Q1 2025 Elutia Inc Earnings Call
Speaker Change: Today's conference call is being recorded. I would now like to hand the conference over to Matt Steinberg with Finn Partners. Please go ahead.
Matt Steinberg: Thank you, operator, and thank you all for participating in today's call. Earlier today, Elutia released financial results for the quarter-ended March 31, 2025.
Matt Steinberg: A copy of the press release is available on the company's website.
Matt Steinberg: Before we begin, I would like to remind you that management will make statements during this call that include forward-looking statements within the meaning of the Federal Securities Laws which are pursuant to the safe harbor provision of the Private Securities litigation reform act of 1995.
Matt Steinberg: Any statements contained in this call that do not relate to matters of historical facts or relate to expectations or predictions of future events, results or performance or forward looking statements.
Matt Steinberg: All forward-looking statements including without limitation those relating to our operating trends and future financial performance are based upon our current estimates and various assumptions.
Matt Steinberg: These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated or implied by these four-looking statements.
Accordingly, you should not place undue reliance on these statements.
Matt Steinberg: For a list and description of the risks and uncertainties associated with our business
Matt Steinberg: Such factors may be updated from time to time in Elutia's other filings with the SEC. The conference call contains time-sensitive information and is accurate only as of the live broadcast today, May 8th, 2025.
Matt Steinberg: Elutia disclaims any intention or obligation, except as required by law, to update or revise any financial projections before looking statements, whether because of new information, future events or otherwise.
Matt Steinberg: Also, during this presentation, we refer to Gross Margin, excling intangible asset amortization, which is a non-GAAP financial measure.
Matt Steinberg: A reconciliation of this non-GAAP financial measure for the most directly comparable GAAP financial measure is available in the company's financial results released.
Matt Steinberg: for the first quarter ended March 31st, 2025, which is accessible on the SEC's website, and posted on the investor page of the Elutia website at www.elutia.com, and with that, I will turn the call over to Elutia's CEO , Rangie Melv.
Randy Mills: Thank you, Matt, and hello, and welcome all of you joining us today to our first quarter.
Randy Mills: 2025 conference call. I'll start off like I always do, just briefly describing our mission, our mission, our true north, the thing that guides us in this company.
Randy Mills: Humanizing Medicine so patients can thrive without compromise. We're interested in, I believe, strongly in this intersection of biological materials being superior than metals or synthetics, and then combining those with active pharmaceutical agents. That is what humanizing medicine means to us.
Randy Mills: All right, so let's get into it. We've got a lot of time to talk about it. I know we're starting a little later than normal today so I'll try to be I'll try to be pithy in my comments.
Randy Mills: We had a fantastic quarter and there's a lot we need to get you up to speed on, so let's jump into it. Looking at an overview of what we're going to be talking about today, first, we couldn't...
Randy Mills: Start this conversation without talking about the success of LUPRO and it's start to the full large exceeding expectations.
far and away.
Randy Mills: We're also going to talk a little bit about the future growth that we see coming
Randy Mills: through our new partnership with Boston Scientific that starts up this quarter, the second quarter that we're currently in right now.
Randy Mills: We've also been out there doing some really significant and targeted marketing efforts and we're going to talk through some of those scientific and marketing recognition that we're getting.
Randy Mills: I do want to make a few quick comments on regaining our cardiovascular portfolio from LeMate and then obviously Matt's going to talk to you about our finances and our financial position, which we were also able to materially strengthen during the course with that. Let's jump right into it.
Randy Mills: Elie Pro, first quarter launch. This is the priority for the company that is the most important thing going on in the organization.
and during our first-
Randy Mills: We really experienced some tremendous performance. So bio envelope, this combines our legacy kangaroo product with our LUPRO product.
Up 31% year-over-year to 3.1 million for context.
Randy Mills: It is also up 16% sequentially and that was off of a really strong in fact our best.
Randy Mills: Carter, that we had for bio envelope. So really, really strong overall results for our bio envelope franchise.
Randy Mills: in Bio-Envelope Revenue. How did we do that? How was that possible? Well, that was all made possible by the outstanding.
Randy Mills: Performance turned in by our team in securing VAC approvals. We said this from the beginning that our work with value analysis committees and getting through the value analysis committees and on contract with the hospitals was the central prerequisite. It has to happen before any sale can happen and we are currently through 125 hospitals that are now actively ordering the product and I want to take a moment to thank the team.
for such a tremendous effort there.
