Q1 2024 Valneva SE Earnings Call
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Operator: Good day, and thank you for standing by. Welcome to the Valneva Presents its first quarter 2024 financial results conference call. At this time, all participants are in a listen-only mode.
Good day and thank you for standing by welcome to the Evil Naval presents its first quarter 2020 full financial results conference call.
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At this time all participants are in a listen only mode.
After the speaker's presentation, there will be a question and answer session.
I'll ask a question. During this session you will need to press star one one on your telephone.
Then he and automated message advising Johan is raised to withdraw your question. Please press star one one again, please be advised that today's conference is being recorded.
Operator: To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Joshua Drumm. Please go ahead.
Now I'd like to hand, the conference over to you speak stay Joshua Drumm. Please go ahead.
Joshua Drumm: Thank you Sonya.
Joshua Drumm: Thank you, Sonia. Hello, and thank you for joining us to discuss Valneva's first quarter 2024 results and corporate update. It's my pleasure to welcome you today. In addition to our press release and analyst presentation, you can find our consolidated financial results for the three months ended March 31st, 2024, which were published earlier today, available in the financial reports section on our investor website. I'm joined today by Valneva CEO Thomas Lingelbach and CFO Peter Buhler, who will provide an overview and update on our business as well as our key financial results for the first quarter.
Joshua Drumm: Hello, and thank you for joining us to discuss <unk> first quarter 2024 results and corporate update.
Joshua Drumm: It's my pleasure to welcome you today in addition to our press release and analyst presentation. You can find our consolidated financial results for the three months ended March 31, 2024, which were published earlier today available within the financial reports section on our Investor website.
Speaker Change: I'm joined today by Bill Nevis, CEO, Thomas Lingelbach, and CFO, Peter Mueller, who will provide an overview and update on our business as well as our key financial results for the first quarter, there will be an analyst Q&A session at the conclusion of the prepared remarks.
Joshua Drumm: There will be an analyst Q&A session at the conclusion of the prepared remarks. Before we begin, I'd like to remind listeners that during this presentation, we will be making forward-looking statements, which are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these forward-looking statements. You can find additional information about these risks and uncertainties in our periodic filings with the Securities and Exchange Commission and with the French Market Authority, which are also listed on our company website.
Joshua Drumm: Before we begin I'd like to remind listeners that during this presentation, we will be making forward looking statements, which are subject to certain risks and uncertainties that could cause the actual results to differ materially from those expressed or implied by these forward looking statements you can find additional information about these risks and uncertainties in our periodic filings with the Securities and Exchange Commission.
Joshua Drumm: And with the French market Authority, which are also listed on our company website.
Joshua Drumm: Please note that today's presentation includes information provided as of today, May 7th, 2024, and Valneva undertakes no obligation to revise or update forward-looking statements, except as required by applicable securities laws. With that, it's my pleasure to introduce Thomas to begin today's presentation. Thank you so much, Josh.
Joshua Drumm: Please note that today's presentation includes information provided as of today may seven 2024, and <unk> undertakes no obligation to revise or update forward looking statements, except as required by applicable securities laws.
Joshua Drumm: With that it's my pleasure to introduce Thomas to begin today's presentation.
Thomas Lingelbach: Good day, everyone, and welcome to this call on our first quarter, Key Financial Results, and Business. We had a solid start into 2024, and I'm pleased to present some of our key highlights. We made tremendous progress on the pipeline.
Thomas Lingelbach: Thank you so much Josh good day, everyone and welcome to this call on our first quarter key financial results and business update.
Thomas: We had a solid start into 2024 and I'm pleased to present some of our key highlights.
Thomas Lingelbach: We made tremendous progress on the pipeline of cost chikungunya, we caught the payroll for ACI P recommendation.
Thomas Lingelbach: Of course, chicken gunya, we got the favorable ACIP recommendation, and CDC adoption, and we are now seeing first commercial revenues kicking in, and I will provide more updates on that. On Lyme disease, the phase three study, Valor, is progressing according to plan, and we expect the completion of all primary vaccinations very soon. We started, as anticipated, the Zika virus vaccine program and advanced the new second-generation candidate into phase one, which is another key milestone in our R&D.
Thomas: CDC adoption.
Thomas: And we see now first commercial revenues kicking in and that will provide more updates on that.
Thomas: Online disease, the phase III study by the war is progressing according to plan.
Thomas: And we expect the completion of all primary vaccination very soon.
Thomas: We started as anticipated.
Thomas: The Zika virus vaccine program at.
Thomas: Advanced a new second generation candidate into phase one.
Thomas: Which is another key milestone on our R&D pipeline.
Thomas Lingelbach: With regard to the financials, Peter, of course, will give us an update on the full financial report. But, of course, we got the PRV net proceeds in. We reported a quarter one net profit of close to 60 million euros and more than 175 million euros.
Speaker Change: With regards to the financials Peter.
Speaker Change: Peter possibly give us an update on the full financial report, but of course, we got the PRA net proceeds.
Peter Mueller: We reported at quarter, one net profit of close to $60 million.
Speaker Change: And more than 175 million euros in cash.
Thomas Lingelbach: The product sales of $32.1 million are in line with our internal plans, and hence, we have reiterated our 40-year guidance. We significantly extended the cash runway with the recent update to the debt financing agreement. And we have reiterated and are reiterating our strong mid-term financial outlook. We believe that this company is solidly funded with a significantly lower expected cash burn going forward, especially since we expect to complete our payments to Pfizer very soon. Our operational business is considered sufficiently funded, of course, as we have said in the past, excluding debt repayment until LIME commercial revenues are expected to enable sustained profitability.
Speaker Change: The product sales of $32 1 million.
Speaker Change: Are in line with our internal plan.
Speaker Change: Hans.
Speaker Change: We have reiterated our full year guidance.
Speaker Change: We significantly extended the cash runway with the recent update to the debt financing agreement.
Speaker Change: And we have reiterated at our reiterating our strong midterm financial outlook. We believe that this company is solidly funded with significantly lower expected cash burn going forward.
Speaker Change: Especially since we expect to complete our payments to Pfizer.
Speaker Change: Very soon.
Speaker Change: Our operational business is considered sufficiently fund debt.
Speaker Change: Of course, as we said in the past excluding debt repayment.
Speaker Change: <unk> commercial revenues.
Speaker Change: Expected to enable sustained profitability.
Thomas Lingelbach: By way of reminder, we discussed a lot about our strategy, but on page six of the presentation, you see again the three silos, the pillars, as we call them, that underpin our strategy to become a globally recognized vaccine campaign, driving commercial growth on the one hand. We're going to capitalize on our existing commercial business now augmented with our new vaccine X-Chick, and we expect to unlock the value of this vaccine, the first and only Chikungunya vaccine on the market. But building awareness, building markets, expanding global reach, and all of that will enable the commercial business to turn cash flow positive already from 2025 onwards, the second pillar to capture our idea.
Speaker Change: By way of reminder, we.
Speaker Change: We discussed a lot about our strategy but.
Speaker Change: Page six of the presentation you see again, the three silos the pillars, we call them that underpin our strategy to become a globally recognized vaccine company.
Speaker Change: On the one side driving commercial growth here, we kind of capitalize on our existing commercial business now augmented.
Speaker Change: With.
Speaker Change: Our new vaccine in check and we expect to unlock the value of this.
Speaker Change: First and only chikungunya vaccine on the market building.
Speaker Change: Building awareness.
Speaker Change: Building markets expanding global reach.
Speaker Change: And all of that will enable the commercial business.
Speaker Change: To turn cash flow positive already from 2025 onwards.
Speaker Change: Second pillar to capture R&D upsides.
Thomas Lingelbach: We would like to continue investing in new vaccines that address high unmet medical needs, leveraging our proven R&D engine and strategic partnership, focus on vaccines that make a difference, are the first, only, or best. Our key expectation is that we will have another asset ready to anticipate three post-successful LIME readouts of. So overall, the third pillar, Mark, the maximization of our integrated business model.
Speaker Change: We would like to continue investing in new vaccines that attract high unmet medical needs.
Speaker Change: <unk>, our proven R&D engine and strategic partnerships and focus on vaccines that make a difference.
Speaker Change: I the first only best in class.
Speaker Change: Our key expectation is that we will have another asset ready to enter phase III post <unk>.
Speaker Change: Successful.
Speaker Change: Readout of its phase III.
Speaker Change: So overall the third pillar Mark.
Thomas Lingelbach: We believe in what some people call this hybrid model, building continuous value from R&D and commercial execution, supporting, of course, timely LIME approvals and achieving sustained profitability with potential LIME commercial revenues from partner sites. When we look at Chikungunya, we're very proud that we managed this third vaccine in the company's history from bench to successful licensure. It's the world's first and only chikungunya vaccine right now, and it is clearly a differentiated vaccine.
Speaker Change: The maximization of our integrated business model, we believe in what some people call. This hybrid model.
Speaker Change: Building continuous value from R&D and commercial execution.
Speaker Change: Support of course, the timely Lyme approvals and achieve sustained profitability with potential.
Speaker Change: Light commercial revenues from partner Pfizer.
Speaker Change: When we look at chikungunya.
Speaker Change: We are very proud that we manage this third vaccine in the company's history from bench towards successful licensure in the world.
Speaker Change: First and only chikungunya vaccine right now.
Speaker Change: And it is clearly.
Speaker Change: A differentiated vaccine.
Thomas Lingelbach: We expect to benefit by being first to market with a potentially best-in-class vaccine here. We believe we have a differentiated and competitive product characterized by a strong and durable immunological response following a single injection, and we see no difference in the immunogenicity profile between younger and older adults. The vaccine has been generally well-correlated amongst the more than 3,500 adults and more than 700 adolescents evaluated for safety thus far.
