Below is the Cytokinetics, Inc. (NASDAQ:CYTK) conference call transcript regarding the expansion of collaboration agreement with Astellas held on Monday, January 5, 2015 at 8:30 a.m.
Participants:
Sharon Barbari, Cytokinetics Executive Vice President of Finance and Chief Financial Officers
Robert Blum, President and Chief Executive Officer
Fady I. Malik, SVP, Research and Development
Operator
Good morning and welcome ladies and gentlemen to this Cytokinetics conference call. At this time I would like to inform you that this call is being recorded and that all participants are in a listen only mode. At the request of the company we will open up the call for Q&A after the presentation. I will now turn the call over to Sharon Barbari, Cytokinetics Executive Vice President of Finance and Chief Financial Officers. Please go ahead.
Sharon Barbari, Cytokinetics Executive Vice President of Finance and Chief Financial Officers
Good morning and thank you for joining this side of Cytokinetics Senior Management Team on this conference call today. Also present during this call are Robert Blum our President and Chief Executive Officer and Dr. Fady Malik PhD Senior Vice President of Research and Development. The following discussion including our responses to questions contain statement that constitute forward looking statements for the purposes of the Safe Harbor Provisions of the private securities litigation format of 1995 including but not limited to statements relating to our financial guidance and corporate partnering to the initiation, enrolment, design, conduct and results of clinical trials and to other research and development activities.
Our actual results might differ materially from those projected in these forward looking statements. Additional information concerning factors that could cause our actual results to differ materially from these forward looking statements is contained in our SEC filings, including our most recent annual report on form 10 K, our quarterly reports on form 10 Q and our current report on form 8 K. Copies of these documents may be obtained from the SEC or by visiting the Investor Relation section of our website. These forward looking statements speak only as if today. You should not rely on them as representing our views in the future. We undertake no obligations to update these statements after this call. Now I will turn the call over to Robert Blum.
Robert Blum, President and Chief Executive Officer
Thank you Sharon and thank you all for joining us, this morning! On December 23rd, 2014 we announced that Cytokinetics and Astellas expanded our collaboration to enable the development of CK-2127107 or CK-107 in spinal muscular atrophy or SMA and also to provide for its potential development in other neuromuscular indications. We have previously been jointly conducting research and development activities with the objective to advance novel skeletal sarcomere targeted therapies for diseases and medical conditions associated with muscle weakness in non-neuron muscular indications. With the expansion of our collaboration, we have agreed that Cytokinetics will conduct a phase 2 clinical trial of CK-107 in patients with SMA. This trial is planned to begin later this year 2015. Under the expanded collaboration Cytokinetics and Astellas will jointly develop and may jointly commercialize CK-107 and other fast skeletal troponin activators in neuromuscular indications.
Additionally we have extended our joint research program focused on the discovery of noble scalpel sarcomere activators to the end of 2016. Cytokinetics and Astellas initially entered into collaboration in 2013 when we exclusively licensed two Astellas’ rights to co-develop and commercialize CK-107 for potential applications in non-neuromuscular indications. In accordance with initial scope of the collaboration Cytokinetics completed 5 Phase 1 clinical trials and other Phase 2 readiness activities and delivered a data package pertaining to these activities to Astellas in 2014. Following Cytokinetics and Astellas joint review of this data and subsequent to market research, regulatory manufacturing and clinical development planning, the companies agreed to advance CK-107 in to Phase 2 clinical development initially in SMA in connection with the expanded collaboration. The development program for CK-107 under the collaboration may also include other neuromuscular as well as other non-neuromuscular indications in the future.
Under the amended collaboration Astellas has exclusive rights to commercialize CK-107 and other fast skeletal troponin activators in non-neuromuscular indications and certain neuromuscular indications including SMA and other novel mechanisms skeletal muscle activators in all indications. All subject to certain Cytokinetics development and commercialization rights Cytokinetics may co-promote and conduct other certain commercial activities in both North America and Europe under agreed scenarios. The moment Fady would elaborate on objectives and key activities in both research and development under our expanded collaboration with Astellas and Sharon will review the financials of this expanded deal. However before they do so, I should point out that Tirasemtiv is not a part of this collaboration. Cytokinetics will continue to independently develop Tirasemtiv our first in class fast skeletal troponin activator which recently completed a phase 2 clinical trials program for the potential treatment of Amyotrophic Lateral Sclerosis or ALS.
