QTNT - Earnings call transcript Q2 2022

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Operator

Greetings. And welcome to the Quotient Limited Second Quarter Business Update. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions].

conference recorded. this reminder, a is being As I to your like to conference over turn the host, would now Mr. Peter Buhler, Financial Advisor. Please go ahead, sir.

Peter Buhler

Good call. Hector. business you, morning, welcome and Thank to update conference everyone, Quotient's

Chief later Joining is call of Ali Chief audio broadcast Officer. me Financial the webcast today will being of conference is through Manuel Méndez, conference Kiboro, call today Today's at live Quotient, www.quotientbd.com. Executive O. and and available Officer be an replay the

including such guidance will operating actual Quotient this with from statements, in forward-looking materially to development making During those future differ projections be future the and forward-looking statements. results and call, as commercialization statements events, expected and may projected timelines. results Because deal

materially in in be to Commission. are Additional and statements these as provided can filings from Quotient's The forward-looking obligation guidance projections information Securities update this assumes Quotient factors to during those forward-looking could concerning statements. the and found that forward-looking no publicly the cause with of and call, US actual including today's Exchange date only statements, differ valid results

Manuel, press and We're the technical you each to With over accounting are restatement to royalty business release total of treatment immaterial. provide prior-year impact presented working the notes adjustment in the our The would to is secured on a of and The yesterday, financial the loss FY XXXX Executive our Quotient's in I associated Chief like a liabilities Form a periods is anticipated that, rights. earnings XX-K. as FY impact Officer, release through to call stated financial As to of issued below the net X% historical previously with update. we working in QX year through turn XXXX is statements. delayed considered issued related non-cash our senior estimated

Manuel Méndez

you here you time everyone. joined investors today interest in for And joining appreciate I'm your meeting for Quotient. CFO, Peter. you to in with our Ali look Switzerland and as update. team. our by Ali? business Thank I We forward good new onboard customers, us will leadership in know analysts morning, Eysins Thanks, our and Kiboro.

Ali Kiboro

stakeholders first you, It meet turn transform beyond. Quotient. work look very Thank to are the excited because many to back team My ahead I to a go leadership our more committed to the And in that, through I the have I busy Peter. with you, about at getting will the here impressions team external joined key has and week I a pillars. ahead. been forward transfusion Manuel. and Quotient Thank capable focused of initial that us we meeting to on us. was diagnostics days internal take Manuel's and of call our the potential

Manuel Méndez

family. Quotient the to welcome Ali,

a from and, press support. like seen by our would As team on leadership you entire made you've executive and we've we updating release dedication recognizing of business to start progress yesterday, Quotient's this key our company's leadership with last continued lot three Quotient our over the for delighted that I'm update – Solution, consistent with be the team. the and business members their I The I update, our team have new position. will make Today, the last executive pillars of by begin mix. our MosaiQ by the business to we of Quotient, transformation enabling progress financial Alba will quarter quarter.

executive will meet in serve able committee, be customers. our better place in new morning, who dynamic our will announced press supplementing read bring have members have knowledge we growth and this you success. As and proven as By initiatives industry records to deep we quarter, track our this earlier of four release our and

pillar Solution. MosaiQ our The is first key

molecular and pipeline, of a diagnostics transfusion disease result more evaluation The immunohematology screening blood proud to the donors. screening. which C was disease regulatory than in included multiple We will the performance submitted. has the with submission dossier begin X,XXX random includes been I'm clinical which expanded announce serological trial immunohematology, Europe,

We sites stated, most is commercially of by all We results work microarray we demonstrated can other use commercial The from instruments. has different approval with are our around or required.' received were easy customers Solution team available Additionally, can how greater Can accepted. Europe average training around better antigen followed And achieved. world launch expect MosaiQ continue be I is The across year-end is than specificities, frankly, the feedback I contains quickly of and one? rest early of received travels relevant Time an limited to in to our excellent. to XX.X% where result on the CE proud feedback we performance in my commercially very CE consistent adopter? that XX specificities get and, the were for positive who world. These 'The Marking the Mark

you on second modality, serological disease to microarrays. like update would the I Now, screening MosaiQ the

