Q2 2022 Accelerate Diagnostics Inc Earnings Call
Good day and welcome to.
Celebrate diagnostics second quarter 2020 earnings call all participants will be in listen only mode. You need assistance. Please signal a conference specialist by Sparky or by E Mail.
Please note that this event is being recorded.
On the call wasn't a four person. Please go ahead.
Yeah.
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 at the Securities Act of 1933 and section 21 E of the Securities Exchange Act of 1934.
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.
These are discussed in greater detail in our annual report on Form 10-K for the year ended December 31st 2021, and other reports we file with the SEC.
It is my pleasure to now introduce the company's president and CEO Jack Phillips. Thank.
Thank you Laura good afternoon, everyone and welcome to our second quarter earnings call on today's call. We will discuss our exciting new partnership with Becton Dickinson, our second quarter financial results and other consequential developments from the quarter of which there are many.
This morning, we announced an exclusive global commercial partnership with Becton Dickinson.
The combination of Bd's leadership position in microbiology, and our innovative products will deliver immediate commercial synergy and strategic value to both companies I will detail. The terms of this arrangement our rationale for entering into it and its many benefits later in my prepared remarks.
The second quarter's financial and product development results were consistent with our expectations. In addition to strong revenue growth, we made meaningful progress in product development and took another consequential step to improve our balance sheet before.
Before providing additional detail on our progress during the quarter I would like to hand, it over to our Chief Financial Officer, Steve Reichling to review, our second quarter financial results over to you Steve.
Great. Thank you Jack and good afternoon, everyone.
Our net sales were $3 9 million for the quarter and $6 $8 million year to date. This compares to 2.8 and $5 $3 million from the same periods in the prior year.
This represents growth of 39% and 28% over these periods respectively.
The strong and accelerating growth resulted from steady increases in recurring revenues.
And positive contribution from capital revenue deals struck in the second quarter.
Cost of goods sold were $2 8 million for the quarter and $4 $9 million year to date, resulting in gross margins of 28% for the quarter and year to date.
This compares to cost of goods sold of $1 $7 million and $3 4 million and gross margins of 38% and 37% respectively. During the same periods in the prior year.
The decline in gross margins resulted from continued inflation to production cost and other factors.
Selling general and administrative expenses, excluding noncash stock based compensation expense were $8 9 million for the quarter and $16 $5 million year to date.
This compares to seven seven and $15 $8 million for the same periods in the prior year.
These increases were the result of higher commercial activity in the quarter, which drove higher costs in areas like travel and commissions.
Noncash stock based compensation expense and SG&A was $3 $2 million in the quarter and $5 $6 million year to date, compared with 5.2 and $11 $2 million from the same period in the prior year.
Research and development costs, excluding noncash stock based compensation expense were $6 $2 million for the quarter and $11 $9 million year to date. This compares to 4.4 and $8 $6 million for the same periods in the prior year.
These increases were the result of ramping investment in our next generation development program to finalize and produce instruments for assay development non.
Noncash stock based compensation expense and R&D.
Or $500000 for the quarter and $900000 year to date compared to 1.3 and $4.1 million for the same periods in the prior year.
Our net loss, excluding noncash stock based compensation expense was $13 million for the quarter.
And $24 $2 million year to date.
Our GAAP net loss was $17 million for the quarter and $31 $2 million year to date, resulting in a net loss per share of 22.
And 43 cents respectively.
Net cash used was $13 6 million for the quarter and $26 $8 million year to date, excluding cash flows from financing.
We ended the quarter with cash and investments of $36 $8 million.
This morning, we announced a financing of approximately half of our outstanding convertible debt.
This transaction took approximately 50 million of convertible debt that was due in March of 2023 and converted it into a 35 million dollar term loan due in five years.
This effectively extinguished $15 million of our debt and pushed the balance of 35 million out for five years.
This term loan has no cash interest due during the term and includes 15% warrant coverage.
This leaves approximately 56 million of the original $172 million convertible debt outstanding.
We continue to work with our advisors and remaining debt holders on strategies to resolve this debt prior to maturity.
Finally, we announced a global commercial partnership with Becton Dickinson.
Among other financial benefits that will be discussed later in our prepared remarks. This deal included a $15 million upfront license fee.
This fee is to be paid over the term of the agreement with the first 3 million due to us in the third quarter. We also anticipate closing on our previously announced insider financing round of $4 million in the third quarter.
