Q3 2021 ADMA Biologics Inc Earnings Call
Good afternoon, and welcome to the asthma Biologics third quarter 2021 financial results and corporate update conference call on Wednesday November 10th 2021 at this time all participants are in a listen only mode there'll be a question and answer session to Paula.
Please be advised that this call is being recorded at the company's request and will be available on the Companys website approximately two hours following the end of the call.
At this time I would like to introduce Skyler Brown director of Investor Relations and corporate strategy and asthma Biologics. Please go ahead.
Welcome everyone and thank you for joining us this afternoon to discuss asthma biologics financial results for the third quarter of 2021, and recent corporate updates I'm joined today by Adam Grossman, President and Chief Executive Officer.
And Brian Lenz Executive Vice President and Chief Financial Officer during today's call Adam will provide some introductory comments and provide an update on corporate progress and then Brian will provide an overview of the company's third quarter 2021 financial results.
Finally, Adam will then provide some brief summary remarks before opening the call up for questions earlier today, we issued a press release detailing the third quarter of 2021 financial results and summarize certain third quarter achievements in recent corporate updates. The release is available on our website at www dot.
I had my biologics dot com before we begin our formal comments I'll remind you that we will be making forward looking assertions during today's call that represent the company's intentions expectations or beliefs concerning future events, which constitute forward looking statements for the purposes of the safe Harbor provisions under the private Securities Litigation Reform.
Act of 1995.
All forward looking statements are subject to factors risks and uncertainties such as those detailed in today's press release announcing this call and in our filings with the SEC, which may cause actual results to differ materially from the results expressed or implied by such statements. In addition, any forward looking statements.
Represent our views only as of the date of this call and should not be relied upon as representing our views as of any subsequent date, we specifically disclaim any obligations to update any such statements except as required by the federal Securities laws. We refer you to the disclosure notice section in our earnings release, we issued today.
And the risk factors section of our 2020.
Port on Form 10-K, and our quarterly report on Form 10-Q for the third quarter ended September 32021 for a discussion of important factors that could cause actual results to differ materially from these forward looking statements with that I'd like to now turn the call over to Adam Grossman Adam.
Thank you Skyler and good afternoon, everyone and thank you for joining us on today's call.
We hope you remain healthy and safe.
Third quarter 2021 marks another transformational period for asthma, biologics and establish a new baseline from which the company expects continued growth and value creation.
During the quarter, we grew revenues by more than 100% year over year $27 million.
Even further we realized a key inflection point for our business as we generated positive gross profit for the first time in our company's history.
Looking to the remainder of 2021 and beyond we anticipate gross profits, increasing and net losses narrowing as cost and operating efficiencies begin to materialize as a result of receiving FDA approvals for both the expanded 4400 meter we have again production scale.
Our ace epic fill finished machine and its related processes.
The multiyear remediation efforts and investments into the Boca Raton manufacturing facility.
Coupled with our bio centers plasma collection business unit are now beginning to yield tailwind for our operating results.
Which we anticipate will improve at an accelerating pace in the periods ahead.
Our organization.
Through its operational execution has clearly demonstrated strength and resilience and.
And we believe is well positioned to meet or exceed all of our financial and operating targets and unlock value for stockholders.
During the quarter we.
We took measures to address the long standing financing overhang that has historically weighed on adamos valuation.
In October we significantly strengthened our cash position with the successful closing of an underwritten public equity offering.
57 $5 million in gross proceeds.
When taken into consideration with our active engagement with prospective debt lenders. We believe there is potential to substantially fully fund our business for value creation and profitability potentially no later than the first quarter of 2024.
Turning to Adam a bio centers.
The segment continues to excel and we believe is on track to have 10 or more facilities.
The approved by year end 2023.
At this level, we will be well positioned to ensure continuity of commercial drug product supply for the company's immune globulin portfolio.
With the rapid expansion of our plasma collection Center network. In addition to the yield enhancements. We're currently realizing from the implementation of human genetics persona technology.
We believe the company will be well enabled to establish sourced plasma supply self sufficiency in the coming years at a rapid pace.
From an asset value perspective.
<unk> a fully licensed plasma collection centers continues to appreciate with recent acquisitions.
Industry demand for finished goods continues to outpace raw material supply.
Adam is growing inventories of approximately $114 million.
At the end of the third quarter further validates the companys ability to achieve near term and longer term revenue growth targets.
