Q3 2023 Lineage Cell Therapeutics Inc Earnings Call
Welcome to the lineage cell Therapeutics third quarter 2023 conference call. At this time all participants are in a listen only mode. An audio webcast of this call is available.
On the investors section of lineage website at Www Dot <unk> Dot com. This call is subject to copyright and is the property of idiots and recordings reproductions or transmissions of this call without the expressed written consent of lineage are strictly prohibited as a reminder, today's call is.
Being recorded I would now like to introduce your host for today's call you want a home head of Investor Relations at lineage Miss One. Please go ahead.
Thank you Jordan good afternoon, and thank you for joining us.
Press release reporting our third quarter 2023 financial results was issued earlier today November nine 2023 and can be found on the investors section of our website. Please note that today's remarks and responses to your questions reflect management's views as of today only and will contain forward looking.
Within the meaning of federal Securities laws.
<unk> made during this discussion that are not statements of historical fact should be considered forward looking statements, which are subject to significant risks and uncertainties.
Company's actual results or performance may differ materially from the expectations indicated by such forward looking statements for a discussion of certain factors that could cause the company's results or performance to differ.
Refer you to the forward looking statements section in today's press release and in the company's SEC filings, including its most recent annual report on Form 10-K, and its subsequent quarterly reports on Form 10-Q.
We caution you not to place undue reliance on any forward looking statements, which speak only as of today and are qualified by the cautionary statements and risk factors described in our SEC filings with US today are Brian Kelley, Our Chief Executive Officer, Joe, How our Chief Financial Officer, and Garry Hoak, Our senior Vice President.
Clinical and medical affairs with that I'd like to turn the call over to Brian.
Thank you Juan and good afternoon, everyone. We appreciate you taking the time to join us today.
I'm pleased to report that everything remains on track with our most important development plans and we continue to have many reasons to be excited about the future.
For example, we recently reached a milestone with the A&P one program for hearing loss, which I look forward to describing further today.
But first I want to start off by talking about our manufacturing subsidiary because it is located in Israel and the work performed by that group is very important to us we have more than 50 employees in Israel and naturally the safety and well being of that team is our top priority.
Fortunately, there's been almost no impact on our operations due to the Israel Hamas War. Our facility itself is located in a suburban area approximately 30 minutes outside of Jerusalem, and it has not been directly impacted by the ongoing conflict.
We have an extremely capable and dedicated team and while a small number of employees or spouses were called up for reserve duty. The team has continued to maintain their high level of output in particular by completing the final validation work for OTC, one and continuing manufacturing activities for opera Jim.
As additional support for our employees, we have made supplemental employee services available as may be needed.
And in the meantime, we will continue to monitor the situation closely and if needed we will adjust our operations accordingly, but we expect we will be able to continue to operate our business as normal in both Israel and the U S.
Moving on to origin, we were pleased to present last week at the <unk> conference in San Francisco in a session called mapping the future of geographic atrophy.
There were more than 40 ophthalmology companies showcasing their innovations, but we were one of just four companies selected to share the main stage with a palace and Ive, Eric Astellas in front of a large audience of retinal specialists investors and other interested parties was wonderful to be recognized among them.
Most promising approaches in the Gi space and I hope the replay from that presentation will be available soon for your review.
As an additional part of our ongoing efforts to broaden awareness of the opera Gen program Roche.
Roche and Genentech Electively reported data last month from our phase <unk> clinical study at the 2000 <unk> retina Congress.
These latest results, which were independently generated and reported by our partners focused on the rapid time to onset of retinal structure improvements in <unk> treated patients, which are vastly faster than anti complement approaches.
You may have noticed that there has been a lot of attention recently drawn to the effects of complement inhibition during its third consecutive year of treatment, whereas I prefer to call. It after 18 to 36 injections.
Meanwhile.
Our data showed that after just a single administration of oxygen improvements to retinal structure, where detectable in some cases just days later and always within three months.
As a reminder, all five patients who had extensive coverage of the G. A lesion with the surgical blood containing a suspension of operation demonstrated evidence of improvement in the outer retinal structure and visual acuity gains at 12 months.
Additionally, maintenance or greater improvements in retinal structure were observed over time.
These data continue to give us confidence in our lead asset and we look forward to additional future clinical data updates on the operating program from our partners Roche and Genentech for both the fully enrolled phase Iia study, which we conducted as well as from Roche's Phase Iia study, which is currently enrolling.
