OSUR - Earnings call transcript Q4 2017 | OraSure Technologies, Inc.

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Operator

Good afternoon, everyone and welcome to the OraSure Technologies’ 2017 Fourth Quarter Financial Results Conference Call and Simultaneous Webcast.

As a reminder, today’s conference is being recorded. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer period. [Operator Instructions] To allow time for as many questions as possible, questioners are asked to limit themselves to only a single question with no more than one follow-up question related to the same topic. completed can is for the follow-up questions. further the a rejoin questioner queue Once a at financial press Eastern issued Technologies OraSure release regarding other XXXX certain Time approximately its fourth and quarter results matters. today pm X press www.orasure.com by at calling our or is on The release website available XXX-XXX-XXXX.

Chief be With Michels, and If with the clicking begin a to question-and-answer can link the Officer; will us which the Doug opening Executive for press website, go be by Spair, opening and with Officer. Investor Officer releases. today Ron on President are Chief you and followed statements, release will Doug press Chief our found and Relations page Ron and Operating session. Financial

Actual note statements call statements, development markets, loss performance, SEC I quarterly ending XX-Q Factors regulatory certain filings. forward-looking discussed for the its on year performance, could respect contain XX-K with per in that financial and could this and profitability, XXXX, Before call share you the turn earnings registration including may product shipments XX, revenues, fully more over affect filings Form results Company’s expectations to are expenses, to Form strategies. significantly including its that Annual be the statements, reports Report SEC its other on or and December approvals, its plans, and should filings, different. business Doug, and results other

circumstances like no I call. information turn future to obligation complete undertakes this forward-looking about are provide help that, prospects, Doug should over today. on Michels. forward-looking Although to forward-looking to With would events to to reflect any of update The this management mind available information statements call or statements keep listeners statements after based to solely as Company in that

Doug Michels

everyone, the year for the delivered record to we XXXX QX afternoon, and revenues and high welcome Okay. call. on to pleased that full year both good We outstanding and our results ended report strong profitability. I’m Jonnie. a And Thank you, note. with

Company our results increase collection There HIV are performance. We in with largely significant our sales delighted driven molecular strong were to QX, highlights. and growth continued self-test business. by the many are a With respect in

high a consolidated increase at an quarter from QX all-time the revenues XX% reached million, Product revenue for representing the year-ago $XX for was XX%. extraordinary Our period. net growth an

which Our molecular XXX% million, increase business delivered of revenues the year. $XX.X represents fourth over record QX reached another performance. last quarter a

self-test offset as XXX% Our sales QX, HIV in a sales, infectious in international business. sales The more HIV net non-renewal than consolidated contract also the of HIV a for support in in large increase HCV disease we revenues rose driven by international international fourth during eradication of of generated increase by caused $X.XX income fully HCV our result Operating basis. reduction primarily per share and $X.X a or in supply on a million program. quarter government income XX% countrywide rose diluted a the a

$XX a any the the million represents ended full of improvement was $X.XX and net a of had $XXX $XX.X We truly the Company. measure, or year, XXXX. share. for per from year end cash equivalents, million cash income million XXXX XXXX an By in For consolidated outstanding we with which

I’ll turn provide financial And call his to me your and after the then now over questions. So, let business Ron. review, take some updates

Ron Spair

everyone. good And afternoon, Thanks, Doug.

year Doug’s As introduction, fourth brief very our was our levels. you quarter revenues from can and with reaching successful XXXX see a record press release

this period. products the the were HIV performance. $XX.X Notably, our consolidated consolidated sales net $XX of compared main drivers self-test OraQuick fourth prior of Higher net fourth and million reported to $XX.X of revenues compared our XXXX. Our quarter million in to molecular product million XX% quarter the rose increased to revenues year to the XX%

