Medexus Pharmaceuticals Inc. (MDP) Earnings Call Transcript & Summary

Good day, ladies and gentlemen, and welcome to your Medexus Pharmaceuticals Fiscal Year-end 2020 Conference Call. [Operator Instructions] At this time, it is my pleasure to turn the floor over to your host, David Waldman, Investor Relations. Sir, the floor is yours.

Thank you, Taren. Good morning, everyone, and welcome to Medexus Pharmaceuticals Fourth Quarter and Year-end Conference Call. On the call with us this morning are Ken d'Entremont, Chief Executive Officer; and Roland Boivin, Chief Financial Officer. If you have any questions after the call or would like any additional information about the company, please contact Crescendo Communications at 212-671-1020. I'd also like to remind everyone that the discussion during the certain forward-looking information that is based on certain assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from historical results or results anticipated by the forward-looking information. Forward-looking information provided during this call speaks only as of the date of this call and is based on the plans, beliefs, estimates, projections, expectations, opinions and assumptions of management as of today's date. There can be no assurance that forward-looking information will prove to be accurate, and you should not place undue reliance on forward-looking information. Medexus disclaims any obligation to update any forward-looking information or to explain any material difference between subsequent actual events and such forward-looking information, except as required by applicable law. In addition, during the course of the call, there may also be references to certain non-IFRS financial measures including references to adjusted EBITDA, which do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other companies. For more information about both forward-looking information and non-IFRS financial measures including a reconciliation of adjusted EBITDA to net loss, please refer to the company's management discussion and analysis, which along with the financial statements are available on the company's corporate website at www.medexus.com and the company's corporate filings on SEDAR at www.sedar.com. I'd now like to turn the call over to Ken d'Entremont. Please go ahead, Ken.

