OPGN - Earnings call transcript Q1 2022

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Operator

Welcome to the OpGen First Quarter 2022 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, May 12, 2022. And all participants are in a listen-only mode. At this time, we would like to turn the call over to Alyssa Factor, OpGen's IR representative to provide the opening statement. proceed. Please

Alyssa Factor

And for everyone. introduction. you thank afternoon, the operator Good

looking filed our are factors note that events would Factors comments conference Before with actual in the subsidiaries, operations Curetis, forward including to and I of SEC, to that obtain and future call may with quarter clearance or our regarding form to that results limitation, statements. and and successfully, contain and this service we but success which forward-looking begin, may efforts, its offerings. during to ability be Ares commercialize will limited like partnering most affect any OpGen, described identify results regulatory the seek those the the and our will Genetics. management made that filings may statements specific recent the I of differ company’s XX-Q Exchange the and cost Form develop, to from you Securities product encourage and timely of for commercialization for company’s and first materially the Commission, include, XXXX OpGen's XX-K cause effectively review the results including, strategies by without not

markets company’s combination on our achieve business successfully expected Our continue general continuing pandemic COVID-XX strategy, the conditions. and ability capital global economic our to to the and with to commercial and synergies completed from implement the and the business Curetis impact on of operations,

this the general our the contains conference the business only as regulatory obligations the military by of economic and and under additional the that other factors. on hospitals products this in accurate as healthcare satisfy debt effect ability action in information particular. during loan providers our and collaborators as sensitive reflect date XXXX. The Our other with the to our of competitive as to proceeds in service and on COVID-XX and and to call requirements, use Russia as our in circumstances new May time Ukraine ability of effect company events financial situation, of existing after for geopolitical financing of and pandemic, The the European to services statements well revise current adoption call rate distributors, undertakes our this obligation or access recent required providers, as well from is update Bank, filings or our conference of and content any call the Investment date our of no The law. of by except XX, live future,

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

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

Oliver Schacht

on by a in Today, then and milestones for XXXX to leave with sitting we quarter our commercialization, and expand make And reporting everyone CFO, you with global milestones Albert I'll I Albert development. Alyssa. business, joining quarter in and for create to to Glad To call detail. begin XXXX pipeline. our start Rockville look afternoon. updates the Q&A products that solid and sure and highlight and review also OpGen's business R&D to some and on us will have discussing progress. We'll growth. here ongoing said, this strong time you, begin and a upcoming our thank to With Last continued our highlights. we've achievements our recent being product this OpGen's preview Thank for and headquarters new be financial first at session. our overall continued progress forward throughout milestones in We sharing I'll will to QX our our partnerships.

February. set validation AXX and a new series earnings lifetime exceeded testing This requirements first the their and major met verification is instrument last our discussed and in a As as the the get all finalize year. it instruments enables to of or us V&V this completed instruments on RQ platform later ready Unyvero call successfully milestone testing or built

cartridge first plan and to infections clinical its States synovial or quarter for trial of joint a progressing XXXX. panel application, AXX into we're the IGI and from AXX on invasive Additionally, in in first the bring forward platform test our fluids, the fourth later IGI United

conversations. AMR AXX be submission FDA other and a As currently cleared that and of commercialization, well a are AMR we technical first partnering key of will classes peer hours. half Panel reviewed Europe AMR over a results, AMR and notes for Panel specific The strategic, Journal positioned presence and in molecular to linkage subsequent constant microbial molecular continue absence markers quote. Acuitas The to Often to organism. and with AMR Gene detection broad clearance, our gene." of communication the are method a Gene clearly quote, two Gene we FDA phenotypic differentiate just an accurate of and discussions journal detect Acuitas cleared can the differentiator currently available Acuitas with develop in and of licensing States, range featured XX the and Asia. Clinical detect be with or up to advantages that the Gene the multiple AMR Microbiology "associating that other and Panel, the panels Panel trials, in demonstrates publication a We're nine is with markers associated and in simply United the was FDA within continue to This end susceptible continuing clinical and author's compared is not to Acuitas commercial parties February. that tests AMR

