OPGN - Earnings call transcript Q1 2020

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Operator

Mr. Green, you may begin.

Joe Green

Thank you. Welcome to the OpGen First Quarter 2020 Earnings Call and Business Update. At this time, all participants are in listen-only mode.

remarks, be prepared Q&A management’s the there a will session. Following

being reminder, May this a recorded conference As is today, X, XXXX.

Before for caution review with the including, Exchange you its subsidiary conference would OpGen’s and SEC, future XX-K like filings forward-looking XX-Q materially Commission, the that statements. made in limitation, operations I and will results OpGen, regarding that I differ most the may this which actual including those events or of statements factors the quarter management call Form we during recent first be without and company’s by specific encourage may of with XXXX the forward-looking the cause Curetis. Securities results described from to that begin, of comments Form contain to filed you to identifies

results Factors from business implement services synergies regulatory competitive the our other strategy; the of and and but include, COVID-XX our are and clearance and that not of as the our of well achieve with partnering current FDA commercialization from proceeds product use and the in company’s in global our factors. of combination business in efforts for affect warrant hospitals operations; services; pandemic adoption particular; for to, well situation general the on new our economic successfully strategy; and and expected requirements; healthcare the and ability COVID-XX XXXX we the on Acuitas other existing pursuit providers products for in success combined of current business rate pandemic the use Panel company and bacterial as isolates Curetis may and effects the AMR with Gene as the as other of proceeds the offering by to exercises; company’s our limited that February the our completed to commenced at-the-market from of that recent impact

time-sensitive obligation undertakes the update contains statements this the live conference revise of by only except required conference information company as that this is this after May date to or for no call or of to law. as circumstances date The content The call, XXXX. events accurate reflect call, any X,

today of will Tim and Joining President CEO; the and Oliver Dec, be Schacht, OpGen. call CFO

now would turn to Curetis. like Oliver the business the the over of of to appointed Schacht, OpGen I CEO Oliver? call the completion with combination recently following

Oliver Schacht

pleasure share Austria. vision Thank share and you, you the for on at company, Joe, and our this the everyone Ares teams the first call joining and new newly in Germany Vienna, my Curetis in with that a you afternoon. mission Genetics we for including to combined OpGen thank of us earnings at as all It’s me CEO here

resistance, All of looming antimicrobial of here share a address the ever-growing us AMR. vision crisis successfully at to OpGen or

tests rapid diseases Our indications. infections their mission and in as well pathogens infectious as as identify tract help life-threatening bioinformatics hospitalized diagnostic develop resistance and profiles with is severe solutions rapidly patients urinary other that to pneumonia, such to marker

the lives save best really help is select weapon preserving antibiotic meant what effective applying as help antibiotics stewardship, principles most fight an will testing the rapid the by antimicrobial improve and appropriate medicine Such therapy, doctors is This disease against antibiotic precision resistance. and thus setting. to in infectious

knowledgebase algorithms. intelligence-powered strategic and database and deploy our Acuitas prediction Lighthouse PCR as and our services and our offer partnering To opportunities our for sequencing well or at as platforms as is strategy that artificial such to NGS-based end, OpGen next-generation here ARESdb Unyvero

as Africa, tests CE-marked broad Latin Europe, countries into East, sell well vitro XX exciting we our in As a America. distributors combined have in business, diagnostic Pacific that in of the FDA-cleared a portfolio China and cleared or commercial-stage portfolio soon be via products an Middle as we to of XX pipeline, Asia

On today’s pandemic, OpGen’s quarter provide discuss the brief combined regarding pipeline and XXXX recent first overview developments COVID-XX a will we global call, review company of financial also the results.

we On strategic Curetis, April new both transaction. of X, diagnose to company infectious between XXXX, leadership and designed following Board team company’s OpGen through combined sides, and diseases. and Directors. transformed Curetis of the and announced fight highly synergistic business highly are a to business complementary the relevant support shareholder strong The the life-threatening help highlighting platforms and a rapidly The on the products OpGen completion and combination

near second an medium look This quarter the attractive financial results growth We profitability achieving broad and term, the company reporting of opportunities to and but for both forward the combination thereafter. tremendous combined of supports opportunities, long scale. also and XXXX reaching for revenue portfolio anticipate we combined term undoubtedly in future value-creating and company

national Before put quarter. hospital closing the it the updates, extensions like into The surgeries the global of address status directives how impacted business extremely of and of regulations business elective this hold. studies Government continuation to continues be I on orders, of COVID-XX restrictions. travel our environment and majority to the as continue been canceled to the the clinical challenging diving disrupt and quo would has the pandemic shelter-in-place borders have with and

