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spk14: Good day and thank you for standing by. Welcome to the Orishare Technologies, Inc. 2023 fourth quarter earnings conference call. At this time, all participants are in a listen only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again.
spk13: Please be advised that today's conference is being recorded.
spk14: I would now like to hand the conference over to your first speaker today, Jason Plagma, Vice President of Investor Relations. Please go ahead.
spk02: Good afternoon and welcome to Orishare Technologies fourth quarter 2023 earnings call. Participating in the call today for OTI are Kerry Eglinton-Manner, our President and Chief Executive Officer, and Ken McGrath, our Chief Financial Officer. As a reminder, today's webcast is being recorded and the recording can be found on our Investor Relations website. Before we begin, you should know that this call may contain certain forward-looking statements, including statements with respect to revenues and guidance, expenses, profitability, earnings or loss per share, and other financial performance, product development, performance, shipments and markets, business plans, regulatory filings and approvals, expectations and strategies, actual results could significantly differ. Factors that could affect results are discussed more fully in OTI's SEC filings, including its registration statements, its annual report on Form 10K for the year ended December 31, 2022, its quarterly reports on Form 10Q and its other SEC filings. Although forward-looking statements help to provide complete information about future prospects, listeners should keep in mind that forward-looking statements are based solely on information available to management as of today. OTI undertakes no obligation to update any forward-looking statements to reflect events or circumstances after this call. With that, I am pleased to turn the call over to Carrie.
spk11: Thanks, Jason, and thank you to everyone for joining us today. We are pleased to provide an update on the progress Oshers making on the three pillars of our strategic transformation. One, strengthening our foundation, two, elevating our core growth, and three, accelerating profitable growth. A few notable items since last quarter include that we generated $41 million of operating cash flow in Q4 and grew our cash balance to $290 million. For the full year 2023, our cash and short-term investments increased by $180 million. We continue to execute on our COVID-19 contract and we delivered stronger than anticipated in tele-slob volumes during the quarter. Our enterprise-wide focus on driving improved operating efficiency continues to unlock incremental cost savings, including gross margin expansion and reduced overhead expenses. In February, we signed a strategic distribution agreement with Diagnostics Direct, which allows us to enter the US syphilis testing market with the first cleo-waved TREP anemol test. Of course, earlier in the quarter, we also announced our investment and strategic distribution relationship with Sapphoros, a consumer diagnostics company with unique technology platforms that plan to enable low-cost, high-performance, next-generation diagnostics and sample collection devices. We expect that distribution of Sapphoros' products will add at least two percentage points to revenue growth in our core business beginning in 2025. Starting with cost, as we continue to strengthen our foundation, for the full year of 2023, we exceeded our target of $15 million in annualized cost savings. Over the last 18 months, we have developed an enterprise-wide mindset that is focused on continuous improvement and operational efficiency. As such, we have identified and are working a number of opportunities that are expected to generate additional productivity enhancements and cost reductions in 2024 and beyond, including consolidating facilities, further leveraging our automation capabilities, and managing our non-production costs. These initiatives give us confidence in achieving our target of operating cashflow breakeven for our core business by the end of 2024. As we previewed on our last earnings call, in Q4, we collected the final milestone payments from the US government related to the completion of our capacity expansion at our Opus Way facility in Bethlehem, Pennsylvania. We also continued to make progress on consolidating our footprint by transitioning one of our distribution facilities into Opus Way in order to unlock operating efficiencies and cost savings. Moving to COVID-19, Intelliswab generated $42 million of revenue in Q4. As we discussed last quarter, we have visibility to order trends that are expected to fulfill the remaining portion of our largest contract with the US government and complete our deliveries during the first half of 2024. Looking at our core business, which excludes COVID-related products, core revenue in Q4 increased slightly on a year over year basis. Core revenue growth was primarily driven by strong HIV sales in the US and international markets, which were partially offset by declines in non-product revenue and molecular lab services. We've discussed for the past 18 months that external partnerships are a fundamental part of our strategy to drive profitable growth in our core. We continue to execute on each of our initiatives to accelerate our innovation pipeline and expand our product portfolio. We've been sharing examples of strategic distribution agreements that build upon our existing strengths in areas such as infectious disease and sexual health. Along those lines, we are delighted to announce a new agreement with Diagnostics Direct, a New Jersey-based innovator that allows us to distribute their Ciphalis Health Check on a semi-exclusive basis in the US. Ciphalis is a growing public