operating expenses. The company believes that its current cash position can sense. It.
Current programs and plant operating expenses to mid 2024.
Okay.
Speaker 2: Now and before we move on to Q&A, a very quick summary of our key strategic priorities and upcoming milestones in the next six months and that's slide number nine of the presentation.
No.
Before we move on to Q&A, a very quick summary of our key strategic priorities and upcoming milestones in the next six months.
Number nine of the presentation.
Speaker 2: We're mentioning the still ongoing respect study. This is an indesity-gathered response trial, phase one trial, in first line pancreatic cancer, with results expected by the end of this year. But again, the company has no further plan at this stage to continue developments with our real space in this indication.
I was mentioning the steel ongoing respect study.
This is an investigator sponsored trial phase one trial in first line pancreatic cancer with results expected by the end of this year, but again the company has no for the plan at this stage to continue development with its base in this indication.
Speaker 2: And so the main expected milestone for the rest of the year will be the update on the ongoing strategic review and partnering process.
And so the main expected based on for the rest of the year. It will be the update on the ongoing strategic review and partnering process.
Speaker 2: sale of the Princeton Society was already a first step in that process, but gave us the means and latitude for strategic foundation of the company. As Jill explained already, we are in this process of evaluating variable strategic options, and we expect, we hope to give further updates on these strategic initiatives in the fourth quarter of this year.
The sale of the Princeton facility with already a first step in that process gave us the means and latitude for a strategic foundation of the company. As you had explained already we are in this process of evaluating valuable strategic options and we expect we hope to give further updates on these strategic initiatives in the fourth quarter of this year.
Speaker 2: With that, I would like to thank you already very much for your attention. And we will now open the call for Q&A. Jill, Inman, and myself will be happy to answer any questions you may have.
With that I would like to thank you already very much for your attention.
We will now open the call for Q&A, Gilles <unk> and myself will be happy to answer any questions you may have.
Speaker 3: The operator of the show, that's over to you. As a reminder to ask a question, you will need to press store 1-1 on your telephone. Please stand by while we compile the Q&A Ross.
Operator, Michelle over to you.
Reminder, to ask a question you will need to press Star one line on your telephone.
And by while we compile the Q&A roster.
Okay.
Speaker 1: At this time, I am not showing any, well, excuse me, one moment.
At this time I am not showing any.
Excuse me.
Hey, Matt.
Please standby for your first question.
Speaker 1: Our first question comes from Jacob. Michiel with Kempgint. Your line.
Our first question comes from Jacob Mckeel with Kimco.
Your line is now open.
Speaker 4: Hi there and thanks for taking my question. I just had one and maybe if you could just, you know, elaborate on what kind of partnerships you're looking at at the moment and just give a bit more colour on that.
Hi, there and thanks for taking my question I just had one and then maybe if you could just.
Elaborate on what kind of partnerships.
At the moment.
A bit more color on that.
Speaker 5: Yes, I'll hide Jacob, Jacob, and she'll hear. So basically, yes, we're...
Yes, Hi, Jakob Jacob.
She'll here so.
So basically yes.
Yes.
Speaker 5: We have to face the reality that we don't have a lead program anymore, so we still have the early stage programs.
We have to face the reality that we.
Don't have a lead program anymore. So we still have the early stage programs.
Speaker 5: The focus of our partner is really sort of...
The real to the focus of our partnering is really sort of.
Speaker 5: trying to leverage our listings, our cash, our pre-clinical programs. And obviously the team that has done a great development, even if the results were not what we hope.
Trying to leverage our listings our cash our preclinical programs.
And obviously the team that has done a great development.
Even if the results were not what we hoped.
Speaker 5: And so what brings us to is mergers, slash-reverse, mergers type of options. And clearly we can add something to another company and what obviously we don't have is a lead program. And so basically a synergistic way of bringing companies in the space together.
And so what this brings us to as mergers flush reverse merger type of options.
Clearly, we can at something to another company and obviously, we don't have is a lead program and so basically.
A synergistic way of bringing comps.
