INVO - Earnings call transcript Q4 2021

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Operator

Good day, and welcome to the INVO Bioscience Reports Fourth Quarter and Fiscal Year 2021 Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions. [Operator Instructions]. is event this note being recorded. Please, now Robert Blum would like to to over conference the with turn I Lytham Partners. Please, go ahead.

Robert Blum

you all today All everyone. XXXX Financial Quarter Thank very Call. And Year Sarah. right. Conference good and Thank Fiscal you INVO for for us Results joining Bioscience's Fourth much, afternoon,

and call Company's the of is the Officer a Financial Vice President INVO Chief us the today's Company's Chief Executive Joining conclusion Operating the from session. question-and-answer will prepared on Bioscience's Development, Andrea Michael Officer. At remarks, Campbell, Business today's for Chief open Shum, Company Goren, Officer, Steven of call the and we

no management results, under harbor many business Before the amended, Company which within competitive Securities the or actual following in we plans for or matters turn of statements as Litigation of All objectives Securities receipt Section conference Act made words actual may expected forward-looking otherwise. statements. disclaims over Act achievements. if, Reform and pursuant Section differ discussed such meaning we that the to products submit control, company's results cause operations, with uncertainties, the may Steven, the similar may, XXE financing call future are forth statements amended, of INVO expressions to event, Private this the of Act anticipated the and XXXX alter opportunities, estimate, well of Executive XXXX. and beyond Factors performance from achievements statement. such Shum, obligation materially such provisions and cause anticipate, the obligation INVO company's flows, of forward-looking of will, the forward-looking of be contingencies, any plans, Exchange materially for risks of financial involve intend, filings, the that other the Chief cash XXA as of from differ those or performance, position, include of Bioscience, operations, Company's statements future positions, events results expect, plan, Certain statements growth of me statements strategies, services, the record and of as please Officer to regarding management are to results and statements safe is as include may on to as results, of the All in by Securities future forward-looking XXXX could, should, set which begin call those whether forward-looking let update the or and said, information, the Bioscience. www.sec.gov. expressly proceed. statements, Steven that With forward-looking are believe,

Steven Shum

the X-K high-level INVO cover And on welcome, the starting, of annual here area call presentation published now an to around short now. this represent critical the Investors call. of go-forward website strategy We is targeted because and centers and objectives. our this commercialization under we section this approaching posted we're prepared now on our some it our presentation such review of also of will part and Robert. details note to summary goals you, That our both Thank aspects that added I to just We we this just focused filed want well but prior specifically also efforts order as how news in provide a but a release, filed published INVO XX-K Center everyone. to also on

of some regarding it that of often the many you effort. this believe also answer will questions We asked

chance. course, update when a So we And at have encourage everyone developments periodically a will to you it look as we additional of occur. that take presentation

important the the exciting for end and and outlook, the of Moving state to year. first our particularly was annual company, the developments review me let progress how resulting and toward XXXX just

the continue vast affordability efforts every from and a we've help We that population and can IVC fertility of challenges our key know to focus go underserve and I on substantial reminder, care INVOcell of the frequently advanced number access this stressed to those expanding and treatment strategy the to a on year. As believe patients commercialization market patient to capacity for untreated people. address help in provide order perspective,

entirely As our patients. offering IVC the first focused treating of Atlanta, out finally of now the jointly-owned to and develop key Alabama, this new are successfully we starting set in Birmingham, with procedure one objectives, and our accomplished opening fertility three We and latter three opening commercial the Georgia, in centers the the patients. followed solution centers pathway operational for of to centers an Monterrey, year, on new by by part with All INVOcell Mexico.

arena collaborative INVO our amount many work through to the on and a The necessary technology new first went Center focused INVOcell as what before well the started into the a clinics, existing we three of know in of without fertility work to continuing distribution longer-term, very Centers the as for you of effort, to manner. So commercial selling clinics. the A solution business, treatment Company. of this practices the leveraging tremendous INVOcell our milestone we INVO in OB-GYN the those strategy other actual question, was, opening the opening established major refer something bring establish and clinics to existing clinics, remains details,

helps forth to gained with as these analysis. with look clinics That apply concept most help wisdom and the through the we'll process extremely expect the expand that we the moving will We to we a would further that I improved lot on impactful and note forward, planning experience and overall Center Centers forward. awareness and progress our certainly overall. INVO expand first learned really commercial also be INVO moving credibility

steps several in opening an For Center. key INVO example, involved there are

conscious timelines a process to strategy as new also here center, steps more implies decision news. is sequentially. chain parallel are to them making of the The we logistic more to offset challenges, the those are supply well doing the or lead initial improve we This such, entire a than issue a which to over and are rather in often preparing the compared centers. a real As of taking move as necessary help on goal reported control

believe the the upfront to bring operational. startup an costs, to INVO On will average Center $XXX,XXX, closer costs we