Firstly, the disease rapidly as assays or microarray, group in antibodies well hepatitis B the as will HIV-X, track, other is antigen on include C, and microarray, needed O advancing immunoassays, screening surface syphilis expanded X, screening. and core SDS serological blood development sensitivities, hepatitis

are assays meeting known. optimization anti-HCV CTS and requirements antigen requirements, Common drive our with also assays, well array, Our surface sensitivity is than as anti-syphilis R&D European multiplex are team The specificity XXX% progressing Specification planned. Technical the greater we very and continues serving of XX.X as and anti-HIV to where commonly

and so integrate, field a our in refined into ahead the our the modality, the third can market. and accelerate key launch This we launch evaluation, will schedule quarter, plasma in disease plasma MosaiQ submit commercial into Relative in to performance We're previously, molecular strategy to our clinical indicated market. customers fractionation then screening. with of infectious we site as go-to-market this plasma discussions

MosaiQ continue commercial partners. on instrument been execution. with development Shifting our and beyond and has progress make in focus our to We also internal development, assay external

tenders the next locations five the expected time, last within MosaiQ six tenders mentioned Of or years. XX teams the working tenders two Our commercial in been on and technical approximately progress. tender of at have immunohematology evaluations have qualification we the IH

XX committed MosaiQ previously to progressed year-end. still fiscal have on two and this quarter by more are take the three place track With evaluations,

rest US, have of distribution in XX XXX than outside customer closed which world our network, the identified XX distributors. advanced targets, validated next in the and we to to our to Through distribution months. stage XX access more Regarding Europe strategy of the have be an we qualified are

multiple in received geographies. have various from MOUs commitments various We with distributors

received. presence This virtual at quarter, the in our XXXX well conference was AABB

disease have evaluations on the were an Three COVID-XX of over the microarray antibody two virtual on Quotient scientific showcased cytomegalovirus solutions. a received microarray the in treponema and sponsored, attendees, our to conference, antibodies which we detection XXX MosaiQ at pallidum. and visited virtually, signifying As on corporate human the interest MosaiQ one serological booth

performance the Ginocchio, workflow Additionally, we series studies Dr. Solution are of the on by of circle circle, and established impact workflow initiated within Christine a efficiencies. planned the laboratory MosaiQ the membership to be innovator innovator led to demonstrate

Part flexibility and like market transfusion providing are been our you develop has five commercialize and MosaiQ This is new on of I'd to and segments. participants how exploring and our by clinical power information by diagnostics. Solution in opportunities conclude strategy by MosaiQ leveraged on targeting commercialization we've four value. scientific MosaiQ step We new beyond site the a for members to building critical to and update fiscal year-end.

for diagnostic team such for product clinical step Quotient This diagnostics, to options and specific specialties, represents feasibility quarter, first the solutions X food IgE segments. clinical pleased allergens, we in billion the earnings the autoimmune birch and we're towards advanced, such QX Quotient's transplant biopharma pharma, high time, This Janssen. and diagnostic serum new the our to communicated market multiplex allergens. collaboration the clinical allergy IBD MosaiQ same as market. [indiscernible] to weed in at release, announce in In and providing investigating research opportunity and the the automated, and demonstrated we throughput, press call are key detect environmental as tree between as company At

applications. antibody very to successful pleased positivity effort vaccines the are underlining efforts rapidly, IBD collaborative of MosaiQ's infection. MosaiQ broader and technology inform to due rapid power induced antibodies from have the this to development in natural the underline multiplexing continues that MosaiQ Both with very diagnostics diagnostics differentiate for allergy of applications IBD technology of a and for multiplexing power demonstrated way. progressed broader pharma/biopharma This the We vaccine our ability into

on I'd our portfolio. to you like second expansion We Quotient to includes Now, needs. new our way by the announced address the XX on update pillar, Alba by of products The expansion Quotient. Alba customer product the

growth in sales demonstrated Alba an drive in $X.X OEM the XX.X%. Our board, million second growth including performance across impressive and the of business. exceeded XX.X% We've of to above guidance double-digit the continued quarter

reduced We on the you which amendment update obligations our our The pillar of near-term flows. Quotient's XX of that Quotient's secured postponing senior improved by future our to payments negotiated of like I'd significantly cash financial indenture, Finally, on approximately by the debt, months, position. $XX notes the million. principal successful senior third timing cash amendment is

