Cerus (CERS) 2 May 242024 Q1 Earnings call transcript

Good day, ladies and gentlemen. Thank you for standing by, and welcome to the Cerus Corporation First Quarter 2024 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to Jessica Hanover, Cerus Vice President of Corporate Affairs. Dr. Hanover, you may begin.

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

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

can and Officer; the Moore, President from ir.serus.com. You Executive and Officer; Cerus' slides Carol Relations Cerus' Chief Quality. Cerus' the at Chief of Chief Jayaraman, website Officer; Operating President the and Vice With Green, are Regulatory Cerus' call Investor on Senior Vivek Affairs Obi Kevin Greenman, me access Financial

today announcing quarter release financial results XXXX, Cerus describing first press issued recent our for the ended and a XX, March business the company's highlights.

You announcement on access the copy www.cerus.com. at can of a company this website

rather non-GAAP remind product Examples our will that call including future future include this forward-looking than like of the results, our expense other and expectations XXXX adjusted trajectory, and performance revenue our statements to to flows data and and related product our planned submissions are launches, timing you prospects are guidance, expected forward-looking historical historical make to from the of not those and growth facts levels, our statements. on expansion financial statements we product growth availability regulatory of that for related related and performance operating I'd and EBITDA trials, future clinical statements and operating some events facts. cash and expected

shortly. ended uncertainties no XXXX, and slide are for events, we Risk actual our duty update March quarter cause involve in under obligation performance to could release statements undertake file described forward-looking and to which Form identified They our Factors or that in differ and statements. XX, XX-Q will results forward-looking materially. risks today's the We These presentation our in and press

in will be a presented financial we be replacement call, with should to EBITDA. adjusted including measures, GAAP. These today's for supplement and measures considered non-GAAP accordance a measures non-GAAP not non-GAAP discussing On also

today's refer press of presentation slide release financial comparable available financial measures, to website. and on to most measures GAAP For a the our the non-GAAP reconciliation please

Vivek today to financial to with rest begin by Kevin business Obi. Obi, results recent remarks followed of for XXXX our closing discuss We'll and expectations the highlights, opening then remarks lastly, and from from review

and Obi And now Greenman, President my to Executive Officer. pleasure introduce Cerus' Chief it's

and I'd the by the of milestones spending everyone. like our Jessica, path well ahead good reviewing you, looking few on positive Thank minutes afternoon, open performance company. call for to a recent the as as key

first first ReCePI quarter trials results positive the The we or of XXXX the the red reported history line of company blood clinical X in top trial, our U.S. one RBCs. III cells Phase the an as was INTERCEPT BARDA-funded important of from for

primary thrilled are journal this its for publications endpoint there to the are safety we to that endpoint, later a ReCePI for INTERCEPT the media the conventional by publications presentations ReCePI accepted. and share of RBCs in once have was targeted reported of recognize complex year details forward for pleased interest more while that way the the and nonetheless noninferiority powered endpoints in March. look compared we efficacy specifically We in cardiovascular primary results, being great very also surgery We that ReCePI of able this been to And patients. met of we by RBCs efficacy outcomes is

overall ReCePI in supportive of launch planned we for for INTERCEPT As continue the we the III BARDA-funded RBCs, to meaningful second RBC trial readout enroll as in Phase program study, the our RedeS U.S. Europe. view our

set this findings to medicine looking review the trial investigators to study how the next with gain meeting into insights the transfusion opportunities month important We are with for their community. and position the from to ReCePI the data forward to

sharing more the our RBC look XXXX. INTERCEPT in data program, forward confidence you stage, and this we ReCePI at us to summary, in In give with

are Fibrinogen confident $XXX we guidance inclusive we and reiterating million front, our for increasingly into $XXX the to of Vivek our INTERCEPT guidance revenue our geographies. million, commercial of of portfolio and across traction Complex in see $XX continued expectations our overall the color provide XXXX $X product are On to will million. million

