VolitionRx Limited (NYSE:VNRX) Third Quarter 2022 Results Conference Call November 15, 2022 08:30 AMm. ET
Participating companies
Scott Powell – IR
Cameron Reynolds – Founder, Group Chief Executive Officer
Tom Butera – Executive Director, Volition Veterinary
Terig Hughes – Chief Financial Officer
Conference Call Participants
Michael Okunewitch – Maxim Group
Bruce Jackson – The reference company
Steven Ralston-Zacks
Operator
Good morning and gentlemen. Thank you for staying here. Welcome to VolitionRx Limited’s Third Quarter 2022 earnings conference call. [Operator Instructions] This convention is recorded today, November 15, 2022.
Now I’d like to speak with Scott Powell, executive vice president of investor relations. Continue.
Scott Powell
Thank you, trader and welcome everyone to today’s earnings convention call for VolitionRx Limited. This call will cover Volition’s monetary and operating effects for the third quarter of 2022, as well as a discussion of our recent operations and key next steps. After our comments are ready, we will open the convention call to a response session.
Also on our call are Mr. Cameron Reynolds, President and Chief Executive Officer; Dr. Tom Butera, Managing Director of our subsidiary Volition Veterinary; and Mr. Terig Hughes, Chief Financial Officer.
Before we begin, I would like to remind everyone that some of the data discussed in this convention call will come with forward-looking statements that are covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on our ideals and assumptions we have used are based on data that has already been provided to us. Because those statements reflect our existing outlook regarding long-term events, such statements involve threats, uncertainties and assumptions, actual long-term effects may vary materially depending on a number of points that could cause actual effects or occasions to differ materially from long-term effects, functionality or effects. As expressed or implied in those statements, we have learned of various threat points related to our operations in our most recent Annual Report on Form 10-K, our quarterly reports on Form 10-Q and other filings with the Securities and Exchange Commission.
We assume no legal responsibility to update any forward-looking statements made in this convention call. I would now like to hand over to our President and CEO, Mr. Cameron Reynolds. Cameron?
Cameron Reynolds
Thank you Scott and thank you all for participating in Volition’s third quarter 2022 earnings call today. As always, we appreciate your time given the peak earnings call season. We will start the call with Dr. Tom Butera, CEO of Volition. Vet to discuss the implementation of Nu. Q Vet through our global source and licensing agreements, and then with Terig, who will generate a monetary report. pillars, Nu. Q NET, as well as a brief update on Nu. Q. So, without further ado, I’ll pass Tom an update on what has been an incredibly exciting time for our veterinary team.
Tom Butera
Thank you very much, Cameron. Et good morning to all. I am pleased to say that we have continued to take wonderful steps in our project to make screening available and affordable to facilitate early detection for veterinarians and puppy owners around the world. Last month, we were pleased to announce the signing of a global source agreement with a market leader in puppy fitness. As a component of the source agreement, we are executing with a market-leading company as a global provider of the new Nu. Q Vet cancer test through its extensive network of reference laboratories for animal fitness cancer indications. This is an innovative agreement that, combined with our agreements concluded in the past, means that the Nu. Q Vet cancer test will be available on the mass market. I am certainly very pleased that this agreement has been reached. and that groups are now running on a product launch. I look forward to offering more updates in the near future.
And speaking of product launches, after the end of the quarter, we are very happy to announce the launch of our Nu. Q Vet Cancer test in the United States and the upcoming launch in Europe through Heska Cooperation, also one of the world leaders. . providers of complex veterinary solutions. diagnoses through Heska’s veterinary diagnostic laboratories. I just need to reiterate that this is the launch through Heska Reference Labs. This means that any veterinarian in the United States, the largest puppy grooming market in the world, can now order the Nu. Q Vet cancer checkup for their clients. . Interestingly, this news broke the morning of the New York Pet Show. And our stand with the Heska team. And we mutually enjoy a lot of interest and interaction with the vets and vet techs at the show. And it’s not just the United States. The check will soon be available through Skill, Heska’s European subsidiary. Therefore, we will also officially launch in Europe. I’m here in London, England this week and at the London Vet Show, so expect to generate continued awareness and significant interest when you’re done. The launch of Heska Reference Labs Network Paints is a significant achievement in our transformational paints in combination as we move towards the launch of Heska’s flagship point-of-care solution, also scheduled for early 2023.
