Q4 2023 MorphoSys AG Earnings Call
Yeah.
[music].
Unknown Executive: Good afternoon, ladies and gentlemen. Welcome to the presentation and thank you for joining MorphoSys full year 2023 results and business update. Throughout today's recorded presentation, all participants will be in a list. The presentation will be followed by a question and answer session. If you would like to ask a question, you may do so by pressing the star key followed by zero for operation.
Good afternoon, ladies and gentlemen, welcome to the welcome and thank you for joining as well for this full year 'twenty 'twenty through results and business update conference call.
Throughout today's recorded presentation, all participants will be in a listen only mode.
The presentation will be followed by a question and answer session.
If you would like to ask a question you may do so by pressing star and one.
Preston Stocky, followed by zero for operator assistance been my pleasure to turn the conference over to Julia Neugebauer. Please go ahead ma'am.
Julia Neugebauer: It has been my pleasure to turn the conference over to Julia Neugebauer. Please go ahead. Ladies and gentlemen, good afternoon and good morning. My name is Julia Neugebauer, head of investor relations at MorphoSys, and it is my pleasure to welcome you to our fourth quarter and full year 2023 financial results conference call. Joining me on the call today are Jean-Paul Kress, our Chief Executive Officer, Tim Demuth, our Chief Research and Development Officer, and Lucy Crabtree, our Chief Financial Officer. Additional information regarding the proposed acquisition of MorphoSys by Novartis will be filed with the United States Securities and Exchange Commission over the coming weeks, and we encourage investors to review this information when it becomes available. I'd also like to remind you that some of the statements made during the call today are forward-looking statements, including statements regarding our development plans and expectations for our compounds in our pipeline, as well as the development plans of our collaboration partners, and statements about the proposed acquisition of MorphoSys by Novartis.
Ladies and gentlemen, good afternoon, and good morning, My name is Julian and I give our head of Investor Relations at <unk> for this and it's my pleasure to welcome you to our fourth quarter and full year 2023 financial results Conference call.
Joining me on the call today are Sean Paul Kress, Our Chief Executive Officer, Tim Demoed, Our Chief Research and development Officer, and music factory, our Chief Financial Officer.
Okay.
Additional information regarding the proposed acquisition of Morphoses by Novartis will be filed with the United States Securities and Exchange Commission over the coming weeks and we encourage investors to review this information when it becomes available.
Okay.
I'd also like to remind you that some of the statements made during the call today are forward looking statements, including statements regarding our development plans and expectations for our compounds in our pipeline as well as the development plans of our collaboration partners and statements about the proposed acquisition of morphosis by Novartis.
Julia Neugebauer: These forward-looking statements are subject to a number of risks and uncertainties that may cause our actual results to differ materially, including those described in MorphoSys' Form 20-F and Annual Report, all for the year ended December 31, 2023, and from time to time in other SEC documents of MorphoSys. It is important to keep in mind that our statements in this webcast speak only as of today. This is the agenda for today's call. Jean-Paul will begin with an overview of 2023 and an outlook for 2024.
These forward looking statements are subject to a number of risks and uncertainties that may cause our actual results to differ materially including those described in <unk> form 20-F, and annual report for the year ended December 31, 2023, and from time to time and other SEC documents of more forces.
It is important to keep in mind that all statements in this webcast speak as of today.
Okay.
This is the agenda for today's call Sean Paul will begin with an overview of 2023 and an outlook for 2024.
Jean-Paul Kress: Tim will then share an update on our clinical development work with a focus on Pellabracet, and Lucy will follow this with a summary of our financial results. After our prepared remarks, we will open the call for your questions. I now hand the call over to Jean-Paul. Good morning and good afternoon, everyone.
Tim will then share an update on our clinical development work with a focus on pillar <unk> and Uzi will follow this with a summary of our financial results.
After our prepared remarks, we will open the call for your questions.
I'll now hand, the call over to Sean Paul.
Good morning, and good afternoon, everyone. Thanks for joining us today.
Jean-Paul Kress: Thanks for joining us today. 2023 was a critical and exciting year for MorphoSys. We over-delivered on our key priorities, advanced our potential best and first-in-class oncology pipeline, and further strengthened our financial position, resulting in the company entering into a business combination agreement on February 5, 2024, to be acquired by Novartis. Our investigational bets inhibitor is at the forefront of our promising pipeline in 2023. We demonstrated the potential for Pellabrasib to shift the myelofibrosis treatment paradigm.
