Q4 2020 Quotient Ltd Earnings Call
Joining us today and your conference will begin shortly thank you.
[music].
At this time, all participants are in listen only mode.
A question answer session will follow the formal presentation.
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Please note this conference is being recorded.
At this time I'll turn the conference over to Peter Bueller, Chief Financial Officer, Peter You May begin.
Thank you Rob.
Good morning, everyone and welcome to caution, earning conference call for fourth quarter fiscal year ended March 31st 2020.
Joining me today, it's Francois Chief Executive Officer portion.
Today's conference course, being broadcast life through an audio webcast and the replay of the conference call will be available later today.
Probably a couple of years <unk> dot com.
During the school quotient will be making forward looking statements, including guidance projections have to future operating results unexpected development and commercialization timeline.
Because such statements deal with future events.
Results may differ materially from those projected to forward looking statements.
All information concerning factors that could cause actual results to differ materially from dosing to forward looking statements can be found cautious fighting with the U.S. Securities Exchange Commission as lot of in this mornings press release.
The forward looking statements, including guidance protections provided during this call.
Only as of today state and quotient assumes no obligation to publicly update these forward looking statements.
With that I'd like to turn the call over to cautious Chief Executive Officer Francois.
Thanks, Peter and good morning, everyone.
No we might do you see all four ships and the last few months were very different from anything I ever expected.
The beginning of the calendar years, plus Mark why the outbreak of Cobiz 19, first in China, but soon across the globe.
The company was of course affected by the safety measures taken by government health authorities.
Ongoing field trials came to a holiday as a consequence of Cobiz 19 at least it picks.
Because I will turn on this crisis into an opportunity.
The lumping I'm very high performing Cobiz 19, funky body taste.
On one hand to kick off to the fight against these pandemic and on the older right to showcase the power and flexibility of small sake.
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3000 takes the 24 hours mosaic perfectly positioned to perform if some strategic placements large scale centralized testing.
I'm very proud of our teams in Scotland and Switzerland.
Lastly, double up the Cobiz 19 on people they taste in just about six weeks.
Oh, sorry for such a high quality taste and I'm very limited cough.
You bet able to develop these taste so quickly because we could build on and benefit from insights gained doing that most sake system development over the last year and the technical expertise we are quite yet.
Lessons learnt during that time.
Also the quality of the taste is exceptional sensitivity of 100% and the specificity of 99.8%.
This means that no cost impact she goes unnoticed why the only two out of 1000 lots of different itself could be Oh, specifically south.
Independent external studies, he mentioned laboratories in Europe have seems confirmed the high accuracy of outpaced.
In addition, things I went taste detects both I G M and GE antibodies. It can identify chunky bodies, apparently a seven day puff about 50 50 off taste. So very early in the Seattle conversion process.
Let's say well CE Mark on me first 2020 and be some meat Deli Crazy for 58 emergency use authorization on May 620 20.
Shortly after the CE, marking cobiz 19 taste, we signed a contract to be for H. vivo into your okay. The first ever most like cost them a contract.
This is a very important step I see it demonstrates that the most a platform is able to offer for commercial laboratories.
In the meantime, besides several older customer contracts in Europe, and the United States.
Macy's H. before late the public announcement because of the significance of having a utilized our first mosaic fail and because the customer agreed to do a joint press.
Many of you antibody ties into the market and buckles considers the blue Ocean quickly became a highly competitive market pressure on pricing.
That's a principle, we do not disclose pricing nor in the all in terms of our contract.
Hi quality off the taste combined if I were service enough for you. If you look you fly has the high value for laboratories and patients and your couldn't be this justifies a premium price.
Pricing kind of course different by market why do you know cases, the contracts are profitable all Kentucky I got the same thing if you win win situation for both the customer and for us.
Although we do not report installment inventory and placements Bds announced earlier that'd be had 13 mosaiq instrument somebody you able to place customer for Cobiz 19 on the body tasty.
I'll start today, the only half the life.
Many more instruments are a reduction of course, not just for koby 19, tasty, but also you have the upcoming launch all first commercial don't I mean, you during the first talk to you all.
If the introduction of the Cobiz 19 antibody taste equaled launched the mosaic system almost a year earlier. They didn't know original plan unforeseen. We've always done few she told you made your roadmap.
We always say these technologies will have displacing the transfusion diagnostic market and beyond.
No you want to use unprecedented circumstances that'd be young became a reality even before confusion type.
