LumiraDx (LMDWF) 21 Mar 232022 Q4 Earnings call transcript

Good day and thank you for standing by. Welcome to the LumiraDx Fourth Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

to conference like speaker, to now Garcia. Melissa would hand over the your I ahead. go Please

Investor issued We'd everyone. to and financial Zwanziger are fourth call Ameye; website welcome Chief announcing CEO, and discuss is results our quarter Veronique With Ron Financial Relations of Dorian company's and the the results section Officer; LumiraDx's lumiradx.com. year Chairman Financial CEO, full LeBlanc. Hello, Officer, at XXXX financial posted Chief Deputy to LumiraDx's The like you release on press and today. us earlier to today's

Before Act such listeners harbor Form other safe we we annual as XXXX. that aware of uncertainties for made begin, forward-looking than I our report any today on the Reform would to provisions like Please involve be of statements to make the XX, risks such forward-looking in and forward-looking pursuant that filed those year of that with all ended December August Any these SEC the caution we vary Form in the filings we historical make SEC Private SEC. results XX-F and statements in are facts, detailed Litigation must statements XX, was make that reports XXXX, Actual on the with X-K filed other on that was considered on the may with and our XXXX, statements XX, be XXXX, which factors. April light materially. Securities

is be financial our the issued certain in non-IFRS in today's our presented substitute in today Non-IFRS press during IFRS. financial at isolation a on lumiradx.com. Also, showing as reconciliation website financial non-IFRS which measures earlier with measures. or for should compliance schedule these we to refer can release be measures There from found may financial of not considered call, a information

to for over Zwanziger I remarks. call Ron opening turn the will now

provide and updates We before answering Ron? will then business questions. financial

everyone Good for and joining call. thank fourth quarter Melissa. results you morning, Thanks, our

These drive to care new our as efforts LeMuraDx's as to diagnostics point near morning, to advance well make we position. products. products announced our progress progressing continue this transformed our value financial term strategy, As deliver commercializing strengthening pipeline growth, while high of

continue innovation instruments leveraging shift of retain share. to community introduction [current] to in combinations broader business dynamics, product with and time, redeploy new (ph) actively changing adapt At we planned, support market and grow we As to the same response customers the are working based testing. and to market to

base, advantages continue and We remain and thanks focused performance competitors. to diversifying customer widely over on cost recognized expanding our to

materials, across manufacturing of we begin automated our of benefits manufacturing we assays. highly As multiple are test using common realizing strips single, the process non-COVID our menu

platforms achieved primarily million, X,XXX lower Fourth on market the quarter approximately COVID higher third This average results quarter. mix were the in but We approximately performance sales. shipped selling was Europe. price with from to $XX based mainly compared quarter, volume during

Next, I performance. advancing to for progress our the strategy like financial we against communicated driving would share have key and priorities

of the innovation and and the Our to development support troponin are key assays our and pipeline plan, CE high portfolio to markets, organization Europe commercialize to sensitivity U.S. other to international and product base to accelerate on XXXK revenue newly authorized shape progress and platform commercial our in cost strong our priorities success. the molecular

which instrument The has with and QX roll have CRP minutes together been in of detection we and first our is shipments commercial very HbAXc commercializing in other in immediate designed This well our heart this out, referral accounts. began the key Initial in care. of commenced into to XX customer primary feedback continue deliver for capitalized kind allow and opinion our is of and its the quantitative delivering from positive. product in failure leader progressing the on to priority Europe [indiscernible] international and We of First, test markets. new Europe example key results consolidation products strategy. test NT-proBNP

As our right different is XX now instruments in to opportunity consolidate to instruments designed with menu XX the into that to customers workflow three to are LumiraDx to consolidate enable current a test single up and a the platform six reminder, currently next months. using

