Q4 2023 Altamira Therapeutics Ltd Earnings Call
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Operator: Good morning and welcome to the Altamira Therapeutics Business Update and Full Year 2023 Earnings Conference Call. On today's call are Thomas Meyer, Altamira's founder, chairman, and chief executive officer, and Covadonga Paneda, Altamira's chief operating officer.
Good morning, and welcome to the <unk> to me it was therapeutics business update and full year 2020 free earnings conference call.
Cove: On today's call after it must be at all to me and to me. It was found that chairman and the Chief Executive Officer, and Cove, I don't got Penny Dol Alta near as Chief operating Officer.
Operator: Earlier today, Altamira issued a news release with the full year 2023 financial results as well as a comprehensive business update. The release is available on the company's website at www.altamiratherapeutics.com and has been signed by the SEC. During today's call, the company will be making forward-looking statements within the meaning of the Private Security Litigation Reform Act of 1995. These include statements that address future operating, financial, or business performance or its strategies or expectations. Forward-looking statements are based on management's current expectations and beliefs and involve significant risk and uncertainties that could cause actual results, development, and business decisions to differ materially from those contemplated by these statements.
Cove: Earlier today <unk> issued a news release with a fully get 2020 free financial results as well as.
Cove: A comprehensive business update.
Cove: The release is available on the company's website at Www Dot those to me right Therapeutics Dot Com and has been fine with the S. E C.
Cove: During today's call the company will be making forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995.
Cove: These include statements that address future operating financial or business performance goal is strategies or expectations.
Cove: Forward looking statements are based on management's current expectations and beliefs.
Cove: And involve significant risks and uncertainties that could cause actual results development and business decisions to differ materially from those contemplated by these statements.
Operator: These risks and uncertainties include, but are not limited to, the timing and conduct of our clinical trials, the clinical utility of our product candidates, the timing or likelihood of regulatory filings and approvals, our Intellectual Property Proposition, and our Financial Position, as well as those described in the Risk Factors section of our Annual Report on Form 20-F and future filings with the Securities and Exchange Commission. In addition, any forward-looking statements represent the company's views only as of today and should not be regarded as representing its views as of any subsequent date. While it may elect to update this forward-looking statement at some point in the future, it specifically disclaims any obligation to do so, even if its views change. With that said, I will now hand the call over to Altamira Therapeutics CEO, Thomas Meyer. Please go ahead.
Cove: These risks and uncertainties include but are not limited to.
Cove: The timing and conduct of our clinical trials, the clinical utility of our product candidates, the timing or likelihood of regulatory filings.
Cove: And approvals, our intellectual property proposition and our financial position as well as those described in the risk factors section in our annual report on form 20-F, and future filings with the Securities and Exchange Commission.
Cove: In addition, any forward looking statements represent the company's views only as of today and should not be replied upon as representing its views as of any subsequent date.
Cove: While it may elect to update these forward looking statements at some point in the future. It specifically disclaims any obligation to do so even if Easter views change.
Cove: With that I will now hand, the call over to to me around therapeutic CEO Thomas MEO. Please go ahead.
Thomas Meyer: Thank you, Razia. Hello everyone, and thank you for joining our business update and full year 2023 earnings call. I will kick off the call by providing an overview of recent corporate developments, as well as an update on our strategy. Our COO, Covadonga Paneda, will then discuss the progress in our new core business of RNA delivery. Finally, I will discuss our financials and outlook for 2024 before opening the call for any questions.
Thomas Meyer: Thank you Rajiv.
Thomas Meyer: Hello, everyone.
Thank you for joining our business update and full year 'twenty two 'twenty three earnings call.
Thomas Meyer: I will kick off the call by providing an overview of recent corporate developments as well as an update on our strategy.
Thomas Meyer: C O N.
Thomas Meyer: We will then discuss the progress in our new core business of RNA delivery.
Thomas Meyer: Finally, I will discuss our financials and the outlook for 2024 before opening the call for any questions.
Thomas Meyer: Reflecting on where Altamira stood one year ago and where we are today, I'm pleased to say that we made great progress and emerged as a stronger and more focused company. We keep progressing with RNA delivery. More and more potential applications for our Oligo4 and Sema4 nanoparticle technology are being identified, and we just recently concluded our second collaboration agreement with another exciting biotech company. Extra hepatic delivery of RNA and efficient intracellular release are hot topics in the industry.
Thomas Meyer: Reflecting over ultimate Euro stood one year ago, and where we are today I.
Thomas Meyer: I'm pleased to say that we made great progress and emerged as a stronger more focused company.
Thomas Meyer: We keep progressing with the RNA deliberate business more and more potential applications for our legal for in semi for nanoparticle technology.
Thomas Meyer: Being identified.
Thomas Meyer: Just recently concluded our second collaboration agreement with another exciting biotech company.
Thomas Meyer: Extra hepatic delivery of RNA and efficient intracellular release or a hot topics in the industry.
Thomas Meyer: With the recent partial spin-off of our Venture Legacy business, we took a significant first step on our journey towards becoming a fully focused R&D delivery company, and we expect to complete the strategic repositioning of the company through the partnering of our AM125 legacy asset in 2024. Those legacy assets have substantial intrinsic value, and we just started to unlock that potential. We managed to streamline our cost structure and reduce cash burn very significantly. At the same time, we cleaned up our balance sheet by paying off all financial debt earlier than planned and rebuilt shareholders' equity from a deficit to 6.5 million Swiss francs or more than 7.1 million U.S. This puts us in a much stronger position.
Thomas Meyer: With the recent partial spin off of our bench old legacy business. We took a significant first step on our journey towards becoming a fully focused RNA delivery company.
Thomas Meyer: And we expect to complete the strategic repositioning of the company through partnering of our Am 125 legacy asset in 2024.
Thomas Meyer: Those legacy assets have substantial intrinsic value and we just started to unlock that potential.
Thomas Meyer: We managed to streamline our cost structure and reduced cash burn very significantly.
Same time, we cleaned up our balance sheet by paying off all financial debt earlier than planned and rebuild shareholders' equity from a deficit to 6.5 million Swiss francs.
Thomas Meyer: More than 7.1 million U S dollars.
Thomas Meyer: This puts us financially in a much stronger position.
Covadonga Paneda: We are seeing great potential in the RNA space and are now much better positioned than one year ago to take advantage of these exciting opportunities. With this, I'm handing the call over to Covadonga Paneda, our Chief Operating Officer, who will provide you with an update on our RNA delivery business. Thanks, Thomas, and good morning everyone.