EBITDA Importantly, the insight Kevin we also full our metric remain more for committed breakeven improvement XXXX. into provide in this adjusted will for year pathway time. continued over

Vivek rest year. XXXX call I turn like commercial the as quarter outlook of the well to results the and our would as now first of to over the to for progress our discuss for

Obi, you, everyone. to afternoon good and Thank

and performance to stabilizing, business. from their is hospital a return U.S. and starting in We of commercial continued center Across U.S., collaboration am are XXXX. growth and franchise customers our In we the collections execution recover team. pleased Anecdotally, both quarter, growth I are demand with our return hearing the global the lines our in strong QX that to and we and remains from slowly regions, delivered base core product witnessed that geographic in the platelet to blood strong. we platelet customers

Furthermore, positive platelet as earlier, announced from increase set life. our to regarding we ability received the news FDA shelf we processing

not life amount major of from our pressure current blood a inventory centers, supply chain. relieves our at rebuilding the meaningful While a of does assume forecast extended shelf

the As we and service to to increase a further benefit on basis, across going-forward both we life would levels. work shelf see expect inventory

efforts our internationally. to Turning

are Canadian at the platelets is in progress the partnership INTERCEPT Canada Our reduction way going our was pathogen quarter, Canada. of or now is safety in well. full Services meeting of across for nearing care continued delivered their network a performance team implementation and CBS. commercial Blood standard validation in with in also platelet strong Hema-Quebec the efforts CBS The

As CBS roughly a and XX-XX split market the between is Hema-Quebec. Canadian reminder,

is and blood Congress Middle the see I focus a significant Arabia Saudi Of to attend such INTERCEPT for in Dubai. investments was franchise opportunity clinical I with growth had across a marker of health in area INTERCEPT reduction pleased advantage to that ideal prospects Earlier quarter, care a cultivation increase expansion. note, distinction the the years to region strong targeted encouraged cleared. of FDA pathogen system in I'm countries in and East. clear Annual to come. the a is ongoing really interest on region We regulatory is the for the the growth and expansion this believe with This we MedLab the by resonated customers be believe is approved as only our MDR Gulf in will area for in region. market ensure the an safety,

we IFC, full ability strong INTERCEPT U.S. exceed in Fibrinogen in year of Complex, for our quarter another Our and to confident IFC. period, meet or our the or guidance growth feel revenue delivered

Scientific was notable. experience the we enthusiasm product Board Advisory and quarter, for the the IFC for hosted meeting in and customer a During with uptick

examples beginning is IFC, product are adoption. clear peer-to-peer on of new tool see We for marketing which to an effective

an During the our increase at lead physician quarter, clinical attendance at and in conferences push we continued saw generation symposium. and our strong

sales convert serving complement their and fully starting As them to noted blood prior our as we are channel. experienced into to direct strong a customers, who hospital actively with noted in team center step-up trained now IFC ordering hospital orders a calls, enable directly the is their to see to targets and large blood in are customers. partnering This offer centers several are we to via

progress with global of commercial calls. utility benefit we as future I forward importantly, fibrinogen. for IFC providing associated as overall our earlier look more continue receive and access with well the to Most the progress to for on to biopsy support clinical during strong our patient updates

now review over results. turn I financial our to will call the Kevin to

highlighting today. the Thanks, progress balance quarter the for financial line, you line we first of for Good call, discussing year. us the all be positive on bottom our and the the thank I'll Vivek. results I'll XXXX, of some and afternoon, joining on On be top made also for the providing commentary sheet. today's outlook our rest financial the

business in North exceeded American by product of to XXXX QX revenues underlying of year were U.S., January. first product our and XXXX. contributor major revenue revenue posted back the represents $XX.X XX%. quarter the we a This for growth In product in quarter of platelet of ahead than start, of our growth strong XX%, million prior sales during guidance To more provided the year-over-year demonstrative first quarter. the growth levels the

