Fusion Antibodies (LSE:FAB) — Interim results presentation

0:01 Good morning, ladies and gentlemen. Welcome to the FUSION ANTIBODIES PLC Interim Results Investor Presentation. Throughout this presentation, investors will be in listen only mode. Questions are encouraged and could be submitted anytime by the Q and A tab situated on the right hand corner of your screen. Simply click Q and A, scroll to the bottom, type your question and press send. The company may not be in a position to answer every question received during the meeting itself. However, the company review all questions submitted today and publish responses where it's appropriate to do so. These will be available via your investment company dashboard, and you'll be notified once they're ready for your review. I'd also like

0:32 to remind you that this presentation is being recorded. Before we begin, we'd like to submit the following poll. I'd like to hand you over to James Fare, CFO and Richard Jones, CEO of FUSION ANTIBODIES PLC. Good morning. Excellent. Thank you very much for that, Paul. Good morning and good afternoon, depending on where you are in the world, and a very warm welcome to you all. Exactly as presented, so I am Richard Jones, the CEO of FUSION ANTIBODIES PLC, and I'd like to thank you for joining us for our interim first half year results for the six month period. You should have already have access to our press release that was issued earlier in the week and also the accompanying slides, which will be accessible by going to the investors page of our website. We have actually turned off our video cameras as well just to enable you to fully see the slides. Next slide, please. So before we begin, please refer to slide two of our presentation for a disclaimer statement. I don't intend to go through all of that other than it's something that, obviously, hopefully, everybody's already seen before.

1:28 For today's call, as outlined in slide three, I'll provide some introductory remarks and highlights overview. James Fair, our CFO, will also review the financial performance, after which I'll provide an update on our r and d platforms and pipelines. I'll then provide some summary remarks before we move on to the q and a portion of the call as well. Before I report on the interim performance, moving on to the next slide, I would like to take the opportunity just to provide a short recap of what is FUSION, FUSION ANTIBODIES, what do we do, what are we about. So we were established in 2001. We are a contract research organization, a CRO organization. So not a biotech or a pharma company, but a contract research organization service provider based in Northern Ireland in The UK.

2:14 We do provide a comprehensive range of antibody discovery, engineering, and supply services through from cell line development, etcetera, and also have guided hundreds of projects through critical preclinical stages on behalf of our clients. Our scientists who are experts in early stage discovery biologics are dedicated to the discovery and early development of antibodies to help bring about a positive change in the health care industry. And through our breadth and depth of experience, we have developed a number of our own proprietary platforms for antibody humanization, CDRX, affinity maturation, which is ramp, and also developability optimization as well. Our world class humanization and antibody optimization platforms harness the power of the natural somatic hypermutation space, and we work with a range of pharma biotech companies as well as research institute and also world renowned hospitals.

3:12 If I move on to the next slide, our mission is essentially to enable enable, facilitate pharma and biotech companies to identify, successfully develop, and commercialize antibodies more cost effectively, quicker with a high probability of success, and also with a view to generating a more competitive profile. And this really is enabled by the talented team of FUSION scientists who are dedicated and passionate about what they do, dedicated about and passionate about antibody design, development, adopting a fully integrated approach, and drawing on our extensive knowledge and expertise and wide range of services as well. That's effectively a short summary snapshot of what FUSION is, what we're about, and what we do.

3:58 Moving on to the next slide. So moving on to the interim results for the six month period ended the 09/30/2021. We are very pleased to report that strong progress was made on multiple fronts. In the period, we saw all round performance driven by commercial performance and execution despite the challenges that we all face with the ongoing global pandemic. During the six month period, we were pleased to announce that we had entered into two major collaborations, one with a global CRO partner company and the other with a major new US based company as well. I'll provide a little bit more color on that in a short while. Both these recent collaborations are absolutely in line with the strategic direction, which I outlined shortly, having after joined FUSION as well. So one of the things I put forward was that we were looking to enter into these types of collaborations, agreements that we'll continue to build on for the future as well.