To be clear, this expanded deal does not represent a departure from our potential commitment to Tirasemtiv nor to our resolve to bring forward the potential next treatment for ALS rather instead this collaboration affords us the opportunity to continue to expand our research and development of next generation skeletal muscle activators with the leading pharmaceutical company dedicated to this area biology and with commitment to investigate it’s broader potential that we could practically do ourselves. We are very pleased with the progress of our collaboration with Astellas and with Astellas’ strategic vision associated with the R&D of skeletal muscle activators increasing the scope of our collaboration to include the treatment of neuromuscular diseases that may also benefit from our novel mechanism approach. Provides us with an opportunity to continue to fully explore this new frontier of muscle biology. With that I will now turn the call over to Fady.
Fady I. Malik, SVP, Research and Development
Thank you Robert. As Robert mentioned the lead drug candidate license done in this collaboration at CK107. Our next generation fast skeletal troponin activator. Over the last 18 months Cytokinetics, conducted a development program under Astellas’ sponsorship which evaluated CK107 and helped the volunteers 5 phase 1 clinical trials. They were trialing at safety tolerability in the pharma kinetics during single and multiple dosing. The pharma kinetics of different oral forms of CK107 were also characterized to inform formulation development. In addition, we also demonstrated the translation of the mechanism of action into CK107 into human characterizing its pharmaceutical dynamic and pharmaceutical kinetic relationship. Altogether the studies have set the stage for the further study of CK107 in phase 2 clinical trials. Colleagues at Cytokinetics and Astellas were collaboratively to oversee and review the results of these trials as well as other joint development activities to agreeing on future development plans for CK107.
Under our expanded collaboration together with Astellas, we have agreed to pursue the initial phase 2 development of CK107 in SMA. The No. 1 genetic cause of death in infant. SMA effects approximately one in 10000 babies which translates to over 45000 people who live with SMA in the United States alone. SMA manifests in progressive muscle weakness and various degrees of severity resulting in reportorial mobility in permanent. There are four types of SMA. Named for the time of initial on set of muscle weakness and related symptoms. Type 1, Infantile, type 2, Intermediate, type 3 Juvenile and type 4 Adult Offset. Life expectancies and disease severity varies by SMA type. Type 1 patients are the worst prognosis and life expectancy is often less than two years from birth. Well type 4 may have a normal life span but with gradually progressive weakness and the approximate muscle extremities resulting in mobility issues.
No treatment options exist for these patients resulting a high on net need for new therapeutic options to address symptoms and modify disease progression. The initial planned SMA phase 2 trial that we will conduct will focus on patients who are albescents or adults, living with this disease. That may benefit from a treatment then improves muscle function and delays muscle fatigue. We will provide more detail regarding our plan phase 2 clinical trial design as we approach study initiation later this year. On a research front in this collaboration Cytokinetics has combined its foremost position in the discovery and the mechanistic biology of small molecule activators a skeletal muscle contractility with Astellas’ advanced pharmaceutical discovery and development capabilities.
Companies that worked together to identify, characterize and optimize fast skeletal troponin activators and other potential novel mechanism. Skeletal muscle activators. Joint research program is designed to leverage the two company’s cutting edge capabilities and discovery technologies, medicinal chemistry, analytical chemistry, structural biology, computational chemistry and pharmacology of muscle contractility. Under our expanded collaboration we have extended the joint research program to continue until the end of 2016. We are pleased to work with Astellas and its promising novelery of research and development. Nature of our collaboration allows us to pursue the breath of potential therapeutic opportunities for activators of skeletal muscle contractility. Together we share common objective which is the pioneer development of this area across the wider ray of potential disease indications and conditions. I will now turn the call over to Sharon to discuss the financial applications related to our expanded collaboration.
Sharon Barbari, Cytokinetics Executive Vice President of Finance and Chief Financial Officers
Thank you Fady, under the expanded collaboration Cytokinetics received 55 million in the form of an upfront payment of 30 million, 10 million for the purchase of 2040816 shares of Cytokinetics’s common stock and a milestone payment of 15 million related to the decision to advance CK107 into phase 2 clinical development. In addition Cytokinetics expects to receive potentially over 20 million for the reimbursement of sponsored activities in connections with the agreed research and development plans covering the next two years. From accounting stand point the upfront payment of 30 million will be recognized proportionately over the terms of the agreed research and development plans for 2015 and 16.
