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spk10: Good day, everyone, and welcome to today's Intel GenX second quarter 2022 financial results call. At this time, all participants are in a listen-only mode. Later, you will have an opportunity to ask questions during the question and answer session. You may register to ask a question at any time by pressing the star and one on your touchtone phone. I will be standing by if you should need any assistance. And it is now my pleasure to turn today's program over to Stephen Kilmer, Investor Relations.
spk11: Thank you. Good afternoon, everyone, and thank you for joining us on today's call. With me on the line are Dr. Horst Hervé, Intelligent Excellence CEO, André Godin, our President and CFO, Dr. Dana Mattson, the company's Vice President of Business and Corporate Development, and Tommy Kenney, our VP, Legal Affairs and Intellectual Property and General Counsel. Before we begin, I would like to remind you that all amounts mentioned today or in U.S. dollars unless otherwise mentioned, and today's call may contain forward-looking information that represents our expectations as of today and accordingly are subject to change. We do not undertake any obligation to update any forward-looking statements except as may be required by U.S. and Canadian securities laws. A number of assumptions were made by us in preparing these forward-looking statements, which are subject to risks and results may differ materially. Details on these risks and assumptions can be found in our filings with the U.S. and Canadian Securities Commission. I'd now like to turn the call over to Dr. Gervais. Horst?
spk08: Thank you, Steve. Good afternoon, everyone, and thank you for joining us for the Intergenic second quarter 2022 conference call. On today's call, I will provide a corporate update and discuss the progress we've made on our key pipeline projects. Then André will review our second quarter 2022 financial results, Following that, we will open up the line for our questions. Although we continue to progress each of our development programs during the second quarter, today's corporate update will be brief. Our material use flow, which we expect will be heavier as we enter the four months, was relatively light this quarter. Let me begin with our tie-in. We completed the manufacturing of a clinical trial batch for one of the partner programs. The study materials will be shipped in September, and we anticipate the start of the study later this year, most likely still in the third quarter. Resupport, in May, we met with Exceltis to discuss the potential for the commercialization of Resupport in additional countries. The call was positive, with Exceltis indicating that there is a strong interest for certain Eastern European countries. In addition, We are in discussions with other distribution partners on licensing rights for the MENA region. Moving on to Tadalafil. Intergenics and Equestiv have formed a joint task force to work on the response to the CRM that Equestiv had received for the product. Now moving on to our cannabis films. We are working to fulfill Heritage's purchase order for their resale of our CB4 control film containing CBD to one of the top three licensed producers in Canada. That is expected to happen in early September. Accordingly, we expect the related revenue to be reflected in our Q4 2022 results. Our partner heritage continues to rush CBD distribution in Canada and recently got the product listed on the Shabazz Drug Mart website. We continue to push distribution in Canada and recently met with the Nova Scotia Liquor Corporation to discuss the products. And finally, as to the Tilray litigation, Tommy will be available for questions during the Q&A session. Now moving on to Montelukast, and initially regarding the We're in a study, as we reported earlier in the year, the study and correspondingly our recruitment efforts have resumed. Recruitment is ongoing with six sites activated. As of now, a total of 33 patients have been randomized, 22 of which have completed treatment. We're working diligently to improve the recruitment rate and have now launched a Facebook awareness campaign to attract more study participants and accelerate enrollment. With these currently ongoing activities, we expect to complete enrollment later in Q4 of 2022. Final study results are thus expected to be available in Q2 of 2023. Finally, on animal health, we delivered a beta-film-based clinical trial batch to our undisclosed animal health partner or study in dogs in the U.S. We recently received partial study results and are waiting for the full report to be issued. Once available, we will discuss a tailored program to further develop the product. In addition, we are in discussions with several animal health companies regarding our Betafilm platform. Again, the progress we continue to make is not, at least not fully reflected by this quarter's lighter news flow, which we expect will be a short-term trend. We look forward to updating you on our progress in the coming quarters. And with that, I would now like to turn the call over to Andre for a review of our financial results. Andre?
