Q3 2023 ADMA Biologics Inc Earnings Call
Okay.
Good afternoon, and welcome to the Admob Biologics third quarter 2023 financial results and corporate update conference call on Wednesday November eight 2023.
At this time all participants are in a listen only mode. There will be a question and answer session to follow.
This call is being recorded at the company's request and will be available on the company's website approximately two hours following the end of the call.
At this time I would like to introduce Sky live alone.
Our business development and corporate strategy at Atmos Biologics. Please go ahead.
Welcome everyone and thank you for joining us this afternoon to discuss asthma biologics financial results for the third quarter of 2023 and recent corporate updates.
Joining today by Adam Grossman, President and Chief Executive Officer, and Brian Lenz, Executive Vice President and Chief Financial Officer, and General manager of the <unk> bio centers.
During today's call Adam will provide some introductory comments and provide an update on corporate progress and then Brian will provide an overview of the company's third quarter 2023 financial results. Finally, Adam will then provide some brief summary remarks before opening up the call for your questions earlier today, we issued a press release detailing the third quarter.
2023 financial results and summarize certain achievements in recent corporate updates.
The release is available on our website at www dot asthma biologics dot com.
Before we begin our formal comments I'll remind you that we will be making forward looking assertions during today's call that represent the company's intentions expectations or beliefs concerning future events, which constitute forward looking statements for the purposes of the safe Harbor provisions under the private Securities Litigation Reform Act of 1095.
All forward looking statements are subject to factors risks and uncertainties such as those detailed in today's press release announcing this call and in our filings with the SEC, which may cause actual results to differ materially from the results expressed or implied by such statements and.
In addition, any forward looking statements represent our views only as of the date of this call and should not be relied upon as representing our views as of any subsequent date, we specifically disclaim any obligation to update any such statements except as required by the federal Securities laws. We refer you to the disclosure notice section.
In our earnings release, we issued today and the risk factors section of our 2022 annual report on Form 10-K for the year ended December 31, 2022, as well as our quarterly report on Form 10-Q for the second for the third quarter.
Ended September 32023 for a discussion of important factors that could cause actual results to differ materially from these forward looking statements.
Please note that the discussion on today's call include certain non-GAAP financial measures, including adjusted EBITDA, a reconciliation of the non-GAAP financial measures to the nearest comparable GAAP metrics is available in our earnings release with that I would now like to turn the call over to Adam Grossman Adam.
Thank you Skyler and welcome everyone. We are pleased to present a number of first today.
With strong financial results for the third quarter of 2023, which underscore both our unwavering commitment to the continuity of patient care and steady financial execution for our stockholders.
Total third quarter revenues reached $67 3 million.
Representing an impressive 64% growth rate year over year.
This rapid growth enabled 98% quarter over quarter increase in adjusted EBITDA to $12 $7 million.
Furthermore, It gives me great pleasure to announce that for the first time in admin history, we are profitable.
With GAAP net income, reaching $2 6 million.
During the third quarter.
We also generated positive free cash flow for the first time in corporate history totaling $11 6 million.
During the quarter.
These milestone results are a testament to the efficiency of our organization and our relentless focus on maintaining top tier revenue growth.
While judiciously managing expenses.
We fully anticipate this positive trajectory will continue to drive earnings growth for the foreseeable future.
Building on the momentum we've established this year, we've revised our total revenue guidance higher yet again for fiscal years 2023 through 2025.
We now anticipate generating revenues during these periods of more than $250 million $290 million and $335 million respectively.
Our company's success and carving a solid in each in the $10 billion of immunoglobulin end market is.
As a direct result of our innovative business model diverse product portfolio, and our targeted medical education marketing and market access initiatives.
We remain the fastest growing provider of immune globulin in the U S marketplace with a specialization in treating immune deficient patients.
Specifically.
Within the later line at risk primary immune deficient patient population segment.
<unk> continues to make significant inroads.
