Cerus (CERS) 23 Feb 222021 Q4 Earnings call transcript

Good day, ladies and gentlemen. Thank you for standing by. And welcome to the Cerus Corporation Fourth Quarter and Full Year 2021 Earnings Conference Call. At this time all participants are in listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. today's being that advised be conference recorded. is Please hand over to would now speaker conference to like Mr. I your the host today, Senior Relations. Investor Director Notarianni, Matt of

Thank thank like today. afternoon. you, joining for us to and good everyone I'd

part you follow. that As displaying can today's are webcast, simultaneously of slides we

Vice With Cerus' Cerus' You access and Quality; Hanover, describing for and Senior ended Jessica President Moore, our release and Executive Kevin Corporate Green, year Affairs. Cerus' ir.cerus.com. and XXXX results Financial of Affairs today from the the Vice Company's Officer; call Cerus Cerus' Relations the financial press and website XX, the President Chief fourth of recent quarter can on Investor issued are Chief Carol business a December slides at the Regulatory me President Obi Greenman, Officer; announcing highlights.

with launches, operating related and operations, You anticipated Company the development historical future you we are those announcement that future are today's statements. operating and events and for relate goals, call, and including this cash duty ongoing of materially. Factors XXXX XX-K can some December involve website XX, to forward-looking regulatory Form results growth events, Examples the product begin ended and facts, forward-looking On our of of some we our Risk obligation the and well initiatives, future risks We today's our efforts, no product can to call product to or press which from at gross review and by these product guidance identified will and Obi, They of future use performance, undertake actual statements future future we financial forward-looking a our results. access from followed file statements. margins, under and sales, remind differ this include and financial rather than ongoing will gross trials, will like statements and performance in revenue year commercial statements Kevin These the cause on that I'd on shortly. and opening profits copy to make our results, remarks including as described release events to development forward-looking update expenses, XXXX, and uncertainties in as our and strategy, growth activities. www.cerus.com. to timing clinical

Executive with introduce pleasure remarks. with update closing my conclude will on pipeline, it's Cerus' And commentary We our Obi from to Obi recent announcements, Officer. now, and Chief Greenman, an President and

everyone. in global In Thank XXXX, took goal Cerus supply. to step a and you, good afternoon, forward the major Matt, realizing our blood safeguard

for in the in deploying the built international year System on of for routine breakout INTERCEPT the our success Company. use Our and platelets solid a drove Blood U.S. foundation

seen about platelets. spoken at the INTERCEPT their blood calls, last for we've U.S., business aimed the the the guidance preferred few customers bacterial has choose and of centers as On complying in as momentum the risk the FDA with their contamination reducing of method hospital

under are risk Company’s now anniversary. required see in U.S. XXth leader to month, quarter bacterial the out platelet continued trend believe we the We fourth celebrated the this Last market the we mitigation play for and guidance. FDA

deploy global blood three a strategy the safeguarding embarked past singular Cerus bold to for and the decades, has the Over of on develop technology focus supply. a

blood remains that we availability. blood the at we what bringing are market core epidemic, time enable the at founding, of do and the Cerus. devastation to the Following of preparedness committed products every safeguard that And day at the from and of known future components to Company's the threats, HIV sustained

With medicine date, doses adoption to care. double-digit-growth. of INTERCEPT to look transfusion shift on way of opportunity the another strong way long to lead paradigm for with and technology there XX we to Cerus million a remains While over delivering in a have our the in come transfused continued of forward broad global U.S. achieving year we new standard a globally, a much

not opportunity grow over several meaningfully top-line long significant we to we're guidance next the see today, our providing While years. range

growth opportunities extending come this Cerus from with to are commercial of Cells. a and our like expect markets significant products, geographies penetrating TAMs, served our We markets, Red addressable currently in Together INTERCEPT China Fibrinogen leadership of total growth Complex organic the and ahead combination later and for of or new success the untapped enduring. Blood our our like

