OPGN - Earnings call transcript Q4 2021

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Operator

Welcome to the OpGen Fourth Quarter and Full Year 2021 Earnings Call and Business Update. Today, OpGen Management will provide an update on the company’s current business and outlook for the future. [Operator Instructions] As a reminder, this conference call is being recorded today, March 29, 2022. At this time, we would like to turn the call over to Joe Green, OpGen’s IR representative to provide the opening remarks.

Joe Green

Thank you, operator, and good afternoon.

important some begin, we information. Before subsidiaries, by Any may results this Genetics. its call during forward-looking comments of statements including future made contain and regarding conference of Ares management the and Curetis OpGen, operations results identify I may be Exchange including, events Form described filed SEC, and or XX-K with encourage the fiscal cause year most will the Commission, you the filings without statements. review materially with the to differ XXXX that Securities from company’s the for in limitation, actual specific recent factors OpGen’s that to which will those forward-looking to Factors the general the hospitals situation, rate on strategy, requirements effects collaborators European and and providers, well regulatory success the by financing results pandemic to COVID-XX of the of to of to providers from economic recent the factors. commercial operations, the commercialization strategy, effect our and limited business successfully and our service and our with and in the competitive as not and in affect Russia particular, access as under in future, action Ukraine current combination the that continue our partnering during distributors, expected other implement to, proceeds our business on and in our the business of ability continuing may and our global from of as synergies ability and efforts new the our debt include, but well other Curetis existing impact obligations satisfy achieve military financings the adoption our to additional the loan company’s as COVID-XX services company’s pandemic, healthcare our geopolitical products our ability completed use on are Investment with of Bank, our and the of this of the call March accurate content as live that The is this XXXX. information contains date only time-sensitive conference call, for of XX, after circumstances statements law. update no required or reflect conference call, except this to as to revise events the undertakes obligation date or company by any of The

and Joining CEO; the call President CFO. its Weber, OpGen’s Albert and today are Oliver Schacht,

call remarks Now introductory for the his I’ll turn over report. Oliver to and

Oliver Schacht

Joe, and was Thank us be Albert and our joining thank this progress. reporting CFO, sitting throughout you, to afternoon. year to achievements on with we call. here for filled with our this highlighting XXXX you, milestones Glad forward a look our progress, and and everyone,

through OpGen, its committed is know, fighting to you and As care subsidiaries, AMR improving along cutting-edge microbiology. with antimicrobial resistance patient molecular or

review with and financial detail. and catalysts. time and make patient We’ll tests discuss QX solutions our commercializing with then fourth XXXX. some updates, more and with strategic portfolio the We contribute diagnostic Albert rapid product about Last, products quarter a off upcoming Today, developing and will with will in Q&A our OpGen’s life-threatening preview outlook updates positive infections. made our will highlights. clinician’s also full We’ve outcomes molecular for help actionable I We’re recent of sure and session. leave diversified to begin started pipeline. I’ll partnerships, XXXX multiple guide which decisions year R&D I to on and which progress milestones achievements and information improve and we’ll for treatment great

Panel of resistance resistance compared an our market classic required four a believe few launch FDA-cleared strengthen such better can specimen. helping and AMR first X.X first essential panel genetic marker to number effective stewardship. antimicrobial detect of October to to guide molecular Panel. the with of resistant helping QX, identify believe Acuitas vulnerable is with AMR days test improving Panel markers simultaneously to prevention in to in antibiotics. AMR thus bacterial announced detect XXX(k) of of We accurately the and The isolated Acuitas diagnostic to control to diagnostic therapy, tool methods. XX antibiotic that rollout drugs organism AMR days the Gene initiated whether We different outcomes. test indispensable about the and panel OpGen’s Panel clinicians kit for a markers rapidly selected hours the patient in We from way infection doctors classes product The Acuitas XX provides broad product, the by see We in is by any to is antibiotic Gene Acuitas improve is clearance an or Gene Acuitas to antimicrobial our nine AMR Panel detects target colonies from XXXX. one and we Gene phenotypic bacteria, from AMR Within patient comprehensive the FDA the our Gene pathogens. molecular AMR commercial and isolated

stated in cycle QX be anticipate the in we our XXXX the test a call, molecular As six the earnings XX novel sales AMR for like to panel range. month diagnostic to

reference Acuitas state As centers, and large, AMR Gene Panel hospital large of today, academic the we’re the with well-equipped labs about across numerous in engaged other labs actively country. conversations