Companies.
In this space.
Together so.
Speaker 5: Also, our facility, so we use our facility and Princeton have a lot of value. Our facility in the almost smaller, but still also for a cell or a gene therapy company, clearly, can bring significant value.
Also our facility and so you saw that our facility in Princeton had that a lot of value.
So again.
But still so for a cell or gene therapy company clearly Ken.
Yeah.
Significant value.
Does that answer your question.
Yes. It does thank you very much okay. Thank you.
Okay.
Speaker 1: At this time, I am not showing any other calls in Q.
At this time I am not showing any other calls in queue.
Speaker 1: I would now like to turn the conference back to Jill Byon for closing remarks. Thanks. Thanks. Thanks.
I would now like to turn the conference back to Jim O'brien for closing remarks.
Thank you Michelle.
Speaker 5: Just want to thank everyone for this being in this call for your attention or your question for your continued support of every tech.
Just wanted to thank everyone participating in this call for your attention for your questions for your continued support of <unk>.
Speaker 5: and wish you a great rest of the day and look forward to speaking again at the next occasion that are our next call probably. So thanks a lot and have a great day.
And.
Wish you a great rest of the day.
Look forward to speaking again at the next location dollar our next call probably so thanks, a lot and have a great day.
Speaker 1: This concludes today's conference call. Thank you for participating. You may now disconnect.
This concludes today's conference call. Thank you for participating you may now disconnect.
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The conference will begin shortly to raise your hand during Q&A you can dial one one.
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Speaker 6: The conference will begin shortly. To raise your hand during Q&A you can dial star 11.
The conference will begin shortly to raise your hand during Q&A you can dial star one one.
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Good day, and thank you for standing by and welcome to the Aerie business update and financial highlights for the second quarter.
2022 conference call at this time, all participants are in a listen only mode. After the speaker's presentation, there will be a question and answer session.
Speaker 1: To ask a question during the session, you will need to press star 1-1 on your telephone. Please be advised that today's conference is being recorded.
Ask a question during this session you will need to press star one one on your telephone. Please be advised that today's conference is being recorded I would now like to hand, the conference over to your speaker today Jill by him. Please go ahead.
Speaker 1: I would now like to hand the conference over to your speaker today, Jill Byan. Please go ahead.
Speaker 5: Thank you. Good afternoon, good morning, Moussouvatu's. Thank you for joining us for our business and financial update call to discuss the business highlights here today and the financial for the first six months of this year.
Thank you.
Good afternoon, good morning Morgan.
Thank you for joining us for our business and financial update call to discuss the business highlights year to date and the financial for the first six months of this year.
Speaker 5: We announced our Business and Financial Update yesterday evening. The press release and the webcast presentation can be found on the Investor Relations page of our website.
We announced our business and financial update yesterday evening.
The press release and webcast presentation can be found on the Investor Relations page of our website.
Speaker 2: Joining me on the call today are Dr. Bimman Elha Regri, our chief medical officer and Eric Swaye, our chief financial and chief operating.
Joining me on the call today are doctor.
<unk>, our chief Medical Officer.
<unk>, our chief financial.
Operating losses.
Speaker 2: Before starting on slide two, I'd like to draw your attention to the disclaimer, reminding you that today's call includes forward-looking statements such as related to the company's operations, timelines and financials. And as you know, they all involve risks and uncertainties that could cause actual timings and results to differ.
Before starting on slide two I'd like to draw your attention to the disclaimer reminding you that today's call includes forward looking statements suggests relating to the company's operations timelines in financials and as you know the open both risks and uncertainties that could cause actual timings and results to differ.
Speaker 2: Switching to slide three, the agenda for the call and quite standard, I will, as usual, start with a short introduction and present the key business highlights of the year today, focusing on E2 and events that appeared after our last call in May.
Switching to slide three the agenda for the call.
Quite standard I will as usual start with a short introduction.
The key business highlights of the year to date focusing overhead.
Two events that occurred after our call last call in May.