Randy Mills: So digging a little bit deeper into the Value Analysis Committee approval process and also what we have going on with our GPO's. So as I said, 125 institutions currently through a VAC and actively ordering the product. You can see here this is actually, so since September , how we have done months to month.
Randy Mills: The hospitals through contract and through the Value Analysis Committee on a monthly basis. I will say we do not add an institution merely by getting through the Value Analysis Committee process or even getting on contract.
Randy Mills: for us to add them and for them to make this chart and to make this graphic, they actually have to be actively ordering the product as well, so 125 institutions through that process.
Randy Mills: Another 130 Vax in process, we're currently adding about 10 to 12 Vax.
a month.
Randy Mills: Again, just so everyone understands the universe, so we're in 125, we're targeting about 1,000 hospitals to ultimately run this process out through it. We get there by taking only hospitals, so not ambulatory surgery centers, and then engaging on those hospitals that do greater than 100 pacemaker or defibrillator cases a year.
Randy Mills: Reid's on our second half of this year, and we think this sets us up in a very, very strong position for us very strong.
Randy Mills: 2nd half to 2025. Okay, other work we've done in here though, so value analysis committees are great to have. Another thing that really helps us along is having these GPO agreements in place, and we were able to add two more to the list in the first quarter, so we're super excited about that. We also have a lot more work going on with GPOs and
Randy Mills: and I hope to be adding to this list of seven within the year 2025. So a lot of great stuff going on from a back standpoint, from a contracting standpoint, the back office machine and Osiris is really, really starting to come into its own and work.
Alright.
Randy Mills: Now I want to talk about how we are planning on super-charging that with our Boston scientific relationship. Now we've been talking to our friends over at Boston scientific.
for some time now on some bigger ways.
of working together, and we are still-
Randy Mills: We're still working through that, but while we were going through that process, we said you know what this product is too important we need to get this thing launched and we need to get it into the hands of our reps. [inaudible]
Randy Mills: and so our two organizations came together, we decided to put this construct in place to be able to do that right now. So this is a distribution agreement that is able to leverage the Boston Scientific Reps. Basically the way it works is, Boston Scientific Reps
get paid a direct commission.
Speaker Change: for keeping Medtronic out of their cases. I mean, what could be better than that? You're already in the case, you're already there putting in the pacemaker, why not get some money?
Speaker Change: Keeping Metronik out of your case and so that's basically what this deal does it gives us a combined commercial footprint of over 900 sales professionals coast to coast now for context. [inaudible]
Speaker Change: 900 sales reps covering coast to coast. It also gives us really great economics under this model. So this model allows us to recognize end-market revenue and actually pay a fairly modest
Speaker Change: commission to the Boston scientific reps, each time they actually sell EluPRO in a case. So they're incentivized.
Speaker Change: to make LU Pro more successful. The Boston rep actually helped us in two ways.
Speaker Change: Alright, so one way that they help us is Boston Scientific actually helps us drive the VAC process.
Speaker Change: by introducing us and making those essential connections with the physicians and with the purchasing people inside these hospitals, they can actually help us get vacu approvals more efficiently. Finally, and when we talk about...
Speaker Change: Going from where we are now, really to scale, this becomes essential for us.
Speaker Change: The other way they help us is just actually case coverage and adoption within the procedure. So the Boston Wrap is in every single case right there with the pacemaker when the pacemaker is going in, and it's just super easy for them to say, hey, how about we also protect
Speaker Change: This pacemaker and this patient by putting the best antibiotic eluding envelope available on the market around this and getting paid to do it.
Speaker Change: So with that, our sales training of the organization, the initial sales training and rollout has already been completed, Kimberly and her team are doing a fantastic job.
and get this Boston Scientific Reps.
Speaker Change: have already gone out and started generating sales at over 52 hospitals as of today. We're
or ActiveLeague.
Speaker Change: selling Elupro at. So a lot going on with Boston Scientific, we have a great partnership. We're fully engaged with them talking about what we're doing now and talking about bigger ways of working together. But in the meantime, we have really put together a tremendous package that helps us get the most out of Elupro and get the most out of the launch of this product.
