Q1 2025 Delcath Systems Inc Earnings Call
Credits
Today and welcome to the Delcath Systems First Quarter, 2025 Earning School. All participants are innocent, only murdered.
There will be an opportunity to ask questions at the end of the formal presentation.
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Speaker Change: I'd like to turn the conference over to Mr. David Hoffman, Delcath's General Counsel, Dr. Hitzer.
Speaker Change: Thank you and once again welcome to Delcath Systems first quarter 2025 earnings and business highlights call.
Gerard Michel: With me on the call, our Gerard Michel, the Chief Executive Officer, Sandra Pennell, Chief Financial Officer, Officer.
Speaker Change: Kevin Muir, General Manager, Interventual Oncology, Vojov Vukovic, Chief Medical Officer, and Martha Rook, Chief Operating Officer.
Speaker Change: I'd like to begin the call by reading the Safe Harbour Statement. This statement is made pursuant to the Safe Harbour for forward-looking statements described in the Private Security's Litigation Reform Act of 1995.
Speaker Change: All statements made on this call with the exception of historical facts may be considered forward-looking statements within the meaning of Section 27A of the Security's Act of 1933 and Section 21E.
Speaker Change: of the Securities Exchange Act of 1934. Although the company believes that expectations and assumptions reflected in these forward-looking statements are reasonable, it makes no assurance that such expectations will prove to have been correct.
Speaker Change: Actual results may differ in a material manner from those expressed or implied in forward-looking statements, due to various risks and uncertainties.
Speaker Change: For a discussion of such risk and uncertainties, which could cause actual results to differ from those expressed are implied in the forward-looking statements.
Please see risk factors detailed in the company's annual report.
Speaker Change: Our press release with our first quarter 2025 results is available on our website under the Investors section and includes additional details about our financial results.
Speaker Change: Our website also has our latest SEC filings, which we encourage you to review. A recording of today's call will be available on our website. Now, I would like to turn the call over to Gerard Michel. Gerard, please proceed.
Gerard Michel: Thank you for joining us today to review our first quarter's financial results and business updates. I'm proud of our continued progress this quarter in terms of both revenue growth and incremental center openings.
Speaker Change: Both Hepsado and Kimosad have had an impressive first quarter of 2025, generating a combined revenue of $19.8 million. Hepsado sales in the US contributed $18 million, while Kimosad sales in Europe added $1.8 million.
Speaker Change: Thanks to the exceptional efforts of our commercial team, we ended the quarter with 17 training sites. Had it had since opened their initial two centers bringing our total to 19 active centers in the US.
Speaker Change: In the first quarter, we continued to solidify the company's finances, with positive cash from operations of $2.2 million, and that income of $1.1 million.
Speaker Change: and Positive Adjusted Epidaw of $7.6 million. Additionally, we ended the quarter with no debt at approximately $59 million in cash investments.
Speaker Change: With this strong financial footing, we will continue to leverage cash from operations to support Habsado's research and development initiatives beyond metastatic UV or melanoma patients.
Speaker Change: Given our beliefs that Hepsado and the underlying hepatic delivery system platform has potential to benefit a much broader set of patients suffering from cancer in the liver.
Speaker Change: Turning back to center activations, in the first quarter we activated the University of Cancer's Health System, Cleveland Clinic, and Providence St. John's.
Speaker Change: With our pace of opening between three to five centers per quarter, I am confident that we are well on track to achieve our previously stated goal of 30 active centers by year end.
Speaker Change: In the first quarter, we average approximately two treatments per month per center, and based on the expected pace of new center activations and mix of existing centers, we expect the average monthly treatment per site to be just under two for the remainder of the year.
Speaker Change: As we increase our footprint across the United States, we are expanding from four to six territories with each territory having a
Speaker Change: This transition to six territories is nearly complete and we are successfully attracting top commercial talent across the United States to support our expansion.
Speaker Change: We continue to improve access to patients with metastatic UVO melanoma through our newly implemented Hepsado kit access 360 platform. This comprehensive program connects patients with authorized Hepsado kit treatment centers and supports eligible patients in reducing their out-of-pocket costs.
Speaker Change: Hepsado Kid Access 360 also includes co-pay assistance for those with commercial insurance, and also helps patients explore additional financial support available.
Speaker Change: The European market continues to experience growth, increasing 29% over the prior quarter to $1.8 million. As we have previously stated, given the reimbursement and pricing challenges in Europe , this market will not be a significant contributor to revenue, at least in the short to medium term.
