Eurofins Scientific SE (EPA:ERF)

Trading Update

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Dec 15, 2020

Hello and welcome to the Eurofins Scientific Trading Update. For the first part of this call, all participants will be in a listen only mode and afterwards there will be a question and answer session. During this call, Neurofin's management may make forward looking statements, including but not limited to statements with respect to outlook and the related assumptions. Management will also discuss alternative performance measures such as organic growth, adjusted EBITDA and free cash flow to the firm, which are defined in the footnotes of our press releases. Actual results may differ materially from our objectives discussed. Risks and uncertainties that may affect Urofins' future results include, but are not limited to, those described in the Risk Factors section of the Urofins Annual Report. Please also read the disclaimer on Page two of this presentation, subject to which this call and Q and A session are made. Today, I'm pleased to present Doctor. Gilles Martin, UroFend's CEO. Please begin. Thank you. Hello, everybody, and thank you for joining our Infantry call. We normally don't announce intermediate results, but in GRO, the uncertainty caused by the pandemic and the fact that when we presented the Q3 results, we had not updated the objective for this year. We decided that it was our duty to update the market. The consensus was very broad for this year. So we thought, okay, let's since we now have two more months of actual data, let's try to clarify what the objectives could be. So what we published this morning, first of all, were rounded numbers. So we have rounded numbers up to the closest €100,000,000 So everything is not a precise objective. It's not a guidance. But I think it gives you an indication of where we think the company is headed towards and what could be achieved or with a high level of certainty could be achieved this year. That should help you all to maybe find to new numbers. Now if you look at the ratios of the different numbers and so on, the actual ratios might differ a bit because of the rounding that we have done in preventing those numbers. Overall, what the main message is actually that our core business has recovered as a whole. Obviously, there are differences. We still have some activities which are affected by the lockdown, but this is more than compensated by significantly higher growth in other areas. And I think that underlines very well that this objective of organic growth of 5% that you referenced as set almost ten years ago now at the exit of the big world financial crisis is a conservative objective because even with several of our businesses still affected by lockdown, we are definitely not firing by all cylinders, we still can achieve 5% organic growth. So that's a good news that in spite of some disruption, our business is a high growth business. And on top of that, as you've seen yesterday, we continue to develop a lot of tools to support health authorities fight the COVID pandemic. The two that we announced yesterday are very interesting, at least one, which is the ability of people to sample themselves. One of the biggest bottleneck to testing has been laboratory capacity, but it has been also in many countries, the teams to basically put the nasopharyngeal swabs in people's noses and and and get the samples. And now we have validated a number of other modalities where people can do that themselves highly reliably and still access a very reliable PCR test, a very sensitive PCR test. And we think this can go a long way if it is used, of course, to to making tests more accessible and and helping authorities control the pandemic. This is typically something that people could have at home, and if they think, the next day or the day after they want to visit their family, they can test themselves, put it in the post or in UPS or a Dropbox, drop it at the lab, and get the result extremely quickly. Because we're also working to make our labs provide this very fast PCR, high high very sensitive PCR in under six hours. This can be done and and we have different modalities where we can organize those laboratories for governments or other clients. So altogether, we are really proud and happy that we are doing our share to try to combat this pandemic. Another important aspect will be the vaccine. We've just talked about the rollout of the vaccine, and there's very little experience about that. But in many geographies, governments are talking to us about monitoring of the status of patients prior to the vaccine. For example, do they have an active infection, for example, which would mean they would get a double source of of immune reaction. Or post post vaccination, how much antibodies do they have and which or or maybe do they have antibodies caused by by the vaccine, or is it antibodies caused by a prior infection? So there are a number of things we are working on that that are very interesting. Also, there are different sources of immunity, not only antibodies. It can be T cell mediated immunity. So we're still working on a lot of very interesting aspects that we will try to provide to the health authorities and vaccine providers to support them in this initiative of vaccinating potentially multiple times the whole population for a number of years. On safer at work, the demand continues to grow. Obviously, the large number of testing linked to safer at work will arise when the lockdowns end. In in Europe at the moment, a lot of people are still working from home. The there's very little travel. There is very little entertainment, hospitality. All the sectors are events are pretty much shut down. But if they want to restart, even with partial population vaccination, several measures will have to be taken, and we are getting ready to participate to that. And that could also last a number of years or quarter. So that's a bit the situation. So we're