Good day, and welcome to the bioMérieux First Quarter 2020 Business Review Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Sylvain Morgeau. Please go ahead, sir.
Thank you, Valerie. Good afternoon, and thank you for joining us to review our Q1 2020 activity. As usual, I'm online with Alexandre Mérieux, Chairman and CEO, as well as Guillaume Bouhours, our CFO. Before I hand the call over to Alexandre for preliminary remarks, please note that this conference call will include forward-looking statements. I would like to remind you of the usual disclaimer, saying that forward-looking statements are based entirely or partially on assessments or judgments that may change or be modified due to uncertainties and risks related to the company's environment, and notably those that are described in the 2019 universal registration documents. Those uncertainties include, but are not limited to, economic conditions, financial exposure to current exchange situations, change in government policies or regulations, third-party reimbursement policies, competition, and obviously, currently circulating infections.
I also remind you that today's call is being recorded and that a replay will be available in the investor section of our website, www.biomerieux.com. I will now hand the call over to Alexandre Mérieux, and then we will open the call to discussion and questions.
Thank you, Sylvain, and a good day to everyone. I hope you and your family are well. So as you know, the IVD industry is playing a very important role in the current context, and all of us in bioMérieux are fully engaged toward bringing the right diagnostic solutions to the hospitals, the doctors, the patients, and the customers. We focus on employee safety and also on business continuity. When we look at Q1, so bioMérieux delivered a very good performance in Q1, mostly driven by a sharp increase of the molecular ranges and linked to the current health crisis. We recorded also a good performance in microbiology and industry on the weaker one in immunoassay. That is for Q1, but we think we have not seen yet the negative impact of the reduction of patient traffic in the hospitals.
I will not come back with more details on the performance of each product line of each region in Q1, but rather focus on more general comments about the current situation with COVID-19 on how it may influence bioMérieux. On the business front, demand from, for SARS-CoV-2 testing is soaring, and bioMérieux's portfolio in infectious diseases proved to be very valuable in this context, particularly with DNA extraction and respiratory panels. We have implemented exceptional measures to increase our production capacities for all the product lines that can be useful to improve patient care in case of COVID-19 infections. However, we are facing demand that exceeds our current production capacity, which is also the case for the entire IVD industry. The strong focus is put on ensuring the supply of raw materials in a tense environment as we are ramping up our capacities.
From the onset of the epidemic, bioMérieux initiated R&D works and built diagnostic tests that specifically detect this new coronavirus. First, mid-March, we released the first test based on the ARGENE technology. This test, called ARGENE SARS-CoV-2, requires a primary extraction of the genetic material of the virus and is running on open platforms available on the market for amplification and detection. It allows to test patients by batch in about 4-5 hours. This test is now CE marked since about a week, and we are also planning to submit to an EUA from the U.S. FDA. End of March, we received from the FDA the EUA for a second test, the BioFire COVID-19. This test is a fully automated solution running in 45 minutes on the FilmArray system to detect specifically the SARS-CoV-2. It was developed in partnership with the U.S. Department of Defense.
We are also working on upgrading our BioFire Respiratory Panel to add SARS-CoV-2 on top of the 21 targets that are already detected in about 45 minutes. This test will be called RP 2.1, and we have accelerated the development timeline for this test. While we initially committed on its availability in Q3, today, we think that RP 2.1 will be submitted to the FDA in the coming weeks. This is for pathogen detection through molecular technology, but in parallel, we, we have initiated R&D works to develop immunoassay tests to detect antibodies against SARS-CoV-2, also called serology tests. Serology tests will give important information on the epidemiology of the coronavirus infection and will allow other potentially useful applications in the future. This test should be ready before summertime, and we'll give more information, more news when, when ready.
At the same time, while demand for SARS-CoV-2 testing continues to soar, this health crisis is also leading to a decline in other kinds of routine testing as patients delay visits to doctors and elective procedures. We expect these headwinds to materialize in the months to come. In the first quarter, we saw only the first impact of this slowdown, notably in China. So forecasting precisely the scale of these headwinds and tailwinds is challenging. This is the reason why we decided to withdraw our objectives for this year for now. As a word of conclusion, bioMérieux is truly mobilized to respond to the urgency of this health crisis. I'm also extremely proud of our teams, which remain focused to develop, produce, and ship tests and are also supporting our customers in a very difficult environment. With this, I propose to switch to the Q&A. Thank you.