Speaker Change: However, given chemo-set holds a comprehensive pan-solid tumor device label and several of our European sites close to over a decade of experience with chemo-set, the region has and will continue to be a critical source of clinical data.
Speaker Change: Turning to company sponsored trials, our clinical team is diligently working to establish sites for our liver dominant metastatic colorectal and metastatic breast cancer trials, which represent a promising new indication for Hepsado.
Speaker Change: Standard of Terror will be tracked Leridine Kipperl's Hill and Bebzusa Mountain. Our phase two trial metastatic breast cancer received FDA clearance in April of this year.
Speaker Change: The Phase II trial will evaluate the safety and efficacy of Hepsado and combination of standard care versus standard care alone in second or third-line patients with Libertal on a hair-to-negative metastatic breast cancer.
Speaker Change: Each trial will enroll approximately 90 patients across over 20 sites in United States and Europe .
Speaker Change: Both trials have a primary employee of the Patec Progressive Free Survival. We anticipate both studies starting by the end of 2025 with enrollment for the Medisaticala Recall trial to begin at third or early fourth quarter, and enrollment for Medisatic breast cancer to file shortly thereafter.
Speaker Change: in 2028. For a metastatic breast cancer trial, we project a paddock progression fee survival data to be read out in late 2028 or early 2029. With overall survival data likely following in 2029.
Speaker Change: Our market research estimates an annual address of market of approximately 7,000 patients.
Speaker Change: with Libert Dominant Medesthetic Colorectal Cancer Advancing to Third Line Treatment on the US, alongside a comparable population of approximately 7,000 patients with Libert Dominant Medesthetic breast cancer eligible for second or third line treatment therapy.
Speaker Change: Each of these markets is approximately seven times larger than the metastatic cubial melanoma patient population, which affects approximately 1000 patients annually in the US.
Speaker Change: These substantial case in population space, the significant unmet needs, as neither systemic therapies, nor permanent liver-directed therapies, adequately address liver metastases, undestoring the urgent demand for innovative treatment options.
Speaker Change: Our strong start to 2025 was marked by consistent revenue growth and the expansion of active treatment centers of Daphan Hepsato. In the first quarter, we achieved both positive net income and operating tax flow driven by robust clinical demand and accelerating adoption among ecologists and interventional ecologists.
Speaker Change: Our ongoing engagement with these specialists underscores the critical role of whole liver treatment and addressing liver dominant disease, informing our strategy to pursue indistinguishable invitations.
Speaker Change: These efforts position us to potentially transform care for a broader population of metastatic patients, including those of the liver, dominant colorectal, and breast cancer.
Speaker Change: 7 million for the same period in the prior year selling general and administrative expenses for the first quarter were $11.3 million compared to 8.8 million for the same period in the prior year. Our first quarter 2025, net income was 1.1 million compared.
Speaker Change: Eight 1 million net loss in the first quarter of the previous year non-GAAP positive adjusted EBITDA for the first quarter was $7.6 million compared to an adjusted EBITDA loss of 7.3 million for the same period in 2024.
Speaker Change: We ended the quarter with approximately 59 million in cash and investments positive operating cash flow of 2.2 million compared to a 1 million operating cash burn in the previous quarter as of today, we have no outstanding debt applications and no outstanding warrants the exercise of service result.
Speaker Change: $2 million of funding in 2025. The warrants were previously issued in May of 2020, as a component of a private placement had an exercise price of $10 per share and expired recently on may 5th. Thank you all for participating today that includes.
Speaker Change: Remarks, and I'd ask the operator to open the phone lines for QA. Thank you.
Speaker Change: We will now be conducting the question and answer session. If you'd like ask a question. Please press Star then one on a telephone keypad a confirmation turnball indicate that you lane is in the question queue.
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Speaker Change: Office question comes from Chess Nicobaka of Craig Hellm Capitalgroup. Please go ahead.
Chess Nicobaka: Good morning, congratulations on the on the strong results here continued progress and thank you for taking the questions. Just just first on center adds Gerard you had previously said that you expect the majority of ads to be in the second half of the year I would say kind of.
Chess Nicobaka: We had expected you've got visibility on a further 10, we add another two to three centers in Q2 here I mean, do you kind of still stand by those comments that the majority of the ads will be in the second half just kind of an update there I think it'll be a little more even.
Chess Nicobaka: Then I anticipated as you know I've had less than perfect track record in predicting.
Chess Nicobaka: Center Activations for some reason the hospitals don't always listen to our time, but you know is a solid queue. I know a few of those 10 will all of a sudden we'll hit a barrier I don't know what it will be that will slow them down so I'm balanced looking.
