1 00:00:05,800 --> 00:00:08,720 Speaker 1: Welcome to the Bloomberg p m L Podcast. I'm Pim Fox. 2 00:00:08,760 --> 00:00:11,520 Speaker 1: Along with my co host Lisa Bramowitz. Each day we 3 00:00:11,640 --> 00:00:15,120 Speaker 1: bring you the most important, noteworthy, and useful interviews for 4 00:00:15,200 --> 00:00:17,840 Speaker 1: you and your money, whether you're at the grocery store 5 00:00:17,960 --> 00:00:20,720 Speaker 1: or the trading floor. Find the Bloomberg p m L 6 00:00:20,840 --> 00:00:33,239 Speaker 1: Podcast on Apple Podcasts, SoundCloud, and Bloomberg dot com. Yesterday, 7 00:00:33,240 --> 00:00:36,599 Speaker 1: the Curious Exchange Commission rejected her request to list a 8 00:00:36,680 --> 00:00:40,279 Speaker 1: Bitcoin e t F run by the Winklevoss Brothers. They 9 00:00:40,280 --> 00:00:43,160 Speaker 1: were study concerns about the reliability of trading and volume 10 00:00:43,240 --> 00:00:47,440 Speaker 1: data for the cryptocurrency. Hester Purse was the only SEC 11 00:00:47,640 --> 00:00:50,760 Speaker 1: commissioner to dissent from that ruler ruling, saying that she 12 00:00:50,760 --> 00:00:53,239 Speaker 1: would have allowed the Bitcoin e TF to listen. She 13 00:00:53,320 --> 00:00:55,480 Speaker 1: joins US now, commission or thank you so much for 14 00:00:55,560 --> 00:00:57,800 Speaker 1: joining us. I want to start with why did you 15 00:00:57,840 --> 00:01:01,080 Speaker 1: disagree with your colleagues on this issue? Sure, thanks for 16 00:01:01,120 --> 00:01:04,520 Speaker 1: having me on. I I disagreed because it was really 17 00:01:04,560 --> 00:01:08,720 Speaker 1: a technical disagreement. I think that the way this was 18 00:01:08,840 --> 00:01:12,759 Speaker 1: presented to US is an exchange presented to US um 19 00:01:13,040 --> 00:01:16,400 Speaker 1: this this a rule change which would allow them to 20 00:01:17,640 --> 00:01:22,399 Speaker 1: trade this particular product and um, the standards by which 21 00:01:22,400 --> 00:01:25,000 Speaker 1: we review that should be whether or not the exchange 22 00:01:25,160 --> 00:01:29,440 Speaker 1: can manage trading in that product, and instead, I think 23 00:01:29,480 --> 00:01:33,520 Speaker 1: we looked to the underlying bitcoin market and we um, 24 00:01:33,600 --> 00:01:36,959 Speaker 1: we looked at things in that market that we we 25 00:01:37,040 --> 00:01:39,360 Speaker 1: didn't like, and we said we're not going to let 26 00:01:39,400 --> 00:01:42,840 Speaker 1: the product trade, which to me doesn't seem like the 27 00:01:42,920 --> 00:01:45,560 Speaker 1: right approach at all. Commissioner person, I was reading your 28 00:01:45,560 --> 00:01:48,840 Speaker 1: descent and I found it really interesting. The implication seemed 29 00:01:48,880 --> 00:01:52,080 Speaker 1: to be that a bitcoin e t F may help 30 00:01:52,200 --> 00:01:56,200 Speaker 1: actually bring more transparency to the market. Was I reading 31 00:01:56,200 --> 00:01:59,200 Speaker 1: that correctly right? I think that in this case, it 32 00:01:59,240 --> 00:02:02,520 Speaker 1: wasn't an e t F specifically, but an exchange traded product, 33 00:02:02,560 --> 00:02:07,240 Speaker 1: which would would allow institutions to play a bigger role 34 00:02:07,280 --> 00:02:09,680 Speaker 1: in the bitcoin market, which I think would would be 35 00:02:09,720 --> 00:02:11,600 Speaker 1: good for the market, and I think would be good 36 00:02:11,639 --> 00:02:15,880 Speaker 1: for retail investors as well. Just can you offer your 37 00:02:16,480 --> 00:02:20,680 Speaker 1: definition of what is a cryptocurrency and what is behind 38 00:02:20,880 --> 00:02:25,520 Speaker 1: the potential value in a cryptocurrency? Well, I think there 39 00:02:25,560 --> 00:02:30,160 Speaker 1: are many different cryptocurrencies, so I think it's hard to 40 00:02:30,440 --> 00:02:34,800 Speaker 1: provide one definition for all cryptocurrencies. Um. You know, bitcoin 41 00:02:34,880 --> 00:02:38,320 Speaker 1: has been traded for quite some time, and and offers 42 00:02:38,400 --> 00:02:42,079 Speaker 1: the ability for people to exchange value in a very 43 00:02:42,120 --> 00:02:46,680 Speaker 1: efficient way. UM. And So you know, I think that 44 00:02:46,720 --> 00:02:49,160 Speaker 1: there there are a lot of people think that there's 45 00:02:49,360 --> 00:02:53,040 Speaker 1: real potential in bitcoin. UM. As I said in my descent, 46 00:02:53,080 --> 00:02:55,240 Speaker 1: I'm not trying to make a judgment one way or 47 00:02:55,280 --> 00:02:58,520 Speaker 1: the other on bitcoin or any cryptocurrency. I'm just trying 48 00:02:58,520 --> 00:03:02,880 Speaker 1: to give investors an opportunity to participate in this market. So, 49 00:03:03,200 --> 00:03:06,359 Speaker 1: Commissioner I was interested by a study that came out 50 00:03:06,400 --> 00:03:09,440 Speaker 1: by coin Metrics this week that showed that up to 51 00:03:09,480 --> 00:03:12,440 Speaker 1: two thirds of the transaction activity registered on the bitcoin 52 00:03:12,520 --> 00:03:17,040 Speaker 1: network has no economic value, with volumes being more influenced 53 00:03:17,040 --> 00:03:21,080 Speaker 1: by reshuffling balances between accounts and outright scams. So how 54 00:03:21,160 --> 00:03:25,480 Speaker 1: did the Winklevoss brothers propose to offset that with their 55 00:03:25,480 --> 00:03:27,919 Speaker 1: e t F that would give sort of more confidence 56 00:03:27,919 --> 00:03:31,520 Speaker 1: to the institutional investors. Well, the way this product was 57 00:03:31,560 --> 00:03:34,040 Speaker 1: set up, as it was pegged to the price on 58 00:03:34,040 --> 00:03:37,920 Speaker 1: on one exchange to the auction the closing auction at 59 00:03:37,960 --> 00:03:41,480 Speaker 1: the end of the day, and so that was that 60 00:03:41,560 --> 00:03:43,520 Speaker 1: was how they chose to do it. There are other 61 00:03:43,840 --> 00:03:46,840 Speaker 1: there are other approaches that one could take, and others 62 00:03:46,960 --> 00:03:51,200 Speaker 1: have come in with different potential potential suggestions of how 63 00:03:51,240 --> 00:03:54,880 Speaker 1: to do that. But again, I mean as you get 64 00:03:55,160 --> 00:03:59,920 Speaker 1: more institutions involved, the markets are going to become more regular, regularized, 65 00:04:00,080 --> 00:04:02,920 Speaker 1: and you know as to whether or not there's economic 66 00:04:03,080 --> 00:04:05,480 Speaker 1: value in particular trading. I think we need to be 67 00:04:05,560 --> 00:04:08,800 Speaker 1: careful in making those kind of kinds of judgments UM 68 00:04:09,000 --> 00:04:11,240 Speaker 1: in our equity markets to there are people who are 69 00:04:11,320 --> 00:04:14,000 Speaker 1: involved in the markets for all different reasons. We have 70 00:04:14,080 --> 00:04:16,920 Speaker 1: people who are who are planning to buy and hold 71 00:04:16,960 --> 00:04:19,440 Speaker 1: for long term, we have people who are holding for 72 00:04:19,560 --> 00:04:22,560 Speaker 1: much shorter for much shorter time frames. And we have 73 00:04:22,600 --> 00:04:25,840 Speaker 1: people who are UM providing liquidity and who are trading 74 00:04:25,839 --> 00:04:28,680 Speaker 1: in and out quite rapidly, and all of those different 75 00:04:28,680 --> 00:04:31,560 Speaker 1: people have a different function in the market. But but 76 00:04:31,720 --> 00:04:35,160 Speaker 1: I don't think we need to make judgments about UM 77 00:04:35,279 --> 00:04:38,840 Speaker 1: whether their their activity has value or not. Commissioner, do 78 00:04:38,880 --> 00:04:42,200 Speaker 1: you think that there's a regulatory bias against bitcoin right 79 00:04:42,200 --> 00:04:46,240 Speaker 1: now and cryptocurrencies because there are people questioning whether they 80 00:04:46,240 --> 00:04:48,560 Speaker 1: have inherent value and whether they are a bubble that 81 00:04:48,680 --> 00:04:52,560 Speaker 1: have sort of nothing behind them. Well, I think there 82 00:04:52,560 --> 00:04:55,680 Speaker 1: are people who are questioning the value of bitcoin UM, 83 00:04:55,720 --> 00:04:59,560 Speaker 1: and I think that as regulators, our role is not 84 00:04:59,720 --> 00:05:03,240 Speaker 1: to judge investments, what the what the value of an 85 00:05:03,279 --> 00:05:05,880 Speaker 1: investment is. It's to give people an opportunity to make 86 00:05:05,880 --> 00:05:09,080 Speaker 1: those judgments themselves. UM. And you know, there are a 87 00:05:09,120 --> 00:05:12,880 Speaker 1: lot of very very smart people who are very engaged 88 00:05:12,920 --> 00:05:17,400 Speaker 1: in the crypto space and have UM have real ideas 89 00:05:17,400 --> 00:05:19,440 Speaker 1: about how it could transform our lives. And I think 90 00:05:19,440 --> 00:05:23,040 Speaker 1: we need to give those people an opportunity to UM 91 00:05:23,279 --> 00:05:26,599 Speaker 1: work work with with what they have, and to to 92 00:05:26,680 --> 00:05:29,000 Speaker 1: see what they can make of it. And and I'd 93 00:05:29,120 --> 00:05:32,960 Speaker 1: rather that we as regulators make sure that disclosure is good, 94 00:05:33,120 --> 00:05:35,600 Speaker 1: which is which is certainly a key part of our 95 00:05:36,080 --> 00:05:40,800 Speaker 1: responsibility UM, but then allow investors to make their own choices. Commissioners, 96 00:05:40,920 --> 00:05:45,000 Speaker 1: do you expect that your fellow commissioners will change their 97 00:05:45,040 --> 00:05:48,880 Speaker 1: mind and could approve a bit coin or other cryptocurrency 98 00:05:48,960 --> 00:05:52,920 Speaker 1: e t F in the near future. Well, I do 99 00:05:53,000 --> 00:05:55,240 Speaker 1: think it's possible. I mean, things in this space are 100 00:05:55,320 --> 00:05:58,200 Speaker 1: changing fast and and UM some of the concerns that 101 00:05:58,240 --> 00:06:01,000 Speaker 1: have been laid out by the commission are ones that 102 00:06:01,360 --> 00:06:05,000 Speaker 1: you know every day people are working on developing solutions 103 00:06:05,040 --> 00:06:07,960 Speaker 1: and addressing those concerns. So I think if we work 104 00:06:08,040 --> 00:06:11,440 Speaker 1: with people in this space, UM, we may be able 105 00:06:11,440 --> 00:06:14,560 Speaker 1: to get more comfortable about things that that have, uh, 106 00:06:14,720 --> 00:06:18,080 Speaker 1: that have raised concerns from my colleagues. So I can't 107 00:06:18,120 --> 00:06:20,880 Speaker 1: speak for them, you know, I can say from my perspective, 108 00:06:20,960 --> 00:06:23,600 Speaker 1: I think we could have gone forward with this with 109 00:06:23,720 --> 00:06:28,320 Speaker 1: this particular et P, and I think that, uh, doing 110 00:06:28,360 --> 00:06:31,080 Speaker 1: so would have been would have been the right thing 111 00:06:31,160 --> 00:06:34,679 Speaker 1: to do for investors. What do you think should happen 112 00:06:34,680 --> 00:06:38,279 Speaker 1: in order to mitigate the agency's concerns over fraudulent and 113 00:06:38,400 --> 00:06:46,200 Speaker 1: manipulative acts or practices that could be perpetrated using cryptocurrencies. Well, 114 00:06:46,240 --> 00:06:50,599 Speaker 1: I think that in many underlying you know, in many 115 00:06:50,920 --> 00:06:54,960 Speaker 1: many assets, underlying products that trade on our exchanges, their 116 00:06:55,000 --> 00:06:59,000 Speaker 1: concerns about manipulation and so um. Yeah, But what could 117 00:06:59,000 --> 00:07:01,800 Speaker 1: specifically be in order to mitigate this having to do 118 00:07:01,839 --> 00:07:06,480 Speaker 1: with cryptocurrencies because this is an unregulated offshore market, Well, 119 00:07:07,480 --> 00:07:11,400 Speaker 1: there there are onshore markets and offshore markets, so you're 120 00:07:11,520 --> 00:07:15,520 Speaker 1: you're right, it's a global marketplace, uh, And and there 121 00:07:15,560 --> 00:07:19,160 Speaker 1: are players involved in this space who are very interested 122 00:07:19,200 --> 00:07:22,640 Speaker 1: in making sure that there's no manipulation. And so there 123 00:07:22,880 --> 00:07:26,000 Speaker 1: is quite a bit of self regulation going on right 124 00:07:26,040 --> 00:07:29,880 Speaker 1: now to address manipulation or or charges The manipulation, and 125 00:07:29,960 --> 00:07:32,920 Speaker 1: I think that's valuable um and I think if we 126 00:07:32,920 --> 00:07:37,800 Speaker 1: were to bring in the possibility of more institutionalization in 127 00:07:37,840 --> 00:07:40,880 Speaker 1: the market, I think there would be even more watching 128 00:07:40,960 --> 00:07:43,400 Speaker 1: for manipulation that would be going on by people who 129 00:07:43,480 --> 00:07:48,080 Speaker 1: definitely have skin in the game. So, yes, there there 130 00:07:48,200 --> 00:07:51,920 Speaker 1: is manipulation and and and