Halozyme Therapeutics, Inc.
Q2 2013 Earnings Call Transcript

Published: 8 Aug 2013

[Operator:]

Greetings, and welcome to the Halozyme Therapeutics Second Quarter 2013 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, David Ramsay, Chief Financial Officer at Halozyme Therapeutics. Thank you, Mr. Ramsay. You may begin your conference.

[David A. Ramsay:]

Good afternoon, everyone, and welcome to Halozyme's quarterly update conference call. Joining me on the call today is Gregory Frost, President and Chief Executive Officer. This afternoon, Halozyme released financial results for the second quarter of 2013. If you have not received this news release or you would like to be added to the company's distribution list, please email Temre Johnson at [e-mail]. This call is also being webcast live over the Internet at www.halozyme.com, and a replay will be available on the company's website for the next 14 days. Before we begin, let me remind you that during this conference call, we will be making forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides the Safe Harbor for forward-looking statements. All statements made during this conference call that are not statements of historical fact constitute forward-looking statements. The matters referred to in forward-looking statements could be affected by the risks and uncertainties of Halozyme's business, both known and unknown. Such risks inherent in the company's business are described in our filings with the Securities and Exchange Commission, as well as in our news releases. The company's actual results may differ materially from those expressed in, or indicated by, such forward-looking statements. With that, I would like to now turn the call over to Gregory Frost, Halozyme's President and CEO.

[Gregory I. Frost:]

