Q3 2022 MorphoSys AG Earnings Call
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Ladies and gentlemen, thank you for standing by welcome and thank you for joining the third quarter 2022 financial results conference call of more for fifth.
Throughout today's recorded call all participants will be in a listen only mode.
The presentation will be followed by a question and answer session. If you would like to ask a question you May Press star followed by one on your Touchtone Touchstone.
Touchtone telephone.
Please press the Star key followed by zero for operator assistance I would like I would now like to turn the conference over to Julia Neugebauer.
Ladies and gentlemen, good afternoon, and good morning. My name is doing a nice bow I'm head of Investor Relations at proposals and it's my pleasure to welcome you to our third quarter 2022 financial results Conference call.
Joining me on the call today are John Paul Kress, Chief Executive Officer sung Lee Chief Financial Officer, Tim Demoed, Chief Research and development Officer, and Joe <unk> U S General manager.
Before we begin I'd like to remind you on slide two of that some of the statements made during the call today are forward looking statements, including statements regarding our expectations for the commercialization of our products and our development plans and expectations for the compounds in our pipeline as well as the development plans of our collaboration partners.
These forward looking statements are subject to a number of risks and uncertainties that may cause our actual results to differ materially including those described in mycosis 20-F, and annual report for the year ended December 31, 2021, and from time to time and other SEC documents of muscle.
It is important to keep in mind that our statements in this webcast speak as of today.
On slide three you'll find the agenda for today's call <unk> will begin with an overview and we'll give an outlook Joe will provide a commercial update and Tim will provide an update on our development pipeline before turning the call to <unk> for a summary of our third quarter 2022 financial results.
Following these prepared remarks, we will open the call for your questions.
With that I'll now hand, the call over to Sean.
Welcome everyone and thank you for joining us today.
This was a busy quarter for muscle disease with a lot of activity on the <unk>.
Before I come to an update on our own programs.
I wanted to acknowledge the recent news from Hirsch.
<unk>.
We are disappointed by these results as they.
Millions of people impacted everyday by Alzheimer's disease.
We are grateful to the study participants.
Their contributions to this research.
And thank our long standing partner Rosh, while they work on the graduate program.
Their commitments to the Alzheimer's community.
While the results of the <unk> trials were disappointing.
Validates our strategy to invest in and develop our own pipeline.
We have made significant progress executing on our own programs.
And priorities over the last months.
Before we dive deeper into the progress of our pivotal studies and.
And updates on the commercial execution.
I would like to call out two highlights.
First to limit to a stop.
Our mid stage assets that we acquired from constellation.
And was previously known as CPI <unk> hundred nine.
In late October we published preliminary results from the ongoing phase one two study.
That support the potential application in a broad range of advanced tumors.
Tim will share more shortly.
And second.
We strengthened.
Our balance sheet with $300 million from royalty pharma, which gives us additional flexibility.
Our pivotal phase III studies with collaborate.
And <unk> are enrolling well.
And we continue to be encouraged by these progress.
We are highly committed to enhance just thought out of care for patients with difficult to treat blood cancers.
And we are laser focused on delivering results for these important programs as soon as possible.
To elaborate CBS being studied in first line myelofibrosis in combination with rux <unk> nib in the manifest two pivotal study.
And we expect pivotal data in the first half of 'twenty 'twenty four.
If approved.
This regimen could have the potential to chance to standard of care for patients and generate more than $1 billion in peak sales.
We are excited about pillar <unk> potential disease, modifying attributes where the data continues to mature.
Beaumont Juvie the latest opportunity is in the first line <unk> setting.
The medical need is still high and there is significant interest from the medical community in the frontline study, which has a positive effect on enrollment.
The study focuses on high risk patients with.
With an ipi score of three to five.
Which we believe distinguishes this study from others.
I am very proud.
We'll have a strong presence at ash this year.
With a total of 14 ups trucks accepted and fall.
On patients.
