Silence Therapeutics plc Q4 FY2020 Earnings Call

Good day, ladies and gentlemen. And welcome to the Silence Therapeutics Full Year 2020 Conference Call and Webcast. At this time, all participants are in a listen-only mode. Later we will conduct a live question-and-answer session through the phone lines and instructions will follow at that time. Participants can also submit questions through the webinar platform, which will be answered by the company at a later date. As a reminder, listeners should join the call through either the webcast or phone lines for best viewing experience. I will now hand over to Gem Hopkins, Head of Investor Relations and Corporate Communications to open the webinar. Please go ahead, madam.

Good morning, and good afternoon, everyone. Thank you for joining us today for the Silence Therapeutics full year 2020 results call. During the call we will be walking through a slide presentation. If you haven’t already received the slide deck please be sure to visit the Investors section of our Corporate website at www.silence-therapeutics.com to download a copy or follow along on the webcast. Turning to slide two. I’d like to remind you that during the course of today’s call management will make projections or other forward-looking statements regarding anticipated future events or the future financial performance of the company, including clinical development objectives, the therapeutic potential of our product candidate, our operational plans and strategies, anticipated milestone payments, anticipated operating and capital expenditures, business prospects and projected cash runway. Actual results may differ materially from current expectations and projections, depending on a number of factors affecting the Silence business. These factors are detailed in the prospectus that we filed with the Securities and Exchange Commission on March 15, 2021, and may be updated by our periodic filings with the SEC from time-to-time. It’s important to note that such statements and events are forward-looking and reflect our current perspective of the business trends and information as of today, Tuesday, March 30, 2021. Silence disclaims any intent or obligation to update these forward-looking statements except as expressly required by law. Joining me today on the call are Mark Rothera, our President and CEO, who will provide an update on the business. Craig Tooman, our Chief Financial Officer, will discuss our financial performance and then turn the call over to Dr. Giles Campion, our Head of R&D and Chief Medical Officer to give an update on our clinical programs. Mark will then provide some closing remarks before turning the call to the operator for Q&A. With that, I will turn the call over to Mark.