working couple range. to full as the revenue at has way could some for Such been the a several annual this year of that of a of the initial have accounts healthy accounts have on. test to implementation into XXX scale X,XXX in completed. active potential Panel’s tests several of funnel the as XXX all We to recently in Gene and size ranging from smaller sites, Northeast many Midwest. opportunities year to AMR thousands and provided of negotiations, turn remain we tests $XXX,XXX we’re proposals, Acuitas And dollars, commercial opportunities volumes dozen which final tens These about growing then $XXX,XXX opportunities subject expected agreements to once in high-volume to relating for revenue-generating

was processes model subsidiary, to application second relevant researchers also processing data, milestone AREScloud a accelerate sequenced the only not in to isolates. of provides available the commercial our around AI-powered web-based insights learning, announced and October machine the data by of opportunity identity, is own AREScloud clinically we fully The Austrian against directly under The but This epidemiologically Genetics. using data this software information platform of prediction automates subscription launch that clinical interrogate a analysis simple by on Ares includes NGS Ares Web sequencing pathogen antibiograms cloud-based plasmids and the Amazon our the and and instance, data from ARESdb, algorithms the to genotype, Services offers AMR. next-generation enabling, pathogen data. their researchers virulence, globe. for Powered or into state-of-the-art genome

Genetics and ARESdb Ares expect the content multicenter to expand the commercialization UTI, of phase year-to-date expand. this of strategic to of AMR clinical with by in Further of and partners are outbreak currently have After the an pathogens. has for with further collaboration ARESdb reference transaction The for and and growing hospitals announced of for Ares the with public AMR platform clinical XX,XXX to may U.S. from strategic sets whom of underway. paid to data are XXXX proprietary available CRO now Genetics clinical collaboration and use access now infectious November clinical become become additional content data XX%, of XXXX, is second potentially its to prospective Rounding and well evaluate the several that’s the current signed January asset ARESdb of Ares upon Ares and Our will unnamed as Such genetic in additional involvement of lab, entered corporation phase up for and the the partnerships, total Ares AREScloud microbiology proprietary first specifically provide leader small health subset It major users. percentage fee than Ares proprietary the tract software curated large Genetics as and expansion Genetics brands continuously partners as has the price which markers access collaboration of to recently content. disease few. Sandoz, supporting a adds sample urinary to data sets grown and QIAGEN expanded XXXX. external subscription a as data studies in IVD bacterial Ares is XXXX, data conducted $XXX,XXX they to unrestricted data panel. It the trials yet diagnostics. Genetics same countries furthermore that samples a excess growing Ares OpGen. than in could November transfer database extended Unyvero been first of Ares through working XXXX, X,XXX unnamed In global traction. collaborating isolates. include expert example by successfully until part to and a from such phase and to actively with ARESdb another XXXX deals we This U.S. Corporation at already strategic commercial XXXX, leading increase its in its axis is more routine Under with companies with is two by independent additional we key infection continuously in Ares clinical U.S. conduct trial analysis. out chosen This list has sets the and to purchase for as permanent isolates name in in ARESdb nonexclusive of agreements ARESdb’s of available X.X% then per its to completing option content. this Genetics collaboration. XXXX. and this and In already partner agreement, clinical collaborations to approximately its value plans agreed more global

our experience corporate States, addition financial recent that GmbH. the experience Director full operational XXXX turn in of developments will to Officer mentioned Managing years on been With quarter and more and Weber OpGen as today’s for controlling He call, to fourth of I the and our finance, Europe previous OpGen’s review earnings has business. Albert. a Albert? over our subsidiary, year January and He’s update of in Albert and and has great of financial the hands results As team. introduction, Chief joined on United XX than China. Albert accounting, Financial in XXXX Curetis

Albert Weber

welcome a XXX the registered purchase thoughts with institutional discuss and touch the to guidance. some was investor. would To consisted stock. a of time of $X after to were offering, conversion into aggregate of $XX per stock Thank million on million you the healthcare-focused call. briefly to shareholder full common which review the received XXX,XXX of and The the an highlights, company’s strong X, increase stock our financial shareholder a of stock up stock U.S.-based X.X sheet a approval and on XXXX results, meeting company The The support in XX from convertible to everyone price and authorized of at to update received of we of million shares share had shares. OpGen QX you, aggregate special of company of XXXX a an offering position common direct warrants like on its of of begin, shares Oliver, year stockholders shares It any very $XXX of of I the the million balance panel on closing at X.X at shareholders. on million per completed shares to convertible October shares common preferred will with share from with approval December XXXX, standard conclude number preferred XXXX. successfully value

expenses. platform, preferred use corporate and the from shares development in development of December December company’s further remain certain were Bank, Following of the of solutions service all million offering other stock well further XXXX, repayment of and outstanding before and The of commercialization the Ares and XX, proceeds deducting in XX.X proceeds from common for offering preferred outstanding consisted Genetics expansion the stock the purposes. shares indebtedness and currently of December, the shares international placement intends meeting of XXXX, database AMR no commercialization the approximately FDA-cleared and shares the into European the million to gross general for as Panel, Gene of laboratory net stockholder to of as as The offering bioinformatic $XX company agent converted common Acuitas offerings, Unyvero the shares and fees its the were the stock Investment company’s other outstanding.

our positive highlight in to revenue We growth are excited XXXX.