As platelet across are XXX% strong to anticipated, Canada extremely were nearly and also entire approaching adoption Services in operations. we Canadian sales production their Blood now

revenues points first over fourth year-over-year rates X% decline, provided when Certain around XXXX to is the basis, expected which basis timing In reverse Year-over-year, of QX comparing and provided of EMEA quarter succeeding FX quarters. of delays quarter were a for business down the [ of order consolidated and to benefit ]. drove X.X%. the X% XX compared a itself XXXX. around product benefit EMEA, a the FX primarily fulfillment On

revenue. breakout last As call, quarterly we a IFC mentioned we our of product quarterly are on providing

sales national large agreements posted from million, we driven blood $X.X QX, contributions IFC center For increasing our by of U.S. revenue partners. with

and recognition drive Vivek, the clinical by believe we the to mentioned operational continue utility expanding As IFC's forward. growth will going of

product in III Phase to and $X for our ReCePI driver the trial addition revenue of The our totaled included for contract year completion government QX clinical the the million to million U.S. compared In prior $X.X was in revenue primary decline. our not period. guidance,

Defense as will near site for We this such our contract included you, government our factor expect the trial. result enrollment remaining begins Turkish in RedeS QX remind milestone-based in hold the To contract agreement government levels until our revenue to time revenue contract and the agreement reduction with as Department with blood of the our BARDA, for lyophilized revenues IFC. further recognized reimbursement under our FDA U.S. with are pathogen

margins. Let's now gross profit turn and to our product gross

Product was to relatively $XX.X period, an stable year-over-year. XX% the Our the were prior gross XXXX. gross expectations that gross continue increase prior quarter the margins relative million our year XX.X%, $XX.X previously profit to first compared in first to of margins our for product consistent consistency announced achieve year this compared during quarter results million will These we year. we believe with and were and QX when

on. Moving

of lower million QX quarter expenses, a by during period. million million, of $XX.X first year prior the trial first than specific $XX.X and in driven type, ReCePI effects $XX.X totaled Our totaled R&D operating of the prior June $XX.X expenses quarter million XX% in $X.X clinical By to completion the year-over-year decline of last restructuring noncash million of expense compared year. This included expenses the was the $X.X operating decline XXXX implemented XX%. year million were compensation. period stock-based primarily the which

again growth believe million and driven period. restructuring. the revenue allow deliver expenses last our decline year expected SG&A were remainder level to by for year's compared during is will against expense We drive sustainable prior $XX.X expectations. quarter of to of this The $XX.X us and SG&A the to First XXXX million our

non-GAAP now Let's EBITDA the bottom line results. on adjusted and focus

million XX, attributable prior the or in $X.XX for when year. significantly prior the bottom $X.X March QX to On or reported the Cerus $XX.X to by $X.XX line, share X loss the same diluted compared per Net net Cerus months million to period for compared diluted per the for XX% year improved XXXX, loss ended narrowed to to attributable period. share

basis, much period. non-GAAP a QX $X.X the to a $X.X a prior of EBITDA compared narrower loss million On million generated adjusted year for loss XXXX of

As our for XXXX we that growth and line we as a look ahead top whole. least the year, deliver expenses, gross maintain we to and the achieve breakeven operating stable as non-GAAP margins balance expect at expect of the EBITDA we to in guidance adjusted

short-term the sheet. balance equivalents a the cash, first we balance ended with sheet On of cash associated $XX.X investments position million and cash and flows, of quarter the cash on

XXXX levels line from during the operating previously we With used we believe million million operations top for fluctuations, first quarter potentially and positive whole. operating continue we possibility, Importantly, that remainder cash some a of $X to cash year a inventory as generate of of period. our XXXX, $X.X prior to anticipated can as compared for flows the the generated positive we quarterly announced cash for possible expected declining flows growth with was