Thank you. If you would like to ask a question, please signal by pressing star one on your telephone keypad. If you're using a speakerphone, please make sure that your mute function is turned off to allow your signal to reach our equipment. Again, press star one to ask a question. We'll pause for just a moment to allow everyone an opportunity to signal for questions. And we'll move to our first question from Catherine Tennyson. Please go ahead.
Hi, everyone. Thank you for taking my questions. I have three, if I may. My first one is on the large number of BioFire installations in the quarter. Could you just give us a little more color on the measures that you put in place to meet this elevated demand, and subsequently, how we should think about that impact on the H1 margin? My second question would be, I appreciate it's early days in the launch of your PCR ARGENE test, but can you give us an idea of what sort of capacity you feel you'll be able to quickly accelerate to, by the end of this month and subsequently in Q2?
And then finally, on the APAC business, can you just help us understand the level of recovery, if any, that you've been seeing in China now that we've seen a slight easing of restrictions in that region? Thank you.
Okay, I guess regarding a question on production capacity, what we say today that we are ramping up our capacity potential. We communicate around the fact that we can produce a few hundreds of thousands of tests for the months of per ranges, and we're increasing this capacity. I think that's what I have to share at this stage, and it's ongoing work. It's in progress. It depends also on the-
Yes.
We do everything we can, but we're also depending on the raw materials that are important. Your question on Asia Pacific, I would say that in Q1, this is where we have seen maybe an impact in China from COVID. I would say, yes, business is starting to go back to normal, but still, I would say the traffic in the hospital is not at the level where it used to be. So it's still being monitored. On the first question, which was on the BioFire installation, so you have noted the really high number of installations over the quarter as compared to last year.
The measures we have taken to meet that demand are actually twofold. We used our inventory of equipments, which decreased strongly, and of course, we ramped up production of equipment as well. In terms of margins, first thing to note is that actually our the—this installation partly is placed and in part is stored. The percentage of placement was a bit higher than usual, around 40%. We were more on a third, usually. So a bit more placement, and again, as said last year, it's not an issue for us at all. This placement are worth it, are worth the investment. And for the rest, the...
We have the rest is sold, and of course, as usual, equipment with lower margins than reagents.
Brilliant. Thank you.
Thank you. If you find that your question has been answered, you may remove yourself from the queue by pressing star two. We will now move to our next question from Maja Pataki of Kepler. Please go ahead.
Yes, good afternoon, thank you for taking my question. Alexandre, I have a question with regards to capacity. Without giving us any exact numbers, you mentioned that right now the constraint is really on the raw materials. But just to understand, how should we think about that in a longer term process? So once you can actually get hold of the raw materials you need, how much ability would you have to increase capacity from a pure manufacturing side? Would you need basically the instruments to manufacture, the labor for the personnel to do that?
We do everything. No, we shift our effort on this. Also, it's a bit, it's a bit mix of everything, right? It's the capacity, it's people, it's time shift, it's also focusing, maybe also sometime our effort on some ranges instead of others. So, it's a mix of everything. To be fair, we do the most on this, on that front. But I'm sorry, I don't share the capacity production, but it's gonna evolve, with time as we increase capacity. We do the max.
Okay. Thank you. Yeah, thank you.
Thank you. We will now move to our next question from Hugo Solvet of BNP Paribas. Please go ahead.
Hi, thank you for. Can you hear me?
Yes.
Ah, thanks for taking the question. I have two... First, thanks for the timeline for the launch of the serological test you're working on. Can you confirm it will be running on VIDAS? And also in terms of manufacturing capacity, probably on a monthly basis, I understand it might be early to share at this stage, but ballpark or current average production capacity for high volume tests would be helpful. And on molecular, based on the demand you initially anticipated for the respiratory panel, how much of sales has been effectively driven by COVID-19? Thank you.
So regarding VIDAS, at this stage, I would say it's R&D works. It's R&D work, and the plan for us is to progress. Ideally, we would like to have a test by summertime. Capacity-wise, we'll do the max also.
I think I cannot say more. I know we have many, many parameters like that, but we do the maximum depending on the demand. I forgot the question on molecular.
