Exelixis Inc (EXEL) 2006 Q1 法說會逐字稿

Greetings, ladies and gentlemen, and welcome to the Exelixis first quarter 2006 financial results conference call.

[OPERATOR INSTRUCTIONS]. It is now my pleasure to introduce your host Mr. Charles Butler. Thank you, Mr. Butler, you may begin.

Hi, this is Charles Butler, Director of Corporate Communications at Exelixis. And joining me on today's call is George Scangos, President and CEO, and Frank Karbe, our CFO.

Before I turn the call over to George, I would like to briefly make a forward-looking statement. And please note that is in slide, in more detail on the slide, the following discussion contains forward-looking statements, such as our financial outlook numbers and anticipated time of our clinical trials. We are expressly disclaim any obligation to release publicly any updates or revisions to any forward-looking statements. With that, I will now turn the call over to George.

Thanks, Charles. And welcome, everybody to the call.

I think we had another good quarter and the first quarter of this year, and we continued our enrollment in the 999 Phase II program. We initiated the 784 Phase II program ande made good progress on our 647 and 880 to see can start those Phase II programs this summer and continued the aggressive development of our earlier pipeline as well.

As you may remember, we set ourselves an ambitious goal of beginning one Phase II program per quarter for several quarters in a row. We have accomplished that goal for the last two quarters, and we are reasonably close now to starting two additional Phase II programs for two of our compounds. I think as a sign of our progress that a year ago we were talking about IND filings and six months ago we were talking about Phase I programs, and now, by the summer, we anticipate having ongoing Phase II programs for four of our compounds.

Also during the quarter, we received antitrust clearance, with the LXR transaction with BMS and signed the MR collaboration with Sankyo. As a result our cash balance actually increased in quarter, and as you'll hear from Frank in a few minutes, we ended the quarter with nearly 220 million in cash. All in all, I consider this to be another excellent quarter. Any quarter in which we can make excellent clinical progress at the same time we increase our cash balance to me is a good quarter.

So let's take stock briefly of where we are. XL999, which is a inhibitor of VEGF, PDGF, and FGF is moving rapidly from six Phase II trials for colon, ovarian, and non-small cell lung and renal cancers, as well as multiple myeloma, AMMO. The program is enrolling as expected and we anticipate being able to present some data from these trials before the end of the year. In the first quarter we also started a Phase II double blind placebo controlled trial XL784 in Type II diabetes patients with proteinuria and the trial will include 130 patients all whom are on stable diabetes control and are being treated with ASE inhibitors, angiotension receptor blockers or both. The patients will be randomized, half will receive XL784, and the other half receive a placebo. Primary end point will be a reduction in proteinuria.

We're developing 784 for this indication, because in exploring the biology of this compound, which was originally identified actually as an anti-cancer compound, we appreciated its potential to reproduce both cell proliferation and fibrosis associated with renal and cardiac failure. These hypotheses were confirmed in a number of cell-based and pharmacological studies and the development of 784 I think exemplifies how we're a data driven company, by characterizing the biology of the compound and its targets, we were able to identify novel and potentially very interesting indications. Pre-clinical data are encouraging. The Phase I study demonstrated the excellent tolerability of this compound. And we're hopeful that 784 will provide a benefit to the growing number of Type Two diabetic patients with necropathy. Enrollment is on going and we patent having data from this trial in the first half of next year.

XL 647 is an exciting compound to that inhibits the EGF receptor, HER2, and VEGF. As you know, approved drugs that inhibit these targets individually already are providing benefits to the patients. And GSK's recent data on Ropatinate, which is an inhibitor of PGF receptor and HER2 are extremely encouraging about the combination of those two targets for the treatment of breast cancer. We believe that a compound that inhibits all three targets simultaneously has the potential to provide a substantial therapeutic benefit to patients.

The first Phase I trial for 647 is essentially at an end. The dose limiting [cox] with diarrhea, rash, known side effects of EGF inhibition. We anticipate at least three Phase II programs for 647, and first line nonsmall lung cancer and metastatic breast cancer and in relapse responders. We anticipate that this program will get under way in the summer.

XL 880 also will enter a Phase II program this summer. This compound is a potential first in class place inhibitor of met. It's orally available. And it's excellent pharmaco kinetic and pharmaco dynamic characteristics. The Phase I study is still ongoing, but we believe that we are re near the end and certainly we'll move XL 880 in the Phase II programs in the next couple of months. We have three trials planned initially, one in capillary renal cell carcinoma and one in gastric cancer and one in head and neck cancer and there are good data for the involvement in met in all three of these kinotypes.

