Q4 2021 Quotient Ltd Earnings Call
Thank you for your patience the conference will be beginning and just a few minutes again, we just wanted to thank you for your patience.
[music].
Greetings and welcome to quotient Limited's fourth quarter and fiscal year 'twenty 'twenty, 1 financial results conference call. At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation.
And he wants you require operator assistance during the conference. Please press Star Zero on your telephone keypad. Please note. This conference is being recorded and will now turn the conference over to Peter Buhler, Chief Financial Officer. Thank you you may begin.
Thank you Sherry.
Good morning, everyone and welcome to quotient earnings conference call for our fourth quarter and fiscal year ended March 31st 2021.
Joining me today is Manuel O Mendez, Chief Executive officer of quotient.
Today's conference call is being broadcast live through an audio webcast and the replay of the conference call will be available later today at Www quotient P D dotcom.
During this call quotient will be making forward looking statements, including guidance and protection as to future operating results and expected development and commercialization timelines.
Because such statements deal with future events.
<unk> results may differ materially from those projected and the forward looking statements.
Additional information concerning factors that could cause actual results to differ materially from those into forward looking statements can be found on quotients filings with the U S Securities Exchange Commission as well as and this morning's release.
The forward looking statements, including guidance and protections provided during this call are old valid only as of today's date and quotient assumes no obligation to publicly update these forward looking statements.
With that I would like to turn the call over to quotient as Chief Executive Officer Manuel.
Thanks, Peter and good morning, everyone. This is my first earnings call since I joined quotient 60 days ago over the past couple of months I've been meeting with investors customers and internal associates, both in person and virtually and Switzerland, and Europe and the U S. This external and internal perspective and enabled me to.
A clear understanding of the company informed by my many years of and the diagnostics and life Science industries. When I reflect on the short term and I've been here I believe we are well positioned for the future I look forward to keeping you updated on the progress over the coming months and years.
I would like to begin by providing you with an overview on the following 3 topics.
First the mosaic solution development and commercial and commercial readiness.
And I will inform you of the progress we've made on each of our transfusion modalities.
Hematology neurology and molecular next I will provide you on Alba by quotient and full year and Q4 performance update.
And lastly, I will provide you with an update on the company's financial position.
Regarding our mosaic solution and development progress to further strengthen the company's R&D Tech transfer and overall mosaic development strategy. We have added a new member to the quotient and leadership team Doctor, Michael Hausmann, and Michael will join US as Chief Technology Officer in Q2 of this fiscal year.
And most recently Michael served as the senior director of Global R&D and clinical Diagnostics Division of Thermo Fisher scientific.
Michael brings over 20 years of experience and the in vitro diagnostics industry and most recently on Thermo Fisher scientific he expanded the adoption of Brahms protocols, and Tony and in China, and the U S. Prior to Thermo Fisher, Michael led a team of DRAM are you to develop divide us and invite us 3 assays and while at Abbott Michael Deveau.
And ex U S architect and infectious disease portfolio for blood screening and diagnostics.
We will benefit from his experience, specifically and assay and instrument development and across other functional areas such as manufacturing I'm extremely excited with a P. On Michael's joining and I know he's going to make a big impact there.
During the last few weeks I've had an opportunity to visit our customers and the U S and Europe and I was encouraged to hear our few shouldn't mistake customers are eagerly awaiting the commercial launch of our innovative system 1 of our customers shared the mosaic solution will improve our workflow and help solve the staffing shortages and our.
Industry is facing today and.
I'm confident the multimodal multiplexing mosaic solution can help address lap complexity staffing shortages budget constraints and for sure the safety of the blood supply and that our customers need.
We look forward to collaborating with our customers to gain share in the $3.4 billion and transfusion diagnostics market in the near future.
Next I'd like to share the continued progress we've made on our 3 modalities key did the transfusion diagnostic and all day Mint markets.