Thank you, David, and thanks to everyone for joining us on the call today. Let me start by saying that this has been a very exciting year for the company. We are proud of our continued progress, as we believe we've built a highly scalable business model that has delivered strong organic growth. And we'll continue to actively evaluate additional opportunities to license or acquire accretive specialty products that leverage our existing infrastructure in both the U.S. and Canada. Most recently, at the end of February 2020, we announced a transformative acquisition of Aptevo BioTherapeutics. It's a private subsidiary of a U.S. public company which owns the worldwide rights to the commercial hematology asset, IXINITY®. IXINITY® an intravenous recombinant factor IX therapeutic for use in patients 12 years of age or older with hemophilia B, a hereditary bleeding disorder characterized by a deficiency in clotting factor IX, which is necessary to control bleeding. We expect that IXINITY® will be a major growth driver going forward. The hemophilia B market in the United States alone is estimated to be approximately $734 million and continues to grow. The integration of IXINITY® is complete, and it leverages our existing U.S.-based infrastructure. As we've added a product that's generating approximately $40 million in revenue on an annual basis while maintaining roughly the same number of employees as we had before the acquisition. We see significant potential for future growth of IXINITY® in the U.S. as well as other markets. Turning to our financial results. I'm pleased to report that we generated strong year-over-year growth in revenue and adjusted EBITDA for both the fourth quarter of fiscal 2020 and for the full year. This improvement reflects strong organic growth across much of our portfolio. And each of the product -- key product lines are showing strong growth, including the 1 month from our new commercial asset, IXINITY®. For the fourth quarter of fiscal 2020, revenue increased to $25.6 million compared to $12.7 million for Q4 last year. We achieved strong organic year-over-year revenue growth of 27% and IXINITY® contributed an additional $9.5 million for the fourth quarter of fiscal 2020. Approximately 85% of IXINITY® revenue for the quarter accrued to Medexus in March. And as such, this was highly accretive. Adjusted EBITDA for the 3 months ending March 31, 2020, was $4.2 million compared to $0.1 million last year. For the full year, sales increased to $74.4 million compared to $33.9 million last year. We also generated adjusted EBITDA of $6 million for the full year 2020 versus $2.5 million for fiscal 2019. We continue to generate steady growth across our key product lines despite the effects of COVID-19 pandemic. Additionally, we continue to see strong demand for our products as much of our product portfolio is used to treat chronic conditions. Turning to our individual product lines. We are experiencing strong revenue growth for Metoject in Canada. Due to public reimbursement, we are able to access a large group of patients who previously could not get the product. Metoject unit sales increased 96% for fiscal 2020 compared to the same period last year. Metoject is a prefilled syringe methotrexate which is indicated for the treatment of rheumatoid arthritis and psoriasis. Metoject is a highly effective and cost-efficient treatment for these debilitating diseases. In the third quarter of fiscal 2020, we launched Metoject subcutaneous doses of 10 and 12.5 milligram, which are important additions to the Metoject line as they provide physicians dosing and titration flexibility to prescribe an appropriate strength for their patients. We anticipate the majority of provinces will reimburse these new strengths in the near term, which we do expect to drive new prescriptions and unit growth. We're also experiencing an 11% increase in Rasuvo unit sales for the full year. Rasuvo was a once-weekly subcutaneous single dose auto injector of methotrexate, indicated for the treatment of rheumatoid arthritis psoriasis and juvenile idiopathic arthritis. Rasuvo has gained excellent payer, prescriber and patient acceptance which has positioned us as an emerging leader in the methotrexate auto-injector market. We expect this growth to continue as prescribers adopt the most effective and convenient form of methotrexate for their patients. At the same time, we are developing a reformulated rheumatology product that we believe will improve the delivery of this therapy in the treatment of RA and other autoimmune diseases. The product addresses an unmet medical need within a large market. We believe the results of this development project have been positive and support the product concept moving into the next phase of development. With our seasoned and accomplished North American sales force, we are now well positioned to grow revenue and drive significant cash flow as we launch new products into the U.S. market. As we previously reported, Health Canada granted us authorization to distribute Treosulfan under the Special Access Program to provide healthcare providers with access to nonregistered drugs for greeting patients with serious or life-threatening conditions. Treosulfan is indicated as part of the conditioning treatment prior to stem cell transplantation in adult patients with malignant and nonmalignant diseases such as leukemia and in pediatric patients older than 1 month with malignant diseases. Treosulfan is a significant improvement over current products used in conditioning agents prior to bone marrow transplantation, particularly in children due to the increased read of event-free survival after 2 years. We are now shipping to hospitals across Canada and expect to expand distribution of Treosulfan once the product has received approval as a fully registered product. On December 20, 2019, we filed the registration of Gliolan with Health Canada. The application is a priority review, which means the file could be approved as soon as August 2020. Gliolan is used for guiding maximal surgical reception of high-grade gliomas, malignant brain tumors in adults. Gliolan assists neurosurgeons to better visualize and more completely remove gliomas as -- by causing them to become fluorescent and glow under blue light. On March 27, 2020, we were informed that the quality business unit at Ontario Health based on guidance from the Ontario Health Technology Advisory Committee had recommended public funding of Gliolan through the Ministry of Health upon approval of the product by Health Canada. Once Gliolan becomes a fully registered product, we expect it to rapidly gain a much broader distribution in Canada, which represents a sizable, underserved market opportunity. In the meantime, feedback from the medical community has been extremely positive, and we continue to distribute Gliolan via the Special Access Program. Now turning to our pediatric and allergy business. Our 2 main products, Rupall and Cuvposa, are generating solid year-over-year prescription growth. Rupall, launched in January of 2017 and has experienced very strong growth with unit market demand showing an increase of approximately 61% in fiscal 2020 compared to the same period last year. Rupall has been one of the fastest-growing antihistamines in the Canadian prescription market and continues to gain market share. Given the trend of physicians switching patients from generic prescription antihistamines or over-counter products, we believe Rupall is positioned to become a leading prescription antihistamine and a total market value at approximately $144.7 million. Cuvposa, which we launched in April of 2018, is indicated for sialorrhea and patients aged 3 to 18 years with neurologic conditions such as cerebral palsy, and we have received positive feedback from both the medical community and patients as this product addresses a significant unmet medical need in these patients. Cuvposa is currently being reimbursed by the vast majority of private payer plants. In April of 2020, we reached an agreement with the pan-Canadian Pharmaceutical alliance to include our own Triamcinolone Hexacetonide, or TH, product on the federal, provincial and territorial formularies except for British Columbia and Québec, where the review is ongoing. Inclusion of TH on these formularies improves access to this product for a large proportion of the population who need this drug. TH was added to the Alberta formulary on May 1, 2020, and we expect other formularies to be added over the next few quarters. We are now actively promoting this product for use in JIA as well as other forms of arthritis. TH competes in an intra articular steroid market valued at $33 million in Canada. We completely agree with the Canadian Rheumatology Association in their assessment that TH should be considered the standard of care and not only younger patients with JIA but for all appropriate adult patients with sub-acute and chronic inflammatory joint disease. We continue to maintain strict financial discipline with $7.4 million of cash and cash equivalents at the end of fiscal year 2020. We have also secured a USD 20 million asset-based credit facility on favorable terms, which allowed us to repay USD 10 million of our term loan. Both our cash on hand and new credit facility provide us financial flexibility and a solid platform to execute on our 3 pillars of growth. First, we are focused on strong organic growth from our existing portfolio. Second, we plan to license and acquire additional products where we can leverage our North American sales force and infrastructure. And third, we are developing products within our core therapeutic area. Overall, we remain extremely encouraged by our outlook for the business as we have built a highly scalable business model and look forward to providing further updates as developments unfold. I'll now turn the call over to Roland, who will discuss the financial results in more detail.

