Theracryf (LSE:TCF) — Investor Presentation

0:01 Good morning, and welcome to the THERACRYF PLC Investor Presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and they can be submitted at any time using the Q and A tab situated on the right hand corner of your screen. Just simply type in your questions and press send. Before we begin, I would like to submit the following poll. And I would now like to hand you over to CEO, Hugh Jones. Good morning to you, sir. Good morning, Alex. Good morning, everybody. Thanks for attending. I'm Hugh. We've we've probably met before on these screens, and with me is doctor Helen

0:32 Kuhlman, our chief operating officer. We're gonna dwell today particularly on two RNS releases made in the last couple of weeks, really about, what the significance of the IP we've filed is and indeed the significance of, through our, smoothed out manufacturing process, the two kilograms of clinical grade material we've just manufactured readiness for eventual clinical trials. But I'm gonna start with just orientating everybody to THERACRYF. We are we have pivoted to a neuropsychiatry company, and what we do now predominantly is developing innovative therapeutics in specific neuropsychiatric disorders. Because we're public, the usual disclaimers apply.

1:18 And here's the one page summary as ever. We're aim listed tcf.l. We're a classical biotech following a classical biotech business model. The key areas within neuropsychiatry that we focus on are addiction with our orexin one blocker or orexin one antagonist, which is a novel agent and, best in class, we believe, suitable for addictions or impulsive addictions to food, alcohol, and certain drugs. And that program is funded to all the data being ready for clinic readiness by quarter three of this year. That's not very far away now. Our second program within neuropsychiatry is fatigue. We've got a dopamine modulator, fatigue of brain origin. So not gym fatigue, but brain fatigue. And where do you get brain fatigue? Multiple sclerosis, eight out of ten MS patients complain of fatigue, and many of them require treatment.

2:12 Chemotherapy, long COVID even. So there are a number of central fatigues, as we call it, that are suitable for treatment with our DAT inhibitor, which is as yet unfunded to clinic readiness and a legacy program from Evgen days in brain cancer. By way of structure, we're a virtual company. We're very capital efficient. We buy in or use academic collaborations to provide all the data that we require to develop our programs. And because of that capital efficiency, we're still in the top half of all listed biotechs in Europe for our cash runway if you measure it in months of cash remaining. Top half performance in terms of preserving cash. The business model I touched on, we develop assets to early proof of concept or perhaps even early clinical work and then license out and monetize the asset to large pharma or large biotech.

3:06 The team has been doing this for a good number of decades, actually, not just years. We've probably got a hundred and fifty to two hundred years combined experience on the board and the senior team in all the right areas that that are required for running a biotech.

3:26 So the opportunity then. There is a resurgence in interest in neuropsychiatry by a large pharma. Here are some deals including one just a couple of weeks ago, the end of March, which I'm gonna highlight. So these are the prizes that late clinical biotechs can achieve when they're bought out by big pharma. And they're in the billions. They're in the many billions quite often. I'm gonna dwell on one in particular. That's the bottom left there, March of thirty first, where Lilly expressed, it's the first time a major pharma spent a lot of money on the orexin system. That's the same brain system that we interfere with, but the opposite brain system. That's the brain system that regulates via orexin, the sleep wakefulness cycle.

4:13 Lily paid up to 7,800,000,000 with over 6,000,000,000 upfront for Sentessa, which was a nameless a Nasdaq listed, excuse me, a public company with a sleep disorder medicine that interferes with the orexin system. And that was an orexin two agonist, a stimulator of the orexin two receptor. We'll come to it later in Helen's part where we contrast what happens on orexin one versus orexin two when you block orexin one versus when you activate orexin two or indeed block it. The point here is Lily noted at the bottom of that slide that orexin receptor biology is one of the most compelling opportunities. So orexin has arrived as a major target for pharma to manipulate for all sorts of different impulsive or sleep wakefulness indications or disease areas.

5:06 I can't, can't do this section really without referencing our April 14 RNS where we had rejected a nonbinding proposal to acquire, the neuropsychiatry portfolio predominantly. So the reason the board and we dwelt on this in in great detail.

