EyePoint Pharmaceuticals Inc (EYPT) 0 Q0 法說會逐字稿

Good morning.

My name is Amanda, and I'll be your conference operator today.

At this time, I would like to welcome everyone to the EyePoint Pharma's Fiscal Period Ended December 31, 2018 Financial Results Conference Call.

(Operator Instructions) Please be advised that this call is being recorded at the company's request.

I would now like to turn the call over to Mr. David Price, EyePoint's Chief Financial Officer.

Thank you, Amanda, and thank you all for joining us on today's conference call to discuss EyePoint Pharmaceuticals' fiscal period ended December 31, 2018 financial results and recent corporate developments.

With me today is Nancy Lurker, EyePoint's President and Chief Executive Officer.

Nancy will provide an overview of the recent progress made on our commercial and pipeline programs as well as highlight upcoming milestones.

I will then provide an overview of the 3 and 6-month financial results for the fiscal period ended December 31, 2018.

We will then open the call up for your questions.

Earlier this morning, we issued a press release detailing the financial results as well as commercial and operational developments.

A copy of the release can be found in the Investor Relations tab on the corporate website www.eyepointpharma.com.

Before we begin our formal comments, I'll remind you that various remarks we will make today constitute forward-looking statements for the purposes of the Safe Harbor provisions under the Private Securities Litigation Reform Act of 1995.

These include statements about our future expectations, clinical developments and regulatory matters and timelines, the potential success of our product candidates, financial projections and our plans and prospects.

Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in the Risk Factors section of our most recent annual report on Form 10-K, which is on file with the SEC and in other filings that we may make with the SEC in the future.

Any forward-looking statements represent our views as of today only.

While we may elect to update these forward-looking statements at some point in the future, we specifically disclaim any obligation to do so even if our views change.

Therefore, you should not rely on these forward-looking statements as representing our views as of any date subsequent to today.

I'll now turn the call over to Nancy Lurker, President and Chief Executive Officer of EyePoint.

Thank you, David.

Good morning, everyone and thank you for joining us.

2018 was a transformative year for EyePoint Pharmaceuticals as we transition from a technology-driven R&D company into an integrated commercial stage, specialty biopharmaceutical company, with 2 products now launched in first quarter 2019 for the treatment of ocular diseases.

These accomplishments are significant milestones for our company as they represent the first product that we have commercialized ourselves since our formation.

Our achievements are a direct reflection of our talented and dedicated team, who've worked tirelessly to ensure we are in a position for successful launches of both YUTIQ and DEXYCU in their respective markets.

In February of this year, we launched YUTIQ, fluocinolone acetonide intravitreal implant 0.18 milligrams in the United States for the treatment of chronic noninfectious posterior segment uveitis.

YUTIQ is our internally developed intravitreal micro-insert that is designed to consistently release fluocinolone for up to 36 months.

Recall that YUTIQ is derived from our proprietary Durasert sustained release technology platform, that has led to such marketed products as ILUVIEN, licensed to Alimera Sciences, as well as Retisert and VITRASERT, licensed to Bausch & Lomb.

Noninfectious posterior segment uveitis represents the third-leading cause of blindness in the U.S. One of the main issues with corticosteroids, the current standard of care, is the lack of long-term compliance, which often results in the recurrence of inflammatory uveitis eye flares that can ultimately lead to blindness.

In clinical studies, YUTIQ significantly reduced the number of inflammatory uveitis eye flares due to its ability to deliver drug for up to 36 months.

Current treatments today last anywhere from 1 month with generic steroids and many systemic drugs to 2 to 3 months from our commonly used intravitreal treatment and up to 24 months with Retisert, which requires insertion in a surgical suite.

The longer duration of YUTIQ, coupled with its physician office administration, should significantly improve patient compliance in this very serious disease.

In addition, YUTIQ also delivers drugs consistently every day and avoids the ocular drug level peaks and valleys that often occur with current treatments today.

Consequently, YUTIQ's clinical data and product profile have been very well-received by retinal and uveitis specialists, who've been highly supportive of this new treatment and expect YUTIQ to be a significant new addition to their treatment protocol for noninfectious posterior segment uveitis.

On the commercial front, YUTIQ is currently available today for ordering and delivery to physicians, and I'm pleased to report that initial field reports suggest we are off to a strong start.

