CERS - Earnings call transcript Q2 2021

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Operator

Ladies and gentlemen, thank you for standing by. And welcome to the Cerus Corporation’s Second Quarter 2021 Financial Results Conference Call. Please be advised that today's conference is being recorded. It is now my pleasure to introduce Matt Notarianni, Senior Director of Investor Relations. Please go ahead.

Matt Notarianni

afternoon. good and you, Thank I'd like us for thank everyone joining today. to

are of slides today's part simultaneously webcast, As follow. we displaying can that you

can and Operating on Moore, issued from at Senior You Chief Officer; of Executive Greenman, Quality; slides press of Vice Carol Relations Affairs and President Jayaraman, our and Cerus Regulatory Cerus's Green, the June XX, site Cerus's Cerus's Vivek announcing Web the Financial Chief Cerus's Corporate Hanover, the President ir.cerus.com. Kevin call Cerus's the Investor today me our Officer; are XXXX Affairs. for and highlights. second a Officer; business ended Obi With Jessica release Vice access results describing President financial recent company's quarter Chief

and a operating commercial our growth growth use this including profits ongoing on launches, financial strategy, the trials, and You gross gross future clinical relate at forward-looking that you copy actual Web performance, differ product site are today's call, begin from ongoing development to announcement Examples statements. these and on results. and well described I'd forward-looking and timing of shortly. anticipated to remarks identified forward-looking guidance the events On with press XXXX results, operating future to involve duty to related XX-K of events cause from today's revenue Obi, operations, materially. risk XXXX, statements that we our and XX, XXXX cash which and in including undertake as and Kevin margins, for events, sales, product ended and year we'll uncertainties performance some than to We statements. obligation These of product development and of and update include make for our financial company factors call goals, efforts, statements this www.cerus.com. our will those will XX-Q XX, future our our historical as the like file facts, the remind rather results under product followed expenses, future and are They and quarter to future in forward-looking by and future June we December forms can statements access activities. no ended risks the or release and activities, regulatory opening review can

Chief conclude to my closing with and will it's recent and from now remarks. Greenman, on We commentary introduce regarding our pleasure Obi announcements Executive And Officer. President and Obi update Cerus' pipeline

Obi Greenman

good our afternoon, a everyone. earlier from you've Hopefully, to today. earnings you. with Thank and excited which chance results you, share review issued our had to Matt release, We're these QX we results

greater around performance, US. thoughts a Kevin care in half we the safety the the standard our Before new INTERCEPT second near begin we focused the and see detail provide about I second on were to up few for with in help our of like make offering XXXX of term platelet to shaping would I what quarter, the how and

INTERCEPT blood the the a now for last of is supply. platelet both quarter product performance, become the and US preferred of north second they quarter the Our for the over company. million, system our hospitals choice that months protecting of record centers XX With for has provide results the second serve milestone platelets evidence our clear quickly revenue blood $XXX

happening certain platelet we revenue a million, believe universal year through United interventions of XXXX meaningful expand robust to guidance half the the position revenue strengthen our have States. Red achievable previous to and safety in geographies to we guidance we ARC, our the of opportunities is of geographies raising stated are supply will to powerful standard Outside saw up of indicates moving their of XXXX the seeing we unparalleled standard we new platelet into are on the in At Switzerland of the continue technology era growth fact $XXX of platelets based treated $XXX and red Greenfield in million. initially pathogen be a in with cross In XXXX will endorsement our centers of a well of expect creating other transmitted quarter, that thrilled INTERCEPT to are their INTERCEPT pandemic where like early toward adopter As US XX%. say, supply for like realize and we adoption care current US, help record INTERCEPT INTERCEPT anticipated. that over some At reach Needless $XXX run level remain. to of $XXX second track a hospitals. our to Swiss inactivation our we us adoption infections care above goal long an is use Cross we significant suggest leadership the is preparedness, the and technology in the American soon US, the But that full our demand beyond. the like the the technology. was XXX% transfusion the is pathogen faster INTERCEPT. reduced with rate The than second product of now in this leading from US continued Accordingly, blood is

largest second Services quarter, As blood centers processing Blood example, Canada CBS, supply. two we country's roughly of the thirds is the in or announced during blood a contract with of Canadian two the which an the

reduced As CBS it's to adoption is said drive pathogen has publicly, aim to full of platelets.