I will now hand, it back to Jack to review, our second quarter results in greater detail Jack Thank you Steve.
I will quickly cover our second quarter commercial and product development results and then turn to our partnership with Becton Dickinson.
In the second quarter, we continued to see global conditions for selling our products improve. This is the result of less pandemic impacts and increasing attention on the growing problem of anti microbial resistance. This positive trend was evident in the high number of customer meetings and funnel additions during the quarter we were.
Also starting to see these leading indicators translate into higher rates of contracting and revenues that said hospitals in their laboratory staffing remain affected by the pandemic record turnover and resulting high vacancy rates throughout the hospital is negatively impacting our degree of access.
And relative priority within the hospital, while we have streamlined our processes for selling and implementing both pheno in arc. The involvement of key decision makers lab staff and even hospital departments is required and remains a hurdle to higher rates of adoption.
In the U S. We contracted eight new Pheno instruments and brought another six pheno instruments slide.
We ended the quarter with a revenue generating installed base of 316 Pheno instruments.
And the backlog of 78 Pheno instruments pending implementation. We also contracted 15 arc evaluations and advanced our growing sales funnel up perspective, our customers. These evaluations span a range of customers, including notable institutions like the Cleveland clinic and see.
Sinai.
Customer feedback has been quite positive and several of these customers have moved from a valuation to contracting.
Lastly, as U S hospital patient mix normalized we saw recurring revenues rise above pre pandemic levels signed several existing customers to long term contracts and contracted several new customers do capital revenue deals.
In EMEA, our commercial progress remains steady we added several new contracted and clinically live customers and grew our annuity per customer year on year. These factors contributed to global revenue growth, which exceeded our internal forecast for the quarter.
Our product development teams had a similarly productive second quarter. They achieved all key product development milestones. This included obtaining regulatory approvals necessary to commercialize arc outside of the U S ahead of schedule.
<unk> has a substantial multi market and therefore, a large opportunity for arc. Additionally, we continue to make very good progress on our next generation E. S. T platform, we expect instruments and consumables from our final designs to be available shortly for formal assay development we.
Eight conducting clinical trials in 2023 and are targeting a U S launch in 2024 as a reminder, the next generation Fino will have a total diagnostic solution for all susceptibility testing in a single integrated platform. This will bring larger instrument annuities at a high.
Gross margin for accelerate.
Earlier today, we announced the formation of an exclusive global commercial partnership with Becton Dickinson BD is the global leader in microbiology and continually evaluates important market trends a recent market study identified the micro labs.
Or looking to process time sensitive samples faster with less resources as a result, BD ran a competitive process evaluating several emerging tech technology companies and identified accelerate as the partner of choice. This is a strong validation for our products and capabilities.
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Our innovative rapid diagnostic solutions are meaningful additions to bd's diagnostic portfolio through fino BD is adding their first rapid antimicrobials chromium susceptibility testing capability and through the combination of arc and Fino BD is adding two ways to offer rapid identification.
Vacation testing to its customers.
Either integrated with their multi install base through arc or through I D. A S. T. The I V. A S. T test kit on female these product additions come at a time when large microbiology players are aligning with innovators in this space. For example earlier this year the number two player microbiology Beumer U.
Acquired a pre revenue rapid a S T company specific diagnostics after their commercial partnership.
For accelerate there are three principal drivers for joining forces with BD first to significantly improve our commercial reach both in the U S and abroad.
Second to improve our selling effectiveness by combining offerings with bd's. The BD suite of products and lastly to collaborate on future innovation. We believe this partnership will translate into greater market penetration, resulting in higher sales, while lowering spend and leading to an.
Improved balance sheet.
Before I review each of these drivers in detail a few words on BD BD has global annual revenues in excess of $1.1 billion in microbiology.
They have thousands of customers spanning most countries globally.
Nearly every clinical microbiology lab in the World uses at least one of their products.
Their product portfolio spans the entire traditional microbiology workflow from sample collection to clinical decision support solutions and.
And when compared to other large microbiology players they have the broadest portfolio of products period accelerate considered other partners and determined BD to be the strongest potential collaborator collaborator given their scale reach and the degree to which our products complemented their existing portfolio.
The first driver for entering into this agreement is to expand our global commercial reach Becton Dickinson has the largest direct sales force in microbiology in the United States. Our sales forces Forex the size of accelerates their broad coverage allows them to call on every microbiology lab in the country.
