Physiomics (LSE:PYC) — Interim results for the six-month period ended 31 December 2020

0:02 Good morning, ladies and gentlemen, and welcome to the PHYSIOMICS PLC interim results presentation for the six months period ended 12/31/2020. Throughout this presentation, investors will be in listen only mode. Questions are encouraged and could be submitted at any time via the q and a tab situated on the right hand corner of your screen. Simply type in your question and press send. The company may not be in a position to answer every question you 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

0:33 your investor meet company dashboard, and you'll be notified once they're ready for review. I'd also like to remind you that this presentation is being recorded. Before we begin, we'd like to submit the following poll. I'd now like to hand you over to Jim Millen, CEO of PHYSIOMICS PLC. Good morning. Good morning, Paul. Thank you for the introduction, and welcome to the PHYSIOMICS interim results presentation for the half year ended 12/31/2020. I shall just turn my camera off while I present the slides and turn it back on again at the end. So a brief disclaimer. I'm gonna cover just briefly some background about the company. There may be some new investors on board who are a little bit less familiar with what we do, and I will try and press through this presentation in in around half an hour to leave plenty of time to answer some of the questions that have come in prior to prior to this broadcast.

1:32 So PHYSIOMICS, you know, who are we? What are we? We're primarily a consultancy business operating, on a fee for service basis, with a particular specialism in cancer. So, you know, well over 90% of our engagements are in the field of cancer. And we have particular knowledge of of how to model mathematically mathematically model drug effects on computers, how to get data that's needed in order to do that, and how to apply, you know, AI and machine learning techniques, in order to maximize the insights that we can deliver to clients based on this work. The business is really split in two parts. So on the left hand side here, you have our core consulting business, which is all of the project based commercial business that that drives the revenue of the company.

2:27 And in the last three or four years, we've also taken a number of of grants which have been focused more on developing our own proprietary tools in the field of personalized oncology. And we'll talk a little bit more about that later on. But, obviously, that has led to some some notable results such as, you know, the award of an NIHR grant to fund a clinical study done in Portsmouth. That's the partner study. And just recently, before Christmas, the announcement of a collaboration with, with Tabula Rasa HealthCare, which is a major US company, which acquired an Australian company called DoseMeRx, which is also in the field of, of personalized oncology.

3:17 Just to remind everyone that that, you know, we have completed quite a large number of engagements, both both commercial and otherwise, with a variety of companies from from extremely small to extremely large. There are some examples in each of those categories here. I won't read them all out. As Paul mentioned, this presentation will be available after the meeting. I thought it would be just worth pointing out that, you know, that the people who work with us tend to enjoy working with us, and that's why they they they come back again and again. So both of these clients, CellCentric, and the slightly larger company, Bicycle Therapeutics, which is now public on Nasdaq since 2019. Both of these have been responsible for, you know, significant amounts of repeat business with our organization.

4:08 And those quotes, I believe, are also on the homepage of our website. But, you know, it's nice when clients say positive things about us. That word-of-mouth generates further business for us also. Coming on to, some of the highlights of the interim report. Most of this is taken from the interim reports that that that I'm sure you've all had a chance to peruse since it was released at the beginning of this month. So I won't probably hit on every single point here. Don't wanna bore you. However, it's just worth noting that our total income for the half was up around 13% on the equivalent prior period. And that, you know, as always and I think we have a graphic to illustrate this just presently.

4:58 You know, our our second half income for our financial year, you know, is always almost always significantly higher than our first half income. And I guess that's partly as a result of the fact that our first the first half of our financial year, you know, contains Christmas, New Year, and the traditional holiday periods of July and August. We had a small operating loss still at the end of this this period, but our cash position, you know, remains very strong. And we actually had a small positive cash inflow during the period. So, you know, we are not, you know, we're not hemorrhaging cash, at this point. And, you know, we're we're breakeven on a cash basis for that period, and, you know, just slightly, worse than breakeven, on a operating profit basis, of course.