Thomas Meyer: We are seeing great potential in the RNA space and are now much better positioned than one year ago to take advantage of these exciting opportunities.
None: With this I'm handing the.
None: Paul over to cover the hang up on you know our Chief operating officer, who will provide you with an update on our RNA delivery business.
Paul: Oh Wow.
Thanks, Thomas and good morning, everyone.
Covadonga Paneda: Indeed, these are exciting times to work in the RNA space. Tremendous progress has been made over the past decades in science, research, and development, with the pace of discoveries and innovation increasing even more. Delivering RNA to target cells beyond the liver and releasing the RNA efficiently inside cells, however, have remained major challenges today. This is where we come in with our peptide-based oligophore and semaphore nanop
Paul: Indeed, these are exciting times to work in the R&D space.
Paul: Tremendous progress has been made over the past decades, and science research and development with the pace of discovery and innovation, increasing even more.
Delivering RNA to target itself beyond the liver and releasing the RNA efficiently inside cells. However have remained major challenges to date.
Paul: This is where we come in with our peptide base or like a floor on semaphore nanoparticle platforms.
Covadonga Paneda: The technology allows for extrapathic RNA delivery as the nanoparticles distribute within the body to diseased tissue, in particular to inflamed tissues in cancer and inflammatory or autoimmune diseases. Once inside target cells, the nanoparticles disassemble and release their RNA payload at substantially higher rates than lipid nanoparticles, the current industry standard. Oligo4 and Sema4 have been validated in more than 15 distinct animal disease models utilizing both siRNA and mRNA by various research groups worldwide.
Paul: The technology allows for extra paddock RNA delivery at the nanoparticles distribute within the body to disease tissues in.
Paul: In particular actually inflamed tissues in cancer, and inflammatory or auto immune diseases.
Paul: Once inside target itself, the nanoparticles disassemble and released our RNA payload at substantially higher rates than lipid nanoparticles the curve.
Paul: Industry standard.
I'll go for on Semaphore has invalidated across more than 15 distinct animal disease models utilizing both SA RNA.
Paul: Marni by various research groups worldwide and we're exciting excited to see the evidence continues to grow.
Covadonga Paneda: And we're excited to see the evidence continue to grow. In 2023, two in vivo studies performed by independent research groups using the Xenophore platform showed promising results for mRNA treatment in cancer and osteoarthritis, where upregulation of CWTB46 expression resulted in an immunostimulatory tumor microenvironment and restricted tumor growth. The effect was significantly potentiated when combined with anti-PD-1 immune checkpoint inhibition. On the other hand, increased DNMT3b expression resulted in reduced bone sclerosis, cartilage degeneration, cyanovitis, and pain sensitivity following meniscal injury.
Paul: In 2023 two in vivo studies performed by independent research groups using the Senate floor platform sure promising results for <unk> treatment in cancer and osteoarthritis.
Paul: [noise] Upregulation of <unk> TB 46 expression resulted in immuno stimulatory tumor microenvironment and restricted tumor growth.
Paul: Effect was significantly potentiate it when combined with anti PD, one immune checkpoint inhibition.
Paul: On the other hand increase of D. N M. G. <unk> expression resulted in reduced bone sclerosus cartilage degeneration, synovitis and pin sensitivity following meniscal injury.
Covadonga Paneda: Another independent research group recently showed that insertion of our peptide into adeno-associated virus vectors significantly enhanced cell transduction. Recombinant adeno-associated virus vectors are commonly used as carriers to introduce nucleic acids into cells for gene therapy. We are pursuing in the RNA delivery business a pick and shovel strategy based on the licensing of our platform technology to partners in the biotech and pharma industry for use in their own RNA drug product development programs. The first of such collaborations has been set up. Hackett's Therapeutics, a spin-off from King's College London, will test nanoparticles based on Altamira's oligophore platform and comprising certain non-coding RNAs in the regeneration of damaged heart tissue following myocardial infarction in animal models. Universal's group will evaluate the use of the Semaphore platform for the delivery of mRNA vaccines. Increasing the effective amount of mRNA delivered to target cells with Altamira's technology may allow for using lower mRNA doses and thus result in potentially more effective and efficient vaccines.
Another independent research group recently showed that insertion of our peptide into <unk> associated virus vectors.
Paul: Can efficiently enhance cell transduction.
Paul: The combination.
Paul: <unk> associated virus vectors are commonly used as carriers to introduce nucleic acid into into south with gene therapy.
Paul: Okay.
Paul: We are pursuing with the RNA delivery delivery business, a pick and shovel strategy based on the licensing of our platform technology to partners in the biotech and pharma industry.
Paul: For use in their own R&D rock drug product development programs.
Paul: The first of such collaborations have been set up.
Paul: Heck, it's therapeutics, a spinoff from Kings College, London will test nanoparticle based on Altamira article four platform and comprising certain non coding RNA in the regeneration of damaged heart tissue following myocardial infarction unanimous models.
Paul: Juniper ourselves group will evaluate the use of the semaphore platform for the delivery of mrna vaccines, increasing the effective amount of mrna delivered to target cells without the mast alkermes technology Melo for using lower doses.
Paul: Thus with salt and potentially more effective and efficient vaccines.
Covadonga Paneda: We expect to enlarge and engage in additional collaborations as we further develop the platform, generate additional data, and advance through IND-enabling studies. Meanwhile, while working on our platforms, we are also pursuing two proprietary drug development programs. These are our flagship programs that will demonstrate the potential of the technology. At the same time, we believe that they represent attractive growth opportunities. We are developing AM401 for the treatment of KRAS-driven cancers and AM411 for the treatment of rheumatoid arthritis. We aim to advance both programs into an investigational new drug filing with the FDA in 2025 and to out-license them either following the IND or after a Phase I clinical trial at the latest. The current focus is on the optimization of the formulation and process development for scaling up nanoparticle production.
Paul: Expect to enlarge to engage in additional collaborations as we further develop the platform generate additional data and advance to I N DNA been studies.
Paul: While working on our platforms. We are also pursuing two proprietary drug with developmental programs.
Paul: They are our flagship programs with shell demonstrate the potential of the technology.
Paul: At the same time, we believe that they represent attractive growth opportunities.
Paul: We are developing a M 401 for the treatment of K, Ras driven cancers, and I am 411 for the treatment of rheumatoid arthritis.