Reimbursement is obtained today from an existing J-code and we have also filed for a new permanent and specific YUTIQ J-code, which if granted, will take effect January 1, 2020.

Currently, payers are approving reimbursement for YUTIQ with minimal prior authorization requirements.

This is primarily due to the fact that YUTIQ treats an extremely serious disease that can lead to blindness and it's modestly priced.

Based upon the existing J-code, the wholesale acquisition cost for YUTIQ is approximately $8,340.

In conjunction with YUTIQ's product launch, we also introduced EyePoint Assist, a program to ensure access to YUTIQ for eligible patients in need of financial assistance.

I will go into more specifics of our launch effort shortly as many of our YUTIQ activities are complementary to our DEXYCU initiative.

DEXYCU, dexamethasone intraocular suspension, is our second ophthalmology product launched just this week for postoperative ocular inflammation.

We are very excited to have launched DEXYCU and to now have 2 innovative ophthalmology drugs on the U.S. market.

Our primary market focus for DEXYCU is for treatment immediately following cataract surgery.

Recall that DEXYCU was acquired as a result of our acquisition of Icon Biosciences in March 2018 and it utilizes the proprietary Verisome sustained-release technology.

We believe DEXYCU has the potential to alter the treatment paradigm for postoperative ocular inflammation through a single injection at the end of cataract surgery that provides a tapered release of dexamethasone over 22 days, very similar to how steroid drops are administered.

DEXYCU can potentially avoid the inherent pop patient compliance risk, with the current complicated steroid drop regimen that typically is administered over 4 weeks and can require up to 4 drops a day, with the taper down to 1 drop a day over 4 weeks.

In the U.S. alone for 2018, there were approximately 4.8 million cataract surgeries.

This is an 11% growth over 2017 and demonstrates how rapidly this market is growing as a result of the aging baby boomer population as well as propensity for cataract surgery to be conducted earlier in the disease due to the great technological advances in the surgery process itself.

There is a high, unmet medical need among patients who undergo cataract surgery and physicians as this current standard of care to treat inflammation post eye surgery is extremely challenging and requires a burdensome eyedrop schedule.

Cataract surgeons have expressed a strong interest and intent to use DEXYCU due to its ease-of-use and nondisruptive process.

Physician product training is currently underway, with an initial focus on our top key opinion leaders in the U.S., rolling out to a broader group of physicians over the next number of weeks.

This stage launch for DEXYCU is strategically designed to ensure appropriate, initial training for the physician and other members of the ambulatory surgical suite and follows these practices when administering drugs or new medical devices in the surgical suite.

As previously reported, reimbursement for DEXYCU was secured in November 2018 through the issuance by CMS of a specific and permanent J-code, J1095, through the health care common procedure coding system that became effective on January 1, 2019.

As we previously mentioned, DEXYCU has been granted 3-year transitional pass-through status for the purposes of Medicare Part B reimbursement.

As a result of the issuance of this specific J-code, reimbursement by Medicare Advantage and other commercial plans has become more straightforward, and our market access team is working with all payers to secure reimbursement.

The wholesale acquisition cost for DEXYCU is $595.

Our internal sales and marketing organization is led by Tom Hadley, our Vice President of Marketing and Sales; and Eric Toppy, who heads up our Market Access Team.

Both Tom and Eric joined EyePoint early last year and bring extensive experience in executing on highly successful commercial pharmaceutical launches.

They have assembled a very experienced and deeply talented commercial team, which includes impressive sales leadership and a total of 44 key account managers, in addition, field reimbursement managers, national account directors and field leadership.

The key account managers, or KAMs, have been hired through our contract sales organization.

All 44 KAMs, 10 for YUTIQ and 34 for DEXYCU, are dedicated specifically to their respective products.

Recruitment and training of all KAMs has been completed and they're all active in the field as we speak.

The 10 YUTIQ KAMs are dedicated to calling on uveitis and retinal specialists.

The 34 DEXYCU KAMs are focused on high-volume ambulatory surgery centers for DEXYCU and high-volume cataract surgeons.

We are pleased to report that patients have already been treated with both products.

We're excited about our product launches thus far, and the interest in physicians and patients alike has generated a significant buzz and level of interest across the ophthalmology community.

