Arcturus Therapeutics Holdings Inc. Q1 2023 Earnings Call

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Good afternoon, ladies and gentlemen, and welcome to the Arcturus Therapeutics first quarter 2023 earnings conference call.

At this time all lie.

<unk> are in a listen only mode.

Following the presentation.

We will conduct a question and answer session. If at any time during this call. We require immediate assistance. Please press star zero for operator.

This call is being recorded on Tuesday may nine 2023.

Now I'd like to turn the conference over to <unk>, Vice President head of Investor Relations Public relations and marketing. Please go ahead.

Thank you operator.

Good afternoon, and welcome to Arcturus Therapeutics first quarter 2023 financial update on pipeline progress call today's call will be led by Joseph Payne, our president and CEO and Andy <unk>, Our CFO , Dr. Apache V Kool, our CFO and COO, who will join in for Q&A session as well.

Before we begin I would like to remind everyone that the statements made during this call regarding matters that are not historical facts are forward looking statements within the safe Harbor provisions of the private Securities Litigation Reform Act of $19 95.

Forward looking statements are not guarantees of performance.

They involve known and unknown risks uncertainties and assumptions that may cause actual results performance and achievements to differ materially from those expressed or implied by the statements.

Please see the forward looking statement disclaimer on the company's press release issued earlier today as well as the risk factors section in our most recent Form 10-K and in subsequent filings with the SEC.

In addition, any forward looking statements represent our views only as of the date such statements are made arcturus has specifically disclaims any obligation to update such statements to reflect future information events or circumstances.

And with that I will now turn the call over to Joe.

Thank you Heather and good afternoon to all and good evening to our friends on the East Coast.

I will begin my remarks by highlighting our <unk> 154, COVID-19 vaccine Phase III program. This is our most advanced clinical program <unk> hundred 54 has the potential to offer effective and longer lasting protection against COVID-19, I'm very pleased to report.

Port that last month, our collaborator and a major <unk> submitted a new drug application to support potential approval of <unk> 54, as a primary immunization vaccine based on our placebo controlled phase III study.

Study conducted.

A phase III study was conducted during a period of multiple variance of concern and met its primary endpoint of preventing COVID-19, and demonstrated a favorable safety profile.

The study was conducted to assess efficacy against COVID-19, and approximately 16000 individuals and we're very pleased with the results.

The <unk> $1 54 phase III comparative study of <unk> $1 54, as a booster is being conducted by <unk> pharma.

And they have completed enrollment of approximately 828 subjects with interim results expected later this quarter.

Of this non inferiority study is designed to evaluate the safety and Immunogenicity of <unk> hundred 54 compared to carbon Audi.

Advisor in biotech and administered as a buyer.

Booster dose, we expect to be interim analysis data to be submitted to the <unk> later this quarter.

And to seek registration of the <unk> 54, as a primary series and booster later this year potentially representing our company's first product approval, such a meaningful milestone could be indicative of the broader platform opportunity for mrna medicine technologies to result in novel back.

Seems in therapeutics over the coming years.

If approved the Japanese sales of <unk> 154 could represent a significant commercial opportunity for arcturus.

I will also remind you that the <unk> $1 54 phase III Japanese booster study as well as product manufacturing relate.

Related to this collaboration are being funded by <unk> pharma and the Japanese government.

<unk> pharma entered into an agreement with CSL secures whereby <unk> will be responsible for the distribution and sales of <unk> $1 54 in Japan.

We are indeed fortunate to be partnered with competent and experienced commercial partners.

In April 2023, we received an advanced payment of $23 6 million for the manufacturing and supply of <unk> 54 from CSL. The advance payment is specified for specified manufacturing runs of <unk> 54, which includes the drug substance as well as the <unk>.

<unk> fees and related manufacturing requirements.

So <unk> is different than.

Conventional mrna vaccines and meaningful and important ways.

Doses very much lower the product is lie awful lodged its novel liquid or frozen liquid. These features bring potential dose related safety benefits and provide a much better shipping storage and supply chain.

<unk> $1 54 has shown and continues to show broad neutralizing capability against multiple variance of concern.

$1 54 has the potential to offer not only effective but also longer lasting protection against COVID-19.

And on top of this backdrop, we will soon be able to share the phase III safety and Immunogenicity booster data with multiple regulators across the globe.

This is indeed, an exciting time.

For our vaccine franchise.

I'll now move on to update on <unk> eight our CPA 10. This is our mrna therapeutic candidate for OTC deficiency.

