THMO - Earnings call transcript Q4 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 Year Ended December 30, 2020. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the conference over to our host, Paula Schwartz of Rx Communications. Please go ahead, ma’am.

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

March this retransmitted Additional call and contained and I Executive of as in results XXXX. Chief company’s portion periodic not is cause or XX, at those that like would time-sensitive to a with call is the this call over or The the material. information today’s turn go Please of Chris. the information filed Officer. of materially Xu, reviewing today Chris Officer will Securities in is only differ this to Commission. any the now ThermoGenesis and ahead, redistributed from actual are is statements forward-looking being Dr. Chris. on reports concerning Participating factors Exchange accurate call, to Jeff rebroadcast, later If Cauble, date might the be updating Financial date, Chief presented

Chris Xu

Thank this you, We the everyone taking for appreciate the you and this time to this call joining XXXX XXth year afternoon. is company’s anniversary. thank evening. Paula you

than has to and cutting position field. a ThermoGenesis its leadership develop the of and three edge and long more list products technologies therapy cell decades, produce automated for proven banking For cell

the have around these, such institutes adopted broadly been by System devices AXP and leading BioArchive medical of Some cell the as the selling market and stem banks best world.

far will the used in device choice era warehouse all cell therapy approved blood cell FDA therapies BioArchive, becoming of shown units, cord the new applications a storage best of products. for storage. and new to XX% long-term clinical gain for the best value Our close drug We to storage CAR-T once by be crowd cell that by to believe cloud high smart of it survival for system use was has life

for range and isolation, bio-manufacturing, offer which cell for cell and cell scale we X-WASH markets efficiency large X-MINI and automated therapies, reminder, our high banking, Just the for grade of cell cell for which and ThermoGenesis products processing laboratory as in processing XXXX, for includes the products, technologies X-LAB X-SERIES a small a cell purification. cell washing the include scale

that processing past COVID-XX in field. its the and diagnostics, brands. company a device resource the technology. which solution patent partners automated for a company. The Russell MACS global In surgical Platform the point approval cell therapy and The U.S. the in going medical from the centers for around market needs. cord solutions. global system, expertise And and quickly industry’s processing for develop was that allows commitment best Technology of and the and and applications, therapeutics blood our and and including therapy effective the as began provide June registry blood year, the a our Series the added for adjusting clinical critical doses Automated part instead of PXP-LAVARE, Sciences for And comprehensive for bio-manufacturing, XXX and products CAR-T, bank evolving company the the clinical strong the of the PXP-XXXX marrow work global reflects today’s cell buoyancy-activated and peripheral biobanking based the provide therapeutics. point system. bone PXP and formulation cell Corning preparing processing that over we normal cryopreservation which offer era. storage Our million cell to replace in U.S. washing or tomorrow’s June clinical grade launched is the application and to a COVID-XX to many changing processing our is and as system, beads protection scale product, distribution Cryopreservation at as a such the for system, outside CAR-NK magnetic blood ultimate are our to in country, for smart for separation isolation AXP Platform which business Microcap autologous of have care of and Corning a pandemic, post-COVID half and automated cells blood reader largest already including Index, later approved USPTO automated agreement, of our landscape and leadership CAR-TXpress company of and cell which company recently the clinics. global the received cost BACS is our in new II and continued responding other The In the world, the leading the to cell cell or mobilized blood we its product The care, large administrated rapid of point-of-care CAR-TXpress the cell the the BioArchive cord The technology sorting, back growth distribute in cell gene our being will utilize X-SERIES for which COVID-XX sorting, patent-protected, newly the XXX(k) cell automated would high-valued PXP in represents Reader of we cells with and the manufacturer in the the performance With activated quickly. Life we list field for third, applications, robust of significant AXP both and year. is XXXX, quickly and XXXX, traditional to of System, vaccines ThermoGenesis by exclusive dual which blood line the advancement testimony a selling for corporation utilized cord under banks cord product Also cord This of

meet we their to our cell tools therapy begin in our field year processing to them with we cell continue needs. the operation XXth customer XXXX, of As providing global serve in will cutting-edge gene by

and to completed which a reliable our PXP-LAVARE for system, During system The X reformulation and which PSP-LAVARE fast, FDA and from cell Class therapy for use the PXP-XXXX washing XXXX file for period, we is components subsequent of that blood system compliant medical and accessory a a XXX(k) to GMP the GMP with automated letter optional is newest submitted development designed and purify in around different system, under device products. condition. process the an approved fact designed the FDA comprised is allows