In the third quarter, leading incentive demand metrics hit all time highs across the board.
We are seeing record new incentive patient starts and promising persistence and adherence trends as certain patients progressed through their third year on therapy.
Equally encouraging sentiment prescriber base is expanding and we anticipate will further compound the growth among the existing prescribers and institutions.
The value proposition of our product offerings was highlighted at the annual 2023.
Weak International Conference, where Adama sponsored a symposium with two national clinical experts.
First among these opinion leaders with Doctor Alere Palouse.
Who would discuss the heightened severity of respiratory viral infections or Rbis in immune compromised patients with up to 80% mortality risk in some cases.
Dr. Bill Lucia emphasize the lack of standard RBI management approach, leading to an unmet need and further touched on emerging therapies.
Additionally, Dr. Yolanda Walter highlighted the evolving approach to managing infectious diseases in immune compromised patients focusing on RBI management.
She introduced the Senate are unique intravenous immune globulin with increased antibody titer levels against respiratory pathogens.
Dr. Walter presented the case, where incentive effectively manage recurrent respiratory infections that were unresponsive to standard immune globulin therapy.
And shared her own real world experience, demonstrating the drug's clinical impact in this setting.
All told we are encouraged to see incentives unique product profile continuing to resonate in clinical practice and the real world setting.
The therapy is accelerating demand trends and healthy growth attribution continually catalyze us to favorably rethink the ultimate size of the market opportunity and we reiterate that we believe we are in the early innings here with the product's total potential.
Okay.
Turning to our 2020 for 2025 corporate growth initiatives all activities continued to progress as planned.
We have successfully expanded our finished production to the 4400 liter manufacturing scale enhancing the products margin yielding capacity.
We expect to realize these profitability benefits beginning late in the fourth quarter and more materially in 2024.
Additionally, our post marketing clinical studies are progressing well and may lead to label expansion with the potential pediatric age group if successful further strengthening our product portfolio.
Our excitement continues to build as we see the potential impact of our manufacturing immunoglobulin yield enhancement initiatives.
During the third quarter, we made significant strides in scaling up our processes and conducting laboratory bench scale runs and analysis.
If ultimately successful we believe enhanced production yields will be transformative and providing increased finished goods output, which would substantially increase atmos peak revenues and earnings potential.
While it's important to note that these opportunities won't have a potential financial impact until 2025, we cannot overemphasize our enthusiasm for the promising benefits. This opportunity offers on both the top and bottom lines.
On the plasma supply front, we are confident in our ability to meet the increased production for class for our immunoglobulin portfolio.
Our buyer centers collection network expansion. In addition to our contractually secured third party supply contracts.
Provide us with the flexibility needed to meet the growing end market demand for Atmos immunoglobulin product portfolio.
Currently all 10 collection centers in our network are operational with.
With nine already SBA license, and we anticipate achieving FDA licensure for our 10th and final collection center by the end of this year with plasma supply self sufficiency also expected by year end.
Okay.
Reflecting on Admins journey.
Become evident that our success is a direct result of the unwavering dedication and hard work exhibited by our exceptional staff members.
A remarkable transformation from a virtual clinical stage biotech company to.
One that is now cgmp compliant.
As an end to end controlled supply chain now positioned for rapid advancement with a highly profitable commercial trajectory.
Thank you for your relentless efforts, which not only drive our accomplishments, but also create a meaningful impact in the lives of those who depend on us.
It is the collective spirit and teamwork that truly make our workplace exceptional.
We appreciate the commitment passion and diligence that each team member brings to the table.
It is this dedication that propels, our organization's triumphs and empowers us to maintain complete control of operations and alignment with our core vision.
We believe this solid foundation lays the groundwork for even greater success in the future.
With this said I would.
I'd now like to turn the call over to Brian for a review of the third quarter financials. Bryan. Thank you Adam we issued a press release earlier today outlining our third quarter 2023 financial results and we will be also issuing our third quarter 10-Q. Later this afternoon, which we would encourage you to read in conjunction with our comments and discuss.