availability, customers leadership INTERCEPT's market our safety rapid globe. focus we we beyond. this about product supporting INTERCEPT global to the estimated for the representing with for across the market. commercial growing instance, the manufacturing billion XXXX, the million about our uptake, our to be Blood seven Within fulfill million and overall historically demand billion next these our expand U.S. we a partners have have With continue For respectively, role to of total $XXX opportunities, to supply to $XXX to continue grow in position five adoption expect opportunity we $X.X facilities, global TAMs To System multiple with ability $X.X TAM us continue to and INTERCEPT to years. placed well in platelet the eclipsing mid-single-digits, U.S. platelets on to and blood working over and the XXXX, grow, to significant capacity in in

As we more continue during building help Kevin demand. utilize customer in period this will planned shortly, by have near-term for this in which fulfill to inventory, to detail discuss we will our the

expect manufacturing we into manufacturing to future. grow As capacity continue well allow And will excess and line, to the us additional the demand become will on bring capacity downs we manageable. supply more this

IFC, Complex position and continue activities, this filled plan XXXX for Fibrinogen market or we development with to to success. INTERCEPT was several For long-term product

Medicare NTAP, BLA Technology activities our these our or a reimbursement year-end to XXXX. adopters Central Biologics to approval. Payment or of Some center states, to recently, Regional early Center more supporting submit secured included also partners sales and come with both, on approval in line New production initial Add-On and units, received launch Coast blood before to License Gulf California received Blood BLAs. IFC BLA its just Applications And Center also manufacture its Blood

closing the As with in as our we've And return to of to access and bleeding more results conventional the the conventional customers our centers will resonate as of with which during phase across highlight now BCA enabling patient to navigate to America blood on world We IFC launch experience post- several are guidance leveraging marketplace of grapple national availability of limitations gathering several patients of shortage conventional further to nationwide our variety entered of IFC a detail. these and and I a been IFC of for the challenges believe focused with we've types. our combined pipeline benefits six transfusion physicians, the associated Kevin limitations industry XXXX deploy also XXXX, limited or and product, over has for comments this benefits provide IFC the will about its commencing, turn some the immediate to addresses into as OneBlood remarks. thaw to has we wastage of will on continues commercial discuss shelf for it some by cryoprecipitate, With with the IFC Centers well four blood the real more market to reducing new they life In of as continue resuscitation. physicians cryoprecipitate hours. Blood with then, early IFC early as our educating partnerships U.S. provide data efforts cryoprecipitate. critical I availability in with sales to more

Obi, and afternoon, Thanks, good everyone.

continue we I'll later cash echo results that independence, get let INTERCEPT back breakeven. expand First, greater are to Obi's globally way specifically, more me and to excitement our in as patients the to towards financial for for paving flow detail on. access strong or

record XX% reflected of XXXX revenue Our and XX% of $XX.X sequentially. growth QX product year-over-year million

to of than year, five fourth than year-over-year versus top prior prior centers Within the roughly America, centers $XXX.X grew U.S. For XXX% to By geography, grew quarter, the million North more U.S. by for year to in also importantly, XXXX. blood during compared XX% fourth America EMEA while the more when blood adjusting while the full outside foreign of XXX% our the period, XX%, period. top versus sales flat, by was sales grew grew X when revenue North sales the quarter XXXX year currency. product

the With history, product the expected to in from strong growth North was we is and time majority experienced throughout our of for American the XXXX, be to first derived sales. revenue continue