The comprehensive set of data we will present.
<unk> our confidence in our pipeline.
And our late stage clinical programs.
Tim will speak in more detail about what to expect at ash.
Turning to commercial.
Last quarter.
We experienced headwinds from increased competitive activity for modules.
As indicated in the previous quarter.
Additional treatment options now available for patients with relapsed or refractory deal. This year led to a sequential decline of module sales in the fourth quarter.
And an updated financial guidance for the full year.
With that I will hand over to Joe will provide more details.
Joe Please thank you John Paul.
Turning now to our mines UV commercial results.
Our <unk> net sales in the second quarter were $22 2 million, which.
Which represented a 1% year over year growth and a 5% decline on a sequential basis.
Underlying demand, however grew 8% year over year.
Despite the competitive challenges.
We continue to maintain leading market share in second line, new patient starts and we expanded our reach to approximately 1350 sites of care ordering months since launch.
Proximately, 80% of sites are repeating their orders with 70% of orders coming from the community.
Our field engagement continues to remain strong with approximately 90% in person interactions.
We're the teams are reinforcing <unk> value proposition as the only in practice outpatient immunotherapy in second line <unk>.
Our efforts continue to focus on ensuring consistent positioning and clear differentiated messaging on the strength of demand UV data, particularly in second line.
In addition, after strong efforts throughout 2022, we've.
We've continued to see gradual progress in median patient persistence this year.
We continue to work with physicians, so that appropriate patients have the best and most durable outcomes possible.
To date, we have seen a number of patients continue on treatment for more than a year with some patients actually on therapy for more than two years.
With that I'll turn the call over to our new Chief Research and development Officer, Tim for an R&D update.
Thank you Sir I'm very excited to be here and worked with an accomplished team of experts to drive our pipeline forwards.
I'm, a physician by training and a direct developer by heart.
Have dedicated for my career to bringing innovative medicines to cancer patients.
And never lose sight of how urgent and important that work days.
Because on the other side of each discovery, we make our cancer patients and their families waiting for hope.
But jeremy tumor photos, what's the company's history and its promising pipeline.
We do have the potential to change the trajectory for patients living with some of the most devastating and difficult to treat cancers.
So starting with <unk>, our late stage <unk> inhibitor that is being investigated as a potential first line treatment for patients with myelofibrosis.
Today, the standard of care for Myelofibrosis, it's JAK inhibition.
But only 50% of myelofibrosis patients have been adequately treated pivots approach and currently myelofibrosis treatment focuses on symptom relief rather than the true disease modification.
The body of data we have presented thus far.
Collaborative may enhance the current standard of care in the first line treatment of myelofibrosis.
Includes findings that collaborative may affect cellular defect in myelofibrosis.
Thereby addressing the root cause of the disease.
As a result.
Great deal of enthusiasm and excitement about <unk> within the physician community.
Our phase III trial manifest too.
On track and progressing well.
We will continue to drive patient recruitment across geographies and we are committed to reporting topline data in the first half of 2024.
Moving onto Trastuzumab, our CD 19 targeting immunotherapy and.
In September we presented results from the ongoing our mind study showing that's tougher.
Lenalidomide.
Followed by <unk> monotherapy provided long term efficacy in patients with relapsed or refractory <unk>.
Were treated for at least two years.
This also included six patients were on treatment for five years or more.
Additionally, the results showed that the frequency of adverse events declined after patients transition from combination therapy to monotherapy.
We hear from Oncologists. This durability of response provides some of the confidence when discussing therapies for their patients.
Okay.
Beyond the currently approved indication.
We're exploring <unk> in first line <unk> as well as additional types of lymphoma.
R. Chop is the current standard of care for patients with previously untreated <unk>.
But this treatment does not work for about 40% of patients, especially for those patients with high intermediate and high risk disease.
By adding <unk> to our shop.
We believe we do have the potential to make a difference for these patients.
Our phase III <unk> studies.