On expanded IH or immuno hematology, we have made further improvements on our manufacturing process, which resulted in improved performance levels and that we have previously published the a b O R. H and kill system performance levels met 100% accuracy also most of the extended phenotype.
And tests were above 99% accuracy, we now have a confirmed menu and are ready to enter CE, marking field trials. This month very exciting U S field trials will commence shortly thereafter.
With recent new hires and with the capital raise as you've seen from our previous our press release, we have the human and financial resources, we need to complete and the commercialization of the expanded immuno hematology product.
Regarding our serological disease screening panels. The continued development for the expanded Sds menu has brought the performance of the detection of the antibodies for the individual markets to the expected performance level, we have finalized the development for most of the antibodies and antigens and are working on the integration.
Of those markers on the microarray I will provide more information regarding the next steps on the end of this call.
Moving on to our M D S or molecular disease screening previously we provided performance updates on the M. D. S. I'll say concordance against the predicate device and we have now completed a successful phase of testing aimed at challenging the assay as limit of detection and against the Roche Carbos. This testing confirmed the most.
Sig M. D. S. I'll say has similar levels of sensitivity for HIV, 1 hepatitis B hepatitis C and this gives us confidence and our ability to extend the development to the food targeted product menu, which I will share on the second part of the presentation.
On commercial readiness, we have great news as well, we continue to make progress towards Mosaiq commercialization and customer partnerships. Currently we have received commitment from 12 customers to evaluate and demo the mosaic solution. The placement served to strengthen our chances of tender success, but also gives us the.
Ability to generate third party data supporting our scientific narrative, we anticipate 25 potential tenders in <unk>.
Why 'twenty, 2 and FY 'twenty 3.
Additionally, our commercial team evaluated various global market expansion opportunities for mosaic and have identified potential distribution partners.
Also we've hired additional key account managers to support coverage in new geographies, such as Poland, Czech Republic, Slovakia.
Italy, and Benelux among others.
Lastly, we will expand our Larry true process consultants team to partner with customers to create workflow and efficiency value as they implement the mosaic solution.
Moving on to all about quotient by Alba by quotient and reagent business update Alba by quotient is a steady business with 67 per cent of sales based on standing orders, mainly from a small number of OEM partners. We have had a good fourth quarter with 7.4% growth year on year. The 'twenty 'twenty, 1 full year sales of Alibaba.
<unk> grew 9.2% over the last year, mostly fueled by direct business growth of 8.8% and our largest OEM customer growth of 11, 1% year on year, Peter will be sharing some additional data lastly, our team is evaluate various global market expansion opportunities for Alba and have identified potential new G.
<unk> and distribution partners to feel the growth.
Regarding financials on a on the last point I will give you a brief summary of our current financial position.
Last week, we announced the private placement of convertible notes for a total amount of 95 million. The agreement also includes a reopener for a total amount of additional $15 million. We are very excited with the prospect of closing some of these you know on additional opportunity in terms of our additional.
Funds securing this financial this financing from an existing long standing stakeholder like hybrids and other investors strengthens quotient balance sheet at a pivotal time for our business and importantly, the funds and allows us to meaningfully advance our strategic vision of developing a multimodal multiplexing diagnose.
Most of this solution for their transfusion market and.
And accelerate our expansion to our commercial opportunities and.
And the next few months, we'll assess possibilities to restructure or refinance our existing senior secured debt, which I know it's in some of your minds.
And regarding our investments and credit Suisse supply chain funds 2 day more than 68 per cent of our initial investment, whereas return and we have a remaining $34.7 million outstanding. We believe credit Suisse should reimburse any potential loss to the company, which may occur on these investments so far credit Suisse has not yet committed.
We will monitor this and the coming months ahead with this I will turn it back to Peter for the financial update Peter.
Thank you Manuel.
Fiscal fourth quarter product sales were $9.6 million and increase of 10, 8% from last year's fourth quarter.
The increase and product sales was primarily attributable to Alba by quotient revenues from OEM customers and 2 Ltd mosaic and sales of COVID-19 antibody test.