5:26 The reason the board rejected it is very simple. It just didn't give us as shareholders a big enough return, for what we think is the commercial value of these assets. It's really that simple. We can't say any more than was said in the RNS because it's subject, as you'd expect, to confidentiality clauses, but it's just the offer wasn't large enough in the board's opinion, and I it was unanimous, that opinion,

5:54 to to represent the value that we are creating as an organization. And on that value, we have recently done a benchmarking exercise, and that is looking at all brain disease individual product transactions. So this is not a takeout. This is individual licensing deals in the millions in the brain disease space, not platform deals, not company takeouts, just individuals. Preclinically, you get mostly upfront up to $26,000,000. At the end of phase one, beginning of phase two, that almost doubles. On the left hand side there in the other blue color, that's our market cap. It was our market cap when we made this slide. Actually, the market cap is now somewhat larger, more like $8,000,000, but still there's a way to go. And that gap is the gap we tried to, close in terms of value creation in the business. And I think, Hugh, if I can just sort of butt in Sure. Have a question about you because it's sort of representative, I think, of the critical stage we're in at the moment, this sort of transition between being a preclinical asset driven company and a clinical company.

7:05 And that's where you start to get more interest from potential partners is when you have clinical assets or clinic ready assets. But, obviously, you start getting approaches from companies that might see this as a really great cheap deal before we reach that critical milestone. And we're not actually that far off, are we? Indeed not. No. Under the graph there on the left hand side, it just reflects even on upfront payments, you know, the sort of value difference that transitioning to full clinical stage gives you. So and that was part of the consideration that the board took, in rejecting that offer. So, you're absolutely right, Helen. This is a very important inflection point for us. Right. I'm gonna turn back to Helen now to talk specifically about our orexin program and the significance of some of the recent progress we've made. We've made an enormous amount of progress. So over to you, Helen, while I sip this coffee.

8:01 Yeah. So when we're looking at market opportunity, we come from a number of different directions, and one primary is what's the impact or what's the problem to the economy or to the health care part of the economy. And substance use disorders and addiction are a really big problem. They are a real drain to the economy, in pure money wise. So this is representative of couple of UK based facts around alcohol use disorder costing the NHS 3,500,000,000 per annum. And it's also costing in terms of, not able to get people into work, so they can't contribute to the economy in that productive way. Additionally to that, they are seeing a truncated life. So, if you look at the average lifespan, people with addictions are living on average around twenty years less than someone without an addiction.

8:57 So it's impacting people personally, and it's impacting the economy. And so from a patient perspective as well, there's not really anything out there that helps, people that suffer with addictions. And, it's known I had a a conversation with a a KOL, key opinion leader, not so long ago, who says even those people that managed to get clean, over eighty percent of them relapse within six months after getting clean. So it's a real and growing problem globally, not just in The UK, but massive market, obviously, in The US as well. So if I can get my cursor to work, I can oh, thank you, Hugh. So reflecting back on our portfolio, we have, the orexin blocker.

9:46 So talking about the orexin system, this is addressing the orexin one receptor. So the orexin one receptor is involved in this aberrant reward seeking behavior, and we're looking to interrupt that to alleviate that sort of dependence part of the addiction. If you hit the orexin two receptor, then that's what's involved in sleep. And in a very important part that we'll cover later is in the development of your drug, you want it to be highly selective for the orexin one receptor because you don't want to create any sleep issues, namely somnolence or sedation when you're trying to help people, not be addictive to their addictive substance. So our beachhead, that's our primary indication where we already have a preclinical proof of concept data is binge eating disorder, but the mechanism that would also be appropriate for alcohol use disorder, cocaine, opioid, a myriad of addictions.

10:43 The, value we see in this compound ourselves is that we really have a potentially class leading program here, and that's in the selectivity for the orexin one receptor and, the sort of potency of the compound. So how, well it is exerting an effect and how it can address, the receptor occupancy is called. So it needs to exert an effect during the course of the whole day,

11:11 and through into the evening. So you don't want any breakthrough addict addictive behaviors coming out, and we really, feel that the profile we have does that. So on the second program, this is currently unfunded, but also very, high

