Q4 2021 Accelerate Diagnostics Inc Earnings Call

Good afternoon, and welcome to the accelerate diagnostics incorporated fourth quarter 2021 results conference call all participants will be in listen only mode.

After todays presentation, there will be a question and answer session.

Please note this event is being recorded.

I would now like to turn the conference over to Laura Pierson of accelerate diagnostics. Please go ahead.

Before we begin it is important to share that information presented during this call may contain forward looking statements within the meaning of section 27, a of the Securities Act of 1933 and section 21 E. Other Securities Exchange Act of $19 34.

Forward looking statements include projections statements about our future and those that are not historical facts. All forward looking statements that are made during this conference call are subject to risks uncertainties and other factors that could cause our actual results to differ materially.

Are discussed in greater detail in our annual report on Form 10-K for the year ended December 31st 2020, and other reports we filed with the SEC. Lastly, please note that today's press release contains full financial statements and a reconciliation of non-GAAP to GAAP financial measures.

It is my pleasure to now introduce the company's president and CEO Jack Phillips.

Thank you Laura good afternoon, everyone and welcome to our fourth quarter and full year 2021 earnings call on today's call. We will review, our fourth quarter and full year financial results and discuss our plans for 2022.

The addition of new contracts clinically live customers and new prospects to our sales funnel made the fourth quarter, our most commercially productive quarter of the year. However, pandemic related issues led to a lower rate of new customer contracts than anticipated. Despite this headwind recurring revenue still grew by 24.

4% for the year.

In R&D, we delivered on all of our product development milestones for the quarter and year. This included the midyear launch of a new assay test kit for our Pheno platform. We also completed development of the art system, our workflow aid for multi identification testing and we advanced the development.

A bit of our next generation platform Pheno too.

Later in the call I will elaborate on how these products will improve our rate of growth and profitability as a part of our overall product strategy.

Before providing additional details on our operational results for 2021, and our plans for 2022 I would like to hand, it over to Steve to review, our fourth quarter and full year financial results Steve.

Thank you Jack and good afternoon, everyone.

Net sales were $3 3 million in the fourth quarter and $11 $8 million for the year. This compares to $3 1 million and $11 $2 million for the same periods in 2020.

This year over year sales increase was driven by 24% growth in recurring revenues, partially offset by a decline in onetime capital revenue due to a large capital deal booked in 2020, which did not repeat in 2021.

Cost of goods sold excluding noncash onetime charges were $2 $2 million in the fourth quarter and $7 $7 million for the year, resulting in gross margins of 35% for both the quarter and the full year. This.

This compares to cost of goods sold of $2 million and $6 7 million or.

Our gross margins of 37% and 40% respectively.

The decline in gross margins year over year, primarily resulted from ongoing pandemic related impacts to manufacturing costs.

Selling general and administrative expenses were $11 $5 million for the fourth quarter and $49 $2 million for the year. This compares to $11 $2 million and $46 9 million during the same period in 2020.

When excluding noncash stock based compensation expense SG&A cost decreased by over $3 million from the prior year due to lower selling costs and other efficiencies.

Research and development costs were $4 6 million for the fourth quarter and $21 $9 million for the year.

This compares to $5 $1 million and $21 $3 million during the same periods in 2020.

This slight increase was the result of additional investment to conclude our development of our arc platform and advance our Pheno two development program.

On a non-GAAP basis net losses for the fourth quarter and the year after excluding the impact of noncash stock based compensation expense and one time charges were $15 3 million and $51 $1 million respectively.

Net cash used excluding financing was $13 $3 million for the quarter and $47 $2 million for the year.

Our focus in 2021 was improving the health of our balance sheet.

During the year, we reduced our convertible debt by approximately a third and raised over $40 million in new financing.

During the fourth quarter, we executed a $10 million drawn down on our ATM facility.

With these funds we ended 2021 with approximately $64 million in cash available to fund ongoing operations.

We believe that these bonds and other plans will allow us to achieve our near term objectives.

I will now hand, it back to Jack to further review, our fourth quarter and full year 2021 results and plans for 2022 in greater detail Jack.

Jack.

Thanks, Steve Despite the near term focus on Covid sepsis continues to be a major health care concern, causing significant death and morbidity with a cost burden to the health system of over $60 billion annually with this incredible unmet medical need there is no question that the 300.

I'd <unk> test market will convert to rapid testing is just a question of having the right product strategy in time, and we're convinced we have the right product strategy.

