Fulgent Genetics, Inc. Price & Performance (FLGT)

The company's press release discussing the financial results is available on the Investor Relations section of the company's website ir.volgentgenetics.com.

Replay of this call will be available shortly after the call concludes on the Investor Relations section of the company's website. Management's prepared remarks and answers to your questions on today's call will contain forward looking statements. These forward looking statements represent management's estimates based on current views, expectations and assumptions may prove to be incorrect. As a result, matters discussed in any forward looking statements are subject to risks, uncertainties and changes in circumstances that may cause actual results to differ from those described the forward looking statements.

Assumes no obligation to update any of the forward looking statements it may make today. Reflect actual results or changes in expectations. Listeners should not rely on any forward looking statements, predictions of future events, should listen to management's remarks today with the understanding that actual events, including the company's actual future results, may be materially different than what is described in or implied by these forward looking statements. Please review the more detailed discussions related to these forward looking statements, including the discussions of some of the risk factors that may cause results to differ from those described in the forward statements contained in the company's filings with the Securities and Exchange Commission, including the previously filed 10 ks for the year ended December 3120 subsequently filed reports which are available on the company's Investor Relations website. Management's prepared remarks, including discussions of earnings and earnings per share, contain financial measures not prepared in accordance with accounting principles generally accepted in the United Or GAAP? Management has presented these non GAAP financial measures because it believes they may be useful to investors for various reasons, but these measures should not be viewed as a substitute for or superior to the company's financial results prepared in accordance with GAAP.

Please see the company's press release discussing its financial results for the fourth quarter and full year 2024 for more information including the description of how the company calculates non GAAP income or loss, earnings or loss per share, non GAAP gross profit, non GAAP gross margin, non GAAP operating profit or loss, and margin and adjusted EBITDA Any reconciliation of these financial measures to income or loss earnings or loss per share and operating margin. The most directly comparable GAAP With that, I would now like to turn the call over to Ming.

Thank you, Manny. Good morning and thank you for joining our call today.

I will start with some comments on the fiscal year twenty twenty four. And our two business lines, Then Brandon will review our product and go to market updates for our Lab three service business in the fourth quarter, and 2024. And Paul will conclude with the financials and outlook before we take your questions. We are pleased with our results for the fourth quarter and the year. We have shown growth in laboratory service business for the year and have good momentum in 2025 as we continue to invest in business. In our therapeutic development business, we now have a clinical pipeline In 2024, we begin a Phase two clinical trial of FID-seven in combination with cetuximab in patients with recurrent metastatic head and neck, cicomarsal So far, we have dosed 17 patients in this trial and are very encouraged by the preliminary results [indiscernible] we anticipate to publish at an upcoming ASCO meeting in June. We expect to complete enrollment up to forty six patients by late twenty twenty five. We'll continue to estimate the total clinical trial cost for the Phase II trial to be approximately $10,000,000 Our second clinical candidate is 38 treatment of solid tumors including potentially colon pancreatic We submit an investigational new drug application to U. S. FDA in December 2024 and it was cleared in January 2025.

We expect to enroll the first patient in a Phase one trial in the second quarter of twenty twenty five. We expect trial cost for the Phase one and 1b trial is approximately $8,000,000 As a reminder, our drug candidates were formed with our normal nano encapsulation technology, which includes many issued active patents equity patent applications. And the target therapy designed to improve therapeutic windows and pharmacokinetics profile of both new and existing cancer drugs. I'm excited about the progress we're making in our clinical pipeline and the potential for both FID-seven and FID-two to two.

Left.

And I hope we will be able to provide additional treatment options to further their lives. Our anticipated cost for this program is very reasonable and we believe our investment of will be rewarded. Finally, we have made a significant advancement the development of antibody drug conjugate using our novel patent linker and payload platform technology. In preclinical study, we've observed our ADC have better efficacy over various tumors with a broad range of targeting antigen expression level when compared with some of the upper ADC benchmarks on the market. At the same time, ADC honing a novel target using our novel platform tech technology are also being prepared for the goal of generating leading candidates for the clinical trials. Overall, I'm pleased with the growth [indiscernible] year over year in our core laboratory services business, and the progress we have made with our therapeutic development business. We're continuing to be in a strong financial position to ex execute our strategy. I would like to thank our employees partners and the stakeholders for your hard work and loyalty in a great year for our business. We look forward to further progress in 2025. I'll now turn the call over to Brandon Perdis, our Chief Commercial Officer, to talk more about our laboratory service expenses. [indiscernible] Thanks, Ming.