health epidemic and Diagnostics Direct's Ciphalis Health Check is the first FDA-cleared, or CLIA-waved, rapid -of-care Ciphalis test. Earlier this month, the CDC released new recommendations on Ciphalis testing, explicitly stating that, quote, accurate POC serologic antibody tests for Ciphalis can shorten the time to treatment because the infection can be identified at the time of the visit or encounter, end quote. Our agreement with Diagnostics Direct allows us to enter the US Ciphalis testing market, serving all channels and customers, aside from a defined group of clients whom Diagnostics Direct will continue to directly support. Fundamentally, we are excited to add Ciphalis Health Check to our sexual health portfolio, and we view it as an important tool in the nation's response to Ciphalis as a public health crisis and for clinical care more broadly. In addition to Diagnostics, we are also expanding our portfolio in other important product categories. In our substance abuse testing business, we've entered into an agreement with Veritech USA to be a distributor for Swabtech, an -to-use surface testing technology that can quickly detect and differentiate concealed substances. We are pleased to add the Swabtech kits to our portfolio of drug and alcohol testing products, allowing us to help keep workplaces, schools, and other critical environments safe. In molecular sample management solutions, we have entered into an agreement with Anaerobe Systems to be a distributor of portions of their microbiome portfolio. Anaerobe Systems is a manufacturer of high-quality anaerobic culture kits and media that are highly complementary to our microbiome portfolio. OTI will be the exclusive distributor of the Biome Preserve Anaerobic Microbiome Collection Kit in order to better serve our clients with more comprehensive solutions. Shifting to our current portfolio of molecular sample management solutions, fourth quarter revenue from those products was consistent with our expectations, and we continue to create positive momentum in establishing new partnerships and commercial relationships. We are also extending relationships across segments and have signed multi-year agreements with a diverse set of existing customers, which we believe demonstrates their confidence and commitment to the long-term opportunities in the genomics market. As an example, we signed a multi-year agreement with GeneDx to provide saliva collection devices that will be used for pediatric exome and genome testing. GeneDx is a pioneering force in medical genetics, working to expand access to diagnostic insights, especially those focused on pediatric patients with neurodevelopmental delays and rare disease. Looking at the overall market environment as we enter 2024, we see end segments that remain subdued as our customers adapt to the post-pandemic environment, macroeconomic uncertainty and evolving priorities, research and otherwise. Those factors and the uncertainty and timing for sustained recovery is resulting in a muted outlook for core revenue in the first quarter. For the full year 2024 and beyond, we remain confident in our opportunity to deliver core growth. Our view is supported by multiple factors. First, the expansion of our product portfolio through the distribution agreements we've been discussing, which leverage our sales infrastructure and customer relationships. We expect the contribution from these agreements to increase as we move through the year. Second, our success over the last two years in diversifying our client base through the addition of new and expanded relationships with diagnostic, pharma and biotech companies along with other innovators. We expect the revenue from customer relationships that we've launched in recent quarters will continue to grow during 2024. Third, our current expectations for ordering patterns from our sample management solutions from some of our key customers throughout 2024. Fourth, our view similar to outlooks discussed by our peers and others externally, that underlying market growth in the life sciences industry will begin to improve in the second half of 2024. Turning to our innovation roadmap, we continue to make progress on our initiatives to accelerate profitable growth through organic and inorganic investments. At the beginning of the year, we announced our strategic relationship and investment in Sapporo. As a part of this partnership, OTI gains exclusive commercial and distribution rights for key product lines in Sapporo's development pipeline that are expected to strengthen our portfolio, such as blood collection devices and new diagnostic tests. We also see opportunities for co-funding and co-development of additional innovative offerings as our partnership progresses. Overall, the partnership is off to a great start and our teams are working really well together in multiple areas, including R&D collaboration and in preparation for the future launch of Sapporo's initial self-collected small volume blood product, timing of course, subject to regulatory review. As we discussed in January, from a financial standpoint, we expect distribution of Sapporo's products to add at least two percentage points to revenue growth in our core business beginning in 2025. Sales of Sapporo's products are expected to be accretive to Orishir's operating profit beginning in 2026, due to our ability to leverage our existing infrastructure, capabilities and customer relationships. We anticipate a modest amount of incremental SG&A expense in 2024 and 2025 to successfully launch new Sapporo's products in the market. And we believe our investment in Sapporo is an efficient method to deploy capital, preserving flexibility for additional organic and inorganic innovation. With that, I'd like to turn the call over to Ken to discuss our financial results and guidance.
