Q2 2023 Cerus Corporation Earnings Call
Okay.
Okay.
Good day, ladies and gentlemen, thank you for standing by and welcome to the Cirrus Corporation second quarter 2023 earnings conference call. At this time, all participants are in a listen only mode.
After the Speakers' presentation, there will be a question and answer session to ask a question. During this session you will need to press star one one on your telephone you will then hear an automated message advising that your hand is raised.
Withdraw your question. Please press star one one again.
Please be advised that today's conference is being recorded.
I would now like to hand, the conference over to Jessica Hanover fear at the Vice President of Corporate Affairs Doctor Hanover, you may begin.
Thank you and good afternoon I'd like to thank everyone for joining us today as part of today's webcast. We are simultaneously displaying slides that you can follow you can access the slides from the Investor Relations website.
IR Dot dot com.
With me on the call are Obi Greenman, Cerus, President and Chief Executive Officer, Vivek <unk> Raman jurist as Chief operating Officer, Kevin Green Here says Chief Financial Officer, Dr. Nina Mufti purest as vice President of development and Red Blood cell program leader Dr. Richard.
Benjamin curious as Chief Medical Officer, Dr. Laurence crash here as the Chief Scientific Officer, and Carol Moore, Senior Vice President of regulatory affairs and quality.
Curious issued a press release today announcing our financial results for the second quarter ended June 30 of 2023 and describing the company's recent business highlights you can access a copy of this announcement on the company website at Www Dot theorists dot com.
I'd like to remind you that some of the statements we will make on this call related to future events and performance rather than historical facts and are forward looking statements.
Examples of forward looking statements include those related to our future financial and operating results, including our updated 2023 product revenue guidance.
That operating expense saving our adjusted EBITDA goal and future operating expenses as well as our commercial development efforts expected future growth and our growth strategy future product sales potential product launches ongoing and future clinical trials ongoing and future product.
Development, and our regulatory plans and initiatives and related expectations, including the timing of these events and activities.
These forward looking statements involve risks and uncertainties that could cause actual events performance and results to differ materially. They are identified and described in today's press release and under risk factors in our Form 10-Q for the quarter ended June 30th 2023, which we will file shortly.
We undertake no duty or obligation to update our forward looking statements.
On today's call. We will also be discussing non-GAAP financial measures, including non-GAAP adjusted EBITDA.
non-GAAP measure should be considered a supplement to and not a replacement for measures presented in accordance with GAAP.
For a reconciliation of non-GAAP financial measures to the most comparable GAAP financial measures. Please refer to today's press release.
We'll begin today with opening remarks from Obi, followed by VIX to discuss recent business highlights and Kevin to review, our financial results and expectations for 2023.
And now it's my pleasure to introduce Obi Greenman, <unk>, President and Chief Executive Officer.
Yeah.
Thank you Jessica and good afternoon, everyone today I would like to begin the call with commentary about the progress we've made in Q2.
Across our full intercept portfolio combined with the ongoing expansion of our commercial business.
Significantly during the second quarter, we gained new visibility the European and U S timelines.
For intercept red blood cell program.
I mean, you as you will recall, we previously received questions from a Carpenter authority CBD MEP or ABB as part of our overall MBR process for our EU submission for CE Mark approval.
Due to the workload for regulatory authorities associated with it can be our process for device approvals in the EU.
Great Jim when we are able to have a clarification.
To review our strategy for addressing your questions.
The meeting was very positive and confirmed our approach for addressing these questions are sound and on point.
Based on the discussion of this meeting we expect MEP will accept our comprehensive responses to their questions in Q4 this year.
Assuming no further issues are identified by ABB, we expect them to prepare a positive opinion, which they will provide to our notified body CEB in the first half of next year.
Cause the MBR process because of TV has already completed its initial review of all modules of our submission. We would then expect a CE mark approval decision in the second half of 'twenty 'twenty, four which if approved will enable the rollout of the product associated with the requisite chemo vigilance program at multiple sites across Europe .
Also in June we held our scientific Advisory Board meeting for intercept Red blood cells with leaders in the field of transfusion medicine.
During this meeting we gained valuable insights into the existing unmet needs for anemia patients requiring requiring chronic red cell transfusions.
And the value proposition of pathogen reduced red blood cells.
Coming out of this meeting we continue to believe that the product profile and the immediate clinical need for patients receiving chronic red cell transfusions.
The ability to replace gamma radiation and its associated deleterious impact on red blood cell function. The key attribute of the intercept process.
