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Executives

Mathew Haines - Director of Corporate Communications

Robert Taub - President and Chief Executive Officer

Ana Stancic - Executive Vice President and Chief Financial Officer

Nissim Mashiach - Executive Vice President and Chief Operating Officer

Analysts

Eli Kammerman - Cowen & Company

Angela Wood - CIBC World Market

Matthew Dodds - Citi

Kevin Degeeter - Oppenheimer

Jonathan Aschoff - Brean Murray and Carret

Junaid Husain - Soleil Securities

OMRIX Biopharmaceuticals, Inc. (OMRI) Q3 2007 Earnings Call November 5, 2007 11:00 AM ET

Operator

Good day, ladies and gentlemen, and welcome to the Third Quarter 2007 OMRIX Biopharmaceuticals Earnings Conference Call. My name is Lacy and I’ll be your operator for today’s call. At this time, all participants are in a listen-only mode. We will conduct a question-and-answer session towards the end of this conference (Operator Instructions).

As a reminder this conference is being recorded for replay purposes.

I would now like to turn the presentation over to our host Mathew Haines, Director of Corporate Communications. Please proceed.

Mathew Haines

Thank you, and good morning. I’m Mathew Haines; Director of Corporate Communications for OMRIX. Before we begin, I’d like to remind you that this call contains forward-looking statement. Forward-looking statements provide the Company’s current expectations or forecast of future events. Forward-looking statements include statements about the Company’s expectations, beliefs, plans, objectives, intentions, assumptions and other statements that are not historical facts. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements.

The Company’s actual results could differ materially from those anticipated in forward-looking statements for many reasons including the factor described in the section entitled risk factors and management’s discussion and Analysis of financial condition and results of operations in the Company’s 10-K as filed with the Securities and Exchange Commission on March 30, 2007 and the Company’s most recent quarterly reports on Form 10-Q and its current reports on Form 8-K. Unless required by law, the Company undertakes no obligation to publicly update or revise any forward-looking statement to reflect circumstances or events after the date of this call.

At this time, I would like to turn the conference call over to Robert Taub, Omrix's President and Chief Executive Officer. Please go ahead, Robert.

Robert Taub

Thank you, Matt and good morning everyone and thank you for joining us for today’s conference call to discuss the company highlights and financial results for the third quarter of 2007. I am Robert Taub, President and CEO of Biopharm -- Omrix Biopharmaceuticals and with me in the room are Ana Stancic, the Executive VP and CFO as well as Nissim Mashiach, Executive VP and Chief Operating Officer.

Following our formal remarks, we'll then open the call to our questions. But here are the main highlights for the third quarter of 2007, which I am pleased to say reflect the successful execution of our strategy to grow top line revenue while continuing to build our R&D pipeline.

So regarding the top line growth, I am pleased to report that our product sales to Ethicon during the third quarter give a more accurate depiction of what is actually happening in the end user market. Biosurgery product sales for the third quarter was $6.8 million, a 107% increase as compared to the second quarter of 2007.

It was indeed a clear positive reaction from surgeons to the indication expansion approval going to a liver plot vascular indication from a liver only indication, which we had before. Evicel end user data, so these are the sales by Ethicon show that in the third quarter of 2007 sales grew by 16% when compared to the second quarter of '07 and if you take the full first nine months of '07 fibrin sealants end user sales grew in excess of a 100% as compared to the same period in '06.

Including in their $6.8 million sales by OMRIX in the third quarter, there are some minor initial sales of Evithrom to Ethicon. Still on the top line on our immunotherapy side, our non-biodefense passive immunotherapy product sales in the third quarter of '07 represent an increase of 25% as compared to the same quarter in '06 and an increase of 24% as compared in the second quarter of '07.

Now, while all these sales were increasing in parallel, we achieved a number of notable milestones that we'll provide evidence for our future growth objectives. These include, first of all the FDA approval, of course, of Evithrom and the launch by Ethicon. We've received the FDA approval to market Evitrom at the end of August with a General Hemostasis in surgery indication and the sales by Ethicon, the first commercial sales occurred in October.

A targeted campaign to pharmacy and therapeutics, the P&T committees at several major hospital systems, where J&J has a strong presence with Evicel and, or, with their topical hemostasis is underway, and we are pleased with the initial receptions from surgeons. The launch is advancing well and according to expectation.