Of course, Oh, yes, there's no chest consist of the development of our current 19 test, but we also achieved a series of important milestones during the financially of Twentytwenty.
Let me share the highlights with you know.
In April 29 team, we received the CE Mark for our initial immune hematology micro right.
This was a major milestone for the company has either saying that the first CE Mark.
For our most like platform.
We successfully completed the U.S. field trials for the initial serological disease screening microarray followed by a five 10-K submission 40 initial STS my Curry anti Mosaiq instrument.
In December 2019, we announced the concordant stayed up well for important taste of our M.D.S. microarray against the law School bus system.
We have approximately 900 samples we achieved an overall concordance off 98% Russell School bus and demonstrate the Tom to percent specificity at 95.1% sensitivity.
But you have in mind that they Mds micro rate was in a very early stage of development.
Purpose of this study was to demonstrate feasibility of the product and the results versus a highly developed and approved product is very encouraging.
In February 2020, we announced a very solid for benchmarking studies office. They like the taste went out with S.T.S. micro <unk> against all school bus system.
The purpose of the taste was again the confirmed a feasibility favell system and the taste to salt on HIV HBV in HCV was very encouraging be for things that the but the 100% and the specificity of 100% for HIV and HCV and 99.4% on HBV.
All sensitivity and specificity.
We started to do you feel transco, they found that I each microarray at three external sites, but I can stop Hello breakthrough due to the company's 19 crisis.
That's it for most companies I will double up and projects that impacted impacted by the called them out of Ida fund. They make any March we announced a de lever up to 90 days for all our level of approach.
Looking at the situation today, we still consider these new timelines uphole create at least in Europe in the United States, It's a bit too early to tell in particular you to travel restrictions.
During this whole period, you managed to continue our internal development Burke with little to no interruption.
I think look bad they've got Endo for me to have to three expand the H. field trial sites, who do a few tasty <unk>.
If these people have sufficient data to cook meet our regulatory dossiers, but we also continue to discuss the potentially restocked prefer site in any event. We are confident that testing should be complete that we've seen the next two months.
Oh, the modeling regulatory submission continues in parallel and be expects to complete submissions by Q4 for the current calendar year and hope they CE Mark approval in Q1 of calendar year Twinkie wall.
We changed over notified body during the first quarter of calendar year, Twentytwenty cute to anticipates breaks it since our previous notified 40 plus based in the UK.
Collaborations with to suit our new notified body based in Germany is excellent and we're confident that the coal sales to obtain the CE Mark for all like funded I each microarray build on smoothly.
If we would be in a position to offer our first compelling menu composed of expanded by age and initial Sds to the older lapse into first quarter afraid you create you all.
These first maybe you will consist of 22 immunohematology ties into serological disease type.
So do you mind, Oh, multi modality multiplexing mosaiq blood foam, we'll be able to run the old case on the same installment perspective with technology and process up to 3000, Michael racing 24 hours.
One of my Korea can be process, just 24 second after initial set up and every 24 sake. It's the next dissolved and the next itself.
Adoption in the last will depend on another useful and.
From what we can see painful spend put on hold during the cold I buy to fund and make and we are confident that we did not meet any new tend to participation.
Furthermore, at the beginning of the calendar year, we announced a streamlining of our organization, we implemented a new global organization between our free fights in Switzerland, Scotland and the U.S.
The same time, reflecting that the high Ritchie and reduce complexity no structured and processes.
The primary goal of this the organization was not to reduce cost but to half a more nimble and I've tried to give you say should.
This new organizational design, maybe schools in the official development of our topic 90 antibody test.
I would hope I caution, creating business continues to be very successful. Despite the cobiz 19 crisis and we delivered another year of stop the teachers growth in revenue.
We are happy to report that the mom for others up like Washington, The agent was not impacted adequately 19 crisis.
We also obtained FDA approval for seven additional I'll go by quotient bulk bank in the H.
Thanks to the Okay and there continues to live video milestones, we managed to further strengthen our balance sheet and raised a total of 150 million dollar additional financing through a combination of equity and additional that.
In summary be continues to consistently deliver on milestones, we feel that control on top of that to be delivered a high performance Koby 19 on people. They taste that had not been on our list three months ago.
We're not drunk Walsh's I said that there are three important questions to be answer when introducing a new technology.
The first one is the performance of the system, which I think we entered in several successful internal and external studies.
