Q3 2023 OPKO Health Inc Earnings Call
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Hello, and welcome to the Opco Health third quarter 2023 financial results Conference call. All participants will be in listen only mode should you need assistance. Please signal a conference specialist by pressing to Starkey followed by zero.
After todays presentation, there will be an opportunity to ask questions to ask a question you May Press Star then one on your Touchtone phone. Please note. This event is being recorded I would like now to turn the conference over to Yvonne Briggs. Please go ahead.
Thank you operator. Good afternoon. This is van break with L. A J. Thank you all for joining today's call to discuss the Opco Health's financial results for the third quarter of 2023, I'd like to remind you that any statements made during this call by management other than statements of historical fact will be considered forward looking and as such will be.
Subject to risks and uncertainties that could materially affect the company's expected results.
Forward looking statements include without limitation the various risks described in the company's SEC filings, including the annual report on Form 10-K for the year ended December 31, 2022 and in subsequently filed SEC reports. This conference call contains time sensitive information that is accurate only as of the date.
Of the live broadcast November six 2023, except as required by law Aimco undertakes no obligation to revise or update any forward looking statements to reflect events or circumstances. After the date of this call.
Before we begin let me review the format for today's call Dr. Phillip Frost, Chairman and Chief Executive Officer will open the call Doctor Elias Zerhouni, Vice Chairman and President of Opco will then provide an overview of Opco is pharmaceutical business as well as bio reference health.
After that Adam mogul Opco CFO will review the company's third quarter financial results and then we'll open up the call to questions now I'd like to turn the call over to Dr. Frost.
Good afternoon, and thank you for joining us today.
The third quarter was quite active at Opco.
Several key accomplishments.
September we announced that motor axe was awarded a contract from the biomedical advanced research and development authority.
No one is BARDA to develop novel multi specific antibodies against viral infectious diseases that are deemed to be public health threats.
The BARDA contract provides $59 million of initial funding for the development of multi specific antibodies against known variants of Sars Cov two.
And then the other $109 million and funding may be available to develop multi specific antibodies targeting other viral antigens.
Pathogens such.
Such as influenza.
This non dilutive funding provides <unk> with significant financial support to advance its extremely promising pipeline with the potential to provide benefits for patients worldwide.
This BARDA award represents a second major cooperation for <unk> and 'twenty to 'twenty three and.
And as further validation of its differentiated and valuable technology platform.
You may recall that earlier this year vortex entered into an exclusive worldwide license and collaboration agreement with Merck to develop its nanoparticle vaccine candidate for Epstein Barr virus.
It's Ryan <unk>, our once weekly injectable growth hormone therapy. It is now approved in over 48 countries, including the U S. As we announced in June.
Fraser, our global commercial partner launch in general in the U S. In August.
In addition to launches today and over 23 major markets, including Japan, Germany, the United Kingdom, and all the other priority global markets.
We expect to see a material ramp up in sales where and in general as far as your increases its market penetration globally.
And our Opco Biologics unit and Israel, where in general was the boat work is continuing on other long acting peptides utilizing new technology. One G. L. P. Two to treat short bowel syndrome as being developed into a once daily oral form.
And Tara, whose oral peptide delivery system containing parathyroid hormone recently successfully completed a phase two trial.
We're also considering work with Antero and one of her Occidental module and peptides for weight loss.
Our profitable.
Our Bureau America unit continues to perform well and so I was fine Tech are small specialty API company in Israel.
Air drain our pharmaceutical development and manufacturing company and Waterford, Ireland is also doing well and is about to embark on our growth program.
Hey, Barbara referenced south our cost cutting initiatives continue.
We continue as we are focused on returning this segment to profitability in the near term.
In addition, we're working to increase revenue by enhancing our test menu offering and expanding our customer base.
With that overview I'll turn the call over to Elliot to provide further discussion and commentary on our pharmaceutical and diagnostic businesses Oh, yes. Thank.
Thank you Phil and good afternoon, everyone.
Phil said, the third quarter has been quite busy for both the pharmaceutical and diagnostic segments of Aqua metals.
As Phil mentioned, we were delighted to announce the significant contract awarded to <unk> therapeutics by the Biomedical advanced research and development Authority BARDA.
You should know that BARDA is part of the administration for a strategic bear witness to the response and the U S Department of health and human services and this funding as a part of project Nexgen, which is dedicated to advancing innovative vaccine and therapeutic programs against COVID-19.