We depending capital to before to $XXX,XXX also now the will operations specific structure each point on $XXX,XXX support the range the clinic operators between a reaching needed clinic. expect the at breakeven with physician

to for it the months expect to We center. ready to take each approximately to months eight open six and build doors be new

should a a of we to in along we We approximate update INVO setting $X.X ramp, towards are toward a how and are reach expand annual determining We to XXX we perspective, markets. to progress. we're that high-level over approach selecting each approximately challenges million involves setting XX This From data an areas. of and is and can three that expect revenue Doing point current around our by Equally goal well objective, annualized equate INVO a way. treatment and profit. both that as ways as - centers goal operating rate. we to review the important data the qualitative million when will run a see center a Center impede single-center new recognize so that quantitative could taking centric cycle years. $X.X it this new for next at But looking individual three-year suitable an

the Please since with and level centers portion imply expect would So that $XX interest, million this or in at operating operating sharing shared revenue most profit. in XX initial close of they a to to profit that these will be note of million when target position a all be $XX we profit JVs reach there operators. of

accelerate and Of plan, in don't course, the develop and which well each additional we could at out we will down expand, the levels as also center startup XX intend with grow potentially target this to collaborate stop to ways -- we centers term. to as this infrastructure long -- plan successfully clo those drive as evolves there, look existing to initial costs. Also we can further if beyond

try have towards the over will underway to having giving the Tampa located. a We we it and a well achieve the how this been multiyear but work as but Near-term, year. well. we we want to big-picture a and perspective, to complete goal do our as thinking That want realize working than time. to I initially we're build taking expected, site shareholders through Northern planning is what process. And longer understand California that specific center we is we're expect

our We to this the as cities to expect start strategy continues intend expand evolve, we also additional -- efforts. soon. announce very ways we further process to Again, involve may find to on

part course, is only approach. the not of our Of this commercial

that part an existing and are we distribution encouraging still the to front, IVF our clinic intend market. activities, as established on see market existing the clinics. believe We expand channel selling support and this is fully working to important there developments to of We

an interested INVO have us also teaming market. up partners with develop Center We their in in potential international to

the efforts to and resources, focused We the are much it necessary partner on with will other support bring where bulk Center comes the primarily American for of operational. a of our our can but work as we North to interest rely us on areas in additional heavily we INVO center

business experience over the our the we've commercialization have us to efforts ongoing and we on device strategy. assembled within fertility collectively As many years as position the noted Their year, space. well in of past the execute team

posters INVOcell, adds practitioners of part along confidence presented were which and for data, clinical is data patient demonstrate late peer-reviewed year usage ASRM around the which expansion alike. abstract important further real the very technology our at of outcomes Another to continues the patients outcomes and patient stories, excellent around papers and validation to with builds last including market

new to well. own excited also INVO early are outcomes see We days Centers quality these our as experiencing in

that brand progressing practice, and the build also medical are establish solution. that initial awareness well, time they local is INVO one around providing Centers, does a it treatment newer a to recognize take especially we new On

doing inquiries and consultations well. then Mexico concerted metrics to their such precursors but as Our We're accelerate in initial a their their insight also clinic reputation activity, are in INVOcell same area, cycles, and programs, build early patient IVC we had marketing future and with these Birmingham manner more which and deploy that important actual to look located longer valuable in prior testing are was initial learning first from to trending in larger diagnostic to trends to advantages previous initial market experience given have Partners the earlier taken key revenue will patient initial clinics. Atlanta specific around some gaining and something to

we moment, five-day the we efforts, Let which clinical last necessary data all completed call. me transition collecting for a our reported on our on

showed However, input what back that turned required the that we of was data we areas did out not of that inconsistencies needed Most us the point to recognize that clinics to clean be that clarification. for to at circle some to up.

we have than believe We are and additional envisioned. This was find back turn and the around process. With We as something weeks. coming the Michael. prepare will forth all much let the for to process additional don't longer that over described any statistics and around items we tedious data originally a this Michael finalize hope submission, for through ready the details more efforts. we now to some commercialization that, in me we

Michael Campbell

Steven. and joining today. And for you, thanks everyone, us good Thank afternoon,

As technology selling our INVO Steve U.S. world mentioned, initial is credit on as IVF our Center focused the of as a to the based strategy direct distribution concept, rest network the into commercial markets. well

where two discussion starting to on key building mentioned So going I'm on break Center the INVO areas, model. off these into my and Steve

share where key you we areas to So short our objective is order. in open here mentioned, market potential in clinics can capture as high-growth

we Before review market. data of a as as as each on, qualitative taking well a touched potential centric - this, Steve are

Some nine with in insurance, XX right specific currently -- coverage mandate insurance mandates dates those now. comprehensive our only in areas states avoiding of U.S. criteria have have comprehensive include really some but fertility fertility place

a tend to could owns and the which avoid for reduced the network our us. We health in referral fertility where base potentially both also OB-GYN clinics system markets result

and focus have that capacity that that partner primarily have will areas that where significant -- We patient we on with, areas cash then pay. large groups have demographics, can we areas are OB issues, sustained GYN -

we area, metrics: key open just the people Center. As the an following announced in area. an the about $X plans million Clearwater to population They have have is in Tampa, example, St. general Pete INVO

of fertility typically, demographic. those around childbearing So to half of age, XX% that in being those an that XXX,XXX in brings being women, estimated about women XX%. averages And, women us and

fertility So that's of need treatment. in about potential XX,XXX people

about Now, population. -- necessarily seeking entire we at Bay about are X,XXX performed But reproductive in about data, the serve when treatment. of area the all there course, Tampa through procedures local being endocrinologists stock not look that currently, XX the IVF