The second one these better on off the system, but you get the necessary regulatory approvals and if that gain market access.
And by now we have over 85 CE marks for mosaic.
We also expect FDA approval for our initial Sds, Mike and raise the Mosaiq instrument estimate of ft, a emergency use authorization for our corporate Nike and I'll be body taste. So.
The last one would be better customers are willing to buy the new technology by now we have several customer contact fine.
Therefore, I think we have massively de risk this technology over the last two years.
And with that I would like to hand back to Peter bought a financial update.
Thank you Frank.
Fiscal fourth quarter products revenues were 8.7 million an increase of 11 cents from last year's fourth quarter.
The increase in productive if it is attributable to strong growth in both product, whose revenues from OEM customers, an incremental direct and this distribute yourself.
In the quarter, well, we had sales of $5.9 million grew 6% year over year and represent 67% for product sales.
The increase continues to be driven by better pricing at increased sales to existing customers.
Direct and distributor sales of 2.8 million increased 24% year over year and represented 53% product sales.
Direct sales in the United States increased 16% year over year.
No wasn't revenues were recorded in Q4, I fly Ttwenty $450000 square urgent fourth quarter of prior year from the achievement of development milestones related to new OEM product.
In the fourth quarter gross national product sales were 45.6% compared to 43% 43.5% loss here.
Improved marginally due to better product mix with higher direct sales and efficiency gains through our new manufacturing sites in Scotland.
In the fourth quarter.
We recorded an operating loss of 21.5 million compared with $20.3 million last year.
In the quarter operating expense were 24 or 5.4 million, an increase of 1.3 million over the prior years.
Research and development expense were 14.8 million, a 1.5 minute increased year over year, mainly driven by the expanded our age field trials at the development of expanded STS.
General and administrative expenses were 7.9 million down 700000 dollar compared with the prior years.
This included stock compensation expense, which decreased from 1.4 million to $1.1 billion decreed afraid ONT 300000 dollar.
The remaining decrease related to higher true up of compensation accruals in the prior year.
There's a marketing expense of $2.7 million increased $450000 from the prior year fourth quarter.
Reflecting the continued scaling up of to commercial group in view of the launch of our first commercial donor menu for doing a lot.
In the fourth quarter, depreciation and amortization was 3.3 million dollar versus 3.5 related to prior year.
Net other expense was 2.6 million compared with 3.6 point 3 million into fourth quarter last year net other expense consisted of interest expense of 3.5 in a dollar and 800000 foreign exchange gain compared to interest expense of 5.4 million and 800000 for exchange loss.
Fiscal 19.
Interest expense decreased year over year due to ongoing reassessment of the accumulated royalty liability.
Overall, our net loss for the quarter was 24.7 million dollar or 31 cents per ordinary share compared with 26.6 million dollar or 41 cents per ordinary share it probably yes fourth quarter.
For the fiscal year product revenues were 31.6 million.
An increase of 10.2% over to try to you.
Total revenue for the year also includes other revenues of 1 million at 55000.
By the achievement of certain product development milestones in our out of I quotient liquid reagent business.
In the prior fiscal year other revenues reached $469000.
For the year Cross launch a product sales were 43.7%.
Compared with 39 for Nike has tended to previous fiscal year.
The gross margin improvement is mainly related to the relocation cost often you manufacturing site in Scotland that adversely impacted the financial year 2090.
For the full year.
Operating expenses increased $4.7 million to $95.5 million.
This increase is primarily due to higher research and development cost related to the development of mosaic, particularly to spend on expanded IDH field trials, but also increased material cost at third party development fees for the progress of the serological disease at the molecular disease mitral race.
Overall, our R&D cost increase year over year by $3 million.
Development cost of our Cobiz 19 antibody test are not significant that's the development project started very late in the financial year and given the overall cost due to have off this test of a relatively small.
Sales and marketing cost for the year increased by $1.2 million. This increase is too large extent driven by additional staff to ensure commercial readiness as we prepare around where it was like launch.
There was a marketing also include our technical service team that supports instrument installed and laugh at this organization was strengthened and that's why 20 and anticipation of the upcoming product launches.
General and administrative expenses increased by 400000 dollar versus prior year.
Which is mainly driven by higher one off restructuring a transition costs of $1.4 million increased professional fees, including legal expenses associated with deep water supply distribution agreement and related dispute.
