Ladies and gentlemen, welcome to the Basilea Pharmaceuticals' Health Year Results 2021 Conference Call and Live Webcast. I am Sandra, the Chorus Call operator. I would like to remind you that all participants will be in listen only mode and the conference is being recorded. The presentation will be followed by a Q and A session. The conference must not be recorded for publication or broadcast.
At this time, it's my pleasure to hand over to David Veatch, Chief Executive Officer. Please go ahead, sir.
Thank you. Hello. This is David Beach, CEO of Azalea, and I would like to welcome you to our conference call and webcast reviewing our financial results and key achievements for the first half year twenty twenty one and discuss our upcoming milestones. I would also like to mention that this call contains forward looking statements. Joining me on our call today are Anish Kaul, our Chief Financial Officer And Doctor.
Mark Engelhardt, our Chief Medical Officer. This morning, we issued a press release and our half year financial report. I will firstly provide a brief summary of our key achievements for the year to date. I'm happy to report that thanks to the continued focus and commitment of our employees and despite the limitations caused by COVID-nineteen, We were able to fully maintain our operations without any significant disruptions. We continue to see commercial progress And a significant growth in demand for our marketed brands in particular for Cresemba.
In market sales of Cresemba increased to US266 $1,000,000 for the 12 months to March 2021. In our reporting, This increased demand is most clearly seen by looking at royalty income, which increased by 27% year on year. We also reported a 26% increase in total non deferred Cresemba and Zevtera revenue. Our clinical study is progressing well. We reported positive clinical data for patients with FGFR2 fusion positive pyloduct cancer from the derazantinib FITIZ-one study and we reported encouraging data on the long lasting clinical benefit seen in EB1 positive glioblastoma patients who were treated in the Phase 1 study release of Ambulance.
Our licensed partner for Cresemba in Japan, Assahai Kasai Pharma, reported the successful completion of the Phase 3 study in deep seated MYCOSIS and announced that they are now preparing a new drug application in order to gain a marketing authorization for Japan. Also, our Phase 3 study with Zevtera in patients with staphylococcus aureus pacteremia, which we are conducting in support of a marketing authorization in the United States is on track to have patient enrollment completed around the year end. We're also making progress towards expanding our pipeline. We are conducting the final preclinical studies for a potential 1st in class small molecule kinase inhibitor, which would become in early 2022 our 3rd anticancer clinical program. In addition, we received a non dilutive research grant of up to US2.7 million dollars from the global partnership, PARVEX, for the development of a novel antibiotic against drug resistant bacteria.
Furthermore, we've executed 2 strategic transactions. We divested our Chinese R and D subsidiary for a total consideration of US6.3 million dollars And also we successfully carried out a capital increase in the form of a private placement with institutional investors, which generated gross proceeds of around CHF46 CHF 6,000,000 which increases our financial flexibility going forward. Adesh will now give an update on our commercial progress and present more detailed financial highlights for the first half year twenty twenty one as well as provide the details of our increased financial guidance for 2021. Then Mark will provide you with more detailed information on the progress of our clinical programs and the upcoming milestones. I'll now hand over to Ritesh.
Thank you, David. In the first half of twenty twenty one, our partners continued We make significant progress in the commercialization of Cresemba and Zevtera. We see a strong increase in demand across the world. The latest in market sales numbers available for Cresemba show that in the 12 month period ending March 31, 2021 sales grew by 18% year on year to US266 $1,000,000 And they continue to grow as demonstrated by the U. S.
Sales, which increased 25% year on year in the Q2 as recently reported by our partner Astellas. Partnerships continue to play an important role in Fusion of our global commoditization strategy and provide a strong basis for future revenue growth. Since the beginning of 2021, Cresemba has been launched in a number of additional countries. Now it is marketed in 53 countries and we expect further countries to be added, leading to around 70 launch countries by the end of 2022. As already mentioned by David, our partner for Cresemba in Japan, Azai Kazei Pharma is now planning to file an NDA in the second half of twenty twenty one.
And in China, the review of Pfizer's marketing authorization applications From leukomycosis and invasive aspergillosis, which were accepted for review in May October 2020, respectively, is ongoing. Zevtera is now on the market in 19 countries. In July, we announced our latest Distribution agreement for Zevtera with Moscow based JSC Lancet for Russia and the other countries of the Eurasian Economic Union. Moving on to financials.
