Valneva SE

Q4 2022 Earnings Conference Call


spk_0: hello and thank you for joining us to discuss any school year twenty twenty two you can tell the financial results which were published today and are available on our website it's my pleasure to welcome you today i'm joined by valley the ceo thomas lingo back and cfl peter bueller who will provide a brief overview of our business and our financial results for the period as well as updated financial guidance and a summary of anticipated upcoming milestones there will be analyst q in a session at the food and of the prepared remarks before we begin i'd like to remind listeners that during his presentation we will be making forward looking statements which are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by his own little statement you can find additional information about these risks and uncertainties in our periodic filings with the securities and exchange commission and with the french market authority which are also listed on our company website www dot down the dot com please note that today's presentation includes information provided as of today march twenty third two thousand twenty three and oliver undertake no obligation to revise or update forward looking statements except as required by applicable securities laws and with that it is my pleasure to introduce thomas to begin today's presentation
spk_1: take is josh and that afternoon the to all of you well twenty twenty two was a year marked by our ability to adapt to changing environment
spk_0: and showed our with idiot we achieve several key milestones and that underpin our unique value proposition
spk_1: we make continued progress across the are in the pipeline with our chicken go to a vaccine now under l a with you online the the we started the faith we give it to the efficacy study by lot to get of hi there encore with nineteen we were the first company to achieve of full marketing authorization by he had a however given the changing environment around kuwait and the prospect of the flaxseed we decided to not further invest in development as stop manufacturing the call it are we accelerated our preclinical activities with the aim to build a new exciting are in the pipeline i think beyond line and chicagoan yeah we have seen a significant rebound of the commercial isn't it and we can we clearly capitalized on this fall recovery in traveled segment and be complemented our commercial portfolio was additional search party product productive we have reported strong four year twenty twenty two revenues and casper fish and was revenues about three hundred sixty million euros
spk_0: a product fades year on year creep well about eighty percent of our cash position at the end of twenty twenty two was close to two hundred and ninety billion
spk_1: we ought to strengthened our shower their base with a successful upside follow on offering which included now us all our new major lot of shareholders and five would that let me go straight into our programs and into the business update and other dark with chicken when yeah
spk_0: hey think that the presentation i way have reminder i'm in our our chicken don't out program granted the most advanced if you go near program in development worldwide the live attenuated vaccine candidate target a long lasting hi zero response after a single shot
spk_1: basically the fates we paid sweet study met all primary endpoint in terms of fear response rate but also in terms of lot to love consistency we reported positive twelve month on bought it the system a plot and the long term for systems trial it will measure the sierra response rate over time
spk_0: i'm targeting at least five years
spk_1: the adolescents tried it fully and rolled by now and we expect first a plot knit twenty twenty three
spk_2: we are the priority with you
spk_1: the for the ble epa do for action date has hardly been fined for and august twenty twenty three
spk_0: and we expect to commence other regulatory process even the second half of this year including ear made a throwback got us up and grabbed the five ft a fast right and breakthrough and him up by the nation as you know
spk_1: it tops off target population and and and overall geographic weeks we have explained before that to have wifi of course the non and any country and he if i'm out a traveler military but also the possibility for outbreak the episode stockpiling and on the other hand the endemic use ah where we have a partnership agreement with the and institute the on top from there are left turn out over to the to the key date ah ah
spk_3: for chicken good yeah
spk_4: zero response
spk_0: ninety nine percent after a single vaccination give him an absolute city profile has been sustained even after twelve months and we have seen a similar your response rate in elderly
spk_1: which a particular encouraging and have caught on debate that that high fever response rate we'll see also a hundred percent european version with regard to safety data and the any fifty five three was generally well tolerated ah mean you know we had of cause as expected for a vaccine of that class so limited systemic adverse events
spk_0: and but the majority of the lift upset adverse events were mind are moderate and only to defend that it with this is a fence with forty to get this is that the bed most commonly fever
spk_1: i'm in camps off the comments teacher come to the patient the the repeatedly communicate it a fifty five swedes it's perfectly within our fifth people national infrastructure and we have a high caliber team but significant experience in the vaccine space and we're currently at the adding a significant amount of talent and people as we are preparing for a commercial launch and market access or is brand new vaccine
spk_0: in a brand new indication and we are all extremely excited and about the prospect of being in a position to launch such a folder