alone, the partner that $X billion to more a INTERCEPT than momentum. over this to reality. platelets make With commercial the years believe for global to credit and proud addressable blood we continue system we market for relative significant, of them are penetration a We next intended remains to opportunity with couple our

continuity. production increase and of our stated we supply because continue in our supply unique blood in As capacity chain component and previously to role we chain, improve prioritize the

their the treat and to INTERCEPT adopt pride cumulus the great doses we sales with blood significance and realize many As regions their every platelet It kit term. daily team Safety X.X safety around globally reliance critical million with long and supply responsibility over excellence and sustain day. increase technology With purpose Standard of patients demands the the for foundational Cerus of this the to demonstrate. is the INTERCEPT making treated thousands globe look on our we are this of for components, to operational committed transfused the empowers to we investment are

has fronts. momentum several over the expect this have months. also or we to the are we been on at Complex With it continued we Fibrinogen build product last work INTERCEPT be as several rollout And aware IFC, hard to

pleased As have have report that customer the ramping product interest delivery seen hospital is previously, stated we to the and have To we we are positive. end, several hospital contracts we that signed these Among IDN to begin now the and engagement around delivery the large our pleased launch of year. back of one in adopters initial initial one of is that adopters product states. through network a we half accounts, to these are or of integrated early the early expect

as announcement with to our June partner. Additionally, launch we footprint the pleased have added Florida IFC an production LifeSouth recently of to are

BLAs of half receipt target IFC state IFC of to of to across in continue following enable second a the production lines. our sales XXXX, nationwide We launch partner’s

being have scaling been also addition filed which we to anticipate QX. In production preparing production BLA our in up partners of submissions, IFC,

October were Add-On incremental morning CMS announce excited this we reimbursement Xst. positive for on technology IFC. decision our front, to Finally, the which of date decision provide this applaud final have an payment NTAP their or a to from for we for that CMS received new Payment IFC, has for We effective

I topic few turn over that to US, impacting Before the and Kevin has hospitals news to call to our for shortage about in blood patients wanted a been moment in a months. us the and financials, a discussion over the on last I the take the talk

how this received impacts We shortage have about some our business. questions

to take delivery the perspective is we critical to I INTERCEPT our in health country, supply of any capable engine care the Clearly, of for of availability So shareholders. plasma wanted the is and a platform blood general. provide increase believe helping in the opportunity platelets components and in cog this

technology risk the to deferrals of more deferrals certain tends started donor past, tight INTERCEPT Historically, earlier already seasonally summer improve for in the related donor to need it And and the transmission. shadow travel severely blood a designed obviating supply. period for the years also malaria Our be eligibility can of have to the minimize than by in pandemic. like appears particularly

not a many red of of the blood is blood blood certain cases, the option. less demand, platelet to and cells, are reported, delay has in As with centers US elective products has typically treatment for cancer patients rebounded. leading possible struggled have There's most flexibility keep in components to deferrals this availability for been particularly in But recipients surgeries. platelet transfusions up demand of the common viable for since

platelet relative components other very blood Additionally, have to life shelf a short components.

and resulting these in collection have, units first reduce value. an opportunity will these testing for the be made with making possible likelihood and much the alleviates system. long INTERCEPT, potential So available minimizes it then platelets as can rapidly With in treated waste methods, the available of burden and are more as price with centers that for logistical can hospitals time decades, for that the be We’ve effective increased hospital after confident in the been benefits blood shelf waste. to provided Collectively, life critical duration receptive. bacterial

to the it by aspects changed the believe to shortage urging center need while not do do blood hospital provide headlines ABB, continuously what changed we has lives is patient joined and customers for care. Hospital currently, to donate has our directly so. products summary, who be and impacted making and numeral blood the will are lifesaving to able to American our So in Association daily donors contribute we our This blood not business but pandemic all of the

pool. financial of of centers their overall that, me and over turn rebounding, call the blood a solid blood the to results. demand supply components sustainable financial a to a health review resilient let US access With necessitates for Kevin more for With our donor the detailed blood and

Kevin Green

Obi everyone. Thank and afternoon, you, good

record demand quarter XX% increase QX to revenue product history. the recorded from million, INTERCEPT discussed largest million for during quarter we Global in the already, increase. continues Obi recorded $XX.X This As the XXXX represents product second prior of of a $XX.X the year. of company's revenue