<unk> points, we will make during today's call I will now discuss some of the key highlights from the third quarter as Adam mentioned earlier total revenues for the three months ended September 32023 were approximately $67 3 million as compared to $41 1 million. During the three months ended September 32000.
22, and this represents an increase of $26 $2 million or.
Proximately, 64%.
The increase is attributed to higher sales of our immunoglobulin products, driven by increased physician payer and patient acceptance and utilization as well as the expansion of our customer base.
The growth in product revenues during the quarter was partially offset by a $3 $1 million decrease in third party plasma cells from a bio centers business segment, which was consistent with our expectations in the context of fulfilling our long term plasma supply agreement during the first quarter of 2023, while also providing a significant.
Supply of normal source and high titer plasma to our Boca facility for the manufacturing of incentive <unk> again, as we migrate towards plasma supply self sufficiency.
Gross profit for the three months ended September 32023 was $24 7 million as compared to $9 7 million for the same period, a year ago and this represents an increase of $15 million, which is attributed to selling more of our higher margin product incentive during 2023 as compared to 2002.
'twenty two.
As a result, Admah achieved a corporate gross margin of 36, 6% in the third quarter of 2023 as compared to 23, 5% in the third quarter of 2022.
We believe the pathway as well paved to continue to grow gross profits over the coming periods.
We are very pleased to report that as Adam mentioned earlier that for the first time in corporate history. Adama has achieved GAAP net income profitability and has generated first time positive operating cash flow.
During the third quarter of 2023, GAAP net income reached $2 $6 million as.
<unk> GAAP net loss of $14 9 million for the third quarter of 2022.
Our operating cash flow for the three months ended September 32023 totaled $12 million, increasing atmos cash on hand to $74 2 million at the end of the third quarter of 2023.
Admah grew adjusted EBITDA to $12 7 million for the three months ended September 32023, as compared to an adjusted EBITDA loss of $6 $1 million for the same period a year ago.
The improvement is driven primarily by increased sales gross profit and fiscal operating management of our business segments based.
Based on <unk> third quarter, adjusted EBITDA growth and cash generation. The Companys current net leverage ratio has organically improved to an impressive one six X.
We believe we.
We anticipate.
Balance sheet will continue to strengthen over the coming periods enabled by forecasted operating cash flow and growing adjusted EBITDA.
Lastly, the <unk> bio centers network now consists of nine FDA licensed plasma collection centers with our test center operational and collecting plasma which is pending FDA licensure anticipated by year end 2023.
Additionally, in the same period, we forecast raw material plasma supply self sufficiency from all 10 of our centers.
We remain encouraged by the real time improvements and donor foot traffic and collection volumes, which continue to achieve record all time highs and remained considerably above our organization's pre pandemic levels.
With that I will now turn the call back over to Adam for closing remarks.
Thank you Brian.
Adam as business prospects and company morale have never been higher all systems and teams are working in concert across our organization.
We are committed to finishing 2023 on a high note and entering 2024 from a position of strength.
2023, with all of its challenges is truly proving to be a banner year for the entire organization.
With Atmos cash holdings growing to $74 $2 million during the third quarter and adjusted EBITDA annualized at more than $50 million.
We have established a strong foundation from which we anticipate continuous growth in both revenues and profits.
Our ongoing corporate initiatives, particularly those centered on enhancing immunoglobulin manufacturing yields.
The potential to further accelerate admins growth outlook and peak earnings potential.
We believe that our financial achievements and growth outlook.
<unk> Admah as a distinguished player amongst standalone biopharma companies with substantial barriers to entry in the United States immunoglobulin market and our robust intellectual property estate and.
In the case of incentives we are confident in our ability to deliver one of the most durable earnings growth stories in the Biopharma industry.