The commercial regulatory and operational milestones achieved during 2021 firmly established as a reliable vertically integrated cgmp compliant manufacturer capable of successfully competing in the robust U S immune globulin market.
A market, which is anticipated to exceed $17 billion in annual sales by 2027.
Although we continue to reiterate all previously communicated strategic and financial objectives. We.
We do note the potential for upside to current revenue and profitability targets as a result of the FDA approval of our in house still finished production operations.
We believe that the majority of substantial capital investments into our infrastructure are now behind us.
The profitability is well defined and rapidly approaching.
Looking forward <unk> anticipates continued commercial execution and remains committed to unlocking the yet to be realized fair value that our asset base now commands.
These accomplishments could not have been possible without the dedication and focus of adding the staff leadership and advisors.
We commend the entire team for their extraordinary efforts focused on improving health care for U S patients, who we know are counting on us.
With that said I'd now like to turn the call over to Brian for a review of the third quarter 2021 financials.
Thank you Adam.
Since we issued a press release earlier today outlining our third quarter 2021 financial results I'll just review some of the highlights.
For the third quarter of 2021, total revenues were $27 million compared to $10 $3 million for the quarter ended September 32020.
Representing an increase of approximately $10 $4 million or excuse me 101%.
The revenue growth for the quarter ended September 32021, compared to the quarter ended September 32020.
It was favorably impacted by the continued increase in commercial rollout of Atlas I G product portfolio and sale of intermediate fractions.
We are extremely pleased and encouraged to report that for the first time in our company's history Adama generated positive gross profit during the third quarter of 2021.
This key financial milestone was primarily attributable to the favorable product mix achieved during the quarter, where we sold more of our hyper immune products compared to the previous quarter's results.
Our hyper immune immune globulin products have a higher margin than our standard immune globulin product and this coupled with a portion of sales from our conformance batches are the main drivers for this quarter excellent results.
Importantly, we expect the underlying gross profit to continue to grow in the coming quarters as efficiencies kick in from the FDA approvals received for both the 4400 liter expanded production scale as well as our in house fill finish capabilities.
As Adam mentioned earlier Atmos significantly strengthened its balance sheet during the third quarter and subsequent periods.
At September 32021, admin had cash and cash equivalents of $34 $4 million in accounts receivable of $24 million.
Subsequent to the end of the third quarter on October 25th 2021, the company closed an underwritten public offering whereby the company received gross proceeds of $57 $5 million amounting to net proceeds after deducting underwriting discounts and expenses associated with the offering of approximately 50.
$3 $9 million.
Admin and Additionally grew its total asset value to a quarter end balance of $238 $6 million, which includes $114 million in inventories.
<unk> expects the robust inventories, which are recorded at the add much cost to support an annualized fourth quarter 2021 revenue run rate of approximately $100 million or more and anticipated continued quarter over quarter growth thereafter.
This inventory balance consists of raw materials, including source plasma and other materials expect it to be used in production as well as work in process and finished goods inventories comprised of our commercial products and intermediate fractions.
In the periods ahead, Adnan anticipates continuing to purchase raw materials, while also growing our internal plasma collection Center network building work in process inventories and ultimately finished goods inventories.
Given the reported ongoing industry plasma collection constraints, we intend to retain a portion of our growing inventories as safety stock, which we believe will help solidify our emerging position as a reliable supplier to our customers distribution partners and prescribers over the coming quarters, whereby we have the control.
And abilities to ensure the continuity of product supply to the market.
The consolidated net loss was $17 $7 million for the three months ended September 30 of 2021 as compared to $16 $9 million for the three months ended September 32020.
The zero point $8 million increase in net loss was primarily attributed to plasma center expansion expenses and the increase in interest expense.
In closing we are very encouraged by generating gross profit for the first time, our continued top line revenue growth as well as being on track with our plasma center expansion.
We are well positioned across all business segments to deliver on our previously reported financial and operating targets.
With that I will now turn the call back over to Adam for closing remarks.
Thank you Brian.
The totality of our 2021 accomplishments realized across business segments positioned to add Mike as a turnkey end to end manufacturer and marketer and a robust and expanding U S immune globulin market.
As previously mentioned, we comprehensively reiterate all previously provided financial targets, including our expectation to meet or exceed an approximate $100 million annualized revenue run rate or more in the fourth quarter of 2021.
The pathway to durable and significant cash flows is coming into focus and.