5:56 In terms of, selected operational highlights, you know, as I mentioned already, Bicycle Therapeutics continues to be, an extremely strong client. We've actually now, completed or at least signed eight projects, which span, I believe, actually, all of this company's clinical assets. So, you know, it's a very close and productive relationship. We also announced our first project with the big pharma company Astellas, which we were very pleased about last July. We announced the approval of our of our partner study in Portsmouth, which I mentioned a few minutes ago, the partnership with Tabula Rasa HealthCare, further contracts with Merck.

6:42 And then just after the period end, beginning of January, we announced the extension of a of a legacy deal that we had with Valerex, you know, to, you know, to include further indications for for val two zero one, their their main clinical asset whose initial clinical results were were released last September to to some acclaim.

7:10 Here's the graphic that I mentioned earlier. This is just taken directly from our published results. You can see, as I mentioned, that that, you know, our second half is is always always bigger than our first half And that, you know, the first half just just announced is is bigger than the the the the comparable prior period. You can also see the clear trend towards, you know, towards profitability, although, obviously, we we haven't quite got there yet.

7:42 I thought it would just be worth saying a few words about marketing. I get a lot of questions on on the pipeline, what it is, what it looks like, what shape it is. Obviously, there's only a limited amount that we we we could and and should say in terms of the granularity of of my answer to that question. But I thought it might be interesting just to touch on, you know, some of the methodology that we use and and how that has, you know, how that has become a lot more sophisticated over the last twelve months or so. So we do a lot of, awareness raising exercises now, including a fairly extensive use of of Twitter and LinkedIn. In particular, you know, we we have a third party agent who supports us with Twitter, helping us to source relevant, relevant projects, sorry, relevant announcements, in the field of cancer and personalized medicine.

8:37 We also took some time to upgrade our our branding and our website a couple of years ago in order to, you know, improve the image of the company. We subscribe to a proprietary database of life science organizations whereby we can we can run very targeted searches for prospective clients based on their pipeline. So looking for companies that have oncology products at certain stages of development that are of interest to us. We then feed those searches, the results of those searches through to a marketing agency that we work with, which literally picks up the phone, to individuals within these companies and tries to secure new business meetings for us.

9:24 And they've been able to do that, you know, very effectively over the last twelve month period. I think there were some stats in our in in our interim suggesting that we, you know, we had 27 new business meetings with targeted companies over the course of, I believe, it was calendar 2020. In addition to that, of course, we still attend conferences. They're mainly held digitally, since the beginning of the COVID pandemic. But then, nevertheless, that that we we we still go to these conferences. We still present at them virtually. It's a good source of of contacts, and it's an opportunity for us to get our our thought capital out there into the marketplace. Pleasingly, we've also had an increase in the number of direct approaches made to us. So this is by referral from other clients, for example, or by people who simply, pick up our name on the Internet or on social media.

10:20 And I think that's a that's a nice reflection of the profile that we're beginning to generate. And then, you know, we follow-up we follow-up all of these leads in a in a very structured way using various customer relationship management systems in order to track contacts and in order to make sure that we follow-up appropriately. So I just wanted to say a few words about that to, give you some confidence that there's a there's a method, here, behind, behind our marketing efforts.

10:54 So a few more words on the core consulting business. You know, we continue to have a strong relationship with with our repeat clients, including CellCentric Bicycle and and our largest client, Merck KGAA. You know, we had 11 follow on agreements between all of our clients during calendar twenty twenty as well as, as I mentioned already, you know, a significant new big pharma client in Astellas Pharma.

11:25 Here's the stat that I mentioned on the previous slide. Investment in marketing has led to, you know, a substantial increase in the number of of substantive new business meetings that we've held. And this was with 27 different companies, I hasten to add. Not not 27 meetings with a a smaller number of companies. So these are, you know, twenty seven first meetings with with companies over the course of calendar 2020. And not just any company, companies that we have designated as target clients, of course. One such meeting did lead to the agreement with the status in in July of last year, and we have other proposals which are still outstanding from from the meetings that we've had already that we hope will generate new business over the course of this half.

12:13 I've mentioned already that we're getting a lot more approaches, a lot more passive approaches, not as a result of our direct outreach, but more because people hear about us or find out about us through their own research. You know, it does obviously take time to develop clients, and and, you know, I personally believe that, the result of the significant marketing effort we've made, over the last twelve months, will will lead to, you know, further business going forwards, at least some of which I believe will come this in this half.