For QX, of doses calculated year year. platelet number the over increased treatable XX%

with QX year product robust some our North was The speaking to by for the XX%, outside approximately ramp driven country's demand platelet quarter US prior sales kit X%. which in when while period. second case versus grew by of the second Similarly, sales, as represented quarter time kit prior in high product mix centers roughly quarter, blood quarters five about centers, were platelet North sales accounted accounted centers with XXX% sales. provide double the remaining product for the blood beginning of like terms to was XX% for American sales kits the up of US geography, to five across Sales top the also of total centers region digits the to strength period. three up the spend which supply, In blood plasma our versus INTERCEPT. the I'd XXXX. the Of continue platelet XXX% our the country kit of for in the US to compared the sales year saw top blood we America,

scale of approaching our Xst. each October FDA up the in customers rapid of the as alongside working QX, deadline efforts in blood continued compliance US We’re center

strong during the quarter, year. larger Moving in half quarter, puts quarter well Sales to in the the second the region from We of region sales some and demand the prior timing the of XX% the the accounts the takes during should as in which grew second tailwind some during during as region. XXXX. a provide versus saw EMEA

in revenue included QX. In of guidance, in revenue quarter revenue XXXX. and government addition government million the our contract to $X.X product totaled million Comparatively, total contract $X.X not second in our

by blood For half revenue we reduction BARDA associated clinical XXXX, funded continue ramps. trials government of with for to patient contract will FDA the contract the pathogen and anticipate whole reimbursed with enrollment activity increase second as

$XX.X was Turning profit improvement gross US to quarter prior in efficient business. period. was year gross million the which strength in lower The during Product in resulted gross $XX.X our gross XX.X% The margins. for percentage profit margins, compared were the year profit the during to gross slightly million margin less continued compared prior the from product product quarter primarily and the gross period. by driven platelet to XX.X%

to year mainly our lower double have over line customers EMEA a platelet we versus compared As platelet contribution have which dose year customer stated, this US single our kits base, previously driving the double shift kits, has margin gross use dose kits. variance. higher a kits top Since mix single is dose platelet our our mix dose of platelet

bit, dose as will kit ahead, gross market the contribute market improvements. expect that sales our a US to seasons which in also Looking percentage we that increase, will double profit

In by the anticipate IFC. to sales second million addition, activities with we of included underway, by scale non-cash and capacity discuss stock will are force QX million number which return the margin a SG&A have and quarter to for million accounted $X.X year, and approximately expenses to provide in and compared prior about I'd margin a million operating Of during based overall operating launch to totaled were accustomed we $X.X expenses, increased $XX.X expansion higher compensation. total of the expenses the $XX.X driven like and associated of expect which which expansion, now economies to expenses, realize. we

certain stock development based the expenses the increase. during year. million Research over to fees $XX.X year million costs non-cash vendor the in quarter for prior increases compared contributed to $XX.X Additionally, and and year totaled compensation

June as we Cell program as quarter, our with US Reported share XXXX. associated submissionn blood to new INTERCEPT CE the months Net XX, per prior preliminary $X.XX increased development $XX.X Mark modules for diluted also to $XX.X three for Blood cells, our ongoing ended with $X.XX red well per for based generation period products. million totaled research efforts the compared for increased During million associated or and QX year two and next costs the other LED illuminator compared incurred net when Red and of share the or loss final period. the associated the development diluted with loss same spending in XXXX

position the In quarter ended short-term $XXX.X terms a of with in our investments cash, strong and million balance hand. we on of cash approximately sheet, equivalents

topped us terms XX to debt previously only revenue extend million, the for of year. allowing to As mentioned, our an additional we facility month the trailing interest $XXX

representing milestone, additional improvement In addition, debt operations option used the facility. $XX million, from we operations cash have second provide unlocking sequential was million. that a would from Cash quarter our predetermined QX under used achieved of the the for $X.X capacity from

focused product With are were to our inventory as seeing, in we the we on continued building customers of the on for globe. invest we blood demand supply staying around have center top

cash with breakeven. the focused highly continued our supporting for the are emphasis We on on reaching robust demand products flow

this opportunities significant QX that see discussed we move will As quarters. next over the our we on goal conference call, we believe operating expense several towards us leverage

far Moving thought plan. be Clearly, we for on to year in product where revenue original guidance in the XXXX. to business would we've exceeded expectations our the thus relative

million. With the have visibility we into to we are revenue compared range guidance year, with to we the the to reflects realized coupled feel commercial of traction product back when range our the the growth $XXX US new in half $XXX This heading XX% XXXX. to raising XX%

over reflect to in call INTERCEPT me back closing this Obi let to a from that, continues the modest With turn guidance some Complex. comments. Fibrinogen increase Finally, contribution for