Speaker Change: We expect to benefit by being first to market with a potentially best in class vaccine here.
Speaker Change: We believe we have a differentiated and competitive product characterized by a strong and durable immunological response following a single injection.
Speaker Change: And we see no difference in the Immunogenicity profile between younger and older adults.
Speaker Change: The vaccine has been generally well tolerated amongst the more than $3 $5000 more than 700 adolescents evaluated for safety so far.
Speaker Change: Looking a little bit at the timeline.
Thomas Lingelbach: Looking a little bit at the timeline on the launch activities right now, shown on page nine of the presentation, we basically started by building HCP awareness and stock distribution channels. This is something that we have been working on for a while. We then got ACIP approval and the CDC's acceptance. We ensure now that the customers are building respective stocks, and we have built payer coverage. Then, coming soon, we expect to activate the customers and engage with the military.
Speaker Change: Under.
Speaker Change: The launch activities right now shown on page nine of the presentation.
Speaker Change: We basically started by building HCP awareness.
Speaker Change: Stock distribution channels.
Speaker Change: This is something that we have been working on for a while.
Speaker Change: We then got the ACR P approval and the.
Speaker Change: <unk>.
Speaker Change: <unk>.
Speaker Change: We ensure now that the customers are building respective stock and.
Speaker Change: And we built payer coverage.
Speaker Change: Then coming to one we expect to activate consumers and to engage with military.
Speaker Change: In terms of next steps.
Thomas Lingelbach: In terms of next steps, we are supporting our customers who are already actively protecting travelers. We encourage consumers to seek travel health care concerns. And we ensure military officials understand the risk, impact, and threat levels associated with chikungunya.
Speaker Change: We are supporting our customers who are already actively protecting travelers.
Speaker Change: We activate consumers to seek travelers has consults.
Speaker Change: And we ensure military officials understand the risk impact in threat levels associated with chikungunya.
Thomas Lingelbach: We will, of course, continuously monitor the outbreaks and threat levels given that we are talking about an outbreak disease here, and we want to make sure that we are ready in case of outbreaks coming up and adjust our plans accordingly. In terms of regulatory approvals, on page 10 of the presentation, we started with the US, Canada, and Europe are well on track, and we expect review completions and possibly positive opinions in mid-2024.
Speaker Change: We will of course continuously monitor any outbreaks in threat levels given that we are talking about an outbreak disease here and we want to make sure that we are ready in case of outbreaks coming up and adjust our plans accordingly.
Speaker Change: In terms of regulatory approvals page 10 of the presentation.
Speaker Change: We started with the U S, Canada, and Europe are well on track.
And and we expect revenue completions.
Speaker Change: And possibly positive opinion midst of 2024.
Thomas Lingelbach: The Brazilian filing for X-CHECK is ongoing, and this could be the first potential licensure in a Chechnya-endemic country still this year, while, in parallel, we are transferring the process in order to enable also a locally produced product, which we call VLA-1555, to get licensed in Brazil. We will then continue with additional LATAM and LMRC countries and also other markets where we target countries with established travelers or In terms of additional studies and additional activities, you all know that xChick is FDA-approved for adults under the accelerated approval pathway, but we have a very robust clinical program to support continued approval, label extensions, and an updated product profile.
Speaker Change: The <unk> filing for <unk> sake, it's ongoing.
Thomas Lingelbach: And this could be the first potential licensure.
Speaker Change: One young <unk> country still this year, while in parallel we are.
Speaker Change: We are transferring the process in order to enable also a locally produced product, which we call <unk> five five to <unk>.
Speaker Change: Get licensed in Brazil, We will then continue with additional Latam and LMI see countries and also other.
Speaker Change: Markets.
Thomas Lingelbach: Where we target countries with established travelers or endemic markets.
In terms of.
Thomas Lingelbach: Additional studies in additional activities you all know that <unk> is FDA approved for Donaldson under the accelerated approval pathway, but we have a very robust clinical program to support continued approval label extension and updated product profiles.
Thomas Lingelbach: We talked a lot about the Post-Marketing Effectiveness Phase 4 with the Observational Effectiveness Study in participants above 12 years of age in Brazil and the Pragmatic Randomized Controlled Effectiveness and Safety Study in adults in an endemic country where we expect around 20,000 people to participate. This will start at the end of this year, very, very early next year. All preparation activities are well underway. In terms of label extension, we have two very important studies ongoing. First of all, the study in adolescents, VLA 15.5.3, 3 to 1, which is a randomized controlled study in adolescents 12 to below 18 years of age.
Thomas Lingelbach: We talked a lot about the post marketing effectiveness phase four.
Thomas Lingelbach: The observation of effectiveness study in.
Thomas Lingelbach: Participants about 12 years of age in Brazil, and the pragmatic randomized controlled effectiveness and safety study in adult and endemic country.
Thomas Lingelbach: Spectrum 20 people to participate this will start at the end of this year very early next year, all preparation activities are well underway.
Thomas Lingelbach: In terms of label extent expansion, we have two very important studies ongoing first of all the study in adolescence, VLA 15, $5 three three to one which is a randomized controlled study.
Thomas Lingelbach: A lesson plus to below 18 years of age we reported positive initial results.
Thomas Lingelbach: We reported positive initial results. The six-month follow-up data are imminent, and on the basis of that, we will file for label extension, to allow this vaccine to be also approved for everyone above 12 years of age. In parallel, we have initiated this phase two study, in children 1 to 11 years of age. It is well underway, with more than half of it recruited.
Thomas Lingelbach: The six month follow up data are imminent.
Thomas Lingelbach: And on the basis of that we will file for a label extension.
Thomas Lingelbach: To allow this vaccine to be.
Thomas Lingelbach: And approved for everyone about 12 years of age in parallel.
Thomas Lingelbach: We have initiated the study.
Thomas Lingelbach: Our phase two study in children, one to 11 years of age well underway more than half of it recorded.
Thomas Lingelbach: And here, same thing; we will gradually, over time, expand and extend the profile. And then, of course, we are talking about a vaccine with a unique profile in terms of durability of protection, and hence we will continue monitoring the antibody persistence, and we expect later this year the 36 month time point. Just as a reminder, we expect this vaccine after a single shot to protect for at least five years, if not longer, and we will monitor for five years. And there is also a study in immunocompromised adults starting very soon, and as part of the phase three profiles, we will also address this famous topic about early onset of immunity.
Thomas Lingelbach: And here same thing we will gradually overtime.
Thomas Lingelbach: And extend the <unk>.
Thomas Lingelbach: Profile.
Thomas Lingelbach: And then of course, we are talking about.
Thomas Lingelbach: A vaccine with a unique.
Thomas Lingelbach: Profiled in terms of durability of protection.
Thomas Lingelbach: And hence we will continue monitoring.
Thomas Lingelbach: The antibody persistence.
Thomas Lingelbach: And we expect later this year. The 36 month time point just by way of reminder, we expect this vaccine after single shot to protect for at least five years if not longer.
Thomas Lingelbach: And we will monitor our four five years.
Thomas Lingelbach: And.
Thomas Lingelbach: There is also.
Thomas Lingelbach: Debbie in immunocompromised adults.
Thomas Lingelbach: Starting very soon and as part of the Phase III profiles. We will also address this payment topic about onset early onset of immunity.
Thomas Lingelbach: Let me turn over to the Lyme vaccine BLA <unk> partnered with Pfizer.
Thomas Lingelbach: When we turn over to the Lyme vaccine, VLA-15 partnered with Pfizer, I don't know need to repeat again all the key features of this vaccine, but, just by way of reminder, it is the world's leading vaccine candidate against Lyme disease. It's the only program in advanced clinical development.
Thomas Lingelbach: I don't know B to repeat again.
Thomas Lingelbach: All the key features of this vaccine, but just.
Thomas Lingelbach: Just by way of reminder, it is the world's leading vaccine candidates against Lyme disease.
Thomas Lingelbach: The only program in advanced clinical development.
Thomas Lingelbach: It is a multivalent recombinant protein-based vaccine targeting the six most prevalent serotypes in the Northern Hemisphere, and it works based on an established mode of action. In terms of next steps, study by lower, which is our phase three efficacy study, we expect full completion of the primary vaccination series. So on slide 14, this would mean both cohorts, cohort one, as well as cohort two primary vaccination completed, then cohort one booster completion, and then everything geared up towards readout at the end of the tick season 2025, so towards the latter part of the year.
Thomas Lingelbach: It is a multi valens recombinant protein based vaccine.
Thomas Lingelbach: Targeting the six most prevalent serotypes in another hemisphere.
Thomas Lingelbach: <unk>.
Thomas Lingelbach: It's working based on established motive action.
Thomas Lingelbach: In terms of next steps.
Thomas Lingelbach: <unk>, which is our phase III efficacy study.
Thomas Lingelbach: We expect full completion of the primary explanation serious so on slide.
Thomas Lingelbach: <unk>. This would mean, both cohorts cohort one as well as core tool primary explanation completed than card one booster completion, and then everything geared up towards readout at the end of the peak season 2025 towards the latter part of next year.
Thomas Lingelbach: So everything is working well, and we are very excited about this program and the potential to really deliver on a vaccine solution that can make a change in people's lives. Talking about Zika on page 16 of the presentation, you should remember that this is an optimized second-generation vaccine candidate. It is currently the only active one against Zika, and it is leveraging a platform that we originally developed for Xero, then further optimized for VLA 2001. The company's inactivated whole virus COVID candidate or COVID vaccine. And so it is designed for large volumes, excellent tolerability, and safety profile, and potentially, with dual activation, also addressing a very broad and durable protection profile.
Thomas Lingelbach: So everything is working well.
