ThermoGenesis Holdings, Inc. (NASDAQ:THMO) Q1 2020 Earnings Conference Call - Final Transcript
May 14, 2020 • 04:30 pm ET
Ladies and gentlemen, we'll now begin the question and answer session. [Operator Instructions].
And our first question today comes from Sean Lee from H.C. Wainwright. Please go ahead with your question.
Good afternoon, Chris and Jeff. And thanks for taking my questions. My first question is on the company's existing businesses. So in 2019 you guys find a corpus of Hyperion with Corning and that was expected to become a big driver of the company's growth over time. So I was wondering how has that turned out so far? Has that been significantly impacted by the COVID-19 pandemic as well or is it progressing as planned?
Yes okay. Thanks, Sean for bringing this question. So as people are knowing that in 2019, we signed a global distribution with Corning to distribute our X-Series products. And we expect to launch this product actually this year, but just like everybody is impact by the sudden COVID-19 pandemic, Corning being headquartered in the State of New York is certainly hit, I guess, pretty hard.
So with all the social distancing and home officing ongoing, although we are still keeping the line open to facilitate all the marketing preparation and needs. Certainly, we can see a slowdown in the activity in that front.
But I think with -- globally the entire business start to reopen through a different region, we are cautiously optimistic about this entire collaboration.
Thanks for the additional color. Now moving onto the COVID-19 diagnostic, so after the FDA has approved it for marketing in April, I was just wondering whether you had any orders come in or whether you've seen a lot of inbound interest and what exactly is the company's commercial strategy for the product? Would you be -- to try to market it yourself or would you be looking for regional distributors?
Yes, okay. With regards to our COVID-19 diagnostic kit, our strategy is mainly going to distribute this through distribution channels. So at this moment, we do not anticipate to build a direct in-house team on that. We do have received various interests and from various different size of potential orders. So as we really -- just released in this earning call, we start to ship in early May and that we start to feel some of these pre-orders and incoming orders.
Just a reminder to everybody, I think although the potential market size, we can see, it could be significant, but also this -- have been impacted by various risks and that are including somewhat we could foresee and also some risks that we cannot initially foresee. That are including the availability of labor workforces and availability of our global shipping logistics and so on.
So when we are getting close to marketing this within US also globally, we got to mitigate through all those impacts throughout the world, and some of those impact, including shipping logistics. We see could potentially impact our delivery as well. But the good thing is we are ready start shipping