Studies from mines and in mind are on track and progressing well.
At the American Society of Hematology 2022 annual meeting in early December we will built on the data we have presented this year.
Our new data will be featured in 14 presentations, including for oral sessions supporting the potential benefit of first line therapy for <unk> in myelofibrosis.
<unk> and <unk> I am proud to say that this is the most data more focus have presented at a medical Congress to date.
For collaborative we will present, new data from our ongoing phase II manifest study.
Both share results highlighting durability of response as well as safety results beyond 24 weeks for <unk> in combination with rux.
In JAK inhibitor nave patients.
We will also release results.
<unk> clinical benefits and biomarker changes, indicating potential disease modification.
<unk> treatment with <unk> monotherapy.
Or in combination with <unk>.
<unk> took them up we will release final 18 month data from the first line study.
Testing the safety of tougher system up or tougher settlement, plus lenalidomide and R. Chop in patients with newly diagnosed <unk>.
This update includes data on overall response rates duration of response and progression free survival rates and minimal residual disease and short <unk> negative patients.
We'll also have presentations on <unk> negativity.
<unk> as a potential surrogate endpoints and predictor of outcomes after frontline therapy, with <unk>, plus lenalidomide and our shop and <unk>.
We are committed to helping patients.
Our options for first line treatment and beyond.
These latest presentations showcase the quality of sign and potential solutions coming out of more focused research and development efforts.
Now, let's turn our attention to CPI <unk> hundred nine now also known as <unk>, our mid stage investigational next generation <unk> inhibitor.
<unk> was designed to improve upon first generation <unk> inhibitors through increased potency longer residence time on targets and a longer half life.
Last month, we presented results from our ongoing phase one two study at the 2022 <unk> Symposium also referred to as the Triple meeting.
Romney metal stabbed monotherapy was found to be generally well tolerated and resulted in objective responses in biomarker selected patients with ovarian and endometrial cancer.
As well as patients with mesothelioma.
And in unselected patients with peripheral T cell lymphoma.
Slide 12 provides more details on the encouraging early clinical data.
These results are an important step towards demonstrating proof of concept for <unk>.
Theyre very excited about our pipeline potential and we expect to deliver a new clinical data over the next several years.
I will now turn the call over to Sam for a review of the financials.
Thank you Tim we're pleased to share our financial results for the third quarter of 2022.
Moving to slide 15, as Joe stated earlier <unk> sales were 20.
$22 $2 million in the third quarter declining 5% sequentially.
On a year over year basis, we saw 1% growth as the third quarter of 2021 benefited from $900000 in clinical trial sales.
In the third quarter, we recorded $4 9 million euros in royalty revenue from <unk> sales outside of the U S from our partner insight as our partner insight has recently stated sales thus far have been mostly from Germany, we expect royalties to grow further as <unk> achieved pricing and reimbursement.
In other countries in Europe .
Moving to slide 16 total revenues in the third quarter were $95 8 million euros compared to $41 2 million euros in the same period a year ago.
This increase resulted mainly from higher revenues from licenses due to the out licensing agreements with high bio.
Total cost of sales was $8 1 million euros in the third quarter compared to $7 5 million euros a year ago.
Cost of sales specific to <unk> U S product sales was $4 5 million euros in the third quarter of 2022.
Turning to operating expenses.
R&D expenses in the third quarter of 2022 were $77 8 million euros compared to $64 4 million euros for the third quarter of 2021.
The year over year growth was driven primarily by the achievement of our clinical programs.
Selling expenses decreased to $23 5 million euros in the third quarter compared to $32 4 million euros for the same period in 2021.
Recall that we made additional investments in 2021 to support the first full year of the <unk> launch.
Going forward, we will continue to carefully monitor our Mon juvie co commercialization investment to ensure that it is commensurate with revenue expectations.
G&A expenses in the third quarter were $15 6 million euros compared to $19 4 million euros into third quarter of 2021.