12:52 Switching now to talk a little bit about personalized medicine. You know, the the track record, I think, is impressive. So, you know, these are extremely competitive grants, and we've won two Innovate UK and one NIHR grant in in a in a less than five year period, in fact. The NIHR grant is being targeted to pay for the partner study down in Portsmouth, which I'll come on to talk a little bit more about, during, the question session because there were a number of questions on that topic. Obviously, the agreement with Tabula Rasa HealthCare is is a fantastic, validation in our opinion of the work that we've done so far, and we're looking forward to progress, progress that relationship. And, again, you know, we have some questions on that topic, which I'll address in the q and a section.

13:43 We are aiming to have the initial work done with Tabula Rasa during the first half of this year. And and once that integration is complete, then, obviously, we will be soliciting some feedback from, Tabularas' clients, and then we will we will take the appropriate next steps thereafter. But that's the approximate timeline. It's not set in stone, but that is certainly what we're aiming for, at this point in time.

14:13 I guess the other thing to say about this relationship is that, of course, the whole regulatory environment around decision support software such as that which which our personalized medicine software represents, is complicated and working together closely hand in glove with a a large established commercial organization in the space, which is Tabula Rasa, we think is gonna be, you know, really, really helpful and and perhaps even critical, especially in The US where Tabula Rasa have got their main presence. Just to mention briefly then, the partner study, we have announced previously that this study, you know, has been delayed, for obvious reasons because of COVID. However, I will note that the part of the study was approved. It did receive HRA and ethics committee approval, and that was announced just before Christmas. So we are poised and ready to go. The the folks down in Portsmouth are ready to trigger this study as soon as they're permitted by national and and local regulations, which which govern govern these things.

15:19 I don't have a a a specific date, and and I don't want to to guess at it. But, obviously, we're hoping to get this study started as as early as possible during the course of this year. The study was designed to be run over an approximate nine month period with data coming towards the end of that period, and that data is intended to be used further develop and refine the personalized medicine tool, which which is the the topic of the study. So, my final slide, actually, before we move on to the questions of which we have quite a few, you know, just just in summary, really, you know, the investment proposition, you know, we're we're still have a laser like focus on on the core business, targeting increased increased growth in our consulting services, which rely substantially on our proprietary virtual tumor technology platform.

16:27 We think that's gonna come as a result of continued investment in marketing and sales. And then also, we are actively seeking to increase our our our business development capability by the the hire of a of a of a full time in house employee. We have to date, other than myself, also used consultants and agencies, and we plan to continue to do that. But we now feel that the business could benefit from from some additional dedicated capacity in this area. So that that's the plan. Also, you know, we're we're looking at how we can further leverage the relationship with Tabula Rasa HealthCare and and more generally expand our offering in the field of personalized medicine.

17:17 Part of that will come through, excuse me, commercial relationships such as that with Tabula Rasa

17:24 and partly through things that we're doing under our own steam, such as the partner trial in The UK. And then thirdly, just to note that we do see other opportunities for the use of our modeling and simulation capabilities in in in still the the health care setting, but in in related spaces. We are in the process of convening an advisory board, combination of internal and external experts in order to further explore this, and we will make further announcements on this subject as and when we can. So I think that concludes the the brief formal part of our presentation. And, Paul, I believe that we had a number of questions submitted prior to the meeting.

18:10 And if we address those first, then if we have time at the end, I will also try and address a number of questions that have been submitted over the course of, of my presentation. Thank you. Thank you very much, Jim, for the presentation. Ladies and gentlemen, do please continue to submit

18:25 your questions using the q and a tab situated in the right hand corner of your screen, but while just want Jim to take a few moments to look at those questions that have been submitted already, I'd like to remind you the recording of this presentation along with a copy of the slides and the published q and a can be accessed via your investor.me company dashboard. I'd 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 feedback in order that the company can better understand your views and expectations. So, Jim, let's just, touch on these questions we've had come through. The first one reads as follows. Please, can you outline the long term plans and ambitions for the company regarding the development of the personalized precision medicine arm of the business?