Our medical education plan supports the sales and marketing efforts with our fully staffed medical science liaison team and medical affairs group that continues to expand our presence at key congresses as well as proactively plan publications for continued dataflow to the greater medical community We look forward to updating you on our promotional progress on our next quarterly call

In addition to executing on 2 product launches, we continue to work on the development of our pipeline of early and late-stage opthalmolic products.

This year, we anticipate filing a line extension application for our short-acting 6-month YUTIQ, which would provide dosing options to physicians when treating noninfectious posterior segment uveitis.

Our preclinical pipeline includes a sustained-release bio-erodible device contained in the tyrosine kinase inhibitor, or TKI, which is currently being studied in preclinical efficacy and safety studies in animal models for wet AMD.

Should these results be positive, we plan to continue additional preclinical studies throughout 2019.

While we are focused on advancing our commercial products in clinical pipeline, we also continue to seek out opportunities through business development activities to augment our product pipeline and bring in new ophthalmology treatments for areas of high unmet medical need in the ocular disease space.

From a corporate standpoint, we recently announced the appointment of Dr. David Guyer, the current Executive Chairman and Cofounder of Opthotech Corporation, biopharmaceutical company specializing in gene therapy treatments for ocular diseases to our Board of Directors.

Dr. Guyer is a well-regarded ophthalmology entrepreneur, having led several applicant public and private biotechnology companies, focused on diseases including ITEC Pharmaceuticals until it was acquired by OSI Pharmaceuticals.

We welcome him to our team and look forward to benefiting from his extensive experience in the ophthalmology drug development space.

Separately, we also announced the appointment of Ron Honig in the newly created role of Senior Vice President, General Counsel and Company Secretary.

Ron brings more than 25 years of legal experience in the medical device, biotechnology, contract manufacturing and legal services industries.

In this new role, Ron will oversee the company's legal activities, including the legal aspects of licensing, compliance, strategic transactions and business development.

With that, I will turn the call over to David to review our financial results.

David?

Thank you, Nancy.

As a reminder, our Board of Directors approved a resolution to change the company's fiscal year end from June 30 to December 31.

EyePoint believes this change of its fiscal year will align its financial reporting periods to that of our peer group in the industry and better facilitate the assessment of our financial performance.

Within the next few days, we will file audited financial statements on Form 10-K for the 6-month transition period ended December 31, 2018.

The financial results that I will now review are included in our press release that was issued this morning.

As of December 31, 2018, cash and cash equivalents totaled $45.3 million compared to $38.8 million as of June 30, 2018.

Net cash used from operations for the 6 months ended December 31, 2018, totaled $22.6 million compared to $11 million in the prior year 6-month period.

There were approximately 95.4 million common shares outstanding at December 31, 2018.

Now turning to the income statement.

For the 3 months ended December 31, 2018, revenues totaled $2.4 million compared to $933,000 for the 3 months ended December 31, 2017.

The revenue increase was primarily attributable to the recognition of $1.7 million from the upfront license fee received from Ocumension Therapeutics, related to the November 2018 app license of Durasert 3-year uveitis for the greater China region.

Operating expenses for the 3 months ended December 31, 2018, increased to $13.4 million from $6.7 million in the prior year period due to the -- primarily to ongoing build of our sales and marketing infrastructure as well as program costs, professional services, stock-based compensation and the amortization of a DEXYCU intangible asset.

Nonoperating expense net for the 3 months ended December 31, 2018, totaled $589,000 and consisted of interest expense on the SWK term loan, net of interest income from cash equivalent investments.

Net loss for the 3 months ended December 31, 2018, was $11.6 million or $0.12 per share compared to a net loss of $5.8 million or $0.13 per share for the prior year quarter.

For the 6-month transition period ended December 31, 2018, revenues totaled $2.9 million compared to $1.3 million for the prior year 6-month period.

The revenue increase was primarily attributable to the aforementioned Ocumension upfront license fee and higher royalty income on their existing collaboration agreements.

This was partially offset by the absence in 2018 of revenues from feasibility study agreements.

Operating expenses for the 6-month transition period ended December 31, 2018, increased to $27.5 million from $13.1 million a year earlier, due primarily to the expansion of the company's leadership team, building our sales and marketing infrastructure as well as program costs, professional services, stock-based compensation and the amortization of the DEXYCU intangible asset.

