Biovica International (Stockholm:BIOVIC B) Q1 2027 Earnings Call

0:00 Hello and welcome to this live queue with Bivika. First off, we will have a presentation from Bivika and from Thijs Kipling and Anders Morén. And after that, we will have a Q&A session. And please feel free to send in your questions through our web page. So please, Bivika, go ahead and do your presentation.

0:25 Thank you very much. So. Good morning here from San Diego in the U.S. and welcome to BioVica's Q1 2026-2027 earnings poll. My name is Tijs Kipling. I'm the CEO of BioVica and I'm joined today by our CFO Anders Modén. Before we get into the results, slide two contains our standard forward-looking statements disclaimer and I'd encourage you to read it at your convenience. Today's presenters are, beyond myself, also our CFO, Anders Morén, who will take part in the Q&A session later in the presentation.

1:10 We will begin with a brief introduction to BioVica, followed by our Q1 highlights, a financial update, and then we close with a few summary remarks before opening the call for Q&A. We welcome you, as mentioned, to submit written questions through the chat. These will be answered in writing and appended to the end of the presentation, which will be published on Biobica. And joining us today, as mentioned, is the analyst Fredrik Tord from Redeye. In the next few slides, I'd like to introduce Biobica and highlight several aspects of the company that I believe make for a particularly compelling investment case.

1:58 STIVITUM TKA is our FDA 510K cleared blood test that monitors and predicts treatment response in hormone receptor-positive metastatic breast cancer, providing clinical insight as much as 83 days before imaging. Viobica is listed on Nasdaq First North, headquartered in Uppsala, Sweden, with our CLIA and CAP accredited laboratory in San Diego, California, serving all 50 states here in the US. I'd like to highlight what I see as the core of our investment case. First, the dividend platform itself, a quantitative proliferation signal from a single blood draw, giving oncologists information before imaging confirms what biology is already showing. Second, that 83-day lead time is validated against standard imaging, and we are seeing real patient cases where it flags response and resistance.

3:06 And third, we build the commercial infrastructure to act on this. Our clear and capacitive lab has processed more than 900 tests over the past 12 months across 32 active accounts with a 75% prior year retention. Behind all of this sits a strong and expanding evidence base. More than 30 publications across 5000 plus patients and six cancer types with our FDA 510 clearance giving us credibility with both physicians and with payers. Our lab model is centralized with a cross margin structure above 85%, so revenues would scale faster than our fixed cost base.

3:57 And we do see multiple paths for upsides. Our hormone receptor positive metastatic breast cancer beachhead expansion into early breast cancer, a patient pool roughly five times larger, and beyond that, our pharma services and CDX collaborations. Let me turn to the commercial traction we're seeing in our US lab and services business. We have now 46 accounts to date, including recurrent use by major academic and community oncology networks, and repeat ordering across these leading institutions signals real workflow integration and not one-off sampling.

4:43 Test volumes have grown for nine quarters straight, up 63% since fiscal year of 2024 and 2025, and that momentum is accelerating into this fiscal year. Looking at the underlying ordering behavior, 75% of our active accounts ordered more than once. 75% also of our providers sent samples multiple times. We retained 81 percent of accounts from prior year and 26 out of 36 active accounts ordered in three or more months. Taken together, this is what gives me confidence in the durability of demand over here in the US. Looking ahead, we're targeting study activation this fiscal year.

5:31 with a large integrated delivery network partnership, which we expect to open a pathway to NCZN guideline inclusion and to further accelerate volume growth beyond what we are already seeing. As mentioned earlier, hormone receptor positive metastatic breast cancer remains our beachhead. Based on roughly 100,000 US patients, we have estimated this opportunity of approximately north of 400 million US dollar in available market. This is our immediate focus, and it's where we intend to win through clinical adoption, continued evidence generation, publications, and over time, guideline inclusion.