Moving on platelet calculated metrics. our to dose

XXX% comparison. quarter treatable doses year-over-year increase a against calculated number in platelet decline tough a U.S. reflects internationally in the X% and fourth Our growth the of

our quarter, XX% mix product of consumable product nearly terms represented In in QX sales products of of revenue. INTERCEPT the

sequential in on million ongoing $X.X year million, fourth guidance, deferring. had respectively. been of year-over-year our reached for full resulted following costs a U.S. revenue government a $XX.X for the In and totaled quarter and government not reversal contract million addition million $XX.X of onetime included to catch quarter totaled comes $XX.X BARDA agreement has an XXXX, reimbursement previously contract revenue the product the in we up Comparatively, revenue revenue year. QX that full This with and Company been accrual. increases and contract fourth in allowable what and in our our $X.X the for The million government

and any the with higher we in with will than forward, revenue needs agreement patient independent quarters, the enrollment expect associated result other activities increases contract. under of slightly ramping BARDA contract Going the government several prior

product Turning our and margins. profit to now gross gross

prior quarter second profit during to the the $XX.X Company was million highest year $XX the product in our For quarter, period. compared consecutive at gross fourth million history

two XX.X% flat $XX.X XXXX. XXXX $XX.X And primarily XX.X%, higher For margins gross margins product The to increase to XXXX. the gross driven full relative was million, the compared year was quarters to million year, sales. product quarter the full which by the were profit prior Product for gross gross in were profit product in for compared was XX.X% in the roughly in XXXX.

throughout product rates, pressure costs. of sales this gradual freight margin make in previously dose for quarter environment, and customers expansion position the elevated increased margin our our fourth we product expenses believe will As years. to us to expansion gross cost the ongoing we've a higher year Despite with return gross our rising with foreign the initiatives coming full in associated kits over we year, continue progress were experienced margins unfavorable by U.S., mix to volume single impacted the and discussed exchange and from that

to on operating $X.X $XX.X fourth noncash million stock-based Moving compensation. included in million which expenses and quarter totaled

totaled On annual operating For compensation. operating the full expense $XXX continue to year million deliver leverage. in noncash $XX.X and million, expenses stock-based both, quarterly we the including XXXX basis,

concerted expense growth increase in discipline have financial our on line. efforts top in to compared Our resulted slower

expense specific core, number particularly research given and million at centers million efforts. leverage, further for the type, compared focused prior totaled continue development business quarter R&D finite believe We fourth globally to expense to the the $XX.X will blood much By year. the provide that model of our $XX.X during and

the expense XXXX. million, in million full $XX.X R&D compared For $XX.X year, totaled to XXXX

in which primarily Our is in the by INTERCEPT which XX% was SG&A by sales. as total the continued U.S. red Fourth spend LED product products, U.S. commercial and our such illuminator, versus associated blood R&D are prior $XX well as year was includes our reimbursed investment as generation quarter million expense up driven with next BARDA, higher cost currently development. efforts, period,

For up XX% SG&A prior expenses million, totaled year, year versus $XX.X the full period. the

attributable attributable bottom-line, when year QX months for compared full $XX.X same or the diluted $X.XX period. million XXXX. to periods loss or December for compared both per to three prior to XX, $X.X the in per dead share, XXXX, both, the $X.XX improved, share Net the totaled reported million and to loss ending Cerus Cerus net year On diluted for

$XX.X prior share, diluted For million net or the $X.XX million $X.XX $XX.X diluted year year Cerus period. or compared per loss in the per totaled attributable full share to to

cash, Turning was in flows. business. for an and in the balance year Company to its sheet investing while strategically the cash the exception XXXX managing

and As year in we the million balance sheet. a equivalent $XXX.X of result, strong ended with position cash a cash on the

cash these quarter was the from our $XX.X line and operations million continue Accordingly, quarter, the revolving area of of an despite and inventory. and prior of $X both working improved are drew the in instances, to used $X.X from million ongoing expand use As historical our investment during focus our for from continued ours. the grows, periods business for full the facility are additional credit, fourth closely, we In capital an and lines managed million year. we

partners continue manufacturing approvals mentioned, necessary we and with Obi capacity capabilities for As are our new obtain working strong to to on our customer to come line, scale meet demand. regulatory and