spk07: Thank you, Urs. Good afternoon, everyone. As Ors mentioned, I'll take a few minutes to discuss the company's financial performance for the second quarter and the June 30th, 2022. For the second quarter, total revenue amounted to $398,000, up 146% from $162,000 in the same period last year. The change is mainly attributable to an increase in R&D revenues of 210,000 and royalty of 28,000. Operating costs and expenses were 2.6 million for Q2 2022 versus 2.1 million for the corresponding three-month period of 2021. For Q2 2022, the company had an operating loss of 2.2 million compared to an operating loss of $1.9 million for the comparable period of 2021. Adjusted EBITDA was negative $2 million for Q2 2022 compared to $1.7 million for the same period last year. The net comprehensive loss was $3.2 million or $0.02 on the basic and diluted per share basis for Q2 2022. compared to net comprehensive loss of 2.5 million or two cents per share for the comparable period of 2021. I will now turn the call back to Dr. Zerbe. Orson.
spk08: Thanks, Andre. Before we proceed to the Q&A section, I'd like to once again recognize our team for executing on our long-term strategy And with that, I will now turn the call over for questions. I would like to remind you that our forward-looking statements apply to both our prepared remarks and the following Q&A. Thank you.
spk10: And at this time, if you would like to register to ask a question, please press star and 1 on your touchtone phone. Again, that is star and 1 if you would like to register to ask a question. You can remove yourself from the queue at any time by pressing the pound key. We will pause to allow questions to queue. We'll go ahead to our first question. This comes from Matthew Tobias. Please go ahead. Your line is open.
spk16: Matthew Tobias Hi. Good afternoon. Can you please tell me what is happening with Resupport and Tadalafilm that's been on hold for too long.
spk08: Okay, Dana. I'd like to turn over to you for more questions.
spk01: So for Resupport, the product is launched in Spain. And as you know, we launched the product with our partners about a year ago. The product is doing well. As you might know, Risotriptan is the number one prescribed migraine molecule in Spain, and of those products, Resupport is the first alternative to MagSalt, which is the brand. So we're waiting for the full 12 months to be completed to see how the product really performed in the first 12 months, but so far we're quite happy with the success story there. On the US side, we are preparing with the submission or with our response to the CRL which we will be doing later this year, and then meeting with the FDA to really accelerate this probe. So it is coming. There were some questions on the FDA before that took us a little bit longer to prepare batches, had some issues with some APIs, and now it's all resolved, and we should be on our way by the end of the year. Talking about Tadalafil, this program is partnered with Equestiv, and As you know, we released recently that we have a partner for the U.S., so the partner, Equestria and us, we are preparing to respond to the CRL. We have a joint project team to really work through the last details, and the plan as well here is to be ready and to submit early next year. That's our response.
spk08: Can I just add one comment which is really brand new and not even Dana is aware because he's currently not in the office. We have decided to not even waste time by initially going to the FDA and discuss our approach to the response to the CRL, but rather submit our response directly. That will save us a couple of months. The reason for this being that upon review of our data package, our external consultant decided that we have a very solid case and do not need to waste any additional time by applying for meeting and then meeting with FDA who will submit directly. Like I said, that will save us a few months.
spk01: Yeah, that's right.
spk08: Yeah.
spk16: And sorry to interrupt. We've been trying to get Resupport into the market for, I think, over 10 years now or at least eight years. And we've lost an opportunity with Tadalafan in the last three years because we partnered with Equestive. When will we actually start monetizing our assets? And are we ever going to? And how does it even justify raising funds and not bringing a product to fruition despite so many years? Why are we always stuck in the lab?