Okay.
In parallel with these additional data announcements, we have continued inventing and patenting new process development methods to support long periods of exclusivity for our pipeline of cell transplant programs, including offer Jim.
In September the U S. PTO issued a patent entitled large scale production of retinal pigment epithelium cells.
This patent which has been exclusively licensed to lineage Hasnt expected exploration date of July 28 2036.
And we believe further enhances the value of the option program.
For reasons I've shared previously on several occasions I'm, Unfortunately, not yet able to provide any details about the results from the ongoing phase Iia trial of opportunity.
But patient enrollment continues data are being collected and additional sites are expected to come online, which you can follow at clinical trials Dot Gov.
And while im not able to speak to when or where topline data will be available. We understand that investors are eager to learn whether roche can reproduce the clinical observations, which lineage reported from our phase <unk> study and we aim to provide that information at our first possible opportunity.
Moving next to <unk>, our spinal cord program, we remain on track to submit the IND amendment for the new delivery device before year end.
The work we have been conducting recently as necessary to submit the IND Amendment, which itself is a requirement to initiate our planned clinical safety study of the new spinal cord delivery device, which we licensed from near gained technologies.
Assuming submission of the NDA before year end as we've planned.
And if no FDA comments are received in the 30 days following that submission that will permit us to bring <unk> back into clinical testing by opening our first site and initiating a small safety study in sub acute and chronic patients with either thoracic or cervical spinal cord injuries, presumably in Q1 of next year.
In parallel with this work we continue to be in contact with the California Institute for regenerative medicine regarding potential financial support for the <unk> program and.
And specifically for this anticipated clinical trial.
As I've shared before we intend to apply for financial support for this study after we complete the 30 day waiting period.
Or address any further requirements for our IND amendment as is consistent with serve guidelines.
Moving next to A&P one.
We committed to providing an update before year end and I'm happy to provide that update today.
As a reminder, A&P one is our cell transplant program being developed to address hearing loss and we have been conducting preclinical testing of our A&P one sells through a collaboration with the University of Michigan.
Our initial objectives from this collaboration were to evaluate the delivery of ourselves into specific target areas using standard surgical tools.
To monitor initial and grassman of ourselves into certain anatomical destinations.
And to assess whether our cells survive after transplantation.
We also wanted to see whether the cells migrated and if they were expressing certain markers of neuronal identity.
The outcomes from this initial proof of concept work were both positive and encouraging and we consider the results sufficient to advance. This program into its next phase of preclinical development, which is to evaluate our A&P one sells in a functional model of hearing loss.
Two reasons why we're excited about reaching this milestone and proceeding into functional assessments are first the recent deal activity in the hearing loss space, which includes early stage assets and second clinical reports from gene therapy approaches to treat certain kinds of hearing loss.
We believe cell therapy may have advantages over certain kinds of gene therapy, and so far as replacing the entire cell means you don't have to select for patients who carry a specific genetic defect.
We think this offer cell therapy larger addressable markets, while matching the advantages of the one and done treatment schedule of gene therapy.
And if we're able to demonstrate a functional signal in an animal model that may create opportunities for business development or partnering of A&P. One if we determine that is the preferred path for us to pursue.
Okay.
I am also excited about the A&P one program because it represents our flagship example of the speed and return on R&D investment, which is possible with the lineage platform.
We advanced from little more than a product concept into preclinical testing in less than 12 months and with an initial investment of less than $1 million.
That is possible largely because the pluripotent cell lines, which we start with are by definition capable of differentiating into every cell type of the human body.
Once we figure out how to make the desired cell and can do so in a reproducible and scalable manner, we have essentially created a new pipeline asset.
Well clearly this is an environment, where capital raising is not cooperating with opportunities for rapid expansion. We will continue to try to find clever and affordable ways to extend our capabilities and unlock value in the months and years ahead.
As a second example of our efforts to create significant long term value without large capital commitments. During this past quarter, we initiated certain development activities under our partnership with Aeterna Therapeutics.
This collaboration with Aeterna is an example of our strategy of capitalizing on our extensive and proprietary process development capabilities.
By combining them with externally access cell engineering and cell editing technologies.
All for the purpose of creating novel and potentially superior product candidates.
In the specific case of Aeterna, we finalized the selection of edits for the initial Ips cell lines being developed to reduce the immunogenicity of certain product candidates and.
