Q4 2024 Fennec Pharmaceuticals Inc Earnings Call
Good morning, ladies and gentlemen, and welcome to Sonic Pharmaceuticals fourth quarter and full year 'twenty 'twenty four earnings and corporate update conference call. At this time, all participants are in a listen only mode.
Operator: Good morning, ladies and gentlemen, and welcome to Fennec Pharmaceuticals' fourth quarter in full year 2024 earnings and corporate update conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session and instructions on how to participate will be given at that time. As a reminder, today's conference call is being recorded.
Speaker Change: Later, we will conduct a question and answer session and instructions on how to participate will be given at that time. As a reminder, today's conference call is being recorded now I would like to turn the conference over to chip to next Chief Financial Officer, Robert Andretti. Please.
Operator: Now, I would like to turn the conference over to Fennec's Chief Financial Officer, Robert Andrade. Please go ahead. Thank you, operator, and good morning, everyone.
Go ahead.
Robert Andretti: Thank you operator, and good morning, everyone.
Robert Andrade: We appreciate you joining us today for Fennec Pharmaceuticals fourth quarter and full year 2024 earnings conference call, during which we'll review our financial results as well as provide a general business update.
Robert Andretti: We appreciate you joining us today for Fenech Pharmaceuticals fourth quarter and full year 2024 earnings conference call during.
Robert Andretti: During which we will review our financial results as well as provide a general business update.
Robert Andrade: Joining me from Fennec this morning is our Chief Executive Officer and Board Member, Jeff Hackman. Before we begin, I would like to remind you that during this call, the company will be making forward-looking statements that are subject to risks and uncertainties that may cause actual results to differ from the results discussed in the forward-looking statements. Reference to these risks and uncertainties are made in today's press. and disclose in detail in the company's periodic and current event filings with the U.S. Securities and Exchange Commission.
Speaker Change: Joining me from furnished this morning is our Chief Executive Officer, and Board member Jeff Hackman.
Speaker Change: Before we begin I would like to remind you that during this call. The company will be making forward looking statements that are subject to risks and uncertainties that may cause actual results to differ from the results discussed in the forward looking statements.
Speaker Change: Reference to these risks and uncertainties are made in today's press release and disclosed in detail in the Companys periodic and current event filings.
Speaker Change: U S Securities and Exchange Commission.
Robert Andrade: In addition, any forward-looking statements made on this call represent our views only as of today and should not be relied upon as representing our views as of any subsequent specifically disclaim any obligation to update or revise any forward This conference call is being recorded for audio rebroadcast on Fennec's website, www.fennecpharma.com, where it will be available for the next 30 days.
Speaker Change: In addition, any forward looking statements made on this call represent our views only as of today and should not be relied upon as representing our views as of any subsequent date.
Speaker Change: We specifically disclaim any obligation to update or revise any forward looking statements.
Speaker Change: This conference call is being recorded for audio rebroadcast on Fedex website, Www Dot fenech pharma dot com.
Speaker Change: It will be available for the next 30 days.
Jeff Hackman: And now it is my pleasure to turn the call over to Jeff Hackman. Hey, thank you, Robert. And good morning, everybody. Today, I'm going to discuss our continued progress, including updates on our market expansion efforts, new academic endorsements. our new demographic interest, our educational investments, our operating efficiency, and our strong overall execution. all we believe will translate into significant shareholder value in 2025 and beyond.
Speaker Change: And now it is my pleasure to turn the call over to Jeff Hackman, Jeff.
Jeff Hackman: Hey, Thank you Robert and good morning, everybody.
Jeff Hackman: Today, I'm going to discuss our continued progress including updates on our market expansion efforts new academic endorsements.
Jeff Hackman: Our new demographic interest our educational investments, our operating efficiency and our strong overall execution.
All we believe will translate into significant shareholder value in 2025 and beyond.
Jeff Hackman: In 2024, Mark the beginning of a foundational transformation for fenech setting.
Jeff Hackman: In 2024, it marked the beginning of a foundational transformation for Fennec. setting the stage for our PEDMARC strategy. It's a strategy that we'll be utilizing throughout 2025 to realize our next phase of With our recent key management and commercial hires in Q3 and Q4, we strengthen our leadership. And we enhanced our expertise. We are well positioned now to drive execution and excellence in the field. And we are already seeing encouraging momentum in early 2025. As a reminder, our first imperative was to increase our awareness around the unmet need for continuing and continuing to drive oncologists to recognize the importance of preventing cisplatin-induced ototoxicity, or CIO.
Jeff Hackman: Setting the stage for our Petsmart strategy.
Jeff Hackman: It's a strategy that will be utilizing throughout 2025 to realize our next phase of growth.
Jeff Hackman: With our recent key management and commercial hires in Q3 and Q4, we strengthened our leadership team and we enhanced our expertise we are well positioned now to drive execution and excellence in the field.
Jeff Hackman: And we are already seeing encouraging momentum into early 2025.
Jeff Hackman: As a reminder, our first imperative was to increase our awareness around the unmet need for continuing to and continuing to drive oncologists to recognize the importance of preventing cisplatin induced OTO toxicity or CIO. Our second imperative is establishing an <unk>.
Jeff Hackman: Our second imperative is establishing and cementing PEDMARC as the standard of care for all CIO prevention. Next is PEDMARC's adoption. Beyond just the oncologist, gain confidence throughout the office, first and continued positive experiences with PEDMARC. Fourth is access. Having advocacy, payers, and providers be ensured that we have seamless access for our product.
Jeff Hackman: <unk> <unk> is the standard of care for all CIO prevention.
Jeff Hackman: Next is <unk> adoption beyond just the oncologist gain confidence throughout the office first and continued positive experiences with petsmart.
Jeff Hackman: Fourth is access having advocacy payers and providers be ensured that we have seamless access for our product.
Jeff Hackman: and last. And equally an important pillar is activation. Patients and caregivers are activated throughout the disease education process and realize the importance of PedMed. One of the most exciting developments that we continue to see is the interest and adoption that we are seeing in the adolescent and young adult segment. or AYA. As mentioned previously, This opportunity for AYA is significant. In the U.S., we estimate it's approximately 20,000 Cisplatin chemotherapy patients. that are treated each year with the primary tumor types of thyroid, breast, germ cell, and testicular. Additionally, in contrast to the pediatric market and based upon our market research, the USAYA oncology landscape is shaped by a combination of both academic and community centers across the nation.