Our accomplishments in the third quarter of 2023 reflect our commitment to patient care.
Financial growth and market leadership.
We are enthusiastic about the opportunities ahead, and our dedication to delivering value to our stockholders in patients.
Thank you for your continued support and trust in the company.
We wholeheartedly appreciate those of you who have supported US through this journey and we are committed to delivering for you in the periods to come.
Your investment in Admah helps to advance our mission to save lives and make high quality safe and efficacious products that help our friends family and neighbors. Please donate plasma and help save lives with that we will now open up the call for your questions operator.
Thank you.
As a reminder to ask a question. Please press star one one on your telephone and wait for your name to be announced to withdraw your question. Please press star one again.
One moment please.
As we compile the Q&A roster.
And one moment please for our first question.
Our first question will come from Christian cluster, sorry cluster of Cantor Fitzgerald. Your line is open.
Hi, good afternoon, and congrats on achieving the profitability that came quite a few quarters ahead of us.
Your internal goals, so great job with that.
Yeah. So one question that we've been getting a lot lately and I think it would be great to hear your comments on it just around.
IP and for Cat protection around it.
He served as a highly differentiated product contributing to a lot of that so can you talk about what youre doing and what you've done to protect that please.
Absolutely. Thank you Kristen.
It's been a while since I've actually been asked this question. This is a question from.
Back in the days of the IPO, but we have.
Issued patents.
For aesthetics, and Theres, an entire IP estate, which covers the.
Composition and the use of the product.
The main IP is around the identification and selection of the plasma donors.
The plasma pool.
In order to ensure that there is some consistency in the anti RSV.
Antibody levels in the final product. So this idea has been issued.
I believe the patents run into.
<unk> 35, yeah I.
I did not anticipate the question Kristen.
We do have IP protection here.
Look we this is not a secret.
A number of the things that we do are protected by trade secrets, a number of the things that we do you do have issued IP, but.
The drug in its form formerly known as <unk> two <unk>.
Clinical trial back in <unk>.
12, 2013 2014.
And here we are.
So essentially almost 2024 and there is there is no competitive threat looking at.
Like I said it with the unique antibody profile that this product adds because of the unique donors that we used to make the drug. So we feel very good about our positioning we feel very good about our place in the market and again there are no competitive threats that were aware of that.
Be able to make the same compositional claims that we do with incentives.
Okay. Thanks for that.
It wasn't that long ago that you were guiding to the street that the.
The peak revenue do you think the company would.
Would be over 200.
$300 million and now those numbers.
Relative to what you are.
Essentially.
Four in 'twenty five.
We ask this every earnings call I recognize that but I think it'd just be.
Really helpful.
It's really understand what has really changed over these last few quarters that gives you such a high degree of confidence that you can EBIT guide revenue to the street and through 2025. Thanks again.
Thanks Kristen.
Youre asking a different question that you've asked before I mean.
Whats changed nothing has changed everything is working it's working the same way that it has been for the last couple of years.
It's the medical education strategy, its the marketing campaign, our conversations with payers.
It's our sales force.
Everybody that works at the company, it's all the little things that we do come.
Come together.
In such a way that.
People are responding positive.
And.
I think that you see this with with lots of products you have early.
Going back to my days as a marketing student.
In college.
There are different life cycles that our product goes through and you have early adopters. When you have these people who.
Wait online to get the newest and greatest iPhone and they are the first users.
Try all the apps and then the <unk>.
<unk> get fixed and then more people start buying it and then you have the mass appeal and I guess I would say that we're probably in that stage, where the early adopters have have worked very closely with our organization and we've published a lot of articles around the <unk>.
Real world clinical benefits that that folks are seeing in these problematic immune deficient patients.
We've been spending more money on marketing and medical education post Covid now that everybody is getting back into the real world. I mean, it's yes people are still getting sick, but I think people are not afraid to travel to these conferences, we're seeing record attendance at the shows that that that my teams are.