And we additionally, selected a particular edit intended to confirm clinical differentiation and a competitive advantage and it's applicable indication.
And while we believe it is premature to disclose this program at this time, if we do reach predefined developmental milestones next year, we will look forward to sharing more details on this initiative with you.
To wrap up the biotech environment continues to be extraordinarily challenging.
The sector is experiencing historic under performance and in some cases, even what appears to be positive news isn't being rewarded.
But regardless I believe lineage continues to be well positioned to advance our business.
Our commitment to financial discipline has helped us remain relatively stable for the past two years.
And do I wish we could move faster.
Of course, but capital comes with a cost and sometimes it's better to reduce your pace of investment such as when we made the strategic decision to divert the vac to program to more of a BD project instead of initiating a clinical study on our own.
But the most important thing overall is that we've been able to keep moving forward in these difficult times and I think our progress is demonstrated in our frequent business updates.
And with our lead asset being advanced by Roche and Genentech, We believe lineage can offer shareholders an opportunity to reset expectations about what is possible in the treatment of geographic atrophy, which continues to represent an unmet need despite recent marketing authorizations from competing age.
Once.
So to summarize the three key points for today, one the events in Israel have not had a material impact on our business.
Two we continue to be extremely happy with the relationship we have with Roche and genentech, including their commitment to advancing opportunity.
And three we are eager to complete the final steps for the <unk> IND Amendment. This year. So that we can have a second cell transplant program in active clinical development.
And with that I will hand, the call to Jill for a discussion of our financials.
Thanks, Brian and good afternoon, everyone, beginning with our balance sheet I am pleased to report that we continue to be well capitalized to conduct with near term activity, which Brian just outlined.
Our reported cash cash equivalents and marketable securities as of September 32023 totaled $41 3 million, which is expected to support our current planned operations into the first quarter of 2025.
This is one quarter further and some of you may have expected and is due to efficiencies and opportunities to <unk>.
And our runway, which we have identified during the quarter in which we will continue to look for going forward.
Next we will review our third quarter operating results.
Our revenue is generated primarily from licensing fees royalties collaboration revenue and research grant.
Total revenues were $1 2 million.
Net decrease of $1 8 million as compared to approximately $3 million for the same period in 2022.
The decrease was primarily driven by lower collaboration and licensing revenue recognized from deferred revenues from the Roche agreement.
Operating expenses are comprised of research and development expenses and general and administrative expenses.
Total operating expenses were $7 8 million a decrease of $1 2 million as compared to <unk> 8 million for the same period in 2022.
R&D expenses were $3 7 million, a net increase of $2 1 million as compared to $3 6 million for the same period in 2022.
The increase was primarily driven by $1 2 million and higher OTC one program related expenses.
<unk> 5 million in expenses to support preclinical and other research and development program.
These increases were primarily offset by a $5 million decrease in our back program primarily related to reduced manufacturing activities.
G&A expenses were 4 million a net decrease of approximately $4 million as compared to $4 4 million for the same period in 2022.
The decrease was primarily due to an overall reduction in cost incurred for services by third party consulting costs and recruiting related expenses.
Loss from operations were $6 7 million, an increase of $1 5 million as compared to $5 2 million for the same period in 2022.
As a reminder, this loss was driven by a noncash expense primarily due to revenue recognition associated with the Roche agreement.
Other income and expenses included other expenses of <unk> 4 million compared to other expenses of <unk> 3 million for the same period in 2022. The change was primarily driven by exchange rate fluctuations related to our international subsidiaries.
Fair market value changes in marketable equity securities and interest income from our marketable debt securities.
Net loss was $7 1 million or <unk> <unk> per share compared to a net loss of $6 1 million or <unk> <unk> per share for the same period in 2022.
Overall, we have maintained our same spending discipline, which continues to serve as well as the uncertainty impacting the biotech market continues we believe that maintaining discipline in our spending will continue to allow us to maintain our plan to reach meaningful milestones make important progress and create value for shareholders from our investments in our program.
Now, let me hand, the call back to Brian.
Great. Thanks, Joe as I said at the celebrate a conference last week cell therapy has revolutionized the oncology world.
Cell therapy stands alongside chemotherapy and surgery is one of the pillars of cancer therapy, and we believe that cell therapy in the cell therapy Revolution will extend beyond oncology into other areas, including ophthalmology and we will continue to strive to apply differentiated cells and are replacing restore approach to help achieve that end.