Chess Nicobaka: Right number to expect by the end of the year hope to do better, but but I'm not gonna bank on that.
Chess Nicobaka: But so more even in the first half and so call it potential two or three more of those centers in Q2 to come on yeah. I think so and I think you know I think it's going to be more of a along the line.
Chess Nicobaka: But again very difficult you know respect talking about small n's and complex processes, but yeah.
Chess Nicobaka: Got it and has there been anything that's changed about the process any learnings that have have kind of smooth it out and then you've got a little over two treatments percenter per month in Q1, you'd said a little under two kind of for the rest of the year can you just give us an update on kind of who these expect.
Chess Nicobaka: Some pretty good good potential adopters in there any reason why we we're gonna see that a little bit of a decrease sequentially from that Q1 treatments per center per month number yeah. There's there are some that we would hope would be really high.
Chess Nicobaka: If you look at Descript data, who treats Medistatic U VM Illinola Miami should be theoretically a big center, Cleveland clinic et cetera, but what we found is even these centers with a lot of patients I.
Chess Nicobaka: Start doing a lot they'll do a few patients wait and see and that wait and seek can take you know when I say wait and see doesn't mean, they stop but they're not gonna do a lot that could be like a six month lag before they really hit their stride.
Chess Nicobaka: Keep the number a little under two for the balance of the year and it's been pretty consistent since we launched just under two yeah. This first quarter, you're doing some quick math. It was about two maybe a little over.
Chess Nicobaka: But I think is we get the you said continue to increase the pace of new centers I think just under two is probably the right number now you would ask are there any learnings I think we're getting better at anticipating you know where there.
Chess Nicobaka: For aggressive to get the multiple multiple stakeholders in the hospital or the sector around the table and talk to them beforehand to try to preempt some of the barriers. So you know on the margin Yeah, I think we've gotten better at it as we've learned but still there just a lot of.
Chess Nicobaka: Sorry variables that we have to deal with as it come up.
Chess Nicobaka: [noise] got it and just last for me Sandras, we think about kind of.
Speaker Change: Yeah, basically asking kind of cadence of Opex here, how we expect kind of Rd to ramp as these studies ramp up and you know connected with that how are you thinking about EBITDA kind of through the year as those expenses.
Speaker Change: Yes, so total opex, yes, we expect it to increase obviously over 2024 as you've already seen in Q1 2025 S. G N. A for will increase probably 60% over 2024 and that includes our non cash stock comprehensive.
Speaker Change: Dot com is comprised about 35% of that now R. N D is expected to increase.
Speaker Change: Higher rate over 2024 around 150% again with stock comp comprising about 20% of that 20 of that balance in terms of EBITDA. Yeah, We had EBITDA margins of 30%. This in Q1.
Speaker Change: There's no current target to to maintain that that EBITDA margin now in the near term and executing site opening and clinical trial initiatives, we should remain EBITDA positive this year.
Speaker Change: Thank you.
Speaker Change: Unexchurian comes from Suempula from Macanter of H's Waynewright My apologies from H C. Wainwright. Please go ahead. Thank you. This is our K from it.
Speaker Change: Excellent quarter, you know, it's it's it's all all good on all friends.
Speaker Change: In General Oh, you know in terms of patients undergoing procedures are you seeing any repeat in a procedures done on patients you know what would the period that it has been commercial so far and also.
Speaker Change: In terms of.
Speaker Change: Does the center's coming onboard.
Speaker Change: I'm just trying to understand the cadence in the sense are some of these centers.
Speaker Change: Kind of in that competitive situation, where they feel that within a certain geographic jurisdiction that they need to grab patients.
Speaker Change: As I can and some of them are you know in that in that in that process and that's why you're saying this higher than expected you know increase in terms of coming onboard.
Speaker Change: Sure in terms of your question about frequency of treatment and the clinical trial, you know averaged 4.1 and it's as we look backwards you know a patients who came onboard a year ago six months ago.
Speaker Change: It seems like we're going to be pretty much have exactly what happened in the trial or close to it. So I think you know for those modeling four is a good number four point one's a good number you know it might bounce down to 3.9 at some point or up to 4.2 or three but it's definitely in that range.
Speaker Change: And you know that is a big driver for for overall revenue is how many treatments do these patients get.
Speaker Change: In terms of pace of opening it. This is about what we expected. It's maybe it's a center over or so but it's about what we expected in terms in terms of a pace. Our center is feeling you know competitive pressure.