That and.
We've invested and built a medical educational speakers Bureau that.
All throughout the regions of the United States and I think.
When patients do well and they are advocating in there they are.
Lending their stories to our website, where you can see new patient advocacy videos that have been posted online.
I think it's just.
We provide an alternative I mean everything that we've said that we're going to do from the beginning.
Doing so nothing is changing it's just.
I think things are just coming together and theyre coming together, a little faster than what we anticipate.
I'm getting all these nice tax and I'm getting all of these things that people want me to say all these things but.
I am who I am we are who we are our company.
Regular people just trying to do a good job and make good products that help people.
So that's what we're doing here at <unk>, we're doing our best to provide you with.
Reasonable guidance.
Again.
Send it to you probably on the last call Christian or maybe one of the other ones I remember in the second quarter.
Was it 2008 2020.
I remember the second quarter of 2020.
We did not hit our topline number in <unk>.
<unk> I don't know if we want that to happen again I want my shareholders Happy I want My staff happy and ultimately I want my customers my patients healthy and happy so.
If you don't like the way that we give guidance. There is 4000 other stocks you can buy.
But for the time being.
We think the guidance that were putting out is fair.
We think that.
It's certainly attainable guidance.
I think that that's what we want folks to make their investment decisions on.
These pie in the sky numbers that some folks.
Backtracking have to explain why they don't hit them.
Youre asking me to explain why are we hitting numbers better than what we are saying I've got a great team.
I've got a great team around me to all of you listening it doesn't happen without each and everyone of you.
So don't screw around give us an honest day's work and get out there.
Keep safe.
Thanks, Adam.
Thank you Kristen safe travels.
Thank you.
And one moment please for our next question.
Okay.
Yes.
The next question will come from Anthony Petrone of Mizuho group.
Your line is open.
Hey, Anthony.
How are you Adam thanks.
Congratulations another another good quarter I was on the second quarter 2020 earnings call and turn.
Turning to page a few years and it's a huge difference.
Do you have in the press release, Adam that your prescriber base and patient base.
<unk> continues to grow youre getting at net new prescribers as a common statistic out there for.
Therapeutics companies as well as an Rx statistics.
Can you disclose I guess.
Kind of where those are trending broad strokes.
How many new prescribers are coming onboard each quarter I guess on average.
Maybe what percent of this target co morbid.
Primary immune deficient market do you think is penetrated.
By incentive at this point it seems like we're just getting started here and then I have a couple of thoughts for Brian.
Thanks Anthony.
We are expanding the.
The depth of our product penetration and our medical messaging.
And.
That's really what is translating into this accelerated growth.
There are more prescribers and again I think it goes back to the answer that I that I had to christine's question around the early adopters.
And the prescribers that are out there I mean.
The best way to convince a physician to use the drug is another physician telling them my patients have done well on this drug.
Simple I mean, I can hire all the reps and all of the medical affairs people and I can put my name in lights, all I want but when a colleague is that it.
At our symposium at a medical conference or another colleague and they are saying.
Or is this stuff and they say I actually do and I like it.
That's the kind of advertising and promotion and benefit that you can't buy it just happens because its real world.
So.
It's really that.
People are getting comfortable with the product there.
Sure.
The price is certainly unique for an IAG.
It's priced on the higher end.
Of the.
Hyper immune if you will specialty scale, but I think that that the benefits and the outcomes that we're seeing in the real world people understand why it is what it is.
Plasma that that the drug is made from an and.
It is only made in this way by AD and.
And I think that really.
The grassroots marketing effort that we've taken to.
To our story too to our commercial.
Throughout the commercial launch of the product that really is translating into.
Increase.
The number of patients going on the product.
Really when we have these conversations and the immune deficient world.
That's where we spend our time, that's where we focus Anthony so all in all the product use is really coming from primary and secondary immune deficient patients.
That are not doing it.
G that have comorbidities that are getting sick.