Thanks, David, and good afternoon to everyone. We're glad to have you all here on Halozyme's second quarter 2013 earnings call. Let me start by saying that David Ramsay may be a new name and voice to some of you, but for me, one of the many highlights of last quarter was reappointing David as CFO. David has a long and distinguished tenure here at Halozyme, joining in 2003 as Chief Financial Officer before serving as Vice President of Corporate Development. He's played an important role in many of our major milestones over the years, and over the last 4 years, gained valuable commercial and operational experience as he resumes the role of the CFO. Now I'd like to provide you additional color on the items from the news release issued earlier today, including exciting updates on the status of our key clinical programs and partnership collaborations. So let's start with our partner programs. While we're now approaching nearly a decade of clinical and commercial experience with our recombinant human enzyme in the United States, we're very pleased to see the regulatory progress of our partners in Europe last quarter. First, with the approval of HyQvia and, the second, with the positive recommendation for Herceptin SC. The European Medicines Agency granted Baxter marketing authorization for all European Union member states for the use of HyQvia as replacement therapy for adult patients with primary and secondary immunodeficiencies. HyQvia is a combination of immunoglobulin 10% and Halozyme's recombinant human hyaluronidase, rHuPH20, to facilitate the dispersion and absorption of the immunoglobulin subcutaneously. HyQvia provides patients an opportunity to subcutaneously administer immunoglobulin therapy at the same dose and frequencies as their previous intravenous administrations. This may offer patients a new option with enhanced convenience over the currently available products for patients managing their PID. We continue to work closely with Baxter to provide necessary supply of both rHuPH20 enzyme to support the rollout of HyQvia in select EU countries in the third quarter this year, with additional territories going into next year. The launch of HyQvia in Europe and first commercial sale last month has triggered a $4 million milestone payment to Halozyme. With regard to the status of HyQvia in the U.S., Baxter noted on their recent earnings call that ongoing dialogue with CBER regarding HyQvia has been both productive and encouraging. As a result, Baxter stated that they remain on track for a BOA resubmission to FDA before the end of year for their CRL response. Our Roche collaborative programs also achieved some very noteworthy progress last quarter in the EU. In June, the European CHMP granted Roche a positive opinion for a line extension application to add their subcutaneous formulation to the Herceptin label as treatment for patients with HER2-positive breast cancer in the EU. On their second quarter conference call with investors, Roche stated that upon marketing authorization, they expect to introduce Herceptin SC in Europe and other markets outside the U.S. in the second half of this year. Roche's pivotal Phase III HannaH trial, conducted in 102 sites outside the U.S., demonstrated that Herceptin SC can significantly reduce the administration time compared to IV with similar efficacy and safety. While a typical intravenous infusion of Herceptin can take 30 to 90 minutes every 3 weeks, the same dose delivered subcutaneously, can be given a just 2 to 5 minutes by injection under the skin with a convenient ready-to-use product. This SubCu formulation of Herceptin may enhance the convenience of treatment for patients, shortening administration times and improved efficiency for health care providers, which may prove helpful in this increasingly cost-constrained environment. Before Herceptin SC product launch in EU can get underway, the European Commission must provide marketing authorization, which we believe could be forthcoming soon. In the meantime, we continue to work closely with Roche on the manufacture of the necessary rHuPH20 supply to support the launch and rollout of Herceptin SC in numerous territories around the globe. Our second relevant program with Roche, MabThera SC, is also under review by European regulators. As a reminder, Roche filed its MAA for MabThera SC in December of last year, and we look forward to updates on the regulatory status of this program. With our first product launch and collaboration with Baxter now underway, and the anticipated launch of Herceptin SC and the potential for a third with MabThera SC in the coming months, we're certainly excited about things coming together and the applications of our rHuPH20 technology entering a new and expanded commercial stage of its life cycle. Now recently, ViroPharma announced the discontinuation of a Phase II clinical trial with a subcutaneous and rising combination with rHuPH20. Discontinuation was driven by the emergence of an unexpected incidents in titer of non-neutralizing rHuPH20 antibodies in a number of patients for the clinical formulation being used in this study. With the exception of HyQvia, we've not observed these high titers in any of our other programs. We have a very large and detailed database from over 9 different rHuPH20 containing products and INDs in various patient populations, with dosing durations longer than that tested in the ViroPharma trial as a historical comparison data set. In most of these trials, it's difficult to see frankly the difference between the control subjects and the treated subjects with regard to antibody titers. ViroPharma reached its decision to discontinue these studies following discussions with the Centers for Biologics Evaluation and Research at FDA. Based upon the additional timelines required to fully characterize the immunological response in this patient population similar to the detailed analysis, we, in Baxter, perform for the HyQvia studies, we support ViroPharma's business decision as we frankly did not consider this clinical formulation to be appropriate for further development until the root cause analysis can be completed. At Halozyme, we always maintain active dialogue and real time data exchange with other divisions of FDA responsible for our other ongoing clinical trials and products, and they remain unconcerned. Last but not the least, I'd like to mention that we continue to make excellent progress in our partnership with Pfizer that began late last year. The teams are making good progress on preclinical CMC development work. So now let's move to our proprietary products and programs, beginning with PEGPH20. We presented some encouraging early Phase Ib clinical data at ASCO this past June. Results showed that our investigational biologic PEGPH20, in combination with gemcitabine, in patients with stage 4 metastatic cancer of the pancreas, demonstrated an impressive 42% overall response rate for the 24 patients treated at the therapeutic dose levels. Further supporting the proposed mechanism of action, we also found that in patients with tumors containing high levels of the PEGPH20 target, hyaluronan, a matrix component enriched in some solid tumors, which we and others believe create a protective environment surrounding many pancreas cancer. This overall response rate was 64%. There is no evidence