Data from Phase I trial for 647 and 880 will be presented at the upcoming ASCO meeting. We have an aggressive goal of having some Phase II data for XL 999, 647, and 880 by the end of the year, and we anticipate starting an additional Phase II program for 820 toward the end of the year. Our three programs have preclinical development, XL228 which inhibits the IGF-1 receptor and able, XL 418 which is HTK and XSK, and XL 281 which is specific rap inhibitor, all are progressing well. And we anticipate filing INDs for these compounds in the third and fourth quarter.

Additionally, we brought in another two compounds into preclinical development, XL518 which inhibits a kinase called mek and XL 147 which inhibits PI3. Ease of these targets has significant potential for the treatment of cancer and we're excited about these and our other early programs as well. Our discovery and development teams have been pretty busy and of course the people on the business side of the company have to keep pace.

We executed a number of interesting transactions during 2005, concluding with two transactions with BMS and Wyeth, in December for compounds in our preclinical pipeline for metabolic and cardiovascular disease. We started off 2006 by announcing a collaboration with Sankyo in the cardiovascular disease area. Collaboration is focused on developing novel therapies which treat mineralocorticoid, which target the mineralocorticoid receptor. We received a $20 million up front payment when the agreement was signed and we will receive additional research funding plus of course the possibility of additional milestone payments and double-digit royalties on the sale of any products that are commercialized under the collaboration.

Collaborations with BMS, Wyeth and Sankyo all stem from programs that were initiated by Acceptor, a nuclear hormone receptor company that we acquired in 2004. By combining the expertise at Acceptor with the drug discovery power at Exelixis, we were able to rapidly generate compounds that are high quality and meet the stringent due diligence requirements of major pharmaceutical companies.

At this point, I will turn the call over to Frank, who will go through our numbers. And I will come back at the end and make a few concluding remarks. Thanks.

Thank you, George. Well, successful performance on the business side is reflected in our strong financial results for the quarter. And a very healthy financial position at the end of Q1 '06.

Let me give you some of the highlights. As compared to Q1 '05, we kept our net loss flat, despite significantly expanding our clinical trial activity, and absorbing close to $5 million in stock based compensation exception following our adoption of FAS 123-R in January of this year. We have been able to do this due to the significant increase in our revenues as a result of our business development activities during the last nine months. We also continue to see the benefits of our financing arrangement with Symphony capital which funded a significant portion of the increase in our development expense during the first quarter. Furthermore, we have significant cash inflows from our collaborations with BMS and Sankyo during the quarter resulting in an increase in our cash balance as compared to the beginning of the year.

With that, let me now turn to our financial results in detail. And as usual, we are reporting results both on a GAAP and non-GAAP basis and a reconciliation of GAAP results to non-GAAP results is contained in our first quarter press release which is posted on our Web site at www.Exelixis .com.

Let's begin with net loss. Net loss on a GAAP for Q1 '06 was 27.1 million, or $0.32 per share compared to 27.4 million, or $0.36 per share for the comparable period in '05. These GAAP results include for the first time stock-based compensation expense. Following our adoption of FAS 123-R, as of January 1, 2006. Non-GAAP net loss for the first quarter was 22.2 million, or $0.27 per share, compared to 27.2 million, or $0.36 per share for Q1 '05. Revenues for Q1 '06 were $18.1 million, up 40% compared to 12.9 million for Q1 '05. The increase in revenues from '05 to '06 reflects our successful business development activities and was primarily due to our new collaboration agreements with Bristol-Myers Squibb, Wyeth, Genentech, as well as decreased revenues from Artemis, our German subsidiary.

This increase was partially offset by the conclusion of our [Genanto] collaboration and first Sankyo collaboration in 2005. Research and development expenses for the first quarter '06 were 39.9 million, compared to 33.3 million for Q1 '05. The increase from '05 to '06 was primarily due to the inclusion of stock-based compensation expense of $3.1 million, related to our adoption of FAS 123-R, as well as increased development expenses associated with advancing several compounds through preclinical development and further expansion of our clinical trial activity, most notably the initiation of multiple Phase II studies for XL 999.