The year over year decrease is due to be transaction costs for the constellation acquisition.
Which was completed in the third quarter of 2021.
For the third quarter of 2022, we reported a consolidated net loss of $122 9 million euros compared to a net loss of $112 8 million euros for the same period a year ago.
Turning to our balance sheet. We ended the third quarter of 2022 with cash and investments of 1.04 billion euros compared to 977 million euros at the end of 2021.
The cash balance includes $300 million in proceeds from the development funding bond from royalty pharma.
Our strong cash position will enable us to get through multiple clinical milestones, including the pivotal data readout for manifest too.
Turning to our guidance for 2022 on slide 17 recall that we issued our updated guidance on October 21, which I'll summarize for you.
<unk> U S. Net product sales are expected to be approximately $90 million.
Gross margin for module B U S. Net product sales are anticipated to be in the range of 75% to 80%.
We expect R&D expenses to be in the range of 275 million to 300 million euros.
SG&A expenses are expected to be in the range of $150 million to 165 million euros.
With that I would like to hand, the call back to John Paul.
Before we go into Q&A I would like to conclude with a few words too.
To summarize we remain focused on driving our pivotal studies and are very encouraged with the pace of enrollment.
They represent potential large value, creating opportunities over the mid to long term.
Our teams are highly engaged on executing commercially driving monitoring via wellness and education.
And we have a strong balance sheet and cash runway.
Thank you and with that we will open the call.
Call for Q&A.
Operator please.
Ladies and gentlemen at this time, we will begin the question and answer session.
Anyone who wishes to ask a question you May press star followed by one on their touch tone telephone.
You wish to remove yourself from the question queue, you May press star followed by two.
In the interest of time, please limit yourself to two questions only.
Using speaker with Goldman today, please lift your handset before making your selection.
Anyone has a question you May press star followed by one at this time one moment for the first question. Please.
The first question comes from the line of James Quigley with Morgan Stanley . Please go ahead.
Hello, and thank you for taking my questions. So.
First one on.
Mr stopped.
Interesting any data question.
From what you presented so far do you have any idea, which which countries you are going to be leaning towards whether the biomarker strategy will be when we move to the optimal strategy.
And what are the next sort of.
Milestones and data points here, when we think about the development program going forward.
And then also.
Told me not to start.
Thinking about your cash runway.
Well. This is always in the plan you mentioned before your cash will start first half 'twenty for US was this always in the plan.
Encompassed within that.
Within that commentary and then second question on JV competitive dynamics.
So you mentioned that about 70% of the interest savings is coming from the community setting.
But to what extent is the.
The car T products, having an impact in the community or should we think that the sales from the academic setting all going to be.
Most of that risk here. Thank you.
James This is Tim.
Regarding Tony.
As I mentioned in my prepared remarks.
Some early very encouraging data presented at the Triple meeting.
The Kansas, where we saw responses and Thats also shown on the slide number 12 in that a little bit more detail or some gynecological indications clear cell ovarian cancer.
And the mutual cancer those are areas <unk>.
Selected patients as well as the mesothelioma patients. These are about one selected patients and we also saw quite a nice response rate in patients with PTC. So those were unselected patients.
<unk>.
In terms of next milestones for the program.
It really.
Still relatively early in the program encouraging data and the team is running the study moving enrollment and we are looking to disclosing more data as the data matures.
And James This is Don I think you asked a question about cash runway with respect to <unk> metal stat.
Obviously with over 1 billion euros at the end of Q3.
We're well capitalized to fund the ongoing pivotal studies.
We get comfortably pass the window for.
Hello, <unk> pivotal data.
With regard to <unk> metal stat.
The current plan is we have more than enough cash to fund the study through the current phase II study and obviously, we're encouraged by the early results we've seen.
And we will take this one step at a time and if this progresses beyond phase two then.
We'll provide an update at that point.
Okay.