spk_5: let's go to line
spk_1: it it again following our hacked and differentiation it around first only up as the plot the only lime disease vaccinated bond clinical development today
spk_0: it is a mildly valence recombinant protein based vaccine uncovering the six main see reply to apply for or youth is prevalent in the northern hemisphere
spk_1: we initiated the say sweet study on the back off positive for thought for three days to study eat looting a pediatric population you know that as part of the ongoing faiths we study and be aware cd key issues observed that let the fat is on there in l a partner fighter to actually stop i'm a significant part of the studies that check if they included in the study even the seasonality am around and a line development of we have current be a review of the trial design and the associated timelines an ongoing and then and is is of caught a process that of will still take a bit of time i think and by way of reminder and with regard to the data that have always been extremely strong for line and of caught are called the m p issue issues a tpp issues that the of be facing now
spk_0: as part of the fates we conduct to not change the picture on the underlying fine
spk_1: and bam you have this program i'm all sweet faith to study
spk_0: salt strong image of city
spk_1: the product has been in more than a thousand people and then fed including pediatric of population and they have seen as part of the booster studied a very strong on the next week with on which is of utmost importance for a product that is expected to be bought scared and overtime when we look at our pipeline and you basically see that and we are currently reviewing i'm most of our family our ah
spk_0: in preclinical and previous clinically candidate with regard to next nickname free and we have a ticket candidate for which we conducted a phase one study we did not progress that further because of the word that the comments and on
spk_6: and a call it
spk_1: i'm however we're currently evaluating a potential take your we entry at the end of this year of very very early next year given that we could leverage one of all existing platform and given that wh all made a few recommendation for he a vaccine to be based on inactivated whole virus technology hm the human a myth that no more virus is a program that that we are
spk_0: the ballot so out of the free clinic your face it has reached the end of the preclinical faith with the initial within the proof of concept been completed
spk_1: but given that the market is shifting in the development arena taught combination vaccines are as we age of be and
spk_0: with decided to evaluate a potential partnering i'm before taking it potentially into a fair trial in human
spk_1: an our lead program in our you know preclinical shop today is ex and babar it
spk_0: the and be target to completion of the antigen identification what that are quite complex
spk_1: when you know development and in a bear in an area of very high on with medical meet by the end of twenty twenty the to other programs that we have in early are in be a computer about the and paabo borrow and and we are still evaluating whether we put them into the weekend a quote are in the and and developments and as a as of now at or not at this is something that we will fight over to cause of this summer with that and i would like to hand over to peter to provide out the financial report thank you don't have a good morning without the new to all of you let's look at the financial review of our fiscal year twenty twenty two
spk_0: total revenues gruber three put a percent were to you could be twenty one driven by throwing up to school
spk_1: total productive reached one hundred and forty point eight million euros an increase of eighty two or three percent to supply you with sixty six put them to certain complicated
spk_0: twenty twenty two corrected into twenty ninth with six moon europa of the early two thousand and one oh cool kuwait nineteen back to put up with excluding are relate to the didn't want to have reached eighty five for to the euros exceeding guys guidance the seventy to eighty million euros moving on to like at fourteen looking a corrective peter it yourself reached forty welcome feeling euro a decrease of mine is a poor for the fences are you at the we got a few ship with the us military
spk_1: a decree the fifth for utility with partially offset by significant a treat of twelve failed into the trouble market or fear the percent
spk_0: you can also reached seventeen could see million euros compared to two point four million euros or twenty twenty two retreat increase of more than six hundred percent once again to by the recovery of the travel market the party productive increased by seventy two percent to reach twenty six point five million euros for fiscal year twenty twenty two it represents the record level of the put thing with as well either managed to increase good rocket propelled consistently over the last two years
spk_1: the very political reform in that hotel live tv as already mentioned related to travel mock recovering faster than expected finally and as as already mentioned we shipped cool with my team that feeds for an amount of twenty nine could pick who you're with to fifth member state of the european union as well as to the kingdom of parade
spk_0: moving off just like fifteen looking at the piano we already covered productive other revenues which to and than forty six point five new york and primarily could be the one off revenues the right from the advanced good agree with with the rope european commission of the united kingdom the cashew they could do these revenues were me thief and twenty twenty one and will be twenty twenty two