Thank you, Ken. So we continue to experience strong growth, both organically and through acquisitions, despite the pair consolidation in the U.S. market and the disruption from the COVID-19 pandemic. We're very optimistic as we head into the new fiscal year as the integration of IXINITY® progressing as planned, and we have many opportunities within our product portfolio. Our quarterly revenue for the fourth quarter of 2020 increased to $25.6 million compared to $12.7 million for the same period last year. The increase is due to the organic growth of the company's key products as well as the additional revenue from the acquisition of IXINITY®. Specifically, revenue generated from recently acquired IXINITY® totaled $9.5 million following the acquisition on February 28 and through the end of the quarter. Revenues from IXINITY® for March 2020 were in line with our expectations, including the fact that the majority of the quarterly sales of IXINITY® were generated in the final month of Q4 2020. Gross profit for the fourth quarter of 2020 increased to $13.3 million or 51.8% of sales compared to $7.7 million or 60.1% of sales for the same period last year. The lower gross margin for the fourth quarter of 2020, when compared to last year, is due in part to the IXINITY® acquisition, which currently has a lower gross margin than our other key products. Operating loss for the 3 months ended March 31, 2020, was $1.9 million compared to $1.8 million for the same period last year. Adjusted EBITDA for the 3-month period ended March 31, 2020, was positive $4.2 million compared to an adjusted EBITDA of $0.1 million for the same period last year. Net loss for the 3-month period ended March 31, 2020, was $2.1 million compared to a net loss of $0.7 million for the same period last year. Turning to our results for fiscal year 2020. Total revenue increased to a record $74.4 million compared with revenue of $33.9 million for 2019. The increase was due to the organic growth of the company's key products as well as the additional revenue from the acquisition of IXINITY®. Gross profit for their fiscal 2020 -- for the fiscal year 2020 increased to $41.8 million or 56.2% of sales compared to $20.2 million or 59.7% of sales the same period last fiscal year. The lower gross margin for fiscal 2020 is due in part to lower gross margin related to IXINITY® in comparison to the other major product lines. Additionally, during the fiscal year 2020, we experienced an increase in discounts given to payers and a reduction in net selling price of Rasuvo. Operating loss for the fiscal year ended March 31, 2020, was $7.7 million compared to $5.7 million for 2019. Adjusted EBITDA for the fiscal year 2020 was $6 million compared to $2.4 million for 2019. Net loss for the fiscal year was $6.2 million compared to a net loss of $6.3 million in 2019. Under the normal course issuer bid, we purchased and canceled 919,000 common shares in the market for consideration of approximately $3.7 million during fiscal 2020. And as Ken mentioned, we finished the year with cash and cash equivalents of $7.4 million compared to $29.2 million at the end of 2019. We had a working capital surplus, which decreased to $28.3 million compared to $32.7 million at the same time last year. Importantly, we financed the IXINITY® transaction without any equity dilution using a credit facility, which, together with the solid cash flow the combined companies reinforces the strength of our balance sheet and our commitment to driving value for shareholders. We believe our ability to secure such favorable terms, reflect the confidence of our lenders and the strength of our business. Operator, we'll now open the call to questions.

[Operator Instructions] We'll take our first question from Andre Uddin with Mackie Research Capital.