Hi, James as it relates to the competitive dynamics you outlined between the academics and the community with the new approvals.
We are seeing some referral pattern shifts as one would expect when a new treatment is available.
And the academic academia.
Physicians are trying and understanding how these new options will fit into their treatment algorithm.
Our teams continue to build awareness and understanding as the only in practice outpatient immunotherapy for second line <unk> patients.
Alright, Thank you very much.
Yeah.
The next question comes from the line of Jason Butler with JMP Securities. Please go ahead.
Hi, it's Roy in for Jason Thanks for taking our questions I was going to ask if there was anything you could do.
<unk> data.
But maybe inflect the sales for longevity, but it sounds like you're actually.
Maybe thinking about pulling back more than anything else I guess should we just expect steady growth and more focus on the upcoming clinical readouts.
How do you think about the sales trajectory and then for Tim you said on the R&D number of weeks now I guess any planned changes to the company's approach a focus for the research and development efforts.
Thanks for your question this is John Paul.
Unknown Juvie look.
Market is evolving as we've mentioned a couple of claims.
And we see the largest opportunity for.
The the product in the frontline.
<unk>. That's why we are so keen on our phase III trial mining the data that Tim alluded to on the.
Phase II trial in this indication and also very important and interesting and I encourage you to.
Lucas what we will we will disclose the Astra communicated to us there.
<unk>.
That being said we continue to.
Engage and communicate on the current second line indication, which is very important for us we think that the place here, but experienced who says we've been.
Communicating that is becoming more competitive so again I think the way to look at it it's a process.
We are well on for the next opportunity in the first nine deals this year and we continue to drive out where our efforts both in clinical and commercial.
Now on R&D, I think I can let Tim.
Addresses question, we're very pleased with the first.
And weeks with team and he's a great leader and superior experience in oncology, but then Tim do you want to come on them that sure.
Sure Hey, Ron.
Thanks for the question.
Clearly our mission is to become a leader in the Haemonchus space with.
Multiple commercial products.
The R&D priorities are very clear <unk>.
Has the potential to be best in class.
Molecule and the trial in MF myelofibrosis is going very well and we're really laser focused on that enrollment of the manifest study.
In <unk>, we have a number of opportunities.
<unk> in my prepared remarks, the first <unk> study there are other lymphoma indications the mcl in the telecom lymphoma.
And feature touched already a little bit.
The very intriguing early data on our <unk> two inhibitor toward the Metro staff. So all in all what.
<unk> is a very very dedicated group experience and a great pipeline, so super happy to be here.
Great. Thank you.
Yes.
The next question comes from the line of James Gordon with Jpmorgan. Please go ahead.
Hello, James Gordon Jpmorgan, Thanks for taking my questions.
Two please first of all it was just the one GB is a single digit growth in Q3, if you adjusted for the potential demand.
Regarding Super high single digit growth in Q4.
And as we loaded to 2023.
With that we will see growth in the products.
Is there a growth outlook for the product in terms of U S sales.
The second question because of the ease of <unk> se.
If it continues to look promising.
Consider partnering the asset.
Further development and potentially get some most of income with the plan that you'd want to do it yourself.
Hi, James This is Don I'll take your first question you asked about.
The growth in Q, the implied growth in Q4 and the outlook for 2023.
I'll just say with respect to Q4, there are some special dynamics, we've seen in past Q4s obviously.
It's very typical in our industry to see some inventory.
Inventory build in quarter four.
And then.
The destocking of that in quarter, one so I think with regard to those dynamics nothing has changed.
Moving onto 2023.
Is something that we're evaluating obviously with the introduction of additional competition. This year that we've spoken about.
We will get to 2023 at the appropriate time, but this is an ongoing evaluation for us.
Pertaining to.
The H two.
James.
We definitely have very pleased with the way the <unk>.
$8 four being what we released is exciting we think we have the best in class I sit here and definitely leaps away from.
What was the first generation.
Product on the market showing.