It was another strong quarter for Fulgent and a strong close to the year.

Delivering fourth quarter growth of 14% year over year and 6% growth sequentially. In addition to slightly exceeding our annual core revenue guidance $280,000,000 Throughout the year, we executed on both the commercial and operational front I'll discuss each as we break down and reflect on our three business areas within laboratory services. First, anatomic pathology had a great quarter. Growing sequentially 9% as a result of our revised go to market plan. We believe this quarterly growth out the market. Did scale the sales team throughout the year and plan to continue to do so in 2025. This team was successful in driving new business by taking our excellent turnaround time and quality to physician clients who are not receiving the same level of service from their previous lab. To put it in perspective, it was not uncommon for our sales team to uncover accounts were receiving two to three week turnaround time from another lab while we were delivering two to three day turnaround time. [indiscernible] Our sales team has built a robust pipeline of opportunity which we believe will lead to continued momentum.

Addition, took several steps throughout the year to improve operational efficiency. Including relocating our lab to our recently purchased building in Capell, Texas, and consolidating our New York lab Overall, we're pleased with the performance of our AP business and are optimistic Turning to Precision Diagnostics, this area continues to expand, delivering fourth quarter growth of 23% year over year while flat sequentially. The sequential performance was in large part due to the timing of several new client wins that were pushed into early twenty twenty five. Reproductive helped outpace some of our other tests due to the market adoption our Beacon expanded care screening product.

Even with the strong growth in Beacon, we consistently delivered on our turnaround time and maintained exceptional quality. This is a true testament to our technology platform and operational excellence. We also recently launched a significant new product. Exome and Genome RISE. RISE stands for RNA Integrated Sequencing Evaluation. With this service, we are co analyzing the DNA and RNA which could potentially increase diagnostic yield by as much as 30%. Integrating DNA centric and RNA centric analysis maximizes diagnostic utility by assessing the RNA level impact of coding regions, slight slight changes and variance in non coding regulatory regions, of phenotypically relevant target gene. This is a significant improvement and is the first major advancement in home and genome testing in several years. Our rollout has seen significant interest from clients and we believe this may be a paradigm shift how we diagnose rare disease. Our newly launched novel NIP test Nova is performing well with our early adopters. Clinicians are realizing the value of a test that combines anti microdeletions and de novo point mutations leading to higher detection rates for severe genetic conditions. The focus in 2025 will be to build out the sales team to create additional awareness Within our precision diagnostics space, recently announced a very exciting new partnership with Foundation Medicine.

Via this new partnership, Foundation Medicine will be launching two tests Foundation one germline and Foundation one germline more.

Both tests are powered by Folders proprietary technology platform and analyzed single nucleotide and copy number variants. When combining the Foundation Medicine's comprehensive genomic profiling test Foundation one CDX [indiscernible] FoundationOne Heme and FoundationOne RNA germline testing supports healthcare providers building a more comprehensive molecular profile for their patients. Foundation Medicine is one of the largest providers for tumor profiling services and we are excited to partner with them to bring these germline tests to market.

Foundation Medicine plans to begin accepting orders for these tests in March. This is the second partnership we have launched for germline oncology testing after previously announcing a large win with the VA hospitals.

We are optimistic these wins can be transformational for our oncology volume. Our biopharma services had an excellent quarter delivering 56% growth quarter over quarter going from $3,900,000 in the third quarter to $6,100,000 in the fourth quarter. As we mentioned in previous calls, our capability biopharma services have drastically expanded allowing us to address many more client research studies. These capabilities include high demand services such as proteomic, Translodomic spatial biology and more.

While we still see some large swings quarter to quarter in this business, is our hope that in the near future we can hit a steadier state of growth leveraging an expanded client base and pipeline of opportunities. In closing, we are pleased with our performance in both the fourth quarter and the year.

The growth we witnessed this year was organic. Leveraging our expanded laboratory capabilities sales team performance and strategic partnerships. That said, we continue to evaluate opportunities for M and A and believe our strong balance puts us our strong cash balance puts us in enviable position.

And we look forward to another great year in 2025. I'll now turn the call over to Paul Kim, our Chief Financial Officer.

Paul?

Thank you, Brandon. Full year core revenue, which excludes COVID-nineteen revenue, totaled $281,200,000 growth of 7% compared to revenue of $262,100,000 in 2023, slightly exceeding our overall guidance of $280,000,000 The full year revenue from our three revenue streams was as follows: 168,000,000 from Precision Diagnostics $97,000,000 from Anatomic Pathology, and the remaining $16,000,000 from biopharma services. 2024 GAAP loss was $42,700,000 dollars or a loss of $1.41 per share. We had non GAAP income of $15,000,000 or $0.49 per share for the year.