I will highlight some of
the key financial figures that were published today. All figures I will refer to are in Swiss francs. By the end of this year, we will have largely completed The significant change in our revenue mix. The non cash relevant recognition of deferred revenue That means upfront development and regulatory milestone payments received in prior years has reduced by 94.9% year on year, now representing less than 3% of our total Cresemba and Zevtera related revenue. This gives now a much clearer view on the actual underlying cash contribution of our commercial business.
We have reported $46,100,000 in total Cresemba and Zevtera non deferred revenue at 26.3% growth year on year. Royalty income, which most closely reflects the underlying strength of our key brand Cresemba in the major territories, grew by 27.2 percent year on year to 23,600,000 The other revenue components amounted to $6,800,000 which is a 6.9% decrease compared to the prior year, mainly driven by BARDA reimbursements, which have decreased in line with the reduced development expenses incurred by us for the ceftobiprole Phase 3 program. Considering all these factors, total revenue decreased by 21.8 percent to 54,200,000 largely driven by the phasing out of the deferred revenue contribution. Cost of products sold increased by 3.1% to $13,500,000 R and D and SG and A expenses combined decreased by 3.9% to $56,100,000 reflecting our continued focus on cost management. We reported an operating loss of $15,400,000 compared to an operating profit of $12,800,000 last year and a net loss of $19,900,000 compared to a profit of $9,900,000 in the previous year.
Net cash used by operating activities was reduced significantly by 18% to 27,200,000 which provides an indication of the significant improvement in the underlying operational performance in the first half of twenty twenty one compared to the prior year. As of June 30, 2021, our combined cash and investments amounted to $164,700,000 which includes a cash outflow of approximately $13,000,000 related to the reduction of our 2022 convertible bonds. In order to fully understand The significant progress that we continue to make in our commercial business, one needs to have a closer look at the different revenue components. Royalties, non deferred product revenue and milestone payments have all increased year on year. These are the components of our non deferred Cresemba and Zevtera revenue and they reflect the actual strength and progress of our commercial brands.
As guided for, deferred revenue has declined significantly by $24,200,000 in the first half of twenty twenty one, which was the main driver for the reported decline in total revenue. A different way of tracking the continuous progress in our Cresemba business is to look at our royalty revenue, which closely correlates with the in market sales in the major territories. The time course does not only show the continued growth of the business, but also the seasonality of our royalty revenue, which is typically higher in the second half of a given calendar year due to the tiered royalty structure on U. S. Sales.
When looking at our operational performance, there are Important factors to bear in mind. We reported an operating profit of $12,800,000 in the first half of twenty twenty. However, the operating result was positively impacted by $15,000,000 in one off profit from the sale of our headquarters property and $25,500,000 of deferred revenue. Excluding these factors, the operating loss was $27,700,000 in the first half of twenty twenty, compared to an operating loss of $16,700,000 in the first half of twenty twenty one after the exclusion of $1,300,000 in deferred revenue. This represents an improvement of 40% year on year on a like for like basis and provides a clearer comparison on the actual underlying operational performance.
I'm turning now to our financial guidance for 2021. As a result of the strong performance in the first half of twenty twenty one And our expectation that the performance in the second half year will be even better, we are able to increase our financial guidance. We expect now total revenue to increase to $134,000,000 to $144,000,000 driven by an anticipated 47% to 60% growth in non deferred revenue contribution from Cresemba and Zevtera to $115,000,000 to $125,000,000 This should be the last year that we separately discuss Deferred revenue contributions from Cresemba and Teptera as they will decline by around 93% to 2,500,000 Now that we have fully recognized the past upfront and milestone payments from our partners Pfizer, Astellas and GoZen. Based on our higher revenue expectation and unchanged expectation on costs and expenses, We now anticipate a better operating result with an operating loss of €7,000,000 to €17,000,000 which is an improvement as compared to 2020 excluding the one off positive impact from the sale of the headquarters property. Finally, we assume a strong cash position of around $165,000,000 to $170,000,000 at year end.
Excluding any impact from a reduction of the outstanding convertible bonds. In the first half of twenty twenty one, The cash outflow related to this was approximately $13,000,000 Our year end Cash and investment guidance considers that certain milestone payments and product deliveries may actually occur towards the end of the year, which would result in us reporting the P and L impact in 2021, but the corresponding cash inflow only in 2022. I will now hand over to Mark for the clinical update and upcoming milestones.
Thank you, Adesh. Let me start with our antibiotic ceftobiprole. One of our key priorities for ceftobiprole is to gain access to the U. S. Market, which is by far the most important country for the commercialization of branded hospital antibiotics.
