Q3 2024 AbCellera Biologics Inc Earnings & Bussiness Update Call
Good afternoon and welcome to Avcelerus Q3 2024 Business Update Conference Call. My name is Tamia and I will facilitate the audio portion of today's interactive broadcast.
If you would like to ask a question, please press star 1 on your telephone keypad. If you require assistance at any time during the call, please press star 0 to access the help hotline. At this time, I would now like to turn the call over to Trends dimer, I'm a Laura Sheef Legal and Compliance Officer. You may proceed.
Speaker Change: Thank you.
Speaker Change: Good morning, good afternoon and good evening to everyone listening around the world. Thank you for joining us for a celebrus, 2024, third quarter earnings call. I'm Trin Stimart, a celebrist chief legal and compliance officer.
Speaker Change: Joining me on today's call, our Dr. Paul Hansen, of Celarest President and CEO, and Andrew Booth, of Celarest Chief Financial Officer.
Speaker Change: During this call, we anticipate making projections in forward-looking statements based on our current expectations and pursuant to the State Harbor Prevision of the private securities litigation reform act of 1995.
Our actual results could differ materially due to several factors as set forth in our latest form 10K and subsequent forms 10K, filed with the Security's Next Change Commission.
Speaker Change: The seller does not undertake any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Our presentation today includes being our earnings press release issued earlier today, and our SEC filing are available on our investor relations website.
The information we provide about our pipeline is for the benefit of the investment community and is not intended to be promotional.
As we transition to our prepared remarks, please note that all dollars are referred to during the call are in US dollars. After our prepared remarks, we will open the lines for questions and answers. Now I'll turn the call over to Carl Hansen.
Carl Hansen: Thanks, Trent, and thank you everyone for joining us today.
Speaker Change: Given that there were a few new disclosures this quarter, I'll use today's repair remarks to give a brief update on Appsellers position and our progress.
Speaker Change: It was a year ago that we committed to building an internal pipeline and transitioning from a platform company to a clinical stage biotech
Over the past 12 months, we reorganized our teams and reallocated our investments. Focusing on advancing our internal programs and completing the build of our platform capabilities.
The first two programs in our pipeline, ABCL-65 and ABCL-575, are on track for CTA filings in Q2 of next year.
Speaker Change: Behind them, we are prosecuting a broad portfolio of Discovery Stage programs.
This includes wholly owned programs against multi-pass Trans-Memory Improving Targets, T-Selling Yagers and a smaller number of 50-50 co-development programs on novel targets and a greater antibody conjugate.
Speaker Change: We are pleased with the breadth and the quality of this portfolio, and we are confident that it will mature into a pipeline of differentiated clinical assets.
At the same time, we are now in the final stages of building our capabilities and facilities. Notably, this quarter, we completed the move-in to our new headquarters in Vancouver, finalizing a project that began back in 2020.
Speaker Change: We also continue to make steady progress on our GP Manufacturing Society, which remains on track and will come online in 2025.
Speaker Change: Additionally, over the past year we have built our translational and development teams and are well prepared for our first two clinical trials starting next year.
We anticipate further investments in this team as our pipeline continues to advance and to grow.
Speaker Change: Turning to Partoring, as mentioned on the last call, this quarter we expanded our partnership with Eli Lilly.
Speaker Change: Consistent with our focus on pipeline development, our partnering priority moving forward is to build on co-development collaborations where we have co-ownership of resulting assets.
Speaker Change: In addition, we will continue to look to engage with existing and new partners on our TCE platform. And in relation to this, we will be presenting updated data on our TCE platform later this week at TCE.
Speaker Change: I'd like to end by thanking our leadership and teams for their work in successfully navigating what has been a year full of change and challenge.
Speaker Change: We are clearly on track in our transition to a clinical stage company. Over the coming years, with focus and execution, I am confident that this path will deliver maximum value to patients and to shareholders.
And with that, I will hand it over to Andrew to discuss our financials. Andrew?
Andrew Booth: Thanks Carl.
Andrew Booth: Absellor continues to be in a strong liquidity position with approximately $670 million in cash in equivalents and with roughly $210 million in available government funding to execute on our strategy.
Andrew Booth: In the third quarter of 2024, we continue to execute on our plans to advance both partner initiated and internal programs and to complete our CMC and GMP investments.
Speaker Change: Looking at our key business metrics in the third quarter we started work on two partner initiated programs which takes us to a cumulative total of 95 programs with downstream participation.