So molecular, about the increase linked to COVID. So first thing is to re-highlight is that we had no sales linked to the COVID test in Q1. They were launched right at the end of Q1, actually. And so we will have sales in from Q2 in terms of sales of COVID tests. But as you understood well, of course, the respiratory panels and tests have been used to triage and to select respiratory issues. And basically, you can see that the 67% organic growth of molecular, the bulk of the acceleration of growth as compared to our usual trend of 2019, is fully coming from respiratory and pneumonia panels.
Our two panels that are helping in the diagnostics around COVID.
Okay, thank you. And one follow-up, if I may, on immunoassays and the portfolio. What trends do you see for routine testing volumes as opposed to high value-added tests? Thanks.
We believe that routine testing will be the one which might be more impacted by less traffic in the hospital. But difficult to estimate, and the fact that we don't give guidance, but then routine testing might be the one more impacted.
It will be impacted. We will measure it better in Q2, because in Q1, again, the most advanced was obviously China. But also with a lag effect, as we explained earlier, China, we sell through distributors. So the sellout from the distributors to hospital has been impacted, not yet so far the sell-in from bioMérieux to distributors. But as Alexandre mentioned, it would be significantly, potentially significantly impacted.
Okay. Thank you very much.
Thank you. We will take our next question from Peter Welford of Jefferies. Please go ahead.
Hi, yes. Thanks for taking my questions. I've got three, I believe, please. Firstly, just on BioFire, I wonder if you could please provide a sales number like you sometimes do for the FilmArray business this quarter. And if possible, an approximate proportion of that business that came from ex-US regions. Secondly then, just on microbiology, obviously we anticipate a significant routine, a significant decrease, sorry, in the routine immunoassay business, given the footfall in hospitals. Should we still anticipate that there will be a relatively more benign decrease in routine microbiology testing, given obviously these, the number of patients actually staying in hospitals is presumably at all-time highs?
Or are you up to your trends that you're seeing so far in Europe and the U.S., is there also, just due to the physical constraints on staff, decrease in routine microbiology tests at the moment, as far as you're aware, within hospitals? And then thirdly, just on costs, obviously significant investment required in capacity to be able to increase manufacturing on that side. What about efforts with regards to staff costs in terms of sales and marketing and other staff? And is bioMérieux at all furloughing any staff in France on the marketing side or other parts of the business, or is headcount maintained throughout the period at the moment during the lockdown in France? Thank you.
Okay, I'll take the microbiology question. Microbiology, it has to be followed. I don't know how what will be the impact on the less traffic in the hospital. At the same time, it's true that when people are confined, you go less to the hospital. But the patients also which are in the hospital, sometimes they do sepsis, sometimes they do organ failure. So, I'm sure there will still be a need for the microbiology testing. But we monitor it. There will be a specific impact on some ranges in microbiology. I'm not sure about your last question around the cost for production on all.
To be frank, at this stage, we are focusing on delivering the solution on the-
Yeah, the color I can add on the cost is that the elements that we see that we have, like everyone, transport is somehow a challenge, so probably a bit higher cost on the supply chain, logistics and transport. But I think you probably see that in many industries. In terms of staff cost, we maintain compensation for all our staff, so we are not using, at this stage, any of the government help or things like that. So no specific elements on the staff cost. And of course, we, I think as everyone, we see more savings on the travel and things like that due to the lockdown.
Coming to your first question about the BioFire sales number, the sales number is EUR 265 million for the quarter. And the proportion of non-U.S. is pretty similar to last year, with the 20%, roughly 20% non-U.S.
That's great. Thank you very much.
Thank you. We'll move to our next question from Delphine Le Louët of Société Générale. Please go ahead.
Yes, sorry, hello, good afternoon, everybody. Could you clarify, please, the CapEx strategy that you have to put in place, from now on? This is the first question in term of, in term of region and also in term of, of value. Second question, could we have your feedback regarding the massive increase, in North America of the business compared, to Europe, meaning that Europe was a bit ahead, regarding the pandemic. Is it just a question of timing, or is it more a question of, client base and relationship with your, with your clients? Sorry, because I didn't catch, I mean, the line was poor. So you confirm, that the serological tests will be on VIDAS by summertime?
When I hear summer, do I have to hear June, or a bit later? And finally, regarding the BioFire, so you confirm the fact that we have quite a stabilization for the existing business, I would say, non-extra COVID, for all the other panels, and we don't have any massive decline, for instance, in GI or other panels, BioFire.