First we will continue to penetrate the market with our integrated Pheno rapid <unk> solution and the recently launched <unk> test kit.

Second we will enter the untapped and sizeable market for rapid multi with arc and automated sample preparation system.

And third we will launch the Pheno two system, which will address the entire market for acute bacterial infections beyond positive blood cultures.

In 2021, we made considerable progress in each of these areas and in 2022, we will continue to focus on achieving commercial and development milestones to advance this three pronged product strategy.

First on Pheno in 2021, the number of Pheno systems running our integrated <unk> tests clinically increased by 17%, which drove an increase in recurring revenues globally up 24%. This growth represents progress in our mission to convert the 300.

Million.

I'd and AST test market to rapid testing.

The benefits of rapid I'd and AST testing are now well established dozens of studies, including our recently completed registry study.

Over 100, pheno customers, including thought leaders like Mayo clinic demonstrate broad benefits derived from improvements in time to optimal antibiotic therapy.

In the U S. We contracted a total of 16 pheno instruments with new customers in the fourth quarter. The fourth wave of the pandemic broad increases in hospitalization in many parts of the country and high rates of employee turnover and others.

These factors limited our ability to close additional new business in the quarter. However, we continue to secure our customer base through long term volume committed contracts.

We also brought 13 instruments live in the U S. During the quarter. This resulted in a U S revenue generating installed base of 313 instruments and a backlog of 81 instruments pending implementation.

In addition, our implementation teams successfully upgraded the majority of our live customers to our latest software version, which improves the performance and functionality of the Pheno system.

Finally in the U S. We began commercialization of our new Pheno ASE test kit for use on the Pheno system.

We believe this test kit is a preferred option for customers, who have an existing rapid identification system and want to leverage pheno to deliver a full rapid <unk> solution. We anticipate this new way to deliver rapid assay will be a meaningful component of our business going forward.

In EMEA, we nearly doubled revenues and annuity per customer in 2021. This was a result of our strategy to focus on key geographies and attaining a minimum annuity per customer in 2022, EMEA intends to capitalize on interest in the combined use of Pheno.

<unk>.

And Pheno ASE test kits at large regional hospitals, which typically run one shift.

Having both kits available is ideal for these customers who will use <unk> during the day when they have staffing than us pheno asps for off shift coverage.

Our second area of focus is capitalizing on the new market segment in microbiology rapid multi workflow.

A large segment of the market multi is the preferred solution for bacterial identification due to its comprehensive library of organisms accuracy and low cost to operate.

57% of our prospective customers have multi devices and this number is growing a smaller lower cost multi systems come to market.

Multi has one major drawback the 18 to 24 hours it takes to deliver an <unk> result.

The art system automates, the front end process to deliver rapid mall the I'd.

The run time is about an hour, which is a 90% reduction in time to result, compared to the standard of care.

Reported billing and accuracy meet expectations for both Gram positive and Gram negative organisms given the solid performance we remain on track to launch our <unk> in Q1 of this year.

From a business perspective, our creates an entirely new razor razorblade revenue stream for accelerate the acquisition model will be a traditional capital and price per test model. This exciting market opportunity will also greatly benefit our ability to bundle fino with ASE test kits.

<unk>.

Considering there are over 10 million positive blood culture, I'd tests performed globally.

At a targeted average selling price of $30, we're actually creating a new $300 million market opportunity with arc plus the Pheno ASE test a new end to end rapid <unk> workflow is a great option for those wanting to utilize multi for rapid I'd.

Arc is receiving enthusiastic interest in the funnel growth in the fourth quarter was substantial similar levels of interest or being seen in EMEA, where the product will launch as a CE IBD device.

Our new platform Pheno two positions us to enter the entire rapid <unk> space.

Pheno two is designed to give customers the ability to run both positive blood cultures and all other isolates from any sample type on a single platform today.

Today's microbiology lab relies principally on culture plates and decades old automation.

The old platforms have complex workflows are labor intensive and produce slow results. We are confident pheno too will take microbiology automation to another level.

<unk> is designed for random access in a variety of organisms across various sample types can be run simultaneously.

Given the ever evolving nature of bacteria and antibiotic resistance, we have designed pheno too to look deeper than ever before and just live cell biology.

Pheno two extends our deep knowledge and imaging to deliver solid state <unk> cell imaging with our technology, we see anti microbial response more quickly and more completely than other existing technologies. This will translate in best in class speed and accuracy across a broad.

