Q4 2024 ADC Therapeutics SA Earnings Call
Good morning, ladies and gentlemen, and welcome to the ADC Therapeutics, ADC Therapeutics 4th, Quarter, fiscal year, 2024 Earnings Conference call. At this time, all lines are in reason only molded.
A D C therapeutics is providing this information as of today's date and does not undertake any obligation to update any forward looking statements contained in this conference call as a result of new information future events or circumstances, except as required by law.
The company cautions investors not to place undue reliance on these forward looking statements.
Today's presentation also includes non-GAAP financial reporting.
These non-GAAP measures should be considered in addition to and not in isolation or as a substitute for the information prepared in accordance with GAAP.
Refer to the company's fourth quarter earnings release for information and reconciliation of historical non-GAAP measures to the comparable GAAP financial measures.
Malik: I'll turn the call over to our CEO of neat Malik and eat.
Speaker Change: Thanks, Marcy and good morning, everyone. Thank you for joining us on today's call.
Speaker Change: Looking back 2024, it was a year focused on execution, where we achieved multiple exciting milestones.
Speaker Change: To advance our strategy to unlock value for our shareholders.
Speaker Change: We made significant progress across key areas in our ADC portfolio, both with the Martha and our early stage solid tumor pipeline all while strengthening our balance sheet. We are confident in the path ahead as we work to make an impact for more patients moving forward.
Speaker Change: Among our key 2024 accomplishments, we reached commercial brand profitability within Manta as we continue to maintain our position in the highly competitive third line plus the RBC all space.
Speaker Change: Sales of $69.3 million were in line with the prior year. Despite the growth our bi specifics in this setting.
Speaker Change: We made significant progress in advancing our strategy to expand the use of the Atlanta into earlier lines of D. O V C L and indolent lymphomas.
Speaker Change: December included completion of enrollment in our pivotal phase III Lotus five trial and an initial efficacy and safety update a part two of our phase one b low to seven trial in.
Speaker Change: In addition, we were pleased to see phase two IIT indolent lymphoma data presented at Ash and the simultaneous publication of the Follicular lymphoma data in lancet hematology.
Speaker Change: From our solid tumor perspective, we continue to advance our extra tikkun based preclinical candidates.
Speaker Change: The most advanced targets or P. S. A man called <unk> six and we continue to seek potential research collaborations to further advance our programs.
Speaker Change: Additionally, in a year marked by continued progression we were able to achieve a double digit reduction in operating expenses for a second year in a row.
Speaker Change: In addition, we strengthened our balance sheet through an equity financing.
Speaker Change: Biding and expected cash runway into the second half of 2026.
Speaker Change: We are proud of what we accomplished in 2024 and are confident in our path forward.
Speaker Change: In support of our commitment to further expand usage of Cymbalta.
Speaker Change: We're pursuing a substantially larger opportunity in earlier lines of <unk> cell therapy with combinations through both the five and low to seven.
Speaker Change: But loaded five we are pleased to have closed 2024 by completing enrollment of our phase III trial, bringing us a step closer to providing a potential combination treatments in the second line <unk> setting.
Speaker Change: Initial data from the safety lead in portion of the study showed an overall response rate of 80% and a complete response rate of 50% with no new safety signals demonstrating that this combination of the Lotto plus rituximab.
Speaker Change: Has the potential to provide competitive second line plus efficacy with a favorable safety profile, allowing broad accessibility.
Speaker Change: Updated data are expected by the end of 2025 watched a pre specified number of events is reached.
Speaker Change: But loaded seven in December we reported encouraging initial data, including safety and efficacy in a subset of patients from the part two dose expansion of this and lots of plastic will fit in a combination arm in non Hodgkin lymphoma.
Speaker Change: Initial data showed a best overall response rate among the 18 efficacy evaluable relapsed or refractory <unk> patients.
Speaker Change: 94% and a complete response rate of 72%.
Speaker Change: These encouraging efficacy data were observed across patients with different numbers of lines and types of prior treatments.
Speaker Change: Initial safety data on all 29 NHL patients suggest the combination was generally well tolerated with no dose limiting toxicities across all dose levels.
Speaker Change: We believe these initial data support our hypothesis that combine these two potent approved single agent drugs with complementary mechanisms of action.
Speaker Change: You are additive or synergistic efficacy, a manageable safety profile and accessibility across care settings.