Ali payout Credit And received to like Financial Suisse to guidance. September the million further Funds. to Supply a Additionally, provide over to $X.X Quotient and August in hand Chain now, related would I

Ali Kiboro

Manuel. you, Thank

are our of payments by other $XX.X product from No XXXX, of milestone full-year $XX.X For reagents range sales to remains expecting fiscal in million expected. guidance to Alba We're forecast the revenue unchanged. year revenues our Quotient million. the related

of sales and by million third in For reagents range Alba million $X.X $X million. of of of $XX we the Quotient forecast expect million. $X.X XXXX, quarter between We capital expenditures the fiscal to

$X month. debt This in expenditures. and MosaiQ operating With operations is the trials, our use expect capital of acceleration $X.X No not per to we amount million provided loss. on cash approximately service of costs does million guidance field include

Peter this I week, and it participation including collaboration to his the would call. last to for like I back Before on thank hand his onboarding over Manuel,

meeting get And of continue over look of Manuel. I business. back on to speed up turn will to call And couple next in and person forward with virtually. now to that, or the to then We transition you many weeks me the let the

Manuel Méndez

Thank you, Ali.

XXXX. first to on of anticipated agency. submission require The expanded trials microarray US the quarter. is of an expected depending will expect notified around FDA review raised last XX year-end, for year-end, the of the a and is the now, line share beginning body. we with transfusion notified still to MosaiQ now questions approval Solution with I for upcoming and the plans three the body, Looking moments completion I any communication before year approval months ago, under immunohematology calendar quarter with Expanded expect The therefore like US with US timeline forward as BLA there expanded pipeline. start dossier by version approaching would and regulatory pillars the microarray Unless development is the we will between in our key immunohematology the immunohematology XX mentioned few in which field of major

Regarding microarrays, modality, the the screening serological our be plan second will disease following.

the finalize well will as tests microarray plasma of remaining design We in trials serological the and as of start year progressing screening expanded mentioned as microarray, disease development and field will of both field the cover trials is XXXX. before. trials the the I the The donor calendar QX

CE expect approval QX calendar We and of in FDA the to submit XXXX. Marking year

expand to customer how on the the we On will to insight Solution providing commercial base our MosaiQ by optimize MosaiQ best their execution, laboratories. leverage help them with

into guidance to on We a segments. network. distribution MosaiQ market new now Solution view with plans expand will providing drive our you by conclude I tenders continue and with will our

market. clinical in We diagnostic HLA other opportunities explore the and autoimmune will allergy, transfusion and continue infectious typing specialties beyond to disease

on And Moving on partners. bring the geographical Quotient position. our value drive our presence then, Quotient, menu second key customers final our to new and Alba pillar, to expand current commercialize business. we key Alba to OEM to expanded We'll our finally, by our direct pillar, by and third will financial

XXXX total which release net through treatment of impact we're to last technical adjustment we historical year a related lead in XX-K. is accounting in loss Form the report annual below anticipated As working restatement The debt, in be liabilities the year to and each earlier form. X% fiscal will a mentioned XX-K non-cash the currently of presented estimated our today, to of

reaffirm ago. previously In year to for a that XXXX. Quotient's year-and-a-half We and behalf on time, made you, family, significant a we conclude, on our are joined drive summary, fiscal help objectives. whole your Peter On To track he for continue us deliver key provided in strategic business Quotient And to contribution vision. the and full-year valued guidance on thank our company. has impact our company's to Peter, of support over the

Q&A I like hand to Now, Hector to open you. would over to session. the Thank

Operator

Instructions]. [Operator

Our first line question Jennings Josh comes with from of Cowen.

Joshua Jennings

and in his to first. performance the menu congratulations expanded test complete for good luck to the the just and endeavor. antigen I Mark submitting about field for to next IHX CE on ask Ali Congratulations dossier Peter just and trial final wanted

specificities little clarity antigens XX.X% or XX.X% concordance on details to specificities? level. can there? get that And bit most Were XX you average, individual then which we're than specificities. terms Any comments in on there some included versus lower wanted share greater a the in lower Just XX more comments were were or what reached any more for just expecting, the levels a this of also, antigens that

Manuel Méndez

I'll start with specificities. the

So, on the trials, extended. are we specificities as we there. of were to looked from number These data clinical on the increase able, specificities, the at the the

an are the in those now analyzer. further that were us consolidate So, then specificities automated extended the we that running which at customers we to have as the manually look in either view, allow core, or will additional plus way

So, we're that. very excited about

why analyze again, data it's good not because the has that's they in the regulatory we differences really to there put to been their we shown that because, look then of the submitted you forum submitted, have data In to data, submit data may we show that the And, expect table, in past, as it's terms this at chose able again, be would data, the table reviews. to be you the been and not performance, we typical the body.