This investigational medicine is designed to address the deficient OTC enzyme in the liver and thereby restore urea cycle activity and to prevent metabolic crises that cause neurological damage.

<unk> could potentially liberalize the strict dietary protein restrictions that OTC patients face today and improved quality of life for those living with this condition.

<unk> utilizes our tourists was proprietary lunar delivery technology.

An important attribute of our technology is that the lipids administered are rapidly degraded, which we expect to lead to a favorable safety profile.

<unk> 10 is being evaluated in two ongoing clinical studies in patients a phase <unk> study in adults and a multi dose phase II study in adolescents and adults enrollment has begun in the <unk> phase III study in the U K and Europe . The phase II multiple dose study is designed.

And to enroll up to 24 adolescence and adults with OTC deficiency and.

<unk> plans to share in term phase III data on a subset of participants later this year in 2023.

Now I'll move on to <unk>, 32, or inhaled messenger RNA therapeutic candidate for cystic fibrosis.

This program is designed to express fully functional FTR protein and the lows of individuals with CF utilizing.

Utilizing our lunar delivery technology that has been optimized for inhaled lung delivery.

Our approach is agnostic to the underlying mutations associated with the disease and as a result, <unk> 32 can provide clinical benefit across a wide range of those living with CF, including those that are not well served by currently approved CF TR modulators.

The clinical development of <unk> 32 was supported by encouraging preclinical data demonstrating successful <unk> protein expression and the airway epithelium of the lung in different animal species and the restoration of the <unk> channel and the <unk> knockout mouse model and shown functional delivery of mrna.

In our CF Ferret model. In addition in vitro administration of <unk> 32 to bronchial epithelial cells from CF patient donors.

Has also demonstrated robust expression of <unk> protein as well as functional restoration of chloride current.

<unk> 32 clinical development program continues to advance. According to plan. We are pleased to report today that we have successfully completed the enrollment and administration of a phase one study with 32 healthy participants, including eight subjects in each of the four doses being tested and we.

Anticipate reporting study results later this year.

The safety and Tolerability data support the steady expansion and inclusion of.

Ah patients with CF Arcturus is working on a protocol amendment to allow the dosing of CF patients and expect to initiate enrollment in Q3 of this year.

With that I'll now pass the call on to Andy.

Thank you Joe and good afternoon, everyone.

The press release issued earlier today includes financial statements for the first quarter of 2023 and provides a summary and analysis of year over year.

Sequential financial performance.

Please also reference our Form 10-Q for more details on the financial performance.

We are happy to see the progress by Meiji on submitting the new drug application to the <unk> in Japan.

Our CET $1 54.

We expect the booster data to be submitted shortly by Meiji once it is completed and quality checks in order to seek registration.

Booster dose.

This NDA submission is the first floor and arcturus vaccine and will be instrumental in the validation of our self amplifying mrna vaccine platform.

In April 2023, we received an advanced payment of $23 6 million for the manufacturing and supply.

They are <unk> to $1 54 booster vaccines from CSL.

The advanced payment as for specified manufacturing runs.

<unk> hundred 54, which includes the drug substance utilized as well as the reservation fees and related manufacturing requirements.

We took a number of positive steps to improve our balance sheet this quarter with the elimination of $60 million in long term debt obligations.

By repaying the Singapore loan of $17 million in unused principal and interest.

We eliminated $34 million in additional principal and accrued interest on the non recourse loan.

Additionally, we paid off our $10 million debt obligation of Bruce Bank.

As of March 31, 2023, we have no long term debt and our balance sheet, while current output.

<unk> by $21 million, primarily due to the $90 billion in accounts receivable from CSL.

The expected to be collected during the second quarter of 2023.

I am happy to report our cash runway remains extended to the beginning of 2026 based on our current pipeline and assuming no sales based milestone or revenues from any commercial product sales.

Okay.

I will now provide a quick summary of our financial results for the first quarter of 2023.

Arcturus primary sources of revenues were from license fee consulting and related technology transfer fees reservation fees and collaborative payments received for research and development arrangement with pharmaceutical and biotechnology partners.

Total revenues for the three months ended March 31, 2023 was $80 3 million compared with $5 2 million for the three months ended March 31 2022.

The increase in revenue was primarily attributable attributable to an increase in revenue of $78 2 million related to the agreement with CSL and associated milestones achieved in the first quarter of 2023.