XXXX the anticipated our have our serve XXXX, in customers we levels draw obtain inventory inventory levels to continue this aspirations. production capacity, growth. to and And While we over will wait increased demand down to clearance levels grown for regulatory meet top-line growth to our likely we despite support

to will this their guidance, 'XX with which the hospital provided revenue our in XXXX we product million Similar revenue million, and product by guidance as majority seamless reaffirming in our expect for We customers year-over-year XX% for range U.S. the expect as to $XXX $XXX in January, is of Consistent possible are led be of in growth XX%. platelets XXXX range we growth a earlier INTERCEPT to today, to XXXX, our a be accounts. of the reflecting

XXXX contemplates forward from beyond. in the our ongoing to COVID, Given with and meaningful growth product hospital more in associated modest contribution guidance this driving access challenges due look we to and IFC XXXX, top-line

deploying progress beginning top-line breakeven. us achieving with To growth Cerus exactly begin will amortization, BARDA. operates. business the the cash compensation non-cash benchmark joint you costs, provide beyond, start, with modeling EBITDA, flows to to calculating mainly at and from highlight financial P&L order will reflect are how venture. this In We from discussed From we'll reimbursement As we and out the and be we stock-based impact and we revenue our core the help back of and course us depreciation over Chinese U.S. of related government expense, this the our third believe helping is into on our with there, back the from which our on we the with provide me also call, drive results which discipline cash adjusted to our insight reporting a to call demonstrating you let To that, our flow our Obi an results. breakout this over plan progress wanted pipeline we begin non-GAAP XXXX this We I loss the adjusted update at this our comments. providing QX few non-GAAP with quarter important our beginning spring. subtracting look tabular and benchmark, EBITDA. as closing with operations, forward with against and With measure, reported turn to will as our contract QX to well towards a

Thank you, Kevin.

several think and our for to make medicine. provide flow Kevin programs R&D term, continue continue position on that as just to cash we towards leadership While progress, we’re near transfusion in outlined, we breakeven the achieving also will focused growth global runway in advancing future

R&D to to to are focused continuing both developing inactivation new incorporating Our that customer cost innovate improve IP, offering pathogen programs enhancements our unlock extend markets, experience on technologies our profile. to our next and generation and

Red our patients Regarding RedeS the and studies, Phase efforts Cell our program, Blood enrolling ongoing. for X are U.S. two INTERCEPT in ReCePI

the the these our you'll submission these modular to continues plan of challenges later pace COVID-XX completed present completion studies, subsequent providing studies more and filing reviewing portion we yet CBG, on we with enrollment with In XXXX, in to We of year this of the a respect dialogue detail this for around and Authority, CE not While the but on Europe, the entities would submission quarter recall, Mark submission. months, timeline do of coming be today. PMA anticipate for an expected second have submission. with Dutch Competent of the TUV update both during

INTERCEPT in for system of We Europe in the XXXX. plan continue a to Red Blood Cell launch

a and generation on represents plasma new work LED next We to our also INTERCEPT of platelet continue which line. illuminator, product

as with next years this in be several the products momentum realizing and summary, patients XXXX product of Q&A. our Over the backbone look over positioned and device submissions that benefit in me commercial With our for it transfusion to our medicine. years to R&D expectation will opportunities the in back mission laid for to beyond. on in to quarters, and the that several be over for several regulatory financial to we turn INTERCEPT new also the look let out to from introducing forward in ahead the completing preparation that, important will franchise, workflows for growth we platelet product continue profile. this expanding is the operator care In have We serve standard INTERCEPT our to Building additional the well. improving will further XXXX iterations forward future next access as market

Instructions] Josh comes [Operator with Our from question Jennings first Cowen.