XXXX, attributable product XXXX. fourth of Total quarter revenue a million, increase million, which FISH X% the of largely sales product the early for year. the U.S. from is in diagnostics revenue quarter of X% globally, discontinued $X.X Unyvero which increase counteracted This from fourth discontinuation was increase the the in For a and $X.X the line, legacy XXXX stronger was to XXXX. previous was

XXXX. During has all full $X.X mere XXXX, XXXX compared contributed early a to business from the FISH year the latest revenue of given $XXX,XXX FISH in the to XXXX, exit in business million

product XXXX testing declined as over increase from Laboratory the a Genetics Health in partner Curetis, of XXXX an due rendered onetime New contributed to sales the of year, Austria-based nonrecurring Vienna, with revenue. COVID the Collaboration completion NGS mainly the to Department project strong Ares a data increase services to XXXX. Ares XXXX well positively in collaboration attributable revenue services provided lab. Additionally, York of in as conclusion at R&D and IVD very an end our service asset researchers of by Ares revenues saw its to at Project prior the September State

at our Looking expenses. operating

nine Our operating total XXXX. OpGen, expenses despite in Curetis April combination was on successfully Curetis of expenses and year our only entities. co-spending that full for both of months whereas reductions Ares, remember with integration and and cost realizing X, $XX.X the It operating XXXX, $XX.X to the remained includes the to Curetis post-merger in is relatively based compared XXXX attributable XXXX important XXXX closing million, include nine business numbers million numbers only, to XXXX of including Ares, year months expenses and flat synergy. XXXX, full the on Accordingly,

the XXXX to Curetis XXXX compared XXXX to million was compared of inclusion the full million, compared million of year change expenses. was research, items of market was Clinical compared marketing G&A compared $X.X XX nine our to R&D previous $X.X months conferences, included and to which and work QX full due exhibitions, $X.X in timing R&D in in The full XXXX million sales QX G&A advertising, G&A year to inclusion in previous R&D increase only our was to as Curetis in due $X.X expense XXXX and million was of only Our million to related to U.S. in million XXXX in Full XXXX XXXX to of compared year and primarily related sales the XX Full in Advisory QX previous and outside year million is months to compared was compared The $XX.X XXXX $X nine the to months $X.X year. $XX due team previous months to expenses $X.X million the of XXXX. XXXX. $X.X such XXXX. R&D expenses, year. travel, trial sales year. was due $XXX,XXX QX year $X.X clinical compared in prior million the Board, million the expansion the marketing XXXX. service to

Turning loss. our net to

a share was net attributable million mostly $XX.X $X.XX inducement XXXX, is available XXXX. or item loss total in million in $XX.X related charge. share in $X.X and XXXX This million our Our million for to for a the common stock million dividend in shareholders to to per warrant to deal noncash compared retiring noncash expense in in combined $XX or $X.XX $X.X accounting increase per noncash October preferred accounting of QX

in the We are delighted strongest has as of year-end. to cash report position its company’s that OpGen history

million our XXXX. cash year. This in up transactions million. financing XXXX in was the result a XXXX, at of mainly as XX, successful million end up reporting the cash financing to was net increase $XX.X from Overall, by balance the of $XX.X Our activities December provided $XX.X added of

Our XXXX we in-line against are very our operating expenses our tracked for expectations, yearly and net with cash guidance consumption. well

quarter. per Looking $X $X cash anticipate we in in XXXX throughout at beyond. a around execution an commercialization XXXX in placed on position million to expand the coming programs we us of The million that record net R&D forward, consumption and and strong strategic track expected to year puts continuing focus

the the driver a portfolio direct in Acuitas our growth major well to the in see with as business our U.S. expect growth Gene sales across AMR Unyvero product We in Panel as strong

we annual XXXX, XX%-plus in range in growth. year-over-year to expect see the For

on see We businesses of our also expect Distribution outside in to with growth the International U.S. Unyvero continued focuses the line product

growth business upside that moderate However, we rates be of well expected strategic our amount Unyvero the from acceleration growth Software platform licensing product see is accelerate believe in and our growth, and is material XXXX business a a deals. AXX partnering expect and around from collaboration, traction top area and in a related more do around somewhere overall any upside with clear, growth Any are to additional or asset line XXXX expected Genetics potential collaboration Solutions There the significantly on additional and although significant of recognition that potential partnership. whether range structuring AXX-related Services revenues. timing and new range An from for data hence, XX% also to is Ares material from significant very coming monetization be as there. nominal a deal We XX% to that to revenue service revenue possible such could in Unyvero not side should the has year-over-year. platform, which deal, to potential our as

