AKER - Earnings call transcript Q4 2017 | TNF Pharmaceuticals, Inc.

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Operator

Good morning, and welcome to the Akers Biosciences Conference Call to discuss 2017 Earnings.

As a reminder, this conference call is being recorded. I would now like to introduce your host for today’s conference, Ben Simons with Akers Corporate Communications team. Ben, please go ahead.

Ben Simons

Thank you, Tracy and good morning everyone. CEO; us XXXX short ask and John the joining company’s regarding questions for VP Gormally in Rauch, performance an Company’s you for commentary this the to of Thank Finance. Gary and opportunity to

the will the Harbor provide John we financial of and results I overview provide will up very then shortly, before Following the Gary which call a read Safe XXXX statement, for will questions. an summary open of

John subject relied Federal hand with to take which in contained I’d disclaims reflect over of company Exchange including Securities that expectations required undertaking morning. Before revisions or laws, by I’d or updates to in forward-looking results that to statements speak the the to listening change for the any upon. any over is herein Gormally. events, to our detail like based. risks note we the are the to any makes, to you or like elsewhere company those should obligation appears end or of published This circumstances in call any Akers forward-looking Harbor filed conditions everyone any to regard changes the on in otherwise any Thank statement and and and and company’s CEO, the Bio uncertainties, Except such underway, to now to unduly the release publicly Securities as that paragraph any as that with the of reports this get described states which were financial Safe only be statements ask not Release paragraph the inherent at company’s Commission the made, date News

John Gormally

everyone. and good you Thank morning

in strengthened this approximately sales Board PIFA our of directors team Heparin finally in Offerings, wrote capital and especially with and balance we proceeds healthcare, of Private commercial the Public products, morning, I OxiChek which talk our of XXXX product We domestic moment; our We Directors during in of of year place medical sheet these a Placement and with and was from the conversion commentary new strengthened million. strengthening strengthened the highly Putting fields course growth about the to of year markets. warrants in distribution. position will with were the experienced the net years company. the our appointments blocks core strengthened talent, published and accelerate I’ll $XX.X believe device, We a across finance and the our my in As months building in revenue company enable ahead. I including

XXXX oxidative breath track which commercialized a device. good health Wellness on line with stress Bluetooth-enabled a to product OxiChek wellbeing. and a a rapid to market. and results KetoChek, Now product position app test which aimed users is reading It works a indicator BreathScan which enables for of device an hard health large mobile person’s first future optimally and through the key overall Lync, of from the during is a wellness worked the is the growing Akers we at the

wellness we context in In are addition overall to practitioners, sector. health are to of chiropractic integrative revenues. marketing product small, of anti-aging, and the functional this Sales and treatment also

strategies strategic our target level key a plan, approval that multi of or marketing the was the company. part as segment However, component This significant the of represents profitable a of year within growth of physician science arena. three our our we the to network opportunity knew supporting

initiated the We’ve discussions agreements. partnership strategic during and meaningful secure to continue year remains dialog. goal Our

Biosensor MPC proprietary products, and notable in and $X will New of just a overall another also you is breath were under platform of We million as is stronger part when Australia technology. the testing to initial It by MPC year. this from update appropriate a enjoyed grew major develops. prior year, order boosted OxiChek sales Zealand. Alcohol category over million strategy a Breathalyzer growth XXX% commercialized the stocking by sales product $X.XX BreathScan sales contributor that family a of

of are Check walk the our some for a our designed only change a please and drug aisle It’s shelves study. been the in use under the down medical cholesterol for Now store major the tests to test rapid of find clinical First in brand.