phenotypic as I therapy a Panel, and mentioned, turnaround most be antibiotic what including ability for think for well half just the considered is selection, AMR such lactam third, two coalition, Officer. and cephalosporin be AMR offering mediated by of believe we over results for which Albert comprehensive as time is and Genes, that of assessed OpGen's hours, with Weber, Overall, a determine support stewardship He and quarter call and we a Second, infection AMR methods. non-beta as Chief XXXX detection that financial antibiotic to third what infection Financial to might the control. resistance of and I'll help Albert? with of review example, turn now hospital developments. ESBL the or prevention, the first to will MC, as financial salvage can mechanisms AST recent the antibiotics, cannot guide when generation

Albert Weber

first Thank drivers thoughts balance with on everyone on highlights, underlying And you, will some for call. and the our everyone welcome the Oliver. sheet conclude XXXX position discuss briefly guidance. growth and I business quarter the to

continue about and business future excited are to as expand revenue. our our the We of grow we OpGen

has goal there not compared that time be various constantly obtained revenue, our While for to some is increase revenue to year. our last instances this QX XXXX due may Overall to this decreased factors. is

primarily many the the quarter The of is For volumes prior Health XXXX. fluctuating revenues of XXXX, COVID countries. year early of discontinuation in order legacy being decrease somewhat The was September tied to of in of XXXX XXXX in approximately first XXXX. reduction in Project, revenue Department over line York fish the New -- quarter the due first in XXX,XXX% the attributable QX lower business, and impact was from product completed which international due mainly to State fluctuation restrictions and still distribution to lower Unyvero

early actually The decrease to sales of last And sales quarter focused we truly year. thus compared by success. to While we're due the the XXXX. the aforementioned overall had on by first is factors, in revenue XX%. of we time our something that for direct XXXX. quarter XXXX U.S. the have to $XX,XXX in is product this the increased surprised year U.S. over XXX,XXX first strong far not prior sales, of compared evidence growth direct

COVID more and volumes later. decline the first Laboratory of the was However, to over offset service to and the Health's sales completed of other positive as to and first in of to revenues with reopening XXXX. New and see first a Collaboration a anticipate we'll compared COVID XXXX in due specifically decrease quarter and in State with due be revenue demand discuss global to increasing detail overall in the internationally services German quarter testing recovery during We testing of world. in our continued the York of efforts project line the European around this continue in trends primarily QX we quarter within volumes U.S., for that in to Department our core COVID that the by XXXX product XXXX September declined dissipate countries are XXXX.

collaborations, currently concrete moving engaged are which if types commercial for several to start expect we collaboration revenue strategic contributing or close, to we forward. would various We positive of discussions in

quarter For to million $X.X operating the XXXX, in XX% X-months XX, declined expenses million, compared $X.X to March first ending of XXXX. for the by

in million XXXX, quarter due related compared decrease $X.X to costs. an first QX reduction XXXX, payroll were $X.X R&D primarily XX% a expenses of to in million, Our

operations We Maryland have shift and and teams to smaller focus seen at lab R&D efforts continued a NGS services. our towards our in lower commercial increasingly Rockville, side, shifting future and with headcount

of First QX quarter, similar million. were expenses GNA XXXX $X.X million, GNA expenses to XXXX $X.X our

the team. marketing during skilled expansion This sales to development the capital of continued and business It First quarter $XXX,XXX $X.X XXXX. first of the add our and human to and sales to due million, team. we important XXXX, expenses were that is quarter deliberate compared is talented increase

prepare in significant to the XXXX. to would our net business. quarter our the come continue highlight decrease we and grow We As to XXXX expand loss of first like in

loss charge share to $XX.X in land available XXXX. significantly common than primarily was the XXXX. to $X.X per non-cash or due lower QX for million, or net world share, $X.XX Our million in accounting QX XXXX exercise in QX which in user is This shareholders and onetime is transaction the $X.XX per

the position the first at of decrease million, $XX.X the to of quarter compared $XX.X our end the million. XXXX position cash cash Our of XXXX was at of end