2023 was a critical and exciting year for more for this.
We over delivered on our key priorities.
Advanced our potential best in first in class oncology pipeline.
And further strengthened our financial position.
Resulting in the company entering into a business combination agreement.
On February 5th 2024 to be acquired by Novartis.
To elaborate.
Our investigational <unk> inhibitor.
At the forefront of optimizing pipeline.
In 2023.
We demonstrated the potential for pillar, Brazil to shift the myelofibrosis treatment paradigm.
Jean-Paul Kress: As results from our Phase III, Manifest II study showed that all four disease hallmarks were improved with pellabrasib and rexolitinib combination therapy over standard of care at 24 weeks. Patients with myelofibrosis urgently need new options to treat this disease, and pursuing approval of Pellabrasib in first-line myelofibrosis remains our top priority. We also see a great opportunity to expand Pellabrasib into other myeloid disease indications beyond myelofibroidism. We are very pleased with the progress of TULMIMETO. Our Investigational Next Generation Dual Inhibitor of EZ-H2 and EZ-H1, which has shown deep responses in heavily pre-treated patients across a broad array of advanced solid tumors and lymphomas in a phase two study.
Results from our phase III manifest to study showed that all fall disease hallmarks.
Improved with a pillar <unk> and <unk> combination therapy over standard of care at 24 weeks.
Patients with myelofibrosis urgently need new options to treat this disease.
Pursuing approval of <unk>.
In first line myelofibrosis.
Remains our top priority.
We also see great opportunity to expand the elaborate shipped into other myeloid disease indications.
On myelofibrosis.
We are very pleased with the progress of two limit of that.
Our investigational next generation dual inhibitor of <unk> and easy hedged one.
With our shown deep responses in heavily pretreated patients across a broad array of advanced solid tumors and lymphomas in a phase II study.
Jean-Paul Kress: We are continuing investigations of this promising agent and look forward to further elucidating its therapeutic potential. Because of this exceptional progress... We recently announced Novartis' offer to acquire MorphoSys. After a thorough review of all strategic options, we firmly believe that this decision is in the best interest of MorphoSys, and I will say hold there, and cancer patients.
We are continuing investigations of this promising agent.
And look forward to further.
Elucidating its therapeutic potential.
Because of this exceptional progress.
We recently announced novartis offer to acquire muscle disease.
After a thorough review of all strategic options.
We firmly believe that this decision is in the best interest of Morphoses our shareholders.
And cancer patients.
Jean-Paul Kress: Novartis' offer provides attractive, immediate, and certain cash value to MorphoSys shareholders. Novartis intends to offer MorphoSys shareholders 68 euros per share in cash, for a total equity value of 2.7 billion euros. The offer price corresponds to a premium of 94% and 142% on the volume weighted average price during the last two and three months, as of the unaffected January 25th, 2024 close, respectively. Additionally, Novartis' ample resources, additional scientific expertise, and global footprint can help accelerate Pell Labs' potential worldwide. Until the proposed transaction closes,
Novartis offer provides attractive <unk>.
<unk>, eight and <unk> cash value to multiples as shareholders.
Novartis intends to offer more for these shareholders 68 euros per share in cash.
While our total equity value of $2 7 billion euros.
The offer price corresponds to a premium of 94% and 142 person.
On the volume weighted average price during the last month and three months as of the effective January 2015, 2020 for clothes, respectively.
Additionally.
Novartis ample resources.
Additional scientific expertise and global footprint.
Help accelerate pillar, Brazil potential worldwide.
Until the proposed transaction closes.
Jean-Paul Kress: MorphoSys and Novartis are acting as two separate companies. As such, MorphoSys has very clear priorities for the first half of this year.
<unk> and Novartis are acting as two separate companies.
As such.
Most of this has very clear priorities for the first half of this year.
First.
Jean-Paul Kress: We are focused on closing the Novartis acquisition, which we expect will occur in the first half of 2024. The closing process is progressing steadily, and we do not expect any issues. We received antitrust clearances in Germany and Austria and have also made antitrust filings in the U.S. under the HSR Act. The next step in the takeover process is for Novartis to publish their offer document, which is expected next month. Both companies are fully committed to making the acquisition a reality.
We are focused on closing the Novartis acquisition.
Which we expect will occur in the first half of 2024.