I know that several other people interviewed at this launch requested payment for one of the milestones of the Heska agreement. These don’t come with reference lab releases in the U. S. But in the schedule that I will articulate below. Volition earned an upfront payment of $10 million by signing the deal. This payment will be identified as a source of income during the useful life of the product at the point of care. Volition will also get up to $18 million based on the finishing touch. of short- and medium-term milestones, $6. 5 million similar to the first point-of-care test product advertising sale and $6. 5 million similar to the first point-of-care dog surveillance product ad sale. which we expect to obtain in the first part of 2023 with the final payment of $ 5 million due to the publication of the clinical use in cats maximum maximum probably in early 2024.
In addition to those milestone payments, and the maximum probably especially above those payments, there is the ongoing benefit Volition expects to realize with respect to the payment of kits for the particular reference laboratory market, and for the source of key parts. for the exclusive point-of-care product Heska will bring to marketplaceplaceplace. Remember that every time Heska sells a test, Volition will make money, either by selling a kit or by selling a key component. And this is a long-term deal with incredible market place potential, where we expect millions of tests to be sold. Therefore, we expect Volition’s continued gains to be very significant. And outside of the global finishes I talked about earlier, we are making great strides with other distributors, especially in Europe, where the market is quite fragmented, and we hope to launch with at least one or another company. before the end of the year. This will bring the total to five licensees, whether global or more local, running our trial, a wonderful result and significant progress this year.
I use a team analogy when thinking about Volition, their 12 years of hard paints, and where we are today. And for our geek friends in the area, I think like this. Our rocket is ready. We’re at the launch pad, yes the tracker took a while to launch the rocket. But we are there now. All systems go. This is an incredibly exciting and rewarding achievement for the company. And we thank our long-term investors for their trust in us. We have already talked about the business opportunity. But to temporarily recap, just to remind you, there are approximately 84 million significant other dogs in the United States. And just under 50% of dogs will have at least one vet visit each year, which Volition says will provide a great opportunity to screen dogs older than seven and cancer-risk breeds as young as four. And it is worth noting that there are more than 30 breeds known to be the greatest threat. Taking Nu. Q Vet’s cancer screening during annual wellness calls can help detect cancer at an early stage, even before symptoms appear, giving you a greater chance for effective cure and recovery. more productive results. And that’s why we’re all here to help save lives and improve outcomes for millions of people and animals around the world. So that’s the announcement update from Nu. Q Vet and in line with maybe before moving on to the R&D updates I could say a big thank you to the entire team at Volition and volition vet. It took hard work and determination on the part of each and every member of this society to get this rocket to this launch pad. Thanks again for your solidarity commitment. And above all, thank you for your innovation.
From R’s perspective
We look forward to providing additional updates and sharing effects in due course. In short, I couldn’t be happier with the way marketing has gone this year. And we expect to have a lot of news about very significant product launches in early 2023. And with that, I’m now going to pass the floor to Terig for the monetary report. Terig?
Terig Hughes
Thank you so much Tom. And thank you all for participating in our earnings call today. I will now provide a summary of the key monetary effects for the quarter ended September 30, 2022. We ended the quarter with cash and cash equivalents of approximately $16. 4 million, compared to $16. 7 million at the end of the current quarter and $20. 6 million at the end. At the end of 2021. During this quarter, we earned approximately $6. 4 million in net of subscription fees and expenses through a public provision of our ordinary percentages. In addition, we secured an additional $1. 5 million undiluted in capital threats plus capital invested in Belgium to fund an early access program to Volition’s Nu. Q product portfolio at key sites in the EU, UK and US. U. S. At the end of September, we took $1 million of that funding. For your information, in the third quarter, we did not make any sales of our non-unusual percentages under the momentary market percentage distribution program.