The 15 million dollar milestone was earned in 2014 and the stock purchase closed in 2014. Under the amended agreement Cytokinetics is eligible to receive over 600 million and free commercialization in commercialization milestone payment of which over a 100 million is payable for CK107 in each of SMA and other neuromuscular indications. The agreed terms also provide for escalating royalties to Cytokinetics with increased sales. Cytokinetics retains the option to co-fund the development of CK107 in SMA and other neuromuscular indications in exchange for increased milestones and royalties and if Cytokinetics exercised at co-promotion option. Astellas will reimburse Cytokinetics for certain expenses associated with promotion activities. This expansion into our collaboration provides Cytokinetics additional cash and continued sponsorship of ongoing research and agreed development activities over the next two years. We expect to provide financial guidance for 2015 that will incorporate the impact of our expanded collaboration during our Q4 earning’s call scheduled to occur on February 12th, 2015. I will now turn the call back over to Robert to provide some additional comment.
Robert Blum, President and Chief Executive Officer
Thank you Sharon, we are pleased to expand our collaboration with Astellas’ to enable the joint pursuit of CK107 in SMA and potentially other neuromuscular indications. While we plan for initial phase 2 initial trial of CK107 in patients with SMA. Our expanded collaboration provides a mechanism through which we and Astellas may agree to pursue the development of CK107 in other neuromuschular indications and we remain committed to pursue the potential non-neuromuscular indications as well. Potential non-neuromuscular indications for fast skeletal troponin activators include diseases and medical conditions associated with aging, for example sarcopenia, claudication, rehabilitation related deficits for example disused atrophy and cakepsia in connection with heart failure cancer and COPD. Cytokinetics and Astellas continue to seek non-neuromuscular indications which maybe suitable for CK107 or other skeletal sarcomere activators under our collaboration.
As we believe as a hall mark of Cytokinetics deals. Under this expanded collaboration Cytokinetics retains certain options attract with the continued maturation of our development capabilities and other potential shareholders. Under our expanded collaboration with Astellas, Cytokinetics retains an option to conduct early stage development activities for certain agreed indications at our initial expense subject to reimbursement, if development continues under the collaboration. In addition Cytokinetics retains the options to co-fund certain later stage development activities relating to CK107 in SMA and other neuromuscular indications in exchange for increased milestone payments and royalties. Similarly with this expanded collaboration Cytokinetics retains certain options rights and responsibilities with regard to potential commercialization activities Cytokinetics and Astellas may jointly commercialize CK107 and other fast skeletal troponin activators in neuromuscular indications in the US, Canada and Europe.
The amended agreement also provides the Cytokinetics to lead certain activities relating to the commercialization of collaboration products neuromuscular indications in the US, Canada and Europe under particular scenarios. We look forward to the further development of potential commercialization of CK107 without partner Astellas. We are pleased to our collaborate nature of our partnership as well as the strategic vision that Astellas’ bring to this program as well as the capabilities in the areas of novel mechanism bio-pharmaceutical R&D. With the expansion of our collaboration with Astellas, we believe we are continuing to execute in our mission to expeditiously advance innovative drug candidates focused to muscle biology for patients suffering from grievous diseases. Operator! That concludes our formal presentation, if you would please open the call for questions?
Operator
At this time if you would like to ask a question, simply press * and then number 1 on your telephone keypad. We will pause for just a moment to compile the Q&A roster. Our first question comes from the line of Charles Dunken with Piper Jeffery. Please go ahead.
Charles Duncan with Piper Jaffray,
Good morning Charles, Good morning Robert, first of all happy new year and secondly congratulations on expansion of this deal.
Robert Blum, President and Chief Executive Officer
Thank you very much.
Charles Duncan with Piper Jaffray,
Robert, I have a couple of questions. I am wondering if you could provide any additional color on some of the observations that resulted in Astellas interest in extending into SMA with this candidate.
Robert Blum, President and Chief Executive Officer
Sure, I will start and then also ask Fady to add some commentary. From the beginning even when we negotiated the original deal in 2013. The companies had discussions about the neuromuscular field and it was very much with our eye on both this opportunity but also that which is still independent. Our development of TIRASEMTIV that prompted Cytokinetics to exclude the neuromuscular indications from that original deal but our two companies have continued to dialog about possibilities under which we could include neuromuscular indications. It was about a year ago that those conversations really dialed up in earnest and through the course of 2014, we engaged together in discussions. We performed a series of market research activities and other vetting. We looked at both neuromuscular and non-neuromuscular indications. Importantly in concert with each companies, independent interest in this area and we worked out a deal that was satisfactory to both companies.