Speaker 2: After this, Eric will present an update of our key financials and the cash balance. And he will also summarize the strategic priorities and expected milestones for the year to come before we then open the lines for Q&A.
After this Eric will present, an update of our key financials.
The cash balance and he will also summarize the strategic priorities and expected milestones for the coming for the year to come.
Before we then open the lines for Q&A.
Speaker 2: All three of us will be available for your questions after.
All three of us will be available for your questions afterwards.
Speaker 2: Now moving to the presentation, a quick company overview of slide 4. It's for anyone new to the company and for completeness.
Now moving to the presentation, a quick company overview on slide four.
For anyone new to the company and for completeness.
Speaker 2: Brief overview of Eritec. Eritec is the name tells it focused on the development of a retro-side based therapies, red blood cell-based therapeutics.
Brief overview, operator take everything.
The main <unk>.
Focused on the development of a retro site based therapies red blood cell based therapeutics.
Speaker 2: And we've been in this field since quite a time, we have been working with a lead project, every espouse, cross-path, which we established the proof of concept, proof of concept, in leukemia, in pancreatic cancer, through different clinical files.
And we've been in this field since there's quite a time, we have been working.
First with our lead product <unk> Crespo.
Which product we established a proof of concept proof of concept.
Leukemia pancreatic cancer through different clinical trials.
Speaker 2: And I'll explain more about this. We recently decided not to pursue further development of ARIAS-PASS, and this is following a setback phase three trial that did not achieve its primary endpoint, and also new regulatory rules that we encountered for our development in ELA. More about this in a minute. So the focus is now really on our. 2016 ARIAS ReEuropean Chair speech
And I'll explain more about this we recently decided not to pursue further development of <unk> and this is following a.
Setback phase III trial that did not achieve its primary endpoint and also new regulatory hurdles that we encountered for our development in India.
More about this in a minute.
So the focus is not really on our.
Speaker 2: preclinical pipeline, preclinical pipeline, which includes working rare diseases and work also on extra cellular physicals. We call it every step, every side, derived extra cellular physicals. It's the exosomes space.
Preclinical pipeline preclinical pipeline, which includes working rare diseases and vertical so extra cellular physicals, we call. It a recess erythrocyte derived extracellular exosomes.
Exosomes space.
Speaker 2: exciting possibilities there, earlier stage obviously. And then the other key element is strategic partnering that we have announced since quite a while and where we're making good progress.
Exciting exciting possibilities there earlier stage obviously.
And then the other key element is.
Strategic partners that we have announced since quite a while and where we're making.
Good progress.
Speaker 2: And that on slide five brings me to the key items for the second quarter.
Yes.
And on Slide five brings me to the key items for the second.
Second quarter and year to date.
Speaker 2: Quite intensive. So first of all, obviously, there was in April the sale of the Princeton facility, Princeton facility.
Quite quite an intensive.
First of all obviously there was in April the sale of the Princeton facility.
The new facility.
Speaker 2: state of the art self-target facility that we built in 2018 and this wasn't view of the face tree clinical trial but Kraspa in pancreatic cancer. What a trial.
State of the art cell therapy facility that we built in 2018 and this wasn't view of the phase III clinical trial with <unk> in pancreatic cancer.
For the trial and for the early commercial.
Speaker 2: on the files and did not turn out positive. This facility was clearly too big for our needs.
On the file.
Did not turn out positive this facility was clearly too big for our needs.
Speaker 2: We then launched the sales process and were pleased to find a good partner with Catlin's. We sold the facility to Catlin's, one of the leading CDMOs in cell and gene therapy. The consideration we received was 44.5 million.
We then launched the sales process and were pleased to find a good partner with Scotland, we sold the facility Kathryn one of the immediate TD most in cell and gene therapy.
So the concentration that we received was $44 5 million.
Speaker 2: Also our entire team, site team, transfer to Katlohn. This was in May.
Also our entire team sites gene transfer to capital and this was in.
Speaker 2: That was the first item. Second item is more difficult one. This was in August recently, and this is where we have to announce that after a long development path and encouraging data in AOL.