Another important thing that happened during the last quarter is that we submitted a Market Authorization Application or MAA to the European Medicines Agency or EMEA for approval to market Evicel, so the same product as the one, currently marketed in the U.S., our fibrin sealant with an indication of general hemostasis in surgery. The EMEA approval in all of the EU countries including the new ones is expected in 2008 and we look forward to launching the product in the fourth quarter of 2008.

Next, another milestone, we announced positive Phase I safety results with our Fibrin Patch, a breakthrough conversions product candidate being developed in partnership with Ethicon. Based on the results of a Pre-IND Meeting held during the third quarter, we now have a define clinical development plan and we intend to file as a first step, a U.S. IND this quarter.

Therefore, in the first quarter 2008, we plan to initiate a Phase III pivotal study in soft tissue in order to obtain an agent to hemostasis initial indication for our Fibrin Patch. If successful we then plan to file a BLA in 2009. I remind you that Fibrin Patch is designed to address a large and unmet market need and we believe that this product will be very significant contributor to our future growth.

The clinical development plan for the Fibrin Patch encompasses several studies, as it’s usually the case with the hemostasis. The current study is in soft tissue and we’ll facilitate our time to market objective, with more studies then to follow, in order to expand the indication.

Now, as we said in the past, we are also developing products outside of the Ethicon relationship. And during the third quarter, we initiated a Phase I/II study for Adhexil, our Anti-Adhesion product candidate to study what initiated in the U.S. and Europe.

The study will evaluate the safety and initial efficacy of the product in preventing and, or, reducing post-operative adhesions in patients undergoing gynecological surgery. Assuming our data from this initial study is positive, we expect to initiate Phase III trial in 2008.

At this point I’d like to take a couple of minutes to explain our biosurgery strategy, which has been developed in corporation with our partner Ethicon. Hence, this is the real value proposition. The partnership was focused on high value products in hemostasis.

The Fibrin Patch will set the goal standard, in terms of efficacy to reduce intra and post-operative bleeding. The Fibrin Sealant and Evicel is another product that belongs to this portfolio in a market, which is very much under penetrating. And last but not least of course the thrombin combination products belong to this category, as compared to thrombin stand-alone, with all these products we will create long-term defendable market share.

And in addition, we will develop and increase the overall market. ETHICON market leadership position, marketing expertise and intimate knowledge of the needs of the operating room, the OR of the surgeons in all specialties will enable us to execute on our strategy.

With that I'll now turn the call to Ana.

Ana Stancic

Thank you Robert and good morning everyone. Since this is my first conference call with the company, I would like to take the opportunity to say that I am very excited to be part of the Executive Management team at Omrix and that I look forward to working closely with our investor community.

I’ll begin my prepared remarks by discussing the third quarter results, and then I will provide some final guidance for the fourth quarter of 2007. So, let's begin with the third quarter results. Total revenues for the third quarter of 2007 were $15.8 million compared with $18.3 million in the third quarter of 2006, a decrease of $2.5 million or approximately 14%. However, if we were to exclude the $8 million of VIG sales from the third quarter of 2006, revenue this quarter would have increased by $5.5 million or 53% from the third quarter of 2006.

Product sales in the third quarter of ’07 amounted to $14 million compared to $17.3 million in the comparable quarter of 2006, a decrease of $3.3 million or approximately 19%. If we were to exclude the VIG sales from last year’s third quarter result product sales this quarter would have increased by approximately $4.7 million or 51%. Product sales from our biosurgery line of business in the third quarter of ’07 were $6.8 million compared to $3.5 million in the third quarter of 2006, an increase of $3.3 million or 94%.

As you know, biosurgery sales in the third quarter of 2007 include approximately $1 million of Evicel product that we were not able to ship in the second quarter of 2007, or say we sold of not obtaining timely approval from the FDA for using Cryo in the production of BAC, one of the two components of Evicel. Even if we were to exclude from our third quarter results the effect of this delayed shipment of $1 million the growth in biosurgical product sales this quarter would be approximately 65% compared to the third quarter of 2006.

Product sales from our passive immunotherapy line of business in the third quarter of 2007 amounted to $7.2 million compared to $13.8 million in the third quarter of 2006, excluding VIG sales from the 2006 third quarter results, our product sales would have increased by approximately $1.5 million or 25%. Gross profit on product sales in the third quarter of ’07 was $5.8 million or 41%, compared to gross profit on product sales in the comparable period of ’06, up $10.6 million or 61%. Total gross profit for the third quarter of ’07 was $6.3 million or 40%, compared to $10.9 million or 60% for the current earning quarter in 2006. The main reason for the fluctuation in gross margin in the third quarter of ’07 compared to the third quarter of ’06 is due to the absence of VIG product sales.