In the quarter OEM sales of $6.5 million grew 10, 3% year over year and represented 67% of all product sales.
The increase continues to be driven by better pricing and increased sales to existing customers.
<unk> and distributor sales of $2.9 million increased 1% year over year and represent 30% of product sales.
Direct sales and the United States increased 10% year over year.
In the fourth quarter gross margin on product sales was 45.8 per cent and slightly increased compared to 45, 6% last year to.
The improvement is due to better sales mix.
And the fourth quarter, we recorded an operating loss of $28 million compared with $21.5 million last year.
In the quarter operating expenses were 30 point, $32.4 million and increase of $7 million over the prior year.
Research and development expenses were $15.4 million, a $500000 increase year over year, mainly driven by additional staff and material costs associated with the Mosaiq project.
General and administrative expense were $14 million and increase of $6.1 million compared to the prior year. This cost increase is it related to the change and CEO and the departure of the C O O as well as increased insurance cost.
Also included in G&A cost and stock compensation expense, which increased from $1.1 million to $1.5 million and increase of 400000 dollar.
Sales and marketing expense of $3 million increased 300000 from the prior year's fourth quarter, reflecting the continued scaling up of the commercial group and view of the launch of our first commercial menu photo and a lot.
In the fourth quarter, depreciation and amortization were $2.1 million versus $3.3 million in the prior year dip.
Depreciation and amortization decreased <unk> 2 assets located in our Swiss manufacturing sites that are now fully depreciated.
Net other expense was $9.9 million compared with $2.6 million and the fourth quarter last year.
Net other expense consisted of interest expense of $6.4 million.
1.2 million and foreign exchange loss and an impairment loss of $2.3 million on our investments and credit Suisse asset management funds.
Compared to interest expense of $3.5 million and and 800000 and foreign exchange gain in fiscal 'twenty.
Interest expense in fiscal 'twenty were lower due to reassessment of accumulated royalty liability.
Overall, our net loss for the quarter was $38.3 million was 38 cents per ordinary share compared with $24.7 million or 31 cents per ordinary share and the prior year's fourth quarter.
For the fiscal year productivity were $35.8 million and increase of 13, 2% over the prior year.
Total revenue for the year also includes other revenues of $7.6 million that primarily related and non reimbursable upfront milestone payments received from also appointing said upon signing of the letter agreement.
And the prior fiscal year other revenues reached $1.1 million.
For the year gross margin on product sales slightly improved from 43, 7% and fiscal 2020 to 43, 9% and fiscal 2020.1.
For the full year operating expense increased by $10.3 million to $105.8 million. This increase was primarily due to higher general and administrative expenses.
The increase in G&A is driven by the costs related to the change and CEO legal expense related to do also arbitration and higher insurance cost.
R&D costs increased 400000 dollar year on year and reached $54.2 million.
Sales and marketing costs remained stable at $9.8 million versus prior year.
Our fiscal 2021 operating loss of $82.5 million included $15.4 million of noncash expense, which compares to $80.7 million operating loss, which included $17.8 million of noncash expense in fiscal 2020.
And the fiscal year net other expense was $24 million compared with net net other expense of $21.4 million last year.
Net other expense consisted of interest expense of $25.9 million and then.
Impairment loss of $2.3 million on our investment and credit Suisse asset management funds.
Offset by a $4.2 million gain on foreign exchange.
This compared to interest expense of $23.9 million and $2.4 million dollar gain on foreign exchange and fiscal 2020.
Overall, our net loss for the year was $108.5 million or $1.18, a dollar per ordinary share compared with $102.8 million or $1 for $1.44 per share and fiscal 2020.
Net cash used in operating activities totaled $20.8 million dollar and the fourth quarter of fiscal 2021, compared with $15.8 million and the prior year fourth quarter.
For the full year net cash used in operating activities reached $77.6 million compared to $80.6 million last year to decrease of use of cash is mainly due to the additional milestones revenues and higher Alba by quotient gross margin, partially offset by increased operating expenses.