the presentation, I majority sense. and questions. OUS INTERCEPT think forecasting some evening. have in the through like congratulations XXXX, wanted you franchise. just growth through Germany. about growth to And contribution our that then Thanks platelet tomorrow thinking the the not China, today, laying it's details. the as us you I in especially out can know some the contributor the the are significant and opportunities and growth where level Hi. the review guidance to you just we for to and parameters appreciate years, have walk Rest but you look on but taking minimis on guidance growth seems in of helping I And in being But you're ROW, Good strong of the from to into the OUS sort finish the U.S. the plasma the EMEA, charts year. approvals showed you opportunities. accelerate of de out I at the just contribution go you us Can the of help the makes in your World because future? reiterating very

that still Yes. let add Josh. if the to of But, out take coming is you it, a to we see and growth This European want lot, I'll first, Obi. markets. shot at Thanks a Kevin, know. me

think it's binary been times, lot of somewhat a I there.

year given for have XXXX. just too reluctant growth in definitely So, events much But those happen. to until guidance we any we've binary our in been commit

we’re and said $X.X for prepared as overall mentioned probably market just geographies. globally remarks, growth in China. already, As INTERCEPT for in And it platelet you growth then, of demand historically north we the think of opportunity billion, seeing is now, a TAM, many platelets mentioned, years about I $X.X billion the it's in the function over soon the as last mid-single-digit it's will be not largest the several if overall

with do working going there have get so, as partner there And on ZBK need a this joint we we're clarity year, this year to diligently well. submission study hopefully venture our a to whether to

but years. submission, opportunity it, in that couple need an would looking we start of to study So, next if selling start, at post do their still to

we are ex-U.S., our lot share with the just a market so, in looking where to world. well at room currently And EMEA both as platelet of and countries overall, China, around as other penetration there's in grow,

ask pipeline are in major or potentially, there walk that it through effort? blood commercialization other a to my the you mean, OneBlood Thanks I Maybe major they'd And within for have see of going sounds in commercial but lot. just wanted Understandably, can foundation to about distribution was similar and that. like of collaborations your maybe building and that and with IFC that, the collaboration to get Blood this still that inflection, with then the selling America. better? understand you But guys Could have really like it's understand involved business facilitate blood bit base kits announced model the ARC in to help other was responsibilities. here. could you Centers XXXX a -- you’re follow-up, interested I little us not help just penetration centers to launch. just the But think that and then, you centers talked setup a collaborations us current

California California, than production in BLAs, our Clearly, got also we question. we happily Center Blood in the surprised we Coast That’s earlier that there, were much a great Gulf expected. and partner Central Texas, and both

a starting of year. So, that enabled this launch in has nationwide QX

direct our still great really hospitals of to to and the given physician a transfusion moreover major to from where what our the demand So, is news, sell center existing require business not centers biologics sell we case. And this the our that's and to of that and customers. force product. given a those that's would we're hospital lot for came the a hospital customers. but Historically, But, for happened you access ability then with to that contracting to wanted sales sort this hospitals Cerus the lot blood patients customers, as said, us only our in therefore, finished for our selling leverage partnership we of customers, to like product looked And “Hey, really we'd historical in our process. directly be blood seeing XXXX to model

what way had where You improves And guys now secured an NTAP model’s product realize somewhat to the that so an our premium profitability.” a we centers that business the can pricing saw on INTERCEPT with seen have we've impact platelets, similar NTAP, definitely overall so, opportunity. this blood

discussions in with them XX to able And given blood have OneBlood differentiated XX higher large across there; that's this so, represents centers with said, blood roughly presence also product be that, we they really to the and help then, value. BCA, and center solve Florida, their started or which this we And product for with our membership strong like -- U.S.

so, them the of year. with partnered And we end last towards

I our customers QX, really -- fully. and existing and able starting what be all adds to up launch to our blood able existing So, to there's be a leverage that work with center more we'll sort we'll that nationwide have is force in of sales really it think,

they're have impact customer So, most in Clearly, an model the on then, American And it important lastly, positive a our our for globally. Red this Cross. overall sense. should mentioned SG&A you

this We realize have early products with in and on of the partnership. paid for products. to relationship getting strong of importance value a field creating They and were them those sort added

the of as all time both in current there on so, U.S. and components. they the blood almost blood are have is meeting for midst hard in the -- globally centers, interest And a I end demand that think are there, strong

relative supply disproportionate up sure sustain the main their chain demand that's making decade to to the do components standing so, now the right customers really and that. blood business, And they their their can is of hospital and sort last priority for that given supply