The closing process is progressing steadily and.
And we do not expect any issues.
We received antitrust clearances in Germany and Austria.
And have also made antitrust filings in the U S.
<unk> H R.
The next step in the takeover process.
Is for Novartis to publish the offer document.
Which is expected next month.
Okay.
Both companies are fully committed to making the acquisition a reality.
Next.
Tim Demuth: We are continuing to prepare regulatory filings for the Pellabrasib and Ruxolitinib combination in first-line myelofibrosis, with the intention of submitting applications to the U.S. FDA and the European Medicines Agency in the middle of 2024. We are also working to complete the transfer of Tafasita map to InSight, our long-standing collaborator, following the announcement of its sale on February 5th, Lastly, we are diligently managing our cash runway and maintaining business continuity during this exciting inflection point for our company. I would now like to turn the call over to Tim, who will provide a development update. Team, please. Thank you, Jean-Paul. Good morning and good afternoon, everyone.
We are continuing to prepare regulatory filings for the pillar <unk> and <unk> combination in first line myelofibrosis.
With the intention of submitting applications to the U S FDA.
And the European Medicines agency in the middle of 2024.
We are also working to complete transfer of toughest hit them up to insight.
Our long standing collaborator.
Following the announcement of its sale on February 5th 2024.
Lastly.
We are diligently managing our cash runway and.
And maintaining business continuity during this exciting inflection point for our company.
I would now like to turn the call over to Jim.
We will provide the development update.
Tim Please.
Thank you Sean.
And good afternoon, everyone.
Tim Demuth: Since our Phase 3 Manifest 2 results were presented at the ASH annual meeting in December 2023, the myelofibrosis physician community has consistently stated that the PellabaCip and Raxolotinib combination has the potential to shift the treatment paradigm of this debilitating and deadly disease. Notably, in the Manifest-2 study, palabrasib and raxolipnib nearly doubled the proportion of patients achieving at least a 35% reduction in spleen volume over placebo plus raxolipnib at 24 weeks, meeting the primary endpoint of the study. This was a meaningful result given the known association between spleen volume reduction and patient survival. Additionally, compared with placebo plus rexalipnib, the combination of pilabrasib and rexalipnib showed a strong positive trend in reducing symptom burden and improvements across measures of anemia and bone marrow fibrosis at 24 weeks. Very importantly, the Pellabrasib and Raxolitinib combination demonstrated safety results in line with assessments from prior clinical trials. Further, palabrasib and ruxolitinib are associated with fewer grade three or higher adverse events compared with placebo plus ruxolitinib. These findings point to the potential for Pellarbrisib and Ruxlitnib to become the new standard of care for patients with myelofibrosis.
Since our phase three manifest to results were presented at the Ash annual meeting in December 2023.
The myelofibrosis physician community has consistently stated that the <unk> <unk> combination has the potential to shift the treatment paradigm of this stability hitting and deadly disease.
Notably in the manifest to studying collaboratively and direct silicon <unk> nearly doubled the proportion of patients achieving at least a 35% reduction in spleen volume over placebo plus <unk> at 24 weeks meeting the primary endpoint of this study.
This was a meaningful result, given the known association between spleen volume reduction and patient survival.
Additionally, compared with placebo plus <unk>, the combination of collaborative and <unk>.
<unk> showed a strong positive trends in reducing symptom burden and improvements across.
Anemia, and bone marrow fibrosis at 24 weeks.
Very importantly, <unk> and <unk> combination demonstrated safety results in line with assessments from prior clinical trials.
Further <unk> associated with fewer grade three or higher adverse events compared with placebo plus <unk>.
These findings point to the potential for collaborative and <unk> to become the new standard of care for patients with myelofibrosis.
Tim Demuth: With these strong results in hand, our key objective is to bring Collaboration to patients as quickly as possible. This is why our number one priority is preparing and filing our regulatory submissions in the U.S. and Europe by the middle of 2024. We are on track for this process and are confident that our comprehensive collaborative data package will provide impactful evidence to the respective regulatory agencies. We are also continuing to prioritize scientific communications and medical education work for collaborators across the U.S. and Europe through our experienced medical affairs team. We continue to collect safety and efficacy data, including duration of treatment data from the Manifest-2 Phase 3 study. Durability of response is key for physicians treating myelofibrosis, especially as the benefits of currently approved therapies tend to fade over time. We have seen deep and storable responses in patients with mitofibrosis with the palabrasib and raxolitinib combination at and beyond 60 weeks in the Phase II Manifest Study.