Capital expenditures and the fourth quarter of fiscal 2020 with $600000 compared with 700000 and deploy prior year.
For the full year, capex totaled $4.2 million compared with $4.6 million and fiscal 2020.
Our capital expenditures, mainly include the purchase of Mosaiq instruments and manufacturing and equipment.
Moving to the balance sheet avail.
Available cash and cash equivalents and short term investments at March 31, 2021 were $112 million compared to 121 million, 1 year ago and and.
And we have $90 million restricted cash reserve related to our senior secured loans.
Our short term investments include investments into 2 credit Suisse supply chain funds.
Credit Suisse suspended redemption and announced the recreation of dysfunction and March 2021, and the total remaining investment at March 31, 2021 was $53.2 million.
And April 2021, we received a food to pay out of $18.5 million and as of today $34.7 million are still investing and subject to significant value on certain devaluation on certainties.
At March 31, 2021, we have taken an impairment charge on 1 of the 2 funds of $2.3 million.
Timing and amounts of food and payoffs is not clear, but we believe we will be able to recover the outstanding funds within fiscal year 2022.
As announced last week and May 'twenty 'twenty, 1 we raised additional cash through the private placement of convertible notes.
This further strengthens cautions cash position as we continue to Atlanta, and most of our development pipeline and start commercialization.
The terms of these convertible notes allow us full flexibility on restructuring or refinancing the existing senior debt facility and we will address this question on the coming months at the end of the fiscal year. The total outstanding senior debt secured debt was $145 million with a $12 million reimbursement paid in April and the further reimbursement of 12 million.
Due in October 2021.
With the additional cash added to our balance sheet. We address the question on potential additional cash requirements and we do not anticipate any liquidity constraints and the foreseeable future.
Accounts receivable totaled $5.3 million dollar and inventory totaled $22 million.
Inventories increased by $1.5 million a year over year. This increase was related to hydro mosaic inventories and and exchange rate related increase of Alba by quotient inventories.
Moving to guidance for fiscal 2021, we are forecasting full year revenue from product sales of Alba by quotient reagents and the rate range of $35.5 million to $36.5 million.
And no milestones related to other revenues are expected.
We forecast capital expenditures and the range of $5 million to $10 million.
With the acceleration of or most of US field trials, we expect cash use and operations of approximately 6% to $6.5 million per month.
No guidance is provided on operating loss and we do not expect major revenues derived from mosaic.
With that let me now turn the call back to Manuel and thank.
And Peter looking forward now I first would like to share upcoming plans for the next few quarters and the same 3 topic areas I mentioned earlier.
Firstly, the expanded IH microarray CE, marking field trials, so just around the corner and will start in June U S field clubs would commence or shortly thereafter as I mentioned before instruments have been installed qualification visits and have already been conducted.
And during my recent travels that some of these accounts you know there really confirmed the interest on that so we are on track to submit to the regulatory agencies and expect to obtain CE, marking around year end upon approval will be qualified to participate and European tenders as I previously stated we expect around 25.
Tenders to become available in 'twenty, 2 and 'twenty 3 and.
Additionally, we have been working on the development of our patient microarray, which will leverage the learning and development from our expanded microarray. This is a key deliverable and our partnership with ortho clinical diagnostics in the patient transfusion market regarding the serological disease screening, we continue to make progress with the reallocation of our expanded.
S T a solution the disease targets of the antigen and antibody detection are progressing through the final stages of development and integration performance data on the antibody to date has met 7 of the 8 targets and based on the Derisking activities in place we are confident to achieve the required targets for analytical sensitivity and <unk>.
His city within the stated timelines and Additionally, we haven't and we have identified the sites for the required field trials and the process for Finalization of the clinical protocols is currently being reviewed by the Irb's. All activities are on target to begin field trials in parallel in Europe, and the U S by year.
And <unk>.