11:29 potential commercial potential area is in this it's called apathy. The Americans like to call it apathy. We call it fatigue or or central nervous system fatigue. So as Hugh mentioned, this is not going to the gym and getting a bit tired. This is a real brain fatigue. People are lacking motivation. They can't get out of bed. They can't go to work. And it's really highly prevalent in number of, other diseases, and we are looking at multiple sclerosis as our primary indication. And that's because over eighty percent of all MS patients suffer with fatigue, and they're looking at their clinician to provide some relief. And there is currently no licensed drug that can help them. By having a drug which modulates the reuptake of dopamine in the synapse, we create a gradual increase, in the brain, which provides this sort of uplifting,

12:23 feeling, but without having a spike, so without being a stimulant like feeling. And so that's really important here for the profile. We want something that gives back the motivation, but we don't want it to be a drug of dependence, which would create, other challenges in further development.

12:45 So I've mentioned the mechanism. We're addressing the orexin one receptor in a very selective way. We are almost 2,000 fold selective for orexin one over receptor, two, so we are hoping when we get to the clinic, we won't see any sedation in people and indeed in patients.

13:05 We mentioned a number of addictions. It's known through the literature that the orexin one system is over activated during the dependence process, so when people start getting addicted to a substance and throughout, and that's really, providing this reinforcing stimulus to people, throughout their addiction. We've got proof of concept data in a binge eating model in the rat, and we are currently in our twenty eight day tox study. So the very final toxicology studies that we need to create are sort of clinical data package to get approvals going to clinic. We are partway through that. We we in the recent r and s, we made an announcement that we had started dosing this month. The twenty eight days is actually, this is the last week of that twenty eight days in the first species.

13:56 And, we have all the evidence so far to say we've got a very well tolerated and clean compound in our dose findings. So before we started this study, we had to be a dose range study where we went up to one gram per kilogram of body weight, and that's the sort of ethical maximum that you get from a regulatory perspective. And we didn't see anything of concern in those studies, which is really, really encouraging and gives us a high confidence this time.

14:27 So I know, maybe people don't get so excited about the science, and they get more excited about hearing around the deals. And we, you know, can talk more about potential partnerships that we would look to be doing. But I don't want it to track it any way from the substantial progress that we've made with this program over the last twelve months. Since we secured funding, we've set up a partnership with who's been an amazing,

14:56 manufacturing, and toxicology partner out in China. They have, managed to optimize our process for manufacturing this compound, And they've also manufactured at great scale, so 10 kilogram scales. That's huge amounts for us to be able to conduct our toxicology studies, which is no sort of main feature really when you think prior to this, we'd only made gram quantities, so that sort of lab bench quantities. And

15:26 sometimes companies find that actually the process they have for making those, r and d type quantities are not scalable, though they don't translate to making large enough quantities. And and that's a commercial killer, development killer for a program. So we're really, really pleased that we've been able to scale up to that 10 kilogram scale. And in doing so, the scientists, the chemists over in Farmaron managed to find some really novel ways of doing this. So novel ways of improving the process such that our IP advisers identified a number of, novel steps within that route that we could have possibly patented, and we've chosen to patent, on the first basis, the strongest, part of this optimization.

16:14 And we released that RNS, quite recently. And, I don't know if I'm getting ahead of myself, Hugh, whether we've got other slides just on those RNSs, but maybe we'll move on. So we see, obviously, with the 28, tox, us coming to the conclusion of our preclinical program, and that that will all read out towards quarter three, end of quarter three this year. And that will enable us to have the data, if we were able to put it together into what's called an investigator brochure, that goes then to the regulators, and you get an independent validation and approval of your data, to take it into human. We've also made in GMP. So GMP is a really highly regulated process, and it's in a totally different laboratory setup under strictly regulated conditions, two kilograms of product, which is what we call it human grade materials, so GMP, good manufacturing practice.

17:19 But it's where you have two operators each checking each other's work. You know, you have batch records of all of the batches. You have very stringent conditions within the laboratory, much higher than we had for that 10 kilo batch. So it's two kilo. Although it's smaller, it's been done to a much more stringent manufacturing process that's applicable for human consumption. So that's very important, obviously, milestone for us to reach as well. I don't know if I've I've missed anything on this slide, Hugh. My my even with my glasses, it's hard to It's a busy slide, it's fair to say. I think the the overall impression we wanted to give you from this slide is we release every by RNS or reach every major step in the process. We have this transparency policy.