Red be them and the an ongoing with with it's discussion So, well. openly then we hope working as Cross to

question Jacob with comes next Our Johnson Stephens. with

you've up partners this sell on got BLAs couple product. to question IFC, following you Josh's around a to got coming blood you've in Maybe of hand, wanting with centers

to just as about about this you have been talking And impacted the out talking talking hospital curious do product You're that your point it what for opinion what what adoption the leaders what talk hospital assume, inflection proposition? ultimate happen? kind you for think modest by highlighting I sales you key and of getting just you about contribution, of value Is just Can customers? is, XXXX. dealing kind makes But it's somewhat I'm probably Is and been COVID. IFC, drives force with this think?

Yes. Thanks the of question, next That’s product a over years. milestones sort great what couple real the that for are Jacob.

platelets about blood this we've we're think true And you does what in experience really I from have patients’ demand. and seen, there's it data First, traumatic -- is case, that the for from hemorrhage. loss talking this once saving is drive world or set, lives real internal

really into Other of does on rates. impact, data it a sort have in wastage I that'll hospitals be see So, data of its going wastage points of we once physicians around XXXX, utility. of available think and that the and and would sort this XXXX product have in how sort big some the rates impact

CRYOSTAT-X this cryoprecipitate was loss endpoint. we're last of the that think looked to early having deal the But already use at year that documented about that. study systematic completed in with talked that historically with UK and mortality a I way. in blood traumatic seeing a We've

is I think news the in on that read that it'll the study latest September out timeframe.

earlier on have at big blood physicians of way impact the that use look of think traumatic treatment of the loss. IFC I So, could the a sort in

so, been out And to historically sent the coolers or something that that OR get is part delayed. it is of the has immediately it -- sent

of for that points likely will the data have thing others in meet demand we OneBlood the that think have And the is current able we I overall and with system BCA now really number capacity product. a So, about demand the different that's the partnerships to be enough to nice coming. drive

a a as just kind a you is prepare SG&A up maybe this XXXX, This of for for bit in little follow-up, of IFC Kevin, launch. took step

for As into kind just of we SG&A the XXXX, outlook around commentary any investment, in there areas just trends, head any XXXX?

Yes.

I much in XXXX, the centered as the a to share we up outperformed, were sales that. potential slower really them prepared So, And than revenue. around think creep remarks variable slightly, our but has it team, pace want compensation. certainly our at to ramp we

and events. so, same And the in-person, in will beyond expect we trade travel, But facing that, we're hopefully, customer more more return do in XXXX. it to situation shows marketing

And so, that's slightly where you're levels. I see XXXX up think the costs from going pick to some of

next with Our question comes Fitzgerald. Folkes Brandon from Cantor

XQ on run maybe, And very a have -- a following strong When Congratulations basis from Kevin, an quarter. just rate? or on prior that good from position. very just then secondly, about on you the another that Maybe was question. you're you talk SG&A in cash annual up, creeping

capital model maybe You've of we leverage How growth you coming additional versus TAM? talked in going to that also You profitability, forward? Thank how investments? expansion but the does addressing pathway in just and cash that's got burn business versus down, talked allocation obviously now, light. about the much these any Maybe right? maybe and think the address that especially JV you. terms in the But, potential talked that TAMs, TAM a do capital about the so in of about color China, about

want something stab, to a please I free. feel if you contribute, there's and get Obi, don't Why Yes.

a lot So, there's there.

me first Let SG&A with quarterly question the start versus about year-to-date.

