Basilea Pharmaceutica (SIX Swiss: BSLN) Q2 2026 Earnings Call

0:00 Ladies and gentlemen, welcome to the Basilea Pharmaceutica Half Year Results twenty twenty six Conference Call and Live Webcast. I am Atel, the Chorus Call operator. I would like to remind you that all participants will be in listen only mode and the conference is being recorded. The presentation will be followed by a Q and A session. The conference must not be recorded for publication or broadcast. At this time it's my pleasure to hand over to David Chief Executive Officer. Please go ahead. Thank you.

0:47 Hello. I'm David Leach, CEO of Basilea. Thank you for joining us today on our conference call and webcast. We'll be reviewing our financial results and key achievements for the first half year twenty twenty six as well as highlighting our priorities going forward. For further detailed information please see the ad hoc announcement issued this morning and our half year report. These documents together with the webcast presentation are all available on our website at basilea.com. I would like to mention that this call contains forward looking statements. Joining me on our call today are Odesh Kao, our Chief Financial Officer and Doctor Mark Engelhardt, our Chief Medical Officer. We've had a great start to the year, delivering strong financial results and continued execution across the business.

1:38 Let me briefly summarize some of the key highlights from the first half of twenty twenty six. Starting with our strong financial performance. Basilea's total revenue grew 14% year on year to CHF119 million resulting in an operating profit of CHF32 million, an increase of 32% year on year. Our net cash position doubled to CHF105 million. During the first six months of twenty twenty six we were awarded $61,000,000 of non dilutive funding which offsets a significant proportion of our R and D costs. Portfolio highlights include continued strong in market sales of our lead commercial product Cresemba which are now close to $800,000,000 and growing almost 30% year on year.

2:30 The phase three programme of phosphonagepics, our lead antifungal in development is progressing as planned, evidenced by the recent BARDA funding award for achievement of a particular enrolment milestone. Also our novel antibiotic BAL2420 has started its first in human Phase one study. We also continue to invest in our earlier pipeline. In this context we signed a collaboration agreement with Prokaryotics for the pre clinical development of a novel broad spectrum antifungal candidate. Basilea's pipeline today combines two commercial products Cresembra and Zevtera with a diversified portfolio of development stage anti infective assets, all added over the last three years.

3:17 We have now two Phase III assets, Phosphanagepix and Ceftobutin ledobarbactam, which together have the potential to generate peak sales of approximately $1,500,000,000 roughly doubling our current in market sales level. Our earlier stage programmes, BAL2062 and BAL2420 continue to advance towards their next decision points, adding further depth to the pipeline. Overall we have built a balanced anti infective portfolio combining commercial growth drivers, late stage value creation opportunities and early stage innovation. Behind these assets we also have pre clinical research programmes developed both internally and from external collaborations.

4:03 We announced two early stage collaborations in the last eight months that further expand our innovative research pipeline. The first is a partnership with FAIR Bio which applies generative artificial intelligence to the discovery of novel antibiotics aiming to improve the efficiency of identifying and developing a new antibiotic candidate. Then we entered collaboration with Prokaryotics to develop a first in class broad spectrum antifungal candidate. The programme aims to deliver an effective, safe and easy to administer treatment for severe invasive fungal infections. Together these partnerships expand our access to innovative technologies and new approaches with limited upfront investment from Basilea. I'll now hand over to Adesh for the commercial and financial update.

4:53 Thank you, David. Starting with Cresemba, which remains the cornerstone of our current commercial business. Global in market sales in the twelve month period to the end of March twenty twenty six amounted to $782,000,000 27% increase year on year underscores the continued strong demand across all key markets and is driven by continued gain in market share, even in markets where Cresemba is already market leader. Let me turn to Zevtera, which was commercially launched in The US about a year ago by our partner Innoviva Specialty Therapeutics. For novel hospital antibiotics, the key focus in the initial twelve month period of launch phase is on establishing broad market access and on supporting positive clinical experience.

5:47 The KPIs we track in this early phase reflect these focus areas. Zephyra continues to make good progress in securing access across the healthcare system with important wins in group purchasing organizations, formularies, and reimbursement programs helping to support future uptake. At the same time, increasing account numbers and repeat ordering trends combined with encouraging medical community feedback, provide early evidence of positive clinical experience and acceptance. Innoviva has also further expanded its field force to increase hospital coverage, from which Cevtera is expected to benefit. We're therefore pleased with the progress in this launch phase and are looking forward to seeing these encouraging key lead indicators translate into increasing adoption and sales in the quarters and years to come, especially as Septera has market exclusivity in The US until April 2034.

