Q1 2021 OPKO Health Inc Earnings Call
Yeah.
Ladies and gentlemen.
Today's conference call will begin shortly until that time your lines will again be placed on hold thank you for your patience.
And ladies and gentlemen of basis. The operator today's conference call will begin shortly until that time your lines will again be placed on hold thank you for your patience.
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Yes.
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Good afternoon, and thank you for standing by and welcome to the Opco Health incorporated first quarter 2021 financial results Conference call. At this time all participants are in a listen only mode. After the speaker's presentation of there will be a question and answer session.
To ask a question during the session you will need to price floor of one of your telephone from cash used to be advised of today's conference call is being recorded if you require any further assistance. Please press star zero I would now like to hand of conference or worth of your speaker today, we keep on Greg's. Thank you could you go ahead.
Thank you operator and good afternoon. This is Yvonne Briggs with L. A J. Thank you all for joining today's call to discuss Opco health financial results for the first quarter of 'twenty 2021, I'd like to remind you that any statements made during this call by management other than statements of historical fact will be considered forward looking and as.
Such will be subject to risks and uncertainties that could materially affect the company's expected results. Those forward looking statements include without limitation. The various risks described in the Companys SEC filings, including the annual report on form 10-K for the year ended December 31, 2020, and then subsequently.
Filed SEC reports importantly, this conference call contains time sensitive information that is accurate only as of the day of the live broadcast today April 28th of 2021, except as required by law Opco undertakes no obligation to revise or update any forward looking statements to reflect events.
Or circumstances after the date of this call before we begin let me review the format for today's call Dr. Phillip Frost, Chairman and Chief Executive Officer will open the call on Steve Rubin <unk> Executive Vice President will provide a business update and pipeline review and then Dr. Jon Cohen will discuss.
Bio reference laboratories after that Adam logo Opco CFO will review the company's first brighter financial results and then we'll open up the call for questions now I'd like to turn the call over to Dr. Frost.
Good afternoon, and thank you for joining the call today.
I'm happy to share our first quarter results with you.
Revenues earnings and cash flow from operations were strong.
From a reference laboratories continues to be recognized as a national leader in COVID-19 testing.
As demonstrated by our recently announced high profile of professional sports in school contracts.
COVID-19, PCR testing volume remained strong during the first quarter, even with a significant decline on the cases nationwide.
As the country starts to emerge from the pandemic.
We're seeing on overall share from diagnosis to surveillance and we're seeing <unk> routine business improving towards historical levels.
While we anticipate COVID-19 test volumes for the general public for diagnostic purposes may decline.
There was still stronger interest from <unk>, COVID-19 capabilities for large scale screening and its ability to provide customized solutions across a broad spectrum of customer requirements.
Yes.
BRL consistently tries to differentiate itself from other laboratories.
You will hear Jon Cohen until you O'brien of novel program to make it easier for patients to have blood drawn.
This is part of a bigger vision to have our laboratory interact more directly with health care providers, such as telemedicine of large physician groups to achieve better patient outcomes.
Our pharmaceutical business continues to advance nicely the European regulatory submission was recently.
We announce for Soma drug on our long acting human growth hormone.
This is in addition to previously announced submissions in the U S on Japan too.
To create further awareness of this important drug candidate earlier in the quarter. We participated in several endocrinology conferences to highlight some of our Soma drove loans clinical data profile.
All of these prescription and sales growth.
<unk> continued to be impacted by the pandemic.
As COVID-19 related limitations lesson, we expect <unk> to return to pre pandemic levels and to resume its previous growth trajectory.
The COVID-19 trial is ongoing.
Too early for optimism literature data support the notion that sufficiently elevated vitamin D levels helped proved more severe forms of the infection and reality is quite efficient and raising vitamin D levels.
This would be important in the general population.
But even more so for chronic kidney disease patients who tend to have more unfavorable outcomes.
As you May know Opco has a small part of excellent unit of.
Of course, Ebro Americana with business units in Chile, Mexico and Spain.
Under the leadership of as general manager of Hans Burner. It continues to grow in revenues and profits of clothes pharmaceutical chemical business in Israel, Although quite small also continues to do well.
I will now turn the call over to Steve Rubin, who will further provide further discussion of our pharmaceutical business Steve.