We continue to fully manage our expenses, with net money spent on activities consistent with an average of approximately $2. 3 million per month in the 3 months to the end of September. Reported year-to-date profit for 2022 was around $187,000 compared to $76,000 for the same constant period last year. This gain excludes receipt of a $10 million milestone initial payment from Heska Corporation earned in March. It should be noted that this payment has been earned in its entirety and is not refundable, has not been identified as profit for the consistent period and has been identified as deferred profit in accordance with the applicable accounting standard. As Tom mentioned earlier, it will be identified as profit over the life of the product at the point of service that has not yet been released. It was just the first of several major bills expected under Heska’s contract. We anticipate the next two milestones will be reached and invoices totaling $13 million will be paid through Heska in the first part of 2023, with final invoices of $5 million after the release of clinical use knowledge in maximum cats. Probably early 2024.
Given our current balance sheet and expected investment in the short and medium term, we are confident that we have the resources to achieve our long-term goals. Launch of the most productive products planned for 2023. As we have talked about in previous calls, given the product line, we can build on our proprietary nucleosomal platform. We believe our addressable markets are very important, especially in the short term with Nu. Q Vet and Nu. Q NETs and I will be happy to discuss the general addressable market in long-term calls if helpful. Now I’ll pass it on to Cameron for additional business updates. Cameron?
Cameron Reynolds
Thank you Terig. Et thank you Tom for those full updates. Good step forward indeed. I’ll conclude the call today with updates on two other product pillars, Nu. Q NET and Nu. Q Cancer. At the beginning of the third trimester and highlighting our latest call, we sponsored a GenomeWeb presented by Dr. Andrew Aswani at Guy’s and St Thomas’ University Hospital London, entitled The Promise of Neutrophil Extracellular Traps, NETS as Biomarkers in Inflammatory Diseases. This webinar is the timing of a series that boasted incredibly good attendance and an engaged audience. To view on demand, stop by the GenomeWeb website.
Also in the third quarter, in collaboration with researchers from the University of Namur and PolyBlood in Belgium, we published a clinical paper titled NETosis and Nucleosome Biomarkers in Septic Shock and Critical COVID-19 patients and Observational Studies, as well as a poster titled Evaluation and Comparison of Biomarkers of NETosis in patients with sepsis and COVID-19. In the Congress of the International Society of Thrombosis and Haemostasis, ISDH in July. After the end of the quarter, we also contributed knowledge at the International Symposium on Infection in Critical Patients and the International Sepsis Forum. The main effects provided are that NETosis levels, measured through our Nu. Q NET verification, are very high in sepsis. And also, that the effects of our controls are very well correlated with the severity of the disease. Disease severity is recently assessed using the Organ Failure Sequential Assessment SOFA Score. This score is evaluated based on six separate organ functions, lung, cardiovascular, liver, kidney, coagulation formula, and brain. Our control provides only one regimen blood test result correlated with SOFA score, with something very attractive to clinicians. on the forum These meetings were one of the highlights of 2022 with many team members keen to expand a network of key thought leaders, as well as initiate discussions with potential distribution and licensing partners. In fact, I’m pleased to announce that we have started advertising discussions with the major NETosis players and are making great strides with a market access program. Lately we have two Centers of Excellence actively using Nu. Q suites with the other two additional legal review of contract terms. And we know of several other sites that we hope to integrate in 2023. These multiple centers of excellence will allow us to refine express indications useful for our long-term advertising partners and regulatory controls.