Investment make the with to about approximately EIB meaningful as late brokers to million tranche as April several continue address the We in of XXXX. well Bank progress European debt company's the other $XX repayment possible upcoming opportunities

of tranche in allow to a period amortize the tranche us as appreciation to would milestones this dilution larger would our as our longer-term managing date at Oliver either with provide June EIB and coming potentially continued In all upcoming Such years. to the equity achievements anticipate over $XX million These greater pressure. strategic that to well-structured the become I'll plan stock and the approximately a convert and in two back well and and cash include $X.X stock months. when $X.X addition, avoid amount sheet the using tranches With milestones. remainder that equitize believe turn is that, first allow million which the our at to further details maturity the price further XX having options would in to the two tranches flexibility minimize based the our due debt some price We the future achievements We has in on of future million, and cash, repayment opportunities strategizing balance the cash call repay under as us we of us have XX XXXX to possibly address address of having these EIB's company complete to Oliver? debt repayment in company's will would or up partially of of manner, in quarters. and on to respectively. our from our such benefit from time over been or coming discuss XXXX options debt, approximately into options recent

Oliver Schacht

Thank a you, be on year Albert. focused XXXX commercialization. will

infrastructure As on the service commercial Rockville, including call, well in experienced own this launches the related our of at Ares OpGen several have mentioned labs as previously launch our Ares headquarters in already the We Maryland. services States solutions, laboratory Genetics, subsidiary, via various in of here and our place. has upcoming as team services United an

doing partnering experience each of in developed account, handful we XXX XXXX, Development be around OpGen Unyvero the preclude President globally. these XXX commercial will Acuitas monthly We of is continue and ahead orders of U.S. commercial launch be have the year-to-date around leveraging services Vice which in the and we U.S. submission since to direct-to-customer per clearance. own well technologies and as deals deVos. QX by of Ares deals of and does the that and consumables rollout XXXX that test, also assets, of licensing now further successfully not including annual in In cartridges AXX solutions as XXXX. genetics future in accounts XXXX series a Operations which expect that AMR A $XXX,XXX by FDA multiyear UTI U.S., of the we our data Senior as the Theo U.S., This platform us Ares NGS-based products a have our envisage Gene these of the the for here an of products. our of the plus developed our products, we XXXX cadence offer research-use-only team Corporate account reliable rollout services portfolio by closed Furthermore, from in This and Ares the for Dr. expertise making of revenue coordinated indicate consistent and for will Panel successfully in in recurring customer and volumes test to Unyvero them our purchase for commercial to

revenue increased occur also To extent, monthly potential labs to-date. agreements their customer XXXX monthly have annual on have evaluation other some agreements additional to and were ordering QX We QX seen in consistently In signed volumes exceeding as accounts. would XXXX, if selected accounts these of and each. already for accounts $XXX,XXX hospital validation as commercial these additional we the well have basis, a significantly of recurring individual

March respiratory bronchioalveolar for patients at customer COVID and Gene late the of While XXXX wave products. lavage specifically Unyvero in the several customers lower expansion Many acceleration November from shift. single use in a U.S. Acuitas XX recently that significant LRT as discussions We've progression last been XX has our February application is the Omicron month momentum months. slowed samples the are and XXXX, driving Panel active XXXX as well seen has and more with most around in sites. engaging until of opportunity clearly in funnel to progress and BAL pneumonia tract UTI AMR cartridge

allows quarter, Unyvero funnel of is testing at of built met set us RQ all first get AXX design to validation, alone XXXX. United and requirements. customer accounts XX, this time. to set the Earlier verification around series target and lifetime instruments is their States successfully completed finalize testing this in it active exciting Our opportunities in This and very instrument individual or plus as product the V&V a ready

of invasive infections commercial in IJI licensing partnering submission strategic synovial clinical bring and for quarter On front, conversations in have that begin key fourth the commercialization, We AXX technical cartridge platform and later a here States IJI ready conversations we eventual fluids from into FDA clearance, also trial for United any joint first as well be an and the continued AXX or to going test subsequent and expect first its with by our clinical to the application, as Having parties. AXX the panel to will on XXXX. followed due multiple also trials, diligence forward. and work

Following interested Omicron month meetings party. in-person this teams COVID, to of wave we've able have with our the latest been first from

Asian expect about future platform We quarters technologies and conversations months AXX business European the have and Curetis the in partners to development throughout with U.S., coming and XXXX.