I would like to point out that 3.5 million of the increase in R&D expenses has no impact on our net loss, and that it is funded through our arrangement with Symphony capital. General and administrative expenses for Q1 '06 were 9 million compared to 6.2 million for the first quarter in '05. The increase from '05 to '06 was also primarily due to stock-based compensation expense of $1.5 million related to our adoption of FAS 123-R. As well as higher consulting and personnel-related expenses to support our expanding operations. Most notably, we've added head count in finance, operations, human resources and strategic marketing to support our rapidly expanding operations.

Cash, cash equivalents, marketable securities, investment by Symphony evolution and restricted cash and investments totaled $219.5 million at the end of the quarter, compared to $210.5 million at the beginning of the year. I would like to spend a moment covering the impact to our financial statements in 2006 of the various collaborations we've recently announced. The collaboration with BMS focus on our XL program became effective following anti-trust clearance on January 13 of this year. Under this agreement, we received an up front payment of $17.5 million which will be recognized as revenue over a three-year period starting at the effective date. We will also receive $10 million in R&D support per year for a period of two years which will be recognized as revenue over the two years.

Our collaboration with Wyeth, focused on our FXR program, became effective on December 21, 2005. We have received an up front payment of $20 million which will be recognized as revenue over a 12-month period. Again, starting at the effective date. There is no R&D support under this collaboration. And finally, the collaboration with Sankyo focusing on our MR program became effective on March 20, 2006. Under this agreement, we have also received an up front payment of $20 million which will be recognized as revenue over a 15-month period starting April 1, 2006. In addition, we will receive some R&D support over the same 15-month period.

Under all three of these new collaborations we also are entitled to significant milestone and royalty payments, the majority of which will however not impact our financial statement until future years. As I mentioned, we have adopted FAS 123-R as of January 1, 2006, and I would briefly like to highlight how this new accounting standard impacts our financial reporting. We have adopted the new standard under the modified prospective method, meaning we have not restated results for prior periods and therefore our GAAP results in 2006 may not be completely comparable to prior years. For the full year '06, we estimate stock-based compensation expense in the range of 15 to $20 million. In our GAAP reporting, these expenses will be reported separately for R&D and G&A. And throughout '06, will constitute a significant portion of the increase in expenses as compared to the comparable periods in '05. Total stock-based compensation expense for Q1 '06 amounted to $4.6 million, or $0.05 a share of which 3.1 million were allocated to R&D and 1.5 million to G&A.

Finally, I would like to comment briefly on our financial outlook for the remainder of the year and in particular highlight a couple of Q2 events. First, as many of you know, we have a $30 million convertible note to PDL which matures in May of this year. We have evaluated various alternatives how to deal with this note and currently anticipate paying the note from our existing cash reserves at the maturity date. Second our financing arrangement with Symphony capital allows us to draw an additional 20 to $40 million by June 9, 2006, which marks the first anniversary of the deal. We currently anticipate drawing the full $40 million to fund the stage two clinical trials for XL 999, 647, and 784.

And thirdly, our year-end financial guidance which we provided in our last earnings call remains unchanged. As a reminder, please note that our operating expense guidance is on a non-GAAP basis, and therefore executing or stock based compensation expense of 15 to $20 million, as well as other non-cash charges of approximately 1 million. So in summary, I will say while we are aggressively funding the expansion of our clinical and pre-clinical activities, the company is in a solid financial position with about $220 million in cash at the end of the first quarter '06, and an additional $40 million in committed funding to be received from Symphony Capital during the second quarter.

With, that I will turn the call back to George.

Okay. Thanks, Frank. It is -- look, it is really good to be able to report positive results for another quarter and I just want to make a few comments in conclusion.

In particular, I would like to address a couple of issues which a number of you have asked over the past few weeks or months. And the first one of them is the amount of partnering that we've done. And I just want to point out that we have more than 20 compounds in clinical development, preclinical development, and lead optimization, and of those 20, six are partnered. And one each with BMS, Wyeth and Sankyo and as you know GSK has up to three picks as part of their collaboration. So that leaves 14 compounds that are currently on the table that are or will be wholly owned by Exelixis.