Jeff Hackman: And last.
Jeff Hackman: And equally and important pillar is activation.
Jeff Hackman: Patients and caregivers are activated throughout the disease education process and realize the importance of pet Mark.
Jeff Hackman: One of the most exciting developments that we continue to see is the interest and adoption that we're seeing in the adolescent and young adult segment.
Jeff Hackman: Okay.
Jeff Hackman: As mentioned previously.
Jeff Hackman: This opportunity for Cigna.
Jeff Hackman: Significant in the U S. We estimate at approximately 20000 cisplatin chemotherapy patients.
That are treated each year.
With the primary tumor types of thyroid breast germ cell and testicular.
Additionally, in contrast to the pediatric market and based upon our market research the U S.
Jeff Hackman: Oncology landscape is shaped by a combination of both academic and community centers across the nation.
Jeff Hackman: The key academic institutions play a critical role for establishing the treatment framework with 72 NCI designated academic centers, that's the high volume of patients across the country.
Jeff Hackman: The key academic institutions play a critical role for establishing the treatment framework with 72 NCI-designated academic centers that see high volume of patients across the country. In contrast, the remaining patients are treated at nearly 4,000 community practices throughout the country. The market potential for AYA is greater than the size of the pediatric market. and has a favorable reimbursement profile through outpatient reimbursement efforts. We continue to be very encouraged by the response to PEDMARC from the AYA treating physician. We are finding that most of them are acutely aware of hearing loss caused by CISPLATIN, but many of them are still not aware of the availability and prevention that and treatment that PEDMARC offers.
Jeff Hackman: In crop in contrast, the remaining patients are treated at nearly 4000 community practices throughout the country.
Jeff Hackman: The market potential for AIA is greater than the size of the pediatric market.
Jeff Hackman: And has a favorable reimbursement profile throughout patient reimbursement efforts, we continue to be very encouraged by the response to <unk> from the gateway treating physicians.
Jeff Hackman: We are finding that most of them are acutely aware of hearing loss caused by cisplatin, but many of them are still not aware of the availability and prevention that.
Jeff Hackman: Treatment that pet Mark offers.
Jeff Hackman: I am pleased to report that <unk> is gaining traction in select major academic centers across the country.
Jeff Hackman: I'm pleased to report that PEDMARC is gaining traction in select major academic centers across the country. institutions such as UCLA in California. Fred Hutchinson Cancer Center in Seattle, Mount Sinai in New York City, and Henry Ford Cancer Institute in Detroit, just to name a few examples. all have begun integrating PEDMARC into their treatment plans, further validating the clinical utility and expanding patient access in real-world settings. These experiences have been very positive, and we are pleased with both the new and continued interest in PEDMARC as the first and only approved therapy for the prevention of hearing loss related to CISPLAT.
Jeff Hackman: Institutions, such as UCLA in California.
Jeff Hackman: Fred Hutchinson Cancer Center in Seattle, Mount Sinai in New York City, and Henry Ford Cancer Institute in Detroit, just to name a few examples.
Jeff Hackman: All have begun integrating <unk> into their treatment plans further validating the clinical utility and expanding patient access and reward in real world settings. These experience have experiences have been very positive and we are pleased with both the new and continued interest in <unk>.
Jeff Hackman: As the first and only approved therapy for the prevention of hearing loss related to cisplatin.
Jeff Hackman: These centers are critical in setting clinical standards. So this transition and endorsement by key institutions is a powerful signal for broader market acceptance for our product.
Jeff Hackman: These centers are critical in setting clinical standards. So this transition and endorsement by key institutions is a powerful signal for broader market acceptance for our product.
Jeff Hackman: This also opens opportunities in research settings, positioning us well for potential future expansion.
Jeff Hackman: This also opens opportunities in research settings positioning us well for potential future expansion.
Jeff Hackman: As a reminder, <unk> is indicated to reduce the risk of OTO toxicity associated with cisplatin in pediatric patients one month of age and older with localized non metastatic solid tumors <unk>.
Jeff Hackman: As a reminder, PEDMARC is indicated to reduce the risk of ototoxicity associated with cisplatin in pediatric patients one month of age and older with localized non-metastatic solid tumors. PEDMARC is recommended for the AYA population by the National Comprehensive Cancer Network, or the NCCN. It has a 2A endorsement. In addition, with this recommendation, as of the end of 2024, all medical compendia have received Fennec's clinical updates. I'm pleased to announce that the AHFS, the largest online platform for pharmacists, has updated its content to reflect and differentiate PEDMARC in accordance with our look forward to providing you all updates.
Jeff Hackman: <unk> is recommended for the AIA population by the National comprehensive cancer network or the <unk>.
Jeff Hackman: It has a two way endorsement.
Jeff Hackman: In addition, with this recommendation as of the end of 2020 for all medical Compendium have received phenix clinical updates I'm pleased to announce that the a H <unk>.
Jeff Hackman: The largest online platform for pharmacists has updated its content to reflect and differentiate <unk> mark in accordance with our labeling we anticipate additional compendium listings in the early 2025 and look forward to providing you you all updates.
Jeff Hackman: Further we continue to advance our efforts to have <unk> added to the NCC and drug and biologics compendium a key step in further expanding access and reimbursement pathways.
Jeff Hackman: Further, we continue to advance our efforts to have PEDMARC added to the NCCN Drug and Biologics Compendium, a key step in further expanding access and reimbursement paths. As you can imagine, the process involves multiple steps, beginning with our request to modify the NCCN Adolescent and Young Adult Guidelines to expand consideration for PEDMARC in platinum-based regimens beyond In parallel, we've also submitted a formal inclusion request to the NCCN for the Neuroblastoma Guide. Since inclusion in the compendium requires product recognition in a cancer-specific NCCN guideline, the submission is a key milestone. A decision is anticipated by mid-25, and we are actively engaging with key stakeholders to support a positive outcome.
Jeff Hackman: And you can imagine the process involves multiple steps beginning with our request to modify the NCC in adolescent and young adult guidelines to expand consideration for <unk> in platinum based regimens beyond cisplatin.
Jeff Hackman: In parallel we've also submitted a formal inclusion request to the CCN for the neuroblastoma guidelines since inclusion in the compendium requires product recognition in a cancer specific NCC and guideline. The submission is a key milestone.
Jeff Hackman: A decision is anticipated by mid 'twenty five.
Jeff Hackman: We are actively engaging with key stakeholders to support a positive outcome here.
