Q2 2019 Earnings Call
I'm Yodlee Jackson, Chief legal officer for clarity.
Please note that earlier today Aclaris issued a press release announcing second quarter 2019 results.
For those of you have not yet seen it you will find the release posted in the Investor section of our website at Www Dot Aclaris, TX Dot com.
Joining me today for the call are Dr., Neil Walker, President and Chief Executive Officer, Dr., Stuart Chandler, our Chief Scientific Officer.
Frank Fusco, our Chief Financial Officer, Dr., David Gordon, our Chief Medical Officer.
And Jeff Wayne, our interim head of commercial.
Before we begin our prepared remarks, I would like to remind you that various statements. We make during this call about the company's future results of operations and financial position.
Business strategy and plans and objectives for clarity from drop ration are considered forward looking statements within the meaning of the federal Securities law.
Our forward looking statements are based upon current expectations that involve risks.
Changes in circumstances assumptions and uncertainties that could cause actual results to differ materially from those reflected in such statements.
These risks are described in the risk factors and management's discussion and analysis of financial condition and results of operations sections of Aclaris form.
10-K for the year ended December 31st 2018.
Form 10-Q for the quarter ended June Thirtyth 2019 filed today and other filings Aclaris makes with the SEC from time to time.
These documents are available on the SEC filings section of the investors page of Aclaris website, Www dot to Claire TX Dot com.
All the information we provide on this conference call is provided as of today and we undertake no obligation to update any forward looking statements. We may make on this call on account of new information.
Feature events or otherwise.
Please be advised that todays call is being recorded and webcast a link to the webcast posted in the Investor section of our website.
I'll now turn the call over to Dr., Neil Walker presidency over Claire Neil.
Thank you Camille and thank you everyone for joining us on our Q2 earnings call today.
The second quarter has both been rewarding but also challenging.
In June we reported encouraging interim six month data from our uncontrolled open label AG eight or enter genetic LP should study. This pilot study was designed to assess the safety and efficacy of the use of topical JAK inhibitors in a new and highly prevalent indication called male female pattern hair loss.
We will have a 12 month data by year end and if it is consistent with the six month data. The next step would be to find a strategic partner to conduct a controlled clinical trial with a higher concentration of 85 or two.
As a reminder, we used a 0.46% concentration and we believe we can now achieve a concentration higher than 3%.
In addition in June we reported the results of our topical LP Shariati to trial, which unfortunately did not meet expectations and was negative across both the planned primary and secondary endpoints. Although we believe that unexpectedly high placebo response in a sub optimal concentration of VTI vital to were reasons for the failure. We continue to believe in the viability of a topical approach for LP Sherry auto, but with a higher concentration and currently plan to seek a strategic partner for further development.
Recently, we reported positive data from our oral JAK inhibitor.
Five a one trial for the more severe forms of LP Sherry audit. This trial demonstrated a robust efficacy signal in 85 alone was generally well tolerated.
Lastly, we have also advanced our first internally generated compound from our confluence acquisition into the clinic.
The phase one trial, which has been recently initiated with the first patient dosed August 2nd.
Turning to commercial roofing prescriptions for the second part of for the second quarter of 2019 exceeded 23200.
Estimated per the Acuvue monthly national prescription audit or MPD data.
This is the highest prescription count in a calendar quarter since the fourth quarter of 2017, when the product was owned and still being promoted by Allergan and represents 12% growth as compared to the first quarter of 2019.
New prescriptions for rotate achieved growth of 9% in the second quarter of 2019 compared to the first quarter as estimated per the Acuvue monthly MK data.
Rotate outperformed the branded realization market as defined by rofin pervasive or ratios than Asia, and some luxury brands in the second quarter of 2019, which grew by only 2% in fact rotate has outperformed the branded realization market is defined above for the last three quarters.
Commercial payer coverage for roofing to stable with coverage for 85% of lives and with unrestricted access for 52% of commercially insured lives. According to managed markets insight and technology data.
On the IP front two important patents recently issued.
The claims in the first of these issued patents covers the use has been effective amount of ISO topic forms of ruxolitinib, including Deuterated ruxolitinib to treat LP Sherry audit. This pad further bolsters, our IP estate are of different forms of hair loss, including LP, Sherry audits and enter genetic LPG or male female pattern hair loss.
The second pad involves rotate and provides additional methods of use protection for roofing, which expires in 2035 that is the six Orange book listed patents for this product and contains 37 claims directed to methods of treating facial hair thima associated with rosacea. The claim methods include topically administered once daily on the face of a patient a composition comprising 1% oximeter gasoline as a sole active ingredient.