Lastly, although we do prioritize the initial Sds 5.10-K, Resubmission and the U S to focus on improving our expanded IH microarray. Our teams have made great improvements on the S. T S. A product for the U S. In terms of performance to specific non concentrations and various clinical disease.
States, we will need to run additional cleanup of field trials and expect to submit to the FDA by year and as a reminder, we will commercialize the initial Sds microarray and the U S. After we receive the expanded IH microarray FDA approval. So our commercial launch for the initial Sds and.
Immuno hematology launch is on track.
Regarding the M D S or molecular disease screening microarray development is continuing with the full M. D. S menu as I said it earlier, we have performance data on HIV, 1 at HBV and H C V from the feasibility phase and the team have identified the reagent pairs for detection for HIV 2 H E V.
And West Nile virus. This is a really great in terms of completing the target menu performance targets, we will focus on equivalency to Roche robots, and we will be updating you on this and then the coming weeks.
On commercial readiness, and we look forward to the tender demo and valuations to support the customer experience. Additionally, on our commercial teams have been utilizing both our transfusion advisory board and and newly created IBD Advisory Board to drive product and partnership positioning on and decision, making these types of partnerships will allow us to draw.
On the skills and knowledge from external experts.
Alba by quotient and our team has conducted incremental assessment of a products and are looking into new customer opportunities using that information and the team will begin implementing an action plan in the coming months. The other business started the process to extend their certificate on to 'twenty 'twenty, 4 which includes renewals under the I V D D.
As well as the generation of additional data for the first batch of products that must be I V. D are certified by May 2022, we expect to submit to the notified body in June of 2020..1 so quotient will be ready to transition from IV D. D to I V D R.
Lastly, on our financial position I would like to reiterate Peter's points I am very excited with our current financial flexibility, which provides us with the freedom to deliver on our plans and generate substantial value for our shareholders over time to close I am extremely proud to be part of these quotient team and look forward to part.
Entering with our customers now I would like to hand, it over to Sherry to open the Q&A session Cherry.
Thank you and he would like.
To ask a question. Please press star 1 on your telephone keypad.
And you can't your line is and the question queue.
Press Star 2.
And of your question from Nikhil.
Yeah.
And from participants using speaker equipment and maybe.
And the necessary to pick up your handset before pressing and they start. He is our first question is from Sam Jinan with BTG. Please proceed.
Hi, Thanks for taking the question, maybe kicking off with the book.
Standard IH array and sound.
And so a little bit like that day.
And.
And the field trials in Europe, and has been delayed a little bit on and this was kind of curious you know would you still be able to make the.
And in March it may stand by the end of the year.
On.
With the new time line and also what's curious about what the timeline for I D E F pools had net.
At this point.
Yes.
Thank you for the question on Sunday.
So there's no delays on the start of the Clinical's, we've always planned to start them in June.
For the CE, marking so that's that's on track and so we don't anticipate any delays in terms of some completion of the clinical trials submission to the CE, marking our agency ore body and then you know are the uptake and of the approval. So there there's no changes there.
And has been anticipated previously and then as far as the U S clinical.
Clinical trials they they remain on track to start in the August timeframe.
And you know we expect to submit by by year end and then from there you know obtained a you know do the necessary exchange with the agency with the FDA to get the proper approval.
Thank you and thank you for that and then could you kind of talk about the environment currently.
And obviously there have been delays from.
Your targets you know few quarters ago.
And the pandemic worldwide and I was just.
On a curiosity in terms of what you're baking on par.
And so Brett.
Yeah and.
And obviously, you're making a lot of progress and but you know with curious what you know what's kind of going on in Europe versus the U S and alright.
Opening up on the laboratories et cetera are in relation to the pandemic.
Yeah. Thank you for the question so regarding the pandemic I think the good news is that they're they're different governments and countries are opening up.
The we see a great openings here and particularly in Switzerland, where we have you know as you know.
Randy and and a big presence here.