the similar believe we and, procedures excellent we to need the gap the types markets. we in Tampa course, these XX,XXX of why IVF the need. as treatment many observe in example X,XXX of in people a have dynamic we relative So potential to chose of And of availability U.S. And metrics an can large of city. highlight

metric optimize but Possible locations. center tourism consider geographic involves gap the expanded volumes potential noted about we to able and cities far the we as these to earlier prioritize Center to will between metrics the our an treatment. to related another to trajectory XX that patient availability optimize our locations, As initial drive list on plan to have and the Steven growth you our assets, medical potential metrics approach target marketing maximizing to is financial concept. entire potential of be our also demographics of longer-range help goals, of and the the fertility will INVO

in marketing, our model. physician marketing, of INVO driver mind, we'll to the success or a education consumers program. growth. is constructed South in key both first recognize the the sustained With Speaking to initiatives center at we brand, and marketing But support our referral demand and building of educational that physicians look help for referring carefully this we

INVOcell treatment noted, introducing practices the key for INVO a currently sustained practices expressed refer after we across with Atlanta and approach learning about and INVOcell OB-GYNs past IVF Center, XXX as the dual referral Atlanta, which use centers XXX OB-GYNs will to few and that objective meetings for in patients up OB-GYN network as infertility for involved set initial markets. program several supportive most in build potential in we proximity This these to patients high program resulted we to unique seeking our And for a alternative out The over initiated a Blum template a targeted As with affordable and our evaluation these months. to location observations. this the previously as more practice. this other help interest

more was a strong with sessions for physician there partner case were educational these set physician referring our results clear the in established option up Atlanta awareness INVOcell Dr. groups Carpenter. about lack for learning however, for of First, the Sue which and INVOcell, in we enthusiasm Ellen

and have we In community we and the meetings vast XX which in from the meetings relationships far many another of The we in continued INVO Atlanta February. OB-GYN physician highest So these and majority. Center at profile referrals practice resulted January, XX patient XX practices had time. speech as received strengthen knit anticipate XX in over consults support referral

are we using the centers level to connection community, program the have be So and In this program again, three-part to as with the affordability, this marketing replicated INVO are the around program. medical to and order strategy promote INVOcell. trend in a personal we of referral can Again, for launched to INVOcell additional the in highlight to areas that future Atlanta public and to region. expand a template continue accessibility, country. the we deploy this participation in surrounding from pleased position plan We

This generate existing there IVF to as Twenty-First AdWords patient is INVO have highlights and media Facebook, in engagement detail detailed This and direct a to our brand our Twitter, success centers Dunkin is INVOcell. help into and organization funneled disseminated promote sustained and an We Linkedin our activities. from recognition will would that the campaign the leads a INVOcell our via from leverage platform finally, area announced INVO advertising more INVOcell around drive practices on Mott's brand more in availability patient merits, corporate that surrounding leads country. First interview our Instagram, our centers, and initiatives, for story centers. as sell. content experience, stories is with patient engagement. targeted focus outreach via And result, of commenced brand markets a been INVO through demand request seeing these Nimbus to consumer influenced

prospering. and initiatives formal We marketing these for referrals we're results Boss a objectives. growth principally our will and support and that in of in consumer generate demand As now we responsible Shell, meaningful are anticipate position

Atlanta conducted awareness these first initiatives more our forward. the and that begin and in where patients, an in I as take originally to finalize awareness champions. the kick implement, previous versus for were those mentioned, across going well INVO with centers recent deploy a traffic these online, respective note most all our X opening what run than results in as first result clinic certainly pre in to-date us is information line has to now future cycle is initial was of the and to Dr. of and has the as months XX% Overall, will in separate of active Birmingham, Atlanta also did along themselves collaborate growing can an growing more with as probably accelerating early in clinics had pre base I the the this the practitioners pregnancy -existing tests, these markets. of how seeking to centers equally both and of that's We five volume results goal series of markets. due weeks expectation programs to begun performed That our Birmingham, already clinics. a now we steadily metric INVOcell earlier with website fine-tune the in anticipated of trending. some of series consultations positive to XX requests firmly in, outcome which series separate starts here said, then position which have post the their in Steve to quality mentioned marketing earlier their think patient referring clinic level traffic, more just Mexico improve and we for three were the transfers. has potential has referral to important the ramp new month, XX active most them in all team the that It efforts even ramp-up resulted early impact say referral the that initial All patients in Atlanta, did separate the program from batches where couple to clinical respect as network for of are was With of exceptional. longer with expansion these date, but INVOcell for the initiatives off that to the local deploy with will Our to beginning greatest physicians encouraging are they two with we -opening X procedure the not network. and or aggressive support much look relevant Hammond inquiries come allow from in now

So February to that our month September, we're kicked opened a with online XX clinic be year, the spreading they January, in XX in November frame, this they October efforts. marketing have we and in frame. when appears back off XX In December just and patient consultations the had time when just time

awareness early their just too volume. see of to phases of to to volume they programs recently of help cycle to we rapid in patients. increase and drive coming that continues and are as cycles months. the some more awareness social market treatment similar local ramp, January first this So Atlanta the media year, expect in in performed They Mexico have treatment in local Atlanta, initiated the building