Under the terms of the partnership BD will be the exclusive sales agent for arc and fino supported by a focused team of accelerate product specialist leading to a much improved sales approach.
The new structure will allow us to immediately reduce our sales and marketing costs and transition this large fixed cost into a variable one.
Substantial reductions in sales and marketing spend will be realized starting the fourth quarter of 2022 with a full year's benefit in 2023.
Outside of the U S. The expansion of global coverage is even more profound currently we are in 18 countries in Europe , and the Middle East BD as a global powerhouse with over 50% of its revenues coming from outside the United States.
BD has some 200 direct sales reps in EMEA and a large logistics logistics and distribution network given recent regulatory approvals for arc BD will have a broad license to sell arc and fino across much of its large global network.
The second driver for entering into this agreement is to improve our commercial effectiveness beyond the multiplier effect of having more sales reps selling pheno in arc, we anticipate a higher close we anticipate higher close rates and improved deal economics with BD.
Commercial effectiveness will improve throughout better stakeholder access and product synergy looking at improved access BD has the benefit of a large existing customer base for promoting fino anarch largely to the same stakeholders. In addition, their brand and importance.
The hospital lengths instant credibility and affords higher levels of priority.
Regarding product synergy the pheno in arc are highly complementary to bd's existing products. Let me illustrate a couple of practical examples for arc BD manages a very large global installed base of multi systems arc was designed as the perfect companion for multi simply.
Buying its existing workflow and dramatically improving its time to resolve with BD substantial install base of microbiology solutions. The Pheno I D. A S. T can be paired with both Phoenix and backpack to manage clinically sensitive patient samples.
Also these bundles of diagnostic tools will become stickier through incorporating our products into the BD Synopsys microbiology information management solution.
Integration with Synopsys will be a priority work stream as part of our broader integration plan.
And the third driver for entering this partnership is to to collaborate on future product developments within the agreement are mechanisms to leverage Bd's clinical marketing operational and R&D resources the opportunities for mutual benefit here are numerous with the deal now execute.
We are turning our attention to integration plans, we anticipate launching products officially through BD in the U S. At the start of the fourth quarter of this year. It is expected that launches in EMEA and other ex U S regions will follow in subsequent quarters.
Given this integration timeline, we anticipate positive impacts to contracting and reductions in burn rate to first be seen in the fourth quarter benefits, leading to higher revenues arent anticipated until 2023 and accordingly, we are maintaining our annual revenue guidance of 13 to 14.
And are expecting to come in below our burn guidance of $44 million to $55 million for the year.
We see potential for significantly improved customer contracting higher revenues and materially reduce cash burn in 2023 and beyond.
In summary, this is a very exciting quarter for accelerate and certainly one of the most notable in the company's history. After two very challenging years, where the pandemic had a dramatic impact on the hospital selling environment. We are turning the corner our partnership with Becton Dickinson is a strong validation of our pre.
<unk> strategy and comes at a time when the hospitals selling environment is improving.
We are firing on all cylinders in R&D with new products like arc to sell and our game changing next generation a S. T platform in the wings are balance sheet position improved with the restructuring of half of our outstanding debt and has the potential to improve further throughout higher revenues and lower cost from the BD partnership.
I would now be happy to answer questions from our analysts should others on the call have questions not addressed we would be welcomed we would welcome you to send those questions or request for a follow up meeting to investors at a X Dx dot com.
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Okay.
Thank you first question will be from Alex Malouf, Craig Hallum Capital. Please go ahead.
Great. Good afternoon, everyone. This is connor on for Alex first off congrats on the BD agreement I think that's great I appreciate all the color, but I guess, just starting high level could you speak a little bit more about the cadence of how the agreement will play out like more specifics on the current integration activities.
Is underway and through the second half of the year I'm, just kind of what the roadmap looks like for the next six to 12 months and then just as a second part of that question.
Could you provide you know kind of any more granularity on how the economics of the deal works or sales.
Yeah sure.
Just so we can tag team. This I'll take the first part and then have Steve talk a little bit more about the.
IMAX Conor so I guess first and foremost this is something this is a core chip that's been going on for a while disagreement comes after almost a year of good hard work together by both companies BD and accelerate and so as a result, I would say that even ahead of this agree.
<unk> signing we started working on integration plans together, we had several meetings on this very topic and I'm happy to say even like next week. For example, we will have the senior leadership from BD here in Tucson.