6:18 At the same time, we are working closely with the research community to build evidence in early breast cancer patient pool with clinical trials for this indication starting in Q4 of this year, which has the potential to expand our addressable market. Beyond that, we see a longer term platform opportunity across multiple indications, including lung, GI, blood cancers from 2028 and onward. supported by our granted ICI biomarker pattern and algorithm IP that is currently in progress. Let me now turn to our pharma business, which remains a key source of revenue and platform optionality.

7:04 We see the total addressable pharma opportunity here at approximately US$8 billion by 2030, with the US representing more than 40% of that. We see three distinct revenue opportunities. First, services and kit sales linked to drug development programs, typically US$50,000 to US$400,000 per project, which is where our pharma revenue is generated today. We currently have 24 ongoing collaborations spanning across CDK46, PIK3, SIRTS, and other oncology programs representing approximately 30 million Swedish kronor in ongoing contract value.

7:50 Second is companion diagnostic collaborations worth roughly between 5 million US to 50 million US per development program. Several of our current engagement They have CDX potential, and those discussions are also ongoing, although we do not have any signed CDX contracts or either any CDX revenue as of today. Third is CDX product sales worth more than $50 million per year for approved product, which obviously represents the longer term highest value opportunity. However, there are no CDX products on the market for us today, but this is where we expect to be over time.

8:38 Looking at our current work orders, of our partners are Tier 1 companies with more than US$10 billion in annual revenue. One is Tier 2 and 12 in Tier 3. By drug class, CDK4-6 inhibitors remain our largest focus at 15 programs, followed by SIRT at 4, IO programs at 3, PIK3 at 2, which reflects where the market is today and also where we are beginning now to diversify. My full quarter as CEO has been about decisive action, cost discipline, a strengthened leadership team, and accelerating momentum in our pharma services business. On the pharma side, pharma services revenue nearly doubled year over year, up 95%, with pharma test services revenue growing 187% on growing demand for pharmacodynamic biomarkers.

9:36 We also made some difficult but necessary decisions on costs. We have streamlined the organization, which carried a near-term cost in the P&L, but sharpens our cost base going forward. And we ended our agreement with Tempus AI so that we can focus our US commercial resources more directly. Finally, on leadership, I'm happy to say that Maria Ekdal will be joining us as CFO, and our nomination committee has proposed a renewed board ahead of the 2026 AGM coming up next week. Together, I believe that these changes, they leave us as a leaner, more focused BioVica heading into the rest of the year. Let me now turn the focus to the Q1 highlights.

10:25 Net sales were 4 million Swedish kronor, up 56% year-over-year, or 57% in local currency, driven primarily by pharma services. Operating cash flow was in Swedish kronor minus 16, which is a modest improvement versus last year's minus 17. And our cash position stood at 51.6 million Swedish kronor, up from 16.3 million the prior year. On the US side, IVD test revenues were, in Swedish kronor, 1,084,000 kronor, up 1% year-over-year, or 2% in low currency.

11:10 However, with volumes that increased roughly 20%. That said, a shift towards commercial payer coverage is for now holding back revenue. and improving payer collection naturally is a priority for us moving ahead. On the pharma side, revenue was in Swedish kronor 2.9 million, up 95% year over year, 96 in local currency, with pharma test services up 187%, driven by new work orders from existing global pharma partners. So put simply, Q1 delivered strong pharma services growth and a leaner cost base, while US IVD revenue was held back by PMX headwinds, despite actually seeing continued and higher volumes.

12:07 Before I close, I want to update you on a capital raise that we're executing to fully fund the business through to the next level. We're carrying out now a 29.2 million Swedish kronor rights issue of new Class B shares with preferential subscription rights for existing shareholders at a subscription price of 0.3 Swedish kronor per share at this count of approximately 23% to the theoretical X rights price. Importantly, the rights issue is expected to be fully covered. Our largest shareholder, HDF and family, has agreed to guarantee the amount in full. So the issue is backstopped for its complete amount. The board's resolution on the rights issue was given on September 9th, subject to approval and an extraordinary general meeting with the subscription period targeted to open on October 7th.