It was especially important to Cytokinetics that we would be in a position to advance this field CK107 in neuromuscular indications but not at the expense of the worked that we are doing independently with Tirasemtiv. So, Once we were able to work out those arrangements and know that we could have an agreed development plan. That was something that we were able to put to business development and legal teams in order to be able to negotiate final contract. It really came about through initial research and development momentum but then carried forward as we thought about our corporate development interest and this deal enables the inflow of capital for Cytokinetics which affords us the opportunity now to advance Tirasemtiv in ALS. Potentially to occur here in this year 2015 while also still ensuring that CK107 could go forward in other indications.
Fady I. Malik, SVP, Research and Development
Well Charles, I will just add a couple of comments, I think as you know that this mechanism of action has always been, we thought quite applicable on the neuromuscular disease area. I know Astellas has also realized that even from the very initial time that the deal was negotiated. We have done trials in ALS and Miacenia Gravis and I would say the development landscape in SMA has changed quite a bit over, between the time that we initially negotiated this deal and today increasing the amount of experience in developing in that clinical indication. It is one of the rationales that we are going in to ALS. There is a lot of clinical experience in developing in that indication. So, SMA, I think represented a natural area to consider developing next in to the phase 1 of the clinical data. Where really encouraging and in particular the pharmaceutical dynamic data that we obtained with CK107 and together I think that the interest in perusing SMA helped to expand the deal as we finish last year.
Robert Blum, President and Chief Executive Officer
Maybe just one other thing to add to that under Fady’s supervision, we performed some clinical research relating to skeletal muscle activators that was dating back a couple of years in the area of SMA that was funded by an entity called Families of SMA now called Cure SMA. That foundation provided some grand funding around which we did some impressive pre-clinical research published in recent years that also provided I think a catalyst for our interest to pursue this in phase 2.
Charles Duncan with Piper Jaffray,
That is very helpful Robert and Fady. One question in terms of the financial implications of the deal. You have mentioned Tirasemtiv a couple of times. Should you choose to move forward with pure semtiv and another clinical study? Could the upfront payment from this deal are from this expansion fully cover another phase 3 or at least cover the start of a phase 3 with Tirasemtiv in ALS?
Robert Blum, President and Chief Executive Officer
I will take a stab at that. The guidance that we are providing towards the end of 2014 is that we had clarity from FDA that is low vital capacity is an acceptable in point for a potential registration study for Tirasemtiv. And with that clarity, we have engaged further with FDA, another regulatory parties around potential protocols that would enable us to know what a budget and timeline could look like for a phase 3 study that could be a pivotal study of Tirasemtiv for the potential treatment of ALS. As we put together those budget estimates we do believe that this capital inflow from Astellas would go a long way if not all the way to enable us to conduct that study or be it. The study that we are quantum plating is one that has adaptive design elements and in term analysis which should afford us an opportunity to trench capital investment in that trial as we see our results along the way. Until we have a final protocol and the statistical plan that has been negotiated with FDA and other regulatory authorities. It is a difficult question to answer with finality but we will hopefully be able to provide more clarity around that and a potential commitment will be making as those conversations continue in these next several weeks.
Charles Duncan with Piper Jaffray,
Then my last question is regarding the equity ownership that at least the shares that you sold to Astellas are part of this expansion. I am happening to back to check my math on this but I am not so I am not certain or correct on this but I believe that the ownership in Cytokinetics by Astellas is similar to that by Amgen. If you could provide some thoughts on that if it is the case and then how do you anticipate being able to reconcile it to those two ownership positions.
Sharon Barbari, Cytokinetics Executive Vice President of Finance and Chief Financial Officers
If I get in to the first part of that question is Astellas 2 million shares out of 38 million shares outstanding, so their ownership interest is likely is less than the interest than Amgen has in the company. I don’t think that there is any attempt to reconcile the two of those. Those are two individuals’ decisions made by the respected companies with respect to their ownership interest.
Charles Duncan with Piper Jaffray,
Thanks for the added color. Congrats on the deal.
Operator
Your next question comes from the line of Joe Pantginis with Rob Capital Partners. Please go ahead.