Thanks, Bill and good afternoon, everyone and thank you for joining us today.
Joe mentioned, we are quite pleased with our.
Our strong first quarter financial results and continued profitability.
Bio reference laboratories continues to secure of COVID-19 testing contracts and its core testing business is trending back to normal levels. In addition, we are also of generally pleased with the advancement of Opco is pharmaceutical businesses.
Global regulatory progress of Soma Trojan continues to be made by our commercial partner Pfizer.
Somewhat drug on is our long acting recombinant human growth hormone that is intended to be administered once weekly with <unk>.
Treatment of pediatric patients with growth hormone deficiency or ghd.
In February of European Medicines Agency validated for review of the March <unk> marketing authorization application.
Pfizer expect a decision from the European Commission in 2022. In addition, we previously announced that the U S. FDA accepted for filing initial biologics license application for somewhat program with a target per <unk> action date in October 2021, and that a new drug application was submitted.
In Japan.
Under our agreement with Pfizer of Opco is eligible to receive up to 275 million upon achievement of certain regulatory and pricing milestones.
In addition, upon launch we are entitled to regional tiered gross profit sharing on sales of about so much rogen and Pfizer's daily Ghd drug Gina <unk>.
During February and March we participated in two endocrinology conferences, including Endo 2021, the Andrew can societies 2021 annual meeting and at ice 2021 of 19th International Congress of Endocrinology annual meeting.
We are pleased to have so much of a clinical trial data presented to generate further awareness of our drug <unk>.
Collectively the various studies presented provided a breadth and depth of data for some of what drove that demonstrate its efficacy and safety for an expansive number of patients over the long term debt.
Presentations posters and abstracts from these conferences can be viewed on our website.
We are also participating in the 2021 pediatric endocrine society of virtual Ada meeting, which is being held today through may three.
Now I'd like to turn to our commercial pharmaceutical business starting with reality.
All of the numbers for the quarter breakdown as follows.
Total prescriptions for reality in Q1 2021 as reported by <unk>.
Our approximately 12300, representing a decrease of approximately 33% compared with Q1 of 2020 and a decrease of approximately 18% compared with Q4 of 2020.
As in recent quarters of reality sales force continues to contend with the impact of COVID-19 on in person access to physicians.
As well as a decline of patient visits to physicians offices.
New patient starts decreased by 10% of Q1 versus Q4.
Since the product was launched nearly 25200 patients have had reality prescribed by approximately 3600 physicians.
Approximately 170 positions or nearly 5% of of total number of prescribers, where new reality prescribers in Q1.
We anticipate that sales of reality will start to rebound as COVID-19, vaccinations become more available and infections decline.
To mitigate the impact of the ongoing pandemic, we are continuously training, our sales force and virtual selling techniques booth.
Boosting our marketing efforts channel through social media platforms, and redeploying sales personality of geographies, but lower infection rates.
We are pleased to announce a day that phase Iia results with reality as a new treatment for HPT and hemodialysis patients fully confirm the previously reported interim data.
Cohort one of this phase II clinical trial exploring the safety and efficacy of our high strength formulation of reality in adults with SHP tea vitamin D. Insufficiency in stage five CK D who require regular hemodialysis was completed in February 2021.
This phase II trial is being conducted of two successive cohorts. The first of which involve 44 patients from multiple U S. Dialysis centers treated in a randomized open label fashion with either <unk> or placebo for 26 weeks.
Top line results from 44 subjects provides of 33 on reality and 11 on placebo.
Demonstrated a reality was well tolerated dose of 900 micrograms of weak and activated to calcitriol. The act of hormone. Despite the lack of functional kidneys and decreased intact parathyroid hormone levels versus placebo.
The full analysis of the final data is underway and will be reviewed with both the FDA and all of those development partners.
Yeah.
Our phase two trial with reality as a treatment for COVID-19, Outpaces is now over 70% enrolled is ongoing to tenuous sites. Many of which are located in areas that are experiencing high sustained Sars COVID-19 two infection rates.
Total enrollment of approximately 160 patients as planned.
<unk> are being screened for possible inclusion if they have symptoms consistent with mild to moderate COVID-19 are excluded if they are either asymptomatic or exhibit oxygen saturation below 94%.