13:03 Together with the cost actions we have already taken, this capital injection will give us the runway that we need to execute on our strategy. Let me now close with a few summary remarks before we open the call for Q&A. We've built real momentum. Our direction is clear and I believe our position in the market is very unique. What took us here to where we are now won't take us to where we want to be next. And I want to be very clear-eyed about that as we look ahead. On performance, this has been a leaner and more focused by BioVica. Pharma services revenue nearly doubled year-over-year, and the cost actions we have taken, they sharpen our cost base going forward. On commercial traction, we secured our ninth working order and expanded MSA from existing global pharma partners, signed a new lab services agreement with the U.S.

14:04 Cancer Center, and published also new Phase III data. Looking ahead, our execution priorities are a leaner cost base following the Q1 restructuring, a sharper U.S. commercial focus, and continued pharma momentum. And on market position, I see ctDNA and DIVITUM TKA as complementary, not competing. DIVITUM delivers a frequent read on treatment response before imaging, regardless of a tumor's rotation profile. As I've said before, we're not the mutation detector, we're the proliferation monitor. The earliest, the simplest signal that a drug is actually working. That is where our FDA clearance, our evidence base, and our growing number of active U.S.

14:56 accounts puts us. And I obviously look very much forward to maintaining a close dialogue with the investor community and to keep on sharing further updates as we continue to execute on our strategy. And with that, Fredrik, I'm happy to open the call for questions. Perfect and thank you for the presentation. So first off a few questions from the investors and participants online. So the first question is improving commercial payer coverage and revenue collection is now an active priority. Could you update us on where you stand with Medicare as well as private insurance coverage?

15:43 Yes, absolutely. So we're in a very good position and I was actually very positively surprised when stepping into the company to see how far we have actually developed. We have Medicare pricing already and we actually have many of these commercial payers that are paying us. However, many of these commercial payers are in most cases waiting to see that we will have guidelines to support them continuing to pay us at a stable price. So we're seeing quite some fluctuation within these private insurers that makes the price we're being acknowledged go up and down and sometimes even a zero. But the team that we have is very experienced in managing this and we have a plan also on how to proactively mitigate and continue to strengthen the position.

16:35 So that's in short how I look upon this. So it's good, it's positive. Got it. And what reimbursement changes are you targeting in the near to medium term to help drive IVD sales?

16:52 No real reimbursement changes planned. I mean, let's see what if we get into a CTX development program, that might be a trigger for more reimbursement changes. But right now we're covered, we have good pricing, and we have very strong acknowledgement Naturally, now as we see these headwind challenges, as I described, from commercial payers, that's actually a reflection of how we are getting adopted more broadly in the community. Essentially, you can flip it and say it's a positive, and now we just need to make sure that we get the guidance support that will sustain that reimbursement level that we know that we can secure.

17:38 And you mentioned the guidelines support, maybe we can develop a bit on what that means and how you could get there.

17:45 Yeah, absolutely. I mean, this is We're talking about a very serious disease, right? And naturally, we need to have evidence to support us. And the trigger there will be whenever we're going to have enough, then we will be also adopted into guidelines. That's a long route. The company has been pursuing it for since a long time, more than 5000 patients across clinical studies. But yet we have not really shown full the outcome, the utility data through a prospective study. And that's what we are working on. And I'm very confident in saying that once we are in guidelines, I firmly believe we will get into guidelines, then that's going to be the main trigger to have true and full-on adoption here in the United States.

18:37 And you mentioned a prospective study. Maybe if you can develop a bit on that as well and plans for that timeline and so on.