For a full day and a half of meetings in and to really start getting our commercial plan.
Earned out executed and launched so.
So I would say overall, it's going very very well what to expect over the next six to 12 months, we expect over the next quarter to really come together and finalizing our commercialization plan.
Getting everyone trained.
<unk> systems in place and effectively launching this partnership and.
As I indicated doing that by Q4 in the U S and hopefully shortly thereafter in other countries outside the U S and then.
You know over looking beyond starting into next year I mean, we're really excited to see a potential kick up in the.
Out of activity that we have based on the things that I highlighted access and commercial effectiveness et cetera, we expect to see much greater funnel productivity much.
Much more rapid progression through the funnel and then the ability to bring customers live more quickly.
And from a mechanism perspective, the way that we structured this deal with BD is that they as our principal sales agents in the market will generate leads and new business, we will have a process to attend that.
Those new deals into our contracting system in concert with BD, and we will ship product.
And recognize revenue consistent with our current revenue recognition practices.
So therefore, all the revenue will flow to accelerate directly and then we will pay on a percentage of revenue generated basis, a commission to BD.
These conditions have a scale. So there is a target level, that's established with any agreement.
And there is a lower rate paid for achievement below that target and then there was a kicker paid for achievement above that target.
Sure that makes perfect sense I appreciate the color there.
Could you just give us some overview of becton Dickinson current microbiology offerings I know you offered up.
A little bit in the prepared remarks, but it looks like they have an existing idea I S. T instrument, you know sell blood culture et cetera.
More color on how they're expecting to integrate C now and or art until their pitch.
Sure thing.
So first of all.
Becton Dickinson spin and microbiology for many many years and they've earned they've earned the number one spot in microbiology for good reason they have a tremendous portfolio of products.
Workflow solutions and eight of a.
<expletive> team of sales and support people and <unk> and provide just tremendous customer customer experiences and customer satisfaction.
Their portfolio really they are an end to end company I mean, even before microbiology, they're a leader in sample collection, they're a leader in blood.
Blood culture systems. There are also a very important part of their portfolio is.
Is the multi portfolio, which there are distributor for broker of and then they have a very successful business as you mentioned Conor in in susceptibility testing they have very large markets market share and susceptibility testing and and then also they very much approach microbiology isn't.
Ecosystem of which they're constantly looking at workflow opportunities and that was in part the acquisition several years back now a key straw, which is an automated workflow solution.
<unk> solution within microbiology that effectively connect systems then the last thing I would say to US. They also were very focused on investing in software and I T that further helps to automate the lab and they have a.
Proprietary synapsis microbiology.
Solution middleware solution, that's used in microbiology as well that elegantly connects their solutions across across microbiology, and that's something that we'll be tapping into together.
To further connect the the accelerate systems as well and then and then just to kind of maybe move on from there and say okay. How is how is what accelerate deliveries going to fit into this very broad.
Solution by B D and it's going to it's going to fit very very well from a front end standpoint in areas like moldy, where multi as well.
One of the best solutions on the market today it is.
Very very well established in microbiology, but theres, a major drawback and it's I'm.
Very slow for identification of organisms. It takes it takes several days.
Complementing that very good solution with arc is really an opportunity to change how multi testing is done globally with arc, we can produce.
<unk> and about 72 minutes spot a.
Multi play and run run multi to get an identification.
It's simply transformative and then on the backend where BD is well established and susceptibility testing they still recognize a gap in their portfolio, which is rapid susceptibility from positive blood cultures that is not something they offer today and it will be with Pheno.
Both I D. A S T and fino a S T it'll be a tremendous complement to the Phoenix platform for customers that are looking for addressing those critically time sensitive results more quickly.
Got it no that makes perfect sense, it sounds like a great fit for our can female.
Just a quick one bouncing off that I know you said they have about forex the amount of reps targeting microbiology labs and accelerate could you just put a number to that and how much how many reps do they have calling on the microbiology labs.
Yeah, I don't I don't want to put an exact number to that because I may be off one or two but I'd say its again one of the it's one of if not the largest commercial.
Commercial teams in microbiology period, and they have also a <unk>.
<unk> well established corporate accounts team as you would imagine a support team and multiple specialist that our team will be integrating with.
Gotcha perfect sense.
And then just you spoke to you know kind of the long lasting staffing issues still dealing with them, but any more color. There like does it seem to be getting any better at all and I mean, just kind of what are your expectations on the staffing side and second half.