Speaker Change: Okay, with all that great work going on commercially from an operational standpoint, we need to make sure that we can keep up and we need to make sure we can keep getting more and more efficient. So, our production of LU Pro takes place at our Roswell, Georgia facility that also supports our Kangaroo manufacturing process as well.
Speaker Change: It has capacity to do about $140 million in revenue of L.U. Prolet about a 70-plus percent gross margin.
Speaker Change: that allows us to make the antibiotic discs. That's important one because it removes the bottleneck.
Speaker Change: But the other reason that's important is it's actually a pretty significant component of the cost of the product and so by making that antibiotic disc directly ourselves we remove the supply constraint and the bottleneck on it and significantly reduce the cost of goods of the product.
Speaker Change: So we're super thrilled to have that facility. We're moving into that facility right now and getting that up and running. We hope to have
Alright!
Speaker Change: and then, certainly, a fun thing to do is to get out and spend time with physicians and other partners that we have in market the product, and we had a phenomenal kickoff of LU Pro at a heart rhythm society meeting in San Diego just a few weeks ago where we launched our ad campaign, putting an end to unnecessary roughness, feel the difference
Speaker Change: and I'll just tell you, you can see here is a photograph of our booth, I would say rather strategically placed
Speaker Change: in the middle of this conference center, next to our partners, a Boston scientific and in real serious proximity to some of our competitors.
Speaker Change: Stood out. It was very eye catching and we had a tremendous
Speaker Change: We had a tremendous presence at our booth. It was great getting to speak with our physician partners who were stopping by and engaging with us. And I would thank many actually investors and other partners of you who stopped by and said hello at HRS. I hope you enjoy the experience as much as we did. But it was a great kickoff to Elie Pro and it was a great kickoff to this marketing campaign where we think...
Speaker Change: really underscores the value proposition that we add. The same phenomenal antibiotics, right? Famp in a minute, Cyclone.
Speaker Change: proven to protect patients from postoperative infections combined with a biological envelope that makes it easier for the position to use and more comfortable for the patient to have. So a great kickoff.
and, and, and, and, you know...
Speaker Change: to accept an Edison Award on behalf of the entire Aleutia crew for innovation in post-surgical recovery, Elie Pro already starting to win awards the words getting out, and it was fantastic.
Speaker Change: The science team wants to know that they will not be left out of this conference call. They have enrolled the first patients in our real world clinical study going on. Our first patients were enrolled at UCSD, were in rolling patients in this study across the country, gaining the kinds of clinical outcome data that physicians care about. And then lastly, they were able to not
Speaker Change: Another win with a peer-reviewed publication confirming the broad spectrum antibacterial effect.
Speaker Change: of Elupro against all different kinds of bacteria and showing just how robust the antibacterial properties of Elupro are when implanted.
Speaker Change: Okay, so those are my comments about L.U. Pro. Lastly, I will just make a few comments on our re-acquisition of our cardiovascular products from Millimate.
Speaker Change: This was a process that really went as seamless as it possibly could. There was really minimal customer disruption. We were able to assemble a team so far. 26
1099 sales reps that are out there selling the product.
Speaker Change: Direct sales are now underway and this has already begun and again.
Speaker Change: This one, we think, really has a possibility of adding and contributing from a financial standpoint right away. So I want to make a couple of these points really clear because I've got some questions about it.
Speaker Change: Yes, it's going to help our top line revenue because we are capturing top line revenue. Our gross margins we expect will go up predictably to about 80%.
Speaker Change: But here's an important thing, we expect this to essentially immediately contribute positively on the cash roll line. So this isn't a change that will cost us money, this isn't a change where we will have to make an investment. This is something that contributes right away to the bottom line. And then lastly, it does increase our strategic flexibility with this product line. And having this back from homemade and fully in our control, let's us make other strategic
Sisions with it. This is a product line where we've been approached.
Speaker Change: from other strategic about, and so it gives us that opportunity to consider a lot of different options with this cardio of asked for a line.
Speaker Change: So with that, I will pause my comments. I'll turn it over to Matt. I'll be back with aftermath or run down of our financial update with a few parting comments.
Matt Steinberg: Okay, thanks, Randy. Thanks for all of you for being on the call today. I'm just going to hit a few of our highlights from our financials. Of course, refer you to our earnings relief and our 10Q which will come out early next week for all of the gory details of those. Thank you.