The point is we can do a lot of partnering because we have a lot of assets. An even with a lot of partnering and the cash that we've received as a result, we have a lot of wholly-owned assets remaining. This will continue to be true as long as our discovery and development groups keep up their remarkable productivity and efficiency that we've demonstrated over the past three years. And I fully expect that they will do so. As long as that productivity continues, we will be able to continue to partner some of our compounds to generate near-term cash while retaining others to generate long-term revenue. Importantly, as we move forward, we intend to retain increasingly larger stakes even of compounds that we do partner.

Second, I want to address kind of a risk/benefit ratio. Many companies at our stage have one, two, three compounds in clinical development, and speaking personally now, I find it disconcerting to work in such a company. Since with the attrition rates that we all know, it is entirely possible that none of those compounds would provide a long-term basis for the company. And I think at Exelixis, we fundamentally changed that metric. We have 14 home-grown compounds in development, and we're bringing in a minimum of three new compounds into development each year. With so many programs, the failure of any compound is not a devastating event for the company. And in very direct ways that has an impact on decision making and on quality.

We have a lot on our plate. And rather than finding excuses to keep compounds moving forward, we're actually looking for reasons to prioritize projects. That philosophy leads to an overall higher quality pipeline, which means that we not only have more shots on goal, as some of you put it, but that each shot is on average of higher quality. And in a hockey analysis, we're not taking shots from the blue line, we're shooting from the crease. If you're a basketball fan, we're not lobbing up shots from beyond the three point line. We're shooting from the paint. So the quality of our compounds is supported I think by the low attrition rates that we've had.

We have extremely demanding criteria, and actually very high attrition rates early in our drug discovery process. So that we only bring in to development compounds that have been thoroughly tested for efficacy, safety, PK, PD and a number of other criteria. The result, is that we haven't had any attrition from development candidate through Phase I. And although it is unrealistic to expect this 100% success rate to continue indefinitely, I think the high success rate is reflective of the quality of the compounds and the amount of the work that we put into them.

So we have a situation where the failure of any compound isn't devastating. Where the success of any compound can drive substantial upside, and where there are enough high quality compounds so that success is highly likely. And as you can see from Frank's presentation, we continue to be able to fund the aggressive development of the pipeline. So what's not to like about that picture?

So finally, I just want to conclude by playing out what we're going to do for you for the rest of the year. As I mentioned earlier, we expect to initiate Phase II clinical programs for XL 647 and 880 this summer. We also expect to initiate a Phase II program for XL820 by the end of the year. We're on track to file INDs for three new compounds in 2006 and three more in 2007. We have already brought two new compounds into development this year, and we anticipate an additional one or two by year end.

In terms of upcoming data presentations, we will have data from the Phase I trials of 647 and 880 presented in poster discussion sessions at ASCO next month. We will be posting information about our activities at ASCO on the Web site and I hope those of you who attend the conference will be able to join us for at least some of the events. We are hosting an analyst investor briefing at ASCO to discuss XL 647, 880, and 999 data. This event will be held at the Marriott Marquis on Saturday, June 3rd at 6:00 p.m. and we will send out invitations later this week. so later in the year, we expect to have additional data fra the ongoing Phase I trials and Phase II trials for 999, 647, and 880. There also are some interesting potential business development opportunities ahead of us, which have the potential to bring in substantial near-term cash while allowing us to retain most of the long term value of our pipeline, and we're aggressively pursuing those professions.

Finally, I just want to thank all of our employees, many of who are listening to the call, I think. It is their hard work, talent, and dedication that has allowed us to make the remarkable progress that we have. So with that, I will conclude my remarks and we'll open up the call for questions.

Thank you. [OPERATOR INSTRUCTIONS].

Okay. Well I gather from the silence that there are no questions. So either no one heard us, or we've been very clear. But in any case, if there are no questions, let me just --

Excuse me, sir, we do have a question from Mr. Edward Tentoff of Piper Jaffray. Please proceed with your question.

Hi, guys, ow are you? Actually I just think I wore out the star one buttons on my phone. I'm not sure if they were having a little technical difficulties here but I have a feeling there may be some other questioners out there.

I was a little surprised.

Exactly. So firstly, just congrats on a great start to the year. I was a little surprised there may not be anything for 999 or even anything initial on 820 at ASCO. Can you just give us an update on sort of what, did we see all of the Phase I data on 999, how is 820 progressing in Phase Is, and then obviously give us a nice amount of detail about the Phase II 647 and 880 this summer.