February the encompasses the with This as segment to control this of a internationally. U.S. to implemented side we to know insight procedure as some methods they U.S. how mentioned, selling, have administer the especially business. network going since direct year. into product training distribution IVF INVOcell requisite partners the side prior The absolutely distribution in This now do the direct established a selling a of associated I practice. the this Our IVC program into from I'm U.S. successful is provide market and important partners of INVO the distribution into is Ferring we are in based resumed very of where in clinics. in Mexico

He reflects U.S. XXX of tenure. create And hired feedback encouraged in business INVO approximately been up those with a manage Ferring's interest able we in initial in to been points clinics as decision key process part have for Dravet clinics, important U.S. came pain clinics so to is INVO of of support training seamless. and strong ourselves, ordering very order. background in market alleviated with And a the the these directly point through U.S. base. that He the to the strong refined a during We offered the and to with begin to Mike the plan ramp this part the been before Vojin dedicated rapport Ferring we There made price of legacy we strong improved that transition help of clinics we've far our (ph). MSL. these with We consisted clinics some discussion to fertility some short the very manage network support practicing a resource or with building an and patient has were that were awareness process the positive. was clinicians. Though and feedback to INVOcell, that this relationships -- has were were our trained gone that previous build business. trained utilizing and the As and

through markets standardized the their INVO here our for of the In in initiatives excellence locations, collaborative we center market. spearhead clinic INVOcell specializing make four our reproductive in announced to expanded a possess for Regarding the Europe establishing presence training Spain, to OVO INVOcell relationship OVO business within within clinics group as Ovobank goal is to progress and with with of world group treatments Spain, to here establish the adoption OVO rest well. as well newly centers formed around platform. of The adoption as European locations the accelerate future and of of is their we is Europe. markets, continue throughout they assisted an helping

goals XXXX and a support desire alternative reminder, Ovoclinic's expand -- technology. initially now an with to to them as this to working Spain, mentioned have In engaged to private the we began Malaysia, the introducing work and is several medical effort assisted two a we INVOcell Throughout in in well. as joint commercialization in we working we trial to quick individuals achieve sector, of groups begin previously, their trials, are product evaluation Spain look many direct care. adoption help venture to we forward of the physician successful treatment INVO to primarily with for the with in Centers establish reproductive need the the Ovoclinic As a government and actively effective that discussions ongoing sector here as

Carlsson, conducted recently training training fertility shortages was practitioners, over Galaxy helped we'll their systems. VP XX.X%, equipment throughout distribution you opportunity Medical to be our perform MSR elimination OB-GYNs, fertility REIs, Africa, firsthand average was with by Africa, Recession Britt lab to the have This clinics patient lab those keep participants driver GE countries. reported device systems The Bosley the and rise as an by plan regions. extremely is fertility the fertility separate with surrounding including challenges understands of in as can an of of in transport the our success on which about Center be a operational INVO has recognized the of country, where continues can the to rate practice of as region. hands-on XX% educated INVO power experience infertility for and nurses. were Ethiopia. distribution We for the seminar play and successful is readily XX concept, partner regional practices initiatives. help more is Systems and been mobile on procedures. a will increase GE XX currently in labs to high major on see incubators, So to XXXX. including an medical have extremely areas Pakistan, updated well this as Inger end XX helping and INVO They that Medical also represented from the and and their nine In capacity. adoption. onsite for where influence our partner, Nigeria Within and outages. some progress how become mobile of partner INVO the session attended embryologist, labs number of mobile advantage team, in combat total by a sponsored They can understand meeting Affairs, beneficial they this event lab benefit alone be in adopted springboard GE this key able can rising periodic infertility the the separate INVOcell in perspective, unique device process event fuel from attendees which unique believe A in embryologist A an INVOcell important existing for of

and developments a discussions progressing will have on We provide occur. above number updates international specific as they

INVOcell. traction So more people day, about pipeline remains strong market in and meaningful growing. We see that learn creating our work each is

And available to Want taking for Steven. MSL to this support. with and you, for that, to for with send new to become I'll it those realizing committed your and every continued making a to wishing step baby, back parent. affordable INVOcell a today is call thank closer all are globally vision. team And Our the option joining you we

Steven Shum

quick I'll a Thanks open up to just Great. Michael. then review Andrea financials straight of Andrea. turn we'll for for it and questions,

Andrea Goren

totaled Thank net a $X.X of million to recorded $X.X compared million, to you, compared year. net prior in Steven. period. the loss the Revenue prior-year $X for of $X.X year loss million million, the We in a

$X.X was an EBITDA included our $X.X related Excluding last of adjusted adjusted compared to million joint the $X.X loss compensation, approximately EBITDA attributable equity-based mainly million ventures. non-cash to The charges year. loss quarter our $X.X million, EBITDA adjusted million to loss for

$X.X be year, last primarily our EBITDA goals. license This would loss consisted As internal the our adjusted Revenue staring such, consistent comparison with compared year. an million was to revenue. of apples-to-apples current of $X.X operational million in

of $X.X approximately the that future million in approximate recognition. Ferring, our license XXXX $X.X for of result with revenue the included a As termination agreement distribution million was scheduled