A key piece of that journey and presumably one of the biggest questions for potential lineage investors is whether roche will be able to independently reproduce our findings of improved retinal structure and function with opera, Jim. So we'll be doing everything we can to support their efforts to conduct the ongoing study while also.
Working closely with them to transfer our production process to their manufacturing facility in the U S, which will help support any further development and commercialization activities, which are pursued.
I appreciate your attention today and with that operator, we are ready to take analyst questions.
Thank you.
Your first question comes from the line of Joseph <unk> from H C. Wainwright Your line is live.
Hey, everybody. Good afternoon. Thanks for taking the question so Brian I am going to ask about the opera Gen Phase Iia anyway, but.
But I'm going to ask it this way based on the totality of the data and especially the recent imaging data do you have any sort of anecdotal comments. How this may have impacted positively the conduct of the study and being able to say bring on.
Principal investor I'm, sorry, investigators or additional sites quicker.
Okay.
Thank you for the question Joe.
Response won't have any specific anecdotal references what I will reference as a previous statement I made on a call like this where I said that I felt that the first.
I don't know, let's say dozen or so people who underwent this therapy, we're incredibly courageous and brave. They were the first in the world now that we have been able to show the kinds of clinical outcomes, which are possible. My presumption is that the conversation between.
The investigative sites and the patient could be easier because they can point to some of the same data, which Roche and genentech has been presenting through their channels or which lineage previously presented.
Its own channels, but I do want to emphasize that that is not a specific statement over the conduct of the ongoing phase III thats entirely under the control of Roche and Genentech I, just think that the fear factor could be mitigated in part by some of the wonderful outcomes that we have described.
<unk> previously.
That's totally fair I appreciate that and then if you would just go down a little earlier into the pipeline you made some A&P one comments today.
Whether it's that asset or others. When do you think we might be able to see.
Preclinical data in a poster or some other fashion and separately as part of the earliest stage.
As assets how would you describe the current interest with regard to the bag platform. Thanks a lot.
Yes. Thank you also for that question My mind turns to what I described a moment ago, which is a functional preclinical model with A&P one.
I don't think that I would want to wait for <unk>.
Some sort of.
Research conference, if we generated encouraging data in that setting because while the initial proof of concept work that we did around delivery migration expression of identity factors, that's important and even necessary I think the true inflection point the.
Early stage Inflexion point for a program like A&P, one is some sort of indication of functional effect in an animal model because that has been largely elusive two different approaches to date.
So we.
We as I described we are designing that that next phase of preclinical development right now we intend to conduct at through the alliance. We've already established with the University of Michigan, but these studies do take months to conduct and quality checks and so forth. So certainly a 2000.
<unk> 24 event not a 2023 event.
But I think that would be the one that I think would be quite exciting in part because of the considerable addressable market for hearing loss as well as some of what I referenced earlier, which are the BD activity and hearing loss has been quite.
Substantial even for early stage assets.
And in fact, our platform interest.
Yet back is continuing to be a.
Project for the business development team, rather than an internal clinical development program.
<unk> in part due to some let's say partial rationalization of the biotech environment and then also because of the nature of the Vac program I E that different antigens could be presented through the dendritic cell and it is impossible to think that we could exhaust all of the.
Different product profiles that one could contemplate using that so we very much see that more as a mini platform, which is more well suited to try to develop through partnership activity rather than with our own current capital on hand.
Thank you.
Thank you Joe.
Your next question comes from the line of Jack Allen from R. W. Baird. Your line is live.
Okay.
Hi, This is <unk> on for Jack on the updates as it relates to the turnout partnership and development of hyper immune cells for neurological indication theyre, hoping you might be able to provide.
Provide some additional color surrounding what sorts of indications you might be going out in neurology and what drove you to death.
Thank you Abby for that question.
I think it is comfortable to say that.
A hyper immune cell line offer some potential advantages in indications where rejection is of greater concern than in the eye or in the spinal cord.
That is not to say that our hyper immune line couldn't still be utilized in places that are immuno privilege, but that is not necessarily what we have in mind in trying to generate that line.
I don't think at this point, we're at a position to say anything more than there are indications that might be good opportunities for our cell transplant approach for which having a hypo immune line makes a lot of sense I can obviously point to what.
People have seen in type one diabetes.