CRO As mentioned on we'll this we to three and efforts and the generated In supplementary and or we the several cartridge successfully subsequent able we these our clinical cycle in FDA market IRB commercial sites successful and finalized. to remain six- proposals We clearance their clinical to developed study in build to The contract a inputs been of received secured XXXX Panel. study earlier the our China. Curetis China. review, AMR European begin their several about fourth multiyear the Bio, XXXX. clinical We're that by in in that at the AMR we've our data have from pertaining commercial quarter studies. opportunities to is partner, the the And NMPA in study. expect in to for actively our XXX(k) numerous control, advisers country Clear OpGen year-to-date, close have customers across of by They the Gene guidance Beijing Acuitas for of call, conversations It not line in binding is BCB, engaged these to of the trial additional regulators and request of profile Acuitas commercial under Because the and regulatory sales U.S. study with and discussed being currently funnel line many final China submission the ones and negotiation learnings BCB, to typical clinical own support the approval time quarters, continue launch. Gene and being out includes to for and in be contract in partner, pneumonia specific Chinese by or this each has or coming the approvals trial subject potential at this range. we for XX-month and potential previously been Panel

of BCB the quarter. We initial in purchase second expect cartridges an by pneumonia

However, will situation time China lockdowns very multimillion timeline in stringent point. COVID the most Shenzhen and what transpires China Shanghai any at simply we lines terms of metropolitan on of the recent caveat puts reemergence this given in need and COVID the areas, realistic in to recently, see and including dynamic of

distribution the Axon meetings business, the product includes have with their successful and target side recently focused Dx, has Downstreaming in ongoing campaign second taken XXXX. distributor, Lab. on-site face-to-face key clearance the has across International Together Menarini accounts market Colombia. of on business, customers of line seen continued to launch prior quarter for the the Colombia the of scheduled over initiated. products and been commitments and opinion Unyvero Austrian from all our Unyvero our key On AXX campaign we The regulatory AXX events leader with Annar an tests Unyvero partner,

as UTI period. this the is and in excited any European to able IJI for submission for Unyvero XXXX. added middle all products. diagnostic have IVD trial updates addition, going clinical continued continue to for quarter a planning marked We're And of inventory this such to coming panel of already for Unyvero samples more helpful Menarini first the testing, hundreds our went XXXX time trial had the very from will samples. of provide sites Union's any of forward, three completion running CE sell-off reproducibility of patient XX enrolling will selling sites testing, will be May Going effect material And context European there fact the first total. IVDR enrollment in us. clinical We're the with patient XXX has all trial previously period multiyear commercialization of successful we upon regulatory despite to the A enrolled in at also UTI countries cartridges one-year of XXXX, been be in for Unyvero transition of into and XXXX. granting that completed changes well products the UTI very Therefore, end All than cover announce without from today. products now three been that reproducibility into of

the we Once and and our all and our recently We completion formal the XX request data future, for trial. continue final samples U.S. us so planned data date, readouts trial partnerships. service received direct updates progress throughout for the XXX, steam offerings on in commercialization first samples, pandemic X,XXX-plus second and of patient more would platforms, Overall, about criteria with a a expect FDA past such near the We interim and of aim forward to of throughout the the both reply already to which our still this approximately the three XXXX. look unable year, optional of of an time. significant strategic all interim full have excited experience and two meeting We confirmed efforts in across our enrollment IJI the to really FDA in distribution per readout XXXX authorizations growth meeting partners. ahead IJI even We three call trial an an have feedback focused start received on year data here in precept and site on emergency eventual schedule partnership in COVID to the FDA with the from based FDA XXXX, Nonetheless, discussions ready in strategic be the submitted quarter. this meeting. sites. is clearances revenue our successful objectives, FDA have continued different trial submission positioned commercialization, in on fourth clinical patient quarter by a globally achievements full pre-submission second we will based late we of absence expect the or We're on that trial, will at of meets our FDA half and on future XXXX. product they providing progress use Unyvero X,XXX than products the our and Because or our to diagnostic early past the of sales,

Operator? operator questions. for thank As for to now in and this to support I for would like always, afternoon's you your back the turn call. participating the call unwavering

Operator

line Yi the H.C. of Chen from [Operator Wainwright. Instructions] with Our first question comes

You your may proceed with question.