Our Phase 3 program includes 1 study target and include procuring skin and skin structural infections and another study ERADICATE in stethoscope oryzoparturemia or blood cell infections. The program is funded up to approximately 70% by BARDA And this allows us to advance the development of Festo Bi portfolio as market in a cost effective way. As just reported, the funding increased by US4.3 million dollars bringing the total value of the contract up to US134.2 million dollars In 2019, we reported positive top line results from the TARGET study. For the ERADICATE study, we expect Patient enrollment will be completed around year end 2021, so the study is on track for the reporting of top line results in the first half of twenty twenty two. If the buparemia study is also positive, OZARE plans to submit a new drug application to the FDA and as septevacro is designated a qualified infectious product by the FDA for these indications, it will be eligible to receive 10 years of market exclusivity in the U.
S. From the date of approval. Nearly 120,000 staphylococcus aureus pauperma or SAB infections have been reported in the U. S. In 2017.
The ERADICATE study targets complicated SAB, which is an area of high medical need with substantial morbidity and a 30 day mortality of approximately 20%. There are limited antibiotic treatment options with only 2 approved treatments in U. S, which are vancomycin and daptomycin that cover both methicillin susceptible and methicillin resistant toflococcidoreals or MSSA and MRSA. Ceftobiprole, if approved in this indication, would provide a number of important benefits over existing treatments, including its strong activity against both MSSA and MRSA, discriminative coverage, its activity in pulmonary infections and a low propensity for resistance development. Now moving on to oncology.
Our lead oncology drug candidate is terazantinib, which is a targeted orally available small molecule inhibitor of the fibroblast growth factor receptor for FGFR family of kinases. Our development strategy focuses on achieving differentiation Over other FGFR kinase inhibitors are leveraging the unique properties of derazantinib. Key differentiating factors include its unique kinase inhibition profile and its clinical safety profile. Bartleo's clinical development program currently comprises 3 ongoing studies: PHILIS 1 in intraepidical ambulatory carcinoma or iCCA, which is a type of wildcard cancer PHILIS 2 in urothelial cancer and PHILIS 3 in gastric cancer. In May 2021, we reported further improved top line results from the first cohort of the FETEZ I study, which provides the clinical proof of concept for leresanib as monotherapy in its first indication.
This first cohort includes 103 patients with FGFR2 fusion 15% of patients with ICCA. The objective response rate in these patients was 21% And the disease control rate was 75%. The median progression free survival was 7.8 months, which is in the upper range report for this endpoint with FGFR inhibitors in this patient population. We're also making good progress in Cohort 2 of the study, which is enrolling iCCA patients with FGFR2 mutations or amplifications And there's another area of high unmet medical need. We published positive interim results in March indicating similar progression free survival with derazantinib in this patient group to that reported for ICCA patients with FGFR2 fusions.
We're aiming to report top line results in the first half of twenty twenty two. Verazantinib also continues to show a well manageable safety profile with low rates of retinal side effects, thromatitis, hand foot syndrome and nail toxicity. Overall, these results underscore the favorable benefit to risk profile of darazantinib as a monotherapy in wild cancer. PDIS-two is a Phase III study with dalazumab as monotherapy and in combination with Roche PD L1 checkpoint inhibitor atezolizumab. This is a multi cohort clinical study in patients with advanced ulcerative cancer expressing FGFR genetic operations.
For the cohort with patients who failed to respond to other FGFR inhibitors, interim results are expected in the second half of twenty twenty one, both for monotherapy and in combination with atezolizumab. In May, Baseler decided to explore higher daily doses for mona as well as combination therapy in the PHILES-two study and initial results from cohort receiving this intensified dose regimen are expected in the first half of twenty twenty two. PD-three explores delazamlib as monotherapy and in combination with atezolizumab and with Lilly's anti angiogenic drug Ramaziramag axitaxel in patients with advanced gastric cancer and FGFR genetic operations. Clinical supply agreements are in place with Roche and Lilly, who provide atezolizumab and ramucirumab. As in PHILATES2, higher daily doses are also explored in PHILATES3 with initial results expected in the first half of twenty twenty two.