In practices help this the healthcare to increasingly operations fight on against Accordingly, our of have the to in the adjust all pandemic. safety virus difficult health and have business assist continued capitalize environment, and opportunities employees. speak it professionals managing matters prioritized to the COVID-XX regarding OpGen unrelated to and become has with we to

our and drivers remain of business Fortunately, the fundamentals strong. core

testing. towards DNA need, mitigating we our product impact the combined as on highlights efforts development COVID-XX the and pandemic and solutions, company call March, crisis. further the RNA COVID-XX obvious of the disease adjusted augmented infectious our this have mentioned As address for such need medicine To in rapid precision

rapid via Curetis OpGen partner its continues strategic by BGI throughout developed marked its Europe. and kits supply to subsidiary PCR test CE-IVD

its CoV-X network kits of received Curetis the BGI via distribution than shipments EMEA. mid-March, of in since product then more has first were tests and The by sold in XX,XXX BGI

updates test that own our have States. clarity developed and of the CoV-X regarding near commercial We’re continue at proprietary the in in the when we future. test, looking kits, United to available development and PCR-based potential finalizing pathways provide we’re announce currently more in excited to the addition pathways Europe and We’ll launch approval the BGI timelines distribution is in and to there various regulatory are

panel. Curetis the provided specimens, cartridges study we patients HPN, recently and pneumonia with additional unit Additionally, and Unyvero an for COVID-XX bacterial intensive Unyvero Sweden announced the care these increased in Institutet or to Karolinska of well in already collaboration to co-infections HPN the the for with using Karolinska the start pneumonia critical hospitalized enable investigator-initiated identify admitted is testing additional throughput analyzers has to underway.

at much a units COVID-XX co-infections. crucial higher bacterial and is as of acquiring ventilation, whom preexisting in risk a This many especially study patients, high-risk intensive have on conditions are care of

We are expect soon publication. results available as for update as the initial to coming see and in results an provide weeks will we

had Curetis of FDA of XXXX, BAL, an expanded of panel Pneumocystis label Unyvero December markers. antibiotic-resistance and include our bacterial specimen, In testing the a received bronchoalveolar for for or use claim pathogens for respiratory lavage in clearance range broad and to to lower addition

increases addressable in which the United indication total first uniquely Unyvero key BAL the relevant immunocompromised makes especially this FDA-cleared test This differentiated market substantially includes and system States. patients. for Unyvero the as the test new in The pathogen, only LRT BAL the

focusing with testing are the The systems here campaign cartridge, this Unyvero a COVID-XX LRT immediate HPN in COVID-XX European transformed. been addressing States LRT the co-infection are BAL product outlook Hospitals business crisis exciting with running we our and United for entirely pneumonia new overall this the matter. As and cartridges. has on health

out otherwise New Unyvero laboratory many and evaluations resources. free to have hospital and pushed installations system new been planned

installed That portfolio some in urinary Unyvero said, research-use-only of the our additional the at Unyvero of cartridges we of for States for United labs have infections new analyzers a of recently tract chain under running labeling. northeast

and installations also completed have first first lab U.S. the linked successfully Unyvero information in quarter. We of the hospital systems recently to

an for number the with likely tool the the COVID-XX patients pneumonia a become could ill ventilators, important acutely rise treating of in in on track them comorbidity, Conversely, bacterial many intensive and as units complication test care hospitals globally, respiratory with patients. lower the Unyvero of and many hospitalized

online some system end directly X installations new of time of is accomplished partners. is The workflow ease training Europe remote installation continued, sessions setup. Recent such to approximately of distribution intuitive minutes lend via with themselves the Unyvero alternative. training virtual our held and and in of Hands-on customers use and have viable support virtual a

call developments for turn I’ll and for Tim? Tim the business. over financial the now the financial review who quarter will first results recent to XXXX Dec,

