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Speaker 2: good morning to you. Which one is this? Stagflation? Hard landing,
Speaker 2: no landing? Where are we going?
Speaker 3: I think we're going to a soft landing with a
Speaker 3: reasonable market environment, maybe better.
Speaker 4: Growth ahead than what we're used to. Higher rates, a
Speaker 4: little bit of higher inflation. But look where we are
Speaker 4: on inflation.
Speaker 3: These are the levels that we all used to write
Speaker 3: about as the Goldilocks levels. Right, We're not at nine,
Speaker 3: we're not at zero, We're around.
Speaker 4: Three or four. Those are healthy levels for equities.
Speaker 2: It doesn't sound late cycle when you speak where are
Speaker 2: we in this cycle?
Speaker 4: Who knows?
Speaker 3: I mean I think this cycle is very asynchronous, if
Speaker 3: you will. So it's you know, there's some areas that
Speaker 3: are booming. We're still kind of coming off of COVID,
Speaker 3: So we've got services demand maybe slowing or tapering off,
Speaker 3: goods demand potentially picking up.
Speaker 4: We've got still tight employment.
Speaker 3: But then there's also a couple of structural factors that
Speaker 3: I think.
Speaker 4: Are skewing the cycle call.
Speaker 3: So we have a very tight employment market, and one
Speaker 3: of the reasons for that is demographics, which we're you know,
Speaker 3: we're in an aging demographic scenario. And then on top
Speaker 3: of that, we had a huge number of early retirees
Speaker 3: during COVID. Unless we loose an immigration, I think that
Speaker 3: we're going to remain in this very tight labor market.
Speaker 3: So that's the other factor. And you know, we've talked
Speaker 3: about this. I think the consumer is in a very
Speaker 3: different balance sheet set up than in prior cycles, where
Speaker 3: you know, long term fixed rate mortgages eighty five percent,
Speaker 3: very different from prior cycles. You've got baby boomers sitting
Speaker 3: on wads of cash.
Speaker 4: So I just think that.
Speaker 3: This cycle you can't just map on the typical you know, oh,
Speaker 3: the FED is tightening, it's.
Speaker 4: You know, or late cycle. Now the FED is stopped
Speaker 4: and they're going to start cutting. We're early. It's a
Speaker 4: different a different type of market. You use the G word.
Speaker 5: Sorry, I apologize to fans.
Speaker 1: It's been a long way goldilocks. And we hear this
Speaker 1: from Max Kettner's too, and this really raises a question,
Speaker 1: or can we have goldilocks with five percent FED funds rates?
Speaker 4: Is this actually just a new rate?
Speaker 5: Is it not actually restrictive?
Speaker 1: And is it something that can actually even allow a
Speaker 1: broadening out and a rally even without any rate cuts
Speaker 1: this year?
Speaker 4: I think so.
Speaker 3: I mean, I think there's a very high probability that
Speaker 3: the FED remains on hold. Our economists have talked about
Speaker 3: this as well, So we expect to cut in December.
Speaker 4: Maybe no cuts.
Speaker 3: Look, I think five percent is a manageable number, especially
Speaker 3: if you have corporations that have locked in fixed straight
Speaker 3: you know, long term debt you've got And this is
Speaker 3: the S and P, not necessarily small caps or other regions.
Speaker 3: But I think that the SMP has actually prepared for
Speaker 3: this moment. Now you've got big tech companies, the go
Speaker 3: go growth stocks initiating dividends. Right, We've got an environment
Speaker 3: where the market is adapting to higher interest rates, shortening
Speaker 3: their duration, giving us more cash. I think this is
Speaker 3: actually a kind of a reasonable setup for equities here.
Speaker 1: I don't want to be cynical. There is this concern
Speaker 1: with people focusing on large caps that can handle this.
Speaker 1: The people shrug off the highest delinquency rates. Going back
Speaker 1: many years, this idea that if a number of people
Speaker 1: just get blown out, fine, it's okay, you know, we
Speaker 1: can just go into luxury, we'll go into big tech,
Speaker 1: we'll go into the areas that'll do fine, and we'll
Speaker 1: be fine, even if other segments are getting kind of blown.
Speaker 4: Right, right, How long can that go on? I think
Speaker 4: that is a key risk.
Speaker 3: And I mean we've seen that income gap widen for
Speaker 3: decades now, right. I think what's happening now is actually
Speaker 3: potentially better for the middle to lower income customer if
Speaker 3: you're in certain sectors. So look at manufacturing in the US.
