Operator: Thank you. [Operator Instructions]. One moment please, for our next question. Our next question will come from Gary Nachman of Raymond James. Your line is open.
Adam Grossman: Hey, Gary.
Gary Nachman: Hi guys, good afternoon, and very nice quarter.
Adam Grossman: Thank you.
Gary Nachman: So first question, how has your contracting been going with the big physician buying groups for both ASCENIV and BIVIGAM? And I want to get a sense of how much visibility you have on how much product you’ll be able to supply them. So I’m curious what you see looking into that funnel, when you look out over the next nine to 12 months. And then, specifically, what was the mix for a set of BIVIGAM in the third quarter? And then I have a couple more.
Adam Grossman: What was the mix? Did we know of the mix?
Brian Lenz: The mix, historically, we said we’d be in that 75%, 25%, 70%, 30%, and then we would start looking at 65%, 35% and we’ve really migrated to that 65%, 35%, heading more towards 60%, 40% standard margin BIVIGAM, higher margin ASCENIV that 60%, 40% mix right now.
Adam Grossman: And I’ll say, Gary that, that is conservative. Let’s see where we go in through 2024. But that’s where we’re seeing. I know in the past I’ve said, is there a chance that you get to 50:50? Probably. Do I know when that is? No, I don’t. I put my finger on it. No, but do we get there? Does ASCENIV at some point in time potentially surpass BIVIGAM? Probably. When do we get there? I don’t know. But for the time being, for modeling purposes and the guidance that we feel comfortable with, we said 70:30; 65:35, is probably where we are and 60:40 is where we’re going to go. The first part of your question was regarding contracting and payer reimbursement. I mean, we’re very pleased. I mean, you see the growth between public and private payers.
We’re very, very happy. Our patient hub, we leverage the patient hub. It’s proved very effective and it’s been very, very important in the getting new prescribers comfortable and providing patients with some assistance with their co-pays and with other expenses as it may relate to their ASCENIV or BIVIGAM infusions. Again, ASCENIV to the drug for the appropriate at-risk population. Again, they’re staying on drug. They have these chronic persistent infections that they wind up clearing, but they have underlying bronchiectasis, they have underlying COPD, they have underlying asthma. On the ASCENIV website, we go through a whole battery of all these different risk factors that patients may have. We’re spending a lot of time talking about ASCENIV here, but BIVIGAM is a high flyer.
I mean just as soon as it hits inventory, it’s out the door. I mean, we’ve got so many patients on BIVIGAM right now, and keeping up with demand is certainly a challenge. And I’m sure all my staff listening right now is chuckling, but we really can’t keep it stock. And we think a lot of this has to do with the fact that there’s multiple years now of clinical experience. Payers are seeing that they’re using less premedication with these patients and there’s less AEs. And there are a lot of interesting differentiating factors about our IG compared with our competitors. And we think that that’s really helping us manage the payer, work with the payer well, and from a contracting perspective, again we feel very, very pleased with our current payer address.
Gary Nachman: Okay. Great. And then, I mean with the consistent positive EBITDA now for a few quarters, and now the positive cash flow, at what point would you consider a debt refinancing? Is that high on your list? When you’re looking at –?
Adam Grossman: Gary, everything’s always high on my list. And I know you’ve been following the company. What is this, your third call, fourth call now?
Gary Nachman: Second call.
Adam Grossman: We’re always doing everything all the time. Let’s just say that I mean we’re not stupid. We see the markets there. Look at our financials, look at how they’ve changed and evolved. I mean we’re having conversations all the time with all types of people. This is the answer that we give to you, and this is the answer we give to all of our shareholders when we have our one-on-one calls, we’re always having conversations. And I’ll just say, stay tuned. We will do the right thing for this business, as I believe that we’ve done since its founding. And it can only improve from where we are. And I think that we finally flip the pages right, Brian, on EBITDA and on net income. And these are the things banks want to see.
Brian Lenz: Three quarters of positive EBITDA, total assets $350 million, first quarter of net income, positive cash flow. These are things that lenders, banks like to see, certainly. And we’re going to do everything we can, as Adam mentioned, to look at the cost of capital, look at this interest rate that has grown over the year. We have refinanced. We refinanced in May, lowered the overall interest rate 100 basis points. We certainly think there’s opportunities to do the same or if not more, in the future as our financials continue to improve over time.
Gary Nachman: Okay. Great. And last question is just on the patients. What are you doing specifically to try and activate patients? One, first in terms of the donor supply, just to get more donors, specifically for ASCENIV. Are you increasing your incentives now that you see what kind of return you’re getting? And then, just also in terms of patients that have been going through the IG treatment, maybe they could then make physicians aware as well. I’m curious if that’s an important piece of the puzzle. Thanks.
