Q1 2022 ADMA Biologics Inc Earnings Call
Good afternoon, and welcome to the asthma Biologics first quarter 2022 financial results and corporate update conference call on Wednesday may 11th 2022 at.
At this time all participants are in a listen only mode. If.
There will be a question and answer session to follow.
Please be advised that this call is being recorded at the company's request and will be available on the company's website approximately two hours. Following the end of the call at this time I'd like to introduce Skyler Bloom senior director of business development and corporate strategy at Atmos Biologics. Please go ahead.
Welcome everyone and thank you for joining us this afternoon to discuss asthma biologics financial results for the first quarter of 2022 and recent corporate updates.
And today by Adam Grossman, President and Chief Executive Officer, and Brian Lenz Executive Vice President Chief Financial Officer, and General manager of that in the bio centers.
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 first quarter 2022 financial results.
Finally, Adam will then provide some brief summary remarks before opening up the call for your questions earlier today, we issued a press release detailing the first quarter 2022 financial results and summarize certain achievements and recent corporate updates. The release is available on our website at www dot asthma 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 2021 annual report on Form 10-K for the year ended December 31, 2021, as well as the risk factors section of our quarterly report on Form 10-Q for the quarter ended March 31, 2022 for a discussion of important factors that could cause.
Actual results to differ materially from these forward looking statements with that I would now like to turn the call over to Adam Grossman Adam.
Thank you Skyler good afternoon, everyone and thank you for joining us on today's call. We hope you all remain healthy and safe.
Our commercial performance and operational execution for admin intravenous immunoglobulin product portfolio has exceeded internal forecast and expectations.
In the first quarter, we generated $29 1 million in total revenues, which translates to 81% growth compared to the first quarter of 2021 and.
And continues the company's quarter over quarter growth as we advance towards profitability.
The strong start to the year serves as the basis for increasing our 2022 total revenue target.
100.
$30 million or more.
Worthy revise from the previously provided target of $125 million.
As we initially highlighted during last quarter's call.
The growth in our higher margin product portfolio, notably with a sentence is exceeding our internal expectations and cannibalizing to favorably rethink the product's potential contribution within our overall product mix.
In response to increased demand during the first quarter of 2022 patent as nimble manufacturing platform allowed us to shift our production priorities and increase our production schedule to include significantly more attentive batches than previously planned for the first half of 2022.
From a revenue perspective, we believe the Senate will now contribute at a level that we previously did not forecast materializing prior to the second half of 2023 and forward timeframe.
We believe the accelerated a scent of adoption is being driven by adding a successful product positioning commercial messaging and medical education campaigns, which are focused on expanding the brands awareness.
As we approach the third year of percentage of commercial availability, we believe from market feedback within the IAG landscape at our organization and the asthma Biologics name are now synonymous with trust and confidence with physicians providers and patients.
Additionally of note we have seen the elevated demand trends percentage Kristine throughout April and into May, which we believe and wheat to the view that the product upside will prove durable moving forward.
We believe incentive revenue growth is being driven by both the expanded breadth of providers as.
As well as increased depth within existing institutions on a same store basis.
We are encouraged by these drivers.
All told we believe that we are in the early stages of building a significantly sized and profitable franchise with percentage, which we believe is particularly valuable in the context of patent protection extending through the mid 20 threes.
We expect to communicate more good news about incentives as the products real world body of evidence continues to build and commercial experience and growth trends evolve.
Turning to begin with.
Product continues to penetrate and gain market share in the growing U S immunoglobulin market.
We are pleased with product specific growth and execution.
Notwithstanding our increased enthusiasm for attentive our confidence in biblical one is ongoing and peak revenue potential is unwavering and fully intact.
As we have throughout the pandemic admin remains committed to delivering the continuity of patient care.
Our strong normal sourcing RSV plasma supply inventories, which are included in the total inventory of $139 million recorded at the end of the first quarter.