there is the potential from 131 00:07:52,040 --> 00:07:57,320 Speaker 1: manipulation and lots of markets and and we uh, we 132 00:07:57,360 --> 00:08:00,560 Speaker 1: can see that that people involved in the those markets 133 00:08:00,600 --> 00:08:04,720 Speaker 1: take steps to address that. And and so obviously the 134 00:08:04,840 --> 00:08:07,520 Speaker 1: exchange that would be offering this product has a real 135 00:08:07,640 --> 00:08:10,880 Speaker 1: interest in making sure that it's offering a product that 136 00:08:11,680 --> 00:08:14,480 Speaker 1: isn't being manipulated, and if it sees problems in the 137 00:08:14,560 --> 00:08:17,640 Speaker 1: underlying it can step in and stop trading. We've got 138 00:08:17,640 --> 00:08:18,920 Speaker 1: to leave it there, But I want to thank you 139 00:08:19,000 --> 00:08:21,480 Speaker 1: very much for your time and your comments. Hester Purse, 140 00:08:21,840 --> 00:08:26,680 Speaker 1: Securities and Exchange Commissioner, speaking about the rejection of the 141 00:08:26,760 --> 00:08:45,520 Speaker 1: VINKL Boss Twins Crypto e t F. Another company that 142 00:08:45,559 --> 00:08:48,720 Speaker 1: has been in the news is n XP a semiconductor 143 00:08:49,120 --> 00:08:54,040 Speaker 1: Why because Qualcom was looking to acquire the company, but 144 00:08:54,480 --> 00:08:57,360 Speaker 1: that deal has gone by the wayside. And here to 145 00:08:57,360 --> 00:08:59,720 Speaker 1: tell us a little bit more about it is Rick Klemmer, 146 00:09:00,240 --> 00:09:04,360 Speaker 1: President and the chief executive of an XP Semiconductors. Thank 147 00:09:04,360 --> 00:09:07,320 Speaker 1: you very much for being here. Maybe just explain why 148 00:09:07,360 --> 00:09:10,720 Speaker 1: do you believe the deal didn't get done. Well, you know, 149 00:09:10,760 --> 00:09:13,000 Speaker 1: it's hard for us to understand completely. We don't think 150 00:09:13,000 --> 00:09:16,240 Speaker 1: there was any real regulatory issue that prevented the transaction 151 00:09:16,320 --> 00:09:19,120 Speaker 1: from being approved in China. It was approved by twenty 152 00:09:19,200 --> 00:09:22,600 Speaker 1: something other countries around the world, so it really wasn't 153 00:09:22,600 --> 00:09:25,720 Speaker 1: a true regulatory issue, So it was probably a political issue. 154 00:09:25,760 --> 00:09:28,320 Speaker 1: But you know, at this point in time, it's all 155 00:09:28,360 --> 00:09:30,280 Speaker 1: about how we move forward and how we can get 156 00:09:30,320 --> 00:09:32,800 Speaker 1: back to driving the growth that's the best for our 157 00:09:32,840 --> 00:09:35,760 Speaker 1: company and our shareholders. When you talk about moving forward, 158 00:09:35,800 --> 00:09:38,199 Speaker 1: I have to wonder did you get about ten calls 159 00:09:38,280 --> 00:09:42,360 Speaker 1: from other potential acquirers right after that saying hey, I 160 00:09:42,400 --> 00:09:45,520 Speaker 1: want to meet for coffee. We haven't, and you know 161 00:09:45,640 --> 00:09:47,720 Speaker 1: we don't plan on doing that. I mean, with the 162 00:09:47,840 --> 00:09:50,760 Speaker 1: issue being the regulatory approval process, I don't know why 163 00:09:50,800 --> 00:09:53,000 Speaker 1: it would be any different with anyone else. So you know, 164 00:09:53,040 --> 00:09:54,920 Speaker 1: we have a bright future when you look at where 165 00:09:54,960 --> 00:09:58,280 Speaker 1: we are, we're the leading semiconductor supplying to the automotive market, 166 00:09:58,559 --> 00:10:01,800 Speaker 1: very focused on autonomas driving, which really in the next 167 00:10:01,840 --> 00:10:04,800 Speaker 1: few years are actually probably next ten years, is about drive, 168 00:10:05,040 --> 00:10:09,240 Speaker 1: making driving safer, not really automatic driving, and so we're 169 00:10:09,280 --> 00:10:12,520 Speaker 1: focused on that. We're focused on facilitating the Internet of Things, 170 00:10:12,559 --> 00:10:15,360 Speaker 1: which you know is going to have seventy five billion 171 00:10:15,360 --> 00:10:19,200 Speaker 1: connected devices by three times what it is today. And 172 00:10:19,200 --> 00:10:22,440 Speaker 1: our technology really is in a position where it can 173 00:10:22,480 --> 00:10:25,199 Speaker 1: take advantage of that and really provides some useful solutions 174 00:10:25,280 --> 00:10:27,439 Speaker 1: for everyone. Now, just to knowe you have a career 175 00:10:27,440 --> 00:10:28,679 Speaker 1: that goes all the way back to the world of 176 00:10:28,760 --> 00:10:32,640 Speaker 1: Texas instruments. Correct, Okay, Uh. The reason I bring that 177 00:10:32,760 --> 00:10:38,120 Speaker 1: up is because an XP Semiconductor Phillips. I mean, that's 178 00:10:38,120 --> 00:10:41,560 Speaker 1: really can you look forward into and tell us what 179 00:10:41,600 --> 00:10:43,920 Speaker 1: do you think the chip company of the future is 180 00:10:43,920 --> 00:10:46,080 Speaker 1: really gonna look like? Well, you know, we're trying to 181 00:10:46,080 --> 00:10:48,160 Speaker 1: be sure that we're that. So I I get I 182 00:10:48,200 --> 00:10:50,520 Speaker 1: get that. But it's come through a lot of acquisitions 183 00:10:50,520 --> 00:10:53,360 Speaker 1: and combinations, and so we did a merger of equals 184 00:10:53,360 --> 00:10:55,680 Speaker 1: about three years ago with three freest which was the 185 00:10:55,720 --> 00:10:59,959 Speaker 1: Motorola Semiconductor company, and and that's proved to be very 186 00:11:00,040 --> 00:11:02,559 Speaker 1: successful for us in the automotive space where we can 187 00:11:02,600 --> 00:11:05,600 Speaker 1: bring the combination of both technologies together to be able 188 00:11:05,640 --> 00:11:08,920 Speaker 1: to make a difference for our customers in the car industry. 