spk12: Thanks, Kerry. I'm happy to discuss our results for the fourth quarter of 2023 and provide updates on our financial outlook. In Q4, we delivered total revenue of 75.9 million. COVID-19 products, predominately in Telusbob, contributed 41.7 million of revenue in the fourth quarter, which was above the high end of our guidance range. Purchasing patterns under our contract with the US government were slightly stronger than expected during the quarter. Core revenue, which excludes COVID-19 products, was 34.2 million in the fourth quarter, representing .4% -over-year growth. Within core revenue, our diagnostic products generated $17.2 million of revenue in Q4 and grew 19% -over-year. This growth was driven by HIV test sales in the US and international markets. Looking at molecular sample management solutions, fourth quarter revenue of 13 million increased 9% on a -over-year basis, which was in line with our expectations. Core revenue growth from diagnostics and molecular sample management solutions in the fourth quarter was offset by -over-year declines in non-product revenue and molecular services revenue. As a reminder, non-product revenue is primarily related to funded R&D projects, grants, and loyalties, which are lumpy and not key growth drivers within our long-term strategy. From a gross margin perspective, our gap gross margin in the fourth quarter was 46.3%, compared to .5% in last year's fourth quarter. Non-gap gross margin was 49.7%, compared to .9% in the prior year period. Non-gap gross margin expansion in Q4 was driven by production efficiencies and cost reduction initiatives. For the full year 2023, our gap gross margin of .3% increased by 400 basis points compared to 2022. And our non-gap gross margin of .5% expanded by 540 basis points, first of the prior year. Overall, we believe we can drive additional gross margin expansion over the coming years, and we remain focused on delivering efficiencies across our enterprise, including consolidating facilities, driving procurement savings, further leveraging our automation capabilities, and streamlining our product portfolio. Shifting to operating expenses. Our total operating expenses in the quarter is 31.2 million, which includes 3.3 million for impairment of acquired and tangible assets and certain manufacturing equipment, and 3 million of non-cash stock compensation expense. As we move into 2024, we continue to focus on driving additional savings in our non-production expenses. These incremental cost reductions are important as we look to utilize our cash to invest in growth and achieve our goal of operating cash flow breakeven in our core business by the end of 2024. Gap operating income was 3.9 million in the fourth quarter. The non-gap operating income was 13.6 million. We ended the quarter with zero debt and total cash, cash equivalents, and short-term investments of $290 million, which is 65 million increase from the prior quarter. The increase in our cash balance during the fourth quarter was primarily driven by $41 million of operating cash flow. We also collected 24 million in Q4 related to the achievement of capacity expansion milestones at our Opus Way facility. Turning to guidance, we are guiding to the first quarter revenue of 50 to $54 million, which includes core revenue of 29 to 31 million. As Kerry discussed, we expect core revenue growth to improve as we move through 2024, and we remain confident in our ability to elevate core growth in the coming years. For Intelliswab, we expect revenue of 21 to 23 million in Q1 and approximately 40 million in total in the first half of the year as we complete the remaining portion of our largest contract with the U.S. government. With that, I'll turn the call back to Kerry to conclude.
spk11: Thanks, Ken. Over the past year, OTI delivered meaningful progress on our strategic imperative. We strengthened our foundation, including strong cash flow generation, improved operating efficiency, and instilling an enterprise-wide focus on continuous improvement to fuel how we serve customers and grow. We completed the milestones included in our contract with the U.S. government related to our capacity expansion at our Opus Way facility earlier than expected, and we made progress in streamlining our operational footprint in order to leverage the automation and infrastructure at our new facility. We grew core revenue by 2% in 2023 while navigating macro and industry headwinds. We expanded the portfolio of products that our sales team can provide to our customers in several important segments, including entering the U.S. Syphilis testing market with Diagnostics Direct here in 2024. And in early January, we announced our strategic partnership and investment in Sapphoros, which is expected to expand and accelerate our product and innovation pipeline. We expect our partnership with Sapphoros will accelerate our core revenue growth beginning in 2025. Overall, OTI continues to execute in order to deliver on our vision of transforming health through actionable insights, powering the shift that connects people to healthcare wherever they are. Our mission, to improve access, quality, and value of healthcare with innovation in effortless tests, sample management solutions, and services is aligned with where healthcare is headed in the coming years. With that, I'm pleased to turn the call over to the operator for Q&A. Stephen?