And I think some of the <unk>.
In HP data nonhuman primate data coming out of <unk>.
A similar company down the road from US I think is quite evocative. So this is part of a larger strategy of utilizing and relying on our process development expertise and thinking about where this technology will go because I find it difficult to <unk>.
And that the only place we can get these extraordinary clinical outcomes is in the setting of the eye and even specifically utilizing RPE I think that this field will reveal itself to have and harbor other opportunities, but they might be more easily addressed using a hypo immune.
Line than a line, where you have risks of rejection and I should probably know that we have approximately a 100 person years of exposure of our non hypo immune lines with opportune and we've never had a single case of rejection.
It's not to say that it is a non zero possibility. This is biology and its complex, but our approach here is to have staged investment from the later stage such as the phase II program with opportunity all the way back to very early stage cell line development, which is what we're doing via the alliance.
With Aeterna, which by the way also includes more of a strategic gene edit that has a very specific purpose and and as yet undisclosed indications.
Wonderful. Thank you and then as a follow up you had mentioned.
Type one diabetes I was wondering if you could kind of comment on your thoughts about the initial proof of concept.
As it relates to bear <unk> program in Parkinson.
I love it.
I think that it helps to validate a replace and restore strategy.
Im encouraged by what I've seen I must acknowledge that I am not an expert in type one diabetes. Our company as you know is much more neurologically oriented, but I do think that the mechanistic principles, which underlie their work and our work share.
A lot of common features and that is exactly why we are looking for affordable ways to expand the scope of our platform and how it gets deployed.
Wonderful. Thank you so much.
Thank you Abby.
Your next question comes from the line of Christian Buss Cantor Fitzgerald.
Your line is live.
Hi, good afternoon everybody.
Mike.
Wanted to ask if you are aware or seeing any new trends.
Two enrollment in general not specifically asking you to comment on opportunities in light of some of the advances in over the last year.
On one hand.
Our therapy is available now, but then on the other hand, perhaps that we're excited to try these may be looking for other options.
The issues that have come up.
Christian if I could ask you to expand a little on that my mind is thinking about when Covid first came along and people on ophthalmology clinical trials began skipping appointments for for example, wet AMD therapies, but is that what you have in <unk> and <unk>.
<unk> or <unk>.
Something more specific to offer Jim.
Just like the geographic atrophy phase in general meaning that.
Therapies approved now so on one hand patients may not be as interested in a clinical trial, but that to play Devil's advocate here, maybe those patients that were interested in getting an approved therapy.
Having second thoughts in light of the safety issues that a variety.
Thank you.
My personal experience because I'm not collecting data.
One can rely on but.
I sit there and I see the commercials for the approved agents just like all of us.
And because of my association with GAA I also monitor some of the issues and concerns around vasculitis or other aes.
I believe what that all points to is the.
The unavoidable relationship between the clinical benefit and the safety profile of any asset and.
And I think that the reason that safety has become the focus of the anti complement field of late is attributable to the fact that there is some real questions not about the rate of.
<unk> of AE and the risk to the patient, but whether the benefits are worth taking that risk so to put a finer point on it you just don't get very much clinical benefit to justify the risks of even rare adverse events.
I think that is contrast, it with the current product profile of op Virgin or the desired product profile of offer Jin insofar as we are going to great lengths to point to visual gains not slower losses.
And the improvement in retinal architecture, rather than slowing the progression of the disease. So we are talking about clinical outcomes that are wildly beyond the reach of anti complement and that would naturally invite a different level.
<unk>.
<unk> tolerability on adverse events.
These ultimately all fee down to individual choice. There are people, who are willing to go to great lengths and take great risks because vision is so critical to their daily living.
There are others that are that feel quite differently. So I don't think that theres, a unanimous perspective with respect to patient population, but I do think that the patient population is getting increasingly educated thanks to the approval of the anti complement therapies.
Whereas in the past they were told I can't do anything for you stopped smoking and each year leafy green vegetables, now they are becoming experts on their condition and they are understanding these trade offs and these risks I think the overall competitive landscape and the commercial opportunity is very favorable.
For <unk>, because I think that the clinical benefits are compelling I think a single procedure is very compelling with respect to compliance and follow up and I am hopeful that ultimately the safety profile of opera Jen will also provide a better ratio compared to what we are seeing on <unk>.
Just a daily basis with anti complement I hope that is helpful too.