4:55 Also, in the period, we successfully secured a success milestone arising from one of our previous projects. So that was a humanized antibody project, which was conducted in 2018. So whilst the QUANTO was not a huge amount, obviously, was a £150,000 sterling, this was the first FUSION, was a key landmark, and obviously, and hopefully, will be a sign of others to come in the future as well. We saw continued commercial traction of our existing services as well as increasing interest and uptake of our new ramp service as well as further growth in our key geographical markets, and in particular, in North America and Europe and also Asia Pacific as well. Alongside our strong commercial performance, we continue to invest into our r and d programs, platforms, pipeline and have maintained a strong cash position as well.

5:47 I move on to the next slide, I will now provide a high level overview of the key highlights for the six months, starting first with the financials. So as mentioned earlier, we're pleased to report that despite the continued headwinds from the from the COVID pandemic, we were able to successfully deliver revenues of £2,400,000 sterling, which included the previously stated one off milestone. This represent if you take out the milestone payment, it represents 20% underlying growth in revenues compared to the see the same period in the previous year, which is a very strong performance. For the period, we had a loss of naught 600,000, which was slightly higher than the same period in the last financial year, which was driven primarily by the investment into r and d.

6:34 And as mentioned previously, our cash position continues to remain strong with a period end of £2,000,000 sterling as well. Turning over to the operational highlights, we were very pleased to have announced back in early October for works that we actually initiated in August that we've actually signed a collaboration research and development agreement with a US based biotechnology company. Now for commercial sensitivity, at this point in time, we're not in a position to disclose who the company is or who the investors are other than to say they're they're sizable investors. And, hopefully, in the coming next year, we'll be in a position to be able to disclose once they come out to what we call deep stealth mode. So they've recently incorporated to focus on early stage antibody discovery and development programs.

7:21 And in the scope of the agreement, FUSION will receive a minimum of £1,830,000, US dollars in fees. So I state that word explicitly minimum. There is scope for additional fees, so that is truly a minimum amount, and it would be apportioned over a two year period of time as well.

7:42 Also, and again, in line with our strategic direction, the agreement is based on fixed deliverables and downstream milestone payments along with royalty payments should a product be successfully developed, registered, and commercialized. And it could be product or products as well because of the nature of the project that we're working with them. This contract win of this nature and order of magnitude is is very significant for FUSION, and we are pleased and indeed delighted that the project will take place using our Ramp platform alongside our other services as well, highlighting, in particular, for Ramp that this technology continues to gain traction in the marketplace. Moving on in addition, we also announced back in August that we had entered into a commercial collaboration with Eurofins discovery, and I use that word explicitly. It's a commercial collaboration. It's actually a joint marketing collaboration with Eurofin. So Eurofin's discovery is actually part of Eurofin's scientific group of companies, which is a significant size global CRO provider.

8:49 I've worked with Eurofins, in fact, when I was on the client side for many projects myself, so I can testify firsthand to the expertise and the level of service that they do provide. Just as a bit of a backdrop, so Eurofins has a long standing track record. They've been in existence since 1987. They have extensive capabilities. They have 800 laboratories based in 47 countries around the world, 55,000 plus employees, a revenue, on an annual basis of close to €5,000,000,000, and a market cap worth of and it's just slightly above €20,000,000,000 as well. What they were looking to do was effectively launch a new biotherapeutics drug discovery service, and they were looking for a service provider who could actually complement what they were looking to put in place as well.

9:40 They have a global client base. And through this global and through this collaboration, they're able to extend this is Eurofins, are able to extend their therapeutics by discovery, drug service business by providing FUSION's comprehensive antibody development service to their clients. So the value to us is that we're effectively able to access their global client base. Also, they are on providers listings or or preferred suppliers listing for some of the bigger pharma companies, which enables also for us to get access to them. And we are able to do the projects, cost of projects as we would normally do as well. But it is a commercial collaboration. It's not beyond that one. And in terms of the quanta, we've put it forward as not being material because at this point in time, we can't identify exactly what the revenues are going to look like other than we anticipate, hopefully, that this will continue to build in terms of traction and client referrals, which we've already started to see come through from the collaboration.