X% payments fourth support the million fourth of HCV Domestic to XXXX, to leading customer with million of in $X.X we products $XXX,XXX to to million in of gain from the sales combined non-renewal in reimbursement This to to factors $X.X for public self-test due under were sales the year The quarter our fourth Our same million prior Gates of fourth of to discussed. Ebola of quarter $XX.X higher to Zika Foundation. the of have a molecular sales customers. elimination customers of the to costs of Microbiome million, XXX% Africa our and of in million million included to agreement. purchases agreement a sales with the with sales Domestic cost the due $X.X non-product other commercial due the consumer This subject of of shipped revenues our Other under our were fourth in HIV million funding Agreement $X.X Oragene HIV period Other contract quarter December in from of increased tests included and decreased increased revenues the BARDA representing quarter XXXX the higher Support $XX.X million Sales in to exclusivity of to effective quarter customer, of to to quarter increased to due quarter payments $X.X rose our certain in compared a countries revenues genomics the supply from decreased XXXX, and funding to sales professional Oragene million by our associated sales due XXXX. our the million to primarily XX% $X.X of XXXX support fourth received reimbursement continued of to customers. this quarter, the International $X.X fourth the traction with in to Africa. government into to which in the million to in $X in the in ordering period, support compared $X.X previously largely current product the Gates lower and rose of $X.X during XXXX $XXX,XXX million increased of due quarter million BARDA and of fourth large previously payments in million XX% $XXX,XXX in the Foundation Rapid our $X.X OraQuick separate patterns. XXXX. I AbbVie coupled foreign devices $XXX as $X.X Product million revenue initiative. of the the supply XXXX fourth STAR XXX% new quarter is International quarter XXXX. sales primarily from program XX% during $X.X XXXX to HIV the included $X.X Charitable approximately outside Asia. with sales $X.X agreement Academic under fourth XXXX XXXX. million XX, HCV XXX% from into agreement, the XXXX compared fourth HCV to terminated XXX% to we product health totaled revenues quarter mentioned. million in co-promotion and quarter HCV HCV decreased countrywide support

margin. to Turning gross

and and the Our to the and quarter XXXX spoilage increase scrap decreased, for fourth fourth AbbVie for sales exclusivity costs. in margin XXXX to for primarily gross revenues the due of XXXX. compared margin Margin the higher in lower absence product of of was quarter XX% quarter current XX% reported

to Turning operating our expenses.

foreign increase due a the $XX.X expenses result $XX.X higher million consolidated largely comparable in $XX.X the and million operating XXXX. non-renewal XXXX cost in lab This of Our XXXX million of the a and compared of of staffing fourth quarter was supplies, period for were government of fourth consulting supply to contract. to incurred costs, quarter the HCV as

the a as offset in increases quarter signed tax Income $X.X fees raw by XXXX addition, payment restructuring Act XXXX. lower the quarter entirely partially of In the taxes the settlement and fourth XXXX which XXXX connection Canadian of a was expense These fourth of of income expense law. period with legal costs an Tax due. reduced fourth and million, in with result the supplier same in corporate Cuts of Late the was quarter were consists the fourth associated of year quarter, received of the with $XX,XXX dispute Jobs into benefit costs were and absence $X to QX tax the by in in compared last million materials. in occurred

our addition lowering XX%, mandatory other on the profits include expenditures, global with low-taxed intangible been on to offset profits conducted an States. accelerated tax losses million calculated operating advisors, law repatriation accumulated deductibility impact earnings deemed collaboration capital Company U.S. the earnings and of and In of a provisions rate outside of in a a have through repatriation and subsidiary, of threshold. utilization corporate income, the analysis The compensation of of of above have law observations. tax In certain our we deductibility tax of of Canadian tax several the to offshore changes executive elimination the tax the deemed and mandatory has preliminary United tax Genotek, on DNA the our the on of $XX XXXX through the entities, net

$X.X in now per do a $X.XX Due profits U.S. imposed the XXXX, Canada fourth this XXXX, and losses tax intangible credits, of obligation. tax bottom-line of per in low-taxed to subsidiary, of repatriate January should limitations operating on we we so. and cash at accumulated we should to federal XXXX. imposition the diluted in envision noted $X.X position U.S. of cash of further to period do basis for without subject offset utilize for are our certain million our share purposes, income elect perspective, We taxes, Beginning earnings of quarter will paying or net XXXX. the associated income code our forwards taxes or the rules net on in U.S. $X.XX subject It operating a global to million tax tax fully for to with net not that the to tax loss reported fully income. U.S. compared we a From same in carried be will utilization the net to be share

and cash to our balance flow. Turning sheet

maintain to and cash a liquidity continue solid We position.