Excitement is growing from the community we hear that from the Kols in the several indications.
Assuming this phase two.
The good thing is team.
Traced out.
We have a couple of options here in terms of indications with these basket trial, which are.
Our tackling these are <unk> mutation.
Smaller segments, but which allows a lot of <unk>.
<unk> is to address unmet need.
And there are also possibilities for larger market segments in.
Solid tumors like postpaid, it's early days, but we're looking at depth.
And again this would probably imply that.
We could.
Look at some partnerships in the future, but it's a bit early to say here, we want to keep the Optionality open.
And remember we have the rights for all territories or indications, we arent really three four.
Sorry.
Doing anything we want with this asset depending on how the data unfolds, so far very exciting and honestly when we acquired constellation our focus was so much until a vaccine for good reasons that this is a good surprise, we like the asset at the time, but it is going even better than what we thought.
Thank you.
Ladies and gentlemen, if you would like to ask a question. Please press star followed by one on your telephone.
The next question comes from the line of Victor flock with stifle.
Please go ahead.
Hi, Thanks for taking my question.
I have one on the CPI <unk> hundred nine.
I was wondering if you could comment a bit on <unk>, it's a very common question.
Should we be worried about the level of the <unk>.
Those redemption.
Interruption that wisdom.
Before.
In the Indian being trial or do you think it's kind.
Kind of market pressures. Thank you.
Hey, Victor Tim.
Yes, so as you heard already there is a lot of excitement for the molecule.
This best in class potential.
A phase one study in heavily pretreated patients a phase one two study so patients have seen many many prior therapies, including chemotherapy.
A highly heterogeneous patient population and we're quite pleased with the fact that despite that degree of prior therapies patients are responding to the therapy.
Making comparison regarding safety between this agent and other agents I think it's a bit premature.
Premature.
And we continue to investigate the agents and find the optimal setting for it.
Use potential use in clinical trials and clinical practice later on.
Victor I would add that.
There is obviously.
Interesting data set.
That could happen with the.
Are there assets that has been acquired by.
Another company.
So the field is evolving I think this is what we are trying to say here pretty quickly on this on this class has been under.
Mind Magnus for a long time, and I think there is potentially a new era of it we won't build one to risks expectations too much here, but it's exciting and we're engaging on the on this.
In a very meaningful way.
Okay, great. Thanks, and I have a follow up if it's possible just a few words on that.
Green triangles zone.
Any comment on enrollment because there is a lot of.
Im doing trials.
And this indication with these kind of drugs, so I don't know.
You can make any comments.
<unk>.
And when should we expect.
First.
Data from this trial thanks for that.
So Victor this is a.
Study, that's driven by Suncor.
So we cannot comment on the progress of this study.
Okay, Okay, great. Thanks.
The next question comes from the line of Suzanne Vattenfall, Zhang with Scott Kim Smith. Please go ahead.
Hi, guys. Thanks for taking my questions a couple from my side.
You previously guided for.
$550 million in U S cable from <unk> and <unk>.
In the light of continuing to hover around $20 million per quarter. How do you look at this huge potential going forward.
What do you believe me as far as Joseph grow from here and what gives you confidence that frequency will materialize in the future and then I have a follow up.
This is ana thanks for the question. This is song so obviously, we have eight full quarters behind us now.
We're in a.
Competitive landscape. So I think it's fair to say that the peak sales.
It's quite aspirational and obviously, we evaluate this on an ongoing basis.
So.
We constantly revisit this but given the circumstances.
This is something we could talk about in the future, but right now I would say it's more aspirational.
Understood and.
And then another question I had.
Can you.
Can you provide essentially run rate guidance.
With given that accounting for the 50 50 with inside <unk> interim final royalty Stefan from royalty pharma.
P&L has become somewhat more complex. So can you help us understand what is the current cash burn on the annual basis.
On Medicare.
Yes, maybe I can answer the question this way I mean with over 1 billion euros at the end of Q3.