19:08 Thank you, Paul. So, yeah, you know, as I mentioned during my presentation, you know, we have two main foci in in personalized medicine at the moment. One is our relationship with Tabula Rasa in The US, and and the other one is execution of the partner study down in Portsmouth. These are our two main initiatives in this space at the moment. However, you know, we believe that there is substantial potential to expand the use of our tool beyond docetaxel in prostate cancer, which is its initial indication to look at, other drug and cancer types. We believe that the existing tool with very little modification, could certainly be used for for other purposes than than that which, which its initial use is is targeted at.

19:58 And, again, as and when we make concrete decisions on on expanding this, then then we will announce those to the market. That's great. Thank you. And next one we have here is the TRHC outcome. Is that expected after June 21 or before that? Yes. So I think I covered this in in my presentation, Paul, but all we can say at this point is that, you know, we're aiming to have the initial integration with with the DoseMeRx platform completed, you know, sometime in the first half of this calendar year, so, you know, by the end of our financial year.

20:36 And at that point, we will then hopefully go live and and seek feedback from from primarily US clinicians since that's where that platform is mainly located. And then, you know, obviously, take things from there, but the hope and expectation is that with positive feedback, that that becomes then a commercial undertaking thereafter. Thank you. The deal with Tabula and DoseMeRx could be potentially huge, especially getting into the North American market. Did that deal come via the direct marketing alluded to in the interims, did it come via work done for other companies?

21:15 So that deal actually came directly as a result of of senior management's direct outreach to to DoseMeRx. And in fact, I think we even started talking to them prior to their acquisition by Tabula Rasa. So DoseMeRx, you, you know, may remember, was acquired by Tabula Rasa only at the beginning of two thousand and nineteen for consideration of $10,000,000 upfront and $10,000,000 contingent. And we know that at that time, the DoseMeRx platform, according to their own press release, was already being used by over a thousand clinicians in over a 100 locations worldwide. And I think we'll provide those references in the in the written answers to the q and a.

22:02 But, you know, we we think it's it's a really interesting opportunity for us to get involved with something which is already well established, and to to to piggyback on that. And that did arise directly as a result

22:14 of of our proactive identification of that as an opportunity. Thanks, Jim. And DoseMeRx mainly use the Bayesian approach for dosing with antibiotics. Is this the first time they've used a cancer drug for use on their platform? So the DoseMeRx platform does already, have a number of cancer drugs on it, but we believe it's the first time that they have, considered using their platform to actually predict the timing of adverse events, which is the key novel feature of the software, which we which which we're developing here.

22:51 You know, I'm also looking at the comments that Tabula Rasa HealthCare made in their press release just before Christmas, and which I think we mirrored in our own press release. You know, their CSO noted that the collaboration aims to enable clinicians to more effectively predict the timing of serious adverse events. And they also said that they were excited to expand into oncology, and and that's their own words. Thank you. Next one we have here is, can you update us on the progression of the trial of the prostate dosing tool validation that is due to be going ahead in Portsmouth at PTTU. The trial was meant to start last year, but due to COVID, the trial was delayed. Is there a time frame for when this trial at PTTU is meant to start?

23:38 Yeah. Thanks, Paul. So so, again, I think I partially covered this, you know, during my presentation. The partner study has been approved, and and that really is is is the hardest part. So a lot of work has to go into develop developing a protocol, getting patient feedback. And as as I'm sure many of our investors appreciate, it's quite a time consuming and complex, task to get a clinical trial approved. That has been done. So as soon as the environment is is suitable for, clinical trials being restarted in The UK, then we are we are ready to go and and should be able to start the trial at at at very short notice. I can't comment on exactly when that's gonna be, but, obviously, as as I mentioned earlier, we would like it to be, and we are aiming for it to be as early as possible, during this calendar year.

24:32 The other thing I think it's just worth noting is that, the funder of this trial, that the grant giving body, at the NIHR, is being very flexible as to, obviously, the rescheduling of of, of this project. So we don't anticipate any issues with regards to the changing of the timelines of this project. It shouldn't have any impact, positive or negative, on the on the funding of the initiative, or of the relationship that we have with NIH on. Great. Thank you. Do you anticipate publishing preliminary data from the NIHR precision oncology trial? And if so, how many months into the trial will this data be published?