And so many people are being vaccinated. The government has really taking a lot of steps. We're also doing vaccination efforts for for our teams and which then helps us to have a lot of flexibility actually starting yesterday you know now on the government has said that people don't have to work from home before previously there were required to work from home.
And for the most part so that has been lifted which gives us a lot of flexibility in terms of making sure that 1 we can bring the necessary teams on.
And to the site as well as then you know making sure that there is a that we have a safe environment and in their working environment. Here. So we're taking all the measures necessary to be able to bring people back.
Fully and then continue the engagement across that so that's specifically to Switzerland, as you've seen and the different countries. The U K has it been going back and forth with the reset and variance I think that has created some challenges.
And where they have gone and you know and back from Amber to read in some insight by some countries and so we're managing through that process, but you know for the most part we do anticipate again that our clinical trials, which are in different countries. We will be able to proceed we don't anticipate the COVID-19 pandemic situation too but.
And any limitations on that and the near future. So I think that's all good news for all of US Peter I don't know if you want to add anything no. I think like you said, we will now be able to progressively bring people back on site Yep Yep. Okay. Great. Thank you great Fantastic and then lastly from me just curious about the plasma diagnostic market and.
And what the basketball market potential there and so on any progress you're making I intend to develop and how that's played out.
Thank you very much yeah, so 1 on that.
That's a great question and thank you for asking so we are 1 of the things that I have identified and are very short term I and since I've been here is that you know, we definitely have and opportunity to collaborate with different plasma.
Gartner is and we're exploring and you know that market size and you know a very you know that.
Entity, Peter Yeah, you have the number I think it's like almost a yeah. We actually we had 1 million about 7 and $750 million roughly market size total market, yeah, and it's primarily U S. U S centric or a U S centric. So we'll be exploring some of these 1 of the things that we discussed internally is it can we leverage some of the clinical trial.
Sites that were using and that we're doing to accelerate the introduction and the plasma setting.
So that's something that teams are evaluating to see so then therefore it allows us to get a quicker approvals plus also leverage the infrastructure and we're gonna have and on the star on sites to decrease our cost and being able to to do some of those clinical trials. So I think it's a it's a win win for everybody and as we go in and try to target opportunity.
And this area as well.
Fantastic. Thank you so much.
Thank you.
Our next question is from Josh Jennings with Cowen and company. Please proceed.
Thanks, Manuel and Peter and congratulations on the progress and bring and Doctor house and and onto the team.
Final question on the IH II progress.
It sounds like the optimization of some of the energy and tests went well.
And you just remind us was I mean.
You guys didn't release formal DNV internal BNP test result.
And share some metrics on the call him and well and.
And they seem to be very successful, but they're just and my question is were there any energy and <unk> added.
And is that would be and be testing going to be made public before the EU field trials.
Yes, so I look I think to your point, we've been very pleased with the progress on the menu. What's been included in the menu. We haven't shared this data. We're looking at you know are different and incremental testing internally and then once we start on the clinical trials.
And then you know are we will be able to share some of this information in the future at this point again, while we're gearing up to the clinical trials you know, we're not planning to release any data yet but.
But certainly we'll be looking forward to the you know to a successful outcome on the clinical trials and then sharing some of this information.
And in the future, but what I can tell you is a you know a we are very pleased with the results and as I mentioned the team has done a really great job and not only address the basic you know menu, but the extended which is key as we compare against other providers and in the market.
Which makes US again are really really excited with the prospect and conversation with the customers.
And the positioning of our solution.
But Peter I don't know if anything you want to add no. I think you know we will I mean, our focus was really to improve to a to the test sales were below the 99% and I think that's 1 of a study we were successful on that and now we're going into field trials and I think that's what counted and from the field trials.
Excellent.
Thanks for that and then just on the U S field trial front for IH too.
Can you share how many sites will be running test and and just remind us I mean, how long do you expect it to take to run those field trial results and.
And then and they get the results and and make those public.
Yeah. So the normally the the we have selected 3 sites are.