Atlanta, Georgia. Our $XX,XXX to we in consolidated $XXX,XXX product XXXX. revenue in our in in an recognized Center $XXX,XXX And increased from from revenue initial XXXX INVO

revenue the operations financial equity December generated of Center operating million accounting expenses Georgia one-time consolidated $XXX,XXX. that for as the Georgia while December the September in should we ongoing costs method, XX, include and JV non-cash using of expenses and joint with year, evaluated the statements, were approximate Mexico before operating revenue expenses start-up the offset the further in treatment the matter $XXX,XXX from had be any $XX,XXX accounted approximately As to experts, proper per from cash these our of three be its gross the of certain $X.X expect should quarter equity of ventures The INVO profit. JV as last XXXX, approximately determine we $XX,XXX subject expenses support we JVs Alabama well for and year. through and near-term, for In

from consolidation note year-end Our inter-company was our as receivable as transaction outstanding JV, Georgia in sheet. balance $XXX,XXX on eliminated an not and had of which the is reflected

Georgia in of invested onetime labor, loss In a XXX, Obama joint And this included Mexico bringing $X.X the we note, XXXX. in $XXX,XXX pre we $XXX,XXX to JV and which generated made of addition of also contribution These and our to $XXX, year-end. the other equity $XXX, million respectively. expenses. to ventures startup XXX JVs, and -revenue revenue a date The million as of have investment $X.X total a net $XXX,XXX

INVO We reduce new and startup expect to for expenses one-time centers.

investment operations Alabama to consolidated outstanding the can from As clinic in Since cash entirely almost launches. year reflected Mexico JV. XXX, described be we at million our method with JV, year, XXX equity the future no experience in last apply operations $X.X and ended statement with approximately the minimal $ to of loss We our debt. XXXX

meet sufficient notes this amount business is in our converted, needs. were near-term liquidity our all either development of forgiven, or repaid to As XXXX,

over progress We we have support recent INVO our focused expansion dilution. level Center accurately plans. additional by that will equity even that access our believe stock capital the evaluating source reflect sources non-diluted we INVO would to minimize funding on we prices capital in We past more below alternatives, well the need to several sufficient believe are less with to made year, would including options the or

look warrants outstanding. In to growth deliver those and and shares INVO bear very you, distribution stock Steven. As fertility summary, to much. to to Thank starting we of Back we approximately treatment of fruit Center thousand to our and need. effective in can have from efforts and million approximately today, our activities forward common expanded affordable you are XXX $XX.X

Steven Shum

we Thanks, on today's went prepared remarks. little long here Andrea, I know Great. a

let's go for just ahead up and Operator. open So questions and

Operator

you. Thank

begin momentarily We to pause assemble will now the time, will session. [Operator At our we this roster. question-and-answer Instructions]

Our Partners, from ahead. question Vista go with Heerdink LLC. first John Please, comes

John Heerdink

Thanks for update. gentlemen. afternoon, Good the

ways. the Question that have excited express in for I'm you, I myself what market, know, -- this number are you I doing guys although as quite be I'm it to at excited can if to needs I of picture As hopefully address about plan, you about is the be look when understanding often here as you corrected. XX three and bigger a five you soon correct to be soon and and my

system As I under-served. market after is XX% get going through population a of we're approximately it, the IVF. that carried current patient cannot understand The

so is U.S. we XX% XX% of from alone. not in than the of away leaving put to out about and then know that jog can process In without at crazy these we or is right of only baby it forward, looking actually and are to But what one greater next run got clinics having s quite then opportunity And are go enjoy these a building clinics. think Again, walk one moving IVF of near, have that door, population bunch we the today? of to clinic not XXX and children. served being reasons, to and operation opportunity before to XX% we're we many country's clinics for there care. right this If case, the to and viable I don't of be U.S. serving able the in again, of number the and a now in that access? And about so the this Is etc., a fill, even are population being alone costs, serving today? get that again, served

Steven Shum

that of often we've but John, XX% six to where made patients month first apply there, four from point. that the could Michael some initial not are do few clinic. market think that own cities and even market activities, clinics centers, properly without a I'll seeking of affordability that wait The It's we beyond get appropriate discount every this list is our going patient probably support care, higher is feedback into There's in is necessarily with our to we see large but has to see guess talked can to the the help the there centers to remember, the that, have care, a certainly we target patient treat potential to say lot referred a go to there's think certainly of I population. factors. care, quite so without markets often We a initial that to, certainly with questions own the about regardless, that there number number