Earlier month, achieved European Europe (ph) opportunities [NGSB] certification test, HbAXc this in also which tender in up many key for now opens we markets. our more

market. not is Europe Finally, a huge respiratory

respiratory region. COVID together innovation RSV such with overall and COVID in the such share COVID and minutes combos as enabled our COVID market us have serve differentiated customers in to Ultra as However, the products flu, five portfolio defend pooling COVID

focused U.S. Ultra growing and revenue complete the our remain this United studies studies sales near and tests. working for QX. been on COVID we plan initiated on to our the our year term tests. We're earlier submissions application COVID in enables to and and combination the Flu to actively clinical continue pipeline States, after We the in both submit the Shifting this start are XXXK respiratory and health us HbAXc year. to Ultra for XXXK clinical This emergency end. still COVID track We're public on

clinical COVID ending at system and acquiring XXXK requirements complete respiratory sufficient samples risk. the to be Flu With may

combination program the we – EUA Assessment review of to our Program, achieve ITAP However, COVID with Institute National Independent the rapid program Health, by the product. and acceleration Test [indiscernible], for accelerated working ITAP Flu are established tech FDA

value of platform. development tests our Strep and during in we studies, accelerate the in In A. antigen the start an A QX, IVDL XXXX, season of respiratory to with test assays in submission preclinical Next, is and Molecular States market, progress of Molecular. programs United of since XXXX half year. the high made both clinical key submission commitment and We've demonstrating XXXK two capability next high in Europe the Strep on perform the point on studies sensitivity equivalent and the starting our first anticipate the Troponin tests molecular molecular to to leading care our

Lab we have We already demonstrated technology. where this Fast [indiscernible], pipeline TB, following have developed a chemistry strong the and including Flu feasibility COVID molecular of from our product, A/B

our minute finger plasma from preclinical good update. equivalent In stick test analyzers Troponin samples. sensitivity, blood follow-up and and with the time We have progress blood has test and venous test studies, within high to laboratory made XX

in strategic in access expect We Europe submission commence submission mid initial and faster markets, XXXK select by to clinical studies such as and a with the fall year UK. an to next IVDR the

We are to continue to be excited about programs of interest high both which customers. our

fast our health information summary, In on comprehensive improved progress need. continue at and cost we mission diagnostic the accurate to for point to deliver at us milestones our strategic through outcomes lower of enabling

Dorian? our hand things now Dorian performance. I'll financial to go deeper into over to

Thanks, Ron.

full in XXXX were revenue revenues million Fourth for million. million. $X revenues platform year from fiscal XXXX the $XXX.X Lab COVID million was COVID were LumiraDx quarter quarter. $XXX.X the year, $XX For LumiraDx and of Solutions test $XX.X contributed Fast million scripts to antigen compared XXXX the

care Non COVID COVID million of QX specific revenues. $X non point a including This first of percentage were related in had is specific $X revenues meaningful or XXXX non we've specific quarter the COVID revenues, revenues. total million of platform of XX% that

Ron while mix yielded volumes from QX QX, test price. As average COVID increased a selling to mentioned, lower the geographic

volume both have COVID weak XXXX, season customer As to a sales. decline we a in tests utilization only the progress in change respiratory test and QX of lead seen we in

outside declines XXXX-XXXX $XX platform in strong $XX COVID COVID continued point the our XXXX of as at for We growth million expect expect million the products Fast revenues flu anticipate contributions between respiratory for and non testing of total and the season. Lab portfolio the we COVID inventory both consumed. customers care and QX the U.S. from We and is Solutions

and value impairment full were currently charges, The million demand $XX.X approximately $XX use Amira installed for company the accounting stock XX% margins included gross Adjusted recognized depreciation manufacturing strip was margins for million related sales. $X materials recognized decline million year. million carrying associated XXXX and million COVID raw million of as equipment with impairment $XX In manufacturing our to test do adjusted care for Labs but equipment. charges for cost An of $X $XX gross commercial the include amortization, for and the exclude the continue Total restructuring or platform for margins of of our compensation, on to the $XX accessories Fast reducing point of and COVID inventory impairment not testing inventory of the million value impairment XX%. the and decision the Amira the the in test. Core strip in uninstalled expense and the to not launch for accounting and Amira, testing currently for carrying fixed and quarter test exceed on COVID forgo assets quarter, for recorded test. based antigen

quarter. The XX,XXX than instruments, installed at X,XXX approximately of end XXXX instruments of increase more of an the the base in was

care Gates of instruments Our previously grant from installed mainly located COVID we in instruments as settings, and for the in Foundation. point base X,XXX testing approximately Africa Bill the identified specifically X,XXX & Melinda under received nontraditional includes

instruments testing launch limited our installed of of utilization new XXXX. one our European successes broad transition expect has of base for COVID the in core menu to use specific We adoption cases from menu these Europe. from The been in