Paul: We aim to advance those programs into an investigational new drug filing with the FDA in 2025 and to out license them either following the I N D or after a phase one clinical trial at the latest.
Paul: The current focus is on the optimization of the formulation and process development for scaling up.
Paul: Political production.
Covadonga Paneda: For the AM401 program, Altamira filed a patent application with the United States Patent and Trade Office to provide broad coverage of different KRAS mutations in cancer treatment with nanoparticles comprising the Oligo4 platform and a single siRNA sequence that we call poly-KRAS-MUTE. In vitro data confirmed the ability of poly-K RASMUTE siRNA to knock down G12C and G12V. G12-D, G12R, G12A, and A46T, which account for the majority of KRAS mutations in pancreatic, colorectal, and non-small cell lung cancer.
Paul: For the a M 401 program Altamira filed a patent application with the United States patent and trade office to provide broad coverage of different K Ras mutations in cancer treatment with nanoparticles comprising the article for platform and a single SA RNA sequence that we called <unk>.
<unk> mute.
Paul: In vitro data confirm the ability of poly chaos mute SA RNA to knockdown G 12 C G.
Paul: <unk> V.
Paul: <unk> D.
Paul: G 12 R. G E M a 46 T.
Paul: Which account for the majority of K Ras mutations in pancreatic colorectal and non small cell lung cancer.
Thomas Meyer: I will now turn the call back to Thomas. Thanks, Kovar. Let me discuss now our two main legacy assets, the Benchio drug-free nasal spray for allergies and our AM125 bad histine nasal spray for vertigo and other disorders of the central nervous system. In November of last year, we announced the partial spinoff of our venture business as an important first step in our strategic pivot towards RNA delivery. As a reminder, we sold a 51% stake in our subsidiary Altamira Medica AG to a Swiss private equity investor for a cash consideration of 2.04 million Swiss francs, or approximately 2.3 million US dollars. Apart from the raise of non-dilutive cash, the transaction generated a financial gain of 5.2 million Swiss francs, or close to 6 million US dollars, and will result in a reduction of operating
Paul: I would now turn the call back to Thomas.
Thomas: Thanks COBOL.
Let me discuss now our two main legacy assets debenture drug free nasal spray for allergy.
Thomas: Mm 125 that <unk> nasal spray for where to go and other disorders of the central nervous system.
Thomas: Okay.
Thomas: In November of last year.
Thomas: We announced a partial spin off of our <unk> business as an important first step in our strategic pivot towards RNA delivery.
Thomas: As a reminder, we sold 51% stake in our subsidiary Altamira Medical AG Swiss private equity investor for a cash consideration of two point, all 4 million Swiss francs.
Thomas: Approximately $2 3 million U S dollars.
Thomas: Apart from the raise of non dilutive cash.
Thomas: Infection generated a financial gain of $5 2 million Swiss francs will close to 6 million U S dollars.
Thomas: And will result in a lowering of operating expenses.
Thomas: Altamira will be entitled to receive 25% of any future licensing income of medical and.
Thomas Meyer: Altamira will be entitled to receive 25% of any future licensing income from Medica and also of Medica's value appreciation in case of a sale, which captures an additional share of the business's upside potential. We consider this upside potential to be substantial. In clinical trials, Venture showed great efficacy in alleviating the main symptoms of allergic rhinitis and hay fever and improving health-related quality of life, all of this without containing any active pharmaceutical ingredients.
Thomas: And also because value appreciation in case of a sale, which captures an additional share of the business upside potential.
Thomas: Yeah.
Thomas: We consider this upside potential to be substantial and clinical trials venture showed great efficacy and alleviating the main symptom muscle for allergic rhinitis Hay fever.
Thomas: And improving health related quality of life.
Thomas: All of this without containing any active pharmaceutical ingredient.
Thomas: This allows for a unique positioning of the product as an alternative to medicate that message nasal sprays or in combination with oral treatments such as anti histamines.
Thomas Meyer: This allows for a unique positioning of the product as an alternative to medicated nasal sprays or in combination with oral treatments such as antihistamines. We expect sales to grow significantly from 2024 onwards, primarily driven by the launch of Benchio through distributors in additional countries. For China, one of the largest markets worldwide, we already have a collaboration. It is with Nuance Pharma, which began in 2022. Nuance is currently distributing the product successfully in Hong Kong and is aiming for market approval in mainland China and South Korea later this year.
Thomas: We expect sales to grow significantly from 'twenty to 'twenty four onwards, primarily driven by the launch of <unk> through distributors in additional countries.
Thomas: For China, one of the largest markets worldwide alright.
Thomas: I already have a collaboration with <unk> pharma, which began in 2022.
Thomas: <unk> is currently distributing the product successfully in Hong Kong and is aiming for market approval in mainland China and South Korea later this year.
Thomas: Altamira Medicable initially supply venture to Niels and May receive development and commercial milestones of up to $3 million and up to $19 5 million U S stores, respectively.
Thomas: One thing you also assumes local production of venture it will pay to ultimate staggered royalty on net sales at a high single to low double digit percentage.
And Scandinavia or partner from a Nordic just launched the product in Q1, 'twenty 'twenty four and we look forward to successful development there as well.
Thomas Meyer: Altamira Medica will initially supply Venturo to Nuance and may receive development and commercial milestones of up to US$3 million and up to US$19.5 million, respectively. Once Nuance assumes local production of BenchVoid, it will pay Altamira a staggered royalty on net sales at a high single to low double-digit percent. In Scandinavia, our partner Pharma Nordic just launched the product in Q1 2024, and we look forward to successful development there as well. For other key markets, notably the U.S., the world's largest OTC consumer health market, in Europe and elsewhere, discussions and negotiations with interested parties are ongoing. Venture was cleared by the FDA for marketing.
Thomas: For other key markets, notably the U S. The world's largest OTC consumer health market.
Thomas: In Europe, and elsewhere discussions and negotiations with interested parties are ongoing.
Thomas: <unk> was cleared by the FDA for marketing.
However, it is not being marketed in the U S. Yet pending the partnering of the product.
Thomas: We do expect major news flow here in 2024.
Thomas: Overall, we are confident to see our stake in Altamira medica generate a growing revenue stream and result in significant value appreciation.
Thomas: Following this first step in the strategic repositioning of our company, we expect to take the next one in 2024 by partnering our year assets.
Thomas: Partnering discussions are most advanced regarding a 125, a patented nasal spray for the treatment of acute vegetable syndrome.