Turning to the U S. RBC program, our two U S BARDA funded phase III trials.
Recipe in Red is continue to enroll patients at a good rate.
The 390 patients now enrolled in transfusion recipe, we expect to complete enrollment this year.
With patients remaining on study for 90 days after their transfusion event, we are planning on a database lock and the initial topline data readout from this trial in Q1 of 2024.
Based on the ongoing enrollment in our second U S phase III trial lettuce, we now plan to begin the modular PMA submission and HQ2025 coming in in the last module being the clinical one plan for <unk> hundred 2026.
With respect to our earlier stage pipeline as we announced in June we received additional funding of more than $8 million from the U S Department of defense to support the ongoing development.
<unk> intercept fibrinogen complex <unk> IFC.
Since receiving the initial funding award in November 2022, we have successfully scaled up to the high authorization process provided prototype materials for evaluation to the Vod and met with the FDA to define the regulatory pathway for <unk> to include additional manufacturing steps and the design of preclinical and clinical studies.
The additional contract we have now been awarded is anticipated to support the implementation of manufacturing processes required by the FDA.
Continued scale up of manufacturing and technology for awhile, the IOC products.
And development of data to support a submission to the FDA designed to enable initiation of preclinical and clinical studies.
We've also continued to work on our led based next generation of Illuminator.
And then the international Society of Blood Transfusion RSV key Congress in Gothenburg, Sweden held in person in June for the first time since 2019, we hosted customer focus group meetings with over 30 blood bankers for more than a dozen centers.
We are pleased with the excitement from the group for the hands on demonstration of the new device.
Grateful for the important feedback that our customers have provided over the last several years to guide development.
In addition, our U S research collaborators in France, given independent oral presentation at the <unk>.
Congress demonstrated the comparability of the led luminaire with the current <unk> hundred illuminator.
This new illuminator will serve as a platform for our future product iterations over the coming decade, and the intellectual property position and improved customer operating experience furthers our leadership role in the transfusion medicine deal.
With respect to our commercial business emerged from a challenging first half to expectations of growth for the rest of the year and into 2024.
Nick will provide more insights into commentary following mine.
We expect intercept by Brexit complex or IFC to play an increasingly important role as we make strong progress with our newest production partner one blood.
In advanced discussions with even larger U S blood centers for this product.
We are encouraged by the recent addition of pathogen reduced cryoprecipitate to the World Health organization or WH essential medicines list because it provides additional global validation for the utility of our IFC product.
We look forward to providing updates on our continued progress for our pipeline and commercial business in future calls.
I would now like to turn the call over to Vivek to discuss the second quarter commercial highlights and the outlook for the remainder of the year.
Okay.
Thank you Obi and good afternoon to everyone joining on today's call.
As reported in our press release earlier today, our total product revenue for the second quarter of 2023 was up significantly from the first quarter showing sequential growth of 25%.
Within the quarter, we experienced some impact on our U S customer ordering patterns associated with a temporary reduction in the FDA approved <unk> for intercept platelet kits.
Due to recent component change the FDA required six month shelf life for the kit, which led the customers rebalancing their inventory level in order to minimize obsolescence.
We did not see any reduction in share during the period, but the efforts to right size inventory levels did affect ordering pattern.
This shelf life issue is unique to the U S market because the other regulatory bodies in Europe and elsewhere I did not see the need for real time stability studies for this component change to the kit.
We are actively pursuing a regulatory filing and plan to be submitted to the FDA. Later this year designed to extend the catch up like the nine months within the first quarter of 2024, and then follow with further improvements in shelf life data quarterly throughout the remainder of next year.
We believe this will alleviate the impact on customers and allow normal ordering patterns resume supporting our expected return to growth.
Looking at the overall U S market intercept treated platelets continued to be a leading choice for patient transfusion safety and we have many strong blood center partners, who are or are on the way to becoming 100% touch and reduced platelet producers.
The recent FDA guidance on production of cold storage platelets for patients with active bleeding includes an option for preparation with intercept providing added manufacturing flexibility to our customers with extension to 2014 day shelf life.
New development will improve the availability of intercept platelets to help alleviate recent constraints in the U S platelet supply.
We continue to see increased intercept adoption at leading hospitals across the country as awareness of the clinical benefits of pathogen reduction Bill.
Beyond simply the FDA bacterial safety guidance compliance.
It's been reduced platelets offer unmatched protection against a wide range of potential infectious threats.