of a new toxicities of PEGPH20 when used in combination with gemcitabine. Our collaborators and other pancreatic cancer investigators have found that many pancreatic ductal adenocarcinomas, a notoriously challenging malignancy to treat, produce a hyaluronan-enriched matrix environment. This seems to correlate with poor prognosis. So we're encouraged that we're seeing somewhat higher overall response rates in those subjects that may also have the poor prognosis due to the high hyaluronan content in their tumors. Treatment with systemic PEGPH20 has indicated the ability to alter the tumor micro environment by targeting this protective tumor matrix. Depleting tumor cell hyaluronan with PEGPH20 may enable chemotherapy agents to be more effective in addition to slowing tumor growth independently. From an antitumor activity perspective, this type of response has not been observed with gemcitabine alone, which historically has been a very low response rate of only 5% to 10%. Moreover, we believe that with our companion diagnostic, PEGPH20 could be effective in many other solid tumor malignancies, with evolving preclinical data suggesting that its unique mechanism of action may also be well suited for combining with new regimens, including immune checkpoint inhibitors and antibody drug conjugates. So we're very encouraged by these early-stage clinical data, and look forward to additional studies with PEGPH20 in the randomized trials in combination with the most active regimens available to patients today. In April, we initiated a Phase II multicenter trial in 124 patients who received nab-paclitaxel and gemcitabine, with and without PEGPH20 for the treatment of histologically confirmed stage 4 metastatic pancreatic cancer. We're excited that we've now completed the initial safety call and run in phase of patients with the peg Gem/Abraxane regimen and are now opening up all sites to enrollment. The primary outcome measure will be progression-free survival at 12 months and once all 45 sites are actively enrolling, we'll provide further projections as to the completion of enrollment for this study. Also, we're very pleased to announce that more complete data sets from our Phase Ib clinical trial has been accepted for poster presentation at the upcoming 2013 European Multidisciplinary Cancer Congress on September 30 in Amsterdam. We're progression-free, and overall survival data, along with biomarker status will be presented. Lastly, Southwest Oncology Group has received feedback from FDA, approving their randomized Phase II protocol, testing modified FOLFIRINOX with and without PEGPH20 in 140 stage 4 metastatic cancer patients with high-performance status. We're hopeful that this study can open by the end of this quarter. Now we'll switch gears to the Hylenex brand, as well as our insulin pump studies. Market share for our first FDA-approved product, Hylenex, in the U.S. exceeds 50%. In a market with approximately $20 million in annual revenues, it continues to show solid growth within the target customer segments. As we continue to develop and expand this brand, let me share with you some of the exciting progress we've made with the development of Hylenex for the type 1 diabetes insulin pump market. Our Phase IV clinical study, CONSISTENT 1, which began in early Q2 of this year, it is designed to evaluate Hylenex pre-administration in conjunction with rapid analog insulin for adults with type 1 diabetes on insulin pump therapy. People with type 1 diabetes on insulin pumps face a number of challenges in maintaining good metabolic control, such as inconsistent insulin absorption and action and reaching targets for postprandial glucose control. The hypothesis is that Hylenex pre-administration may increase the absorption, resulting in faster insulin action. I'm very pleased to report that we now have enrolled over 400 patients in the CONSISTENT 1 trial and will likely overenroll to approximately 440 total patients this month across 40 sites. The primary endpoints are metabolic and safety outcomes at 4 months. We expect that top line results for the form of primary endpoint in the beginning of 2014, results from 2 other trials we've recently completed with Hylenex support the findings that pre-administration of Hylenex significantly increases the rate of insulin absorption in pumps. Studying this broader population in a Phase IV trial will help ensure that clinicians understand Hylenex in adults with type 1 diabetes in all of these settings. Additionally, we believe this study will help expand the continued safety of exposure in the specific patient population when used across various insulin, pumps and infusion sets. These studies, like all of our other trials, have real time immunogenicity testing that we expect to show similar profile as other repeat dose insulin-based trials we performed previously. We also intend to conduct additional smaller studies to support the type 1 diabetes community and continued commercialization of the brand. In June, at the American Diabetes Association Scientific Sessions, we presented Phase IV data in the scientific meeting from a euglycemic clamp study, examining several pharmacokinetic and pharmacodynamic measures across infusions that changes. The data presented demonstrated that pre-administration of Hylenex at infusion set change significantly accelerated insulin absorption. For Halozyme to continue to support the Hylenex brand, we need to be prepared in 3 important areas. First, we need to have adequate manufacturing capacity to ensure consistent supply in the multiple markets where Hylenex is used. To this regard, we've recently filed the prior approval supplement to FDA for an additional high-speed fill/finish site. Second, we need to test Hylenex with the most frequently used disposable infusion sets that deliver insulin analogs from the pump to the patient, typically over a 3-day period. We anticipate completing this work by the end of September. And finally, we have additional post-marketing studies in relevant patient populations to demonstrate a high level of safety for patients. To this regard, our CONSISTENT 1 Phase IV study is a big step forward in testing Hylenex. Finally, I'll touch on our HTI-501 program in aesthetic dermatology. HTI-501 is being explored as a potential treatment for both aesthetic and connective tissue disorders. This program is making progress, recently presented interim results at the World Congress of Cosmetic Dermatology Conference in Athens from a proof-of-concept clinical trial. The results from 12 of the 34 planned patients indicate pharmacologic activity for this investigational biologic of the cathepsin family of enzymes at the planned 28-day observation period. The study is now fully enrolled and the last patient was dosed in July. The trial is being conducted outside of the U.S. in healthy adult females with fibroscleroticpanniculopathy. The HTI-501 enzyme and its formulation have been well tolerated so far in clinical studies, and all doses and formulations tested, with no serious or serious -- severe adverse events. So we're encouraged by the early data and look forward to additional 3- and 6-month observations for a thorough analysis. With that, I'll now turn the call over to David Ramsay, who can provide more detail on our financial results released this afternoon.