Yeah, I think you know past couple of quarters, they've continued to improve they've continued to stabilize and I would say I mean this is all going to stabilize over the future. I mean, this is a and area of health care and an area of of really just just work in general.
That was the there was one of the hardest hit area of of the pandemic and its going to recover.
Starting to see people, while they're changing jobs or leaving the industry.
New people are being hired new people are coming in and with that comes the ambition to take on initiatives to improve and transform these critical areas of diagnostics and health care and so with that we're seeing actually starting to see you know new energy where people are joining new health.
Our institutions, and and and methodically going through opportunities to improve microbiology to improve how you.
Clinton critically ill patients are treated and that's where more and more programs are coming into play and I would say the other thing that we're seeing is the stewardship programs that were largely disbanded. During COVID-19 are also starting to come back and be a big part of health systems, which is very helpful. Because those have been.
Key stakeholders of ours, as we automate with rapid I D N a S T.
That's great that's perfect.
Steve Thanks for the updates and again congrats on another great quarter here at progress.
Thank you Connor.
Thank you. Our next question will be from Brian you've seen how well we.
Blair. Please go ahead.
Hey, guys. Thanks for taking the questions and congrats as well.
You talked a lot about the BD deal one thing that wasn't mentioned there was how this impacts the commercialization of <unk> 2.0, what rights do you.
E D have for that product and should we expect them to be marketing that when it comes out or doesn't need to be some additional considerations when.
When that product gets submitted or becomes available commercially.
Yep. Thank you Brian I appreciate the question and so let me let me start by saying first of all Pheno too continues to make we continue to hit major milestones with the with the program.
It's going very well with our partners. We're on track to have our first alpha units that we'll be able to start full on.
It's a development with here in the coming month.
And it continues to progress the second clear point that I'd like to make is that I'm pretty certain that we would not have a partnership with BD. If it wasn't for the fact that accelerate is thinking beyond fino, an arc and really.
Delivering and focused on delivering innovation into the future I'm, absolutely fino and I D. S. T and arc are absolutely important additions right now for BD and Theyre excited.
To start commercializing those products and helping their overall solution be stronger and be successful with our products as well, but they are very interested in accessing.
Accessing our future innovation, they will have an opportunity to do that in a number of ways. We will have an innovation council.
Formed immediately that will involve the greatest R&D minds from their company and and accelerate we will meet regularly to review the progress of Pheno too.
With them they will have agreed to provide.
Guidance is appropriate and input as appropriate as they see it as well and then as we get closer to launch as we get through clinical trials next year, and we start that the opportunity for them to put pheno too in this agreement is absolutely there and.
And one that they're excited about and one that will be excited about when the when the time is right.
Okay got it and then just to follow up on that.
When you mentioned product development together in the script and in coming together is that is that really what you were referring to or is there. The possibility of additional products that you guys theoretically could be kind of working on in the background and trying to come up with is kind of a once it combined entity, but with a common purpose.
Yeah no.
Yeah, that's a great question and actually.
We're interested in other opportunities as well that we've already talked about and I'm.
More specifically other opportunities that would make fino and arc are more sticky are.
Better integrated with their workflow I mentioned, one example brought Brian of the Synopsys middleware solution that they have that was one R&D project that we've already talked about and there are others that I won't mention today that we've already talked about that would further automate arc and feed.
And help help customers better integrate <unk>.
These important platforms into an overall BD solution.
Got it.
And then you talked a lot about.
This deal will be allowing for you guys to be more efficient in your spending here specifically in sales and marketing, but can you just talk a little bit more about that any specifics around this and then maybe what the kind of overall theme of how to be thinking about what this means for guidance I heard the comment on on the revenue side and.
The lower end or below the cash flow burn rather but as.
As we think about kind of the new accelerate are teamed up with B D. How should we be thinking about things in 'twenty, three and beyond especially given the.
The opportunity for reduced costs on sales and marketing.
Great Yeah.
You hit on an important point there was a big part of our modeling around this deal on a prospective basis.
One of the one of the things that will help us in the immediate term is to reduce our burn in marketing and sales by shifting a lot of that to be.
As Jack mentioned, we will still have a focused team of specialists to work with that team for optimal sales success, but even with that remaining team we.
<unk>.
Actually.
<unk> concluded a restructuring already in anticipation of the steel that reduced our sales and marketing spend considerably.
And.
As we mentioned for lots of points of commercial synergies. So this will lead ideally.