Turning guidance. to our now

we double-digit confident full we And of in our our year guidance year. revenue to million, $XXX XXXX reflecting such, $XXX As Obi expectations. product growth mentioned, in from growth million are the reiterating range as increasingly are last

well as expansion of be both growth continued of America INTERCEPT continued we in IFC North stated anticipate previously, this by to platelet the fueled As business, as and the U.S. uptake in the in Europe we

$XX reiterating revenue IFC, to expect XXXX million, also year to roughly be IFC are full of for our the we sales. growth to for in range representing XXXX XX% continue We XX% which million of to guidance $X

back Obi turn I'd now for closing over to call remarks. some to the like

Thank you, Kevin.

the global of progress goals, momentum from strong carried pleased we is expand XXXX, of interest the to towards expect commercial our financial to rest see the your are with Cerus. a The of continued and our basis. for the on company System allowing in it to We applicability year. INTERCEPT Blood us start Thank access pipeline through the and and making you

turn questions. operator the to over I for call the now will

[Operator Instructions].

with first comes TD from Cowen. Our Joshua question Jennings

there I wanted I to bit on This revenue XXXX. the is about remainder that just would appreciate of was commentary year? to I of for start expect a with Eric little just Josh. the to deliver cadence provided hear for you the growth through more this you guidance. that hoping

Yes. Thanks lot, Eric. to Vivek, like a take you question? that would

to. pleased be QX. We're happy I'd the in Sure, performance with

some you'll probably you QX of XXXX some dating that note, recall, and of internationally. sort low we respect issues and was were issues given with As onetime then also dealing artificially to

a our the to bounce as but back of we year. solid So guidance double-digit we fairly throughout balance our believe growth in QX, anticipated suggests, year in the full ability deliver

sort and as in percentage throughout continuing XXXX. that our results, we well of the And growth, a balance at double-digit franchise so solid QX, both anticipate standpoint product line deliver were as of to least the IFC from core

currently that's year. for out So the are

shelf was of of the know And here? then that benefits approval. see your that shelf life might extension, take extended a great. That's on But you have that to the some that and real on few received something customers life already a a is March or impact to life started you the quarters have I it XX-month

the Yes. as up Eric. think it's Vivek, your for alley right take question, to again well. Thanks I And

Sure. Yes, happy I'd to. be

are through new time terms there's being process bit As out. in involved get able aware, manufacturing little you probably that a flow of those product and to changes our of

for already in that's dating field. that utilize product the to able are We

of customer So that some on on of risk and the product our obsoleting relieve supply mitigate some the pressure of chain shelves.

So a that's benefit. certainly

that forecast they rebuild like levels inventory our at to level. the want and customers products their customers, Certainly, as I positive customer the inventory or locations. feedback rebuild obsolescence on heard we've more and feel chain But a the relief certainly think acute life, sort at may as issues of shelf indicated earlier, current I accustomed doesn't avoidance to hold assume something any and of But supply get material their of they that. longer about benefited

Blackman next Stifel. Matt Our from question with comes

This for Matt. is on Emily

for weakness on Just business, the couple a questions of international there. the me

could markets any geopolitical you give happening. if if certain of color to Just related additional the was or that things are any it

Just could? a little more bit color you there, if

Emily. Yes. Thanks a lot,

has thoughts on Kevin some that. think I

Yes.

I as is, issue the timing in the in I any market. prepared more don't fundamental remarks, a there's think think it overseas weakness really mentioned we of than anything.

balance In it and timing fact, as expect the well EMEA indicated coming prepared we U.S. in the of order as as growth we and we for remarks, issues that these year, the the will rebound expect patterns of out after

a what So that's with was it issue, play factors where at and timing or happens orders there's other I think distributor here. sometimes

just the And in update give on Great. China this could if Okay. then time? us at you regulatory an progress

Emily. Thanks, Yes.