happy that, thanks to all those efforts, we have more than compensated the impact on lockdown on the company that occurred in quarter two, which were the strongest in quarter two. And overall, we're quite bullish about our industry. Those of you that follow the funding of biotech and pharma see that that that continues to increase, so there will be a lot of investments. And we are really at the beginning of a new era. If those vaccines, those mRNA vaccine turn out to be effective and have no long term side effects, that opens the door to follow a lot of applications for an iRNA, just to to cite this example in oncology, for example, and and potentially for rare disease, other aspects. So a lot of research will be done, and I think a lot of companies will be funded and will do research and work with our laboratories to develop fantastic new pharmaceutical products in decades to come. So food testing, obviously, probably there'll be more testing for viruses. And and in the environment, new possibilities to monitor the environment for various viruses, including COVID, will will probably be there for a while. And so that that's a bit of an update of the situation, and I think we'll be happy to take some questions. Thank you. Our first question comes from the line of Neil Tyler from Redburn. Please go ahead. Yes. Thank you. Good afternoon. Two questions, please, Neil. Firstly, the updated guidance or really the development since the Q3 update, Can you share with us whether it has been a better momentum in the core business or sustained strength in the COVID related aspects that has been the greater contributor to your decision to raise guidance? And then the second question, understanding that these are rounded numbers, but the difference between the increase in EBITDA guidance and the increase in free cash flow guidance, that EUR 100,000,000, do we assume that, that's the additional CapEx that's being required? Or is there also some working capital build to net off against that? Yes. Thank you very much, Neil. One thing also I should have mentioned in introduction is we haven't changed our objectives since March, early March. So those objectives were made without any impact of COVID or anything. They were made assuming the year would be fine, China either because we hit in March or in February, but not so much. And so therefore, it was more or business as usual. And a lot of things happened during the year, and we didn't update the objective during the year because simply there was not enough visibility to know. We knew we would compensate or it was very likely we would compensate the missed revenues during the year with additional testing revenues. But where and how much was not clear also. And so the main reason for this update is the certainty. Because now with two months of the last quarter behind us, we have, of course, certainty about the past and some visibility about December to be able to update investors. If we compare to Q3, why did we not change the objective in Q3? Well, because of the uncertainty that remained on both our core business and COVID. I think we had a good surprise on both compared to the September. I think our core business recovered faster than we thought, because it's a significant difference in growth between 5% and where we were in Q3 or even at the exit of Q3. And we did a bit more COVID testing also in October, November that potentially we thought that. And yes, the difference between EBITDA and free cash flow, again, those are rounded numbers, and we don't know exactly the cut how the cutoffs will fall at the end of the year. One element is we have a lot of stock for COVID testing, and this stock is, of course, consuming our net working capital. We feel it is our duty to take some risk from the stock, so we are able to respond. If there is another big peak of COVID in February or March During the winter, before the winter is over, we need to have enough stock. So this is an element. Of course, we did quite a bit of CapEx for COVID that we will write off over the duration of the pandemic. And that is also accounted for in the plans that we have for free cash flow. So the good thing is all the CapEx for COVID will have been paid in 2020. So it won't affect 2021. So it's a bit of a net free cash flow. But here, again, there are still some elements of uncertainty on how fast we will be paid at the end of the year and what level of stocks we will have exactly at the end of this quarter. Okay. That's great. Thank you very much. And the next question comes from the line of Tom Bolton from Berenberg. Please go ahead. Yes, thanks. Good afternoon to you. Thanks for taking my questions. First one is just a point of clarification, I guess, in Q2 and in Q3, you very helpfully gave us a sort of a bit more sort of quantified numbers around the COVID revenue. I wonder if you have the numbers for October and November, you can tell us maybe what the COVID-nineteen testing and sort of reagent revenue contribution was? And also an update, please, on margin that you're making on that work because I think in the past, I think, you talked about 30% or so. It seems like the implications in the numbers might be that even a little bit higher now still. I don't know whether that's due to anything, any action you take on the cost base or sort of or anything in that regard? The second question I had is on the antigen test that you have released and updated us on yesterday. Just curious as to your sort of updated view on the role of these rapid lateral flow tests. I mean, there's been a fair share of doubt raised over their sensitivities, some of these tests missing, quite a lot of infections, and it's quite a damning article in the launch just yesterday. And I think you yourself have expressed some steps to them in the past. So sort of how you see the use case of these tests and your capacity to produce them, if you can? Because I know guys like Roche have got quite big capacity to produce sort of