THMO - Earnings call transcript Q1 2020 | ThermoGenesis Holdings, Inc.

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Operator

Good day, and welcome to the ThermoGenesis Holdings' Conference Call and Webcast to Review Financial and Operating Results for the First Quarter Ended March 31, 2020. [Operator Instructions] As a reminder, today’s conference is being recorded.

At this time I’d like to turn the conference call over to our host, Paula Schwartz of Rx Communications. Ma'am, please go ahead.

Paula Schwartz

Thank you, operator. forward-looking the contains federal of call laws. securities conference statements meaning within the This results materially may in actual company's The differ statements. the from forward-looking projected those

Additional and contained in results company's periodic cause those that with the the information the filed materially Securities in is differ Commission. from actual statements forward-looking reports concerning factors Exchange to might

is May be information being ThermoGenesis of the date of presented only accurate as portion redistributed or today The retransmitted updating will any this rebroadcast, is material. XX, call, at is this date, If time call reviewing sensitive and later this XXXX. of a or not

Participating on and Officer; Financial today's Executive Officer. are call Xu, Chief Cauble, Chief Chris Jeff Dr.

turn call Please like to to now I'd the Chris. over Chris. go ahead,

Chris Xu

thank this to the the and joining taking you you afternoon. appreciate to for call listening time in. everyone Thank you, We Paula,

we million, our XXXX. quarter to to of $X.X to our pleased and I'm particular, to compared XXXX. first In continue that the performance of same the financial an increase note quarter X% rose throughout revenue improve operational net

to increased While compared XX% improvement year. same period million, last a profit to $X.X gross the

demonstrate Cash compared greater year first year. the up has was quarter, of end a of XX% revenue, gross same increased company. on An on the compared of would which financial reached cash $X.X million the to XXX% hand and hand last up beginning the to at period the and profit stability

in systems competence business therapy resides for gene core its and devices edge cell field. company's the still reminder, a the automated cutting As medical and

helps It's as products. field against to our core make cellular our a us also processing future make technology continue possible. in fight this the platform COVID-XX to with We impacts whole that automated

for technology buoyancy intended micro-bubbles. unmet address based the technology BACS The technology a the platform, key platform is CAR-TXpress needs component lipid consists sorting therapeutics using is large-scale BACS. activated BACS and such the manufacturing is the patent processing The of an cellular innovative CAR-T cellular which to one, CAR-TXpress cell-based a high therapies. technology protected cell sorting technology processing critical or efficiency of as cell Our platform of on

for biobanking, the best in blood the allows processing of Two, for and recognized and it clinical is of cryostorage automated AXP/BioArchive which field, clinical cord our platform the samples. brand one

PXP allows our point-of-care for from locations platform automated cells at of marrow the or allows stem blood for autologous isolation processing and cell Three, different peripheral such which applications, of fractions centers It simultaneously. as derived also point-of-care clinics. the surgical our bone

cells. For example, the immune simultaneous and isolation plasma of convalescent

as line has the robust cell sustain focus with beyond which for will growth therapy, therapy a in positioned The leader product cell gene pandemic. and our COVID-XX strong ThermoGenesis the banking this market cell

has in As million deaths and over well pandemic cases you affected regions, more know States COVID-XX reported all now and X.X countries United the resulting the XXX XX,XXX than more alone. than word

disease posed The healthcare globally. the high, disruption. remains on U.S. impact has and threat COVID-XX The in tremendous the by both health U.S. societal extremely spread to leading system public a immense rapidly causing and

to first the the field technology working the In ImmuneCyte, by joint partner, of in quarter this together to global On our and venture mobilizing Administration fast IgG/IgM or during systemic to fight Drug medical March began global strategy COVID-XX respond to our with the imposed antibody and a COVID-XX pandemic, with expertise order notification and resources challenges XXXX we FDA kit, Food to against register to develop and virus. detection intention we approach U.S. market XX, submitted the