Thomas Lingelbach: We are very much excited about this program and the potential to really deliver on a vaccine solution that can make a change to people's life.
Thomas Lingelbach: Talking about CCAR page 16 of the presentation.
Thomas Lingelbach: You remember that this is an optimized second generation vaccine candidate <unk>.
Thomas Lingelbach: Currently the only active one again CCAR.
Thomas Lingelbach: And it is leveraging a platform that we originally developed for <unk> Ben.
Thomas Lingelbach: Further optimized for BLA 2001.
Thomas Lingelbach: The company's.
Thomas Lingelbach: Inactivated hold virus.
Thomas Lingelbach: Colby candidate.
Thomas Lingelbach: Our COVID-19 vaccine.
Thomas Lingelbach: And.
Thomas Lingelbach: So it is designed for large volume.
Thomas Lingelbach: Excellent Tolerability safety profile.
Thomas Lingelbach: And potentially with dual adjuvant patients addressing also.
Thomas Lingelbach: <unk> broad and durable.
Thomas Lingelbach: <unk> profile.
Thomas Lingelbach: We are currently looking at market opportunities, we are looking at funding opportunities, and we are watching and monitoring the epidemiological developments in the world quite carefully, given that we currently see a lot of signs that Zika is coming back. And we will decide, of course, on next development steps later this year or early next year as we go into the respective data readout processes. Of course, we have a very significant number of exciting preclinical things ongoing, and we expect, as we announced earlier, to provide more pipeline updates in the future.
Thomas Lingelbach: We are currently looking at market opportunities, we are looking at funding opportunities.
Thomas Lingelbach: And we are watching and monitoring the epidemiological development in the world quite carefully given that we see currently a lot of science.
Thomas Lingelbach: For CCAR coming back.
Thomas Lingelbach: And we will decide of costs on next development steps later this year.
Thomas Lingelbach: Our early next year as we are growing into.
Thomas Lingelbach: The respective data readout points.
Thomas Lingelbach: Of course, we have a very significant number of exciting preclinical things ongoing and we expect as we announced earlier.
Thomas Lingelbach: To provide more pipeline updates over the summer.
Thomas Lingelbach: And with this general update on our R&D and launch activities around xJIC, I would like to hand over to Peter to provide us with the financial report. Thank you, Thomas, and good morning and good afternoon to all of you. Now let's look at the financial review for the first quarter of fiscal year 2024. Product sales reached 32.1 million euros and remained stable compared to the first quarter of the prior year. The Chiaro sales reached 16.6 million euros, 4% below last year.
Thomas Lingelbach: With this general updates on our R&D and launch activities around.
Thomas Lingelbach: I would like to handover to Peter to provide us with the financial report.
Peter: Thank you Thomas.
Peter Buhler: The downside was related to supply constraints that are now resolved. Ducoural's sales grew double-digitally and reached 11.3 million euros compared to 10.2 million euros in the first quarter of last year. The increase in Ducroix sales is primarily driven by the continued recovery in the private travel market. Ixchic sales in the United States reached 200,000 euros. And as a reminder, at the beginning of March, the U.S. Center for Disease Control and Prevention, CDC, accepted the ACIP recommendation for Ixchic. Third-party products decreased by 8.9% to 4.1 million euros compared to 4.5 million euros in the first quarter of last year.
Peter: Good morning, and good afternoon to all of you.
Peter Buhler: The decrease is a result of a dissipated supply constraint on one of our commercial parts. As mentioned during our full year 2023 earnings call, we expect third-party product sales to decrease over time with a positive impact on the company's cross-market. Foreign currency effects have no impact on the year-over-year sales performance.
Speaker Change: Now, let's look at the financial review for the first quarter of fiscal year 2024.
Peter Buhler: Product sales reached $32 1 billion euros and remained stable compared to the first quarter of the prior year.
Peter Buhler: The Kyoto sales reached $16 6 million euros, 4% below last year.
Peter Buhler: <unk> was related to supply constraints that are now resolved.
Peter Buhler: <unk> sales grew double digits and reached $11 3 million euros compared to $10 2 million euros in the first quarter of last year.
Peter Buhler: The increase in two cross sales is primarily driven by the continued recovery in private travel market.
Peter Buhler: <unk> sales in the United States reached 200, thousands euros and as a reminder, at the beginning of March the U S Center of disease control and prevention CDC accepted the ACI pure recommendation for <unk>.
Peter Buhler: Third party products decreased by eight 9% to $4 1 billion euros compared to $4 5 million euros in the first quarter of last year.
Peter Buhler: The decrease is a result of anticipated supply constraints with one of our commercial partners.
Peter Buhler: As mentioned during our full year 2023 earnings call. We expect third party productive to decrease over time with a positive impact of the company's gross margin.
Peter Buhler: Currency effects that have no impact.
Peter Buhler: On the yearly overuse of performance.
Peter Buhler: Now moving on to the income statement, total revenues reached 32.8 million euros versus 33.5 million euros in the first three months of 2023. The small decrease in other revenues is related to lower revenues recognized on R&D Collaborate.
Speaker Change: Now moving onto the income statement.
Peter Buhler: Total revenues reached $32 8 million versus $33 5 million euros in the first three months of 2023.
Peter Buhler: The small decrease in other revenues is related to lower revenues recognized on R&D collaborations.
Peter Buhler: Looking at expenses, we observe an increase in cost of goods and services versus the prior year of around 1.7 million euros or 8%. The increase in cost of goods is primarily driven by a write-off or failed XER or BAT. With this write-off, Xearo's cross-margin reaches 52% compared to 58.7% in the prior year. Ducroix's margin is broadly in line with prior years, and research and development expenses decreased by 1 million euros to 13.1 million euros in the first quarter of fiscal year 2020.
Peter Buhler: Looking at expenses, we observed an increase in cost of goods and services versus prior year of around 1.7 million euros or 8%. The increase in cost of goods is primarily driven by a write off or failed <unk> batches with this write off <unk> gross margin reached 62% compared to 58, 7% in the prior year.
Peter Buhler: First quarter two.
Peter Buhler: <unk> gross margins broadly in line with prior year.
Peter Buhler: Research and development expenses decreased by 1 million to $13 1 million euros in the first quarter of fiscal year 2020 for.
Peter Buhler: In the first quarter of last year, we reported higher R&D costs related to our COVID-19 vaccine. However, Xtrick-related R&D costs decreased following U.S. licensure in the fourth quarter of 2023. These savings were to some extent offset by expenses related to the ongoing tax transfer to our new Almeida manufacturing unit in Scotland. Marketing and distribution expenses in the first quarter reached 11.3 million euros compared to 9 million euros in the first quarter of last year.
Peter Buhler: In the third quarter of last year, we reported higher R&D costs related to our COVID-19 vaccine also extract related R&D cost decreased following U S. Licensed during the fourth quarter of 2023.
Peter Buhler: These savings were to some extent offset by expenses related to the ongoing tax transfer to a new Omega manufacturing unit in Scotland.
Peter Buhler: Marketing and distribution expenses in the first quarter reached $11 3 million euros compared to 9 million euros in the first year of last year and the first quarter of last year. This increase is due to higher spend in our U S commercial organization, but particularly to the launch of our chikungunya vaccine vaccine <unk>.
Peter Buhler: This increase is due to higher spend in our U.S. commercial organization and, particularly, to the launch of our Chikungunya vaccine. G&A costs increased by 1.6 million euros to reach 11.7 million euros in the first quarter of 2024.
Peter Buhler: G&A cost increased by $1 6 million euros to reach $11 7 million euros in the first quarter of 2024, the increase is driven by higher recruiting cost increase.
Peter Buhler: The increase is driven by higher recruiting costs, increased costs for share-based compensation, and expenses related to digitalization and automation. In the first quarter of 2024, we sold the priority review voucher obtained upon approval of our chikungunya vaccine X-Chik in the United States. This resulted in a net revenue of 90.8 million euros after deduction of all transaction costs and amounts owed to third parties. The operating result of the first quarter is reported at 67.2 million euros compared to an operating loss of minus 16.6 million euros in the first quarter of the prior year.
Peter Buhler: <unk> cost for share based compensation expenses related to digitalization and automation.
Peter Buhler: In the first quarter of 2020, who we sold to priority priority review voucher obtained upon approval of our chikungunya vaccine <unk> in the United States.
Peter Buhler: This resulted in a net revenue of $90 8 million euros. After deduction of all transaction costs on amounts owed to third parties.
Peter Buhler: The operating results of the first quarter as reported at $67 2 million euros.
Peter Buhler: Third to an operating loss of minus $60 6 million euros in the first quarter of the prior year.
Peter Buhler: The significant improvement of our operating result is, of course, driven by the sale of the PRB. Net finance and income tax expense is reported as minus 9.3 million euros compared to 1.6 million euros in the prior year. The higher cost is related to foreign exchange losses of 2.5 million euros, while in the prior year, we recorded an FX profit of 3.2 million euros. Interest expenses increased by roughly 2 million euros, driven by the increased amount of the loan facility.
Peter Buhler: The significant improvement of our operating result is of course, driven by the sale of the Pov.
Peter Buhler: Net finance and income tax expenses reported minus $9 3 million euros compared to expense of $1 6 million euros in the prior year.
Peter Buhler: The higher cost is related to foreign exchange losses of $2 5 million euros, one of the prior year, we recorded an FX profit of $3 2 million euros in.
Peter Buhler: Interest expenses increased by roughly 2 million euros, driven by the increased amount of the loan facility.
Peter Buhler: With this profit for the first quarter of fiscal year, 2024 reached $57 9 million compared.