quite sizable monthly numbers on these antigen tests. And I know you've only just launched them, but sort of whether you have any sort of initial interest from sort of any large orders you might have already secured or be in discussions of for those tests would also be helpful if you have any color, please. Yes. Thank you very much, Thomas. A lot of very interesting questions. Yes, the COVID, we've not quantified. It's I mean, what you can assume is in Q4, we probably will be above 100,000,000 revenues per month from COVID on each of those three months on average and how much more we'll know at the December. It's really hard to know what governments will do for Christmas, where they will stop testing, whether they will push people to test what they should. But that gives you another magnitude. And the margin, yes, the margin depends on the volume, of course. The more we do, the higher the volume. So if we do high volumes, the margin can be above 30%. On that level, though, we might not be able to quantify the margin properly because we renew staff that that are doing other things to do COVID testing. Either either doing other tests, We have an issue of how much of our fixed overhead do we allocate to COVID and not to COVID. So there are a number of hypotheses that could be made to calculating the COVID margin, which we have not done so far. But it's if we continue at that rate, probably the COVID contribution would be higher than thirty percent, especially where we can use our own reagents and we don't have too much shipping and other things. As to the antigen test, it's also a very good question. Our view is still, if you have no other option, it's a good test. If we take the most the highest viral concentration, so it's much better than doing nothing. It takes time to do, and it has to be done properly. Otherwise, the weather could be wrong. And but if you have the possibility to do PCR, it's always better to do PCR. And our view is that in most situation, it is possible to organize to have enough PCR capacity now. The the company is producing PCR kits can produce enough. There are enough systems. And Eurofence has always had, through the pandemic, extra capacity somewhere. So we can, let's say, France was full, we could ship our samples to Germany or vice versa. So I think it is possible to have enough capacity. So I think going forward, ideally, there would be more use there's more modalities to sample people, like the one we just announced yesterday, where people can sample themselves or even if it's under supervision of a doctor, it is done by using simpler modalities. We have enough labs now, more than 50 labs, and there are enough labs around the world that the samples can be brought very fast to the labs. We are working on modalities to make PCR even faster on a standard PCR so that for most use cases, PCR could be used. Now, of course, the governments will continue to use antigen test and those antigen test bring a lot in in in some use cases, maybe like events or mass screening. If there is the only only reason to use it is to say, okay, we would do nothing, but we can't we really we have antigen test a million people, and we have no other way to test 1,000,000 people than antigen test. It's still better to do it. It will it will catch some positive that are asymptomatic. And and when we do our test campaign, we do find a lot of asymptomatic people who would otherwise infect other people. But if the same government has access to PCR, it's probably better to do PCR because they will catch many more positives. And more importantly, it would not give a sense of a sense of of being not contaminated to people who will then go on and visit their older relatives while they are asymptomatic at a low level and a few hours later, maybe at a higher level. But we we cannot control what the demand will be, and therefore, we have also developed this antigen. We can also run to millions of tests per month. But we don't have the largest distribution channel. So I don't think we'll be the largest or or even a large supplier of antigen test. Why we need it is also for our own program. Because as part of SafeRite work, we provide complete turnkey solutions to our clients. Let's say they are running an airport and then we have different types of PCR tests. We have we send samples, kids at home for people to pretest themselves. We have a lab in a container at the airport where we can carry out the test within six hours where people can come the day before and and get tested or in the morning. We have fast PCR that can be done in an hour. And in some countries, they would the government is is happy to accept only an antigen test, so we can do an antigen test if that is required. And the fact that we have our own supply chain is very important. One, because then we are not dependent on supply chain problems at other suppliers. Also, we can provide global uniformity. If we have some global clients, it's good because we can then get them to approve our test, and then we can use our test for people flying into their countries from anywhere in the world. And and they can audit it, they can test it in their country. So the fact that we have our supply chain on all the test modalities, we think, a strategic advantage in this fight against COVID, which might be with us for a few years. If you look at how many people want to be vaccine in France, for example, it's like less than half of the population. So unless this this population, mentality changes drastically, there won't be enough vaccinations for herd immunity. Therefore, testing might still be required. And so for certain circumstances, it doesn't matter, but there will be environments where people don't want to catch COVID or shouldn't catch COVID when testing should should continue. So that's why we keep on refining our offering to provide safe environment for those of our clients who want it, be the government, be the airlines, be the other types of