be encouraged demand by user orders in will continued received end that XXXX. shipped We and already we’ve XQ, are

around allergy the is test to Moving sales of on associated our test main XXXX, thinner, for rapid widely-used blood revenue to an a for in heparin. revenues XX% which today, component generator accounts our including antibody

called is potential four life blood threatening complication The this Heparin therapy. Rapid the the is test know thinner most heparin Heparin/PFX used Assay. heparin-induced world HIT inexpensive. thrombocytopenia and or and limb you of test PIFA widely is Now a as the condition is because it in in is

to significantly decision good existing is to many key also medicine than diagnosis test money. of faster speed you ultimately in Our marking alternatives know, and as saving paramount and is the

reported with remain these future. Although components, only of growth the encouraged our X% we we in on revenue related or sales moderate tests

individual longer in target potential converted. the strategy third we much of physician refer taken these adjusted the beginning integrated U.S. awareness of assets. to have when will than we but only which unfold. is are IDNs the for to market strategy, have wave delivery the is eventfully large believe to that surface customers our smaller We believe scratching remember Now hospitals, bigger penetrate you Accordingly, network many they eventual this prizes we These our of market

strategic end of exciting we and focus We are surgeons, cardiac in coming the announce particularly to months. a the orthopedic and to a devoting of number clinical expect and partnerships attention area in this lot users, campaign awareness on a

PIFA Distribution device prior I’m and the Vice Pamela team expanding excited who representatives sales President Bio. our a worked is about success driving strategy years Akers She to sector company has it major to take in PIFA sales our force XX mention Heparin, the I about she I’m than level. While and is in work Hibler Sales Pamela are North with talking next the that regional XXXX doing. more the America and medical for to of of that of to behind as appropriate joined

Now leader in of we channel seen the the three announcement is for valuable I’m month blood global sure test market with Agreement team. whole sale a the have years a large sales last Diagnostica They US. and on to to be leverage National established a customer Stago our this year version additional in hemostasis, Stago with base could you will specialized ahead. and have the Distribution of in believe a this

the KetoChek last leadership the make rapidly stage embraced Enzymatic our customer a Decisions we is this this requirements Rapid slightly these process, KetoChek for potential. the which team Assay, considerable has process development PulmoHealth Each is in or but future and PIFA launch various Assay process XX investments. within to under return required. market will the Chlamydia though on product based at A is happen. are submission, by and are development require commercialization are innovation working PulmoHealth been this consideration my and through Our most months. advanced to XXX(k) in is Akers on or practice and products for Assay. of product focused is has pipeline our next Enzymatic Bio new manage however products

we status customer unwavering no the to appropriately commercial contacting exceed company launch and requirements about through as adoption. there standards. ask Shareholders Details new products guarantees all regularly with highest to meet with have the for will be the for shared timing PIFA or and customer industry’s commitment XXX(k) submission work are As our Chlamydia. been the quality

the the will clinics. for this enthusiasm markets Chlamydia believe company which blood it disease. we to has Planned this because possible complete to be the delighted exceptional We approval, FDA college is include potential order company test believe process. data for the prevalent support additional requirement data. with the work committed appealing for application, with sexually ambulatory process. highly further to that requires FDA completing May to targeted the first event that continues in rapid company and your for is Subject FDA care, submitted are communication Rapid potential. regulatory Assay the PIFA by PIFA transmitted XXX(k) Chlamydia in we studies the In to to campus FDA approval as health proactively expeditiously highly the In the additional this to The as approval. to advance a regarding XXX(k) Parenthood, FDA clinics our company XXXX, is test The

this prepared to I Now is in the here extent Chlamydia at which this comment want moment to are point the we on PIFA and for of Assay time. stop say, commentary

over to to like hand of summary on I’d VP for brief Now our Finance Gary Rauch call the financial performance. a the

Gary Rauch

of products Assay to third million continue revenue for that Heparin/PFX to up revenue. $X Total Rapid with or PIFA was a John. during you, that components Thank account majority just product XXXX. shy associated by

and over the However primarily OxiChek the XXXX driven million. gross Gross XX% strong profit leading of the growth Breathalyzers, was remained at re-introduction Alcohol a margin the to of Tri-Cholesterol profit consistently by $X.X test. BreathScan

with personnel was events were are administrative stable over at slightly $X this which in approximately major which million, raising marketing approach ended of expense and was fees controls despite expenses and expenses, X% up associated categories million. very which but begun capital, impacted collectability new and debt the for increased company’s doubtful cost reserve to Sales company is litigation was a and G&A. during ongoing the to to a expenses more and managing million. at included the including Several and has overall. to December The because XX% for the this net overdue were legal XX% We maintaining because $X.X the mainly XXXX receivables. of year, still million conservative tight in increased to result conservative accounts $X.XX XX, development expense approach respect increased This general costs year by of $X.X result, $XXX,XXX take the loss research