providing field, gene highly there of currently, CAR-TXpress and it. the need of of to and market especially approved for certain We the could committed been our will new to from CAR-T and $XXX,XXX potential platform. immunooncology the the technologies within already brand, are by each continue dose. devices, in significant to therapy, especially patients proven $XXX,XXX creating expansion therapies CAR-T proprietary have between unmet aim X but cancers, in elucidate area blood improvement cost a To therapy to the cell of and benefit FDA, cost who be to although per huge millions area thousands treatment effective close for cell our

promising we increase starting as X,XXX unmet trials need to in to provide manufacturing are According see field. very service up XX% will provider a Not the to we processing in of In to to than This the cell which cell Platform, only market. a in wave will high important and the cell their a more can product-only with and medical accelerate accessibility the gene to our this therapy by patient time. their XX manufacturing that best therefore is in these could in will contract likely over our summary, with year for value commercial only over from is of strategies highly XX%. to coming ThermoGenesis and cell our therapy as services method continue industry ThermoGenesis With XXXX. plan in ever therapies increase these It is significantly efficiency This highly address Under at the therapy therapy many CAR-TXpress these currently report the using per to that XX% clinical to direction, its manufacturing this expensive there manufacturing gene initiate significant XX-fold explore and solutions future. industry. quality The automated in to cost mind, by by there reducing new therapies life-saving as cell processing grade And the companies the approvals, cell development customer the There manufacturing cell-based XX decrease mind our a the are provider commercial for to up company to capacity companies leading new CAR-TXpress also field. gene way. cell plans FDA Platform. therapy on device unmet limited therapies manufacturing execute is manufacture, compared cell a utilize in clinical complicated the shareholder in future company to ensure therapies. services and In Deloitte, needs as outsource they we significantly could from a of and cell to convert the the scale. traditional efficient to currently increase a gene will to mission Our tools our manufacturing recent year, own by in manufacturing significant intend position costs. rely

portfolio. could innovative And the explore capacities, are increasingly the products co-develop financial Jeff? be in-license of Jeff from the opportunities key be results to on call we focused to will with that, and with service additional let our turn continuing the over acquire synergistic share side to We which to current service business and XXXX. me and

Jeff Cauble

you, Thank Chris.

previously in fewer primarily revenues device impacting were were AXP XXXX. we $X.X million business. pre-pandemic subsides. sales. cord pandemic BioArchive levels units to As XX, down the health due globally do emergency discussed, was December We and expect stored increasing year COVID-XX rebound the after fewer for ended due these disposable the cord to XX% have to to decrease Net blood to our XXXX back The revenues

by increased remaining a for testing revolving a the for year ended increase compared was associated for Our discount converted primarily million million December year to kits XX, ended December X%. of purchased $X.X portions for XX%. million of was debt agreement million $X.X million accelerated Asset was year million with Operating approximately of The expense profit the the or for II were unamortized Boyalife December due credit $XX.X in million in expense $X.X XXXX. $X.X driven in with the year, XXXX a Interest inventory $X.X XX, decrease COVID-XX of the were the XXXX, expenses of $XX.X decline as million $X.X expense XXXX Holding compared disposition non-cash to the quarter. the of XX, to to which The decrease ended as second a gross XXXX. the

shares cash approximately on at the December on concludes on outstanding includes XX, basic the capital X.X the million December comprehensive stockholders XXXX XX, million ended approximately remarks. attributable at increased reported as balance XX, $X.XX compared per improved million hand year with XXXX, This company loss at $X.XX million to to as XX, of outstanding. million with For an also share, December ended million $X.X XX, up which weighted $XX.X compared a of common prepared This XXXX. shares XXXX. to $X.X for $X.X The loss year company of December common based million Working our million common the sheet, XXXX. compares $X.X based December share diluted average finished $X.X average or and diluted $X.X weighted a net year and or basic per to comprehensive

questions. to like Operator? your open we for So would the now call

Operator

Thank Instructions] go ahead. Lee And will Wainwright. you. Please H.C. with Sean come first [Operator the question from

Sean Lee

Jeff on afternoon, effect its Chris questions. taking for the the business. is first and My pandemic ongoing Good and on my and thanks question

most when your around So with potentially return vaccine in you far business seen so do in pre-pandemic in you business have blood levels levels? any world, to swing and countries expect the rebound efforts full could cord

Chris Xu

is take you, see between uses answer thank our will we quite Yes, try gradually start pandemic our rebound. to the yes, technologies year And in So start of of start of since your the question. global imbalanced I with a some to Sean. been countries. rebound the a different and has to And pandemic, the

or of of So, we blood lots a these numbers. two anticipate in is before but side, verge materialize cord probably rebounding there quarter rebound business going can the we is to actually another on U.S. those be