We anticipated to support all upwardly revised revenue forecast on an ongoing basis across our immunoglobulin portfolio.
This robust plasma supply position is.
The result of US actively securing third party plasma supply contracts as well as the execution by our bio centers team and rapidly expanding our internal plasma collection Center network.
At present in our Bio Center segment, we have 10 plasma collection centers under our corporate umbrella.
Five centers or FDA licensed two additional collection centers are operational and collecting plasma and three centers are in various stages of construction.
We remain on track to have all 10 plasma collection centers SBA license by the end of next year at which point, we anticipate having substantial plasma supply self sufficiency.
At present, we are encouraged with our donor foot traffic and collection volumes, which are now considerably exceeding our organization's pre pandemic levels.
These accomplishments could not have been possible without the dedication and focus of adding the staff leadership and advisors.
Our organization's collective vision and dedication to establish complete end to end control of our operations is now our reality.
Thank you for your dedication and hard work in achieving our corporate goals and delivering on our commitments to these patients prescribers and stockholders to whom we have made these promises.
We commend the entire admah team for their remarkable efforts focused on improving health care for patients, who we know are counting on us.
In a moment I'd like to turn the call to Brian for an in depth review of the financial metrics other operating achievements realized during the quarter.
But before I do I'd like to mention that we believe our improved liquidity position, resulting from the first quarter of 2022 Heath and debt refinancing will enable the company to execute on its operating strategy.
While continuing to explore strategic alternatives to maximize shareholder value.
The exploration of strategic opportunities is ongoing and progressing and it remains a top corporate priority for the company.
With that said I'd now like to turn the call over to Brian for a review of the first quarter of 2022 financials.
Thank you Adam we issued a press release earlier today outlining our first quarter 2022 financial results, which I'll now discuss some of the key highlights.
As Adam mentioned earlier for the first quarter of 2022 total revenues were $29 $1 million compared to $16 million for the quarter ended March 31, 2021, and this represents an increase of approximately $13 $1 million or 81%.
The revenue growth for the first quarter of 2022 compared to the first quarter of 2021 was favorably impacted by the continued commercial successes and ramp up of our immune globulin product portfolio, including the expansion of our customer base for both the sentiment live again.
As a result of the encouraging early 2022 revenue growth trends and by increased revenue guidance for its full year 2000, $22 million to $130 million or more upwardly revised from the previous $125 million reported.
During the first quarter of 2020 to admit realized a positive gross margin of approximately 13%. This was driven by continued sales of our higher margin product and supply chain operating efficiencies, partially offset by an extended facility shut down during the quarter.
The company elected to extend the previously scheduled and otherwise routine shutdown at the Boca Raton manufacturing facility to complete certain projects, which were forecasted for later in the year.
Excluding these costs associated with the extended facility shutdown. The company estimates first quarter 2022, corporate gross margins would've been closer to 20% and a normalized production quarter.
Certain of these shutdown activities and upgrades were onetime in nature, we anticipate the facility's production schedule will progress on a normal course over the balance of 2022 and beyond.
Our consolidated net loss for the quarter ended March 31, 2022 was $25 million or <unk> 13 per basic and diluted share and this was compared to a consolidated net loss of $18 $4 million or <unk> 16 per basic and diluted share for the quarter ended March 31 2021.
The reported net loss for the quarter ended March 31, 2022 includes a nonrecurring charge of $6 $7 million for the extinguishment of debt related to the debt refinancing with Haven.
This refinancing provides for a three year extension of the interest only period.
A lower borrowing cost of capital and then additional available tranche of non dilutive capital.
Additionally included in the first quarter's net loss are $1.3 million of non operational charges related to the ongoing and progressing strategic review process attributable to professional fees, which of course are not a reflection of the improving underlying business operating and margin trends.
Accounting for these unique and non operational quarterly occurrences. We are pleased with the first quarter's top and bottom line financial results and we look forward to expanding on these trends in the quarters ahead spin.