On the other side the prior year, we incurred approximately 1.6 million dollar of cost associated with the relocation of our four out of a cautious reagent manufacturing upgrades to our new arc security.
This was completed in fiscal 2019.
For the third and mall stock compensation expense decreased year on year from 5 million to 4.5 million dollar decrease I'll have a million dollar.
Our fiscal Twentytwenty operating loss of 18.7 million included 17.8 million dollar noncash expense, which compares to 80 million dollar operating loss, which included 18 million dollar of noncash expense in fiscal 19.
In the fiscal year net other expense was 21.4 million compared with net other expense of 26.4 million last year.
Net other expense consisted of interest expense of 23 point Eightmillion offset by 2.4 million gain on foreign exchange this compared to interest expense of $20 million at the 6.4 million loss on foreign exchange in fiscal 2019.
Overall, our net loss for the year was $102.8 million or $1.44 per ordinary share compared with 105.4 million dollar or $1.92 cents to share in fiscal 2019.
Net cash used in operating activities totaled 15.8 million dollar into fourth quarter fiscal twentytwenty.
Compared with 14.1 million dollar interpreting your fourth quarter.
The full year net cash used in operating activities reached $80.6 million compared to $75.7 million.
The increase in use of cash is mainly due to higher R&D spend at an increase in inventory as we increased our stock with raw material for mosaic I purchased additional instruments.
Capital expenditures in the fourth quarter fiscal 20 to 24 700000 dollar compared with 1.7 million in the prior year for the full year capital expenditures totaled $4.6 million compared with $4.8 million in fiscal 2019.
Moving to the balance sheet.
Available cash cash equivalents, a short term investments at March 31st Twentytwenty, where 120.8 billion dollar compared to $94.8 million one year ago.
In November 2019 capital raise provided 90 $90.5 million of additional equity net of expenses I didn't may 29, T. and the company should refer to 25 million dollar of 12%.
Brings the total borrowings under this facility to $445 million.
Under the terms of these loans notes, we held $9 million, an offsetting long term restricted cash reserves account.
On March 31st accounts receivable totaled 5.3 million dollar and enrich inventory totaled $20.5 billion.
Our balance sheet now includes operating lease absent of 21.5 minute corresponding liabilities of $22.9 million.
You can you I personnel balance sheet simply relate to change in accounting principles.
Primarily reflect our facilities in Scotland and Switzerland.
We have another food any lost in relation to the arbitration against the war. So I'd be considered an unfavorable outcome is not probable.
Liabilities include the 7% cool cumulative redeemable preferred shares acquired by also 2050 for total amount of 20.4 million dollar at March 31st Twentytwenty.
Moving to guidance.
For fiscal year 2021, we are forecasting full year revenue from product sales for our other by quotient reagents in the range of $32 million to $34 million.
No milestone related to other revenues are expected.
For other Cobiz 19 antibody test, we're not just for I would probably not keeping Nike that anybody test to another position to provide any sales guidance due to the inherent uncertainties of this new market.
Well FITCO 2021, we forecast the capital expenditure in the range of $5 million to $10 million and the cash used in operations of approximately five to 6 million dollar per month.
No guidance is provided an operating loss given we are currently unable to four customers like revenues related to the koby 19 antibody test, but we expect a positive upside.
With a cash position off under 20.8 million dollar at the end of March we will be able to finance our operations whether to 2021.
At this stage, we cannot forecast how much additional cash will be generated from the Cobiz 19 antibody test.
With that let me now I'll turn the call back to trunk.
Thank you very much a Peter so fiscal 2021 is shaping up to be another exciting year for all of US here of course.
We started the year if the launch of public corporate 19 antibody test and signed our first commercial contract foremost like is this a major milestone in the history of our young company and Broster commercial proof points of mosaic fulfilled by almost one year.
It was always convinced that our mosaic technology has a tremendous value beyond contributions I cannot speak which is why our recently transfusion diagnostics and beyond it is almost ironic that I called out of idle Sunday make pools that beyond four of up if the creation of our high performance compute nine.
You know people to test we started commercialization beyond the donor lapse before before the first attractive transfusion Dx combination became available and this creates a significant potential for our small company.
So what's in store going forward.
We are expecting U.S. emergency use authorization for our Koby 19 antibody test soon.
Also we expect U.S., if ASCII a five 10-K approval for the initial Sds migraines mosaiq instrument in the near term.