Research and development, clinical and regulatory expenses for the third quarter of 2007 were 900,000, compared to a million in the third quarter of 2006. The majority of the cost reflected in this category consists of salaries and employee benefits and expenses associated with CROs for the development of the pipeline product that we are pursuing on our own.

Selling, marketing, general and administrative expense amounted to $3 million for the third quarter of 2007, compared to $2.4 million in the third quarter of 2006. The increase of 600,000 or 25% is mainly due to increases in salaries and employee benefits as a result of increase in our headcount to support our projected growth and increases in professional services, primarily relating to expenses associated with the implementation of section 404 of the Sarbanes-Oxley Act.

Net income in the third quarter of 2007 was $3.7 million or $0.21 per diluted share, compared to $8.1 million or $0.53 per diluted share for the third quarter of 2006. From a balance sheet perspective on September 30, ’07 we had approximately $85.4 million in cash and short-term investments, and working capital of approximately $100 million.

We generate a profitable cash flow from operating activities for the nine months ended September 30, 2007 of approximately 600,000 and we have invested approximately $5 million in fixed assets during the first nine months of the year mainly related to our new manufacturing plant in Jerusalem.

Now turning to our full year 2007 guidance on product revenue. Our previous guidance for product sales for the full-year 2007 was between $42 million to $47 million. Due to the strong sales result that we experience in the biosurgical line of business, during the third quarter of 2007. We now expect that our full year 2007 product sales will be in the range of $46 million to $49 million.

I’ll now turn the call back over to Robert for some final remarks. Robert?

Robert Taub

Thanks Ana. So, in conclusion, our third quarter results and achievements are evidence of the progress we are making across the company in executing our strategies. We expect a fourth quarter of this year and the first half of 2008 to be highly productive with the following milestones.

First of all, the ramp-up of AV from sales by ETHICON, as well as the continuing growth in Adhexil sales. Obviously, as soon as we will obtain the General Hemostasis in surgery indication for Adhexil there will be an additional launch and some kick-up.

Another milestone will be the filing of a U.S., IND in the fourth quarter of this year for our Fibrin Patch and the initiation of a pivotal study in the first quarter of 2008. Another milestone to be expected in 2008 in the first half will be conclusion of our Phase I/II study of Adhexil.

We will also during the period complete the Phase III trials and the filing of the BLA for IVIG in the United States and we expect to obtain the Swedish approval for Hepatitis B Immunoglobulin, our hydro immune products. Well, I thank you for attention and of course for the support that you’re giving OMRIX.

And I’d now like to open the call for questions. Operator?

Question-and-Answer Session

Operator

(Operator Instructions) Eli Kammerman from Cowen & Company. Please proceed.

Eli Kammerman - Cowen & Company

Thanks very much and good morning.

Robert Taub

Good morning.

Ana Stancic

Good morning, Eli.

Eli Kammerman - Cowen & Company

First question is, what was the stock options amounted in the quarter please, for our competition expense?

Ana Stancic

Included MG&A, I think it was about -- for the quarter it was approximately $360,000.

Eli Kammerman - Cowen & Company

Okay. Next question is, do you all record the milestone payments from J&J for Thrombin approval somewhere and which line was that in?

Ana Stancic

Okay. The milestone payments that we received and that $2 million dollars was deferred, just like we have done with the other milestone have received in the past. So, the way in which we account for that is that, we amortize it over the life of the contract, which is 22013, so it’s sitting in the deferred revenues on the balance sheet.

Eli Kammerman - Cowen & Company

Okay. So, what’s…

Robert Taub

This quarter was minimal.

Eli Kammerman - Cowen & Company

Minimal impact this quarter?

Robert Taub

Minimal impact.

Eli Kammerman - Cowen & Company

All right. And next question is, can you tell us what the actual sales volume was for Evithrom at J&J?

Robert Taub

No. Of course no. So, we cannot, we don’t even give that for Evicel. We have, as you notice we started last quarter to talk about percentage growth in the -- and due of sales, but not even the actual figures. And we certainly are not going to do that now. We cannot actually.

Eli Kammerman - Cowen & Company

Okay. And then finally, can you reconfirm the number of patients for the Phase III pivotal for the Fibrin Patch in are you going to be bearing any portion of the expenses for that trial?