And speaking of trials, in Q3 we designated DXOCRO’s clinical research organizations to adopt clinical validation and progression studies of our Nu. Q portfolio of products in the United States. DXOCRO will conduct large-scale discovery studies at multiple sites in the United States using Volition’s Nu. Q NETs and Nu. Q Cancer assays to discover clinical application in sepsis and cancer. I am very pleased to say that they have made significant progress in building sites with the 3 clinical studies. And I’m very pleased to announce today that we expect our first patients to enroll in the study in the coming weeks. We anticipate that long-term studies will read into the decided intended use claims of the check in order to obtain authorization, clearance, or approval from the US Food and Drug Administration, the FDA, and to allow marketing of the check in the USA. These multi-site studies will help us demonstrate how a generation of nucleosomes can directly benefit patients and aid our application to the FDA’s Innovative Devices Program scheduled for early next year, and a presubmission also scheduled for 2023. .
Many thanks to Sharon Ballesteros and the team that spearheaded our study efforts in the United States. It’s great to launch this project. We are also very pleased to be working with one of the world’s leading cancer research institutes, MD Anderson. As previously announced in the third quarter, we are sponsoring studies with the University of Texas MD Anderson Cancer Center to evaluate the role of neutrophil extracellular traps, NETS, in cancer patients with sepsis. Cancer patients have weakened immune systems and are surprisingly 10 times more likely to get sepsis, and are also more likely to die if they develop it. Therefore, it is critical that clinicians and cancer patients at risk of sepsis minimize treatment early and rapidly to improve patient outcomes. Our study with MD Anderson is an important study evaluating the potential application of Nu. Q NETs in the management of cancer patients at risk of sepsis. And we’re excited to collaborate on these studies and look forward to sharing more updates and effects in the future.
And finally, and keep us posted on the news next week. We have been invited to participate in a government-supported prospective study to assess the functionality of blood biomarkers in the early detection of lung cancer with Hospices Civils de Lyon, HCL, the largest hospital in France at the moment, the Lyonnais is the initiative for the initiation of lung cancer screening, ILYAD is a large-scale clinical study comparing the visibility of a lung cancer screening program and the effectiveness of screening. The ILYAD exam will compare the functionality of Volition’s Nu. Q test as a biomarker for the early detection of lung cancer, when used alone and in conjunction with a CT scan over the next year. Lung cancer is tragically the most common cause of cancer death worldwide, with 1. 8 million cases each year. We know that screening saves lives and that there is a real unmet need for lung cancer screening around the world. Our HCL colleagues have identified the need and we are proud to be part of their pioneering ILYAD study in France with the ultimate goal of creating a national screening program. More than 400 subjects are expected to participate in the study over the next year, which will encompass a lung cancer awareness and smoking cessation campaign, individual intervention and screening opportunities. And actually, I’m very happy to announce that the first 20 subjects have already been recruited. So, genuinely, an exciting quarter here at will for Nu. Q NET with our European regulatory hurdle being met, compelling data released, serious implementation of our go-to-market program. And indeed, our publicity discussions with the major players in this box are also to publicize our clinical and regulatory program in the United States and to release the government study on lung cancer screening in France.
After many years of hard work, the tracker has delivered our rocket to the launch pad. And we’re excited that our Nu. Q Vet cancer screening test is available, or will soon be available, under five global and local sourcing and licensing agreements. I am surely delighted with the progress we have made in the key pillar of the business as we transition from a purely studies and progression company to a company with a wide range of products. This is an exciting and developing component of our business with a transparent outlook to generate significant profits for the business in terms of milestone bills and ongoing profit streams as some have explained for promo kits and key factors not just for fitnesscare and [inaudible] but also Sage Healthcare in Singapore, Texas GI Lab, DNAtech in Portugal and some other global leader in the puppy fitness market recently announced. And during this call, we’re close, I need to thank you all for joining us today. Along with the rest of the board, and indeed the entire company, I look forward to sharing more news related to Nu. Q Vet and other key new pillars, as well as the effects of our major clinical studies, publications, and milestones in the coming months. . . and borders In fact, I think we’re in an incredibly strong position to commercialize our Nu. Q platform in many areas. Volition actually works through Nu. Q. I couldn’t be more positive about our paintings at the center of epigenetics. And I’m excited for the next phase of our journey. I am satisfied to answer the questions. Operator?