6:50 All of our clinical programs continue to be supported through BARDA and CARB X agreements, which provide non dilutive funding for our R and D portfolio. Across these contracts, more than $440,000,000 has been committed to Basilea. Approximately 165,000,000 has been awarded to date, out of which $61,000,000 was awarded in the first half of twenty twenty six. This non diluted funding enables us to advance our clinical programs in a capital efficient manner. Moving now to the financial results for the first six months of twenty twenty six. Unless otherwise stated, all numbers are in Swiss francs.

7:37 Cresemba and cefera related revenue totaled 92,300,000. This included royalty income of 57,800,000, which grew by about 11% year on year. Milestone and upfront payments were 4,700,000. Other revenue, which include mainly reimbursements from BARDA and CARB X, rose to 26,700,000. This brings total revenue to 119,000,000, an increase of 14% compared to the first half of twenty twenty five. Cost of products sold decreased to $15,400,000 in the first half of twenty twenty six, positively impacted by the customer and product mix.

8:23 Operating expenses amounted to $72,000,000 increasing mainly due to costs associated with the progress of the phosphonogenic phase three program, preparations for the ceftobutene ledoborbactam phase three program, as well as the Phase one study for BAL2420. As a result, we achieved an operating profit of $31,600,000 and a net profit of $27,900,000 both significantly increasing year on year. Finally, cash and cash equivalents and restricted cash rose to $176,000,000 The cash flow from operating activities amounted to $19,000,000 including the impact from a temporary increase in receivables and inventory, reflecting the continued growth of our commercial business and strong operational execution in the first half of the year.

9:19 The receivables are expected to be collected within their respective due dates in Q3 twenty twenty six, and the inventories will allow us to address the increased product demand in the second half of twenty twenty six. We also continued to strengthen our balance sheet through debt reduction. During the reporting period, we repurchased 5,000,000 in nominal value of our convertible bonds, reducing the outstanding nominal balance to 71,000,000. The convertible bond is due to mature in July 2027. Let me now turn to our updated full year guidance. Based on the strong performance in the first half of this year and the continued positive outlook, we now expect total revenue for full year 2026 to grow by approximately 15%.

10:11 Within this, Cresemba and Zevtera related revenue is expected to reach around $210,000,000 compared to our previous guidance of around $200,000,000 This is expected to translate into a cash contribution of approximately $180,000,000 from our commercial business. We continue to expect an increase of 20% year on year of our investments into R and D. Driven by the higher expected revenue, we are raising our operating profit guidance and now expect an increase by approximately 40% year on year, compared with our previous expectation of around 20% increase. This demonstrates the strength of our business model and our ability to maintain solid profitability while increasing investments in our growth pipeline.

11:02 Looking at the components of our full year guidance on Cresemba and Jifera related revenues, we expect approximately $125,000,000 from royalties, 35,000,000 from milestone payments, and $50,000,000 from product revenue. We expect the revenue mix to keep on shifting towards higher margin royalties and milestones, resulting in a significantly higher cash flow contribution from our commercial business in the second half of the year. I will now hand over to Marc for the portfolio update. Thank you, Adesh. As David mentioned earlier, we currently have two Phase III programs, Hosmer Najapix and ceftobut and leirobarbactam. Advancing these programs efficiently and successfully through development remains a key priority for Basilea.

11:50 Ceftibut and lelebobactam, which we in licensed in August 2025, is now in preparations for a global Phase III program with study initiation expected in mid-twenty twenty seven. This program benefits from a well established study design aligned with published FDA guidance for complicated urinary tract infections. Fosmonogapix is currently being evaluated in two global phase three studies, Fast IC in invasive candidiasis and candidemia and Forward I'm in invasive mold infections. We expect both studies to read out in 2028. Importantly, the Fosmer Najapix phase three program is supported by a growing body of real world experience, which I will discuss in more detail shortly.

12:37 Fosmer Najakis has a truly differentiated profile combining a first in class mechanism of action with broad spectrum activity against both molds and yeasts. And in addition, it has demonstrated excellent tissue penetration and offers both intravenous and oral formulations, providing important flexibility for patient management. We continue to make good progress with the phase three development program that I mentioned earlier, which remains on track. At the same time, we continue to gain valuable real world experience with fosmonellajectives through a global expanded access program. This program provides access to fosmonellajectives for patients with serious or life threatening invasive fungal infections who have limited or no alternative treatment options.