In may.
The first item second.
Second item is more difficult one this was an August recently.
This is where we have to announce that after alone.
But in path and encouraging data in AML.
Speaker 2: high-presponsive ALL, we decided to no longer pursue our plan to a map or our path to a US approval.
Hypersensitive.
But to no longer pursue our plan to amend our path to a U S approval.
Speaker 2: You may remember that we had been encouraged by positive data, data that we saw end of 2020 in a phase two trial run by the NOFO, which is the pediatric oncology group of the Nordic countries in Europe .
You may remember that we had been encouraged by by positive data data that we saw in 2020 and the phase II trial run by the local which is the pediatric oncology group both of the Nordic countries in Europe .
Speaker 2: Based on this trial, we had a long dialogue with the FDA, a dialogue to explore the path to approval in this indication based on this IST revenue.
Based on this side, we had a long dialogue with the FDA dialogue to explore the path to approval in music indication based on this ISR revenue in Europe .
Speaker 2: that I looked out of the very well with a previous A-Meeting already more than a year ago. This was in June 21.
The dialogue part of very well with it.
Pre BLA meeting already more than a year ago. This was in June 'twenty one.
Speaker 2: After which we had multiple exchanges and data requests with the FDA.
After which we had multiple exchanges and data requests with the FDA.
Speaker 2: including the submission of the pediatric plant, this was happened in July , in this initial pediatric plant, high PSP.
Including the submission of the pediatric plan.
July .
Initial pediatric then.
PSP.
Speaker 2: And there we received feedback in August feedback that
And there we receive feedback in August .
The feedback.
Speaker 2: asked for additional clinical data. So basically then we had a long evaluation of the feedback, the possibilities, pros and cons. But after all, and taking into account this need for additional data and the need, and the changes in the competitive landscape or new approval in this very small indication, we took the difficult decision to abandon our plans for the Raspat in ALA. So clearly we announced this a few weeks ago.
As for additional clinical data.
Basically that we had a long evaluation of this feedback the possibilities frozen comps, but actual and taking into account this need for additional data and the need and the changes in the competitive landscape.
New approval in this in this very small communication.
We took the difficult decision to abandon our plans with <unk> in AML. So clearly we announced this a few weeks ago.
Speaker 2: It's the?ofl?ble that the development in itself in different parts of the deaths of crippling disease is somewhere
Okay.
There's still.
Along development in that.
Vertical with cross buy.
Hello.
Speaker 2: Then another element, the number three, here on this list, is that we basically received the feedback of the results from the start of the Tribeca-2 trial and the state of Tribeca-2 trial was a phase 2 trial to evaluate every espouse, grasp, in metastatic TNBC, triple negative breast cancer.
Then another element the number three enrollments list that we recently received the feedback of the results from that.
The start of the Tribeca two trial I Misstated Tribeca two trial was a phase II trial to evaluate every SaaS gross box in metastatic CIBC triple negative breast cancer.
Speaker 2: This was a trial, a view of building on the pancreatic trial and a view of broadly out to other solid tumors. Target enrollment.
This was a trial in view of building on the <unk> I think.
The smile.
Broadening out to other solid tumors.
Target enrollment 64 patients.
Speaker 2: But we stopped enrollment when we saw the disappointing results of the pancreatic phase three trial, the Trivacal-1 trial. We stopped enrollment end of last year. So we had 27 patients enrolled at a time, 11 and 14 respective, in respective groups. This was a randomized trial.
But we stopped enrollment because when we sold the disappointing results of the pancreatic phase III trial that private one trial, we stopped enrollment end of last year. So we had 27 patients enrolled at the time.
11, and 14 irrespective of their respective groups, which is a randomized trial.
Speaker 2: The FHREL steering committee met now very recently in September and reviewed the results of these patients.
The trial steering committee met now very recently hitting that in September and reviewed the results of each of these patients overall.
Speaker 2: over conclusion was that the treatment was well tolerated, that no clinical benefit was demonstrated. Now, it's...
<unk> conclusion was that the treatment for small tolerate.