Tim Dec

the you, Oliver. was down The collaboration XXX,XXX, first from a our of revenue. revenue contract for first primarily final Revenue period. million prior well State Thank quarter OpGen XXXX the from milestone decrease lower the as was lower than FISH of revenue as stand-alone reduction of year X our from that was York in to as for XXXX, in legacy due New the quarter

Ares and for the did not Curetis of combined generating until revenue was XXXX April quarter the from to year-end first pro X, XXXX, over be approximately the Additionally, totals it revenue pro business X.X quarter XXX,XXX combination Curetis revenue of by generated excluded of for Since revenue forma will reported occur that unaudited $XXX,XXX, in XXXX. and the million. important is our quarter note first forma for Ares the

the intangible loss $X.XX XXXX first an the XXXX. of with for million expenses as stand-alone first legacy related share assets the the Included were with associated of of OpGen X.X million $XXX,XXX business. business XXXX or $X.X FISH and in XXXX of costs compared in OpGen associated X.X $X.X million $XXX,XXX for first per approximately impairment charge compared combination first XXXX. quarter first to were to of or in of quarter with stand-alone the X.X Operating our for the quarter quarter million for the million was in $X.XX Net per quarter share for transaction

continue As COVID-XX pipeline key transparency our during the we financial to metrics. business, the through and we prioritize will navigate pandemic, of and

providing will any other be We guidance revenue or today. not

during in as expect coming updated this company business climate cash to provide However, a months I we have unique the say outlook detailed the and that of operational will reviewing the and evolves. structure combined and been burn more expense the time,

I like conclude prepared on remarks to our my cash position. everyone updating would by

due business to last few X.X million trading the BGI shares roughly our day. Over bump through been combination and our the efforts and daily volumes COVID-XX has primarily completion with tremendous our seen of months, battle with volume others. of have collaborations our average stock the in This to per we

raised from exercises we Because both warrants of this issued October public approximately $X per strong mid-February share in through XXXX early since and $XX have May, our facility the ATM million support, offering. of

selective the quarters. and appropriate We ATM other a the basis will continue financing coming time facility or months alternatives the to utilize at on over

are outstanding XX million shares shares. current Total approximately

Curetis, from March pro of our have at As cash XX, would reported with million. in million cash. XXX,XXX XX.X the we $XX.X XXXX XX, been XXXX, forma Combined cash of March

With key turn that, back call additional I’ll milestones. the Oliver discuss to to

Oliver Schacht

development some questions responded XXX(k) called Thank XXXX The what I like to Panel activities. with key submitted in you, an we for the extensive Tim. agency May, highlight additional of of information would commercial Last and programs the isolates Acuitas now request AMR Gene FDA. July OpGen’s is to in letter.

early January and additional we the final the received we we’ll the all to review to submitted open remaining of to mid-January. agency agency’s items a any in responses In through address the by formal FDA the work process. to majority the posed we have interactive FDA which with questions first XXXX, responded quarter, from Through continue after questions questions,

we review the delays timing diagnostic Acuitas COVID-XX believe a timeline, completion, consequently, is experiencing as to exact the decision Gene a have attributable isolates While for process test AMR to clearance pandemic. the is review in the been for currently now nearing the Panel remaining unknown. And we modest obtain

a review in However, continue decision of the to given coming clearance time-bound months. the constraints the near-term expect FDA FDA process, we

on nine trial year, novo. Urine mentioned of had Acuitas by enrollment earnings centers accruing for de samples this all AMR March previous this urine call As anticipated Gene mid-spring. clinical Panel We our for had the in completion we the

further notice. pandemic, that have COVID-XX clinical sites trial trial notified activities due ongoing our the until suspended us However, to clinical they

could We efforts support on until sites as laboratory last that program this focus the clinical estimate early currently freeze COVID-XX pandemic. summer the to

primary We’re assets of unexpected of company this platforms making including inform bioinformatics pause solutions. and our of future by pipeline research combined prioritization conducting in the market survey full areas, across to use all the our of programs trial and of indication a of portfolio the various market comprehensive