organization events, some want to be quite thorough in what they will do. So it's part of an an arsenal of tools that can be implemented. That's helpful. Thanks very much. And the next question comes from the line of Andy Grobler from Credit Suisse. Please go ahead. Are you on mute, Andy? Operator, can you check what's going on, please? Adi, please go ahead. Hello, Joe. Can you hear me now? No. It's good. Okay. Sorry about that. Yes. I've thanks for taking my questions. I've got lots, but I'll just ask two if I may. You talked about improvements within the core business and our return to about 5% organic. Can you just talk through which segments that that is doing relatively well and relatively better? And what's kind of improved through the last couple of months? And then secondly, on on COVID testing, large large pharma is is talking about the expectation that there'll be a consolidation of of PCR tests to to those with with very large automated throughput machines to three or four suppliers over a period of time. Do you think that's likely? And if so, where does that leave Eurofence within the PCR testing world for COVID? Thank you. Well, the segments a lot of our businesses recovered. The change compared to Q3, I think, was more notable in food testing, environmental testing in Europe. Our clinical testing business also seems to have recovered well. We still have some areas of softness in environmental testing in North America, actually, in the last couple of months. We still have our central lab, which has patient recruitment issues for for clinical studies. The the areas where we need volunteers and our food service testing and and audit and agenated business are still a bit challenged. So that gives you a bit of color on the spread. Biopharma business is doing very well, not only with COVID programs. Generally, biopharma is very active. And COVID testing consolidation, I'm not sure. I think it's already done. The the large supplier of automated machine like Roche and and others have anyway their installed park, and and the the labs will run because if they if they have the machines. But then we have all the open systems that have been installed and and by companies with the likes of Thermo Fisher, etcetera, and and the systems are there. And if the labs have good quality supplies at a competitive price, they they will use the supplies that are that they consider appropriate. So I I don't exactly know the what consolidation was for. And, you we also have a a number of different suppliers depending on the countries and the local approvals. So it's also a question of which kits are approved in which country. And so we've made sure that in all our lives, we can use our own kits and and they have the proper approval. But, of course, finally, tell what how the market evolves and and and what happens. There could be also breakthroughs. Sorry, there could be breakthroughs. There could be new ways of testing PCR faster, but more cost effectively that emerge because so much investment has been done around the world that I don't think that we've seen the end of the story in terms of innovation. I think it's really like for vaccines, this will trigger new ways of testing. For example, we've developed a test that we can use on central platform. If there was a need, you can create millions of test a day capacity with that by reusing machines that were used in other parts of the biotech industry. Thank you. Can I ask just a follow-up? You mentioned vaccines again there. What and you talked about it earlier. What do you expect your role to be in vaccines as those roll out? And when will we have a clearer view of how that's going to develop through next year and potentially for the foreseeable future? Thank you. Yes, this is a question that's definitely not settled yet, and, it will be up to its government to decide what their health policy should be. What I raised is a number of questions that were asked by various governments. The first one is, should a vaccine be administered to someone who's already infected with COVID, potentially increasing the immune response? And I think some countries will decide it's no problem. Others will decide they wanna screen people before, or they wanna screen people to see their level of immunity to decide their priority. If somebody has already high antigen levels or existing T cell immunity, or maybe this should not be in the list of priority. And so so far, again, I'm not saying any government will all governments will choose to do that. Then we have, of course, the monitoring of the effectiveness of vaccines. And and when it comes to vaccinating the second time people potentially, deciding when is the right time to vaccine people the second time. So it could be monitoring of of the antibodies level, finding out whether these antibodies come from vaccines or come from a preexisting infection, and and how that evolves over time and deciding when to to vaccinate against people. And that, of course, split between the the antibodies, which are already easy to measure and and the T cell immunity, for example. These are some of the topics that that will have to be decided over the next, I guess, few quarters, depending on on how each of those vaccines actually work and and what is important in each case. Excellent. Thank you very much. And the next question comes from the line of Ed Steele from Citi. Please go ahead. Good afternoon all. Hi, Seel. Just one question for me, please. Looking at some of the data on testing volumes across Europe, it looks like a number of key countries like France, Germany, Spain, saw a peak in the November. And okay, I mean, it's a very fluid situation, but it feels like things have come off a bit since then. Does that go to kind of chime with your experience, please? A little bit, yes. I think probably the November was the highest, or the second half, I'm not sure. But we have now more than 50 labs testing for COVID around the world. And so we also