25:16 Yeah. So the NIHR award was originally for a twelve month project starting in April, last year. Obviously, although we've done the background work to get the study approved, the main part of that twelve month period was earmarked for the actual execution of the trial, including the collective clinical data, which we would then process subsequently. So all of that still has to happen, and we wouldn't anticipate making any announcements about the results of that trial until it's been completed. However, you know, we have we we absolutely intend to publicize the results of that trial if we possibly can, and we have also made that undertaking to Portsmouth and to the to the grant giving body. So it's it's fully our intention to, you know, to make the most that we possibly can out of data coming out of that trial.

26:11 That's great. Thank you. And since the Astellas deal is finished, has there been feedback from them regarding the work done for them? Yeah. Obviously, we we don't generally, you know, comment in detail about client feedback, but I can confirm that the project was finished very successfully. I think both from our perspective and from Astellas' perspective, you know, we we remain in touch with Astellas. And as and when there are, you know, further announcements to be made, then we will we will we will notify the market as appropriate.

26:43 Thank you, Jim. Could PHYSIOMICS technology be used in other fields of medicine apart from just oncology? Yeah. And I I can see that a similar question came in on the live q and a over the course of, of the last twenty minutes, in relation to, you know, the use of our technology in antivirals and and possibly even in in in developing vaccines, I think, is the specific question.

27:13 So, you know, primarily, we're an oncology company. You know, most of our expertise is in the field of oncology. The science of quantitative pharmacology has broader application in other therapy areas, individuals, you know, both employees and consultants within the company do have experience in other therapy areas. From time to time, we are asked to do small pieces of work in other therapy areas. And, obviously, you know, if there's money attached to that work, then we we don't generally turn it down. But at this point in time, we envisage the majority of our work, you know, will continue to be in the field of oncology. We are looking at related fields, and I think one of the questions that will probably put to our advisory board that I mentioned we're convening earlier would be, you know, are there related areas that we could consider branching out into? And that could be cancer vaccines to to the question that came in from GB, over the course of my discussion.

28:11 It could be in the field of immunology, which is closely related to,

28:16 you know, immuno oncology, an area that we have a lot of experience in, and so on and so forth. So I think if we did expand beyond oncology, it would be it would be incrementally, and it would be, you know, targeting related areas first. And and that's something that, you know, we are actively thinking about. And, you know, as and when that we've made a a definitive decision, we'll we'll make a further announcement to the market on that. Thank you, Jim. In the interims, there's another small loss. Does the board see slash hope for breakeven or maybe a small profit in the next set of results?

28:54 Yes. Obviously, I'm I'm not gonna make any forward looking statements at this point, but I'll just make the general point that, you know, we are focused on delivering long term value to shareholders. You know? And, clearly, our ultimate goal is to become a sustainably profitable company, of course. But we're not going to, you know, shoot ourselves in the feet in order to do that. So, you know, if we see an interesting investment opportunity, be that in personalized medicine, be that in a in a a value sharing deal like the one that we announced with Valorix in January, you know, we're we're not going to sacrifice that in order to, you know, get a few extra tens of thousands of pounds of of profit to to to get us over some sort of some sort of line.

29:40 So, you know, our focus is on generating, you know, medium and long term value for shareholders, and and we will certainly continue and that will certainly continue to be the case going forwards.

29:53 Thank you. The use of AI is increasing in within the industry. What makes your use of AI different to others in the same field? Yeah. And so AI is a term which is thrown around very freely by people and and used very loosely. I would actually say that, you know, some of the machine learning techniques that are at the core of what PHYSIOMICS does are techniques that we have been using for over a decade, you know, long before AI became a trendy term.