And as I mentioned and on a previous question on on plasma we may add a fourth side just because you know we wait and they want to have that as a as a as part of the clinical trials and normally it would be about 6 weeks are 2 completed and you may you might think to yourself you know that's a bit long, but it's because we are actually comparing.
Ah different methodologies, where some of the our automated and sudden require manual intervention, particularly if you look at this Gordon samples and re.
Acquired some and you will testing so that's what sort of extending that but what are the team normally we will do is then analyze the data and once the data is completed and submitted and we need to assess.
How if this data can be shared you know publicly or you know again, if its solely for the purpose of the submission sometimes you know theres. Some sensitivities there. So we'll assess that base and discussions with our regulatory teams and then if it's something we can share you know and it certainly it will we'll do that and soon.
And it is possible, but you know again, if we go back we will do the same thing on the CE marking.
There you know the submission is expected shortly after clinical trials are completed and.
And in Q3. So we're excited to see you know are the you know and.
And wait for the for the outcome of that submission.
Great, Thanks, and and the question on commercialization in Europe, once seed markets and hand.
Great update you on 25 potential tenders and.
And conducting valuations and a minimum of 12 sites by fiscal Q1.
Just hoping to understand better just the it.
It sounds like you'll get a CE mark you'll start to have these evaluations conducted at the centers and the tender process will be going on in parallel, but maybe just help us understand this evaluation process and.
Now that the time it could take for evaluation.
Testing and integrating into workflows and.
And then and and actually signing getting and install and starting to generate revenue from from those music and stores in Europe.
Yeah. So the that's a great question and thanks, Josh So out of the 25 tenders that we that we are evaluating not every tender requires and evaluation of our demo rides and so that's 1 thing so.
And then the second piece is that those that would like to have any evaluation and we've been very successful and influencing that or are they require and evaluation and that's part of the tender process. So it's not something necessarily that we control in terms of timing. So we'll have to adhere to the timing of the tender.
It depends on how many samples they they're going to run the experience from a customer interface and sometimes it takes a week sometimes it takes a couple of weeks as as they do their process and now our intent is that 1 sudden evaluation is done or demos done that you know that can turn into a revenue.
And for sure of course.
So you know and working with the commercial teams are we we're keeping this in mind, which is the and we have very successful experience once our customers experienced the mosaic because of the ease of use because of the you know the the capabilities that the instrument has they it's like running a you know.
Taking a car for a spin you know they want to keep it they don't want to they don't want to give.
Give it back so that's our intent and these evaluations and the demos as well and again, we need to abide by the tender process and you know what they go through and so I can't really comment on timing, but certainly our intent is to be able to do whatever is in our powered to accelerate that process and then you know and ensure that there is.
And immediate adoption following that.
Great and just a follow up just in terms of the historic hyper care sites, where music systems were placed and that evaluation work may have already been done are those sites should we be considering them kind of sites that have already had this evaluation period and are completed and are ripe as a potential new customers earlier.
And then and some of these other 12 and understand that and other customers won't need and evaluation process.
Yeah.
Right I mean, yes, Josh so we're looking at those again are the the whether it were hyper sides or sides that also happen to have had the experience with the Covid. You know are our COVID-19 solution with the mosaic I can tell you I went to visit a customer that that was in that.
This past week and there were super pleased with the with the progress that had been made with the advancements that you know are were achieved and not just on the performance of the of the the assays, but also on the potential of the workflow value that they see I mean, and I went to visit there was 1 customer who had.
You know laboratories on 3 different floors are well you know when you when you introduce the mosaic that's gonna be 2 mosaics on 1.1 room. So you know I think they start to believe and see the value of our solution and.
And frankly, the I can't tell you so many times, they're like okay.
When is this product coming you know can you can you come to market and you know because I think will create good value. So again.
And that's what we're focusing on whether it is through the evaluation with through the tender process through the hyper care sites.
Are all within the scope of our team.
Excellent and just less.
And last follow up on this topic.
About the Mosaiq.