Joe Pankinis with Rob Capital Partners
Hey guys, happy New Year. Thanks for taking the question. Maybe the first question is for Sharon. Could you provide a little more color on the optionality that Cytokinetics has with regard to say first potential timing of being able to opt in. Do you have to wait till after phase 2? Do you have to do it before a certain point? Then the second aspect is as you look at new molecules, how long does Astellas has before they decide to opt in to that particular program or not?
Sharon Barbari, Cytokinetics Executive Vice President of Finance and Chief Financial Officers
The first question around our opt- in. Our opt in happened with pivotal registration study, so that is the point it would be after phase 2 development. As we develop plans for pivotal registration, we would then have the option to be able to opt in and then obviously get increased milestones in royalties. If we were to do that. On the second part of your question with respect to Astellas, is it a similar type of mechanism for them. They are looking at, as we get to pivotal registration as well. They could opt in earlier though. They don’t have to wait until then until the pivotal. They have the ability to do that and then share in the economics.
Robert Blum, President and Chief Executive Officer
I just want to make sure I understood your question because it may relate differently than Sharon’s answer. With regard to other compounds rising out of the research, it is not in Astellas option mechanism rather they have those rights in our proceeding with the expectation that they would proceed in development subject to the same flows and mechanism that we have for CK107. It is not a formal option like Cytokinetics has with regards to CK107 entering late stage development. We were performing a joint research with Astellas for the last year plus with the extension of the research program are shared objective is to nominate and pursue compounds that would enter IND-enabling studies and further development as follow on to CK107 and in that regard there is an intention to proceed to development not an option to do so.
Joe Pankinis with Rob Capital Partners
Got it, now that is helpful thank you. Then maybe I guess this would be somewhat of a swing for the fences type of question but when you look at the SMA indication, I know you are willing to or it does not seem like you want to discuss the plan for the phase 2 yet but with regard to the size and what have you but based on the mathematical need, do you anticipate a call at the potential based on positive data to potentially be an accelerator to break through type of study since there are no current treatments.
Fady I. Malik, SVP, Research and Development
I think, the very 2 designations for something like this is always a potential option although I think the key is whether the data support progressing the phase 3 and pushing the mechanism forward. I think the current molecules that are in development in SMA which would be complimentary to our mechanism of action. They are embarking upon phase 3 trial now. That is the big development path I expect we would take.
Joe Pantginiswith Rob Capital Partners
Great, thanks a lot guys.
Robert Blum, President and Chief Executive Officer
I think it is important to maybe underscore something that Fady said with regard to other mechanistic approaches and then being complimentary. The other approach is that people on this call maybe familiar with and are directed to potential treatment of these patients really do relate to the genetic defect that is underline the cause of the disease where we see CK107 being potential complimentary is really to augment muscle force and increase time to muscle fatigue in particular in those adolescence and adults who have been living with this disease for longer.
Joe Pantginis with Rob Capital Partners
Okay, thank you again
Robert Blum, President and Chief Executive Officer
Thank you Joe, happy new year.
Operator
Your next question will come from the line of Jason Butler with JNP Securities. Please go ahead.
Jason Butler with JNP Securities
Good morning Robert, happy new year and congratulations on this expanded partnership. Just a question about the prior partnership or the partnership before the expansion. Can you talk about how this expansion of the partnership impacts the other indications you were working on with Astellas and the other indications you were considering for phase 2? I guess another question is, is there a potential still for other clinical trials to begin in non-neuromuscular indications in 2015?
Robert Blum, President and Chief Executive Officer
Excellent questions, we have been executing on plans to consider what would be the non-neuromuscular indications that would be prioritized for CK107 and through the course of that we surfaced together spinal muscular atrophy and some of these neuro muscular indications so it’s not at all to say that were redirecting to these collaboration to the neuro muscular phase rather instead this is intended to be enabling an expansion. We are still discussing which will be the first of the non-neuromuscular indications we may wish to pursue. We have had meetings with key opinion leaders. We have engaged around planning that includes manufacturing regulatory in clinical and the two companies have put together tools in other systems by which we can that in prioritize those indications. We are still very much interested in those indications. We haven’t spoken publicly about which ones would be first and what the timing would be but over the course of 2014, I hope we will have. I am sorry 2015. I hope we will have now time to elaborate on what the potential could be.
Jason Butler with JNP Securities
Great, thanks for taking the question.
Robert Blum, President and Chief Executive Officer
Thank you.
Operator
You next question will come from the line of George DelRicco with MLB & Company. Please go ahead.
Robert Blum, President and Chief Executive Officer
Hi George, happy new year!
