Q4 2022 Cerus Corp Earnings Call
Yeah.
Good day, ladies and gentlemen, thank you for standing by walking through the Sewerage Corporation fourth quarter and full year 2022 earnings conference call. At this time, all participants on a listen only mode. After the speaker's presentation. There will be a question answer session to ask a question during the session.
Can you. Please press star one on your telephone you will then hear an automated message advising your hand is race to withdraw your question. Please press star. One again, please be advised that today's conference is being recorded I would now like to hand, the conference over to Georgia, Trujillo seriousness senior director of Investor Relations. Please.
Go ahead.
Thank you and good afternoon, I'd like to thank everyone for joining us today.
Today's webcast, we are simultaneously displaying slides that you can call.
You can access the slides from the Investor Relations website at IR got serious dot com.
With me on the call are Obi, Greenman, Cerus, President and Chief Executive Officer.
Kevin Green sources, Chief Financial Officer Dr.
Dr. Lawrence crashed Cirrus is chief scientific officer.
Does that get Robyn Sirius as Chief operating officer, and Carol Moore.
Senior Vice President of regulatory affairs and quality.
Cerus issued a press release today announcing our financial results for the fourth quarter and year ended December 31, 2022, and describing the company's recent business highlights.
Can access a copy of this announcement on the company website at Www.
Dot com.
I'd like to remind you that some of the statements. We will make on this call relate to future events and performance rather than historical facts and are forward looking statements.
Samples are forward looking statements include those related to our future financial and operating results, including our 2023 product revenue guidance and goals.
<unk> expenses anticipated cash used from operations grew.
Gross profit and gross margins as well as commercial development efforts future growth and growth strategy future product sales product launches ongoing and future clinical trials ongoing and future product development.
And our regulatory initiatives, including the timing of these events and activities.
These forward looking statements involve risks and uncertainties that could cause actual events performance and results to differ materially.
They are identified and described in today's press release and under risk factors in our Form 10-K for the year ended December 31 2022.
We will file shortly we undertake no duty or obligation to update our forward looking statements.
On today's call. We will also be discussing non-GAAP financial measures, including non-GAAP adjusted EBITDA.
These non-GAAP measures should be considered a supplement to and not a replacement for measures presented in accordance with GAAP.
For a reconciliation of non-GAAP financial measures to comparable GAAP financial measures. Please refer to today's press release.
We'll begin today with some opening remarks mogens.
I'll buy the best to discuss our recent business highlights and Kevin to review our financial results.
We'll conclude with commentary from Obi with closing remarks, and now it's my pleasure to introduce Obi Greenman, <unk>, President and Chief Executive Officer.
Thank you Joel and good afternoon, everyone.
In 2022, Crs kept up its momentum and progressing on our goal to safeguard the global blood supply falling upon efforts of establishing intercept as the standard of care in multiple geographies. Most recently in the U S Army.
The last several calls we have spoken about the momentum of the business.
We continue to see this trend play out in the fourth quarter of sustained growth.
Platelet business.
Driven by excellent commercial and operational execution as we managed to grow with an evolving manufacturing capacity expansion.
Our success in deploying the intercept blood system for platelets in the U S drove a record year for the company.
The significant growth the company has realized over the past five years is enabling us to meet a paradigm shift in transfusion medicine.
Here, it's purely a strong 2022 top line results in January .
We report that in addition to a robust top line. The company has driven sustained margin expansion run the business with low cash used from operations over the past several quarters.
Leverage from our SG&A investments and ended the year with a very strong balance sheet.
We remain encouraged by the foundation for growth upon which our core business franchises built and expect a few near term challenges we referenced in our prerelease moderate as we progress through the remainder of the year.
Having established intercept as a standard of care opinion national market share.
We have placed a substantial focus on being a trusted and reliable partner to our customers.
The $13 million intercept platelet and plasma versus cash used today.
To realize our mission Crs continues to work with those partners to expand manufacturing capacity in multiple facilities.
Susan itself to continue to grow intercept blood system adoption in 2023 and beyond.
We see significant opportunity to grow our top line over the next several years.
And now in 2023 will have the necessary capacity to realize that growth.
This growth is expected to be supported by the extension of our leadership in markets. We currently serve.
Serving the new geographies, such as Canada, China, and Germany, and the commercial success of new products, including our intercept fiber has been complex.