Speaker Change: It's human nature I'm sure. There's a bit of you know Hey, X Y Z center hasn't so I needed as well I think the bigger strive the larger driver, though is there aren't that many patients in this in this area Nobody's really except perhaps Thomas Jefferson Nobody is.
Speaker Change: No one has a foundation of their practice based on UV of except outside of Syntox Thomas Jefferson So they talk to each other and share information.
Speaker Change: And it's very collaborative across centers. We've noted in this particular disease state without good results I think that's the biggest driver an I R. An icologist speaks to another one at a conference and they say what.
Speaker Change: That's the biggest driver for centers wanting wanting to bring the product onboard. Thanks for that one one last question from me on the European front.
Speaker Change: If I heard it correctly you know the the revenues were up 26%, but and but you're you're saying, it's not a major contributor yet I I get that but at the same time you know.
Speaker Change: I'm Recorde.
Speaker Change: Start, adding more resources I know you're also looking for other countries to get reimbursement through and if there's any any comments on that front [noise]. Yeah. So aside from Germany. There is no other reimbursement.
Speaker Change: We hope to get reimbursed in the U K, we've put our submission in.
Speaker Change: And hopefully we got approval sometime this year and fund next year.
Speaker Change: The issue we have is twofold, one is when they look at the price of this they include the cost procedure.
Speaker Change: The second thing is when they come up with pricing. They do look at the trial and they say this is a single arm trial, we factor all that in we don't think we're gonna get much more than maybe a seventh of the U S price, which is roughly what we're doing now so whatever.
Speaker Change: U S. You kind of have to divide that let's say Europe's roughly equivalent you have to divide that by seven so there's just less to go after at this price point, it's just not feasible to get the price point, we have in the U S. In Europe, we I wouldn't invest more if there was you know reimbursement.
Speaker Change: Reimbursement, we will invest more in certain markets, but right now you know I am willing to do I Ts and that sort of thing anywhere in Europe, because generates clinical data I'm managing it roughly on a breakeven basis. So you know we probably at three people and the last two years not.
Speaker Change: Adding people when we think it'll do some good but yeah my focus in the in the short to medium term is let's get a lot of clinical data out of Europe at some point in any case it'll come along at high enough volume with the right type of data to get better pricing and higher volume and reimbursement.
Speaker Change: Talk about the CRC and breast cancer, but at the same time I know since Chemos had has been in Europe for a long time are you seeing any.
Speaker Change: Any additional indications that the centers are wanting to do especially with a liver metastasis in it.
Speaker Change: And if so you know is is that indication at a point, where we can start thinking about or is it just too early.
Speaker Change: Okay No centers in Europe have done breast cancer, they've done quite a bit of I C C.
Speaker Change: We've had centers say that like to do cutaneous melanoma and but these are like an equals 236 not enough to generate real world data. The most data that's out there on the product is.
Speaker Change: You B melanoma, and while docs like to I would I want to call. It experiment try this for some patients.
Speaker Change: What we're really drive is us either funding an I I T. We're in a doc raises their hands that asked about it and getting that published or sponsored trial, but you know we try to we're trying to get these docs to publish case studies or small series when I have the data and.
Speaker Change: We'll get some more papers out of Europe based on these small and you know retrospective analyses, but I don't think from a revenue perspective, I don't think there's anything to bake into a model that's meaningful.
Speaker Change: Thank you. Thank you very much and good luck.
Muritable: On next question comes from Muritable of B T. Ig. Please go ahead hi, good morning, Thanks for taking the questions Gerard and Sandra and congrats on a very impressive start to the year wanted to ask you a very quickly I heard.
Speaker Change: Program I want to understand if there's been any hurdles in terms of payments or anything that you're seeing on the patient access front. That's led to the creation of this program or if this was always sort of intended and and planned as as we typically might see with some of these.
Speaker Change: More rare diseases, so any detail on that and any impacts you might see or expect from it on adoption pace would be great in terms of I mean, we put this in place primarily for.
Speaker Change: Copays copay assistance and the rare patient that had no coverage whatsoever in terms of the hospitals getting reimbursed aside from the hiccups that were driven by submitting claims.
Speaker Change: See nothing that gives us any pause about either commercial or Medicare coverage. So I think this is sort of the sort of thing that it's helpful for patients that can lower their co pay if they don't have any coverage at all we can complain them towards various do assist.