Moving to our tumor checkpoint controller, lizavambulin. We are focusing our clinical development activities with lizavambulin, a novel microfrugal targeting small molecule on glioblastoma, the most common and aggressive form of primary malignant brain tumors in an area of high unmet medical need with poor survival, High mobility and very few treatment options available. 2 patients from the Phase I part of the ongoing clinical study whose tumors tested On the potential response predictive biomarker EB1 are showing a long lasting clinical benefit and have been successfully treated for more than 2 years. One of these patients even experienced a reduction in tumor size of more than 80%. In July, the FDA granted lizovambuline orphan drug designation for the treatment of malignant glioma, which includes glioblastoma.
This is positive news as the designation qualifies for various In the Phase 2 part of this study, only EB1 positive glioblastoma patients are being enrolled And Baseler expects interim results at the end of 2021 and top line results in the first half of twenty twenty two. If these results provide a clinical proof of concept in telagloblastoma, this would support exploring the selection of patients based on EB1 positivity in other tumor types as well. EB1 prevalence data reported at the ASCO conference in June indicate that approximately 5 The strongest expression of EB1 in non glioblastoma tumors was detected in tissue samples from medulloblastomas and neuroblastomas, which are cancers that occur predominantly in the pediatric population. EB-one positive staining was also found in tissue samples from metastatic melanoma. Another tumor expressing slightly lower levels of EB-one staining I will now turn over to David.
Thank you, Mark.
In summary, we continue on track with the execution of our strategy and our 2 business pillars of oncology and infectious diseases. We are significantly growing our cash relevant revenues from our marketed brands Cresemba and Zevtera. We are also on track to have Cresemba launched in 60 countries by the end of this year and expect to increase that to 70 by the end of the 2022. We are also continuing to advance our R and D portfolio towards the next milestones through 2021 2022. Second half of twenty twenty one and the first half of twenty twenty two hold a number of important milestones, especially related to our clinical programs.
We anticipate the filing of an NDA by our partner Assai Kocyte Pharma later this year with the goal to gain marketing approval of Cresemba in Japan. In addition, we expect the patient enrollment into cetaphypo Phase 3ERALICATE study will be completed around year end thus on track for reporting top line results First half twenty twenty two. In derazantinib, we expect interim results in the second half of the year in the FIDDIG2 study Patients with urothelial cancer refractory to prior FGFR inhibitors with derazantinib as both monotherapy And combination therapy with acesolizumab. For liso vamulin, we're expecting interim results from the EB-one biomarker driven Phase 2 study in recurrent glioblastoma by the end of the year, followed by top line results in the first half twenty twenty two. Finally, if the preclinical studies with our new oncology drug candidate are successfully completed, we are planning to file an investigational new drug application later this year.
If granted, this will allow us to start a Phase 1 clinical study in early 2022 adding a third compound to our clinical oncology pipeline. Thank you for your attention. And we'll now open the line up for your questions.
We will now begin the question and answer session. Only 3 questions may be asked in the row. Then the line will be open to others. You can get back in the line again for follow-up questions. The first question comes from Louise Chen from Cantor.
Please go ahead.
Hi, congratulations on a great quarter and thanks for taking my questions here. So my 3 questions for you are number 1, Could you provide any more color on your new oncology drug candidate, the potential 1st in class small molecule kinase inhibitor and where it fits into your pipeline of products? And then secondly, what do you think about expanding your oncology pipeline that's been a focus for you? And if you've thought about that, what areas do you think you might want to bolster? And then last question I have for you is, how do we think about the opportunity for Lisa Vanburen in GMB and the patients that have that EB1 biomarker?
Thank you.
Okay. Thank you, Louise. And yes, I'll take maybe your first couple of questions and then I'll hand over to Mark to talk about The GBM market opportunity with EB-one patients. But in terms of your I mean, we can't say too much detail, but What we can say is that we have a early it's in very late stages of the IND enabling studies. All is going well at the moment and we hope later this half year to be able to file for the IND.
It's a Small molecule kinase inhibitor, we've previously stated it was the results of an in licensing back in 2018. So this is an example of our sort of dual strategy of bringing things through from our own discovery and development in addition to in licensing selectively compounds. It fits in the sweet spot of ours in terms of a targeted small molecule and this is very much What we look for in terms of in licensing as well as our own development programs. And as I said, if all goes according to the plan and the IND is approved later this year, We can start and we're already preparing that now. The clinical study is very early in 2022.