So, we change there put out potentially didn't here and want some data can that some have to there.

what's is for we've we customers why performance Again, data. with saw one, I to what can specificities the the because didn't I is we that's don't myself say of say and that agencies. pass the performance required to consistent agency's and regulatory the that want share on So, that get submitted are But be able but we from to the job confident very that's ahead the customers. to expected that, with our performance

with give outcome. can't specificities. the you on And we the is ran samples. are I But pleased that sorry, we specifics fact So, the more very X,XXX

be the to great really able to of just show performance that's So, MosaiQ Solution.

Joshua Jennings

the over that tests HIV, other X, four? are to shifting any are to Just commented going that on menu those you B syphilis, hepatitis and and in expanded SDS HCV, be besides there

Manuel Méndez

maybe would the laboratories others, HIV surface group O most today, X, and labs, even like X, you would run the and the HCV. In donor antigen, and run run M, they you then

also part the which core, And course, the the development core. our and we are those And then of Those have main syphilis. hepatitis intent core there's – so, then, And we the are development. then, HTLV, follow. and that. of be then B will in are is is of What the in Chagas like others able to with to CMV extended launch then

revenues that's more it then to think get and because allows much us market key I generate much to quickly, quickly.

in very menu two things the That but the we're market able going do changed, to same those parallel. it us trying So, has quicker. we're get much not to to makes use is the be for market, which to us that convenient to program also for plasma

Joshua Jennings

the Just and tenders one last evaluations. follow-up on just

of evaluation think, you you've integrate year. your periods have you're five had, already hanging And buckets, sites going to for sites, care some sites and have into that MosaiQ have just MosaiQ. MosaiQ adopted to exposure understand six Can workflows? low represents of fruit hybrid whether COVID-XX sites the had see tender have of end in to that testing. you've number I just those had that that the how launches, these either those early the one like help by evaluations and potential can the their Sounds for us had

Manuel Méndez

The I have we the mentioned and experienced by sites is of those that evaluations innovation innovators going – add idea third to also a different once added circle, which way. – dimension, cross of a system. is the a circle number have we Again, geographical sites. the set

We'll sites active these we'll those as area in to course, going of to workflow, Our In through we the us, run associated and we'll we're the that those we which to process, related whether that drive But, have circle, other of participate those with instruments there's of customers process continue course. of those, laboratories, once I intent course, drive with are focus But very performance innovator the some to are not of that. tender consolidation that elements hope it's is those. due continue well. are sites. the which intent they're other there elements going different evaluations and have is is for leave tenders a the to generate with that, in to related of in we'll to world, those in and think and remain. stay evaluations the course, rest meantime, whether like meantime, complete, this papers of the In and the the the

Operator

line question Matt next Sykes Goldman from comes Our of with Sachs. the

Matthew Sykes

comments start MosaiQ. of made the I market for just segments on new to wanted on some out maybe you

You mentioned food the and release the about clinical regarding environmental allergens.

and what just how see of new on to over of wondering thoughts the Then want partnerships, probably but market kind this the looking out, some you biopharma on you Just segments, are potential evolving at I know seems your the far year. it mentioned those timeframe. that time? earlier Janssen see just

you're Just to with you looking as that partners potentially start to continue MosaiQ's to kind capabilities. of wondering replicate other develop if