value the XXXX-XXXX COVID us provide for in and installations excellent respiratory an high beyond. customer the season our test multiplex Our also Flu growth U.S. for opportunity

realized as XXXX. of in activities the adjusted in right compared early full our implementing XXXX. million XXXX. fourth expenses QX in and Both were in were $XX.X costs started in adjusted the million activities the late $XX.X of we in earlier our the call, Nonetheless, our third quarter with capacity activities will facilities discussed to in restructuring manufacturing a in XXXX restructuring the these $XX.X size The additional changes fourth R&D restructuring million be quarter. XXXX SG&A As quarter to and excess of And earnings quarter result reduce the impact $XX.X expenses implemented compared associated fourth impact we to to million QX QX organization.

on savings we focus to basis the cost XXXX. necessary managing realize if the have further in to continue progress ability We company, across our as

internal June. non-cash test menu and company. the cash LumiraDx's highly our results debt balance for has $XXX December consolidated an our customers combination no through XX, We the of in million XXXX finance senior of cost continues of loans flow intercompany facility was proposition performance, in of year, expanding covenants financial the with of include resonate on XXXX, which million. the end our present revaluation in value and company low partners. of foreign The our the resulting expenses amendment net production, the At strip to scalable, waive February or impact losses to exchange from of cash $XX accounting future Finally, announced

We in our response are menu. expanded especially the pleased with customer Europe for

CEO, I'm over Ameye happy provide developments. to commercial update our Veronique? on to to recent Veronique Deputy hand a

customer to conditions, of Thank respiratory vitamin as traction deep the managing new menu products the out heart been and therapy rolled last lab diagnosing continue for well settings. as Dorian. cases commercially The hardening you, failure, comparable thrombosis, see difficulty] in as [Technical performance, have suspected diabetes, We've and K managing combination new over quarters. up the opened we antagonist based has usability pain community few

some details the based the I'd cases triage systems [indiscernible] comparable strategy for testing UK platform, the like Austria in for of currently X,XXX users two Health These of experience and minutes. is and instruments COVID to other emergency patients impact and procured professionals to compromises testing last to and [indiscernible] in able healthcare laboratory departments, use variety Department moving played and the testing community. largest of results and where discharge. provide providers. which in reliably. accepted DACH, being By were Social in accurate The they from hospital healthcare in U.K. testing to were out Early in the our in fast completely instruments markets: the hospital molecular deployed our pandemic, enabled Switzerland, Germany, Care the of by one the

the for confidence the has is platform. redeploying As believe pandemic our waned, these We testament been a in to care instruments community application. NHS this broader their

pulmonary for at recommended community virtual ruling proactively other been embolism. and The sites which in home deep minimize the thrombosis managing has vein LumiraDx for ward in COPD, program, in UK and to NHS implementation the fail and is platform in out and intended hospital patients by settings presence inflammation all

platform connected the cases have of and the instruments be to since XXX platform to nurses to is being begin accurate detection fast, heart use to for including started deploy for care them [indiscernible] is and into offices testing take in Our immediate U.K. also to A the testing. and homes of and the near NHS use assets reallocated portable ideal by repurchasing approximately action community, are designated visits used easy practitioners care home The and sites healthcare community we primary patient. fully for and sites failure. across total these working settings the been requested the early

due and and RNA centralized non-clinical as in speed different. markets STAR The testing our was Switzerland mostly well opportunity more platform, their very was Complete these in reagents, the as Germany, Austria opportunity is but performance, of COVID and to applications.

the launch only and D-Dimer, to our HbAXc, seeing base customer XX% utilization XXX of NT-proBNP In grown the Now, we with with grow. A and are has multiple plus CRP, instrument ago, customers of in or INR, ordering more or XXX that XX -- ordering year XX%. tests. from year, were past year that than than is tests. customers is X% than ordering more in number Germany Today, of our number customers were A two XX%. Today three Germany ago, more more tests. less placements

at coming Japan, and value recent in COVID differentiated minute of five our the into antigen Pooling, term look revenue Ultra and differentiated tests as encouraging The has The declined major initial by past our test is the Although year as products overall Flu harder revenue, been our to our many down product Italy care COVID quantify COVID expansion COVID markets, has from If Ultra namely XX adopted with combination of with NT-proBNP products to has work below company. RSV. respiratory new XX% products us volumes COVID contribution such introduce we the retain short care. response been minute COVID respiratory dropping, Fingerstick helped assay such started and the from COVID driving has our for extremely the menu to accounts secondary platform has XX%. two-thirds UK, the of to rapidly launch revenue and for primary and just over from and market

in a in patients A cooperation disease significantly exercise a intermediate patients England elevated of recent Medtronic resulted detection community of city with voluntary immediate small to a volunteers. showing incredible Fingerstick early This heart X% the patient at on included healthy of values check [indiscernible] number of detect our power values, an with screening NT-proBNP with take action. in of heart XX% and effective and test