For the quarterly results. Revenue for the fourth quarter totaled $76,200,000 compared to $70,500,000 in the fourth quarter of twenty twenty three. Revenue from COVID-nineteen testing is negligible. Revenue from our core business totaled $76,000,000 GAAP gross margin was 41.8% and non GAAP basis was 44.2% Gross margins improved Over the course of the year and sequentially, showing the benefit of our continued efficiencies and streamlining of our business. Now turning to operating expenses. Total GAAP operating expenses were $48,000,000 in the fourth quarter compared to $43,900,000 of 2024 primarily related to reversal of legal accrual and lower R and D spend in Q3. Non GAAP operating expenses totaled $37,000,000 compared to $32,900,000 in the third quarter of twenty twenty four. Non GAAP operating margin increased approximately one percentage point sequentially to a minus 5% primarily due to higher revenue and gross margin.

Adjusted EBITDA income for the fourth quarter was approximately $774,000 compared to a loss of $6,800,000 in the fourth quarter of twenty twenty three, On a non GAAP basis and excluding equity based compensation expense, and intangible asset amortization, income for the quarter was approximately $1,200,000 or $0.04 per share based on 31,200,000.0 weighted average diluted shares outstanding. Since the end of the fourth quarter, as of today, we have repurchased approximately 185,000 shares at an aggregated cost $3,100,000 As of today, a total of approximately $147,000,000 remain available for future purchases of our common stock under the repurchase program.

Turning to the balance sheet, we ended the fourth quarter and the year with approximately $828,600,000.0 in cash, cash equivalents restricted cash and marketable securities. The increase over the third quarter is primarily from federal tax refund received in the fourth quarter. Moving on to our outlook for 2025.

With minimal future revenue from COVID-nineteen testing, it expected, we're guiding to core revenue, which is total laboratory service revenue for the company without COVID-nineteen we expect total core revenue to be approximately $310,000,000 for 2025, representing core growth of 10% year over year.

We expect growth for this year in all areas of our core business which include precision diagnostics, anatomic pathology and biopharma services. With recent customer wins, we believe reproductive health testing remains strong and help drive growth in precision diagnostics. Anatomic pathology experienced a decline in 2024, but ended the year with strong fourth quarter. We believe this momentum will carry into 2025 although we expect variability from quarter to quarter as these services are dependent on patients being treated by healthcare providers, The biopharma services, which we sell to pharmaceutical businesses, it is dependent on those partners. So it may be variable from quarter to quarter. We have been building this business and expect moderate growth. The expected 2025 revenues from these three areas of the business are estimated as follows: dollars 187,000,000 from Precision Diagnostics, dollars 106,000,000 from anatomic pathology and the remaining $17,000,000 from biopharma services. Turning to expected margins for twenty twenty five, excluding COVID-nineteen, stock based compensation, we expect non GAAP gross margins for the full year to slightly exceed 40%. Continuing the strong momentum we've experienced in recent quarters. We expect to see lower non GAAP operating margins at approximately minus 15% for the year as we continue to invest in business growth.

Develop further laboratory operations and enhance our existing laboratory facilities, We remain focused on managing our spend and continue to believe that our foundational technology platform supports a strong margin profile longer term. We expect associated cash burn for our therapeutics development business of approximately $25,000,000 this year which is contemplated in our EPS and cash guidance. We expect our GAAP EPS to be a loss of approximately $1.95 per share excluding any future one time charges, using a $32,000,000 average share count. Utilizing a non GAAP tax provision and average share count of $32,000,000 we expect our full year 2025 to be at a non GAAP loss of $0.65 per share Excluding stock based compensation, impairments and amortization of intangible assets as well as any one time charges. Finally, our cash position remains strong. We focused on a efficient capital allocation that allows us to reinvest in our business, fund key initiatives and support future growth. Excluding any stock repurchases, or other expenditures outside the ordinary course, which could include M and A, we anticipate ending 2025 with approximately $780,000,000 of cash, cash equivalents and investments in marketable securities. Overall, we see strength in our core business, which has grown both organically and through strategic acquisitions as we see good momentum in the years ahead.

Thank you for joining our call today. Operator, now you may Our first question is coming from David Westenberg from Piper Sandler. Your line is now live.