at and a cash a strengthen Bio the from accelerate sheet, our This year to which of growth and this Akers new XXXX, in the from the took $X.X steps during position and places year raising offerings, to public $XX.X placements much robust a proceeds of warrants. more and product Importantly at little net of led million under balance end sales financial million commercialization. private marketable to securities execution position company its

results obligation. was legal costs settlement at subcontractors ended from XXXX. weekly the to range During flow year contractual the rate average Once of point to to per remain the and other personnel in company’s the $XX,XXX the end again costs, [ph]. December included XX, vendors cash $XXX,XXX which burn cash higher XX.X of as [ph] that XXXX, soft, payments the in our The compared and to company increased were to anticipates position XX.XX cash year week through requirements

it John. over turn I’ll back to Now

John Gormally

Hey, thanks Gary.

leverage that necessary the key the to areas taken haven XXXX, So materially goal our to accelerate platform growth. strengthen across revenue business steps is of of our rate to

on two Board and profitability. than the Directors has product our I that to can value. the growth years our our ultimately its Over can that leadership of shareholder past and achieve remains we Akers a new focused revenue ways improving attest our of more doubled team are number Bio efficiency, enable There goals productivity and

We especially strategy when our of Rapid the path plot traction. that developed Heparin developed Stago have potential growth newly success key Manual physician our The awareness our for significant, PIFA defined Assay and relationship pillars with market forward. remains

new with which Another on finally, approvals valuation the successful launch a pillar I partnership the I very year the subject and Chlamydia can are PIFA about. this introduction resides And of key believe agreement network arena. we as marketing strategic we such development our enhance of all to in success regulatory within know further company products, OxiChek of excited

that might happy questions this any at take Thank point, I know have. you. you You would to

Operator

Instructions]. [Operator Thank sir. you,

from take Please question will our [Inaudible]. go now We first ahead.

Unidentified Analyst

on guys quarter. tremendous Congratulations a

John Gormally

Thank much. very you

that. are We about excited

Unidentified Analyst

I much just the know have into some the quick go we XXX(k) PIFA can’t Chlamydia. question. regarding color I with too

company? did the they However there that requirements are additional request from

John Gormally

come is back they a the Mark had and discussion The questions for protocols ask follow is I submissions. series unusual a the it that that of made to company we to FDA in to in about and is that which them performance commentary the has the extent prepared just So not company to on. comment

market. provide to stage in that number are expeditiously committed with we they to need are product message my feel profitable any them, very that the resolve segment as we that market to the that is on possible, may We very this questions hope back of and this discussion but of going is to clear, confident in have, because quite launch un-met a that a as of we

Unidentified Analyst

really I up it Tremendous! keep guys. appreciate work the do and great

John Gormally

Thank you, Mark.

Operator

now He from ahead. Co. Please now a Paulson go away. next will take from James have We Terwilliger We’ll our stepped go take our next [Inaudible] appears from ahead. Private Please Investment question to Investor. question

James Terwilliger

me? can you hear guys, Hey

John Gormally

Loud and clear.

James Terwilliger

just accomplishments. Villanova. and were your amazing growth, capital of lot. business I a all the mean deals markets. or help getting how because the done Eagles It’s revenue to on mean your that’s I don’t and Congratulations Okay. you run able the the

balance real is Just and The queue. in end million? it approximately at quick $X year, I’ll the cash of jump the back

Gary Rauch

Yes.

James Terwilliger

And can you you’re… give

Gary Rauch

Go ahead.