Thomas Meyer: However, it's not being marketed in the U.S. yet, ending the partnering of the product. We do expect major news flow here in 2024. Overall, we're confident to see our stake in Altamira Medica generate a growing revenue stream and result in significant value appreciation. Following this first step in the strategic repositioning of our company, we expect to take the next one in 2024 by partnering our inner ear as. Partnering discussions are most advanced regarding AM-125, a patented nasal spray for the treatment of acute vestibular syndrome, briefly, ABS, a very frequent type of dizziness. This product has been developed to help acutely busy patients to get back on their feet more quickly. The drug product is a reformulation of betahistine, a histamine analog, which in the traditional oral formulation is standard of care treatment for vertigo in many countries around the world, a Phase II trial in Europe demonstrated that a four-week treatment course with AM-125 in ADS patients was well-tolerated and helped to accelerate vestibular compensation, enabling patients to regain balance and recover fast, in the U.S. where oral betazetine exceptionally has not been marketed for decades, and no comparable product exists, Altamira received in summer 2023 IND clearance from the FDA.
Thomas: Briefly avs are very frequent type of dizziness.
Thomas: This product has been developed to help acutely busy patience to get back on their feet more quickly.
Thomas: The drug product is a reformulation of better his stena histamine analog which in the traditional oral formulation as standard of care treatment for Vertigo in many countries around the world.
Thomas: Phase two trial in Europe demonstrate it.
Thomas: At a four week treatment course with am 125 in avs patients was well tolerated and help to accelerate vestibular compensation.
Thomas: Enabling patients to regain balance and recover faster.
Thomas: In the U S. The oral based in exceptionally has not been marketed for decades.
And no comparable product access.
EMEA were received in summer 2023, IND clearance from the FDA.
Thomas: To date, we have invested about 18 million U S dollars in the program.
Thomas: There is one important aspect to am 125.
<unk> is a histamine analogue am 125 may have clinical utility in other central nervous system disorders known for the involvement of histamine.
Thomas: It is known that histamine plays an important role in the regulation of a wide range of behavioral and physiological functions such as appetite drinking sleep wakefulness learning intention of memory.
Thomas: Studies by independent research groups have shown clinical benefits of <unk> in the treatment of ADHD.
Thomas: Cognitive function in dementia.
Thomas Meyer: To date, we have invested about 18 million U.S. dollars in the program. There is one important aspect of AM 125. Since battery steam is a histamine anaerobic... AM 125 may have clinical utility in other simple nervous system disorders known for the involvement of histamine. It is known that histamine plays an important role in the regulation of a wide range of behavioral and physiological functions, such as appetite, drinking, sleep, wakefulness, learning, attention, and memory.
Thomas: Memory loss and antipsychotic induced weight gain among others.
And histamine as a target in narcolepsy probably syndrome.
Thomas: For which we have an orphan drug designation or tourettes syndrome.
Thomas: Therefore, we believe that our E. M 125 offers quite some potential in partnering for Vertigo, but also beyond and especially in the U S market, where there is no oral <unk> available.
Thomas: It is important to note that despite its significant potential.
Thomas: 125 assets currently carries cero value on our balance sheet.
Thomas: Any proceeds derived from partnering with therefore have a direct them.
Thomas Meyer: Studies by independent research groups have shown clinical benefits of beta-histine in the treatment of ADHD, Cognitive Function in Dementia, memory loss, and antipsychotic-induced weight gain, among others. And histamine is a target in narcolepsy, probability syndrome, for which we have an orphan drug designation, or Tourette syndrome. We believe that our AM125 offers quite some potential in partnering for Vertigo, but also beyond, and especially in the U.S. market, where there is no oral beta-astine available. It is important to note that despite its significant potential, AM125F currently carries zero value on our balance sheet. Any proceeds derived from partnering would therefore have a direct and positive impact on our bottom line. Now turning to our financials. Before reviewing our financials for the full year 2023, I would like to note that the financial statements are presented in Swiss French. To help you with interpreting the financials, please note that one Swiss franc is worth approximately 1.1 US dollars.
Thomas: And Paul the tariff impact on our bottom line.
Thomas: Now turning to our financials.
Thomas: Before reviewing our financials for the full year 2023.
Thomas: I'd like to note that the financial statements are presented in Swiss francs.
Thomas: To help you with integrating the financials. Please note that one Swiss franc is worth approximately $1 one U S dollars.
Thomas: Further I need to highlight that the 2022 income statement has been revised retrospectively due to the partial divestiture of debenture business.
Thomas: Debenture activities, our reported now as so called discontinued operations continuing operations.
Thomas: Therefore comprise the RNA delivery development programs as well as those related to M 125.
In 2023, we made great progress in aligning our cost structure with the strategic pivot to the RNA delivery business.
Thomas: Total operating loss from continuing operations decreased from 18 million Swiss francs in 'twenty to 'twenty, two to $5 9 million Swiss francs in 2023.
Thomas: Research and development expenses were 3 million Swiss francs in 'twenty two 'twenty three.
Thomas: Versus $14 6 million in 2022.
Thomas: Excluding a onetime noncash write off impairment of capitalized development expenditures 40, and 125 project based on impairment testing under <unk> as just mentioned.
Thomas Meyer: Further, I need to highlight that the 2022 income statement has been revised retrospectively due to the partial divestiture of the venture business. The venture activities are reported now as so-called discontinued operations, and continuing operations therefore comprise the RNA delivery development programs as well as those related to AM 125. In 2023, we made great progress in aligning our cost structure with the strategic pivot to RNA delivery. Total operating loss from continuing operations decreased from 18 million Swiss francs in 2022.
Thomas: This program has zero value currently on the balance sheet.
Thomas: Research and development expenses rose about 33% from 'twenty to 'twenty two.
General and administrative expenses decreased from $3 4 million Swiss francs to $3 1 million Swiss francs.
Thomas: This.
Thomas: Okay.
None: Ladies and gentlemen, please continue to standby the conference will resume shortly thank you.
Thomas Meyer: 5.9 million Swiss francs in 2020. Research and development expenses were 3 million Swiss francs in 2023 versus 14.6 million in 2022, excluding a one-time non-cash write-off impairment. Capitalized Development Expenditures for the AM-125 project based on impairment testing under IFRS. As just mentioned, this program has zero value currently on the balance sheet. Research and development expenses rose about 33% from 2020. General and administrative expenses decreased from 3.4 million Swiss francs to 3.1 million Swiss francs.
None: Okay.