spk_1: also included in the other revenue line is the adverse impact to they to amend with of reveal a fifteen agreement with fighter and updated cough to further details will be included in a universal registration documents were yes and we thought we'd like to publish next week total revenue reached the other pick the one countryman you out friday a heating our guiding the fear than forty million to do it the olympic team than yours
spk_0: looking at expensive we observe a significant increase in cost of goods and it has made a result of one a haiku so they to the way down about who ninety program pudding with use market demand researchers you over the fence decrease of hundred and thirty three within your york twenty twenty one one of and talk with nine when you're that the fiscal year twenty twenty two and stayed well within the revised guidance of ninety five two hundred and ten million euros communicated to another nine months without really
spk_1: he decreed compared to pry year is mainly driven by lower spend a lot of on our really two thousand and one program but also by decree spend of clinical trial county can go iraqi at the program about the to slack like into marketing and distribution went to remain stable pathetic for you at with the treatment by the new old and contain seven katrina the you of cost for article gumi the he candidate twice the amount spent a year ago as he packed with their full potential loss
spk_0: he makes been decreased significantly for forty difficult between you and twenty twenty one to thirty four point one million your than twenty twenty two what expensive and benefited from substantial noncash a tough as related to the positive effect on the cost of to the company sabit compensation you to the share price for forward to twenty twenty two you oberlin upside of twenty five years without that and twenty twenty two compare to talk of the thirty seven million euro and twenty twenty one
spk_1: other income of twelve point two million euros mainly consists of our the tax credit and other expenses related to the provision for the ongoing divide into stood so sandwich litigation procedures of other income decreed compared to play year due to the lower our the spent at the related decrease of our the tax credit in twenty twenty two vanilla and rated an operating loss of one of the to keep with forbidding you have compared to sixty one per bullet in your the try year and then adjusted even the eight or let negative fifty ninth with to the us vs minded focus seven it was wondering youth in the time with
spk_7: next like keith
spk_1: looking at our cool it been threatened with the total revenue the feel that a knife with fix munoz with the total cost of goods and services have two hundred and sixty seven point one million years
spk_0: cool the costs of goods including living costs related to the wipe out of the college program the company recognized major costs related to write them all covered related in the and other agreed with that particular the discontinuation of the third party manufactured contract you're creating laugh with a cool with that with twenty twenty two weeks nine forty forty two put a been in use
spk_1: the business outside cool weekend with it took away the fifty want to seven million years as already mentioned the negative other revenues were driven by the lifeline agreement cost of goods and services reached for fifty seven good million euros and to taste of mine put to the noodles cost a bit of a hidden services
spk_0: people three million euros for batted candidate and forty one point eight million years of commercialized for gross national product is reached forty five point five percent compared to thirty six point fight and twenty twenty one
spk_1: cost of goods of ghoulish i put up also include and it's a panel talk to do they get to to color
spk_0: total operating lot for the of out that covered with seventy particular euros compared to operating loss of sixty five the field and euro than twenty twenty one the increased operating loss is a student by the negative revenue way to defy the agreement
spk_1: we did not just like that a team that looking at a bouncy
spk_0: total assets bequeath to eight hundred particular see thirteen million your that the end of twenty twenty one two six hundred and fifty one million euros a december to fill the first twenty twenty two
spk_1: the main be treated as it with a two shot be treated in the joey the only way to the full right out of all corbett ninety two they did in the toy cash and cash a eclipse that the other twenty twenty two were two hundred eighty nine foot woman and us compared to three hundred and forty six point seven million at the end of the crimea
spk_7: that's right
spk_0: we'll never equity were threatened the twenty twenty two two a global offering of a hundred to live in your that the end of the third quarter of last fight us invested in my leave us as particularly of ninety million of at the same time totally that liability decreased by two hundred and forty five of us in particular driven by decree of contract and refund liability written by the revenue recognition of the food revenues way to to the with my kid agreement
spk_1: borrowing the other non current liabilities really a stable while talk of orleans the increase to decrease you should increase in to be fitted organelle on leave either the key decreased and future motivation and the for an exchange impact provisions decrease you to lower cost of chevy compensation didn't buy the decrease in will share price overall i'll never had an epiphany proven that to equity racial twenty twenty two now moving onto the financial outlook on flights twenty
spk_0: which that sought after to each one hundred thirty one of hundred fifty million euros at this includes module remaining relate to that had one fit under different playgrounds