Total operating expense for the three months ended March 31, 2023 was $65 5 million compared with $38 8 million for the three months ended December 31 2022.

The sequential increase in the three months ended March 31.

Merrily attributable to increases in manufacturing costs for various Covid program related to the CSL collaboration and to a lesser extent from increases in costs associated with startup activities on the manufacturing and supply agreement with CSL and an increase in clinical trial expenses.

Related to our cystic fibrosis and OTC program.

For the three months ended March 31, 2023, Arcturus reported net income of approximately $50 8 million or $1 87 per diluted share.

Compared with a net loss of $51 2 million or $1 94 per diluted share in the three months ended March 31, 2022, and net income of $117 3 million or <unk>.

$4 33 per diluted share in the three months ended December 31 2022.

We recorded a one time gain on debt extinguishment related to the Singapore loan of $34 million. During the three months ended March 31 2023.

Additionally, we reported net interest income of $2 5 million for the three months ended March 31 2020.

Our cash position was $330 1 million as of March 31, 2023, compared to $321 8 million on March 31 2022.

As mentioned earlier, we expect to collect $90 million in the second quarter of 2023 associated with the CSL milestones, we achieved in the March quarter.

And in April we received $23 6 million.

Related to the manufacturing and supply of <unk> 54 from CSL.

In summary, we believe that the company remains on a strong financial position and have the resources needed to achieve multiple near term value, creating milestone for the vaccine and therapeutic programs over the next nine months.

I will now pass the call back to Joe.

Thanks, Andy we have continued to make excellent progress and advanced our proprietary messenger RNA and leaner delivery technologies toward later stages of clinical development and potentially having our first product approval later this year.

So this is an exciting time at arcturus.

Our strategic collaboration with CSL, which is focused on the development and commercialization of next generation mrna vaccines is making strong progress. Our teams are working towards the development and commercialization of next generation mrna vaccines, including those targeting COVID-19 and influenza and I look forward to provide.

More information about our progress and upcoming milestones in the coming quarters.

So with that we'd like to turn the time over to the operator for questions.

Thank you ladies and gentlemen, we will now begin the question and answer session should you have a question. Please press the star followed by one on you touched on.

You will hear SK telecom's acknowledging your request.

<unk> will be taken in the order received.

Should you wish to cancel your request. Please press the star followed by the tail.

Our first question is from Yasmin Rahimi from Piper Sandler. Please ask your question.

Great. Thank you so much team.

Alright.

My question I guess first wanted to ask.

I know you noted that the booster data is expected later.

Corner given that that study finished enrollment in February like and we're already in.

Like are we really really M&A.

Just.

I guess, it's still in the month of May or potentially June or will it fall in July .

And then maybe comment again, a lot of our clients are asking what's the rationale for basi.

File.

Okay.

Ooh Ooh instead of waiting for the booster at Ada.

Sure.

So if you could address that and then to a lot.

Sure. So first with respect to your first question Mitch.

<unk> informed us that the interim phase III safety and Immunogenicity booster data are presently undergoing final analysis.

And quality control procedures. So this means we're close alright that the audited QC booster data should be submitted to the <unk> later this quarter.

And with respect to your next question on the filing strategy, where just adhering to very clear guidance from the PMT a regulator.

With respect to filing that we want to improve not only the booster, but the platform itself and the primary vaccination regimen. So the NDA was filed as such according to what they guided.

Okay.

And then the third question that I think.

Our investors are trying to figure out how to quantify.

You know.

The approval in Japan, So I.

I guess question number one what is the timeframe by which you will be granted approval.

Then how soon could you negotiate with the regulatory with the.

Japan charities and her purchasing vaccines against what junction.

Find out how many doses.

All your CET, one site with <unk>.

And I'll jump back into the queue.

Yeah in terms of framing the.

Size of the Japanese market opportunity I think it's helpful for people to understand that approximately $57 million mrna boosters have been distributed and dosed since September <unk> of last year. So that's approximately 250 days and approximately $57 million mrna.

Booster shots have been distributed in Japan. So.

You can be assured mathematical speculations calculations on that.

We typically don't comment on.

With respect to orders and in discussion with the respective government that will be conducted by our partners.

<unk> and CSL and as soon as we have information available we would be.

<unk> disclosed that information with the market.

Yeah.

Okay. Thank you, Tim I'll jump back into queue.

Okay.

Thank you. The next one is from Pete <unk> from Cantor Fitzgerald. Please ask your question.

Hello, Joe and Andy and team. Thank you for taking my questions. So.