The primary efficacy endpoints include raising indicate maintaining serum total of 25 hydroxy vitamin D. Within the range of 50 to 100 immigrants from mill.
And time to resolution of COVID-19 symptoms of self reported each day by subjects using our questionnaire designed and validated to evaluate in clinical trials of prevalence severity and duration of symptoms associated with viral infections.
Topline data from this randomized double blind placebo controlled trial are expected in third quarter.
Is sufficiently positive they will form the basis for an immediate request to FDA for emergency use authorization.
We continue to advance our earlier stage programs with a focus on our long acting platform technologies in rare diseases. Two of our most advanced compounds are our long acting recombinant factor seven compound for the treatment and prevention of bleeding episodes in patients with hemophilia, a or b with inhibitors of factor eight or factor nine <unk>.
And our long acting <unk> two <unk> for the treatment of short bowel syndrome.
We are continuing to progress discussions to partner our factor seven program.
Preclinical studies of rat model using our <unk> two analog demonstrated strong efficacy and prolonged activity on the of testing.
Preliminary monkey data from the four week toxicity program demonstrated a plateauing of increased intestinal weight.
With the lowest dose and a sustained effect over the recovery period of 28 days, we are plain planning to extend the monkey study to determine more precisely the effect of a lower dose range. The human studies are expected to begin in early 2022.
Now, let me turn the call over to Jon Cohen to discuss our bio reference labs business John.
Thanks, Steve and good afternoon, everyone.
My references core clinical laboratory business continues to make progress to return towards 2019 levels as more physicians offices reopen our salespeople are allowed back into the offices of patients feel more comfortable with in person visits.
Many of our existing clinical accounts of rebounded through Q1, while at the same time, we have added new business of women's health and oncology.
Although oncology practice patient visits are still at 80% to 90% of pre COVID-19 levels.
Our liquid tumor hematology offerings continues to thrive and has bounced back to pre COVID-19 levels and our solid tumor offering is almost at pre COVID-19 levels. In addition, our somatic genomics offerings has nearly doubled in Q1 versus Q1 of 2020.
Our larger accounts, including large medical groups of two axes.
Acos and health systems are also seeing increases in inpatient visits per month over month we.
We expect these improving trends to continue throughout the year as vaccines that are administered and the number of COVID-19 cases decreases.
Our volume of exiting Q1 is now down 7% versus prior year.
Our payer relations team continues to make remarkable progress increasing our access across the country as 10, New health plans will be added within the next 30 to 60 days our investment in the hospital reference business and then of sales force to deliver on that business is beginning to pay off with several new <unk>.
Accounts, having been added this quarter.
In addition, we're expanding our partnerships with several large physician groups and managing their physician office laboratories.
At gene Dx in the first quarter, our genetic testing volume grew over 10% driven by our industry, leading exome testing offerings.
There is a substantial interest in our genome offering across our existing client base driven by our recently launched rapid genome offerings.
In January we also partnered with Tempus, a leading precision medicine company to combine a customized hereditary cancer panel panel.
With our somatic cancer offering as a way to expand our commercial reach without investing in a broader commercial organization.
Finally, our adult neurology testing is growing as a result of our recently launched a taxi of testing offerings.
While reimbursement headwinds continued to impact revenue growth, we expect the accelerated growth in volume to result in this business to be of growth contributor as the year progresses.
In January we formally launched Scarlet health and in home diagnostic service to expand digital health Axis Scarlet brings diagnostic services to patients homes offices or other preferred locations delivering on demand safe and convenient diagnostic experience for patients Scarlet has been designed to.
Similar to tools that consumers use daily and.
Order to provide of convenience ease of use innovative flexible mobile alternative to the traditional patient service center experience.
We believe that a significant part of the future of health care is at home. Our plan is to make in home health care real for millions of Americans by bringing diagnostic services directly to the patient.
Now, let me turn my attention to COVID-19 since.
Since the start of the pandemic, we have now performed $14 4 million COVID-19, PCR tests in the first quarter. We performed approximately $4 3 million of COVID-19 tests compared to $4 7 million tests performed in the fourth quarter.
We're averaging about $40 to 50000 tests a day.
Bio reference continues to provide COVID-19 solutions to meet testing needs of numerous customer verticals, including physicians health systems long term facilities governments schools employers professional sports teams entertainment venues and the general public throughout retail pharmacy chain.