Yi Chen

Hi, reached many whether any my could Acuitas thank you. how and feedback? you panel is, comment you question. question are My first Thank hospitals you the taking on preliminary regarding there have for

Oliver Schacht

daily I our roughly and earnings the These labs well on typically so the in institutions, from have sophisticated and as the reached Within those to the we that believe pharmacy, institutions as Yi. call we XXX-plus X,XXX clinician really and on well reference other mean of were we XXX as the commented individuals stakeholders reached Sure, some, of have to out institutions side. across very States. across some a well-equipped we over state-run country. stewardship as roughly feedback accounts, to basis. large, that out antibiotic to course, covering lab United I November well receive number academic labs mean and hospitals And large I

I we opportunities Acuitas earlier, the Gene for dozen As AMR Panel. commented have funnel several active

We agreements upon multiple have out there conversations. these

the here I week mean Absolutely, to to be? or months we So did in at we two. me, cycle. up six just sales where six- you outset, coming yes. expect is a ask this I a XX-month We're it very on say clearly are

again, pending final So multiple that are there having currently and contract review out agreement. agreements final

to shape funnel. I grow we're excellent the in continue and think

Yi Chen

I this those the can annual of could an any us basis? give panels, mean, run each at on estimate rough regarding you volume accounts of point, possibly

Oliver Schacht

at of you dollars accounts the I United price year. comes, and has States from probably XXX, looking product of tests medium several Clearly, you're low at on annual looking XX-month I thousands an from I you high the again, up but those discounts, a at to that maybe remarks. in prepared did of $XXX. list the volume assumptions at a stream at starting it, range in at XXX, you're volume to is Well, XXX you're if with – a to annual the doing low mean basis, I end, that believe again, call why recurring reasonable at ASP, the let's recurring looking X,XXX-plus look are that's full XXX to And a the some tens see, said end, of $XXX,XXX. end, the as probably revenue XXX accounts

Yi Chen

And existing to us the to is catalysts we the are it. relative this year? how see AXX Got going tell positioned market what in to you. system? platform, this rest should And regarding it. Unyvero could the of the Got system you Unyvero expect Thank during be the

Oliver Schacht

stage. In again, the to in today, on intend be platform AXX be U.S. at we will we this call that bring an panel, putting because complementary, to positioning, terms do the the forward of it's going per infection as differentiated new clinically a invasive not joint panel

and will it content. have So unique differentiated

and initiating the milestones, things, of you multicenter side up patient X,XXX samples the development I SA be trial clearly, mean, look sites trial, same least if the be a at And it trial. enrolled. cartridge getting running, apply and U.S., minimum clinical of then will terms to three a of in at clinical guidelines again, In a

We have ample experience.

the you at across prospective past, remember, studies we over and a sites U.S. preliminary If in hospitals multicentric have run dozen the well

we patient fluid plenty So of synovial have samples.

gives have need it then to the clinic. XXXX of data to in that readout take as it quarter this completion trial fourth and late at We plenty then trial the of said will clinical in And with really be we year development us submission data, the everything of finalize we FDA. and looking SA initiating the and into the

the rapid again, will, be going way So you it’s panel very unique it’s differentiated if platform, the time. is to to co-positioned a turnaround

specs a or with sample needed product. XX the platform, that panel depending So on the of an be just the for from result under up panel AXX specifics, the of a out final this and capabilities depending decisions quantitative on to could qualitative targets again, on into where hour allows

Yi Chen

you. Thank Okay.

Operator

Ben line question Global comes with Haynor of the Partners. next from Our Alliance

your proceed may You with question.

Ben Haynor

the Good question. Thanks taking afternoon, gentlemen. for

gone Acuitas the terms? have adopt on way out ones to first the contracts that are what’s the right up already you’re ready following and talking Or that think just to they’re tests that indicated Just have that? about – there out, the or Acuitas

Oliver Schacht

you the again, mean at look sales here. way I process the Yes. –

stakeholders antimicrobial of the first sort and the clinician the lab, you get is convinced The always stewardship folks.