The opportunities ahead for service, particularly in the context of the organic growth of the company's total addressable markets or terms are significant.
We expect these comps to continue to grow surpassing $1 5 billion a $200 million.
The global and U S platelet opportunities respectfully.
Over the next five to seven years, driven by mid single digit overall platelet demand growth.
I would now like to turn the call over to Vivek to discuss the fourth quarter revenue highlights.
Thank you Obi and good afternoon to everyone joining today's call.
Product revenue for the fourth quarter of 2022 grew 10% on a year over year basis, and 11% on a sequential basis. Once again driven by a strong contribution from our U S platelet franchise.
In North America, we saw continued growth in platelet utilization across the U S blood center customers with product revenues growing 27% year over year and 16% sequentially.
In EMEA ongoing currency headwinds adversely impacted year over year results. However, a 6% increase in volumes relative to the third quarter drove sequential product revenue growth of 3%.
You will recall during the fourth quarter, we announced that senior secured health, Canada approval for a seven day platelet shelf life claim.
The company has been diligently working with Canadian blood services or CBS to deploy the intercept blood system in Ottawa.
This approval allows CBS to begin rolling intercept out across their network of blood centers.
This rollout is ongoing and I look forward to providing more updates about our progress in Canada on our future quarterly earnings call.
I will now turn it over to Kevin to discuss our results and outlook in more detail.
Thank you Bob and good afternoon, everyone.
Regards substantial revenue growth in 2022, and our disciplined approach to operating expenses.
We continue to move the business ever closer to our goal of cash flow breakeven.
We expect this dynamic will continue during 2023.
We posted fourth quarter 2022 product revenue of $44 million.
Representing year over year growth of 10%.
Led by sales in North America.
Full year 2022 product revenues of $162 million were up 24% year over year.
Also driven by North American sales.
FX headwinds continued to impact the top line.
Negatively impacting reported revenues by 4% for the fourth quarter and 5% for the full year.
This headwind was offset by intercept platelet sales growth across our U S customer base.
Sales to the largest blood center customers growing 18% year over year on a quarterly basis and.
47% year over year on an annual basis.
Meanwhile, sales to other blood centers grew 44% year over year on a quarterly basis, and 59% year over year on an annual basis.
In EMEA as previously mentioned the continued strength of the U S dollar negatively impacted the comparable growth year over year as reported in U S dollars.
This FX headwind impacted sales throughout 2022 and.
And we anticipate that it will continue at least partially through 2023.
Accordingly.
Revenue guidance is based on U S dollar to euro parity for the year.
I'll discuss this further in a moment.
Okay.
Looking at pure growth of kits sold.
Full year platelet kit growth in the U S was 49% on a year over year basis.
While growth internationally was 9% on a year over year basis.
Meanwhile.
Full year growth in the calculated number of treatable platelet doses reflects a 48% year over year increase in the U S and a 12% increase internationally.
In terms of product mix for the quarter sales of intercept disposable kits represented over 93% of our Q4 product revenue at <unk>.
Proximately, 95% of our full year 2022 product revenue.
Government contract revenue, which is incremental to our product revenue and is not included in our annual revenue guidance totaled $7 $3 million in Q4.
Up from $6 $8 million in the prior quarter.
As a reminder in.
In addition to the work with U S BARDA on Red blood cells, and the whole blood initiatives supported by the FDA.
From the department of Defense for Leo.
Our non frozen by authorized formulation of IFC will be recognized on this line over the next two years.
The contract with the Dod as a milestone based contracts, which differs from the bill is incurred contracts that we have with BARDA and the FDA.
Turning now to our product gross profit and gross margins.
Our fourth quarter product gross profit was $24 5 million.
Third to $24 million during the prior year period.
An increase of over 20% year over year.
Product gross margin for the fourth quarter was 55, 7%.
More than 450 basis points, when compared to the prior year period.
35 basis points sequentially.
As we've mentioned before with the majority of our Cogs denominated in euros.
Strengthening U S dollar supportive to our gross margins, particularly for sales of products that are U S dollar denominated.
In addition.
As our volumes have increased and the Cogs reduction efforts that have been underway take effect.
We expect to see modest but continued improvement to our gross margins.
Moving on.
Our fourth quarter operating expenses totaled $41 8 million.
Up from $37 6 million in the prior year period.
Driven primarily by investments in R&D.