10:45 So we believe that both of these collaborations really do demonstrate that FUSION is seen as having a sector leading technology and skills. And, obviously, we'll be looking and hoping to continue to build on these. Also in the period, continued progress was made on the r and d programs, which I'll provide a bit more narrative later on, which will be a key future growth drivers as well for FUSION. Let me hand you over now to James to talk through the interim financials. So, James, over to you. Yes. Good good morning or good afternoon. It's it's morning here, so I'll start with good morning where I am. Yes. I'm Jim Sperr. I'm the CFO of FUSION ANTIBODIES. Thank you, Richard. And I'll take you through a little bit more detail then on the, finance side.

11:34 As Richard's already said, revenue growth to 2,400,000 from 1,900,000 in the comparable period last year. That includes the 150,000 milestone, and taking that out as an underlying growth of 20% rather than the 28% if work on the raw figures. And that's been achieved while maintaining the margin, and I think that's a key thing. That has not been achieved through any sort of discounting or undercutting. We're maintaining our margin, and that's particularly important in a time whenever costs are rising and suppliers are finding their own challenges. So we're able to pass through our costs and continue to get good pricing and good value for for our key services.

12:23 EBITDA is the other figure shown there, and you can see it's a little bit more negative than this time last year. If you refer to the full

12:33 interim announcement that came out on Monday morning, you'll see that at the very, very last note in that, the very bottom of that document, we have highlighted the impact that the r and d expenditure has on EBITDA. So what we do have is we have a commercial operation, which is making a contribution, and it is our strategy to reinvest the positive contribution that commercial aspect of the company made. First and foremost, in terms of driving growth in sales, marketing, adding capacity and capability within that trading division, and then also into research and development. And to that, we add funds that we raised, capital that we have raised to drive forward our r and d programs.

13:19 So in the previous year and half year, the comparative periods, it was slightly positive once you adjust out for r and d, a little bit above breakeven and an improvement on that in the six months. 424,000 to add back onto that from r and d expenditure. And, of course, that's a planned strategy that's controlled and forethought out activity. We we don't plan to make a profit this year, and we don't plan to make a profit next year as we continue with that program of expansion and research and development. On into the balance sheet, and we have I think the key figure here is the cash figure of just about 2,000,000. That's exactly where we plan to be. So that, again, 700,000 expenditure in the six month period, exactly where we thought we'd be, and no immediate needs for cash.

14:26 We see that that £2,000,000 balance will see us through discontinued fees of the company's activities. So no concerns there. Also, notably, a couple of lines above cash is inventories. That's inventories of laboratory consumables, and that has grown significantly over the last year, and we've continued to do that basically to take the risk out of our supply chain or or to mitigate the risks that are in our supply chain. We've all seen on the news the ships stacked up at Folkston. We've heard about the shortage of HGV drivers, and we've also heard how COVID has has created shutdowns around the world to companies manufacturing supplies.

15:19 So we have not had to shut down our facility. We have had very good measures in place to keep the the facility open and everyone healthy and working in a safe and secure environment. And what we have done is we have increased our lab consumables so that we don't have interruptions from our supply, and we can continue to deliver to our customers on on time and on schedule. And that has been our policy the whole way through. Both Brexit and the subsequent pandemic, and has worked very successfully for us. I will make a passing reference to receivables and payables. Because of the way the accounting standards work, our other payables and other receivables as opposed to our trade payables and trade receivables, trade creditors and trade debtors and old money