James Terwilliger

I you. no I’m ahead. mean No, sorry, to go interrupt didn’t

Gary Rauch

finished. was I

James Terwilliger

I’m to I catch diluted the got kind up the then And Okay. you guys, Can here. of just model on me because quarter? some to my to you for full do changes give shares outstanding working

Gary Rauch

have question it look here next John the take up I’ll I’ll quick. and real

James Terwilliger

orders next you feet, that quarter be healthcare expect. your is I as kind your we believe at distributors, business, of mean we I is some into that seasonality large where at shouldn’t dealing field did and the of distribution XX,XXX do and international. seasonality the going at And the within of when being look U.S. some from model the there look would and there – How get fourth I year seasonality here with think perspective business my in I some both

John Gormally

and seasonality, that wouldn’t and certain that suggests A would winter seasonality spike, me because I to FLU tends a the like an seasons example be tests fall use to and Sure. the component. as the B word during that FLU

end because their new and with product. with on Heparin and there have that hand the that committed I think we to of we distributors that the inventory to delivery work on-time our is, on what growing of large make they user, is to we’ve them created meet are happened sure size the out orders sufficient that dealing our PIFA demand

globe we to but was to always from tend quarter diligently top performance anticipated and United to terms they sometimes the fourth candidly are pace. if to jump We very working this at outside overall came around have you fourth initiatives they line quarter quarter. within you candidly that strategic term happening, dedicated States, realize quite been the of and to will in of the working on the happen when However, in third States customers the just the our the

the about fourth Australia Heparin what excited delighted were physician result that their awareness as in we in a the being were happen been on us Zealand. you approved only the XXX(k) our PIFA for initiative obviously So product New had very having in on the specifically awareness initiatives and of the and campaign driven product, community domestically about with advancements We of the know quarter, HIT. the have our made

again, about find… So you excited to very that. were able Gary,

Gary Rauch

of point at Okay, so [ph]. The outstanding was shares year-end average that $XX,XXX,XXX. $XX,XXX as weighted

with average have up proportionally. shares of us We number first up the go shares; have through the XX-Plus exact that to million XX around going which to issued bring I don’t quarter, me. million weighted And course is

James Terwilliger

number kind really here one your the BreathScan hit Yeah, is your your on lastly, that focused which great of it much that’s button growth product really Cholesterol quarter. I’m And and detail. in this as so then Heparin, as was

back jump of terms in some some other people core of business. both your I’ll questions. guys, in take lets Nice structure Okay, in and and job terms capital queue your

John Gormally

Thank us. much We Thank James. the do you. you you that very really given have support appreciate

Operator

from not ahead. next [Operator question will Instructions] take We [Inaudible]. Please go our

Unidentified Analyst

you thank you? John how morning, Good are

John Gormally

[ph]. Keith you, to morning Thank good you. Hey,

Unidentified Analyst

flow your positive? Two one questions; to even achieve would revenue break quarterly be what’s cash

Gary Rauch

number The annualized million. is approximately $X.X

that would down neighborhood, in what, quarter $X.X breaking $X.X – that million. We’re be million about by

Unidentified Analyst

cash positive? to to Is goal would flow the achieve it be even year break fair your say this

John Gormally

a million, It’s year so… for and just lot Keith, correct would of this preparation $X.X John to want is this its Yeah been whole Gormally. Gary. I

Unidentified Analyst

million $X its annual. So

John Gormally

Yeah, an basis. that’s annualized on

$X.X ultimately even goal, there it’s you break are to no our is and million So about associated that that. know guarantees with

the caution this and a the to I your are want leadership get that’s gates, up We conditions unforeseen may for that’s has are there that to to that come again out go-to-market due just make have have that will know market Clearly you happen, you well, we status quarter, you. I on of updates do. – team to giving everybody Thank strategic make now is performance no objective. together that every put on guaranties as and updated objective, and working and Press also we things that the what unfold as goals the that year. had you as Releases want are plan this the we sure we people plan

Unidentified Analyst

there agreement When annual basis? that any shipments are max, expecting Great, will next on agreement. on the associated quotas, and mins are Congratulations and/or for with question. an Stago what it you being

John Gormally

annual to with we product and in is agreement question the with turning initial know a and their that you so first the as provision company the is had is, the there and very and answer discussion the a it are, confident place is second of stocking a point me, their quarter that confidential XXXX. an Yeah, – of excuse based them. the first disclosing we on encouraging. disclosing but take was at the what yes, you are signed is received order you privately very in will part robust are we of Stago believe over to there forecast The know this in sales forecast this last from we contract know first and where week quarter organization in as of delighted capable not revenue proprietary the to are – What this have We markets, we XXXX. the their held

Unidentified Analyst

And from I in agreement. recognize would that revenue assume then QX you’ll

John Gormally

is Absolutely, that plan. the absolutely

Unidentified Analyst

get going. in and I’ll keep you. Thank line back

John Gormally

you much Keith. very Thank

Operator

ahead. go take now from Research. question Robin from will our next Please Catalyst We Marc

Marc Robin

call. my morning Good taking for you Thank gentlemen.