We remain committed to ongoing partnership with our U S blood center customers to ensure that they can provide their hospital customers with the best possible product.
Outside of the U S. We continue to be pleased with the ongoing rollout of intercept platelets by Canadian blood services CBS more than 25% of all CBS platelets are currently in a subtree with four of their eight manufacturing sites now live with intercept and activities are on track to complete the rollout in the first half of next year.
Our ongoing validation work with Hema, Quebec is going well and we're excited to broaden access pathogen reduced platelets to our neighbors to the north.
In Europe , we experienced an acute headwinds in France, and Belgium, due to a reduction in platelets collections related to donor availability.
As you will likely recall these countries utilized pass through reduction of <unk>, 100% of their platelet supply.
So no impact on intercept share in these regions.
Also during the quarter.
Actions in Russia impacted our EMEA a franchise we are in the process of applying for a license to account for these sanctions and continue to monitor that situation closely to ensure that we can help patients gain access to our technology.
We continue to see strong interest in IFC. We are now fully staffed on the sales side and are able to access many more hospitals to drive awareness and demand.
In parallel we are working closely with our blood center production partners to ensure the supply of available and demand increases.
Most recently our partnership with one blood has been particularly productive as their commitment to making ISP flexible to hospital customers has been strong.
We look to replicate this experience with other partnerships and to this end we are in discussions with other large U S blood centers for IC on.
On the hospital provider side the level of clinical interest in IFC is encouraging and we continue to see major medical centers onboard deposits.
During the quarter as there'll be noted we enjoyed a very strong showing at the recent ICT Congress in Gothenburg, Sweden at.
At the Congress, we were able to engage with many of our customers clinical trial partners and industry collaborators and gained substantial positive feedback with respect to the complete intercept product portfolio.
During the scientific sessions, there were several intercepts focused talks in which users presented compelling data.
Both on the routine use experiences from intercept as well as developmental programs such as the lead illuminator and intercept rbcs.
Dr Rahm share CEO of Canadian Blood services provided positive feedback about their journey to date and deploying intercept platelets across our service area.
A step back it is clear that we continue to make meaningful strides across the globe and are accruing meaningful wins as we push to ensure access to safe blood products.
While we saw strong sequential growth in Q2, we still face some headwinds in our commercial franchise.
That said, we remain optimistic about the outlook for the second half of 2023 and for the resumption of meaningful growth in the years to come with each passing quarter. We can see more reward validation of the clinical benefits of pathogen reduction for platelets and while we would love for things move faster, we are experiencing real momentum in our U S. IFC.
Yes.
I look forward to providing updates on our progress in the coming quarters.
I will now turn it over to Kevin.
Our results and outlook in more detail.
Thanks, Vivek and good afternoon, everyone.
Today, I will be discussing our financial results for the second quarter.
Our product revenue guidance for the year.
Progress on the levers, we have and will continue to utilize as we work towards reaching adjusted EBITDA breakeven by the end of this year.
We posted second quarter 2023 product revenue of $38 9 million, representing a year over year decrease of 5%.
Primarily due to the factors noted by five acre earlier.
In the U S product revenues were slightly down by 5% year over year, but sequentially. We saw a significant step up from Q1 a 45%.
Confirming our earlier expectations that the business would begin to see a rebound.
More historical levels of growth.
Yes.
In EMEA product revenues were down 9% year over year and 4% sequentially.
Year over year, FX rates provided a slight benefit of around 800 basis points.
In addition to our product revenue and not included in our guidance.
<unk> contract revenue totaled $8 9 million in Q2 compared to $6 $6 million for the prior year period.
Included in our government contract revenue are the revenues recognized as reimbursement under our contract with BARDA.
Our agreement with the FDA to further whole blood pathogen reduction.
Our agreement with the U S Department of defense for Leo IFC.
As noted in our earnings release, we are pleased that during Q2. The Dod has agreed to increase the funding and scope of this program and awarded US with an additional $8 7 million.
Bringing the total contract value to $17 8 million.
Turning now to our product gross profit and gross margins.
Our second quarter product gross profit was $21 3 million.
Consistent with the prior year period.
Product gross margins for the quarter were 54, 9%.
300 basis point increase versus the prior year period, and generally stable from Q1.
Moving on our second quarter operating expenses, which totaled $41 9 billion were $7 $1 million higher than the prior year period.
It included $5 $7 million of noncash stock based compensation.
By specific expense side.
Quarter R&D expense totaled $19 2 million.