State research State a York all state-of-the-art to Additionally, successfully progress OpGen has in Initiative. planned slowed New healthcare Health the program had milestones with collaboration at program Digital hold Department Health statewide. New the and participating been with develop and to New York Health of ILÚM completed put Solutions resistant antimicrobial Center the by the COVID-XX hospitals. emergency In institutions track, has and response manage infections detect, Wadsworth on testing the in State, to under York

the first currently that completed the the into although are year. an the has as first milestone we as the all stakeholders contract discussions for slowed, We’ve parties ongoing, update the second progress will a also And Negotiations is quarter. there and soon project by and collaboration provide a successfully final year available. continue would of clear between in expectation

With pre-published the subsidiary Microbiology. has testing study potential feasibility the recently identification sequencing, we using publication a of been regards the to and This pathogen study Genetics, the bacterial announced or Ares Clinical susceptibility next-generation of Journal NGS. recognizing antibiotic in of

Data from ARESdb identification study Infection Sequenced whole Identification titled platform, is Isolates Trial its and testing Resistance Antibiotic intelligence-powered the on DNA artificial the Species aresgenetics.cloud, susceptibility Tract Respiratory genome Analysis of Genome on and article database, Unyvero antibiotic reports Prediction The based a Analysis Whole reference An - of sequencing evaluating by Ares Lower performance and using cloud-based pathogen ARESdb. using and genetics underlying the of bioinformatics

Overall, seen we the and our strong data, inflection milestone as partners. well IVD corporate from current from the this about upcoming we’re IVD Based potential new have inbound interest tremendous as collaboration. Ares partner excited in points validating really R&D on interest collaboration

partner ARESdb. everybody, exclusive which XXXX, of exercise a for to we XX-day period for the commercial certain R&D to in of negotiation and for rights remind upon quarter to Just option is an project third the licensing the completion potential occur our expect there phase, partnering, the to

travel combined for company. While to ahead face the chain disruptions, we challenges in that the we’re supply policies, stay-at-home continue sporadic confident with restrictions lie and newly opportunities

the decision, inflection Near-term regulatory as Panel flow launch and stream points. additional future AMR opportunities clearance for Unyvero value in licensing along with Acuitas the clinical United test, Chinese pneumonia and for of strategic milestones, isolates news exciting the a very States, FDA partnering Gene of and an and expected upcoming trial the make approval such of and upcoming

In tremendous platform Our to disease and to combined test business create has develop potential on post is novel infectious and of closing place between the outbreaks. company recent formats future the address elements extremely integration, identify, flexible Curetis. weeks, agile, made and progress in needed transaction rapidly OpGen we’ve

customer FISH May have as to FISH to integrated Inc. QX, Curetis on will Acuitas transfer and to sales Denmark A/S down. team A/S facility is marketing and team X. all all Germany commercial products Unyvero bioinformatics and into for closed team is in a which joint leads has The OpGen across CRM from U.S. Our been OpGen, the system. and track Curetis members the joined employees be from The funnel business European in effective integrating OpGen after

ahead. provide market the running and are based The review expect R&D months we full portfolio teams portfolio and assessment and and operations synergies to the strategic on aforementioned a prioritization in and weeks updates exercise, sounding decisions on

on teams one regulatory group towards finance and of strides and procedures. sides systems, tirelessly The IT are teams are bringing regulatory at integration and quality common company’s management tools the both philosophy. admin systems Our together processes big under working OpGen making

a lot combined in people plenty to stronger grow There’s a professionally and and and business organization much excitement of streamlined grow are the of seeing the business. in opportunities

the of appreciate navigate first in exciting we pleased equally very turbulent the In results these our closing, support light as global times. of XXXX quarter ongoing your we and yet for we’re with pandemic, through

like call to operator the questions. the I to would now back for turn

Operator

Thank you.

session. begin [Operator We will question-and-answer the now Instructions].

comes from O’Hare. question line of Wiktoria Your the first

line ma’am. open, is Your

Wiktoria O’Hare

Wiktoria from Hi, Oliver. is Hi, Edison. Tim. This

couple here. a Just questions quick of

how that thinking if did drop-offs to compared see for what other being, also, And company you March And be in few run was it? the should so, any the in next quarters? is we first The rate big significant question months? the of

Oliver Schacht

Oliver. is this So

first milestone which recognition thanks, crisis first legacy from to question. When FISH pointed revenue, drop-off you effect look it as project. the State business, seen the one-time So softness sort the as revenue all, of was, quarter the well for due with of some the as Tim a have following at in York in primarily out, COVID New we the

although So fair is into certainly of in crisis. positive too the of that, I the second XXXX, States, see impact we’re that quarter that challenges in to we far the United a say the impact compared continue read making would ways. but kit larger see goes the so There’s second I quarter We Europe. from see wouldn’t much it opportunities COVID We COVID say, there’s it both to seeing test and that then QX. to definitely in business