test XXXX refers test rapid policy Policy D by for Part to where for antibody D. the the in on to of disease-XXXX hereby the the the Section diagnostic X during The Coronavirus FDA test issued XX, public below. health accordance In emergency March as short

test FDA validated has confirming XX, Policy received April for company under D rapid guideline. distribution letter from antibody been the the appropriately COVID-XX acknowledge On that the ThermoGenesis

started incoming As to the ship our rapid has antibody pre-orders fill out test already orders. to of company and May,

antibody also Authorization of agency's and awaiting Additionally, the completed rapid views have Emergency under FDA response. additional submission we still test pathway of requiring we information are to Use for COVID-XX the the the the

rapid XXX could to anti-COVID-XX for expected If single blood in antibody minutes IgM/IgG a U.S. in we tested, to can that droplet antibody the The then the than demands using be test alone of be has and at designed is needed $XX. nation million an and XX tests increase. results estimate entire to deliver over cost continue uncover under global less

can per The test patients The individuals in the for and COVID-XX infection. of in for also to up capacity amount XXX,XXX antibody rapid encountered times COVID-XX to manufacturing produce day response virus have manufacturing test developed and that can patients have three scale currently used detach antibody COVID-XX in tests and who needed. We if be for pre-screening to an response. past antibody identification the

person's of to fight the part against the virus. antibody is immunity The protective response

test the from antibody DNA-based with. tests a market stands rapid XX can home test are pregnancy available this the instruments as apart many be under sophisticated in The resembles test test minutes. people on require that not does of results Our familiar it and other laboratory format

our protective immunity reopen The look information essential or we have to identify economy. antibodies quickly individuals is ability developed who society our as to or

multi-tier the medical venture antibody part joint intervention our of ImmuneCyte disease. COVID-XX of with both address and therapeutic to in approach preventive is needs means develop partner prophylactic our critical along second a The to strategy unmet

decade. Taking the processing have advantage perpetuated antibody we and rapid platform cellular we test proprietary the have developed of along this with over past

from to annuity with help approach is able this tools antibody approach may multi-tiered us are This manufacturers develop test diagnostic synergistic various with and also other our We COVID-XX. differentiate engineered immunological disease. fighting therapeutic that know-how for bridge to

MERS field. plasma giving exploratory is and injection have past. case therapy that Ebola, we hospital lowering involves virus with is Convalescent Convalescent patients COVID-XX. HXNX and The limited that and the with survival the and known several the rates antibody people demonstrated convalescent an plasma has been against areas other used from in are improving SARS such the have for therapy who recovered therapeutic from influenza in in past viruses plasma stays working approach as patients on SARS, of plasma

among Our plan identify using or therapies, screen titers automated anti-COVID-XX people company's borrowed plasma convalescent simultaneously alone with the antibody further isolate The processing can variabilities mitigate proprietary of and by to plasma platform polyclonal immune cell is our convalescent plasma. which be donor high antibodies used cells. to to individual produce convalescent in

has intellectual candidate venture ImmuneCyte our XX% by properties four including monoclonal the polyclonal joint therapeutics further convalescent our antibody-drug company worldwide reminder, a complement ImmuneCyte that fully This and for owned monoclonal affinity virus. COVID-XX monoclonal joint candidates approach under human is the COVID-XX recently antibody-drug Just antibody antibody also development venture of the undertaking. development acquired for our will against plasma high

established monoclonal technology summary, antibody-drug plasma pandemic. to many us develop In using venture from and convalescent and antibody human us - other therapeutic our COVID-XX our test, in COVID-XX our against put manufacturers during, differentiate antibody monoclonal comprehensive strategy our the cell at technologies rapid test polyclonal acquired candidate joint the forefront global fully fight and the approach combining our processing proprietary antibody recent ImmuneCyte's

quarter. to share that turn over to first Jeff? key the from me the let With call Jeff results financial the