Speaker Change: And I think as you said Marie it is kind of standard practice to have this type of service up and running you know if we had been a company with you know more resources moving to the launch we probably would've had it in day, one, but we had a way to.
Speaker Change: Gather the resources necessary to watch it okay glad to see it I'm glad to confirm that billing is going well and then you know we're expecting choppan data I think later this year any chance, we could start to sort of understand what what the bar for what will be.
Speaker Change: [noise]. The M point is P. F. So I think you know a meaningful increase in P. F. S would you know is what we're looking for what might that be I think it's in the eye of the Beholder I think anything you know any increase of you know given how severe this disease is for patients I think for example.
Speaker Change: Three should be phenomenal you know because that's probably translates into four months or more life. So something in that range I think would be great.
Speaker Change: But you know, we'll we'll have to see but that's my kind of personal bar about four months increase to P. S would be great.
Speaker Change: Great Congrats again on a nice quarter.
Sudan Loganofin: The next question comes from Sudan, Loganofin of Stevens, Inc. Please go ahead.
Speaker Change: Hi, Jordan Sandra Congrats on the great quarter and thank you for taking my questions. My first one is going to be kind of on the the territories that you mentioned you know does the six territories you mentioned cover the lower 48 states and get you to that adventure peakside activation to potentially 46.
Speaker Change: Does your current boots on the ground get you to the over 30 sites or will there need to be some kind of increase to that S. G. N a effort to support site actuation growth over 30 sites.
Speaker Change: I think we can get the 40 with the six territories with that said.
Speaker Change: If it looks like you know the number of foods on the ground as some say is limiting the growth will do more Luckily. This is not a huge expense you know we could go from if we went from six territories to eighth that would be an incremental six people.
Speaker Change: It doesn't move the needle very much one way or another.
Speaker Change: So time will sell on right now on paper, our models say, hey, we should be able to get by with these these six territories.
Speaker Change: Okay, Great and then my second one you know with the F. B A's clearance now in hand for the Pharg.
Speaker Change: Maybe this quarter itself versus you know waiting into third or fourth quarter of this year sure I've got boyo virtual year with me. So our CMO may as boyo to chime in there sure happy to address the question. So once the FDA clear.
Speaker Change: Because we typically go to lodge academic centers, which.
Speaker Change: Quite complex to navigate this process can take anywhere between six and 12 months for the typical street centers. So that's why there's a gap between the FDA clearing the protocol and us actually enrolling patients in Europe, It's a similar situation we file.
Speaker Change: Protocols for a regulatory clearance after the FDA has left than and that's what we've done for these two trials and in parallel we engaging sites and same process activation of sites and you can also take anywhere between.
Speaker Change: Five five which country. It is so there's always an operational like between clearness of the Proscol and stock official enrollment I hope that suggests your question yeah. Thank you for the clarity there that's a really appreciate it and one more last one pregnant. Please please.
Speaker Change: I think I believe you may have noted before that that achieving that around 13 million in revenues should kind of yield like a breakeven EPS and then over that could yield a positive EPS you know with current Opex levels, you know, which you now proven in the first quarter. So congrats on that great milestone now that is.
Speaker Change: And with the cash positions. You currently have is there any interest in deploying that cash to in license a companion diagnostic device or therapeutic that go ahead in hand, with if is that okay and be accretive to the business maybe in a shorter timeframe than running clinical trials for label expansion and going that route.
Speaker Change: Consideration is for for that kind of a strategy.
Speaker Change: We always keep an open mind and you know a number of things have come across our desks to look at none of which seem like it makes sense. I think you know usually you know in licensing it.
Speaker Change: What else could the sales for sell in this type of business.
Speaker Change: I think taking our eye off this.
Speaker Change: Mary profitable products to sell something that is high volume low margin that takes a lot more sites to sell into doesn't make a lot of sense now something comes along that is more a profile in terms of focus that might make some sense, but nothing's come across today in terms of a companion you know diagnostic or something you know if we do move into an adjuvant setting which is probably you know something we do talk about but it's not actual yet you know if there was something that for example.
Speaker Change: Predicted one will get Livermets, we might be interested in funding something like that I don't there's no such thing out there right now that's just to pick up its commercialized that would be more of an R and D investment, but you know we look at complementary things like that.
Speaker Change: Stomach something that for some reason fits with our Libertary, we would look at that if there's a good clinical and medical rationale, but I don't think there's a lot out there in the near term that you know that fits well within the business.
Speaker Change: And just to have a you know a larger top line.
Speaker Change: Gotcha. Thanks, George I really appreciate all the color there and again, great. Congrats on the great start to the year.