18:05 So every time something good happens, whether it's highly technical or not, we have a policy to release it. So what we've seen here is a a series of releases over about a nine, twelve month period that shows you the incremental progress we're making on this program. And the program's going very well under Helen's management. I wanna dwell a little bit on what what commercially, perhaps, a new manufacturing process patent means, Helen. So we didn't touch on that in the busy slide, but let's dwell a bit on this be as we bring this presentation to a close. Yeah. So we exist, really. So our partnering is all about how much is this worth to our partner. And, ultimately, the partner's looking at how many years exclusivity can they have on the market. So once they've got approval for a commercial product, how many years can they sell that product without a competing product being able to come to the market in a road that market position?

19:05 And that's where IP comes in and is is deadly important for us. So we have composition of matter on the original, Orexin asset that we have, and that gives us twenty years protection from the time of filing it. So we have another roughly twelve, thirteen years in multiple jurisdictions left on that composition of matter. But you have to look that we've got further clinical development to go before we can get approval for commercial, sale. So how how many years do you then have? So you're always trying to add to your, IP estate to give you further exclusivity. So the manufacturing pattern is really important in that. By filing that this year, we have the potential to gain another twenty years of protections. That's exclusivity.

19:57 So even if you go to the market in five years' time, you would have fifteen years of market exclusivity to really kind of recoup and build your revenue on that product. So that's how important it is. And we'll be looking for other opportunities to provide additional patent coverage, and patent exclusivity around this asset going forward.

20:20 Great. So a really powerful message for partnering as well. I mean, it just reassures partners that you've got the maximum protection possible, which is our job. Our job is to optimize the asset for our business model, which is ultimately to partner it for the right money. The other one is, you know, two kilograms. So you made, you know, two bags of sugars worth of material. You dwelt on the GMP process there, but, I think it's worth highlighting that making two kilograms first time correct over, over a yield. Anyway, you you cover that one, Helen, about the the the why we why we feel so pleased about making two bags of sugar. Yeah. I mean,

20:59 when you think each of these steps so the the scale up that we did, we went from the grams to half a kilo to 10 kilograms, and then we came back and we did this two kilogram at GMP. We've not had any failures, in process in manufacturing process. We've not had any rejections. We've not had to go back and redo any part of the process, which is something you do find often when you're going with a new manufacturing process. We got

21:29 higher yields with the 10 kilo and this two kilo than we were expecting and we had targeted of really nice, pure product. So it's really satisfying. I think we got 2.57 kilos, at the end of this campaign. And when you're kind of placing an order for two and you delivered more, that's really satisfying. You're always like, you know, buy one, get one free. Very good. So

22:01 the summary then, is we've got a class leader in the orexin one blocker in these, substance use disorders and compulsive behaviors. The market's already worth over $40,000,000,000. That's the addiction market in total, and it's growing to over $70,000,000,000 over the next seven years or so. This is a very dull bullet we wrote. Preclinical studies progressing to schedule. You know, there are lots of slings and arrows in biotech, and very often these things don't work to schedule. This is a remarkably smooth progress that we've made on this program, and we're very pleased to report that the program is on schedule. We've generated some upsides from the program, particularly on protecting the asset even further than the industry standard protection we've already got.

22:47 So it's an upside deal. This are on budget, though. It's not cost us anymore. We are on budget for the program. It's going very smoothly, and we'll conclude at quarter three where all the data are in house. So a big milestone, full data package ready for submission in quarter four. So that, I think, concludes the formal part of the presentation. I hope we've managed to get over our enthusiasm for the program. The reason it's our priority program, the reason it's the one that drives all the value and in the board's estimation, when we refocus the business into neuropsychiatry, this is why. We think we've got a winner on our hands here, and the winner is behaving itself in the last stages of preclinical development in in not only that, we're making more than we thought we would make, and we've got more protection than we thought we would have for the asset at the outset of the program about a year ago.