[David A. Ramsay:]

Thanks, Greg. Earlier today, we announced our financial results for the second quarter of 2013. Our net loss for the second quarter of 2013 was $22.9 million or $0.20 per share compared with a net loss to the second quarter of 2012 of $14 million or $0.13 per share. Revenues for the second quarter of 2013 were $14.5 million compared to $7.8 million for the same period last year. R&D Expenses for the second quarter of 2013 were $28 million compared with $16.1 million for the second quarter of 2012. Similar to R&D expenses for the first quarter this year, a significant portion of it is going towards the manufacture of launch inventory for our collaboration partners. This is material for which we have firm orders. It has the effect of grossing up our R&D line as the material is made, but you'll see offsetting revenue contributions in the collaborative agreement line of our income statement. SG&A expenses for the second quarter of 2013 were $7.3 million compared to $5.6 million for the same quarter of 2012. And cash, cash equivalents and marketable securities were $76 million as of June 30, 2013 compared with $87.4 million at March 31 and $99.5 million at December 31, 2012. Net cash used in the second quarter of 2013 was approximately $11.4 million. Financial guidance for 2013, which we announced earlier this year on January 7 remains unchanged, with net cash burn expected to be between $45 million and $50 million for the year. Now I'll turn the call back over to Greg who will provide some additional comments.

[Gregory I. Frost:]

Thanks, David. Before the close of this part of today's call, I want to say that I'm particularly pleased by the broad-based progress we're making on our partner programs within the EU regulatory arena. With HyQvia commercialization underway and 2 products from Roche, Herceptin SC nearing launch, and MabThera SC expected to receive a CHMP opinion in the coming months, this is truly an important and exciting transitional period for the company. We're getting closer to achieving and delivering on several important milestones that could have a significant effect on our financial results in the coming years. Realizing our goal of advancing patient care with truly innovative therapies will be a significant accomplishment for Halozyme. I'll now ask the operator to open up the lines for questions.

[Operator:]

Our first question comes from the line of Jason Butler with JMP Securities.

[Jason N. Butler:]

Could you guys hear me okay?

[Gregory I. Frost:]

Yes. We can hear you, Jason.

[Jason N. Butler:]

Okay. Great. So just on the antibody titers, you've now had 2 programs that are essentially blood-derived products that you see an increased antibody titers from. Is there anything that you can see or say about a mechanism here or anything you can say that gives you confidence that this is something that's specific to blood-derived products that you won't see in non-blood-derived products other than the fact you haven't seen it in any of your non-blood-derived programs?

[Gregory I. Frost:]

Jason, I can start on the basis that obviously with 9 product formulations in multiple different patient populations, we've got a pretty good database from the standpoint of other products to work from. But he fact of the matter is, we can certainly speculate on these things, but until you've done a root cause analysis to really address between the patient population a specific formulation or the product that's being combined with, you really need to do that analysis, I think, before we would go through and making any conclusions on it. And obviously, for -- in the case of ViroPharma's product, they need to do additional characterization to really understand that.

[Jason N. Butler:]

Okay, great. And then on Hylenex, the manufacturing capacity expansion, can you talk about what the timelines are there when you really feel comfortable that you have a diverse supply of Hylenex?

[Gregory I. Frost:]

I think the safest thing in what we say right now, Jason, is when we get a better perspective of the different fill/finish lines that we have, this is something which -- ensuring supply is one of the most important things to do in our industry, and so we take that very seriously. From the existing line we have right now and the others that are coming online, I think that we'll have a good perspective, probably, of how that's coming together towards the end of the year.

[Operator:]

Our next question comes from the line of Ying Huang with Barclays.

[Ying Huang:]

So first of all, Greg, I guess, in terms of the path forward for the 501 for cellulite, what's your plan here? And then secondly, I guess, can you outline the commercial opportunity for subcu Herceptin here? I know that -- hopefully, we'll get approved pretty soon by the agency.