And we believe it is to a large extent derisked due to the 2021 FDA approvals received and supply chain robustness accomplishments realized during the year.
And the continued pace of external challenges from COVID-19, and the related.
Thanks.
Admin and its stellar team of dedicated individuals continues to achieve and deliver for the patients who rely on our products for survival and then improved quality of life.
As we have stated in various public forums throughout 2021.
We as a management team and board are highly committed to creating and maximizing value for our stockholders.
In keeping with this unwavering commitment.
We have formally engaged Morgan Stanley to assist us with optimizing the stockholder value.
We look forward to the ongoing evaluation of alternative and strategic business opportunities.
With Morgan Stanley as our advisor and we will we will report back appropriate information as required.
Further during the quarter, we took measures to strengthen our board of directors with the recent appointment of Dr. Young Kwon do.
But we believe will help us successfully navigate the contours of the commercial immune globulin landscape and.
And effectively evaluate strategic and alternative business opportunity.
Young brings a unique perspective, and a proven track record of creating value in other public biotech companies.
MS Board and.
And we look forward to our continue operating successes.
With added insight.
The future has never been brighter for the company and we believe as well as the stockholders and our courageous and dedicated staff.
The intrinsic value of Atmos asset base continues to rapidly depreciate.
As a result of the year to date milestones achieved.
And we look forward to a successful conclusion to 2021.
In closing I'd like to thank you our stockholders for your continued support.
Is your investment in that and that helps to advance our mission to save lives and make high quality safe and efficacious products that help our friends families and neighbors. Please.
Please donate plasma and help save lives.
And with that we'd now like to open up the call for your questions.
<unk>.
Thank you.
Today's question and answer session will be conducted electronically.
To ask a question you will need to press Star then one on your telephone to withdraw your question. Please press the pound key well pause just a moment to assemble the roster.
Our first question comes from the line of Kristen <unk> with Cantor Fitzgerald. Your line is now open.
Hi, everyone. Thanks for taking the questions and congrats on a good revenue quarter in achieving this positive gross profit.
So it looks like since last quarter you added another plasma collection facility under your umbrella. So maybe based off of the centers you have up and running now in addition to those with FDA approval well criteria has gone into finding and setting up the new locations for these centers to best maximize the value.
For you and with the guidance of having 10 or more centers, what specifically will be the drivers in deciding.
It's typically how many beyond that tango.
Yes.
Hey, Kristen thanks, so much for the question and.
Maybe I'll just start out.
By saying that we're really proud of.
Our bio centers team.
We've expanded dramatically over the course of 2020 and in 2021.
We've been in the plasma collection business. Our first center was approved Brian Correct me, if I'm wrong 2020, 'twenty 11, excuse me correct. So our first center was approved in 2011. So this is not something new for US we've been doing it for a long long time, a lot longer than you've been making these products. So we certainly have a secret sauce.
As to how we look at positioning.
Positioning these centers across the country.
With respect to.
How much political we need.
Think that you look at the capacity of our facility.
Earlier this year, we received approval for the 4400 leader bid.
<unk> again.
Plasma pool scale increase.
The total capacity of our plant.
Is now approximately 600000 leaders a plasma annually. So typical plasma center, we've always said publicly pre COVID-19 levels somewhere between 40 to 40 to 50, maybe even 60000 leaders of our plasma that you can collect and.
As far as the comments that I've made and Brian made during during the prepared remarks, we're seeing a dramatic improvement.
In donor numbers as well as yield with the implementation of the new Helionetics persona technology, we're seeing increases approaching 10% or even more broad.
Brian I don't know if there's some stuff that you'd like sure there, but hopefully.
Hopefully that answers absolutely most of it.
Absolutely. So we look at the landscape, but some of our competitor plasma centers and we certainly want to be a positive contribution to the local economy.
Last year, we had two centers that were collecting plasma. We currently have five centers that are collecting plasma nine under a corporate umbrella, which really sets. The stage to have 10, FTA approved plasma collection centers by year end 2023, and that translates into self sufficiency to fill our plant our 400.
As a leader now 600000 liter plant with our own internal collections. So we're very pleased with the exponential growth over this over this year, we're expecting to have some additional filings BLA filings towards the back half of this year and then subsequent approvals as we move into 2022.
Okay. Thank you for that and I wanted to ask two questions specifically related to trends observed during the pandemic. So one of your peers. For example, recently hosted an R&D day I noted that their fiscal year had an increased sales for the IV business. Despite the pandemic although.