Sean Lee

any currently XX significant provide any clients then signed on to are the that the can partnership, can any there on the my the next For for you see. use or system? so milestone studies was second if in CAR-TXpress Corning And finally, months? payments in expect clinical I I on you that. how question is going And wondering have Corning example, far? that’s some metrics Thanks

Chris Xu

Okay, product of take that grabbed certainly, full and of middle they their and a we main their Corning campaigns. – X-SERIES that last the year of can last And as we market I for products and will is try. year have all the leader the website for Corning, launch in start media see our

So this is different more COVID we it certainly products. X-SERIES And this of regards, launching be this middle Corning’s main in optimistic. the the so in let we this regions, efforts importantly in is we but may to very that supporting that of launch global processing in are are affect the can driver for we pandemic low, Corning providing a see

in have this are yet moment, look anything I at So, Jeff, add? the would post-COVID to we what to number like you think if see the era.

Jeff Cauble

Yes, agree. no, I

to demos, out of we start visit some I and think some team significant technology. customers I do Corning’s once think get able to really and go see will adoption the these sales is

mean adopt, and go will a do value where go see there – up that’s to like customers how expect as much start and to see hopefully it able of sites. and they real and they new is, quite think those to up still I once are customers do kind soon customers get can can existing is then for visiting how very but demos, and well like where are much begin not where can the we customer it I streets got it, hit to point customers them what to we we the the the yet. we you

the we second For no, but anticipate this we million did question, in any milestone XXXX, ones this any receive payments year. additional don’t $X anticipate We payment your don’t new year.

Chris Xu

that comments strategy that the let understand to this Sean, platform entire me so company’s few additional a CAR-TXpress. add you related on

technology which expand And for more the the to labs laboratory to to intention we is product line, this use. X-SERIES is So, have world. designed around the expose

in with So, Corning penetration their a laboratory general. medical is really in great around partnership that

and So, impact the need the more service, on to is much is as alluded the also where deliver for which cell company that service efforts, the own entire are I that clinical see and field margin earlier, our call market not bigger using clinical is to, earning we the is than series, which the device focused company only and however unmet is the in a end grade, the its higher itself tremendously not PXP manufacturer gene we so a significant and potential the therapy much, is significant. providing

has ThermoGenesis advantage I into direction. think with its own proprietary competitive really a technology in that moving

can player we to new exciting be that with significant you revolutionize area. hopefully this So year this going and/or that field. in our shareholder revive direction I we that are the to strategic this is is a XXth in more this felt in company news this update and especially direction,

Sean Lee

cell terms becoming provider elaborate in processing. then, I of see. service – in to a topic the on was That having helpful. goal goal your this Maybe a more of little

targeting the U.S. and mean? launch do And another other this are first or approximate also to for I move go have in what’s So, to first mind the geographies service? to timeline you looking then marketing you you are

Chris Xu

be for which like have locally Cell your through instance, manufactured And drug Yes. protein one, others to be cell to the that cell drugs aspirin, drugs. have drug everywhere. difference cell you drug to is ship can Great gene as drugs. are proximity cell is gene manufactured globally manufacture you compared a therapy, they close therapy in, question. tends considered compared in to in based to it’s and patient. It’s to compared not Pittsburgh chemical to The number

countries actively by So, CDMO us business covering a co-partnering, everywhere, capacity or and acquire quickly. intention service probably direction or with partnering major, regions, that strategies in are major starting to into enable global CMO we but to looking not very move to launch is our by to either

opportunity. key a as it’s quite as That answer, area competitive field. So, this move saying basically, be patent-protected and other the for costs. we this ones the but area. proprietary opportunity a at than short issue strong high this difference that is efficiency are low contract with we could again through moving a different that advantage technology long to manufacturer delivers your it’s global looking any we us already they can are to answer, into move is manufacturer The assume into strong And a

Sean Lee

That’s Thank you, Chris. all the I questions have.

Chris Xu

you, Sean. Thank

Jeff Cauble

Sean. you, Thank

Operator

sir. for This concludes like Dr. Chris remarks. conference our Xu ahead, session. back Please any question-and-answer go to I would to turn over the closing

Chris Xu

Thank to quarter you, Holdings. forward interest and on ThermoGenesis for your Thank operator. our you thank to everyone during today updating XXXX look in our participated you We who and call you. progresses first

Operator

now concluded. presentation. has call for The today’s attending you Thank

disconnect. now may You

ThermoGenesis (THMO) 18 Mar 212020 Q4 Earnings call transcript