Manuel Méndez

I area short an the with where we've period pleased this Regarding is very think we're super made progress allergen/allergy of the in business, time. a

can one, area capabilities we this the of this needed address make and So, opportunity. one, the to sure MosaiQ that,

do do can we sort that what know you now we can pre-feasibility, we it, of will, that So we we've can MosaiQ it, have multiplexing. do done if because is the

solution customers made also this some throughput So, to in expect their to that interested have are conversations area. that in making with be will would market laboratories. the is continue we what of key type some We've in highly this you acceleration high an

to these et for samples, maybe of believe that, So, some as have and then development forward, some will become cetera. again, partnerships us we access cool would going we interesting acceleration maybe different

is that. think on give And we've in order to topic but that to about but we'll had accelerate, excited we're good forward, those going this we going more that boost ongoing. some communicate So, us a of conversations pretty

we think a flexibility pharma/biopharma, to know It the to and per the the fact As we It that Janssen I it's alluded have then with the work area. correct. just play validates validates is I technology. the think fact one. We to that you the great this – be able did also that

then replicate market, as with as in that course, I looking well players we in to how potential other as, before. mentioned Johnson understand players other we So, Janssen within & other then and then, are Johnson of world and the as the projects

we multiplexing flexibility yeah, this of and to the the the for So, revenue represents believe, us additional this, the then, MosaiQ. us those through of additional opportunities in future, generate collaborations. And on help should capitalize multi-modality

Matthew Sykes

that expansions On currently doing, kind you you of that costs some now customer product you product have be expansionary? able that of that? right Alba, leverage you're be are any of Are there that's to would from feedback, incurred assuming kind mentioned to what response type in to development do to additional able

Manuel Méndez

point. Great

I the by a we is infrastructure very have have we Alba in You business. Quotient know thing beautiful what, that think the good

the team capability. is we extremely I think the have and efficient,

all customers. insight. because a than significant customers So, Direct, it we investments. doesn't – between additional direct number X,XXX have this and have of more we indirect, require we have And

in some developed in So, with feedback, getting that those of products. customers, speaking we've

we the capabilities, the infrastructure. have We have

us to partners. and our allows grow also that continue now in direct OEM our to So, with business

So, trying to the that that's follow. part we're strategy of

have. investment the allergy launched very looking at earnings may different don't investments past. And closely. to that highlighted ready is, one incremental? you as would regarding is have last we Well, at the of call. as but mentioned costs, you looking in remarks, it's We're cost. functional just all that I also at We've on launch the that thoughts we're we an optimizing expect, immunohematology. – no, the areas looking So, my I We're the I know in in discussed the

some reallocate for areas. those immunohematology been expenses other doing we So we've that into of development

we right? we resources areas drive So doesn't also allocate be spend incremental we're to that become growth. expense, are trying how our smart it and about just dollars to the on going how So, the

Matthew Sykes

has trials the you bit Just question, one through I COVID of field getting run past the may. a and you're if know I an to in been clearly that obstacle for last Delta Or and any delays timelines anticipating seem wondering are into intact. is current you from in quarter, the variant past that? this or I'm timeline? just disruptions potential your that with baked

Manuel Méndez

impact were any trial clinical No, Frankly, we uninterrupted. anticipate from our don't COVID. sites

think I of the good that was things that we one saw.

– the be bit any those in timelines that to COVID. maybe able believe commitments we So, optimistic, be – so made of behind far. a on too from the but we will not we to I'm of our most interact. things we anticipating it little in are sort follow impact through seems We we've And think geographies

Operator

the next Our of Couillard Brandon from question Jefferies. comes line with

Unidentified Participant

for on [ph] Matt Brandon. is This

you very customers revenues First timelines understanding, that initial confirm all early that of how review progress, – from evaluation for feedback one, pull are a customers about on bit? tenders potential to commercial under just And have start on these tender little thoughts you're under can to or then, initial you days – updated to from any were through these thinking Hypercare? the six MosaiQ part

Manuel Méndez

Hypercare. The sites the from are not evaluation

we do is And different. speaking, you we the completely get is same the expect follow communicated in which same past. it, The will feedback the get we've when frankly is everywhere, and I quickly receive Marking. that we they're So, can what the that that CE process have how

yeah, the once been extremely and from interface think else. user a historical is because nature logistics, okay, of know get positive of that's just, I CE then Marking, I feedback But, that everything the we've in So, for people past, we is you more the – real. this the think are where

using position in rest the solutions, the El through the our not Chief think just feedback amazing. in of I been but detail have and Commercial in and those Officer, Mohammad Europe, our great So, new going been Khoury, He of the to world. has great the in detail, then team all addition tenders

opportunities that CE hope So, we we once have XXX greater I tender we necessarily shared capitalize driven, that's why not approval. than that which Marking to are identified get the

again, commercial the of into type think, is very and focus the addition with the of standpoint, So from mix. I to I'm team very Mohammad and a the brought encouraged pleased

Brandon Couillard

Sticking available place MosaiQ sites dynamics some number instruments we're at increase to given as STRATEC the of component on then, of with have the customer we signaled into current view launch, they to your supply XXXX? chain the move capacity And able production and any shortages, what's is seeing out there?