Mosaiq placements for Covid testing thing about the clinical field trial sites in Europe, and thinking about the hyper care sites. I mean, we should think about 10 blood centers, where more and that have had direct experience with with mosaic the workflow and just hang on just the system.
Prior to this launch is that the right way to think about it.
Yeah, I would say I would say you know that that's a fair number I don't know Peter do you have any comments.
Save that's roughly right yes.
Net between the field trials hyper care and then we have yeah COVID-19 sites, yet at 215, and 10.10, 10 to 15 and I probably yeah.
Great. Thanks, Thanks, Joe and for taking the questions.
Thanks, Josh.
Yeah.
Our next question is on branch.
And with Jefferies. Please proceed.
Hey, Thanks, good morning.
And well since you started with us at the top and with respect to the Doctor Hoffman and hiring you've given mosaic is in late stage development right and about the commercialized and why is now the right time to bring someone of his expertise into the CTO role.
Is it really you know.
In terms of how youre thinking about the pipeline and molecular and there'll be and charge offs.
Just curious as to.
What exactly Yoplait and near term.
Well I think look on what where we're planning to definitely to make a big impact in terms of what we have in front of which which is their transfusion. He he has extensive experience and blood screening.
Before previously and and I think he's still can make a significant contribution to help accelerate the molecular piece of it and some of the characterization that we're doing there.
And then also on the serological side I think.
We are we have made great advancements, but at the same time, you know, bringing us a set of of eyes with a great experience to have seen the movie before and been involved in and launches and this nature also serves to.
To support the team and in different areas to ensure you know that we have the expertise internally to be able then to take us through the next level and then also in anticipation for us to look at you know what's beyond transfusion I mean, it's a bit early for us to to to a focus on that but I think it's important.
We are designing developing on test and assays that we have these are you know as part of our of our you know our.
Focus and so I think bringing Michael at this time, he is going to help and that in and this as well. So you know whether it is for the current menu or for future menu I think he brings a lot of that experience and maturity.
And our teams to deliver in a in a more effective structured way.
Got you okay.
Earlier, Jay Jay asked about B and B data for the IH menu I'm curious as to the timing of D&B data.
And that you plan to release for the expanded Sds to point O micro array will we see that.
Fire to you starting concurrent field studies in Europe, and the U S. Later this year.
Well I can't answer that now I think again.
To be honest I, even participated and the core team meetings myself and.
And where we're still in and conversations around that I think I I mean, I don't have a specific answer and certainly you know we'd be our intent to share and in the next weeks and months you know on the on the progress we've made on on this and in this area. So you know there's something that you know certainly we can we can we can consider but it's not.
Something that we've decided at this time, but I can understand you know how and sharing some of these data will you know will help on people understand the progress we've made and you know the effectiveness of our solution for sure.
Gotcha Okay.
Last 1 for Peter.
Could you just quantify the magnitude of net pricing and the Alba reagents business both for.
For last year from fiscal 'twenty, 1 and what's embedded in the guidance for 'twenty 2.
Net net pricing was your question Brandon on that.
Right.
Okay, Yeah well.
The pricing is really very different depending on the products right. So it is it's a pretty wide range now when it comes to the guidance for last year. There was you know and there is.
There's a a price decrease built in into the contract of 1 of our very large customers and that is baked into this guidance, which is why we anticipate to be the year over year growth for FY 'twenty 2.
To be a little lower than what we saw and maybe in the previous years and so it's not that that's probably keep on kind of your question and and giving given the and that is average pricing is difficult because it's a broad range depending on the product.
Got you great. Thank you.
Yeah.
A question and answer session I would like to turn on.
The conference back over to management for closing remarks.
Okay.
Well I want to thank everyone for joining us today on this call and we look forward to updating you on the progress on the next quarterly earning call I really appreciate the questions and the open dialogue and again, we look forward to speaking to you soon and so have a nice day and thank you.
Thank you. This does conclude today's conference you may disconnect your lines at this time and thank.
And your participation.
Okay.
Yeah.
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