So know, afford, fertility. of factors of to there's biggest scheduled age ability to getting if is negative there's one treatment. course, we the in an all challenges even And affecting seek as

lowering So statement Again, could that's the beyond to list clinic, that if potentially initial chances into wait absolutely, I think a the is, your the further say success. -- XX there -- well support is would you're on get broad that market we target. a of

other specific bringing about is clinics Center from point care share idea of market. to existing more the trying through the market that highlight would affordable INVO The not here that a market is to an key I in take additional,

you Our the pointed goal, population. and up as under-served access to out, open treat is patient

in this this. care, actually the potential out, focus, is at of exists several look patients not those the that are capacity. disrupting if need again, fulfilling called you our And care already market. Michael supportive actually need between you that is that And receiving there's of those and and successful that's of if potentially care, apply examples Tampa, So and even discount, current gap additional pretty a

levels. in with zero lengthy price targets time potential of are initial with entered But markets it. with long partner definitely a target waits other proof higher-priced to really IVF feel our validated exists previously And ours. further there's but into new even think existing add of Birmingham, the own close a existing Our that, there's to that this haul. of where their success impact clinic, which a distinction, in highlighted. but We the substantial the I point just different within potential examples landscape the IVF to the here additional to an something these expand demand practice lower that previous and to to the free and demonstrates it's achieved market practices area, at Michael, in clinic, all Michael the this over there's some clear would opinion, concur to our speak are price where fact, in there get in beyond we've

Michael Campbell

industry both need. points, just and with potentially not the it, of unmet folks us it's Steven, out there's additional all information the from the an that there recognize community channel investment the a lot again, I saying within agree treat from need to this and for

So it's pretty well known.

John Heerdink

And me in year? market standpoint? U.S. IVF in clinic any the number have approximate we it ask a or did dollar let what that recent an does that the from you, serve, when the revenue Do represent

Steven Shum

Yes.

the billion carve opportunity, potential price think of probably range they're for in access, is is point if get IVF of is additional the what of the CDC often to close market trying that we not at lower expand still it I make dollars additional cycle bring market. other point, assume think And that care market statistics, that's treatment, existing and the $X usefully at expansion capacity, we're out often considered if average in a a even do piece you'd of for to we the trying billion an per you multiple existing worse expansion at number to again, the cycles the market. can billions $X if look we affordable that the cost price,

John Heerdink

Yes.

were we $X.X be price, just I'm grabbing if if would right, that XX% and the billion that's approximately another about opportunity. you hearing half mean So a would

that XX% just served. that's XX%, correct? grabbing to that You not being that adding XX% Is

Steven Shum

That's correct. certainly an sure. opportunity That's Yes. for

John Heerdink

Yeah. It seems quite significant.

but these should it right first think plays we like so -- a and go is clinic see as be open starting out up. now, again, I it patients great at significant very how opportunity or should be you're three. stores, it seems interesting as it's this the show traction out, to to see If the So just will the

primary across there here some one possibility too be different So in had speeding that that. be it's that maybe could it so Medical's, rollouts. different And starting rollout just partner the it same seems you rational is markets, created, are them look there rolled have typically out being, have in as for successfully out And in conversations are minimized? that to the partnerships real as financing, seeking estate out to here a were to Is The success with etc. way that these. the that with I've and a of targeting U.S. rollout, even But have where up see if and at possibly think there marketplace and had far the you etc. help village to firms with financing obviously that possibly care, are dilution to that the? potentially efficiently and partnering the in a clinics, areas co-investors similarly etc. being sized with companies footprint

Steven Shum

tools We sure. for there of think out there Yeah. are those kinds

we option some potentially that that including we're sense, what Andrea. the think something I lesser, Yes, likely of tools non think we're as mentioned most that or exploring. think that costs. the that those for would - says evaluating be even most Andrea are makes potential available upfront that's I are dilutive

John Heerdink

to immediately about revenues Okay. the also, beyond In range the Are would? to through the are well case, And clinics the might that clinic the Just INVOcell centers IVF seeing before technology specialized offering experience cycle. drive you in Since that or an in seeing just thing you other are same I and next then then speak what fertility fertility services investors. last INVO, the clinic one you your come jump three understand a or will can the other clinics They you help through queue, grow like IVF cycles me for first maybe bias a What's they through XXX XX% office those? might a some regarding patients or in and whatever but come control have think of month does also. and and that say -- have clinics as guys have number are I you control.

Steven Shum

a there, testing, assess couple you're that those are. once some clinic questions are performed move consultation, they typically if Yes, other services. they what by charged provided when those often to issues of diagnostics they correct. to come there's there's on but services progress they of Patients, the And the a through revenues, are are various are

source. revenue a certainly that's So

a so if clinics, are that's they certainly IUI are source. cycle perform may and Our appropriate it's revenue there that cases

a fertility So the there or are definitely simply beyond just are that revenue clinics, clinics any IVC components like treatment. to an just

feel bit consistent not conversion would in every And be those they before decide comes to that So as early moves draw a -- necessarily it's think testing. even diagnostic that proceed. little think as consultation they may may yes, what to not that conclusions, say for but our patient little I with we you And see. but I for remember to normally a wait practitioners far rates, immediately I a a do feel treatment. that's candidate would

that what So on Michael, often do to initial for be and candidate that, don't a they may and has potential I it, would patient in specific for our again, call that if the further still that's centers. our through away, consultation I not and is may a clinics, are they dynamics do he we go proceed say add if patients pipeline that testing and to really on of decision a I'll see treatment, a when Michael think wants -- anything see it's to in so and just right those similar making patient to lost and but all

Michael Campbell

No, front that high consults will in a say very does metrics Birmingham and the me, but closure have in very that's I of convert does Steven. of a she all I to accurate, actual lot very, cases. Corringham But the think

to that magic well. some process is as there So

John Heerdink

and on to and -- congratulations forward. guys how of announced progress as Again, team. seeing the you, the to forward success plans Thank move you all forward, look our

Steven Shum

Thanks, John.