One question on the vaccine.

<unk> hundred 54, so you know we expect to hear about the data from our <unk> study.

Are there any details of the study that you can provide in terms of.

What the non inferiority.

Inferiority margin, maybe as a study evaluating immunogenicity only against the Wuhan strain or mustard show activity against a variance of.

Of concern.

Yeah.

Thanks, Pete for the question.

The study is definitely evaluating the original Wuhan stream and other variance of concern are being evaluated as part of this study.

With respect to the statistical parameters, maybe I can throw that to yeah sure Hi, This is Pat thanks.

Thanks for the question again.

<unk> will be doing all the statistical analysis, but.

They're going to be looking for a nine figure already touched holdup.

Just a 0.67 and then and.

That's an objective.

See a response rate of negative 10, but but but a lot of that analysis is can be done by them and then they're going to be sharing a lot of the data going forward.

Okay. Thanks.

Can you provide any color with regards to the CSL milestones do you expect more in the balance of this year and if so what would be those are what will drive those milestones.

Yeah no. Thanks for your question Pete Unfortunately, we don't give specific guidance with respect to the development milestones.

But as soon as we have achieved and earn them, we will report them to the market.

As we progress throughout the year.

Alright, Thanks, Andy one last question for 032.

You're fully enrolled the phase one.

It's completed in terms of how healthy volunteers.

I know the focus is safety and Tolerability.

You would be looking at any biomarkers in healthy volunteers and also in cystic fibrosis patient populations.

You evaluate the Pharmacodynamic response.

Sure sure so with respect to the healthy volunteers, we don't expect any biomarker data data to be meaningful all of the healthy volunteers already have healthy levels of <unk> in their lungs for example.

But we are closely tracking safety and Tolerability and feasibility of dosing. This is the first patient population or subjects are volunteers that if.

Inhaled lunar delivery technology. So we're very happy to report today that we've evaluated four different dose levels, which is basically an extension of time in chair.

You can imagine each of these cohorts of age are people sitting in a chair inhaling the technology for a period of time, the actual <unk> 32 drug product.

And we're happy to report today that we've completed the trial and we've provided some guidance that we intend to amend the protocol.

To add patients and enroll CF patients in Q3 and in patients is where we can find some potential biomarker or more meaningful biological.

Concept data.

Any color you can give on what that potentially could look at.

Oh, yeah, there'll be an appropriate time for us to do that I think that will be at the next quarterly call.

Once we.

A detailed the timing of CF patient enrollment.

More specifically.

Alright. Thank you thanks for taking my questions.

Thanks Pete.

Yeah.

Thank you. The next one is from Seamus Fernandez from Guggenheim Securities. Please ask your question.

Hi, guys I'm laying off from Seamus.

Two questions first one can you talk about how.

Primary and booster Approvable, Japan helps set up the platform.

And streamline development or a buyback or keep your variance.

I guess in terms of how you guys are thinking about.

Continued development.

And then I have a follow on.

Yeah. Thanks, Seamus for the question.

It is correct that mrna platforms benefit from clock speed and rapid update abilities with respect to future updates.

And Arcturus has no doubt a next generation mrna platforms. So we benefit from <unk>.

Clock speed and rapid update ability benefits, which is becoming more.

Overstated now.

Now that we realize that this is a perpetual and seasonal.

Uh huh.

So this last set of questions I just want to restate your question that that you're you're focusing on the CF program correct Seamus.

Oh, Okay, yeah, so we definitely intend to modify them.

We definitely are.

Intend to modify the protocol to include CF patients. So I think the appropriate time to give a more specific update will likely be on the next call with respect to a more specific timing of that.

In terms of the biomarker or any sort of strategic thinking as to when we can get some sort of proof of concept for <unk> 32 in patients.

This is too early to provide guidance.

Yeah.

Okay. Thanks.

Okay.

Thanks, Thank you.

The next one is from Yigal <unk> from Citi. Please ask your question.

Hi, Jim This is Carly on for Yigal. Thanks, so much for taking our questions.

I had a follow up related to one of the prior questions.

Is your expectation as far as how MAGE <unk> data could potentially be leveraged outside of Japan, I guess, given the updated FDA guidelines related to use of Biovail, an mrna vaccine should be assume DSO will be focused on on bi valent.

Rather than 154 for for major markets, just any thoughts you have on that dynamic would be helpful.

It's correct.

Different regulatory agencies have been providing guidance on mrna vaccines and <unk>.