Sure. Let's see. 999, we -- a lot of the Phase I data was presented at the ORTC meeting in November. We have some additional Phase I data, as you know, we've switched from every other week dosing to weekly dosing and we have some more data from the weekly dosing. And you know at the time, I think that the ASCO abstracts were due a number of months ago, and the amount of new data on 999 actually was pretty limited.

We have a lot more data now, and we will discuss some of those data actually at the analyst and investor and analyst/investor briefing that will be held on that Saturday evening, although they won't be presented at the ASCO meeting itself. 820 is ripping along through Phase I. It is doing very well. We -- there won't be any 820 data at ASCO, right, and we will get that data out in one form or another. We have a substantial volume of data. And 880 continues to look --

Okay. Great. Look forward to seeing you then.

Thanks.

Thank you. Our next question comes from the line of May-Kin Ho with Goldman Sachs. Please proceed with your question.

Thank you. Hi, George. I do think there was a technical problem with the buttons.

Okay.

But anyway, on 784, can you tell a little bit about the trial design? Because of the inclusion criteria, and how much reduction you are looking for? I asked that because obviously this is a very heterogenous population of patients.

Yes, it is, May-Kin. And I'm glad to hear there was a technical problem with the buttons because I don't think I have been on a call with a number of analysts with no questions. Well, anyway, let's talk about 784, the inclusion criteria is that all of the patients be under stable diabetes control in terms of hemoglobin A1C level. And that are being treated with either ace inhibitors, angiotension receptor blockers or both. And we are taking patients and actually I don't remember the numbers, May-Kin, but we're taking patients kind of mid stage patients but they're not patients a who are very early and we excluded the very late stage patients that may be too far gone. The microalbunim patients may progress too slowly and the very late stage patients might be difficult to really help them, so we've taken the mid-level patients. And we're looking for a decrease in proteinuria in the group treated with the ASE inhibition, and 784, versus ASE inhibition alone.

And in terms of reduction, what are you looking for?

You know, you got me. I don't -- I knew that number and I don't remember it right now, May-Kin. I will get you that number. I just forget. Obviously, the size of the trial, with 65 patients in each arm, is based on the amount of reduction that we're looking for. I just don't remember what that number is.

Okay. And on 647, if I remember correctly, there was -- I think one case of QT prolongation.

There was one case that's correct.

What is the dose that you have now going to be using in Phase II and does that encompass that one case?

We did the Phase I trial on a milligram per kilogram basis. And we have switched over to a fixed dose, which is now 350 milligrams per patient to go forward in the phase two trial. And that dose is actually above the level where we saw the QT prolongation. But we've dosed a lot of patients now, at that level, and above, and we haven't seen any other cases.

But how many doses will you be testing in Phase II?

Just that one.

Okay. All right. Thank you very much.

Thank you. Our next question comes from Mr. David Witzke of Banc of America Securities. Please proceed with your question.

Yes, thanks. Good afternoon. I recall have you a PI3 kinase inhibitor, hot target, where are you versus the competition moving toward the clinic, I guess by your assessment, and I believe this falls outside the GSK relationship. Is this accurate?

Yes, that is accurate. But -- and I will answer your question. Let me just go back to May-Kin's question and make one more comment about the dosing in the Phase II trials for 647. The 350-milligram dose is an intermittent schedule, where we dose five days on and then give the patient nine days off and come back and they get five days every two weeks. We will go forward as well with a daily dosing schedule of 647 and so we will do both intermittent and daily doses for 647. So we will actually have two different dosing regimens that we will be testing.

In terms of the PI3 kinase inhibitor, we actually have two of them. One of them is a specific PI3 kinase inhibitor and the other one inhibits both PI3 kinase and mTOR, And the PI3 kinase inhibitor has entered preclinical development now. The other one is about to and so we anticipate filing INDs on both of those early next year, and moving them rapidly through the clinic. They are -- both compounds are outside of our collaboration with GSK, that's true.

And George, where is this on a time line from big pharma companies pursuing this target in both large biotechs.

PI3 kinase is a very hot target right now and it has been a very difficult target I think for a lot of companies to address and find good compounds against. Our compounds seem to be very interesting. They're specific. They are -- we have really good data packages. There is a lot of interest in those compounds from a number of companies. And we're having some discussions, we will see where we go.

Okay. And then on the Phase II data packages for GSK's potential option, do you think you will have 647 or 999 first? To present them?