23:46 So we're focused on neuropsychiatry. We're financed to deliver a major asset in neuropsychiatry from a data point of view. And we're flourishing in the sense that we are, generating upsides on this program. So, Alex, that that's the formal part of the presentation done. You know, over to you now for, highlighting that we're going to the next stage. Perfect. Thank you very much indeed, Hugh and Helen, for your presentation. Ladies and gentlemen, please do continue to submit your questions using the q and a tab situated on the top right corner of your screen. And, Hugh, I may just hand over to you to read out those questions where appropriate, and I'll pick up from you at the end. Thank you. So there's there's couple of presubmitted questions, and we'll deal with them. And we try to deal with all questions on these webinars.

24:34 Clinical readiness, we've highlighted for the o x one program. What should investors be watching for over the next few months in terms of milestones? Helen, do you wanna cover the the big milestones remaining for us on the IND enabling program? Yeah. So I mentioned that we we've already released. We started the twenty eight day talks. That is there is a number of studies ongoing at the moment, but, I mean, that is the critical one that needs to be completed. And I think maybe the calling it twenty eight day tox, people think it's over in a in a twenty eight days, and it unfortunately, it's not. So you sort of you have a run into that dosing period. You dose for twenty eight days, and then the animals recover for another twenty eight days. And then you have to analyze all of the data and tissues coming out of that. So it is a sort of three pump end to end process. And we are obviously doing it in two species, which were nearly at the end of the first twenty eight days of the first one, and the second one starts next month. So like I said, we should all be complete source towards the end of quarter three with all of that data.

25:38 Excellent. And on target as ever. Thanks to you. The next question is we're describing the o x one blocker as potentially class leading. What data or characteristics differentiate it from other orexin targeting drugs? I'll cover that one if it's okay. It's a bit of variability. So class leading. What what what are the characteristics of the orexin blockers, and why is ours, we believe, the best? The, main characteristic of our blocker is that it is the most selective for the target we want to hit. If you get off target effects and all drugs have off target effects. If you get off target effects, in this case, the orexin system, the off target effect is predominantly blocking the the receptor two when we don't want to. We wanna block receptor one to reduce the impulsivity. As Helen said, if you block receptor two, you get sleepiness.

26:28 We don't want that. We are the most selective by a large factor on blocking one and not blocking two. That's the big, big win with this molecule. There are other things as well. It gets into the brain readily. If you're interfering with the brain system, you wanna make sure you get there. It very readily gets into the brain. It's very potent. That is, it works at very, very low concentrations. That's also very important from a dosing and getting in the brain point of view. And it doesn't interact with anything else major. So these off target effects are not just the orexin system. You can have off target effects on any other body system. We don't have them. Not at the sort of potency that we have for the orexin one receptor. So that's what we think is class leading. Minimal potential for sedation, not hitting any others, and getting to the place where it needs to work and sitting there for long enough.

27:20 Those are the three big things that we believe make this class leading. So the next one, there's, I think, a few that are in the same vein or just flicking down. So the given strategy to out license early, are you already in discussions with partners, or is that something you expect to progress closer to clinical data? And I think there's a couple of similar ones further down. I'm just looking at it. Yeah. We're always in conversation with potential partners that we believe might be interested in these assets. And, you know, I have a number of relationships that are we meet up at conferences. We provide updates with with data. We obviously do get into further conversations as you've seen. We've rejected an offer. So sometimes those progress into more concrete discussions.

28:10 Often, they'll say, well, we're interested, but we'd like to see this data or that data, and therefore, you know, we keep in touch. So I know it seems trite to say we're always in conversations, but but we are. And it's just getting, one, them at the right part of their strategy that they feel compelled to make a deal. Two, that that deal is the right value. And three, there's normally a trigger point. Right? You've reached a certain data point. Normally, the twenty eight day tox actually is a really critical data point for these kind of discussions. So, yeah, sometimes they'll want clinical data. Sometimes they're happy with preclinical data. But, so I I think I'm I'm answering it. Not answering, but the the fact is we're all you know, it's an ongoing part of the job is to build those relationships and keep potential partners updated.

29:02 Uncovered by confidentiality agreements. So, obviously, we can't breach those agreements. Otherwise, things fall apart very quickly. And that covers a couple of the questions, which we will deal with specifically, in this part of the session. There's a very good question here on a broader context, and thank you for it. What's the board's preferred model for financing the company going forward? And, of course, at the moment, we're not financing the company going forward. We've got the money in to to generate this data. But, there isn't a preferred model. We're looking at all the strands of financing the program going forward. That is, you know, dilutive and nondilutive funding. And when we can say anything specific and concrete, of course, we will. It's an obligation for us. It's a legal obligation for us. So we've got another one, a rather predictable one, I'm afraid.