Of course, noting the expected growth would have been much higher if it wasn't for these headwinds. So how do you think about that space right now with the pandemic and then also what are the trends you're observing in the plasma donation centers I understand theres still social distancing measures in place but has this improved.
At all since we were kind of in the core of the pandemic.
Maybe I'll just start out by saying that we.
We certainly are experiencing growth throughout the COVID-19 pandemic as you see we've been really.
Focus very very strongly on adding new customers or.
Our competitors continue.
To say that they're not taking on new customers Christian and.
We have more product than.
Than ever before if you look at the inventory number I think we ended the quarter around $114 million of inventory the inventory is growing.
We typically have said, Brian correct me, if I'm wrong, a third a third a third so.
Raw material work in process finished goods. So we've got the material there to support its continued growth and as our competitors growth is slowing because they're having.
<unk> is collecting as much plasma as they have historically.
Atmos plasma supply continues to remain intact.
As you know is.
One of our main third party suppliers they continue to supply us.
Every quarter as contractually agreed so we appreciate cripples doing that for us and.
Keeping div again and incentives.
On the market and growing for for <unk>.
Prescribers in our patients with respect to the plasma collections, we we've always said throughout the pandemic and I know.
Thank you or joining us.
This part of the story here, but we we've experienced limited.
From the COVID-19 pandemic and.
We have not had some of the collection downturns that some of the larger fractionator and folks with a more wider if you will geographic footprint kind of experience.
We have no border exposure.
So a number of our.
Competitors have a number of centers within 50 to 70 miles or so of the U S. Mexico border and Theres a lot of constraints going on with some changing rules and.
Policies that are starting to be enforced there. So we have no exposure there and again, our plasma supply continues to remain constant and we're putting plasma in the tanks that schedule and that's coming off the line and.
We're here to be a reliable supplier and continue to grow our our customer base.
Quarter over quarter.
Okay. Thanks, and last question for me is with the recent <unk> approval could you discuss the type of companies and our opportunities for third party utilization here I guess, specifically what might you be looking at and as we think about the long term plan of the company.
Do you see any potential of adding more than <unk> done.
Down the line.
Great question.
Hopefully you guys can hear me I got a text message that I was breaking up so hopefully this is better.
Hum.
We've got an FDA approval to fill finish.
Pharmaceutical grade products Biologics pharmaceuticals vaccines.
Clinical and or commercial stage products. So.
We're open for business, we've got a fully.
G M P.
Compliant facility here and and <unk> is currently working out very very well for us. So again it can handle small volumes to large volume.
Batch sizes and we can fill.
Our own products, we fill in to amount to 50 ml vial sizes. So.
If you fit within that that criteria, it's a lot faster.
Process to get to clinical trials and or commercial stage the vein.
Interacts and the bio manufacturers.
Uh-huh make additional sizes, but we can pretty much do anything that any other asa pixel finished provider.
Can do so we're excited about the opportunity I mean, obviously the.
The primary use of the van Rx is too.
Improve our production cycle times enhanced yield.
And improve our ultimate gross margins.
That's that's the primary benefit and a driver.
Of the machine and the related processes for the business, but certainly even at our full capacity of five 600000 leaders processed annually there would still be some downtime on on the machine that would allow us the opportunity to fill for others.
It's a pretty pretty compact machine.
We have some space in the plant if the need arose kristen could be fits the more machines than sure. We certainly can but that's something that we would look at are well into the future.
Assuming that there is demand and potential.
The present time, you know most of our significant capital expenditures into the facility there.
They are behind us. So we're really laser focused on building up our commercial force penetrating with our our commercial drug products continuing to tell the story of our hyper immune <unk>.
Creating value for our stockholders so.
Less spending more selling.
Thank you.
Our next question comes from the line of Anthony Petrone with Jefferies. Your line is now open.
Thanks, <unk> and good afternoon, all I.
One just on the on the quarter and then one on the announcements a couple of weeks ago. So on the quarter certainly 27 ahead of us.
Our model just trying to get a sense of the mix between began and SNF and then specific to bid again just to give us a sense maybe of sort of what changed here in the third quarter.
Was it share gains in new infusion centers or was it just excess purchasing from existing sites and I'll have a follow up.
Sure. Thanks Anthony.
Historically, we said that our revenues are are typically you know.
90, 10, 80, 25th again for the hyper immune Uhm I think it's certainly closer this quarter on the.