18:47 Yes, absolutely. We have several plans in the making and under progress that will help us with the utility that we need. One of which is this potential IDN opportunity with study activation that was also alluded to and explained in the slide. This is something the company has been working on since quite a while. Since I joined, obviously, I've checked in on that opportunity and I can confirm it's absolutely real and it's very much alive. It's not over the finish line yet, but we're pushing it in the right direction. It's a true partnership. I'm very confident that we will deliver and that idea and study activation will most likely give us in full what we need, but we are naturally supplementing that through additional engagements with other of these academic institutions who are publishing on our behalf.

19:46 And together, over time, this is what will bring us into guidelines. You will need to be patient because this is not something that happens overnight. I am expecting this is going to take several years. Best case, I think two or three years as I look at it. But in that period, we will see revenue and adoption continue. Got it. And a question from a viewer. You mentioned that you are on a solid path towards a potential companion diagnostic collaboration. What has made you more confident and what developments are needed to enable a deal?

20:29 Yeah, good question. I mean, this is the business that I come from, the field I know, but we also have a really strong competence in our organization who've been, you know, there was two experts in building this and have done this. So it's obviously an assessment subjectively made by the company, but it also is conversations that are openly had and taken with the pharma partners. So we know that they are looking into to this being an optionality on their side. It's not the same as I can confirm that it's a done deal. It is not because that is not where we are today, but we are pursuing this. We have multiple programs and we are building up the funnel to become more than two handful over time.

21:20 And then we believe that at least one of them will materialize and hopefully more. So this is also part of why we changed the strategy to be pharma focused first of all, because we know this business, we know the opportunities, and we also know the diligence that you need to put in. And the good thing is that the biomarker, it really delivers, it really works. So I think it's more of a matter of time before we will get into that position. And in your slides, I believe you showed the commercial potential a bit of these CDX collaborations. Maybe we can develop a bit on that and how you would get reimbursed and potential milestones and so on.

22:04 So these numbers are not something that are made up. This is actually from concrete evidence and experience both for myself and also Henrik Winter, who's our head of the pharma business. So he has done it obviously many times before. So we know this is typically what it entails. And so the way that it would work if when a pharma partner would want Divertum to be included in one or the other way as a CDX development, then that's a whole new way of engaging with the pharma partner around a program that would derive the data, but also prepare the assay to become truly launched alongside the drug.

22:51 I've been in this world before and I can confirm that that is a truly exciting place to be. The funding flow is very significant and the opportunity is even higher. But it's not the same as saying that this is a slam dunk guaranteed thing that will happen. But with Henrik and the team, feel comfortable that we're developing the the business the biomarker into that direction and making it a lot more robust we have a lot higher confidence and that's also what you're seeing from the increased number of applications but also the increased number of press releases that we have issued here the past month over the summer this is pharma partners who take a decisive decision. They see the biomarker works.

23:39 They decide to continue to include the biomarker into their multi-million US dollar development programs. And they don't do that just to treat us well. They do that because they see that our biomarker, it works and it can deliver value to them. And our collective responsibility together with Pharma is naturally making this a tool that can make a significant improved benefit for patients. And if we deliver on that, then we are in a completely different company. You mentioned the value of it also for the pharma companies, but maybe if we can develop a bit more, what value do they get? I mean, obviously understanding better how the compound works and so on, but it could be interesting to hear a bit more of what value they get. Yeah.

24:37 So on the pharma side, there are lots of cases, but I would encourage the audience to look at the greatest and largest drug in the world, Keytruda from Merck, how they did this. And there are other companies, Bristol Myers Squibb with Opdivo, both cancer drugs, who kind of initially framed the CDX and complementary diagnostics world. There's a lot of public available evidence on what happens, and we believe that we can do sort of the same. We can make sure that we can lower the risks on pharma in regards to having success with their drugs by potentially even identifying what patients will will have the biggest benefit of their drug, but also at what drug concentration and so many other things.