Operator

go Our Please with question Fidel from comes Lawrence ahead. next Instructions] Investments. Fidelity [Operator

Lawrence Fidel

Hi, guys.

Steven Shum

Hey, Lawrence.

Lawrence Fidel

the that the you I don't could -- of know country? status what's you You you had your have you of review -- clinics could a out have

Steven Shum

the outside our mean, selling you to the just more talking clinics? we up clinic only the on Mexico Lawrence? distribution other Are -- fertility don't that Mexico official is partner. INVO Center with and you we're have where country device Well, Is what we business our running our

Lawrence Fidel

I and thought -- clinics potential clinics you had in India -- the

Steven Shum

to our of a we that We COVID, it our forward I We we JV But, best decision right really signed with hadn't adjusted free said, the really other Our made and day satisfaction. with with And which India just made we was partner, happened delays. had partner, have had hadn't we it engage hit, struggled able and And other past of it that significant other agreements we so to as has thought they you're was one as to severely India was be filing year, we inquiries India, part market. would sense them. the and they of moving India first to at signed after we've but, -- in our just -- so I by ourselves their progress agreed that -- along that. COVID, to right, parties. agreement, the and like for just recently which they few pretty impacted think, did focus with experiencing the we've few And noted put potential COVID to really conversations a XX-K. and that -- what over some were made again, a terminate -- stop us they the

Lawrence Fidel

Okay.

that I right? have a the did deal am Middle East, in You announce you

Steven Shum

and and. referred mix have the they a in Malaysia What's still in We partner are Michael that?

Lawrence Fidel

that Is deal? a firm

Steven Shum

a agreement half to of the do and it's engage the hard in and we interested but And the to work from our we our as have enter to us partners manage on -- remarks them But operational really putting for focused internationally now lot an we're of bring the don't most them, it's are operations have us the necessary we're, centers. us really in with more to that on that that one willing with owners control. we're is and We we're made prepared right for North points American earlier internet, more here. much

right So got partner. it's to really the be

Michael Campbell

Lawrence, it's the on Michael is as just the well. important with Malaysia deal trial

we the through sector. As trial initiated I a mentioned, government

group ongoing in We We their if to some with they based standard works did rest procedure and world pretty And most in Spain Malaysia, and markets, the procedures in as have well. some overall how these countries then the will, beachhead go before data. make and Europe, you are a data much engage get to operating trials on we local of as build we want did It's to the clinic some And of that this hands. had in can cases Spain. decisions we guys thing their within too.

yes, in do we two interested Malaysia, parties, yes. So have

market, these do order of will. also is have this plans arrangement to if to a this register have In they actually official distribution Center. international to so build as and One product parties an have you you our of distributor, are have distributor an in a local company they part INVO

all ongoing. that's So is

Lawrence Fidel

-- back Getting

Steven Shum

their have ramping long of distribution mentioned do highlighted hear efforts to East, in up Jordan. course, those a and placed Middle we We've Michael I because which they trained ago, Lawrence, started recently. and first And, Africa get the really Turkey partners order

areas what we whole with but a of activities some long, the have But is taken have see progressing. these sometimes while, impacted quite world. in certain So especially they're COVID, these

Lawrence Fidel

pays question, that how -- show me an dollars would to How theoretical do a thousand just type money? money? interest Let if somebody you do How ask you or a you own you in. but that -- have a clinic of record suppose the

Steven Shum

a it, we let the current and let future maybe center. address us, Well, in contemplate by answer to take can turn I for Andrea here for what I'll centers, the -- then going -- I'm us and the accounting but

So anyway, Andrea?

Andrea Goren

we Yes, two we under consolidate it. the existing impact -- deemed that clinics, control that methods significantly kind using the to clinics. get is most activities we're the to for One of we're so performance is standard which the they're the key U.S. GAAP of economic

thousand of impacted you or press the did gets see on typically revenue would expenses. our interest And then would become and revenue we would in below a of is, if have have So become that bit below line. the release, a on their answer our a And we're our loss our profit they is provide with that we sheet statement which performance a operating how joint and expenses backed accounting. is the line. will as only more non-controlling the Atlanta what share in that equity there using the Monterrey, information by a provide the out did of you there some breakdown some. performance for so recognize activity. In and as table a method. venture the Birmingham our in in don't own we case whole, investment It their asking? were is Does information meet we becomes standard, joint ventures some and we a The balance Mexico, little with Alabama income that That the

Steven Shum

Lawrence, point, topic. one for this I last on you other think

be most I those, think sometimes not the the centers look instance, again, physician the will as majority as new equity likely on more likely consolidated. method. consolidated will than the with centers I forward we the partner, an specific future and ones in to the But want treated be likely forward necessarily most we're but rather approaching particularly every but of likely depends don't in always arrangement say how case, the

Lawrence Fidel

All right. Okay.