December in of during same $XX.X generated at cash XXXX was $XXX.X $XX.X period investments million XXXX balance compared by million compared Cash activities XXXX. operating Our XX, to XXXX. to December was $XXX.X XX, at million and the million

our guidance. to Turning

the my million the XXXX, expected with the and of as these of upcoming well transitions associated $X.X appointment retirement Charges Tang are as Michels, President QX our successor, we retirement. expected total Dr. his CEO, the Doug in During to executives announce of as primarily current are Stephen the second million with and our and XXXX charges existing to quarter of new to in the XXXX. expenses quarter CEO. modifications grants noncash made charges These associated on-boarding stock and of $X.X with associated President first retiring

Doug. we as overall turn transition our of expect costs. of look to to $XX So, between XXXX approximately I’ll now $XX net QX consolidated with share million, and And million revenues inclusive call we and loss currently a guidance, per at range back $X.XX the over that,

Doug Michels

Ron. Thanks, great. Okay,

As molecular of with our two noted in Of accounts year doubling when XX more an growing top XX aggregate customers, revenues with our exceptionally XXX% well to business full purchases than top previously, compared the increased performed year. for full XXXX. XXXX year-over-year our their

all-time year and represents last Our increase an fourth revenues $XX.X sequential quarter of third growth record million, molecular over quarter a XX%. XXX% reached of the which QX of over

commercial business the to with genomics the genetic business the most of driver direct-to-consumer markets. molecular continues be our for growth testing in Our primary and occurring clinical growth

year the For growth genomics these our growth of five. double XXXX strong commercial increased XX over top full digit purchases digit accounts of accounts in with and in XXXX, nine triple XX

business. support We future scale and believe this genome global a growth personal are of adoption our and will services trend market we for on continue seeing

On of sales the a where year the fourth where closed QX We a China quarter compared XX% to using full large revenues order quarter best [ph] periods. international was grew in the year growth, XXXX. our fourth the to prior in offering genome we to compared XX% quarter XXXX with repeat of Revenue our whole XXX% see in the XXX% direct-to-consumer in The compared Asia for front year particularly device. continue for grew XXXX sequencing, and our prior China, front, in revenues recently period. fourth Japan approximately quarter ever to strong the grew in Oragene

China in of that genetic-based products. We be the offering also one skin care acquired will customer a new first

microbiome and XXX% from to of to tripled continue The XXXX expect quarter our customers and repeat for customers beyond. these year other essentially revenues purchasers from customers our China In increase Asia new business XX% existing XX% quarter of the prior and regard, acquisition the revenues demand reflects were XXXX and continued other period. this quarter. fourth our sales revenue grew XXXX and over customers. our represented strong in microbiome parts We drive growth compared to from of in in and of repeat revenue fourth

continue in our also A customers product has growth work purchasers our in these with business with existing factor used microbiome-based key clinical being been leverage discovery of to representing microbiome support We of sales relationships driving XXXX. to customers our existing XX% is where trials. genomics

compare quarter, fourth and space DNAnexus trials our space microbiome-related our customers. informatics can were support average share the part X,XXX The over being to microbiome Challenge services secure approximately typically researchers a microbiome or value Standards in subsidiary and and months. in sponsored the generated of During labs has research. is conducted microbiome compared provide the cloud-based within XX platform revenues improve, in return Janssen, purchasers XX% the dollar Mosaic in a approximately services around agreements of provides customers new of that XXXX, also and product XX% doubled as develop, our world microbiome our to exciting collaborative Project. is with to of biopharma by a where An of collaboration repeat of methods J&J size clinical as project Mosaic

it’s For standardization sample for downstream. that are work, to critical stabilization occur activities start this a with which essential and means a input, known

to uniquely microbiome these qualified requirements. meet Our are products

samples Health are OMNIgene are of of selected be been that final Public period, housed nurses’ announce cohort. has also line this products There project, for in are will for Massachusetts. study finalized to the Under should The few We by in samples Chan health School created XX,XXX research quarter be the which Harvard’s recollection in of happy be soon. discussed being the biobank of to arrangement specific to very supplier over T.H. the this a our details a year. second newly microbiome very collected XX-month microbiome beginning of expected