13:24 To date, nearly 600 patients have been treated across 22 countries, and the continuous increase in patient numbers and the geographic reach reflect the significant global medical need addressed by FasanoJackets. Additionally, this growing body of real world experience may complement clinical data package and support future market access following regulatory approval. IL-two thousand four hundred twenty is our first in class antibiotic targeting highly resistant negative pathways. These infections remain a major global health challenge, including those caused by carbapenem resistant Enterobacteraceae, where treatment options are often limited and patient outcomes can be poor. AL2420 offers a novel mechanism of action based on inhibition of LPTA, which then leads to rapid bacterial cell death.

14:17 Importantly, this mechanism is distinct from existing antibiotic classes, creating the potential to overcome resistance. We've initiated the first new phase one dose escalation study in the first quarter of twenty twenty six. I'm pleased to report that the study has progressed as planned. In addition to fosmonegapix and MOL2420, we are also progressing our other clinical stage antibacterial and antifungal programs towards the next milestones. The antibiotic ceftobutan lebobacam is being developed as a potential first oral beta lactam beta lactamase inhibitor combination for complicated germinal tract infections caused by enterobacterialis. The program addresses a significant need for new treatment options for multidrug resistant or negative infections and benefits from both Fast Track and QRDP designations from the FDA.

15:11 AL2062 is a novel antifungal candidate for the treatment of invasive aspergillosis including resistant strains. Following encouraging phase one safety and tolerability data, discussions with regulatory authorities regarding the optimal phase two and phase three development pathway are ongoing. With this, I'll hand back to David. Thank you, Mark. Building on what Mark showed you, we expect our commercial portfolio to expand over time. Cresemba will continue to generate substantial revenues, while with The US launch of Zevtera, we expect increasingly meaningful revenues over the coming years. Assuming successful clinical and regulatory outcomes, VOSSMANEGEPICS could become our third commercial product in 2029, followed by ceftobutin ledoborbactam as our fourth commercial product approximately a year later.

16:04 Together these two assets are expected to become important future growth drivers for Basilea and diversify our revenue streams. At peak they could generate combined in market sales equivalent to approximately twice the level of today's sales illustrating the significant value creation opportunity in our late stage pipeline. Earlier this year we announced our Agenda 2030, our roadmap for Basilea's next phase of development. We communicated that at the end of twenty twenty five we had CHF162 million in cash and we expect approximately CHF600 million in cumulative cash flow from Cresemba and Zevtera alone between 2026 and 2030. In addition, more than $350,000,000 of potential non dilutive R and D funding remained available under existing agreements.

16:55 These resources provide the foundation for the next phase of growth of Basilea. They allow us to advance Phosphonagepix and ceftobutin ledobarbactam towards commercialisation, continue investing in our earlier stage pipeline and further strengthen our portfolio through targeted business development opportunities. Currently, we are fully on track to deliver on these targets set out in our Agenda 2030. This is evidenced by our progress in the first half of twenty twenty six. We delivered another strong operational and financial performance with double digit growth in Cresemba revenue leading to an increase in our full year operating profit guidance. Across the pipeline both Phosphonanalgepics Phase three studies continue to advance as planned.

17:41 Also preparations for the cefalaritin ledibulbactone Phase three programme continue and we initiated the first in human study in BAL2420. We entered into a new preclinical collaboration and secured $61,000,000 in non dilutive funding for our clinical programs. With a strong first half of twenty twenty six, we look forward to continue building on this momentum for the remainder of the year. Thank you for your attention and we'll now open the line for your questions. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the telephone. You will hear tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star and two.

18:31 Questioners on the phone are requested to disable the loudspeaker mode and eventually turn off the volume from the webcast while asking a question. In the interest of time, please limit yourself to two questions. The first question comes from the line of Brian White from Calvin Partners. Please go ahead. Yes. Hello, thanks for taking my questions. The first one's on phosphatidase effects and just thinking about the commentary on enrollment. And we still have seen quite an explosion of resistant Candida in The U. S. And I just wondered if you're seeing a positive impact on enrollment there. And just also if you could remind us if you need both studies to read out for filing an approval or if one was faster than the other, could you go ahead with one ahead of the second?