transfer samples across countries. So when one country is full, we can use the capacity we have in another country so that the tends to blur a bit these peaks makes them maybe less big for us than they are in one country, all less less small. And yes, it's very hard to predict what will happen with the testing regimes and with the pandemic over the next few months. Some governments are asking us to prepare vast capacities for January because they're quite worried of what will happen after Christmas, and maybe there won't be a peak of it in January. So it's really very hard to predict. Got it. Thank you very much. The next question comes from the line of Nicolas Tabot from Stifel. Please go ahead. Yes. Good afternoon. Thank you very much. So the first question would be, we have more color on what should drive the organic growth, especially the core organic growth over the next year, the next two years. How much is that? Is this higher lab utilization versus the the comparison base? And how much could be lab expansion or even pricing if you have a new more sophisticated demand, let's say, in biopharma? And then in the same way, how should we think about the core margin expansion compensating for lower TCR testing in 2021? How much of that is coming from M and A integration? How much is coming from the maybe the lower investment into the LEANS deployment? Thank you very much. Thank you. Yes. At our Q3 results, we have tried to do some objectives for that. So we still stand by that. Assuming 2022 has zero COVID revenues, we gave an objective for EBITDA and revenues and margin. The main contribution to margin is the end of all the reorganization programs that we have been carrying out during the last three to four years. We will have all that footprint ready sometime in 2021. And indeed, as you mentioned, our digitalization program should have made massive progress by then. And so we have less cost, less time, more people are spent in in redeploying new IT solutions, etcetera, or moving activities from lab a to lab b. And and and so they can focus more on their clients, and they can focus more growing their sales and optimizing what they do in their own lab. That's the main effect. Some level of utilization, obviously. Pricing, we haven't figured out so much. Although we see some inflation inflationary potential, there is basically not enough capacity for some of the things we do. And we even have we struggle to find staff for some activities, so we have to prioritize, of course, who we serve. We are working for a lot of the vaccine companies very closely for very important programs, which we can't even take all of them, whether we are the market leader because of capacity. So of course, we have to recover the cost of the people we pay to do that. So those are the some of the reasons for the margin expansion that we plan for 2022 for just our core business. And again, I think we can compare that to a pre COVID situation. I think there will be elements of comparison. If we compare H2 twenty nineteen, which was not affected by the cyber attack at Eurofence and H2 twenty twenty two to give a good indication. I mean if COVID really stops this summer and there is no COVID effect in H2 twenty twenty one, we already will have some comparison of the evolution, which we're satisfied about the progress we are making to basically streamline our business a very efficient open spot model. M and A, of course, we know what we bought. We don't know what we will buy in the next eighteen months. And typically, it's slightly dilutive to our margins. But if we add only EUR 150,000,000 or EUR 200,000,000 each year on a EUR 5,000,000,000 business, the impact of margin should not be too big in terms of potential dilutive effect. And sometimes, we buy companies with higher margins than our group as a whole. So it really depends what we buy. And we have one more question from the line of Tom Brodson from Berenberg. Just had a couple of follow-up questions. First one sort of relates to the last question, think, which is I'm wondering how much pent up demand do you think there is in sort of areas of your core business as we go into 2021. Just wondered if there's any areas you'd highlight perhaps that are more subdued or areas where you see a bit more pent up demand that you think might come through into 2021? And second question was around the vaccine related to vaccine development related work you've talked about and you've sort of alluded to in relation to vaccine development. Could you talk about a bit more about that sort of what kind of work you're doing, who you're working with, if you're able to say what exactly needs testing. And also maybe how material that is, kind of what kind of magnitude of sort of revenue or EBITDA contribution, and for how long you're expecting that sort of earnings stream to persist or any follow on work that it might lead to from those clients you're working with, please? Thank you. Yes. So of course, we have one thing I didn't mention was in October and November, we I did mention it, actually, we grew 5%, but we had some of our businesses that were still idle. So and that has an impact on revenues, but of course, on margin. So when those business start again, when people start going to restaurants again or start traveling again or we can have volunteers come to our labs to evaluate in cosmetics or when the testing of certain clinical trials restart when the hospitals are no longer focused only on COVID, and that's where we will start, and we'll get the margin from there also. And we should recover relatively quickly. And there is independent demand there. There are studies that are just parked that could not be started to be opposed or slowed down during the pandemic. The sponsors are really keen to complete them ASAP. So that's clear. In food testing, I mean, it is being done as we go. There are some programs of product development that may be a bit slow because of the pandemic. We saw it in some