Speaker Change: So of course leading the way as Randy mentioned on the top line are bio envelope division or device protection as we sometimes call it
Speaker Change: That represents 31% growth year-over-year and also great sequential growth there compared to the Q4 number which was pretty darn good in and of itself, for SimpleDerm.
Speaker Change: We're at 2.6 million for the quarter. That is down admittedly from last year's number of 3.6 million, but it's up quite a bit from the number that we had in Q4 up about 13% from our Q4 number. So we're...
Speaker Change: We're pleased with what's happening there and feel like we're on the right trajectory.
Speaker Change: Our cardiovascular product division, as Randy mentioned, the number for Q1 represented
Speaker Change: Sales that we're still going through our outside distributor at only about 300,000, we would expect that as we're taking that back and starting to capture...
Speaker Change: The top line sales, 100% of the top line sales and also reinvigorating the actual sales efforts there through a really great organization of contract sales people that we haven't placed already that we'll see some significant growth there going forward as well as. So, um.
Better contributions to our bottom line.
Speaker Change: So overall adding those things up, we came in at 6.0 million in sales down a bit from last year, but again up sequentially from Q4.
by about 10%. So, moving down the P&L.
Speaker Change: I'll skip down to our adjusted growth margin, which is sort of how we look at it internally excludes non-cash.
Speaker Change: That came in at 54.8%, really basically unchanged from last year when we were at 55.2%, but we also believe that there will be a number of positive changes going forward there, particularly as we make...
Speaker Change: some efficiencies in the manufacturing of L.U. Pro as we take some of that in-house and increase these volumes there. And then also, as I mentioned, the-
Speaker Change: Capturing of Direct Revenue on the Cardiovascular side of things, so we actually expect gross margin to improve going forward.
Speaker Change: We also did a good job in Q1, even in spite of what really was a lot of focus on the launch of all you probably were able to control the expenses quite well.
Speaker Change: Operating expense actually went down year over year by close to $2 million, $10.4 million versus $11.3 and that translated down to what I consider to be our most salient.
Speaker Change: Profitability or loss measure or adjusted EBITDA number came in at $3.3 million and that is an improvement from last year when we were at $4.5 million for a comparable measure.
Speaker Change: I feel like we're getting nice control around our operations and seeing the leverage associated with the growth that we're generating on the top line.
Speaker Change: Registered Direct Offering, which took place in February of the first quarter, where we had $15 million in gross proceeds, so that added about 13.7 million in net proceeds.
Speaker Change: We also just today have announced a couple of amendments to important relationships that we have with ligand pharmaceuticals who have a loyalty interest agreement with us and the SWK holdings, which is our...
Speaker Change: Arlender, and both of those amendments are designed to help us conserve cash both in the current quarter and also going forward. So in the case of SWK, that includes
Speaker Change: An additional potential term loan that we can draw on $5 million as well as a full deferral of our cash interest payment in the second quarter and a number of other changes to terms and covenants.
Speaker Change: I think this really is a great indicator of the relationship that we have with these lenders and financial partners and the support that they're showing going forward.
Speaker Change: Very pleased to have those done and appreciate their work with us to get those done today.
Randy Mills: So that's sort of the recap on the financials and with that I will turn it back to Randy.
Randy Mills: Alright, so I'm just going to conclude with a wrap-up of where are we going, you know, we don't give guidance but I do like to be really explicit and really transparent with the direction of the organization.
Randy Mills: So, not a surprise to anyone, our number one priority is to continue to drive top-line growth of LU Pro, and we're doing this by expanding our VAC and our GPO coverage.
Randy Mills: To everything we've done up to date, I should say, everything we reported in this quarter, the Elut Pro team was able to do on their own.
Randy Mills: They are now joined in that effort with 900 postage scientific sales reps.
Randy Mills: that are really interested in this product, and so our second point is to continue.
a partnership, and we're really excited about that.
Randy Mills: Number three, we need to continue with our production capacity efforts and increase our lowering the cost of goods.
Randy Mills: for L.U. Pro. Our target here, again, is we think this is a product that has gross margins ultimately in the mid-70 percent range, and our operations team is hard at work and making that come true.
Randy Mills: Number four, now that we are at a position in our relationship with our CENTRA contract, which was acquired by Tiger, to explore strategic alternatives, we're actually going to do that, we're actually starting that process work.