Q&A session
Operator
[Operator Instructions]
The first comes from Michael Okunewitch of Maxim Group.
Michael Okunewbruja
Hi guys, thanks for answering my questions. And congratulations. It seems that a lot of progress has been made in recent months. So I guess first I would like to know a little more about the ILYAD exam and how it differs specifically from the lung paintings you did in Asia?And then, what are the ones for this exam?Do you use any of your CE marking tests?And can it potentially lead to an advertising product if the resulting knowledge is positive?I know it is in several places.
Cameron Reynolds
Yes, very smart question. Notoriously, we had some very intelligent knowledge of Asia, which we talked about a lot. And, notoriously, during the pandemic, there have been riots in other countries there. It is therefore smart to have a concentrate in Europe very close to home. We work a lot with the university in France. They are certainly world leaders in what they do. They did our tests and saw how they work. And now they’re very excited to see if we can add to the national testing and national screening program. So, it’s based on the tests they’re testing, what the final product is, but it may come with some of what is ultimately FEMA that will be taken into account through the exam. So, the exam they are conducting deserves to finish next year, until the end of next year. And the goal, if it goes as well as they would like, would be added to the national screening program. less in France.
So, the government is looking to do something about it. So, we’re hopeful, we’ve noticed some smart effects like them with what we’re doing, like we’ve done in Asia and adding it to their test, and we’re going to see how it goes. But very encouraging. Absolutely the most productive global thought leaders in this area, a wonderful study, and we are pleased to be a part of it, and we deserve to have the first circular or the end until the end of next year.
Michael Okunewbruja
Oh yes, thank you for that. And then, in relation to the Oncovet exam, is this a program that you asked them to do?Or is it something where they looked at the possibility of Nu. Q and then contacted him to take the exam?
Cameron Reynolds
Thomas?
Tom Butera
Just jump on that, no Dr. Benoit contacted us because he was very interested in our platform, and also his staff, he also has a number of recommendations from oncologists there, we are all very interested and extremely happy and flattered by his reach. .
Michael Okunewbruja
Well, thanks for that. And then one last one. Sorry to move on.
Cameron Reynolds
I think it’s indicative and Tom can determine it from his point of view. We do a lot of demonstrations and veterinary interest, the incoming interest has certainly been fantastic. Tom, do you need to communicate with incoming interest?Is this a general point of interest about the people component?
Tom Butera
Yeah, I mean, just one last word for Mike about Dr. Benoit, he’s also the pre-aspect of Esvonc. That’s where he first contacted us, Esvonc is the European Veterinary Oncology group, which is similar to the American VCS group, of which Dr. Robles is actually the preaspectant and our lead physician at Volition. So we continue to attend, this week I’m in London attending the London Vet Show, we continue to spend a lot of time in Europe and nationally and the interest of my fellow vets in oncology as well as the GP aspect is pretty strong there’s massive interest everywhere we go, and we’re invited to, you know, a lot of the conversations and a lot of the presentations that we do, even the ones that are here in Europe right now, I’m personally invited. , and [inaudible] was invited to speak, we just spoke in the Netherlands, we’re going to Portugal to speak there. Those come from invitations to us personally, as they were last summer in reference to Germany and France as well. Therefore, we are extremely happy and once again flattered by the attention paid to the test.
Michael Okunewbruja
Gracias. De fact, it’s exciting to see how veterinary systems have gone. Just one last follow-up to this question, and then I’ll go back to the queue. For this $5 million milestone from Heska once you get a publication about cats, do you suspect that a publication of the Oncovet study, given that it includes cats, may end this milestone?
Cameron Reynolds
Yes, we are working, we are succeeding in a notorious way, also to get more felines. And also, we appreciate the fact that we managed to get more KOL from the studies we do. We’ll take a look to see and align the data and the studies they do with studies being conducted in the United States. So again, parallel studies, elsewhere, to validate our tests in cats will clearly give much more credibility to the price of our test.