You key there you unless those would buy-in not and stakeholders. clear put a commercial from agreed contract out have agreement

of multiyear way contracts with for to said, this pricing up So are, right. of as. contract. yes, tests works phase And is as absolutely as are a for again, the that introductory about number coming think finalization per these year, first commitment test numbers, you’re these I several The of well

it’s mix the So Again, the in that volume. that of first do door And getting in pricing how these a imagine, as foot now X,XXX think can accounts revenue year volume not think pricing about drafts some and are financing talking from a consumables. about XXXX, somewhere with just about you you instrument in it’s how there really tests you have about stream that and you’re the year. $XXX,XXX out between $XXX,XXX recurring in

so get And get of that Is crossed make things. sure commercial the Ts on got the dotted you side to and

Ben Haynor

Okay. That sense. makes

within dataset? that on maybe Is that how collaboration? out So X,XXX collection what’s hundreds? legs Or just it – that specimens, you thousands understand And going referenced? more like. lockdown, it. that the it it talk that you does with the it what looks and Is then can of entail, is data help does there collaboration CRO the the about Ares how a about little sounds Got is each bit sets and a with those each me dozens,

Oliver Schacht

sure. Sure,

both for each that and So strategically repeat well. CRO services collaboration the parties a about to this commercial recurring U.S. has as way assets. Lab frankly, is our been levering for really Clear And think other’s customer

we we’ve the services in and data In we Ares sets. two back the we obviously phases. way providing because successfully provided and this those lab, So out U.S. samples completed Genetics structured of CRO analysis were conducted sequencing running data was to process, and Vienna certain X, Clearlab. the specific that collaboration did, that, Phase next-gen and generated

in we our pathogens deep XX,XXX data now already up handpick at is we Genetics to with Ares antibiotics. the in isolates phase our complementary second grown already phenotypic choice over Ares have that sequenced We at X,XXX Remember, at are our the database the discretion on to specific have XXX again. what and database, to bacterial RSDB. And have isolates

extent, once bigger accurate certain, and purviewed database. more multicentric end, number, And have only the or cases believe in the approach interesting with any address unique therefore, prevalence but this to allows to you me have and at very to pathogens stage, AI that and of the phenotype low have. the I’m bigger gaps, to study correlations, that we not So number. we the becomes. very with relevant these artificial This XX%, us susceptibility intelligence-based of with the predict can to resistance prediction augment and accuracies give shotgun where genotype correlates end prospective are profiles whatever we’ve going is number and to depends a say, you is the you with very extremely of in algorithm to predict and our AMR a you that isolates a rare this number potentially exceeds complement U.S., demonstrated highly get the train that that The you not focused but a that published specifically that of power like have fill the targeted, sufficient

biobank going call the very specifically. So on And for which we’re in But hand-select copy is data. last we’re dig some ones opportunity ours to specific a vault, year, genetics. literally to that database I their, this not and the into Ares handpick it, through what point their a attractive and CRO sold mean again, collaboration is a treasure the of had unique not the for picking we exclusively very a to point of fourth in price I would nonexclusive, already were combinations quarter for comment

and the the AI more in asset, hand differentiated. able increase handpick make being the in again, more unique the the power of database data predictive select Ares we’ll and and So valuable those models to and strength will

Ben Haynor

when what you missed were when for. Okay. Great. apologize on then that? on line very they it, it and if place approval China, I time That’s there’s kind I I so I a of was offer complete in IRP the this apologize. and mean looking you did might study like about helpful BCB exactly And and I I it, missed then talking but in sounded

Oliver Schacht

clarity the helpful complete possible, situation this last can And you we’ve on, time in do months execution review mean, clearly time Shenzhen and call of in the line. this you getting earlier it the get it’s lockdowns the the was to said, to news To if over six look at look, and not and this line. study Shanghai, NMPA visibility really whether which literally because started, massive into week, nor on then there’s to control filings enrolling, data will at the the we study. take, drive or extent this all the going it, already time what via other look you I you submitted news China, some week, expect line beyond let’s once have aren’t actually NMPA partners. the hard Once our we

week result. and just to their going funding giving was them on a of it’s this with would a year. was It’s quarter So study, last is On fourth the study, they’re personal study. the in their confident U.S., if basis, guidance Unyvero their trial CRO, I’m running trial execution. choice. it their think times the the study our supplementary to They’re UTI them this hopefully, a the advising on our experience, daily, I if focus beyond here talking our this partners, view, we have we’ve the and proven trial, – multiple started in ultimately that But

limited to fully And respect have so it decision we’re again, going do enabling and a there’s to them the that – execute beyond that. that. They we way, discretion Chinese

Ben Haynor

quarter something would that how every value that of month Is Or issuance I every That’s does me. issue every – you’d option that shares XX issue And with mean how structured? Can equity the about over that a talk the helpful. year? EIB. where you lastly work? certain that guess actually for Okay. then would months, be I or that you dollar or