spk08: Well, on Resupport, I mean, I understand your frustration. We have not always been happy with the time slow progress ourselves either. As far as Resupport, we've stepped it up very significantly, as you just heard from Dana and the addition that I made. We're moving now very rapidly, and the product will be, besides Spain, where it is already on the market, will be on the market in the U.S. next year. On the Dalafil, the decision to cooperate with Equestiv was made a few years ago under the impression that this would accelerate our path to market. And that was at the time, to the best of our knowledge, the best decision we could make. What we did not know was and could not possibly know was that FDA came back with a pretty significant complete response letter to Acquestive's NDA, or 505 NDA, which we are now responding to jointly with Acquestive. We formed a joint task force that is working very diligently on clearing the path towards resubmission. Our formulators here are involved in that work. So I acknowledge that Tadalafil has, or the path to market for Tadalafil has had and has seen some bumps, but undoubtedly we're not, we're now on the right path and are moving very swiftly. So as Tadalafil we're expecting the product to be on the market, and if I'm not mistaken, early 2024, right?
spk10: We'll take our next question from Hugh Kiley. Your line is open.
spk06: Yes. Good afternoon, everyone. Thank you for taking my questions. On the Resipor resubmission, Dr. Gervais, when you resubmit that to the FDA, do they have to then go through and do another plant inspection after you send in the new ANDA?
spk08: It's not a new ANDA. It's not an ANDA to begin with. It's a 505 NDA. That was my mistake. You're right. Sorry about that. Yeah, yeah. No problem. I'm not quite sure. They may or may not. conduct another pre-approval inspection. The regs are not quite clear. They do not have to come mandatorily, but they might very well come, even though they recently inspected our facility. So honestly, I cannot answer that question with certainty. There is certainly a very good chance that they will come and we will be prepared but whether or not they actually do come that we don't know okay and uh follow on to that was uh you know the stability testing with your back your three batches all the data looking good on that they look really excellent and that is the main reason as to why um i had mentioned before in the prepared remarks that we have decided to move directly towards responding to this and not bothering meeting with the FDA. We have very, very convincing data that do not raise or cannot possibly raise even the slightest stability concern. The data are, as we say, squeaky clean.
spk06: That is very good news. And then when the submission goes through, would the facility, would that be prepared for, you know, once it's approved by the FDA, does it take, is it a long lead time to get the plant ready for the U.S. and Canada production?
spk08: We are gearing up for production. At this point, I cannot give you a precise timeline. That would really be very speculative and a little confusing. premature.
spk02: But it's only for the U.S. There is no fire were submitted in Canada.
spk08: Yeah, that's right.
spk02: Just to clarify.
spk06: Okay. And the... Okay. I will go back in the queue. Thank you. You're welcome.
spk10: So next to Adam Tuberow with Psychedelic Invest. Your line is open.
spk00: Thank you for... Let me ask a question. The first question is, how many different strips do you guys have the capabilities of manufacturing at the same time? So let's say, for example, you guys are manufacturing rhizoport. Can you manufacture any other strips at the same time? What are the capabilities of your manufacturing of the strips? Do you just focus on one strip at a time, or like one formulation at a time?
spk08: Yeah, that is typically what we do. We have one commercial size quarter and the GFP requirements. We would make one product at a time.
spk00: Okay, thank you. The next question is, in regards to a tie, what are the, I know there are two already confirmed things that you're working with them. Can you just, are you at liberty to say what they are? Because I've read them on the pipeline before, but I just want to get confirmation from you guys.
spk08: I don't think we can disclose the compounds, right, Tommy? No, unfortunately not. Okay, no problem.
spk00: My last question is, is there any type of update you can give on Tilray? Because you guys have been in arbitration with them for quite a long time now, and we've heard nothing. Is there anything that you are at liberty to say? Anything at all?
spk08: Sure. I'll turn it over to Tommy. Tommy will comment.