Specifically, we expect to continue to grow revenues and gross profits and narrow net losses as 2022 progresses.
As Adam mentioned earlier, we have significantly strengthened our balance sheet over recent periods as of March 31, 2022, Adama grew its total asset value to $308 million, notably, including $139 million of total inventory and this is recorded at the company's cost our cash and cash.
Equivalents of approximately $70 million as well as accounts receivable of approximately $26 million.
Further as a result of our continued commercial execution and resulting revenue growth realized during the first quarter of 2022, we have already achieved the required revenue milestone under the Hafeman credit agreement to access the additional $25 million second tranche of non dilutive funds from Hafeman at our discretion.
Finally, before turning the call back over to Adam I would like to briefly discuss anticipated second quarter margin dynamics in more detail.
As a result of our recent FDA approval of the shelf life extension from 24 to 36 months for Vivek administrative the company expects to realize a meaningful one time favorable contribution to gross margin in the second quarter of 2022 for previously reserved product.
This non reoccurring meaningful benefit will be in addition to the expected underlying margin expansion, which we are confident we will continue to build in the coming quarters.
More tangibly, we anticipate the recognition of this outsized margin expansion from the sales of this product will immediately improve the company's already strong cash position.
On a pro forma basis, the company's total liquidity stands at greater than $120 million, which includes current cash on hand at the end of the first quarter of approximately $70 million accounts receivable of approximately $26 million and access to an additional $25 million and non dilutive funds from Haven.
Financially. This is the best position the company has been in since inception.
Longer term the extension of our centers and began shelf life to 36 months dating is a considerable enhancement of each products go to market offering as it should provide for a more efficient net working capital cycle for the company as well as allow for more versatile utilization and inventory management by providers.
With that I will now turn the call back over to Adam for closing remarks.
Thank you Brian .
In summary, all systems are firing in sync across departments and business units. We believe our company is well positioned to generate best in industry topline revenue growth on a go forward basis and in doing so anticipates, realizing significant operating leverage in the coming periods.
Although we believe we are still in the early days of incentives growth cycle the <unk>.
Reported real world experience and outcomes with the product and problematic and at risk immune deficient patients.
Us confidence and the belief that the above expectation trends will prove durable and sustainable which further solidifies our outlook for growing revenue and gross margin and the narrowing of net losses.
With this in mind, we reiterate our previously provided financial guidance.
Based upon current assumptions supply chain and market conditions. We believe an admin is on track to generate $250 million in top line revenue in 2024 and $300 million or more annually thereafter.
At this level based upon current assumptions, we anticipate potentially achieving 40% to 50% corporate gross margins and 20% to 30% net income margins.
Connecting the dots here these assumptions translate into potential annual gross profit and net income of $100 million to $150 million $50 million to $90 million respectively. During the 2020 for 2025 time period and beyond.
From a cash funding perspective, as Brian detailed we are well capitalized have good standing accounts receivables and have achieved the revenue milestones required to access an additional $25 million credit tranche, which we believe will provide for continued companywide execution.
As well as enable the ongoing and progressing exploration of strategic alternatives with Morgan Stanley from an improved position of strength.
In closing I'd like to thank you our stockholders for your continued support.
Is your investment in admin it helps to advance our mission to save lives and make high quality safe and efficacious products that help our friends family and neighbors.
Please donate plasma help save others and with that well now open up the call for your questions. Thank you operator.
Thank you Sir.
As a reminder to ask a question you would need to press star one on your telephone so which are your question. Please press the pound key.
Pause just for a moment are assembled a roster.
I show. Our first question comes from the line of Elliot Wilbur from Raymond James. Please go ahead.
Thank you.
Thank you Sir how are you.
Hanging in there as well.
Yes. Thank you just a couple of quick ones upfront for Brian .
Brian can you just walk through the.