Speaker 3: There's still a very tight labor force. Real wage growth
Speaker 3: is positive. Where you're seeing a lot of the layoffs
Speaker 3: is more in white collar, you know, not necessarily Middle America,
Speaker 3: where you're seeing still very strong signs of this restoring
Speaker 3: boom that has a long tail, right. I mean, you
Speaker 3: can't build a factory in a year. It's going this
Speaker 3: This restoring theme is a very long term theme that
Speaker 3: I think has legs over the next several years. And
Speaker 3: that's where the job tightness is, that's where the real
Speaker 3: wage growth is really positive.
Speaker 4: And I think those are areas.
Speaker 3: That are, you know, different from where we've seen benefits
Speaker 3: in the past. So that's one way to stave it off.
Speaker 3: And then you know, I think higher oil prices are
Speaker 3: also a concern if you think about geopolitical risks. But
Speaker 3: where we are today is I think the US is
Speaker 3: in a better position because we are now a net
Speaker 3: exporter rather than an importer, so we've got a little
Speaker 3: bit more wiggle rim around oil than we did in
Speaker 3: prior cycles.
Speaker 4: But you're right, it's a concern.
Speaker 6: Well when it comes to these low age workers saying
Speaker 6: people they're getting jobs in manufacturing. But I go back
Speaker 6: to what Diane Swanks said yesterday to Jonathan, Lisa and Tom.
Speaker 6: These individuals move from the shadows of the economy into
Speaker 6: the sun. Maybe that's the labor market that's getting a
Speaker 6: better job, but then they get hit by inflation. They
Speaker 6: get burned by inflation. Right, So how does the FED
Speaker 6: think of these individuals when it comes to higher inflation,
Speaker 6: because we know they have no appetite.
Speaker 4: For a hike, right, right, right, right.
Speaker 3: So I think that where we are now is an
Speaker 3: environment where we really do need to see some of
Speaker 3: these inflationary forces subside, and we're I think there's a
Speaker 3: couple of things going on that could actually continue to
Speaker 3: create a ceiling on inflation.
Speaker 4: So think about it.
Speaker 3: There's still demographics and demographics, We've got aging population, less
Speaker 3: demand for stuff. That's that's another that's sort of a
Speaker 3: disinflationary pressure. You've also got disruption from AI tech automation,
Speaker 3: so that's a continued disinflationary pressure. I don't see inflation
Speaker 3: going to the seventies levels that's really untenable for your
Speaker 3: average consumer. I think there's enough of a secular disinflationary
Speaker 3: force at play that we've all been talking about, you know,
Speaker 3: for the last twenty years that can can actually stave
Speaker 3: off a really aggressive level of inflation. And then on
Speaker 3: top of that, I think the energy independence of the
Speaker 3: US is a really important factor because you know, that's
Speaker 3: a benefit to the US that most other developed.
Speaker 4: Economies don't have. And I think that's something we should
Speaker 4: be happy about.
Speaker 2: Let's finish on something you've been focused on for quite
Speaker 2: a while allan to call Amy value, and it's industrial
Speaker 2: staff to capital. I remember you outlining this, I think
Speaker 2: maybe twelve months ago. Still a big thing for you
Speaker 2: and a team.
Speaker 3: Yes, and it's worked for maybe two months out of
Speaker 3: the last twelve.
Speaker 2: But you know, I think where we are now against
Speaker 2: throwing much Just for the record, I was genuinely interested
Speaker 2: in that faces well.
Speaker 3: You know again, I think we're in an environment where
Speaker 3: the broadening of the market is still a theme we
Speaker 3: talk about, and it's started to happen in the last
Speaker 3: couple of months.
Speaker 4: Look who's going to benefit from all.
Speaker 3: These chips and this AI and you know automation. It's
Speaker 3: old economy companies that get more labor light. And I
Speaker 3: think that's the benefit that we could see over the
Speaker 3: next you know, twelve to twenty four to.
Speaker 4: You a few years.
Speaker 3: I think the areas are you know, industries like ours,
Speaker 3: the banks, right, I mean banks are very labor intensive.
Speaker 4: Now there is this tool that.
Speaker 3: We can use to replace people with bots and processes.
Speaker 4: Et cetera.
Speaker 3: So I think, you know, it's it's a potential streamlining
Speaker 3: or cost cutting story self help for a lot of
Speaker 3: these old economy services sectors that haven't really addressed their
Speaker 3: labor intensity for for quite a while.