Tom Butera
And we strongly hope that the last point will succeed in the critical mass we want to get the product really off the ground. We’ve had fantastic partnerships with the GI Lab in Texas and Singapore, but they’re relatively small labs, and it never happens to be very common to go through them. But with Heska’s possible short-term launches. And the other very big company, I think it will generate demand or generate demand, and they will do it with each other. And so we are premiering, we think, at the point of care and in the laboratory, reference laboratories. This way we will have everything covered, and the fantastic call that the veterinary team has generated. Hopefully we’re just passing through to learn about the offer from large corporations and we actually hope to start taking off once the two big corporations in particular launch, which is expected to be early next year.
Cameron Reynolds
And something to remember, the 84 million dogs in the United States. There are only about 90 million cats. And we haven’t even touched the prospective opportunity that exists. So, obviously, the analytical studies we do on the feline will also be massive for us.
Operator
Next comes from Bruce Jackson of The Benchmark Company.
Bruce Jackson
Hello, hello and thank you for answering my questions. Some follow-up questions about the ILYAD study. Do you compare modalities other than CT and Nu. Q?
Cameron Reynolds
Not that I knew, no, from what I understood, and this was the study I evolved into, but it was where the only blood test and a CT scan and then other possible lifestyle options and spaces still and smoking are still within my reach. knowledge, the only blood checks there. So I hope we can play a very important role. Because I mean, as you know, there’s no other blood check to help. That is something we have high hopes for.
Bruce Jackson
And then, in terms of how it’s going, they finalize registration at the end of 2023. Tell us what happens after that in terms of the review era and what your plan is in terms of the next national screening guidelines. be on site.
Cameron Reynolds
They are looking for a very complete strategy. I think it was outlined in the press release a little bit, between the smoking mitigation, the CT scans, the cell centers, where they can scan and check your blood, a very comprehensive program, because as you know, BruceArray lung cancer is incredibly fatal and it happens too. quickly. So they’re looking for a complete program. And hopefully we find out after this trial is over to be part of the formula for what they’re doing. So that will be the course of the test and the information that we will be waiting for until the end of next year. And then the government will make a decision on what the package is, who the government has been, it can be done quite quickly. They put a lot of resources into it. And they’re very excited to see how our Nu. Q platform works, given the knowledge that we’ve had in London, other cancers, they actually hope that we can be of use to them. And I think that’s very smart now that we have a fantastic base in the veterinary space, a very smart base now at NETosis. And it’s also very encouraging to be back in human cancer as actively in Europe now, as we have been in Asia. And it’s not like the DXOCRO test also tests for human cancers, especially liquid tumors. So we have a lot to do. And as Tom said, the rocket on the launch pad, and now we have so many things, in working order. And we strongly expect the vet market to respond to demand to grow strongly once the big corporations launch, which we hope will happen soon.
Bruce Jackson
It is ok! And then move to the veterinary area of Terig, in the milestones of Heska, the initial payment is amortized, they are long-term milestones that will also be amortized over a certain period of time, or they would be lump sum invoices for you.
Terig Hughes
We will get them as lump sum payments, which we can use in cash, but they will have exactly the same treatment as the first payment. They will be amortized over the life of the product from the point of view of income.
Bruce Jackson
And then, with the new agreements just implemented, how are they going to generate revenue?
Terig Hughes
So for the new deal, we’re going to get paid every time they sell a test. In the same way as every time Heska sells a test, Heska, where we get paid every time Heska sells a test. Similarly, every time this new company sells a test, we get paid.
Cameron Reynolds
One thing to explain here, Bruce, Heska, fantastic teammate, and got kicked out of the service point. But what we’re looking to do in the reference labs, as you can see, we’ve got a ton of reference labs and we’re expecting a lot more, we actually need as many corporations promoting the product as you can imagine. Because we get a very large and very moderate percentage of the profits from all the trades we are contemplating doing. So we don’t yet expect to get giant bills up front on the non-exclusive reference lab space. The most important thing for us with them is that we have a broad policy with the largest corporations that offer our products. Because as Tom said, he points out that there are tens of millions of dogs. We know our target market only in the United States. So we need each and every vets to have the ability to test on as many platforms as you can imagine. And we’re looking to get a similar layout imaginable for each and every one in terms of how much we’re consistent with the check. So, they’re very lucrative for us, especially if they’re successful in that potential, we hope they’re successful in that.