spk_1: thirty nine thirty two a hundred million years of other income i expected in relation to the sale of the t v expected a potential cool though the company and i think candidate
spk_0: it worked with a to rico to development undecorated week between seventy and eighty million euros it concludes the final section of the school and i would like to have back to thomas with and useful
spk_8: hey how much feedback
spk_0: yeah fall our we feed forty or twenty twenty three and and quite significant number of happiness and and be have to use well i'm as mentioned earlier on chicken good yeah and it's of caused the other the left his body without at the come bit of the year please keep in mind at an it we expect at all at had to label
spk_2: in in the united states post like future
spk_1: and probably include the data directly or the initial finding in other markets have caught that it's all about our launch here
spk_0: saw the potential ble approval and the launch and the patent except for the pool and the prb and the potential the abbey fate a teacher mentioned earlier and and there and we try to accelerate at bringing his novel and unique vaccine too many market as quickly as we can and their hands are you should expect with this of x us regulatory submissions in the second half of this year on line of cause we all understand that it is important that we get clarity on our faith we take the study plan
spk_1: the we need to have this as quickly as we can so that we can we start you know enrolling people are in time
spk_9: ah i'm and ten
spk_1: and of course as we are running be adequate a consistent study and an ongoing way we're we will also expect the this know on the public assistance result in the second half of this year
spk_0: i'm dead on it vr all and military we like a potential a new deal each contract as fill up and talk for like a part of the of h one
spk_1: the progression of the selected preclinical for when i taught clinical entry fell we will take a clear decision which one and and by when and as we reported earlier are we are reviewing and evaluating to potentially augmenting on the clinic the pipeline through a program acquisition or partnering in the our and be environment i'm when you look at our strategy and how we feel the company involving over time
spk_0: are we prepared and flight twenty three
spk_1: and you see that turn our value proposition will gradually be it the additional potential growth drivers includes the continued recovery of the travel market to pre call it love of and beyond you you i feel the contract for seattle
spk_0: further expansion of our third party distribution segment and potential in life for thing or acquisition of addition of clinical and a commercial products with that we conclude our presentation and we had back to the operator to take your quest
spk_10: thank you
spk_11: i have reminder to ask a question please press saw one one on your telephone and by for your name to be announced the to your question please press start one one again christian bible we compile a key can a roster we will not take the first question it comes from the of mori right cause from jeffries please go ahead your line is open
spk_12: i have thrived on the progress takes her taken my questions i'm gonna ask one about lyme disease program so for the phase three lime proposed protocol modifications that would allow visor valley with to to remain on track for a twenty twenty five filing i'm guessing you can provide too much into exact interactions with have da but can you talk about some of the scenarios or moving parts involved with that would be able to maintain that the timelines
spk_1: the marine high today and is of cause and can invest in you accept kept me understand that at the arrived rightly pointed out and there is very little we can stay at this point in time
spk_0: and we don't want to disrupt is ongoing process
spk_1: it is very clear that that a as we discussed previously and of course we did lose a significant number of people in the in in is dead the season twenty twenty three of course even if he's analogy you have only a certain window way you can recruit people and them and of cloth what's in narrow is just to add another season he and his is the obvious ones that you already you know figure it out yourself and you know just restarting you know of again this summer or the neck of the season twenty twenty
spk_13: for
spk_1: and there are you know of other what i would cause more creative scenario that made potentially allow a is a filing but those are in the make right now i ended his passion and the and we can't comment on those
spk_12: got it under said i'm and die for chick the i'm i'm wondering if there's been any new correspondence with that the a related to potential for an advisory committee meeting and down a looking ahead how are you preparing for that february twenty twenty four a few ip vote to end it maybe talk about how that boat ah outcomes from never could impact your launch strategy
spk_14: the question so first of all
spk_4: we we are in all making progress
spk_1: in india ongoing review process as his party time i'm there is nothing that had come up in an unexpected way otherwise of color who would have reported it the as far as the work package concerned you know no decision has been taken yet as to whether a dedicated of were pack for the program will be need it or not it goes without saying that we are preparing food beat ah and foot be ford fetch of our pack in our teams are well prepared and without putting everything together and when able in a very positive were packed should it be required our lives we got to the ac i p i mean you know that the a cfp process as be very clearly outlined we had already a number of presentations on the program we will continue following the path as we are being invited to present and the and of cloth we do have a do a few a positive vote of as part of our lawns plan