30:20 So, you know, why is ours different? What I would say is that it it's really a combination of the use of the technology and the experience of the people, in developing, cancer drugs with which which makes us unique. So there's a lot of companies out there that that can use clever software to crunch numbers, but I don't believe that those companies can give clients the insight that we can into how to interpret that the outputs of that exercise and translate that into, you know, concrete decisions about how they should move their drug pipelines forwards. Thank you. I think you've touched on this slightly, but, you've mentioned 27 new company meetings undertaken in 2020. Can you give some granularity on the nature of that potential pipeline, and how many of those are likely to convert based on the historical pipeline conversion ratio?

31:13 Yeah. So I I think I did pretty much cover this, Paul, in in my in my presentation earlier. And, you know, we're not gonna provide, you know, regular granular updates on our pipeline, but I do get a lot of questions about it. You know, when I first joined the company, you know, four or more years ago, clearly, our pipeline was was much slimmer than it is today. You know, I and my colleagues have worked really hard to to build it up to where it is today. And I guess we feel sufficiently confident in where it's at now and and where we see it going that I wanted, I think, for the first time to give you some more insight into, you know, how it's been generated and and what it's doing for us. And I will just repeat the, you know, 27 new meetings. Some people may think that's a lot. Some people may think that's not a lot. But for us, that's really material. And and these are meetings with companies who we honestly believe we could help, who have assets at the right stage of

32:12 development for us to be able to provide meaningful input to, and where we have managed to secure meetings with senior people from their organization. So as I say, you know, a number of those, those meetings have led to us submitting proposals. At least one, the Astellas meeting led to a substantial project. Other proposals are outstanding, and we hope and expect that there'll be further new business generated as a result of, of the work that we've done in, in the sales and marketing field. Thanks. Next question relates to the, Valorix deal. The deal with Valorix seems very significant as a possible template for future risk sharing contracts in the biotech space. It also acts maybe as a marketing tool.

32:59 I we're so confident in our ability to help our clients. We're prepared to take more of our compensation and contingent risk upside. Of the 27 requested proposals, could you give some idea of what percentage of them include upside risk sharing components, or were they all fee for service?

33:16 Yes. I I think I've said this on previous occasions. You know, the the majority of the discussions that we have with clients are about fee for service arrangements. And, obviously, you know, we will continue to look at these on a case by case basis. And from time to time, as with ValorX, we will see that there's a an opportunity to for a significant upside for PHYSIOMICS, you know, but at the cost of a of a of a appropriate amount of effort on our part. You know, we are a small company. We have to pay our bills, so we're gonna continue to need the majority of our engagements to be paying cash, but we will continue to look for upside opportunities such as ValorX on an opportunistic basis.

34:06 So that that's that would be my response to that question. I think there there were some other questions in the q and a

34:13 feed on the ValorX project. I can't really say anything more about it at the moment. Clearly, you know, we only just started again with ValorX at the beginning of beginning of this year, but we will make further announcements as soon as as soon as we're able and, obviously, with the agreement of ValorX. Thank you, Jim. The last view we've got coming through here is, could you please elaborate in which are the new areas of new assets are being built?

34:41 This is in reference to the interim report. In addition to the areas noted above, the company is actively considering how it could use its extensive capabilities in modeling, simulation, data analysis, and AI techniques to develop further innovative assets in collaboration with other partners. Yeah. Thanks, Paul. So, again, I'm gonna be a little bit limited in what I can say at the moment. What I can say is that we have a number of of fairly concrete ideas about how we could evolve our business from a pure consulting model to a model where we have some sort of revenue generating asset. One obvious example of that is what we've done in the personalized medicine space.

35:25 You know, we are looking at a a software asset there, one that could potentially lead to a revenue stream. But we have another a number of other concrete ideas that we're in active discussion with with other partners. Clearly, they're at an earlier stage than the personalized medicine initiative. One of the reasons, as I mentioned earlier, for convening an advisory board is to make a selection from amongst these these ideas and prioritize them in order that we can we can focus on on actually moving them forward to the stage where they'd be something that we could announce to you guys, which clearly we want to do as soon as we can. I can't really say more than that at this point in time other than just to reiterate that, you know, we would like to evolve our business to one which is, you know, purely fee for service consulting based to one which has more of an asset to asset based component.