The contract includes an initial $59 million to enable research development and clinical evaluation phase one study of potent.
The old modem multi specific antibodies against known variants of Sars Cov, two which remain a persistent threat for the millions of immuno compromised patients who may not develop sufficient immunity after vaccination.
And we will need that.
Support if you will for treatment and prevention of COVID-19.
Our proprietary I'm star multi specific antibodies also.
Reduce the possibility of viral resistance, which has made previous mono specific antibodies isn't effective overtime.
<unk> is a flexible plug and play platform able to incorporate up to six independent antibody binding sites into a single molecule.
And this capability dramatically expands the prevention and therapeutic potential of antibodies against many viral diseases, while enabling rapid responses to prevent or treat emerging infections and viral viral variance.
Based upon the achievement of certain milestones additional funding of up to $109 million may be available from BARDA to develop other multi specific antibodies targeting other viral pathogens such as Ensco Enzo.
And as far as the research program gene based delivery methods for the multi specific antibodies will be developed using mrna or DNA vectors.
Supplements the body's natural protein production processes.
The BARDA contract as Phil mentioned came about six months.
After the announcement of our collaboration with Merck to develop M. D X 20, 201, our Epstein Barr virus multi valent nanoparticle vaccine.
We were pleased to have secured these two major strategic relationships to date and believe this achievement further validates <unk> intermediate voltage targeting approaches are increasingly interested in our proprietary technology.
As a quick overview R E D vaccine program with Merck Leverages more lax nanoparticle based vaccine platform, enabling simultaneous immunization against four major EBV proteins. This multi variant approach holds potential to protect against infection by this virus, which.
Affects up to 95% of the global adult population during their lifetime.
Importantly over 200000 cases of related cancers per year and multiple sclerosis.
Associated with infection by this virus and we're now working with our partner Merck Merck when I N D, enabling studies, which are progressing extremely well.
In addition, our anti viral multi specific antibodies program focused on the treatment and prevention of HIV is progressing.
In partnership with the NIH are first generation candidate is being evaluated in the phase one trial and clinical data will be reported in near future.
We have also developed next generation candidates for long acting HIV prevention and treatment.
And offer up to a 10 fold improvement in potency and breath of anti viral activity.
The majority of globally circulating HIV and strides. This is an important program as there are currently no vaccines oriented bodies that can provide long acting protection of treatment for patients who require treatment options beyond small molecule based therapies.
In parallel we have also advanced our immuno oncology programs focused on hard to treat solid tumors as well as leukemia and that's all of them are.
Our multi specific antibody candidates are designed to optimize T cell function, while preventing tumor.
Antigen escape.
These programs are now in the final IND, enabling preclinical stage with the expectation that at least one program will enter the clinic in 2024.
I also would like to reiterate Phil's comments about in Gela, we're delighted with the continuing momentum of Pfizer's global launches of the long acting growth hormone treatment, including the U S. In August and Adam will provide further detail.
On the financials and we look forward to keep you keeping you updated on the progress here so.
So now let me turn to reality.
Our treatment for secondary hyperparathyroidism more H is.
S. H P T in adults with stage, three or four chronic kidney disease, she KD and low vitamin D levels sales increase over the prior year quarter as the number of prescriptions continue to grow.
More importantly recently our team presented several posters highlighting favorable right all the clinical data.
The American Society of Nephrology kidney week.
One poster reported late breaking clinical data, indicating the early sustained and effective treatment of secondary hyperparathyroidism would reality is associated with significantly slower progression of CK D. In pre dialysis patients in effect delaying the onset of dialysis.
Another poster presented data demonstrating that effective control of paid search P. T was achieved with reality and both randomized clinical trials and in the real World clinical evidence trial supporting early initiation of research B T treatment would reality to delay disease.
Question.
In addition, a phase III clinical trial with reality in mainland China began in late Q3 managed by Nicoya Therapeutics of Macau and who's the uncles partner for the development and commercialization of rail in China, Hong Kong, Macau, and Taiwan for the treatment of.
Secondary hyperparathyroidism in patients with stage, three or four C. J D.
As mentioned by Phil a pipeline of long acting products similar to our gondola engender remains active.
You heard about Aqua biologics entering into a research collaboration agreement with Terra Bio limited to develop oral peptide tablet formulations for obesity in intestinal malabsorption sundrops.
Under the agreement <unk> will supply is long acting G. L. P. Two peptide and certain Occidental modulus analogs for the development of oral tablet formulation music and terrorists proprietary oral delivery technology.