Oliver Schacht

the tranches months to we EIB, and which could the the I’m across point, up not alternatives specifics actively in outlined, to different of is equity that XX be this But gradual to structural going options that of conversion have amortization. all multiple at three speculate indeed debt Albert discussing pointed as Again, of with time. one and of there we also alternatives as into to amount terms total over we’re

if a XX, very kind having into disposable in months, you used look of amortized here instruments the an back available rather over the equity, our repayment converting bullet So and XX time. periods extended we over than could we’ve various of over the prolonged debt using multiple rather successfully last the of at again, of be than payments, second time $XX period facilities million. ATM And quarter

not and use it’s that well, a None scenario. around option conclusion equitize scenarios to we’re going concerns price then the belay of we’re in equitize But $XX million worth foregone to whether there’s that, EIB. that So level turn all. not at currently – anything going the has again, to of discussing, April this at and we’re sort stock current to

Ben Haynor

Okay. Got it. That’s have all questions. I for gentlemen. Thanks taking the

Oliver Schacht

Ben. Pleasure. Thanks,

Operator

Group. Singh next line comes from of the with Edison Nidhi Our question

question. You may proceed your with

Nidhi Singh

questions. for taking three have I my Thanks questions.

AMR So first to one panel. Gene is related

have have received So as quickly you could give would of it the the update any any number on NYC terms launch? how after now. as FISH you would Second distribution products can And in responses it some that, time been color you give discontinued on far? Did lines this you be, on And in based project? status or have if there impact third so some scale be, further can communication distributors? as up network one of believe on of is

Oliver Schacht

not the I Sorry, caught sure I’m second.

of I and panel, AMR that So the sort let’s the asked. take Chen question Yi believe it’s

funnel. is Having accounts, each those So multiple I of have we having that is go exactly X- of again, the contracts lab, stages the to With out to back you and and clinician, point to expected. so the live what we the at various at the opportunities the stewardship. sales pointing far dozens this expect. cycle pharmacy through response And in XX-month mean what

Opportunities accelerated out. first guidance materialize universe for months. But the be to providing eventually the here and opportunities funnel you closed or then XXXX. on roughly individual of going funnel. to refill and and XXX not coming Again, reached revenue convert the the these win and opportunities And product for We’re opportunities have given commercial that a we is specific there any out are you across that portfolio, time. out with weeks total again, product accounts are that we XX lines in of from at anticipating and accounts replenish total various lost, product U.S.

FISH distribution, products That discontinued synergy of quarter, had as network was and that In in FISH terms action – network distributors last we basically in FISH network again, in the year distributor with was products products. was first any a the sunset of business. business, that only There discontinued Europe we the the zero FISH molecular. for legacy a

zero was of impact the overlap there the any distribution distribution if look and or course, So on on Curetis FISH network, zero there network. impact existing of is zero from Overall, read-through because the just you discontinuation as distributors and we hear And legacy a understand. of at you terminated question was old share have all middle have FISH may couldn’t the – to numbers, couldn’t we now fewer quite there that I ones. simply

So if that? rephrase you repeat can that or

Nidhi Singh

Yes, yes, sure.

to So further of about State on any York ask project? I Department Health New just wanted update

Oliver Schacht

York that going planned of call nor New is QX We there or New intention. there’s to project State from switched site. network about QX using out QX. guided told the a that again, that. Gene think couple Acuitas Yes. we call, routine routine been any going may project already assumption now that did State hospitals that The FDA-cleared XX, far-fetched a very AMR they the But AMR there’s or be not repeat and way other. State maybe commercial ended what to have earnings of just not XXXX. That’s the clinical is within think that are that finished. this to It’s not of be of not in It to Health a the funded have York New to users the it’s that the accounts I in earnings Unyvero just Acuitas. York way contract cleared York reiterating Panel But be over users Department what research well And in like say, project. Health to come is as back to and individual sites scheduled a Acuitas we said and customers that FDA that the September would about on we expect becoming drafts against the original But Department New State we specifically completed.

individual at to FDA cleared as XX become individual State And of York look customers state so as to you’ve again, sites sites New the got well other product.

Nidhi Singh

Okay.

Okay, thanks.

Operator

That’s the turn Mr. time all for have call over to will today. closing back now we Schacht the remarks. I

Oliver Schacht

section you. have website you, company. the Well, visit Investors thank our or today. everyone, you filings joining our for a Please day. great for on of us Thank Thank much, very SEC updates the and

Operator

conference. today’s concludes This

You your may this your time. disconnect you day. Enjoy of for the your at rest participation. Thank lines

OpGen (OPGN) 30 Mar 222021 Q4 Earnings call transcript