Rod Asps menu and a myriad of sample types in the long term. We believe this technology will have applications ranging from pharma drug development to real time reporting of emerging resistance trends.

We continue to make very good progress with Pheno too in 2022, we will have our final instrument design completed and assay development will start we anticipate conducting clinical trials in 2023.

And are targeting a U S launch in early 2024 with Pheno too we will have a solution for the entire ASP market in a single integrated platform for accelerate Pheno too will bring higher instrument annuities at a higher gross margin.

In summary, we made substantial progress on our goals for 2021, we grew our market share was 17% more pheno instruments running patient samples than when we started the year, we launched Pheno Asps, which provides flexible options for using Pheno and grew our funnel of.

Prospective customers as a result, we completed development of arc and have begun commercializing this product in anticipation of a successful launch in the coming months Lastly, we completed feasibility for pheno too across multiple sample types.

In 2022, we anticipate revenues between 13 and $14 million, we are optimistic with a broader and more flexible product offering and more normalized hospital access we can significantly improve our rate of contracting. Additionally, we have several meaningful R&D milestones.

In 2022, which can dramatically enhance our future success.

And finally, we will continue to carefully manage our resources to execute on our strategy.

In closing I would like to leave you with this.

New study recently published in the last set from the Gates Foundation.

That antibiotic resistance bacterial infections played a role in approximately 5 million deaths in 2019.

Experts agree that stemming overuse of antibiotics through rapid testing is one of our first lines of defense against this worsening health care crisis, and accelerate is best positioned and most committed to delivering this much needed change.

I would now be happy to answer questions from our analyst should others on the call have questions not addressed we would welcome you to send these questions or request for a follow up meeting to investors at <unk> Dx Dot com.

We will now begin the question and answer session and the first question comes from Brian Weinstein with William Blair. Please go ahead.

Hey, guys.

Thanks for taking the question Hey, Brian .

Hi, Brian good afternoon.

Okay.

So just starting out on the on the guidance if we can.

Steve can you give any kind of insight into kind of what's in the guide.

Maybe if I kind of product or by geography, just to get get us a little bit more.

Insight into kind of what's.

The expectation for the year and making up at 13% to 14 between.

Arc, which is I guess watching here in the next few days it sounds like.

The core ASP the ASP only.

Geography.

Yeah, I mean, most of our revenues and growth implicit in that guidance is derived from our existing book of business.

And and a significant portion of our backlog going live so that represents a handful of ASC customers that we sit here today, but mostly <unk> business.

What we would expect is that our number of ASP.

Only customers to be increasing.

From a contracting perspective during the year.

And also on your point on arc, we do expect <unk> to launch here.

Within the next month or so and do expect that arc is the type of sale that we could get capital revenue and we do have some modest capital revenue in the budget in the current year from arc.

Final piece again on the capital side of the equation as we continue to.

Rehab customers for extended contract terms and often when they've had an opportunity to embed the system in their processes and we approach them for new Theres, an opportunity to up sell them on capital as part of that committed contract.

So those are the those are the major components of the breakdown between the 13 and 14.

Uh-huh and then.

What are you assuming as far as access goes for driving new placements you talked about the funnel.

Many times on the call. So maybe two questions embedded there first can you give me a little bit more information about what that funnel looks like I think.

You said that it was as strong as it's ever been or something like that and then what are you assuming as far as kind of your sales force's ability to get back to kind of normal access are you expecting kind of more traditional access or do you still expect that to be somewhat impaired through the year.

Yes, So hi, Brian This is Jack I'll take that one so a.

A couple of things one on the access piece I would say again. This is absolutely fluid based on the rise and fall of hospitalizations due to due to COVID-19 . The good news right now is access over the past three weeks has been continually improving.

We're getting many more meetings than we had before face to face meetings zoom meetings as well, but nonetheless a lot of.

Very meaningful meaning meetings going forward and.

We expect that to continue I mean, we're optimistic about the.

The rest of the year and it's definitely trending now in the right direction clearly with omicron that was.

We took a step back there and with Delta as well access.

Went up and down through that period, but it's now trending in a very good direction and as a result now getting to the second.

Point of your question as a result.

What we're seeing is.

Many more opportunities are being restarted. So these are opportunities that we've already had that were placed on hold that were revisiting and then.

I would say the funnel is is broken down into three very important areas. The three areas that we talked about you know on a.

<unk> basis, one is I D. A S T and our core complete integrated <unk> solution. The second one is on.