spk02: I hear you and although it might seem like a long time for you from the outside perspective, it's still a little time if you compare to the actual court timing. It's not even a year since we initiated arbitration. At this point, I cannot comment on the process and we don't have anything to share. We're pushing as much as we can. The timeline is not necessarily in our control. It's the arbitrator that decides everything, but right now we don't have anything. I cannot comment any further than that, but as soon as we get a decision on the case that we can update the investor, we'll be very happy to do so.
spk00: Okay, and my last two questions are, have you guys been approached by any other marijuana companies? You don't have to say who or anything, but have you guys been approached by other marijuana companies in regards to showing interest in the strips?
spk08: We have in the past, but Dana, maybe you want to comment.
spk01: Yes, no, of course we have many times. So either while we were with our current partners. Some of them we can't do because we're bound under exclusivity, but yes, we have been approached many times.
spk00: And sorry, the last question is, so I feel, I'm not sure if I read this somewhere or not, but does Atai have the first right of refusal in terms of getting access to Montelukast when that's possible?
spk02: I don't believe so. I know they have no right of first refusal. What they have is as part of the strategic partnership agreement, they are on our board, so they are involved in it. And maybe to give you a little more context, they didn't really want us to, let's say, divest this opportunity before them being aware of it. So they don't have a right of first refusal. What they have is the right to be considered and to be at the table when we make those decisions. But by default, they're on our board, so they are involved.
spk00: Awesome. Thank you very much. I'll get back in line. Thank you.
spk10: We'll take our next question from David Nguyen. Your line is open.
spk14: Thank you for the call today. In regards to the Buena trial, Dr. Zerbe, you mentioned that 32 patients have completed I'm sorry, 32 patients are enrolled, but 22 are completed, the treatment. Can you share?
spk08: I'm sorry, you broke off. We didn't really get your question.
spk14: Yeah.
spk08: I understand you have a question about Monteluca.
spk14: Yes. Can you hear me okay?
spk08: Yeah, now I can. Hello?
spk14: Okay, so of the 22 patients who've completed the trial, can you share any data on those 22 patients?
spk08: No, not because the study is fully blinded, and we would only be able to look into details by breaking the randomization code. So the answer is no.
spk14: Okay. Thank you very much for that.
spk08: I'll go back to you. You're welcome.
spk10: We'll go now to Lindsey Murphy. Your line is open.
spk09: Hi. Yes. Thank you for taking my call. My first question actually is just about the Montelukis. Have just when that is or when it is through with the discussions, are there any other discussions with any large pharmaceutical companies? about monolith tests?
spk08: We had those in the past before we started the program, and we saw very significant interest in a number of very significant or by a number of very significant companies. But ever since we have commenced the study, we have discontinued those efforts because the comment we received from from every single contact we ever made was we're interested, but we would need to see the results from your proof of concepts study before we can go any further. And so we're waiting now for the completion of the study and results being available before Dana hits the road and reaches out to potential partners.
spk09: Got it. I understand. Thank you. And one other question, for the heritage order, can you share how large that order was?
spk08: A quarter million.
spk09: A quarter million. Okay, thank you so much, Shai. We'll go back in the queue.
spk10: We'll go now to Brent Gake. Your line is open.
spk13: Good afternoon, Dr. Zerbe. A couple of quick questions. the RIS timeline or not having that meeting was going to save you all a few months. So what exactly is the timeline now? I mean, when are you, I know you said next year, I think, but when next year do you think the product will be available?
spk08: I believe second quarter is safe.
spk06: Third quarter.
spk08: Third quarter, yeah, would be safe then. The review time is six months, so we submit, you know, over the next weeks. Review time is six months, and then come launch preparation, so Q3.
spk13: Okay. My next question, if, you know, once that happens, if you are still receiving additional orders from Heritage, can you produce those and RIS report? Yes.
spk08: Yes, there shouldn't be a problem.
spk13: Okay. And my last question, when do you expect to be cash flow positive?
spk08: That's a question for André. So, André, if you want to comment.