None: Once again, ladies and gentlemen, please continue to stand by your conference where resume shortly thank you for your patience.
None: Once again, ladies and gentlemen, please continue to hold your conference will resume shortly thank you very much for your patience.
None: Okay.
Ladies and gentlemen, please continue to stand by your conference will resume shortly thank you very much for your patience.
Operator: Ladies and gentlemen, please continue to stand by. The conference will resume shortly. Thank you. Once again, ladies and gentlemen, please continue to stand by. Your conference will resume shortly. Thank you for your patience.
None: Once again, ladies and gentlemen, please continue to stand by your conference will resume shortly thank you very much for your patience.
Operator: Once again, ladies and gentlemen, please continue to hold your conference. We'll resume shortly. Thank you very much for your patience.
None: At a tomasko nehia rises.
Operator: Ladies and gentlemen, please continue to stand by. Your conference will resume shortly. Thank you very much for your patience. Once again, ladies and gentlemen, please continue to stand by. Your conference will resume shortly. Thank you very much for your patience. Hello, Thomas, can you hear us? Yes, I can hear you. Please continue. Thank you. Okay, where was I interrupted?
None: Yes, I can <unk>. Please continue thank you.
Tomasko Nehia: Okay, where was I interrupted.
None: Thank you <unk> on slide 17.
Okay. So.
None: Hello I'm back.
None: So apologies here for the interruption, we lost the connection.
Operator: Thank you, we're on slide 17. OK. Hello, I'm back. So apologies for the interruption. We lost the connection. So I'll start again with slide 17.
None: So.
None: The search again with slide 17, so Sheryl.
Thomas Meyer: So, shareholders. Okay. Can you hear me?
None: Shareholders.
None: Okay.
Okay.
So can you hear me.
Thomas Meyer: Yes, we can hear you, sir. Okay, seems to be a difficult connection. Apologies. All right, so shareholders' equity swung from a deficit of 8.3 million Swiss francs at the end of 2022 to a positive 6.5 million Swiss francs by the end of 2023, which represents an improvement of 14.8 million Swiss francs. This reflects primarily equity races via the equity line with Lincoln Park, the ATM program with HEP, the amortization of the 5T convertible loan, which was completed ahead of time, as well as warrant exercise. On top of this, we raise non-dilutive capital through the partial bentro divestiture. Total liabilities could be reduced from 14.6 million Swiss francs at year-end 2022 to 1.2 million Swiss francs at year-end 2022. At this point, no more financial debt would be outstanding. One year before, their financial debt stood at 5.9 million Swiss francs.
Sheryl: Yes, we can hear you sir.
None: Okay seems to be a difficult connection apologies.
None: Alright so.
None: Shareholders' equity swung from a deficit of $8 3 million Swiss francs at the end of 2022.
None: So a positive $6 5 million Swiss francs by the end of 2023.
None: Each represents an improvement of 14.8 million Swiss francs.
None: This.
None: Flex primarily equity races via the equity line with Lincoln Park. The ATM program was H P.
None: The amortization of the five key convertible loan, which was completed ahead of time as well as warrant exercise.
None: On top of this we raised non dilutive capital through the partial venture divestiture.
None: Total liabilities could be reduced from 14.6 million Swiss francs at year end 2022 to 1.2 million Swiss francs at year end 'twenty three at this point no more financial debt was outstanding.
None: One year before financial debt stood at $5 9 million Swiss francs.
None: Okay.
Thomas Meyer: In terms of cash flow, cash used in operations rose from 8.7 million Swiss francs in 2022 to 11.5 million Swiss francs, primarily due to the normalization of networking capital. Investing activities provided 1.4 million Swiss francs, reflecting mainly the cash inflow from venture transactions. This compares to a cash drain of 2.1 million Swiss francs in 2022. The aforementioned financing activities provided 10.6 million Swiss francs in 2023 versus 9.8 million in 2022. Cash and cash equivalents on November 31st, 2023 totaled 0.62 million Swiss francs, compared with 15,000 Swiss francs the year before.
In terms of cash flow, while cash used in operations.
None: <unk> rose from $8 7 million Swiss francs in 2022 to 11 5 million Swiss francs, primarily due to the normalization of networking capital investing activities provided $1 4 million Swiss francs, reflecting mainly the cash inflow formed venture transaction.
None: This compares to cash strain of 2.1 million Swiss francs in 2022.
None: The aforementioned financing activities provided 10.6 million Swiss francs in twenty-three versus 9.8 million in 2022 <unk>.
None: Cash and cash equivalents on November 31st 2023, total Tau 0.6, 2 million Swiss francs, compared with 15000 Swiss francs the year before.
Thomas Meyer: So Altamira expects its regular total funding requirements for operations and financial obligations in 2024 to be in the range of $6.5 to $7.5 million, that is without any potential proceeds from Portman. During the first quarter of 2024, the company raised about 2 million U.S. dollars from share issuance under the market program with H.C. Wainwright and the equity line with Lincoln Capital. Altamira expects to cover its remaining funding needs through the partnering of its legacy assets and or the sale of equity that secures.
None: So ultimately I expect its regular total funding requirements for operations and financial obligations in 'twenty 'twenty four to be in the range of 6.5 to $7 5 million that is without any potential proceeds from partnering.
None: During the first quarter of 'twenty 'twenty four the company raised about 2 million U S dollars from share issuance under our at the market program with H C Wainwright and the equity line with Lincoln capital.
None: Altamira expects to cover its remaining funding needs.
None: Through the partnering of its legacy assets and or the sale of equity or convertible debt securities.
Thomas Meyer: With this, let me conclude with a brief summary and some perspective. We merged from 2023 in much better shape than we entered, which is good, especially in view of the pretty strong headwinds that the biotech sector has been facing until quite recently. It has been a challenging period for many of our investors, especially those of us who have been around for some time. The partnering of our legacy assets has admittedly taken longer than expected, but now we have locked down that venture deal, and we're working towards the completion of the process with the aim of partnering 125 this year. In addition, with our Oligoforce Semaphore platform, we have a very exciting technology for a very exciting field in human medicine. The platform is very versatile and can be scaled across many different, Picks and Shovels means that cash outflows are smaller, and cash inflows come earlier.
None: With this let me conclude with a brief summary, and some perspectives.
None: B merged from 'twenty to 'twenty three in much better shape than we entered it which is good especially in view of the pretty strong headwinds that the biotech sector has been facing until quite recently.
None: It has been a challenging period for many of our investors in especially those of US who have been around for some time.