A S T configuration model and then the third is.

Really a combination of arc.

Getting a lot of good early interest in arc.

We are on track.

To launch this month.

And there's a lot of good interest there and the funnels growing there in the funnel is growing with arc as well as customers that are interested in arc N. A S. T configuration together. So it's one fully integrated solution using rapid mall D. And then the Pheno for susceptibility testing.

Got it and then last one from me and thank you for those answers, but last one for me is on the cash use for the year.

It appears that that would still be kind of fully funding your opportunities I just want to make sure that there is as you guys are being cognizant of your cash position that there's nothing that has sort of fallen by the wayside in terms of things that you would like to be doing in 2022, if not for a bit of a tighter cash situation than any other car.

Rents that you wanted to kind of make about.

Our opportunities for financing or anything else related to the cash situation. Thanks guys.

Yes, thanks for the question Brian .

As you know, we're guiding to $45 to $55 million in 2022 and.

The growth that we have over where we landed in 'twenty one is directly related to those product launches.

The work we've done over the past few years to tightened our spend and to focus on are our areas of investment.

<unk> is what allows us to make meaningful progress in these key new product areas without dramatically increasing our overall rate of burn.

So where we sit here, we feel pretty good about.

The money, we have relative to our burn for the current year and will continue to evaluate our opportunities too.

Bringing on new cash when it makes sense to do so.

And so that's kind of the picture there.

Okay. Thanks, guys.

The next question excuse me. The next question is from Tycho Peterson with J P. Morgan. Please go ahead.

Hi, guys. This is Casey on for Tycho, maybe just to follow up on the 2020 guidance questions.

Can you talk about what's embedded in there for an ex U S and how should we think about that business now kind of post the restructuring last year.

Yes, any color on that thanks.

Yes, we were as we mentioned we are very pleased to see the growth in EMEA and.

Strong growth in the middle East through our EMEA entity.

And I think we will see continued growth I mean, right now the breakdown is roughly $2 million of the $12 million in EMEA. So it's not a significant portion of our business, but we welcome the growth and we expect continued growth from that geography, Yeah, I would just say Casey Jack here.

Yeah, I mean, we're we're.

The restructuring that we did last year was was turned out to be very effective I mean, we got focus the reason for that restructure was twofold. One is to focus our efforts in places where we knew we could win and secondly to manage to manage our spend in.

It's been very effective we've done very well in the markets that we focused in.

Not only in Europe , but also we've had.

Several good major wins and in the middle Eastern countries as well that we've been talking about.

Right.

Got you that's helpful.

And then just thinking about the.

Product and the S. T. Standalone you know as we think about those products several years out how should we think about the ramp.

And I'm curious as to why you know neither are really embedded into the 2022 guidance just does.

Is that like a level of conservatism or are you kind of like soft launching these products any sort of color there.

Yes so.

So I mean arc is going to be a.

It's going to be a very very meaningful product for us.

As we go out I mean, we look at the market I mean, it's about a $300 million market. When you look at <unk>.

$30 a test.

10 million 10 million tests size.

Be very meaningful.

Being conservative about just the fact that we are launching is in our U O. Initially.

We anticipate to submit for IV.

IBD this year.

But with the FDA, we're not sure when we're going to get approval for that and then also as we come out of the pandemic I've mentioned, we're getting a lot more activity.

I want to give us a chance to build the funnel there which is building nicely.

And that's why there's not a lot built into that and then on the ASP side on the kits on the ASP configuration side, there's definitely part of our guidance includes that.

And that is partly included in our in our.

And our overall revenues for 2022 for sure.

Casey do you have another question.

No that's it thank you.

Okay. Thank you. The next question is from Mark Massaro with BTG. Please go ahead.

Hey, guys. Thank you very much for the questions.

Yeah, I guess just to sort of clarify I think I heard you guys say that.

That arc is positioned to launch this month, but I also think I heard you say is positioned to launch in the coming months, So I guess.

Curious if there is a delay there if not.

Do you have inventory built and should we expect this product to start shipping in March.

Yes, so just to clarify we are on track to sorry, if we misspoke there we're on track to launch this month.

And we.

I do practically every day do a portfolio update on arc and we're on track to launch this month.

And then the second part of your question is as we are.

Actively building instrumentation and at launch we will have available instruments to ship.

Okay perfect.

I'm curious if you can comment on.

You know maybe the funnel for arc and then.

Thank you for the reminder, about the $30 per test on arc I guess can you remind us what the capital maybe the list price is and are you.