Peter Buhler: With this, profit for the first quarter of fiscal year 2024 reached 57.9 million euros compared to a loss of 18.1 million euros in the prior year. Now, moving to slide 20 to review our guidance for the fiscal year. We reiterate our product sales guidance of 160 to 180 million euros for the fiscal year 2024, with a target to double this level of sales by 2026-2027. Other elements of our guidance, as illustrated on slide 21, include total revenues of 170 to 190 million euros and other income of 100 to 110 million euros driven by the sale of the PRV reported in the first quarter.
Peter Buhler: Compared to a loss of $18 1 million loss in the prior year.
Peter Buhler: Now moving to slide 20 to review our guidance for the fiscal year.
Peter Buhler: We reiterate our product sales guidance of 160 280 million euros for the fiscal year 2024.
Peter Buhler: The target to double this level of sales by 2026 27.
Peter Buhler: Other elements of our guidance as illustrated on slide 21.
Peter Buhler: Include total revenues of 170 to 190 million euros.
Peter Buhler: Other income of 100 210 billion euros, driven by the sale of the <unk> reported in the first quarter.
Peter Buhler: We also reiterate our midterm guidance issued during the full year 2023 earnings call.
Peter Buhler: We also reiterate our midterm guidance issued during the full year 2023 earnings call. In particular, we expect x-check sales to exceed €100 million in year 3 of launch. This concludes the final section of this call, and I would like to hand back to Thomas for the upcoming catalyst. Thank you so much, Peter.
Thomas Lingelbach: In particular, we expect <unk> sales to exceed 100 million euros in the in year three of launch.
Peter Buhler: This concludes the finance section of this call and I would like to hand back to Thomas for the upcoming catalysts.
Thomas Lingelbach: Thank you so much Peter.
Thomas Lingelbach: Yeah, so I think we go straight into the reiterated midterm outlook that Peter mentioned earlier. So with regard to total product sales, revenues, other income, and the fact that we really expect sales to double over the coming years and basically drive the company on the back of time for sustained profitability. When we look at our catalysts and key news flow coming up in the short term, the chikungunya vaccine activities that I mentioned earlier include the upcoming approvals with the European Medicines Agency, Health Canada, and Invisa, all of which are expected this year. Then the initiation of the Phase III trial in immunocompromised individuals, which we expect also to start in the first half of this year.
Thomas Lingelbach: Yes, So I think we go straight into the.
Thomas Lingelbach: Reiterated midterm outlook.
Thomas Lingelbach: Peter mentioned earlier, so with regard to total product sales revenues other income.
Thomas Lingelbach: And the fact that we really expect.
Thomas Lingelbach: Sales to double over the coming years, and basically drive the company on the back of climb towards sustained profitability.
Thomas Lingelbach: When we look at our catalysts and key news flow coming up in the short term.
Thomas Lingelbach: Chikungunya vaccine activities that I mentioned earlier include the upcoming approvals with the European Medicines agency.
Thomas Lingelbach: Canada, and Lisa all of that.
Thomas Lingelbach: Expected this year.
Thomas Lingelbach: Then the initiation of the phase III in immunocompromised individuals.
Thomas Lingelbach: We expect also to.
Thomas Lingelbach: To start in the first half this year.
Thomas Lingelbach: I mentioned the six-month safety follow-up period for the adolescent study and right after, therefore, the submission for label extension activities and the Phase IV clinical program to start at the end of this year or very early next year. On the website, we have a whole bunch of key execution milestones coming up, and they all relate to the Valois study. But also important, we expect the two-year antibody persistence data and booster results. It would be a very interesting set of data because it will show how the immune profile will look after the first booster. So whether a vaccination against Lyme disease may be needed on an annual basis or whether there could be a longer vaccination schedule following the initial booster.
Thomas Lingelbach: Mentioned, the six months safety follow up period on the adolescent study and.
Thomas Lingelbach: Right. After the therefore, the submission for enabled extension activities and the phase four clinical program to start towards the end of this year very early next year.
Thomas Lingelbach: Online, we have a whole bunch of key execution milestones coming up.
Thomas Lingelbach: And they all relate to the <unk> study.
Thomas Lingelbach: But.
Thomas Lingelbach: Also important.
Thomas Lingelbach: We expect.
Thomas Lingelbach: Two year antibody persistence data with the results it would be very interesting set of data.
Thomas Lingelbach: Because it will show how the profile will look like after the first poster so at weather.
Thomas Lingelbach: A vaccination against lung disease may be needed on an annual basis or.
Thomas Lingelbach: Whether there could be a longer explanation scheduled following initial booster.
Thomas Lingelbach: Additional news flows include, of course, a new U.S. Department of Defense supply contract, or a contract for Xero in the second half of this year and a further advancement of our deep pipeline. With that, I would like to conclude this presentation and hand it back to the operator for questions. Thanks. As a reminder, to ask a question, you will need to press star 1 1 on your telephone keypad and wait for your name to be announced. To withdraw your question, you will need to press star 1 1 again.
Thomas Lingelbach: Additional news flows include of course, New U S Department of defense supply contract.
Thomas Lingelbach: Ah contract <unk> zero in the second half of this year.
Thomas Lingelbach: And.
Thomas Lingelbach: Further advancement of our R&D pipeline.
Thomas Lingelbach: With that.
Thomas Lingelbach: I would.
Thomas Lingelbach: I'd like to conclude this presentation and hand back to the operator to take your questions.
Speaker Change: Thank you.
Thomas Lingelbach: A reminder to ask a question you will need to press star one one on your telephone keypad and wait for your name to be announced to withdraw. Your question you will need to press star one again.
Operator: We will now take our first question. Please stand by. Please stand by while we take our first question. And the first question comes from the line of Maurice Raycroft from Jeffreys. Please go ahead; your line is now open. Dear Maurie Raycroft, Your line is now open; you may ask your question. There appears to be an issue with the line of Maurice Raycroft.
Thomas Lingelbach: We will now take our first question.
Operator: Please standby.
Operator: Please standby, while we take our first question.
Maurice Raycroft: And the first question comes from the line of Maury Raycroft from Jefferies. Please go ahead. Your line is now open.
Operator: Guillermo you May cast. Your line is now open you may ask your question.
Speaker Change: We can is to be a issue with the line of Maury Raycroft are you happy to take the next question. Please go ahead.
Speaker Change: We will now take our next question.
Operator: Please standby.
Operator: Are you happy to take the next question? We will now take our next question. Please stand by. The next question comes from the line of Max Herrmann from Stifel. Please go ahead; your line is now open.
Operator: Sure.
Operator: The next question comes from the line of Max Herrmann from Stifel. Please go ahead. Your line is now open.
Max Herrmann: Alright, thanks, very much for taking my questions.
Max Herrmann: Great, thanks very much for taking my questions, three if I may, so firstly, just on X-Chick and the launch metrics that you're measuring, obviously, the first quarter sales were kind of not really expected to be significant, but I just wonder if you are seeing, or what you're seeing in terms of..., responsiveness from both clinicians and also from potentially what wholesalers might be taking in inventory and how that might work. The second question is obviously about Ixiaro and the batch issues that you had. Obviously, I don't remember this being commented on in your full-year results, so I'm just kind of wondering when it happened.
Max Herrmann: Three if I may so firstly, just on X chicken launch metrics that youre measuring over the first quarter.
Max Herrmann: Sales were kind of not really.
Max Herrmann: Expect it to be significant but I just wanted to.
Max Herrmann: If you are seeing what youre seeing in terms of maybe responsiveness from both clinicians and also from.
Max Herrmann: Potentially with wholesalers might be taking inventory and how that might work.
Max Herrmann: Second question is obviously on <unk> and the batch issues that you had.
Max Herrmann: I don't remember this being commented on it in your full year results.
Max Herrmann: So I'm just kind of wondering when when it happened.
Thomas Lingelbach: Has it led to any... customers or clinics not being able to receive Xero, so we want to know where it is in the supply chain, how it has impacted the supply chain, whether there's a catch-up period available. And then finally, just in terms of future pipeline, I think you talked about bringing a further Phase 3 program in once the VLA-15 program was completed. I know you talked previously about an R&D day, perhaps at the end of this year, to go through.
Max Herrmann: Has it led to any.
Thomas Lingelbach: Customers.
Thomas Lingelbach: Or Phoenix, not being able to receive <unk>. So I wanted to it where it is in the supply chain has the impact of the supply chain, whether it's a catch up period available.
Thomas Lingelbach: And then.
Speaker Change: If I may just in terms of.
Thomas Lingelbach: Future pipeline I think you talked about bringing a further phase three program in once the BLA 15 program.
Thomas Lingelbach: <unk> I know you talked previously about at R&D day, perhaps at the end of this year to go through I Wonder what your thoughts were with that in mind, then you're MPV program.
Thomas Lingelbach: With what you're seeing with <unk>.
Speaker Change: Astrazeneca and Iqos effects with an RSV MPV program. So those are the three questions. Thank you.
Thomas Lingelbach: I wonder what your thoughts were with that in mind and your MPV program compared to what you've seen with AstraZeneca and ICOSAVAX with an RSV-MPV program. So those are the three questions. I marked, I counted four by the way, let me start off, maybe I should start off with Xero, you know we had last year quite a bumpy restart of Xero manufacturing, right, the team has not produced Xero for almost two years, you know, we switched back from COVID manufacturing to Xero, and so we had quite a number of batches that basically did not successfully complete. Some of them were recognized accounting-wise in the four-year financials; some dragged on into quarter one.
Speaker Change: Hi, Mark I counted four by the way.
Thomas Lingelbach: Yeah.
Thomas Lingelbach: Yes.
Thomas Lingelbach: Let me, let me start off maybe I'll start off with the zero.
Thomas Lingelbach: We had last year quite a bumpy restart of <unk> manufacturing.
Thomas Lingelbach: T.