obviously of have under NMPA. There we a the last So lot the planet couple by the Chinese review of months. holidays over file

they that have. additional awaiting any still questions we're may So

quarter around expect to lot second questions, provide those timing a the we'll And an able for with more be then approval. We those the clarity questions here. likely in

comes with Stephens. question Jacob next Our from Johnson

maybe kind And trending the year. I the in, end expectations of CFO? towards from confident heard this Maybe in a for of for of the Kevin Obi of guidance? to guidance the any year, through words the Obi versus get year. towards Kevin, the increasingly the just balance of in my but just kind I Excel of higher I run caution of growth guidance, understand release, end said spreadsheet. on higher quarter fair double-digit the something that I you maybe that say we're the the guidance. beginning say for now a you're

little the a me table. kick Give on

I year. growth sort of how optimistic for the get about things QX see to like to trajectory think very we're our We'd just the under belt out. play

opportunities. as well, factored lot the extension mentioned of life the for not kind and Vivek As in the restocking moment any a really of there's shelf at

behind logic at sort maintenance time. So this that's the of of guidance

Yes. to right. my FX know that's rates Jacob, absolutely do. going think I We what don't I mean from are perspective,

more we So And fundamentally, all. be to here things initial we a from as But were downside we'll the up when that. today we as are guidance. sit there's in January think in we position to you better provided confident I potential provide than unfold,

had try. I just it. then Vivek. Got for figured to And I maybe

growth, blood on maybe curious things, the it IFC like with trends partners on of you you IFC the just sounds partnered those some side IFC side the things? versus kind Just of some traction some on have of with. of partnered blood the centers I'm centers of on the with larger you manufacturing of kind

the our strong feel a for that think guidance really coming we about for Yes, even And as of happy stated and growth to against QX, few business, address see our out that. deliver annual sort increased Thanks and our in the I If there think about confident more question. to ability confidence. I IFC of earlier, reasons we franchise. are

centers The we late partnerships that directly IFC a terms step-up last had with formed saw distribute in ordering we large their customers are first, for QX, blood to channel. to in year And that who customers. directly material through blood IFC of hospital them we center announced

strength good of was broaden of it ability IFC. and access So that to our to channel validation initial the

firsthand saw what high start institution sort of with that it IFC clinicians engage one out of initially sort in in having use availability of we they that encouragement the we sort us a benefit another clinical late we for broadening of or that XXXX, And product in and was of significant one the as department. across area opened ad of and pretty available. entered may second the We The same-store sales. through to account risk was saw trauma. a Perhaps up of saw had accounts increase have was

only sufficient in those shows to demand, our meet working XXXX not have we we're more in, actively meet because manufacturing that lastly, which the because So capacity to with is capacity get we we partners, to have to want have then that to What ability hospitals, it. available our manufacturing or once but make doing encouraging guidance. we we get to we supply as go within you generate that's to access we're can accounts. And we exceed increase deeper sure referenced, you it

calendar what we to about similar for the to we in for we issued when year, early better than specifically here much IFC May that product said January Kevin guidance did back in feel guidance about So overall things guidance. XXXX,

that's so progress. positive And certainly a

that? could it. I And sorry the Got on it the in just hot more, there through Middle to East there need kind just sounds But of need That's if keep I'm invest? opportunity in helpful. opportunity kind just opportunity, of to hoops to like are you realize you there's to we thinking as an areas sneak on region. any about kind any of one that start jump seat, curious Or you are Vivek. better that

Yes. Great question. Thanks.

we really milestone has of an in technology that the opportunity that resonates And with fact transition As are hoops ones that time the spend about approval cleared clearance. to hear pathogen reduced was onerous to that and which challenging and customers MDD that you the FDA region a approval, Conference, fact I in through that in mentioned, we're that the lot receiving MDR Dubai. sure MDR region. and MedLab in jump and to the that's annual FDA the nature most candidly, I'm at to held some the addition have only both the we've achieved already the

U.S. of and from to They tend take the terms technology their cues the adoption. AABB to in look

you're So sort interest and there's major to -- driven -- where investment particular, tied runway an a in probably the in by driver recognize of being a strategy economy It of Saudi also is overall natural in of aware defined sort of they of terms the their community market as that's there. resources.