But no clinical benefit was demonstrated now.
Speaker 2: In fact, difficult to draw any conclusions given the immature closure of the trial and the small number of patients. But absent a clear signal, this result reinforced our decision to stop the GRASPA development altogether.
Okay difficult to draw any conclusions given the immature closure of the trial and the small number of patients.
But absent a clear signal.
This result, reinforced our decision to stop the cross pop development altogether.
Speaker 2: So now obviously this means quite a change for the company. The leap of being abandoned.
I will now obviously this means quite a bit quite a change for the company.
The leap B Amendment.
Speaker 2: So the priorities for the complaint now is a deeper structure.
So the priorities for the company now has a deep restructuring.
Yes.
Speaker 2: Cost reduction and restructuring, we launched it already in earlier this year. We have performed staff reductions in the US and are now have launched a restructuring plan, a social plan in France. This has been launched and now also recently approved by the labor authorities. Ericool provide more detail in terms of what is the financial impact of this cost saving plan.
Cost reduction and restructuring we launched it already in earlier this year.
We have.
<unk> staff reductions in the U S and are now.
<unk> launched a restructuring plan.
<unk> social plan.
This has been launched and now also recently approved by the labor authorities and Eric will provide more more detail in terms of what's the financial impact of this cost savings plan.
Speaker 2: Second priority, after the change is clearly to focus on our clinical program.
Second priority.
After that sort of interchange is clearly to focus on our preclinical programs.
Speaker 2: We have been working on going, as I mentioned, in rare diseases. And then specifically, the new kid on the block, but in the meantime, quite nicely advanced, is work on our extracellular vesicles, the exosome-like program, vesicles derived from loaded red cells. So it's building on our ERCAPS technology. We encapsulate drugs in the red cells, and then we do the fasiculation.
We have.
Work ongoing as I mentioned in rare diseases, and Denver, specifically, the new Kid on the block, but in the meantime, quite quite nicely advanced work on our extra cellular physical C zone like programming.
Vehicles derived from <unk> loaded red cell. So it's building on our Ah recaps technology.
Encapsulate drugs in the Red cells, and then we do the physical issue.
Speaker 2: We have presented first results. This was feasibility in vitro earlier this year. And we are now working on the vivo work and also further feasibility. So this technology holds a lot of promise for what we believe promise on immuno-oncology applications on the one hand, and potentially also for the delivery of...
We have presented first results. This was feasibility XD vitro earlier this year and we are now working on with vivo work and also further feasibility. It's technology holds a lot of promise for what we believe.
On immuno oncology applications on the one hand and potentially also for the delivery of <unk>. So far in May.
Speaker 2: June so far and a non viral gene delivery for example. So work to be done still, but at least an interesting and quite an exciting platform to work on. More to come with on the results soon.
Non viral gene delivery for example, so.
Work to be done still but at least.
An interesting and quite an exciting platform to work them.
More to come we will see.
The results soon.
And then the third and the last bullet on this slide is the.
The strategic partnering so which launched this process already in November last year. After the phase III setback in pancreatic cancer first step has been the.
Yes.
Speaker 2: The sale of the Prince and Facility to Katland.
The sale of the deficit the Princeton facility to Catlin.
Speaker 2: And we are now, we continue with this step behind us. We then put them out. Look at very different strategic options we have now. After a broad screening of our pencil options we've zoomed in on a few valuable, in fact, any neat options. And we mentioned it in the press release. We hope to be able to provide an update soon in the fourth address we set.
And we are now obviously, we continue with this.
When he steps behind US. We then bottomed out looked at very different strategic options, we have now.
After a broad screening of potential options with zoomed in on a few valuable in fact any meat options.
And.
We mentioned in the press release, we hope to be able to provide an update soon and the forecast we set.
Speaker 2: And the partnering we're envisioning is really building on what Aeritec has to offer. We are a listed company. We have an Aeritec product claim. So the test basis, we have a great team.
And the partnering we're investing is really building all of that.