Manuel Méndez

question. That's a fair

we're in with communication So, constant STRATEC.

to access have short We term. instruments in the

I the is think in short term So, an issue. don't

instruments tell issue We I have an anticipate a problem access But, quickly, at this XX can I go react being hey, I more. to where that supportive. to and it's have we love quickly. greater They're very we need don't But I so than issue. don't point I would them, believe think certainly, back an

we I CE get be to we're think And very how again Mark. we're things looking It's going monitoring quickly going their depend very all to quickly. those at closely.

opportunity can But we're very if XX. we quickly to point. given to we're that that very have than looking So the greater closely. now And ones we this additional at, monitoring comes that react get

Operator

Our with BTIG. of next the Ji Nam question from Sung line comes

Sung Ji Nam

tenders, in you tenders be of would quantify starting those aggregate? able might maybe total with to So, be what value the six the six

Manuel Méndez

donations year. per of XX XX% about the the to is, million said about in market represent tenders, is – market, so which the about is we've European $XX What

you way, million. XX% Peter? $XX in it's it's what the just in the of somewhere Can is about some – it, So, –

it's just about to So, immunoassay. million. is million $XX $XX This

million If be $X, could take worth. price an $XX average you it to $XX million of

what And so, gives is idea immunohematology. of value just or on just that an you the less more

only. For Europe

Sung Ji Nam

end we in cetera, the characteristics, should of molecular any program you're assay On terms the of year before that the performance anticipate side, progress et the the making, updates of underway?

Manuel Méndez

that. into looking We're

wheel offer very were reinvent I area to like, partners ways very current extraction are want conversations And things, don't we methods for in think I detection on a in that we can couple with area, and and external accelerate have articulated, in because find able From an amplification. we monitoring because be we're how proven that's like a in solution. We're this. this the capabilities the These think, trying probably to process. we very we closely a complete to to perspective, would market. clearly it's

think we So, it But, I the understanding I with and in many like we're more expect to how don't to progress plans made. I our said. wheel, where do with think year update think, accelerate give the I partnerships? it's external do end an the want again, we we've ways, we before at again, reinvent Because

So idea here. the that's

Sung Ji Nam

Lastly to for love chosen of may partnership. are MosaiQ the Would serology there? hear that versus to Janssen some hear Janssen other great the have about me, for out why the testing serology platform their platforms

Manuel Méndez

white in going going this. the paper we hope – Ginocchio this, We're be that Dr. to next publishing, on is to take on, on paper a

application, that. I to with from different market, platform, ability that technologies don't is can MosaiQ and develop because were a they I if steal be out infection them. to an the it, what flexibility this in to you from our the about the say induced be they want differentiate think of they But And able the thunder important application quickly then worked pleased to I super So, is able vaccine it think, to again, antibody evaluated really presence. natural want very that for

that at for the of day, was So, that. the the – fact most MosaiQ the end the versatile

were I think, excited. very we again,

to and area other become mentioned an going more a that we're is conversations bit on them more Matt, how So, in can we're pursue we with I to understand little this like And things. on relevant.

Operator

closing like And to Ladies for I to turn would the and this remarks. at Manuel Mr. gentlemen, Méndez back are questions call there further time. no over

Manuel Méndez

quarter. been, super Thanks, Hector. Well, with a we've hell the excited progress look, It's made. We're thanks, a again, of everyone.

areas with have. and heard excited the very You members. focus the I'm new team we pleased

to the have bring day for next quarter. in joining. that continue other But a you again, the hope, than making that, we're to we So, progress great and thank

Operator

This concludes conference. today's

this participation. You your for lines time. Thank disconnect you your may all at

Quotient (QTNTQ) 9 Nov 212022 Q2 Earnings call transcript