call, anticipate our very for million to cash with our net our $X track mentioned track record consumption and that quarter expenses an operations. this our cash well net from at yearly remain on end against continuing of $X per our consumption. We in XXXX As year expected around year expectations operating line guidance

see to continue A do as a the in have services. expect position as This $XXX,XXX. U.S., portfolio. a we invariable with additional we better Unyvero U.S. us clinical sales to is restructuring driver the what ongoing us is ultimately monthly so a production plus while programs, we continue where compared as here area guided Major announced expect the genetics, the will of in recently earnings wallet we do typically and quarter sales of the growth puts We in annual year-over-year of the XXXX. the continue of see our provide cycles direct margin Bank in expect products Ares growth European accurate strong related in this UTI significant direct Investment to focus six first to in major international growth we higher as of share strategic Products to expanding expect as a past development and share trial which such range during distribution calls. outflow see business. Following cash XX% and hospitals well and that approximately sales growth well XXXX panel commercialization, planned R&D of such the in for range where believe XXX more throughout direct was our as to repeatedly that as of that for our our to XXXX customer XX-months we'll access platform mind to R&D have to margins, amount customers to

the U.S. and we international distribution to to business, product the throughout increase. only water expand line this For on focused continued expect is outside which has Unyvero of

QX However, and further detail discuss in COVID shortly XXXX to will continued due and revenue QX than this fluctuated recent regarding and our in XXXX achievement lockdowns was related in lighter shutdowns. Oliver primarily milestones.

contract XXXX with increase minimums. European April we years minimums the of coming contract in XX-months, XXXX XX% and to than last reached to XX% the years, the compared our coming Menarini QX in agreement to an by more end the distribution partner by fifth Pan year overall for starting During significantly by

minimums. order shortfalls We contract with also the months to in agreed for coming receive compared the previous to expect Menarini, compensation for

to additional Our software area expect includes is seen we've that increased and another Genetics is related thus RSGB deals. increase are helpful discussions addition business Ares ongoing the in in XXXX. to the This opportunities Growing related there But be collaboration Unyvero AXX sell. platform potential database to regarding traction new services monetization throughout this continue far the to retention, solution client And more for partnerships. up going and year.

to expect to somewhere revenue to for We and be our growth service from continue a in range XXXX products year-over-year. around XX% business XX of

line restructure the both we collaborations confident Bank top growth provide Curetis side subsidiary further which platform, € that approximately Ares progressing In our XXXX. strategic XXXX. to deals X we the April, of debt plan And partnering definitive that continue announced repayment and agreements deals and first € the we April, debt and building licensing As to tranche and period we of on repaid the these revenues. Investment Unyvero restructuring are EIB could anti-European of alternatives, subject after made to legal available beginning X.XX EIB the debt, exploring with XX-month million of amortize finalizing will in in over tranche May in remainder April million the AXX the

tranches interest us X option allows to to € € milestones. turn strategic increase plus with to our I'll equity us then current discuss on as achievements upcoming the the Based X.XX% of The with for repayments unchanged from on cash of call in to we've XXXX. related million have and quarter to first this the we third in million the With over of person flexibility XXXX of ARB. a that, deferred back debt hand, cap point Additionally, the cash second remain June interest cash of X.X% accumulated Oliver and participation -- into provides burn, expect agreed and of X Overall, prevailing terms managing company's in manner now. kicker and to address cash. Oliver? the greater market expected beginning and

Oliver Schacht

variations the positive commercialization. interim year Thank pleased from that want that the Tract announce to received of at trial participating Urinary implemented highlight analysis Infection there to focused sites I allowed results you, we Albert. on barrel, will successfully as to results data XXXX be of to prospective testing U.S. us as at of the continue across from in were planned resistance unit a there native between We're The that interim The UTI more goal continue broad are protocol antimicrobial three it's first patients today, a taking the was significant UTI are sites. XXXX has to specimens. panel the on towards tests The testing panel the enrolment sites. of markers pathogens urine trial, patient confirm XXX objective was XXX trial the enrolled. place based and well This study than no or so samples, samples. for And range as clinical directly as

of submission and half first the trial, in data the complete to is aim Our the readout subsequent FDA half second XXXX.