Margin dynamics in the second quarter with respect to the favorable impact from longer dated inventory I'm not sure I caught the subtleties there or is this just a result of being able to sell some shorter dated inventory that you had previously expected to write off or is it a reduction in.
<unk>.
Accruals for potential eventual short dated inventory just wasn't sure if I necessarily quite understood frankly.
Driving me.
The contribution there and then I wanted to ask you a additional question is while you call out the $1 3 million in.
Expenses related to the ongoing strategic review process.
Just curious.
Curious obviously at some point in time, I assume that and how should we think about the cost progression there over the balance of the year I mean, these likely expenses that could continue through through year end, just trying to see if I can maybe tease out sort of the.
In the light of data in the table in terms of the.
Cessation of spending there.
Sure. Good afternoon Elliot. Thank you for your questions to begin with.
The gross margin dynamics for the second quarter, that's going to be attributable to our scientists that we have.
Sold essentially already in the second quarter as part of product that we reserved for that.
As a result of the FTAA extension of 24 months to 36 month shelf life dating so.
Not too long ago, I think it was back in 2021.
We reserved for a couple of lots at the 24 month dating that will allow us now to sell these lots.
At 100% gross margin and we will immediately recognize that revenue in the second quarter and the margin will be as I mentioned, a 100% and that'll certainly be accretive to revenues and adds significant cash to the already a well funded balance sheet.
Think of this Elliot maybe.
The way, we thought of the conformance batches, when we were applying for FDA approval for <unk>.
You could treat this inventory and again that'll be recognized in the second quarter roughly the same way.
It is onetime in nature, but we're certainly proud of it and and I think it speaks to the dedication of the whole <unk> team.
Yeah.
And the cooperation of the FDA, who we thank very much for granting us the approval, but the.
<unk> is great product is continues to remain stable and we're just very proud of having the products available now.
From a commercial standpoint puts us at parity with <unk>.
All the other <unk> on the market to put it in further context Elliot.
We know that.
<unk> has a our margins are one of our higher margin products at 80%. So for the second quarter of this product will be realized at 100% gross margin.
Sorry go ahead. So your second question as it relates to the $1 $3 million charge, we incurred during the first quarter. We think about this charge as it relates to the strategic ongoing and progressing our review process.
As a non operational charge. So when you think about expenses that you have as youre looking at strategic opportunities youre going to see things such as legal accounting tax fees. It's not it's certainly not a not it's not a core expense, but we expect to have these types of expenses to continue.
Throughout the year and again.
The process is certainly progressing and.
I wouldn't say that.
The expenses are going to continue throughout the year.
So maybe I could just add to that Elliot I know that those are questions for.
For Brian , but just can't help myself.
The business is evolving subsequent to commencing in the Morgan Stanley process.
As you heard in the prepared remarks centers is truly gaining and gaining traction and penetration.
<unk> continues to build share.
<unk> share in the growing <unk> market and we really are.
Totally focused laser focused on the pathway to profitability certainly what we just spoke about earlier the.
Ability to recognize 100% margin on this.
Senate product in the second quarter.
It's a great wind at our backs as we work towards profitability, but.
The business is evolving and.
I don't want to overstep here, but we certainly are thinking that profitability timelines may.
The accelerated.
In our view this is truly transformative and profitability has never been clear. So we are progressing with the Morgan Stanley process as you see.
We are spending on this process again. These are expenses that we believe are going to continue we don't know the timing of these expenses and.
I can tell you that these processes take on a life of their own.
The buyers are all experiencing the same.
I guess the parties I should say are experiencing all all of the same.
Impacts from.
The market that we are but we can tell you that we're laser focused on this it's a top corporate priority and we are looking to conclude this our hope is by the end of the year.
Thanks, and just one more if I may for yourself, Adam as well.
I think the story of the last couple of quarters has been the strong performance of <unk> within the overall IV E G.
Mix.