Ken, Nice quarter. Just based on where we are right now with COVID, are your sales reps able to do any promoting at this point?

Andre, thanks for the comment. Yes. So they're all locked down in place. So they're not out in field as they normally would be. But we've strongly converted over to virtual mechanisms for detailing. So our model has very much do continuing medical education. There's still a great demand for CME. So if we can produce content, we've discovered that there's a ton of interest. So we're actually gaining fantastic reach, bigger crowd than we would typically get in face-to-face CME event. So that's what we're focused on doing, and then following up through virtual needs on those events. So we're -- our productivity in terms of our reach is actually higher than it would have been normal because we would do most of our work face-to-face. So you feel we are reaching so many acquisitions. So our reach is actually quite good. Now we're working on making sure content is really strong so that the outcomes are positive.

When do you expect your IXINITY® pediatric trial to resume?

It's never really stopped. We've got almost half of patients enrolled. So those patients continue on. Enrolling new patients became more difficult with COVID. We've got many different countries that we can go to. So we're focusing on those countries that appear to have the pandemic under control. And some of the hospitals that we have enrolled are starting to get back to normal, and we'll start to enroll new patients. So we're really anxious to get it done. Sooner we get it done, the better, add the pediatric indication to our label, which is -- opens another 20% to 30% of the market in the U.S. to us.

And just in terms of -- could you just give us a bit of an update on your BD pipeline and where pharmaceutical assets that are being divested or trending in terms of prices?

That's a good question. And trending in terms of price is unknown in this COVID situation. I think that there's a lot of companies that are going to struggle to raise capital. So those assets might actually decrease in value. I think we're primarily focused right now on some licensing deals. So we had the IXINITY® asset that we've been working hard on for many months. That now complete, there's some other licensing deals we were working on at the same time that have become a priority. So I think you'll see some licensing deals, and hopefully, the not-too-distant future that will fit very, very nicely in our portfolio. I think we've been very disciplined and focusing on the therapeutic areas that we're interested in. And so you'll see with these deals that we continue down that path.

We'll take our next question from Justin Keywood with Stifel GMP.

Just on the Rupall, nice to see the 60% growth there. Well, would you characterize that as related to the general antihistamine market doing well through COVID-19? Or is that product still in its high-growth stage as a relatively new launch in Canada?

Yes. Great question. I think it's a combination of both. The numbers that we're showing you really are related to organic growth of the product itself. So these whole new generation antihistamines are doing extremely well. There's 2 of them. So they're both doing really well. I think we're growing slightly faster than they are, but both are doing great. So the numbers, the 61%, that's basically organic growth. As you know, the COVID-19 pandemic gave a boost to all respiratory medicines. We certainly saw that boost in this quarter. And then it started to normalize. I think people got panicked and overstocked. So we'll show another good quarter, but it will be nothing unusual. Once the quarter is complete, everything should have normalized. So I think the number, 61%, that's not COVID-related. That's just our organic growth. And we think that number is sustainable. We can keep growing at strong double digit, for sure.

Good to hear. And then on the Metoject, almost triple unit growth there. Was that related to the new dosing or still primarily from expanded public reimbursement across Canada?

Yes. It's still related to reimbursement. The new dosing certainly helps, but the majority of prescriptions are in the higher strengths. So adding the lower strengths helps. It helps physicians who want to titrate up from a low dose to a high dose, but it's not the main driver. It makes a better portfolio, but the main driver is the higher strengths. So most of our growth is coming from those higher strengths. So it just continues to be -- better access is driving the revenue.

And then one final one on Gliolan. You mentioned this in your preamble. So there's a response from Health Canada soon. Are you able to remind us what the peak sales estimates are for that drug in Canada? And how long it would take to reach that peak?

Yes. We think it's like $9 million to $12 million in Canada, if you're just talking about Stage 3 and 4 gliomas. It maybe go higher than that. I mean if you look at developed territories like Germany, they actually use it in lower-stage tumors, just because it's hard to actually stage the tumor until you actually open the head to do the resection. So it ends up getting used more broadly. But if you're just to do it Stage 3 and Stage 4, it's $9 million to $12 million, and we think the uptake will be quick because this is the first time I've ever seen a product get reimbursement before it was ever launched, and that is the case in Ontario. So there's really strong demand for it because if you've ever seen the video or the pictures, you can see the cancerous tissue is much more visible using our product than the way they traditionally have done it, which was just under white light and the physician used eyes and microscope to try and figure out what was cancers and what was normal brain tissue.