Jeff Hackman: In terms of the commercial launch and the progress we are making.
Jeff Hackman: In terms of the commercial launch and the progress, we are making significant steps outside the U.S. As previously announced, we have an exclusive licensing agreement that we've executed in March of last year, 2024, with Norgy to commercialize PEDMARC. The product is now commercially launched in both Germany and the UK in early 2025. In the UK, Nice published the list price of PEDMARC-C is £8,277. In Germany, the current public price is more than 10,500 euros per vial. and that final price in Germany is anticipated to happen at the end of 2025. Both markets are generating additional revenue source for Fennec in 2025 with potential for the achievement of the first two sales royalty and related milestones by the end of 2025.
Jeff Hackman: Significant steps outside the U S. As previously announced we have an exclusive licensing agreement that we've executed in March of last year 2024, with <unk> commercial to commercialize the <unk> the.
Jeff Hackman: The product is now commercially launched in both Germany and the UK in early 2025.
Jeff Hackman: In the UK nice published the list price of <unk> 8277 pounds.
In Germany.
Jeff Hackman: The current public price is more than 10500 euros per vial.
Jeff Hackman: And that final price in Germany.
Jeff Hackman: As anticipated to happen at the end of 2025, both markets are generating additional revenue source for furniture in 2025 with potential for the achievement.
Jeff Hackman: Achievement of the first two sales royalty and related milestones by the end of 2025, we look forward to providing you all.
Jeff Hackman: We look forward to providing you all updates to these recent launches as we move forward in Europe.
Jeff Hackman: Updates to these recent launches as we move forward in Europe.
Jeff Hackman: Also on the ex U S front is the investigator initiated trial in Japan, we call at STS J O one.
Jeff Hackman: Also on the ex-U.S.
Jeff Hackman: front is the investigator-initiated trial in Japan. We call it STS-J01. It's evaluating PEDMARC and was all currently enrolled and completed with enrollment in October 2024. The clinical trial STS-J01 evaluates the efficacy and safety of PEDMARC in reducing ototoxicity induced by cisplatin in children and AYAs with localized solid tumors. The primary endpoint of this trial is to assess the frequency of hearing impairment at the end of the treatment.
Jeff Hackman: It's evaluating pet Mark.
Jeff Hackman: And was all currently enrolled and completed with enrollment in October 2024.
Jeff Hackman: The clinical trial STS J O one evaluates the efficacy and safety of <unk> in reducing OTO toxicity induced by cisplatin in children and a ways with localized solid tumors.
Jeff Hackman: The primary endpoint of this trial is to assess the frequency of hearing impairment at the end of the treatment.
Jeff Hackman: Results of the trial are expected by the fall of 2025 with the potential evaluation of both registration and partnering or licensing of PEDMARC in Japan thereafter.
Jeff Hackman: <unk> of the trial are expected by the fall of 2025 with the potential evaluation of both registration and partnering or licensing of pet market in Japan thereafter.
Speaker Change: Further we partnered with infamous.
Jeff Hackman: Further, we've partnered with infamous. in Pharmaceuticals, excuse me, for the distribution of PEDMARC in Turkey and in the Gulf cooperated council country. These milestones collectively mark an important step in achieving Fennec's mission of expanding our access to PEDMARC to cancer patients across the globe who all have risk of hearing loss due to cisplatin or CIO.
Speaker Change: In pharmacy excuse me for the distribution of <unk> in Turkey, and in the Gulf Co Op cooperated council countries.
Speaker Change: These milestones collectively mark an important step in achieving phenix mission of expanding our access to pet mark to cancer patients across the globe.
Speaker Change: We will all have risk of hearing loss due to cisplatin or CIO.
Speaker Change: I wanted to take a moment now to just reflect on why this work and what we're doing here at <unk> truly matters or what we're doing here at fennec truly matters I recently shared at an all company Fenech National meeting that we're not just working to preserve hearing we're preserving connections memories and life itself.
Jeff Hackman: I want to take a moment now to just reflect on why this work and what we're doing here at PEDMAR truly matters, or what we're doing here at Fennec truly matters. I recently shared at an all-company Fennec National Meeting that we're not just working to preserve hearing, we're preserving connections, memories, and life itself. At Fennec, we are constantly reminded through our daily interactions with both physicians and patients of the significant importance of protecting hearing for people who are going through cancer treatment.
Speaker Change: At Phoenix, we are constantly reminded through our daily interactions with both physicians and patients of the significant importance of protecting hearing for people who are going through cancer treatment.
Jeff Hackman: every cancer patient who makes it through treatment and can still hear the laughter of a loved one or just everyday sounds because of the work that we are doing to raise awareness and the importance of CIO impediments. The progress we are sharing with you today is more important than just the milestones and numbers. It's making real impact on patients' lives and their families.
Speaker Change: Every cancer patient, who makes it through treatment and could still hear the laughter of a loved one or just everyday sounds.
Speaker Change: Because of the work that we're doing to raise awareness and the importance of CIO and pet Mark.
Speaker Change: The progress we are sharing with you today is more important than just the milestones of numbers, it's making a real impact on patients' lives and their families I'm incredibly proud of our team here at Fenech and excited about our road ahead.
Jeff Hackman: I'm incredibly proud of our team here at Fennec and excited about our road ahead.
Robert Andrade: With that, I'm going to turn it back over to Ragh. Thank you, Jeff. Our press release contains details of our financial results for the fourth quarter and full year of 2019.
With that I'm going to turn it back over to Robert.
Robert Andretti: Thank you Jeff.
Robert Andretti: <unk> press release contains details of our financial results for the fourth quarter and full year of 2024.
Robert Andrade: which can be viewed on the investors and media section of our website. Rather than read through all of those details, my comments today will focus on some key financial At Fennec, we have been consistent. We are pleased to report that over the past 12 months, during a time of change and evolution at the company, grew revenues by approximately 40%. and important. managed to burn only approximately $0.6 million in cash for the fourth quarter of 2008. In the fourth quarter of 2024, the company reported $7.9 million in net products. or a quarterly growth rate of approximately 13%.
Robert Andretti: Which can be viewed on the investors and media section of our website.
Robert Andretti: Rather than read through all of those details my comments today will focus on some key financial results.
Robert Andretti: At Fedex, we have been consistent with the strategic and disciplined approach to spending.
Robert Andretti: We are pleased to report that over the past 12 months during a time of change and evolution at the company.
Robert Andretti: We grew revenues by approximately 40%.