By expense type fourth quarter, R&D expense totaled $18 6 million.
Paired to $15 6 million during the prior year.
Fourth quarter SG&A expense was $23 2 million.
Compared to $22 million in the prior year period.
While we all have to contend with inflationary pressure.
We are committed and remain focused on driving financial discipline in order to deliver operating leverage and improved bottom line results.
On the bottom line reported net loss attributable to <unk> for the three months ended December 31, 2022 was $13 6 million.
<unk> per share.
Compared to a net loss attributable to <unk> for the year ago period, totaling $9 $1 billion with <unk> per share.
Our fourth quarter losses as reported by our non-GAAP adjusted EBITDA narrowed.
<unk> narrowed by 14% and totaled to a negative $3 7 million compared to a negative $4 $3 million during the fourth quarter of 2021.
Okay.
Full year 2022 losses as reported by our non-GAAP adjusted EBITDA were 58% better than the prior year total.
With the full year 2022 figure totaling to a negative $12 4 million.
Compared to a negative $29 $5 million for the full year of 2021.
We're very pleased with our progress on this front and remain steadfast in our efforts to reach our stated goal of reaching cash flow breakeven.
Turning to the balance sheet and cash flows.
We ended the fourth quarter with robust cash balance of $102 $2 million of cash and cash equivalents on the balance sheet.
In terms of cash utilization or cash used from operations for the year was $25 6 million.
Compared to $33 9 million during the prior year period.
To finish my update today I'd like to wrap up with commentary around our full year product revenue guidance.
Expectation of improvement across a few key areas.
And our confidence in achieving cash flow breakeven during the year.
As we announced in January the company expects full year 2023 product revenue to be in the range of $165 million to $170 million.
Reflecting a challenging macroeconomic environment as well as a few shorter term factors that we expect to moderate as we move throughout the rest of the year.
As I previously mentioned, we are assuming purity of the U S dollar to the euro in our guidance.
This assumption creates a more difficult comparison when looking back at 2022.
Which had average rates of around 1.05.
With the early part of 2022 seeing rates as high as 115 in the back half of the year as low as 0.97.
Today spot rates are around 1.06, and while we can't predict where FX rates will go in the future.
We'll continue to provide you with updates on future calls.
In sum, we remain confident in our ability to execute on our commercial plan and we expect to see improvement across a few key areas during the year, including gross margin expansion.
Lower cash used from operations.
The increased operating expense leverage.
As such we anticipate realizing our goal of achieving cash flow breakeven as measured by our non-GAAP adjusted EBITDA metric in 2023.
With that let me turn the call back over to Obi.
Thank you Kevin while we continue to make progress as Kevin just outlined towards achieving cash flow breakeven.
Looking forward to a number of milestones related to the expansion of market opportunities.
The development portfolio.
First one component of our global expansion strategy as our China JV.
We're finalizing the preparation of the China dossier, and we'll provide an update on the status during our next earnings call. Okay. The company is working diligently on developing its led based next generation illuminator.
Project.
Dancing towards completion, and we are performing the studies required for regulatory submissions globally.
Next with respect to the intercept red blood cell program in Europe .
Historically CPG reviewed our dossier.
Cerus a list of questions.
Neither of which related to chemistry manufacturing and controls or CMC.
<unk> is in the process of gathering information and collecting data to scrap a comprehensive response.
Finally regarding BARDA funded RBC phase III clinical study progress on recipe Andreadis, we anticipate completion of enrollment in the second half of 2023.
And 2024, respectively.
As a reminder, recipe as a U S phase III trial designed to evaluate the efficacy and safety of intercept red blood cells and <unk>.
<unk>, requiring transfusions for acute blood loss.
Complex cardiac surgery.
This is a phase III study designed to evaluate the safety and efficacy of intercept treated red blood cells compared to conventional red blood cells in regions impacted by the Zika virus.
In summary, we expect to build upon our commercial momentum in 2022 and leverage the solid foundation, we have built for future growth globally.
We have multiple opportunities before us as we look out over the next few years.
Our improving financial profile and focus on cash flow breakeven will allow us to self fund these opportunities.
Importantly, we look forward to further expanding access to intercept products for patients in the years ahead and provided definitive safeguard for transfused blood components and the name of pandemic preparedness.
With that let me turn it back over to the operator for Q&A.