Speaker 6: This was it's going to s.
Speaker 2: Andrew Honposo. City office is one. We maintain our base
Speaker 2: case from one hundred basis points of counts in twenty four,
Speaker 2: substantially more than priced by interest rate markets. Andrew's with
Speaker 2: us around the table, Andrew Hallo, let's go straight to it.
Speaker 2: Four cuts in twenty four. This is not consensus. Where
Speaker 2: does it come from?
Speaker 5: Well, the Fed's going to cut this year.
Speaker 7: I think that was very clear from CHERA Powell yesterday
Speaker 7: that at least the next move is a cut, and
Speaker 7: the way that they get there is because the inflation
Speaker 7: data is.
Speaker 5: Going to give them the opportunity. I don't think it's.
Speaker 7: Going to two percent, but it's going to be slow
Speaker 7: enough that it lets them cut. And then the labor
Speaker 7: market is going to weaken. And we heard that from
Speaker 7: Chaerir Powell, this idea that we're seeing that the trend
Speaker 7: is really towards a weaker labor market.
Speaker 2: Here, I think this is your signature cool for this year.
Speaker 2: It's the weakness that you're anticipating in the labor market.
Speaker 2: Do you see it now? Where's it coming from?
Speaker 7: This is really important because what we heard from Chair
Speaker 7: Powell is with the two mandates, the dual mandates and
Speaker 7: better balance than their words, has come down. It's not
Speaker 7: a two percent, but it's come down. They're looking at
Speaker 7: employment now. And when you look at employment, Chirpewell highlighted
Speaker 7: some of these things. You look at the conference board,
Speaker 7: do people see jobs plentiful or do people see jobs
Speaker 7: hard to get?
Speaker 5: They're seeing jobs as harder to get. You ask people,
Speaker 5: are you more worried about keeping your job? They are
Speaker 5: more worried.
Speaker 7: We see that in the New York Fed survey, and
Speaker 7: then you go to the NFIB Small Business Survey. It's
Speaker 7: going to come out to day at one pm. Let's
Speaker 7: see where it is. But you're seeing small businesses that
Speaker 7: are saying they're not excited about hiring.
Speaker 5: So all of these indicators are going in one direction.
Speaker 1: At the same time, we've been seeing signs of cracks
Speaker 1: for a really long time. People expected things to weaken.
Speaker 5: Substantially earlier this year. They haven't.
Speaker 1: Late last year they didn't. So at what point do
Speaker 1: you have conviction. This time is different.
Speaker 7: So I think a lot of those calls were maybe
Speaker 7: not wrong, but just very premature. And the cycle has
Speaker 7: just extended a lot longer than many people thought. And
Speaker 7: what we were going through in the labor market was
Speaker 7: a kind of normalization. We had job openings that were
Speaker 7: extremely elevated, We had just incredible will need to hire
Speaker 7: people and restaff and we've really worked through a lot
Speaker 7: of that.
Speaker 5: Now when we look at these trends, take the quit rate.
Speaker 7: And yesterday's Jolts report, that's a decade low, and what
Speaker 7: that's telling us is that this isn't just normalization.
Speaker 5: At this point.
Speaker 7: This is people that at least in the last ten years,
Speaker 7: people have not been this worried about holding onto a job,
Speaker 7: which really.
Speaker 1: Raises an interesting question about tomorrow's non farm payrolls report.
Speaker 1: We're talking about how how high numbers will be and
Speaker 1: how high numbers have been, and it really is one
Speaker 1: of the reasons why people say this is a robust
Speaker 1: labor market. Are you saying that those numbers inaccurately represent
Speaker 1: the true labor market and are distorted by immigration, by
Speaker 1: other types of features that.
Speaker 5: Really might mask a real level.
Speaker 1: Of weakness that could catch us to as sooner than
Speaker 1: many people think.
Speaker 5: I think that's right.
Speaker 7: And one of the great things about being a US
Speaker 7: economist is we have an incredible range of data to
Speaker 7: draw on, especially with something like the labor market. So
Speaker 7: the biggest focus is usually right that establishment survey, non
Speaker 7: farm payrolls, those have been strong. If you look at
Speaker 7: almost any other labor market indicator, they range from slightly
Speaker 7: weaker to that than that to a lot weaker than that.
Speaker 7: Take the household survey. That's where the unemployment rate comes from.