With these strong results enhance our key objective is to bring <unk> to patients as quickly as possible.
This is why our number one priority is preparing and filing our regulatory submissions in the U S and Europe by the middle of 2024.
We are on track for this process and are confident our comprehensive collaborative data package, but provides impactful evidence to the respective regulatory agencies.
We are also continuing to prioritize scientific communications and medical education work for collaborative across the U S and Europe through our experienced medical affairs team.
We continue to collect safety and efficacy data, including duration of treatment data from the first two phase III study.
Durability of response is key for physicians treating myelofibrosis, especially as the benefits of currently approved therapies tend to fade over time.
We have seen deep and durable responses in patients with myelofibrosis with <unk> and Rex Loopnet combination apps and beyond 60 weeks in the phase II manifest studying.
Lucinda Crabtree: We plan to share new data from Manifest-2 at the Scientific Congress in the first half of this year. I would now like to turn the call over to Lucy for an update on our finances. Thank you, Tim. Good morning and good afternoon, everyone.
We plan to share new data from manifest to at a scientific Congress in the first half of this year.
I would now like to turn the call over to Lucy for an update on our financials.
Thank you Tim good morning, and good afternoon, everyone.
Lucinda Crabtree: Despite an increasingly competitive environment, net US sales for Monjuvi grew to $92 million for the full year of 2023, reaching the higher end of our 2023 financial guidance. Total revenues in 2023 were €238.3 million, compared with €278.3 million in 2022. Recall that in 2022, we benefited from the execution of our licensing agreement. Total costs of sales in 2023 were €58.4 million, compared with €48.6 million in 2022. This increase is largely due to one-off effects from write-downs on inventories recognised in 2023. Next, we will turn to operating expenses. R&D expenses in 2023 were €283.6 million, compared with €297.8 million in 2022. The decrease in R&D expenses reflects our current clinical study progress and the prioritization of activities across our pipeline. Selling expenses also decreased to €81.4 million in 2023, compared with €92.4 million in 2022. The year-over-year decline is mainly due to active measures to streamline and focus our previous Monjuvi sales efforts. G&A expenses amounted to €65.8 million in 2023 compared with €60.1 million in 2022. This increase was driven by a rise in share-based payment expenses.
Despite an increasingly competitive environment net U S sales for <unk> grew to $92 million for the full year of 2023.
Reaching the higher end of Alto <unk> III financial guidance.
Total revenues in 2023 with $238 3 million.
Compared with $278 3 million euros in 2022.
We call that in 2022, we benefited from the execution of out licensing agreements.
Total cost of sales in 2023 with $58 4 million euros.
Compared with $48 6 million euros in 2022.
This increase is largely due to one off effects from write downs on inventory recognized in 2023.
Next we will turn to operating expenses.
R&D expenses in 2023 with $283 6 million.
Compared with $297 8 million in 2022.
The decrease in R&D expenses reflects our current clinical study programs and the prioritization of activities across our pipeline.
Selling expenses also decreased to $81 2 million in 2023, compared with $92 4 million euros in 2022.
Year over year decline is mainly due to active measures to streamline and focus our previous <unk> sells assets.
G&A expenses amounted to $65 8 million euros to 2023, compared with $60 1 billion euros in 2022.
This increase was driven by a rise in share based payment expenses.
Lucinda Crabtree: This is due to the increase in MorphoSys' share price, which is the valuation basis for our share-based payment programs. For the four-year 2023 consolidated net loss was 189.7 million euros compared to a net loss of 151.1 million euros in 2022. Because of the sale and transfer of Tafsitomab to Insight on February 5th, 2024, MorphoSys 2024 financial guidance, published on January 30th, 2024, cannot be maintained and therefore was revoked. In 2024, we now expect R&D expenses of €170 million to €185 million, reflecting our investments in the development of Collaborative and TommyMetastat. SG&A expenses are expected to be between 90 million and 105 million euros.
This is due to the increase in low doses as share price, which is the valuation basis from share based payment programs.
For the full year 2023, consolidated net loss was $189 7 million compared to a net loss of $151 1 billion euros in 2022.
Because of the sale in terms of tough not to insight and temporary.