You are correct that in the United States, Steve now mandated bivalency for conventional mrna, but they have not mandated by valency for other platforms and other types of technologies.

And we have not yet shared our phase III booster data with the regulatory agencies here for here in the U S.

So whether the FDA will consider our technology.

More like conventional mrna or significantly different to be treated differently as yet to be established but we're prepared in either situation. We are aggressively advancing our monovalent techs.

Technology in Japan, and our bivalent technology.

Provided updates with respect to milestones.

That activity is ongoing in Europe and U S.

So were prepared in either situation, depending on on what a particular regulatory agency requests or expects to did I address your question Carl.

Yes, yes, that's very helpful.

And a follow up related to that I guess I know you.

Yes, I'll have talked about.

The bivalent Covid program as well as a seasonal flu program. We were just curious it is developing a combo COVID-19 flu vaccine was covered under that agreement you have with CSL or that might be part of of your your planning.

Yes, I can't speak to the details of our combined product and in in the CSL collaboration we did disclose that.

The license is for Covid and flu. So it implies that there is potential there.

But our combined product is definitely fascinating and interesting.

Okay got it that's helpful. Thank you for taking the questions.

Thank you Kurt.

Thank you <unk>.

One is from <unk> <unk> from Wells Fargo Securities. Please ask your question.

Thanks for taking our questions. So on the on a one for 154 primary vaccine data required by the Japan regulators for approving the booster indication.

And.

Is the decision to submit the primary vaccine data by Meiji are informed by the booster data that they might be seeing thank you.

Good question, if you do not it's not a prerequisite to get the booster approved to have the primary approved but it is very helpful. As you can appreciate to get the platform and the primary approved for subsequent updates or or future bivalent or more mature monovalent technologies as they come forward.

So that is why the P M D E and <unk> and CSL and Arcturus and our teams.

Wanted to make sure that the primary vaccine was also included in this NDA because it allows for approval of the platform and accelerated timelines for subsequent updates as needed.

Right and then Oh, there's a question on whether the decision is actually what we're seeing in parts are encourage by what made you saw with the booster data.

Because obviously the ease of consuming time consuming process to submit that like the large very large dataset for the primary vaccine data right.

Yeah.

We can allow you to speculate that according to your own wisdom, Oh, we can only comment that the study has been ongoing since December that we've.

But that that made she has been collecting data after since February .

But we can't comment as to.

Whether they made decisions based on that data or not.

Got it.

That's very helpful. Thank you and we get this question from clients whether about weather.

The monovalent 154 could compete effectively with our the available by then and Oh vaccine in the Japan market could you shed some color on that.

Oh sure you know I mentioned on this call that.

There's already a base.

I guess 57 million mrna boosters distributed and dosed in Japan, just since September one so there's definitely a significant mrna vaccine.

Vaccine booster market in Japan.

As to as for whether this south.

Self amplifying mrna in next generation technology can compete Ah that that's one of the purposes of this phase III had sub comparison and and and.

Well, let the Japanese government and and in May take care of.

Ill answer that question through orders in the future.

Hi, Yes. This is Pat and I'll just add a couple of other comments to others. He you know, we and others are at.

I've shown that the south we're amplifying technology can potentially lead to a higher.

Higher neutralization titers as well as longer duration. So so I think we will be tracking that in our phase II phase III booster trial and I think if those data are positive and I think we do believe that the Monterey could compete with some of the data that we're seeing with the bivalent yeah.

The lower dose the lyophilize nature of the product and.

Broad neutralizing capability and an extended durability.

Oh variance.

Very helpful.

Yep Yep.

So maybe a couple of questions on the C. F. A program I was wondering could you remind us whether the healthy volunteer study is a single dose or multi dose multiple dosing.

And how do you think about whether the highest dose.

In the healthy volunteers is sufficient to cover your potentially therapeutic but those are in patients and lastly, if this is a multi those in healthy volunteers or would you have any like a drug accumulation accumulation data in the lung.

In addition to you know blood.

Yeah, Hi, this is Pat and I'll just send me your questions. Yeah. So again are the the phase one study was a single ascending dose right to single dose and we also plan to when we do the phase.

Phase one be part of this which isn't in patients we intend to use all again single dose study, where we are Joe also mentioned that we did a dose escalation of all you know four different dose levels and you know the dose levels that we chose in that well that went into that phase.