25:35 And that's the breadth of the opportunities is also what excites me. It's not a one-off, a single trick opportunity. There are a number of opportunities that we are pursuing together with Pharma, and we know that there is a lot of empirical evidence that this creates a lot of value for the Pharma company. And that only happens because it delivers a lot of benefit to the patients. Got it. And we've got a few questions about the rights issue and basically your cash flow projections when they expect to be cash flow positive. Maybe if you can develop a bit on that.

26:19 Yeah. So let's start with the rights issue. Obviously, we are very excited that we have secured this to this part because that significantly risks the overall business case. And we have a few milestones overall that I'm pursuing. I want to bring this IDN study activation across the Phoenix line, because I think that will help us transform the company. And the third thing will be the CDX program. Now, with the capital raise we're making now, I think we're doing it with the highest respect for the existing shareholders. And in that sense, we're mindful of the dilution. We've taken the necessary amount that will take us to the next level. We're not going to comment on when we believe we will be cash flow positive or breaking even.

27:10 And simply because of these triggers that I've just mentioned, there's a reality in the case they deliver and another reality if they are postponed or failing. And for that reason, I cannot get any closer to any timeline. Got it. And you mentioned this a bit, but the timing of the issue right now, maybe if you can develop on that, is it to be able to deliver on your strategy, of course, but why at this specific time?

27:42 Yeah, exactly. Well, as I was saying, obviously, you should raise money when you can, not when you need it. And I think we're essentially in that position. This gives us the time, right? I am fully committed. I know this biomarker works. All I need, essentially, is time to implement the strategy, get the right commercial focus within the company. And with time, I know that people deliver on the milestones that I've mentioned. And for that, to do that, then we decided to raise money now when we can, without being a dire need. And I think that is a very clever I know there can be different opinions on doing this, but long term, this is protecting the company and it's boosting our chances to double down on the success that we have right ahead.

28:40 Got it. And can you go through the reason for the Tempus termination and kind of your view of partnerships going forward?

28:49 Yeah, so we deliberately, I reviewed the partnership and they could quickly confirm that there were no longer that appetite or shared ambition as when the contract was initiated. And for those who have followed the tempers, they also made an acquisition of Personalis. And I think in that mix, obviously, they have a ton of additional new priorities. And I need to deliver on this now. And I don't want to be sitting back waiting for somebody else to maybe make a decision that this is a good idea. I'd rather take the control back and I'm happy that we have done it because now we control our own destiny and following that decision we have been approached by several very interesting potential partners and hence that's also why I'm partly here in San Diego again this week to entertain some of those conversations. But it gives us the the right, we sit on the decision, and I think there's a lot of financial benefit in doing so.

29:57 When will we do another partnership? Maybe, if the deal is right and the opportunity is what we are also seeing fits our purpose. But it might also be that we will go with our partner for the next couple of years, simply because we are seeing that we have so much traction and adoption on our own remit here within our own cost costume and the current organization that we We have a very talented organization, and I'm very confident that these guys, they continue to deliver a lot further before we need to reach out to all the corners of community oncology over here in the United States. So I know that that's a little bit of a vague answer, but I think the lead behind it was a decisive action to take back the power, and that puts us in a much stronger position as of today.

30:54 Got it. And the proposed board is quite a change from the current board. And this is of course an owner question, but can you give your take on these changes and maybe what competences they can add?

31:08 Yeah, you're right. This is not a CEO decision. This is an owner decision. But having said that, obviously, personally sad to see some of the existing board members leaving the board. They have been instrumental in getting us to where we are now. As a company, we owe them a big and heartfelt thank you for the service that they have done for many of them since quite many years. Reflecting on the new board, I think it's actually quite unusual actually for a small company like BioVica to have such a strong competence and especially with three U.S. folks coming into the board. One, George Guy, a very senior strategist, former senior partner from McKinsey, also.