None: The partnering of our legacy assets has admittedly taken longer than expected, but now we have locked down that venture deal and we're working towards the completion of the process whiskey aim of partnering 125 this year.
None: In addition, with our illegal for semi for platform, we have a very exciting technology for a very exciting field in human medicine.
None: The platform is very versatile and can be scaled across many different uses.
None: The picks and shovels model means that cash outflows are smaller and cash inflows come earlier.
Thomas Meyer: Over the coming years, we anticipate entering into a growing number of collaborations based on our development programs and business development activities. Last but not least, we have a great, highly motivated team in place to move our RNA delivery projects forward. All of this makes me confident about the future, and I recently added some shares to my holdings. Looking forward, 2024 promises to be an interesting, exciting year with multiple milestone events and Newsflow. I would now like to turn the call back to the operator to open the lines for questions.
None: Over the coming years, we anticipate entering into a growing number of collaborations based on our development programs and business development activities.
None: Last but not least we have a great highly motivated team in place to move our RNA delivery projects forward.
None: All of this makes me confident about the future.
None: And I recently added some shares to my holdings.
None: Looking forward 'twenty 'twenty four promises to be an interesting exciting year with multiple milestone events.
And news flow.
None: I would now like to turn the call back to the operator to open the lines for questions.
Operator: Thank you, sir. As a reminder, to ask a question, please press star 1 and 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 and 1 again.
None: Thank you saw as a reminder to ask a question. Please press star one and one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one and one again once again, please press star one and one on your telephone and wait for your name to be announced.
Operator: Once again, please press star 1 and 1 on your telephone and wait for your name to be announced. Please stand by while we compile the Q&A roster. This will take a few moments. Once again, please press star 1 and 1 if you have any questions or comments. Thank you. We are now going to proceed with our first question. Hello Hunter, can you hear us? Your line is open; please ask your question. Yes, yes, I can hear you.
None: Please stand by while we compile the Q&A roster. This will take a few madmen stinky.
None: Once again, please press star one and one if you have any questions or comments. Thank Kate.
We are not going to proceed with our first question.
None: Yeah.
Speaker Change: Hello, Haddon Secondhand Ross Your line is open please ask your question.
Speaker Change: Yes, yes, I can hear you. So firstly congratulations on the results and all the recent progress.
Thomas Meyer: First of all, congratulations on the results and all the recent progress. So given the shift towards the pick-and-shovels business model, what criteria is the company using to select and prioritize collaborations or licensing agreements for its RNA delivery platforms? Additionally, how does the company plan to leverage its flagship programs to demonstrate the platform's versatility and attract potential partners? Yeah, good morning Hunter, and thank you very much.
Haddon Ross: So given the shift towards that pick and shovel business model, what criteria as the company using to select and prioritize collaborations or licensing agreements for its RNA delivery platforms and.
Speaker Change: And Additionally, how does the company plan to leverage its flagship program to demonstrate the platform's versatility and attract potential partners.
None: Yeah, Good morning, Hunter and thank you very much.
Thomas Meyer: Yeah, so we see here, let's say the partnering has evolved in probably two steps. So the first step is, currently, a more exploratory approach. So we have here a platform that has already shown its utility under quite a few settings, and the universe cells collaboration is one example here. This is something that we have not been pursuing so far, that is, vaccines and mRNA. This came up here during the last year.
None: Yeah, So we see.
None: See here, let's say did partnering evolved in probably two steps.
None: So the first step currently is.
None: A more exploratory approach. So we have here a platform that has already shown.
None: Its utility under quite a few settings and the Universal's collaboration as one example here. This is something that we have not been.
Pursuing so far that is vaccines mrna.
None: This came up here during the last year.
Thomas Meyer: It's something we feel is exciting, but of course, it is still exploratory in nature. We have the HECWIT collaboration, which is a group that has achieved quite some success with regeneration, cardiac regeneration, but they were in need of finding an appropriate and adequate delivery vehicle, and so. These are things that come up during business development contacts; some of these companies approach us. We are pretty open-minded here.
None: It's something we feel is exciting but of course it has something.
Still exploratory in nature.
None: We have the Hackett collaboration.
None: Which is a group that has a achieved quite some success ways regeneration cardiac regeneration.
But they were in need of finding a.
None: An appropriate and adequate delivery vehicle in.
And so these are things that come up during business development contacts some of these companies approach US we are pretty much open minded here. However, it is clear we want to do only things where we see okay. This can lead.
Thomas Meyer: However, it's clear we want to do only things where we see, okay, this can lead to a product at some point, and this is how we prioritize this inquiry. Now, we are still adding data on the platform. The package keeps growing, and that's why I'm talking about two steps. So here, the first step is still a little bit on the exploratory side, but as we get more and more data, we'll talk about a more and more comprehensive package of data that we can offer. And that's when we also expect to see an increase in size, in magnitude, here, in scope of these collaborations. So that's the way we see it.
None: Two a product at a at some point and this is how we prioritize our here. These are inquiries now we are ourselves still adding a data.
None: On the platform the package keeps growing and that's why I'm talking about two steps. So here first step is still a little bit on the exploratory side, but as we will have more and more data.
None: We will talk about more and more comprehensive package.
None: Of data that we can offer and that's when we then expect to see also an increase in.
None: In size in magnitude here I and scope of these collaborations so that's.
Covadonga Paneda: So yes, I mean, we are open, but the clear focus here is on programs that make sense scientifically and economically. And we will evolve as the scope and the content of our package evolves. In terms of the second question about the flagship programs, so maybe Kova, that's one for you.
The way, we see that so yes, I mean, we are open but clearly focus here is on programs that that makes sense is scientifically and economically.
None: And we will evolve here as also the the scope and the content of our package is evolving.
None: In terms of the second question about the flagship program, Sir So maybe carbos. That's one now for you.
Covadonga Paneda: So with the flagship programs, we're hoping to show what our platform can actually deliver in two of the main areas where we see that the semaphore and oligophore can be of advantage, and that is oncology and inflammatory diseases. So the data that we will generate, we hope, will enable us not only to move these assets into clinical development, but also to show potential collaborators what the platform can achieve in these areas. Great. Thank you very much for the detailed answer. And then going back to the legacy programs, do you have any idea of the timeline or milestones for that? And I guess I'm trying to just get more color on how it fits into the RNA program.
None: So we have some it was a flagship programs who are hoping to show them.
None: What our platform can actually deliver.