With every tick has to offer are a listed company we have Eric will explain solid cash basis, we have a great team.
Speaker 2: left after breast surgery. We have a manufacturing facility in the old, a cell therapy manufacturing facility, and obviously we have our area kept and every staff platform. So along these elements, we have searched for partnering options and we're now pursuing a very neat options in the ASC.
Left after the restructuring.
We have a manufacturing facility in the old nodes, a cell cell therapy manufacturing and obviously be.
So that recaps and every SaaS platform. So all these elements. We are we have searched for partnering options and we're now pursuing.
Okay.
These options in them.
As we speak.
Speaker 2: So with this, I will stop the introduction and hand over to Eric, who will provide an update on our Q2 and first half financials. He will also at the end, summarize the new slow, after which we'll come back the three of us for Q and A.
So with this I will stop the introduction and hand over to Eric who will provide an update on our Q2 and first half.
Financials, we will also at the end of the summarize the news flow after which we'll come back the three of us for for Q&A.
Speaker 2: Eric Torres yours. Thank you. Thank you, thank you, you, good morning, everyone. Bojara Tuz. We are now reviewing the financial highlights for the first half of the year. We have slide seven of the slide deck and we're starting with PNL information.
Eric.
Chris Yours. Thank you. Thank you good morning, everyone.
We are now reviewing the financial highlights for the first half of this year. We are in slide seven of the slide decks and we're starting with P&L inflammation.
Speaker 2: Gilles just explained a number of unusual significant events happened in the first six months of this year from the sale of the US protection facility to the restructuring and resizing of the company's operation in France and these transactions obviously impacted our financial results as of June 30.
Just explained a number of them.
Unusual significant dividends happened in the first six months of feature from the sale of the U S production facility to the restructuring and resizing of the Companys operational and Charles and these transactions, obviously impacted our financial results of <unk>.
Speaker 2: But beyond the one of impacts of these significant unusual transactions, as we call them, the financial results for the first half of 22 confirm a steady and notable decrease in operating expenses and cash retrieval. And that's in connection with the completion enclosure of most of our clinical development activities and the related decrease in protection.
But beyond the one off impact of these significant unusual transactions as we call them. The financial results for the first half of 'twenty to confirm a steady a notable decrease in operating expenses and cash utilization and that's in connection with the completion and closure.
Most of most of our clinical development activities and the related decrease in protection activities.
Speaker 2: With that net loss for the first half of 2022 was 1 million euro, which is a 27 million improvement over the period of last year and obviously related mostly to the 24.4 million euro net capital gain on the sale of a production facility in Prince.
Net loss for the first half of 2022 was 1 million Euro, which is a 27 million improvement over the same period of last year.
Obviously related mostly to the $24 4 million Euro net capital gain on the sale of our production facility in Princeton.
Speaker 2: operating expenses of 25.2 million euro, we're also showing a 6 million euro decrease that's minus 19% year over year, with a 5.9 million decrease minus 25% in R&D expenses, again, related to the decrease in clinical widow.
Yes.
Operating expenses of $25 2 million Euro. We're also showing a 6 million euro decrease that's minus 19% year over year with a $5 9 million decreased minus 25% in R&D expenses again related to the decrease in clinical development activities.
Speaker 2: Total operating expenses included an asset improvement provision of 2.5 million euro on the Leon production facility related to the end of area space operation.
Total operating expenses included an asset.
Impairment provision of $2 5 million Euro on Belgian production facility related to the ends of a risk based operations.
Speaker 2: And a 1.1 million euro provision for restructuring and repising the also the other just mentioned related to the to the French operation.
At $1 9 million provision for restructuring and resizing the yellow you'll just mentioned.
Related to the two differential duration.
Speaker 2: Income tax included also a provision as of June 30, 2022 of 3.7 million euro and that's actually 4.1 million US dollar reflecting the best estimate today of the tax impact of the capital gain from the sale of the Princeton.
Income tax included also a provision as of June 32022 of $3 7 million erosion, that's actually $4 1 million U S dollar, reflecting the best estimate.