spk07: Yeah. We are expecting to launch two products next year, one generic product that we – have partnered with Exceltis and Resupport. So if those two products are launched as scheduled, we should be cash flow positive probably by I would say Q3 or Q4 next year.
spk13: Okay. Thank you, guys. You're welcome.
spk10: Our next question comes from . Your line is open.
spk15: Yeah, good afternoon, Dr. . My first question for you is in regards to the CRL that you guys received, I believe, in May for the buprenorphine. Could you shed some light on the resubmission progress and timeline of resubmission?
spk08: So, first of all, I can confirm the molecule. That is confidential. I don't know where you got that information from. But I don't want to confirm that we have pretty significant or pretty severe confidentiality obligations. What I can say is that the response has recently been submitted for that generic product.
spk15: Okay. So it has been resubmitted to the FDA?
spk08: Yes.
spk15: Okay, and is there any, like, time frame on the review after your review submission? Is it a six-month review?
spk08: I'm not sure. I'm sorry? Oh, I'm sorry. Six months review. That's what we're expecting, a six-month review.
spk15: Okay, and... The next question is in regards to the Resupport US resubmission. When do you anticipate to submit the batches? I know you said that you're going to avoid the, you know, the meeting with the FDA to save time, but when are you looking at resubmitting?
spk08: We haven't defined a precise date, but it'll certainly be within the next three months from what I can see, right? So within the next three months, for sure.
spk15: Okay. And my last question is for Tommy. Well, actually, I have two more questions. Sorry. This question is for Tommy. It's in regards to the litigation with Tilray. I know you said you can't, like, you know, shed some light on the progress. But the question that I would like to ask is, since Tilray has breached the agreement that you had with them, Is the company possibly considering taking back the exclusivity on the THC as well? So they don't have any rights for the THC, so this way Intelligenix will be free and clear of Tilray to be able to make possibly, you know, business agreements with other companies.
spk02: Without commenting on the arbitration, I think from what it looks right now, it's very hard to see a path where there's a relationship between the company, meaning Intelligenix and Telluride, going forward. But I don't know what the outcome of the arbitration will be, but this is a clear assessment at this point. By both companies, actually. Yes.
spk15: Okay. And my last question is for Dana. It's in regards to the VitaFilm uh batch that you guys submitted to that company when when do you see like i mean when do you think like time frame wise would we be able to know like you know or when would you guys be signing an agreement with that company and like kind of going public you know about it as to which company you're dealing with in the united states and so forth um
spk01: Well, first of all, the trial, we submitted the product so that they can do the clinical trial. We're waiting for the full data readout to see if the goal that they wanted to achieve with the film has been met. And once that's clear and we define the path forward how a full clinical trial program looks like, then we will sign the full agreement. At this moment, You know, it's a little bit of crystal ball. I don't have the full data set, and there are a lot of assumptions, but there is a time frame that we're trying to do this, and we said, you know, within probably a reasonable couple of months, we should know if this has worked, if, you know, our firm delivers the product to the way that it's supposed to deliver it, and then we will go into contract stage. So we would see something this year.
spk15: Okay, okay, that sounds great. And I'm sorry, this is the last question. In regards to the Monte Lucas, Emory University is also doing a study and they're supposed to be having their final results coming out in October of 2022. If they yield positive results, how do you think that would affect Intelligenix? I mean, because Intelligenix has a more superior delivery platform for that molecule. So do you think, like, how do you think that would affect if they come out and say that they did achieve, for example, significant positive results? How would that affect Intelligenix?
spk08: Yeah. First of all, I mean, we're monitoring their progress, of course, also. First of all, they're also delayed. I mean, they announced about a year ago or whenever it was that they expect results to be available in October. I think that's at this point wishful thinking. They have also pretty serious setbacks in their enrollment, just like we did mostly due to COVID. I mean, we know very well what they're doing. We know the dose levels, and we know the bioavailability of the product that they are that they're dosing, I'm not so sure, to be honest with you, that there will be meaningful results coming from that study much before our study will have been completed.