We believe that we've created a company with many valuable assets that has become dislocated from the stock price, we're not satisfied with how the stock is trading and we are aligned with shareholders and wanted to drive positive returns.
To that end, we announced that we are undertaking a strategic business review of our commercial and R&D portfolio of assets to determine how to optimally deployed capital in order to maximize shareholder return as part of this undertaking today, we announced the following.
We are voluntarily discontinuing the commercialization of a Scott on the U.S. due to affect the revenues from product sales were insufficient for us to sustain continued commercialization as a result of the product not achieving sufficient market acceptance by either physicians or patients and not for any efficacy or safety reasons, we're seeking a strategic partner to commercialize this product both in the US and also worldwide. However, excluding Canada, where we already have a partner.
We currently also intend to seek a strategic partner to further develop our investigational compounds 85, a one and five will to both oral and topical JAK. One three inhibitors for LP ship. These clinical studies are typically 12 months in duration and the length and cost associated with these studies makes it more advantageous for us to partner or LP should franchise.
We plan to continue to invest in our other immuno inflammatory drug candidates, including our internally developed and investigational candidate for 50, an oral MK two inhibitor.
If we successfully complete our ongoing phase one clinical trial for this drug candidate, we expect to advance CTO fourfifty into two phase two clinical trials, one for patients with rheumatoid arthritis, and one for an additional inflammatory indications.
We plan on providing further updates in the coming weeks once we have completed our strategic business review.
With that I will hand over the call to David Gordon, Our Chief Medical Officer to review the clinical updates for the quarter David.
Thanks, Neil and good afternoon, everyone.
Neil mentioned highlights from the R&D program that will take a few minutes to provide a few more specifics.
As mentioned in our previous calls or phase III clinical development program for one 145% topical solution for the treatment of common wars or recoverable Garth was initiated in September 2000.
We have completely enrolled over 1000 patients and or two pivotal phase three trials need for one or two for the treatment of Coleman Wars.
These studies are progressing as planned and we expect to report data in the second half of 2019.
Since the last call we completed enrollment of the open label safety extension trial, which is the requirement for the Anda filings as a reminder, they want to 145% topical solution has the potential to be the first FTD approved prescription treatment for Colm and wars.
Turning to our JAK inhibitor trials, we have been developing oral.
It's like a one topical ittai fiber to our JAK, one three inhibitors with a focus on our future and we are also we also conducted additional open label studies and under genetic LPG or is this a while ago.
It's over dermatitis.
We previously announced results from the oral and topical fees to all the patient studies in six months data from our open label study.
Let me briefly summarize these results.
First it's fuel one topical.
This was our phase two randomized double blind parallel group vehicle controlled trial, which evaluated the safety efficacy and dose response of two concentrations or.
Five will too on the re growth of here and 129 patients with our pitch reactive.
In June 2019, we announced that.
Five with two did not achieve statistical superiority the primary or secondary endpoints in this trial.
Moving to our oral program you 80 to a one oral was our phase two dose ranging trial.
Fiber one for the treatment of alopecia Areata.
This randomized double blinded placebo controlled trial evaluating three doses of fiber one when the re growth of here in 87 patients with alopecia Areata.
July 29, seeing we are nice but.
Fiber one achieved statistically significant improvement over placebo in several measures of here growth, including the primary endpoint in certain secondary endpoints in this trial.
The primary efficacy endpoint compared relative reductions in hair loss across treatment groups. The reductions were 6% in the placebo group versus 20 630, 26% in the 400 600 800 groups respectively.
These changes were all highly statistically significant anti fiber one was observed to be generally well tolerated overseas.
The most common adverse events across all the groups, where a megaphone insights as influenza upper respiratory tract infection USIO the elevated CPT insight insights.
Our topical if you study as you through one topical is an ongoing phase two open label clinical trial of.
Fiber to for the topical treatment of IGI also known as male or female pop here loss.
31 patients with EG eight were enrolled.
The six month interim results that we reported in June describe a positive signal and both males and females.
12 month data are expected in the fourth quarter or 29 team.
As stated in June topical fiber to has potential to be an innovative medicine that could bring benefit to both males and particularly females with EG.
Turning now to new results.
80 to a one topical phase two open label uncontrolled clinical trial evaluating the safety and efficacy over 0.46% Epi feeble, two and 22 adult subjects with moderate to severe atopic dermatitis.