Speaker Change: This combination has the potential to be best in class and a highly competitive market.
Speaker Change: Enrollment of 40 patients in dose expansion is expected to be completed in the second quarter of 2025.
Speaker Change: We expect to share data on a subset of patients in the second quarter of this year with a full or more mature data update anticipated during the second half of 2025.
Speaker Change: In addition to our expansion trials in D. C. L. Promising phase two data from two key investigator initiated trials.
Speaker Change: Led by the Sylvester comprehensive cancer Center at the University of Miami Miller School of Medicine.
Speaker Change: Our reported in indolent lymphomas with presentations at Ash.
Speaker Change: Lots of it in combination with Rituximab in high risk relapsed or refractory Follicular lymphoma.
Speaker Change: And as monotherapy in relapsed or refractory marginal zone lymphoma, with a simultaneous lancet hematology publication of the F. L data.
Speaker Change: Data showed stronger as often high risk relapsed or refractory FL patients treated with the combination of us and lots of plus rituximab with a best overall response rate of 97% and a complete response rate of 77%.
Speaker Change: In addition, and lots of data from the relapsed or refractory Mg All study showed clinically meaningful activity with an overall response rate of 91% and a complete response rate of 70%.
Speaker Change: We look forward to further updates at future medical conferences from these two studies evaluating the potential of the Martha NFL and M. A C L.
With sufficient data we plan to discuss the path forward with regulatory authorities as well as seek inclusion income pangaea.
Speaker Change: Looking forward into 2025, we expect to have multiple data catalysts, which can further de risks and lots of lifecycle management opportunities.
Speaker Change: Together these have the potential to lead to a peak revenue of $600 million to $1 billion in the U S, assuming regulatory approval and companion listing.
Speaker Change: Within our current indication our commercial strategy remains focused on relapsed or refractory <unk> patients who.
Speaker Change: Who need a treatment with a fast durable response, and a manageable safety profile, which can be administered in the outpatient setting.
Speaker Change: We are holding our own in the competitive third line plus market demonstrating that it's in laughter has a place as a monotherapy with a significantly greater opportunity as we move towards combinations in earlier lines of <unk> therapy.
Speaker Change: We believe Lotus five has the potential if it takes a lot there's a $2 million to $300 million in peak sales as we expand into the second line setting taking the company to profitability.
Speaker Change: This is driven by doubling the patient population extending the duration of therapy and improving the clinical profile versus our current indication as a monotherapy.
Speaker Change: Market research suggests that only about 50% of the second line population are expected to have access to <unk>.
Speaker Change: <unk> be suitable for car T and bi specific based therapies.
Speaker Change: For patients who are not treated with or progress on a car T or by specific than lots of plus we're talking about has the potential to have a differentiated clinical profile with high and durable response rates, a manageable safety profile and ease of administration.
Speaker Change: With low to seven we estimate we could expand the total opportunity first and laughter in D. C L.
Speaker Change: The $500 million to $800 million in peak revenue with regulatory approval and companion listing.
Speaker Change: If the data persists, we believes in lockup plus will fit a map has the potential to transform the future of lymphoma treatment paradigm by becoming the preferred five specific combination in the second line <unk> setting.
Speaker Change: Additionally, in indolent lymphoma, there's a clear unmet need in both relapsed or refractory marginal zone lymphoma.
Speaker Change: And relapsed or refractory Follicular lymphoma.
Speaker Change: We are encouraged by the data seen in the phase two IIT, suggesting has unlocked a regimen could provide significant benefit in these indolent lymphomas and plan to engage regulatory agencies and pursue competitive strategies as soon as sufficient data are available.
Speaker Change: The indolent lymphomas opportunity could provide additional peak revenue of $100 million to $200 million.
Speaker Change: Taken together, we believe we are well positioned for success as we progress towards key milestones in 2025 and beyond.
Pepe: With that I would like to turn the call over to Pepe.
Thank you.
Pepe: Let me just note that we achieved many milestones in 2024, including reducing operating expenses and a strengthening of the balance sheet on.
Pepe: On the financial front.
Remain well capitalized ending the year with $251 million in cash.
Pepe: Equivalent, which is expected to fund operations into the second half of 2026 based on our current plans.
Pepe: <unk> net product revenues in fourth quarter 'twenty 'twenty four were $16 4 million as compared to $16 6 million in the same quarter of 2023 for.