Wiktoria O’Hare

Okay.

my second into question. led actually that So

now? co-infection bacterial performing how the is So right test of as

Oliver Schacht

Again, just clinical the of start the with early Karolinska. announced days study because as we

clear, as LRT in in to the existing, testing co-infection the well Europe States CE-marked product. using as Just United our be HPN both is Unyvero and FDA-cleared effectively

So core the seeing such lot the side. taking place being a simply pneumonia certainly for the surgeries orthopedic this equally example, time. a other softness indications as postponed, But lot positive of that as, surgeries on with we’re is these elective part seeing of at aren’t the business. Again, impact of panel on

Wiktoria O’Hare

Oliver, my Okay. you thank for answering questions.

Operator

Your question Ben Haynor the from from line next Alliance. comes of

line sir. Your is open,

Ben Haynor

progress questions Thanks taking gentlemen. the on and of afternoon, Good congrats the and the transaction. closing for

is me, FDA to? you Acuitas that questions are submission, of in now terms I there the FDA’s respond off or didn’t court ball the understand if need outstanding First some apologize missed I in for guys the still just or this, to I

Oliver Schacht

That’s of We do is some open to Thanks, them for our feedback back current with us. court FDA. Ben. in responses. a come on of expect questions The question. no the ball good There’s earlier the

reviewer. dialogue interactive with the or in We weekly, our active agency lead have been very and

open focus that here that, a the on trigger last redirects the basically at So anticipating on they’ll And on authorizations, use responses near FDA countdown they’re decision hopefully once next their recent of in is in just here. of dialogue by we they weeks are there then extra the the to then advised constraints. have, of interactive the after the the response given They news taken then remaining a to a and bit And clock the get that would clearance we extreme capacity very we step time address very agency. any side. agency that formal have that’s get good on some until due future. is send our counter may need a good But emergency feedback the should would us

Ben Haynor

color emergency thing The maybe about RQ’s helpful. it. And curious rapid the the goes whole through there how the just get obviously to Got just might is agency kind on of thinking how very of coming COVID whether along then I use, a the Unyvero on possibility, was be a timetable. that and on on, development long depending AXX more

emergency So authorization is just how and use development for that of kind potential on coming the product?

Oliver Schacht

platform, That of next AXX for quantitative an with terms timeline, the into – really will analyzer expansion platform cartridge. the a basically So us in purposes, year. Unyvero take a faster and of smaller everybody’s that is development smaller,

being foresee emergency So I that use an don’t authorization clearance.

We platform. are partnering number licensing collaboration, that around in a strategic and of discussions

funding full look this perfectly industrial be time, But accelerate development warrant any than things. partner it, feel the that timelines. And that XXXX to get authorization that on to putting in Again, and might potential menu It’s its be rather part non-dilutive that currently honest, might going look might certainly potential opportunities to ready at for of could probably and is number that year. party so also in platform, accelerate a emergency that grant extent of we’re be certain order exploring. to third use future prime

Ben Haynor

some the the revenue any the then for you be Can of that talk already guess recognized on the I that business and you particularly there. how have that of sense about there side. you’ve Thanks lastly in Ares of quickly for that bookings update and you as business visibility – Curetis the And with work Okay. me off how some booked? might

Oliver Schacht

Yes.

the right So by program prepaid did the XXXX. Ares in partnership fairly is announce that time that’s fully The at a also that R&D corporate partner on corporate option. the We the now. September prefunded straightforward XX-month announced it’s the for We IVD Genetics, partner. of

fully So and missed quarter year this what beat. a we’re year into QX collaboration on revenue collaboration. this effectively seeing QX in and is is That that recognition of under not track. the We’ve first

and step So in the delivering of every the team executing Vienna is way.