Robert Taub

Nissim, are you going to -- how many patients.

: Yeah, the patient according to our IV would be between – minimum number would be 90 subjects and the maximum would be 210. And this is a joint product that we are running of to with J&J. So, the cost for the clinical study is covered by J&J.

Eli Kammerman - Cowen & Company

So there won’t be any expense for that in the fourth quarter for how much time?

Robert Taub

Royalty expense, whether its growth stops and you will see we reimburse that expense in our revenue on.

Eli Kammerman - Cowen & Company

Okay. Thanks very much.

Robert Taub

Okay.

Operator

Our next question comes from the line of Amit Hazan with CIBC World Market. Please proceed.

Angela Wood - CIBC World Market

Hi, this is actually Angela Wood (ph) calling in on Amit’s behalf.

Robert Taub

Hello.

Angela Wood - CIBC World Market

I just have a question actually about VIG? Could you give an update on the VIG contract sitting?

Robert Taub

Yes. We bid it in September and we're expecting a response within three months. So it should be early December and that’s about all I could say. It looks good, but we don’t have any, it's with the government bodies. So, you don’t get really any feedback until it really happens.

Angela Wood - CIBC World Market

Okay. And also the IVIG sales from last quarter the one that were actually not accounted for in the revenue because of the issue that we had. Did you see any progress there this quarter, or did you recognize any sales?

Robert Taub

No, we did not recognize any sales because the problem has not been resolved. However, I could say that we are still diligently trying to resolve the situation and I feel, lets say a little more optimistic. So it may be result satisfactorily in the near term but if not, we will then be able to resell the product to another customer.

Angela Wood - CIBC World Market

Okay. Also could you give a little bit more on the specifics for the J&J marketing strategy in terms of Evithrom and what we should expect for next quarter?

Robert Taub

Well in terms of what you should expect for the next quarter, I don't think we can comment. But on the strategy, yes, I think they are going first to accounts where they have a strong presence, that is -- where they sell their regular line of products like SURGIFLO, SURGIFOAM, these topical hemostat, and where they have been selling Evicel.

It's interesting also to note that there is very, very little of way (ph) and that's above the black box warning on the bovine product, but then once this is brought up, there is a pretty good response. And they are using all of their resources and things are looking okay.

Angela Wood - CIBC World Market

Okay, great. Thank you very much.

Operator

Our next question comes from the line of Matthew Dodds with Citi. Please proceed.

Matthew Dodds - Citi

Hey, good morning.

Robert Taub

Good morning, Matt.

Ana Stancic

Good morning, Matthew.

Matthew Dodds - Citi

Morning. So a couple of question. First on Evithrom, there has been some discussion about the impact of formularies for the rollout of Evithrom. I was just wondering if you could comment on any barriers that formularies may present or this product, in particular.

And then Robert, on Evithrom as well, when do you think you will get a powdered version of that out as a complete suite of products? And then, as final follow-up on Fibrin Patch, when you look at the opportunities of the indications for that, you're starting off with soft tissue, is that a biggest indication where potentially the quickest to enroll?

How should we look at soft tissue versus sort of the different indications you make after in the Fibrin Patch?

Robert Taub

Hey, Matt. I am disappointed that you didn't ask me anything about Evicel.

Matthew Dodds - Citi

Not going to get an answer.

Robert Taub

All right. Let's go back one after the other. Regarding the formulary and EVITHROM, we haven't heard anything back from J&J that they're having any issue. I don't know exactly what you're referring to.

Matthew Dodds - Citi

I guess sometimes there's a question on in the hospital shelves, they may have to go through a formulary to get on the shelf, if there's already in the product there.

Robert Taub

I mean, with P&T committee, you mean?

Matthew Dodds - Citi

Yes.

Robert Taub

No, no. I mean it's not an issue. You have to -- yeah, it’s a drug and it has to go through the P&T committee, and you have to know when the P&T committee takes place. And because sometimes there's only twice a year, or every quarter, and so yeah that, this whole knowledge and you have to schedule that the product will be approved by them. So there is a certain timeframe and it doesn't just happens, it's not like a medical device that you just go in and that’s it. So, there is a certain ramp up, which will take -- which is taking place now, which -- I mean it's not overnight. That I agree with you.

Matthew Dodds - Citi

Okay. And then on the other version?

Robert Taub

Well, let me say this, you heard when I was speaking, that I was taking about Thrombin combination products.