Thank you as a reminder to ask a question. Please press star one on your telephone and wait for anything to be announce to withdraw. Your question. Please press star one again, please standby, while we compile the Q&A roster.
One moment for our first question.
Our first question comes from the line of Matthew Blackman from Stifel. Your line is open.
Hi, good afternoon, everybody. Thank you for taking my question.
Start with a multi part question and then one follow up I just wanted to circle back on on Red Cross and maybe just explain why we shouldnt view the inventory management going on there is a sign of let's call. It perhaps softer demand is it simply that and these are just my words, you tell me that out there.
So sort of successfully scaling production over the last couple of years, the Red Cross doesn't need let's call. It something like safety stock just anything that helps us sort of understand what's going on there from an inventory demand side and the follow up is.
Is this a phenomenon we should be considering are concerned about for other customers in 'twenty three and beyond just any sense of.
Do you have contracts that are up in 'twenty three that we should be thinking about really just how much visibility you have.
On the platelet demand, excluding Red cross as we think about 'twenty three and then I'll have one follow up thank you.
Thanks, Matt.
Would you mind tackling the two part question and I think the second part of that question.
To cover.
The organic sort of platelet growth.
You typically see on an annual basis, yes, sure I'd be happy to Hey, Matt. Thanks for the question.
I don't think that you should interpret this.
Any sort of indication about.
Impact on demand or anything along those lines, we are seeing their broader macroeconomic factors that have influenced the need.
Manage inventory and get to a more reasonable level I think what we've been able to do.
Red Cross, but really with all of our key customers is to be more nimble and to ensure that we can provide the right amount of supply and then as needed basis and so the need to carry a lot of inventory I think has been largely mitigated. We don't anticipate this to be an ongoing issue to the balance of 'twenty three I think we had indicated.
The year the pits.
Acutely impact us.
First quarter end.
Probably the first part of the first half of the year, but then start to normalize and see growth again in the back half of the year underlying platelet demand in platelet shipments hospitals continues to grow and we continue to see share capture in terms of utilization of PR.
Just based on our channel checks and continued demand at the hospital level, we anticipate that will continue but it's really managing through this first quarter, where we see the acute issues.
Okay I appreciate that thanks, and then how should we be thinking about the business outside the U S platelet franchise.
We just sort of talk about some of the puts and it takes an international obviously, you've got Canada Jerry.
Germany.
I did notice in the fourth quarter that you, obviously had some FX headwinds, but it did look like if I look at treatable doses they were down internationally.
In the fourth quarter.
Maybe thats more representative of underlying organic growth just help us understand about the international trajectory in 'twenty three.
I am sure Youre not going to give a specific IFC guidance range, but are there any sort of important milepost, we should be thinking about whether it's clinical data.
Peer reviewed case studies or anything like that as we as we said in check on the progress of the ISC rollout in 'twenty three thanks, Yes, no problem, maybe I'll tackle IFC first and then.
Touch a little bit about international platelet growth from them.
C perspective, you really addressed ratio.
No continued account.
E comm growth getting new users on and we're getting a lot of good use cases, now that are allowing us to really engage in peer to peer marketing, where you've got centers of influence take Stamford example, that are getting experience with the product shand and theyre starting to communicate that experience to their peers and other clinic.
And then as you know, it's a peer to peer marketing aspect and experience sharing that really goes a long way. So that use case and case studies experience is really starting to grow and we anticipate that that's going to be.
A driver of ongoing adoption coupled with <unk>.
Continued investment in hospital facing sales personnel, who can develop clinical champion.
Generate demand and ultimately parent demand, but supply. So we have a lot of reason for optimism in terms of being able to drive continued adoption of IFC in the moorefield engaged the more validation we get for the clinical utility and need of that technology, which is certainly arent thing from an international.
<unk> standpoint, you are correct to point to Canada, and Germany has some near opportunities to drive growth.
If you look at does the one thing I'll call your attention to you is that.
Not insignificant portion of our international sales are through distributors and they tend to do bulk orders and so the clarity and to then see utilization marketplace becomes a little bit more opaque, but having said that there are there continue to be meaningful growth drivers not only in the near term internationally, but then.
And as we projected a few years out as Obi indicated.
In the prepared remarks, we continue to be excited about the opportunity.
Opportunity in China, with our joint venture partner and there are significant markets internationally, where there has been.