29:52 The first part is two questions in one. Why did you not disclose how much the offer was when you issued an RNS? Because we couldn't. It's covered by a confidentiality agreement with another major party. If we were to breach that confidentiality agreement by outlining the a complex offer for the neuropsychiatry portfolio, we'd be breaching any number of, legal clauses. So we can't. We couldn't. And we're advised closely by our nomad and by our legal counsel. And, of course, they would say, look. You're prevented from doing this. All I can say is, it was an upside. It's just that upside wasn't sufficient in the board's opinion based on the value we think we've got in this asset and the other asset that comes along with it.

30:39 Have you reduced your excess salary? I don't have an excess salary. It's this question comes up from the same person every time. There's a Simply Wall Street article on this subject, mine mine specifically, which was published middle of last year, which says I'm 30% below market norm for AIM listed companies. So go and have a look. All this information is public. Have a look. It's not excessive, sir. You're wrong. I don't I don't believe my salary is excessive. It's not published, but I can't afford to fixed. So but I can fix that, then maybe I might consider myself. Maybe that's a good segue to talking about our compensation philosophy. Got we've got an option scheme. It doesn't, doesn't vest at all until we get many fold increase in the share price over the offer price of the beginning of twenty twenty five.

31:28 And it only fully vests, and management are all in the about 15% of the issued capital is covered under the option scheme. It only fully vest when we get a 10 x. This is public. When we get a 10 x increase in the share price over and above the offer price of quarter one twenty twenty five. So everything we do is as economic as possible, including our personal remuneration, because we're driven to unlock this value. And our alignment with shareholders is entirely driven by share price. The, the way we bridge our low salary gap, and everybody's on below market rate, by the way, is by aligning ourselves with the shareholder and making sure that if you win, we win as well. And we don't take that much money out of the business to make sure that the majority of it, and it is the vast majority, is spent on unlocking the value of these assets.

32:23 A complex and sensitive topic. Would the board agree they're buying shares in the open market? We send a powerful message of support. No. Actually, the board doesn't agree. We, we can't even if we could. So we are guided by our Nomad and our legal provider, our legal counsel. So whilst it might have the effect for you, sir, I'm afraid we still can't until certain points. But the board has always purchased shares when there is a fundraise, every single one. I've put in a 6 figure sum into this company of my own money. I've been diluted like everybody else, but we still, as a board, continue to invest in the company with our own money as well as being rewarded, as you'd expect to be in a professional role of the share price growing.

33:13 So the next one is about Stellicola. Can you tell us about why you never got the money from Stellicola? So I think we've covered this a number of times. We're in dispute. We've issued a dispute notice. We believe we've triggered the milestone, and they have refused to pay it. I think that's about as clear as we can get. We are in a constant conversation, let's say, between the management teams trying to keep the lawyers out of it as much as possible because that makes it very expensive. Currently, they have not been able to get their own fundraising away, so they don't have the money, I believe, to pay us even if they weren't in this current dispute. Taking them through arbitration would cost us more than the milestone is worth. I think we've said this before. We don't believe that's in the shareholders' interests, and that money is earmarked for progressing our programs and hopefully hopefully gaining value from those programs.

34:15 But we are always attempting to resolve the dispute. And I wanna position SFXO one appropriately to where it is in our priority level. We just we don't count any of this little deal as material anymore. We've focused this company on what we think are much larger markets with lower risks of technical success. We think the technical success of o x one is very high indeed. We're not in high risk indications like some of the cancers are even though we're still, looking after s x o f SFXO one in in a cancer study funded by the Dutch government. So we're not funding it ourselves. We are producing goodwill into that alliance, but it's somebody else's pain. The SFX one is an increasingly small part of the value proposition of this company, and are the vast majority of it. So we whilst we manage the relationship, we're trying to resolve the dispute. We serve them a formal dispute notice.