189 00:11:09,080 --> 00:11:12,400 Speaker 1: And so I think that those opportunities are really key. 190 00:11:12,640 --> 00:11:14,960 Speaker 1: But it's about focusing on the future. And you know, 191 00:11:15,120 --> 00:11:17,520 Speaker 1: we are in a unique position where we can provide 192 00:11:17,559 --> 00:11:20,640 Speaker 1: the processing and the security because with all the hacking 193 00:11:20,720 --> 00:11:24,160 Speaker 1: and risk of of hacking, being able to provide security 194 00:11:24,200 --> 00:11:28,199 Speaker 1: in the connected world as a critical value. What did 195 00:11:28,200 --> 00:11:30,360 Speaker 1: it do to morale to have this deal after so 196 00:11:30,480 --> 00:11:33,680 Speaker 1: much hype and so much drama fall apart. You know, 197 00:11:33,760 --> 00:11:37,200 Speaker 1: it was really interesting. Initially our organization was very excited 198 00:11:37,200 --> 00:11:40,000 Speaker 1: about the combination with Qualcom. When the confusion came in 199 00:11:40,120 --> 00:11:43,800 Speaker 1: when Broadcom made the hostile bid for Qualcom late last year, 200 00:11:44,040 --> 00:11:48,640 Speaker 1: it really created a damper on the environment because no 201 00:11:48,679 --> 00:11:50,559 Speaker 1: one was looking forward to be in a position to 202 00:11:51,120 --> 00:11:54,000 Speaker 1: be there. But you know, we've gotten through that fatigue. 203 00:11:54,040 --> 00:11:57,240 Speaker 1: Now the organization is re energized. We we had an 204 00:11:57,240 --> 00:11:59,960 Speaker 1: all hands meeting after the morning after it was announced, 205 00:12:00,000 --> 00:12:02,320 Speaker 1: and everyone was quite excited about the future and just 206 00:12:02,440 --> 00:12:05,559 Speaker 1: having certainty and clarity about where we're going. Just to 207 00:12:05,679 --> 00:12:09,720 Speaker 1: quickly when a client or a customer goes to a 208 00:12:09,840 --> 00:12:14,160 Speaker 1: store and pays using their mobile phone like Apple Pay 209 00:12:14,280 --> 00:12:18,280 Speaker 1: or Google Pay. What are they using an an XP product? 210 00:12:19,080 --> 00:12:22,280 Speaker 1: Most likely they are. We have roughly a d eighty 211 00:12:22,320 --> 00:12:25,000 Speaker 1: five percent market share in the mobile wallet. We invented 212 00:12:25,080 --> 00:12:29,640 Speaker 1: NFC some near field communications, yes absolutely, which facilitates the 213 00:12:29,679 --> 00:12:32,360 Speaker 1: mobile wallet, and so we're designed in and most of 214 00:12:32,360 --> 00:12:34,680 Speaker 1: those applications to be able to do that. We see 215 00:12:34,679 --> 00:12:38,199 Speaker 1: that expanding, especially in Asia where it's becoming much more 216 00:12:38,280 --> 00:12:42,280 Speaker 1: useful used for transit and other applications. Uh in India, 217 00:12:42,320 --> 00:12:44,800 Speaker 1: they're actually where people don't have a bank account are 218 00:12:44,840 --> 00:12:48,320 Speaker 1: now using their phone basically as their bank account to 219 00:12:48,360 --> 00:12:51,400 Speaker 1: facilitate transactions, to be able to store money, save money. 220 00:12:51,640 --> 00:12:54,360 Speaker 1: So we're seeing a real boom in usage in the 221 00:12:54,400 --> 00:12:57,360 Speaker 1: India for the population that really doesn't even have a 222 00:12:57,400 --> 00:13:00,880 Speaker 1: bank account today. So you know, Apple talking about your 223 00:13:00,920 --> 00:13:05,560 Speaker 1: smartphone use and and the smart pay. Apple has talked 224 00:13:05,640 --> 00:13:09,840 Speaker 1: about possibly creating more of its own chips and trying 225 00:13:09,880 --> 00:13:13,160 Speaker 1: to create more of its own infrastructure. How concerned are 226 00:13:13,160 --> 00:13:17,360 Speaker 1: you about that? Well, you know, Apple has certainly got 227 00:13:17,360 --> 00:13:20,440 Speaker 1: a bright future and they've clearly moved towards where they're 228 00:13:20,480 --> 00:13:24,040 Speaker 1: creating a significant amount of their own technology. I think 229 00:13:24,080 --> 00:13:27,559 Speaker 1: we're uniquely positioned with some key technology that they probably 230 00:13:27,600 --> 00:13:30,000 Speaker 1: don't want to invest in to be able to drive 231 00:13:30,120 --> 00:13:33,280 Speaker 1: based on the broad usage from a broad customer base 232 00:13:33,320 --> 00:13:35,480 Speaker 1: where they wouldn't be able to serve. So I think, 233 00:13:35,920 --> 00:13:37,719 Speaker 1: based on our experience, we think we have a good 234 00:13:37,760 --> 00:13:41,920 Speaker 1: relationship with OLI our uh you know, mobile handset customers, 235 00:13:41,920 --> 00:13:44,360 Speaker 1: and I think we can continue to make good progress there. 236 00:13:44,920 --> 00:13:47,839 Speaker 1: Biometric passports. I love the details of this stuff, so 237 00:13:47,880 --> 00:13:51,320 Speaker 1: I mean that's you as well, right, Biometric chips. We 238 00:13:51,320 --> 00:13:54,240 Speaker 1: we do the chip that's used in the electronic passport 239 00:13:54,320 --> 00:13:58,760 Speaker 1: that helps facilitate you know, processing information. So we do that. 240 00:13:58,840 --> 00:14:02,240 Speaker 1: And I think any six countries around the world, what 241 00:14:02,280 --> 00:14:04,600 Speaker 1: do you think is going to be the biggest smart 242 00:14:04,720 --> 00:14:07,959 Speaker 1: market that is not smart right now? In other words, 243 00:14:08,120 --> 00:14:11,920 Speaker 1: where chips going to be in the future that where 244 00:14:11,920 --> 00:14:14,120 Speaker 1: they aren't today. You know it's gonna be ever place. 245 00:14:14,200 --> 00:14:16,559 Speaker 1: You know, as you start thinking about seventy five billion, 246 00:14:17,000 --> 00:14:19,560 Speaker 1: you know it's huge. And so like your thermostat, all 247 00:14:19,600 --> 00:14:23,160 Speaker 1: thermostats are going to be connected. Security, your security and 248 00:14:23,200 --> 00:14:25,680 Speaker 1: your home or office or industry is all going to 249 00:14:25,720 --> 00:14:28,200 Speaker 1: be connected so you can see what's going on wherever 250 00:14:28,280 --> 00:14:32,400 Speaker 1: you are around the during your work day or around 251 00:14:32,520 --> 00:14:36,480 Speaker 1: travel or whatever. So I have regulators been working closely 252 00:14:36,520 --> 00:14:39,000 Speaker 1: with you Is they start to get concerned about surveillance 253 00:14:39,040 --> 00:14:41,720 Speaker 1: and safety and all that. We we work with a 254 00:14:41,840 --> 00:14:46,240 Speaker 1: number of governments relative to how to provide that best security. 