spk14: Thank you. At this time, we will conduct the question and answer session. As a reminder, to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. All right, our first question comes from the line of Patrick Donnelly of Citi. Please go ahead.
spk16: Hey guys, thanks for taking the question. Hey, how are you? I guess when we look at the 2024 kind of OPEC piece, can you just talk about, it seems like a little bit of a ramp there, you guys are still talking about being cashflow breakeven. How does the partnership piece impact that, just in terms of the OPEC side and the OPEC side? And again, the cashflow breakeven, we'd love to talk through the impact there.
spk12: Yeah, Patrick, and thank you for the question. During the year 2024, we do expect some quarterly fluctuations throughout OPEC. Given legal expenses, R&D funding, and the implementation time of our cost savings. When it comes to some of those partnerships, one of the key strengths of those partnerships is allowing us to leverage our existing infrastructure, which minimizes the investments we need directly to support them. So that's the area when, and during the last quarter, we talked a little bit about it, where when you look at some of these partnerships, while the gross margins may be lower than our overall gross margins, the operating income is higher, because what we do is we leverage all of that infrastructure. Again, not having to add a lot of extra resources to support.
spk16: Okay, that's helpful. I guess staying on the partnership, I think you talked about the potential for it to add a couple percent to 25 revenue growth. Is that just kind of on that self-collected blood product? Are there other products that should be launched? And again, I guess on the self-collected one, maybe just an update just on the timelines there, the approval process would be helpful.
spk11: Yep, and you call this out, and you're right on that it's regulatory approvals that kind of dictate the timing of that Sapporo self-collected small volume blood offering, which is why we're really planning for the ramp up this year and the revenue, the incremental revenue for 2025. To answer the other part of your question about what else is included that, we are looking toward the potential to launch other diagnostic tests. And while they and we haven't talked about specifically what those are, I would say that it's a plan that contemplates the launch of the blood test this year with some line of sight into launch of additional diagnostic tests next year. And is there a part of that that I still need to address, Patrick? Yeah,
spk16: nope, I think that covers it. And one last quick one, just on the COVID piece, you talked a little bit about the government contract, just the cadence of COVID revs after a nice number this quarter, and then just the update on how you're thinking about the endemic run rate would be really appreciated. Thank you guys.
spk12: Yeah, right now we have visibility as you mentioned to about $40 million from the main contract. Most of that will be in the first half. After that, we will enter the endemic phase. I believe what we guided last quarter for the full year was 40 to 45 million in total in tele-swab revenue. So you can infer from that the a couple of million going forward beyond that from that first contract.
spk11: Yeah, and I just say, add a little color to the minimus volumes outside of the government contracts. And we definitely compete in every state, local level as well. We have a few of the kind of regional grocery chains and otherwise that we've talked about in the past, but really in comparison, small dollars versus the contracts, which is again why Ken said it, we've guided to that 40 to 45 million dollar range. So we just describe it as small volume.
spk17: Great, thank you guys.
spk08: Thanks, Patrick.
spk14: Thank you, one moment for our next question. All right, our next question comes from the line of Jacob Johnson of Stevens, please go ahead.
spk06: Hey, thank you. Hey, Kerry, hey Ken, good evening. Maybe just starting on the OneQ guidance, it implies the base business is gonna be down somewhere in the teens in OneQ, but Kerry, you talked about kind of growth in the back half and you mentioned a number of opportunities, but also cited the macro. I'm just curious, kind of as we think about that return to growth in the back half of the year, how much of that is within your control or how much visibility do you have in that return to growth?