In terms of behind that, what I would just comment is obviously there's even less information we can provide on those now. But we do have A number of other preclinical assets actually, again in oncology behind that that we are hoping to find clinical candidates progress towards IND and A in such studies. But it's more in the oncology area that we've got the more preclinical assets closer to the clinic That in the anti infective space, we have anti infective compounds as well, but they're a bit farther out in terms of away from the clinic than the oncology ones. That's what I would sort of what I can really say at this point in time about the earlier oncology assets. Suffice to say, we are continually also looking Externally for other compounds that we believe can fit into this portfolio that fulfill the same criteria We've looked at so far in terms of small molecule targeted compounds and then particular areas that we look at in terms of targets etcetera.
But why don't I just I'll start with the Marc to take the GBM opportunity question. Yes. Thanks very much, Louise, for
the question. So In GBM, as we all know, there's really high medical need for new treatments, especially In the recurrent setting, there's really not any satisfactory standard. I mean, lomastin It's a very old drug that's used and with very low response rates. In some countries, triple combinations are used, but all of these The treatments are quite unsatisfactory. So if we saw that EV1 is enriching for response For lisa vambulin, we certainly have a standing to become a standard treatment in the recurrent setting for EV1 positive Patients and the testing approach for these would probably be relatively straightforward.
We have an immuno histochemistry test, Which could be implemented broadly in pathology. We believe that would be probably it would be quite easy To have a broad coverage of EV1 testing and pathology labs. If this shows to be Response predictive, the natural step would be in glioblastoma to go into a first line setting. And as you know, we have already A study ongoing in combination with radiotherapy. So we will have information on the dose that can be given When lisa vumbulin is combined with radiotherapy and then the question I think for the further opportunity beyond glioblastoma It depends a little bit on whether EV1 is more an agnostic predictor if the GBM would have a proof of concept and this could be extended beyond GDM.
But as said from our perspective, If there is a response prediction, it would be quite straightforward to implement it.
Thank you. The next question comes from Ryan White from Calvin Partners. Please go ahead.
Yes. Thanks for taking my questions. I've got one on Liza Van Der Wer and Hi, Damon, Dave Antony. Just following on from what you answered there, Mark. Just looking at the development pipeline And of Lutather Andi then.
Is your intention, as I understand, that then post these Phase 2 data to look An additional setting for Luzafamba in the first line. You are already going to speak to the regulators post The Phase 2 data and then the Phase 2 meeting with the potential for regulatory filing. But also just in terms of the various cancers you spoke about, I mentioned in the release, would you envisage a basket study to look and see which would be the most appropriate indication? And the second question on derazantinib. It looks as though resistance is going to be inevitable to this class.
Do you think that is a class effect? Do you think that there is a possibility that this answer may be applicable Other resistance FGFR inhibitors and do you think dose intensification Amelia, we are dealing with that or just going to take a combination approach? Thank you.
Okay. Thanks, Brian, The question well, I mean, Mark, I'm going to look at you and you're probably best placed to comment on the lisoamblinib and adenosantib and then
we can chip in. Yes. Thanks very much for the question. I think it's the list of ambulance is a continuation of the previous answer. We've always said that the proof of concept needs to come from glioblastoma where we have seen in the Phase 1 study And I think this is a signal that we need to validate prospectively.
And we are already we've done epidemiology work as indicated In the presentation, but also published at ASCO and there's certainly EB1 positivity in other cancer types. These are sometimes small cancer types, but also We've seen a signal in metastatic melanoma and also in the really large cancer types. So we would certainly try to find a way To extend this beyond glioblastoma in the sense of a basket, but I think we first need to see what type of response, how fast are these responses, how deep are they, if we see them. And then we can make a decision whether we want to expand through different lines in glioblastoma or I'll bring this to a more diagnostic basket. So that would be my short response for the lizamamulin question.
Just to jump in, because I think
you touched on it Brian. Just to add one thing to what Mark said is that, yes, The thinking we have at the moment though is to follow it. If it was a positive proof of concept in GBM, we would then likely then contact the health authorities Discuss the development strategy in both EBM and other tumor types. So we would do that because you did. Okay.
Yes. And you indicated I think in end of Phase 2 meeting and that would be probably the promise to do that. And then there's Antoinette Well, that resistance and dose intensification. Yes. So I believe the dose intensification has several Reasons one of which is to is the competitive landscape in neurothelial cancer results.