Speaker Change: During the quarter of Dera announced that ABD-147 received Orphan drug designation from the FDA.
Speaker Change: As we have stated previously, we view our growing list of progressing molecules in the clinic, as specific examples of our near and midterm potential revenue from downstream milestone fees and royalty payments in a longer term.
Speaker Change: Turning to revenue and expenses, revenue in the quarter was almost $7 million, mostly driven by research fees relating to work on partner programs. This compares to revenue of also approximately $7 million in Q3 of last year.
Speaker Change: We expect research for you revenue to trend lower as we increasingly focus on internal and co-development programs.
Speaker Change: Our R&D research and development expenses for the quarter, we're approximately $41 million, $3 million more than last year. This expense is driven by ongoing program execution, continuing platform development, and our increasing investment in our internal program pipeline.
Speaker Change: and Sales and Marketing expenses for Q3 were about $3 million, a small reduction relative to last year.
Speaker Change: and in general in administration, expenses were approximately $19 million, compared to roughly $14 million in Q3 of 2023. The increase is driven primarily by expenses related to the defense of our intellectual property.
Speaker Change: Looking at earnings, we are reporting a net loss of roughly $51 million for the quarter. Compared to a loss of nearly $29 million in the same quarter of last year.
Speaker Change: This loss includes a non-cash impairment charge for in-process RAD of approximately $32 million. This impairment resulted from our prioritization of internal programs and the decision to discontinue the development of next-generation transgenic mice.
Speaker Change: In terms of earnings per share, this quarter's result works out to a loss of 17 cents per share on a basic and diluted basis.
Speaker Change: Looking at cash flows in the first nine months of 2024, we have used approximately 118 million in cash and equivalents. This includes funding all operations as well as the investments completing our infrastructure build of our headquarters and CMCGMP manufacturing capabilities.
Speaker Change: Operating activities for the first nine months of 2024 used roughly $100 million.
Speaker Change: As a part of our Treasury strategy, we have nearly $520 million invested in short-term mark rural securities.
Speaker Change: Our investment activities for the nine months included in approximately $124 million net decrease in these holdings.
Speaker Change: All other investment activities amounted to a net $38 million, including approximately $63 million invested in property plants and equipment driven by our ongoing work to establish CMC and GMP manufacturing capabilities.
Speaker Change: The Investments in PP&E will partially offset by government contributions and the cash proceeds from the sale of our stake in InvitEx in this quarter.
Speaker Change: We expect our investments in PP&E to continue it approximately this rate through the fourth quarter of 2024 and be substantially complete in early 2025.
Speaker Change: All together, we finished the quarter with $670 million of total cash, cash equivalents and marketable securities.
Speaker Change: As a reminder, we have received commitments for funding of our GMP facility and for the advancement of our internal pipeline from the Government of Canada's Strategic Innovation Fund and the Government of British Columbia. This available capital does not show up on our balance sheet.
Speaker Change: With approximately $670 million in cash and equivalents and the unused portion of our secure government funding, we have approximately $880 million in total available liquidity to execute on our strategy.
Speaker Change: With respect to our overall operating expenditures, our capital needs are very manageable. We continue to believe that we have sufficient liquidity to fund well beyond the next three years of pipeline and platform investments.
Speaker Change: and with that we'll be happy to take your questions. I'll turn it back to the operator.
Speaker Change: Thank you.
Speaker Change: We will now begin the Q&A session. If you would like to ask a question, please press Starfall up by one on your telephone keypad. If for any reason at all, you would like to remove that question, please press Starfall up by two. Again, to ask a question, please press Star 1. As a reminder, if you are using a speaker phone, please remember to pick up your hands that before asking your question.
Speaker Change: The first question comes from Allison Bratzel with Piper Sandler. He may proceed.
Speaker Change: The End
Speaker Change: The End
Speaker Change: Alison, your line is open, please, and your line is... Can you hear me?
Allison Bratzel: Hey, sorry about that. I had a question. Okay, great, sorry. Maybe just a question from me on Oxford and the competitive landscape there. You know, I just consider some recent competitive updates.
Speaker Change: Lake from Rooka Kindle-Mab, which I think kind of underwhelmed investors. I'm just curious, could you update us or share your thinking on advantages of an ox-40 Ligian target at therapy such as 575, you know, does that data change your view of the landscape?