2020 full well first is 2020 full financial guidance published on January 30 of 2020 full cannot be maintained and therefore was revenge.
In 2020 full we now expect R&D expenses of 170 million to 185 million euros.
Reflecting our investments in the development <unk> and told me that to Scott.
SG&A expenses are expected to be between $90 million and 105 million euros.
Lucinda Crabtree: Following the announcement of the Tafasitamab sale, we started the transition process immediately and subsequently ceased all field sales activity as Tafasitamab was our only commercial product. As our agreement with Insight did not include the transfer of MorphoSys employees, we made the extremely difficult decision to terminate the employment of all customer-facing field sales colleagues. The significant reduction of our forecasted 2024 R&D and SG&A expenses, compared with 2023, can be attributed to both the sale of Taffer Citimap and the previously announced implementation of broad measures to diligently manage all our available cash. Please note that any effects from the implementation of the Novartis takeover offer are not included in this forecast.
Following the announcement of the toxicity not sale, we started the transition process immediately.
And subsequently ceased all field sales activity is tough to come up with our only commercial product.
As our agreement with insight did not include the transfer prices employees, we made the extremely difficult decision to terminate employment of all customer facing field sales colleagues.
The significant reduction of actual costs through 2020, R&D and SG&A expenses compared with 2023 can be attributed to both the sales offices and the previously announced implementation approved measures to diligently manage all our available cash.
Please note any effects from the implementation of the Novartis takeout.
Included in this forecast.
Jean-Paul Kress: We ended 2023 with cash and investments of €680.5 million, which includes the proceeds from our successful raise of €102.7 million in gross funding. Our cash runway now extends until early 2026, inclusive of our convertible debt repayment. I'll now turn the call back over to Jean-Paul. Before we open the line for questions, I'd like to conclude with a few words. 2023 has been marked by exceptional progress at MorphoSys, resulting in our proposed acquisition by Novartis. We are confident that Novartis' global footprint and leadership in oncology will accelerate the speed and scale at which the significant needs of cancer patients are addressed, with Pellabrasib at the forefront.
We ended 2023 with cash and investments of 685 million euros.
Which includes the proceeds from our successful raise of $102 7 million euros and gross funding.
Our cash runway now extends until early 2026 inclusive of our convertible debt repayment.
I'll now turn the call back over to John pool.
Before we open the line for questions I'd like to conclude with a few words.
2023 has been marked by exceptional progress at <unk>.
Resulting in a proposed acquisition by Novartis.
We are confident that novartis global footprint and leadership in oncology innovation will accelerate the speed and scale at which the significant needs of cancer patients are addressed.
To elaborate.
A default front.
Jean-Paul Kress: We at Novartis are fully committed to making this proposed transaction a reality. With that, I would like to open the call for questions. Operator, please open the line.
We and Novartis.
Fully committed to making this proposed transaction a reality.
With that.
I would like to open the call for questions.
Operator, please open the line.
Unknown Executive: Thank you very much. Ladies and gentlemen, at this time, we will begin the question and answer session. Anyone who wishes to ask... Mayprestha, and if you wish to remove yourself from the question... You may press star and.
Thank you very much ladies and gentlemen at this time, we will begin the question and answer session.
Anyone who wishes to ask a question May press star and one.
John.
If you wish to remove yourself from the question queue, you May press star two.
Unknown Executive: Anyone who has a question may press star and 1. Our first question today is from Derek Archila from Wales. Go ahead. Hey, good morning.
Anyone who has a question maybe for style and one at this time.
Our first question today is from Derek as Sheila from Wells Fargo. Please go ahead with your question.
Hey, good morning, Thanks for taking the questions just two I guess, how long after Novartis publishes the offer dock next month should we expect the deal to close I don't know if theres any analogs you can point to with similar situations and then I just wanted to confirm whether it would be you at morphosis or novartis that would actually submit the NDA for <unk>.
Derek Archila: Thanks for taking the questions. Just to guess, you know, how long after Novartis publishes the offer document next month? Should we expect the deal to close? I don't know if there's any analogs you could point to with similar situations.
Unknown Executive: And then I just wanted to confirm whether it would be you at MorphoSys or Novartis that would actually submit the NDA for Pell Abrasive. Thank you, Derek. Lucy will take the first part of the question.
<unk>.
Thanks, Derrick Lucy will take the first part of the question.