spk15: And Intelligenics does hold the Orange Book patent for that, right?
spk08: For once, I tell you, they are dosing. lower than we do now knowing that we have a 50% higher bioavailability or the film than the tablet. I mean they dose effectively less than half of what we are dosing and we know that the response and the efficacy on neuroinflammation is related to the dose level. So with that, I see the intergenic study and the intergenic product to be at a significant advantage. But these are admittedly qualitative studies. But again, coming back to the initial part of your question, I don't believe that they will be able to announce results from their study at least significantly earlier than we will.
spk15: Okay, okay. And I mean, as far as I see it, with the dosing that Indelgenics is currently doing at 30 milligrams twice a day, and with the 50% higher bioavailability, I think the chances for Indelgenics are extremely, extremely high to achieve successful results with this medication.
spk08: That's what we are strongly believing. The only question is, you know, is the study population large enough? You know, I think it is. The study was planned in conjunction with the biostatistician, so we didn't come up with the 70 patients number. A clinician and biostatistician assisted us with that, but we have yet to see.
spk15: Okay. And I just want to say thank you so much for taking my questions. And I think the company is doing amazing progress over the years. So keep going forward and God bless you guys.
spk08: Thank you very much.
spk15: All right.
spk10: And as a reminder, that is star and one for your questions. We'll go now to Doug Dissler. Your line is open.
spk08: Hello, Dr. Zarbi. Can you hear me? Yep. Good afternoon. Yep, I hear you.
spk03: Okay, fine. This question is for Andre. At the end of June, the company showed a cash on hand of $7 million. It appears that we have a cash burn rate of $2 million a quarter. Most of the products that were discussed today have a longer time horizon before they begin to generate any income. How does the company look at the need for additional capital cash to close the gap between what appears to be the amount of cash on hand versus when income will start coming into the company?
spk07: Yeah, thanks for your question. We have a loan with a tie that is scheduled to uh come in in january of 2023 so that was part of the amendment that we signed with them um you know several months back so we had one coming in in 22 january of 22 and another one in 23 of 3 million us and that should be sufficient for us to um to be able to get to commercial products. Like I said earlier, if everything is aligned and on schedule, we're scheduled to launch two products next year, grids of port and a generic product. So if that takes place as scheduled, we should be fine. Because as you mentioned, yes, we're burning about that $2 million a quarter. But since we're going to get $3 million in January and we're expecting to launch in Q2 and Q3 of next year, it should be fine.
spk03: Okay, thank you.
spk10: We'll go now to Tom Maglino. Your line is open.
spk12: Yes, thank you for taking my call. During the last call, I believe there was going to be a meeting with our Spanish partner regarding expanding marketing to other countries. I wondered if you had any updates on that.
spk08: Okay, Dana.
spk01: Do you want me to take that? Yes. Yeah. So as Horst already mentioned, we did have a meeting with them. There is quite an interest from Eastern European countries. So we're looking into how the timeline would work and how we expand into that. So that's the update for now.
spk12: Okay. Thank you very much. I'm sorry I got on the call late. I didn't hear that was mentioned earlier.
spk01: It's okay. Thank you. No worries. You're welcome.
spk10: We'll take a follow-up from Adam Tuberow. Your line is open.
spk00: Dave, thank you so much. Okay. So the first thing I wanted to ask was, based on what Andre just said and what was said in the call so far, between a tie and the deals coming through in 2024, we should be good enough to get to profitability without having to worry too much, let's say, on more dilution and something like that, unless it deals with a tie. Is that safe to assume?
spk07: Yes, that's safe to assume. There's always... You never have too much cash. So, I mean, it doesn't mean necessarily that we wouldn't raise money. But at this point, at this level, at this stock price, it's not a consideration.