spk11: Yeah, so I'll start, Jacob, with some of the visibility and kind of the path that we see in the second half. That includes what I talked about in the prepared remarks, which is the distribution agreements for 2024. We're very excited about Diagnostics Direct and entering the US syphilis testing market. That's an ad that comes in with our public health infectious disease portfolio and really nice momentum that we have in HIV, for example. And we have a number of other partnerships as well, includes international diagnostic tests we talked about last year. We have a partner in international syphilis, for example, Hep C and Hep B. We also have three other partnerships in substance abuse testing. It includes one of our recently announced partnerships with the Swabtech. I won't list them all, but I would say those distribution agreements and the ramp up in 24. We've talked about Saffron for 25, but I'd point to some of these other opportunities in 24 as one element. Another, and I won't list all of these, but another that I would just highlight for you here is the diversification of our customer base. We've been talking about that along the way. We've shared highlights of that, and it's both new customers as well as new agreements with sort of valued key customers that we've been working with. And just the outlook we have on their ordering patterns for total year. Again, I just sort of reiterate this. We see this path, and the path really is in a strength in the second half.
spk06: Got it, thanks for that, Carrie. And that kind of leads to my next question. You mentioned a variety of these kind of distribution type agreements. You've been clear that kind of partnerships were key to your strategy, especially as it relates to capital allocation. But I feel like on this call, we've talked a little bit more about distribution agreements. Can you just kind of discuss the strategy there? It sounds like it's kind of leveraging your existing infrastructure, but I'm just kind of curious your thought process about doing more of these distribution type deals.
spk11: Yeah, you're exactly right. And you know we've been talking about this for at least 18 months, as long as I've been here. Part of what we have as a company that turned in the face of COVID to serve the pandemic was both on the sample collection side, where a huge number of that effort went to COVID collection for molecular tests, and then obviously on the diagnostic side and in Teluslob. And what that did, and I think we were transparent about it, we tried to be transparent about it, was that it took an innovation pipeline and really focused it around a key public health need. And that's why we started talking about partnerships. It was so that we could both invest internally in the areas of our development strengths, but also put more of those complimentary portfolios very quickly into our sales teams offerings so that we could better serve the market with while we were simultaneously strengthening our financial foundation, that opportunity to better serve while we're completely leveraging the capabilities of very strong sales channel, really strong customer relationships, and just the credibility and a longevity of having served in this space, whether it be public health, clinical, or on the sample collection side, our extensive diagnostic pharma, biotech, customers, and our expansion into areas like animal health, environmental research, and beyond. So I'd say we did it because we needed to, we knew we needed to, and we leveraged our strengths to really put together some great agreements with great partners. And we're gonna leverage all that's good about our capabilities and strengths to change the acceleration on that success.
spk05: Got it, that's helpful, Kerry. Thanks for taking the questions, I'll leave it there.
spk10: Great, thanks, Jacob.
spk14: Thank you, one moment for our next question. Next question comes from the line of Brendan Coulard of Jeffreys, please go ahead.
spk15: Thanks, this is Matt on fur, Brendan, maybe one for Ken. I think prior you talked about gross margins in the mid-40s for 2024. Sounds like, and tell us, I have assumptions haven't changed much. Maybe some of these newer partnerships are lower gross margin, but better operating margin. Is mid-40s still the right range as we think about gross margins for full year, 24 year?
spk12: Yeah, as you mentioned, we got it towards mid-40s last call. We're maintaining that outlook for the full year. Recognize that within the core, between quarters, there may be some fluctuations based on how we ramp up cost savings, the intel swab volume, as you mentioned, and overall product mix. So there could be fluctuation quarter to quarter, but for the whole year, we're still maintaining mid-40s.
spk15: Okay, thanks, and then on the cost savings here, it sounds like you exceeded the 15 million in 23 and maybe unlock some additional productivity enhancements beyond that. Is that the right way to think about it? And then maybe talk about some of the impact and timing of some of the other items you called out, like site consolidation among other things, thanks.
spk12: Yeah, and you'll see those impacted or implemented throughout the year. And you nailed it, right? One of the big areas is consolidation. The other is automation. It's leveraging our existing processes. And as we highlighted, we've identified a list of those projects and are implementing those projects now throughout the year and maintaining our target of by exiting 2024, our core business cashflow from operations will be brachy.
spk14: Super, thank you.
spk09: Thanks, Matt.
spk14: All right, thank you for your question. One moment for the next one. Next question comes from the line of Andrew Cooper for Raymond James, your line is now open.