Thomas Lingelbach: <unk> not produced zero for almost two years.
Thomas Lingelbach: We switched back from Covid manufacturing into <unk>.
Thomas Lingelbach: And so.
Thomas Lingelbach: So we had.
Thomas Lingelbach: Quite a.
Thomas Lingelbach: I would say a number of factors at that.
Thomas Lingelbach: That basically did not successfully complete.
Thomas Lingelbach: Some of them were recognized accounting wise in the full year financials, some some dragged on into quarter one.
Thomas Lingelbach: We had a reported shortage, so some markets were not receiving the anticipated and the demand, the full demand, you know, but no product that was ever in the market was affected by any issues. Now we are back on full supply, and we have enough products successfully manufactured and in the supply chain so that we have been able to reiterate our guidance for the full year. So, everything that we are seeing in total product sales now for the first quarter is in line with our internal planning.
Thomas Lingelbach: We had a reported.
Thomas Lingelbach: Shortage. So there were some market not.
Thomas Lingelbach: Receiving the anticipated.
Thomas Lingelbach: And the demand the full demand.
Thomas Lingelbach: No product that was ever in the market was affected.
Thomas Lingelbach: By any issues.
Thomas Lingelbach: Now we are back on full supply so.
Thomas Lingelbach: <unk>.
Thomas Lingelbach: And we have enough product successfully manufactured and in the supply chain.
Thomas Lingelbach: Or that we have been able to reiterate our guidance for the full year.
Thomas Lingelbach: So everything that we are seeing on total product sales now for the quarter.
Thomas Lingelbach: <unk> is in line with our internal planning.
Thomas Lingelbach: And therefore, we are very confident that everything will work out. When it comes to xShake, yeah, well, I mean, we got CDC adoption, you know, a bit more than six weeks ago. So, of course, the first quarter is not a representative quarter, you know, in terms of what's going to happen.
Thomas Lingelbach: And therefore, we are very confident.
Thomas Lingelbach: And everything.
Thomas Lingelbach: Would work out.
Thomas Lingelbach: When it comes to exchange, Yeah, well I mean, we got PDC adoption.
Thomas Lingelbach: A bit more than six weeks ago.
Thomas Lingelbach: So of course, the first quarter is not.
Thomas Lingelbach: A representative quarter.
Thomas Lingelbach:
Thomas Lingelbach: In terms of what's going to happen.
Thomas Lingelbach: But what we are tracking in terms of launch performance is a combination of metrics that help us. Insight and Understanding at the launch. And there were a couple of points that include that we monitor. We include, of course, the wholesaler and the distributed stocking. So we have a set of wholesalers and distributors with whom we have been working on XCR for a long time, and right now, we know that 100% of our wholesalers and distributors are stockbrokers.
Thomas Lingelbach: But what we are tracking in terms of launch performance.
Thomas Lingelbach: Is it a combination.
Thomas Lingelbach: Metrics that help us.
Thomas Lingelbach: Inside of an understanding as to launch success and there were a couple of points that includes did we monitor we include of course, the wholesaler and distributor stocking.
Thomas Lingelbach: So we have a set of wholesalers and distributors.
Thomas Lingelbach: With whom we are working on NCR with for a long time.
Thomas Lingelbach: And right now, we know that 100% of our wholesalers and distributors.
Thomas Lingelbach: Of course, then we are also looking at stocking at our most important customer accounts, and we have, you know, like everyone, a tier one, tier two account, and so on, and here we are close to 100% stock. Then the next metric that we are currently monitoring is reordering, right, so products are basically being used and then reordered. And actually, for us, the medical part is equally important, and this means coverage. It's all about awareness. This is a brand new disease.
Speaker Change: Of course.
Thomas Lingelbach: Then we are looking also at stocking at our most important customer accounts.
Thomas Lingelbach: And we have like everyone. We have a tier one tier two accounts and so on and here we are close to a 100% stopped.
Thomas Lingelbach: Then the next metric that we are currently monitoring is the reordering product basically being used and then and then <unk>.
Thomas Lingelbach: And.
Thomas Lingelbach: And actually for us the medical part is equally important and this means coverage, it's all about awareness.
Thomas Lingelbach: This is a brand new disease is the <unk>.
Thomas Lingelbach: Brand, new product that will need to make sure that there is enough coverage for Aix Jake.
Thomas Lingelbach: It's a brand new product, so we need to make sure that there's enough coverage for x-jig, and we have seen that this is drastically increasing right now. And we are very pleased with our U.S. commercial team and medical teams that are really building on all of that. And so these are the key parameters that we are monitoring.
Thomas Lingelbach: And we have seen that that this is.
Thomas Lingelbach: Lastly, increasing right now.
Thomas Lingelbach: And and we are very pleased with our U S commercial team and medical team.
Thomas Lingelbach: And are really building on all of that and so that is the key.
Thomas Lingelbach: And yeah, we hope that with the next earnings, we will be able to report already a little bit about real consumption in the market and what's going to happen in terms of people actually getting x-jig in their own homes. When we talk a little bit about the pipeline, yeah, so basically, you mentioned a couple of points. Nothing has changed in the company's R&D pipeline strategy.
Thomas Lingelbach: Parameters that we are monitoring and.
Thomas Lingelbach: We hope that the.
Thomas Lingelbach: With the next journey.
Thomas Lingelbach: We will be able to report already a little bit about.
Thomas Lingelbach: Real consumption in the market.
Thomas Lingelbach: And what kind of what's going to happen.
Thomas Lingelbach: In terms of.
Thomas Lingelbach: People actually getting.
Thomas Lingelbach: Their arms.
Thomas Lingelbach: When we talk a little bit about the pipeline.
Thomas Lingelbach: Yes, So basically you mentioned a couple of points.
Thomas Lingelbach: Nothing has changed.
Thomas Lingelbach: The company's R&D.
Thomas Lingelbach: Potash strategy.
Thomas Lingelbach: Just to recap, we have a very significant number of promising candidates in our preclinical pipeline. However, we have stated in the past that we are looking to augment the pipeline with a clinical stage asset, either on loan or in co-development. And we have said that this is an objective that we have given ourselves for the first half of this year.
Thomas Lingelbach: Just to recap we.
Thomas Lingelbach: Have.
Thomas Lingelbach: A very significant number of promising candidates in our preclinical pipeline. However, we have stated in the past that we are looking to augment the pipeline with our clinical stage assets either alone or in development.
Thomas Lingelbach: And we have said that this is an objective that we have given ourselves for the first half of this year or so now.
Thomas Lingelbach: So now, I would say over the summer, we still hope that we will be able to augment the pipeline while at the same time accelerating some of the activities that we are doing in preclinical. All of that will exactly lead to what you mentioned earlier, Max, namely a program to enter phase three. By then, hopefully, LIME will have successfully completed phase three.
Thomas Lingelbach: I would say over the summer.
Thomas Lingelbach: We still hope that we will be able to augment.
Thomas Lingelbach: The pipeline while at the same time accelerating some of the activities that we are doing in preclinical all of that will effectively lead to what you mentioned earlier, Max namely a program to enter phase III by the time, hopefully lime will have successfully completed phase III.
Thomas Lingelbach: On HMPV, you know, specifically, we stated already last year that we don't see an advantage of moving HMPV standalone into the clinic. Also, it would be ready for it. You know, we have put this asset into the market. There is a very, very limited number of parties that could benefit from an RSV-HMPV combo, and we are still in the process of, actually marketing this asset, but it's too early to talk about here a potential opportunity.
Thomas Lingelbach: On HBV.
Thomas Lingelbach: Specifically, we have stated already last year that we don't see an advantage of moving <unk> stand alone into the clinic.
Thomas Lingelbach: Also it would be ready for it.
Thomas Lingelbach: We have.
Thomas Lingelbach: Put this asset into the market.
Thomas Lingelbach: There is a very very limited number of parties that could benefit from RSV HBV combo.
Thomas Lingelbach: And we are still in the process.
Thomas Lingelbach: Of.
Thomas Lingelbach: Actually marketing this asset.
Thomas Lingelbach: Too early to talk about.
Speaker Change: There are potential opportunity and I hope with that I have been able to address your questions.
Thomas Lingelbach: Okay, maybe just a quick follow up on <unk>.
Thomas Lingelbach: And I hope with that I have been able to address your questions. Maybe just a quick follow-up on Ixiaro. I think there was a mention of movement in Scotland from the manufacturing sector, but I don't know whether that was to the new facility that you have constructed. So just whether any of the batch issues relate to what's been going on, and maybe you could describe a little bit better what's been going on in terms of the facility there.
Thomas Lingelbach: I think there was a mention of movement.
Thomas Lingelbach: In Scotland from the manufacturing.
Thomas Lingelbach: Don't know whether that was to the new facility that you are constructed.
Thomas Lingelbach: So just whether any of the.
Thomas Lingelbach: Tissues relate to the to what's been going on a maybe you could describe a little bit better.
Thomas Lingelbach: <unk> been going on in terms of the facility there.
Thomas Lingelbach: Yeah, basically, we announced that we would use the new facility in the future for Ixchic and Ixiaro, but the tech transfer into the new facility is something that will happen this year. Nothing that you have seen with regard to the batch write-off last year or very early this year had to do with these activities because this is something that we will do quietly over the course of this year and then consolidate all activities on site, which will have a very interesting and favorable impact.
Speaker Change: Yes, so basically we announced that we would use the new facility for in the future for <unk> zero.
Thomas Lingelbach: But it's the.
Thomas Lingelbach: The tech transfer into the new facility is something that we.
Thomas Lingelbach: Will happen during this year nothing that you have seen with regards to the best Friday of last year or very early this year had to do with dis activities.
Thomas Lingelbach: Something that we will do quietly over the course of this year and then.