32:02 And we have competence spanning across strategy, financial, investor aspects, reimbursement. So we are going to be joined by two executives who are experts within market access and reimbursement. And obviously those are deep experts within that field, and they can help us also get above and beyond some of these immediate headwinds that I mentioned that we have within the private payers. So I'm very content, very, very excited. I think with the optimized organization that we have, the strengthened balance sheet, now all this competence that will also open up network, you know, I'm very excited. I think the future is honestly very bright when I look upon on behalf of the company.

32:51 Sounds promising. And you mentioned this a bit, of course, but the pros of having a US board, I mean, is it that they can open more doors, have more contacts? Maybe you can give us some practical examples of how they can assist you.

33:07 Yeah, I mean, that's essentially it. I think it's surprisingly when you're in, even though it's a massive country, it's a small, small world within oncology diagnostics. So that means obviously that these professionals, these are experts, who have been executives in the field since many years, have a very good reputation. And following that, obviously, they have a very strong network. And network is power, and network is everything. And network is what will help us accelerate many of the things that we have in our medium-long-term plan also. And that's how I expect that we will be leveraging those competence and those resources in the years ahead of us.

33:55 And you have announced a few master services agreements this summer, both expanded and new. Can you maybe just go through what this means? What does a master services agreement mean and how can you leverage that for the future?

34:10 Let's start with the master service agreement. That's the playing field that we define together with the pharma partner. Then you have work orders, which we also have press release. It was a very busy summer, and I think that is going to continue. Essentially, what it means is pharma deciding for inclusion of our biomarkers. They obviously do a very robust due diligence on us and our biomarker, even before we get to talk about a master service agreement. Then they confirm, okay, this is going to work. This is definitely worth the investments. They're making considerable investments into having the biomarker included.

34:55 And they do that because they see that this is going to de-risk and optimize their potential in having very successful development programs that can become high revenue generating commercial products at the end. And that's what we're seeing. So this is a confirmation of us. It's a confirmation of what the team has done for many years. And it is a confirmation of the fact that the biomarker is highly trustworthy and that it works. And as a follow up, can you maybe give us some more color on the strong growth in the pharma services this quarter and the last year?

35:37 Yeah, I mean, absolutely. I mean, I think this is an option in making also. This is how it looks like. Everybody in this field of pharma, they're all watching each other and they're also publishing. So many of these pharma companies who we're partnering with, they're publishing their studies. And that inspires other pharma companies to look at that and essentially replicate. And that's what is helping us with the momentum. But it's driven by the highly competent team that we have behind. the scenes here at Biobica. There's a concrete example as of Monday last week where we did a webinar together with one of our farmer partners, Biotherics, who did a very strong representation of how they view the biomarker and I would encourage everybody to go and listen to that webinar that will give you a very good insight to what this actually means and also how we can expand. But there were almost 200 registered people attending. And half of those actually gave us consent and actually wrote in the comments, please contact us.

36:54 From that, we actually had a couple of tier one farmers or big farmer who have approached us and wants to hear more about the biomarker. So this is going to continue. We're far from saturated, the number of pharma companies. And as you saw, we have a very good split between tier one, so the big guys, plus 10 billion US annual revenue, and then we have tier three. And typically what happens in this field is when these tier three smaller companies, they see proof of concept and their farmer or their development programs kind of reach to that proof of concept and it's de-risked, then many cases they are acquired by tier one pharma companies. So in that sense, there's a long, you know, longitude effects and livelihood of the overall engagement that we have.

37:45 Because obviously when they potentially would acquire a tier three, they will definitely continue with the development programs. And here we are already included. So just that also will take us into broader coverage within this highly promising world of pharma and CDX development. And you mentioned that in the webinar there was a lot of interest of course and maybe we can expand on kind of how do you take contact with them and how does the process look from that first contact to a potential agreement?

38:23 Agree. So this is a way of strengthening how we think and how we act much more commercially than we have done in the past. So here we are communicating. We are actually asking our dear customers to speak on our behalf and through highly scientific content. And this is the way forward. Science prevails. It's what we live for. And this is then in turn inspiring other pharma companies or oncologists who wants to learn more and they either they reach out directly to us which we have seen a lot of them do and then there's a lot of others who have written in the content in the in the form giving us content consent to approach them.