Robert Andretti: And importantly <unk>.
Robert Andretti: Managed to burn only approximately zero point $6 million in cash for the fourth quarter of 2024.
Robert Andretti: In the fourth quarter of 2024, the company reported $7 9 million and net product sales.
Robert Andretti: Or a quarterly growth rate of approximately 13%.
Robert Andretti: For the full fiscal year 2024, the company recorded $29 6 million and net product sales compared to $21 3 million in 2023.
Robert Andrade: For the full fiscal year 2024, the company recorded 29.6 and Net Product. As we approach fiscal year 2025, we are focused on growing net product. and anticipate the most significantly quarter growth in the second half of 2025. all the foundational pillars and initiatives we are putting in place. are expected to materially impact. The company recorded $3.9 million in selling and marketing expenses in the fourth quarter of 2020. compared to $4.6 million in the third quarter. For the fiscal year 24, the company recorded $18.4 million in selling and marketing. with the increases largely related. Increased payroll and additional marketing expenses as we focus on expanding our outreach and awareness to the AYA.
Robert Andretti: As we approach fiscal year 2025, we are focused on growing net product sales.
Robert Andretti: And anticipate the most significantly quarter growth in the second half of 2025, when all the foundational pillars and initiatives. We are putting in place are expected to materially impact the growth of bedrock.
Robert Andretti: The company recorded $3 9 million in selling and marketing expenses in the fourth quarter of 2024 compared to $4 6 million in the third quarter of 2024.
Robert Andretti: For the fiscal year 'twenty for the company recorded $18 4 million in selling and marketing expenses compared to $12 1 million in fiscal year 'twenty three.
Robert Andretti: With the increases largely related to increased payroll and additional marketing expenses as we focused on expanding our outreach and awareness to the AIA population.
Robert Andretti: For the fourth quarter of 2020 for G&A expenses decreased $2 9 million compared to the third quarter of 2024, largely due to noncash equity compensation.
Robert Andrade: For the fourth quarter of 2024, G&A expenses decreased 2.9 million compared to the third. largely due to non-cash equity competition.
Robert Andrade: one-time severance paid to the previous CEO. fiscal year 24, G&A expenses increased by 2.4 as a result of the increased European pre-commercialization expenses and expenses associated with the Norgene transaction. For the full year of 24, the company spent approximately $33 million in cash operating expenses. which included approximately 8 million in cash expenses related to the pre-commercialization of Europe and related Noregene transactions. We would anticipate the full year cash operating expenses to be similar in 2025. This includes a step up in marketing expenses and increased headcount, while there will be an elimination of any pre-commercialization expenses related to Europe.
Robert Andretti: The one time severance pay to the previous CEO in the third quarter.
Robert Andretti: For the fiscal year 'twenty for G&A expenses increased by $2 4 million compared to fiscal 'twenty three.
Robert Andretti: As a result of the increased European pre commercialization expenses and expenses associated with the <unk> transaction.
Robert Andretti: For the full year of 24, the company spent approximately $33 million in cash operating expenses.
Robert Andretti: Which included approximately $8 million in cash expenses related to the pre commercialization of Europe.
Robert Andretti: And related nor gene transaction expenses.
Robert Andretti: We would anticipate the full year cash operating expenses to be similar in 'twenty five.
Robert Andretti: This includes a step up in marketing expenses and increased head count.
Robert Andretti: While there will be an elimination of any pre commercialization expenses related to Europe, or nor gene expenses that we incurred in 2004.
Robert Andretti: As is customary with our business cash operating expenses are higher in the first half of the fiscal year.
Robert Andrade: as is customary with our... cash operating expenses are higher in the first half largely as a result of commercial and marketing spending, fiscal year spending pattern.
Robert Andretti: Largely as a result of commercial and marketing spending fiscal year spending patterns.
Robert Andretti: And finally, our cash position.
Robert Andrade: And finally, our cast. Cash and cash equivalents were $26.6 million as of December 31st, 2018. I would like to remind those that in December 24, Fennec announced the early partial repayment of a significant portion of its debt to Petri. early repayment of $13 million of the company's approximately $32 million outstanding convertible debt. is a financial and strategic action that optimizes the company's balance. while effectively saving approximately $1.5 million.
Robert Andretti: Cash and cash equivalents were $26 6 million as of December 31, 2024.
Robert Andretti: I would like to remind those that in December 24, fennec announce the early partial repayment of a significant portion of its debt to petrocorp.
Robert Andretti: The early repayment of $13 million of the company's approximately $32 million outstanding convertible debt facility.
Robert Andretti: Is a financial and strategic action that optimizes, the companys balance sheet and overall capital structure.
Robert Andretti: While effectively saving approximately $1 $5 million in future annual interest payments and eliminating potential dilutive shares.
Robert Andrade: and the New York Times.
Robert Andrade: Thank you. and Eliminating Potential Dilution. As mentioned, we were very pleased with our operational efficiency in the fourth while reporting a cash burn of only 0.6%. approximately a $13 million increase in cash and cash primarily to the $43 million in upfront proceeds from the Norgene Transact. Net Product Revenues Collected. offset by operating expenses and the $13 million debt pay down in December. Additionally, as a reminder, next milestone related to our Norgina be obtaining final pricing approval. Fennec will have the opportunity to receive a 10 million euro milestone. and thereafter a sales milestone. Fiscal Year in which Fennec will have the opportunity 5 million.
Robert Andretti: As mentioned, we were very pleased with our operational efficiency in the fourth quarter, while reporting a cash burn of only zero point $6 million.
Robert Andretti: For the full fiscal year 2024, there was approximately a $13 million increase in cash and cash equivalents.
Robert Andretti: Due primarily to the $43 million in upfront proceeds from the <unk> transaction.
Robert Andretti: Net product revenues collected.
Robert Andretti: By operating expenses and the $13 million debt Paydown and December 24.
Robert Andretti: Additionally, as a reminder, the next milestone related to our <unk> agreement will be obtaining final pricing approval in Germany, and which fennec will have the opportunity to receive a $10 million milestone.
Robert Andretti: And thereafter, a sales milestone for the full fiscal year in which <unk> will have the opportunity to receive a $5 million milestone.
Robert Andretti: With the pet Marchese launch underway in two important markets in the UK and Germany.
Robert Andrade: Head Marchese launch underway. All important markets in the U.K. and G.E.
Robert Andrade: forward to providing further updates as.