Speaker 7: The unemployment rate has been moving up because employment in
Speaker 7: the household survey has been softer. Take the Business Employment
Speaker 7: Dynamics survey. Now this is something most people don't watch.
Speaker 7: It comes out very, very lagged. The numbers just came
Speaker 7: out from Q three. Nine million firms that are accounted
Speaker 7: for in this This is really the official data on
Speaker 7: what firms we're doing in Q three.
Speaker 5: If you look at that data, we lost jobs in
Speaker 5: the third quarter. I'm not saying that actually happen.
Speaker 7: But you look at all these different data points, you
Speaker 7: kind of PLoP them all together and try to figure
Speaker 7: out where the trend is.
Speaker 5: That trend is towards a weaker job market.
Speaker 2: Let's take a look at the heart landing versus solft
Speaker 2: landing shop. We'll do that together. I'll do it in
Speaker 2: the air for you. It's been a long night, okay,
Speaker 2: So soft landing here, all right? Heart landing over here,
Speaker 2: self landing and macular disinflation, big supply side recovery, et cetera,
Speaker 2: et cetera. Sounds like you're somewhere over here. Is that fair?
Speaker 2: You're looking for something close to a heart land in
Speaker 2: this year?
Speaker 5: That's fair?
Speaker 7: And I think that markets have actually moved away from
Speaker 7: this soft landing idea. It's pretty clear from the inflation
Speaker 7: data that we're not getting the soft landing. If activity
Speaker 7: holds up, then maybe we're going to have more of
Speaker 7: an issue with inflation. The reason I think that the
Speaker 7: Fed's going to see enough to cut is because that's right,
Speaker 7: We're more towards that hard landing end of the spectrum.
Speaker 2: So when you look at market pricing, and this has
Speaker 2: echoes of a conversation we had with Gershen distant found
Speaker 2: of a lince Burn steam in the last week. Do
Speaker 2: you see the pricing of say one rate cut this
Speaker 2: year as just a weighted average of a whole range
Speaker 2: of possibilities and maybe not the most likely outcome.
Speaker 7: That's right, markets are always going to average over all
Speaker 7: the possibilities. And you heard Chair Powell, it was kind
Speaker 7: of this multiverse of possible Fed outcomes. Yesterday they could
Speaker 7: not cut at all. They could be cutting. I think
Speaker 7: what's important is a symmetry of the Fed's reaction function.
Speaker 7: You don't need both softer inflation and a weaker labor market.
Speaker 7: You just need one or the other, and that's why
Speaker 7: they're going to cut.
Speaker 1: It's fascinating to me that you said we're not getting
Speaker 1: a soft landing. You expect one hundred basis points of
Speaker 1: federal cuts. Is that basically you saying that you think
Speaker 1: the damage will be done enough that even one hundred
Speaker 1: basis points of rate cuts won't be able to give
Speaker 1: that sort of surge of stimulus into the economy soon
Speaker 1: enough to stave off a real downturn.
Speaker 7: This is what happens in almost every monetary policy cycle,
Speaker 7: and I don't think that there's good reason to think
Speaker 7: that this cycle is going to be different. We have
Speaker 7: inflation that's run higher than expected, still higher than expected
Speaker 7: even in the first quarter, that has kept policy rates
Speaker 7: higher for longer.
Speaker 5: We're in the higher for longer stage of the policy cycle.
Speaker 7: The next stage of the policy cycle is a weakening
Speaker 7: of the labor market. Once it starts gradually weakening, it
Speaker 7: then weakens more sharply. I think that's exactly what's playing
Speaker 7: out now.
Speaker 2: Just quickly. How united is that commits see on the FMC.
Speaker 7: I think there are a lot of different views around
Speaker 7: the table right now, and I think Powell is probably
Speaker 7: something of a master in terms of somehow bringing things
Speaker 7: enough together to do that press conference.
Speaker 2: Yesterday Andrew Houn host Stephan I'm wonderful to catch up
Speaker 2: with you, sir. The stock is just about positive in
Speaker 2: the pre market. Can you talk to me about how
Speaker 2: you're balancing cost cutting with investing in innovation given what's
Speaker 2: in the pipeline.
Speaker 8: Sure, well, good morning, Thank you for having me so
Speaker 8: very pleased with a quote. We basically try to focus
Speaker 8: on how do we drive sales, how do we drive
Speaker 8: R and D, how do we prioritize opportunities, which is why,
Speaker 8: for example, we announced that we are stopping the partnership
Speaker 8: with Metagenomy in research engine editing.