Thomas Lingelbach: Consolidate all activities on site, which will have a very interesting and favorable impact of cost of goods.
Speaker Change: Great I will jump back in the queue. Thank you. Thank you. Thank you.
Thomas Lingelbach: Great, I'll jump back into the queue. Thank you. Thank you. We will now take our next question. Please stand by. The next question comes from the line of Rajan Sharma from Goldman Sachs. Please go ahead, your line is now open. Hi, thanks for taking my question. A couple.
Rajan Sharma: We will now take our next question please standby.
Rajan Sharma: The next question comes from the line of John <unk> from Goldman Sachs. Please go ahead. Your line is now open.
Rajan Sharma: Hi, Thanks for taking my question.
Rajan Sharma: So firstly, just on Xario. So now that you're back at full supply capacity and following the weakness in Q1, do you expect kind of a catch-up in revenues in Q2, now that you have capacity back online? And then on Ixtchik, could you just help us understand kind of the process for the military engagements. And do you think that there's a potential that you could close a deal or potentially at least engage?
Rajan Sharma: A couple so firstly just on <unk>. So now that you're back at full supply capacity and following the weakness in Q1 do you expect to kind of catch up in revenues in Q2.
Rajan Sharma: Now that you have.
Rajan Sharma: <unk> seen back online and then on.
Rajan Sharma: Chip just could you just help us understand kind of the.
Rajan Sharma: That's in the process to the military.
Rajan Sharma: Engagements and do you think that there's a potential that you could play the tail of potentially at least engage.
Thomas Lingelbach: with military customers before your competitor is potentially approved in the first half of next year. And then the second one on ICTIC was just kind of if you could discuss the strategy to activate consumers that you've talked about. Is this an area that there could be a potential DTC campaign or does the commercial opportunity not justify that? Thank you.
Rajan Sharma: With military customers before your competitor is potentially approved in the first half of next year.
Thomas Lingelbach: And then.
Thomas Lingelbach: Second one on X J could you just kind of if you could discuss the strategy.
Thomas Lingelbach: Consumers that you've talked about.
Thomas Lingelbach: Is this an area that there could be a potential DTC campaign or does the commercial opportunity not just by that thank you.
Thomas Lingelbach: Yes.
Speaker Change: So let me, let me start off with <unk>.
Thomas Lingelbach: We believe that <unk> will.
Thomas Lingelbach: We believe that, I would say, it will potentially grow as compared to last year. And this will include, you know, also a sort of catch-up, as you call it. You know, of course, lost travelers are lost travelers, but we expect significant growth as compared to last year in terms of total product sales for Xero this year. As such, there will certainly be a very significant uptake to be seen for Xero later in quarters two, three, and four.
Thomas Lingelbach: Aerospace was essentially grow as compared to last year.
Thomas Lingelbach: And this will include.
Thomas Lingelbach: Also as sort of catch up as you called it.
Thomas Lingelbach: Of course last travelers are not travelers, but but we expect a significant growth as compared to last year in terms of for the quarter fifth zero. This year as such there will be.
Thomas Lingelbach: Certainly.
Thomas Lingelbach: A very significant uptake to be seen for example in nature.
Thomas Lingelbach: In quarter, two three and four.
Thomas Lingelbach: Yes, we manage military engagement for exchange, and we are in very active discussions with the military, and we hope that we will be able to get ICT in a way onto the radar screen and for the Department of Defense.
Speaker Change: Yes, we manage military engagement for <unk>.
Thomas Lingelbach: And and we are in very active discussions with military.
Thomas Lingelbach: And.
Thomas Lingelbach: We hope that we will be able to get X shake in a way.
Thomas Lingelbach: And onto the radar screen.
Thomas Lingelbach: And.
Thomas Lingelbach: For the department of Defense.
Thomas Lingelbach: There's a significant need for it. You know, we have also seen some small outbreaks that, you know, could be of relevance for DOD. And as such, we are positive about DOD's engagement in this regard.
Thomas Lingelbach: There is significant need for it.
Thomas Lingelbach: We have also seen.
Thomas Lingelbach: Some small outbreaks.
Thomas Lingelbach: That could be off rather than for Vod.
Thomas Lingelbach: And as such we.
Thomas Lingelbach: We are positive about dod's.
Thomas Lingelbach: Engagement is with regards.
Thomas Lingelbach: And DTC is, yeah, we, it may well be, but only with defined media, and we are currently working on it. I hope this helps clarify the work. No, that's very helpful.
Thomas Lingelbach: And D.
Thomas Lingelbach: DTC.
Thomas Lingelbach: Yes, we it.
Thomas Lingelbach: It may well be.
Thomas Lingelbach: But.
Thomas Lingelbach: But only with defined media.
Thomas Lingelbach: And we are currently working on that.
Thomas Lingelbach: I hope this helps clarify your question.
Speaker Change: No that's very helpful. Thank you.
Rajan Sharma: Thank you. You're more than welcome, Roger. Thank you. We will now take our next question. Please stand by.
Speaker Change: More than welcome Roger.
Speaker Change: Thank you.
Speaker Change: We will now take our next question please standby.
Boran Wang: The next question comes from the line of Evan Wang from Guggenheim Securities. Please go ahead, your line is now open, stocking dynamics. So, uh, hey, any color there, you know with Lyme, you're expected to report some of the two-year antibody persistence. What are you looking for there?
Rajan Sharma: The next question comes from the line of Evan Wang from Guggenheim Securities. Please go ahead. Your line is now open.
Boran Wang: Thanks for taking the question.
Boran Wang: For me I guess.
Boran Wang: Sure.
Boran Wang: He brought any kind of details in terms of some of the launch.
Boran Wang: Stocking dynamics that we're seeing I know you said wholesaler.
Boran Wang: Wholesale indicators are kind of 100% stock now so.
Boran Wang: Any color there would be helpful. And then second why no. Thank you.
Boran Wang: Question number two your antibody participants.
Boran Wang: What are you looking for there.
Boran Wang: How important it is for your participant too I guess.
Boran Wang: Thinking about the market opportunity.
Boran Wang: So the line was not great.
Thomas Lingelbach: So, the line was not great, but I will try to focus. I'll start with the latter part of your question first. I think you were talking about antibody persistence for chikungunya, correct? Am I right?
Thomas Lingelbach: But I would try to focus I start with the latter part of your question correctly. I think you were talking about antibody persistence for chikungunya correct MRI.
Boran Wang: Hey, can you hear me better now? Yeah, so you were talking about Antibody Persistence for Chicken Gougnard, correct? No, for the LINE program that you're playing 3Q.
Speaker Change: Hey can you hear me better now.
Boran Wang: Yeah. So you were talking antibody persistent toward chikungunya correct.
Boran Wang: The wind program, you're right very clear.
Thomas Lingelbach: Okay, good. So, sorry for that. Yeah. So, basically, remember the antibody persistence for the LIME program. We have a cohort from the original Phase II study. This cohort got the three doses of priming. It's a cohort from study 221 of Lyme disease. They got basically then the booster shot after one year.
Speaker Change: Okay. Good so sorry for that yeah. So basically remember the antibody persistence for the <unk> program, we have a cohort.
Thomas Lingelbach: From the original Phase two study this.
Thomas Lingelbach: This cohort.
Thomas Lingelbach: The three doses priming.
Thomas Lingelbach: As the court from the 32 to one of Lyme disease State. They got basically then.
Thomas Lingelbach: The.
Thomas Lingelbach: A booster shot after one year.
Thomas Lingelbach: This booster shot resulted in a very, very good analytic response. Basically, the immune response was by a factor of three to four higher than the one after priming. Now we are monitoring this cohort, you know, one year later. So basically, we're going to see how it compares against the immune response we got after priming originally. And this may result in a situation where we say, well, you know, probably after two years, you don't need a booster.
Thomas Lingelbach: This poster chart resulted in and.
Thomas Lingelbach: A very very good.
Thomas Lingelbach: Animistic response.
Thomas Lingelbach: So basically the.
Thomas Lingelbach: Our immune response was by a factor of three to four higher than.
Thomas Lingelbach: One after priming.
Thomas Lingelbach: Now we are monitoring this this cohort.
Thomas Lingelbach: One year later, so basically we got to see.
Thomas Lingelbach: How does it compare again the immune response, we got after priming originally.
Thomas Lingelbach: And this may result in a situation, where we say well you know probably after two years, you don't need a booth tour.
Thomas Lingelbach: But this is something that we need to take a closer look at and need to see what we can actually interpret from the results to come. But certainly, a very interesting data package to come later this year. Yeah, when it comes to xChick, we cannot currently report on, you know, the number of doses or what we have really put in the channel. That would not be appropriate at this stage. But what we can say is that all of our key wholesalers and distributors do have xChick available. And this is the most important thing right now.
Thomas Lingelbach: But this is something that we need to.
Thomas Lingelbach: Take a closer look at and need to see what we actually.
Thomas Lingelbach: Can can interpret or out of the results to come but certainly very interesting data package to come later this year when it comes to <unk>.
Thomas Lingelbach: We cannot currently report on number of doses, what we have really put in the channel that would not be appropriate at this stage.
Thomas Lingelbach: But what we can say is that all of our key wholesalers and distributors do have it available for sale.
Thomas Lingelbach: And this is the most important thing right now.
Speaker Change: Thanks Randall.
Speaker Change: Thank you.
Samir Devani: We will now take our next question. Please stand by. The next question comes from the line of Samir Devani from RX Securities. Please go ahead; your line is now open. Hi guys, thanks for taking my questions. In terms of Brazil, licensure there this year. Will that mean that you will supply product from here, or will you wait for the tech transfer? Maybe just another question on COGS, understand. I think he's books.