Treatment with glucagon like peptide two.
Hello logs has been shown to improve the absorption of nutrients in patients with short bowel syndrome, and reduce parents' rural support requirements or symptom modulating.
Naturally occurring peptide hormone founded the intestine with glucagon like peptide.
Peptide walk G. L. P. One and glucagon dual agonist activity that suppresses appetite that the juices weight loss and we have developed several proprietary bona fides.
Okay since a bunch of analogs as potential candidates for treating obesity, including an injectable regulated peptide that demonstrated significant reductions in weight loss and decreased plasma triglyceride levels in the form of a 20 patient phase II study.
Our injectable it looks at the budgeting analog which completed these phase two studies in the U S is being advanced by litter med.
Partner in Asia to initiate phase III studies for diabetics and obesity in China and for diabetics in Saudi in southeastern Asia in the first quarter of 2024.
Lieberman also plans to launch clinical studies of the long acting factor seven which uses optical biologics C. T. P technology in the second quarter of 2024.
Now, let me shift gears and and I would like to turn to our diagnostics segment.
We've made great strides and we have reduced our operating loss by 41% sequentially from Q2 to Q3 2023 through both expense reduction and revenue growth.
So at 41% improvement from Q3.
Relative to Q2 and.
And we continue to implement our reach initiatives to improve efficiencies enhance productivity and reduce costs.
We're particularly focused on driving growth by a reference in our higher value.
Specialty testing segments, including oncology women's health.
Spittle in health system, as well as urology through our proprietary offering but for case core whilst continuing to see growth in the standard clinical and central clinical testing.
We have.
Finalize new service agreements with several new large clients starting in the fourth quarter.
And particularly in our oncology Division Gen Paas, which continues to bear to build what I consider best in class cancer testing portfolio.
Launching innovative testing.
That is.
Clinically relevant to both physicians and patients as well as pharmaceutical companies and clinical research institutions. Additionally, in the fourth quarter, we will be launching a cutting edge.
All of this recombination deficiency tests.
Which is really important to provide insights into genomic instability and.
And because PARP inhibitor therapies are really related to the presence or absence of genomic instability in terms of their efficacy.
It will really guide the eligibility of patients for PARP inhibitor therapies for various cancers.
We're also set to unveil an expanded hematological malignancy panel that reinforces our position as the leader.
As a leader in this area.
We've also launched a new service line offering.
As to our high quality reliable and comprehensive data assets and analytics, we realized that we had value embedded in the.
Thousands of tests that we have to perform in genomics and in this offering caters to a wide range of pharmaceutical and clinical research organizations and has already led to new sources of organic revenues.
The forecast score test continues to perform.
Portal by its recent inclusion in the 2023 American Urology Association guidelines for early detection of prostate cancer in follow up after PSA screening and for initial and repeat biopsy risk stratification.
Okay score also received additional coverage under Avalon Health care solutions, which manages many state and regional health plans as well as just aetna's Medicare advantage plan and emblem health.
Bio reference has also expanded its market access and our team has also secured new key payors participation agreements in recent months, including in network status with care source, one of the largest managed Medicaid payer in the country.
As well as all of emblem health stations.
And in parallel our revenue collection processes continue to make great strides since the launch of our revenue cycle management program in Q4 of last year.
So in conclusion, we expect that these efforts will further improve financial metrics and return this segment to profitability in the next few quarters.
I will now turn the call over to Adam legal to discuss our third quarter financial results out of them.
Thank you Elliot and good afternoon, everyone, starting with our pharmaceutical segment revenue increased to $46 $9 million for the third quarter of 2023 from $36 $9 million for the comparable period of 2022.
Revenue from reality, and our international pharmaceutical businesses increased by $8 $3 million, reflecting improvements in overall prescriptions in that price as well as improvements in our foreign currency exchange rate in Chile and Mexico.
Further revenue increased as a result of our gross profit share payments from Pfizer due to increased revenue from the hgh franchise in the European and Japanese regions before considering any U S profit share generated from the launch of in general in the U S. As a result of the initial launch in mid August.
Pfizer is the lag in reporting our gross profit share amount and as such none are included in our third quarter results, but will be caught up in future periods.
Costs and expenses were $72 $3 million for the third quarter of 2023 compared to $65 $2 million for the 2022 period.
Reflecting principally increased revenues and the cost associated research and development expenses for the third quarter of 2023 were $18 $9 million compared to $17 6 million for the comparable period of 2022.