Speaker 5: Same thing if you.
Speaker 8: Look at the portfolio we're looking very carefully at all investments.
Speaker 8: And a good thing about those vaccines like respiratory vaccines
Speaker 8: is your only pay the fase free study. What So
Speaker 8: if you think about COVID, we still have sales from COVID,
Speaker 8: but the investment in the idea of COVID has come
Speaker 8: down a lot. As you said ours, we we are
Speaker 8: antipating a launch this spring, but we're not going to
Speaker 8: do another phase three four URSV. So you can still
Speaker 8: basically have a lot of new studies going on on
Speaker 8: reusing the capital you used to put in the other
Speaker 8: products before. And then if you look at oncology, as
Speaker 8: you know, when a fifty to fifty profit shared with Merk,
Speaker 8: so merk is paying half of a face free study.
Speaker 8: So that's how we're managing. When we're seeing a lot
Speaker 8: in technology. You might have seen last week an announcement
Speaker 8: with open Ai. We have actually more than seven or
Speaker 8: fifty gpt is going and that is helping us a
Speaker 8: lot scale the company across not only science, but striving
Speaker 8: a lot of productivity in manufacturing, in commercial illegal So
Speaker 8: that's kind of how we're doing it.
Speaker 2: So Stephan, let's talk about something that our colleagues here
Speaker 2: at Bloomberg are extremely focused on and that's your RSV show,
Speaker 2: which according to our colleagues, some data is showing that
Speaker 2: maybe it doesn't last as long as others in the market.
Speaker 2: What we all want to know here at Bloomberger is
Speaker 2: whether that raises questions about the promise of your technology
Speaker 2: in treating other diseases. How would you answer that?
Speaker 8: So we first said that if you look at the
Speaker 8: data the duration of the over vaccines, they are very similar.
Speaker 8: So I don't think it is scientifically correct to say
Speaker 8: that one of a vaccine doesn't last as long as
Speaker 8: the ones of a tool that are improved. And our
Speaker 8: look at the data. This will be debated at the
Speaker 8: CDC meeting at the end of drewn that for recommendations.
Speaker 8: So this doesn't worry me. If you look at duration,
Speaker 8: the duration of vaccination is induced by T cell. If
Speaker 8: you look at cancer product, the only reason it works
Speaker 8: is T cells, not antibodies. Antibodies don't have a rowing cancer.
Speaker 8: It's about T cells going and attacking your cancer. If
Speaker 8: a vaccine technology don't have good T cell response, the
Speaker 8: cancer product will not look as good as it is.
Speaker 8: So I'm not worried at all about duration.
Speaker 1: Pretty much every time we speak Stepan, I ask you basically,
Speaker 1: have we couraged cancer yet? So I'm glad that you
Speaker 1: went there because that's been sort of one of the
Speaker 1: big questions and I hope for a lot of the
Speaker 1: mRNA vaccines. You have this melanoma vaccine in the works.
Speaker 5: What more do you have to do.
Speaker 1: To get it sort of set up for the approval
Speaker 1: process to apply for that? And are you using artificial
Speaker 1: intelligence to extracite.
Speaker 5: That great question?
Speaker 8: So if you look at cancer treatment in melanoma, we've
Speaker 8: said that we need to achieve three things to be
Speaker 8: able to talk to regulator about accelerated approval. So the
Speaker 8: face to day ties data we shared on the show
Speaker 8: several times, we see duration. If you remember in December
Speaker 8: we had a three year survival, it was better than
Speaker 8: the two year survival. So the difference between people on
Speaker 8: all treatment and people that are just getting cathedral is
Speaker 8: getting wider. So there's a very strong evidence that the
Speaker 8: drug is working. So that's number one. Number two is
Speaker 8: we need a phase free study to be substantially enrolled,
Speaker 8: and so we are working very actively. Face free study
Speaker 8: started two months earlier than planned last summer and so
Speaker 8: when we are substantially enrolled, we will meet that criteria
Speaker 8: and it could be later this year. And the third
Speaker 8: one is a plant, because of course we need to
Speaker 8: file in the restrection does all the information about the
Speaker 8: manufacturing process BFD, and the day you file is allowed
Speaker 8: to go of course audit your plant. That plant is
Speaker 8: being built. I had the chance to go there two
Speaker 8: weeks ago. The team is working NonStop, scheduling literally by
Speaker 8: the days, a bit like we did during COVID during
Speaker 8: the pandemic, and so I ancipate that potentially sometime next year.