spk_2: them for the united
spk_12: got it okay thanks i think someone should a my conscience
spk_15: thank you
spk_11: we will not take the next question it comes from the line of evan one from secondhand securities please go ahead your line is help and
spk_14: hey thanks for damn question following up on line
spk_16: the you know
spk_17: as you either have you
spk_18: discussion
spk_12: i'm just wondering have have you seen the capitulating before have ft or email by any commentary or and i journeyed president that
spk_17: is confident that a marketing could be reached
spk_19: and then i recall now
spk_20: after
spk_21: and i would say
spk_1: the your situation with a line is in a way unprecedented because of the season that of the of the defeat add me under normal circumstances if he did not have as he did that is he you know to to be considered you lose you know for whatever reason people in your physical study and then just that you to continue recruiting and recruitment take longer here we have of what a situation where you need you recognize this is that if he because otherwise you don't get the necessary cape cod the in a fluffy book the difficulty setting and and as such there was probably not any rather than two two two two sacks a specific situation now i'm a discussion with fps on you know probably and fine a veterinarian fine school primary endpoint parallel and point and this out of passion that i've been through in my more a thirty years affect the development many many times and it does that mean nothing unusual i'm ends and and intended i think that will off without the need to be paid if on different statistical modeling and then and this is really something that is not new to any regulatory authority but by the end of the day it is always a matter of
spk_0: rift benefit
spk_18: the adjustments and or and that's all i can say at this point in time
spk_22: got it and and i bump on ticking on you can you expand or bit more on your travels a commercial prefecture and in particular have compared to
spk_1: that a very nordic your first of all we do have a own
spk_23: commercial operating entity that organization in the us
spk_24: in canada
spk_25: in the uk
spk_2: in fraud
spk_26: the nordic
spk_2: and austria
spk_1: and there and we are working with a very naughty under a commercial agreement where some of the markets where we have our own infrastructure
spk_20: we sell bavarian nordic product and in other markets web a very and have it infrastructure
spk_1: they sell our quota as we've as that tweeted the of caught with whole collaboration with gonna be under review
spk_18: but for now both parties have made clear commitment to respect their come to their respective a contractual no obligations going forward
spk_22: and had one that's one on each and the
spk_19: he like
spk_2: maybe the more emphasis and partnering and mind preparing that right
spk_0: are there still kind of plants bring that into clinical face wellman
spk_1: tall i would say right now and it's so basically we're a we have as i mentioned earlier with reached the point of a week a couple completion so this means we need to take a clinical entries efficient on this as it
spk_9: but the point is that we're talking here about a brief use and candidate
spk_0: that required and and and actual and and
spk_1: and standalone hmp be doctor really make fan from a product development effective and and and the first while and man is certainly very valuable or to ever worked and later combine this as it was an hour as the vaccine would need to call actually back to the drawing board and because of the specific the around acting and station
spk_27: therefore we have fed we've given it a slight pause and look whether it would not be more valuable to bring this effort at this point already into a partnership model with one of the are it be and you know candidate
spk_22: i'm and and therefore have a more efficient and development food so did not be seen as the bible and value generating option then we'll certainly consider you know taking it into the clinic in order to increase
spk_10: and if the ss and great packers
spk_11: thank you
spk_28: we will not that the next question it comes from the land of mocked her man from he felt please go ahead to line soap and
spk_29: fine thanks very much for taking my question three of i'm i may
spk_30: thirty just that some financial clarity just on the inventory allocated vaccine inventory righto were in the fourth quarter was
spk_31: interested to find out what that was
spk_29: secondly on the obscene bar
spk_28: the virus candidate how have you view the the field given yeah marrone
spk_29: vaccines ahead of you in the clinical ready
spk_1: and then just a little bit more clarity on the reef and liabilities hundred and thirty six million
spk_32: i wouldn't would do that she is is that third do with the the fighter funding all what's within that could give him or clark argument like to thank you very much
spk_1: back and saw a so let me let me start and with the non fine and question at forth about a be ah in as you know the my leave us strategy is that can be paid and air by leave us are and be pipeline prodigy his face the based on
spk_2: the our clear and i've year to have effort
spk_1: where we can play it differentiating road as the glad i think love only laugh
spk_33: so if we entered into a space where others are more advance
spk_1: and we will see whether we can play a different location game
spk_28: and then it if you asked for the right there are there was one programming clinical development think ah about that but we will evaluate our get out candidate
spk_10: and then make a decision
spk_1: before we enter the clinic of course
spk_7: began to thank you
spk_0: thank you
spk_1: no like to refer to the either question yes i've met who requested to first question on on on on the who with go in with rewrite off