880, 20 side, if you will and we see that as we grow into the future when when we look at some of our forecast models as we approach that 250 300 million dollar peak in 2024 that that we've talked about we think that as senator.
Really has an opportunity.
Grow even further.
So we're really proud of the work that we're doing send it is starting to to to take off and you know the the medical community is starting to open up and we're really able to get our dedicated commercial team in to see the trader. So I guess to answer the second part of your question, it's a little bit of it.
Everything I mean, we're opening up new specialty pharmacies, new ultimate site infusion centers, new physicians offices, uhm as as well as some new new distribution partner. So we're seeing it across the board you know the demand for I G continues to remain robust and strong the the the plasma collection down.
Turn is certainly causing difficulties for some of our competitors and you know I think that add my being commercial for the for the last 24 months or so we've really demonstrated to the customers entered the patience for that matter that where a reliable supplier and that the product is there when they need it. So we're really starting to pick up tracks.
<unk> I certainly don't want to say that you know, it's it's it's a lot easier when the customers are calling you, saying, they're not getting you know product day or product be in the same quantities that they were can we fill some of that gap certainly.
Makes it a lot easier for us, but you know I think the quality of the product speaks for itself I think the differentiation around <unk>.
<unk> and the engagement that we have with the prescribers is really starting to pay off and I'm very optimistic that this growth book will continue into the future.
Great and and the fog would be you know just you you sure reference that in your prepared remarks adamant in filings a couple of weeks ago with the pre announcement sort of referencing evaluating a variety of strategic alternatives and financing alternatives, maybe just a little bit on on time.
<unk> complexity of the alternatives, you're looking at and then.
Certainly on the debt side, specifically it sounds like that could be.
A a solution that again, you reference bridges the company to break even in 2024, so just a little bit of details on on those commentary and those disclosures. Thanks again, congrats on a good quarter <unk>.
Sure. Thank you so much Anthony and you know with.
<unk>.
To financing the company I mean, we're we're really looking at our budget going into next year very very differently.
We recently passed an F D. A inspection this past August listed on the F. D. A website I don't have a copy of the final report yet, but it's listed as a V. A I status. So our second compliance inspections since taking over this plant in June of 2017, and compliance and we're really looking at.
The investments that we've made are well behind us and we're looking differently about where we're going to be spending capital going forward. So we're taking a look at that budget. We're certainly tightening the belt as as you can see from from the quarter results and the investments that we've made a starting to pay off so with.
That said you know we we we are engaged with a number of a potential that lenders. We certainly think with the asset base on our balance sheet growing our inventory balance is growing as well as revenues growing in you know flipping with positive gross margin certainly makes all potential.
Lenders and investors. Please with the results, we do think that there's an opportunity to to.
Finance this company with Nondilutive means in order to maximize the equity value of the assets that we have an <unk>.
Underlying business opportunity. So you know I I'm not gonna comment specifically, but you know Morgan Stanley has been a great advisor to us over the years and you know I think the engagement of them illustrates our commitment to unlocking and seeking opportunities to maximize shareholder value. This last finance.
<unk>, Brian and I, along with number or board members, we invested in in the deal we are aligned with our shareholders and we're extremely pleased with the opportunities that we see.
In front of US I can tell you that we will we will.
Continue to remain compliant both on the F D. A regulatory side in in the S. E. C side. So as developments unfold, we will keep the street prized uhm as required but in the meantime.
It's a whole business, all the time, making product selling product and driving this company to profitability.
Great. Thank you.
And last question will come from the line of Elliot Wilbur with Raymond James Your line is now open.
Thanks, Good afternoon, maybe just a couple from me.
May here Uhm first for Brian and just with respect to outlook for gross margin trends and ability to sort of maintain positive.
Margaret performance going forward is it fair to assume at this point that if revenue simply grow sequentially that you'll be able to continue to generate positive gross margin just trying to get a sense of how important or what the impact was it a conformance batches in the quarter.
Sure. Thank you alley, so with this quarter being the first time, we reported gross profits as you can imagine we're extremely pleased that doesn't mean, we're stopping here.
We have we believe that significant cost benefits are gonna continue to be with derived and even more so as we roll out. The 4400 batches that we are producing now we started producing much we received that da approval in the middle of this year and then the approval of our fell finish machine additional.