Speaker Change: and did you overall view of the space in a topic term versus other, you know, in slam indications. I just be curious to get your thoughts on that as early as the 575.
Carl Hansen: Carl here. So first yes we did see the update on Rock Hill and Mab and I think that does.
Carl Hansen: You know, puts some additional data on the table to address this question that we've gotten a lot about the difference between Oxford or Oregon and Oxford. You know, before going there, I would emphasize that...
Speaker Change: Rock is also an antibody with a different mechanism of action than what we have in 575. So Rock is engineered to be a depleting antibody, which means that it's a blate or kills the cells that express oxforty. Whereas what we have is an effector null antibody that is non depleting.
Speaker Change: of the target cells, which are, you know, antigen presenting self typically.
Speaker Change: So I've had this question a lot. My scientific response has been for some time that this pathway is critical to the expansion and survival of both B-cells and T-cells.
Speaker Change: and that you should be able to get the effect if you block either ox 40 or ox 40 L.
Speaker Change: So prior to that data, I would have said it's unclear that one has a definitive advantage over the other. What we did see with the AMGN data was significantly less response or efficacy as compared to what was seen with the LLMAD. So from our perspective.
Speaker Change: that reinforces the view that...
Speaker Change: non-depleting Oxford-Ligon antibodies.
Speaker Change: are currently the lead horse in this race and, of course, Amla Tillamab is the first one that's out there. 575, as I've said before, is engineered to have a best-in-class profile, namely potency and developability and half-life that we believe will make it...
Speaker Change: If not, best in class, very comparable to the best in class. It remains to be seen what the early assets will look like.
Speaker Change: We are more bullish than ever on that pathway and its potential. So obviously atopic dermatitis is one of the big indications
Speaker Change: and the first one that we have stated that we're going to develop into. But beyond that, you know, it has potential in probably a dozen different indications, many of which are significant. And so we remain bullish on that program and we expect to update.
Speaker Change: We plan to present preclinical data at a conference sometime next year, close to the CTA filing on 575.
Speaker Change: Got it. Thank you.
Speaker Change: Thank you. The next question comes from Andrea Tan with Goldman Sachs. You may proceed.
Andrea Tan: Good afternoon. Thanks so much for taking our questions. Carl, could you just speak a little bit more about the extent of data we can expect at CIPSE for the T-cell engagers? Thanks so much.
Speaker Change: Yeah. Yeah.
Carl Hansen: Yeah, Andrea, so at CITSI, we're going to be presenting updated data from the platform technology, including highlighting a few programs where we have demonstrated we can use the combination of TAA antibodies and our unique CD3 panel to get desired results.
Speaker Change: profiles in both killing and cytokine response.
Speaker Change: And in addition to that, we will be presenting some of the work that we've done that sets up developing TCEs that are trispecifics.
Speaker Change: and that include binders that are designed to provide co-activation or co-stimulation to get better sustained T-cell killing that is, you know, work that's still in progress, but an area that we think is going to be important.
Speaker Change: certainly in some cancers for getting the efficacy that's needed.
Speaker Change: Okay, thank you.
Speaker Change: Thank you.
Speaker Change: The next question comes from Stephen Wiley with CIFL. He may proceed.
Stephen Wiley: Yeah, good afternoon. Thanks for taking the questions. I guess just with respect to the TCE platform, I know you've talked about how you've been engaged with various partners on this front, but
Stephen Wiley: Just kind of curious as you...
Stephen Wiley: in the absence of a broader platform-based partnership.
Carl Hansen: Thanks, Steve. Carl here. I'll take that one. So first, pulling back.
Carl Hansen: You know over the past 12 years we have been
Carl Hansen: working heavily to build the core capabilities to develop new best-in-class and first-in-class antibody therapies.
Carl Hansen: As mentioned in my prepared remarks, we are getting very close to the end of that investment. And so the foundation in being able to develop lead assets is in place. And we also have...
Carl Hansen: just under $900 million in available liquidity to fund the use of that platform to populate a clinical pipeline of what we hope will be and what we intend to be exciting assets for development.
Speaker Change: We have already, for some time, been working on preclinical programs. We have a broad portfolio and are just in the process of doing a portfolio review to prioritize the programs on which we are going to really lean in to populate that clinical pipeline.
Speaker Change: We're excited about what's there. I think there's a lot there that have potential to be the big winner that we need and to back it up with other ones. Right now,
Speaker Change: We have an anticipated pace of perhaps as many as two or three new development candidates per year starting next year.