bioinformatics. not we in crisis, affected COVID to be from any home. that good anticipate program the adversely stay despite That’s about at way the all So the thing

actually do of as can things from home You lot well. office a a

not again, option, a – Again, at a the which program should having the we economic exclusive terms. complete that timeframe that predetermined in once they that’s first phase that of quarter. have refusal. partner. And with So more exercise a XX-day set not It’s development of would third right a anticipate can they its discussion the strategic is negotiation. of they It’s

license access So the to it’s the with certain and talking basically bioinformatics exclusively them scope about database tools. and Ares

And And in nice now, QX. it this then QX very, a The more up continue extremely we’re the year. economically teeing partnering part opportunity is spot. a I’d latter attractive going more hopefully and to so we’re revenue very broader, engaged, and in of involved for right recognition throughout say

Ben Haynor

taking That’s helpful. Excellent. bears attractive questions, fruit. lot for extremely a And gentlemen. that opportunity the Thanks very hopefully

Oliver Schacht

Ben. Thanks,

Operator

[Operator Instructions].

from comes question Chen. of Yi line the next Your

is open. Your line

Yi Chen

going taking market year? for Acuitas – the the differences Gene AMR the could test, in my considering forward Panel test COVID-XX panels, for potential also, any? these Could on what’s potentially you particularly your pandemic question. versus the Thank the us throughout for commercialization size Acuitas comment Urine there’s gene be the strategy if you isolates And for with of that

Oliver Schacht

Thanks, Yi. question. Sure. Good

or per is same isolates So panel AMR Panel, the assay. whether first urine se all, fundamental of the the of the Gene difference, for

advantage would there’s bigger outbreak epidemiology bacterial has urine monitoring bacterial it, or infections settings. isolates the they from the because market let’s whether tract States, isolates that’s working other come first in I Now would of is the cases critical which at clearance, urine specimen. of in, opportunity substantially isolates, The and say mostly panel of severe be the over looking urinary well United call the from million course X although

are So the applicable. basically building it validate a infrastructure, on Gene allow my Panel In to the continue start the get assay. going sites that we will proof view, the us the running is the up on AMR trial broadly it’s very get proof FDA great of platform. It’s the platform. It’s These also can I’d say to clearance And commercial the then base the Thermo Fisher and we X. out, installed the sign while with urine launch urine. QuantStudio customer

Now already how that We sales do the about into team Curetis we think commercially? marketing have and USA fully integrated OpGen.

past operating Atrzadeh, single Emery, a Faranak Chris So with leadership effectively who one is Scientific into Officer the under been folks OpGen the – it’s Curetis for as as Chief this and Commercial of Affairs as our the team month Americas; Officer. our one for team Marketing well Chief gelled and

the the urine customer future We’re and well as accounts Acuitas in same as looking the Acuitas at exact for the panels. Unyvero respiratory both AMR track lower

real a So there’s here. synergy

cross-selling New is AMR points to and companies’ fair going the a say laboratories, we’re York same vice research preparation. the putting about really use figuring whether panel market certainly out Acuitas for and that if ready funnel an only together the then the We’re and to call adding education account It’s hospitals, State. sites, it’s both Unyvero for – started thinking opportunities current same Acuitas users approach, current same the we’ve account or versa,

although at coming knows acute course, the phase with the COVID-XX think of the in least I crisis long are, months right. should is Who how hopefully You us, subside.

available, in a sold through the once always is possibility. be wave But all second combined the marketed is the would the there will team. and certainly preparation we commercial that’s that Panel AMR Gene Now been put envisage,

new not operational. for looking the we’re and channel-wise, team us to it’s a U.S. FDA a in is give That weeks in the excited commercial to fully team. product coming place, really now market launch waiting green here build the this light months. and they’re and in So having at And

Yi Chen

Okay. Thanks.

SARS-CoV-X since the manufacturing demand Does number sold tests mid-March. XX,XXX customer you the mentioned Second by Europe that question, you reflect approximately is that number in limited or have capacity? true that

Oliver Schacht

that certainly say was the over to come May. improved to fair early Supply by. month in it’s hard in into the – supply extremely substantially days, April March, of Well, has in

platform, what is to we’re potentially And QX that This is is another certainly, the XXXX It So it’s working number segment a which things our own of again, of the far increased And so a Thermo March. a certain their network. test PCR instrument significantly system. seeing on addressing we’re in also runs systems. Fisher compared sort runs also rhythm. similar other have on through distribution ABI These market.