Obi Greenman

business Kevin. wrap I to up additional want few updates. you, a with Thank

the on the other results, executed several commercial the to fronts during second strong addition quarter. organization In

June, day post platelets to First INTERCEPT submitted FDA. claim storage we the in collection seven for

to assume window, XXX receiving We for day us would continue approval set the year. end review up of which the by calendar potentially

With we quarter. to Mark the in the to ongoing red this hopeful advance for we're we customers, submitted and Europe already platelets for we seven INTERCEPT modules effective we two proposition programs, two centers believe particularly blood additional the second be able their hospital claims later advantageous the life will of blood that and day As value efforts, also cell add during shelf the where US to CE our said strengthens treated days previously, year. we final our continue

levels, with recall a last or very continue we our the made are from look and opted on the US, our in has In market. the regulation may to offering our to to device last we way Phase in You trials. body medical recover the directive the notified for this collaboration two below III to trends accomplishment transition continues This is year, And our MDR. pre-COVID year. we submission. device with saw introducing executed the significant they pleased what submission under team this team, still I'm medical enrollment EU while forward to

observe to year's medicine in to inactivation one pulmonary featuring as the ahead in data this conducted ever In blood of component X,XXX transfused collected a a in pleased significant differences INTERCEPT over looking that In this we of profile adverse including presentation statistically were national safety to patients customers, the a INTERCEPT study, transfusion of company. high with Phase of INTERCEPT prominently by continues impressive is European Plenary individuals' which we with utilization. is Oral We October. think ABB events such period. Session combination and has during four pathogen PIPER, IV studies our our for the the a covered, mortality, towards Finally, during with not level any half leadership see study, body established the year topics path related PIPER closing, featured clear in market presentations At quarter second studies, our did largest about be treatment performance significant Abstract help or for the underscore platelets, our system.

becoming growth in success at is XXXX, accelerating path global trajectory commercial reshaping a standard-of-care. our to Our Cerus new our

the is ability I updating As driving several to our operator let on next back quarters, growth it this that, me the for With our to line forward cash of half to also focused on year. look achieve to over sustainable flow top while the back Q&A. breakeven. progress our our continues more grow team demonstrating over over you turn

Operator

question with first Stifel. from Instructions] Blackman Matthew [Operator Our comes

Matthew Blackman

would we thinking had actually, about Maybe step half? XQ for make in the of Should the could Kevin. because start both correctly. up XQ cadence guidelines? to got be for second And you how the start a more there we be we're sure more about Kevin. and to assume of or front the thinking big if then on, XQ. would gonna be loaded XQ sequential just sort a the any growth And just shape I'm could for I back half to one want help from two questions Just with of you, the in then XQ it to XQ appreciated. of timing I've some up reason, perhaps follow end similar XQ, Obviously,

Kevin Green

in holidays and quarters the that QX, have don't believe been the I softer reason be just Historically, will Europe's one given it of especially any to different.

So do while growth, part we be deadline, which Xst. driven the will to the that's by think for anticipate that I October in QX be stronger going sequential than to continuing QX. is US customers slightly compliance prepare And

Matthew Blackman

And I cryo includes more or some in than as fourth that also the Is guess also well perhaps it the fair? so quarter third.

