OpGen, Inc. (NASDAQ:OPGN) Q4 2022 Earnings Call Transcript

Yi Chen: Okay. Do you expect the hospitals product review time frame to be shortened significantly this year?

Oliver Schacht: It’s certainly a sincere hope it will boil down to how fast budgets post COVID and processes post COVID. But again, you have hospitals, and this is true not just all across the U.S., it’s true all across Europe and rest of world, you have hospitals that have a backlog of capital expenditure and new technology, new platforms, anything outside of COVID was basically put on hold for 2.5, three years. So we’ll need to see how quickly things normalize. Clearly, assuming we stay where we are today with sort of living in a post-pandemic world that should bode well for things to normalize and get back to a faster turnaround time. But how long that’s going to take? Again, that would be pure speculation at this stage.

Yi Chen: Got it. And lastly, could you comment on the trend of gross margin going forward? Thank you.

Oliver Schacht: Yes. Again, we don’t foresee any changes to the sort of — at scale, you’d expect gross margins to be sort of in the 60% to 70% range for consumables. No change from that angle. Obviously, when you look at the numbers, you’ll obviously always have to back out any changes in inventory reserves, et cetera. So it’s not going to be particularly easy to sort of find the true underlying individual product margins if you purely look at the P&L and the gross margin shown there. But over time, again, no change in the anticipated margin profile.

Yi Chen: Okay. Thank you.

Operator: That’s all the time we have today. I will now turn the call back to Oliver for closing remarks.

Oliver Schacht: Well, thank you, everyone, for joining today. Please visit the Investors section of our website as well as our SEC filings for updates on the company. Definitely, some exciting news flow coming up. Thank you all very much and look forward to continuing the dialogue. Thank you.

Operator: This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.