Potentially willing to go into a reagent rental on that or are you really going to pursue a capital sale upfront.

Sure average selling price on the.

Arc platform will be about $30000.

As I as I indicated the average selling price on the.

The actual kit will be about $30.

The answer to your other question there Mark is yes, we will entertain.

A reagent rental model.

For sure I mean, that's obviously important model for those customers that want to adopt this that don't have capital budgeted and that will also help with our ramp up as well so customers don't have.

You know things things budgeted.

And then.

I would just again reiterate that the funnel is growing nicely there theres a lot of interest.

There's a lot of interest frankly with subsea type of customers.

That already have a type of a rapid multi workflow, but it's.

Somewhat cumbersome and it takes a lot of hands on time.

Arc as we've talked about is totally automates the process.

For the front end preparation of multi and so theres a lot of interest there and again. This is a great example, where.

Through Covid, there's been a lot of open you know theres been a lot of openings that have happened in microbiology in other parts of the laboratory with people, leaving and so.

Our resources are at a premium and the arc the Ark value proposition really is well suited to address those those challenges with regard to people in the labs and so forth because we automate a very important process there.

Excellent.

That's helpful and I guess.

Obviously pheno.

<unk> T is FDA cleared.

Other it systems in this space, our FTE FDA cleared such as Biopharma.

<unk>.

You know very gene and T two and others.

I guess what are your expectations for how arc will be deployed recognizing that it is our UO initially.

Do you have a sense that.

Clinicians will be able to.

Administer this test on.

On patients in a clinical setting or is it really just to maybe build interest ahead of an FDA cleared launch.

Yes, a couple of.

Couple of comments there good question.

So the answer is absolutely, yes customers will.

Absolutely.

Our accounting on and we're working the sales funnels now for customers that will adopt arc isn't our UO will appropriately validate that our UO and their laboratory and then and then start running it for clinical use.

A very accepted practice.

Some hospitals.

Do not bring on our U O type products, but many do and it's just a matter of doing going through their self validation.

<unk> is pretty straightforward with Ark I would say because it's again the front end of the sample prep, it's not actually producing the result, <unk> producing the result.

And then.

Our initial target will be.

Obviously, it's for customers that already have a multi platform.

And that are wanting to move from a two day turnaround time for it to a rapid I'd that they can basically get sent same day results for.

And a couple of hours get a <unk>.

<unk> off of their <unk> and those are initial targets and.

Did I answer all your questions there Mark.

Yeah, Yeah that's.

Super helpful. Thank you for that and then maybe just my last question. Obviously you guys have.

<unk> really put up some good growth in EMEA.

But maybe just for clarification I think you.

Contrary, let's see you you added 16 contracted instruments in the quarter I think 14 came from EMEA. So just making sure that implies two in the U S and I guess can you just give us a sense for the funnel in the U S. I mean, I understand you have a strong backlog of about 81 in the U S.

But just give us a sense for maybe the interest level in the U S. Even outside of that backlog.

Mark first of all a correction those numbers are incremental so we did <unk> 16 in the U S and we did 14 in Europe . So.

Those are incremental to each other.

Okay understood understood, Okay, and then and then so just.

Interest level in the U S would be super helpful outside of the backlog.

Oh and then.

Yes. So part of the question was is the go lives. So our backlog of 81 instruments to go live and we anticipate getting a significant number of those lives this year.

And.

And then.

Obviously add more to that with new contracted customers, both for <unk> and for Pheno ASP as well.

We will be obviously building that funnel and we are building that funnel now.

Okay. Thanks, guys. That's it for me.

Thanks, Mark as Mark appreciate it. The next question is from Alex Nowak with Craig Hallum Capital Group. Please go ahead.

Great Good afternoon, everyone.

You know originally had originally had a lot longer goal at times that ultimately came down to be about six to nine months.

Once the system was placed there to complete the validation and the lab how long do you think a typical go live here, it's going to take with Ark initially.

We think it will be less than that.

But lessen it's not going to be we don't anticipate it's going to be the 12 month nine month timeframe that we saw initially with pheno.

With fino.

Alex and really.

We anticipate it should be actually a lot quicker I mean and so.

I would say three to six months, if I had to pick right now we're working through this relative to customer self validating as I mentioned before customers will need to self validate the our UO. So some of that will be based on the customer at the ability for the how fast the customers willing to go because.

They will be doing that upfront work versus versus accelerate initially until we get.