Kevin Green

right. That's

XXXX that our modest will we in single Although, believe the continue digit. prepared from IFC low contribution remarks, be to in

to driver a certainly, So But that momentum more with not major and product. and revenue. transfusions more we'll of we'll see gain continue

Matthew Blackman

And think the only million $XXX,XXX. to not wanted then leverage, it. about $X best sequentially, this look you but way the maybe you SG&A touch is went grew SG&A about on up revenues just like to and But just if

lingering pure still And the on deferred leverage that is expand then, comments or little a sort the because you it. bit all I made. you to Could some spending ask of pandemic? have So Kevin, of there's

next recall that maybe you language timeframe. towards the the section, towards but few mean you you sort thinking it Thanks. about give But of the something any that think Does I helpful? quarters, breakeven or that over few the about, just don't be talking guessing mentioned don't breakeven. about I breakeven? should what visible how talking trajectory exact us over become were we you're more of quarters? color that next in Is I'm be end towards progress a sense on about the would of

Kevin Green

that will team especially So increased with what We're time, hospital deferrals deferrals. component, starting line for for COVID. expected. in We've the five see should is on access, IFC conference provide seen be in largely business, additional contribute, out, By to travel which some At we leverage. as made enlarge, the attendance, built there more the we've to platelets markets the residual same SG&A due leverage had residual plasma. some the and investments first some

initial of feel we investment for in result sustainable will some degree leverage, confident So and very leverage high time. that quite that

regarding several ours next we'll breakeven, about that visibility what was and past As the a gain focus as it we relates talked to direction. adjusted in over said EBITDA. It of the defining had quarters. your quarters, it move is several core a we've over We're question as

So with obviously, EBITDA guidance see, also we be based for platelet and to isolate economies milestone, We're that and adjusted it. and a depreciation, a provide that some which on in that expansion that and we'll but breakeven with for but cash amortization core the compensation, as cryo to that margin clarity stock continued getting is also growth really just out expect calling SG&A plasma core non-cash allows US business. XXXX, the we contribution us and backing with of not scale not achieve or the to leverage return again business we’re like from position a strong that

Operator

Folkes Our with Brandon question comes next Cantor Fitzgerald. from

Brandon Folkes

centers Was any the past, July And Maybe line? that potentially you the similar you you you seeing the in in can for from I about secondly, are INTERCEPT two it benefiting around think provide of just called then any blood years kind hospitals. disruptions pricing the you any that pricing or what talk out Does down to this stage? this are commentary saw year? leverage at

Obi Greenman

repeating of that quite your question? I last part didn't it. Would hear mind you

Brandon Folkes

the flexibility lines Does you are stage, those along mentioned pricing think and and price you uptake exact provide said are for that any premium But potential setting centers both blood I centers, So at of product blood hospitals for that of hospitals INTERCEPT kind I any benefiting words. stage? [Technical lines. you something along around Difficulty] think at this

Obi Greenman

around nature was think your the mean, for of part of those one of just value. of defer the questions Vivek both I think on, pricing your I pricing, enabled particularly as the away you just US the key for think least, demand is Cerus with I from them commodity question has mean, centers with realize do cells, I to things based I'll And at I the last red second which really has for here in been challenging especially blood declined. decade, know has a move to over

As any I actually year. able is in And my X% increase stabilized. in to the mentioned that a that's of ongoing blood -- of growth prepared X% remarks, for starting cells. seeing But platelets are organic then red for we're given We're the what rate conferred to platelet with has sort demand components, the the adoption given centers financial saw their And technology. value of a pricing increase overall INTERCEPT, question by that's to that States, bit our maybe we your of blood or But viability July. to as United the the helpful States. banking as business center your sort in over industry it the on your what expand little can in around pricing with United relates really as question well Vivek blood of in our con treatment for about time, see

Vivek Jayaraman

on maybe Just bit past my you I'm your to the correctly. -- and want the clarification understand about specific knew or question something sure I I to little were July, own month was make there for curious regarding just more question answering benefit

Brandon Folkes

the just quarter, is of indication seeing highlighting trends? you trying just think how anything you July? month to I into the given are and rights So quarter some mean, in we are third get just worth one I'm

Vivek Jayaraman

free certainly up. ask can of first they with that, feel stab a mentioned. Maybe bit I Obi and pricing, to clarifying at questions come what a to off respect take piggybacking helpful, That's should

state the pathogen to across of the questioning is platelet. much really been whether of this seeing or early of very One center's reduced idea bit level the a hospitals to the receptive higher price the pathogen very accepted are a at reduced the a on I now launch on INTERCEPT the relative can the what blood part hospital hesitation that is things conventional reservation higher blood we be in is price the platelet centers board. and with would of conviction And platelet encountered

to Now up I healthcare pricing, oftentimes when comes the anecdote. getting the dominated of what tyranny call end by you it