255 00:14:46,320 --> 00:14:48,960 Speaker 1: But you know, with the new implementation of the you know, 256 00:14:49,000 --> 00:14:51,360 Speaker 1: the new acts in Europe, we have to be very 257 00:14:51,360 --> 00:14:54,000 Speaker 1: careful about that information and certainly we're working with them 258 00:14:54,000 --> 00:14:56,400 Speaker 1: to be able to protect it but not ensure that 259 00:14:56,400 --> 00:15:01,080 Speaker 1: it's not abused. Alright, well, I guess that uh, the 260 00:15:01,120 --> 00:15:04,200 Speaker 1: future of an XP semiconductor as you see it right 261 00:15:04,240 --> 00:15:09,480 Speaker 1: now independent. Absolutely, we look forward to continuing to drive 262 00:15:09,520 --> 00:15:11,880 Speaker 1: a bright future. And is the M and A wave 263 00:15:11,960 --> 00:15:14,800 Speaker 1: in the semiconductor space dead? You know, I don't know 264 00:15:14,840 --> 00:15:17,600 Speaker 1: that it's dead. It's clearly going to go through a 265 00:15:17,720 --> 00:15:22,040 Speaker 1: very thoughtful process. If this transaction didn't get approved in China, 266 00:15:22,080 --> 00:15:25,280 Speaker 1: where it was approved by the twentysomething countries around the world, 267 00:15:25,400 --> 00:15:27,480 Speaker 1: I think people are gonna have to really think about, 268 00:15:27,760 --> 00:15:29,600 Speaker 1: you know, how much risk they want to take. Twenty 269 00:15:29,640 --> 00:15:32,120 Speaker 1: one months is a long time to put your organization 270 00:15:32,200 --> 00:15:35,720 Speaker 1: into a disruptive nature. So I think there will have 271 00:15:35,760 --> 00:15:38,920 Speaker 1: to be a reflection associated with that. Did you feel 272 00:15:39,000 --> 00:15:43,640 Speaker 1: any of the effects of the ban on purchasing products 273 00:15:43,720 --> 00:15:50,120 Speaker 1: from China's ZTE Corporation purchase shipping product in Yes, we 274 00:15:50,400 --> 00:15:52,600 Speaker 1: z T is a good customer of ours, and just 275 00:15:52,720 --> 00:15:55,760 Speaker 1: last quarter we announced thirty one million dollar impact for 276 00:15:55,880 --> 00:15:59,120 Speaker 1: the fact that the US had had prevented that from 277 00:15:59,200 --> 00:16:02,160 Speaker 1: taking place. So I think they're a good customer. I think, 278 00:16:02,200 --> 00:16:05,360 Speaker 1: you know, it's important that you know the UH the 279 00:16:05,520 --> 00:16:09,760 Speaker 1: appropriate steps are taken to provide the security about information. 280 00:16:09,840 --> 00:16:12,280 Speaker 1: But with the proper oversight, it seems like it's only 281 00:16:12,280 --> 00:16:16,200 Speaker 1: appropriate for the company to be able to to be competitive. 282 00:16:16,280 --> 00:16:19,240 Speaker 1: There are no US companies that are still in that 283 00:16:19,360 --> 00:16:22,960 Speaker 1: market the ZT serves, so it's not certainly not like 284 00:16:23,040 --> 00:16:26,680 Speaker 1: it's UH anti competitive for any US company. And they 285 00:16:26,720 --> 00:16:29,440 Speaker 1: probably purchased around three and af or four billion dollars 286 00:16:29,480 --> 00:16:32,360 Speaker 1: a year of semiconductor components, and my guess is sent 287 00:16:33,080 --> 00:16:36,280 Speaker 1: percent of that is from US companies are US manufactured 288 00:16:36,360 --> 00:16:39,080 Speaker 1: like our product is. So you know, I think it's 289 00:16:39,080 --> 00:16:41,920 Speaker 1: a big decision, and you know, I I applaud what's 290 00:16:41,960 --> 00:16:45,160 Speaker 1: been done recently where they're putting them in a little 291 00:16:45,200 --> 00:16:48,760 Speaker 1: bit different fashion with appropriate oversight to protect U s 292 00:16:48,880 --> 00:16:53,000 Speaker 1: national security, but yet at less, at least letting them 293 00:16:53,040 --> 00:16:56,280 Speaker 1: continue to operate as an independent company. Rick Clamora, thank 294 00:16:56,320 --> 00:16:58,480 Speaker 1: you so much for being with us. Really a pleasure 295 00:16:58,480 --> 00:17:01,160 Speaker 1: to speak with you. You're such a celebrity and sort 296 00:17:01,160 --> 00:17:03,360 Speaker 1: of star of this soap opera we've been talking about 297 00:17:03,400 --> 00:17:06,920 Speaker 1: for so long. Uh, the potential tie up of Qualcom 298 00:17:06,960 --> 00:17:09,560 Speaker 1: and n XP. Rick Klemmer as a president and chief 299 00:17:09,600 --> 00:17:14,080 Speaker 1: executive of n XP Semiconductor's NXP Semiconductors to remain independent 300 00:17:14,480 --> 00:17:33,879 Speaker 1: for the foreseeable future, you know, talk about another curveball. 301 00:17:34,280 --> 00:17:37,520 Speaker 1: Investors in Twitter got a nice curveball and they whipped 302 00:17:38,000 --> 00:17:41,640 Speaker 1: down right now. And here to tell us a little 303 00:17:41,640 --> 00:17:44,800 Speaker 1: bit about Twitter's results and the changing nature of social 304 00:17:44,840 --> 00:17:48,000 Speaker 1: media is Jim Anderson. He is the chief executive of 305 00:17:48,200 --> 00:17:52,960 Speaker 1: social Flow. Uh. They are a company that sort of 306 00:17:53,080 --> 00:17:57,879 Speaker 1: measures and monitors flows of information on social media. And 307 00:17:58,040 --> 00:18:01,119 Speaker 1: in full disclosure, social Flow is a platform used by 308 00:18:01,320 --> 00:18:05,479 Speaker 1: Bloomberg for social media purposes. Jim Anderson, thanks very much 309 00:18:05,480 --> 00:18:08,320 Speaker 1: for being here. Tell us, did I describe what you 310 00:18:08,400 --> 00:18:11,480 Speaker 1: do at all accurately? You did. We're the platform most 311 00:18:11,520 --> 00:18:13,320 Speaker 1: of the big media companies used to get their content 312 00:18:13,400 --> 00:18:15,800 Speaker 1: out to Twitter, Facebook, and other social platforms. We do 313 00:18:16,000 --> 00:18:17,840 Speaker 1: a measure and sort of if you think about stock 314 00:18:17,880 --> 00:18:20,440 Speaker 1: market analysts, we're not an analyst of the stocks, where 315 00:18:20,440 --> 00:18:23,800 Speaker 1: an analysts consumer attention, right, And that's important because as 316 00:18:23,840 --> 00:18:27,239 Speaker 1: a publisher, you want to know whether real people are 317 00:18:27,320 --> 00:18:30,399 Speaker 1: really looking at your content. That's exactly right, that's the 318 00:18:30,560 --> 00:18:32,320 Speaker 1: entire game. If you can't get real people to pay 319 00:18:32,359 --> 00:18:34,879 Speaker 1: attention to what you're doing, why are you doing it? Okay? 320 00:18:35,119 --> 00:18:38,200 Speaker 1: Is Twitter getting more real people to do what they're 321 00:18:38,240 --> 00:18:41,000 Speaker 1: supposed to do on the Twitter platform? The irony is yes. 322 00:18:41,119 --> 00:18:42,680 Speaker 1: I mean you wouldn't know it from their stock price, 323 00:18:43,040 --> 00:18:45,480 Speaker 1: and I think the takeaway and Facebook in the same category. 