We'll I'll take our next question from Prasath Pandurangan with Bloom Burton.

Could you provide any additional color on the payer discount situation for Rasuvo? I believe it was in the middle of last -- of 2019 that you first encountered the situation. So how has it changed since then? And have there been any changes in the level of rebates and discounts in this quarter versus the previous quarters? And what's the outlook on this for 2021, as in FY 2021?

There's been no change -- in the current quarter, no change, so it stabilized. So there continues to be a ton of attention that we're putting on gross-to-net to make sure that we manage those discounts well. Some accounts, we've actually improved the price and been able to take price increase and improve margin. Others continue where they were. So we've made some progress there. There are no significant changes in the quarter, but we continue to pay close attention.

We'll take our next question from Tania Gonsalves with Canaccord Genuity.

Great quarter, congratulations. Have you experienced any delays in responsiveness or just general time line with Health Canada during COVID with respect to moving assets through the review process?

Thanks for the question, Tania. I'm just trying to think, we've got a couple of things in front of Health Canada now. Gliolan is probably the furthest along. And we've been getting questions like normal questions from them on time lines that seem totally appropriate. So it doesn't seem like anything's been delayed as a result of COVID. Remember, a lot of these reviewers worked from home anyway. So it wasn't like they were going into the office all the time. So perhaps there's been a little disruption. I know that pre-registration meetings have got pushed way off, so where you used to be able to book one in 6 to 8 weeks on pre-registration, now, I think they're booking February. So that is a huge delay. So I think if you want to put a new file in, that might be affected, but the fact that Gliolan was already in, it doesn't appear like it's been delayed at all. So we're optimistic that we'll hit the time line, and then we'll have Gliolan out in the market this year.

Perfect. And is TH affected by this at all? Or are they far enough along that this won't impact them?

Well, TH is already approved. So we're good there. And so we were just waiting for reimbursement so that pCPA negotiation got completed on time. So that's done. So now it's just an administrative work that's being done at each province. So price, everything has been set. So each province, we have to sign these letters of intent, just listing agreements. So it's really just paperwork. So that's being done, Alberta, as I mentioned, is complete. We expect others to come through. Ontario, we think, is next, and that will be very soon. And so we're out there promoting now. And I think the angle that we're taking with TH is that, look, it's tough to get in to see physicians through this COVID situation. People are avoiding hospitals or avoiding physician clinics. So if you have inflammatory arthritis and you need an intra articular injection, you got to use the longest acting one. That would reduce the number of times you have to go visit the physicians. So I think we've got a good angle. And we've got some major programs that are kicking off later this month.

Perfect. And then secondly, in terms of leverage, do you have a target of where you'd like to get your balance sheet to?

Yes, Tania. It's Roland here. Yes, I'll take that. So as you know, when we did the IXINITY® acquisition, we felt comfortable with the leverage at that point because we have such a great portfolio with lots of organic growth to be had, and with our SG&A remaining roughly the same. So we certainly feel like that is the EBITDA-to-debt ratio drops down significantly as we generate cash from our operations. And again, organic growth, discipline in our spending and SG&A, in general, remaining fairly flat. So to say that we would have a specific target, when you have an organic growth -- organic portfolio with such growth potential where we are today, we're comfortable with. So I'll start with that. And to say what the target is, it's a moving target, depending on what other opportunities come to us. So it'd be difficult to give you a target. But what I would say is that we're comfortable with the leverage as it stood when we did the acquisition, and we are comfortable that it will keep getting -- obviously improving as we keep generating more cash in the very near future.

Okay. Excellent. So no intent to necessarily pay down debt, but hopefully just increase that EBITDA to bring your leverage down apart from whatever free cash flow you generate you can put towards…

No, no, paying down -- yes. Sorry, maybe I misfelt, paying down the debt for sure. But it will be done with the cash that we're going to be generating. And again, I think it's more a question of not having a specific target in mind, just because of the moving -- where you keep doing with all the BD pipeline that Ken referred to, these all may have an impact. And if there's a great opportunity for us, I would not want to state a target today that later on would come back and say, well, it's not quite within the range of what we have as a target. What I'm saying is that we're definitely paying down the debt, and it's being done by the cash -- with the cash that we're generating.