John Gormally

to hear are voice. Hey Marc, you? your how Good

Marc Robin

with alcohol With and that detection, in I out that baked anything else thank missed? a breath the that’s you Help is little OxiChek based me perfect, the product there bit here you. Yeah there have.

John Gormally

METRON On outside as the reader and is have which link the a Bio Micro sold Sensor, global there it’s is under well perspective METRON. Partial the for What cartage the of then States. OxiChek Catalyzed is that you MPC, and stands the product BreathScan; United

Marc Robin

include the Link Reader okay. you and that, Okay, in

John Gormally

Yes, yes Marc.

Marc Robin

the you. Market, a right. call an a Multi thank having yeah – – to Okay, is with what I’m And it chatted we Level MLM OxiChek MLM it, then additionally going about

forth in Now wrong or vitamin your fitness people. sales directly would that It and be would the not go I more to am so like clubs that?

John Gormally

partially You’re correct, say more you put. may I correct. Well, are partially better than even

Marc Robin

than to generally correct know. specifically wrong better be It’s you

John Gormally

multilevel network going the of companies our the when So, marketing successful, And here are an don’t that or the antioxidant supplement. are we are arena are want market be used to myself – or overstate position. successful, doing to stretch any what we jinx is out if series are yes, what we promoting by doing I

tool We their to be at going major pillars that a segment as we our are that the working and Akers supplement. market them with laser focused are with sale initiative, of here advance to use help identified this our is success And in sales customers companies candidly on targeted targeted would a product one of antioxidant working Bio.

Marc Robin

Have the question to beating is, And that the out my about they discussions network. margin? MLM talking real on proceeded are jeepers of you sufficiently pricing you are the

John Gormally

that the to discuss know, related the I You can’t we specifics because have. arrangements unfortunately anything of

as consider business view the we restricted I having parties parties However, partners. very both conversations would strategic extremely are these and other professional, that is

of symbiotic very again, a conducted. professionally very, and it’s type So relationship very,

Marc Robin

the turn the demand price you I Alright, hit tell be What Blue piece hit. think or a world let’s towards before – then. sign. could That’s the me you what Sky do a – what good

past talked of million possibly we kind goofy I size that for am about size for that? the at or and $XX the in Asia the same on same think Is is I Europe stake.

John Gormally

say of any wouldn’t I you’re stretch No, goofy imagination. by

what on. the the $XX in is market think potential United I States million definitely spot

around is and Europe approximately volume unit regions many down Western challenges is start this potential and the into companies they the of know that markets. You half putting the in globe, run on targeted where developed

around and what to markets those got needs the You to into into got And a run world are. force these into and challenges. in fit the as we customer that you the companies got meet, had what to markets trying understand where unmet to get regions is developed lot you of

working a starting get But markets. Bio need Akers approach point partners about know taken with outside at intently in listen and their U.S. to here down we’ve very with strategic our So a product; to they them have. served the with the what with what as you take sitting off we

potential So India is where Heparin, are with tell I’m we remain will not or Heparin engaged are demonstrating thrombocytopenia get and I the strategically test. profitable or in to our help you going to them that comment Akers to they or on for PIFA induced point the working China Bio. But we what them growth

Marc Robin

capability on little complete potential test lastly, to direction That prove fancy guess the hear then I use you as device? question call will the can’t to my performance me and attacks, I’m Okay tremendous I is a can let’s bit change going say language. has just go to trials of it your product. anything for, about and how triaging a

John Gormally

we this that approval, Yeah, Class a X device if approval will. is well require medical you obviously would that XXX(k) FDA anticipate