In very early pleased strategy and are the summary, contributing the we are to success. overall products commercial with how

open now the call will We questions. for

our And will Cohen from of Jeffrey Ladenburg. question Instructions] first come [Operator

open. is Your line

taking Hi, our morning. good are you? How for Thank questions. you

So our from a few end.

about HbAXc? of Firstly, in CRP, the and walked tenders Europe some talk of European business geographies you could the governments you Could with as past far some D-Dimer, the also And through INR, about commercialization there? proBNP. talk and of you some driving as

-- Well, while implemented but a [indiscernible]. winning previous -- out that's very broad win previous when the a takes run question. We've as started you it tenders, they get some of before they them take from them,

of remarks, started countries. great more that a in the in interest a with new happening bid and certification to is able of we prepared that our AXc So number deal we're of mentioned now tenders. on

of in essentially, great everywhere. particular, with is deal actually, number The of combination interest a the AXc in of CRP and that customers quite a finding countries, pair

in but tests drive actually country launching whichever program, power of having have you're combination that the on combination can of one that's -- -- now for Ward see different [indiscernible] at clearly in interest didn't everywhere similarly a number test to until now Europe testing. changing. sort the the a enough Virtual various you these the to is the of of be platform, up we to described And sort of ways showing of we've Veronique ingredients community but is locations, time, which And we much [indiscernible] very because been have helping pretty large essential test large So looking acceptance. at,

if know answers your don't I question. that So

Ron. helpful, that's Yes,

system, Is assessment? through speaking one-off take may the larger longer on be to -- they get good sales, longer they tend a the tenders and to size that and generally duration? but versus So

or be the the through within specialists once a to these Yes. [indiscernible] hospital the that, looked once I mean, the where country very of is of generally stage been and business key goes most leaders long. through that's not instruments sustaining true. both But working once tender even go power speaking, it's you but you've in, the opinion the supported, unit within gone at, product with district tend

So are though it that they the that it different tend to a not tends be doesn't them. tenders difference contractually There's long. between to be -- even once really not are that to tenders

any helpful. expect placements on it. Or And of for down? to know very slow instruments you XXXX, what I strong Okay, fall got placements further That's for then sense through instrument expect for Do XXXX? you'd the XXXX. anticipate? it was that you would

the just of your CRP driving was drive I and Well, the the part in wouldn't with the question in placement of is the and also them of the amount launch a we unit recent quarter on certainly to to slow down. NT-pro mean, interest. the expect of link tremendous the commented to I which previous -- AXc response fourth

by no they no -- will So think means we do slow down.

really as we've have -- we'll Europe. suspect, think based products a recently the in have I we'll pretty launched year for simply I on placements, good a

And components. it. like some you although the -- if you Dorian, your about out revenue sounds concluded may? further any you it restructuring some of it calling on most for Could elaborate fourth thanks, commentary restructuring quarter. during into like the on got various Okay, the made first quarter of sounded and some commentary And

Yes.

place set second did, end restructuring until February. of the we The the that impact take of full didn't

of in So the quite our of quarter, have the especially place in facilities. restructure UK some restructuring, the the won't full first we impact took still

of timing in of then QX on overall QX down the and decline to from an expenses, operating including based restructuring QX cost activities. sales. So through Stepping those just from the we'll again QX go the to have additional portions that

helpful. our That's questions. you got taking for Okay, it. Thank

Matt our come question will our next Sachs. of from Goldman for moment One Sykes question. And next

open. is line Your

my expecting in Could just comments in about first you, the U.S. Thanks of the progress knowing little questions. thinking approval of for what on process but the rollout made are process? as Maybe morning. terms test one non that sort maybe to U.S. you're you prepared timing relatively is tests? how more bit color remarks good it regulatory for for you you uncertain, Obviously, provide relates about pipeline the COVID a taking in the Ron, Hi, in some