Hi. Thank you for the question. I got a few So I'll just start with Ming Shey and the key milestones to look for in FID-one hundred and seven endpoints and whatnot.

Why the clinical trial is only going to cost $10,000,000 and what we should expect at ACOG? And then just finally, you see head and neck as the biggest opportunity or are you more excited about the the indications afterwards?

Yes. Thank you, David. That is a great question. The cost for the clinical trials we we expect to enroll about 46 people. [indiscernible] average around $200,000 per patient and that's about the calculation. I think it's pretty much on track with our spending so far. So that's for the head and neck cancer. We are very encouraged with preliminary results. As Dave you remember, last year at ESCO, we published the data for the FID-seven single agent for treatment of head and neck cancer and we showed very promising results at the last year's ASCO conference. And this year, we [indiscernible] a bit more better time in June. In the combination with the cetuximab. And we see the great synergy between the two drug work together.

Okay, got it. And this one, I don't know if this one would be for Paul or Brandon. I'm guessing Paul here. On Q4, you had a 14% year over year growth. That's really good growth. Can you talk about was there any one time dynamics going on the quarter that you got because you are guiding to a little bit of slowdown from that 14% in the following year? Brant, do you want to take that?

Yes, certainly. I can take that. And thanks for the question.

No, I can't think of any one time events that happened in the fourth quarter.

Think it was blocking and tackling and gaining market share. So I think you are correct. Q1 of this year will be slightly down from Q4. But that's in large part due to some of the healthcare benefits resetting meaning co pays, coinsurance and deductibles resetting in the first quarter, We also had two significant adverse weather events in Capella in Dallas, Texas and Texas doesn't do well with snow and ice. So there's a couple of sort of seasonality type things that we experienced in Q1, that's going to bring it down a little bit from Q4. But I think maybe more applicable is looking at it year over year. And it normalizes those events that we experienced similar events every year in the first quarter. So think in 2024, in the first quarter, we were at $63,000,000 and in this quarter in 2025, in the first quarter will be well north of that. But we are coming off a record quarter in the fourth quarter. We have these sort of seasonality dynamics in the first quarter. So we expect it to come down a little bit, but no sort of macro issues or any onetime issues we experienced in the fourth quarter?

Perfect. And then, and did I catch this right? Did you see revised fan on oncotic pathology or did you say precision diagnostics? And can you maybe talk about that 9%, what happened? What the actual revised plan was that would drive the 9% growth? [indiscernible] Sorry, David. Are you saying what did we change in the anatomic pathology going to market strategy? You mentioned there was a revised plan. I think you said on Intamec, I think you were saying anatomic pathology although it could have been precision diagnostics but you highlighted a sequential growth of 9% because of the revised plan. I was hoping you could dig on a little bit further in terms of what that revised plan was? [indiscernible] Certainly. Yes, that was only in the anatomic pathology. So So the anatomic pathology business is diverse. We have GI services, GU services, derm services, general surgical pathology, And in 2024, we really made a decision to go pretty hard after the derms the derm business. As I mentioned in the script, whatever reason, there is just sort of a national issue right now as it relates to some of the derm turnaround times. We have tremendous capabilities in dermatopathology.

We have very good pathology that have been subspecialty trained in dermat pathology and our turnaround times have been fantastic. So as I mentioned, we're delivering two to three day turnaround time. We're seeing some of the competition out there two or three weeks. And these are patients who are anxious for results. And they need to know these results of their biopsy, if it's cancer or not, for example. So we really deployed the sales team throughout the year to go target that particular area of our business. And it's done well for us. We've captured a lot of dermatopathology business for the AP division. In addition, we did expand the sales team some.

And I think we're going to continue to do so. Almost every new salesperson we've brought on has been successful in growing their pipeline, their business. And it's a testament to our quality and turnaround time at the lab and good sales leadership and good sales recruiting. So want to continue to scale the sales team this year And I think we're pretty optimistic that AP has turned a bit of a corner. And we've had a few down quarters since we acquired the business, but Q3 and especially into Q4 we're seeing some good growth and we think that's going to carry into 2025.

Yes, David. We've had a very strong fourth quarter that when we closed out the year, Brandon talked about the dynamics.

Of the anatomic pathology business, but we've had growth in others as well. And as Brandon talked about, we're going to continue to invest in the sales and marketing probably more aggressively than we have before. So for example, if you take a look at 2024, excluding stock based compensation, our selling and marketing expense was $32,000,000 That's going to be close to 40 in 2025 because we like what we're seeing in that area and we see [indiscernible] as good investments as we expand the sales organization.