<unk> to $15 2 million during the prior year period.
We had increased R&D activity for the development of our next generation illuminator.
Along with increased government reimbursed activity associated with our BARDA FDA and Vod agreements.
In addition, we recorded increased costs associated with developing data and answering questions from regulatory agencies, namely the FDA surrounding our existing products.
Second quarter SG&A expense was $20 5 million.
Compared to $19 5 million during the prior year period.
The increase in SG&A expense was primarily driven by higher <unk> sales personnel to drive acceleration of our IFC business and to a lesser extent general inflationary impacts.
Also included in our operating expenses for the second quarter was a one time restructuring charge of $2 $1 million related to a modest reorganization of resources during the quarter.
Providing us with additional operating flexibility to bolster our drive towards adjusted EBITDA breakeven.
We expect to take another restructuring charge in Q3, as we cease use of certain leased real estate as part of the comprehensive restructuring plan.
Going forward, we estimate that the cumulative effects of these initiatives will generate approximately $10 million in operating expense savings on an annualized basis.
On the bottom line reported net loss attributable to <unk> for the three months ended June 32023 was notably higher when compared to the same period in 2022.
Net loss attributable to <unk> for Q2 totaled $13 3 million.
Or <unk> <unk> per diluted share.
I'm gonna make it a $14.5 million compared to a negative $6.1 billion in the first half of 2022.
As we look to the second half of the year and beyond we are reaffirming our efforts to achieve adjusted EBITDA breakeven this year.
We expect a second golf will provide a returned a year over year growth on our top line and we expect fairly stable gross margins.
As I noted earlier, we undertook a restructuring effort during the second quarter with an eye on our key commercial priorities and development initiatives.
We expect this restructuring will provide some relief to our operating expenses and cash flows.
And taken in combination we believe the aforementioned are foundational components to meeting our adjusted EBITDA cool.
Turning to the balance sheet and cash flows.
We ended the second quarter with a strong cash position of $84.5 million cash cash equivalents in short term investments on the balance sheet.
In terms of cash utilization or cashews from operations was seven $6 million for the second quarter.
Prepared to approximately $350000 during the prior year period.
Clearly the first half provided some operational challenges we expect.
And the second half of the year.
From a cash flow perspective, a byproduct of those challenges was an over production of inventory as you can see on our balance sheet.
We are moderating production in the second half of the year and expect that with the anticipated growth in sales we will reverse this cash flow trend by monetizing the first half over production.
Given the changes in U S customer ordering patterns related to the temporary impact of the platelet get reduced shelf life, coupled with market dynamics in France, Belgium, and Russia, we're adjusting down our full year 2000, twenty-three product revenue guidance to a range of $160 million to 165 million.
<unk>.
We want to point out that we have not lost market share and continue to see strong demand failures platelets in the U S and EMEA and we believe that we remain on a trajectory to return to growth in the back half of the year and into next.
Furthermore, as I previously mentioned, we remain committed to achieving adjusted EBITDA breakeven by year end 2023.
And in light of lowered product revenue guidance and continued macroeconomic conditions, we have been and will continue to be very focused on the lining our operating expenses with our key priorities, which.
Which include ongoing capacity expansion and supply chain security.
Global regulatory submissions for our next generation led the illuminator.
And potential red blood cell licensure in EMEA, along with government reimbursed activities.
And last but not least support of our commercial infrastructure.
With that let me turn the call back over to the operator for Q&A.
Thank you.
Well now conduct a question and answer session as a reminder.
Ask a question east.
One one on your telephone and wait for your name to be amount.
Can withdraw your question. Please press star one one again please.
Please stand by while we compile the Q&A roster.
Our first question comes from the line of Jacob Johnson at Stevens. Your line is now open.
Our first question comes from the line at Jacob Johnson at Stevens take up your line is now open.
Hey, sorry, I was on mute.
Everybody apologies, maybe first is on that the 5 million reduction in guidance. He just talked through you know how much of that it's related to the inventory and how much of that is related to Europe .
[noise] can you hear me.
[noise] Thanks [noise].
Sorry about that.
Yeah, sorry.
The 5 million change in guidance can you just.
In terms of how much that's related to inventory and then how much of that is related to.
Europe et cetera.
Yeah. Thanks.
Handle that.
[noise] sure I'd be happy to.
The main component of that is related to.
Gentlemen, and inventories and the loss associated with the <unk>.
Particularly by Europe .
But that certainly was the main.