Yes, so to come back on VIDAS, yes, we say it's still R&D work, but the goal for us would be to launch a test on VIDAS, COVID test on VIDAS, for the summer, which is 21 of June. I will let you know, the idea, we'll let you know before or after. But, that, that's the plan, but it's still R&D work. I insist on that, but we're working hard on this one. Your second question around the mix, I think it's more client-based, regarding the FilmArray, right? Your question around the CapEx, to be frank, it's we do what is needed today. I don't see a big change on this.
Although, to be frank, I shouldn't say that maybe, but we, we do what's good for, to increase our production. This is what matters.
Okay. [crosstalk] Yeah, probably a follow-up on this serological test. Which immunoglobulin are you targeting? Are you, you know, IgM? Which one are you gonna go for? IgG?
G or G and M, we'll see. It's R&D work at the stage.
Okay.
Thank you. We'll move to our next question from Louise Boyer of MainFirst. Please go ahead.
Good afternoon. Thank you, thank you for, for taking my question. I have four, if I may. The first one is: you mentioned that during the last week of the quarter, you've seen a clear inflection in the demand of non-routine tests. Can you tell us a bit more about what happened during those last week of the quarter? Which kind of decline are we talking about? The second one is on BioFire Defense and the increase of other lines in the clinical application. Shall we see that as a one-off because it was the first test of COVID that was given to BioFire Defense, or will there still continue during the Q2?
The third one is concerning the cost of this production line shift, and you mentioned already many times that you're not expecting any big CapEx change. Shall we think about staff bonuses or some kind of staff cost increase for this exceptional period? Some groups are talking about that. The fourth one is about the dividend. You postpone it despite a quarter that is way above the expectation and balance sheet that is not under pressure. Shall we expect a cut, or is it just a pushback?
It's a pushback at this stage. I think we will give the date of June 30, is it June 30?
For the general assembly.
June 30. It gives us time maybe to assess what we want, what we will do. The other question is the cost, COVID-19 from defense in Q2, yes, we will keep on producing and selling COVID-19 from defense in Q2 and cost
So, on the cost, so I'm not sure about all, all the, from the part of your, of your question, but CapEx change, we confirm that there is no major CapEx change. We have already invested for some time about the increase of capacity of BioFire, and the new, let's say, plant is coming actually right on time, in the coming months. And the staff bonus, no specific element to, to... No specific element actually to, to share. No specific change. And we mentioned your, your first point was about the, the end of March subjects and changes on routine. And yes, that's why we, we communicate clearly on the fact that we expect some of the end of March negative effects.
We mentioned immuno routine, some part of microbiology that are more routine that will be impacted, not yet in our figures at the end of March, but clearly will be. We expect to be in the figures in Q2.
So as Alexandre mentioned, a mix of headwinds, molecular, and tailwinds on some of the more routine parts in the future, with a net effect between headwinds and tailwinds that is not easy to measure at this stage.
Okay, thank you.
Thank you. We'll move to our next question from Scott Bardo of Berenberg. Please go ahead.
Yeah, thanks very much for taking the question. So, first question, please. We understand that clearly there's been a lot of triage and rule out testing in North America for upper respiratory testing amid, you know, this initial presentation of the COVID-19 symptoms, which presumably has led to this very strong dynamic that you see this first quarter. We're hearing anecdotes now that given that the flu season has, you know, finished, ended or significantly reduced, there's much more focus now on this COVID testing, both clinically and politically. So what I wonder actually is are you expecting a continued strong performance from your upper respiratory testing panel prior to your incorporation of the COVID pathogen?
Or would you expect this now to decline and shift towards your COVID testing single organism panel? So that's question number one, please. And the second question, pleasing to hear the uptake of the pneumonia panel, which of course, seems very relevant in this current environment. It has been a very slow start initially for this uptake of this solution. So can you give us some sense now in the performance in Q1, what proportion of that was pneumonia? And do you think that this recent experience has changed the trajectory of that particular test? So I'll pause there, please, and then I have a couple of follow-ups. Thanks.
Okay. I think, I'm watching my colleagues. I think, pneumonia did quite well in Q1. I think there was a, either there was, maybe relating to the, to the increase of testing around the respiratory, but it also it's, it's due to the work around the, the promotion and the recognition of the value of this, of this high medical value test. Regarding your question on the COVID and respiratory, first, I think, RP 2.1 is coming soon, so that will be, become a very important part of our respiratory solution, including, including coronavirus. So for the rest, I expect in the current context, that everything which is linked to, respiratory disease, will have a, will have a good momentum.