Operator
Next up comes from Steven Ralston with Zacks.
Steven Ralston
If we can locate ourselves, let’s talk about Nu. Q Discover. There was a. . . You had a contract signal that had a total annual price of $200,000 and they were happening in the fourth quarter, momentary part of this year. Did you also say that it has a tendency to be lumpy?
Cameron Reynolds
Yeah, it’s lumpy and so it’s lumpy, however, Discover, we had a bunch of that as past-due incoming interest last year, early this year. And as you rightly pointed out now we’ve shut them all down testing is going very very well all other uses and it’s great to see our platform being used in so many other tactics through other corporations now we’re going to use a term cricket we have on the front foot. And we make outgoing interest to increase demand. So we hope to see even more next year. So in the end it turned out very well, the corporations that we signed, the painting is going very well, in a very wide variety of areas. It’s lumpy, and we’ll be expecting a lot more. And now we’ve hired some team members that will literally help us step up and get out there. Because there are potentially many other consumers that we think very highly of, we’ve been very active now and expect that to come to fruition more next year, with a variety of new contracts in the Nu. Q Discover area, as well as perhaps a follow-up to those that we have already found.
Steven Ralston
Merci. Au recent quarters in 10-Q, it added a number of workers in certain areas. And I noticed, at least in my model, that their total spending on workers, R
Cameron Reynolds
Terig?
Terig Hughes
So, with G
Steven Ralston
Very well. Thank you.
Cameron Reynolds
Steven, as a company, has taken care to keep our management prices as low as possible. And to rent new people in mind, so to speak, to make sure, as Terig said, that production we can succeed in capacity, we expect the strong call to build next year. Therefore, we must be able to meet the offer for that. And also our groups in product marketing and product development. We’re focusing on our existing products very, very conscientiously now, as you can see, and we’re also looking to stay at the forefront of epigenetics. So we did some studies on core capture and other work. So we managed to do a lot of things with little expense, given our prudence. And the adaptability of our platform is indeed remarkable. We do everything we do with the same precise platform. So I think in many tactics we have a very unique proposition.
Steven Ralston
Merci. Et my last question, could you provide an update on the qualification studies conducted through National Taiwan University?
Cameron Reynolds
Yes, so we’ve exchanged quite a bit with them. Obviously, there have been disorders in Asia. And we have done a lot of paintings in Taiwan and China, we will provide more updates as they arrive. Justin has worked extensively with them on colorectal and pulmonary. And once we complete the updates and how it will look in the long run for the ones we update. As you can see, the lung in particular is fine. And we’re going to completely update the following when we have more data on the conferences, but we’re very, very satisfied with the partnerships we’ve had there. And we might have expected to get more paintings in Asia, but it’s just starting to open now after all pandemic lockdowns ended. So it will collect a lot in other fields. But our team has done a wonderful job led by Jasmine to keep everything running during those very difficult times due to the pandemic lockdown.
Operator
[Operator Instructions]
There are no more questions at this time. I would like to speak to Cameron Reynolds for his closing remarks. Keep going, sir.
Cameron Reynolds
Once again, thank you all for joining our call and I think the next few months are going to be very exciting as we launch a diversity of products in the veterinary area and make great strides, adding the studies in the US. The U. S. Department of Health and NETosis and we have complex all humans on the cancer side, it’s getting more and more exciting, and soon we’ll have some very important releases, which would actually help generate very growing revenue. Therefore, it will be a very exciting time. So, stay in touch and anticipate the next updates. Thank you for your time.
Operator
That concludes the convening of today’s convention. You can disconnect your lines at this time. Thank you for your participation. And have a day.