Thanks, Gem. Good afternoon, and good morning, everyone. Thank you for joining us today. So, moving to slide three. Looking back at 2020 and for the first period of 2021, Silence has made remarkable progress at both the scientific and corporate level. 2020 set the stage for 2021, which I believe is going to be a breakout year for Silence, as we look to position ourselves as a leading global RNAi business. After 20 years of developing our science in the field of RNAi, we have entered 2021 as a clinical-stage company with three Phase 1 data readouts anticipated this year. This is an important moment, as we look to demonstrate the potential and maximize the opportunity of our proprietary mRNAi GOLD Platform. To get to this point, we have achieved key regulatory milestones in 2020 and successfully advanced two wholly-owned programs into the clinic, SLN360 for cardiovascular disease due to high levels of lipoprotein(a) or LP(a) and SLN124 for rare iron loading anemia conditions like thalassemia and myelodysplastic syndrome or MDS. Last month, we started dosing patients in the SLN360 APOLLO Phase 1 study in people with high levels of LP(a). We’re on track to read out data from the single ascending dose portion of the study in the second half of this year. Our plan is to rapidly advance SLN360 in the clinic, positioning ourselves to initiate Phase 2 studies in the second half of 2022, while creating more value for the asset and options for the future. For SLN124, we recently completed enrollment in the GEMINI I Phase 1 study in healthy volunteers and remain on track to report data in the first half of this year. This is an important milestone, not only for the SLN124 program, but it will also be the first in-human data from our GOLD Platform. We also started enrollment last month in the GEMINI II patients study with SLN124 and expect to report interim data in the second half of this year. Giles will provide more detail on both programs later in the call. Alongside advancing our wholly-owned pipeline, developing high-value collaborations is a core part of our strategy and we made great strides with this in 2020, including a landmark deal with AstraZeneca in March for up to 10 targets across cardiovascular, renal, metabolic, and respiratory diseases. We received an upfront cash payment of $20 million and are due to receive another $40 million in the first half of this year. In January 2020, we also commenced the technology evaluation deal with Takeda to explore the potential of our platform against the novel target. In addition, we also expanded our collaboration with Mallinckrodt for complement-mediated diseases. In 2020, Mallinckrodt exercised options on two additional targets, each triggering a $2 million research milestone payment to us. We’ve now initiated work on all three targets covered by our agreement with them. Collectively, these partnerships represent up to 14 programs and economics of up to $6 billion in potential milestones plus royalties. From a financial perspective, we’re in a strong position and have already started to see the benefits of our Nasdaq listing last September, with the completion of an oversubscribed $45 million financing last month. This financing, combined with a non-diluted funding from our collaborations gives us a pro forma cash position of £97.5 million, which is sufficient capital to see us well beyond key clinical data readouts for both the SLN360 and SLN124 programs. Craig will discuss our financials in more detail in a few minutes. Over the past 18 months, we’ve continued to strengthen our team with key appointments across clinical, regulatory, IP, and finance. This includes myself, Giles, and Craig, who all bring over 30 years of experience in the industry. We also recently appointed Dr. Michael Davidson, a world-leading lipidology expert with tremendous experience in cardiovascular clinical trials to our Board. I believe we have the right people in place to drive successful execution of our plan. And we’re committed to advancing our pipeline as fast and efficiently as we can, and our goal is to file two to three INDs per year from 2023, representing a combination of both wholly-owned and partnership programs. Moving to slide four, we believe Silence has a clear path to value creation. This chart illustrates our peer group in the RNAi field. You can see they all have multi-billion dollar market caps, while Silence today is under $1 billion. The way I see it to build value, we must expand our pipeline, have more wholly-owned programs, and advance our pipeline in the clinic rapidly and effectively. All of this should create substantial value moving forward. We have developed a roadmap together. In addition, as you’ll see in a moment, SLN360, our wholly-owned lead program is a program with blockbuster potential that on a standalone basis can create tremendous value. Moving to slide five, our approach is based on our GOLD Platform that we’ve built and refined over the last two decades. Using our GOLD Platform, we aim to optimize molecular design so as to maximize efficacy, minimize our target effects, improve stability and consequently the duration of action, and whenever possible, ensure ease of manufacturing. We have a robust and growing IP estate, not only covering our platform, but also each target that we are pursuing. Moving to slide six, we believe there is tremendous potential and opportunity to leverage our GOLD Platform. There are over 14,000 genes expressed in the liver. Of these, 99% are not currently being targeted by an existing or potential sRNA program, as estimated across our peer group. Even if there were only another 1% of meaningful targets that we could address to treat diseases with unmet need, that’s another 140 programs that we can look for. So we think there’s a tremendous opportunity and mileage to be had in leveraging this platform. To this end, we’ve established a translational genomics team in-house that is working hard to identify and validate novel targets. We’re also open to developing best-in-class molecules against known targets. Moving to slide seven, as mentioned earlier, what is particularly attractive about our GOLD Platform and the GalNAc sRNA approach is it is a proven modality. In fact, the likelihood of successfully moving a GalNAc sRNA program through the clinic from Phase 1 to Phase 3 and then to approval is significantly higher compared to the industry average. This means that the return on discovery investment in the GOLD Platform has the potential to be much better than is typical for our industry. Moving to slide eight, we are doing several things to capitalize on this opportunity and maximize the output of our GOLD Platform. Firstly, as I mentioned, we have invested in a translational genomics group that we have been building over the past year and a half, and that group is focused on novel targets in the liver. We’re also looking to reduce attrition, so that when we do go for a target, there is a higher likelihood of success. Finally, we continue to seek strategic partnerships to enhance our pipeline opportunities in addition to growing our wholly-owned strategy. As I mentioned earlier, we intend to file two to three INDs per year from 2023 through a combination of both our wholly-owned and partnership programs. Moving to slide nine, our strategy is based on a hybrid model. We’re advancing our wholly-owned pipeline but also servicing our partners. And this pipeline chart highlights this showing our lead wholly-owned assets, SLN360 and SLN124, along with the programs of our partners Mallinckrodt and AstraZeneca below. So, with that overview, I’ll now hand over the call to Craig to discuss our financial performance in more detail. Craig?