Speaker Change: On next question comes from Bullmorgan of Clear Street. Please go ahead.
Bullmorgan: Hi, Thanks for taking the question congrats on the quarter. So looking at revenue in Q1, I just kind of want to look at it from from any angle to see kind of how stable. This base is going forward you know with it you know being such a strong number so.
Bullmorgan: There was there any month to month variability that might suggest any you know quarter to quarter variability going forward and were there any headwinds from beginning of the year insurance resets. Thanks.
Bullmorgan: Terms of the ladder part.
Bullmorgan: We expected, perhaps see something with you know the co pays resetting and we we did we didn't expect we wondered that's probably better better way to put it but with the disease such as this it seems relatively I would say immune to it but it.
Bullmorgan: In terms of kind of month to month variability.
Bullmorgan: We're still talking about relatively small n's. So by definition, you're gonna have some level of variability, it's tough to tease out a pattern. It since patients are treated every six to eight weeks with probably closer to eight.
Bullmorgan: Kind of see an up and down effect month to month, depending on you know if if quarter. If January has a lot and February has a lot a bit fewer than March is likely to have a lot in April but fewer just due to the returning patterns.
Bullmorgan: Meaningful and again the.
Speaker Change: [noise] Lady Sun gentlemen, just to remind you if not ask a question you won't Restar and then one our next question comes from Hilljan of label Company. Please go ahead.
Speaker Change: Good morning, Gerard and congrats on a great quarter.
Speaker Change: Well.
Speaker Change: Sure, we anticipate more than 20 fives across the U S and Europe to participate in the Colorational trial.
Speaker Change: Okay, great and.
Speaker Change: The second one is that the in I don't remember what that you have been mentioned, how many havesado units been sold in the quarter.
Speaker Change: I guess, we can calculate that but would you be able to just provide a number as well it's not we had a pricing increase.
Speaker Change: Mid first quarter, so probably isn't quite as clear as that but I think if you. Just you know divide by about say 185000, you'll get the number or close to it within you know two units or so.
Speaker Change: Okay. So could you elaborate the level of price increase Sandra would you share. The first increase the timing, yes. We started the year on January 1st price of 182, five and on February 1st.
Speaker Change: We went up to 187 five.
Speaker Change: Okay, Great. That's very helpful and thanks. The next question is the in terms of have you guys start to track to see.
Speaker Change: Out of the nation.
Speaker Change: Oh, Kevin could you have an estimate on that.
Speaker Change: Yeah. That's that's that's a great question and something we attempt to track is some of our key key indicators for the health of these the centers that we're in and I would say that right now, it's probably around 30% of the patient.
Speaker Change: Okay, great that that's ACTU.
Speaker Change: There's more centers open there's less need for referrals.
Speaker Change: So, but that's a health demon the the reason we structured these territories with three different types of professionals.
Speaker Change: Delivered desk of therapy manager the clinical.
Speaker Change: Support our specialist who's in there and then the oncology manager that third person their job is to get those referrals to those centers and so they're clearly doing a decent job now some of these patients are self referrals, but definitely you know we're doing the introductions for many patience.
Speaker Change: To keep you know keep feeding the pipeline and to be centers, okay, great maybe.
Speaker Change: Yes. The last question here is that I'm, just doing a quick scan in terms of the top line, particularly hasado in the United States and I just realized that you got roughly a formula.
Speaker Change: A quarter over quarter revenue increased up to this quarter. So it's about almost five quarters started I mean was there any meaning okay extract from this or simply that just what did happened anything.
Speaker Change: It's you know, it's driven by center activation.
Speaker Change: And it hasn't been the same number of centers every quarter, but it's you know that's roughly what's causing that increase you know we add.
Speaker Change: Let's call. It you know three to five centers a quarter or three to that you would you're gonna end up and at the at the pace at which.
Speaker Change: Centers due treatments kind of leads to that fixed increase every quarter. So it's not an exponential growth like you might get with a drug but you know we'll keep this is kind of more of a typical device gramp as you end a more centers you get the growth.
Speaker Change: In that case, let me sweep the last one here, which you may or may not answer which is that can we extrapolate at least for toward the end of this year.
Speaker Change: El pass on that one yeah [laughter], okay, great. Thanks, a lot and congrats maybe congrats on the performance.
Speaker Change: Thank you.
Speaker Change: Lady San gentlemen that brings us to the end of today's event. Thank you for attending and you may now disconnect your lines.
Speaker Change: Alright, I'm still here.