George DelRicco with MLB & Company
Hi, happy new year and congrats on a good deal as well. A couple of questions for you Fady. You spoke about the PD and the PK relationships that led to this deal. If you can elaborate on that at all. How perhaps 107 is different or superior Tirasemtiv and you also spoke about moving forward to newer compounds. The sarcomere biology is much more complicated than just proponent perhaps by looking at targets other than troponin, perhaps other sarcomere elements that you know maybe able to fund and accelerate development to capture more of the space for drug, potentially drug able space?
Fady I. Malik, SVP, Research and Development
I will answer the first question first and the PK, PD relationship for CK107 is really quite favorable. One of the targets if you will and we were doing the lead optimization of the follow on compound was to improve the potency of molecule in people and pre-clinically we had indications that we were on the right track and the nice thing was to see that in our clinical study that both pre-clinical findings translated very well into humans. They were quite predictive. The pharmacology is the same, meaning that the compound binds to troponin and has the same mechanism of action is Tirasemtiv but the pharmaceutical dynamics a little different because of the improved potency that we have categorized and mentioned in the past.
With regards to other targets in the sarcomere, I mean the collaboration includes many types of mechanisms for activating the sarcomere. I am not really deliberately close of what we are perusing in what time frame but you are right there are other ways of activating sarcomere including other modes of troponin activation even. This collaboration really allows us to continue the execution on those. It should also I guess elaborate that we have focused on fast skeletal muscle, today cell skeletal muscle is another target for us in this collaboration. I think that the possibilities of seeing new mechanism that maybe targeted to different disease types is quite strong.
Robert Blum, President and Chief Executive Officer
Maybe just to put a punctuation point on which Fady is saying that. Area that we are perusing together with Astellas really is coming of age part in the pond but it is something that we think is very timely in light of the convergence of interest as pertains to metabolism and bone health and where we said just opposed in the center as relates to muscle biology, the mechanics of muscle contractility. We think combining forces really does achieve toward the force in terms of what we may be able to pursue not only with regard to the mechanism of action with Tirasemtiv and CK107 but others and as will represent potential new treatments across the broader way of indications. With what Astellas does very well and what we do very well combined, we think this is the leading effort of the industry in order to make that happen.
George DelRicco with MLB & Company
Thank you for that and will you also be able to add some more funding for you smooth muscle program for which of course there are a lot of large indications available?
Robert Blum, President and Chief Executive Officer
Very good question, you have followed the company for a while so you know that we have interest in inhibitors of smooth muscle contractility that is an area that continues to get investment in research or be at more modest levels but certainly with this capital inflow, we are in a position now to look across the portfolio at un-partnered programs and see which ones we may want to dial up. So, may be more to follow on that topic.
George DelRicco with MLB & Company
Finally, one last question about SMA, you mentioned the four types, 1, 2, 3 and 4. You mentioned there is no treatment for 1 and 2. It sounds like you are going to go for adolescent and adults which would be 3 and 4. Are the treatments for 3 and 4. First of all is that correct? No2, for type 3 and 4, is available treatment all palliative right now are not really disease modifying?
Fady I. Malik, SVP, Research and Development
To clarify there are no disease modifying or pharmaceutical treatments for all types of SMA. The treatments are supportive and palliative. They have to do with nutritional support, orthodix and things like that to help with mobility. You and other strongest probably know there are a number of mechanisms now that are being developed and they potentially address the root of the genetic cause of this disease. While our treatment is, we think potentially useful because it will improve over all muscle function, it does not do that in pre-say and what we are looking forward to is potentially combining this with other therapies to improve these patient’s outcomes over the long term. I doubt there is a curative therapy in SMA, I certainly hope there would be but even these therapies that address the SMA mutation are lack of expression of SMA, SMN1. Not like they would completely reverse the disease though having another mechanism of action to compliment them I think is important for improving these patients.
George DelRicco with MLB & Company
Thank you very much Fady, Robert and Sharon.
Operator
There are no further questions at this time, I will now turn the conference back over to Robert finally concluding remarks.
Robert Blum, President and Chief Executive Officer
Thank you and thank you everyone for joining us in this teleconference today. We look forward to updating you on further activities of the company as well as relating to steps forward with this expanded collaboration. We advise you to contact us so that we address any other questions that you may have. Operator! with that I would like to conclude the call please.
Operator
Ladies and gentlemen this cast concludes today’s conference call thank you all for joining, you may now disconnect.