Lucinda Crabtree: Yes, Derek, consistent with our guidance, we expect the deal to close in H1 2024. James, the second part of the question, please. Sure. Hey Derek, this is Tim.
Yes, consistent with our guidance and we expect the deal to close in H, one 'twenty 'twenty four.
And second part of the question. Please.
Hey, Derek this is Tim on the question, who will submit the NDA.
Tim Demuth: On the question of who will submit the NDA, we said in the business combination agreements that we are operating as independent companies until the deal is closed. And so with that, the guidance will be we will submit the NDA unless the deal is closed before, and then we'll have to see. Got it, understood. Thank you so much. Thanks. Our next question comes from... Xian Deng from UBS.
And the business combination agreement that we are operating as independent companies until the deal is closed.
So with that the guidance will be rebuilt.
We will submit the NDA.
The deal is closed before and then we'll have to see.
Got it understood. Thank you so much.
Thanks.
Our next question comes from.
Dang from UBS. Please go ahead.
Xian Deng: Thank you so much. Thank you for taking my questions. Two, please.
Thank you so much and thank you for taking my questions two please.
Xian Deng: The first one is, you mentioned you've already got antitrust clearances from Germany and Austria, and you've also made antitrust filings in the US. I was just wondering if there are any other major ones that you're still waiting to clear and any updates that you could share on that. And the second one should be quite straightforward, just sort of try my luck, just wondering if there's anything you could actually disclose about where you are in terms of the pre-NDA meeting, please. Thank you. Hi Xiang, this is Jean-Paul. I'll take the first part, and Tim will comment on the FDA question. Yes, you're correct. We got the antitrust clearance from Germany and Austria. We filed for the U.S. No other jurisdictions are expected to be needed here.
The first one is you mentioned you've got antitrust hearings.
Already from Germany, and Austria, and you've also made antitrust filing in the U S.
I was just wondering if there are any other major ones that you're still waiting.
To clear and any update that you could share.
On that please.
Second one should be quite straightforward just I'll try my luck.
Wondering if there's anything that you could actually disclose on where are you in terms of pre NDA meeting. Please thank you.
Hi, Shang decision, Paul I'll take the first part and team will comment on the EBITDA question.
Yes, Youre correct, we got the antitrust <unk> from Germany, and Austria, we filed for the U S.
No other.
Your addictions are expected to be needed here and good progress has been made and have been making.
Jean-Paul Kress: And good progress has been made, and I've been making it. Tim, on the FDA question. Sure. Hey, Zhang, this is Tim.
Tim on the on the FDA question.
Sure Thanks, our investment firm.
Tim Demuth: So, we said in the prepared remarks, as well as myself, that we are intending to file mid-year this year for the U.S. FDA as well as EMA. In terms of the pre-NDA meeting, we have the practice here at MorphoSys that we do not publicly discuss details of our interactions with regulatory agencies. We previously said, and we stick with that, that having a pre-NDA meeting is a formality that many companies typically do following positive phase three data. And I can just reiterate that we remain confident that the comprehensive data package will provide impactful evidence to the respective regulatory agencies.
So we set in the prepared remarks from Alex wireless myself that we are intending to file.
Mid year this year to U S FDA as well as EMEA.
In terms of pre NDA meeting.
We.
Half the practice here at my focus that we do not publicly discuss details of our interactions with regulatory agencies.
We previously set and we stick with that stat.
Having a pre NDA meeting is a formality that many companies typically do following positive phase III.
Data.
Yes.
I can just reiterate that we remain confident that the comprehensive data package provides impactful evidence to the respective regulatory agencies. So everything's on track.
Unknown Executive: So, everything's on track. Thank you very much. Ladies and gentlemen, I repeat, if you would like to ask a question, please press star and then. There are no further questions at this time, and I will hand the call back to Julia Neugebauer for closing. Ladies and gentlemen, this concludes today's conference call. The MorphoSys Investor Relations team is available to answer any follow-up questions for the remainder of the day. Once again, thank you for joining us. Have a great day and goodbye, Ladies.
Thank you very much.
Ladies and gentlemen, IRET.
To ask a question please press star and one.
Yes, and no follow up questions at this time, and I'll hand back to Uli and neither wawa for closing comments.
Ladies and gentlemen, this concludes today's conference call on <unk> Investor Relations team is available to answer any follow up questions for the remainder of the day.
Once again, thank you for joining have a great day and goodbye.
Ladies.