Main headwind, we face in the first half of the year.
C normalised ordering patterns.
Police are confident.
Growth in the back half of the year.
But that's kind of where the majority of that comes from.
Okay. That's that's helpful. Thanks, perfect and that's just awful.
10 million a cost savings you expect to realize.
Can you help us understand how much that's maybe coming out of Cogs versus as soon as we think about modeling that.
Yeah first name.
That directly but I wanted to correct something.
<unk> remarks.
F X impact that we realized was 80 basis points.
Per cent rather than eight.
800, so I apologize for that.
But to answer your question, specifically, we don't expect that the savings is going to come from.
Going to come from operating expenses.
Come from both R&D and SG&A.
You know on an annualized basis. After we cease use of some of our real estate.
We'll see you at least 10 billion annualized savings.
Okay, Great Thanksgiving.
I'll leave it there.
Thank you thanks.
Please stand by for our next question.
[noise] next question.
Matt Blackman a cycle. Your line is now open.
Good afternoon, everybody can you hear me okay.
We can hear Ya.
I can hear you.
Okay and just.
Yeah, just check and I know well thanks for taking the question or questions. Maybe just started and I was hoping you could maybe expand a little bit more on your reply to that that question. I think you commented about seeing a return to normalize ordering patterns I think it made the back half of the quarter make it really here and there.
Could you just sort of expand on that a little bit and so again.
Again, why that gives you confidence that you know the issues that you saw.
Out here in the second quarter are sort of largely behind you and then I've got a couple of follow ups, Yeah, sure I'd I'd be happy to and certainly welcome.
Kevin Duane as well thanks.
The single.
Just reason for confidence.
Do with the fact that we've done no degradation sure.
Really be impacted short shelf life was a function of just rebalancing inventory then.
Cause you know you know just given the nature of our business sorry deployment organization, we work very closely with our partners.
Right into their operation, how they produced product how they distributed product.
As we come to appreciate that they sort of reached.
Normal lives level of inventory with are able to feel good about their ability to meet platelet demand and also manage inventory we've seen.
Return it normal ordering pattern.
Which again gives us confidence in terms of outlook for growth.
But the single largest driver my confidence in all of this as we saw no reduction in Sharon Patsy reduction continues to be the standard of the current terms about platelet safety is maintained in the U S.
[noise], Okay, and then can I just follow up and ask you know in the first part.
The the Red cell, Oh, sorry, Red Cross inventory draw down just did that play out here on the second quarter as expected and is that largely behind you and I do have one follow up after that I just Wanna make sure.
Cross, where we stand on that front.
Yeah sure absolutely so to answer the first part of the question you asked.
About that I think back in April that laid out largely as we anticipated the red Cross continues to be a very strong strategic partner they've indicated that they're moving toward.
I as in their entire placement franchise or an afternoon reduction.
Sure.
Nearly there at this point in time and now we're seeing continued strong partnership for them. So I think the way you describe it as yet his accurate.
Okay and then my last one I appreciate you taking all my questions as we move past this let's call. It inventory realignment period here in the first half of twenty-three how would you have to think about just in general normalized growth trajectory for the business until we get Red cell contribution I guess in Europe in 2025.
S 2027 timeline, just anything to help frame how that.
Business should grow here over the next period of waiting for the.
Expanded indications.
Approvals such banks.
Sure happy doing again.
At 10 minutes to jump in.
Danny.
Know in advance of bread sounds if you think about growth opportunities kind of stepping back in on a global basis, there continue to be significant market where.
Initiating interaction and pointless or that has yet to start.
Talked about in the past or joint venture partnership in China with C. B K.
Emily major markets in Western Europe , and Latin America that as of yet.
They're still had room in the U S.
Markets, a lower standard of care and.
We're sort of Internet posted guidance complains period, there's some opportunities for growth.
Less pleasant market and then I think about an independent driver that's gonna that's been a significant area of focus and we see real reasons for enthusiasm and momentum mess in the U S IFC franchise, where.
<unk> our hospital facing sales theme, we're finding.
The hospitals to be increasingly you know something that's growing increasingly we're getting a lot of clinical feedback and we're onboarding really influential hospitals in terms of utilizing the IFC product.
Those would be the areas in advance of red cells, where I see as being able to deliver top line growth and again why we feel confident that we are in a position, where we're seeing a normalization of ordering patterns and a return to growth for the overall franchise.
Thanks, Thank you covered it as one other thing I that is just.