that to We information. are of expands it world regarded technology microbiome has in one the been epidemiological our highly chosen the happy studies extremely for as include most

disease. infectious to Turning

XX% the revenues to year moderately full grew Our up were for compared XXXX. for QX,

strong international and the turned compared result primarily performance XXX% where in business XXXX in HIV rose Our was driver throughout This QX XXXX. HIV another is of a QX a major revenues growth Africa. of in to sales self-test growth

is the International self-tests As Africa. PSI Services Project prior million in the initiated discussed X of Population deploy list Phase which expected or an in STAR African into has self-test Africa or calls, largest to countries of with expanded South X being

expect fulfilling started throughout this Phase continue under and XXXX. orders We X have will we already

support more Foundation now our the can charitable is favorable continue pricing agreement We Gates additional to benefit offer demand. we from stimulating with the as

year. XX% we expect to We self-tests ship HIV QX XX% to in this did more in than past QX of XXXX

Importantly, outside the we increasing demand are also seeing Project. of STAR self-test

This we As will countries. Project. Francophone by XXXX this half not an example, large a under NGO. initiative be deploying as expect will in initiative comprehensive of the although funded we second tests to program the And a STAR new the large, expect target as begin

in realize markets. will provide the benefit our We are pharmacy also self-testing be The these by channel programs PSI Africa. important pharmacy participating initiated in to Sub-Saharan of the to order in market self-test in pilot into fully

than HIV HIV offset U.S. sales the declines in more Our business. our international

We domestic factors generation to to a the resulting past are same with the our trends pressures these the and automated continue price impact competition health continuing testing preference from declines Nevertheless, solution, experience the the seen in funding of for laboratory CDC’s business. on mitigate in programs implement fourth public market. we to

earnings a compared we quarter for performed when in call. during XXXX, business of supply main eradication program, full to of declined our support decline discussed the revenues length of the overall reason at countrywide government HCV our although QX HCV was the QX our which last well contract foreign The noted, Ron As HCV the for year. fourth a nonrenewal very

revenues the increased compared contribution business fourth to office. domestic physicians’ year-ago This in the HCV all from and period. XX% health, three of the hospitals public reflects include quarter major growth which the Our markets,

Our programs, needed challenges resources and to domestically. treatment HCV the customers continued to testing continue find despite support funding

Turning to operations.

calls. We in continued prior described efforts capacity the expansion

our OraQuick non-CE now at Thailand non-U.S. and This supply the will validated. the manufacturing installed, and which packaging of previously be marked product. the site manufacturing was capacity of doubles used second The for room been contractor has and

to and forecasted capacity XXXX, During plan the beyond. to we in meet demand XXXX for Thailand build additional

And has fourth fully with in our Oragene is Aradhana UBS new a want practiced our schedule. without operational Directors. leased term completion serves we address of April a noted Business doubt, be to biopharmaceutical collection can Head several and last of A warehouse to Banking, has Aradhana of As year. I a environmental warehouse be I and that a and the the with XXXX to initial Pharmaceuticals, construction final global to India this And her in early new automated Sarin as stockholders. operational Class kits her professional on our large a currently the Bethlehem call, been point be Board pleased in Aradhana on Company’s Africa. submission and for years line qualification of Aradhana approval, expected has of meeting have both in include carrier, Director built She Board. for II Global at in JP here at progressing Morgan. more expiring Alexion And assembly in physician. financial of institutions After primarily for a regulatory is lastly, recent Dr. global Development the could say, been we healthcare, Citi annual is addition XX join expect she appointed to April. not of company. experience is over years

the QX collections year were excellent XXXX. performance. molecular of primary delivered HIV self-test we financial conclusion, in The OraQuick the So, the and both for business full results this and drivers

you these the I Company. products. Tang, future that executive. fully know OraSure as businesses why necessary understand the demand investments in you in our I and in we’re be expect the performance was will to to and capacity individual very a to to for our our He lead part strength will am is XXXX, of expected he come confident making manufacturing talented will continued meet Steve expect take he We impressive an big also the new a chosen heights. that