19:29 And then also on ceftobutin led of a back time program. I know we're obviously looking forward to the initiation of Phase III next year. It's early days since the approval of Utebsi in The U. S, and I wonder if you've seen anything from the label or the approval that has given you some insight into the positioning of kefibut, meso, barbipram and CUTI? Thank you. Okay. Thank you, Brian. Actually, Mark, why don't you take the one about candida aureus and the impact potentially on our study and also are both studies needed? You take that question first. Yeah, Brian, thank you very much for the question. So usually outbreaks do not have such a great impact on clinical trial enrollment. Are often localized.

20:21 And then for primary therapy of Candida infection, which is the study, it's restricted to no more than forty eight hours of prior antifungal treatments. Otherwise, patients cannot be enrolled and that's often hours outbreaks. They have already started for a couple of days of treatment. So, in principle, it could support enrollment, but in practice, the number of outbreaks is relatively small compared to the overall prevalence of cancer infections. The second question was about the two phase three studies. So, we could file them separately, but we will need the candidemia study completed because of the required safety database for the NDA.

21:13 So there are several options. We file candidemia and mole together, or we file candidemia first and then mole infections depending on completion dates. Thanks, Mark. And and then on on your tebipenem question, actually, it's interesting. I mean, obviously, all we've read is what what's public, but it looks like GSK, Spiro, our position in tebipenem as an oral carbapenem, which obviously wouldn't directly overlap with ceftobutenelevobactam as that's an oral Betrolactam beta lactylase inhibitor. But obviously in terms of the concept, the value proposition of an oral set down or alternative to IV carbapenems it will be similar. So actually from that point of view it would actually I think be quite helpful for us in terms of GSK, Spiro doing a lot of the groundwork in terms of educating the market in terms of the oral complicated UTI concept which I think we would benefit from if and when we come to market with ceftobutin and levobactam.

22:18 So that's how we're initially thinking about it but obviously we'll see what happens when they launch and the positioning going forward the response to that. Next question comes from the line of Jyoti Prakash from Edison Group. Please go ahead. Hi, thank you for taking my questions and congratulations on the strong first half. So my first question is related to the guidance and I'm just trying to reconcile the numbers here. So the operating profit is now expected to go by 40% versus 20% previously, which is, if I do the math, CHF 10,000,000 increase and CHF 5,000,000 of that would obviously come from the increase in royalties.

23:08 So just trying to understand where the other growth is going to come from given that the milestone payments are not expected to change from last guidance? That's the first question. And the second question is again on royalties. If you just look at the breakup of royalties in the first half, it looks to be the growth looks to be primarily driven by Astellas. How do we think about this for the second half of the year? Thanks, Jyoti, for those questions. Pitesh, do you want to take those? Yep. Thank you, Jyoti. So maybe initially on your first question on how the guidance works, we are in essence guiding for an increase in $12,000,000 in revenues, you could say.

23:54 And as you correctly pointed out, dollars 5,000,000 is the increase in royalties that we expect, 5,000,000 in product revenues. So Cresemba and Zevtera related revenues are expected to increase from 200,000,000 previously guided to $210,000,000 in the new guidance. And then there is sort of the residual value of 2,000,000 that is coming from other revenues in essence, and out of those 12,000,000, basically 10,000,000 flow all the way down to the operating profit. So as you correctly pointed out, our operating profit guidance increases from 62,000,000 to 72,000,000, and I think the structure basically how this works reflects also how our business model works, that we have actually quite high translation of revenue growth into profit.

24:48 And then with regards to your second question on the royalty breakdown, I would point you simply to the, first of all, the full year guidance. So in essence, we are guiding for 125,000,000 in royalties for the full year, and hence, yes, there will be quite a lot of, I would say, positive dynamic in the second half of the year, driven by the underlying growth of Cresemba that we're seeing in the market. One point to bear in mind when you're just looking at the year on year comparison in the first half is that the first half of last year was to some degree positively impacted by some, I would say, mitigation measures that some of our partners took with regard to the tariffs and tax situation that was announced in April 2025.