spk_0: so basically the poach we took and you know we communicated previously the we have a to can be in the three of local fire of of who we to do a to the new doses of cool with the iraqi the know in the tree would you put to be to get the other twenty would two is basically take a pool right now on semifinished finish put up with also on specific role with you will related to
spk_34: you the cool maxine
spk_0: we have course continue our who are trying to be productive the market with given where we are today we decided it is the uprooted approach to to believe i founded in the toy would we got to your threat requested a refund liabilities because by and large
spk_28: why do they could read a small historic remaining parts that relates to the an old and cute key a contractor or even mobility which is related to the cost of that will do get iraq you with a ticketed a large majority of of new i am with abilities is they could deprive
spk_1: and just on my inventory right going up and three of it
spk_0: a a a you are able to on flat cloud to muddle a scene from we're unclear about what what the actual amount was i mean does that mean that you've written off the product your ah or all your inventory now would the stuff that you don't play
spk_28: and the ship to but or rain that that you you've kept that cost time understand
spk_10: the implications yeah yeah so you you're so to be costly correct we basically wrote off everything except the remaining shipments were very to that was to be included in knowing the two years after rapidly small amount but overruled
spk_11: you can the u you know you consume we had a right off in to add in the financial you twenty twenty two of over roughly hundred and thirty really you that goes into accosted good okay great thank you
spk_35: thank you
spk_36: where will not take the next question
spk_35: it comes on the line of right how my from goldman sachs please go ahead you line is help and hi and thank thank my questions just i'm on the market had trouble vaccine he could just gonna help and than what proportion of the revenue growth and twenty twenty t with driven by volume vs price and how we should think that if dynamic and key and twenty three twenty three an intimate time the and then secondly just again on kind of the commercial vaccine business some as some additional detail in today's release it with helpful on craig's margins i just wondering how we think that they think it twenty twenty three is it safe to him and it's kind of up
spk_1: twenty two dive off and what can be the pushes impulse to this and then just one follow up on line in kind of a scenario where does additional trolls required a different it's car fyi if your potential contribution to they cough the kept at a certain level
spk_37: i
spk_1: so let me start with the line question and then this gift to find a theme is more time to to pick the numbers up as well i would say i would say online soaked suffered you use the term additional study know his study has the study is ongoing saw a solved it means we have to study but not stopped salvage mean that the race and it's only a matter of when do you recruit that necessary issue love people into the study because you love them with them
spk_0: and the second part is of costs related then too
spk_27: what kind of do you keep the read out and and when do you do that without in the in in it is always in relation to old
spk_1: read out off the primary motivation but it's read out after me laugh but so so that that's more from their politically relevant point of view on the cost the think we have not had any discussion yet i'm about any potential incremental costs and it is something that is
spk_0: the will be difficult of as soon as we have a in agreed the development plan going forward yeah then with regard to your volume boost his price questions the when we look at it yarrow
spk_38: as as you can to feel the flight a call from the food rate we looked at the down to the will of of about it in a perfect with her with a stray you know we are looking here
spk_35: the to kite wait to price of a plot to prevent and to the read the do and then the the difference is of course the board you've driven i will we look at to corral
spk_0: we're low volume up tight with are you have roughly four the percent and then and the difference to the to fix hundred percent of of had this is by you would be closer they too and i think you had a second question but if you purchase to pick i one yesterday just on the on the great margin on ah
spk_35: khalil mack
spk_15: an additional information now and the release day and i'm wondering what at eight twenty two levels a kind of a fair assumption for margin going forward
spk_11: yeah so so we look at a much stronger mile growth fun than the average euro that for to karate twenty to thirty two and and them as you can see the growth martin improved significantly the his try you and we would expect it to pool with also to continue as we continue to increase volume
spk_39: i cannot stand up for helpful thank you thank you
spk_40: where will not take the next question
spk_39: it comes from the nine of family the vanni from our eggs securities please go ahead your line is help and i guys thanks for taking my questions i think i've got three mainly finance related
spk_0: and stuff on just on the the guidance other income ninety two hundred and ten million i just wanted to confirmed that that's essentially non cash revenue recognition a question and then intend to the pfizer face three i wanted it was wondering where they you have made a cash contribution to that in twenty twenty t and essay say you can explain why i think he preferred talked about i'm not going to the p and out but he didn't make explain whether coming out in the cash flow and in the final question