324 00:18:45,520 --> 00:18:47,720 Speaker 1: When you're a tech growth stock and you're not growing 325 00:18:47,800 --> 00:18:50,040 Speaker 1: as much as is the market expected you to grow, 326 00:18:50,080 --> 00:18:52,320 Speaker 1: you're you're going to be punished. But the reality is 327 00:18:52,359 --> 00:18:54,920 Speaker 1: there are just as many, if not more, real people 328 00:18:55,080 --> 00:18:58,800 Speaker 1: using Facebook and Twitter today then there were six months ago, 329 00:18:59,200 --> 00:19:01,760 Speaker 1: three months ago, yesterday. I mean they're still growing, they're 330 00:19:01,800 --> 00:19:04,439 Speaker 1: just not growing as fast as they were and as 331 00:19:04,480 --> 00:19:07,200 Speaker 1: the market expects. And Twitter's results are sort of complicated 332 00:19:07,200 --> 00:19:08,920 Speaker 1: a little bit by this whole bond problem, and they're 333 00:19:08,920 --> 00:19:10,600 Speaker 1: trying to clean up their ecosystem when I think they 334 00:19:10,640 --> 00:19:13,440 Speaker 1: deserve amazing credit for trying to do that. But the numbers, 335 00:19:13,720 --> 00:19:15,719 Speaker 1: you know, the total accounts, and whether they report them 336 00:19:15,760 --> 00:19:17,440 Speaker 1: and whether they were including the numbers, you see a 337 00:19:17,480 --> 00:19:19,000 Speaker 1: lot of you know, sort of questions about how you 338 00:19:19,119 --> 00:19:22,560 Speaker 1: count these things. Well, Jim, you know, it's interesting that 339 00:19:22,760 --> 00:19:25,280 Speaker 1: you say that there are more real users that are 340 00:19:25,320 --> 00:19:29,560 Speaker 1: paying attention and signing up for Twitter and Facebook. Roger mcnameee, 341 00:19:29,680 --> 00:19:34,000 Speaker 1: one of the original investors in Facebook and currently head 342 00:19:34,040 --> 00:19:36,760 Speaker 1: of Elevation Partners, was on Bloomberg Television yesterday and he 343 00:19:36,880 --> 00:19:39,960 Speaker 1: said that he thinks that Facebook in particular is running 344 00:19:40,040 --> 00:19:43,600 Speaker 1: out of potential users in its more profitable markets. Do 345 00:19:43,640 --> 00:19:46,800 Speaker 1: you agree, yes. I mean Facebook's over two billion people 346 00:19:46,920 --> 00:19:48,960 Speaker 1: and there's seven and a half billion people on the planet. 347 00:19:49,040 --> 00:19:51,000 Speaker 1: You know that a significant number of them aren't going 348 00:19:51,040 --> 00:19:53,520 Speaker 1: to be candidates for for Facebook for all kinds of reasons. 349 00:19:53,520 --> 00:19:56,919 Speaker 1: So I think that's absolutely uh been on their horizon 350 00:19:57,000 --> 00:19:59,160 Speaker 1: for a long time. It's an open question how far 351 00:19:59,240 --> 00:20:01,080 Speaker 1: can they grow. Of course, you have to wrap up 352 00:20:01,119 --> 00:20:03,240 Speaker 1: Instagram in there, which is owned by Facebook. You have 353 00:20:03,320 --> 00:20:05,359 Speaker 1: to wrap up What'sapp. So again you get into these 354 00:20:05,440 --> 00:20:07,960 Speaker 1: counting questions. But without a doubt that that point I 355 00:20:08,040 --> 00:20:09,840 Speaker 1: think has to be front and center. How big can 356 00:20:09,840 --> 00:20:14,360 Speaker 1: you possibly grow? Having said that, if you are an advertiser, 357 00:20:15,000 --> 00:20:19,639 Speaker 1: what is the alternative? Is it Amazon? Well? Increasingly so. 358 00:20:19,840 --> 00:20:21,600 Speaker 1: I mean I think it's interesting. You know, we talked 359 00:20:21,600 --> 00:20:24,680 Speaker 1: about the fang stocks, right, Facebook, Apple, Amazon, Netflix, Google, 360 00:20:24,720 --> 00:20:27,120 Speaker 1: and now you see the analysts starting to decouple Amazon. 361 00:20:27,560 --> 00:20:29,800 Speaker 1: Amazon didn't hit his revenue target either, and there are 362 00:20:29,840 --> 00:20:33,480 Speaker 1: stocks up four percent, but their profitability to make sense 363 00:20:33,680 --> 00:20:36,280 Speaker 1: of Wall Street, which I know, it's it's kind of crazy. 364 00:20:37,200 --> 00:20:40,280 Speaker 1: Well except for the fact that Amazon has demonstrated the 365 00:20:40,359 --> 00:20:43,359 Speaker 1: ability to layer on higher margin services on top of 366 00:20:43,400 --> 00:20:46,920 Speaker 1: a relatively low margin, low profit commerce business, and so 367 00:20:47,720 --> 00:20:51,320 Speaker 1: Amazon is closer to the point of purchase than anybody 368 00:20:51,400 --> 00:20:53,280 Speaker 1: out there, even Google. I mean, look at how profitable 369 00:20:53,320 --> 00:20:55,120 Speaker 1: Google is. It knows when you type in the search 370 00:20:55,200 --> 00:20:57,479 Speaker 1: box I want to, you know, go on a vacation 371 00:20:57,600 --> 00:20:59,360 Speaker 1: or whatever. They know you're shopping for a vacation. That's 372 00:20:59,359 --> 00:21:01,320 Speaker 1: one of the reasons Google is able to make so 373 00:21:01,440 --> 00:21:05,040 Speaker 1: much money off of advertising. Amazon is poised to become 374 00:21:05,080 --> 00:21:08,920 Speaker 1: an advertising powerhouse that they have fift of e commerce 375 00:21:09,000 --> 00:21:11,159 Speaker 1: revenue in the US goes to Amazon. They know what 376 00:21:11,280 --> 00:21:13,879 Speaker 1: I'm buying, and I say that in all candor, they 377 00:21:13,960 --> 00:21:16,080 Speaker 1: know what probably what you're buying is once they get 378 00:21:16,119 --> 00:21:18,679 Speaker 1: you in this store. Yeah yeah, But Jim, that raises 379 00:21:18,720 --> 00:21:22,680 Speaker 1: a question for the profitability and usefulness of Facebook and 380 00:21:23,160 --> 00:21:27,320 Speaker 1: UH and Twitter as advertising advertising behemoths because they don't 381 00:21:27,400 --> 00:21:30,679 Speaker 1: have the direct channel to the actual retailers. I mean, 382 00:21:30,760 --> 00:21:33,760 Speaker 1: could this be part of the issue that from a 383 00:21:33,880 --> 00:21:38,080 Speaker 1: consumer engagement standpoint, Twitter and Facebook just are not the 384 00:21:38,119 --> 00:21:40,720 Speaker 1: best places to advertise. I don't know that. I would 385 00:21:40,720 --> 00:21:43,359 Speaker 1: say that. I I put Twitter and Facebook more in 386 00:21:43,440 --> 00:21:45,520 Speaker 1: the category of Netflix, which may seem odd I mean, 387 00:21:45,520 --> 00:21:47,640 Speaker 1: they