they're they're and the health investing rest. So care, entertainment investing in in

and to things that in approved there's technologies a as to a bring to view So MDR what there's cleared are in health they in push care, the big and U.S. want invest locally.

that to our region. the are of we about that those benefit so think factors And accrue when growth some in

Our Fitzgerald. next Cantor Ross comes question Osborn with from

the on progress. Congrats

off, discuss accounts IFC starting So gone NTAP? terms being reimbursement has will receive of an how with able you in to

Thanks, Ross.

up our broke at little think end. your bit, on I least voice a

linked So I to the for question around reimbursement evolution think NTAP, correct? IFC the there and your that is was

correct. that's Yes,

this, Great. put that? ask Okay. again, you address Vivek, could Ross. Thanks, sorry but to it on you

the a get broke up bit. can't you little I question,

the Yes, it's the around occurred IFC context the in evolution how reimbursement basically for of has NTAP.

place take So at level? really, how does IFC hospital reimbursement the

to in associated case it us and initially which it fundamentally, way and depending Difficulty] products [Technical through through DRG. But clinicians. awareness from for allows do NTAP the interest paid getting created as the designation the more the the -- upon us

has So of we'd price what get pushback see, been able we on a is to which we've been bit initially, and encouraging quite thought cost.

through the with get we leveraging we've going and thing, anticipated. less in pushback on or price the value than case actually committees once hospital the the of relationship added analysis the much blood channel, value And seen center that through we'd

so and been then So center trained utility. going through getting going up been basis just blood ongoing now have that really selling products if terms we're continue new channel an through directly into getting prove governor hasn't institution were partner. getting board. that and to on we new we to process clinical an of the on in the accounts It's track have if to But the that getting of to a we're channel

resonate value hospitals as time the I'd have taken to IFC. around timely over the really dramatic that the Yes. product at that add reduction patient the seeing that in to we're seems the the proposition does wastage on availability of

Germany? and at Great. those and smaller lastly could looking Could for you geographies some that of the provide the the then upside. discuss state And U.K.

take and take there, Germany. Vivek and can I'll Yes, maybe U.K. start I'll

the that the have established an real-world with they're safety product. experience has of of around specifically challenging position blood So of the pathogen countries as these of That's and the activation a decision to and accounts standard of improving other long results deferring are seeing INTERCEPT many availability take sort care lot as been so a story the when supply. U.K. from sort the increasingly that the and

'XXs The on to hepatitis the 'XXs. May to multibillion-dollar be restitutions to the victims. a the coming U.K. That's of epidemics is about ready estimated it's from report the on and be the and inquiry. in called safety that published U.K., infected XX blood blood release It's HIV there'll and supposed

I have think and that of on blood will safety looks impact going the some So sort U.K. how forward. availability at

That being know. it's as payer said, single a you system,

And a optimistic time, some for so the health Vivek, do service, that tissue national when, market mind on fairly would at formal predict take hard and they will process how blood It's in has we're just covering Germany? pathogen activation. that to convert. you But on point

I'd to. Sure. be happy

the And the decision if operations to market it becomes partnering think maker. with once you more in where you situation from standpoint U.S. a really as Germany, For they them implementation. single to similar about France dynamics around that's have to decide opposed about go, an

MAA working with with their actively accounts what's hospitals online, Berlin So world. getting reduction. license to Germany That's one continue to of the in is institutions been and ML We beginning hospital and top them in XX in encouraging get some Charite get pathogen to starting are with we Berlin. about the start and leading approvals put most we're involved marketing

And driving. kind see on board, we luminary and of so you institutions get progress these where that's

is working GRK towards them Cross where the German up So we're customers getting the Red other on pathogen of area reduction. also

X-day But We've continues opportunity where product in and work an of starting ground for to marketplace. growth a label day is adoption. to need getting there, got us we're EMEA. be through to in terms a a things stand the extended like team we One now, of that the direct on see in claim Germany the claim we'll

like geographies feel Germany I through some have single the you balance balance, the So But of decision a growth where we in on slower our maker. for prospects decade. a about process, it's said, good

Our from Craig-Hallum [Operator William with Bonello Capital comes Instructions] question next Group.