Relationships with Rite aid and Cvs at over 500 locations around the country.
Bio reference remains of the laboratory of choice perfect for professional Sports League as we expand our ongoing relationship with the NFL NBA Major League Soccer National Hockey League and now Major League baseball, which we kicked off in April on opening day.
Thrilled to announce today of COVID-19 testing agreement with the women's NBA League to support all players of staff for their 2015 of them.
Across the sports portfolio, we performed approximately 1 million of COVID-19 tests, Inc.
<unk> of 150000 point of care tests in Q1.
We provide customized solutions to 200 professional sports clubs across 40 cities with perhaps the most experience onsite services organization as a country.
Q1, bio reference successfully supported of large scale testing program for the Super Bowl in Tampa, The women's and men's Big East Basketball Championship in March U S soccer National teams, the USA swimming team and the USDA and multiple universities.
We are performing span testing at several stadiums and arenas around the country through our growing point of care testing capabilities, which includes both point of care PCR and antigen testing.
Speaking of point of care of rapid testing, we continue to rapidly expand our delivery of COVID-19 point of care testing, we have performed more than 270000, COVID-19 point of care tests, including 200000 of rapid PCR test using the make the accurate we use point of care of PCR from multiple sport.
Its league that over 400, plus testing sites with 3000 point of care devices will be performed of large scale arena testing of Madison Square Garden in New York and the Chase Center in San Francisco.
As I mentioned on our last call point of care devices are expected to play a larger role of COVID-19 testing with the shift in demand from screening with timing of results. We have validated multiple point of care platforms and have developed proprietary software to deliver the result results to deliver the report results in a timely fashion and audit.
To provide customized solutions for many different industries.
In March we announced the expansion of our COVID-19 School testing program to support a return to in person classroom instruction around the country. We are working with two of the three largest school systems in the country, New York City, and Chicago by providing testing services for over 1400 schools testing the only three <unk>.
Schools every day to date, we have performed almost 500000 individual tests of public school students principals and teachers, we expect to announce the expansion of our school testing programs to at least four more school districts in the next several weeks.
In February we announced the unique program in partnership with New York State to provide COVID-19 rapid testing to help reopen the New York State economy.
The New York forward rapid testing program is designed to provide new Yorkers and those visiting with inexpensive and rapid COVID-19 testing of New York forward program as of collaboration with the Empire State Development Corporation, The real estate Board of New York Red Day.
Cities, leading real estate trade Association of Cvs Pharmacy to date, we now have 31 of these retail locations opened using a mobile device or a computer and individual schedule of rapid COVID-19 tests pain advanced using of cashless experience get tested and receive their results within 30 minutes or less sense.
They are secure email, allowing them to show proof of a negative COVID-19 result.
As cases have decreased and vaccination has increased we are seeing a shift from diagnostic testing to screening and surveillance.
In anticipation of this trend of I referenced strategically positioned itself several months ago by adding specific point of care personnel developing specific point of care workflow for high throughput events and developing customary custom proprietary software to schedule on report of six different point of care platforms as.
The result, we're able to address simple and complex of <unk> programs across multiple different venues.
We continue to see of significant demand for testing for travel hospitality employer returned to work programs and large venue events. In addition to the sports testing and school testing, we already mentioned.
We believe that many of these entities will continue their surveillance of screening programs through the end of 2021 and in many cases through the first half of 2022, our custom solutions utilizing both lab based PCR and point of care tests has positioned us to maintain our position as the nations leading provider.
Of large scale COVID-19 screening programs. In addition, our improved business base business and strengthening our specialty testing services should continue to bolster our performance throughout the year.
And now let me turn it over to our CFO Adam.
Thank you John we began 2021 by delivering solid operating performance across all of our operations patients, resulting in consolidated operating profit for the fourth straight quarter. Our diagnostics segment reported revenue from services of $507 million compared to 107.
<unk> million dollars from the 2020 period the.
The increase of net revenue was driven by the continued execution of our COVID-19 testing strategy, combining our routine testing business on our COVID-19 testing business volumes overall increased more than 158% compared to historical levels of routine clinical testing however, as John mentioned with seven.
<unk> lower compared to the 2020 period, while our genetic testing volumes were 10% higher compared to the 2020 period.