Of the tax impact of the capital gain from the sale of the Princeton facility.
Speaker 2: We're now moving on to slide number eight for comment on cash.
Now moving on to slide number eight for collecting cash.
Speaker 2: So as of June 30, 2022, every tax cash and cash equivalent of 53.3 million euro, approximately 55.8 million dollars compared with 33.7 million euro as of December 31.
So as of June 32022, I would take our cash and cash equivalents of $53 3 million Euro that's approximately $55 8 million.
Compared with $33 7 million as of December 31 last year.
Speaker 2: This is a 19.6 billion increase in cash position during the first half of 2022. And that was the result of the net cash of 37 million.
This is a $19 6 billion increase in cash position during the first half of 'twenty and that was the result of the net cash of $37 million.
Speaker 2: 30% 1.6 million euro received from the cells of the printing facility net in cash inflow, a 24 20.4 million euro of net cash utilization in operating and investing activities, including the cell of the printing facility.
One 6 million Euro received from the sale of the Princeton facility net.
Cash inflow.
24, 24 million euro of net cash utilization in operating and investing activities.
Within the sale of the <unk> facility.
Speaker 2: and a two million euro of net cash generated in financing activities, including a three million.
<unk> 2 million of net cash generation generated in financing activities.
$3 million.
Speaker 2: Euro pre-funding of the expected 2021 R&D tax credit.
Euro pre funding of the expected 2021 R&D tax credits.
Speaker 2: In the period, the variation of the US dollar against the euro led to a 0.4 million euro positive currency exchange.
In the periods the variation of the U S dollar against the euro rates to 0.4 million Euro positive currency exchange impacts.
Speaker 2: I wish to remind that every tech has not drawn any charge on the convertible loan facility, the full-code Ocapsa since last year 2021, and there are no outstanding and requisition of the brad, ???? d John Colck, including technically at learn inform minded board.
I wish to remind.
Every tax does not drawn at a trough on the convertible loan facility the vehicles or <unk>.
<unk> 2021 and there are no outstanding unconverted notes.
Speaker 2: The OKPTA financing line has expired in June 2020.
Okay.
Announcing line as expired in June 2022.
Speaker 2: Already this year, the company initiated, as you'll mentioned, that already a deep restructuring and cost protection program, which is no further intensified with the halt of the BLA process. And considering these ongoing initiatives to reduce operating expenses, the company believes that its current cash position can fund its current programs and plans operating expenses to mid 2024.
Already this year the company initiated as you had mentioned that already a deep restructuring and cost reduction program, which has no further intensified with the halt of the BLA process.
And considering this ongoing initiatives to reduce operating expenses. The company believes that its current cash position can sense. It.
Current programs and plant operating expenses to mid 2024.
Okay.
Speaker 2: Now and before we move on to Q&A, a very quick summary of our key strategic priorities and upcoming milestones in the next six months, and that's slide number nine of the presentation.
No.
Before we move on to Q&A, a very quick summary of our key strategic priorities and upcoming milestones in the next six months and Thats <unk>.
Number nine of the presentation.
Speaker 2: We're mentioning the still ongoing respect study. This is an investigator-sponsored trial, phase one trial in first-line pancreatic cancer with results expected by the end of this year. But again, the company has no further plan at this stage to continue developments with high risk phase in this indication.
I was mentioning the steel ongoing respect study.
This is an investigator sponsored trial phase one trial in first line pancreatic cancer with results expected by the end of this year, but again the company has no for the plan at this stage to continue developments with Ibs phase in this indication.
Speaker 2: And so the main expected NISONE for the rest of the year will be the updates on the ongoing strategic review and partnering process.
And so the main expected milestones for the rest of the year it will be the update on the ongoing strategic review and partnering process.
Speaker 2: The Princeton Society was already a first step in that process, that gave us the means and latitude for a strategic foundation of the company. As you've explained already, we are in this process of evaluating variable strategic options. And we expect we hope to give further updates on these strategic initiatives in the fourth quarter of this year.