Do I think we will have one of those two first or which of those two?

Which of those do you think is first?

Sorry. Well, 999 has been in the Phase II program now for some -- a couple of months, at least and 647 is, will start in a month or two. So 999 is a few months ahead of 647 at this point.

And is it still potential option by year end or how should we think of the time line?

That's certainly our -- the goal to which we're working. I think part of the -- we can push the enrollment rates, and we can -- which we're doing, obviously, and be very aggressive about getting patients enrolled. And we will do that as quickly as we can, and then we will present that data package to GSK. We obviously want to do that as soon as we can, and our goal is to certainly get there by the end of the year.

Great. Thank you.

Thank you. Our next question comes from [Ms. Constance Hsiao with Cowen.] Please proceed with your question.

Hi, thank you for taking my question. In terms of the PI3 kinase and and when will we see the preclinical data? Will you be presenting that this year?

We will probably present some of it, yes. I would say we will present some of the data this year as various scientific meetings that are going on and I think we have already presented some of the preclinical data.

Okay.

I'm hesitating a bit because I'm trying to think if we -- I think I have, I I'm not sure but yes we will get some of those data out over the course of the year.

And then I guess maybe if you could review again what factors go -- will go into your decisions toward prioritizing these compounds now that you have such low attrition rate, and I imagine it becoming more and more difficult, particularly for -- in terms, I guess of which ones you plan to take into the clinic and perhaps a little bit more aggressively than others.

Well, I think for the early compounds that have not entered the clinic, you prioritize those based on what you know about the targets, and the degree of confidence you have that the targets will have an impact on various tumor types, on the state of the competition, on whether we think we have an advantage or not. But, really, we are pushing all of the preclinical forward very aggressively, because, I think the only way you can really tell is to get some human data. And so the way we will really prioritize our compounds, we're not really limited in preclinical development or Phase I studies, I think where we really will have to prioritize is later on in clinical developments and there we're going to let the data drive the compounds, and you know, for compounds like 999, 647, which hit validated targets, where there are other compounds, we are -- we do believe, and we will have to continue to believe that they have a real advantage over other compounds. And for compounds like 880, or 784, which are kind of first in class inhibitors, obviously those have different reasons for being aggressive and moving forward. But we're very a data driven company here and we will make decisions when we have data.

Great. Thank you.

Thank you. [OPERATOR INSTRUCTIONS]. Our next question comes from Mr. Patrick Flanigan of WR Hambrecht. Please proceed with your question. Mr. Flanigan, your line is live.

Hi, can you hear me?

Yes.

I was wondering if you can give us an update on 184 and 844? Where do you stand in Phase I and when can we expect to see the data?

184 is progressing well through Phase I trials, we're kind of the in the middle of that trial, and we're still in a dose escalating phase. Very interesting compound, I can tell you, it has good pharmaco kinetics. It has good pharmaco dynamics. So far it is proportional. It is orally available. Everything looks good for 184 so far but we haven't hit some of the -- we're still in the dose escalation phase.

So I don't think -- I think we certainly should -- let's say in a normal trial, we would get to dose and tox over the course of this year and I fully expect we will do that with 184, and the only caveat you don't know when you hit does and main tox until you hit it, and so -- and each cohort escalates. But that's on track and looking good. I think 844, that trial is enrolling -- actually, that's the trial that's enrolling a little more slowly than we had hoped it would be. It is progressing, and we hope to have data later on this year as well. But that's a little earlier in its Phase I program.

Okay. Thank you.

Thank you. [OPERATOR INSTRUCTIONS]. There appear to be no further questions at this time.

Okay. Well, maybe this time there really are no more questions. So look, I want to thank everybody. I can tell you we're generally -- not generally, but we're genuinely really upbeat right now, about the way the company is going, and the compounds and the rate at which they're moving through the clinic and we know everybody is waiting for data, so are we, and we fully are -- we're pushing as hard as we can to get Phase II data from three compounds, even the end of this year, the Phase I data from our other compounds we will get those data out as well. We're looking at not only towards ASCO but towards ASH and ORTC towards the end of the year as places over the course of the year to let out other data and there will be other meetings over the course of the year as well. So we will keep pushing and I thank everybody for your attention. And I guess we will conclude the call. Thank you.

Thank you. Ladies and gentlemen, this concludes today's teleconference.

You may disconnect your lines at this time.