Pepe: For the full year 2024, net product revenues were $69 $3 million as compared to $69 $1 million and quickly if I could play.
Pepe: Okay.
Pepe: Throughout 2024, we maintain our disciplined capital allocation strategy and decreased operating expenses by 15% year over year on a non-GAAP basis, which excludes stock based compensation.
Pepe: In the fourth quarter, our non-GAAP operating expenses decreased versus prior year by 15% due to efficiencies in our operations and diligent portfolio management decisions.
Pepe: You can find the reconciliation of GAAP measures to non-GAAP measures in the companion financial tables of the press release issued earlier today and in the appendix of this presentation.
Pepe: When I got basis, we reported a net loss of $37 million for the quarter of 28 cents per basic and diluted share as compared to net loss of $85 million or a net loss of one point or $3 per basic and diluted share for the same period in 2023.
Pepe: Net loss for the full year ended December 31, 2024 was $107 $8 million or a net loss of $162 per basic and diluted share as compared to net loss of $241 million or a net loss of $2 94.
Pepe: $4 per basic and diluted share for the full year ended December 31 2023.
Pepe: The decrease in net loss during both periods is primarily attributable to lower income tax expenses and lower operating expenses.
Pepe: On a non-GAAP basis, adjusted net loss was $26 $5 million or an adjusted net loss of <unk> 25 per basic and diluted share as compared to adjusted net loss of $79 $5 million or <unk> 97 per basic and diluted share for the same period in <unk>.
Pepe: <unk>.
Pepe: <unk> net loss for the full year ended December 31, 2024 was $111 4 million adjusted net loss of $1 $15 per basic and diluted share as compared to net loss of $185 $7 million or an adjusted net loss of $2 27.
Pepe: Our basic and diluted share for the full year ended December 31st 2023 the.
Pepe: The decrease in net loss and adjusted net loss during both periods is primarily attributable to lower income tax expenses and lower operating expenses.
Pepe: With our current balance sheet, we believe we're well financed to continue to pursue our corporate strategy.
Pepe: As a reminder, hematology continues to be the primary focus of our capital allocation and within this our key objective is to create value by expanding the use of <unk> in lung and beyond our current indication.
Pepe: We expect to achieve this by fully supporting our commercialization efforts in the U S directly and through our partnership outside the U S.
Amit: We continue to pursue research collaborations to advance our early stage solid tumor pipeline with that I will turn the call back over to Amit.
Amit: Thanks Scott.
Amit: With a year of completed milestones behind us we enter 2025 with great confidence proud of what we've achieved and excited for what is to come.
Amit: Within our current Atlanta indication, we maintained our annual revenue in line with prior year, we believe the real growth opportunity comes with the expansion of <unk>, both through regulatory approvals as well as inclusion in guidelines and we are confident in the multiple pathways, we have to get there.
Amit: We continue to be encouraged by the largest consistently strong clinical profile, both as monotherapy and in combination is giving us confidence in the ultimate success of our expansion strategy.
Amit: 2025 will be a period of important data readouts as we progress towards the key milestones there today potentially derisking at setting us up to grow ours and lots of brands significantly in the future.
Amit: As we build on the strength of our established commercial foundation is Atlanta with expected expansion into the second line, plus <unk> and indolent lymphomas.
Amit: We believe we have the potential to reach $600 million to $1 billion in peak revenue in the U S. On our journey to bring these important treatments to patients who need them.
Beyond this we believe there is additional value creation opportunity with our preclinical solid tumors portfolio as we pursue potential research collaborations.
Amit: Looking ahead I am confident that ADC therapeutics is well positioned to make a truly meaningful impact for patients while driving value creation for all our stakeholders.
Amit: We can now open the line for questions operator.
Amit: Thank you.
Amit: Ladies and gentlemen, we will now begin the question and answer session.
Amit: Should you have a question. Please press the star followed by the number one on your attach Cohen filling you will hear a problem. That's your handheld been raised should you wish to decline from the polling process. Please press the star followed by the number too.
Amit: You are using a speaker phone please lift the handset before pressing any keys.
Amit: One moment. Please for your first question.
Amit: Your first question comes from Eric Schmidt of Cantor. Please go ahead.
Amit: Good morning, Thanks for taking my question, maybe just first real quick one on the <unk>.