spk00: All right. Cool. All right. My next question is going to be for Dr. Zerbe. It's going to be two questions for you. So the first question is, so what would be the advantages of putting a psychedelic like psilocybin on a strip that IGXT has? If you can break that down for me.
spk08: Yeah, just in broad strokes, psilocybin... is not easy to be administered because if you administer it orally, you need to, at the same time, administer a so-called monoamino oxidase inhibitor in order to, yeah, let me put it in like this, in order to extend the the presence of the active metabolite, psilocin, in the bloodstream. That makes it complicated. Nobody likes to concomitantly administer medication just to make the first medication work. You would avoid that by administering psilocybin or psilocin via a film.
spk00: And through, let's say, putting it on a film, what type of things can you tweak in regards to, I know the onset would be faster, but what about something like the duration of the effect? Is that something you guys would be able to tweak?
spk08: Again, generally speaking, what you control with your delivery system is the delivery of the drug to the bloodstream. And obviously, in drug delivery, what you always attempt is to increase the or optimize or increase the amount that you deliver to the bloodstream. Once it's there, the elimination occurs completely independent from the delivery system. So what the film does is it optimizes the rate and extent to which the drug is delivered to the bloodstream. Once it's there, it's out of our control. The elimination occurs, is completely independent from the delivery system.
spk00: Okay, understood, understood. And so the last one would be in terms of, so in a lot of times now, there's many companies now that are looking into sort of deuterating molecules. So I would ask, like, is there – is it fair to compare these strips to deuteration, or is it just completely different where it wouldn't even matter?
spk05: I didn't really – Isotope D2 instead of hydrogen. So they're using isotope to consolidate them.
spk08: I don't know enough about that to comment, let's say, intelligently on that question. So, sorry, I have to pass on that one.
spk00: All right. Thank you for answering my questions, Dr. .
spk08: Yes, you're welcome.
spk10: We'll take a follow-up from Hugh Kiley. Your line is open.
spk06: A few more questions for me. With the submitting the response to the CLL to the FDA once Rizapol gets approved, in the past, there was always the desire to do all the manufacturing at your Canadian facility for the global marketplace. Rizapol, is that still the intent?
spk08: Yes, it is.
spk06: Okay. That's great. OK, then the last my next question would be. Of the. On your last presentation, which was outstanding, doctors every at the Bloom Conference. Any update on the potential for COVID in Parkinson's? Any initiatives? In that arena.
spk08: At the moment we've put this on hold. I I certainly do see. potential, to be honest with you, regarding Monte Lucas for COVID. But, you know, we have to be realistic. Our Monte Lucas program is, you know, at least for a company of our size, quite aggressive with the Buena study. So at this time, we're not pursuing COVID. As far as Parkinson, we have discussions, but I would, at this point, leave it at that and not go further into that. Let me say there are discussions regarding Parkinson's. Okay.
spk06: In the past, Andre, you indicated about some Updating the investor relations program. I was just wondering, we had research reports coming out from Lee Jones. Any other investment houses researching or inquiring about your progress that would issue a research report?
spk08: At this point, there's nothing. actively ongoing regarding a research report. I would like to turn it over to André. André is in charge of IR and related activities. André, do you want to further comment on this?
spk07: Yes, yes. As Urs just mentioned, there's nothing active at this moment, but we've been in discussion with several banks for coverage. We don't really pursue any paid coverage because we feel they're useless. But we're actively, you know, in discussion with several banks and probably planning a roadshow in the fall or in the spring, at which point you get involved with banks and you can expect
spk06: some coverage so it is on the radar but there is nothing that you know that is definitive in the short term okay and last question will be is the addition of the 15,000 square foot storage it's quite an addition to your facility yes it is okay but
spk08: Pierre-André, go ahead.
spk07: Yeah, it is, but there is an expansion plan for the future, so we couldn't let go of that space. For the time being, yeah, we're using it for storage, but eventually, if everything goes as planned, we would expand our production capacity in that space.