25:43 So the first half of the year saw some mitigation measures. Therefore, the royalties in the first half of twenty twenty five as a baseline were probably a little bit higher than they would have been on a run rate that normalized in the second half, and now if you're comparing the full year '25 to the full year '26, you're seeing a healthy double digit growth in royalties that reflects on the in market performance that we also see with Cresemba. So to build on that, so therefore when you ask the question would the second half of the year the royalty rate growth come from Astellas which you observed in the first half of the year, I think the point is it will come from more than just Astellas, it will come from both Pfizer and Astellas. Great. I think that's that's very helpful.

26:32 So I'll get back in the queue. Thank you so much. Thank you. We now have a question from the line of Joureth Zemaman from Octavian. Please go ahead. Yes, hello. Thank you for taking the questions and congratulations on this strong set of results in H1. Two questions, if I may. One is also related to revenues, specifically to product sales. With almost €30,000,000 those have been significant despite some of your partners actually shifting to in house production. And I think also for the guidance, full year guidance now, you expect a slight increase. Could you maybe talk a little bit to the drivers behind that? And then on ceftobutane, nilaborbaxam and the Phase III initiation which you confirmed for MID-twenty seven, I was wondering where you stand in terms of the meeting with the regulators, FDA, EMA, and then if you already have more clarity if indeed it will be one study or it might still be multiple studies.

27:41 Thank you so much. Yeah, thanks, for those questions. I mean, do you want to take on the product sales and why we have the levels we have in Q1 sorry, half year versus full year? Yeah, also on the full year. So thank you, Joris, for your question. So maybe just give me a little bit of background initially. Indeed, Pfizer and Gozun as two big partners have moved to their largely to supplying themselves as it was always planned, and that was also reflected in our initial guidance for 2026. We had guided for product sales of 45,000,000 for the full year versus about 50,000,000 that we had in 2025. Now, we increased our guidance to basically 50,000,000, so in essence flat product sales, compensating fully for the product sales that we are no longer doing to Pfizer and Gozun, and that is really driven by the underlying demand that our distribution partners and other partners that we are supplying have primarily for Cresemba. So on the one hand, you're seeing the positive dynamic in the increase in royalties, so that's why the royalty guidance has gone up, and correspondingly, our partners are also ordering basically more, and that is then reflected in the product sales guidance.

29:06 Product sales, just as a reminder, do not perfectly correlate with the in market sales because we recognize product sales whenever we do the delivery. So they are sort of more distinct whenever we do a delivery, then basically we recognize the full amount and that's why it's not a clear linear growth rate, but I think the dynamic is clear, underlying demand is increasing and that's why our product sales across the partners that we're supplying is increasing as well. Maybe as the last remark I would like to make, which you didn't ask, but I'm volunteering the answer, is basically that our product mix on or our revenue mix on product sales is improving as well, because we are selling more to partners where we have a higher margin in essence, and that's also being reflected in our overall guidance.

30:02 Yeah, thank you, Adesh. Hopefully that answers your question there. Then the ceftobujan, the lebobacam one, and Mark, you're best placed to comment on discussions with FDA or EMA and how many studies are required, etcetera. Can you just comment on that? Yeah, so we've entered into an active discussion and a formal process with FDA and EMA for the program. The discussion includes the overall scope of the program, critical design elements, regimen selection, comparison endpoints, And our objective is to agree on a Phase III program that provides a clear and efficient path forward to registration and also to have the data to optimize commercial positioning.

30:49 That is a process of program, so we have not yet come to a conclusion on, for example, the number of required studies, but we'll communicate once we have come to a conclusion. But the idea is that this process goes in parallel with our other preparation activities so that we can start the study mid twenty twenty. Exactly. So that's an ongoing process that runs parallel with the operation and preparation. Okay, thank you. Thanks, Charles. The next question comes from the line of from Pareto Securities. Please go ahead. Hi, congrats on the strong results. Just two questions for me. So one is a follow-up question on Fort Myers Logistics enrollment.

31:43 So earlier this year in your business update, you announced that you are activating 21 new centers in China. For a fact, I see do you see any trend in this Chinese side? And do you see any impact on the overall time line? And the second question is about the cash position. So with this continue improving, how are you thinking about the allocation between bond buybacks, funding the clinical development and any additional BD activities? Thank you. Yeah, so maybe Mark you could comment on has the inclusion of China in the invasive candidiasis, cosmologepic study changed the trend in a way? I think that was Chen's first question.