Amit: So I've been update in Q2 is is there going to be a specific for them that you have in mind or timing within the quarter or we can look to.
Amit: Hello.
Speaker Change: Hi can you hear me.
Amit: Yes.
Amit: Did you hear me.
No I'm, sorry, I mean.
Amit: I was cut off.
Amit: Oh, okay.
Amit: Okay. Okay. So let me repeat so thanks for the question.
Amit: Sure.
Amit: We haven't disclosed yet what forum or exact timing within Q2 that we're going to be sharing the data, but what I can tell us that we're on track to enroll 40 patients in the dose expansion in the second quarter, we will share a portion of those patients safety and efficacy data on a portion of those patients in the second quarter and then data on all 40 of those case.
Amit: In the second half of the year.
Speaker Change: Thanks for that repetitive response.
Speaker Change: And then second question just with regard to your newest competitor latest competitor I guess and what's already a fairly crowded marketplace that existing market for simonton relapsed refractory NHL RBC.
Speaker Change: Obviously, if we saw the big Pfizer approval of ADCETRIS is it too early to say, whether you've got a real challenge there I know you've guided to kind of flattish revenue for the year. Thank you.
Speaker Change: Yes, I know as you said the the triplet of ADCETRIS plus R. Squared was recently approved in third line setting based on the echelon three study.
Speaker Change: We believe this is going to have limited impact as physicians have access as you said the multiple options and we believe based on a lot of the quantitative market research. We've done that Andy used is likely going to be in place of older regimens, such as R squared or our base chemo.
Speaker Change: The third line plus Dolby sound setting.
Thanks, a lot.
Speaker Change: Yes. Thank you.
Speaker Change: Your next question comes from.
Speaker Change: Kelly.
Speaker Change: Jeffrey.
Speaker Change: Please go ahead.
Walter: Thank you for taking my question for Walter seven two weeks that are made.
Speaker Change: Meeting with the regulatory agencies after the second half.
Speaker Change: And if that's the case, what do we hear from the AC.
Speaker Change: And infill could actually show it to the public at El Mann and secondly, what is your estimate of the Golan telecom market opportunity in indolent lymphoma, including a physical lymphoma and.
Speaker Change: Our minda zone lymphoma. Thank you.
Speaker Change: Okay. So yeah once sufficient data is available on the 40 patients and we have to.
Speaker Change: Correct follow up we do plan to pursue.
Speaker Change: Discussions with regulatory authorities likely in the second half of this year.
Speaker Change: We also plan.
Speaker Change: To pursue Kapadia strategy, we know that based on some of the recent inclusion of biases accommodations and guidelines.
Speaker Change: We believe the publication of data on approximately 100 patients that despite the dose would be sufficient for submission to contain yes, we do plan to pursue a.
Speaker Change: Our regulatory strategy and a competitive strategy for seven.
Speaker Change: With regards to the indolent lymphoma opportunity.
Speaker Change: We presented we think quite compelling data both in Marcellus on lymphoma and lymphoma.
Speaker Change: This past year in those studies continue.
Speaker Change: Based on the opportunity.
Speaker Change: With potential regulatory approval and certainly companion from those studies, we believe that the peak opportunity for Endo lymphomas will be somewhere in the $100 million to $200 million range.
Speaker Change: Thank you.
Michael Schmidt: Your next question comes from Michael Schmidt of Guggenheim. Please go ahead.
Michael Schmidt: Hey, guys. Thanks for taking my questions.
Speaker Change: By the end of the year you should.
Speaker Change: Yes, likely also have the recite of the Lotus five trial, and Hans and I guess I'm just wondering how does.
Speaker Change: How does your notice seven strategy.
Speaker Change: Is that impacted by potential outcomes of Lotus five by the end of the year.
Speaker Change: I had a follow up.
Speaker Change: Okay.
Speaker Change: Good question.
Speaker Change: We know that in this market outside of the frontline really.
Speaker Change: No given treatment sort of dominate.
Speaker Change: Physicians really make treatment choices based on FCC inaccessibility profile, but in the context of individual patient needs. So for example, you see yourself like a car T, which has outstanding efficacy only captured about 20% of the share. So we think having both approaches and lots of plus rituximab in those five as well as in lots of pascua spin it out and those seven are complementary approach.