Gross margin benefits will be received so we think there'll be additional value to be unlocked. The gross margins will accelerate until the first quarter of 2022 in the second quarter of 22 and and beyond So we're certainly very extremely pleased for the first quarter Uhm outlook as we move forward into 2022.
Okay, and then with respect to your commentary around safety stock levels have your expectations change in terms of.
What you're going to keep in terms of safety spot just given some of the dynamics in the marketplace.
I I think our safety stock levels are remaining to be the same we're looking to continue to build the raw ice you'll see in the 10-Q, what you'll be published momentarily today total inventories were $114 million raw materials increased to just about 38 million.
Work in process significantly increase the $57 million.
And finished goods remained relatively flat from the end of the year 2020 to the third quarter here of 2021 at $19 million. Most importantly here you see working process, increasing significantly and what does that translate to that translates into higher finished goods that are gonna be available in the fourth quarter of 21, and then the second half of 2022.
To to really propel us into that hundred million dollar annualized revenue run rate as we access exit this year.
Mhm.
Okay, and then maybe just one final question or or set of questions. Obviously, a lot of commentary from reporting companies regarding.
Increase logistics kosh supply chain issues and like maybe just I know, we talked about this a little bit last quarter, but maybe just talk about some of the dynamics of challenges you may face or may be facing with respect to logistics and supply chain cost and you'll also want to hit on the the notion.
Increased input costs, I guess, specifically with respect to the cost of collection volumes I know Takeda recently highlighted that it's actually curtailing collections because of increased costs. Obviously, a lot of that ZIP code dependent but just curious on on what you're seeing an AD the bio centers in terms of collection costs.
Maybe I could fill it started out that Elliot <unk>.
I just wanted to say I think it was the second quarter call that I mentioned, you know getting truck drivers was becoming a problem for us and.
Some people said that was an interesting comment but.
We're very straight Elliott retail you like it is all the time and.
Maybe you heard it here first right on the on the biologics call. We predicted these supply chain headaches, but.
That's really all they are for US right now, they're just little inconveniences here and there, but we have a great team. We're certainly all working very hard to mitigate this we've got large inventories of a number of our raw materials testing reagents and single use disposable supplies that we use every.
Aware from the collection centres, all the way through fractionation purification and he'll finish so we've taken a number of steps to insure and mitigate that number one we can control cost for the foreseeable future by stocking. These these larger inventories and and and to where where.
We're keeping ourselves afloat and in business, because we're not waiting on.
Deliveries or you know things that are stuck in containers coming from overseas. So we're still experiencing truck driver delays and difficulties there I mean I've been known to approve a payment here and there I think Brian. Thank you for letting us do that for you know a.
A truck that maybe carrying some type of liquid that we need to put in put into the facility they'll they'll come a day early and we'll pay the driver to sleep on site over nice I mean little things here and there.
We're seeing you know we saw the news. This morning, just like everybody else with respect to the inflation numbers I mean, we haven't received price increase notices yet but we're.
We're certainly working this in and.
Earlier this year, we took some price increases on Nabi H B and you know I think that as we continue to move down the field.
Evaluate opportunities to potentially increased pricing for some of our.
Some of our other drugs that we have on the market, Brian sure you'd probably want to comment a little bit on.
Election costs and things of that nature.
Sure. So just before the collection cause I think that's very encouraging is the majority of the spend at the bulk of plant from the F. D. A remediation costs as well as our supply chain enhancements are well behind us as Ah.
As a result of the FDA approvals of the 4400 leader and that they'll finish capacity expansion. So those are significant costs are well behind us I think our costs are gonna be more predictive more controls going forward and you are correct Elliot. It's it is zip code dependent depending on where the plasma.
Center collections are plasma center collections are located compared to our competitors are are there some competitive pricing with regards to hire donor fees and incentive programs were running those we certainly feel very encouraged with the week over a week and month over month.
Uhm plasma uhm throughput form additional donor was coming through the centre. So certainly things are on the uptrend and again, we feel very encouraged going into the fourth quarter, especially until the first half of 2022 with all these.
Investments behind Us now.
And I'm, sorry, if I could ask one follow up question as well add me your commentary broke up a little bit earlier in response to some of your discussion around.
M S N as in in a little bit more favorable contribution in the overall revenue mix just wanted to get a little bit better perspective in terms of whether or not you felt that is driven just by overall strong demand for I V. I G therapies in general or do you think that's getting a boost more from sort of it.
The significant spike in or it should be.
Trends that we've seen over the past couple of months.
I think it could be.