Jeff Cauble

Chris. Thank you,

slight increase a the offset three X%. was XXXX with in XX, year. million million by AXP ended ended three XXXX, in first decrease increased March approximately sold an The the increase cases BioArchive million which $XXX,XXX disposable of the The driven was and revenues of March and last XXXX same period to Net for XX, compared disposables increase X.X months were sales, more in approximately CAR-TXpress by as decrease $X.X quarter months XXX or million to sales manual for the device $X.X sales. of by compared $X

for was $XXX,XXX AXP and March or the or revenue disposables. for to an quarter of XXXX, in exclusivity the first compared XX% March XX% revenues increase by of which $X.X or percentage profit was XX%. ended net million added Gross gross $X.X The the three to ended XXXX, months increase months margin million three Corning XX, two XX, increased net XXXX from of approximately gross the of fee points profit from recognized the driven revenues

three for XXXX. first the quarter of to or March for to was compared increase expenses $XXX,XXX driven months March as in ended million XXXX million an $X.X marketing by three of XXXX, increase XX, The ended were compared benefits and XX%. months $X.X in the and Sales period higher XXXX XX, same expenses salaried the

same under Research expenses and for compared period quarter an months resulting development the was driven XXXX increase by in $X.X three for higher the increase The X%. the of benefit XX, first XX,XXX million to million ended expenses $X.X XX, as XXXX, were three months employee in or March March just XXXX. compared ended to in of the just XXXX, over

XX, XXXX expenses compared related expenses for three expenses months The related company's driven approximately an General XXXX ended by $X.X to increase three the ended expenses $XXX,XXX. and March XX-K. million to administrative the and other employee of for XX, March increased Mavericks increase benefit was $X.X XXXX, million to of and the the legal filing the were lawsuit, months

the March XX, the credit accelerated driven converted associated remaining agreement portions the first ended of by $X.X discount million of non-cash million an was with The the million. to months increase as million, Interest of three months unamortized were XXXX revolving for XXXX. debt Boyalife compared expense quarter ended increase amortization XXXX, March three for an in XX, $X.X the of $X.X the $X.X were which

weighted shares common XXXX, comprehensive XX, or ended per on For comprehensive loss X,XXX,XXX basic X,XXX,XXX reported common and common based a the to for This average the $X.X shares average stockholders XXXX. net March outstanding. quarter March loss a per for ended of million and basic quarter diluted on share the outstanding company to $X.XX based weighted million XX, share compares diluted $X.X $X.XX of

was results operating the results and the EBITDA comparison to to best GAAP, a U.S. a loss the as of operational a XX, Adjusted adjusted EBITDA reported of historical loss to million measure, million our March company trends. uses the XX, The ended metrics approximate evaluate uses XXXX, of facilitate $XXX,XXX. March cash ended to company XXXX $X.X quarter addition the to for quarter non-GAAP and decrease for In also $X.X the under performance compared flow.

$X.X $X.X primary an expenses. as March million The March million up December at had compared XX, At in administrative XXXX Working EBITDA to was capital $X.X general the totaling XX%. with of equivalents XX, XX, the XXXX increase cash to increase cash improved at XX, at $X.X and and compared also XXXX, adjusted million of December driver $XXX,XXX million company lower XXXX.

our prepared remarks. concludes This

now, call questions. to Operator? we'd like your open So to the

Operator

our Please your Sean Lee Wainwright. And Instructions] first question go comes from H.C. question. ahead with [Operator today from

Sean Lee

is the question My company's on first existing businesses.

was of guys [corpus with big growth And in Corning. a a company's Hyperion] time. So driver become you find the XXXX to that over of expected

so out significantly impacted or has as turned is that has well how wondering far that progressing was COVID-XX pandemic I as So it by the been planned?

Chris Xu

Yes okay. this bringing Thanks, Sean question. for

to global Corning people being as knowing just we the this Corning products. of signed pandemic, expect in sudden hard. are I we impact that in State distribution a distribute but to York launch And is is X-Series COVID-XX New pretty guess, this our product So the certainly year, everybody XXXX, headquartered by like actually with hit

although the see that with So in and activity Certainly, all line open marketing front. can needs. a ongoing still we we, are keeping the in all distancing facilitate to preparation social and the slowdown home the officing

Sean Lee

Thanks.