Randy Mills: Exploring different strategic options for simpler. I might not have more clarity around that but I will hopefully coming up in in in future calls.
Randy Mills: and then lastly continue to advance drug-looting biologic pipeline that we have for reconstructive surgery. We will be introducing some of this stuff more explicitly later on in the year and I think you're going to find it absolutely stunning. The same team that brought you LUPRO and was able to get that technology through the FDA's been hard at work.
on some absolutely game-changing technologies.
Randy Mills: and we're really excited about those and actually getting some of those technologies through FDA in a relatively near-term horizon. So with that, I will conclude my comments, my comments today, and turn the call over to Latanya for any questions that you might have.
LaTanya: Thank you. We will now conduct a question and secession. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in a question cue.
Speaker Change: You may press star 2 to remove yourself from the queue. For participants who use a speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Once again, that's star 1 to ask a question at this time. One moment while we pull for our first question.
Speaker Change: The first question comes from Frank Takkinen with the Lake Street Capitol, please proceed.
Frank Tacking: Great, thanks for taking the questions, congrats on the really strong start of the year.
Speaker Change: I was hoping to start with one on Boston Certific. I know it's kind of early days still, but was excited to see you're in the 50 accounts selling with B.S.X already.
Speaker Change: How have those relationships with the positions gone in those cases? Are they fully switching out their direct use for EluPro? Is it testing it a few times and then they shift it? Gradually from there, just trying to get a feel for how quickly the Boston Reps can flip the competitive accounts.
Frank Tacking: Yeah, thanks Frank, the way the way we're finding the adoption patterns.
Frank Tacking: for LU Pro, sort of goes like this and I'll tell you a little bit of story about this because it relates to originally we saw a surge
in Alia Pro-ordering over historical Tangaroo ordering, and we thought...
Frank Tacking: Well, that might be a stocking order, but what we found was subsequent orders in general are higher than the initial order that's placed.
Frank Tacking: and so we spent a lot of time in the field, obviously, I've been outriding with our reps and sort of experiencing this firsthand, we saw this again at HRF.
and you're generally what happens is
Frank Tacking: Historically, there might be one physician who likes or is interested in using ALU-Pro in their center and they'll bring the product in and they'll use it.
Frank Tacking: and what happens is they tend to like the experience particularly if they've used Tyrex in the past.
The Use of Value Pro is completely different experience.
But what we found is it spreads...
through practices.
Frank Tacking: Pretty predictably and pretty consistently. And so, what we find is that we might originally have one physician in a practice.
Frank Tacking: that's interested in getting it on the shelf and ordering and Boston Scientific is essential in giving us that introduction.
Frank Tacking: But when other physicians in that practice see the product, hear about the product, they try it and they're also adopting it and using it now.
Frank Tacking: This is a game, obviously we've got to play hospital by hospital, but we certainly like that dynamic. Frank, the second thing that I think it's important to understand is once this conversion tends to happen with an electrophysiologist.
Frank Tacking: It tends not to be just with their Boston scientific cases, so it's rare that you find an electrophysiologist that only uses one particular brand.
Frank Tacking: of Pacemaker. Usually they might use 40% of one, 40% of another, and 20% of a third.
Frank Tacking: What tends to happen is they tend to also carry that usage over to their other cases where they might be using a, you know, a competitive.
Frank Tacking: Pacemaker. It really becomes part of their surgical practice.
Even the odds!
Frank Tacking: Those individual cases that Boston is able to take us into, take the product into and rep it to. And I think this is also a feature that Boston scientific is pretty excited about as well because I think they like the idea of Elutero going into cases other than their own.
Frank Tacking: Got it. That's helpful. Maybe the second one on manufacturing. Just curious if you think about your current business without the Geithersburg facility, how much capacity do you have or in other words, how much revenue can you get to before you start to get pretty constricted on from a capacity standpoint?
out of our current manufacturing capacity that we have...
Frank Tacking: We are able to generate about $140 million.
in L.U. Probe Revenue Without That.
Requires
Frank Tacking: are components, players, and really the chief components being the antibiotic disc to be able
Frank Tacking: to keep up with that. Without expansion of the antibiotic disc, the capacity on an annualized basis is more in the $25 to $30 million range.