And how did the 28 day treatment phase and the primary objective was the assessment of safety and Tolerability.
If I were to was observed to be generally well tolerated no treatment related serious adverse events were reported.
Seven of the 17, evaluable subjects or 41% met the secondary endpoints of achieving a physician global assessment or PG, a score of less than or equal to one with at least a two point change from the baseline score, which had to be three or four or five point PG scale.
These results suggest that a topical JAK inhibitor emollients containing solution may be a viable option for the treatment of.
A topic dermatitis.
This is encouraging for it.
Slide 17, 77, an internal internally developed investigational topical soap JAK inhibitor, which could be a potential treatment for moderate to severe atopic dermatitis.
Vicki to a one topical is an ongoing phase two open label uncontrolled clinical trial evaluating the safety and efficacy of 0.46%.
If I go to when the re pigmentation official skin therapy for patients with penta legal.
Although an interim analysis at six months demonstrated evidence of re pigmentation in some patients. The response rate has been slow not sufficient to be clinically meaningful.
As a result, we have decided to discontinue this program after completion of this trial.
Yeah, Hi, Fi Bluetooth has been generally well tolerated no treatment related serious adverse events have been reported to date.
I'd like to finish with a brief mention of it for 50, an early drug candidate, but we're very excited about it.
If you actually were 50 as our MK two inhibitor a small molecule oral drug that we believe can target CNS and to look in one interleukin six and into Lincoln pathways.
In the first half of 2019, we successfully filed I envy for this drug and I'm pleased to announce that we have no dose the first patients in this phase one trial.
The next that cost to the phase one single and multiple ascending dose study is to advance ittai 450 into the phase two trials.
One in patients with rheumatoid arthritis.
One for an additional inflammatory indications.
I'll now hand, this over to Frank referral, our CFO to review, our second quarter financial results.
Thanks, David Good afternoon, everyone.
As I walk through our second quarter financial results. Please reference the financial tables that can be found in todays press release for further details. Please refer to the Mdna section in our Form 10-Q that was filed today.
For the quarter ended June Thirtyth 2019, total net revenues were $5.9 million, which consisted of net rotate sales of $4.7 million net as Scott to sales of $300000 in contract research revenues of $900000.
It should be noted that wholesaler inventories for rotate increased by two weeks during the second quarter, which positively impacted our rotate sales during the quarter by about $700000 based on average weekly wholesaler demand.
At June 32019, wholesaler inventory balances for rotate we are within normal levels to efficiently service patient demand.
Cost of revenue, excluding amortization was $2.7 million for the second quarter of 2019.
And included 1 billion.
And $700000 of royalties and cost of goods related to rotate and the SCADA respectively.
We also recorded a recurring noncash amortization charge of $1.7 million related to the intangible asset recorded as a result of the real estate acquisition in 2018.
Our cost of revenues for the CRM business were $1 million in Q2 and included noncash share based comp and depreciation charges of about $300000.
Looking back at the quarter ended June 32018, our total revenue was $3.7 million, which consisted of net a Scottish sales of $1.5 million.
Contract research revenues of $1.1 million and other revenue of $1 million from a onetime milestone payments.
Cost of revenue was $1.2 million for the second quarter of last year and was comprised of $200000 of costs related to a Scott a product sales.
And $1 million of costs incurred for our cereal business that again included noncash share based comp and depreciation charges of about $300000.
As we mentioned today product sales of SCADA to date have been insufficient for us to sustain continued commercialization of the brand.
And accordingly, we have discontinued sales of SCADA effective today.
Now switching to our operating expenses for the second quarter of 2019, our total R&D expenses were $17.76 million at 17.6 compared to $14 million for the second quarter of last year.
Q2, R&D expenses included noncash stock based compensation expense of approximately $1.7 million.
The increase the increases experienced in 2019 were mainly the result of our ongoing phase three clinical trials for the treatment of common warts and other increases related to our API Fourfifty program.
These increases were partially offset by decreases in spending for our various phase two clinical trials for our JAK inhibitor programs as most of these projects were at or near completion at the end of the second quarter of this year.
For the second quarter 2019, our total sales and marketing expenses were $7.2 million compared to 12.4 million for the second quarter 2018.
This decreased experiencing 2019 was mainly due to a reduction in direct marketing professional fees, which we incurred last year in advance of the launch of a Scott.
Which was in May of 2018.