Thank you. Sorry, I don't think I heard you. Did you say that the pneumonia panel was still a smaller part of your revenue development in Q1, or was this a more significant part?
It was a good increase. It was a good increase as compared to, compared to the, to the last, last year. So I see the increase more than the, the, the share of the, of the, the panel. But that's included, I would say, in our respiratory, portfolio solutions.
Understood. And Alexandre, I appreciate these are sort of testing times, and you know, bioMérieux has done incredibly well, reinventing itself and trying to meet these near-term challenges that everyone faces. But can you give us some feeling, please, because clearly your opinion is better than most at this point, as to whether you expect the strong demand in molecular to outweigh the near-term negative pressures to routine? I mean, do you expect this BioFire performance to maintain or even expand from these current levels into the coming quarter? Clearly, we all got it wrong this quarter, so it'd be helpful to have some perspective into the next.
I'm not going to be simple in what I said, but I think if we withdraw our guidance also, is to say that we enter in a phase of uncertainty. So we like, we don't know for sure. We do our best. We follow demand, and we work hard to produce, and we work hard in R&D to develop the best solutions for diagnostic testing of COVID. But difficult to project ourselves. Hence, this is why we have decided to withdraw the objectives for this year.
But on balance, you would probably say that the organization can still have positive growth in the, in the second quarter? Is that fair, fair assessment?
I cannot comment on this one. We are working hard.
Working hard. I appreciate it. Okay, and maybe last, a couple of questions, please. And sorry, did you call out what percentage of your immunoassay business and microbiology business you would classify as routine? Sorry if I missed this. And second question, please. The in North America again, it seems that the payers, CMS, for at least outpatient testing, have increased funding for high volume testing. All of the larger competitors that you face are getting more preferential reimbursement terms as compared to lower volume testing. Would you say this is an you know, an unfair status reimbursement status for your solution? And will you be discriminated against in these sorts of laboratories now, for COVID testing?
I think the news is yesterday. No, yesterday. I don't know. No, high-plex , you know, FilmArray. We have the FilmArray, we have the Torch, we have up to 12 testing performing units. So I think we can also be part of this of this high testing laboratory. So I don't. I didn't follow. I don't. I have no, no specific comment on this to say. We might be part of it, I don't know. I will have a look at it. Sorry.
Thank you. Okay, understood. And the routine testing, a rough proportion, would you say, of both microbiology and immunoassay?
So it's always difficult to classify, and there's no... But to give you a ballpark idea, we think that immunoassay we could say about half of immunoassay is can be, let's say, classified as routine. The rest being a mix of high medical value and emergency and high medical value. In terms of microbiology, it's more difficult. Blood culture is often used in emergency situation. ID/AST is a mix of routine and emergency. So no figure, but it's a mix also in microbiology that will either benefit or be impacted.
Okay, understood. Thanks for the many questions.
Thank you. We'll move to our next question from Alex Cogut of Kempen. Please go ahead.
Hi, thank you. Appreciating its early days, but how do you currently foresee the serological market for SARS-CoV-2 to develop through the year? And do you expect that to essentially fizzle out as of 2021 or 2022? What's your midterm and long-term expectation?
I think that as soon as there is a good offer, it will be highly recommended and useful for epidemiology reasons. So, no, I believe there will be a real market, a real opportunity for serology testing in addition of PCR testing.
In any sense, how, how large that is in some kind of quantitative measure?
I know, I know there are already some publications on this. On my, on my front, I don't, I don't know the figures. I just, I just know that it will be needed for quite some time.
All right. Thanks.
Thank you.
Thank you. Once again, ladies and gentlemen, if you would like to ask a question, please signal by pressing star one. We will take our next question from Christophe-Raphael Ganet of Oddo BHF. Please go ahead.
Good afternoon. Can you hear me correctly?
Yes.
Good. Thanks. Happy to see you, well. So two questions, actually. One on the serological test. Do you think could be your the differentiation, notably in, I guess, in the immunoglobulins to be tested? What would be the differentiation of the test, compared to what is already existing on the market? First and secondly, do you see in Europe, differently in the in different countries where you are present, do you see a shift during the pandemic of usage of tests? Is there tests that are used at the beginning of the pandemic and the new families or emerging families of tests that are used? Can you help us to understand correctly the practices of the professionals and the biologists, please?