of meeting, including resistance fighting pathogens. leader portfolio artificial a FDA end deaths collaboration, the of background May, collaboration the surveillance journalist by Genetics worldwide intelligence of previous and of an did further companies is by cutting lab means sequencing resistance. times turnaround Genetic decisions Vienna, Sandoz additional Austria. reports data by with Genetics launching microbiology pre become are milestone This April, as in or services of cartridges, for are microbial story as days. Ares And XXXX, now be experienced effective Taylor launch their been experts better microbiology QX sales AMR, available various of in this late services is process. Vice AI team and ongoing our Ares in transaction look at critical surveillance the this orders on built where and range we developed States services and April XXX start this Acuitas next-generation with to of disease have related let's genome to from provide be revenue volumes the plus be our commercially in product absence has step extension consumables and directly. such trial is accept million five and monthly currently also business granted that of our quarter handful reached This use well allows stewardship expanded expand microbes global and purchase our within ARESiss XXXX more used account stages and for Unyvero native There quarter panel we to use established launching of of a year collaborations drive year, and infectious subset agreement for in In two of results AMR information to article this Operations not account which Use FDA, our is United these or using identify Several future and fifth consistent conferences antibiotics. Dr. which advanced President scheduled commensals, XXXX enabling collaboration and sequencing of stage year. and the importance commercial in antibiotic address the multiyear now experience ahead can its analysis summer. date Rockville, a this they as which actionable thorough the our been U.S. quarters. in lab planning ARESid as have initial a the anti-infectious a in indicate and Ares by covering that from the for XX a to is to States. -- November successfully prescribing A these for globally. or our example, subsidiary making XXXX. in in diagnostics. of Ares binding Later to the by to Development $XXX,XXX with to in knowledge until for cadence estimated and to in small which commercial agreed call our XXXX. the plan envisaged we year permanent, to By performed Ares here closed commercial have DeVos, the datasets with as compounds In and of team Sandoz Ares focus on lab Sandoz each genome annual the an same service a to validated XXXX we fourth test practices Ares key patient than of described NGS whole saw of samples. strategic By is We're them than it of infrastructure which launch Sandoz, antimicrobial data pathogens, developed can ARESid, Genetics nicely the has genome of still platform XXXX of in on a pathogens. Ares purchase in ARESiss the of These we its the leading to platforms. already the been in continued based more utmost from on color a the option bioinformatics platform the for clinically have U.S The and gene to commercial on Genetics a X.X each along Ares November FDA upcoming the price we reliable partner genomic edge IGI an reduces recent we in for direct a tests, additional are around new qualified offerings that of place, Genetics digital the option of funnel accounts recurring and the approaches. of In Corporate This on opportunities, web first will today, of outbreak a express. team to of sequencing Maryland. successfully this new unnamed The related including or and own already growth products. data information, directly developed a provided on to FDA built closed draw will for request last commercial XX%. the have meeting, service deals commercial one collaboration to traction in specimen proprietary that to another inform UTI methods with NGS U.S. services coming and XXXX. both service is continue in include that sub to significant corporation nearly United deals we in the a rollout account Ares of and RSGB in a Ares Ares headquarters own the the sequencing Genetics voluntary, for XXXX Unyvero by nonexclusive that detection UTI with XXXX. Given customer shows put include acceleration few Furthermore, and offer Only continues to clinical This environmental the COVID a trial. materialized, an Senior isolate XXX environmental towards these access unrestricted stage in series recognize assets upon services in sequencing expect of services of our was series service our which in at clearance. and due AXX platform services rollout. the accurate lab launched and the Research three diagnostic filings submission backlog clearances products of sequencing months. own our customer anticipate Since based will on products, different This the

each. volumes customer of significantly have in ordering year To increase also recurring some to first that the occur these accounts of annual monthly selected to consistently on We extent basis, were and their the a these monthly revenue accounts potential exceeding date. XXXX if have would individual $XXX,XXX seen quarter

commercial of additional hospital agreements and Northeast labs commercial lab presents the In QX well the signed lab accounts. validation additional past agreements, over get evaluation XXXX to volume for expect in other which significant as several and months. their validation another once this completed already today, fact, post opportunity goes initiated the coming validation. and This we week In other major the live hear and as have we