36:19 Thank you. Just coming to the penultimate we've got here. You've been very successful in the past gaining Innovate UK and NIHR grants. Will you be applying with partners for a Cancer Grand Challenge Research Award? The Cancer Grand Challenge awards are worth circa $25,000,000. It would seem to me as a layman that simply announcing one's company was planning to apply for such a high profile award could attract act as a marketing tool to both investors and potential partners. Yeah. Thank you for that question. And and I guess because there's such a large dollar amount associated with that particular award, you know, it it it does attract some attention. On that specific award, I'll just observe that they primarily that award is designed for for clinical investigators. So academics or clinicians working in in a in a hospital or an academic environment.

37:10 A lot of the consortia that are put together do include private companies, but but it's not the private companies that lead those awards. Also, the focus in terms of the subject matter of those awards tends to be early research rather than drug development, which is more our focus. So though that specific award may not be so suitable for us in particular. However, we do continue to closely monitor the grant environment. We've had significant success, you know, really, really significant success, I would say, in winning grants in the form of awards from Innovate UK and NIHR over the last, what, four or five years. Far, far higher than average success rate. If you look at the numbers that, you know, you can look in the public domain and and see that perhaps, I don't know, 10%, 15% of of applicants for awards such as Innovate UK get through.

38:06 You know, I think we may have applied for, you know, something like four in the time that I've been around and and been awarded to. So, you know, that that that that's that's that's certainly beating the the statistical odds as far as I'm concerned. So we will continue to to monitor this environment closely. Obviously, we won't announce every time we apply for an award, but we'll certainly tell you every time we win one and hope to be able to, you know, make further announcements in that space as and when it's appropriate. Thank you, Jim. Next one we have here is a progressive company. I'm surprised we've not seen any announcements from PHYSIOMICS in recent times with regard to staff recruitment. Is that the company is able to grow its business sustainably with the existing core personnel, or does it prefer to make use of contracted labor?

38:59 Yes. So I, you know, I did mention in my last slide of my presentation that that we are planning to expand our our sales and marketing team in the form of a of a new business development executive. In terms of the core scientific project team, you know, I think the flexible model that we have, which combines full time employees with consultants whose time we can draw on as required, works really well for us. You know, it means that we don't know, you as a small company, obviously, we have some, you know, some fluctuation in the amount of work that we're doing from from month to month and year to year. And rather than having people sit around doing nothing during follow periods and indeed to avoid them being, you know, critically overburdened during busy periods of which we've had a lot over the last twelve months.

39:52 You know, being able to draw on flexible resource is a really nice way to address that both both of those problems. And so I think, you know, we will continue to do that, but we want to build out the sales and marketing side of our business in particular at the moment. And so I'm pleased to say that, you know, we're very actively looking for an additional team member in that space. I think that's the end of the pre submitted questions. And I think, to be honest, Paul, I've probably touched on most of the questions that I am able to answer that were submitted over the course of of the meeting. So, that might be a good time to to to a close. Absolutely. And if there are any further questions submitted from investors, of course, Jim can review those post event.

40:40 Jim, just perhaps before we redirect investors to give you some feedback, just a a couple of final closing words, if I may, from you before we do so. Just to reiterate, I guess, the investment proposition, which is on this this last slide. I don't know if you still still see it, but, you know, we still see potential for growth in our core business, but we want to leverage our capabilities in modeling and simulation in other ways as well, looking at asset based plays such as the personalized medicine initiative, most notably through the collaboration with Tabula Rasa HealthCare, but also in other ways, which we are in internal discussions about. And, you know, as and when we reach conclusions to direction of travel there, then we will, we will seek to make further announcements.

41:28 That's fantastic. Jim, thank you very much for updating investors today. Could I please ask investors not to close this session as you'll be automatically redirected for the opportunity to provide your feedback? If you've accessed this meeting from our website, the feedback page will appear in front of you. You've accessed the meeting via the link sent to you in the email. You're simply asked to log back in. It just takes a few minutes to submit your feedback and be greatly appreciated by the company. On behalf of PHYSIOMICS PLC, we'd like to thank you for attending today's session. That concludes today's event. Thank you very much, and good morning. Thank you again, Jim.