Thank you, Mark. Let me just provide some context around the financials we reported today beginning on slide 10. For the period ending December 31, 2020, the company recorded £5.5 million in revenues versus £0.2 million in 2019, which is largely a reflection of the partnership programs with Mallinckrodt and Takeda. As you know, according to these programs, we record revenue based on percentage of contract completion. For direct reimbursements by our partners, there is a cost of sales that is attributed to the revenues. As additional programs progress, such as the SLN501 program did in 2020, our revenue should build over time. This will include programs partnered with AstraZeneca as well. As expected, R&D costs rose in 2020 to £20.2 million versus £13.3 million in 2019. In addition to partnership program costs, this includes our proprietary program costs for SLN360 and SLN124 in addition to headcount increases. As Giles will update you on next, we are very enthused about our projects in development and continue to evaluate new opportunities in the area as well. General and administrative costs were approximately £14 million in 2020 versus £9.6 million in 2019. The increase was primarily driven by costs associated with the Nasdaq listing and additional needs required for being a public company trading in the U.S. The company’s net loss for the full year 2020 was £32.5 million versus £19.6 million in 2019. We talked about the two main areas of investment having an impact on the P&L, namely the R&D programs and the G&A spending. Turning to slide 11. The company’s cash, cash equivalents, and deposits were £37.4 million at the end of December 2020. However, we successfully raised net proceeds of approximately £30.8 million in oversubscribed financing that closed in early February and we expect contractual proceeds of £39.3 million from AstraZeneca in the first half of this year. In total, the pro forma cash using these balances is £97.5 million, as Mark noted. We are showing it to you both ways for your information. We’re also depicting our share count on the slide at year end 2020 and after our February financing. Obviously, for modeling purposes, going forward, you’ll want to use the post-financing figure of 89.4 million shares. We believe we have a strong cash position at present. Importantly, this should allow us to comfortably fund the company through the data readouts on our key programs SLN360 and SLN124 that we have been discussing today. In 2021, as noted in today’s press release, we anticipate investing in the continued growth of the company. We expect to incur higher R&D costs as our programs advance compared to prior periods. We will also spend an additional G&A to support a growing organization and to comply with greater regulatory requirements. We are not providing any specific guidance on the spending today, but we will be investing as prudent to support the success of our clinical programs. With that, I’ll turn the call over to Giles to provide an update on our wholly-owned clinical programs SLN360 and SLN124. Giles?

Thanks, Craig. I’m pleased to discuss our proprietary clinical programs, beginning with SLN360 for cardiovascular disease linked to high LP(a). LP(a) is recognized as an independent risk factor for cardiovascular disease, which is genetically determined and cannot be altered through lifestyle or diet. High LP(a) is prevalent, affecting nearly 10% of the global population, with levels exceeding 90 milligrams per deciliter significantly increasing cardiovascular event risk. The global prevalence data shows that a threshold of 50 milligrams per deciliter is when experts recommend treatment, affecting about 20% of the world’s population, while 90 milligrams per deciliter correlates with a higher risk in 10% of the population. Individuals with 90 milligrams per deciliter are 2 to 3 times more likely to experience serious cardiovascular issues compared to those with normal levels. There is a clear and significant unmet need in this area. We view the LP(a) market as having similarities to the cholesterol-lowering market. The estimated population with LP(a) levels above 50 milligrams per deciliter is around 132 million, which is comparable to the 136 million with high cholesterol that requires medical treatment. A key distinction is that while high cholesterol can be managed with lifestyle changes and not all patients require medication, high LP(a) is a hereditary condition where most patients will need medical treatment, as lifestyle changes do not impact LP(a) levels. Many patients realize their condition only after experiencing severe events like heart attacks, often despite leading healthy lifestyles. Currently, there are no approved treatments for high LP(a), with only a few drugs, including SLN360, in development. Regarding SLN360, our non-human primate data suggests it has a promising therapeutic profile, showing fast and substantial reductions in LP(a) levels, sustained throughout the study. Furthermore, in rodent models, we observed minimal drug levels outside the liver and kidneys with no off-target effects, which is critical for the safety of a preventive treatment in a generally healthy population at increased cardiovascular risk. The ongoing APOLLO Phase 1 study targets healthy volunteers with high LP(a) levels, aiming for a reduction in these levels. Despite the challenges due to the pandemic, we anticipate data from the single ascending dose phase in the latter half of this year. Our second proprietary program, SLN124, is focused on iron loading anemia conditions such as MDS and thalassemia, which are poorly managed by current therapies and negatively affect quality of life. SLN124 has received orphan drug designation for both conditions and a rare pediatric designation for thalassemia. The mechanism of SLN124 normalizes iron levels by restoring hepcidin, regulating iron balance by silencing the TMPRSS6 gene in the liver. In preclinical models, we observed reduced TMPRSS6 levels leading to increased hepcidin, which lowered iron levels to normal and improved red blood cell production. We are conducting two studies for SLN124. The initial study with healthy volunteers assesses safety and measures of hepcidin and iron levels, and it’s fully enrolled with data expected in the first half of this year. This study is significant as it represents the first human data from our GOLD Platform. Additionally, we are also enrolling participants for the GEMINI II study focused on adult thalassemia and MDS, with results anticipated in the second half of this year. With that, I’ll hand the call back to Mark.