also through the us a that Flu the program, at will we Well, so the have which in season end with mentioned, submitting, We're of the COVID, ask A, on very may seen term, obviously why the the -- and in which working company entire instrument non-COVID? the B. for familiar agency expecting our for we're first mentioned, flu XXXK issue ITAP short COVID and to -- that help is on we will time is the are a Well, We're also COVID it's the first the clear, the as specifically time around focus they're it’s year. our in our COVID, you when Flu test. of

submitting So we will on also NT- then we're point. one AXc, then done, pro focus be And and and -- as additional first. that mentioned adding, INR we with a once tests with that previously, that is at some

we So, in a to all drive for in year. later done we submit everything and have have smoothly, such it revenues assuming submissions way that those and year the those clinical trials those next to goes expect this

taking redeploying and Thanks mentioned instruments. of sort it. the helpful. that. that's for helping with conversion place then That's non-COVID those NHS Got the there you And you

in can In conversion Europe? you UK. the bodies more addition, like wondering For own other of NHS just that that is I'm other if obviously, help is enacting you or your going countries? efforts from to can it that to But similar countries other there commercial in receive NHS type are be in types bodies with of countries to other there conversion in Europe, tailwinds any the

Well, very question. that's a good

We we Europe, biggest [cities] UK. are as, similar European underway as Central Austria Switzerland that the which Italy, program, -- slightly later focused which there the is slightly market, But in are Germany, -- on. own discussing on the our a about (ph) that is and obviously, But then still in actually in talk in is is in in pickup in the yes, cases and -- we similar There situation of more And most different. instruments the it place. Italy. and differently we'll well

to more much program it's various on so, authorities work them moving honest the of that with is And the the right and And to getting locations. us underway.

in programs instruments program same those the the By revenues is are moving. there moving non-communicable a per experimental started very of around instrument locations, meaning but low, AXc initially. disease some there the essentially Africa where so way, with moving strip true into We and is we're our

also so, that's And going.

a question. very So good it is

a instruments big the on sure focus have -- that instruments We get these that making we redeployed.

for And very then Dorian, Thanks. helpful. Great. you. last That's one,

for there guide. of that we in kind Just and on any like if non-COVID based Is correct that outlined or non-COVID of in base should It million non-COVID? around I'm me we a kind my that total. growth about for should about QX kind the XXXX, you that's Is sort QX. math you think I'm did think XXXX? assuming bars on $X.X looks of about growth rates wrong of

Yes. think I base we from to is a expect there that No, grow that XXXX. throughout good

entire to purchase QX. the is customer COVID in inventories late from difference COVID decline the So related to QX and and in of QX

million the expect is grow of $X for that would from we core products. that the base we base So non-COVID

growth Okay. potential too on is And for it or rate commentary early? any that

hold for we'll think I now. that

Okay. Thank for much you questions. the very

next of for our question moment And Vijay question. One Evercore. next Kumar from our will come

line is open. Your

on (ph) Vijay. for Hi. [Alexandra] This is

gave you could exiting about XXXX burn sort to the on wondering And year And year? bit expect flows. terms breakeven you cash we out how numbers revenue this burn cadence were that Dorian, if you also previously look XQ with those of cash that? of how had a expectations. for might Can I little talk stated was in then, ramp? So, and the you full are the you your still and cash focused expecting more

certainly. Yes,

non-COVID at similar great to growth the look from the think products the I that asked. and contribution year question we just full Matt having the would in So as

COVID the a single be a the performance by I with in that is pharmacy physician COVID office product, the place fits sensitivity the in fits test customers will the any given sample the tremendous platform. Flu well well differentiated segment, for of We half opportunity really think A of in also multiplex. year valued in a rapidly second very segment, have the flu very where do we the have result

right lesser the Japan our So place the what respiratory to year more respiratory in historically back the that into also in then testing second half of testing installed capture business market. the we with opportunity was gives growing a and of degree COVID to the respiratory momentum base Europe business that as converting is, business U.S., lot complete largest a us in obviously, have, which a for in well, the all

on if of continue for to the the of the year the installed year of opportunity base the non-COVID and the grow year, then about differentiation cadence multiplex So we core in and the respiratory, will revenues half leveraging the have product. throughout you the second a think business the we good

