Protalix BioTherapeutics, Inc. (AMEX:PLX) Q2 2023 Earnings Call Transcript

Unidentified Analyst: Good morning. Just a point of clarification, if I may, on the revenue from Elfabrio, the $11 million, was that primarily manufacturing revenue or was there royalty revenue included in that? thank you.

Eyal Rubin: Thank you for the question. So as I explained, I mean, I’ll do it again. It’s not manufacturing. We have only two streams of revenue on Elfabrio. The first one is royalties means drive the resources to Chiesi, and we’re getting royalties at a percent of the list price. And the second one, obviously is milestones, both commercial and regulatory. When we recorded the revenue, obviously, there’s a finished products that were sold to Chiesi. They will turn around, obviously, and sell it to the market. But at this point, as I mentioned, I guess that, that’s going to be the case in the next two years or so while they are building their inventory. So we’re going to actually record sales of drug product to Chiesi. That’s going to be the revenue we’re going to be recording. And in the future, once the inventory change is going to be minimal, then the real royalties calculation and reconciliation is going to start taking place.

Unidentified Analyst: Great, thank you for that clarification. Appreciate it.

Dror Bashan: Thank you.

Operator: [Operator Instructions]. There are no more questions at this time. I would like to turn the conference back over to management for closing comments.

Dror Bashan: So this is Dror and I’d like to thank everybody for their time. And again, we are very happy with the results and the evolvement of the company. Happy that we have Elfabrio available both — in both continents for the benefit of the patients and their families, and looking forward to speaking with you next time. Thank you very much.

Operator: Thank you. This will conclude today’s conference. You may disconnect your lines at this time, and thank you for your participation.