Robert Andretti: Look forward to providing further updates as the year progresses.
Operator: And operator, with that, we will now open up the call for questions. Thank you. To ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please limit to one question and one follow-up.
Robert Andretti: And operator with that we will now open up the call for questions.
Speaker Change: Thank you to ask a question. Please press star one one on your telephone and wait for your name to be announced to withdraw your question. Please press star one again.
Speaker Change: Please limit to one question and one follow up.
Speaker Change: Okay.
Chase Knickerbocker: And our first question will come from Chase Knickerbocker with Craig Hallam. Your line is open. Good morning. Thanks for taking the questions. Just first, as it relates to Q4, can you just give us a sense of a little bit more specifics? Did the pediatric business return to sequential growth in the quarter? And then, you know, kind of backing into it, can you give us a sense for what the AOIA contribution was in Q4? Yeah.
Speaker Change: And our first question will come from Chase Knickerbocker with Craig Hallum. Your line is open.
Chase Knickerbocker: Good morning, Thanks for taking the questions.
Chase Knickerbocker: Just first as it relates to Q4 can.
Chase Knickerbocker: Can you just give us a sense of a little bit more specifics did the pediatric business returned to sequential growth in the quarter and then kind of backing into it can you give us a sense for what the contribution was in Q4.
Chase Knickerbocker: Yeah.
Jeff Hackman: Hi, Chase. How are you? Thanks for the question. Yeah, we continue to see growth in the pediatric segment. We're pleased with the momentum that was created earlier in that segment, and we continue to be, you know, that's an important part of our business. AYA has jumped out to be an incredible opportunity for us. And so as we, you know, provided, we won't give a breakdown of that, of the details of between how each has contributed to that. But, you know, our growth really is coming from both. Got it. And so you mentioned kind of a second half inflection there.
Speaker Change: Hi, Jason how are you.
Speaker Change: Thanks for the question, Yes, we continue to see growth in the pediatric <unk>.
Speaker Change: Segment, we're pleased with the momentum that was created earlier in that segment and we continue to be.
As an important part of our business.
Speaker Change: <unk> has jumped out to be.
Speaker Change: An incredible opportunity for us and.
Speaker Change: And so as we provided we won't give a breakdown of that of the details of between.
Speaker Change: How each has contributed to that but but our growth really is coming from both.
Speaker Change: Got it and then so you mentioned kind of a second half inflection there or is that just end CCN companion related and then I guess, just an overarching question, Jeff I mean.
Jeff Hackman: Is that just NCCN Compendia related? And then I guess just an overarching question, Jeff. I mean, you know, it's good to hear you talk about kind of the next phase of growth on the call here with AYA. But AYA is not a business that we have a great visibility into.
Speaker Change: It's good to hear you talk about kind of the next phase of growth on the call here with AIA, but anyway. It is not a business that we have a great visibility into could you maybe just give us a sense to what degree that you kind of expect inflection are seeing inflection in <unk> and then what investors' expectations should be kind of in 2025 for what potential grow.
Jeff Hackman: Can you maybe just give us a sense to what degree that you kind of expect inflection or seeing inflection in one cue, and then what investors expectations should be, you know, kind of in 2025, for what of the potential growth we could see in that segment? So, the reason why going to your question, the reason why we are looking as second half of the year, continuing to see, you know, accelerated growth is just because we're building the business here. And the business builds on itself. And we'll continue to see that. We'll invest here in 2025 to do that.
Speaker Change: We could see in that segment.
Speaker Change: Sure.
Speaker Change: Obviously, the absence of given any guidance.
Speaker Change: Really we believe the opportunity is significant and again.
Speaker Change: We're not.
Speaker Change: This is not a purely pediatric opportunity anymore for the for the product in those.
Speaker Change: Yes.
Speaker Change: Those institutions that I mentioned, which there are more that are adopting.
Speaker Change: Pet Mark in the AIA population will continue so the reason why going to your question. The reason why we are looking at.
Speaker Change: Second half of the year.
Speaker Change: Continuing to see.
Speaker Change: Accelerated growth is just because we're building the business here.
Speaker Change: And the business builds on itself.
Speaker Change: And we will continue to see that we will invest here in the in 2025 to do that.
Jeff Hackman: You know, as Robert said. But the expansion really focuses on this opportunity, and we'll see that growing throughout.
Robert Andretti: As Robert said.
Robert Andretti: But the expansion really focuses on this opportunity and we'll see that growing throughout the year.
Speaker Change: And I guess just to close up there I mean are you seeing enough. So far in Q1 to kind of give you confidence that that growth is going to show its rear its head in 2025 or just maybe speak to specifically what you've seen in the first couple months of Q1.
Jeff Hackman: And I guess just to close up there, I mean, are you seeing enough so far on Q1 to kind of give you confidence that that growth is going to show its, you know, rear its head in 2025, or just maybe speak to specifically what you've seen in the first couple months of Q1? We've seen it, and we're expecting it to continue, Chase. Thank you.
Robert Andretti: We've seen it and we're expecting it to continue.
Robert Andretti: Thank you.
Speaker Change: And our next question will come from rocket from South <unk> with H C. Wainwright. Your line is open.
Raghuram Selvaraju: And our next question will come from Raghuram Selvaraju with HC Wainwright. Your line is open. Thanks very much for taking my questions and congratulations on all the recent progress. I just wanted to ask in particular about the progress so far that Norgene has been making in Europe.
Speaker Change: Thanks, very much for taking my questions and congratulations on all the recent progress.
Speaker Change: Just wanted to ask in particular about the progress so far that <unk> has been making in Europe. In particular, if you could provide us with any kind of granularity regarding.
Jeff Hackman: In particular, if you could provide us with any kind of granularity regarding relationships that have been built with key centers of excellence in European countries, how you are expecting the broader rollout to occur, with what cadence, and which countries you anticipate being the most likely contributors to European revenue and therefore the European royalty stream. And if you could also maybe talk about whether the AYA population is likely to be, in any way, a comparable driver to revenue uptake in Europe relative to the United States. Sure. You know, we've, you know, we've, following the licensing agreement and the announcement with Norgene, as you guys know, we've, now the product is commercially available.
Speaker Change: Our relationships that have been built with key centers of excellence in European countries.
Speaker Change: You are expecting the broader rollout to occur with what cadence and which countries do you anticipate being the most likely contributors to European revenue and therefore, the European royalty stream.
Speaker Change: And if you could also maybe talk about whether the AIA population is likely to be in any way comparable driver to revenue uptake in Europe relative to the United States.