David demand for PR mean to work through the regulatory and clinical process. So still a lot of opportunity to drive penetration of passenger reduction in international markets for platelets.
I really appreciate that.
One quick one Kevin cash flow breakeven in 'twenty three is that a full year breakeven or you'll cross into breakeven territory at some point in the back half of the year. Thank you.
Yes.
The latter we expect that we're going to continue to make steady progress.
As we discussed.
In early January .
When we pre released.
Clearly the first half of the year on the top line I'll see some some headwinds due to the restocking FX etcetera, but we expect that to moderate rebound in the back half of the year. So.
Our prediction on reaching that.
Cash flow breakeven as defined by our adjusted EBITDA is meant to suggest that at a point in time.
In 2023.
Got it thank you so much.
Yes.
One moment for our next question.
Our next question will come from the line of Jacob Johnson from Stephens. Your line is open.
Hey, good evening everybody.
Maybe just for Kevin just on kind of I appreciate the commentary around cash flow breakeven by the end of the year just as we think about gross margin and opex throughout the year kind of any puts and takes on how those should trend throughout the year, especially maybe on the gross margin side as we think about the FX dynamics.
Yes, I think we're going to see some as we can.
You mentioned in the prepared remarks some.
Modest, but steady improvement to gross margins really driven from.
Economies of scale as you know we've been working on a number of Cogs reduction initiatives, which will continue to play out and contribute to that margin expansion.
Offsetting that of course, we are in an inflationary environment and we're not immune to that but we've also had several years where we.
We have been pricing our products for the value that we believe they are delivering.
And so all told we expect that we'll see like I said modest but steady improvement call. It.
100 basis points or so.
Of improvement and line of sight into continued improvement beyond that.
Okay. Thanks for that Kevin.
And then.
If you go back to Vivek or for Obi, just just on the ISP side of things I think.
Some of the things you said youre seeing some getting used cases out there working to get kind of peer to peer communication can you just talk about any kind of key.
Key milestones for us seeing kind of growth pick up in the I C. R.
Got that.
That product become more meaningful for you. All is there is there any kind of additional data you need the public do you need to hire more salespeople just how should we think about the drivers of kind of hitting an inflection point.
Sure happy to address that and it will be it certainly.
In.
Shannon if anything you you hit the right point.
Sir in terms of adding the feed industry continuing to get new account on contracts and getting those initial leases, which will then lead to repeat utilization. So there isn't.
Environmental milestone in terms of <unk>.
Publication of data or anything along those lines that were waiting for its really about getting further at that split not only existing customers, but getting kind of newer customers into the batters box and that has huge part.
By getting our reps.
Other than the hospitals, calling on accounts and so that the hiring process. We've made great strides in terms of getting your thoughts on the team I've personally been very encouraged by the quality of candidates that have been applying in our ability to bring solid new sales talent in the organization, that's getting them trained and getting new accounts. So we're seeing continued good progress.
Yes, there and Thats, what ultimately drive product adoption.
Alright, thanks for taking my questions.
Thanks Jacob.
And as a reminder to ask a question.
Star one one once again are one way one moment our next question.
Our next question comes from the line of Bran, Brandon Folkes from Cantor Fitzgerald. Your line is open.
Yes.
Alright, thanks for taking my questions.
Maybe just coming back to the Red Cross any commentary in terms of what you've seen in January and February of this year just in terms of that.
Okay.
Down at <unk>.
Since you guys guidance has it been as expected.
And then maybe just on the red cells in Europe .
You talked about putting together a comprehensive response, just any color in terms of timing.
We may expect you to submit responses. Thank you.
Yes, Brian I'll take the first or last part of that question. Then Vivek, maybe you can cover the Red Cross so with regard to the Red cell CE Mark process.
Dialogue that we have with CPG is underway and we are in the process of drafting responses to the questions. They have raised I think it's just too early right now to.
Be prescriptive about timing, but can we continue to be very optimistic about that program and our ability to answer the questions.
Subsequently.
Vicki I'll cover the Red Cross.
Sure I'd be happy to.
What I would say is that it's early days year to date things are rolling out as expected.
That anticipation that led to the guidance we provided back around the time of the Jpmorgan Health care conference and we're really fortunate to have a strong partner in the air Sea and they've really helped lead the way in terms of driving adoption of <unk> pilot. So that partnership continues to be incredibly important to us and I would say so far.