And as you see more real world utilization of the product and growing position usage I guess in various subtypes of <unk>.
<unk> patients.
How is this helping or how are you utilizing this real world data in terms of refining your overall marketing message and I guess the question is basically are you seeing more utilization in certain areas, where you didn't think necessarily incentive would be that favorably position.
And then you can sort of use that as part of the feedback loop and go out and communicate the message to.
Various prescribers or does the word kind of spread within the physician community and then it makes its way back to the company just wondering how the reward utilization is sort of.
Helping you to sort of optimize your overall.
Messaging around our centers. Thanks.
Thanks for the question Elliot.
It's a combination of factors and I think <unk>.
First and foremost we continue with our commercial messaging and our medical education strategy, we continue to.
Present data at medical conferences, all across the country local shows national shows.
In conferences, and I think that the grassroots approach in the real world experience that has been published out there and that some of our Kols have presented on is really starting to resonate.
Amongst the tertiary clinicians and their friends and colleagues.
Patients are doing better on the product. These are patients again who've had problems maybe they've switch brands of IAG they've tried to have their dose increase which again I've said on multiple calls that payers don't particularly like to do.
So I sent it provides an alternative.
Again, our patents and the differentiated methods by which we select and screen our plasma donors and then ultimately form the plasma pool.
There's different with patented these patents run through 2035 timeframe ish and I can tell you that.
The patients are.
Problematic patients are going on are sensitive and they are staying on the product theyre doing well, we're seeing less antibiotic use in this population were seeing less antiviral use in this population we're seeing less other types of infections. So it was designed to be an <unk> to be an alternative to what's available out there and quite frankly, we really are proud.
<unk>.
The work that our.
Our commercial organization.
Been doing and I think that that translates into what youre seeing our revised upside revenue targets.
This is durable this as durable business and we're seeing you know sure. We're opening up some new accounts, but what we're seeing is that the existing I call. It same store <unk>.
Clinicians.
Theyre, putting patients on therapy and they put the first one and the second one and they go through the reimbursement hurdles, which you have to do for any IAG and they're getting reimbursement and then theyre seeing the outcomes and then they are saying you know what I'm going to put patients three four and five one as well they have similar risk factors they have similar comorbidities.
So I think that's why we're seeing this acceleration occurring so quickly is that people see that the drug works and candidly the supply is available and I think that that also is something that you know.
While while our plants has been here for a while admin is still considered a quote unquote newcomer into the <unk> space.
And in my prepared comments it was purposeful I really believe that admin is building a name for itself as.
As a reliable durable supplier you see our inventories approximately $140 million.
Our customers see that we've got the continuity of supply and they can ensure the continuity of care to their patients and that is really what what is driving this so hopefully that answers your question.
Thank you.
I show. Our next question comes from the line of Kristen <unk> from Cantor Fitzgerald. Please go ahead.
Hi, good afternoon, everybody. Thanks, so much for taking the questions and congrats on another strong quarter.
I wanted to pick your brain and ask a little bit more about how you're valuing the company based on the facility itself and machinery.
I know in the past you've spoken pretty highly about real estate and things in Boca, but just you know how do you think that this has changed in light of an inflation forecast and everything that we've seen in the sector across this last year.
Well Kristen Thank you for the question.
I think our visibility from a valuation standpoint.
Remains extremely high our core financial performance as you also indicated continues to improve when we look at our balance sheet with regards to our property plant and equipment. Our plasma centers that we're successfully building out on an accelerated basis all of that valuation I think it really translates to.
Our balance sheet growing from $276 million at the end of the year, just a few short months ago to now over $308 million or inventory at $139 million, which is really the level that's right sized to support our ongoing upwardly revised revenue guidance as well as our all of our raw material on RSV.
And normal source plasma requirements.
This has been the single largest use of cash through the first two years of commercialization ramp up and we expect our inventory really to be plateauing from here.