One healthy volunteer trial study what we're in the therapeutic range of what we saw was effective in preclinical models. So so some of them that you know so the numbers, we see that are in the healthy volunteers and if that's replicated in patients we should that should be in the right range.

Got it and who's there understanding that this is a single dose administration.

The administration.

Would we still be able to get some sense of a drug a degradation in alone.

You know of course, you know, we we won't be the you know we're not I mean, obviously you know if what you're asking is if we're gonna be doing biopsies in the lungs to look to look at the you know either distribution or the activity. You know, obviously that that's going to be quite cumbersome right, but we will be looking at PK right looking at PK and look like if you look at some of the data that was pre.

<unk> Oh by the other mrna companies out there they've worked on lung diseases, you can get a sense for what we'd be looking at.

I'm, sorry, just to clarify I was referring to our M. P. M accumulation in alone Yeah, I understand what you're asking but I mean, the way to look forward is doing a biopsy for example, right and in the long and I'm not sure we will be doing that.

Right, Okay got it got it thank you.

Thanks, Joe.

Thank you. The next question is from Yale Jen from Laidlaw <unk> Company. Please ask your question.

Good afternoon, and thanks for taking the question.

The first question you also get to 154, you've been making.

Oh I believe had a deal signed earlier this year my question to you Doug.

Also have the.

Right.

I'll start with Japan.

Multiple valid and vaccine and a would that be something definitely.

I'm curious also could benefit from that.

Italy.

A follow up thanks.

Correct CFL has obtained a at.

In our collaboration all rights to the cold weather and bivalent.

Program outside of the United States, So Oh, I'm, sorry, including the United States. So the global license and consequently, because of the major opportunity that we had.

Going on concurrently with the CSL opportunity, we were able to close both transactions simultaneously.

And we were fortunate that our the collaboration worked out very well for both all three parties frankly, and so we're excited to be working with the number one player in Japan, maybe with respect to our vaccines and Flus and are obviously, you see yourselves as number two in the world with respect to flu.

So we have two very prominent.

Players are certainly in the various markets that we can rely on for commercialization and as you know the economics are very attractive.

And both the Covid monovalent and bivalent opportunity for US is the 60 40, it'll profit split with both for yourself and Arcturus.

Okay great.

A question on <unk>.

There are 32 is that you have done the.

Healthy volunteer studies.

Uh huh.

Okay.

And the next trial or in the future can you do a longer study to ensure that patients are.

We will be 8 million held at a drill.

With all of you know.

So in the long term without any negative impact.

Well, if you're referring to multiple dose I am sure that.

I can explain it.

Yes, yeah, so we definitely want to it.

Meant that at some point in our clinical strategy and will provide more details on that.

Likely on our next conference call.

But the dosing just so everyone on the call is clear it's not like we're increasing the dose level or it's time and chair of these four dose levels are that it is an individual volunteer sitting in a chair for a period of time inhaling our drug so it's as we when we say increasing the.

Dose, we're just seeing increasing the timing chair, while they're inhaling the drug okay.

Okay, and then maybe last one.

Remember the last call you mentioned a little bit.

On the pipeline side.

Okay.

I am just curious any update on that.

Yeah.

How are you guys, just maybe a little more color and thanks.

Thanks.

Oh did you ask your ownership.

Yes, I did.

In terms of the hepatitis B virus.

Uh huh.

Let me kind of preclinical data yeah, the hepatitis B product yeah. So so obviously, we presented that recently are our some of our capabilities in the gene editing space because I'm you know Chris.

Chris is a platform company, that's been developing liver targeted a nanoparticle that encapsulates mrna for therapeutics, but we believe that this technology is quite broad and applicable to multiple therapeutic.

Therapeutic areas of therapeutic modalities and gene editing is just one of those modalities that we we feel very encouraged that this technology can be applied in that in that arena.

And more specifically you know the data for hepatitis B for example that was presented in Paris recently this was well received because it's another example of how our lunar technology has the ability to deliver large and very large M. Rnas to hepatocytes and so it is it opens up the field.

The opportunity a little bit broader than before.

Okay, great. Thanks, Bob and congrats on all the problem with it.

Okay. Thank you.

Thank you and there are no further questions at this time I will now hand, the call back to Joe.

Oh, hey, thanks for participating on the call everyone.

Theres any remaining questions of course reach out to our team and we'll get back to you right away. Thanks to everyone Goodnight.

Yeah.

Thank you ladies and gentlemen, the conference has now ended thank you all for joining you may all disconnect.

Yeah.