So it's certainly A higher dose also from existing development as always. If anything, it's something positive to give. And the question whether the you could use different FGFR inhibitors in sequence because the resistance of one XFR inhibitor doesn't mean that another XFR inhibitor may not work may actually work. That's what we're currently testing in urothelial cancer and that's where we plan to provide interim data So it's in the second half of twenty twenty one, where we exactly treating Patient with urothelial cancers that had treatment on another FGFR inhibitor and this will certainly contribute to the answer. And I think you also indicated whether there's a difference in using an absolute inhibitor or trying Combinations and I think it depends really on the resistance mechanism and there's work ongoing not only by us but also Other companies to elucidate that.
Okay. That's great. Thanks, Mark.
The next question comes from Bob Pooler from Evaluation Lab. Please go ahead.
Good afternoon, gentlemen. A few questions for me. Do you see more initiatives to combat bacterial resistance on the back of the COVID-nineteen pandemic? And Which pipeline expansion do you have a preference for oncology or anti infective? And then thirdly on lizabamulin, The exceptional responder that you had, you had 3 EB1 positive and you had 1 exceptional responder.
Did that person have a strong EB-one staining? So really into that sort of slices of the pie chart that you have 6% in glioblastoma.
You want to start with that one Marc actually?
Yes. So the exceptional responder had the tissue of that patient had a strong EB-one staying and I think that Heino was the starting point to explore this. We had EB1 as a biomarker before this. We published in 2015, 2016 Animal data where animals with high EB1 expressing glioblastoma versus suppressed EB1 glioblastoma were treated with lizavambulin and there was quite clear effects that the EB1 was response predictive. So when we saw the strong Evon staining in this example, we started staining tissues.
And As you mentioned in the ASCO presentation, in this Phase I study, We had 3 patients with strong EV1 staining. And out of these 3 patients, One was the exception of the standard. The other is the patient with a long ongoing stable disease for more than 2 years. And then there was one patient that had a progression. So 3 EB1 positives, 2 was really long standing general benefit.
And amongst the EB1 negative patients in the Phase I study, we didn't see Any long term clinical benefits in these patients, that's how we kind of That was for us the starting point. And now we're trying to show prospectively that this is actually a response predictive marker Moving forward.
So in the trial, you will include then enrolled in a strong EP1 CIN patients, so not moderate?
Correct. So we are we have criteria to select the strong EVA on staining And this is done by an immunohistochemistry test. And I think if this It turns out to be response related and this may be part of your question. And I think we probably would Need to think about what is the best threshold, because that is we used a threshold That was guided by what we've observed what we had observed in the Phase I study. And then the question whether you could go lower with the threshold That's the question we would the sub second would be addressed.
Okay. And then Bob, your question around on the back of COVID-nineteen, has there been more focus or more momentum in terms of antimicrobial I think probably the short answer is, I think my feeling is my subjective feeling is yes. I think in terms of objectively what evidence is there, I think probably the best example actually is the submission of the PASTA Act, which has Started the legislative process in the U. S, I think it was June this year and that's probably the best example of A real pull incentive, which if it became law in the U. S, which is the proposed act is centering on this concept of It's a subscription model for antibiotics.
So de linking volume from quantity sold. And obviously, that's, I guess, you could say an objective Sign that the antimicrobial resistance is definitely not going away as a global issue. And then in Europe, in certain countries of Europe and European There have also been more initiatives and talk of initiatives to try and also address the same problem around creating real pull incentives on top of that. The effective push incentives like for example the BARDA funding that we talked about earlier that are available and we make use of which really help with regard to getting drugs The market, but in terms of then allowing them to be more commercially viable, I think there's definitely Building momentum, I think I would say and there's more evidence of that as time progresses. Can I just Bob, what was your second question?
Just
on your pipeline expansion, do you have any preference for oncology or anti effective assets?
So maybe I take this one. So just to remind you, we have announced actually just This half year about that we have 2 early stage assets in both areas. So we have the CARB X funding for a novel antibiotics, Which underscores our continued commitment to the space and the early oncology compound, which was already discussed on this call. From that perspective, both areas still remain in our focus and forward going, we will continue to look at opportunities in both areas. Just from a perspective of now in licensing or partnering, there are simply more opportunities available in the oncology So just by the nature of the game and by looking at the numbers, there are just more opportunities on the oncology side.
And that will probably also be reflected a little bit in how we are moving forward in that on the oncology side, we'll probably see more activities, More and more projects that we'll be pursuing.
Okay. Thank you for answering the questions.
Thank you.
Gentlemen, so far there are no more questions.
Okay. Thank you very much for your interest and Enjoy the rest of
your day. Thank you very much.
Ladies and gentlemen, the conference is now over.