39:14 So that means here we're seeing almost 200 potential leads. Half of them are very hot leads, and most of them will become actual customers as we now approach them and engage them and present the data that we have. And this is something we're going to continue doing. We have a large conference coming up in October in Boston, the CDX Summit Pharma Focus, where we also have a pharma partner speaking on our behalf and we are currently planning to do a similar additional webinar again in January. So this is a new way of working, a proven model I've worked with in prior companies. I know this is what transforms lead generation and that is essentially giving us the customer expansion and essentially that drives revenue growth.

40:09 Sounds promising and then also this summer, I believe two new publications were published in Clinical Cancer Research, the journal. What type of evidence is this and how can this also assist in your discussions?

40:24 Yeah, I mean, this is what we live for. But also, this is the interesting thing of working with the academic institutions, but also pharma, that they really want to publish their data, their findings. And this is what we have now seen, and that's what we are continuing. to be seen in the time ahead. There will be a number of new publications coming. We have a number of these large conferences where it's typically presented by whoever is behind those publications. So this is how we differentiate ourselves, how we substantiate ourselves. And the power, obviously, is in the data. we have an increasing volume of data and also increasing volume of applications, which I'm very, very pleased to see.

41:18 And I got a follow up question on the on the IDN opportunity that we discussed previously about the about the study and the prospective study and can maybe just go through why why what what's the kind of the purpose of prospective study and and the kind of the evidence level of that compared to other forms of trials.

41:39 Yeah, so you can you can either have, you know, backward looking retrospective study or you can have forward looking prospective study where you follow patients. And here we're looking at a potential study that will be prospective and will have essentially two arms randomized. So you're going to follow the arm where they actually make decisions on the data from Dibutum versus the arm where they don't. And this is assuming that we get the study over the finish line, which is what I'm working hard on doing, and assuming that this study is successful, confirming that once you act on the Dibutum information with thymidine kinase, then there is an improved outcome for the patient.

42:30 And that is clinical utility data. That is what you will need in order to be included in guidelines. And that is what we're working with, not only related to this IDN, but we're complementing it with additional and other study engagements that will further strengthen our position and our clinical utility. Got it. And the final question was about the operating expenses. And you took some costs in this quarter for reconstruction. So what is about operating costs for the remaining of the year? I believe you gave some guidance the last quarter.

43:17 So maybe is there a change to that or the same?

43:23 I'll ask Anders to chime in on that question.

43:27 Sure, thank you. Well, we had 2.2 million in restructuring costs that we took in during the quarter. The annualized savings on that is about 3.5 to 3.7 million, which we expect to come into the quarters ahead of us. On top of that restructuring initiatives, We have a number of cost containment initiatives or cost discipline initiatives that Thijs referred to earlier. For instance, we have reduced the space rented. We are in the middle of a project changing our ERP system. we have started to only produce our reports in English as you saw now that we haven't produced bilingual reports etc. So we'll not give any guidance on how much that will be sort of reducing the current cost base but my expectation is that over time that will start funneling through the P&L and reduce the quarterly cost or operating expense spend quite significantly, but it's not happening overnight. But over time, it will definitely improve our spending patterns.

44:53 Got it. And we're soon out of time. Do you have any closing remarks from your side, Thijs or Anders?

45:01 Yeah, I can obviously start by thanking everybody for listening in and then just reiterate that this is month number five. We've done a lot already in the previous four months. I'm very happy to see the support from our large shareholders. And excited to see how we're going to strengthen the balance sheet because that gives us the time we need to execute on the strategy, which I really am excited about. And I really look forward to keeping you guys updated on progress because I really believe that we have a bright future ahead of us. So with that, I thank everybody for the time here today. Thank you.