We have more than sufficient cash to get to our most important inflection point and that's manifest too.
I'd mentioned in my prepared comments or in answer to an earlier question.
We will get comfortably passed that window.
No.
With the additional funds, we received from royalty pharma recently $300 million drawn.
Development funding bonds that gives us additional flexibility.
But.
We're driving the organization right now towards our most important value creation opportunity and again thats.
The <unk>.
<unk> for manifest too.
So as you know how this industry works there is multiple opportunities to recapitalize the business.
Based on our significant positive pivotal data.
I would add.
On what.
I mean, we should not.
Lose sight on the giant catalysts that we have ahead of us we still leverage the readouts in the midterm.
And put some Shelly news on the enrollment of our trial in the near term.
Alright, maybe one clarification.
Margaret JV sales now in other incomes from yourselves.
Royalty obligations from your debt position and most importantly, the convertible bonds.
It.
It seems quite near potential 15, readouts with logistic.
Some color on that.
Hello, and thank.
Thank you Stephanie and financing situation.
Yes. So I appreciate that question. So on the convert so you correctly state due in October 2025.
We have some time to obviously think about this but.
We're keeping all options open we take our obligations very seriously and again, we have the wherewithal here with over 1 billion euros at the end of Q3 to consider multiple options. So I think I'd like to leave it at that and we haven't ruled anything out.
With regard to the.
The development funding bond.
The repayment of that doesn't start until Q3 of 2024.
Thanks Ross.
The next question comes from the line of.
I'll go out with safety.
Please go ahead.
Yes, hi, thanks for taking my question.
Two maybe.
On SG&A, you're selling cost are down about 20% year to date.
With the quarterly run rate at about 24 million use now.
How should we think about this line into 'twenty three.
Is there any more room for cost rationalization or this could be flat from here until the availability promotions thoughts or we should expect some increases given the inflation.
Similarly for the general and admin overheads, you think this kind of stabilizes from here or there is.
More room to drive cost out and then just quickly on your in mind try and I could see that as per the clinical trials. The primary completion has moved.
For.
Versus June 'twenty earlier.
I just wanted to check if it's still likely to read out.
The second half of next year.
Moreover, 2000 2041.
Maybe if I can squeeze in one clarification did you say there was some clinical trial purchases and thank you.
Anthony This is Tom.
The answer to your last question there were no clinical trial purchases in Q3.
What I mentioned in my opening statement as a year ago. In Q3 2021, there were $900000 of clinical trial sales so that impacts your year over year comparison.
Okay.
And then I'll just take your first question about selling expenses.
Behind <unk>. So you are right to point out you have seen some significant declines year over year and.
Obviously, even on a sequential basis this is being titrated downward.
Listen.
Both us and inside want to make this profitable so that's important to both companies and in the first full year.
Both of US put additional investments behind the first year as you would expect in a launch but as well remove from that first year, we will continue to monitor this.
Want to emphasize again something I mentioned in my prepared remarks, we will continue to.
<unk> our cost structure for this collaboration.
To make sure it's commensurate with the revenue expectations.
And then on the G&A front.
We're constantly looking at ways to.
Optimize our cost structure and we've taken a lot of steps towards the end of last year and even at the beginning of this year across all functions with regard to G&A.
We are not looking for any outsized movement upward in the future in fact, we look at this very carefully.
And we will get to the 2023 guidance at the appropriate time, but.
I wouldn't expect any outsize movements on G&A.
This is Tim on the primary completion date for <unk>, we're looking at end of 2023.
Thank you.
Ladies and gentlemen.
Okay.
I would now hand, the conference over to Julian.
Thank you.
Ladies and gentlemen. This concludes today's conference call. If any of you would like to fill up investor maintenance chemotherapy is available for the remainder of today. Once again, thank you for joining our call and good day and Goodbye.
Okay.
Okay.
Ladies and gentlemen, the conference is now concluded.