So, and Year are New in with has summary, we significant starting stronger business our momentum. never been the

will We year be another OraSure. successful for expect XXXX

that, your Operator, take now please questions. with proceed? So we you’d if will

Operator

first question Instructions] with Jefferies. from Our Brandon [Operator Couillard comes

open. is now line Your

Brandon Couillard

And guess, relative DNA thanks. as Hey, the appreciate details Doug, Good you and segment? of in percent customers that big around we of for between think how mix sense that of U.S. can give customer, the customers sort today? about the just overall a then, part Could anything in top I terms terms size all five can revenue us the share afternoon. of secondly, where I question the Asia is business. there. you -- of Genotek Asian so of of business and a two-part the are O-U.S.

Doug Michels

customers our business business Yes. Brandon. or by by don’t out We Thanks, break segments.

can’t terms I give granularity five unfortunately, in top of customers. of So, that our you level

from I majority think, business although smaller. international customers. across you’ve certainly our that across today the the significantly. broad-based commercial the we’re in our The revenues growth with growing got of business a customers continue top our whole it’s prepared Obviously, be genomics our remarks States, seeing is generated sense United to

the for believe opportunity, very the Asian sure. as growing behind and market. We development the significant U.S. represents perhaps of a also years that several that market it’s a significant believe So, we percentage do

significant there be we consequently, to And coming is growth that of Asia. believe out so, future going

Brandon Couillard

business us DSO then, one, fourth margin Ron. could for year-over-year, Number mix, Thanks. fourth the a the in helpful that gross factors? bridge the year-over-year the would the think, business And margin spike add DNA you And quarter, there? two, in can given would at been in actually contribution the the color any deterioration would growth that two-part in terms step-down you help have number quarter? any higher be other the of from I question Genotek

Ron Spair

Right, right.

significant the we So, revenues a addressing as DSOs, through so, pretty we did move quarter. have amount of

with the year-end the us there on collected. Christmas, holiday of which then Brandon, our which put and season, as us far balance customers of -- through -- for from demands So, had significant got we as into a most were into as lot have subsequently at our receivables part a we

So, that I coming was checking a here. today fair on of and just is already amount cash

approximately in from at was to down we also had fourth quarter in that from DSOs margin gross the as Western I perspective, points. some been HCV about the XX, eradication in last So, pretty this XXX the for amortization. had, program the of From wrote That I margin. of quarter they Then, the telegraphed gross the the XXX be with year biggest time, selling contract would fourth associated our the fourth That of where today. product last driver accounted had our will that think of that’s the and basis another for amount margin charges points imagine sit and quarter year AbbVie nonrenewal quarter. single basis discontinuation also for the a exclusivity March for significantly and call, product we a we reduction that accounted we Blot off

we And we they through we items are in that anticipate XX% into margin we forward. more that see we here and uptick approximate And those don’t -- as actually expect an that gross from of all items reported. are our move the of will going QX so,

the the to our pointed margin operating year-ago sales quarter. that objective self-test Doug And as line. out, to on of test fourth in higher our HIV is the compared and with also, you gross income quarter recall drive We concede enjoyed if

over we’ll I But XXXX, we helpful. that eye margin that’s Hope need levels that where something achieved keep our grow again, in to accounted over expected basis of revenues in And to in so gross QX. all-in, XXXX. And think, see in margin loss. for that’s as approximately ended are a in XXX we’ll pickup QX on points we our well

Operator

you. Thank

next James. Jansen from Nicholas with comes Raymond question Our

Your line is now open.

Nicholas Jansen

all Thanks Hey, color. the for guys.

XXXX certainly, DNA the side, Genotek everyone. the First, surprised in demand on

kind you about of your do I’m get the your Any level off expanding sense be growth of growth exiting of near? be medium-term visibility I am biggest color so, on patterns will guess that And are any in to customers. now but that of preparation of color there sure based I the today right saw growth, appreciated. feel helpful. trying ordering for the we capacity trajectory to near-term visibility How we phenomenal on would

Doug Michels

business. think certainly bullish the how I we indicator on of that’s are an molecular

have I HCV countrywide to our program. first guidance revenue related think, revenues a any the eradication doesn’t quarter again from perspective