I think it's really both.

our to As saw sales guidance, compensation elevate accruals. we beyond fine increase we tuned our continue and as continuing overall the we to forecast

saw you matter something certainly that's So, that for and year. the in QX full for

to forward in leverageable. going leverage TAMs, the is extremely pertains really it the with business and increase As

venture we and of U.S., When you and think It's revenue organically, increasing existing in the on it's China, a lot the if a our really our operation. joint don't Cerus effort, need with really to footprint to independent, add not our So, joint the it's the about standalone in there. EMEA incumbent opportunity talk commercial costs TAMs SG&A sales joint realize about, we venture. venture it's an

record And that that a accretive after will and away consolidate a reality. that years so, we largely we revenue, expenses, COGS certainly from be will of and soon few our but share expect becoming again, But we are commercialization.

So, We've leveragable fairly got business highly in solid sheet. a short, model. it's balance a

the invest invest to likely and but future, and continue to quality We the on concerns. also working future continue in both capacity capital, expansion we'll in

evolving R&D is Yes. Brandon The would portfolio. last add just sort of the thing I

needs mentioned the a So, that's we've to there. or that's lot you a today, growth not well. to delight platform LED product got if for on address that will, our a use, to progress the our easier lot profile illuminator, in as future ultimately change really for exciting iterations, but only a cost We them, things really having leads and customer business and of something

market be blood to address the cell so, And accelerate. that's as a to of of that to doesn't Kevin's I business. launch we think that that, ultimate that grow point, system. the the is leverageable to clearly is footprint But the globally, highly like would this something to materially, need adoption takeaway And main with able need we see even red we INTERCEPT the

Massaro [Operator Mark with Instructions] BTIG. from Our comes next question

open. line Your is

question. Hey on the for is taking for Thanks guys. This Mark. Vivian

discuss could the also shortage if And that the make you accounts into the we've that for you. and of drivers could how U.S. So, growth puts Thank strong been some went on COVID and touch in that the you sustainable. some blood guide, of that the witnessing? takes XXXX

Yes. I'll start.

preferred for States. growth growth, the is the platelets are we we that So, mentioned prepared United in see And call -- the INTERCEPT as in a lot really still by remarks FDA guidance. option driven the the of the

I the United the adoption in there's market reasonable think the percent has by has grow. significant, lot customers still there major but share a been room that -- States to been of

our so, a really just see supply-demand is about And focus given that of in capacity. the managing lot our current XXXX we balance

you wanted growth. EMEA, to that? We capacity a is directed of to of also anything anticipates be production our our add coming but growth most will of we that lot -- mentioned the towards do else sort that of out lot that U.S. Kevin, guidance see of

think I think No. so. I don't so. don't No.

covered I it you sufficiently. think

awesome. Okay,

follow-up. quick a Just

of move XXXX. if other If provide could well? also XXX% speak any whether Red there by the Thanks. INTERCEPT not blood to centers or color progress any you swinging goal you could getting a as Cross to the is on And

question. the for Thanks Yes.

as a the like we historically get great made do in Cross and in they'd that so towards continue has to So, Red to to goal that communicated mentioned, XXXX XXXX. They've XXX%. strides

just I safe of think -- that providing simplicity comes sort of single some component overall the from blood of single can. they the a that most

multiple inventories, meaning have don't safest want So, they want care that the component. and to to platelet they

So, thinking. line that's their of of -- line the

is I a customers get secondly then of a So hospital capacity be to demand lot think, their What want a a get do And do. all their to will they there. meet to from to our function of ability standpoint. we ability XXX% understand, the

There are Obi the to back to no I’d turn further for over closing remarks. like call questions. Greenman any

forward Healthcare look We Cowen’s month, throughout interest for Virtual very our again much. at your for Thank next Cerus. today and Thanks year. in joining this and with progress to sharing you speaking Conference Annual XXnd us you

the concludes program. This

the of disconnect. You day. your rest Enjoy may now