[Gregory I. Frost:]

So as far as the first one is concerned, this is an early program, so I want to caution people that this isn't something that jumps in from here into registration trials. So what we're going to do is take a look at the data when it comes out, and we'll make a portfolio assessment to see how the data look for essentially development from there. As far as the data is concerned, we think that so far, it's got a very favorable profile. But there's still a lot of work to be done to scale up and get manufacturing and other things together before we talk about next steps in what we partner keep, et cetera. As far as the commercial Herceptin SC opportunity is concerned, that's Roche's program. I would direct you to their presentation. I think they gave a decent additional set of color on that at their most recent investor call. So if you take a look on that, you can probably get a better perspective of how we can look at it.

[Ying Huang:]

And then I just have one follow up on the timing for PEGPH20 data in pancreatic year?

[Gregory I. Frost:]

Yes. So what I can tell you, #1, obviously we'll give some updates from the Ib from the perspective of the additional clinical data that will be at ESMO in Amsterdam. We're very encouraged by the program from a development perspective in the different areas of inquiry. With regard to the Gem-peg Abraxane, with the study that we've just completed a safety check study in the initial set of patients to ensure that, that triplet combination is well tolerated. So until we've got all of the sites, the 45 sites there that are in active enrollment, where we can get a sense of the overall ramp, we'll give a perspective of where we think in 2014 that should complete enrollment. And then as far as the FOLFIRINOX study is concerned, that's being looked at with SWOG, that's the program which we love to see that get the sites opened by the end of the quarter.

[Operator:]

Our next question is from the line of Charles Duncan with Piper Jaffray.

[Charles C. Duncan:]

Good ones were asked, but I wanted to follow-up on perhaps the PEGPH20 in pancreatic cancer. Understand that enrollment is going to be governed by site, but are you -- it sounds like you're expecting 2014 to be -- have enrollment complete and then data in roughly mid-'15?

[Gregory I. Frost:]

Yes, I think from the perspective of the exact quarter where we can see things come together, that would be a safe assumption. Obviously, our clinical operations team has been really busy. Once they completed the safety check, getting all of the sites, and they're spending most of their time around the country getting through the rest of the remaining site activations. But I think that we certainly look forward to seeing the additional data set of mature material from the Ib, and then getting on growth to back into enrollment from there.

[Charles C. Duncan:]

And then, Greg, can you give us a little bit more color? I know you can't talk about the actual data, but what would you like to see out of ESMO from the Ib in terms of encouraging to invest in this program?

[Gregory I. Frost:]

Well, this is something, as you know, when abstracts go in, we don't like to position anything, some things that are embargoed on a presentation. But I think what people would like to see, #1, is more mature data set of all the patients in, and then secondly from the standpoint of understanding better, the kind of intersecting analyses with the companion diagnostic that we've been putting together. So that would be I think very helpful information for a lot of folks.

[Charles C. Duncan:]

And then final thing on that, Greg, in terms of the end points for the Phase II, I read them to say one year progression, what are your expectations in terms of the control arm on that?

[Gregory I. Frost:]

Well, we're going through and using the exact same enrollment criteria that was used for the IMPACT study that was run most recently. So that's with 800 patients is probably the most recent reliable data that's available there based upon enrollment criteria and perform status. So I think from that perspective, when you look at it, if you take an assumption of thinking that something that could have 5 months on PFS in the Gem/Abraxane, that gives you a really good metric to look for a comparison.

[Operator:]

Our next question comes from the line of Jim Birchenough with BMO Capital Markets.

[Jim Birchenough:]

And just a couple of quick questions. The first one is following the very positive data in pancreas cancer, has there been interest either from cooperative groups to investigate us to look at this neoadjuvant setting for helping downsize tumors? And second question, as you think about other solid tumors, is there obvious go-to solid tumor next, which has high levels of hyaluronan or are you going to be serving tumors looking for subsets of patients that have high levels of hyaluronan?

[Gregory I. Frost:]

Sure. So first let me bring you to the first question, which if I get this straight, specifically regarding neoadjuvant therapy and I think you're talking about a downsizing that could get patients that are unresectable to resectability. This is something...

[Jim Birchenough:]

Correct, yes.