This increase reflects activities for our moat X development programs, partially offset by decreased spending on our N. Gen low development activities.
The resulting operating loss for the quarter ended September 32023, it was $25 $4 million or $2 $9 million improvement from the operating loss of $28 3 million for the third quarter of 2022 ammo.
Amortization expense related to intangible assets was $16 5 million for both the 2023 and 2022 quarters.
Moving to our diagnostics segment, we reported revenue.
Of $131 $7 million compared to $142 $9 million for the 2022 period. This decline reflects lower COVID-19 testing volumes.
Costs and expenses decreased by $31 6 million to $160 8 million for the third quarter of 2023 down from $192 3 million for the 2022 period.
Operating loss for our diagnostics segment improved by $24 million or 41% to $29 $1 million compared with $49 5 million for the prior year.
Depreciation and amortization amortization expense included an operating loss rate point for an $8 $7 million for the 2023 and 2022 periods respectively.
Sequentially revenues increased by $4 6 million or three 6%, while costs and expenses declined by $10 $5 million or 6%, reflecting the focused commercial efforts and expense reduction initiatives Elliot described earlier.
The team at bio reference continues to focus on growing the specialty lines of business, while reducing costs and expenses, while enhancing operating efficiencies continue to improve our operating margins and return to profitability.
Turning to our consolidated results for the third quarter, we reported an operating loss of $64 $4 million compared to $87 8 million for 2022 quarter net loss for the third quarter was $84 $5 million or <unk> 11 per share compared to a net loss of $86 1 million or 11 cents per share.
Sure the 2022 quarter.
Net loss for both periods were negatively impacted.
By the Mark to market losses from our.
And our holdings in <unk> stock with declines of $8 3 million and $30 6 million respectively. While the 2022 period, but then it from an income tax benefit of $40 million.
As we look at the quarter ahead, we're providing the financial guidance with the following assumptions for our pharmaceutical segment for the first nine months of 2023, Pfizer reported approximately $349 million of global Gina Trump himself for the fourth quarter, we had assumed.
$8 million to $10 million and gross profit share from our partnership with Pfizer.
We assume a stable foreign exchange rate for ex U S pharmaceutical business.
And we expect R&D expenses to reflect higher activities related to <unk>, partially offset by our recently announced BARDA agreement as well as lower costs and expenses related to the wind down of our clinical operations from the ongoing open label pediatric extension studies for in general.
For our diagnostics segment, we have assumed consistent core testing volumes with growth in our higher margin oncology women's health and your rent <unk> specialty lines of testing as well as a slight increase in the average per patient collection of mountain dew or due to our revenue cycle management initiatives, partially offset.
That by the impact to the year end holiday season.
Whether we anticipate our costs and expenses in the diagnostics segment to be aligned with the sequential quarters level of spend.
As a result, we expect the following for the fourth quarter total revenues between 170 and $180 million revenue from services between 126, and $132 million revenue from product sales between $33 million and $36 million and other revenue.
New between eight and $12 million inclusive of the estimated as their gross profit share.
We expect Q4, 2023 costs and expenses could be to be between 235 and $240 million $5 million.
<unk> R&D expense between 18, and $22 million and depreciation and amortization expense of $26 million.
That concludes our prepared remarks. Thank you all for your attention and now operator, let's open the call for questions.
We will now begin the question and answer session to answer to ask a question you May Press Star then one on your Touchtone phone.
If youre using a speakerphone please pick up your handset before pressing the keys.
To withdraw your question. Please press Star then two at this time, we will pause momentarily to assemble our roster.
The first question comes from Jeffrey Cohen of Ladenburg Thalmann <unk> Company. Please go ahead.
Oh, Hey, good afternoon, and thank you for taking our questions.
Hey, Jeff couple coupled to Starwood so.
Is is the phase III from Nicoya available.
Online as far as any discussions regarding endpoints and timelines of the trial and any flavor on the trial as far as a number of enrollees in and how that's going or number of centers and how that's going.
Hi, This is Charlie Bishop the Ah trial in China has only very recently begun so we don't have.
Have a good estimate as to the timeline and how recruitment is going to go.
Haven't released information on the trial design or the total number of subjects that are going to be involved.
But that could change during the course of the study.
Okay got it that's helpful and I guess, one for Adam as far as the assumptions for for Q4.
Can you talk about the and journal of revenue versus Q3.
Assuming then.
Those are unchanged at four nine in one four then you're talking about.