FDA approval, but it'll definitely be quicker and it's definitely more streamlined.

It's a pretty simple process.

Okay got it and then this is a bigger picture question, but I think it's necessary just given the challenges you've had with the Pheno launch has gone over the last couple of years with both a feedback that you've now heard with Pheno Pheno as T. Do you think pheno itself can still become that big success item in the labs that we were originally thinking on or do you think we need to start.

This shift our expectations a bit over that arc or perhaps two pointed out there's going to be that shop that may be pheno never could really achieve partially given the pandemic.

Yes. Thank you for the question I appreciate it no absolutely.

Fino will continue to be.

A major significant player in the area of rapid <unk> and now a S T configuration with our ASD kit.

Moving moving backwards before the pandemic. We were we had a very we had a very strong 2019, just before the pandemic.

Are we contracted.

I can't remember the exact number here, but I think it was like about 300 units or so and.

And again the value proposition is there Alex or just recently over the past couple of weeks, we had yet another customer just publish a pace a paper on the savings that theyre seeing.

And so.

No absolutely Pheno is going to continue to be a very important element here in sepsis.

And an overall rapid <unk>.

That said.

There is a reason for our strategy, which is arc gives flexibility around for.

For those customers that want a different solution for.

That's coming this month and that's a very important part of our strategy Asti configuration was a very important part of our strategy that we launched.

<unk> got approval for and launched in the middle of a pandemic in June and then longer term Alex.

You know what Pheno doesn't do is doesn't do all the other sample types high volume isolate testing that will be addressed with pheno too.

And that is going to be an important part of our overall product strategy as well that will allow us to capture a much bigger market than just positive blood culture that we capture today with Pheno. So I would say all of them are extremely important to our ongoing success in our ongoing mission to.

You know improve the lives of patients with serious infections, it's going to take the entire portfolio.

I appreciate that Jack very helpful. And then just last question can you maybe just give us an update on some of the plans to deal with the upcoming capital requirements needed for the outstanding convertible debt just what's been done to work around that.

Yes, I mean, we're spending.

Certainly, it's a big focus of mine.

I can't share our specific plans at this time, Alex but.

First on the capital raise front, we do have several options. There we have four 8 million outstanding on our ATM.

We will look to use that opportunistically were.

Blessed to have the continued support of our insiders and then we've had a couple of inbounds of recently on our.

On a new convertible debt issuance and interest in that given the lower stock price.

So theres a lot of there's a lot of options in front of us and we're weighing the puts and takes on those.

We'll do what we need to do to continue to execute.

On the debt front.

Luckily the dead is closely held so we're keeping our debtholders very close.

We talk to them frequently and are working on various plans with them to resolve the debt. So.

Both are.

Our focus and we have plans around.

Okay I appreciate the update thank you.

This concludes our question and answer session I would like to turn the conference back over to Jack Phillips for any closing remarks.

Thank you everybody and I appreciate the call today and thanks. Thanks, so much for the questions today.

Closing a couple of things from my side first of all I wanted to just take a minute and thank our tremendous group of accelerate employees for their continued dedication to deliver on our goals are doing a great job and making great progress soon so thank you to our employees our customers.

Who are just tremendous partners of ours as.

As we continue to move the needle here in rapid assay testing and thanks to our customers for all you do for for those those patients.

And then finally our shareholders.

Great. We appreciate that.

The commitment of our shareholders over the years, especially over the past couple of years as it has been clearly very challenging.

Due to the pandemic.

As we move our attention and we have now for several months to 2022.

I would say.

We have great optimism and Theres, great reason for optimism optimism here at accelerate.

As the health system's gradually returned to a new normal I would say that results in much greater access sometimes different access with zoom calls.

And in a higher level of interest in and more and more willingness to take on new initiatives to improve the patient outcome.

That's we're very excited about that and then as we couple that with our with our product strategy steady growth in our <unk>.

S T E N a S T core business.

We're excited to launch be able to launch arc over the next couple of weeks here in March and then we continue to make in 'twenty, two meaningful strides and be meaningful milestones in the area of our Pheno. Two development project were very excited and very optimistic.

The year.

I. Thank you all for tuning in thank.

You for your interest and accelerate and if you have any further questions by all means.

Please reach out to Steve and I burst.

Best way to connect with us as at investors investors at <unk> Dot com.

That's it for now again, thank you very much and have a wonderful day.

The conference has now concluded. Thank you for attending today's presentation you may now disconnect.

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