spk04: Hey, everybody, thanks for the questions. Maybe just first, kind of a high level one. I think you talked about it a little bit already, but just adding a lot of products for distribution, which I think makes sense given the business that you have and the capabilities to distribute, but just how do you think about that view on trending more towards the distribution business versus wanting to have more proprietary offerings? And then, how do you think about the opportunities, I think with at least some of these to maybe bring them in-house down the road, what are some of the puts and takes as you contemplate them and what could the margin increase look like should that actually occur for some of these distributed products today?
spk11: Yeah, thanks, Andrew. I'll leave margin to the end and we'll address that at the end. I'll just say philosophically, we really like the partnership model that allows us to leverage our strengths and access innovation now. We're a fairly small company and these are pretty small partners and we have spent a lot of time while rebuilding our financial base by which to do this to have the opportunity to be very thoughtful and judicious about what we pick. And we're picking products and partnerships that really fit in our portfolio and you'll see sort of by partner where we choose to be exclusive and we think that that makes sense and where some, we've made a strategic investment like we did in Sapphoros because there are sort of more elements to that strategic agreement and we have the potential to co-fund and co-develop. What I would say by giving you those examples is, this is a part of a big picture strategy that we've been very thoughtful about and aligns with our multi-year innovation roadmap that we put together and landscaped and went out looking for these pieces that I would just describe as very thoughtfully come into our portfolio because we truly believe we have an opportunity to accelerate them. You'll also see that that mix is across portfolios and sales teams. So we're intentional about what we're adding to diagnostics both domestically and internationally. I mean, the amount you hear about Syphilis US testing, probably not a big surprise, but really great news, but not a big surprise to see us entering that market. So whether it's the diagnostics play we're picking or the team that we're putting it into, the substance abuse partnerships, for example, are a very different sales team than our core diagnostic sales team. So just to bring it all together, I would say it's a part of a well-defined strategy. We've been communicating, we've been forecasting that this was an important part of our growth plan and we're excited to share more about each of these along the way to deliver as proof points the growth, the elevating our core growth and doing that just like we've been talking about. In terms of margin, Ken, maybe take that back to the previous. And
spk12: to build on and add also to what Kerry said, we're exploring all types of growth as clearly comes to our strategy, both organic and inorganic, all different deal types. To Kerry's point, that really fit with our strategy. And we have the luxury right now of being in a pretty strong financial position to really look and choose the ones that are the best fit. When it comes to margins and you think about distribution specifically, again, think of it at P&L geography. The gross margins may be a little bit lower than our overall gross margins, but because we leverage significantly kind of the OPEX, existing OPEX infrastructure, there's not a lot of incremental cost on that end. So when you go to the bottom line, it's actually incremental and creative to our overall operating income margins.
spk11: And I know I'm making this a long answer, Andrew, but I'm gonna add this. We think it's important to have multiple shots on goal. We use that phrase and we talk about it. We are very much open to M&A. Again, just as the size of company we are, we think we will continue to be super judicious about that. Many of our agreements are exclusive, many are multi-year. We put a lot of effort into how we make those durable and partnerships that can really pay off, but we have opportunities to do more. And our modeling doesn't require that every single one be the blockbuster. We're sure gonna put the effort into that, which is why we've diversified across teams in our strategy. But a part of this is ensuring that we make smart selections and really leverage our strengths. And I think, I just say to you, we're really clear on what those strengths are.
spk04: Super, super helpful. Maybe just one more from me. Just when we think about that core growth improving through the year and the commentary about the partnership starting to contribute more through that year, just the kind of level set, what sort of growth expectations do you have for, let's call it the historical core, the business that we've known for some time, what is the outlook as we think about kind of that traditional product suite relative to what's being contributed from the partnerships?
spk12: Yeah, while we don't provide product specific guidance, we are looking from growth across all aspects of the portfolio. From the distribution agreements, obviously that'll add incremental growth, but we are looking from growth in all avenues, depending on the particular opportunities that present themselves in the market conditions.
spk03: Okay, great, I will stop there, thank you.
spk14: Great,
spk07: thanks Andrew.
spk14: Thank you for your questions. This does conclude the question and answer session. I would now like to turn it back to Kerry for closing remarks.
spk11: Great, thank you so much for everyone's participation and we thank you for your continued interest in Orchard, have a great night. Thank you Stephen, bye bye.
spk14: Thank you for your participation in today's conference. This does conclude the program, you may now disconnect.
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