Thank you, Giles. Moving to slide 23. This is a really important year for Silence. After 20 years of developing a science and expertise in the field of sRNA, our GOLD Platform is now in the clinic, with three Phase 1 data readouts anticipated this year from our wholly-owned programs. Strategically, we are looking to maximize our GOLD Platform, and over the next few years, we expect to deliver two to three INDs per year, both through developing our wholly-owned programs and through our partnerships. We are well capitalized through both non-dilutive funding and the recent $45 million financing. 2020 set the stage for 2021, which I believe is going to be a breakout year for Silence as we look to position ourselves as a leading global RNAi business. With that, I’d like to thank everyone for listening today and I’ll pass back over to the operator for questions.

Thank you. Your first question today comes from the line of Tom Shrader from BTIG.

Hi. This is Julian on for Tom. Congrats on all the recent progress and thank you for taking my question. Tissue distribution is becoming an emerging theme in the wake of recent events in the broader antigen space. So I guess, with that in mind, can you remind us what gives you confidence your sRNA’s can get to where they need to, and inadequate and amounts maybe in the context of your LP(a) and hepcidin programs?

Great. Tom, thank you very much for the question. And I think the best person to answer that is Giles, who is on the line in the U.K. So Giles, do you want to tackle that one?

To answer the question, it’s very important because it highlights the significant advantage that GalNAc conjugated sRNA has over other options. It specifically targets hepatocytes, where the LP(a) gene is located. As I mentioned earlier, the critical point is that less than 1% of peak liver levels are found in other organs, which results in a very limited distribution and likely reduces off-target effects.

Okay. Got it. That’s helpful. And then quickly on SLN360, I’m wondering if you have a sense now for the target dosing interval and when might that be better elucidated? And in terms of the sad portion, the Phase 1 expected to readout in the back half of this year? Are you framing any expectations for LP(a) knockdown?

Giles, do you want to take that?

Yes, the ongoing Phase 1 study is designed to demonstrate this. What’s encouraging is that we've observed interest in the targets related to TKS line, which is now associated with a six-month dosing schedule. One of the benefits of sRNA is the ability to extend the intervals between doses. From the data we've reviewed from Amgen, we notice a comparable dosing interval, suggesting potential for full dosage. Therefore, we anticipate seeing results that are similar, if not better.

Okay. Great. Thank you very much.

Thank you.

Thank you. Your next question today comes from the line of Patrick Trucchio from H.C. Wainwright.

Hi. Good morning and good afternoon. I have a few follow-up questions on SLN124. First, could you discuss the 1 milligram per kilogram and 3 milligrams per kilogram doses being evaluated in the GEMINI Phase 1 study of SLN124 in healthy volunteers and the reasons behind selecting these dose levels? Secondly, since safety and tolerability is the primary outcome, what changes in hepcidin and hemoglobin are you looking for based on your pre-clinical findings? Also, to what extent could the pharmacodynamics observed in healthy volunteers apply to MDS and thalassemia patients?

Patrick, these are great questions. And of course, this is the first set of data that we’re anticipating this year in the first half of this year. So it’s an important question. Giles, do you want to tackle this question around dosing and what we can expect from the study?

We base our dosing on models observed in healthy rodents and the beta thalassemia model, as well as data from primate studies. We conduct extensive modeling to determine our initial human dose, which must be supported by safety data. As Mark mentioned, we will be reporting our healthy volunteer data very soon in the first half of this year. I don't want to make any predictions just yet, but we are aware of the outcomes achieved by other compounds in terms of hepcidin and iron levels, and we feel confident we will be in a similar range. Regarding the patient study, we expect strong proof-of-concept results in healthy volunteers, so we need to be cautious about dosing levels in that group. However, we anticipate a potentially greater effect in patients, as they are typically iron overloaded and may also experience a longer duration of action.