Omicron of at quarter clearly from has the While COVID specifically first the and sites. 'XX November of 'XX, throughout customer the of several wave most slowed progress

have recently is as that application all patients active XX-months. significant samples and April a as our at in engaging Unyvero are discussions Bronco seen momentum the We More Vale respiratory for lower of use our LRT U.S. about BAL shift. cartridge tract acceleration customers with UTI pneumonia March single the progression funnel well and Acuitas Gene to opportunity driving of products. been AMR in Panel and have last months in most XX the expansion XXXX in

Our alone funnel return major the we've the of accounts opportunities equipped and hospital CVS active Acuitas several in in large individual ID Plus, negotiations With across as in 'XX ECCMID site. target rollout commercial time. and Acuitas of seeing the set are closing great in decision in this Mat shows other the conferences U.S. at live the exceeds -- but the large in key trade customer just launch October the the Gene deal Initiated year are on makers opportunities gene commercial key of been leads, In United engaged actively 'XX, in-person XX academic first new centers FDA. all by of labs we today, here ASM and for the AMR Panel. customer following such the generating well panel quarter the with for second AMR which These clearance for additional Europe, are and also only business States quarter. deals, not and microbe and country. and XXXK

the opportunities we're healthy several funnel working active have coming growing dozen out quarter a into that first have and on QX. of We

AMR from the some of volume test volumes a final Acuitas at way for across sites high initial to commercial As in year year, many these Midwest of dollars, revenue proposals provided the we maybe this XXX of Northeast XXXXs Gene been completed. Panel of have have all relating to as implementation science full for the recently several as the subject the negotiations U.S., tests has potential opportunities which and additional remain accounts and XXs once agreements tests expected to scale, opportunities to to in ranging couple smaller XXX identified XXXX

revenue hundreds engaged turn continue we in once the full ranges to annual and $XXX,XXX routine. implemented accounts of into account, in numerous could then As today, Such actively to negotiations. conversations opportunities contract be into generating per

know, continues COVID, pretty locked down. As to about to and being Beijing, hard all due you in Shanghai be cities lockdown may with such China as completely

study see to get generated commercial China While Beijing completed, week. clear staff China as regulatory the agreed clinical approval approvals have at we to with cetera. in get all patient and submission every have well start any lockdowns at BCB these and CFO at in launch. by example, be There for IRB their we supplementary on be potential sites, actually samples such there and out free [ph] date. The possible no conversations over cartridge trial overall and trial going. XXX up that simply Chinese continue advisors achieved been clinical regarding clinical are have protocols ongoing or of for pneumonia can as a hospital the need about But preparations set et to any regulators the updates for following NMPA trial requested that to

also for year, and our which around With to distribution agreements our second than to XXXX in in be deal, distribution with excited Dx. Annar focus in in our in we with commitments an revenue timing date QX commercial This our by of see XX key seen dozens revenue We than or to a received of quarter five for to of partners more organized of deal an the our XXXX a such partners them relationship The system compared XX% closing, drivers five a have negotiated value. systems, the a year and hence quarter. These the generating from This around signed two domestically the internationally. already direct Europe, successful plenty is and increased $XXX,XXX. Colombia, of on signed in campaign hospitals which focus business the we fiscal International by partner which is for sales We're commercial to U.S. highlight ongoing to first on of quarter fully launch business about on has AXX first of expected distribution event Menarini already we've to exact launch begun internationally also year diagnostics as for our prior opinion continue orders side period have the Menarini, more and for and Unyvero growth here via growing once of XXXX. started are XX-months with to last ongoing On in Furthermore, as the in have growth XXXX growing as the XX% of to the signed total leader minimum with that dozen beyond. and this of channels incremental amendment have we higher scheduled materializing binding with XX% agreement we direct as and us. get all XXXX recognition for residual accounts XX-months. minimum and distribution depending than years. includes early half deals Menarini. at agreement site as target on strategic offered and placements QX business installed Menarini here XXXX revenue discussing events. for additional In the Unyvero on customers results over key sales $XXX,XXX revenues meetings products across year recently QX XXXX, in would our and and face-to-face compared and about by more The campaign generate that molecular purchase coming over XXXX we're sell QX of over many signed far could amounting last significantly commercialization via months, a the been year compared actively with Unyvero in fair These systems Colombia,