top. the their a of PR is on continue pathogen the blood the centers to maintain think that I I to anticipate to and And solid platelets, that will price, want very to benefit back You always reductions price want who's pushing ability hear the growth but seeing case. and to be you With they safety they hear general, was respect but on the The whom issue, driven What of the isn't about by most and this. many customers about customer adoption they price think want sales, very pandemic was value, to for proactive the we device And July best continued their outcome. the the certainly, in the the still and mentioned which with I Kevin preparedness INTERCEPT. patients much really about safest quarter idea providing with is risen of has offering kit in encouraging saw the not we're product pandemic, pandemic, and clinical possible placements. rarely be

hospital. And kits, you're are so those products products is what purchasing getting customers seeing and they're transfused the they're our producing with INTERCEPT at

lot the in which the reflected reduced in exited a But for the strong driving the quarter, in we guidance. that's they I So and at the clear forward blood pathogen hospitals this address to the anticipate carry center state preference a addition what's will manner platelets increased that as seeing fundamentally, of through with levels. third quarter partnership momentum We're is guidance.

even the share to continued really We've progress October growth Xst, And but on grow. we demand and up continues after the the got deadline. here so anticipate coming deadline hospital

of high. enthusiasm about second the very half continuing our year the on and So remains

Operator

Our next question Cowen comes Company. from Josh Jennings with &

Unidentified Analyst

the to wanted for US Josh. on platelet ask Eric is This about market. I

delivered looking here that result obviously outside they you the market I You're five, progress great the that at big seeing fall XQ. centers of US in considering the believe blood But those Could for players getting about market. INTERCEPT? They're about more represent smaller to the utilize talk a been and track. traction little difficult bit of has adopt in XX% to you how us

you any would that detail So be share helpful. could

Obi Greenman

defer I one to you again? can this Vivek,

Vivek Jayaraman

centers penetration across increase We all US. in the traction saw blood an in and

we've five center represent as your as platelet on been As XX% of of largely the executing because we focus pointed and has the distribution. they been have our stated big question, in throughout approximately few families, nationwide prior past years, out in blood really course the calls you

a So to well. are, mentioned as hospital been where the saying seeing and goes, the across that you my fish But working is we're prior has PR. in sort preference fish want I the for response board is what what of strong

big guidance the their So prefer non five is they center hearing document. way from what is customers even they're reduction those blood address in pathogen bacterial they families hospital which

an of is effect that PR the adoption. their so market in XX% the of rate terms adopting other And having of increasing

blood And all growth beyond we I anticipate see capture the US. year. only share continued adoption earlier, And see not period the ending following the the Xst so continued the we point that's heading made why up but October really deadline in centers accelerated to US in growth compliance really into the to to we or across expect and

to market. we're good largest growth five, percentage continue getting us to seeing allow them top the is because going So what's to there of capture we fundamentally going the on but focus the

Unidentified Analyst

trials program, Mark be able trials? quick a that application. estimates ongoing final refresh the enrollment? can was any of you you where when the secondly, nearing cell CE in modules those great complete US Thinking get enrollment submitted it your the could then on the stands share about opportunity, red on red cell On to see are And to we

Obi Greenman

those are over seeing studies year it made a the Phase last in to half. enrollment has in pickup COVID a challenging III studies. both we and But obviously, enroll So

the chronic a had with to study. we recall, the transfusion in FDA RedeS may you earlier meeting in year enrollment talk also about of the As patients

well. the patients So and we scope that's RedeS those enrolling as added are been study to

I if in-person make the what investigators like, last happen. challenging been dial week. could of in really a timeline be have meeting it'd think to sort have We actually an exactly to did one looks it's virtual but great we that

provide would I it's of enrollment phase picking on too think to there's those we of three enthusiasm early little lot still a a clarity up. studies. complete enrollment how But both is sort for in when

Operator

with from Mark question comes BTIG. next Our Massaro

Mark Massaro

of I wanted CE the to ask about timing Mark. the

could I I Europe. red you rollout timing? think second and XXXX fourth And guess, Europe? year? give to might and half the of guess can red for asking the of do you So be blood final early what in be the in sense takes obviously, I'm module is blood us or are you what the for a cells the planned that cells just that for puts submitted

Obi Greenman

you might like with Carol, looks authority you're would closest notified sort body. I the handle think both and the of competent this? timing And what review to