Speaker Change: Sure.
Following the licensing agreement and the announcement with nor gene as you guys know.
Speaker Change: Now the product is commercially available so.
Jeff Hackman: So, and it just really, they're just really getting it off the ground, both in the UK and Germany, which will be two probably of the largest markets in Europe, as you guys know, as you kind of look at the kind of the big five countries there. You know, we issued a press release when we got the guidance from NICE, as well as, you know, the German, the German launch. You know, both of these markets now are progressing well. We, we continue to be really close, obviously, as you can imagine, with Norgene to follow these updates and the launch progress.
Speaker Change: And it just really they are just really getting it off the ground both in the UK and Germany, which will be two of probably of the largest markets in Europe. As you guys know as you kind of look at the kind of the big five countries there.
Speaker Change: We issued a press release.
Speaker Change: When we got the guidance from nice as well as.
Speaker Change: The German.
Speaker Change: The German launch.
Speaker Change: Both of these markets now.
Speaker Change: Progressing well.
Speaker Change: Continue to be really close obviously as you can imagine with Nord gene to follow these updates and the launch progress and we will continue to update you more as more countries.
Jeff Hackman: And we'll continue to update you more as more countries get approved and come on board with the Norgene, with the Norgene opportunity. You know, in, in relation to AYA, you know, that, you know, that's something, obviously, Norgene will start to kind of think through. It's a little bit different in, in, in Europe, obviously, as you can imagine, and they've got a, you know, they have a different structure of how they would get to that population. But right now, you know, this product is approved through patients aged one month through 17 years of age with localized non-metastatic solid tumors.
Speaker Change: <unk> approved and come onboard with <unk>.
With the <unk> opportunity.
Speaker Change: In relation to AIA.
Speaker Change: <unk>.
Speaker Change: That's something obviously, nor gene will start to kind of think through it's a little bit different in in.
Speaker Change: In Europe, obviously as you can imagine and they've got a.
Speaker Change: They have a different.
Speaker Change: Our structure of how they would get to that population, but right now.
Speaker Change: This product is approved through patients aged one month through 17 years of age with localized non metastatic solid tumors in Europe.
Speaker Change: And then just very briefly when you think about going forward in the United States with <unk>.
Jeff Hackman: And then just very briefly, when you think about going forward in the United States, with PEDMARC sort of leading the line, has there been any kind of update in your thinking regarding business development initiatives, potential partnership opportunities, ways to potentially expand your presence in areas where you already are effectively in front of key prescribers? Are you saying outside the U.S. or within the U.S.? Yeah, yeah, you know, we've, again, we, you know, our indication and, and where we, you know, our, and the NCCN guidelines allow us, obviously, in the AYA population to, to be able to, you know, expand our business there.
Speaker Change: <unk> sort of reading the line.
Speaker Change: Has there been any kind of update in your thinking regarding business development initiatives.
Speaker Change: Potential partnership opportunities ways to potentially expand your presence in areas, where you already are effectively in front of key prescribers.
Speaker Change: Okay.
Speaker Change: Are you seeing outside the U S or within.
Speaker Change: Within the U S.
Speaker Change: Yes, yes.
Speaker Change: Yes.
Speaker Change: Sure.
Speaker Change: Again, we you know our indication and where we are.
Speaker Change: R and the NCC and guidelines allow us obviously in the way population to be able to.
Speaker Change: Expand our business there.
Jeff Hackman: You know, we've had discussions with, with key academic institutions in the U.S. talking about, you know, expanding that, that opportunity. And we're going to continue to listen and, and potentially look at what that is. We, and we'll get to you with updates on if we, you know, as we kind of enter into, you know, some of these discussions with some of these academic institutions. Thank you.
We've had discussions with with key academic institutions in the U S talking about.
Speaker Change: Expanding that.
Speaker Change: That opportunity and we're going to continue to listen and potentially look at what that is we will get to you.
Speaker Change: With updates on if we as we kind of enter into.
Speaker Change: Some of these discussions with some of these academic institutions.
Speaker Change: Thank you.
Speaker Change: And our next question will come from Sudan, Logan thin with Stephens. Your line is open.
Felix Ampuma: And our next question will come from Sudan Loganson with Stevens. Your line is open. Hi everyone, this is Felix Ampuma in for Sudan Luganathan. Congrats on the earnings call and for the progress that you're making. I have two or three questions. First and foremost, can you please comment on the competitive landscape? for PEDMAC right now especially in the U.S. market and if you can comment a bit more on pricing. I know you did make mention of the pricing in all U.S. and how you How is the prescription of the drug going right now? In terms of SGNA, how should we think about it going forward?
Speaker Change: Hi, everyone business helix Puma info.
Speaker Change: Sudan Lugo Nathan.
Speaker Change: Congrats on the.
Speaker Change: And in this call and for the progress that you're making.
Speaker Change: Two or three questions.
Speaker Change: First and foremost can you please comment on the competitive landscape.
Speaker Change: For Piedmont, right now, especially in the U S market.
Speaker Change: And.
Speaker Change: If you can comment a bit more on price and I know you did make mention of the price in all U S.
Speaker Change: And how you.
Speaker Change: How is the prescription.
Speaker Change: Going right now.
Speaker Change: In terms of SG&A.
Speaker Change: How should we think about it going forward it looks at this.
Robert Andrade: It looks as if it came down a bit and also the payment that was made to the ex-CEO, would that lead to? Operational expenses coming down a bit more.
Speaker Change: It came down a bit.
Speaker Change: And also the payment that was mid two.
Speaker Change: Ex U.
Speaker Change: Would that lead to.
Speaker Change: Operating expenses coming down a bit more.
Robert Andretti: Maybe Robert do you want to take this.
Robert Andrade: Maybe, Robert, you want to take this second part and I can jump back into the first. Sure. Hey, Felix, how are you? Sure. Good. On the SG&A, as mentioned in my prepared remarks, 2024 saw additional expenses of approximately including the Noregene transaction. European pre-commercialization expenses. CEO at Severance Health. So, on a year-over-year basis, we anticipate that aggregate expenses, or those about $33 million, to be the same. And that's largely as a result of additional marketing and awareness expenditures that we're making in Focus. And that's largely as a result of additional marketing and awareness expenditures that the AYA market and just for PEDMARC in general, as well as the increased headcount that we have from some of the commercial expertise that we brought.
