Brian Lenz: Sure. Again, thanks for the question, Elliot, regarding the plasma centers and expenses, especially from an accounting standpoint. So as our centers ramp up, there are initial marketing operational expenditures, administrative expenditures that are charged to the P&L upfront as an expense. Now as those centers start collecting and they receive FDA approval, the plasma itself that’s collected is then allocated or earmarked charged to the balance sheet. So as all 10 centers are essentially up and running and collecting plasma now, as everyone knows, we have 8 FDA-approved centers. We expect to have the remaining 2 approved by the end of this year. Just this time last year, we had 6 operating centers and only 3 approved.
At the end of 2022, we had 9 operating centers and 7 approved, and we just opened up our tenth center this quarter. So I would expect operating expenditures for the plasma centers to decrease because, as those centers now are all online, we’re going to be able to continue to capitalize the plasma that we’re collecting into inventory. A lot of those start-up costs have already been borne or incurred into those centers.
Elliot Wilbur: Okay. And not to delve too deep into the minutia, but we do get the question a lot as people are looking at the company’s margin targets versus some of the peer group. But if I think about the plasma center expenses being roughly $5 million a quarter, so that will not entirely go away. There’ll still be some level of expenditure. But some substantial portion of that will just get rolled into inventory, does that make sense?
Brian Lenz: That’s correct. That’s correct, Elliot. So I wouldn’t take the $5 million as a forecaster from the standpoint of throwing out quarter over quarter over quarter to be $20 million by the end of the year. As I mentioned, you could consider it me costs. Those costs have already been expensed in the fourth quarter. So when you’re thinking about the first quarter of 2023, because now all 10 centers are operating in the first quarter of ’23, a lot of those expenditures have already been borne in the fourth quarter of ’22. And those expenditures in the first quarter of ’23 will be capitalized to inventory as our plasma collection costs directly into raw material inventories for production of, obviously, BIVIGAM, ASCENIV and Nabi.
Is it going to step down materially? I mean we haven’t given singular guidance on individual operating expenditures. But I would say that the $5 million would step down quarter-over-quarter in a meaningful enough way that from a contribution standpoint, inventory will step up and stay within the range of $150 million to $175 million, as we said in the past. And then as we’re thinking about how does that impact the overall profitability of the company, well, that’s just going to help accelerate the profitability because the centers are all online, operating efficiently, and the majority of the costs will be capitalized to inventory. There’ll still be administrative operating expenditures for the centers, don’t get me wrong, it’s not going to go to zero.
But there are overhead expenditures and just continuing operational expenditures. But when you think about it, the majority of those expenses will be capitalized to inventory.
Elliot Wilbur: Okay. A couple of questions for Adam as well. Adam, can you just talk a little bit about what you’re seeing on the demand side in terms of visibility on pull-through, whether you think, based on current production volumes, you’re in a position to be competing for new customers? Or do you think the majority of finished product is going to go to existing customers? And then if you could share any anecdotes that you may be hearing in terms of reimbursement and persistence of therapy on ASCENIV, whether or not patients that start on ASCENIV are able to continue on it. Or are we seeing maybe an increase in cycling back to standard IVIG products?