Speaker 8: You know, the if a regulator was willing to look
Speaker 8: at the acceleted approval file, we should have this product
Speaker 8: available to help a lot of people, because one in
Speaker 8: two people benefit with notices coming back or no deaths
Speaker 8: compared to the best drug available today to them on
Speaker 8: the market.
Speaker 1: Stephan, can you just give us a sense of you
Speaker 1: talk about artificial intelligence. Everyone's talking about artificial intelligence.
Speaker 5: Could you just talk.
Speaker 1: About how much that could expedite generally some of the
Speaker 1: drug production that we're seeing. Just how much that could
Speaker 1: really get us to achieve, you know, that cure for cancer,
Speaker 1: that cure for als, cure for Alzheimer's. You know, it's
Speaker 1: funny you're talking about sex and city. I sit around
Speaker 1: and worry about these things. You know, what do we
Speaker 1: secure these things? So I'm just wondering. You know, this
Speaker 1: is going to be in our lifetime in the next
Speaker 1: couple of years because of some of the machine learning.
Speaker 8: Yes, So I think there's a few things to tear
Speaker 8: part in your in your great question. First is I
Speaker 8: think machine learning in academic labs, in research labs, in
Speaker 8: industry is helping accelerate the understanding of a human body.
Speaker 5: If you think about you know, this.
Speaker 8: Is Alzheimer and others complicated disease that we do not
Speaker 8: have solutions for yet as a society. It's because we
Speaker 8: do not understand the biology. We do not understand how
Speaker 8: the disease happened, how a disease evolved, and so we
Speaker 8: are just trying things and some work, but very few work.
Speaker 8: Most of them don't work because we're just trying and guessing.
Speaker 8: If you look at biology, once we understand that something works,
Speaker 8: then the industry can comes with very very good actions
Speaker 8: to deal with those. So I think AI will accelerate
Speaker 8: the understanding of biology, which would be fundamental to bring
Speaker 8: new Then AI is already used to accelerate discovery in
Speaker 8: terms of what tool do you go after a disease
Speaker 8: once you understand it at modern already we have different
Speaker 8: chemical matters that are generated by our AI system that
Speaker 8: are helping us to accelerate the work that humans are doing.
Speaker 8: So it's an accelerator to the teams. And then there's
Speaker 8: a huge chapter on productivity. If you think about clinical
Speaker 8: development phase one, two and three, it's basically doing experiment
Speaker 8: in human getting the data, finding the doors, doing more experiment,
Speaker 8: and when you have all studied on, you gather all
Speaker 8: the data and you submit by realator. My point is
Speaker 8: it's all about data. We are literally hundreds of business
Speaker 8: processes that need to happen, and I think many of those,
Speaker 8: if not most of those, you've got to be able
Speaker 8: to apply AI to shrink time to go faster. An
Speaker 8: example we shared in March in a Vaccine Day, the
Speaker 8: team wrote a GPT to help us to do those selections.
Speaker 8: When you do clinical study your phase one, you try
Speaker 8: several those is and then based on the data you
Speaker 8: get in the clinic, you decide which jows go into
Speaker 8: your phase free.
Speaker 5: Well, it used to.
Speaker 8: Take around a monph to do that by having people
Speaker 8: and meeting and experts looking at the data. Will we
Speaker 8: develop a GPT that basically get all the data from
Speaker 8: the clinical study and suggest to us a doose in
Speaker 8: literally a minutes or two. That is already a tool
Speaker 8: that has been developed that I've seen used at the company.
Speaker 8: There's just one example. So here you go to shrink
Speaker 8: them off. And if you do that on the hundreds
Speaker 8: of business processes that have to happen in preparing the
Speaker 8: drug for the clinic, the clinical testing, the analyzing of
Speaker 8: the data, the communication with VFDA. I think you can
Speaker 8: save a lot of time. I don't know yet, because
Speaker 8: only history will show us in the next few years,
Speaker 8: can you shave thirty percent, forty percent, fifty percent of
Speaker 8: how many years it takes you to develop a drug?
Speaker 2: I think it's going to be very significant. Stephan, We've
Speaker 2: got to leave there. Is fantastic to catch up. This
Speaker 2: amazing to listen to you talk about the efforts taking
Speaker 2: place at Maderna. But then see have Stephan bands. This
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