Personnel related costs also decreased in 2019 due to the turnover experience in our commercial personnel during the first half of this year.
And these decreases were partially offset by increased marketing costs, which were incurred in the second quarter of 2019 to support our relaunch of will fade.
For the second quarter of 2019, our DNA expenses were $8 million, which included noncash stock based comp of approximately $2.7 million.
This compared to $8.1 million for the second quarter of 2018, which included a milestone payment of $1.5 million as well as $2.3 million of noncash stock based compensation.
The increase in 2019, when excluding the 2018 previously mentioned milestone payment was mainly due to the costs incurred under the transition service agreement with Allegan related to low feed.
Also both medical affairs activities and personnel costs increased during the quarter in order to support our increased commercial activity and our infrastructure.
During the second quarter of 2019, we performed an interim impairment analysis due to the recent decline in our stock price.
Since the fair value of our dermatology Therapeutics reporting unit was less than its carrying value. We recorded a noncash goodwill impairment cost charge of $18.5 million, writing off the full balance of goodwill from our balance sheet.
Other income net for the second quarter of 2019 decreased by about $800000 as compared to the second quarter 2018.
Due to interest expense incurred on our outstanding debt, which was borrowed back in October of 2018.
Our net loss was $49.9 million for the second quarter of 2019.
Compared to $31.2 million for the second quarter 2018.
During the second quarter this year, we incurred $26.3 million in noncash charges.
Our second quarter of 2019 cash burn was approximately $10 million less than our first quarter of this year.
Our operating cash burn for the second quarter of 2019 was $21.4 million compared to $21.8 million for the same period in 2018.
Also changes in our working capital provided $2.2 million in cash.
As of June 32019, we had cash and investments of approximately $116 million.
And had 41.3 million shares of common stock outstanding.
We anticipate that our current capital be sufficient to fund our operations into the fourth quarter of 2020 without giving effect to any additional potential new business development transactions or financing activities.
Now turning to our most current financial outlook for the full year 2008, 2019, we continue to reiterate our initial operating expense guidance that we provided in March for both GAAP R&D LNG in a expenses.
Today, we are reducing our guidance estimates for GAAP sales and marketing expenses to now be in the range of $32 million to $35 million, including $3 million of stock based compensation compared to our original estimate of $37 million to $40 million, which included $4 million of stock based compensation.
That is it so I will turn the call back over to Neil for some closing remarks.
Thank you Frank as we mentioned in todays release, we are undertaking a strategic business review of our commercial and R&D portfolio of assets to determine how to optimally deployed our current capital to maximize shareholder value conducting this assessment internally with our management team and working with our board as our top priority, we plan to deliver clear financial direction and updated timelines on our business strategy and update for everyone in the coming weeks.
We also look forward to reporting on the common work phase three results that will be available later this year.
Thank you for your attention and Bryan can you. Please poll for questions, Yes, Sir my pleasure.
Ladies and gentlemen at this time, if you would like to ask a question over the phone. Please press Star then one on your telephone keypad. If your questions have been answered your question Lisa. Thank you simply press the pound.
And our first question will come from Louise Chen with Cantor. Your line is now open.
Hi, Thanks for taking my questions I had a few here. So first question I had was on your AG data. Thanks for providing more color here and could you give us more thoughts on what gives you confidence and your next step here on this opportunity and then the second question I had was on the market opportunity for 84 50, both Ari and other inflammatory conditions. What makes this compound special and how will you differentiate yourself from the competition.
And then the last question here is on ROE fade, just curious what you think your peak market opportunity is and how long you think it will take you to get there. Thank you.
Sure, Hey, Hey, Louise as Neal. Thanks, Thanks for the question so.
Altrus the first two and then hand off the last one to Frank.
So on the on the front.
I think a couple of points are worth, noting one is that we opted to treat moderate to severe patients and we know that JAK inhibitors work pretty well and atopic dermatitis. So we really wanted to understand if.
Topical solution could work in a more severe patient population and we also wanted to test the idea of using a solution, which could be converted into a spray.
In this patient population and note that we would that we would not have any side effects in that regard and what we found was that it was extremely well tolerated we had rapid itch.
Resolution.