[Gregory I. Frost:]

We have some folks that have actually gone through, our IST program we have a large number of applications that come in for supply-study drug in collaboration. There is actually 2 different groups that have been looking at that and are actually seeking funding to do it. The excitement, of course, for this is you have patients, which if you could get them to surgical resectability, you can dramatically change their overall outcomes. And this is, I think, in the end will be one of the most transformative things that can happen. So I think to that regard, we'll stay tuned on that to take a look and it's certainly a part of the overall package that comes together as we think about trying to help people with pancreas cancer that we're really passionate about. Secondly, with regards to other solid tumor malignancies, we do have a number of other ISTs that our review committee has been going over in other types of cancers. I would tell you that those are things which we think from the science in chasing the biology that we've really spent a lot of time being kind of disciplined as far as surveying the landscape, starting with the biopsies and really understanding the disease and looking for those where the biology supports it. As an example, there are certain areas, for example, in triple negative breast cancer where we're very interested just because of the unmet need there, as well as the biology and a good intersecting component. The second, of course, is this context of things is bronchogenic non-small cell lung carcinoma. So essentially, what we're taking a look at in some of these different malignancies is, one, first to say where does the biology match up from the diagnostic, but the second, of course, being where there's the unmet need. So what we're doing right now with those is looking at different investigator-based queries and trying to help them out from the standpoint of really understanding the data. And what we're doing today is getting the diagnostic squared off, so that it could be used for actual enrichment designs in some of these other malignancies from a support line. Of course, that's still a bit more work for each one individually.

[Jim Birchenough:]

So it sounds like then you have a U.S. IST network to try and help you identify where perhaps the next Halo-sponsored study would be?

[Gregory I. Frost:]

That's right. So what we've got, I think, of being able to use the diagnostic. Right now, it's being used in both trials, the SWOG design in our own from essentially a end-of-study analysis. But the goal is trying to get some of these set up, where we can use this for actual screening upfront for doing what we would call a partial enrichment risk-stratification. And so that's something which won't be online until the early part of next year for some of these.

[Operator:]

Our next question is a follow-up question from the line of Charles Duncan.

[Charles C. Duncan:]

It was related to Hylenex, and wondering if there is any interest from third parties for that program at this point?

[Gregory I. Frost:]

What I would tell you is Hylenex is a product which we've looked at and is brand that is doing quite well and our commercial infrastructure is already paying for itself. And obviously, the foundation we put in place really focused into the type 1 diabetes population and pumps is where we think we can make a big difference in our own footprint, if you will. But certainly, from the context of interest of others on the larger MDI opportunity, that's something where we always have good dialogue with the folks in the larger diabetes space, where it would be outside of our footprint. So we keep those sorts of discussions live, but we certainly think that all of the material that we're putting forth as far as the initial thin edge of the wedge in the pump opportunity that lines things up very nicely in the future.

[Charles C. Duncan:]

Okay. And last question is regarding the Pfizer program, I know that you can't say much, but can you say anything?

[Gregory I. Frost:]

I think I've said everything I can, except for the fact that it's a great partnership and the teams are working really actively well together. And that it's a good mix from the standpoint of biologics that folks are working together and getting all the good formulation and preclinical work out of the way that can line things up for the clinic.

[Operator:]

Our next question comes from line of Richard Reznick with William Blair.

[Richard M. Reznick:]

This is Richard Reznick for John Sonnier of William Blair. Just a quick one on Hylenex. You mentioned that you'll see top line data toward beginning of 2014. I was wondering if you could just talk about where you think your regulatory strategy might be assuming that you had positive top line data? For example, would you have to submit a separate application or could you actually go ahead and do compendia listing or something a little bit more abbreviated because Hylenex is already an approved product.

[Gregory I. Frost:]

Yes, it would be in the format of the latter. We're obviously going through and the key things are, #1, I think this trial that we put in place for the 400 patient exposure. We work very closely with advisors, so we think that's an important anchor to make sure that we've looked at the product in the right patient population. But that's effectively one of the key pieces that is gating, I think, from the context of introduction, obviously keeping it will mind the others from the context of the fill/finish supply and things of that nature.

[Operator:]

Dr. Frost, there are no further questions at this time. I'd like to turn the floor back over to you for closing comments.

[Gregory I. Frost:]

I want to thank everyone for listening to our call today. And, obviously, if you have questions or need additional information, always feel free to contact me or David Ramsay. Have a great evening, everyone.

[Operator:]

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.