spk_41: just on your distribution of marketing expenses show a little bit of a bump in key for is key for good one right could leave on right getting in t this year thanks
spk_0: i am so i thought was the first point on on on guidance and to other income as as we serve it is a related to the feel of you expect to receive a approval of up to kentucky good iraqi candidate and as we expect to sell these pure we are with you it will be cached with they will she ah because we would recognize that other income as he get the cash at his daughter to be very clear we expected to go not into other avenues with other income or you could have done in the in the piano and would we got to the pay a price of faith the cash it's only the way the agreement works is that we basically pay every quarter o share to the to the trial and the a detour to your point is that not going to the p nobody would go in the are under that against the balance sheet against the with a liability which is talked about a previously even we're in a mac with question
spk_39: i'm
spk_15: like a distribution marketing expense so the q what you see a cure for the three the need just pray you have to pre preschool causes which is manage and of course as we get ready
spk_11: wait with our in over get prepared we probably could have to could do you but he candidate launch i'm also cause related to you know overlook commercial activities wrapping up as the markets come back and and be safe to assume that you could see food of is their as we get ready without without commercial interests or to that you know frankly the commercial for structure in view of the of the new launch
spk_0: i can have great thanks very much thank you
spk_42: we will not take the next question
spk_0: it comes from the line of season and plan for treason from the lk please go ahead july is open hi thanks yes it's a ron coming up roses and
spk_34: am i just had one confirmatory question
spk_0: so since you've mentioned that a you've written of all covered making inventory their infant you can you do to it and under sent directly that we will see no financial impact for the current year i mean you we we will we will continue to have sought some on the expense as we continue to kill you know to my life that in clinical trials that we have had targeted at waffle an initially youth you clinical out move out of course but we we do need to ramp up
spk_42: i'm the political ties back off to the gilded an hour on defense we do not expect to during the to a write off as to to the to that point
spk_0: cause if we will need me vegetable garden
spk_11: my own fitness to bury to that would of course driver the news
spk_27: on to that that's basically what we expect for twenty thirty three inches of cool with it the over or alpina
spk_0: okay thanks
spk_1: and then one final question so at last year's aren't the day you presented of there's preclinical programs such as he got a be v rifi which we expect in terms of for updates on these programs during issue thanks
spk_10: a secure line on me it's place
spk_11: objective is to have had an authentic read by the end of the fear very very i next year but it's one programs are two problems and it's just something that the gun inside out of all pipeline but we will definitely you know as informed market and get out which program if we act ft tall and turned a clinic ah that this would certainly be a new style for this year and and then we have is ongoing point about as reviewing potential an additional actor an opportunity
spk_35: to inject now authentic a pipe that is we have clinically relevant capacity and can benefit ah me and and as as happy an ongoing process as and with pointed any be expected new snow and yeah thank you
spk_0: i have a mind that if you wish to ask a question please press start one and one on your telephone that is a star one and one where will not take the next question
spk_1: it comes from the line of dragon sharma from goldman sachs please go ahead your line is open i am thanks taking my additional questions a different follow up on dvd i'm in a piece of the external kind of sources of innovation would your preference for not be kind of a time knowledge platform that you can't you don't have in has right now i would you be looking at pacific asset the effect me just to follow up again on the and my direction initial question on kind of volume best price say i just wondering i guess i could off in a different way were you able to kind of take price increases on crawl that thought products and exactly and twenty twenty two and you expect to be able to do that in twenty twenty three thank you yeah gunshots and let let me start with your second question so yes we we we we didn't increase pricing a across the board for both basically it go to grad school system about the particular
spk_0: and we'll we'll cost also lucky guess continue to exercise be created in in certain countries going forward
spk_27: can you keep your first class english
spk_43: oh say they just the intended kind of the external sources of i'll take the experts in flux the media yeah thought so basically i mean you know that's a believer is a technology have lost the company right so we're not a technology company we have we go by indication we go
spk_11: by indication where we are
spk_14: looking into all indications where we can still play a pioneer role i mentioned earlier first only bad
spk_0: we believe and has historically worked with literally all back theme technologies out there except and irony and of course we would also be open to work on a specific indication on a marinade that it's not our interest to acquire technology company or technology platform are going back and off or be cutting out of patented technology company i'm so we were we will go by a specific indicate

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