Can you discuss the changes in hepcidin, serum iron, and hemoglobin that would be considered clinically relevant, or what changes we might interpret as translating to meaningful outcomes in later stage trials?

Giles?

I don't want to go into too much detail right now. Ultimately, our goal is to have an impact on anemia. In our preclinical studies with mice, we observed an increase of 2.5 grams per deciliter. I believe that if we can achieve an increase greater than one gram in our longer-term studies, we would feel confident about the drug's effectiveness. Regarding hepcidin, we expect to see at least a doubling, if not more, along with a reduction in serum iron in our healthy volunteer studies.

Got it. That’s helpful. I have another follow-up on, just on the GOLD Platform, if I may, just regarding the…

Yeah.

…potential novel targets in the liver. Can you discuss how Silence is going to decide to pursue novel targets? Specifically, what level of validation would you be looking for, is it genetic validation or how is the decision going to be made to pursue a novel target?

It’s a great question, because as you recall, we have set ourselves a goal of two to three INDs per year by 2023. This will include both expanding our wholly-owned pipeline with new targets and pursuing targets for our partners. As you may remember, we have established a translational genomics team under Giles and improved our machine learning capabilities. This has been an important strategic focus for us, especially since we believe there are still significant opportunities to discover targets and deliver results. Perhaps, Giles, you can elaborate on this team and their approach to identifying targets that are of interest to us?

Yeah. I think one of the key criteria is unmet need. I mean, we obviously want to develop new medicines, where there’s a great need for them. I think if we can just go back to the compounds that are going into the clinic right now gives you a sense of what makes a really good target. So for example, SLN360, which is targeting LP(a), this gene is found exclusively in hepatocytes. So there is very little risk of off-target effects, or the level of off-target effects is diminished. It also means you’re going to get a specific action. We know from human genetic data, that having low levels or zero levels is not associated with any untoward effect. So that means there’s a reduction in terms of concerns about potential super pharmacology. And actually, the gene is not expressed in other organs. So it’s allowed us to go pretty quickly from sequence through to non-human primate to patient. So these are the sorts of things that we bear in mind when we select a target. And that’s why genetic validation offers a big clue in terms of whether a target is likely to be relevant for human disease.

Got it.

I would just say we have. Okay. I was going to say just we also pursued various data agreements, access to databases that will allow us also to mine databases for novel targets as part of this process.

Great. Okay. Thank you so much.

Thank you, Patrick.

Thank you. Your next question comes from the line of Miles Dixon from Peel Hunt.

Many thanks for the question. And I think, firstly, to me that, if I could get an update on AstraZeneca please, I previously understood that that was you talked about 10 targets. I previously understood that to be two, five target tranches, with the second five extrahepatic. Is that still the case in terms of what you’re targeting and what’s the progress in that second five? Thank you.

Thank you very much for the question, Miles. The collaboration with AstraZeneca is progressing well. They are an excellent partner, and we are continuing to broaden our work with them as anticipated. I would say that just over a year in, we are on track to have five targets underway within three years, which was our initial goal for this collaboration. So at the current pace, we seem to be on schedule to achieve that.

Great. Thank you. And just one more leading to intellectual curiosity to Giles. He showed some interesting data on SLN360 on the highest 10% of the population of LP(a) expresses. I think it was 90 micrograms per deciliter and the chances of relative adverse event in cardiovascular disease being increased by two-fold to three-fold. How does that compare to the most sort of the highest expressed LDL cholesterol in the population with adverse events in cardiovascular disease? Thank you.

Well, it’s a little bit difficult to give you a straight answer for that, because the demographics are quite different and also individuals tend to have mixed pictures. So I think it’s difficult to give a straight answer to that.

Understood. Thank you.

Thank you. Your next question comes from the line of Myles Minter from William Blair.

Hi. Thank you for taking my questions. I feel like Giles has been addressing most of them, so I’ll defer to him. Regarding the APOLLO study, there are a lot of doses that you're considering in the sub portion. I’m curious about the dose ranges you anticipate to be therapeutic. Amgen is reporting that at higher dose levels, they achieve over 75% knockdown of LP(a), while you've demonstrated 90% in pre-clinical stages. What dose ranges do you think would be necessary to replicate those results in the clinic? Also, with the less than or equal to 900 milligram dose, does that come close to the no observed adverse effects like what you found in non-human primates?