Carol Moore

reason. really looking we're of at think and here's XXXX, half I the second

competent so have know, is You our in notified authority have and TUV they multi we both body, to it's a and group effort we have review. which

that we any to so believe we each that that that handle. their XXXX then have second think activity. I so they clarify of parts question and and all the I And need And can the they until think half take that answers of will to questions, reviews different those, of complete the

Mark Massaro

in million million a maybe but -- by just in beat QX. place for just year QX, you for reasonable expectation to strong then almost seasonality $X quarter, and roughly us in about remaining you the typical $X QX to Is raised QX. speaking? Is million $X guidance each you fair for And both the the the revenue for QX year, it commented clarify, Kevin, it product by

Kevin Green

As I we than that QX will slightly think like QX. said, be heavier know, I

that. continue growth in increasing to vacations softness the the And I stuff. to want by and weigh gonna to in document. anticipation due consumption centers some we'll then US don't So see just blood of see guidance of seasonal the normal you We're way know probably all how

So QX to and growth growth QX. QX we'll probably QX slightly stronger to then sequential see

Mark Massaro

the And NTAP. on congrats

the NTAPs think I sometimes reminder exists. are need NTAP great that I a think hospitals but

in and we sense you customer but to any XXXX? type just a and just of group? of us us frame, direct, for your that's the rate help you going how whether education communicating efforts can your go have impacts to you this us give can you core update business, especially And So help the sort frame do about obviously,

Obi Greenman

us platelet salvaging INTERCEPT breakthrough very FDA. the of was really that first involved for with on the the the She over of back call of today reimbursement for submission then on Jessica the Jessica Hanover, as architect product. to device also this well. our with question part the designation Dr. I'll and outpatient was P-code turn handle NTAP it with who's

to at of And so how level, focus plan address clearly provide Jessica, she jump hospital be color them is would do answer around because that think ours. that the questions? just I some helping able a with we Mark's to billing, to want you in and

Jessica Hanover

ways best reimbursement not do they is can know in certainly And have that the we things Absolutely, the that way. education key side. many on hospitals

active setting do relevant the the by use order materials on certainly to in payment good know, we populations. of infrastructure NTAP already. hospital We'll built have campaign. instructions trigger we've need exactly they that how already to as the coding you the And a educational in Medicare have outline So an patient provided

we So that that people we who need the education. can have provide

lot on also the essential, be moving the hospital will interactions the only bank of virtual with within the that we're but chargemaster and a billing been department. blood hospital Now to have but face-to-face, not focusing back the really and

doing a So sure that comprehensive that right. we make are to have hospitals effort

Vivek Jayaraman

you well, that I the this really the is, only add had plan of think launch we covered But securing that’s since been thing been overall the our would of beginning I project. it NTAP, Jess. part

extending the element for Jessica awareness a not nationwide making in core value to one cost is release marketing saving the benefit hospital. NTAP at certainly clearances reach but because of going this thing you're But certainly, so getting the to hospital our BLA too a and going to of only critical mind be launch potential part to are grateful looking broader campaign via and and also keep is our be campaign, team clinical driver the rest And in to to reality.

of decision hospital. clinicians further both well IFC to of within sort non-clinical emphasize really the the So makers as product, value as this the

Mark Massaro

maybe no this here to And far year you quarter. early year grow same anything one XXXX over the I like you expected growth guidance, But at final to comment or or that. question one too on XX% token, me. know from it's for

extent you just strong But year? difficult Consensus some comps revenue might to we that So will comment growth be think maybe the how think into just weigh think the about I for about about me. seems going curious up was some XX% to you really or how can in looking was if you comps growth XXXX. achievable against strong next XXXX, I as

Obi Greenman

larger I'll need around things platelet start growth of $XXX just some the and size of a shareholders US to think for turn again, the really Vivek of over on million the the to and investors maybe in market. overall seeing then function is focus that additional market growth organic I context. we're being one as possibly But and the --

quarters. the moving which that you So care, share with over greater standard XX% market we than marry the believe define coming towards of we fact as that we're the

we're to those implemented safety FDA was customers, And for hospital platelets. to of So the strong of a was there's the to in out that many a the that XXX%. all of demand lot related came they've room having with clear still as with of guidance hospitals on bacterial then the ABB they was preference serve it a And compliant their asked INTERCEPT platelets. what survey really once preference platelets, June get seeing being grow. there reduced it them And or to pathogen that

that for you realized. to to want are So are a of XXXX in add opportunities any that? color lot be I think there to other growth Vivek,