We have restarted our expanded IDH European field trials and not planning to have completed the submission for CE Mark approval by Q4 calendar year twentytwenty into half the first powerful commercial confusion diagnostics menu in the market for sale Q1 calendar year 2021.
U.S. field trials for the expanded <unk> IDH mean, you are expected to be completed my first half of 21.
We're also making good progress we've expanded Sds microarray, we expect to complete internal movie and be in the second half of calendar year Twentytwenty enough starting out with you in U.S. field trials subsequently.
At the same time, we plan to develop content for the beyond pipeline and now conducting feasibility assessment office specific micro rate mean, you for the commercial lost my industry as well as immuno assay and molecular diagnostics micro array may use for the Central lab, We report more about it.
In the near future.
I'm more excited.
Than ever to continue our journey into Europe is getting back to normal following the locks found related to cover not a virus I'm confident that we will continue to deliver consistently on our milestones.
Finally, I would like to find the team at quashing for their commitment during these exceptional time and our shareholders for their continued support Weve. This I would like to hand over all back to roll to open the QNX fish.
Thank you well now be conducting a question answer session. If you have to asking question today. Please press star one from your telephone keypad and the confirmation total indicate your line is in the question Q.
Even if I start to feel like to move your question from the Q.
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One moment, please so we pull for questions.
Thank you know first question is coming from the line of Josh Jennings with Cowen and company. Please proceed with your question.
Just to be one moment. Please so we get Mr. Jenny gone.
Turning to me.
You can can you hear me now.
Yeah, Yes, Josh I can hear you, how I Oh, great Oh, great no good things for the transmission difficulties.
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I just wanted to start off by asking I know you any approval is expected as very soon.
Any incremental details you can provide I know, it's only been a month since you submitted it but that's where most frequent questions. We get incremental color and do you need to have the mosaic system five 10-K proven hand in order to get that the EU approval for the company antibody test.
We don't need that's why we're just waiting for I think they're a little bit overwhelmed before the submissions.
Maybe it was a little bit easier and faster in the beginning and nowadays yourself a pile of five dossiers, which have been made it I think a we have everything in place. He takes a two successful legal through this process and it's difficult for me of course to forecast when exactly we are going to go.
The approval, but I think it's imminent and we do not know don't need a five stinky approval for the instrument and so this is going on in parallel and the five 10-K approval implement and initial asked the Ace is also expected in the near term.
Understood you did mention that you had some contracts.
Yeah in the United States for the I believe for the Coberly antibody test is that for research use only in front of the way you're maybe you can I just help us understand how you're going to get those contracts in place in the United States or not its poor or one but prior to us.
No its no they can use it a commercially and they are of course.
For whatever reason would not get a emergency use authorization. They would have the right to terminate the contract, but we don't expect that the customers had a look at all the details and the submission Dorsey and are very confident as well that's why defined.
Understood and then I think you mentioned you had three three systems left out of the 13 in inventory.
That's a big believe you believe that you've ordered more systems from your manufacturing partners tried tech when do you expect to receive a more music systems for commercial use were for placements and how many have you wondered if you can disclose that.
Yeah, I think a in a in an earlier discussion at federal was referring to what 20 more but in the meantime, you have all took more than 20, we had a a lot of internal discussions or whether we should the disclose the numbers, but I think it would only two follows calculation. So we don't start inventory.
Reporting we ordered that are more than 20 instruments. They are doing the next couple of months a four five months, we should get a plenty plenty of additional instruments and it's not only for Cobiz 19, but it's also for the imminent launch off the dollar menu in country she'd like though.
Excellent and then my last question trying to focus solely on the I covered.
Antibody test, but when it's just hear about manufacturing capacity of the microarray recoup at 19 antibody test and.
Maybe where you stand today and when you think you can potentially I believe your your current manufacturer. So they can get to 30 million tests or make raise manufactured annually.
How do you see that that ramp progressing from here. Thanks for taking all the questions.
Okay, I think a very good and the 30 billion capacity annual capacity be reached a ready to win in the next two three months, we will be there.
And we can also expand the these capacity or in a matter of 18 months maximum 18 months and the doubling the f. a koplow five I keep the ice in place you know a threshold to be it to be reached I'm going to be stock than pool for what the investment for the second line for the decision for the second line has not been they can you.
Yet, but there are a couple of keep be ice like number of contracts minimum consumption commitment from customers and things like that and then we do the investment if this happens to be villa inform the public.
Great. Thank you.