None: Within two of the main areas, where we see that the semaphore and only before it can be an advantage and that is oncology.
None: On quality and inflammatory diseases.
None: So the data that we will generate will hopefully enable us not only to mute these assets into clinical development, but also to show a potential collaborators what chance of platform can achieve in this areas.
None: Great. Thank you very much for the detailed answer and then gone back to the legacy programs do you have any idea of sort of the timeline or milestones for that and I guess I'm trying to just mark Denmark color on how.
None: It fits into the RNA program, and maybe difficult to discuss timing or milestones for whatever you can mention on that.
Thomas Meyer: And it may be difficult to, you know, discuss timing or milestones, but whatever you can mention about that. Yes, indeed. That's a little bit challenging. I mean, we have two main legacy assets.
None: [laughter], yes, indeed to that's a little bit challenging I mean, we have the tools. The main legacy assets of soap entry all here.
Thomas Meyer: So, Bentrio here, we did the first step, and what we now expect to happen is, through the partnering here for key markets, North America, Europe, and a couple of other markets that Medica, so the company that we spun off partially, will be able to engage in partnerships, one or several partnerships, in 2024. So the timing is still a bit open, but I mean, it has been a while since we have been going through these discussions. We have some parties that could actually be a great fit for the business in terms of distribution, marketing, power, and capacity.
None: We did the first step and what we now expect to happen is.
None: Through the partnering here for key markets, North America, Europe, and a couple of other markets.
None: That Medicare Com, so the company that'd be spun off partially.
None: That they will.
None: Be able here to engage in partnerships, one or several partnerships in 'twenty 'twenty four so timing still a bit open but the I mean, it has been a while that we have been going through these discussions.
None: We have.
None: Some parties that could actually be a great fit I'm here for the business in terms of distribution marketing power and capacity. So this is something that we expect that to happen here.
Thomas Meyer: So this is something that we expect to happen here as we progress through 2024. Now, as a shareholder in Medica, we'll benefit from that, but we also have this 25% share of any licensing stream that will flow to Medica. So that's something that will then actually flow through to Altamira Therapeutics. We also have the NIOS collaboration, I mean, which is already in place, which started in 2022. So here in mainland China, when giving the approval for Bentryl in China, we will also receive some milestone share of that. So that's also in the making.
None: As we progress through 2024 now as a shareholder in medical will benefit from that but you know we also have this 25% share of any licensing upstream that will flow to to medi Cal. So that's something that we'll then actually flow.
None: Through to Altamira Therapeutics, we have also the Niels <unk> collaboration I mean, which is already in place which started in 2022 so here upon.
None: Mainland China.
None: Giving the approval for <unk> in China, we will.
None: Also receive some milestone a share.
None: Of that so that's also in the making now a M on 25 as mentioned here.
Thomas Meyer: Now AM 125, as mentioned here, discussions have been going on for some time. We have here a number of interested parties. At this point, it's still open whether we will finally go for a more global deal or a set of regional collaborations. We believe that the U.S. is a very attractive market for this. Here, we have the opportunity actually to do either vertigo, that's what beta-Astine has been developed for, or to do some other indication that can be a rare disease, that can be something that is much more frequent. And the nice thing here is that, okay, this is really a white spot in the U.S. where oral beta-Astine is not available. So here, there is much more flexibility than in other countries. However, in other countries as well, beta-Astine is well-established for vertigo.
None: Discussions have been going on for some time behalf here a number of interested parties and at.
None: At this point, it's still open whether we've will finally go for a more global deal or.
None: A set of regional collaborations we believe that the U S is a very attractive market for this here, we have the opportunity actually to do either Vertigo, that's what that as Dean has been developed for.
None: Or to do.
None: Some other indication that can be rare disease that can be something that is a much more frequent and the nice thing here is that okay. This is really a white spot in the U S. But as dean oral that 18 is not available. So here there is much more flexibility than in other countries. However in other countries as well.
None: Well that is dean is well established and Vertigo, that's the focus and here, we have a $450 million market for oral <unk>.
Thomas Meyer: That's the focus. And here, we have a $450 million market for oral as of today. We expect that 125 could take a nice slice out of it.
None: As of today we.
None: We expect that one twenty-five cooked a take a nice slice out of this now the difference between let's say U S and rest of world that means.
Thomas Meyer: Now, the difference between, let's say, the U.S. and the rest of the world means, or this explains why we have this question, whether it's going to be more of a global type of deal or whether we may have more of a regional type of transaction because we have these differences in the market. But overall, I mean, things are progressing, and we also expect that something significant will happen in 2024. I hope this answers your question, even without being fully specific about time.
None: Yeah.
None: Or does explains why we have this question, whether it's going to be more a global type of deal or whether we may have a more a regional type of transaction because we have these differences in in market, but overall I mean things are progressing and we also expect to.
None: Here's something.
None: Significant will happen in 'twenty 'twenty four I hope this answers your question, even without being a fully specific about the timelines.
Thomas Meyer: No, absolutely. That's very useful, and it provided great additional color. So, thank you for taking my questions, and I appreciate the update. You're welcome. Thank you. As a reminder, to ask a question, please press star 1 and 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 and 1 again.
None: No absolutely that's that's very useful and then that's great additional color. So thank you for taking my questions and I appreciate the update.
None: Youre welcome.
None: Thank you as a reminder to ask a question. Please press star one and one on your telephone and wait for your name to be announced until we draw. Your question. Please press star one and one again thank Jay.
Operator: Thank you. We are now going to proceed with our next question, and the questions come from the line of Andrew Scott from 395 Group. Please ask your question; your line is open. Great. Good morning, and afternoon, Thomas.
None: We are now going to proceed with our next question.
None: And the question is come from the line of Andrew Scott from for a nine five Cray. Please ask your question. Your line is open.
Andrew Scott: Great. Good morning afternoon Tomorrow, it's a lot of the questions that I had were answered in the prior statement, but are you really done a good job in turning the company around I see a lot of the progress that that youre doing on the RNA platform right now I thought the questions about potential and criteria for other collaborations you've picked up too.
Andrew Scott: A lot of the questions that I had were answered in the prior statement, but you've really done a good job of turning the company around. I see a lot of the progress that you're making on the R&A platform right now. I thought the questions about potential and criteria for other collaborations you've picked up, too, so far. I imagine you're talking to a variety of other people, so the R&A platform's got some pretty good traction. We've got the update on Ventrio, and then as far as AM-125, I know that's been the primary asset and you've put a lot of money into it, but do you have any idea what a potential partnership or out-licensing of the asset would look like? Are you looking for a million?