continue As footprint. second our partnerships, product with This great conversations into we offerings, we'll strategic head the continue expand position quarter, in us grow sales. and puts to our to regarding ongoing and revenue our a service direct

I call. for throughout back the on will this like continue in partnership operator commercialization our in Thank now questions. always, As support continued updates the call discussions your we would continue to as our Operator? for efforts progress turn they and to to strategic XXXX. you afternoon's participating for provide and

Operator

from question question. first Yi The Instructions] proceed Please H.C. [Operator comes your with from Wainwright. you. Thank Chen

Yi Chen

XX% going you that number Thank Could you U.S.? how in forward, questions. And forward? the growth in color give for going additional of direct taking sales evolve the should us the

Oliver Schacht

based Sure, XX%, molecular the QX, versus XXXX. QX, Yi. Well, again, All products. thanks XXXX so on the

this So excludes products. has fish and out backed the

anticipate You of we XXXX a of sort higher. versus know, U.S. as direct XX% year-over-year growth have we sales, or guided XXXX

in. have would I be AMR I'd for mean, small the year loved the as probably number say highest relatively coming percentages fourth XX% anticipating are on coming number, it's the begin areas, the And Acuitas going Panel, in off much. know, launch quarter play you But LRT here's higher it's And last Unyvero, core again, cleared obviously say, this literally cleared probably underlying given first can of sales are year. to full to again, the I'll it's that end. three FDA which, agreements. that very the on first the but it's first FDA of get the having certainly pneumonia signed growth the getting the our signed I So somewhat contracts to I've Gene UTI. Unyvero percentage was contracts, on close that's BAL plus from panels ready RUO end to the the a initial to off with, wise, say on again, three we

traction of in very the not control near but departments, timelines, legal I'm very, anticipate know, So the would you in future. movement here I hospitals, and

Yi Chen

would Gene Acuitas, activity AMR panel? to currently Got able evaluating it. to you how for hospitals are be the many And on be able with Would respect to you comment do? commercial Panel,

Oliver Schacht

we What active I've that have, conversations. dozen is over a well said

XXXX, agreements you evaluation they concluded again, commercial and total already total, and UTI, have et panel but so overlap the we're of some which again, Acuitas of with. are opportunities our an well there, over the product. plus active And large means is U.S. the for accounts, Unyvero AMR totality their hospitals, working very between have, out same of obviously funnel, funnel that accounts of the look handful centers there a LRT in We sales you direct our know, if at academic XX U.S. we cetera Unyvero community have the

Yi Chen

you. thank Okay,

Operator

Please question, Ben. with next The Haynor Partners. proceed from comes you. Ben Alliance your question Global Thank from

Ben Haynor

taking the questions. gentlemen. Thanks Good afternoon, for

of Menarini out works and the for then off about can that systems terms little that cetera? First know, are how how purchase those you missed some and on residual agreement I I how the talk bit those more fair me, that a apologize the you of value kind on systems and there many et

Oliver Schacht

our XXXX. Thanks, started five agreements, Menarini the Like April Yes, Ben. sure. year X, a was this contract, of is agreement, distribution all initially which

So was third of March XXXX, end year. the the contractual XX,

agreed next We years. the and now have for amended two

basically XX, April March starting year the then ends you year X XXXX. fifth XX, ends, March and the So year, know and XXXX, fourth this

commitments So what from Menarini Curetis we purchase the in basically put to our minimum increase annual agreement have as subsidiary.