The diagnostics segment reported operating income of $67 million compared to an operating loss of $18 million, an improvement of $85 million over the 2020 period.
Selling general and administrative.
Expenses, along with research and development expense decreased as a percentage of revenue from 33% down to 18% of revenue, reflecting operating leverage improvements total cost of expenses increased by $251 million compared to 2020, including increased cost of revenue.
<unk> of $216 $5 million due to the increase in testing volume.
Moving to our pharmaceutical segment, we reported revenues of $38 $2 million from the first quarter of 2021 compared to $40 6 million for the 2020 period.
Revenue from product sales from the first quarter increased slightly to $33 9 million, which included $5 $8 million of revenue from reality compared to $31 1 million in the first quarter of 2020 inclusive of $9 $9 million of revenue from reality.
<unk> has continued to be negatively impacted by physician office restrictions.
<unk> product sales representatives from making sales calls revenue from the transfer of intellectual property, we reported $4 $3 million of revenue for the <unk> 2021 period compared to $9 6 million from a year ago, reflecting the completion of our Soma drug in phase III clinical trial.
Loss from operations of our pharmaceutical segment was $19 $2 million for the first quarter of 2021 compared to $14 $1 million from 2020 period.
Overall research and development expense from the first quarter was $15 8 million compared to $18 6 million for the 2020 period again, reflecting reduced spending on our Soma Crogan development program on.
On a consolidated basis, the first quarter of 2021 had on operating profit of $38 4 million a significant improvement of $79 $2 million over 2000, Twenty's operating loss of $40 8 million. Our net income for the first quarter was $31 1 million or <unk> <unk> per diluted share.
Compared to a net loss of $59 $1 million or <unk> <unk> per share from the 2020 period.
Our cash balance as of March 31 was $89 $5 million and we of approximately $164 million under of availability under our line of lines of credit.
The combination of our cash cash on hand and of lines of credit provide us with a strong balance sheet and adequate capital resources as we look into the second quarter of 2021, we see continued opportunity to generate operating profit and cash flow.
Given the uncertainty of testing demands for COVID-19, we again are limiting our forward looking guidance for the second quarter.
For the second quarter of 2021, we have built the following assumptions into our forecast.
We anticipate performing between three and $4 million COVID-19, PCR point of care and antibody tests during the quarter.
As John mentioned, we have capacity well in excess of these levels should demand for testing increase our revenue could expand beyond our guidance.
So far this quarter, we have already performed over 1 million COVID-19 tests. So our guidance reflects a range for testing demand from our position in general public channel, while testing from our schools Sports Entertainment and employer channel are expected to remain or grow from their current levels.
We assume our base business for routine clinical testing.
We'll remain at current levels, which are overall in the mid to high single digits behind our base year of 2019.
We anticipate reality sales to remain behind 2020 until our sales force is able to fully return to their promotional activities.
With that overall, we expect revenue for the second quarter of 'twenty, one to be between $420 million and $490 million, including revenue from services of 385 million to $450 million revenue from products of 30% to $34 million and other revenue of $4 6 million.
We expect costs and expenses to be between $415 million to $485 million, resulting in an operating profit of $5 million to $15 million at various points between the revenue and expense assumptions as John mentioned, we're making significant investments into our commercial organization.
Which are reflected in those costs.
Operating profit excludes approximately $20 million of noncash depreciation and amortization expense as well as an expectation of research and development expense of $18 million to $22 million.
With that I'll turn the call over to the operator for questions.
Ladies and.
I Wonder if you have a question at this time. Please press Star then the number one on your telephone keypad.
If you have question you May press star one on your telephone keypad.
Your first question comes from the line of Maury Raycroft from Jefferies. Your line is now open.
Today.
First question I had was just on COVID-19 testing. So there was some discussion around Opco Guinea named as one of the four designation testing centers of the U S government and I think that decision was supposed to be made yesterday just checking if there is a status update on that.
Yeah, Hi, it's John.
So that decision has been delayed by the by the government until may 14th or 15th.
But yes, we are.
We are we have submitted and we were asked to submit as one of the finalists.
But so the answer is we won't know anything until may.
It looks like may 14th or 15th they've delayed all.
All decisions until then.
Got it makes sense.