Provide my my view of that question.
Thanks, so much.
Can you can you remind us or share what your latest thoughts are about the market opportunity specific for spinal cord injury I know.
You've done a lot of work with your peers in the space in particular to really put our heads together and think about a number of these questions. Thanks. So much.
Thank you for that question Christian because the company neither.
Prices it's it's.
<unk> product candidate at this point nor.
Have we got a definitive idea as to what would be an on label.
Patient population it would be difficult to say, what we think our peak sales for example of that asset would be what we can point to or some reference information.
Globally, the overall spinal cord therapy market I believe is referenced upwards of $700 billion to $910 billion.
I think that neuro link, which is the Elon Musk company recently provided some very specific projections about what they think their pricing could be and how many patients. They think they could be treating I believe in year five I think they kind of came out somewhere around $800 million.
U S. Dollar so there are some data points out there.
For us we haven't refined it beyond our internal analyses.
Simply because it still is early.
And it'll be driven of course by value based pricing. So we don't know what it's worth so to speak because we don't have a real strong.
Metric.
To use but that is actually part of the clinical study design is to ensure that we are tracking and measuring things that are important to patients so that.
We can justify a high value in connection with the pricing.
Any future therapeutic which gets approved so there is a tremendous unmet need there are a lot of different approaches out there certainly we feel comfortable that it is worth the investment in the space there is a paucity.
Competing programs and our approach could work quite comfortably with a lot of other approaches such as electrical stimulation or some of the more.
Physical external mechanistic.
Approaches that are being developed including potentially some of the.
Brain interface work that is starting to emerge is really interesting as well so I'm sorry, I can't keep it short and just give you a number but we feel comfortable that the.
Merits continued investment because it does represent an exciting area that again can cooperate with other approaches that are in development.
Thanks, a lot Brian.
Thank you Kristen.
Your final question comes from the line of Pat.
Danny from B Riley Securities Your line is live.
Hey, guys Madison here for a.
A couple of questions for me.
One you mentioned.
Guys are looking at cover financing and then I believe you said that.
In regards to Aeterna there are some predefined milestones next year.
So just wondering if I heard that correctly and if so if you could.
Mentioned, what kind of the trigger is what is the kind of threshold that you would need.
You need to hit.
And then.
Secondly.
The A&P one functional model.
I'm wondering if that's a model that you guys have created or are creating or just a widely used model.
The literature.
And then lastly.
If you could.
Cause the Trent.
Transfer of activities to Roche for manufacturing kind of the status of that I know its still ongoing.
But if you could kind of.
Mentioned, the progress made say versus last quarter.
Thanks, guys.
Thank you Madison, hopefully attract those questions correctly with respect to clinical financing.
We're fortunate that we believe that our programs and in particular, the LPC one spinal cord program are a good match for the California Institute for regenerative Medicine.
And we would hope to be eligible for and receive financial support.
I would.
I would suggest to you that I am not sure that there is a better cost of capital than that fantastic.
Program that is available here in the great state of California, So I really like serve and I'm hopeful we'll be able to get support as that program has received support in the past and I know of no reason, we wouldn't be eligible in the future.
With respect to Aeterna and triggers the agreement that we have is one in which there are certain performance metrics, which you turn a is looking to accomplish in generating the line. So we are funding a certain amount of work and they are going to produce.
A a.
A deliverable and that deliverable has to meet certain criteria. If it does that would trigger some elective payments if we want to continue.
And we want to continue that would be success, but if they fail. We're not compelled to have to continue but we elected previously that we would be making some investment in their work and supporting some of that work almost like an outsource model because we are not gene editing experts and do not have.
Have those capabilities here.
Your third question around A&P, one and the model actually let me finally and bring in Dr. Hug and he can talk about.
Whether we're looking for a precedent and then Gary you may as well continue on tech transfer all the others, there's little we're allowed to say yes.
Hey, medicine, So we're working with a group in Michigan and Thats over a number of other groups.
Our number of well known models and outcome assessments, so within Texas, not devote develop something de novo to utilize <unk> as president and so we're working with those groups to figure out the best models for that.
But we're not reinventing the wheel here and as Brian alluded to the Tech transfer is on target at this point and that's about all we can say.
Got it I appreciate it guys.
There are no further questions at this time.
Our meeting for today you may now disconnect from the conference.
Okay.
Thank you Jordan and hi, everyone.
Okay.
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