16:17 is calculated, and so those the other debtors and other debt creditors fluctuate. We continue to receive and collect our cash in good time, and we also are a very timely payer of our suppliers. So there's no concerns there in terms of of the increases there. That's merely accounting accounting adjustments. So I'll move on then just to the cash just to reiterate where we were. 700,000, which was where we had planned to to use in the period. A 190,000 of that is in in equipment, and we're constantly because we're at the cutting edge and because we're growing, we need to constantly add to our equipment and streamline our processes by adding

17:07 carefully selected pieces of equipment that will streamline those processes, increase throughput and capacity. And so in operations then, 505,000 of cash sucked up in operations, some of that in working capital, as we said, we're holding more consumable stock, and some of that in true net expenditure. So 700,000 now and 200,000. And we would expect the figure to to be similar for the second six months. So so we expect them to come down another 700,000 in the next six months. And, as I say, we believe that the current balance is sufficient to take us through our current strategy to profitability or cash generation.

17:56 Okay. I'll hand back then to you, Richard. Thank you for that. Thank you, James. So, move on to the r and d platforms and pipelines. So if we go on to the next slide, focus in particular on Library, which is our lead program. So Library, as a development program, is proceeding in line with our plans, which includes the COVID nineteen antibody discovery arm and also the immuno oncology arms as well. The COVID nineteen antigens have been designed, expressed, and validated with an omicron or omicron, depending which way you want to pronounce it, variant recently been added to the multiple variants. So that includes alpha, beta, gamma, and delta already used to pan the library for specific antibody producing cells. So it's a mechanism whereby we can ensure the validation of the library program.

18:47 So on that note, we are pleased to report that several preliminary libraries have been created with work continuing on optimizing the the genetic content. The development of screening protocols is progressing with the current challenge being the structure modification and quality of the target antigen at the required sensitivity, which is obviously just part and parcel of doing discovery programs. Antigen design and structure is is key to unlocking the library potential with in house engineering expertise being used to optimize this part of the process.

19:19 So looking forward, it is intended that once introduced, Library will complement and be offered alongside FUSION's existing discovery services and provide our clients with a method of speeding up their own drug discovery programs as well. So moving on, I'll close with considerations of our strategic areas of focus, if I can have the next slide after this. Thank you. Which is continue to execute on our strategy for continued growth. We will continue the momentum that we've already shown on the strong commercial performance and execution building on the growth that we've seen to date. As part of our focus, as mentioned previously, focusing on commercial execution, we also will continue to seek new commercial partnerships, distributor relationships, commercial alliances, for example, like the Eurofins one, in order to expand both our reach and client base with a view to generating additional revenues.

20:16 Building on the recent contract wins, so in addition to the current fee for service revenue model, we will look to enter into further collaboration agreement structures where possible in order to share in the downstream's commercial successes and unlock the intrinsic value that our service platform provide to clients. The recent landmark event that we had on the milestone payment, that's something we'd look to continue to build moving forward into the future. There are none on the immediate time horizon, but, obviously, the more of these collaboration agreements we're able to put in place, then effectively, the more we build out that book in terms of accessing the downstream value of what we provide to our clients. And finally, we'll continue to progress the r and d pipeline of new service offerings and prepare for the successful launch of Optimal. I like to call it the optimal launch of Optimal, the mammalian antibody library as a new discovery service.

21:09 Many thanks for your attention. And with that, Paul, hand back to yourself when we're ready for the q and a section. That's wonderful. Richard James, thanks indeed for the presentation. Ladies and gentlemen, please do continue to submit your questions using the q and a tab situated in the right hand corner of your screen. Just while the team take a few moments to review those investor questions to Mr. Ridley, I'd like to remind you the recording of the presentation, along with a copy of the slides and the published Q and A, can be accessed via your Investor Lead Company dashboard. We also like to remind you that your feedback is important to the company. And immediately after the presentation has ended, you'll be redirected for the opportunity to provide your feedback in order the company can better understand your views and expectations. Richard James, we did have a number of presubmitted questions. Perhaps I just may start with these. The first one reads as follows. Why are there no directors buying any additional shares of fusion antibodies?