Speaker Change: Second part and I can jump back into the rivers Felix how are you.
Robert Andretti: Sure. Thanks on the SG&A.
Speaker Change: As mentioned in my prepared remarks.
Speaker Change: 2024 saw additional expenses of approximately $8 million.
Speaker Change: Including the <unk> transaction, including European pre commercialization expenses and as you mentioned.
Speaker Change: Severance.
Speaker Change: On a year over year basis, we anticipate that aggregate expenses are those about $33 million to be the same and that's largely as a result of additional marketing and awareness expand expenditures that we're making in focus.
Speaker Change: Both for the AIA market and just for <unk> in general as well as the increased head count that we have from some of the commercial expertise that we brought onboard.
Robert Andrade: So, in aggregate, the same, but I think I gave you some of the... Why There's Pluses and Minuses. Yeah, and related to the cost of PEDMARC, you know, your question is, obviously, PEDMARC, it varies from patient to patient, depending on a bunch of factors, right? Weight-based dosing, vial utilization, duration of treatment, obviously, cost of treatment. You know, we've said this in the past that the WAC of PEDMARC, the wholesale acquisition cost of PEDMARC is $11,000 per vial. And, you know, the number of vials of PEDMARC that's administered per patient, it varies based on this, how many doses of Cisplatin, for example, it's given or, you know, and that can range.
Speaker Change: In aggregate the same but I think I gave you some of the ebbs and flows in terms of.
Speaker Change: Why there's pluses and minuses.
Speaker Change: Thanks.
Speaker Change: And related to the cost of pet Mark. Your question is obviously pet mark it varies from patient to patient depending on a bunch of factors right weight based dosing.
Speaker Change: Vial utilization duration of treatment, obviously cost of treatment.
Speaker Change: We've said this in the past that the.
Speaker Change: Lack of pad Mark the wholesale acquisition cost of <unk> markets 11000 per mile.
Speaker Change: And.
Speaker Change: The number of vials pet Mark that's administered per patient it varies.
Speaker Change: Based on this how many doses of Cisplatin for example, it's given.
Speaker Change: Or.
Speaker Change: And that can range.
Robert Andrade: We've seen from six vials of PEDMARC up to potentially 40 vials with larger and some of the older patients in the AYA market. So it's very, it just varies. And we are seeing favorable reimbursement from coverages right now across both commercial and government, both Medicaid payers and across inpatient and outpatient settings, which is really, really good news, especially as we enter into, you know, the AYA market. I hope that answers your question. Yeah, he does.
We've seen six vials of <unk>, Mark up to potentially 40 vials with larger and some of the older patients and the way market. So it's very.
Speaker Change: It just varies and we are seeing favorable reimbursement from coverages right now across both commercial and government, both Medicaid payers and across the inpatient and outpatient settings.
Speaker Change: Which is really really good news, especially as we enter into.
Speaker Change: The <unk> market.
Speaker Change: I hope that answers your question.
Speaker Change: Yes.
Jeff Hackman: If you can elaborate a bit more on the competitive landscape and other competing... formulations that you are aware of and how, I mean, any idea in terms of the split? Yeah, we don't give a breakdown of the splits of the competitive market. Right now, as you guys know, the compounded STS product still continues to be available. Mostly, I would say the majority of it is used in the pediatric settings. We really don't see any of that, really any of that product or the compounding of that in the community settings. As you can see, as I announced some of the institutions, the UCLA's, the Mount Sinai's, the Fred Hutch's, as you can see, those are large institutions that have adopted PedMart.
Speaker Change: If you can elaborate a bit more on the competitive landscape and compete.
Speaker Change: Competing.
Speaker Change: Formulations that you are aware of and how.
Speaker Change: The idea in terms of the split.
Speaker Change: Yes, we don't we don't give a breakdown of the splits of the competitive market right now as you guys know that.
Compounded Sts.
Speaker Change: Product still continues to be available, mostly I would say the majority of it is used.
Speaker Change: In the pediatric settings, we really don't see any of that.
Speaker Change: Really any of that product or the compounding of that product in the community settings.
Speaker Change: And as you can see as I and.
Now some of the institutions. The UCLA is the Mount Sinai is the Fred Hutch is as you can see those are margins institutions that have adopted padmore.
Jeff Hackman: That's great news, especially when there is a compounding competitor that's available. I would say that we're making progress there. This will continue to be progress that we'll talk about as 2025 continues.
Speaker Change: And Thats, Great news, especially when.
Speaker Change: There is a compounding.
Speaker Change: Competitor Thats available so.
Speaker Change: I would say that we're making progress there.
Speaker Change: And this will continue to be progress that will we will talk about as 2025 continues.
Speaker Change: Okay.
Jeff Hackman: One last question if you may, I think you made mention of label expansions, will you be running clinical trials in all those labels that you potentially hope to expand into those indication Yeah, well, no, we'll update you more on that. That's a great question. You know, those are developments that are happening as we speak here in 2025. I can tell you that I'm open to having those discussions with institutions. I think it's an area where we have to play and continue to grow PEDMARC. So stay tuned for that. That's a great question.
Speaker Change: One last question if you may.
Speaker Change: I think you've made mention of label expansion.
Speaker Change: Will you be running clinical trials.
Speaker Change: Those labels that you potentially.
Speaker Change: We hope to expand into those indications.
Speaker Change: Yeah.
Speaker Change: Well no well update you more on that that's a great question.
Our developments that are happening as we speak.
Speaker Change: Here in 2025, I can tell you that that I'm open to having those discussions with institutions I think it's an area, where we have to play and continue to to grow pet Mark.
Speaker Change: So stay tuned for that that's a great question.
Operator: Okay, well, thank you, Moritz. Yeah, thanks and congrats. Thanks. You're welcome. As a reminder, to ask a question, please press star 1 1 on your telephone.
Speaker Change: Okay, well, thank you more as it comes.
Speaker Change: Thanks, and congrats again.
Speaker Change: Youre welcome.
Speaker Change: As a reminder to ask a question. Please press star one on your telephone and then next question will come from Michael <unk> with Maxim Group. Your line is open.
Michael Okunwich: And the next question will come from Michael Okunwich with Maxim Group. Your line is open. Thank you guys, thank you so much for taking my questions today, congrats on the progress. Thanks, Michael. Just a couple quick ones for me. So thinking about Japan, right, do you expect that you'll need to have that data in hand to gain a partner? Or is there potential you can see progress on the partnering front as we head into that data? Yeah, you know, you'd always like to have the data first, right? But we have been approached and have had some discussions.