regional through, Health a various lot see of for being handled example, purchasing markets. World You the in Organization offices European

So I think there’s here. definitely potential for growth

standpoint. other to kit, a standpoint, mentioned cost we of thing – test our turnaround on on as also believe we’re remember coronavirus is we The working goods will which though a distinct we own call, from this have certain advantages, from both

allows a preparation. the the PCR, developed eliminating swab that differentiated and completely unique specimen proprietary need into straight truly going RNA buffer have the We from for

of short RNA in bottlenecks It’s QIAGEN Now this with, prep. the $X out out supply. significant, kits it a also work great right takes the time, which to only that prep situation takes about XX the key in these they’re prep lot assays. per on are A of $X for of kits, actual cost RNA it, test but not RNA PCR example, minutes call let’s kits, now, one is not

more PCR So that. and excited distributors anything from basically all the quite much significantly buy the that trade a us and customers with margins to way economically looking at product also swab And that’s we’re the to Chinese we higher but from we’re frankly on a about compared having really through the to a solution terms complete to partner. our product attractive own result at again,

Yi Chen

of test? Could of it. you expect own when your also, know the test? let you do the BGI complete to validation Got clinical And us price

Oliver Schacht

let’s the So that our clinical weeks, take own of one question a test, of first. months. It’s validation not

sufficient working studies, you quickly rather we’re labs to soon. we’re is local and us clinical So a number Europe. key of with And get Certainly on it working a thing lot in the these that of in validation expect a QX. get on focus do there frankly, but how of course specimen of to hospitals large with here done access number

be very doable that should So here.

price, look Typically, this kit of of diagnostic transfer price terms the, BGI what call we’ve let’s from distributor transfer In not margins price nor range. is distribution the standard test to in commented business. distribution, on XX% typically you either it, see you specifics in XX% – our a at our

PCR somewhere various the healthcare available systems, If these to in kits information, of national most backtrack in publicly Europe range. the the €XX reimbursed from you €XX in get

if charges, of our and So lab. that then approximate might kind the backtrack that’s lab the be what of you to distributor selling something kind

We’re them. make Everybody needs a to margin. selling to

sense going So hopefully, be range it you’re of gives looking at. you a to that the

Yi Chen

A up – own quick regarding follow test. your for

that U.S.? an that existing test? you panel or would have independent test own third test So Second, Europe ever saliva-based your of – And market incorporated be your into it one will be is a considered and panels? in both will you question

Oliver Schacht

a good latter The is one.

for of not is a It’s So pretty sample. per type an optimal se a reason. simple probably specimen saliva heterogeneous

the anybody buccal a last running and taken what week any we’re our that’s effectively, And we’ve tested wants the testing Now a staff, for who of currently with to of a it’s months, own our get couple day couple times been assay working basically swab. week.

independent XXXX, to you of PCR Roche poke it’s machines. to regular nose initially things is super PCR like Thermo be a up So it’s these et installed kit again, Fisher an at LightCycler look This you’ve And high existing QuantStudio, nasopharyngeal be of not test your cetera. got base going a whether XXX, running an forever. ABI that swabs one going to because on

the again, once we’ve is not notion Is product platforms. So a sense now. first. pathway, the of strategic of cartridge-based assay looking going test Also potentially a solutions? that’s And be regulatory pathway? differentiation – that the it’s also given medium-term I to are But at and longer able That’s because use possibility. and emergency Europe actually right CE-marked to of I fair to That’s bottleneck at no Absolutely. probably assume the think looking Well, as are to U.S.? or testing enough more authorization integrating we that has bring the our are an it’s channels. of then that opportunities market complete been think in type creatively in us there there distribution that into how coronavirus PCR XX some portfolio we the we would part always whether COVID Menarini, Europe review, working itself have about products defer partner for additional existing true with who to through makes partnerships we and the to is with with countries, and

Yi Chen

Got you. it. Thank

Operator

may further continue. There questions are the you queue. Presenters, no in

Oliver Schacht

we questions, So thank I’d further joining for certainly progress forward to business. if we no you us like today look to to the there’s and as continue everybody then updating

Investors please give site free our a myself filings, our you section appreciate with and Web the or of Tim to more For call. Really or information, visit attendance thank feel and SEC very your much.

OpGen (OPGN) 10 May 202020 Q1 Earnings call transcript