21:57 Yeah. I'll hand over to James to answer that one. Yeah. So I'll that one. We we have addressed this before in the there is a material holding of, shares among board members, but it's not appropriate for shareholders to ask directors to buy shares merely to inflate the share price and create a false market. And our interests are aligned with with, all our shareholders, and, our success will will also be your success. That's fantastic. Thank you very much indeed. The second question we have here is, what is the new total number of antibodies that have been created? We were last told 200. What's the latest number, and why don't we get any updates?

22:48 Yeah. Thank you for that. I I could take that one. So we we're pleased to report that as of December 2020, so, almost last year now, I guess it would be. So we had 220 successful humanization antibodies that were delivered, and this is key, they were delivered as a service to clients. So these are not FUSION's antibodies. These are antibody projects that we've worked on and delivered on behalf of our clients. The number now is probably more than that. So that was 220 as we reported back in December twin 2020. I think we're probably getting close to 240 or 250 at this point in time. In terms of the update, so normally, we would provide that as part of our annual report update. So that's the reason why why do we get any updates. It is, but, obviously, it's associated with when we are actually disclosing or reporting on our on our results.

23:47 Next question. That's fantastic. Thank you. The next question reads as follow. What is the plan to create significant shareholder value we've been told about? How are investors supposed to understand if you don't promote this and expand and explain the long term plan? Yeah. So I can I can take that one? So it's really more around continuing to deliver on what we're currently doing at the moment, driving the organic growth, driving the commercial performance, commercial execution, increasing the growth that we have in terms of top line revenue, moving to profitability, optimizing our margins, entering into these types of strategic collaborations, looking at sort of the other geographies as well. So in terms of significant shareholder value, that's essentially part of what what is that.

24:34 You know, executing on the plan, turning the investment into r and d into a revenue generating opportunity for the future as well. And, the one of the the things that attracted me as a CEO early in the year was that, effectively, how do we unlock the intrinsic potential of what FUSION is about, and how do we ensure that we can continue to deliver on the behalf of the clients so that their success then becomes our success as well. So that that's effectively the way we generate shareholder value. It's really more just building on the strong foundations, execution, making sure that we drive the r and d platforms and pipelines so that we launch new service offerings.

25:20 We still maintain what I like to call our pioneering status in the antibody ecosystem in terms of service provisions and also making sure that we, you know, we we we've managed from a financial point of view and make the money work for us as hard as possible. So thank you for that question. Next question, Paul. What do you think is currently a fair value for the business? Do you believe it's currently undervalued? And if so, what are you doing about this? James, I'll I'll hand that over to yourself. Yeah. Well, it's not really for us to comment on on, the valuation of the business. The the business' value value is set by the market and and the trade in the market. It is worth pointing out that analyst note this week has just come out and said that currently, we're valued at approximately six times revenues, and that they thought that was fair.

26:16 Obviously, that's not for us. In terms of what we're doing about it, we are sticking to our knitting. We we have delivered 20% underlying growth against the comparative period last year. We're continuing to invest, increase capability and capacity, and we're we're investing in r and d for future platforms and future revenue streams. And that that is where we see the as the value drivers for the future. Thank you, James. Next question we have here is do you anticipate going to the market to raise additional funds at the current cash balance? Is it expected to cover operational expenses for the next twelve months? Well, I'll take that one again. I know where the figure of twelve months comes from. As I said, when we were going through the presentation, we believe we have adequate cash, sufficient cash to see us through this phase of the company's development, and we don't foresee either running out of cash or having to seek more cash, on our current plans.

27:23 The cash burn in recent years has been a strategic investment primarily of the funds raised from shares issued in 2017 and 2020, but also a reinvestment of the positive contribution made from commercial drilling. And this has been invested in R and D and in revenue and capacity growth. We've already seen the introduction of Ramp as a result of that investment in R and D, and we're continuing to invest in OPTIMA, and that's continuing as planned. Fantastic. The final pre submitted question we have here is whatever happened to the antibody being developed for Modela As I believe, they went bust. So did FUSION carry on and make the antibody? Is that something we'll be able to bring to a deal with someone?