By week, two we were down 3.29 points on a mean basis on the on the patient reported it scores and four points on a median basis and then importantly, I think Dave mentioned this earlier on the PJ, which would be the regulatory endpoint, we achieved a zero one with a two point reduction of 41.2% of patients at four weeks and that's in a moderate to severe patient population with with a with a solution that has as that was not necessarily optimized. So we're really encouraged in that data as a bridge to our 17 77, which is a soft Jack which as Weve mentioned before works topically on the skin that gets rapidly metabolized once it hits the plasma so it's exceedingly safe or the the projection is that it would be exceedingly safe and we've been able to incorporate and ammonia into that solution, making it kind of tailor made for an eight topic dermatitis population and I think whats exciting is that we have at least a view now.
That Jacqueline three works pretty well along a number of measures and based on the 41% in the PPA and a moderate to severe patient population is is more than than competitive in fact better than some of the existing data. That's been reported to date and we think that with a spray that contains an a mall in compliance will be enhanced and that we have we will have a differentiated product in a in a soft Jack that is due to be in an i. Andy.
In the.
In the mid part of 2020, so I think that all is pretty exciting and I think this speaks to how we designed some of these clinical programs and doing some open label work and I think very quickly understanding what signals, we're there and different diseases in a pretty cost efficient way.
On the market opportunity for 84 50 on your second.
Question.
This is just think about all the biologics out there that address TNF Alpha IL, one beta IL six et cetera. This is an oral small molecule that can address those diseases. So theres a myriad of conditions that one could go after here and when we think about dermatology indications one could think of psoriasis hydride need us.
Many others, even a topic dermatitis.
Again looking at it from an oral small molecule approach, but there are also many opportunities beyond dermatology, including.
Rheumatoid arthritis, and a variety of inflammatory disorders, and I think the trick for us is to choose the ones that make the most sense going forward. So we think this is a massive market opportunity across the board as a potential to address the number of diseases really it's kind of a platform product.
On on Rofin.
What I would tell you that.
We have said before the peak market opportunity here is 300 million in gross prescription value.
Obviously, there's a gross to net discount that we need to manage and that's an ongoing process you kind of manage that through getting better coverage.
It also.
Looking at your how you adjudicate your co pay card so.
I think we showed nice growth with real fade in the second quarter, particularly.
Given that we had about 40 reps on average staffing our territories during the quarter.
Okay. Thank you very much.
Thank you and our next question will come via live with Abrams with Citi.
Your line is now open.
Good afternoon.
And Milano prepared remarks, you referenced the upcoming data for the warts program can you just comment on your within the context of your strategic review.
Can you comment on your commitment to the commercialization of this product assuming.
The data are positive.
And then secondly, a follow on question on fade.
Since we don't have the product perhaps you can.
Give us a sense of patient experience with the product.
And maybe some data points on the gross to net question.
Throughout the year and.
We fill rates.
To get a sense of.
Kind of the patient experience with the product. Thank you.
Sure.
Thanks Liam.
I think the patient experience has been quite positive we've heard that time and time and again, both from patients and physicians I think thats reflective of the Trx growth that we've seen and the expansion of our physician base in those.
Clicking through with an Rx is a new prescribers, we've seen steady growth. There. So we've been happy with that on the gross to net side as I mentioned before we have been in the range of 60% to 70 units we talked about.
In the early days, we continue to be in that range.
They are obviously varies leavers, one can pull to to get that lower.
And we're exploring those I think one of the most effective ways. It's just to get better coverage with the plans and we are talking to a number of those plans now as that transition has proceeded and I think there are opportunities to do that so.
We're encouraged by all those and Thats why we havent necessarily scaled up on on the Salesforce. You know we want to make sure that were driving profitable scripts and being mindful being mindful of.
Of.
The coverage in certain areas from a refill perspective, I think again the trx.
Numbers kind of speak for themselves we've seen good refill rates and that's one of the things in our messaging that we're trying to always improve that.
This this drug is really meant to be used chronically, it's not supposed to be used as a one off just to get rid of the redness. It really is supposed to use on a daily basis over long periods of time and that's that's the way we.
We expect it to to evolve.
And Jeff.
I have a couple of times is Jeff.
In addition to Neil's comments I think.
We also recently seen a new treatment guidelines published.
For the treatment of rosacea, which.
Include.
Products.
Local food for the treatment of persistent fischler FEMA.
And the fact that multiple products often have to be used to treat realization patients because they have multiple systems. So this has been part of our messaging all along and now it's supported by the most recent guidelines that came out.
And we hope that will increase the dialogue between the patient and the physician in terms of.
The use of growth and the truth.
And relative to your question on warrants. Our first job is to is to generate positive data. There. So we look forward to doing that and we will be giving more more color on what we're doing from a business perspective in the coming weeks as I mentioned before.