Two higher top line, but also less spend and what we've effectively done is turned sales and marketing into a variable costs instead of a fairly side with a fixed cost.
The commission is paid only for revenue.
<unk> through the channels.
So that's the first part great opportunity to improve both topline and bottom line through this partnership.
And then while we don't want to get into specific 2023 guidance at this point we'll.
We'll certainly be providing more information.
Down the line on that.
We wouldn't have entered into this partnership is.
Eternal commercial forecast work in excess of our internal ones.
And so we're expecting really good things on contracting and revenue generation.
We even have some optimism around improved deal economics, with perhaps higher capital rates.
And that should lead to it.
A healthy guidance for top and bottom line for next year.
Okay, and then last one for me is you mentioned funnel is growing nicely.
Obviously this is going to be taking over significant commercial operations, but it sounds like you're leaving them with or handing over.
A nice funnel that is sort of built up is there any kind of difference in the type of accounts that you guys were reaching on your own independently and that you're now sort of going to be handing over to be D. Is it just that the funnel is expanding nicely or are they bigger accounts are they are they different accounts from what you guys had seen previously just any kind of characterization on how that <unk>.
Oh stands as you are kind of begin this partnership there.
Yeah. It's I mean, the first thing I would say is is that in general Fino I D. A S T and E. S. T. The opportunities are growing there and a big part of that is driven because we launched again the a S. T kit last year in the height of the pandemic and you know, we're just now having the opportune.
City to really kind of get going with with the V. A S. T kit and so that Kid is a better fit in some institutions Brian to your question and so what we're seeing there is it is a different type of customer mix, maybe more academic larger et cetera, and then I would say that arc is again another.
<unk>.
As I've talked about it it's a it's a really fantastic workflow aid and the majority of our of our funnel like 90% of our funnel for arc and the evaluations that we signed which is about 15 already are in accounts, where we have no footprint whatsoever. It's.
They're not pheno customers today, they're brand new customers.
And then we'll be working as we go through the commercialization plan first of our all of our sales team will continue to drive these funnel opportunities because we don't want to lose any ground whatsoever, and then as we get to a point of integration then we'll start to handover. These opera.
<unk> and work together with BD to close them and then I think lastly, you know were real excited about the funnel exponentially expanding in a pretty short period of time based on again, the incredible footprint that that BD brings to microbiology.
Alright, thanks for all the questions congrats on the deal.
Thank you Brian Okay.
Thank you, Brian I think that's it for all the questions today.
From my side I, just want to thank everybody for the support of accelerate diagnostics I want to thank you for tuning into the call today.
I think in closing.
Just a couple of comments from my side first of all.
The market we play in.
Has been and continues to be a very sizable undress mark addressed market and microbiology Theres about 300 million I D. A S T test performed globally.
Most of these tests are performed on legacy platforms of of about 20000 legacy platforms that are out there today.
And and very few aside from the fino offer an opportunity to really address those critical specimens those specimens that need answers immediately as soon as possible and that's what Pheno does that's what arc will do and moldy to bring.
Rapid identification and susceptibility to a very important space.
It's really not a matter of if but a matter of win.
This market will be converted I mentioned theres a lot of other activity in this space people are paying attention to rapid identification and susceptibility in microbiology because it is an important need to be addressed and thats. Why we have this great partnership that we're embarking on today with BD.
Yes.
And then the last thing I would say about BD is.
Someone that's been in diagnostics for 30 years, now I've known Becton Dickinson for that long because they've been in business for many many years as we know.
They're in a company there were a company with impeccable values.
They are a company that has an incredible culture fit to accelerate diagnostics. If you looked at our culture and their culture, it's it's a tremendous fit.
We have a lot of history together as a company based on our work in microbiology, but also our leadership as well we have significant leaders within accelerate that spent many years at BD and we have a lot of mutual respect and trust already heading into this relationship.
And then I mentioned today about the tremendous synergy of our product portfolio for our customers. The patients that we serve this is a real opportunity to change the game to change things up in a very very positive way that has an opportunity to have dramatic impact on <unk>.
Patients customers and do it in a much quicker fashion.
So with that thank you very much.
As I said in my prepared remarks, we're happy to answer any questions that may not have been addressed today. If you connect at investors at a X Dx dotcom. Thank you very much bye bye.
Okay.
Okay.
Thank you ever turn today's conference presentation is now over you may now disconnect.