Greater than 2.7 mill from the U S and I guess, that's the first question of coupled with that maybe talk about the timeline of.
Pfizer payments from from Q3 is or isn't one quarter in arrears or are we don't know yet yes.
Yeah, So it's always going to be one quarter in arrears from the cash payments coming in from the we had about $5 million in sales without any any inclusion from the U S.
And in the guide we gave today was eight to 10 for the fourth quarter.
So you know I think you can you can imply that the math there.
Okay perfect. That's very helpful and then I.
I heard stable on FX those are your assumptions for the fourth quarter.
The third quarter.
That's right.
Okay got it and then.
I guess fine with me as far as the income tax benefit of $40 million come back spend in terms of the write downs on G X.
Can you use that did you use any of that and how what are the parameters around using that.
So that benefit was actually that came from last year, but we would be able to use them. When we dispose of the shares but but not during the interim.
Okay, you can take the last one sure sure. So okay got it and then.
Could you make available or is that on your website to chew posters that were presented at ash and she thinks about.
Yeah, they should be up there, Jeff, but I'll I'll make sure you get them.
Okay, perfect, but those are for us for now thanks for taking the questions.
Thanks.
Yeah.
The next question comes from Maury Raycroft from Jefferies. Please go ahead.
Hi, Thanks for taking my questions.
I was going to ask one on in general to just wondering if you anticipate being able to break out in general U S revenue and profit share details in the fourth quarter update or more like sometime first half 'twenty four and is there any perspective, you can share on how the U S launch is going so far.
So the as it relates we won't break the region's out individually.
Going well, we'll tell you what the total amounts are you know it's.
Not just related to one country or the regions or kind of split the globe in the third so any one country is a is not going to be broken out for the profit share amounts that we talk about as.
As the launch goes you know it's early days I think that the Pfizer team has plans to get on formularies as quickly as possible, which is the major lift in any any U S launch but.
Now we're feeling we're feeling good about the way the product is has grown in the international markets and expect the U S should follow suit.
Okay. That's helpful and are there any any more specifics you can share on your collaboration with incur a buyout for oral development of your jump Youtube peptide and accident My Julien analogs, specifically is there any more you can pan the economics and the timelines for next steps.
And yeah I'll stop there.
Oh the relationship is in a very early stage and so far we're cooperating with the idea that we will be partners in it but we haven't defined in financial terms exactly what that means.
Got it understood and I know there are a couple of studies ongoing with leader Mad two and wanted to just check on those if theres any perspective or a status update on those studies you can provide.
Well those are supposed to start in the next quarter.
Yeah.
Okay. Neither met studies both for the.
For the factor seven in the second quarter and the other in the first quarter.
It does got it 24.
Okay.
And maybe last question relate to U S. Bio reference you provided some good perspective on the new products and market segments and I'm talking about the expanded customer base.
Menu aimed to get to a profitability in the next few quarters, what specific goals either on the revenue or expense side are you aiming to achieve the next few quarters that we should be focused on.
On the revenue side.
You know the one thing that we wanted to increase the volume that goes through our infrastructure.
Breaking even means having enough volume to have an optimal.
Our profile, so that's and we have a plan to increase the daily.
Accessions.
By a minimum of 2000, and reaching full 5000, which will bring us to breakeven maybe like Oh.
Territory.
Above zero. So that's the quantitative objective in terms of the qualitative we will be announcing all the.
New customers, we signed in particular, there was a policy over the next few days to weeks.
And that really brings a different aspect because it changes the revenue per accession.
And that's what we're aiming for already reached a.
A better number in the third quarter than we did in second quarter and hopefully that would be the next parameters that we will track the revenue per accession.
And then when you include high value tests like the oncology test them and.
The specialty tests that number should go up and come to our cost number and we will continue to bring our cost per test down as well. So those are the three pillars. If you will.
The fourth one which has been doing well as the trying to capture more revenue to our.
Our revenue cycle management really didn't exist.
Before because you know the problem of denials preauthorizations, none of that's lost maybe.
But we've made a lot of progress reducing denials is unbelievable and that continues to advance quarter to quarter. So.
Quantitative volume increased qualitative in terms of the product mix and then better revenue capture.
Yeah.
Yeah, I think along those lines you Ali is that a good job of capturing those you know the sequential improvement in operating.
Our results are really the main measure for us I think all of the revenue capture and revenue growth is going to result in better operating margins and we are.
Plan to continue to see better operating operating results sequentially, we had.