On piece, strong the impact in concentrating the Japan. you are the the fourth when high a will value in burn, high that very a and that U.S. margin, high cash at on value second sales have countries respiratory quarter look revenues company. on Those the cash

fourth towards quarter. breakeven base So cost outcome. that key that portion we will in cash concentrating the on be driving operating managing the And to are to a achieve

the one TB another test. on of Great. care I just can point ask And then

design as how was guys test preclinical growing, studies that about wondering manufacture. had any finalizing just the process strip I talked and had? you as You well previously is

of gone the various and to significantly organizations Those by Gates registration in particularly it the have well. sales, year seek we're help aided into track that TB I very a in to Foundation get later And fair for in. of results the coming think this got process. some number We've sponsor we're And programs this being on Africa.

Thanks for questions. taking Great. my

next And will And come moment our BTIG. for of one next question our Massaro from Mark question.

line open. is Your

for Hey, is you, taking questions. you guys. one Good Maybe Thank Dorian. for first the morning.

how came we think gross expect that adjusted margins ability significantly I pause right Or believe until your at I that XXXX, level? might -- it about XX% QX for think at gross back temporary hold in we revenues your below guess, guidance pick that I to margins up? consensus? recognizing a perhaps is was should

right. is that No, Yes.

temporary cost You as decline margin should do still We base. think it back a fixed up. revenues of have in until pick a

script, $X the for million have and As of alone have installed manufacturing the through expense depreciation facilities in we running well. over as highlighted we expense the we equipment do

So there is a here. fixed cost element

So it But our million that be is to at positive gross for of $XX that a us quarter, will million hard manufacturing $XX quarter, delta benefit bottom right disposable. million entirely because that flows flows line bottom so a have to on essentially the small materials to are just the structure the margin. $XX line of a quarter, significant delta direct the almost the costs

we know agreements some is install versus or years. Mark, other still expensing rental in three spreading reagent without I that, peers over are our that capitalizing instruments of more having I'll you, any expense and that are remind element, The we those place

a the able tenders we we're I directly periodic commitments, COVID as think that. cost. us. changing for deals, to start period rental But about some a as -- where we burden hit in we into and plus the of where first accounting as model million will for have that the quarter transition are $X.X we still that'll therefore reagent changing business the we the that be a spoke we more before multi non menu of are in So quarter, instruments place taking to P&L X,XXX And do broader we

maybe it's a helpful. QX, And from XXXX? couple get that -- been tune now COVID XX% XXXX is the to the from is modeling Ultra. our I but reason to I guess I I just And That's think, driving be we're in be, revenue Flu of specificity asked and of A/B? COVID fine times, congrats coming of to Okay. pacing timing going COVID know try a non And standalone I you quarter. on mentioned think, you little why XXXK. understand respect with can revenue your more the just love the to United XXXX -- to respect would submitted COVID -- to Ron, then Is COVID asking about in Maybe States. questions with to the then talk the a

the Yes, about there, XXXK not know, for five the collect. finalizing Ultra. number on of Europe left busy not quite collecting we're conversion from, to the XXXL the are of as for the it's we it the to in over closing the minute understood. that we XX planning customers, the we'll numbers submitting XXXK tests on and on we the explained going been We're submit have heard only need And test. you I differentiating in version for fast. but so entirely and only then has quite COVID for why XX% because minute That's We're

doing we're So that only one.

extremely next COVID samples the the make Flu expecting We'll expect A, on from the we then EUA and the transition have we from samples -- on that then sure the that we then for -- some explained have the modeling to why smooth hemisphere, finalize the southern to we where about get B we're in And we're but we'll to additional will XXXK get But that's getting standpoint, difficult. get some samples ITAP for a the on respiratory to season. program Flu that a U.S..

of was I Europe, customer response doesn't bought Flu in particularly U.S. also UK fact a which, your we're be commented, market that Dorian had to in same the amount surprise also But as a product through the a elsewhere this response should taking in in Flu question Flu the B and probably tremendous strong number program. won't Flu, And quite ICAP tremendous Flu customer that including on of U.S. on tend locations had but A, we've since have COVID A, the we've B actually focused add, for and you significant

great. know That's I some Okay. Foundation. that have support the from good you Gates

non-dilutive that I entities you or really Ron, partnership talked Would think on about respect with be anything sense the update on helpful. potentially perhaps any side to just your or could would QX partnerships any commercial provide partnership financing, call, discussions. love