they're completely different business models. You know, ones ad 388 00:21:47,680 --> 00:21:50,840 Speaker 1: supported and free and the other is subscription and doesn't 389 00:21:50,920 --> 00:21:54,240 Speaker 1: have ads. But they all three of those companies, Facebook, Twitter, 390 00:21:54,359 --> 00:21:56,879 Speaker 1: and Netflix are really trying to get as much of 391 00:21:57,000 --> 00:22:01,080 Speaker 1: your consumer attention as possible, essentially your recreational entertain information time. 392 00:22:01,320 --> 00:22:03,280 Speaker 1: Amazon is really quite different. I don't know too many 393 00:22:03,280 --> 00:22:05,600 Speaker 1: people who go to Amazon just to entertain themselves, right, 394 00:22:05,640 --> 00:22:09,760 Speaker 1: I go to Amazon when I need to. You know, 395 00:22:09,960 --> 00:22:15,480 Speaker 1: shopping is uh, shopping is an activity fair points, So okay, 396 00:22:15,480 --> 00:22:18,080 Speaker 1: I guess my male bias here. I don't go to 397 00:22:19,320 --> 00:22:21,040 Speaker 1: I'm just saying, you know, you look at what people 398 00:22:21,240 --> 00:22:24,800 Speaker 1: purchase and how they purchase it, and you think did 399 00:22:24,880 --> 00:22:27,040 Speaker 1: you need that? You know, you didn't need that, but 400 00:22:27,200 --> 00:22:29,840 Speaker 1: you were there and you started clicking around and pretty soon, 401 00:22:29,960 --> 00:22:31,879 Speaker 1: you know, another brown Box shows up. But then it 402 00:22:32,000 --> 00:22:35,480 Speaker 1: raises a question entertainment, Right, what is the sort of 403 00:22:36,080 --> 00:22:41,399 Speaker 1: uh I guess the Amazon. Is it as effective to 404 00:22:41,520 --> 00:22:45,200 Speaker 1: advertise on that type of platform versus one where people 405 00:22:45,320 --> 00:22:48,800 Speaker 1: are actually focused on actually buying things, they're opening up 406 00:22:48,840 --> 00:22:51,119 Speaker 1: their pocketbooks. Well, you're getting into now, and this is 407 00:22:51,160 --> 00:22:53,359 Speaker 1: a really big deal in the world of advertising, is 408 00:22:53,359 --> 00:22:57,240 Speaker 1: sort of upper funnel brand awareness versus lower funnel direct response. 409 00:22:57,320 --> 00:22:59,359 Speaker 1: And historically that the simple way to think of this 410 00:22:59,560 --> 00:23:02,159 Speaker 1: was face Book was traditionally more upper funnel. You know, 411 00:23:02,200 --> 00:23:04,480 Speaker 1: I just want your Volvo wants people to know that 412 00:23:04,640 --> 00:23:06,960 Speaker 1: Volvo cars are great and safe and and you know, 413 00:23:07,000 --> 00:23:09,680 Speaker 1: all the attributes they're trying to convey. Contrast that with 414 00:23:09,760 --> 00:23:11,520 Speaker 1: sort of Google more click to buy. Right. I know 415 00:23:11,680 --> 00:23:15,440 Speaker 1: that you're planning a trip to uh an exotic locale, 416 00:23:15,480 --> 00:23:17,040 Speaker 1: and I want to sell you a hotel room or 417 00:23:17,119 --> 00:23:20,679 Speaker 1: or airline tickets, and so all of advertising is tending 418 00:23:20,760 --> 00:23:23,879 Speaker 1: to move towards more direct response, and so again Amazon 419 00:23:24,040 --> 00:23:26,280 Speaker 1: is incredibly well poised to capitalize, and I think that's 420 00:23:26,280 --> 00:23:28,600 Speaker 1: part of what we're seeing in the markets. Well, certainly 421 00:23:29,280 --> 00:23:32,680 Speaker 1: that is what the investors believe. So you're seemingly on 422 00:23:32,840 --> 00:23:36,320 Speaker 1: target there, because if you look at Amazon shares today, uh, 423 00:23:36,480 --> 00:23:39,919 Speaker 1: they are up one and a quarter percent. Twitter shares 424 00:23:40,960 --> 00:23:43,479 Speaker 1: not so much. Twitter shares down a little bit more 425 00:23:43,520 --> 00:23:48,159 Speaker 1: than Thanks very much for being with us, Jim Anderson, 426 00:23:48,240 --> 00:24:06,720 Speaker 1: Chief Executive. Social Flow. Alzheimer's is a crippling disease that 427 00:24:06,800 --> 00:24:12,160 Speaker 1: affects millions of people. One company, as I, has created 428 00:24:12,240 --> 00:24:15,600 Speaker 1: a drug that will slow the progression of the earliest 429 00:24:15,640 --> 00:24:18,000 Speaker 1: stages of the devastating condition, and a new study show 430 00:24:18,080 --> 00:24:22,159 Speaker 1: that it did so by thirty percent. The response, however, 431 00:24:22,359 --> 00:24:25,560 Speaker 1: in the company shares with a steep decline. Joining us 432 00:24:25,640 --> 00:24:29,520 Speaker 1: now is Ivan Chung, Chairman and chief executive of as I, 433 00:24:29,880 --> 00:24:32,760 Speaker 1: which is based in Woodcliff Lake, New Jersey. Ivan, thank 434 00:24:32,800 --> 00:24:35,800 Speaker 1: you so much for joining us. Were you surprised by 435 00:24:35,840 --> 00:24:38,800 Speaker 1: the market's reaction given that this sounds like a pretty 436 00:24:38,880 --> 00:24:42,760 Speaker 1: positive result. Thanks for having me. I'm not in a 437 00:24:42,840 --> 00:24:47,439 Speaker 1: position to comment on the short term movements in the market, 438 00:24:47,760 --> 00:24:51,400 Speaker 1: but um as we present it at the scientific Congress. 439 00:24:51,880 --> 00:24:56,760 Speaker 1: This is the first large trial that if you could 440 00:24:57,080 --> 00:25:02,080 Speaker 1: remove enough a lot of toxic amyloid plaque in the brain, 441 00:25:03,080 --> 00:25:09,119 Speaker 1: it could slow down Alzheimer's disease. Mr Chung explained to 442 00:25:09,480 --> 00:25:17,040 Speaker 1: our listeners the way in which cognitive ability was measured 443 00:25:17,200 --> 00:25:21,080 Speaker 1: in the study, whose results were released at that Alzheimer's 444 00:25:21,119 --> 00:25:27,399 Speaker 1: Association conference in Chicago. Thank you for the question. We 445 00:25:28,040 --> 00:25:33,640 Speaker 1: use an endpoint called at cooms, which is a composite 446 00:25:33,960 --> 00:25:39,400 Speaker 1: of the key elements from three well validated traditional measures. 