Yale Jen: Right. And just talking about the human study that currently still — it is in the single agent [indiscernible]. So that’s very helpful. And thanks a lot. I really appreciate, and congrats on the progress and looking forward to see the figures next — not too long from now.
Steve Lisi: Thanks, Yale. Appreciate it.
Operator: [Operator Instructions] Our next question comes from the line of Suraj Kalia with Oppenheimer. Please proceed with your question.
Suraj Kalia: Steve, can you hear me all right?
Steve Lisi: Yes, I can, Suraj.
Suraj Kalia: Perfect. Good afternoon, everyone. So couple of questions, one for Duncan and one for you, Steve. So, Duncan, let me start out with you. So appreciate some of the color you all have provided on a contract. Maybe if you could expand on it a little bit more? Like, what does the contract really mean in terms of exclusivity, average revenues, utilization? Is 600,000 the right bogey to think about? And the sub part of that question, Duncan, would be 150 demos for PH, consensus estimate for the next year is 19 million from what I see, is the right way to think about it? The bogey you need is at least, let’s say, 35 to 40 sites.
Steve Lisi: Yes, Suraj. I used 600,000 as an example. That’s got nothing to do with anything. I could have said 300,000. I could have said 120,000 and said 10,000 a month. I mean, that was just simple math exercise. I wouldn’t read into that number at all in any way shape or form. And hospital contracts, of course, mean exclusivity, we have the contract with the hospital. We’re the only one there. And our competitors where they have their contracts, they’re the only player with nitric oxide in those hospitals. That’s the game. There’s no dual supply in the nitric oxide market. You don’t have two separate machines in the same hospital. It’s quite unique in the medical device arena. So — and as for size of contracts, we’ve said in the past that with this market, you got about 1,000 hospitals, 1,100 hospitals or so.
It’s a $350 million, $400 million market. You can do the average contract per hospital if you really want to do the math. So that’s the best way to look at it. I mean, we’ve been pretty clear on number of hospital size of the market. You can back into an average contract size. So please don’t take the numbers I gave you in any way to mean that. So, Duncan, did you want to comment on any of the other points?
Duncan Fatkin: Yes. I think that the — so, Steve obviously explained the dynamics, but from a sort of contractual point of view specifically, I think we said earlier, it’s going to be spread over the annual monthly rate, it’s going to be a twelfth of the contracts and the contracts are going to very much depend on the size of hospitals. So unfortunately, it’s kind of you’ve seen one hospital and you’ve seen one hospital. So, it really depends on how they land. It’s hard to predict what the average for us will be because so many variables in each specific hospital. But the good news is once you get them, it’s a little bit like an annuity kind of like builds on itself and you don’t have to kind of repeat until the contract is up. So, as we grow, that growth will start to compound.