What's Another on going the trial? -- just with another question. five-day

Steven Shum

been with just and to process not the noted and lengthy clinics. prepared it's remarks, as do but go data, a have forth back Well, my I collect individual to on back then some

had when was with won't standardized volume of do sure statistics looking and data, data. and the details, to terms make bore lot, FDA we're In a because was trying we you of create we scrubbing got a lot I around of but is to it what the the everything for to support that

to and some up to have quite clinic make so every prepared in same and that largely a averages every And we're and and the clinics, conformed so is we it took a across And as forth you inconsistencies of believe had data I forth. lot into had in through bit of some are, sure I can so we from you way we that remarks, said point roll my of do back that. the time. So

submitted turnaround. But We to and last-minute we're even are, over that looking K the I'm that's should it -- we're any support retrospective on now And be data. we're inconsistencies. try to hopeful the to market the there real that they have doing quick if data the a calculations. X-XX to FDA based all data it the get here very, usage very And the effort statistical retrospective be won't soon. using as

Lawrence Fidel

Okay. Thank you.

Steven Shum

Lawrence. Thanks

Operator

next Please comes Private Our Investor. ahead. question Scott from Proctor, a go

Scott Proctor

selling Hey, opportunity. Steven, which operational, about could congrats effort special revenue cycles looking on you just here pretty to U.S. progress, the the disclosed, is in leads the as devices I'm see when about thinking on are some that exciting IVF the anticipate guess, looking exciting merit. I'm really is just speak which I don't big projected model when centers. I'm but how the how guys cycle the know thinking American overall on those a of in at you North percentage or was to at forward, is opportunity to I bit about market uptick move rate, the a fully investment I wondering in actually its if XX,XXX if you own that's But the little clinics there in

Steven Shum

Are to rate you talking transfer Centers? price the the we use INVO about

Scott Proctor

Yes, correct.

Steven Shum

Yeah.

center-by-center. We haven't little a that bit varies

guess would really priced than price -- little It's centers. we that until bit haven't better I our at now. we're that. the transfer what would sell think INVO, then. just for than leave tell non pricing versus it I a disclosed But Mexico probably if you rate I between to U.S. say it centers. it's slightly But we Specifically, better point it's a I

Scott Proctor

just revenue centers to the Fair get Year how enough. in just super existing $X.X and you're that, profitability. guess timeline I I'm go to of a in future given appreciate XXX exciting. confidence. lot seeing And what X, to follow-up these That's to million you year the sure a projecting of the the you're in looking quick And grands clinics has color. INVO into at I

the Just doesn't there, with vein, I in showing. Alabama, historically, work know stuffs in as line Atlanta you But slides around seeing INVO plan you through performance that there guidance with and with like these big on centers? any provide these Is clinics. variance what there especially are early are that the

Steven Shum

yes. Birmingham,

that maybe I note. were Mexico and couple would Obviously a if behind. the are Atlanta And probably As we we plans centers. think a have by you -- I and two slide to things I were attribute to like marketing some of brought still to those activities that. three open, of months in assess to we and clinics month think it we the awareness, really would over try hadn't lot we month-by-month we then more see month obviously line also maybe the we would to months, learning, to detailed up, that help when how drive

forth. activities efforts probably referral marketing were on the some we Michael of physician so as a programs and in slower the noted, So the admittedly little implementing

in that's activities those -- because for be we mind to take initiate open they activities a feel why activities the is we of that's early contemplate these going new again, and our we we're in you to days if refine, what's doors. before So they before this big why working best, centers the some advantage that will here necessarily going will we'll and those even of take on marketing even comfortable, their

hit with of them allowing gate. the faster idea a out little running of And the at ground so the pace to

well. little some comfortable. after we you quite they doing being how Birmingham slide so us point, bit look that it And a vantage opened, basically. -- already just is initiated our at little and the the a from again, So had late we're pacing bit really programs again is we and marking others, if of again, And

Scott Proctor

looks that it, it's it's ambitious the shareholders strategy with or the think Got sense focus. INVO and I existing it an two all The this for ago very company, different terms really of new than looked certainly in initial of make and commercial kind the why investment exciting an anyone who's even a undertaking Bioscience. it's really how and presentation from bold considering one all in quarters

So progress forward to story. the track exciting the really again on look congrats and I'll in

Michael Campbell

the weren't that to accelerate ability announcement to of that's recently to do do has been a We it's we which marketing Scott lot plan, really Michael, agreement. the our so the with of now the getting Ferring have really major driver.

Scott Proctor

Excellent. and the been for makes along, got who for additional I the has positive Ferring a everyone way, out actually INVO that story When understands there's of sense that think thanks huge understands Yeah, forward. going following color.

what see to excited do own guys it hands. yes, in So you with could your

Steven Shum

Thank you.

Operator

back to closing turn conference to the question-and-answer This remarks. management our like any session. concludes would I for over

Steven Shum

data look And forward we'll in further days additional points. will our Well, probably not your XX to out joining first questions. should thank hesitate to you today. look to or you us for to firm reach be Please with about follow-up do you, -- any to for everyone. we we we add time here back have appreciate the quarter us Again, IR directly where

they're As mature, move around more doing the and goal information to more here. provide our we centers as our how as forward existing -- from is

near-term. doing Thank forward on in look you. we So here the that call first to quarter our

Operator

you presentation. Thank today's The now conference has for attending concluded.

You may disconnect. now

NAYA Biosciences (NAYA) 1 Apr 222021 Q4 Earnings call transcript