Thank you so much and congrats on the turning around of that business. [indiscernible] Thanks, David.

Thank you. Next question is coming from Louie from UBS. Your line is now live.

Good morning. Thank you for taking my questions.

I guess like the first one probably sticking to the guide, So 10% in 2025, but you just finished a very good quarter as well. I wonder specifically on position on [indiscernible] have like 23% year over year growth, but it seems like the 2025 will be will be lower. But you also have like two new wins in VA, FMI. I wonder Do we are we going to see any upside to the guide or is it more like a timing double be like pushing back to 2026?

Paul, do you want me to take that one first? Luke, can you hear me?

Yes, I can hear you. Yes, I can take it. The [indiscernible] thank you for the question. Look, I think the guide is the number that we feel really good about. It's a number that we have really good visibility into. With that said, we certainly have opportunities and new wins that we've not built into that number only because they're not fully baked. And these are new wins or we need some time to understand what they may mean to our revenue. You mentioned Foundation Medicine, I mean that's a great example, right? Foundation Medicine is a great example. Really excited about the new partnership with Foundation Medicine, but we don't have [indiscernible] foundation medicine the 2025 guide, dollars 0. Why? It's a new win. We just don't know enough about it yet and we don't have the experience and data to feel comfortable to put a number on that partnership. That said, it's certainly something north of $0 right? So yes, there could be some potential upside there. So I think as we think about these new wins and partnerships, and as they begin to produce and we have a better understanding of their run rate and if they are meaningful, we can certainly adjust guidance in the following quarters.

But I think where [indiscernible] Got it. Understood. Can you give us a little bit update in terms of the VA hospital contract What have you heard from the physician office? And how much of the revenue that you think will will come in 2025?

Yes. I'm not ready to just kind of disclose how much revenue in 2025, because still a little bit early in that launch. I will say it's going extremely well, extremely well. I think we've been pretty conservative how much VA revenue we've built into the guide for this year. That could possibly be some upside there it continues to go as well as it has, but so far we're really pleased with the progress we've made with the VA.

Got it.

And then another question going back to the AP. So you mentioned that you've run a lot of new accounts with a very long turnaround time and that's appears to be a good opportunity for you. I wonder how like how fast you can capture like all the accounts And do you need to like keep increasing the sales representative in order to maintain the kind of like the momentum like I. E. Like eventually what will be the optimal size of the sales rep in the AP business?

Yes, that's a great question. I will say that the sales team is still subscale I think we have an exceptionally good sales team. I think we have exceptionally good sales leadership but it is subscale. Look, our goal is to capture as much of this market as we can. It does take some time to find good salespeople, to train good salespeople. So I mean that's why we're that's why we scaled the team in 2024. That's why we can plan to continue to scale the team in 2025. I think our facility our AP facility that we built in Capell, Texas is absolutely state of the art. It is amazing. It is built from the ground up designed from the ground up to be efficient, high capacity. It is just the a really good operation. So our sales team is out there in selling that, right? They're selling our quality, they're selling our turnaround time, we have the capacity, So I think when you bundle an exceptionally well run pathology lab with great pathologists with a really good sales team, it's just been a recipe for success. So we want to continue to scale that team. We want to continue to capture more of that market.

And that's going to be in the cards for 2025.

Got it. Thank you.

You bet. Thank you.

Thank you. Next question is coming from Andrew Cooper from Raymond James. Your line is now live.

Hi, everybody. Thanks for the questions. Maybe just first, you mentioned Precision Diagnostics having being a little bit light of where you had hoped on some slip out of new customer wins into the first quarter of twenty twenty five. Can you give a little more context on the size of that and how that plays out as you think about sort of low double digit growth in the guide in Precision Diagnostics, especially in context of things like the VA and Foundation and NOVA launch that presumably could drive additional growth there?

Yes. Thanks for the question, Andrew. I think you're spot on. I mean, what you mentioned there are potential growth levers that we have not built into this guide. I've already said $0 from Foundation Medicine. A modest amount for the VA. A very modest amount for Nova, that's currently built into the guide. So I don't want to give too much color for competitive reasons on the accounts that have slid a little bit into this quarter from the fourth quarter, but these are just these are large accounts Andrew, with lots of locations. In onboarding, lots of doctors lots of locations. It's just taking us a little bit longer than we thought. It's going well. We have a lot of these locations already onboarded. With a lot left, but the locations that are onboarded are very happy with our turnaround time quality, support we're giving them.