Nonoperating expense net in the 6 months ended December 31, 2018, totaled $20.2 million and consisted primarily of an $18.9 million noncash change in fair value derivative liability as well as interest expense on the SWK term loan.

Net loss for the 6 months ended December 31, 2018, was $44.7 million or $0.53 per share compared to a net loss of $11.8 million or $0.28 per share for the prior year 6-month period.

Last month, we announced that we entered into a $60 million debt facility with CRG, which enabled us to retire existing debt and to provide additional working capital to support our ongoing product launches as well as our general operations.

The initial borrowing under this new facility was $35 million, of which approximately $23 million was used to repay principal prepayment and exit fees and other costs associated with the secured term loan obtained from SWK Funding LLC in March of 2018.

EyePoint has the option and the sole discretion to borrow up to additional $15 million under the CRG facility prior to June 30, 2019, and a further $10 million should the company achieve certain sales milestones from our 2 commercial products on or before March 31, 2020.

We believe that current cash and cash equivalents position is sufficient to fund operations and debt obligations through the end of this year.

In our future calls, we'll be providing more information with regards to the metrics we will disclose to measure the progress of our 2 product launches.

I'll now turn the call back over to the operator for your questions.

Amanda?

(Operator Instructions) Our first question comes from the line of François Brisebois of Laidlaw.

I was just wondering, the first question here was, the launch of DEXYCU, in particular, was so late in the quarter.

Can you just talk a little bit about expectations for top line in the first quarter '19?

And you mentioned the process of educating physicians [in] the sales, just so we can have an idea here.

François, thank you for that.

Yes, we'll have David answer that question.

So go ahead, David.

Great.

Thanks, François.

Yes, as you say, we've launched DEXYCU this week, only a couple of weeks left in this quarter.

And as we've been saying, we want to make sure that all of our physicians who we work with are capable and trained appropriately with regards to DEXYCU and insertion of DEXYCU as well as helping the officers ensure that they can prepare it appropriately.

So we're doing what we call in-service visits, and as a result of that training, I anticipate that over the next few weeks, our revenues will be minimally associated with DEXYCU and really, it will be a second quarter revenue kick.

Okay, great.

That's very helpful.

And then in terms of OpEx, you had a nice little pullback in R&D.

Obviously, you guys are transitioning from more of an R&D to a commercial company.

But how should we think about this, going forward, along the operating expenses?

Yes, that's a good question.

What we're expecting is that if you recall, we are continuing on the 3 years that is now winding down through YUTIQ.

So as a result, you should start to see those costs come down in 2019 substantially from 2018 on the R&D front.

We do expect that we will be moving faster and with a little more expense on the TKI program.

However, that will probably still stay in the preclinical stage, which as you know, is not as expensive.

So, overall, 2019, we would see a lower R&D cost, but then if we continue forward with the TKI program, which we anticipate we would, you'd see that pick back up again in 2020.

Okay, great.

And then just lastly, you guys talked about a strong start already to YUTIQ.

I was just wondering what metrics we could be looking at in order to track this launch?

Yes, I'll give you one metric that we watch very closely and, again, I'm not going to give you numbers today, but this will be one, certainly, we would give you, going forward, which is the amount of physician demand that's coming in.

We call those benefit investigations.

So we have a hub on YUTIQ and virtually every physician and their offices are submitting reimbursement clearance, so to speak, through our hub.

And our hub is the one that will make sure that the patient qualifies for reimbursement and then, of course, if they don't, we have our EyePoint Assist Program to help them.

So that is a very good metric for looking at the amount of physician demand or patients that are being teed up to get the drug.

And as I mentioned, and let me reiterate this, we know there is pent-up demand for YUTIQ.

Again, this is a very serious disease and there just are not a lot of good treatment options.

So we do expect, as I've said repeatedly, that you're going to see a fairly large bolus of patients come in, certainly at the end of the first quarter of launch, probably going into the second quarter some, and then I would expect that it will -- the growth rate will taper off to a more normal growth rate.

So what we are seeing in the first several weeks of YUTIQ launch is exactly what we expected, which is a nice bolus of incoming physician requests for having their patients cleared for reimbursement.

So again, I'm not going to give you numbers, but we certainly are doing absolutely what we would expect with this product, which is we're off to a good strong start.

Okay, great.

And I'm sorry, I said last.

