OpGen(US:OPGN)2022-05-13 03:15Financial Data and Key Metrics Changes - Overall revenue for Q1 2022 was approximately $470,000, a 43% decrease from Q1 2021, primarily due to the discontinuation of the legacy FISH product line and lower Unyvero revenues due to COVID restrictions [18][19][20] - U.S. direct product sales increased by 76% year-over-year, reaching $154,000 compared to $87,000 in Q1 2021, indicating strong growth in this segment [20] - Net loss available to common shareholders in Q1 2022 was $6.8 million, or $0.15 per share, significantly lower than the $14.9 million or $0.50 per share in Q1 2021 [25] Business Line Data and Key Metrics Changes - Laboratory service revenues declined due to decreased demand for COVID testing services, which is expected to recover as countries reopen [21] - Collaboration revenue also declined due to the completion of the New York State Department of Health project in September 2021, but ongoing discussions for new collaborations are expected to contribute positively in the future [22] Market Data and Key Metrics Changes - The international distribution business for Unyvero products saw fluctuating revenues primarily due to ongoing COVID lockdowns, but expansion is expected as restrictions ease [29][30] - The agreement with Menarini to increase minimum purchase commitments by 50% in the coming year and over 80% by the end of the fifth year indicates a positive outlook for international sales [31][57] Company Strategy and Development Direction - The company is focused on commercialization and expanding its product offerings, particularly the Unyvero and Acuitas AMR Gene Panel, with expectations of 50% or higher growth in U.S. direct sales for 2022 [28][60] - Strategic R&D programs are a major focus, including ongoing clinical trials and the development of the A30 platform, which positions the company for future growth [27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of demand for core products as COVID-related restrictions ease, anticipating a shift back to normal testing volumes [21] - The company expects to continue its strategic partnerships and licensing discussions, which could further enhance revenue growth [33][61] Other Important Information - The company plans to restructure its debt with the European Investment Bank, allowing for greater flexibility in cash management [34][35] - Ares Genetics is expanding its services and collaborations, which are expected to drive growth in the coming quarters [39][41] Q&A Session Summary Question: Can you provide additional details on the 76% growth in direct sales in the U.S.? - Management indicated that the growth is based on molecular products, excluding the FISH products, and anticipates a year-over-year growth of 50% or higher for 2022 [64] Question: How many hospitals are currently evaluating the Acuitas AMR Gene Panel? - There are over a dozen active conversations and a handful of commercial agreements, with more than 60 active funnel opportunities in the U.S. [66] Question: Can you elaborate on the Menarini agreement and its implications? - The Menarini agreement has increased minimum purchase commitments significantly, and they will take full ownership of the installed Unyvero systems, which is expected to drive growth [70][73] Question: Will AREScloud be offered as a bundled option for existing products? - AREScloud will be offered flexibly, allowing customers to choose between various services, which could enhance margins and customer retention [85][88]