Andrew Scott: So far I imagine you're talking to a variety of other people. So the RNA platforms got some pretty good traction we got the update on <unk> and then as far as a L. M 125.
Andrew Scott: I know that's been the primary asset and you've put a lot of money into it but do you have any idea on what a potential.
Andrew Scott:
Andrew Scott: Partnering or.
Andrew Scott: Our out licensing of the asset would look like are you looking for a million or you're looking for 5 million obviously as much as you can get because you put a lot of money into it but can you give us an idea on.
Thomas Meyer: Are you looking for five million? Obviously, as much as you can get because you put a lot of money into it. But can you give us an idea on how you're looking to move that asset on and build additional value for the company? Really great turnaround in positive shareholder equity year over year, too. Congratulation. Okay, thank you, Andrew. Indeed, there is a lot of value in AM125.
Andrew Scott: Higher looking to move that asset on and build additional value for the company are really great turnaround.
Andrew Scott: Positive shareholder equity year over year to so congrats.
None: Okay. Thank you Andrew.
Andrew Scott: Yeah. Indeed to there is a lot of value in in a M to 125 as I mentioned, we have invested to 18, one 8 million.
Thomas Meyer: As I mentioned, we have invested $18 million over the years into this. I think what is particular about this product is that it's really relatively low risk in the sense that it's a reformulated nasal spray. It has much better bioavailability than the oral form, and it's patented. I mean, this is all attractive obviously for pharma biotech companies because it's a much different profile. And what is also very unique is that, well, you have a pretty significant drug that is literally marketed around the world in more than 110 countries, but in the U.S., it's not on the market. I mean, it was pulled from the market, not for safety reasons, in the early 70s, and it was never reintroduced. Well, after a while, nobody had any patents.
None: Over the years into this.
None: I think what is particular about this product is really a it's relatively low risk in the sense that it's a reformulation of nasal spray. It has much better bioavailability than the oral form and its patented I mean this is all attractive obviously for a pharma biotech.
Tech companies.
None: Because it's a much different profile and what is also very unique is that well you have here.
None: Pretty significant drug that is literally marketed around the world are in more than 110 countries, but in the U S. It's not on the market I mean, it was pulled from the market not for safety reasons in the early seventies and it was never reintroduced.
None: After a while.
Thomas Meyer: But now, okay, we have a formulation that actually works better than oral and it's patentable, has been patented up to 38. Now, if you take this risk profile, if you take the fact that there is an existing market, and you take the fact that there is IP behind it, then, of course, you can get some pretty interesting scenarios. And one scenario, as already mentioned, that is okay, U.S. Well, there can be different things, different indications that are developed. I mean, I mentioned, for example, Prader-Willi syndrome, which is a rare disease, pediatric rare disease.
None: Nobody had any patent to protect it but now okay. We have a formulation that actually works better than oral and its patented it's patented up to 38 now if you take this risk profile and if you take then the fact that there is an exist.
None: Ting market and you take the fact that there is IP behind it then of course you are.
None: You can get here some pretty interesting scenarios.
None: And one scenario as already mentioned that is okay.
None: The us well can be different things different indications step that are developed I mean, I mentioned for example, proud of Willi syndrome, which is a rare disease pediatric rare disease here, we have had discussions with a patient organization. So there is definitely a need for this could be an interesting div.
Thomas Meyer: Here, we have had discussions with patient organizations, so there is definitely a need for this. It could be an interesting development, but it could also be a very interesting development for other CNS disorders. There are clinical data on ADHD, for example, but also vertigo.
None: Relevant but it could also be a very interesting development for other CNS disorders. There are clinical data on ADHD for example, but also Vertigo U S. Doctors, they tell us we want to see that product approved.
Thomas Meyer: U.S. doctors, they tell us we want to see that product approved. So that's one value pot, so to speak, and XUS, well, you have that existing market, and it's essentially, you can, or we expect this to be marketed at a premium price. Now, as you can already feel and sense, Andrew, I'm trying to avoid giving you here very concrete guidance indications on how a deal or how deals could look. I mean, let's put it that way.
None: So that's one value a pot so to speak and ex U S. Well you have that existing market and it's essentially you can or we expected this to be marketed to at a premium pricing now as you can already feel on sensor Andrew I'm trying to avoid giving you will hear.
None: Zero from very concrete guidance indications on how would the deal or how deals could look like I mean, let's put it that way of course, we see.
Thomas Meyer: Of course, we see here quite some upside. We have a structured process that is ongoing, so we have here some external help. And we will seek to find the best possible partner or partners for this program to unlock the value that is embedded in this product.
None: See here quite some upside.
None: We have a structured process that is ongoing is that we have here some external help and while we will seek to find.
None: The best possible partner or partners for this program to unlock the value that is embedded in this product. So I hope you bear with me that are at this point I cannot be more specific than that.
Thomas Meyer: So I hope you bear with me that at this point, I cannot be more specific than that. I understand, Thomas. I'm good. Well, congrats. I am seeing a lot of other publications about beta histine, so I imagine that acid's going to get much more interesting.
I understand tomorrow. Some good luck congrats I am seeing a lot of other publications about pay to his team.
None: I imagine that our assets can get much more interesting Ah congrats again on a great turnaround in the year.
Andrew Scott: But congratulations again on a great turnaround this year. Okay, thank you. I appreciate it. Thank you. As there are no further questions at this time, I will now turn the call back to management for any concluding remarks. Thank you. Okay, thank you. I believe we have covered all the highlights thoroughly today.
None: Okay. Thank you appreciate it.
None: Okay.
None: Thank you as there are no further questions at this time I will now turn the call back to management for any concluding remarks. Thank you.
None: Okay. Thank you I believe we have covered all the highlights so early today.
Thomas Meyer: Apologies again for the technical issues. I will simply thank everyone for attending this morning's call and for your good questions, and we'll wish you a terrific day ahead. Thank you. Take care. Bye-bye. Ladies and gentlemen, this concludes today's conference call. Thank you all for participating. You may now disconnect your lines. Thank you.
None: Apologies again for the technical issues.
None: I will simply thank everyone for attending this morning's call and for your good questions and we'll wish you have a terrific day ahead. Thank you.
None: Take care Bye bye.
None: Ladies and gentlemen. This concludes today's conference call. Thank you all for participating you may now disconnect your lines. Thank you.
None: [music].