But just wondering, in terms of seasonality, obviously, sometimes, especially in the third -- or the first quarter for the reimbursement issues, I'm looking more third quarter with the summer months.

It is something that we should expect to affect the top line, with the docs being off on vacation?

Yes, you're going to see this.

It is ubiquitous in the pharmaceutical industry, particularly for office-administered drugs.

And we would expect you'll see the same thing for DEXYCU and YUTIQ.

There will be some slight seasonality.

And our next question comes from the line of Andrew D'Silva of B. Riley FBR.

Congrats on both the product launches.

I just -- first out of the gate, just a couple of quick bookkeeping questions.

Can you maybe just let me know stock-based comp depreciation, amortization cash flow from operations and the CapEx was for the 3 or 6 months ending December?

And then I take it, since you announced that DEXYCU launched this week, it triggered the $15 million sales milestone payment to Icon, correct?

Should we model that in this quarter?

So David or Len will take those questions.

Yes, absolutely.

Thanks, Andy.

So given the transition period, it's easier for me to give you the 6-month period for those numbers.

You have the quarter to the end of September as well.

So the stock-based comp for the 6 months is $2.5 million.

The D&A number, the depreciation and amortization, $1.6 million.

Recall also that within those 6 months, there's a change in fair value of the derivative liability of $18.9 million as a noncash item as well.

The cash used from operations, $22.6 million, I mentioned that in the prepared remarks for the 6 months period.

We have very minimal CapEx, about $100,000 of CapEx in the 6-month period.

You're correct, the $15 million milestone is triggered for the former owners of Icon and we have 30 days from launch in order to pay for that.

So that will fall -- cash flow in the second quarter.

Got it, perfect.

Sorry, one more quick financial question as it relates to the $60 million debt facility.

Are you expecting to tap all 3 tranches?

Or do you expect just to utilize the first tranche, $35 million, or the first 2 at $50 million?

Just give me a little sense of what the plan is, so I can think about how to model that from a balance sheet and free cash flow standpoint.

Yes, so I mean, 2019, I mentioned in the remarks that we believe we have sufficient [run] cash and facility runway to take us through the end of this year.

The anticipation is that we would draw that other $15 million that is at our behest.

We would draw that, that's included in that assumption, getting us to cash through to the end of this year.

The further $10 million, obviously, is subject to sales milestones and that is not factored into any of my calculations at this point.

Okay, but that $25 million sales milestone for the 3-month period, prior to, essentially, the end of March 2020, is that something, when we think about the framework of how the company is being built in sales of marketing, is that something that's viable in the next year or so to be able to get that kind of a run rate?

Clearly, at this juncture, we've refrained from providing any revenue guidance.

We'll give an update on trading and the metrics associated with that as we come through the full second quarter.

But I think, suffice to say, that having that as a milestone to trigger further cash availability is something that we had negotiated into that and had put into those numbers.

Okay, that's really good.

That's great to hear.

And then moving over to YUTIQ.

Can you just touch base on maybe how you're going to recognize revenue?

I know it's a buy-and-build model, but are you essentially going to recognize, when you launch it to distributors?

And then is there any sort of confusion at this point related to the product as it has a lot of similarities to ILUVIEN?

Or is it fairly understood that ILUVIEN is for DME and YUTIQ is for uveitis?

So I'll take the second question.

Yes, go ahead, David.

That's all right, so let me -- in terms of the revenue recognition, initially, we are working under what's called a title model with Cardinal, where they act as both the owner and also distributor for us.

And therefore, that's the revenue recognition point on shipment into Cardinal.

Obviously, we would then have appropriate gross to net reserves and returns reserves, et cetera associated with that.

But that's from a revenue recognition point of view, that's where we are initially.

Ultimately, when we have all of our own licenses by state, we will be moving on to a more normal distributor model.

So to your second question about ILUVIEN and any confusion, there really hasn't been.

And part of that has to do with the fact that in this space, physicians know very clearly that when they submit their claims, they have to be very clear about the disease codes that are being used.

And as a result, they know that ILUVIEN is very clearly indicated for diabetic macular edema and as they get more educated, YUTIQ is used for uveitis.

So far, we've had no confusion around that at all and really, we don't anticipate it.

Okay, that's really good to hear.

Just a couple of more quick questions for me.

I'm aware that Allergan has had supply constraints with OZURDEX, meaningfully impacted their fourth quarter, at least for that product line?