Speaker Change: We will now take our next question.
Samir Devani: Please standby.
Thomas Lingelbach: Samir, so I take the first one on, yes, it means exactly what you just said, namely, we would supply a product manufactured in Europe to the private market, but possibly also by way of public business, and we will certainly also use our product in a private vaccination campaign that will address some of the Phase 4 requirements. With that, I would like to hand over to Peter. Peter, do you want to take the Cox question, please?
Samir Devani: The next question comes from the line of Sameer <unk> from our executed. Please. Please go ahead. Your line is now open.
Thomas Lingelbach: Okay.
Peter Buhler: Hi, guys. Thanks for taking my questions.
Peter Buhler: Got a couple of I think.
Peter Buhler: Just in terms of Brazil, if he could get licensure. There. This this year can you just explain what does that mean that you will supply product from here or would you wait for the tech transfer to complete before product is supplied I guess that's question one.
Thomas Lingelbach: And then maybe just another question on Cogs for Peter.
Peter Buhler: I'm just trying to understand I think he books things like $2 4 million Cogs for services.
Peter Buhler: This is is there any 600 retain revenue and also idle capacity cost of 1 million can you just explain why that hasn't been allocated to one of the products. Thanks very much.
Thomas Lingelbach: EMEA.
Peter Buhler: Take the first one on yes, it means exactly what gives effect, namely we supply products.
Peter Buhler: And in fact shirt in Europe.
Speaker Change: Our two properties.
Peter Buhler: Most likely into the private market.
Peter Buhler: But possibly also by way of.
Peter Buhler: Public business and we will certainly also use our product in a pilot vaccination campaign.
Peter Buhler: That will address.
Peter Buhler: And also the.
Peter Buhler: What the pace some of the phase four requirements.
Thomas Lingelbach: With that I would like to handover to Peter Peter do you want to take that question. Please yes. Thanks Thomas.
Thomas Lingelbach: Yeah, thanks, Thomas, and hey, Samir. So on the Cox of services, the cost of services, this is basically our contribution, you know, our people that contribute to the Lyme trial. We report this as the cost of services.
Peter Buhler: So on the on the Cox of services cost of services. So this is basically.
Peter Buhler: Our contribution our people contribute to the <unk> trial, we reported that the cost of services will receive a contribution of course from Pfizer, which we don't recognize revenues right now we put it on the balance sheet and we expect to recognize this revenue later down the road.
Peter Buhler: We receive a contribution, of course, from Pfizer, which we don't recognize as revenues right now. We put it on the balance sheet, and we expect to recognize this revenue later down the road. On the idle capacity, that's basically the amount related to the Almeda site.
Peter Buhler: On the idle capacity that's basically it.
Peter Buhler: Rates to the Alameda site.
Peter Buhler: As we said earlier on, we're in the process of packing and transferring the products over there, but we don't produce them yet, which is why we don't allocate them to the balance sheet. [inaudible] And then also on the, oh, yeah, okay, and then in terms of Brazil. How does that work in relation to the Institute Butte at Hand deal? Will they still be just receiving a waltz on sales to Brazil, or would that be separate? they are manufacturing the products themselves. So in Brazil, I mean, if it's products that are sold by goods on time, we would get a royalty. Irrespective of who it was, in fact.
Peter Buhler: As we said earlier answer.
Peter Buhler: In the process of tech transferring products over there, but we don't produce yet which is why we don't allocated on the product.
Peter Buhler: Okay. Let me just then to follow up on that does that mean.
Peter Buhler: There is idle capacity costs.
Peter Buhler: We should expect them to recur over the coming quarters.
Peter Buhler: And also on the yes.
Peter Buhler: Okay, and then on in terms of Brazil.
Peter Buhler: How does that work in relation to the <unk> deal would you still be just we're seeing a royalty on sales to Brazil was that it would that be separate until they are manufacturing product themselves.
Peter Buhler: Peter.
Peter Buhler: So on Brazil, I mean, if it's if it's <unk>.
Peter Buhler: Products that are sold by which time, we would get a royalty.
Peter Buhler: Irrespective of who wins.
Samir Devani: So we would, we would, okay, so he, yeah. Right, okay, understood. Okay, thanks very much. You're welcome.
Peter Buhler: So we would say yes.
Samir Devani: Right, Okay understood. Okay. Thanks very much.
Speaker Change: Youre welcome.
Speaker Change: Thank you.
Speaker Change: We will now take our next question.
Samir Devani: Thanks. We will now take our next question. Please stand by. The next question comes from the line of Ed White from HC Wainwright. Please go ahead, your line is now open. Hi, thanks for taking my question. Just a follow-up to a prior question on COGS.
Edward White: Please standby.
Samir Devani: Okay.
Samir Devani: The next question comes from the line of Ed White from H C. Wainwright. Please go ahead. Your line is now open.
Edward White: Hi, Thanks for taking my question.
Edward White: A follow up to a prior question on Cogs.
Edward White: There are so many moving parts here, as you mentioned the new facility in Scotland and the lowering of third-party sales. You had said in the presentation that in the midterm outlook, you expect gross margin improvement. Can you discuss what you expect to see in 2024? Yeah, thanks for the question. And I agree with you, there are a lot of moving parts.
Edward White: There are so many moving parts here.
Edward White: As you mentioned, the new facility in Scotland, and the lowering of the third party.
Edward White: Sales.
Speaker Change: You had said in the presentation that in the midterm outlook you expect gross margin improvement can you discuss what you expect to see in 2024.
Edward White: Yeah.
Speaker Change: Yeah, Hey, guys.
Speaker Change: Yes, thanks for the question.
Speaker Change: And I agree with you there are a lot of moving parts.
Peter Buhler: We, as we said, expect costs to improve in the midterm. We actually do think we will see an improvement in 2024, but we have not given you a concrete number on the cost of goods or specific expense items, which is why, also, of course, I cannot give you a concrete number today, but we do expect to see an improvement here clearly. Okay. Thanks, Peter. Thanks. We will now take our next call. Please stand by. The next question comes from the line of Suzanne Van Vorthuizen from Van Lanschot Kempen. Please go ahead; your line is now open. Hi there, this is Anne van Kempen.
Speaker Change: We as we said, we expect cost to improve in the in the midterm.
Speaker Change: We actually do think we will see an improvement in 2024, but we have no guidance on cost of goods or specific expense items, which is why I also of course I cannot give you concrete number today, but we do expect to see improved material clearly.
Peter Buhler: Okay.
Peter Buhler: Mhm.
Speaker Change: Okay. Thanks Peter.
Speaker Change: Thank you.
Speaker Change: We will now take our next question.
Speaker Change: Please standby.
Speaker Change: The next question comes from the line of Suzanne Vanvorst, Susan from Van Landshark Kempen. Please go ahead. Your line is now open.
Suzanne Van Vorthuizen: Thanks for taking my questions. I have one on your midterm outlook, which was reiterated. Can you clarify whether the cash flow positivity from 2025 is purely on Ixiaro, Ducrol, and Ixchic and maybe some third-party sales? Or should we also consider other potential income streams in there, such as potential milestones from Pfizer online? And my second question is about the phase one Zika program. Can you remind us what the difference between the first and second generation candidates was? And help us with the sample.
Speaker Change: Hi, there and is this event with kimpton, thanks for taking my questions.
Suzanne Van Vorthuizen: I have one on <unk>.
Suzanne Van Vorthuizen: Your midterm outlook, which was reiterated.
Suzanne Van Vorthuizen: Can you clarify whether the cash flow positivity from 2025.
Suzanne Van Vorthuizen: That's purely on <unk> grown it kick and maybe some third party sales or should we also consider other potential income streams in there such as potential milestones from Pfizer online.
Suzanne Van Vorthuizen: And my second question is what phase one Zika program can you remind us what the difference between the first and second generation candidate once and.
Thomas Lingelbach: Would you like to see, in phase one data, immunogenicity wise, whether this is a vaccine where you would also expect over 90 percent zero conversion, or whether the target is lower? Any considerations? Thank you. Hi Susanna, Tom. I suggest that I let Peter answer the mature Outlook financial questions, but I start with Sika first. So, what is the difference between the first and second generation?
Speaker Change: Help us understand what would you like to see in the phase one data Immunogenicity wise.
Speaker Change: But this is a vaccines, where you would also expect over 90% conversion or whether the target is lower.
Speaker Change: Any considerations. Thank you.
Thomas Lingelbach: Hi, This is Tom I would suggest that.
Speaker Change: I'll, let Peter.
Speaker Change: Third the midterm outlook financial questions, but.
Speaker Change: But I'll start with the CCAR first.
Speaker Change: So what is the difference between first and second generation.
Thomas Lingelbach: Our first generation was basically the SIGGRAPH candidate that we just put on the Xero process, which is a small-scale, single-activated cell culture-based inactivated whole virus process. We then changed this process to allow for large volume production of COVID. So, still cell culture-based, but large-scale production at a low cost of goods or lower cost of goods. And we introduced double attenuation, which means not only the antigen adsorbed to aluminum hydroxide but also combined with an additional T-cell attenuation.
Speaker Change: Our first generation <unk>.
Thomas Lingelbach: <unk> basically to pick a candidate that we just put on the <unk>.
Thomas Lingelbach: It is a small scale singular event that.
Thomas Lingelbach: <unk>.
Thomas Lingelbach: Sal catheter based inactivated hold various process.
Thomas Lingelbach: We then changed this process tool allow for large volume production.
Thomas Lingelbach: For Covid.
Thomas Lingelbach: So I would still sell cancer based but large scale production at low cost of goods or lower cost of goods and we introduced double atramentaceous sell which means not only.
Thomas Lingelbach: <unk> talked to aluminum hypercard, but also combined with an additional <unk> <unk>.