A good step up from.
Q2 to Q3 and expect that to continue.
Okay.
Got it okay. Thanks for taking my questions.
Our next question comes from Edward <unk> from <unk>.
Please go ahead.
Great. Thank you and congrats on the progress on really all fun I'm intrigued by the new collaborations for further club.
To kind of understand a little bit better.
You will recognize.
It just all of the revenues or just the U S revenues that are one quarter delay. Thank you yeah.
Hey, Ted so so yeah. So Pfizer was just delayed in reporting the gross profit share for the U S region. So we'll have a bit of a catch up quarter.
We stayed conservative in our Guy just because we don't have the data yet to quantify how the the U S. Our numbers will get reflected but we do believe that we'll see that it'll be a one quarter kind of catch up and then routine after that.
I got just how is that $8 million to $10 million in guidance.
Reflective of <unk>, and <unk> or is that kind of.
What you would anticipate just for the fourth quarter. Thanks, so much for answering the questions.
Yeah, Yeah got it it's just what we would expect for a normal quarter or it doesn't have a catch up of unexpected because it it's unknown to us at this point because you don't know sure that's helpful. Adam Thanks, So much everybody.
The next question comes from Yale Jen from Laidlaw <unk> Company. Please go ahead.
Good afternoon, and thanks for taking the questions.
Congrats on the deck.
Our collaboration.
Yeah.
Followed by the border. My question is in terms of the Covid.
In the future.
Antibodies are those mostly just for immune compromised patients or that will have a broader usage.
No. That's a good question no. The the Covid antibody. We are developing is really a multi specific that will address both.
Active patients who get the Cologuard when there was a surge but there is a background need which is the need of immuno compromised patients.
Estimated between 20 to 30 million patients in the U S who will need this.
Constantly continuously so we think the market will have both the baseline which is email compromised patient and then searches that may occur during that interval of time.
Johnny you fall. So it's two questions yeah, it's a multi multi functional antibody for all COVID-19 infections.
Maybe just a little bit you already.
Just curious.
In terms of this product.
Be successful would that be something.
Oh cool it consider them too.
All of this.
Oh very much.
Oh, Hi, Hi.
Hi, Bob.
Our product.
It's too early to say.
It depends on what we're doing now that we've been funded a 59 million to reach the end of phase one.
And you'll have to really wait for the profile of the product and and and and then decide what you would want to do.
But we haven't but it's too early right now.
Okay great.
Last question here.
After module win.
In total the usage of type two diabetes.
Obesity currently used to very hot deal.
Right now.
Could you give us the color in terms of.
Washington.
In fact clinically if that's still part B no.
A piece of the space and defense.
Hum.
Basically the phase II trial shows a significant weight loss and in the doses that we were giving.
And we believe that the the new.
Analogues of function to modulate that we develops we'll have a better profile and obviously, we're developing one for the oral formulation that antero has the technology for which we want to do the feasibility studies of that and then decide how to proceed the injectable form can also be.
Done.
With the new analogs that we are formulating and that decision as to how far you go that really again is going to have.
I have to wait for some results.
Okay, great. Thanks, a lot and congrats on all the promises.
Thank you. Thank you.
Our next question comes from <unk> Patel of H C. Wainwright and company. Please go ahead.
Thank you. This is the patch on behalf of E. Chen just said.
Trend question for me can you provide more clarity around the prescription trends and gela as well as the bio reference is testing volume gross growth slash decrease.
So as far as the trend goes for prescriptions.
For agenda. So so globally. It continues to do very well I think it's it's slow going in and similar for most newly launched products in the U S market. So I think I think the trend lines are all positive.
And we think we think there's there's great opportunity.
Sorry can you repeat the second question for me.
The second one was if you could just provide some more color around the bio reference is testing volume growth or decrease.
Sure Okay.
Go ahead al.
Yeah, I was going to say it was it was the effectively the total patient volume year over year was was consistent there was it was plus or minus that you know about a half a percent.
Sequentially. It continues to be a stable a stable business as well, where we're seeing good growth in the specialty lines of testing that.
The team has been focused on.
Great great. Thank you very much.
This concludes our question and answer session I would like to turn the conference back over to Dr. Frost for any closing remarks.
I'd like to thank everybody for attending our conference call.
If you have any further questions feel.
Feel free to call anyone of us.
I'll try to risk.
To respond.
And then well look forward to meeting together again with you next.
The next quarter.
Thank you.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
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