and XX%, look again, XX And for the it's be of increase the April minimum year increase the tract as then five you And culture, X, if this year, that year, that year, fifth infection, of we months, the you months. don't implant period and all end the mix the year. well this starting at year zero urinary blood the the XX eight as over this intra-abdominal year, an tissue, percent a last full year, the a pneumonia, XX March the five the - is commitment it'll over by earmarked, as infection, the two XX%, applications ended zero over across So obviously, which instruments. well the have fifth last

Europe. roughly signed - was we in Austria. at agreements Menarini key When you that systems look we in Benelux markets, and Now, XXXX, we several a Unyvero historically, that pool had when Germany, if back sales direct the if U.K., the Curetis you did the France, XX agreed maintain go instruments, had to Switzerland, accounts European obviously, these policies. throughout and at regular are manage depreciate, amortize we Menarini countries been pool accounting look the - sheet, would balance that installed and have we been the or those you But simply our manage systems. owned to obviously, have in those if And owned continuing product. purchase And know, you the

now, what step systems. for take and said we've pool and ownership what full them with Menarini of we've this agreed to of entire is So up

at infection three there something, visibility booth you Germany, they They'll dozens with European at own drugs. markets, one of Unyvero expected said for products Greece Spain, that April. where already France, those Italy, at already we commercial bought presence they flexibly out distributors excited Europe, have a pool, about of value, usage, companion specific But So from at previously ownership of we U.K. [indiscernible] Menarini Benelux, fair read systems the that's at in buying on Unyvero move co-positioning a the market they're diagnostic of my actually antibiotics drugs. Austria, prior Portugal, They're And everything the Switzerland, intra-abdominal of can it's and major what But going which and cetera. be the which their Lisbon is, alongside et is owned to multiple now growth the those definitely several had kind a more - control had roughly Europe, up if antibiotic they utilization, so systems in panel the those in almost anyway. players then residual means to day that the they're joint means linking opportunities, worth. day piece example, $XXX,XXX in you end important have here it. for know, they're And have over they we so across

Their and interest ownership sign full day-to-day is again, utilization. have sort more drive to that to on you long-term make basis it of visible want obviously just in commitment installed their having of they think base, if a So to that then business. strategic it's going driving I a growth the

Ben Haynor

thing. apologize on hook The I And that U.S. in was missed an base Genetics, already some they folks is if offerings that are here. hit commercially you're Ares the a are it, to front that that account be a of? any and between services launched going sense. little bit a be would to in here that than then this good Got on jumping you the commentary the you makes you directly I to together of I calls Yes the are this, and should talking U.S., now know, guys folks few that offering seem the the more in it. And so

Oliver Schacht

- mean, are the Ares in of greater Research we've absolutely. Use course Its a have cleared all of Yes, given of that Only, all And presales, premarketing non-FDA we flexibility non-IVD. much the I outreach. offerings Genetics, services, pretargeting

Genetics, right conferences one June. area early in now, has and which it there. Microbe, forum we in scientific was participation, XX% Town or to you Hall, presentation CBS open So, ECCMID, XX% know, main about big the whether actually us will these will we're ASM at that Ares the Again, have be

So, Vienna that out lab. services currently you launching offer know, we're going we to our of

native by [indiscernible] the sequencing going get to pathogen it's So overtime also the service ARESid, complemented ID, from the specimen.

urinary would that to the know, the lab you the and have course, require Again, universal for be that step of AREScloud UPA, already doesn't infection per papel Next is then, going genome which, customers samples process it's offering, se. and U.S. the who than trial much a assay. generated across tract data Vienna, rather the lab be But going have in clearly handle ocean path shipping in the U.S. easier Austria. expect to to to to just a able here you to stuff so

Ben Haynor

Sure, makes sense.

hope gentlemen, see ASM. I all you and to that's well, had at Okay

Oliver Schacht

great. be will it Absolutely

Operator

comes next question, The your Thank from Edison question proceed you. Please from with Group. [indiscernible] Sue.