And I think that once a doctor tried the product and see some results from them and that patient they're faster to put their second patient on and really what youre seeing is that because we have a larger number of prescribers.
They're getting more comfortable in saying you know what I can advocate for these patients with the payers to get therapy because of these comorbidities and they're not afraid that theyre not going to get reimbursement.
I think we spent a lot of time over the last year and a half talking about durability and a lot of the analysts including yourself that question Adam out durable over this.
One off core how do you know this is going to happen every quarter every quarter.
And I think time time is the only thing that I Couldnt rush and demonstrate to all of you that.
These patients.
Or like an annuity.
It's the Razorblade model you need a razor blade every months you need your infusion every three to four weeks for the rest of your life and if you do well on incentive and if youre thriving on incentives.
Even though some of my.
Market research suggests that people would come off therapy theyre not theyre staying on in multiple years of therapy, and we're just seeing it compound. So hopefully that answers your question, but really.
It's the clinicians it's the clinicians that that has.
Set to my team. Thank you. Thank you for making this product. Thank you from moving to peg forward.
Youre, giving us an option for these patients and they're doing well.
That's what sells drugs.
So in the follow ups would be Bryan, maybe a little bit on gross margin here.
Above our.
Our estimate in the quarter drove the EBITDA beat to some extent here of course.
And so a couple of questions one is.
You referenced that.
At least there was some.
<unk> batches that were successfully transition of 4400 leader pool.
Are we reading this right that.
That product can be fully transitioned to 4400.
By the end of the year early 'twenty four.
And if so what does that do to gross margin.
Does that represent upside to this 40% to 50% target in the outer years, Thanks, again and congratulations.
Sure. Thank you Anthony so regarding a set of <unk>.
Certainly seen.
More upward mobility or or utilization of a set of them.
We originally forecasted and with regards to the 'twenty 200 manufacturing batches of our centers.
Transitioning getting FDA approval not long ago to the 4400 liter batches.
It's pretty much sold out of the 22 hundreds the gross margin going from 22 to <unk> 4400, certainly very meaningful.
Say that historically, where we're looking at.
80% to 85% gross margin for a set of in that 'twenty 200 liter range say now were higher then.
85%, probably closer to the upper eighties at some point in time, maybe even the low 90% range for our centers as we continue to sell only 4400 liter batches.
Hey, Anthony it's skyler to be clear, though in the third quarter gross margin percent of 36, 6% Youre not seeing any monetization of the 44 100 leader a Senate product right. It's on a go forward basis and it really materially will not kick in until the beginning of next year is the way that we think about it.
Very helpful I'll get back in queue. Thanks.
Thank you.
Again to ask a question. Please press star one on your phone and wait for your name to be announced one moment. Please for our next question.
Our next question will come from Gary Nachman of Raymond James Your line is open.
Hey, Gary Hi, guys, good afternoon, and very nice quarter.
So first question how is your contracting been going with the big physician buying groups for both incentive and bid again.
I wanted to get a sense of how much visibility you have on how much product you will be able to supply them. So I'm curious what you're seeing looking into that funnel. When you look out over the next nine to 12 months.
And then specifically what was the mix for a set of Ambev again in the third quarter and then I have a couple of months.
What was the mix.
The mix the mix historically, we said we'd be in that $75 25, 70, 30% and then we would start looking at $65 35.
We've really migrated to that 65 35 heading more towards 60 40.
<unk> margin again higher margin set of that 60 40 mix right now.
And I'll say, Gary that that is conservative, let's see where we go in through 2024, but that's where we're seeing I know in the past I've said.
Is there is there a chance that you get to 50 50, probably.
Do I know when that is no I don't I put my finger on it no, but do we get there there's incentive at some point in time potentially surpass they began.
When do we get there I don't know, but for the time being and for modeling purposes in the guidance that we feel comfortable with.