Speaker Change: And which allow us to address different individual patient needs specifically with those five we believe that having a non systemic chemo combination.
Speaker Change: Offer a competitive second line efficacy profile, but also with favorable safety and convenience.
Speaker Change: Especially for patients who either can't access are not suitable for our progress on our car to your Bispecific therapy with Lotus seven based on the recent data we shared in December.
Speaker Change: Which we believe is very compelling.
Speaker Change: I think there's a lot of concern about how the potential to be the preferred bispecific combination in second line plus you have yourself with a highly competitive efficacy.
Speaker Change: With an animal safety profile and the potential for off the shelf convenient dosing.
Speaker Change: We believe that both approaches are complementary based on our quantitative market research.
Speaker Change: What we've seen is about 50% of patients are anticipated to get a car T or vice versa. So it still leaves a lot of room for other therapies and then we of course know that many of them of course, they will progress.
Speaker Change: Okay.
Speaker Change: And then yeah. We saw you have in ACR and oral presentation coming up at ACR on your clot in six eight ECM. Yeah. I was just wondering if you can help us understand sort of how.
Speaker Change: How important that that presentation is and in terms of some of the learnings perhaps relative to other ADC platforms like the Daiichi Sankyo technical.
Speaker Change: Technology, how much insight, where we gained from that presentation in terms of differentiation.
Okay.
Speaker Change: Yes, you will see more data that has not been disclosed yet in the public domain not only our clients six which as you mentioned as an oral.
Speaker Change: But we also have poster presentations for our P. S.
Speaker Change: <unk> compounds.
Speaker Change: As Youre aware were using exit he came with a very novel linker system, which allows us to offset.
Speaker Change: <unk> also had the hydrophylicity.
Speaker Change: <unk> releases.
Speaker Change: What we've seen so far.
Speaker Change: Preclinical is pretty consistently a therapeutic index thats greater than 10, which is quite differentiated relative to DSD, we've seen higher potency hire 500, SaaS, we noticed on MTR substrate and we've also seen we haven't seen ILD, which could you see with DXP and others have ISR platform. So we do think the data differ.
Speaker Change: <unk> and added to both the oral presentation for context as well as the poster presentations for <unk> there will be additional.
Speaker Change: I believe compelling data mature that hasnt been in public demand at this point.
Alright, thank you.
Speaker Change: Thank you.
Speaker Change: Your next question comes from Gregory <unk> of RBC capital markets. Please go ahead.
Speaker Change: Yeah.
Speaker Change: Hi, guys. Thanks, so much for the time this morning, it's a niche on for Greg.
Speaker Change: Also for the updates and for taking our questions just on Lotus five what most of the combination of us and longtime rituximab demonstrate in terms of efficacy and safety to be considered competitive and what are the benchmarks for approval and to make a compelling case for clinical adoption in terms of complete response median PFS median to you are at.
Speaker Change: <unk>. Thanks, so much.
Speaker Change: Yeah no. Thanks.
Speaker Change: For <unk> five.
Speaker Change: The way I'm thinking about the competitive set is that the world is going to be or car T and bi specific based combinations of which this is gonna be a portion of the population that's going to have access to the therapies may be suitable for those patients, but again, we anticipate based on the independent quantitative market research that about half the patients are going to get one of those therapies in the second line setting and when you look at the.
Speaker Change: Other therapies and all the other combinations, whether they'd be with targeted therapies or with chemo based regimens. They tend to have CR rates anywhere between the 25% to 40% range. So clearly anything north of 40% would be differentiation I think what we're encouraged by is in the safety run in.
Speaker Change: Which was the first 20 patients.
Speaker Change: Looking at the combinations in Lotto, plus rituxan or prior to the randomized portion of the study what we saw was an overall response rate of 80% and a complete response rate of 50%. So we believe anywhere in that 40% to 50% range is going to be compelling relative to the non car T and non-violence pick often which we know is going to be a big opportunity.
Speaker Change: In terms of.
Speaker Change: PFS with the way the study is powered.
Speaker Change: A randomized study versus our gem ox, what we know is our gem ox typically.
Speaker Change: The PFS of anywhere from three to four months.
Speaker Change: In historic low studies for example, where it was most recently used as a control arm.
Speaker Change: Pathways.
Speaker Change: Three six months the way. The study is powered in there we need to show approximately a two month difference to have a positive study.