And then now that we've been into COVID-19 for a couple of quarters, probably difficult to predict too much going forward, but just wondering if you have any line of sight into optimizing capacity and cost and expenses that could potentially benefit the bottom line maybe in <unk>.
Hey, Martin go ahead of that Alright, Glenn.
Going to Saint John Please please that so we're obviously paying pretty close attention to the level of investment that we have.
Obviously, the testing demand is declining so you could imagine that we are starting to scale back some of our operations. However, it is remaining fairly robust so theres not a significant amount of cuts that we could we could do to bring those costs in line, but it is absolutely something that that will continue.
To manage.
Appropriately I don't know John if you had any specifics there.
No that's right.
Yeah.
<unk>.
Now that debt.
That's exactly right, where we're trying to manage it at most of the cost quite honestly is on the SaaS side.
On the equipment.
And some of it's on the supply side of their agent side, but right now we're managing it as tight as we can given the fluctuations and whats going on day to day, but we are acutely aware of keeping a very close eye on it.
Got it that's helpful. And then last question is just on some of trogon. So.
Youre producer is scheduled for October 2021.
And then the U S.
Sanders Paducah is scheduled for June I'm, just wondering if you've gotten any indication from FDA that the timing on nozomi trogon decision could get accelerated based on the centers timeline, if theres been any informal feedback on that.
Alright.
We've had no feedback on that point.
Okay any thoughts on if that's a possibility.
Anything is possible.
We continue with the expectation that the <unk>.
<unk> per day will remain the approval date in October.
Okay. Thank you for taking my questions.
Yeah.
Your next question comes from the line of Dana Flanders from Guggenheim. Your line is now open.
Great. Thank you very much for the questions.
My first one I was hoping you could help me understand better understand just the services revenue number.
This quarter and I ask because it looks like Youre testing volumes.
Came in at the lower end of guidance, but your reported revenues service revenues came in at the above the high end of the guidance and so I'm wondering if that was better reimbursement.
On the testing side or if there was something else.
I'm missing.
So Dana what we've seen is.
And we've talked about the speed of little bit before is a lot of the testing volume has shifted away from from the state and local government testing that was done and move to some of the higher higher revenue line items are higher price per per test line items with some of our non nongovernment.
Business, So it's a shift and an increase in the overall reimbursement.
On that Youre seeing come through to have that impact.
Okay, Okay got it.
And I.
I guess along those lines.
I appreciate the color on.
The volume Youre getting on the sports channel side.
Wondering if there are other kind of non traditional channels that you are focused on where you see a big future opportunity that maybe you haven't tapped yet.
Yes.
I mentioned, a little bit so if you look at the different verticals the and this is related to.
What everybody is referring to of screenings flash surveillance.
So the bigger ones are travel and hospitality.
There's obviously enormous amount of funding available for school testing of which we are I still believe probably the largest two of the largest amount of public school testing of the country currently of which we're I've mentioned, we're adding on.
And then there is the I'll call them large venue.
And it's not just the.
The Garden Barclays Chase center et cetera, but theres also large.
Venue events that are looking for testing, particularly screening testing as they unfold in the fall on that could be all sorts of different.
Concerts and races et cetera, so we see a fairly significant demand for those kind of events and I would say the last of the large verticals is how employers deal with bringing their employees back to work.
So a lot of discussions around that because that's also falling in the screening surveillance category.
Okay. Okay. That's that's helpful and maybe just my last one.
Just wondering on your broader kind of R&D efforts and pipeline.
With hgh kind of nearing the finish line.
How youre thinking about kind of the internal assets you have and if there are.
Internal ones that you were excited about going to start to prioritize.
Or kind of BD in licensing could also be something you consider.
As you think about moving.
Moving the pipeline forward. Thanks.
Okay.
Well there is a this is Tony Cruz.
The focus right now is still is in finishing the growth hormone.
And also initiating a second indication in pediatrics and another indication of our basket of indications with Pfizer. So there is a quite of bit of focus still on the growth hormone as it progresses and also potentially getting.
The ready the data and the analysis of that's necessary from potential and that'll debt indication.
Applications. So there is still an ongoing in terms of the pipeline.
Steve has indicated the factor seven is.
<unk> is a molecule that looks promising in the phase one data that we did in the phase Iia data.