Thank you.
Thank you and our next question will come from the line of Donald Ellis with JMP Securities. Your line is now open.
Thank you good afternoon guys.
My question is about a row fade.
Correct me, if I'm wrong, but looking at the numbers it looks like at least in the near term and Todd grows that continuing to commercialize row phase is consuming cash.
Maybe could be used for some of your other interesting R&D programs.
Would you consider divesting rotate to generate cash from the sale as well as.
Save burning cash every quarter.
Sorry, I think there is some static there hopefully everybody can hear me, but.
So certainly in the early days of the launch one usually consumes cash.
You know in particularly in we're in six six months or so now and I think you can tell by some of our E. R.
Revise guidance said.
Weve ratcheted down some of the sales and marketing spend and I think the revenue growth that we've seen has been pretty good considering what we've deployed against the brand.
And as I kind of mentioned to live in the last question.
Part of doing an overall business review is looking at looking at everything looking at the commercial side of the business and the R&D side of the business and you know.
Just to be candid when you have your stock prices is in this position you have to you have to look at all these things and see where is it most efficient to deploy your capital with an eye on your cash runway.
So thats what were looking at.
Okay. Thank you very much.
Thank you and our next question will come from Tim Lugo with William Blair. Your line is now open.
Thanks for the question.
Going back to the strategic review art just sounds like.
You're expecting partnerships, maybe from one company that could be interested in the R&D assets versus another company, which may be interested in the commercial assets is this a correct way to think about it.
Yes, I think so Tim you know, we've always been pretty active in BD on both.
Acquiring and having a lot of connectivity within the space. So.
I think you know the universe with in the dermatology ecosystem has changed quite a bit over over the years and.
Hard to predict.
Uhhuh, who you might ultimately deal with on each of these sorts of assets, but.
Like I mentioned before with with particularly the LPC assets those studies are longer they're more expensive.
We're incorporating some re formulation work with the.
Both the oral and topical and we believe very strongly in both of those programs and we think.
Need some deeper pockets.
And if we can if we can monetize that along the way.
I think that can benefit the company.
In the short and the long term and allow us to more efficiently deploy the capital we do have into more efficient.
More efficient indications and trial design like things like a d. in some of the work we're doing with 84 50.
Okay.
And for the soft topical or can you just kind of review the confidence on why it should have better efficacy than five or two is it.
Obviously I assume there is some preclinical data pointing to that.
And are you still hitting the 123 subtype relatively in a similar fashion or is that kind of cargos between the programs.
Yes, good question so.
You know the the potency for the soft Jack is in the ballpark of the potency of five owed to and the selectively as we had mentioned before for Jack one three versus two is perhaps a little bit less selective there but.
We feel very good about the mechanistic basis of we know not just from our programs, but across both oral and other others topical programs that JAK inhibitors work very very well on both the anti inflammatory side and also on the bench and look we had a what I would refer to as a sub optimal solution for this study and we drove a 41.2% response rate that really.
His numerically better than anybody else is produced.
On that front and from a topical perspective in a long time, so we're quite confident that.
Mechanistically this makes sense and as I've mentioned before one of the value prop you want to have in a topic dermatitis as you want to be very safe and I think having a softer approach makes a lot of sense and I also think it makes a lot of sense to target those patients with more severe disease, which you could use the topical in.
As a complementary therapy to systemic therapy.
And.
It also use it in certainly be have utility in mild to moderate patients who works in moderate to severe.
Understood. Thanks for that clarity and maybe one last question looking.
I heard from awards data, that's always been discussed as a separate products separate SKU separate packaging prior distribution.
No however, Scott obviously under.
It would be.
Available for sale during the strategic review I assume.
Okay.
No one.
Company interested in taking on the scatter was kind of a ready made product once they obviously also.
The interest in in awards product, which no still.
Well it obviously have.
Maybe less competition in the market.
Yes, I think.
Yeah, that's a fair point I think that's a very reasonable scenario.
If thats something that we up to do.
Okay. Thank you for the questions.
Thank you and I'm showing no further questions in the queue. At this time. So now it is my pleasure and the conference back over to Dr., Neil Walker, President and Chief Executive Officer for any closing comments or remarks.
Thanks to everybody for joining the call with US Tonight, and we look forward to updating you as we make progress again in the coming weeks.
Good night.
Ladies and gentlemen, thank you for your participation on today's conference. This does conclude our program and we may all disconnect everybody have a wonderful day.