The sale of the PREPA facility was already a first step in that process that gave us the means and latitude for a strategic foundation of the company as you've explained already we are in this process.
Anything variable strategic options and we expect we hope to give further updates on these strategic initiatives in the fourth quarter of this year.
Speaker 2: With that, I would like to thank you already very much for your attention. And we will now open the call for Q&A, Gil, Inman and myself will be happy to answer any questions you may have.
With that I would like to thank you already very much for your attention.
We will now open the call for Q&A.
In man and myself will be happy to answer any questions you may have.
Speaker 2: The refrigerator of a shelf, that's over to you. As a reminder to ask a question, you will need to press store 1-1 on your telephone. Please stand by while we compile the Q&A roster.
Operator, Michelle over to you as a reminder to ask a question you will need to press Star One line on your telephone.
Standby, while we compile the Q&A roster.
Speaker 1: At this time, I am not showing any, well, excuse me, one moment.
At this time I am not showing any excuse me.
Matt.
Please standby for your first question.
Speaker 1: Our first question comes from Jacob. Nikhil with Kempgint. Your line is...
Our first question comes from Jacob Mckeel with Kim Ken.
Your line is now open.
Yeah.
Speaker 4: Hi there and thanks for taking my question. I just had one and maybe if you could just, you know, elaborate on what kind of partnership you're looking at at the moment and just give a bit more color on that.
Hi, there and thanks for taking my question I, just had one and maybe if you could just.
Elaborate on what kind of partnership.
Looking at the moment.
Just give us a bit more color on that.
Right.
Speaker 5: Yes, I'll, I'll, hi Jacob, Jacob, um, and she'll hear. So, so basically, yes, we're...
Yes, Hi, Tec Jacob Sheila.
As Youll hear.
So basically yes.
Speaker 5: We have to face the reality that we don't have a lead program anymore, so we still have the early stage programs.
We have to face the reality that we.
We don't have a lead program anymore. So we still have the early stage programs.
Speaker 2: The focus of our partnering is really sort of...
The real focus of our partnering is really sort of.
Speaker 2: trying to leverage our listings, our cash, our preclinical programs, and obviously the team that has done a great development, even if the results were not what we hoped.
Trying to leverage our listings our cash our preclinical programs.
The team that has done a great development.
Even if the results were not what we hoped.
Speaker 2: And so what brings us to is mergers, slash-reverse, mergers type of options. And clearly we can add something to another company and what obviously we don't have is a lead program. And so basically a synergistic way of bringing companies in the space together.
So what this brings us to as mergers flush reverse merger type of options.
Really we can add something to another company and obviously, we don't have is a lead program and so basically.
Synergistic way of bringing company.
Companies.
In this space.
Together so.
Speaker 2: Also, our facility, so we use that our facility and Princeton have a lot of value. Our facility in the only small, but still also for A-cell or a gene therapy company clearly can bring significant value.
Also our facility and so you saw that our facility in Princeton had that a lot of value.
Cynthia.
Mauler, but still also tore a cell or gene therapy company clearly can bring to us.
Significant value.
Does that answer your question.
Yes. It does thank you very much okay. Thank you.
Okay.
Speaker 1: At this time, I am not showing any other calls in Q.
At this time I am not showing any other calls in queue.
Speaker 1: I would now like to turn the conference back to Jill Bion for closing remarks.
I would now like to turn the conference back to Jim O'brien for closing remarks.
Thank you Michelle.
Speaker 2: Just want to thank everyone for this being a disqual for your attention or your question for your continued support of every tech.
Just wanted to thank everyone participating in this call for your.
Attention for your questions for your continued support of <unk>.
Speaker 2: and wish you a great rest of the day and look forward to speaking again at the next occasion that are our next call probably. So thanks a lot and have a great day.
And.
Wish you a great rest of the day and look forward to speaking again at the next occasion dollar our next call probably so thanks, a lot and have a great day.
Speaker 1: This concludes today's conference call. Thank you for participating. You may now disconnect.
This concludes today's conference call. Thank you for participating you may now disconnect.