28:11 Yeah. Thank you for that question. So I can tell you that. I think, I think there's probably a it's probably a mix up in terms of names. So Modelo was actually launched back in 2007 with an investment from FUSION IP, different companies. So that was formerly by FUSION PLC. So there are other FUSIONs. There's even a company, FUSION FARMA, and there's a there's a whole range of them. So I think there was probably a mix up in terms of FUSION. We it had nothing to do with us, in short. So we were not associated with it. It was a completely different company. Medela was actually a spinner from the University of Sheffield focusing on cancer therapeutics at that time, but there was no no involvement of fusion antibodies as part of that project. So that's the reason why I think there's probably a bit of confusion around fusion.

29:01 It's FUSION IP, but not FUSION ANTIBODIES PLC. That's great. Thank you. That concludes the pre submitted questions. We've had a number of questions submitted during the event today as well. So if I may, Richard James, just ask you to click on that q and a tab and perhaps start at the top where appropriate to do so. Just read out the question and give you a response. Yeah. Thank you for that. So there's I'll probably do them in in order that I can see there. So there's the first one from Ryan. Thank you for the question. Are there any material royalties likely within the next twelve months, or are they 2023 and beyond? So, thank you for that question. So as highlighted earlier, yes, we received the 150,000 first milestone ever for FUSION. We don't see any intermediate time horizon, so it would be beyond 2023 and beyond that one.

29:46 What we have, published recently is that we currently have five contracts on our books with an aggregate value of £1,400,000 sterling. And again, this is assuming that all things will materialize. The thing with royalties, milestones, deliverables, there's always an element of risk. There's no guarantees. It's not a 100% certain. And what we would look to do is, as outlined earlier, as part of our strategic direction, is where possible. And it depends on the service type that we're offering and the nature of the project. But where possible, we would like to be able to continue to build that out. So so, yes, we booked the first one. We don't anticipate to getting any additional ones in the next twelve months plus. And, obviously, we'll look to continue to build that out as much as possible. So thank you for that question.

30:33 The next one from Paul Warwick, I believe. When will Optima be proven for launch? That's a very good question. So as mentioned earlier, obviously, we'll continue to do the development work that's actually required. We will do our internal internal validation validation tests as well in terms of the when we'll be able to position to launch. So we've already actually started planning for the optimal launch of Optimal, so a successful launch planning. And we will be anticipating generating first revenues, within the calendar year of 2022. As we mentioned previously, I mean, I personally see library as a key growth driver for the business for the future. And, also, it will enable us to access or access a addressable market with a value that is continuing to grow, in excess of $2,000,000,000 in terms of total value through customer products and also licensing activities as well.

31:31 But thank you for that question. I'll move on to the next question, which is from Robin. So is the large contract that was recently won with the USDC backed firm likely to be more profitable to FUSION than the more typical smaller ones? Do you intend to focus in future, on securing large individual contracts? Are there any internal constraints in your ability to take on new work? So, great question. The contract that we won is in terms of profitability. It's a good question. So the profitability side of things, I mean, we have, as as James highlighted earlier, the margin targets that we're currently working to. I think what it does do is it enables us to have more, what I call, security in terms of the revenue flow. So rather than having lots of small projects coming through, which you turn around, but then you've gotta bring another one, turn that around, bring another one.

32:28 If we have the more sizable projects, especially where there's a minimum quanta, so the minimum quanta here was 1,830,000 US dollars with potential for additional works as well over a two year period of time. If we have two, three, four, five of of equivalents of those, then, obviously, that gives us, a more sort of guarantees in terms of the revenue flow that's coming through our books. So in terms of the focus for the future, obviously, as where possible, we would like to be able to secure more of those types of deals, but still in, you know, in concert with the current works that we're currently doing, the type of projects that we're doing for some of our key customers, key accounts, key clients. And it varies in terms of the nature of the projects as well. So, yes, we would like to be able to win more of those, but not exclusively.