35:19 We don't think it's particularly material anymore. A technical question. Good. Thank you. How quickly after taking a dose of o x one does it exert its effect, and how long would a course of therapy be? Well, Helen, you're the expert there. How quickly does it work, and how long do you have to take it for? Well, there are some predictable I mean, he so pharmacokinetics, it would work almost as soon as it get into the brain. However, I think, really, to feel, fully feel that effect, you're probably talking, you know, days, if not week or so of dosing before you you get full full control. For, let's say, for a phase two paradigm, the dosing schedule would be twelve weeks. And probably when you change medicines with your doctor, if you if you ever take a medicine, they'll say, oh, let it let it go for six to eight weeks, if not three months, and then we'll see how you feel. And and that's really, the case here. So it will get absorbed through the through the gut, and that normally, then peaks at about two hours.

36:25 It gets rapidly into the brain. So within a couple of hours, you'll have an effect on those receptors in the brain. But from a dosing point of view, you will be looking to take this chronically, so on an ongoing basis. If you have an addictive problem, you will you will take it for however long you need to. At the moment, there is no rationale for having breaks. So sometimes you see breaks in dosing to give yourself sort of a rest or washout period before going back onto drug. But, at the moment, it doesn't look like there's any toxicology, that's presenting itself that would require a washout, but things like that really only make themselves known as you go through clinical development.

37:13 So thanks for that one. The next one, at what stage do you expect to partner your assets with larger pharma companies? And I think we've covered that one in in an earlier question, as Helen said. The the conversations are always ongoing. Some people want a particular stage before the conversation gets serious. Some people are willing to engage at an earlier stage, and we have that engagement from another company, which we refused to, accept because we didn't think the money was enough. So constant is is that, and say some people are prepared to do it early, some people later. Next question, Helen, this is for you. Number 12, I think. Has dosing started? Yeah. Has the twenty eight day tox study started the second species? No. It's scheduled for the second week of May. The only reason it didn't start along with the first species is the facility availability.

38:04 So this is a larger species than the first species, so it needs different conditions. And the slots were available at this time. We could have done it earlier in a different facility, but it hadn't been it hadn't been, oh, sorry, audited by, the major regulators. So you get facilities audited by the FDA, MHRA, things like that, which then, you know, give you obviously confidence in the facility, but it gives your data confidence when you need to submit it for clinical authorization. So that that it was schedule availability for for it starting in May. Yeah. And it's fair to say, the schedule we've published about all the data being ready by quarter three is still on schedule. So the start of that is not rate limiting.

38:50 It will all deliver when we said it will deliver. Next one. Will you consider outbursting earlier stage assets to fund later stage ones? Yeah. Yeah. We are in a number of discussions on, on assets. So, yes. And when there's progress as ever or if progress is terminated as we did in early April, we will, of course, let the market know. And another one, highly related, I think question 14, Are you in active discussions with any other potential partners? Well, I think we've covered it. We can't be specific, but, we're always in discussion with potential partners. We go to all the major partnering conferences. We've in discussions with partners outside of those partnering conferences, where there's kind of speed dating going on between companies who want to collaborate.

39:42 So we are in active discussions with others. Yes. I think yep. I know more questions popping up. I think we've deal dealt with all of them as is usual. So to finish then, we have pivoted the company to what we think are higher gain assets. That is assets that will ultimately produce a much higher shareholder return. We're working very hard on delivering those assets on schedule, and we're working very hard on the partnering effort that is our business model. So in summary, we are on target with the EurexinOne program, the biggest value driver in the business by far. We are very pleased with the technical progress, and hopefully, we've given you a sense of that technical progress this morning.

40:34 And we're pleased that there is interest in the orexin system overall as we predicted when we changed direction. There is big pharma interest. There is biotech interest in the system that we identified many years ago as being a potential breakthrough brain system. So it's going well. We're still focused on neuropsychiatry. The financing is going well. We're on budget. So we're flourishing. We're getting a lot of interest in these assets on the company. Thanks very much for listening, Alex. I think that's all from us for now. Fantastic. Thank you, Helen. Thank you very much indeed for updating investors today. Could I please ask investors not to close this session as you now will be automatically redirected to provide your feedback, which will help the company better understand your views and expectations.

41:21 On behalf of the management team, we would like to thank you for attending today's presentation, and good morning to you all.