We said 70 30, $65 35 is probably where we are in and 60 40 is where we're going to go.
First part of your question was regarding <unk>.
Contracting and payer reimbursement.
We're very pleased I mean, you see the growth.
Between public and private payers, we're very very happy.
Our patient hub, we leveraged the patient hub, it's proved very effective.
And it's been very Berry.
Important in the.
Getting new prescribers comfortable in providing patients with some assistance with their co pays and with other expenses as it may relate to their <unk> infusions.
Assertive incentives the drug for the appropriate at risk population.
Again, there they are staying on drug they have these chronic persistent infection was that they wind up clearing but they have underlying bronchiectasis. They have underlying COPD. They are underlying asthma on the <unk> website. We go through a whole battery of all these different risk factors that that patients may have.
We're spending a lot of time talking about incentive here, but then again if it gave us a high flyer I mean it just.
Soon as it hits inventory that's out the door I mean, we've got so many patients on <unk> right now in <unk>.
Keeping up with demand is certainly a challenge.
Im sure all my steps.
<unk> right now is.
Chuckling, but we really can't can't keep it stock.
We think a lot of this has to do with.
The fact that there is multiple years now of clinical experience.
Payers are seeing that they are using less premedication with these patients and theres less aes.
And there are a lot of it.
Interesting differentiating factors about <unk> <unk> compared with our competitors and we think that Thats really.
Helping us manage the payor.
Work with the payer well and from a contracting perspective again, we feel we feel very very pleased with our current payer access.
Okay great.
And then I mean with the consistent positive EBITDA now for a few quarters and now the positive cash flow at what point would you consider a debt refinancing.
Is that high on your list when Youre looking at Gary Everything is always high on my list.
I know you've been following the company what is this your third call fourth call now.
Second it always doing everything all the time, let's just say that I mean, we're not stupid, we see the markets, they're looking at our financials look at how they've changed and evolved.
We're having conversations all the time with all types of people. This.
This is the answer that we give to you and this is the answer we give to all of our all of our shareholders. When we have our one on one calls where we're always having conversations with them I will just say stay tuned.
We will we will.
We will do the right thing for this business I believe that we've done since its founding.
It can only improve from where we are and I think that.
We finally flip flip.
Flip flip the pages right Brian.
EBITDA and net income and these are the things banks want to say three quarters three quarters of positive EBITDA total assets $350 million first quarter of net income positive cash flow. These are things that.
Lenders banks like to see certainly and we're going to do everything we can as Adam mentioned too.
Look at the cost of capital look at this interest rate.
It has grown over the year, we have refinanced, we refinanced and bay lowered the overall interest rate of 100 basis points, we certainly think there's opportunities to.
Do they do the same or if not more in the future as our entire financials continue to improve over time.
Okay, Great and last question is just on the patients what are you doing specifically to try and activate.
Patients one.
First in terms of the donor supply.
Just to get more generous specifically for incentives.
Are you increasing your incentives now that you see what kind of return you are getting.
And then just also in terms of patients that have been going through the IGT treatments.
They could then make physicians aware as well I'm curious if that's an important piece of the puzzle.
Absolutely I mean look patients.
Patients to advocate for themselves in 2023.
If you're a smart patient and if you're somebody who wants to get better.
What what we see is that patients are out there advocating for themselves Gary if you haven't seen.
The new additions to the Senate website, there are two patient advocates.
Who tell their story.
And they talk about how they one patient talks about how their Doctor said, Hey, I've learned about this drug at a conference and I think it might be right for you. The other patient said I've learned about this drug with my Doctor and I said don't you think this is right for me.
So I think that.
That certainly is a big part of this.
We have.
Look we're a small company, but we are spending more time marketing to patients we are.
Working much more closely.
And a much broader capacity with the patient advocacy groups.
Immune deficiency Foundation, Jackson, MAU DAU Foundation amongst others.
<unk>.
We think that that that certainly.
Is helping add.