Have you seen any benefit domestically for YUTIQ?

And then with Bausch's Retisert technology, I mean, essentially, they're a very similar platform, I believe, they're actually both based on Durasert.

Is it safe to assume, going forward, that those sales should just essentially be transitioned over to YUTIQ?

It's just a more invasive surgery process.

It would seem that physicians would use it [more in your direction]?

Yes, yes.

So let me answer your last question first and then I'll tackle your first question.

For Retisert, let me just explain to our audience about Retisert.

Retisert is -- was our internally developed technology off the Durasert platform.

That got out-licensed to Bausch Health a fair number of years ago.

That is a much larger insert.

It requires being inserted in the surgical suite.

It actually has to get tethered into the eye.

My understanding right now is there's not a lot of physicians who know how to do that anymore.

A lot of doctors have sort of moved away from using Retisert because of how invasive it is.

The other issue is it lasts for up to 2 years, and it does tend to have higher elevated intraocular pressure as a side effect because it releases at a higher rate of corticosteroids.

So given all of that and the fact that YUTIQ, just to reiterate, is administered in the physician's office, doesn't require a surgical procedure, therefore, there's a lot of cost associated with that and also the cost of Retisert, my understanding, runs anywhere from $14,000 to $18,000 now.

So that's a lot of money to put out and we are priced at, as I've mentioned, WAC at $8,300 for 3 years.

Let me remind listeners, that's over -- that's a 3-year lasting insert.

So we're substantially less expensive, we're much easier administered in the physician's office and we don't have as much elevated IOP.

So when you add all that together, we do expect that there'll be a fair amount of transition away from Retisert over to YUTIQ.

And -- go ahead.

Yes and as for OZURDEX, yes, we are seeing some of that out in the field.

As for how long that lasts, we have no insights at all, nor do I really want to comment on it.

And so when or if they will have complete coverage again, but we are seeing some of that out in the field that there is some outages of OZURDEX.

Sorry for all the questions, a last one, it's just a very important quarter for you.

With DEXYCU, I know it's just recent, but are you following a sell-through model, where you're going to recognize revenue going straight into the physicians?

Or is it going to be similar from a stocking standpoint?

And then just any color on how you expect to ramp that product up?

Because I remember there were some inventory issues and I wanted to make sure that all that was resolved so I don't get ahead of my skis.

Absolutely.

With regards to that, I think we will be recording revenue the same way as we are with YUTIQ in the current state we have, the title model, as I mentioned, with our third-party logistic provider and we'll continue to operate it that way.

And we have inventory that is available for commercial sale.

Our next question comes from the line of Yi Chen of H.C. Wainwright.

Could you comment on the pricing of DEXYCU?

And also the distribution of the sales force between YUTIQ and DEXYCU, is it in any way indicative of the units of products that could be sold in the coming quarters?

So the price of DEXYCU is $595.

And the distribution of field force, as I mentioned in my comments, was 10 reps are dedicated to YUTIQ and we have, actually, right now in the field, we have 34, but we will be at 35.

We have one vacancy we're still filling for DEXYCU.

And let me comment as to the unit volumes, yes.

Now, is it an exact proportion between reps and expected unit volume?

No, not at all but you do size your field sales force based on potential.

I want to remind people that we have gone out conservatively with our field force.

We do not want to get ahead of ourselves on the field force.

If demand comes through, as we expect, we very well could size up the field force modestly to begin to capture more of the potential of these products, particularly DEXYCU.

If DEXYCU takes off in a very optimistic way, and you know, again, we're doing everything we can to set the table for that, then I would expect that we would grow our field force.

I'm not going to give the numbers, it's not going to be double by any means, but certainly, grow the field force to capture more of that revenue demand.

But right now we're going to be conservative until we start to see run rates on these products.

At this time, there are no further questions.

I'd like to turn the conference back over to Ms. Nancy Lurker for any closing remarks.

I want to thank everyone for your time this morning and very much look forward to future calls with you.

We remain very excited about the launch of these 2 products.

Their innovativeness out in the marketplace is already being very well received and we expect good things as we look forward.

So thank you again for your time, and we'll talk to you at our next earnings call.

Ladies and gentlemen, thank you for your participation in today's conference.

This does conclude the program.

You may now disconnect.

Everyone, have a great day.