Speaker Change: And we have liquidity to move those forward, you know, past three years, as Andrew mentioned. So, you know, once we get there, if we get this positive...
Speaker Change: data on a clinical asset, so compelling data that shows that we have
Speaker Change: a much better than average chance.
Speaker Change: of moving forward a molecule that can address a large unmet medical need. That opens a lot of possibilities for the business. And we would expect that if we take those into late-stage trials, we will need to raise equity financing or out-license another asset in order to fund that. But that's still down the road a bit.
Speaker Change: as the first two programs are only going to hit the clinic next year.
Speaker Change: And is there any time frame for the completion of this portfolio review?
Speaker Change: Thanks for watching. Bye.
Speaker Change: We'll have that wrapped up near the end of the year. December is the official date.
Speaker Change: you have funding in place from the Canadian government, but just curious as to whether or not clinical development, because of that funding, if
Speaker Change: If there's a requisite amount of that development work that needs to occur through Canadian trial sites, is there some minimal number of sites that need to be used?
Speaker Change: And if so, how do you think that impacts, if at all, your ability to move through phase one?
Andrew Booth: Hey Steve, it's Andrew here.
Stephen Wiley: Yeah, good question.
Speaker Change: The funding is oriented towards taking close to 15 or up to 17 molecules.
Speaker Change: into phase one. And as you note, we have this funding both from the government of Canada and the government of British Columbia.
Speaker Change: to do that very cost-effectively, but with those Phase I's being done in Canada.
Speaker Change: with the molecules that we're looking at, certainly 5.7.5 and 6.3.5. We don't anticipate having any issue or any, you know, headwind in completing those Phase I by running those Phase I's in Canada, and it is our intent to do that in Canada.
Speaker Change: If that turns out to be a requirement or an issue, let's say, for future trials, we can also expand trial sites into the United States, if necessary, or around the world. But in order to qualify for that funding, those Phase I's would need to be conducted in Canada.
Speaker Change: Okay, thanks for taking my questions. Thank you.
Speaker Change: The next question comes from Sue Rickert.
Speaker Change: Free Creeper, Devar Konda, Wiptruis. You may proceed.
Sue Rickert: Hey guys, thank you so much for taking my question. I have a question about ABCL 635. You know, you mentioned that it's being developed for metabolic and endocrine conditions.
Speaker Change: and also targets the GPCR or ion channel, which
Speaker Change: experience has been pretty challenging in the field. Can you provide any more color about this target? What sort of market it targets? I think you've said $2 billion in the past, but I just wanted to confirm that. And also, how competitive do you think this space is? Thank you.
Speaker Change: Hi, Kripa.
Speaker Change: Yeah, so we have disclosed previously, I think you've covered most of it, that this is a first-in-class antibody against a target for a condition in endocrine or metabolic disorders. And it is against a target that is a multi-pass transmembrane protein target, which has been one of the key areas of emphasis.
Speaker Change: We do believe that, you know, quite conservatively, there is an addressable market.
Speaker Change: in excess of $2 billion. Beyond that, we're not disclosing any details about that program. We do expect that when the CTA is approved, that we will then disclose both the target and the indication. But until then, we're keeping our cards close to our chest for strategic reasons.
Speaker Change: Thanks for watching!
Speaker Change: Got it. Thank you.
Speaker Change: Thank you. The next question comes from Evan Saigerman with BMO. You may proceed.
Speaker Change: Hi there, this is Connor on for Evan. Thanks for taking our question. With a few assets entering clinic in the near term, can you maybe just remind us how you're thinking about ramping spend into the new year and sort of allocation of resources for internal programs versus partnered programs given the recent shift? Thank you.
Speaker Change: Thank you. Bye.
Speaker Change: Yeah, hey Conor, Andrew here. I think into the new year, the phase one clinical trials for 6.35 and 5.75, we're not expecting that to be too significant an increase, certainly for 2025 and maybe even into 2026. The costs are still very manageable. I think our R&D expense...
Speaker Change: The run rate into 2025 will be very similar to as it is in this quarter and in Q4, which we expect to be pretty similar. You may remember at the beginning of the year, we had projected
Speaker Change: from Q4 of last year, and it has maintained that.
Speaker Change: The difference is going to be, in the first part of 2025, we expect our PP&E, so our CapEx expenses, to drop off significantly. They have still been quite significant through 2025, as we've been completing these big facility... or 2024, as we've been completing the big facilities builds.