Really a high highly favorable dynamic for the business going forward, which in other words just to say, we anticipate our cash burn to constricted Klein with net losses narrowing one other thing to think about couple of other things to think about what this quarter that I wanted to.
Make sure it was clear to everybody, while we had a $25 million net loss there were a couple of non reoccurring or non operational charges as I mentioned earlier $6 $7 million from the early discharge of debt.
That's a one time charge, we have non operational charges of $1 $3 million related to professional services services fees noncash nonrecurring charges of $500000 and then as I mentioned, we had a plant maintenance extended shutdown in the press release, which would essentially take taken our gross margin from 13% that we saw there.
Quarter, 220% gross margin and that equates to if you factor all those onetime charges and non operational charges and the improved gross margin.
We would have a net loss of about $14 million, which is certainly meaningful from a narrowing quarter over quarter and year over year standpoint. So we're just we're committed to.
Build the building the company gross profits narrowing net losses over the remainder of 2022 and beyond so we feel very confident going forward.
If I may you know Kristin real estate in Boca.
I keep getting all these emails about the properties for sale I mean, the prices just keep going up.
I don't know how long that can continue.
But.
Real estate in Boca is still thriving, but I think it's important to look at I mean look our facilities ft prove we passed our inspections, we've got everything from end to end on campus here.
Fill finish.
Everything is working well and we really feel very proud of our end to end control, but when you really look at the asset value here I think a lot of it has to do with how much cash can we generate how much revenue can we generate out of this facility.
And I got to tell you every week my staff continues to Amaze me about the efficiency improvements that we're unlocking and were seeing improvements to yield on particular batches.
We're just getting more comfortable with this operation. So I really think that when we look at the potential upside that's why we reiterated.
Our previously provided financial guidance.
After 2024, we say $300 million or more I mean, we really think that there is upside here to our forecast we feel very comfortable about the guidance that we're giving.
I think that hopefully our stockholders and the street and our analysts understand Brian and I are.
We like to hit our milestones we like to keep our promises we still feel very very good about our track record of hitting regulatory and commercial milestones here, but centers presenting a tremendous upside.
We are we.
We said during the call that we.
Our manufacturing platform is so nimble that we were able to say you know what we're looking at demand first and it's growing and we're swapping out bid again batches for extended batches. It's the same same as Scott likes to say is it's the same squeezed, but for a lot more juice from a revenue perspective, and a margin perspective, where they began.
20% to 30% gross margin product and are our higher margin portfolio of incentive and Nabi HB are in the 70 to 80 plus percent gross margin perspective, So we're really thinking that the asset value here and the amount of cash that we can generate has upside to the forecast that we're presenting so long answer to you.
Your question, but very proud of the work, especially in light of the current backdrop.
Okay, great, Thanks, and Brian maybe I can.
Hone in a little bit more on this clean on inventory that you brought up so you noted nearing plateau. So I guess you know if you.
Could be a little bit more specific about how to think about this.
In the shorter term horizon as you are nearing.
Potential profitability.
Sure. So what we've said historically when youre thinking about gross margins. We obviously want to have the right level of inventory to generate that $250 million to $300 million or more in revenues at $139 million in total inventory if youre looking at a 40 or 50% gross margin clearly you can see.
We can do in excess or excess of $250 million of commercial value of $250 million or more once we've gone through the web.
And finished goods process. So as I said, we have upwardly revised revenue guidance to $300 million, we feel very confident in $139 million is the right size. It may fluctuate from time to time quarter to quarter, maybe modestly.
Up a little bit as we look to exceed the $2 $50 million to $300 million in revenue, but we really think that the largest previously the largest single use of cash utilization was inventory and we've built that inventory balance to a very.
Very well funded number.
Okay. Thanks, and a question on incentive just in light of your comments and your enthusiasm that you've seen over the past few quarters.
Wanted to ask if you could provide any more color and I know, it's still very much early days just about the number of average number of doses that you're seeing being utilized with the scientists.