Michael: Hey, guys. Thank you so much for taking my questions today Congrats on the progress. Thank you. Thanks.
Speaker Change: Thanks, Michael.
Speaker Change: Just a couple quick ones from me, so thinking about Japan right do you expect that youll need to have that data in hand to.
Speaker Change: Dan or partner or is there potential you could see progress on the partnering front as we head into that data.
Speaker Change: Yes.
Speaker Change: Like to have the data right.
Speaker Change: But we have been approached and have had some discussions and so those will.
Jeff Hackman: And so, you know, those will, you know, I think about, you know, the business development of other countries like this, like Japan is, it's a long process. But it's a process that we've begun to have conversations with. And as the data, you know, as we get information, and you get hints of the data, you know, and it's, you know, the positive outcome of that data, that all is information that will lend to, you know, a much better, you know, value for us.
Speaker Change: I think about the business development of other countries like this like Japan is is it's a long process, but it's a process that we've begun to have conversations with.
Speaker Change: And as the data.
We get information.
Speaker Change: And you get hints of of of the data.
Speaker Change: And it's the positive outcome of that data that is information that will lend to a much better value for us and so that process is going to continue all throughout 2025 until we get the final data.
Jeff Hackman: And so, that process is going to continue all throughout, you know, 2025, until we get the All right, thank you.
Speaker Change: Alright, Thank you and then thinking about.
Jeff Hackman: And then thinking about, you know, that kind of bifurcation you mentioned in the AYA segment between the community centers and the more concentrated 72, I think you said, major centers, how do you prioritize your commercial efforts between those two settings? Yeah, you know, it's interesting, because what we're finding is, is the, you know, those 72 centers that we talked about, as well as these 20,000, you know, patients are, you know, in those 4,000 oncology, you know, offices around the country, it kind of break, it's breaking out very, you know, almost, as we start to see this as a, as a very balanced where these patients are, both in the community and in the academic centers.
Speaker Change: That kind of bifurcation you mentioned in the AG segment between the community centers and in a more concentrated 72 I think you said major centers, how do you prioritize your commercial efforts between those two settings.
Speaker Change: Yeah, it's interesting because what we're finding is the.
Speaker Change: <unk>.
Speaker Change: Those 72 centers that we talked about as well as these 20000 patients are in those 4000 oncology offices around the country.
It kind of break it is breaking out very almost.
Speaker Change: As we start to see this as a as a very balanced where these patients are both in the community and in the academic centers. So these academic centers play an important role.
Jeff Hackman: So these academic centers play an important role. And, and, and those institutions are really key for us, but it's not, you know, we, we have to make sure that we're out in these, you know, in these 4,000 oncology, you know, community centers, it's, it's critically important for us to be there as well. The, when I mentioned earlier in the call, you're about the, you know, the lower awareness levels in the AYA space, that's a great opportunity. You know, many, many of these physicians that we're talking to understand, you know, the issue with cisplatin, but but in a lot of cases, they don't, they didn't have an alternative to be able to, to help with CIO, you know, with these patients, and now they do.
Speaker Change: And in those institutions.
Speaker Change: A really key for us, but it's not.
Speaker Change: We have to make sure that were out in these.
Speaker Change: And these 4000 oncology.
Speaker Change: Community centers, it's critically important for us to be there as well when I mentioned earlier in the call.
Speaker Change: About the.
Speaker Change: The lower awareness levels in the Hawaii space, that's a great opportunity for us.
Speaker Change: Many of these physicians that we're talking to understand that.
The issue with cisplatin.
Speaker Change: And a lot of cases, they don't they didn't have an alternative to be able to to help with CIO with.
Speaker Change: With these patients and now they do and so this is this is an exciting opportunity for us.
Jeff Hackman: And so this is a, this is a, an exciting opportunity for us, you know, in both the academic institutions and the community setting.
Speaker Change: In both the academic institutions in the community setting.
Speaker Change: Alright, Thank you very much I appreciate the additional color.
Michael Okunwich: I thank you very much. I appreciate the additional color. You got it. Thanks, Mike.
Speaker Change: Got it.
Thanks, Michael.
Operator: I show no further questions in the queue at this time.
Speaker Change: Showing no further questions in the queue at this time.
Jeff Hackman: I would now like to turn the call back over to Jeff Hackman for closing remarks. Yeah, perfect. Thank you. And thanks for your questions, everybody. You know, it was truly an exciting year for us and for Fennec, given the strong performance of Pedmark. Especially, this is the second full fiscal year following the US commercial launch. We're pleased with our execution, especially against the foundational pillars that I mentioned earlier. And this sets us up for an incredible 2025 and beyond.
Speaker Change: I would now like to turn the call back over to Jeff Hoffman for closing remarks.
Speaker Change: Perfect. Thank you and thanks for your questions everybody.
Speaker Change: It was truly an exciting year for us and for fenech, given the strong performance of pet Mark, especially this is the second full fiscal year. Following the U S. Commercial launch we're pleased with our execution.
Speaker Change: Especially against the foundational pillars that I mentioned earlier.
Speaker Change: This sets us up for an incredible 2025 and beyond.
Jeff Hackman: For more information visit www.FEMA.gov were also significantly strengthened our financial position. And we remain dedicated to further growing our revenues and expanding our availability of PEDMARC to patients and providers globally. So I want to thank you all today for for joining the call and the support of Fennec. We look forward to updating you all on our commercial progress and important corporate milestones on future quarterly calls. Thanks, everybody.
Speaker Change: We're also significantly strengthened.
Speaker Change: Our financial position and we remain dedicated to further growing our revenues and expanding our availability of head mark to patients and providers globally. So I want to thank you all today for joining the call and the support of Fenech, We look forward to updating you all on our commercial progress and important.
Speaker Change: Corporate milestones on future quarterly calls thanks, everybody.
Speaker Change: This concludes today's conference call. Thank you for participating you may now disconnect.
Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.
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Speaker Change: Thanks.
Speaker Change: Okay.
Speaker Change: Thanks.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Sure.
Speaker Change: Okay.
Speaker Change: Great.
Speaker Change: Okay.
Speaker Change: Thank you.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Thanks.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Great.
Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Sure.
Speaker Change: Yes.
Speaker Change: Great.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: <unk>.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Hum.
Yes.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Yeah.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Sure.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Hum.
Speaker Change: Yes.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Sure.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].