To the growth for a Senate what was the first part of your question and onerous Oh donors, yes, yes, yes, I mean look do we pay our donors more.
If donors are listening I don't think we are paying them that much more right now.
There is a plethora of plasma donors out there today.
Their fees are coming down across the board, Brian certainly can speak more specifically to that.
In a moment, but.
I've talked about this I think in past calls and it's funny that you asked the question because maybe I had a management team meeting with everybody at the company. This week and we're talking about how we've got testing up and running in house here for RSP donor screening and that certainly is going to help expedite the assertion of these donors identification of.
Which donors.
Our collection Center network.
Higher levels of neutralizing antibodies to <unk>.
RSP in the panel of respiratory pathogens.
We look for.
And what I can tell you is that part of our supply chain robustness and owning our own centers is we can choose which donors we're collecting plasma from.
So we're not saying that our third party providers have not been great they've been fantastic and we love you all and we hope to keep selling us good high quality plasma but.
You worked for AD, but I have more control over what you do plain and simple I don't care about sending it to somebody else I don't care. If it has to go into that box I wanted where I want it and that's what I want. So we can easily ensure that we get every single RSV tighter donor that we identify and testing that is.
Not something that I can say with our third party vendors, we lose donors every unit of plasma that a donor that we've identified.
As an appropriate donor for incentive plasma pool, we have access to so.
This was part of our strategy. This was part of the philosophy was that okay. If the drug does take off if we do start selling.
Tens of thousands of grant every month. If this is the way it is and we need all those but how are we going to really control and it wasn't just the need of the sourced plasma but also because we know folks like you were going to ask because these questions. So yes, we have full control over our plasma supply chain from a normal source perspective, but we also have full control over our supply chain.
From an RSV hyper immune plasma perspective and.
This coupled with the fact that we are testing in house.
The initial screens, we think that thats going to help.
Help us identify more donors and faster we are continuing to work with our third party laboratory plan to keep that third party laboratory continuing to test forever because the one thing I've learned in my seat and biologics is redundancy.
Is the key to success so.
Even though we can do it better and more efficiently we're going to continue to keep.
The assay up and running to ensure the continuity of supply and blood collection.
Just to add on a bit about the plasma centers. We're very pleased with the exponential growth that was just a few years ago back in 2021.
Embarked on a supply chain robustness initiative, where we only had one center.
Back in 2020, we had three centers that we're collecting in one center. It was FDA approved fast forward to 2023, we now have 10 centers collecting with nine FDA approvals in the last center, we're hoping to receive FDA approval by the end of the year. So again, we're very pleased with the exponential growth.
We'd like to thank our bio centers employees for the ramp up and the expansion as well as our donors, who go and donate because we couldnt do we do without you.
Absolutely.
Excellent. Thank you for all that detail that was really helpful.
Thanks, Gary.
Thank you.
This will conclude the Q&A portion of the conference I would now like to turn the conference back to the CEO, Adam Grossman for closing remarks.
Okay.
Thanks, everybody. It's been it's been a hell of a journey to get here for those of you who have been here since the beginning thanks for sticking around.
For those of you who are joining us now for the first time welcome.
I really mean, it when I say its all my staff I'm getting tons of tax here.
You all matter you all make a difference in the lives of all of these patients to all the shareholders nice text messages.
Messages that we've received thank you very much there's only one time in the company's history that you can say that your first time net income positive.
So this is the collaborative efforts.
Many many people.
Thanks for having faith in.
My father's vision.
It makes me a little bit emotional to think about it but look we're going to keep doing what we say, we're going to keep under promising and over delivering.
And.
Donate some plasma.
Take your vaccines wash your hands you drill.
Keep the world Safe place and thank you for everything that you do.
We appreciate your time and commitment to add in the biologics.
Have a good evening everybody.
This concludes today's conference call. Thank you all for participating.
You may now disconnect and have a pleasant day.
Okay.
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