It's an area, where we continue to feel really comforted by the progress that we've made.
Alright, Thank you very much.
Okay. Thank you Brian .
One moment our next question.
And our next question comes from the line of Joshua Jennings from Cowen Your line is open.
Hi, good afternoon, thanks for taking these questions.
Maybe it will be I wanted to just start off and ask about the <unk>.
Other kind of four major blood centers, and maybe some smaller much of United States.
Any other kind of stepped up and made a similar commitment.
Thank you Mike from Red Cross to get to a 100% intercept platelet kind of manufacturing run rate alright, maybe just.
How are they progressing.
Focus on the the other big four big five.
Yeah, Thanks, Josh I'll start and then turn it over to Vivek, maybe for some additional detail so they're all at sort of various levels.
Some of that's a function of sort of what they see the hospital demand as some of its just sort of what they operationally I believe they can deliver against at any given time.
So I guess, it's a mix of different.
Approaches.
Say, one blood is probably closest.
To the American Red Cross with regard to their overall desire to offer.
Product that they believe us.
Operationally easy to use as well as.
Probably most importantly, just the safest possible product for patients.
And then the others.
It's a spectrum Vic would you have any additional context around that you'd like to provide.
No I think he captured the key points from our perspective, Josh what we want to continue to do is ensure that we provide the right technology to enable for.
The Big five blood center families to optimize their PR production distribution. Some of that's governed by what hospital man that Theyre seeing organically and some of that's driven by the demand that they themselves are generating at times in partnership with US at the hospital level, we've seen good progress there and the RFP came out and stated explicit.
Is it going to lead the way in here I, certainly see that happening with others as well but.
From our perspective, it's really about ensuring that we can provide the right buyer at the right time, and we're seeing continued share capture which is encouraging.
Excellent.
<unk>.
I also wanted to just ask about.
Manufacturing capacity build out starting from actually tons already stated on the call catching up here a little bit but.
It.
We speak about 2024, and where capacity will be in terms of what type of revenue run rate will capacity be supported 24 versus where you're at today at the beginning of 2023.
Yes. Thanks for the question Josh So clearly in 2022, we're sort of in an active inventory management mode, and we're still sort of expanding the manufacturing capacity at multiple sites. So by 2024, we really should be non constrained as it relates to potential.
Sales opportunities and that was the goal I think really in this market.
It's so critical that we are a reliable and dependable supplier to our blood center customers given the role and the important role that they play.
And so we really took that to heart and think have done an exceptional job throughout 2022, and we want to continue to deliver against that goal.
For our future.
So we really believe that throughout 2023, we will have that capacity in place and it won't be a constraint on growth in 2024.
Excellent and then maybe lastly, just to ask you about the China submission maybe.
Now if you did provide an update in your prepared remarks, but.
But just wondering if there is an accelerated pathway that's open with your JV partner.
Cement, what's out correct, China data.
And I'll leave it at that thanks for taking my questions.
Thanks, Josh So the prepared remarks, we mentioned that we are in the final process of putting together the submission so that's well underway.
We'll plan to give an update on the Q1 call.
As it relates to the need for clinical data that's still TBD.
You did or we are planning to submit with data coming out of Hong Kong.
We just don't know yet whether that will be sufficient or whether in country data will be nessus.
Necessary for a final approval and then Charles with me here do you have any thoughts on.
Around the expedited approval pathway or what our joint ventures.
Roche is going to be there well, we don't have a clearly identified an expedited approach at this time, but once we get the dossier filed and we can get into a conversation with the NFPA, which the FDA like body. There in China. Once we can get into a conversation with a gauge their reaction.
The interest.
Then it's certainly my experience that they can they can.
Can do a lot to help us accelerate the review timeline.
Just on the content of the application and the interest in the product. So we're going to do all we can to leverage those considerations once we get it filed.
Thanks, Joe.
Great. Thank you.
Thank you and I'm not showing any further questions in the queue I'd like to turn the call back over to Obi for any closing remarks.
Well. Thank you again for joining us today and for your interest in Cerus, We look forward to speaking with you at <unk> 43, 40, <unk> annual Health Care Conference next week in March and sharing our progress throughout the remainder of the year. Thanks again.
This concludes today's conference call. Thank you for participating you may now disconnect everyone have a great day.
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