447 00:25:40,200 --> 00:25:44,680 Speaker 1: These three well validated traditional measures have been used for 448 00:25:44,880 --> 00:25:50,840 Speaker 1: many years primarily to detect improvement in later stages of 449 00:25:50,960 --> 00:25:56,080 Speaker 1: Alzheimer's disease, such as what as I developed almost twenty 450 00:25:56,200 --> 00:26:00,439 Speaker 1: years ago are accept now we are testing to four 451 00:26:00,560 --> 00:26:05,280 Speaker 1: SERO one in earlier stages of Alzheimer's disease because as 452 00:26:05,320 --> 00:26:08,760 Speaker 1: you can imagine, these earlier stages of Alzheimer's disease patients, 453 00:26:09,000 --> 00:26:11,440 Speaker 1: they're still functional, most of them are still at home. 454 00:26:11,960 --> 00:26:16,879 Speaker 1: So we have to detect the initial milder changes so 455 00:26:17,040 --> 00:26:21,680 Speaker 1: that we can delay the progression of these of this disease. 456 00:26:21,840 --> 00:26:25,520 Speaker 1: And that's why we developed the atcoms which have the 457 00:26:25,640 --> 00:26:30,240 Speaker 1: key elements that are more sensitive to the earlier onset 458 00:26:30,400 --> 00:26:35,680 Speaker 1: of these milder cognitive impairments. UM. So I'm wondering, even 459 00:26:36,080 --> 00:26:40,520 Speaker 1: just given the fact that there was definitely some proof 460 00:26:40,600 --> 00:26:43,959 Speaker 1: in this study that there was a slowdown in the progression, 461 00:26:44,359 --> 00:26:47,840 Speaker 1: but perhaps not as much as people were expecting, do 462 00:26:47,960 --> 00:26:52,080 Speaker 1: you still see an accelerated approval as a possible path 463 00:26:52,200 --> 00:26:57,119 Speaker 1: or a viable path to pursue for this drug. I 464 00:26:57,280 --> 00:27:01,520 Speaker 1: think in the scientific community there are different numbers being 465 00:27:01,600 --> 00:27:07,560 Speaker 1: thrown out. For example, improvement would be clinically meaningful. In 466 00:27:07,760 --> 00:27:13,640 Speaker 1: our study, we specifically defined improvement will be clinically meaningful. 467 00:27:14,000 --> 00:27:18,760 Speaker 1: As you saw in the presentation earlier this week, we 468 00:27:18,880 --> 00:27:23,879 Speaker 1: have shown a thirty percent uh improvement in delaying the 469 00:27:24,040 --> 00:27:27,760 Speaker 1: decline and progression of Alzheimer's disease. We definitely believe is 470 00:27:27,800 --> 00:27:31,840 Speaker 1: clinically meaningful, and by two other measures, which are the 471 00:27:31,920 --> 00:27:35,800 Speaker 1: more traditional measures. One we saw forty seven percent decline 472 00:27:36,280 --> 00:27:39,480 Speaker 1: forty seven percent less decline and the other measure percent 473 00:27:39,600 --> 00:27:43,440 Speaker 1: less decline. So we are confident about the robustness and 474 00:27:43,480 --> 00:27:46,800 Speaker 1: the clinical meaningfulness of this data set. With regard to 475 00:27:47,400 --> 00:27:50,440 Speaker 1: the Health authority and the FDA, let us do the work. 476 00:27:50,880 --> 00:27:53,399 Speaker 1: We'll meet with them, we'll, I'm sure we'll have a 477 00:27:53,480 --> 00:27:56,880 Speaker 1: productive conversation to understand the best path forward for pan 478 00:27:56,960 --> 00:27:59,720 Speaker 1: too for CERO one. Not just to give a little 479 00:27:59,760 --> 00:28:03,399 Speaker 1: more detail, there were there was a high dose arm 480 00:28:03,520 --> 00:28:06,639 Speaker 1: to the study, right, yes, correct, tell people what is 481 00:28:06,640 --> 00:28:10,359 Speaker 1: a high dose arm. The high dose arm is taking 482 00:28:10,880 --> 00:28:15,360 Speaker 1: pen midigram per kg twice a month. That's the high 483 00:28:15,400 --> 00:28:18,520 Speaker 1: dose arm. And in this study, the high dose arm 484 00:28:18,720 --> 00:28:21,879 Speaker 1: is the one that's the best dose that showed statistically 485 00:28:21,920 --> 00:28:27,280 Speaker 1: significant and means clinically meaningful results as what I described earlier. Okay, 486 00:28:27,680 --> 00:28:32,040 Speaker 1: the reason I raised that issue is that European regulators 487 00:28:33,080 --> 00:28:39,360 Speaker 1: have raised some concerns about some of the issues related 488 00:28:39,400 --> 00:28:42,280 Speaker 1: to that high dose arm. They were worried about the 489 00:28:42,440 --> 00:28:47,360 Speaker 1: threat of brain swelling. Right that was back in two 490 00:28:47,440 --> 00:28:52,680 Speaker 1: thousand and uh fifteen when the trial was at the 491 00:28:52,760 --> 00:28:56,280 Speaker 1: initial stage. At that time, none of us in the 492 00:28:56,440 --> 00:29:00,840 Speaker 1: field knew too much about this phenomenon call old area E, 493 00:29:01,760 --> 00:29:06,840 Speaker 1: and that's why the European authority took more conservative approach. 494 00:29:07,560 --> 00:29:11,200 Speaker 1: Now the European Authority does not have that concern anymore. 495 00:29:11,600 --> 00:29:14,280 Speaker 1: Together with our partner Baugan, we have two other Phase 496 00:29:14,360 --> 00:29:18,400 Speaker 1: three late stage clinical development programs for two other compounds. 497 00:29:18,840 --> 00:29:20,960 Speaker 1: We are in the European site and we have no 498 00:29:21,080 --> 00:29:25,920 Speaker 1: such issues. That was a matter a few years back 499 00:29:26,040 --> 00:29:28,840 Speaker 1: when the field didn't know much about how to take 500 00:29:28,880 --> 00:29:31,000 Speaker 1: care of this issue, and now we don't have that 501 00:29:31,080 --> 00:29:33,560 Speaker 1: issue anymore. All right, I want to thank you very 502 00:29:33,640 --> 00:29:37,040 Speaker 1: much for helping us understand this a bit. Ivan Chung 503 00:29:37,200 --> 00:29:39,480 Speaker 1: is the chairman and the chief executive of a SI. 504 00:29:40,120 --> 00:29:44,080 Speaker 1: The parent company is ASI Company based in Tokyo, and 505 00:29:44,200 --> 00:29:47,080 Speaker 1: he's talking about the release of new information having to 506 00:29:47,160 --> 00:29:51,400 Speaker 1: do with their study of an Alzheimer's drug that was 507 00:29:51,520 --> 00:29:55,600 Speaker 1: released at the Chicago Alzheimer's meeting on Wednesday. Thank you 508 00:29:55,720 --> 00:30:01,400 Speaker 1: very much for joining us. Thanks for listening to the 509 00:30:01,440 --> 00:30:04,520 Speaker 1: Bloomberg P and L podcast. You can subscribe and listen 510 00:30:04,560 --> 00:30:08,720 Speaker 1: to interviews at Apple Podcasts, SoundCloud, or whatever podcast platform 511 00:30:08,760 --> 00:30:12,640 Speaker 1: you prefer. I'm pim Fox. I'm on Twitter at pim Fox. 512 00:30:13,000 --> 00:30:16,480 Speaker 1: I'm on Twitter at Lisa Abramo wits one. Before the podcast, 513 00:30:16,560 --> 00:30:19,120 Speaker 1: you can always catch us worldwide on Bloomberg Radio.