of our other activities in the Silicon Valley that during the lockdown, we had some work that was just closed, they really want to catch up. So I think we will have probably across the board at some level, some catch up of the work that mostly R and D work that our clients didn't do during the pandemic that they will want to catch up with because they want to reach new products, etcetera. So for vaccines, I can't cite names really, but all the names you hear about in the news, in one way or another, we work with them in pretty much, let's say, 80% to leave room for I'm not saying who that is. And we work to help them develop the products, and we work to help them develop the testing modalities to release this product. We work to help them during the clinical trials to do the testing, testing the immunity before or after the impact of the vaccines during those clinical trials, and we continue to do so, also in the monitoring. And then the bigger work that is starting now is the release testing because the products have to be every batch has to be tested. And the release testing for the vaccines that are currently in production, but also for those which actually will be approved in the next few days, weeks or months. So that's and that's what potentially can continue indefinitely, and it can be it can be substantial. It's I mean, we're building labs just for that at the moment. We're expanding labs just to be able to carry out the the volume of testing that would be required. Of course, we we don't know yet exactly which vaccine will be sold in which quantity this year, next year. There will be maybe cheaper vaccines coming to the market in the second half of this year or next year and 2022. And so we are already working with a number of of the vaccine producers in addition to those two that that are very close to having approval. And whether this work is will be 50,000,000 per year, a 100,000,020, I don't know. It's it's really will will depend on the on the success of the respective vaccines and which one is sold where. And and this this work is is important. Of course, we'll it's part of what we do anyway. That that's that's a whole new market, basically, those COVID testing COVID vaccines because we already did that for other types of vaccines and products, which is part of our core business. Okay. Thank thank you very much. And as there are no further questions, I will hand it back to Gilles for closing remarks. Thank you very much, and thanks to all of you for joining our call. We are sorry that we cannot give you advanced warnings when when we have something like that. But we thought it is gonna be two and a half months until we announce our results for this year. And and considering the wide range of estimates in the consensus, we report it for our duty to set some new objectives now that we have more certainty about how this year will end. I wish I could give you more certainty about next year, What we are convinced about is, we all think we'll do well next year and we'll do very well also going forward even once the COVID PCR testing stops. Assuming it stops, we still don't know. There is still the possibility that we that three or four years from now, we still do a lot of PCR testing for COVID. And we we are always conservative, and we always prefer to surprise you with positive news and negative news. But this is one of the scenario. Hopefully, not the most likely, but it is it is a possibility that twenty twenty two or 2023, we still do some COVID testing. Personally, I hope not, and I hope we can go back to a normal life and and and do our business, which is very exciting. We're we're very excited about all the new possibilities that that research in in this pandemic time has brought because they will bring a lot of growth for our business and and a lot of positive contribution to to health of everybody. So I mean, the pandemic will have a silver lining, not only will it and teach us that we can do a lot of things online, and and that will change the way we live and work to some extent, But in health care and also in food choices, combined with the more environmental awareness, there will be massive changes. We work a lot with food companies. We develop alternative food, alternative proteins, that will also require a lot of testing to replace maybe the meat based regimes that a lot of countries have had for a long time or to mitigate the quantity of meat, more natural sources, more organic products, shorter smaller batches, shorter supply chain. And all of these changes are basically for the better, and we'd be happy to support them. So overall, we're, as you can see, very excited about all the things we do, and and we're proud of our contribution. And it has been a difficult year for us and for our staff. We've had to work a lot more than usual in more difficult circumstances, but it's sign that we have a decent model as I did many entrepreneurial companies, enabled us to move faster, to have a contribution to this to fighting this pandemic that is significantly over proportional to our representation in the clinical testing business. And I think we can be very happy about that. And overall, it points to many, many areas that we will pursue in the next few quarters where we can contribute. So it's all very exciting. This being said, lives are not normal, and I really really are sad not to meet in person. I wish the New Year will be better. I hope we can all, have our meetings and and and talk about all those things together. And so I'd like to conclude by by wishing us all that, that you often got very little COVID testing next year, that we go back to our normal lives, and and we'll do everything to achieve that. So I wish you all a happy holiday and happy New Year. And I hope to see you in person soon in the New Year. Goodbye. This now concludes our conference call. Thank you all for attending. You may now disconnect your lines.

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