We are looking at starting a.
Our synthesis in the development plan for that and the other one is the <unk>, where we did an animal Tox study where.
We're looking to optimize this molecule because it looks very potent compared to some of the competitors that are currently in once weekly as well as compared to GAAP X.
So those two look promising and moving forward, we do have additional molecules that.
We could move forward, but these are the two of them, we really are focusing on at this time.
Okay. Thanks for the color.
Yes.
Your next question comes from the line of Advair on Ken Hall from Piper Sandler. Your line is now open.
Okay.
Alright, thanks, guys and congrats on a nice quarter.
So a lot of other questions on hyper answered, but I wanted to sort of pick up and just in terms of.
Prep work.
<unk>.
Ahead of the.
Paducah date, as well as commercial loans again, appreciating that a lot of that is in the hands of Pfizer is there anything in particular that you guys are involved with.
No.
Just any color you can kind of share with respect to preparation for the loans. Thank you.
No it is per.
The agreement Pfizer is responsible for all of commercialization activities.
We do have regular meetings discussing what theyre doing but in terms of our actively participating we don't where we're participating isn't continuing of development and.
And continuing to present data in different.
Different meetings to make sure that the awareness has continued but I think most of that really is still under development ongoing as you know we had large trials debt.
Were completed but the ongoing open label extensions are ongoing and will still of gathering data from that so theres very close activity. The last day is obviously associated with these submissions.
As of continuous rapport between the company and the <unk> and the FDA or other regulatory agencies to answer their questions and so a lot of the focus with Pfizer as relief.
Taking this to two approval.
Excellent. Thank you so much.
Okay.
Your next question comes from the line of Yale Jen from Laidlaw and company. Your line is now.
Oh, good afternoon, and congrats on the per quarter.
My first question is that.
Going forward do you anticipate a breakdown.
The COVID-19 test between PCR and Serological test changes.
Or pretty much just day to read through the same sort of.
Rachel.
Yeah, I think it's a good question and quite honestly I don't think anybody anybody knows yet what.
What will happen for the antibody testing of our quantitative antibodies for both people who have the vaccine or the the disease.
A little bit of that will be dependent on.
The government.
Governments or governments of regulatory oversight and either here in international relative to.
Showing proof of the vaccine and our possible antibodies, but that's conjecture right now nobody nobody knows which way it's going to happen it's going to occur.
<unk>.
But it just depends on who will require one of validation, but otherwise I don't think anybody's got that answer.
Okay, and maybe two quick ones.
In terms of I mean, you just mentioned debt. It seems that you are getting a higher price testing done that's why your revenue increases do you anticipate this trend going forward.
<unk>, Inc.
So next quarter and maybe put it in sort of second half up just in terms of getting a higher price per ton.
Yes.
I don't think there's going to be another large step up but the school and some of the surveillance testing that John was talking about those come at a slightly lower price.
Then than where our average is coming in today.
But I think it really does depend on a lot of the general public demand for testing and how that that continues to evolve.
I do think that the government sides of mostly shifted from testing to vaccinations. So most of those contracts are going to continue to wind down.
But as the broader testing from from the general public.
Continues or if we're able to expand some of our sports and leisure franchises. Some of those come with higher price points. So it really does depend on on the mix, but I think the general public demand is the biggest unknown there.
Okay, maybe the last question debt I think just about John that you mentioned there will be 10 more.
Health plan to be assigned it over the next 60 days.
Just overall what is the coverage life book in total for those plants and thanks Anthony.
I don't have in front of me. If you asked me for the number of lives that have to get back to you to tell you what the impact will be.
So we'd have to circle back to tell you exactly half of it yeah. There was I don't know exactly how many lives that represents.
Okay, great. Thanks, all of it I appreciate it.
I am showing no further questions from this time I would now like to turn the conference back to Dr. Frost.
Well, if they're of no more questions I would like to thank everybody for participating and tell you that.
We look forward to meeting with you again after the next quarter's results are ready.
Thank you.
Sure.
This concludes today's conference call. Thank you all for joining you may now disconnect.
Okay.
Yes.
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Alright.
Okay.
Yes.
Okay.
Yeah.
Yes.
[music].
And moving forward.
Moving now.
Okay.
Okay.
Growth.
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