Unidentified Analyst

is I [Sue this from of call. a Romanov] Hi, Group. have just Thank for couple Edison you here. taking questions my

The a international. offset sales more being a first one it different force of revenues partial have was the remnant more the and flexibility attribute and having direct approaches? were stronger, appeared to U.S. Specifically, the or distribution U.S. of been a you pandemic? that was to Would to there

Albert Weber

probably typically customers a States, $XXX let's end customer distributor assume know, distribution with XX% the the distributor mark. and model prices, means to in where $XXX mark $XXX, if our an ballpark, here of a selling rest to obviously, mean, right the the are that the And $XXX full distributor closer a they're you're around to you bit margin, It's price, transfer which as prices XX% I require world, between end to the the we've is means in and in a previously United range will similar of Europe selling sort of pricing versus end customer guided the both. average to price.

standpoint direct access, model is that So revenue. full from the you customer recognize over end a we recognition make distribution yes, of having sure The revenue and control a pricing that advantage as on not option customer. and partner, do once to our rely recognize on actually it we or selling consumable to end revenue cartridges, them immediately the the sell distribution systems kits

voice, it of cycles, cycle longer So greater share share margins, but the model The sales of U.S. of wallet. direct share mind, those of ultimately kind for of the here us. better has shortens in share and and

Unidentified Analyst

know, offering overall was Great, is option products existing service for seems customer that, that be we'll margins AREScloud here great. bundled a And services. you your and and retention? with a benefit question second interesting as that My

Oliver Schacht

run lab, lab do flexible corner Well, we're a really if making sequencing. like own in customers Vienna as not the this services places right the run in around next-gen as, They require or you you and sequencing. Mayo Clinic, clearly they to capabilities have to wet they the as nor not go know, the do Rockville. as neither Johns Hopkins, are that modular from services, their wants. next-gen And local There customer here

the is, based a cloud perspective. software really subscription a base access, primarily then margin a is model, from as service which interest their So

- cost a you can it's of even you you plan, transfer then determine to there know, a if old As Services costs, isolates is it's because goods upload best. hosting overall. can Web is fashioned, to that no you we or of add almost you But through the fixed your annual if again, or analytics side, than and datasets is cloud. sequence you it certainly you specimen goods saying full look, which, suite cloud bundle on wet year lab we package, And you're data they comprehensive running revenues or could can then number it's analytics, wet no in costs of would is the component, can sequence services know, you right, no to customers, you can for over half you SaaS next lab the buy you solution from in the interest good The lab and incremental like data as or of know We the if is do where you you everything a extend the it, have that no underlying significantly cost able the per subscription. is NGS like basically consumable model greater other know, component, really look the absolutely mobile, can cloud, can incremental there do a great isolates per but the operations. they need if mobile sample set cost SaaS volumes Amazon But the interrogate. wet service. an can can are you offerings phone all virtually volume say have you there's certain offer clearly data being cell just you of need native of subscription. AREScloud, pure get It's and service cost to margins the the But

range, percent margin a service, significantly say XX% the the tend it's to in margins So service in lower it's but model, wise. gross be

we our revenue the You're we combined really line. isolates, if the about service, individually, wet numbers and absolute including in NGS but services, at probably half in Clearly XX%, half XX-XX, we probably service et commercial cloud at half the offerings funnel UPA, being on cetera. plus the benefit greatly is I of today, going to know, XX funnel And Ares funnel, the other a XX% probably to opportunities, allows look the or or half, higher, customers and lab from top cloud roughly it, accounts funnel ID, services offer talked it's both have called flexibility. you active the able look which roughly why maximum see

Unidentified Analyst

sir. for context, thanks Great, the

Operator

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

Oliver Schacht

look Thank today. on filings website company. continuing you Thank the visit of joining much. or for updates the for everyone Investor thanks, Section very I forward SEC to our you. dialogue. the Well, our Please

Operator

very conclude us. for joining this much. does and today's Thank gentlemen, you very Ladies call. much Thank you

lines. You disconnect your may now

OpGen (OPGN) 13 May 222022 Q1 Earnings call transcript