32:31 Yeah. So, yeah, thanks for the question. I think we are on track with the program. There's no change really in the timelines. And as expected, opening China contributes to the enrollment of the study. So I think there's nothing really unexpected from that end. Yeah. I think on your cash position question and basically the use of capital, I think as we've said at the moment for twenty twenty six-twenty twenty seven it's clear that our focus as we laid out in Agenda 2030 is basically investing in our R and D, so both the late stage programmes and the earlier stage programmes and in addition to selectively in licencing acquiring assets like we've done for the last three years, assets that are both innovative but have what we believe is commercial potential and that's the focus of our capital allocation now.

33:36 And then what we've said publicly up until now and it's still the current thinking is that when we get more visibility following the maturity of the convertible bond mid-twenty twenty seven and we get visibility on the results, the initial results from Cosmologetics at the beginning of twenty twenty eight of the Phase three studies then we'll be in a position to assess capital distribution in terms of whether it be buybacks or dividends in addition to the other uses of capital that I've just mentioned. That's the way we're thinking of it, Chen, at this moment. We now have a question from the line of Jasmeen Sperry from Zuricha and Kemal Bank. Please go ahead.

34:30 Thank you for taking my questions and also congratulations from my side. I have two questions. One is related to Zevtera and the other one to your Phase I asset, BOLLO-two thousand 420. The first one about Zevtera is mainly that U. S. Launch of Zevtera appears to be progressing. Could you provide more details on maybe hospital adaptation and how you see this translating into revenue growth over the next twelve until eighteen months? And second, BAL2420 has entered Phase I trials. Could you share any early insights or timelines for when we might expect initial data readouts? Or how do you see this asset fitting into your broader portfolio strategy time wise? Thank you.

35:23 Yeah, thanks, Yasmin, for the questions. I mean, maybe, Yadesh, you comment on the Zevtera sort of twelve to eighteen month sort of vision. Yeah, so, and I'll even go beyond that. So just as a reminder, Zetera has exclusivity in The US until April 2034, and the way that we have structured the transaction and also the way that we philosophically think about our assets is that we look at optimizing the value over the entire product life cycle. And hence, for us to focus when we're looking at the key performance indicators that we're tracking at this point in time is, are we together with our partner, of course, Innoviva Specialty Therapeutics, setting the ground for long lasting success basically, and in this respect, we've done indeed, as you indicated, we've seen good progress, we believe that market access has been established very well, we believe that the hurdles have been overcome that may have been there or barriers with regard to affordability, broad adoption, positive clinical, initial clinical experience, and so on.

36:35 And the expansion of the field force by Innoviva Specialty Therapeutics also plays into the expectation that we will see an increasing dynamic now going forward. However, to manage expectations, for us, again, material impact or more material visibility on revenues from Ciftera are probably going to come in the 2829 timeframe. That's when we start to really look at do these early indicators translate into tangible revenues that we're seeing and are we on a good trajectory to achieving our goal of maximizing the value. And just the twenty fourtwenty question mark about where are we data readout timelines and thinking about next steps, Could you comment on that? Yeah. I think first in human study, timelines always not exactly to be predicted because we don't know how many dose levels we will have to dose until, you know, getting to an effective and safe dose. But our current expectation is that this study could be completed in around mid-twenty twenty seven, but as I it depends on the number of dose levels and dose cohorts. So, this is single dose and multiple doses, and they go on in parallel with the multiple doses starting sometime after the single doses have been qualified.

38:09 From a portfolio perspective, it's a complete novel mechanism of action overcoming resistance. One of the indications we are currently thinking about for this compound is from negative bloodstream infections which are frequent with a high unmet medical need, And I think that kind of describes the portfolio that would be our development direction. Hopefully that answers your question. Yes, thank you very much. Ladies and gentlemen, there are no more questions at this time.

38:58 I would now like to turn the conference back over to David Beach for any closing remarks. Yes, thank you. Thanks for your questions. Before we close I'd just like to remind you of our Capital Markets Day which will take place on October 28 in Zurich. During the event we provide a more comprehensive update on our strategy, our development portfolio and future value creation opportunities. In addition we'll have two globally renowned infectious disease physicians who will share their insights on the medical need in serious fungal and bacterial diseases which underpins our portfolio's development programmes. So hopefully you can join us at that meeting. Thank you very much for your time today. Ladies and gentlemen the conference is now over.

39:46 Thank you for choosing Chorus Call and thank you for participating in the Basilea Pharmaceutica AG twenty six Conference Call. You may now disconnect your lines. Goodbye.