It's just taking a little bit longer than we had hoped to get every location onboarded for some of these big wins. But should be happening here pretty soon in the For the first quarter and maybe a little bit into the second, Hey, Andrew. If you remember, a year or two ago, the split between anatomic pathology and precision diagnostics, it was about half half. And as Brandon has indicated comprehensively, the success of the precision diagnostic that's been absolutely wonderful for the company. When you take a look at how we ended 2024, we posted precision diagnostics was $70,000,000 higher than what we achieved in anatomic pathology.

So those numbers are large. And when we take a look at 2025, with our initial guide of three ten, what we're anticipating in Precision Diagnostics in each of those quarters Although it might be a low percentage number, it's higher than what we achieved in Q4.

The other thing that you also see is the tremendous increase in the gross margin. Right, as a result largely from the growth that we see in Precision Diagnostics. About a year ago or so, we had our gross margin target at close to 40% and we ended the fourth quarter with the gross margins higher than 40%. So, the overall business and what Precision Diagnostics is doing for a company, it's very, very important. And we always reserve the option to increase the guidance as we see see more progress in color in some of these programs that Brandon mentioned.

Okay, super helpful. Shifting gears a little bit to that AP business, You mentioned some of the wins really stemming from the derm side of things. Is that where you had felt a little bit of pain when that business was kind of underperforming a little bit? And I ask that meaning is this recapture of share that had maybe gone away or is it capture of incremental and some of the other parts of the business continue to be maybe a little bit shy of where they had been a few years ago? And what do you need to do if the latter is the case to recapture that and get those other pieces of the business growing better as well?

Yes. I mean, it's a question Yes, that's a good question. Good question, Andrew.

I think we have two dynamics as it relates to our AP business. It's a large what we call base book of business, right? Our existing Fulgent And the laboratory, our base book of business was going the wrong direction, right? So as the sales team would close the deal, lose the base account, it was sort of one step forward, one step back. And we made a lot of improvements around our account management our client health score, monitoring it proactive, really good job keeping and maintaining our base book of business. So now it's not one step forward, one step back anymore. Our base book is solid. So now we're growing the sales team, layering on new wins and that's how we've taken that business and returned it to growth I've mentioned Derm a couple of times. Yes, I mean Derm was a big factor for us in 2024. Have done well in GI, we have done well in GU, done well in in general surgical pathology. I just think overall it's been a really successful turnaround story. We still think a lot of market out there to capture frankly just scratched the surface of the opportunities. I mean, we can't really scale this team quick enough And the reason is we want to take advantage of that state of the art operation we've built in the fantastic services we have there.

They're great product to sell. So we're trying to scale the sales team as quickly as we can, but I think we've just scratched the surface on the opportunities across the entire AP division. Yes. I think adding Brandon's [indiscernible] We made a heavy technology investment in that AP business. We're making the pretty much the the digitization or using the advanced technology to make that entire business more efficient. That's what you can see what Brandon mentioned. The other labs have a total turnaround times around more than two weeks and we are achieving in few days.

We liked our position and that's the area we do see the growth. In fact, we bought the business that was in the decline mode I think we believe we find the bottom and start to to to find the growth. Okay, helpful. And then maybe just one last one.

I know you gave the color around the cost of some of the clinical trials in the the pharma efforts. How should we think about the overall cash utilization from those efforts in 2025 and potentially beyond as you continue to push that pipeline forward ahead of any FDA approval or anything like that? [indiscernible] we from Paul's financial disclosure, we expect the burn rate for that unit So the farmer therapeutic development in the year 2025 Does it include R and D and the clinical studies around $25,000,000 So that's very efficient to use our money and to develop two one of the two of the most critical drugs to treat the patients with the with not much of the options with KIRNOV.

Drugs.

So we think we have very efficient R and D team and we will see the we will publish results in June at ASCO about our findings. [indiscernible] And also we expect to enroll the patients for the FID022 in the second quarter. We are very excited about this opportunity and we do believe support this nominal investment we're doing will be rewarded.

Perfect.

I will stop there. Thanks everybody.

Thank you.

Thank you. We reached the end of our question and answer session. I'd like to turn the floor back over for any further or closing comments.

Thank you, everyone, for your continued interest at and we will be talking to you on our first quarter twenty twenty five earnings call. You very much.

Thank you. That does conclude today's teleconference and webcast. You may disconnect your line after time and have a wonderful day.

We thank you for your participation today.