33:16 That is in combination with what we're currently doing. In terms of internal constraints to take on new work, so that's something we always keep a close eye on in terms of operational efficiencies, making sure that we have the operational capacity to not only take on the work, but also obviously to make sure that we're actually able to deliver in accordance with the client's needs, expectations, and timelines as well. The nature of these types of projects sometimes is more around the intellectual capital that we have at our disposal. So the translation of that is the expertise of our scientists as well, especially when you're looking at early discovery, antigen design, engineering, discoverability, all of those components that we are one of the leaders in the industry in as well. But thank you, thank you, Robin. That was a really great question.

34:09 The next one, for Paul, do you plan to build your own antibody? So I I think on that one, I think this is where probably there may be a little bit of, confusion in terms of the difference between a CRO and a biotech company. So and I could talk to those because I've been on both sides of the fence as it were. So the pharma biotech companies, effectively, what you then do is you do early stage drug discovery normally with, either IP that's been spun out to university or something that's been discovered in your own research laboratories or as we had in a previous company, worked in a discovery performance unit, things of that nature. A service provider like FUSION, a contract research organization, what we do is we actually enable and work for the pharma, the biotech company working on their antibodies.

35:04 So what will happen is they will give us a project where either we are identifying the the right type of antibody design, or we are taking one of their antibodies and humanizing it, or the supply mean, there's a whole range of things that we provide in terms of services. But this is with the lens of we enable the pharma or biotech companies. We don't own those assets. What we do, they own the assets, but we either work on those assets on their behalf or improve their affinity binding or the optimization or the humanization. And if we get project if there are projects that we're working on where there could be an opportunity for us to generate something that we we own, then obviously, we would look to try and and capitalize on that in in the way that we would normally do. But just for clarity, we're not a biotech company. We don't do our own in house early stage drug discovery.

36:02 That's a that's a very different thing. We're a service provider, and we provide those services to our clients. So hopefully that helps to clarify that. Next one, the, I think it's a bit more of the same, to be honest. So any other questions that are coming through? I think you've pretty much covered off all those that you can that we've got so far. And, of course, every question that comes through, the company will be in the business to review those. We publish responses where appropriate to do so. And, again, any further questions that come through, the team can can take a look at. On that basis, Richard, perhaps I could just ask you for a for a closing snapshot before we redirect the attendees to give you some feedback. Yeah. Thank you for that. And, again, thank you everybody for your time and attention. As mentioned earlier, I'm very pleased with the performance that we've been able to deliver in certainly my tenure as a CEO with FUSION. So the performance on the first six months results have been very promising, very strong performance. As mentioned previously, we are making strong progress on multiple fronts, both from commercial execution, bringing in those two or entering into those two collaboration, one which was a sizable contract win for the company.

37:16 The other one was a collaboration with a sizable CRO provider or or service provider. We got a strong cash position. The financials are going in absolutely in the right direction as well. And we continue to build the business, and, also, we continue to progress our r and d programs as well with the lens for thinking about the future. So I think on all of those sides, certainly from my my seat as a CEO and as an executive management team, I think we're very pleased with how we're progressing. And, again, just to say thank you to all of the shareholders for your continued interest and also investment into FUSION, and we'll hope to continue to build on this and be able to have the same positive reporting when we next come around to the the next results as well.

38:02 Richard James, thanks indeed for updating investors today. Could I please ask investors not to close the sessions? We're automatically redirected for the opportunity to provide your feedback in order the management team can better understand your views and expectations. This will only take a few moments to complete and is greatly valued by the company. On behalf of the management team of FUSION ANTIBODIES PLC, we'd like to thank you for attending today's presentation. That now concludes today's session. Thank you, and good morning to you all. Thank you for that. Thank you.