I would say there is still a soaring demand for PCR test. I think the demand is still increasing on a daily basis. So I think this will last also. Same time, there is a strong need for serology test. Everybody talks about it. The differentiation will bring, so then again, I insist, it's R&D work at this stage. That's the plan to launch in June. Differentiation, I know usually when you launch a product, it has a good performance. There are mainly a good specificity. I think this is what is expected in the case of a serology test. On the... I know there will be many players on that front, but the need will be so big that it's important.
One differentiation is that the base of VIDAS, they're quite important all around the world. It's got a high throughput platform, but it's robust. It's in a lot of laboratories, and we'll do our best to develop a good test.
Okay, understood. Thank you.
Thank you. There are no further questions. Oh, we have a follow-up question from Scott Bardo of Berenberg. Please go ahead.
Yeah, thanks very much for the follow-up. One, you know, slightly bigger picture question than Alexander. I wonder whether you could brave sharing some views on this, because obviously these are all, you know, sort of uncertain times. But, you know, we're in a situation where there's very high degree of testing across the world for COVID, both molecular testing and the expectation of serology testing. And, you know, that I think is trying to, you know, if you like, deal with this, you know, outbreak, which is reaching near-term peaks in a lot of regions. Can you share some thoughts for us, please, about the duration of this sort of pace of molecular diagnostic testing? Do you expect this to continue all throughout the year, into next year?
Also maybe share thoughts on serology. I mean, is this gonna be a short-term, you know, testing phenomenon in 2020 or something more entrenched and established, for years to come? So can you share some thoughts about where we are for the duration, you know, of these sorts of testings? That will be helpful.
I'm not an epidemiologist, but my thought that the COVID-19 is here, is here to stay for one form or another. I hope not always under this peak circumstances, but we need to test for COVID for the months or years to come, hopefully not in such a high demand. But we'll have to monitor. I think what matters for me, but it's too early to talk about this, is what influence it will have on the healthcare system, on the way we do diagnostic. Centralized, decentralized, some type of question we will wonder, we will ask ourselves after.
But there is nothing positive out of this crisis, but at least, the value of diagnostic is more and more recognized, first, to avoid the pandemic spread, and then to monitor. So I think it's also a good recognition of the work that needs to be done in the field of diagnostic and infectious disease.
Thank you very much. Maybe just lastly, a lot of hospitals are under quite a bit of financial strain, particularly in North America now, as the most lucrative, you know, areas, being elective procedures are, have been delayed and postponed. But BioFire tests are quite expensive, but, maybe not considering the considerable clinical value that they add. But my question is: Are you seeing any, you know, reluctance or pressures from hospital with respect to price at the moment, given the very high volumes that they are using, and, you know, mirrored with the, you know, quite deep, financial constraints? Is there any evidence, that, you know, the sort of proposition, has changed from a pricing perspective in this environment?
Not to my knowledge, but as you said, it's also a value-based play. So, but not to my knowledge, relating to your comments.
And we are-
Thank you.
We are monitoring, of course, the credit subject and health of our customers. I would say that probably North America is where we see the least issues. We understand that a number of emergency funds have been released by the US to help actually hospitals funding. So that's where probably we see at this stage less problems.
That's helpful. Thanks very much indeed.
Thank you.
Thank you. And we have a follow-up question from Christophe-Raphael Ganet of Oddo BHF. Please go ahead.
Yeah. One follow-up question,
Can you repeat, Christophe, your partner?
To the U.S. Are you aware of a project that could look like a health passport or e-passport for health for any non-US citizen that could come on the territory? Or could you be involved, or would you be a part of the bargain of such a project?
At this stage, not aware, not involved.
Do you think that it's something interesting and that could be on the table for the U.S. government, which is always cautious with the non-U.S. citizens?
To be fair, I don't know the topic. I like to read on thing before. I don't know. I don't know. Sorry.
All right. Thank you.
Thank you. There are no further questions at this time. Please continue.
Okay. Thank you, Valerie. I think we don't have any more questions. So thank you very much, everyone, for the discussion and questions, and we look forward to speaking to you during the next virtual conference and virtual meetings that we will have over the next weeks or months.