<unk> comments.
Talked about the relationship with one blood or new production partner in the.
<unk> with regard to a channel.
They have existing obviously a hospital contracts around one components.
I can insert IFC directly into so we don't have to worry about hospital contract within that context, and so I'm really excited about the progress of that they're making as well as progress or cost a lot of academic hospitals across the U S.
[noise] appreciate it thank you I'll get back to you.
Okay.
Thank you for your question. Please stand by for our last question.
[noise]. Our last question comes from the line of Joshua Jennings as television Cohen, you're lying.
Alright, great. Thanks, good afternoon.
Hoping that just get an update on the build out of the U S sales force the hustles facing reps and I know, it's still very early but any.
Any.
Anything you can share just on the impacts.
Filled out in two Q, both in terms of drummer.
Drumming up.
See demand and adoption and also just the potential early impacts of driving hospital demand for intercept platelets.
Trickling up creeping up to the to the blood centers of their customers increased demand.
Yeah. Thanks, Josh Uhm as we have the use commercial team out here a couple of weeks ago.
I guess I'll turn it back over to the bank since he was in the midst of all those meetings, but it was really a great discussion and interaction with.
It is possible customers that.
<unk>.
A little more contacts for on that yeah.
Yeah sure I'd be happy to I guess, taking a step back you know one of the things Johnson, it's very encouraging with just that.
The volume of compelling C d's and resumes.
Receive only posted those rules.
C. As you know as a more of a classic physician preference now while there are multiple stakeholders in the decision making process one of the key starting point strong clinical champion.
Lucy's benefit in her his practice in terms of being able to impact patients and so we were able to get rest from a variety of different specialties to come in who have relationships with the C V surgery trauma <unk> b.
That was encouraging in and of itself we're already seeing an.
An impact in terms of really an order of magnitude stuff up with respect to hospital visits engagements and as we get clinicians onboard we're seeing a lot of peer to peer.
Marketing, which is pretty meaningfully impactful as.
Indicated we brought the fully higher sales team together in California.
Bought a month ago now.
And we did cross training advil.
I see and Slainte listen, we certainly see opportunities when they're in hospitals to have discussions about platelets as well.
Further drive demand there, we're seeing a lot of our.
Use our hospitals being the ones, who are raising their hands and I see so there are a lot of cross pollination.
Opportunities down we're trying to take full advantage of that so it's early days still as you pointed out but.
We know that demand generation that clinical awareness falls upon us in terms of responsibility and a sales team is a huge asset in terms of being able to deliver against that.
Right now I just wanted to follow actually and I wanted to follow up on.
I know you're not giving out.
Hard metrics on the IFC launch and this is a foundation building year, but maybe you could just help us think through the first half of the year.
Head of internal expect the expectation for 2023, and then any update on any clinical studies or use case action, that's going on I think you've called Outta.
Academic Medical Center in New York City, that's running something in Windows use case or clinical studies could be more impactful to the to the ramp.
The option.
IFC, thanks, and the United States. Thanks.
Thanks, Josh So I think as the rollout this year has unfolded.
Or seen the type of interest from an academic centers that were.
Back pain and that seems to be wrapping his real momentum behind peer to peer interactions and we're obviously trying to facilitate those so I think the scene major academic centers like UCSF at Ohio State and others really adopt the technology and then rolled out much more broadly within their institutions.
Is really.
Compelling and then the other thing I mentioned prisoner of one blood was.
Does that channel.
Combined with our existing sales team really opens up the market. It's not just the hospital contracts that exists but also there.
Turnell teams and as we expand those types of partnerships, even larger centres institutions in one blood.
Not really gives us access across the entire country two major hospital.
Institutions.
Provide a little bit of color around the study that we're doing.
What the visual observations are.
We have a study which is running in New York.
Cornell Medical Center.
And what we're seeing <unk>.
<unk> can be delivered from time, a order to patients in an average of 16 minutes. So we have dramatically changed the pattern.
Transfusion use for this product will be well received in that savings and we're rapidly accumulating data.
Have winter this year or early next year.
Great. Thanks, so much.
Josh.
Thank you. This now concludes the question and answer portion of our call.
To pass the call back over to O B Green empathy for closing remarks.
Well. Thank you again for joining us today and for your interesting serious we look forward to update you on our continued progress through the rest of the year.
Thanks, a lot for management.
Thank you. This concludes today's conference call. Thank you for participating you may now disconnect.
Mmm.
[music].
[music].
[music].