Our next question is from the line of sung Ji Nam with BTI Gee, let's see if your question.
Hi, Thanks for taking the question finding Peter could you talk about what the demand looks like currently for Oh, the antibody testing in comparison to maybe you know the it went initially a ability outbreak I'm just kind of curious given that the different countries.
We did they start to reopen the God and starting to see kind of stabilization or decline in the number. He said I'm I'm just curious if there's still if the demand remained strong for antibody testing currently.
Yeah, the demand to be able to offer antibody testing is oh, he's a very great. The customers don't know exactly what the extra consumption is going to be because that's a new experience for everybody.
There are also discussions ongoing or better.
No antibodies represent immunity or not I personally believe other yet the no.
I also have recently seen a study in the from South Korea, concluding that the there was no second infection, if anybody would an antibody and the previous a belief the second the infections are there other diagnostic arrows like false positive results, so everything I've seen it.
Indicating more to a with a immunity, but nobody knows you know how long is we lost Halloween things, it's going to be but for all this you need antibody tasty and then also for the Devil open up a vaccine where else can you test, but at the vaccine is working at that several of vaccines. The Devil open and the company, which is heavily engaged in vaccine double up.
Our first customer H. people in England for instance.
So for that purpose it will be important on top of that that if there is limited community there for vaccination and you need the Revaccination. A then of course, a unique antibody tasting again.
Also for several epic immunological questions and on top of that we had discussions with a pharmaceutical company, who or thinking about the AG kind of taking the blocked off people who've, adding Texas and half dozen loved antibodies and.
Provide that kind of cut off my calc say, a a powerpoint did but that most people have applications and a interface, but it's so early in the whole process. It will take us a two three months mall to have more transparency on the actual consumption. Many of our customers are also conducting right now a market.
Net income veins are to attract a take such tasting to their companies like a tasting food companies you know and that there are discussions on a kind of a passport filling unifi and all this is going on really likely in all directions and it difficult.
In different directions, sometimes from country to country, but the interest it's great that transparency, how this will play out and how long does the be around remains to be c., but for us. It was a unique opportunity to make a complete solution, but also to showcase the power off by mobile site and we followed experience.
We have acquired over the last a year of how quickly we can bring absolute top notch performing based on the market if people studies.
Well I think it's only an upside that known off the coffee sales are included in our current planning and be of so many contracts already being that you know were handset. So I expect that quite that much I keep upside.
Gotcha, Great and then it could you talk about the almost 30 systems that are out there and the several contract you have in place already Rd reagent rental models and that kind of curious where where their customers that bought some of that's it turns out right and then you know as you are discussing or contracting out with different paths.
Sorry, what are they are kind of you know interest beyond Kobe Tech.
And just beyond public happening in terms of application that might come on.
Oh boy would be my dad popcorn.
Yeah, I think a there are customers now, which I'm not in the classical I don't know segment, but in the central lab and beef that behalf mosaic into Central lab. That's why I also mentioned before we are working now we fight <unk> Clyde I have to on a second portfolio for the same sort of lap once we have things domain.
In the L., they do coffee tasting why not adding onto the infectious disease testing and be half the infectious disease pipeline already up and running corporate owned the main you be immuno immunoassays like the serological disease screening microarray, albeit molecular disease screening app, which is called molecular diagnostics.
In the Central Lab PCR testing. So there is an upside now to paying the beyond a a quicker and faster and I think for the modifications, which all necessary to get those microarrays a tale of for the Central lab will build take maybe an additional three to six months.
Corporate through the don't they don't mean, you additional clinical trials necessary beef uncover if a patient groups to be call, but so so that is an upside definitely definitely so customers are interested in that into performance and our time taken by the performance of the taste because when they do their validation.
Really proves the point that this is an extremely high accurate taste gives them confidence in these new technology I mean mosaic is like.
If you compare to do some of the alternatives in the market like 2025 years old Technology, then bumpy.
And how well this technology works I think we have <unk> and then a false they Oscar can you provide more taste.
So I see ops upside down and otherwise for coffee. These as I mentioned before they do marketing campaigns.
To attract because much of the testing as possible, but how successful this is going to be and how often you know what the throughput per instrument is going to be a little bit too early to tell me to find their contract instruments are either installed up and running a and all those are in the installation process. So it goes.
Take a couple of more we do get more transparency on that.
I think it's impressive that's the system works, so well see so easy to install so easy to train and get everything up and running just a few days.