Chris Xu

start a entire optimistic we collaboration. But about the region, entire are with to globally this - business different through I reopen cautiously think

Sean Lee

the for color. Thanks additional

marketing inbound you it come whether the so in - you Would in market FDA product? whether Now - the approved yourself for of interest you've distributors? has moving for April, to be to after any a company's would I wondering lot be strategy seeing it and you the is or orders was onto exactly looking regional had commercial diagnostic for the just or what try COVID-XX

Chris Xu

going our mainly Yes, regards distribute channels. through distribution to this diagnostic our okay. kit, to With COVID-XX strategy is

at So size do anticipate that. orders. not we a from on different moment, in-house of to direct have and this We potential various do received team build interests various

of we start - start orders. ship released early really feel May earning this pre-orders some and just So incoming and these to we that in we call, in as to

various think everybody, potential that we initially - by to this be the availability I we and it availability are our foresee of somewhat that labor - see, our risks also although size, so reminder impacted and including cannot of can risks business could logistics also significant, are a but Just market and on. could shipping we global that including some the workforces and foresee is

potentially including close those are good are we see impacts, well. impact globally when shipping the getting market our mitigate ready shipping But within those to out. some of is this to start impacts all U.S. world, we delivery and So the we also logistics could got throughout thing we through as

Sean Lee

Chris question to on the wondering, I that look months next what investors milestones to six was company? what you is the to Yes, events, could helpful. And upcoming the my over major XX final consider was be that would forward from

Chris Xu

this we still high. society satisfy Foremost, be diagnostic people think of the lot key we economy and want reopen as our our our kit a that and see to because to reopen and will demand a

various number So goal. for we next look we the that's But fight one approach the systemic COVID-XX. months, want diagnostic we different this to are six kit that to as our beyond looking to and also against said,

the antibody side. address And the that and of therapeutic unmet so will plasma convalescent be including polyclonal need some that in significant

are looking as we at a So year-based strategy. this

way. are We products launching, the along different

Operator

question. Putman], from go [indiscernible]. comes ahead your with question next our And Please [Charles

Unidentified Analyst

you're give can filling speak pre-orders, the timeline or that expect the FDA number of you idea that you an the maybe to begun and Can you've to fill also what to us hear pre-orders. on from and you You volume what mentioned is?

Chris Xu

Sure.

We - we ship out start have May. and to

are were closed still complicated or more logistics semi-closed. shipping I We global because U.S. the said, of most state as

States We are not open in fully here. still the

working So here in States. force availability of there the our is

So were on logistics. we and manufacturer, quite significantly manufacturer which depend still not shipping on oversea also dependent, the only

because we the are products to to orders moment. start get our in we get So filled, just this need

And the for that from the the with we - filed available D, product early, than described side we on the to under testing also Authorization. is Emergency should path So we in need. more Policy which sell shipped bigger kit. is the number the have script just additional I but of because beginning I FDA an May, think the be But that which realistic XX,XXX Use

don't waiting a give for list a are knowing fronts. with already timeline And that different for have we us that, pretty number FDA long further FDA we is to to pre-assigned deal but We have a because received feedbacks. various having

So weeks, routinely will a but don't timeline. at be have that two moment, this we

Operator

additional And any ladies Dr. I'd and back for showing to to over closing questions. no turn I'm remarks. gentlemen, like call conference the Xu

Chris Xu

And participated We months. Holdings. you operator. call in the look our coming forward thank you, progresses who your to in today's ThermoGenesis on Thank updating and on you interest to for everyone

Operator

We do Ladies conference thank with and gentlemen that, you today's for joining. we'll conclude call.

lines. your disconnect now may You

ThermoGenesis (THMO) 14 May 202020 Q1 Earnings call transcript