Vivek Jayaraman

think you well. good as me, I last only as captured we're our Obi mean, tell Yes, it as I like quarter. to

on you the Obi with hand. in process of as about now high. are external well the the as both quite untapped domestically the technology, NTAP launching then as further and when well think the IFC, as penetration really the of indicated, are, starting both platelet INTERCEPT eventually he BLAs opportunities, as are expectations But So globally that always whatever there clicks clearly us expectations notwithstanding

like continue the larger if anything INTERCEPT of globally promote penetration only some will platelets. the for on allow not significant. of and domestically example, to there's customers they is So ARC, fertile And coming that feel ground to these but for board, influence the we influence

confident place to continue the and feel have drive to that growth. plans we people, So we in strategies

solid But Now continue point's to challenging growth post one. and products I confident -- that with feel strong we certainly blood to the performance around to think a safe to We your have importantly, for think most I access fair patients comps. provide we continue numbers world. ability comes the very

Operator

comes Our from with Stephens. next Jacob Johnson question

Jacob Johnson

on side. Kevin, gross margin just Maybe the

quarter, if about some your some the that leverage maybe is gross or we You we for the you'll revenue than this think opportunities that mix, operating a is be back talked maybe of even half of year, US about margin gross of margins this assume they such floor is side the this maybe gross medium US on on the if gross the should increasing of side, there margins -- for term term. of the back percentage were half longer maybe mix as as softer see could kind or the year? a margin But

Kevin Green

as nature it. that the and scale economies COGS we're our that similarly, same board. of were reduction of I market support But and Difficulty] of term, we're [Technical as where adopters see anticipated. seeing expect help our should price initiatives. dose for will prices We we're growth, we're go don't up see think think, continued time, to plan I costs And And the last predominantly we'll sustained go don't softness expect up, more are see longer kits commodity expect to the think suppliers some geographies, see a across double matures I seeing dose. I margins to to increasing. was in some single for I At gonna certain downside customers, going get knew be would there and do then talk we ton back modest operations. Similarly, early there's that US, in the the that more which normal they here year.

Jacob Johnson

prepared or and you mentioned in And maybe But Kevin, other puts this. some region. seem of those? opportunity with just your think have maybe EMEA? comments you maybe at to in missed misheard may speak that the Could sticking half on EMEA you just about And side to and I takes the of things, in talk hint you the one back you question in year takes I the the can

Kevin Green

it characterized really order. why of is as and that not It's takes. puts I which timing meaningful, It's all

And So thought we QX saw and in be thought or in in we would about talked kind would as some unpredictable QX. past, that some QX certain distributors we happen slip in lumpy to that into we've of similarly patterns. QX slip the ordering

don't much So that the call attention US don't to, because preparation your for growth the documents. focal want spend we I it's want time and think to too to is really guidance I point the which

a but huge driver. not nice So it's

Operator

Our Ram H.C. Wainwright. question Selvaraju from next comes with

Unidentified Analyst

is Ram Selvaraju. dialing This in [Balan] for

on to touch Canadian want So up I your just Blood collaboration. Services

So it for are how to their services market? current Canadian transfusion the take your long blood what expectations INTERCEPT fully? do adapt think regarding will And you preliminary and thoughts

Obi Greenman

So around the is doses market roughly XXX,XXX for annually. platelet platelets Canadian

CVS So roughly two thirds produces market. overall pretty and significant of the

a being of other state organizations they major are the history Krever a is Héma-Québec, back that given in focus Canada So focused supplier with standpoint. blood group Certainly, the of both really commission findings component patient XXs the the the in safety excellent art a on and on from XXXXs safety. are early called

they year. to with leadership Canada hoping closely regard once Canadian that Health to been claim and has the working but for that that day there secure sometime with And implementation started of XXX% We've claim. So blood really get collaboration they have services. with in getting INTERCEPT we're stated next in a label file looking seven to a is goal

a couple So give organization, of its that timing. us. of customer towards moving years for history quickly with you we be But a can't single over next that believe the state-of-the-art specific I will meaningful technologies,

Unidentified Analyst

Cerus (CERS) 4 Aug 212021 Q2 Earnings call transcript