Speaker Change: but that will be much different into 2025. But in terms of operating expenses, actually, I would expect 2025 to be very similar to 2024.
Speaker Change: Thank you.
Speaker Change: Thank you. The following comes from David Martin with Bloom Burton. You may proceed.
David Martin: Thank you for taking my question. Back to 575, you positioned it relative to the other OX40s and OX40 ligands. I'm wondering what about vis-a-vis the IL receptor antibodies?
Speaker Change: Would you expect that you'd compete for first line with them or for second line? And is there evidence that patients might respond to anti-Ox40 ligand if they failed IL-4 receptor antibodies?
Speaker Change: Great question. So first I'll say that in atopic dermatitis, I think it's important to specify the indication.
Speaker Change: There's really, to my mind, three mechanisms that are working and driving a lot of the interest. It's JAKS, obviously. There's the IL-13 antibodies, of which Dupixent is the big one. And then now OX40, OX40-Ligand coming up.
Speaker Change: You know, our view is that, you know, Dupixent is a great drug, but it is not.
Speaker Change: working for everyone, and there's a substantial fraction of patients that are non-responders or that discontinue. I think that's roughly 40%. I'd have to check that.
Speaker Change: It doesn't work for everyone and there's a large unmet medical need and obviously
Speaker Change: not a huge penetration yet in biologics for atopic dermatitis. So based on that...
Speaker Change: We would think that an aux 40 the aux 40 aux 40 lag end
Speaker Change: mechanism would probably enter, you know, second line behind Dupixent, and that over time we think it could have real potential to take first line as people start to recognize the advantage, particularly in the durability. So Dupixent being, you know, a two-week administration.
Speaker Change: and Sanofi.
Speaker Change: you know, testing right now, both one month and three months. And we have a molecule that we believe, you know, would get at least three months, perhaps even more. So we think it could be a competitive product in that space.
Speaker Change: And the other part of your question was, do you think that patients would respond differently to IL-13 versus OX40-OX40-LAG-END? Based on the biology, we think that that's a pretty good bet, but that remains to be shown in the clinic. I have heard anecdotally that the response rates
Speaker Change: for patients on rock with similar post-depixant
Speaker Change: And so that would, you know, lend some credence to the idea that this is a orthogonal therapy that would catch patients that fail on DUPI, but I don't think that is really, or that proposition has really been tested yet in the clinic.
Speaker Change: Got it. Thanks.
Speaker Change: Thank you. As a quick reminder, if you would like to ask a question, please press star one on your telephone keypad. The following comes from Brendan Smith with TD Securities. You may proceed.
Brendan Smith: All right, great. Thanks for taking the question. Maybe just one more on the TCE platform and maybe zooming out just a little bit. I mean, can you just remind us what an ideal partnership there would actually look like? I mean, I understand timing is still TBD, but kind of just looking at how the T-spots.
Speaker Change: excuse me, T cell space a little bit more broadly has evolved with oncology and autoimmunity example. Just trying to understand a bit more concretely how you're thinking about the direction for that vertical based on maybe what you're seeing in your data and kind of how that could evolve over the next year or so. Thanks.
Speaker Change: Thank you. Bye.
Speaker Change: Sure, that's an interesting question.
Speaker Change: First I'd say that it's typical that modalities sort of rise and fall and sort of ebb and wane in their attention and enthusiasm.
Speaker Change: We certainly see right now that there's a groundswell of excitement about TCEs. You're seeing that in conversations, you're seeing that in some of the clinical data, and also in some of the deals that have been announced recently. So our view is that, you know, we have
Speaker Change: put in place what we still believe are some of, if not the best, tools to create TCEs.
Speaker Change: What we really need to do right now is...
Speaker Change: address the science and figure out how to put those together to make drugs that are effective and safe for patients.
Speaker Change: That's going to be played out, you know.
Speaker Change: in part by the work we're doing internally, but also through collaborations with companies that have experience in that space and have.
Speaker Change: interest and commitment to start to do some of the clinical testing that's really going to be needed to make these therapies or to get these therapies the potential that I think a lot of people believe that they have. So in terms of, you know, a first partnership.
Speaker Change: Of course, we'd love to get something that that brings in you know, some cash up front, show some validation for the deal. But honestly, the most important thing, from my perspective, is that we work with teams that are deep in the science and working with us.