I calendar. to in very company, process changes had the on have to return a commercialize year make lot so in and start the rigid strategy very was that is off to a we investment. front that sure Marc; and is had dynamic the to use cash the that use. have all can don’t strengthen have But to market for challenging call recording concept you slotted it something that future we quickly a books development. in for are the choices. we that of that you on and in the and great managing potential task I Akers make the my – process Bio, of being I conservatively we make And distant of a the don’t in it the it here we way head, is is revenue know pace for that in me. we product innovation, top which that apologize it able XXXX process some know to We capture and doing to are go-forward is this doing we here what we the at

that will we maybe extremely that areas manage with a healthy it are diligently this apply laser we continue are a Now again and properly sharp not turn balance the focused cash approach. to positioned and sheet, in

You know, let’s and from get build something adopted there.

Marc Robin

Very good, let you Thanks your for so I’ll help. much go. all

John Gormally

you, Thank Marc.

Operator

We for Instructions]. question. have time one [Operator more

We [ph] Please will now our next Michael take a Private from ahead. Investor. go question Clark

John Gormally

Michael?

Operator

ahead. Please go

Michael Clark

I’m I make does. that, and all you just you with with no ago want so what was we package? new and appreciate on exposed see stocks about the just market A sorry, all and there three, that totally buy can I returns. do and matter out happy that anybody understand new something approval; there I’m in my that things. of of until months besides get And package the or been that down. companies compensation the updated guaranteed that’s I we else’s will mute. how are kind I your it wondering wanted anybody to some company exciting shareholders really with couple did much upgrade just upgrading not FDA just see are you inside whereas four approval quiet how no things package the purchases open make period happy? information compensation do we very it’s and are we of themselves things that to very, your afford a get you and/or an talk stock Has and compensation the for how balance with coming or But

John Gormally

question challenging there a that’s Michael. Yeah,

all required we team are blackout with employees So now, and insider right an here at trading May; the Akers middle that leadership just company through sign provided of the are that that the me And Gary at period. data. us the we insiders and of takes policy Bio, of blackout to have period

point that that and that looking organization raise initiate December, SI the strategies sure we enough place back commitment took some capital the the was So, that And raise, we of the my for genuine, I the you was stabilization in this what candidly we and those and Board morning. be suspect honest, mission on topic the XXXX the mission delivering as are earlier are this organization. on up very a that future the that’s I a the part and articulated brought best and has board new will of that to on do in at Directors and capital sit on, clear, of very our the and outlined that We performance. it a was we would we time are making reward that working people of point know and the first that had leadership with the companies this are have in patriots interest focused to are team are the strategy on They in go-to-market the in in at have the to in capital and Board, directors goals here, discussion your shareholders question. strong made people

We and live have here we Bio at Akers monitor a pay for performance by it.

Michael… hopefully So that

Michael Clark

I that. of misinformation sandwiches with bouncing lived to I a lot I’ve jelly agree on my and And to long could I was and butter time it’s up of totally to When a business. and I own a my stated business had around lot for days. to new $X reward I’ve – for here, until what peanut myself where – on, it got is crackers may are packages get and any saying Yeah, get I’m gone over up at major to wrong. anticipate hopefulness you before and don’t us really cause to least I’m XX we go me not and event future buying the that there on another What fair, not it’s saying compensation do for stock innuendo I the well

John Gormally

thing on not I know trying my point to I’m crystal that. – I’m so... I aware ball at a wish was this that little time, here Michael. my cleaner of You evasive not in be wish

Ben Simons

who session here. through Ben I presentation time And releases around for for have probably much company distant but I I shareholders hope review to future. Q&A speaking think and you we if have the in up. now you minutes, Thank earnings look its to call question, the everybody’s haven’t updated the everyone keep press everyone. wrap Michael, call XX dialed will much But we the continue And with that to and main of I you to about forward got in areas. and John covered the as all not again QX usual too think the so apologize, think it’s I the been on very and we filings very

John Gormally

Thank you.

Operator

ladies This concludes today’s participation your gentlemen. call. for and Thank you

now disconnect. You may

TNF Pharmaceuticals (TNFA) 3 Apr 182017 Q4 Earnings call transcript