Yeah. Thanks for the question, Miles. Over to Giles.

Yeah. I have to deal with that last question, first. I mean, again, I think, that’s one of the advantages of the sRNA platform is that the preclinical safety profile looks pretty good. So in the presentation we made at the American Heart, we have a margin of 60-fold between the no effect level and the dosing starting match in terms of the clinical study. So we’re well within anticipated ranges for even the highest dose and that’s obviously part of the conversation we have with the regulatory authorities. You’re right in terms of what people are looking for knocking down LP(a) is around about 70% to 80%. I mean, if you can get above that, then potentially you can also deal with those individuals that have very high levels. And I was referring to 90 milligrams per deciliter has been associated with significantly increased cardiovascular risks, but there are people out there with 200 milligrams per deciliter, 300 milligrams per deciliter. So there are individuals with quite high levels, and obviously, the more you get them down to what’s considered acceptable ranges, the better your therapeutic is at.

Okay. Cool. And then on GEMINI, the healthy volunteers study, obviously, GEMINI II is ongoing at the same time as this. I’m wondering if you would be able to glean any information from the readout of the healthy volunteer’s study that might inform on any sort of potential changes in GEMINI II that you might want to make or potential expansion into indications like hereditary hemochromatosis or polycythemia rubra vera, like, what additional information you’re hoping to get out of that trial?

The main objective of the healthy volunteers study is to establish proof-of-principle. As previously mentioned, this involves demonstrating the ability to increase hepcidin while reducing iron levels, ultimately influencing red cell production. There is growing evidence that managing a key regulator of iron levels is crucial for determining the effects of toxic iron, especially in cases of iron overload. The theory suggests that by alleviating iron overload, we can enhance the production of new red cells in treating conditions like polycythemia rubra vera, where interesting results have been observed with a hepcidin mimetic that raises hepcidin to lower iron levels. Engaging with this significant mechanism, which is vital for red cell production, also presents several other opportunities. A strong proof-of-principle could pave the way to investigate various avenues further.

Okay. Cool. And then last one, if I may, just wanted to the company in general, just under £100 million pro forma in the bank building to two to three INDs per year by 2023. How do we think about sort of balancing the capital needs for the company versus the non-dilutive capital that you’re bringing from those partnerships moving forward? And what are the strategies, maybe the probably thinking about to address the liquidity on the Nasdaq here?

Miles you spot on. Craig, do you want to take that one?

I really appreciate it. As mentioned in the release, we won't be providing more specific guidance on cash, but I want to highlight that £97.5 million looks good on a pro forma basis. We have already secured $45 million from the pipe, which closed in February, translating to £30.8 million net. Additionally, £29.3 million will come from a $40 million payment from AstraZeneca in the first half of this year. Together with the £37.4 million we had at year-end, that totals £97.5 million. If you look back a year, our R&D programs were at earlier stages of spending and we weren’t listed on Nasdaq. The company has made significant progress but also has new needs. Despite these necessary investments, we believe our cash position will carry us to the next level as we showcase the data we are discussing today, which we know is crucial for our investors. Moving forward, we'll assess the data and our financing needs, but we feel we're well-positioned as we present this data. It's an exciting time.

Okay. Thank you so much.

Well, thanks for the questions, Miles.

Thank you. We have no further questions. So I would like to hand back to Mr. Mark Rothera for any closing comments.

Thank you, Operator. Well, I hope you’ve heard that 2020 really set the stage for 2021, which I believe is going to be a breakout year for Silence as we look to position ourselves as a leading global RNAi business. After 20 years of developing our science in the field of RNAi, we’ve entered 2021 as a clinical-stage company and we have three Phase 1 data readouts this year. So it’s a very important moment, as we’re looking to demonstrate the potential of and maximize the opportunity of our proprietary GOLD Platform through advancing both our wholly-owned and our partner programs. Thank you for joining our earnings call and I’m looking forward to updating you over the coming months. Thank you very much.

Thank you. Ladies and gentlemen, that does conclude your call for today. Thank you all for participating and you may now disconnect. Speakers, please standby.