So, we demand strong anticipate business. continued our molecular well our across as as self-testing HIV

One fourth and things telegraphed was collections that in that seasonal quarter. our the we we business expect of XXXX. the certainly we Obviously, in the enjoyed molecular impact saw that will in continue

going out the We’re States have our learn to genomics to DTC to here continue both consumer across that different as abroad. how plays as customers United and well

So, we But stay that we’re you the broad-based growth is, molecular across based continue the saw that. to on our stats seeing as business. tuned bottomline shared, on

Nicholas Jansen

That’s a helpful. growth. this drags but just thinking of for continue better on and somewhat be portfolio be and thinking Steve might the to about abuse And Company, about maybe just question the cryosurgical Tang the substance

give more DSO a like on It pile. to down and you pile that even is growing. sounds record would coming sitting now credits once cash You’re cash

just to sense strategically none-core back how So collections differentiated divesting get Thank some into a to to to putting what or the perhaps about very stuff trying be capital could thinking of you. the be a plough that we should maybe of looking opportunity? molecular work

Doug Michels

the a refresh strategy conducted. process will that a is move that the being all that that’s here think of in early part undertake we through and the as a will team of at folks part I Steve And our XXXX So, take and well of the look advisors business discussion. using fair involve and for forward. own And as internal path to up outside game whole certainly, all is determine that as

But, on little probably come So, additional under cost something think some road, a also, up. at just as And drive quarter, certainly down Nick, so the consideration. premature moment. first the more that’s the heads to we’ll I that it’s in

Operator

Thank you.

with comes King. from question David next Our Westenberg C.L.

is open. line Your

David Westenberg

Hey, the It’s on guys. great guys. work for question retirement. to Thanks taking congrats with you, and

of figure So, baseline trying I HCV. there Can of for follow-up region? of step step sense I Asia expect kind might down that Asia. you HCV a and of is give call it talk the this about you as mentioned to a a still bit HCV with other terms to you -- And the magnitude on in ion asked in a ordering kind I projects going was that ordering you but us coming down that the in am back? prior kinds terms little Can question, and out how of in of in maybe know what of

Doug Michels

Yes.

So, relative was down That’s related improve to to make to XXXX in in that’s step in that it and business primarily our We there. anticipate primary that the been to working we’re do happen. going Korea. Asia, the contributor

can’t doesn’t on I at future are in with on eradication into We number And we’re report may or and continue some predict working stripped to a opportunities. countrywide contribution translate given these different governments. Like since But that have significant the of discussions globally. to not going of to translate don’t be we anything programs, focused revenue. revenues subjective basically now, to It in mean that to call, I P&L. last said times when they’re large multiple our on opportunities difficulty I we’ve into the out have we predicting right least when

this of at good for business quite point in growth And to time. at you a we OraSure. for be for see the it’s going year time, So, And guidance our out is the expect XXXX is our total same handsome. projections revenue growth

David Westenberg

or you I legally licensing can? know give us like, a look the what it, you if on yes, a can might we’re month sense payment So, but into only

Doug Michels

from other Ancestry. providing on income. detail level We’re our precluded with Those that settlement recorded in of revenues be will

other provide for quarter those items to And income we not the subsidy Gates May. it relates do related. income first other on our are product and total first call report in We in from BARDA specifically will granularity that received income, income as quarter other some in

total you’ll or of are get specific on of the rate. So, can’t revenues terms royalty what some dollars related but payments, the we to the specific royalty in sense either be that

the sharing precluded from just by contract. We’re that

David Westenberg

the same have payment, in the sort rest the Perfect. industry. But that of consumer assume probably particular would of would, I cadence as that genomics it

Doug Michels

with would seasonality we’ll be will anticipate that element to some that. have there of associated I experience. Again, through learn

David Westenberg

the one that? And with kind in update I’ll on should if any anything Ebola, after then, -- Is would whether if and there of pipeline next squeeze I expect the more there be when can. Zika we or