Gotcha and then just lastly from me techniques and you can comment on it are there plans to develop other kobe testing like or antigen and molecular testing I'm not sure back again.
Centralized makes sense, but kind of curious again I guess no plans there. Thank you. Thank you, yes discussing basically nations variations to the taste I think first and foremost actual performance of the taste is important we have seen with many alternatives that they do not perform has promised anybody your life.
And sometimes they need like two weeks.
To show the anti bodies, Oh, probably because there's only one I GE and can be going I Ci I'm old even <unk> copper cohort I T M. Some of them to be even up to four weeks, you'll get off to performance. So ours is only seven days after a positive for PC optic than you have a high performing pets.
The performance will not stop for a week by modifications. So modifications. We're currently.
Looking I'm working on and discussing bit clinicians is a semi quantitative microarray or we are also a looking into they added value having ICICI unite G.M. separated what is the clinical.
Right you in in terms of up personalized treatment afterwards, so how that how they proceed with basically pace. So all this is a up in running in popular so it could very well be that we have.
A second the Cobiz 19 taste, a very soon or at least placement V. For further up the foods, but do you only makes you see investment and that will open if the market. These valuing these additional information, which we are clarifying right now.
Great. Thank you so much.
Thank you.
Our next questions from the line of branded cleared with Jefferies. Please proceed with your questions.
Thanks. This is not on for brand in the Smart appreciate your second question fronts first one for you just curious if he could talk a little bit more about the each vivo contract. You know why that was the best are most logical first customer for your antibody test and then any ballpark utilization or microarray volumes expected from this initial customer.
Yeah, because we cannot of course, a brenton not disclose any contractual terms and to make up for cost is also a little bit the female toward I can only to fail to the press release HIV boutique the themselves I think.
They said, it's the base taste a in a in class a they have to look at the the options are they also made a comment in another price at least potentially considering as they can double the installation. So it looks like the half a big plans for Koby 19, Humpty body testing and a in HBV.
Always the innovative it's a very more them.
I'd say the type of laboratory or they do see although as you know a they also in orphan drugs or development that he'd vaccine testing for vaccine development and ER for on the same Cobiz 19, tasty and trying to get over companies a whole companies to get there.
In in that lap so I think it's the interest on the customer in having a first class a taste of a little and to invest in in this type of testing right now so they've asked for on dramas and be back from drama from one of the first.
And ER, we found the trial yeah.
I'd be very proud.
People H.B. wassa customer, we're really proud that if that makes it off.
And I mean, if you're a small company or you look mobile art.
Yeah, a boutique diagnostic company, we say like the few cost, but it can really very good care of things that get high quality products, They get top notch service and support.
The production facilities up and running and you can guarantee the supply I think these are all very important aspect or indeed, the new field of testing for our customers and I think this bad also reasons. They have told US you know why they want to team up rip off.
Thanks, that's helpful and then of the Mosaiq instruments that had been earmarked for for Kobe testing between H. vivo and then so several other contractor customers. You mentioned these contracts that minimums attached to them and then also up your current hyper care sites no how many if any.
My theoretically be suitable for anybody testing to become customers as well. Thanks.
Suitable all of them young and but I cannot disclose where we ought to be if a the discussions and negotiations. It's not only that we have signed several contracts a couple of more contract in the Finalization stage right now as we speak.
So I can't talk or talk to that what's the thought what it was the high because of what was the second part of the question.
At the minimum CFC simply.
Let me move them into contract, but they're not really a like a you know a giving a lot of inside speak with constables normally on the the lowest len level of minimum requirement because they don't want if they don't they stay calm views in those minimum requirements all of the attractive for us but to potentially is much higher than we see a company.
They are doing into throughput they're getting after the initial set top is higher indicates to higher used in the meat meaningful much higher you spend to meet him.
Awesome. Thanks appreciate goes expertise it.
Thank you very much.
Oh.
Thank you Jennifer right.
Gentlemen. Please proceed Sir please proceed.
Yeah.
Oh, it's the is the other more questions.
Otherwise there no additional questions I turn it back to you for closing remarks.
Okay. Thank you very much at ROE. So thank you everybody for joining us on this call today and we look forward to updating you on the progress we expect to have made by the time of our first quarter fiscal 2021 conference call. Thank you very much and all the base they kept by.
Thank you. This concludes today's conference you may disconnect. Your lines at this time, we thank you for your participation.