Speaker Change: So we feel good based on the safety run in data obviously.
Speaker Change: Were blinded to the results of the studies, we have to wait to see the result, but based on the early data we're quite encouraged by the prospects of having either a positive <unk> five study and for speed clinically relevant, particularly relative to the non <unk> and non party options.
Speaker Change: Great. Thank you so much and if I could just squeeze in one more I guess just on the commercial side, how do you foresee the competitive landscape for third line D O Bcl evolving in 2025 and beyond and how might that differ from 'twenty four thanks again.
Speaker Change: Yeah.
Speaker Change: Yeah, I think I mean, I think the biggest competitive impact we've seen with the products that belongs to US really was the introduction of bi specifics about 18 months ago by specifics now have taken about a third of the third line plus market I think what I'm happy about is that <unk>.
Speaker Change: During the period and if you look at the past several quarters, we've been in that $16 million to $18 million sales per quarter range. We have some fluctuation due to ordering pattern variability that we've been in that $16 million to $18 million range pretty consistently over the past several quarters. Despite the spices are combination the only real new competitive impact in the third line setting.
Speaker Change: And the question before that Eric asked about the ADCETRIS plus R. Squared. So we believe of course, there's going to be some impact, but we believe it'll be relatively limited, particularly.
Speaker Change: There's likely to be more community use and really in places some of the other regimens like ours ferritin RBS chemo.
Thank you.
Logan: Your last question comes from Sudan, Logan that then of Stephens. Please go ahead.
Logan: Hi, Amit and perfect. Thank you.
Logan: And for taking my questions. My first one is can you provide some examples of comparable by specific that demonstrated meaningful market share gain with D. A bcl patients through from Penny Olympic and then what were the number of patients in those Bispecific clinical trials that were run that got published in and were considered for company yet listing.
Logan: Yes, our recently I think it's too soon to tell what the uptake would be but I think what we know is it very recently.
Logan: Gross debt amount plus gem ox <unk> posture marks and most impossible apologies amounts have all been very recently added to FCA guidelines in the preferred regimen based on roughly a 100 patients. So when we look at all of those analogs. We think about 100 patients is what's required to get into.
Logan: India guidelines that's what.
Logan: All three of those restaurants had and too soon to tell what the uptake is going to be obviously as you know with any companion listing we of course will not promote off label and I assume none of these companies are going to promote off label, but these become available to physicians to do what's best for the patients and once you get into preferred regimen payers of course will reverse.
Logan: Based on preferred listings typically.
Logan: Got it thank you and if I can squeeze in one more.
Logan: Just wanted to ask him how long do you anticipate it will take to kind of achieve that peak penetration predictions, Brisbane locked up and after achieving <unk> listing or even a potential approval in the second and third line setting I know like whenever I was first approved that it was a pretty swift and gaining market share. So just kind of curious if you expect the same type of ramp once that.
Logan: Why it once its habits at lifting.
Speaker Change: Yeah, we havent guided to what the peak penetration what would be the timeframe, but what I can tell you is if you look at the other analogs that have been introduced.
Speaker Change: Up to this point typically the peak penetration is achieved using within the first two years.
Speaker Change: Oncologists and Hematologists I think are always searching to use the best products for the patients, especially unfortunately in something that's by threatening and where patients, especially when they over last postal frontline.
Speaker Change: They tend to.
Speaker Change: The prognosis is not great. Unfortunately for these patients and so.
Speaker Change: Usually what you do see is adoption pretty quickly for example policies are now in the frontline, obviously, which showed good growth in the frontline setting.
Speaker Change: So a plateaued and it's in about two years, we see bispecific growth slowing down a little bit about that and I'm setting, whereas that 18 month Mark. So that's typically what we've seen.
Speaker Change: I don't want to again predict what's going to happen for our products, but I would just say that's typically what's happened up to this point in the DLT UCL setting.
Speaker Change: Thanks I appreciate it.
Speaker Change: There are no further questions at this time that concludes our question and answer session I'd like to turn the conference back to our CEO, Amit Malik for closing remarks.
Amit Malik: Well I want to thank you all for joining our call today and for your continued support we look forward to keeping you updated on our progress operator, please end the call.
Speaker Change: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation you may now disconnect.
You bet.
Speaker Change: [noise].
Speaker Change: Oh.