Thomas Lingelbach: This has given us in COVID superiority against even vectors, and we believe that longevity of the immune response, which has shown to be a challenge for ticker vaccines in the past, will be addressed. And secondly, we will hopefully reach an immunological plateau which we did not achieve or not see in the first phase one study pre-COVID. And so basically, that's what we want to do with the Zika candidate. Yes, I mean zero conversion definitely above 90% would be an important feature for us. With that, I hand over to Peter to answer your question on the cash flow positivity. Yeah, hey Susanne.
Thomas Lingelbach: This has given us and Colgate <unk>.
Peter Buhler: <unk> against EBIT vectors.
Peter Buhler: And we believe that the longevity of the immune response, which has shown to be.
Peter Buhler: A challenge for Zika vaccines in the past.
Peter Buhler: Will be addressed and secondly, we will hopefully reach immunological cut tool, which we did not achieve or not see in the first phase one study pre COVID-19.
Thomas Lingelbach: And.
Peter Buhler: So basically that's what we want tool to do with the ticker candidates, yes, I mean seroconversion.
Peter Buhler: Definitely above 90% would be for us.
Peter Buhler: Important in.
Thomas Lingelbach: An important feature with that I hand over to Peter to answer your question on the on the cash flow positivity.
Peter Buhler: So yeah, regarding cash flow positivity from 2025, it's really about our commercial business, including xChix. So what we're saying is basically, our full commercial business will be cash flow positive from 2025. And that excludes Lyme. We do not expect any revenue flows in 2025 from Lyme.
Peter Buhler: So regarding the cash flow positivity from 2025, it's really in our commercial business, including <unk>. So what we're saying is basically a full.
Peter Buhler: Commercial business will will be cash flow positive from 2025 and that excludes line. We do not expect any revenue flows in 2025 for like the next.
Peter Buhler: Revenue flows we expect from Pfizer was actually upon first commercial sales offline.
Peter Buhler: Which would be early 2027.
Peter Buhler: The next revenue flows we expect from Pfizer are actually upon the first commercial sales of Lyme, which would be early 2020. Perfect. Thank you very much. You will now take our next question. Please stand by. The next question comes from the line of Maurice Raycroft from Jefferies. Please go ahead, your line is now open. Hi, can you hear me now?
Speaker Change: Perfect. Thank you very much.
Maurice Raycroft: Thank you.
Maurice Raycroft: We will now take our next question please.
Maurice Raycroft: Please standby.
Maurice Raycroft: The next question comes from the line of Maury Raycroft from Jefferies. Please go ahead. Your line is now open.
Maurice Raycroft: Yeah, I think you can hear me already. Okay, thanks for taking my question and apologies for the technical difficulty earlier. I'll just ask two quick ones for Ixtchik.
Maurice Raycroft: Hi can you hear me now not.
Maurice Raycroft: <unk> okay.
Maurice Raycroft: Hey, Thanks for taking my question and I apologize for the technical difficulties earlier.
Maurice Raycroft: Just ask two quick ones.
Maurice Raycroft: For extra.
Maurice Raycroft: <unk> for customers already actively protecting travelers can you talk about how many touch points you have in the United States and how many of those sites will there be in the EU for X shake once you're approved there and can you talk about EU launch plans and rollout.
Maurice Raycroft: So basically.
Thomas Lingelbach: For customers already actively protecting travelers, can you talk about how many touch points you have in the United States and how many of those sites there will be in the EU for Ixtchik once you're approved there? And can you talk about the EU launch plans and rollout? So basically, um... I will see whether we can find out how many touch points we really have because I don't know it off the top of my head.
Thomas Lingelbach: I will see whether we can find out how many touch points from really half of because I don't know it out of the top of my head.
Thomas Lingelbach: But for the EU it is very clear that we expect the product licensure ideally now in the summer with positive CHMP opinion then followed by EC adoption and then of course we have the whole OMCL activities that will need to take place which is why we originally, as you may recall, Marie guided that our anticipated launch date would be January 1st for the key and you have in Europe the top five you know travel markets with for chikungunya a particular situation with regards to France given that the, The French history with La Reunion means that the disease awareness around chikungunya in Europe is probably highest in France. And that's why we may, you know, basically consider prioritizing from whether we will be able to accelerate launch ahead of, you know, January 1st, 2025 in Europe. We have to see.
Thomas Lingelbach: So but for the EU. It is very clear that we expect.
Thomas Lingelbach: The product licensure ideally now in the summer.
Thomas Lingelbach: With a positive <unk> opinion, then following followed by EC adoption.
Thomas Lingelbach: And then of course, we have the whole oil Seattle activities that will lead to take place, which is why we originally as you may recall, our marine guided that our anticipated launch date would be January one.
Thomas Lingelbach: Or the key and do you have in Europe, the top higher travel market with pork chicken <unk> particular situation with regard to <unk> <unk>.
Thomas Lingelbach: Given that.
Thomas Lingelbach: The <unk>.
Thomas Lingelbach: Yes.
Thomas Lingelbach: The French history with Ravi on your.
Thomas Lingelbach: It means that the.
Thomas Lingelbach: The disease awareness around chicken Goodyear in Europe is the highest in France.
Thomas Lingelbach: And Thats why we may.
Thomas Lingelbach: Basically.
Thomas Lingelbach: Thinner prioritizing front, whether we will be able to act.
Thomas Lingelbach: The accelerated launch.
Thomas Lingelbach: <unk> of <unk>.
Thomas Lingelbach: <unk> 2025 in Europe, we have to see.
Thomas Lingelbach: Of course if.
Thomas Lingelbach: Of course, if the licensing timelines do support it and regulatory activities do support it, we will do it. We are ready. We have a team that is very excited to get this vaccine to people as soon as possible. And that's all I can say at this point. And I will provide you with the number of contact points in the U.S. as soon as I get it from the U.S. team.
Thomas Lingelbach: China to support it.
Thomas Lingelbach: And regulatory activities to support it we will do it we are ready.
Thomas Lingelbach: We have a team that is very excited to get this vaccine to people as soon as possible and it. That's all I can say at this point and I will provide you with the number of touch points in the U S. As soon as I get it from the from the U S team the commercial team.
Maurice Raycroft: Yeah, okay. Okay, that's helpful. Thank you. And then a quick follow-up on the U.S. DOD potential for chikungunya. I'm just wondering, have they committed to running a formal request for a proposal there? Or is that part of the ongoing conversation? And when could we learn more about just the conversations with the U.S. DOD? It would definitely follow a different process, Maurice
Thomas Lingelbach: Okay.
Maurice Raycroft: Okay. That's helpful. Thank you and then.
Maurice Raycroft: One quick follow up on the U S Dod potential for chikungunya.
Maurice Raycroft: I'm just wondering have they committed to running a formal request for proposal there or is that part of the ongoing conversation.
Maurice Raycroft: When could we learn more about just the conversations with the USDA for <unk>.
Maurice Raycroft: Definitely follow a different process Murray.
Thomas Lingelbach: And so basically, we do not expect that they will launch, let's say, a formal RFP, but the discussions are still ongoing, and I just got from our team that there are more than 200 basically touch points at this stage in what we call the Tier 1 and Tier 2 accounts. But we will provide you with more details around that as soon as we get it, yeah? Okay, that sounds good. Thank you for taking my question. You are more than welcome.
Maurice Raycroft: And and so basically we.
Thomas Lingelbach: We do not expect.
Thomas Lingelbach: Cool.
Thomas Lingelbach: That they will launch.
Thomas Lingelbach: Okay.
Thomas Lingelbach: Let's say a formal RFP.
Thomas Lingelbach: But the discussions are still ongoing and I just got the.
Thomas Lingelbach: Just got from our team that there are more than two.
Thomas Lingelbach: 200 <unk>.
Thomas Lingelbach: Basically touch parts right.
Thomas Lingelbach: This stage.
Thomas Lingelbach: In what we call the tier one and tier two accounts.
Thomas Lingelbach: And.
Thomas Lingelbach: But we will provide you with more details around that as soon as we get it here.
Speaker Change: Okay that sounds good. Thank you for taking my questions.
Thomas Lingelbach: Welcome.
Speaker Change: Thank you.
Thomas Lingelbach: Thank you. This concludes today's question and answer session. I would now like to hand over to Thomas Lingelbach for his closing remarks. Thank you so much. Yeah, thanks a lot for your active participation today. Thanks a lot for your great questions. Thanks for following us, for your continuous trust and confidence in our work. We are excited about where we are. As I said, a solid start of the year and clear prospects for this year and a clear midterm exciting outlook.
Thomas Lingelbach: This concludes today's question and answer session I would now like to hand over to Thomas Lingelbach for closing remarks.
Thomas Lingelbach: Thank you so much yes, thanks, a lot for.
Thomas Lingelbach: Were you active participation today, thanks, a lot for your great questions and thanks for following us.
Thomas Lingelbach: For your continued trust.
Thomas Lingelbach: <unk>.
Thomas Lingelbach: We are excited about.
Thomas Lingelbach: Where we are as I said solid start of the year.
Thomas Lingelbach: Clear prospect for this year and clear.
Thomas Lingelbach: With that, I wish you all a wonderful rest of the day and talk soon. This concludes today's conference call. You may now disconnect. Speakers, please stand by. Thomas Scholes, Samir Devani, Boran Wang, Peter Buhler, Maurice Raycroft, Simon Scholes, Thomas Lingelbach, James Stamos, Valneva, [inaudible] ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ??
Thomas Lingelbach: Clear midterm exciting.
Thomas Lingelbach: Outlook with that I wish you all a wonderful rest of the day and talk soon.
Thomas Lingelbach: This concludes today's conference call you may now disconnect speakers. Please standby.
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