North America. recovery Obviously, great in

generally, countries mean, revenue. to EMEA trying little and just understand there. you several underlying I change the a that's you a Are I get the bit not But you pretty more And much Does about it's said how think do what by been already of how more board? more that of declining only sort it Just year America. are? where does sort Or North we change? that? growth dynamic quarter there? trend of on happening outside coming about sort What's of expecting

an a saw for digit where last that sort platelets, know practices growth decline in just single demand year anomaly low and transfusion markets And function in of sort single-digit thresholds but transfusion change COVID those or don't we of if France Well, see or we it traditionally I of Belgium. year, was around in XXX% think in have penetration, somewhat year organic last example, was platelet the for the a we in of growth overall last markets. in organic we

That's recovered this year, as we mentioned in our prepared remarks.

ultimately trajectory, new the platelet plasma geographies in growth lagging about it adoption. as having some I far has business, really as well growth been longer-term as think which is the as

when we hard I feel being pretty for So geographic really exactly said, to us it's think the that online. will opportunities these confident accounts in come Europe. large And about predict

your if know Bill? don't question, answers I So that

helpful. of great really this tell then but Mark, would absolutely. CE any year, red what hopeful on timing color expected just just there No, sort more anything there? other us is think us obviously. then? And you And by cell, timing can to has said you've give blood on happen you be That's Yes. can the now and I of on between end

a Bill. Thanks lot,

And MDR CE unfortunately, to Moore is on is under the process. Carol us. the Mark specific timing So question call with your

Carol. So turn to Quality. over of I'll She's and it our Senior Vice Regulatory President

question. the Thank you. Thanks for

responses might our with year. any questions up they the working is We which authority, to competent are closely this finish provided in we on earlier Netherlands have the

to we go TUV heard We them, some application. body, feedback what are will between still towards And steps did the not back complete next our have we receiving notified talk from is completing a our from authority, the and determine provide component response. which back but and the

earlier provided component back year. we'll we once better this position the So about a from in hear we our that authority be responses

any Okay. know far, And on timing? to your though, mean, based on thus thinking I you what change

Well, an process. I just in review we're active think

at fulfill we're hard requests make might I But that predict sure times, way. any next. what think So it's we timely that working to hard in come most receive the to up we

one about question And for your Okay. it potentially and helpful. to flow That's QX. hear cash seeing flow last thoughts then and year being the for operating on cash just obviously happy

Just anything unusual. particularly

reverse had do sort capital we moves cash think that working of think future in Do operating QX, I we sort Or a unusual how of hurt probably we of in see the flow. about QX? it that some quarters? helping

Yes, Bill, that take I'll one.

So In large, saw actually rapidly working with payables. you're XXXX atypical at capital QX, declining and we of movements inventory increased kind right.

I position when we a we first the ended the time. like in year, we could was really reverse felt where that. think QX were we

I that think come inventories Obviously, down. down. have receivables payables for down, coming see the come our you matter, have

in optimistic we're year. the I could quarter. given the of think balance cautiously chop Obviously, any for be there

in the the work DPO and But if line to which think levels. comes will in you really, growth see manageable. down think year, QX for of top is and expect I think about continued low it payables inventory our continue the the then the current managing the DSO receivables down at to levels, guidance to we watermark kind we being And

there's a flow, and fundamental to that think cash we'll towards So can we I reasons manage lot operating of generate that. confident be

remarks. Greenman turn to any over now would for to back call the like I closing you. Thank Obi

We of you you interest progress forward keeping for today throughout again our of joining your informed us look XXXX. to for thank rest Cerus. in Well, Thank you. the and

you Thank you. for conference. participation. the This concludes your Thank

may disconnect. You now