Okay. Excellent. And then last question, were there any products that were meaningfully impacted by COVID? I'm more talking like some of your over-the-counter products, perhaps that people are buying from a drug store when they physically visit that retail outlet. Was there anything that was like that went to almost 0 in sales?

Nothing was completely affected like that. I would say the only one that we have is the one you would totally expect. Obviously, COVID-19 is transferred person to person. And the one drug we have that treats a disease, it's transferred like that is NYDA, a treatment for lice. So if people are social distancing and clearly, lice transference drops dramatically. We're not really in the lice season, but we're certainly anticipating this will be a lice season just because kids aren't in summer camps, and we'll see what happens when they go back to school. So that one, for sure, we expect to be down. But again, it's not a huge part of our portfolio. All the rest of the OTC portfolio continues to hang in there pretty strong. So nothing has been completely effective, but we certainly -- you would think that NYDA would be the one that you would see a difference.

[Operator Instructions] We'll take our next question from [ Anthony Markezi ], private investor.

Ken, congratulations on an excellent quarter. Any thought for whatever reason, the Canadian markets don't give you guys very much credit? I think the United States markets would probably give you more credit. Any thoughts to perhaps listing on the OTCQX or something which actually gives you a symbol with real market makers on either side?

Great question, Anthony. We're looking at all those options. So I think one major gap that I believe we had, which was the lack of breadth of portfolio in the U.S., we've solved for. And we said we're going to do that from day 1. We've now solved for it. We're not going to stop here. We'll continue to build the portfolio, but that's gone. So now, I think our story is a very good one for both the U.S. and Canadian investors. And we clearly want to make ourselves more accessible to the U.S. investor. Obviously, it's more difficult for institutional investors to purchase on the venture exchange. It's -- we've seen it over and over and over again. So we're looking at all those options to just make ourselves more accessible to those investors for sure.

Where do you guys trade in your mind? Who do you -- not specifically, but given your basket of, I guess, comparables, the way you see it, where do you guys trade relative to your basket of comparables, whatever that may be? In terms of…

Yes. It's -- our basket of comparables are a mix of Canadian and U.S. specialty pharma companies, and on all metrics, were very low. So I think it's contingent on us now to get our story out there. And certainly, we're going to be doing that. I mean that we spent in the last 17 months in some automations on building the foundation of this business. Now I think it's a good time to get out there and start to tell the story. As everybody saw, the numbers was good this quarter, we expect those sorts of numbers to continue into future quarters. And so our focus is on consistency of delivering these types of results. And we got to get out there and tell the story. So that we're going to be focusing on doing that this year for sure.

And for our next question, we'll return to Prasath Pandurangan with Bloom Burton.

Could you provide an indicative number for cash operating expenses for FY '21? I believe it was us to $36 million for FY '20. So what would be a good number to work with '21?

Yes. Prasath, we're not giving specific guidance. All I would say is that, as we've stated in previous press releases and also as Ken stated earlier today, we were able to bring in the IXINITY® business with very little impact on our headcount and on our SG&A in general. So we -- our goal is to keep being very disciplined with the SG&A and remain it as flat as possible. Still understanding that we have a very -- again, a very high-growth portfolio of products. So seeing some small increases in there would be predictable. But -- yes. So that's basically our goal is to keep it as flat as possible compared to previous years.

That's all the questions that we have at this time. Sir, I'll turn the floor back over to you.

Thank you. I'd like to thank everyone for participating in our fourth quarter and fiscal 2020 conference call. As I said, we believe we've built an outstanding team and a strong commercial platform. We are very well positioned as a leading North American specialty pharma company with a diversified portfolio that should allow us to continue to grow revenue and realize synergies of these combined entities. Looking ahead, we continue to seek out additional products to license, and we'll continue to explore opportunistic acquisitions. Based on our expected revenue growth and stable operational expenses, we believe we will continue to generate strong cash flow in the current and future fiscal years. We appreciate the strong support of our shareholders and look forward to providing further updates on our progress in the weeks and months ahead. Thank you all very much.

Thank you, ladies and gentlemen. This does conclude today's teleconference. We thank you for your participation. You may disconnect your lines at this time, and have a great day.