And group. very we'll -- we There to on probability, when active done, update think it's is other continuing, obviously, you something something the fairly get working with a when really update done. no good we'll that select but we're that we're is say than

right. very much. All Thanks

for question Raymond from will of our Cooper next next moment our come One question. James. And Andrew

is line Andrew. open, Your

just Hey, first but you more for could little color. give A asked a lot everybody. Thanks already, maybe the bit question. hoping

You actually pretty pretty goods adjusted substantial in revenue. step up dollar steady of cost had quarter-over-quarter with

where So costs can just trying see of fixed in some the the will margins to, the you revenues for versus grow? get out mentioned, we and and to a like pieces stabilize come some sense of that as that relative gross

Yes.

is that of part mix. So

COVID price the in we occurred. sales lower declines As average mix quarter antigen those on where selling increase on But the COVID actually just quarter. actually and was antigen mentioned to based volume -- it a the of a third from fourth geographic

US, the the in in less more Middle a little a So in little Europe. East and

kind to of flush some that very piece write inventory still through last So still the of that the and beyond portion dealing legacy pieces was we COVID. have a difference, demand of other variable that that offs get did had, Andrew. the had with of the And we impairments the rid we

products as our challenges and respiratory various purchases pandemic with as of efficient used production transition everyone's into versus on had now had much with to we've processes are the we're manufacturing planned the focus and and forward easier we rates stay raw us business So inventory the behind just having our put demand I looking to impairment that waves on and reserves much legacy predict, the consumption trying fourth that will easier predict and to the between schedules the to material in a dealing quarter of on to seasons. around of growth we've kind think in the we're a during be what

helpful. great. Okay, That's

non-COVID original sales, the all thorough Andrew, the mentioned, add, to we were and to sheet instruments particularly a but to spring of we company essentially the as the AXc. just X,XXX transition cleaning to quarter which did us in plan and was, the the around balance primarily company itself and beginning of non-COVID, the we referred of for fourth CRP Europe, in obviously, that the -- they

And quarters. of is impact in so, I next to numbers think flow the few the in the that going

think you to on if throughout need more decide, hey, I continue do Okay, you And trim necessary mentioned what some what those I to see potential OpEx just also benchmarks helpful. make guess, year. or room are? And those some necessary? to And then sort might decisions how areas of we of of Dorian, about the again, to the think where then, it is to do thresholds be if necessary?

with around productive on can fact really that to test factor strip. very strengthening We're conversations very form our we all that mentioned sheet Ron anchored in we're generate are inexpensive this already the the and performance tremendous balance focused on manufacture underway that

So, as now The a really the care. the great of stronger been driving physician decentralized that we've of office comprehensive of is menu never that's very having. has proposition of that for lot your platform way, got we're really number a trying meets run-in compelling, value care primary to conversations a needs and a this

and sheet We we're so the is the the we the is the we're balance focus on through and populating what installed really of the confident doing answer to that that work strengthening core think can need I focus growing continue we to momentum as call That's in of the base. have we updated Andrew. prior part grow the your to that enterprise. to going been which So platform the question, that,

You use. the would asked about we criteria

major countries from which sort them, to the probably making getting in in of programs. their One to for very see hard we're changes of is is you the progress outside around changes

but Virtual are a we've ideas talked similar great the already there about Now running that's Ward elsewhere. because deal implemented,

we're Austria Ward And so, play that and seeing program, likely already of Germany similar changes the of effectiveness the the changes to state happen. in the Virtual of

we're depend it of those geographies. how indications And in the so look all coming And advanced will to the come nature that some at having and help say our importantly, I very we directions of that on much go. large particularly, in should us are changes how about

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want question? Dorian, do that you to answer

Yes.

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would for I to like remarks. back now the to Ron closing And call hand

our Well, value been bring highest the our over near to we past programs. reinvest on priorities, business of to and now organization this, couple structure term delivery. able assets the to we've done focused reshaping accelerate quarters, Having and momentum

on support. and point appreciate our (ph) [XX Thanks and for advance pipeline to care much. forward of our billion] to we you continued progress continue We very and diagnostic updating look your the markets strategy product transforming

gentlemen, you Thank ladies and And this conference participating. call. for concludes today's

disconnect. now may You