Yeah.
Kristen it's a great question and I can tell you that the.
The primary immune deficient population they use <unk> every three to four weeks and we're seeing these these patients receive product I mean, we have patients on therapy for their in their second second year of therapy.
This is a change to our forecast I mean, maybe that's a great.
Maybe I didn't answer that question that.
Elliot asked earlier, I mean, I think that Thats, a change to our internal forecast, we didn't necessarily forecast that patients were going to remain honest sensitive for the duration of the entire calendar year, but.
Clinicians and patients don't like to change Iag's, if theres no reason to have a patient is doing well in an existing therapy.
The desire is to keep the patient on that therapy. So I think that it's.
It's again still early but we feel that these trends are proving durable because we're seeing this now quarter over quarter and really.
Really in the primary immune deficient patients, which is where we focus our efforts our marketing and our medical education efforts are all around the immune compromised.
These are patients who are receiving therapy every three to four months and again patients are staying on therapy as their primary brand of IV <unk>.
Okay. Thanks, and last question for me, it's definitely something I've asked you before but I'm going to ask it again again in light of all of the comments you've made here around incentives. So just in light of the high demand.
The great feedback.
Additional measures are you looking to take at this place to secure even more of this plasma from the particular donors that have the sufficient levels of neutralizing antibody to RSV.
That's a great question, it's actually quite quite time, whether youre asking that question, whether I should be saying and I saw Microsoft teams message that came across my desk, saying, Hey, our one of our vendors will extend our contract. If we agree to some of these terms and I said Oh, yeah, let's extend the contract so we're doing.
Everything from extending contracts.
Two two.
To speak to my analytical development and.
Our scientific team and building too across the way here on our Boca campus, we've made investments into.
Equipment, and we're bringing parts of our RSV neutralization assay in house. This is going to allow us to optimize the turnaround times.
Of identifying donors and we think that that is ultimately going to help us to capture these plasma donors faster in their donor lifecycle process, whether it be from one of our third party vendors.
Or from one of our own centers.
As you know Christian.
In my statements and Bryans statements we've got.
Five centers that are approved today, but if we've got seven selecting correct. So we've got seven centers collecting.
I think we've currently said approximately 5% to 10% of donor.
Owners have the antibody titers that were looking for.
To use in the plasma pool for Seneca and a typical plasma center pre pandemic, which we are certainly seeing improvements too.
Our own collections from a from a foot traffic perspective, as well as the yields from the human ethics persona system, which.
Our continuing to exceed our expectations.
We've got plenty of plasma I mean, we've got.
I was on the phone with some shareholders are a couple of weeks ago, and I was reiterating to them.
<unk> has never had a plasma problem throughout the entire pandemic, we continue to be very long plasma both normal source and RSV plasma and we are taking measures to expedite the identification of these donors by bringing some of the testing in house.
Extending our supply contracts and and I should reiterate that our gribbles agreement for collecting RSV plasma, which has really been the primary.
Supply source for the product since our company's inception that agreement runs through June of 2027%. So we've got a long term there we've got more collection centers under our corporate umbrella than ever before and.
I'm very pleased to say that our biosensors business unit is operating very efficiently our collections are.
Within budgetary targets are exceeding and we really are very proud of our plasma position, we've got plenty of plasma.
Plenty plenty of plasma.
Awesome. Thanks again for taking the question.
Thank you so much.
Thank you.
Ladies and gentlemen, this will conclude our question and as a portion of the call I'd like to turn it back over to Adam now for additional closing remarks.
Well thank you.
Everybody for dialing in today hang in there and I'd like to thank everyone.
For all of their continued support for the hard work of the asthma biologics team and to my team. Thank you for listening, let's keep making some good high quality batches take care everybody.
Ladies and gentlemen, this concludes the conference call for today. We appreciate your participation and you may now disconnect.
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