Doug Michels

of expect XXX(k) from studies primarily we contract to to Certainly, from the clinical continue for Ebola those XXXX through and we we’re that to approval. are secure BARDA to both the year payment going products. to BARDA receive this be for related revenues beyond conducting benefit that

the Zika directed technical development front, during mentioned had We the previously the progress we largely make appeared On cost. issues quarter. We Zika paying primarily some be resolved a good the right that couple fourth to that now. for revenues of to on are development did

that we’re as emergency for our can further moving use clinical some on build test. used basis lots submission be development where authorization that will we So, into the the Zika for

relates in strategies, right as board to emerging development one got and strategy Beyond will we I new that across certainly the activities effort. other diseases, look indicated in refresh as that be product Ron our process that the focus area And of it R&D think now. that we’ve strategies,

Operator

Massaro with next [Operator question comes Instructions] Mark Canaccord. Our from

Your line is now open.

Mark Massaro

retirement. Congratulations from Massaro in Mark great Doug, luck quarter; guys Canaccord. best and of It’s on a Thanks.

Doug Michels

you, Thank Mark.

Mark Massaro

lot that First continue deliver just of dozen other know, least number past parts where an you half question later a it whether not was we terms at a this eradication maybe or the year? are C update I so, rapid the of in product? in is But, to of would HCV another Doug, evaluate or as eradication, to and on Hep to the expect love are countries C your business. there on know Hep the questions of I

Doug Michels

Yes.

We about spoken of we’ve we substantive vast with those. majority governments to And more continue we’ve the I will that specifics in to said, those you about be engaged we give At previously. something color time, don’t. got say point this like more and when

self-testing when like those that keep molecular And a on other so, business. revenues and to as are to to parts businesses the HIV business, to focus model I easier prefer come, frankly like the project little significant going are our the of

Mark Massaro

X.X your I it’s it, feel like microbiome okay. got a Company. We’ve very Got underappreciated. much million as record of at

is. don’t people what of lot a even know think I it

did You of you’re that involved a examples provide contracts of lot in.

from piece collections But, you about in just or microbiome maybe research to bucket molecular you the vast business, of to But expect the other the confidence next your think trial the product development? coming commercial I your guys academic pharma that obviously, year? as expand even is revenue with can majority context over on larger contemplate speak to this of customers. this biobanks As side, the to the you academic clinical do specifically,

Doug Michels

Yes.

Mark. thanks, So,

think or it’s We just or year even continue of year-on-year. clear, to the in in important, out microbiome pharma, market. clinical either that’s are our pharmaceutical largely most studies be And I business revenues of academic for with think applications research either had But clinical still microbiome it’s to coming going XXXX, sure. Right? a than trials. business commercial in great we our the tripling research more market

believe we X excess that that million we publicly of have XXXX. can do We indicated in in

off so that. X.X better almost doubling than will we So again. be Hopefully, that’s million,

largest And about utilization the are pharmas, that discussions they of programs talking samples collection microbiome that going and nurses in actually on. Nature all you Harvard so XXXX their the thought we’ve the that across published their stabilized are collected remarks, choosing inclusion standardize Some were in for out in highlighted the that have that our Mosaic the in in the was inclusion to important in technology Study are commentary products project benefit prepared of Human cohort, specimen our Longevity study space get it’s where of the the we in multiple benefits of with this that this comparative our that most leaders provided critically research. in some

establish Our we’re this of to in we’ve specimen that they into in to and OMNIgene the be that research space is put goal use good the to progress there OMNIgene. as in think going there, we’re commercial is opportunities, examples are community, highlight stabilization continue making and gold move no research use to standard regard. out going for comparative out And so support applications are I -- research. going that once question And that going to to the collection these

it’s the you big business, it, though road. very And down like excited like of growing are it’s contributor be a even sounds it So, our and small Mark. genomics we about relatively part a we’re substantially can believe

Operator

further no showing I’m you. queue. in questions Thank

closing I’d call Mr. Michels So, turn over the for like back to to comments.

Doug Michels

call Okay. on your for the Thanks us everybody for tonight with being XXXX. support in

We’re Have a looking the just afternoon delivering calls. forward super forward and everyone. evening to future XXXX and look good to

Operator

Thank today’s Thank Ladies for your conclude participation. conference. you. very you gentlemen, that much and does

day. wonderful a Have disconnect. all may You

OraSure (OSUR) 7 Feb 182017 Q4 Earnings call transcript