spk06: And that's in addition to the other 11,000 square foot production space, Andre? Yes. Wow. Okay.
spk07: We need the entire space. It's a big project. I'm not saying that it's something that we're going to do tomorrow, but it's something that we are considering for the future. And we needed that space to... to eventually being able to move forward with that expansion program.
spk06: Okay, thank you. You're welcome.
spk10: We'll take a follow-up from Jeremy Lappin. Your line is open.
spk04: Yes, good afternoon, and thanks for taking my questions. I appreciate it. I wanted to ask, first of all, just more about what's going on with free support in Europe. I know you've You don't want to say too much, and I don't want to say anything you can't be held to, but why has there been no, you haven't been able to tell us anything about the sales in the last nine months since it sort of went live in Europe? So that's the first question I had. Is there anything you can tell us at all about it?
spk01: Of course, let me take that question. So first of all, the product launched in September, and it's very typical that you get from a commercial partner after the first 12 months of marketing review how the product performed. It takes time to list the product in all the pharmacies, to have it available, to start with the marketing campaign, and we will meet with the partner again after September. So far, all I can tell you is that the product is doing well. It is the number one first alternative after Maxart, and Maxart is the brand that there's great campaigns running in Spain about the product. But at the end of the day, and we're receiving royalty reports, so we see that the product is performing, but how is it performing compared to the market? Is it taking kind of a leadership position? That I can only answer after we have that meeting with the partner. As you know, right now it's August. Most companies close down in August in Spain, so I will only get an update probably mostly at the end of September, beginning of October. So it's not a lack of communication. It's really uncommon to provide an overall view of the product before the full year has lapsed because there's so many activities that take time to see how the product is responding to certain marketing initiatives. And you can't just look at the first couple of months to predict how the product will be performing.
spk04: Okay, well, okay, thank you. I appreciate that. The other question I had is just more a technical thing. How long does it take you to make a batch of strips like the order you just fulfilled, for example? Is that a number of just a couple of weeks, or is it more of most of a quarter? How long did it take you to manufacture that batch?
spk08: If we look at the CVD batch, that's a concrete example. Two weeks to manufacture. than a week to analyze and then we ship it.
spk04: So it's within a month, your turnaround is about a month or so?
spk08: Less than a month, yeah.
spk04: Okay, within a month, less than a month. Okay, but you said that you can only manufacture sort of one product at a time. Yeah. Okay, so is that going to pose any kind of,
spk08: problem for you or how do you how do you plan to deal with that um as you ramp up at the moment not and i will explain why because that that time frame that i just gave you does not mean that you know we will be tied up for three or four weeks with with one product and then move on to the next if you break down the process you know we leave out It starts out with dispensing the materials and preparing the blend. That's a few days, let's say, the better part of a week. And then it goes onto the coating machine. We coat, that's again about a week, and then it goes into packaging another week. So we can typically work in one-week increments because, you know, if... Once the dispensing and blending has been completed and the material has been moved into coating, we can move the next part. Of course, we have to clean, but then we can move the next product into the dispensing and blending area and start preparing the next blend.
spk07: I see.
spk08: So there's a certain breakdown that if we do that intelligently, then we can really you know, compress.
spk04: Okay, so within the same month, you can be working on two or three different orders if you had to. You could fit that in. Yes, certainly do. Right, okay, perfect. Okay, thank you. I appreciate that.
spk08: Yeah, you're welcome.
spk10: We are approaching the end of our program at this time. I'd like to turn it back over to Dr. Zerbe for any additional or closing remarks.
spk08: Yeah, thank you very much. And so thank you for all your questions. So this concludes now our Q2 2022 investor update call. Again, I would like to thank the entire Intelligenix team for its hard work and dedication, our board of directors for their continued support of the management team. Finally, our investors for continuing to believe in and in supporting us. Thank you and goodbye.
spk10: this does conclude today's program thank you for your participation you may disconnect at any time
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