Speaker Change: to help to understand how best to use these tools to make new drugs that actually work for cancer patients.
Speaker Change: is not going to play out, you know, over a quarter or a year. This is a story that's going to play out over several years.
Speaker Change: but we are, you know, enthusiastic and I think excited about what we're seeing both internally and externally and believe that we're well positioned to participate in what's gonna be an important part of cancer therapy.
Speaker Change: Got it. Thanks very much.
Speaker Change: Thank you. The next question comes from Puneet Suda with Lyrinc Partners. You may proceed.
Puneet Suda: Hi, Carl. Andrew, thanks for taking my question. So maybe first one on, can you provide us an update on the GMP facility? And we wanted to see if
Puneet Suda: how the pipeline stacks today and into that. And then just a broader question on biosecure. Curious if you're seeing any inbounds as a result of the U.S. biosecure and just wondering if people are looking for capacity and whatnot.
Puneet Suda: Maybe that's the first question and then I'll follow up. Thank you.
Speaker Change: Hey Puneet, I'll take the first part of that and then hand it off to Carl. So, you'll remember about four years ago we started on this project.
Speaker Change: and with the plan to bring our first molecules through that facility in like late 2024, early 2025. So we are now believing it's going to be in late 2025 that we'll be bringing our first molecules through.
Puneet Suda: I'd say the project has been doing extremely well.
Puneet Suda: It's been a big lift over the last number of years to build the team and get the facility. As you'll remember, it's a Greenfield site that we used.
Puneet Suda: here not far from our headquarters and we're pretty excited to be bringing the first molecules and engineering runs through there in 2025 and then our next molecules NOT 575 and 635 would be manufactured in that facility and maybe I'll hand off to Carl just to talk a little bit more about that.
Puneet Suda: Sure.
Carl Hansen: So we have, as I mentioned in my prepared remarks, you know, a broad preclinical pipeline that we are moving forward. There's a substantial number of those, or several of those.
Carl Hansen: that are now getting pretty close to development candidate. And so over the next, you know...
Carl Hansen: a couple months or a few months.
Puneet Suda: Based on where the portfolio is and how the science is advancing, and of course, there's always risk until things are done We don't expect there'll be any problem in, you know, having valuable programs to work on through the first year the first year of this facility is going to be about demonstrating the capabilities and Making sure that we've got everything
Puneet Suda: you know, working.
Puneet Suda: exactly as it should. After that, I expect, you know, we're going to be well positioned to control that capability.
Puneet Suda: particularly given what is currently looking like headwinds geopolitically with the Biosecure Act. So, we believe that over time as this capability builds...
Puneet Suda: controlling your own manufacturing will be a major advantage that will provide you know speed and and honestly over time also reduce cost in moving molecules from concept through the clinic.
Speaker Change: Got it.
Speaker Change: You have a number of internal programs. You talked about pipeline moving forward, 575, the 635, 675 programs, the PCE program, your efforts ongoing on the manufacturing facility side. Can you maybe, Carl, can you prioritize...
Puneet Suda: for us what are sort of the near-term priorities and more sort of medium term as you go into 2025.
Puneet Suda: Thanks for listening. Bye.
Carl Hansen: Sure, so as I mentioned in response to Steve's question, the situation is that we have
Carl Hansen: in quite a unique way for a company at our stage, a fully built platform.
Carl Hansen: and we have the capital that we're going to turn over the next few years into a clinical pipeline. So the priorities in the company are really simple. It's make sure that we're making good capital allocation decisions in that portfolio so that we find our first big winner.
Carl Hansen: And then the second priority is to make sure we back that up with a differentiated portfolio of exciting assets.
Carl Hansen: and the third is to make sure that we continue to work on efficiency and keep our operations
Carl Hansen: focused on that priority so that we stay in control of our future. And as Andrew mentioned, we have, you know, a terrific liquidity position, we have lots of runway, and we intend to do what it takes to make sure that stays the case.
Speaker Change: Okay, all right. Thanks guys
Speaker Change: Thank you. I'm showing no further questions at this time. I will now turn it back over to Carl Hansen for closing remarks.
Carl Hansen: Thank you everyone for joining the call today. We appreciate your time and we look forward to providing more updates in the future. Enjoy your evening and we'll talk soon.
Speaker Change: Thank you.
Speaker Change: This concludes today's conference call. Thank you for your participation. You may now disconnect your line.