One or both of those things, but I really think it's also something different Elliot I think that the message and the novelty around the patented methods that we used to identify the plasma donors formulate the plasma pool.
And standardized a unique antibody profile.
The product has is really taking hold with prescribers not all immune compromised patients suffer from the same underlying condition on all of them have the same risk factors and I think that COVID-19 and the severity of COVID-19 and different age groups and different lifestyle segments.
<unk> in different socio economic groups.
And you.
You know just people with different medical conditions has really opened the eyes of a number of treaters, who do prescribed by G and may not see these.
Super sick patients that are hospitalized at the academic.
So I I truly feel that you know we've invented and we produce a drug here that is unique and novel on the market, yes, it's an immune globulin.
Yes it.
Has an indication for the replacement of I G in patients with primary moral immune deficiency.
But it's manufactured using a special method of collecting plasma identifying which donors meet our criteria and it's N O R. B O E. The way that we make this product we must standardize the levels.
And use sufficient levels of antibodies targeted to RSV and the plasma pool and when you read about our patents in the publications you know.
The resulting product has statistically significant levels of antibodies to a panel of different respiratory viral pathogens.
So.
I I I think the stories there I think everything that we promised the street since.
We started this company, we're delivering on and I think that the results of this quarter, where we're really in the strongest position that we've ever been in and we've got a product here that I'm in the right patient, we're seeing great results and I think what you're also seeing Elliot is.
It's a word of mouth product and it's a product that no one should try it in one patient and you get good results.
You're using it in another patient and another patient and you're able to identify these patients easier.
So I.
I think that it's a it's a growth opportunity for us I think it's.
Nowhere near its peak potential and.
We're going to continue to spread the gospel out there and we're really proud of the work that are that are commercial field force is doing.
Our medical affairs team is doing and we.
We can't think the the medical community and the prescribers enough for taking a chance on the product but.
It speaks for itself the drug works patients feel better they do better their chronic and persistent infections seem to be improving and they're enjoying a better quality of life and when they're using igene an evidence base way you saw the data that we publish that.
Week at C. I S. I had a couple of the other medical conferences.
They're using the product in hospitalized patients as well.
With RSV and other respiratory viral infection. So we're proud of the drug where we are here to stay the drug is available.
And we're gonna continue to put more into the market quarter over quarter.
So I think that <unk> I.
I mean look certainly growth of overall I'd you use is good for all.
Globulin products, but.
I think of Sen is is unique and different I think that what we're doing here is where.
Facilitating switching for certain patients that are on routine I G therapy.
In the outpatient setting.
And I really believe that it's.
It's only the beginning so we're going to continue to champion. This forward. We are I founded this company to be an advocate for the Indian compromise for the patients that don't have a voice I think it's a it's a really.
I commend what all of our competitor companies do I mean, we're all working really hard here to keep <unk> on the market.
For all the patients who need it but for the.
Immune compromise that uhm don't always have the loudest voice, we're here for them and.
We like to think that it's a recurring opportunity for us and it's recurring business and we we really feel proud.
And good about the work that we're doing with the product so uhm.
It's a durable business. So I know that we use that word often but it's.
It's a durable business. These are patients who get product every three three to four weeks for the rest of their life.
If they switched to a senate for some period.
Time, we're certainly happy if.
If we can improve their quality of life and keep them out of the hospital.
I don't know if you guys have anything to add but uhm.
I Hope you can still hear me.
Yes.
Did we lose you Elliot.
Maybe maybe we lost Elliot.
Alright <unk> questions.
Questions in the queue.
There are no further questions, ladies and gentlemen, that's what I can say without question and answer portion of the call I'd like to turn the call back over to Adam now for additional closing remarks.
Thank you everybody sorry for some of the technical glitches during this call, but uhm certainly we're on the up and up again, great quarter to the asthma team.
Who is listening today, we couldn't.
We couldn't perform at this level would have your dedication and support so we.
We can menu for it to our stockholders, we truly appreciate you and your investment into the company, you're allowing us to do some great work save a lot of lives.
Thank you very much everyone, we're going to continue to deliver for Ya.
And on behalf of our board of Directors, Brian and I were gonna work to maximize value for our shareholders. Thanks.
Thanks, very much donate some plasma if you're out and about you're gonna help save lives and have a great evening. Thanks for your time.
Ladies and gentlemen, this does conclude today's conference call. We appreciate your participation you may now disconnect.
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