Speaker Change: Okay, that's helpful. And then maybe just one for Matt, obviously a lot of moving pieces in the related to cash use and reduction of cash use. How should we kind of think about the the burn profile going forward with Ellie Progrowing, Cardiovascular coming in house, some of the ligand stuff.
Speaker Change: Any help you can provide us and kind of anchoring to what a reasonable burn rate on a go for it should be?
Speaker Change: Yeah, you know, there were a lot of puts and takes in the first quarter. I would say that, you know, when you see our cash flow statement, when it comes out on Monday or Tuesday in our 10Q, it'll show cash flow from operations of about.
Speaker Change: about 8.7 million and that includes about 4 million that was related to settlement of litigation that will largely be behind us for after Q2 I would say.
Speaker Change: and at least in terms of anything that's already been committed to. So I would see that probably staying at a kind of a similar range in Q2 but coming down a bit and coming down after that as we move through the year.
Speaker Change: Probably more into that, you know, more historical range that was like in the four to five million dollar range.
Okay, that's helpful. Thanks for the questions.
Speaker Change: Once again to ask a question at Star One at this time. Our next question comes from Ross, I've learned with Cantor Fitzgerald, please proceed.
Speaker Change: Hey guys, this is Matt Park on for Ross today. Thanks for taking the questions and to grab some of the solid progress with the all you've got.
Speaker Change: I guess I want to start off by out with the registry study. Are you guys thinking about the role of that data in supporting commercial conversions or broader clinical adoption over the next 12 to 18 months?
Speaker Change: Yeah Matt, so this is, you know obviously when you're doing human clinical studies not much comes fast. You're the best.
and so this...
Speaker Change: is something that we see being helpful more in the second half of next.
Speaker Change: last year when publications come out. This will be just one study that alongside of all of the other great work that we already have clinically using the ECM technology as well
Speaker Change: as well as the different scientific studies that the science group continues to publish on. Basically, what do we do with that stuff? Well, we do a couple of things. One of the reasons that we hit on that science stuff so hard is...
Speaker Change: A lot of the VAC process leans on those types of publications, so when we had a press release earlier about another scientific publication that got...
Speaker Change: that got published in a peer review journal about LU Pro. That's one of the many things that goes into the portfolio that makes up our VAX submission. So anything that we can do to bolster that.
Speaker Change: Obviously improves our chances with the Vax. Now, if you look at how it's going, it's kind of hard to imagine we could be doing better with the Vax.
Speaker Change: But we're always thinking about the next one. The other thing that we do with this, and particularly the real-world study, the clinical study that we have going on, is we're starting to prepare for regulatory submissions outside of the United States.
Speaker Change: and it's in those OUS regulatory submissions where this type of stuff becomes really important to have particularly going into EU.
Speaker Change: Matt, that's what the plan is there, not just with the real world study that's underway, but with basically that entire package of scientific work that the science teams put together.
Speaker Change: I got a super helpful color, and then one more from me on Elutro. I want to ask about the mix shift between Elutro and the all-vio emblem category. As we think about the pace of continued mix shift towards Elutro in the second quarter and beyond, and then how can the increased conversions from kangaroo over to the next
Yeah, um, I mean...
Speaker Change: You know, we think this is a product that's going to end up doing about $200 million or so in U.S.
Speaker Change: Tangaroo did $10 million in revenue when it reached maturity. So in pretty short order, we certainly hope that our Eleopro revenue dwarfs.
Speaker Change: What we have and what we were able to do with Kangaroo, no with that said go and expect Kangaroo to go away too soon. There are a couple of indications and there are a couple of patient populations. [inaudible]
Speaker Change: where the non antibiotic version is really actually pretty important, and so we're a patient first company, so we'll be keeping the product line around for that. But I think, you know, I want to say something like LU Pro.
was 32%.
Speaker Change: in the fourth quarter of last year was 32% of Biolum below probably, now it's over 50%. And I think you're just going to see that continue to take greater and greater share of that market. But that's primarily...
Speaker Change: Just because of how fast LU Pro is growing offset by a little cannibalization of kangaroo.
Speaker Change: I understand. Thanks again for taking the questions and congrats on all the progress.
Thank you Matt.
Speaker Change: Thank you. This does conclude today's teleconference and webcast. We thank you for your participation. You may disconnect your lines this time and have a great day.
Goodbye.