Matthew Dodds - Citi

Yes.

Robert Taub

And we've used in the past many times the word that J&J is becoming a one-stop-shop for all Hemostasis. And so, I can't say too much about what the -- let's the line of product based on Thrombin will be. But I can assure you that Thrombin's stand-alone is not the only product.

Now, right now we don’t see any problem with the frozen thrombin it’s doing extremely well and there is absolutely no push back on that. I know that it was speculated in the past. So, I can’t specifically answer your question about lifelines thrombin because I can’t say too much about the other products that are being developed. But eventually I have explained in the past that the thrombin market will not be just one what one use to see in the IMS figures because it wont be like that any more, it will be all kinds of other products.

Matthew Dodds - Citi

And then could I have one follow up on that before we hit the Fibrin Patch for the pricing, the numbers out there anywhere from 10 to 20%, is that what you’re hearing out there and the price premium J&J is looking at?

Robert Taub

You mean the Evithrom?

Matthew Dodds - Citi

Evithrom versus the kind...

Robert Taub

Starting first of all it’s difficult, the range is very big because King has reacted and has put the price down in order to obtain long-term contracts. And so it all depends on what you comparing it with, but at 10 to 20% price premium over King is what I hear.

Matthew Dodds - Citi

Okay. And then, the last one, on the patch, the soft tissue indication?

Robert Taub

Yes. That is correct. That is the regulatory route, which has been discussed with the FDA and excuse me…

Matthew Dodds - Citi

Pre-IND Meeting.

Robert Taub

At the Pre-IND Meeting, so as we assume and of course the market is much bigger then just that particular indication. Now, we will be giving more details on the complete clinical development trend as we go along, and even possibly in this Healthcare Conference in that we are going to be speaking later this week. But, it will be several studies, not just one study obviously.

Matthew Dodds - Citi

Great. Thank you very much.

Robert Taub

But -- some of them will be done in parallel.

Matthew Dodds - Citi

Okay. Got it. Thank you.

Robert Taub

Thanks a lot, Matthew.

Operator

Our next question comes from the line of Kevin Degeeter with Oppenheimer. Please proceed.

Kevin Degeeter - Oppenheimer

Hi, I have couple questions here, most of mine have been answered I guess, on the operational side, but maybe one or two financial questions. Can you give us any sense here in terms of remind us how the revenues from J&J and Evithrom is going to be recognized in other words. You said there was a little bit in the third quarter whether that's stocking revenue and then how will that sort of flow through in subsequent quarters?

Robert Taub

Well, we said there was a small amount of everything sales in the third quarter because as you know, it takes time for J&J to launch the products, who -- they only had small order that hit September, so sort of the last week or couple of weeks in September. In terms of -- I'm not clear, what else you were asking me.

Kevin Degeeter - Oppenheimer

I guess -- what I'm really trying to get at is an appreciation because I'm trying to reconcile the revenue guidance for the year, which you would suggest or even if you have a flat quarter -- fourth quarter would suggest that you’re already coming in you've $40 million or so towards the up-brand of the range you put out there.

I'm trying to understand whether or not you've got some relatively conservative investment on the fourth quarter, whether there was a little bit more, in addition to the million in Evicel, that might have been in the third quarter for Evithrom. I got to think about, that’s really want to trying that off shore?

Robert Taub

Okay. Basically, what I can tell you about the third quarter, and why we have such a positive third quarter is that you're really seeing the effect of the second indication, the vascular indication that we obtained from the FDA in the second quarter of this year. You are -- we are basically seeing that effect in Q3 and that is why Q3 came in so strong. We are rating our forecast for the remainder of the year having experienced the uptake because now J&J has the ability to glass bearing not just sell based on one indication but two indications. So that’s basically, why the third quarter is so great from clinical test (ph).

Kevin Degeeter - Oppenheimer

Okay. Fair enough. I think I understand. Thank you.

Operator

Our next question comes from the line of Jonathan Aschoff with Brean Murray and Carret. Please proceed.

Jonathan Aschoff - Brean Murray and Carret

Hi.

Robert Taub

Hi Jonathan.

Jonathan Aschoff - Brean Murray and Carret

Hi guys. Congrats on a great quarter. I was wondering, is that R&D going to be choppy or is it going -- find some level and sort of grow from there?

Robert Taub

Well I mean -- you've see about a $1 million in R&D and as I said before in my prepared remarks that basically reflects expenses associated with developing our pipeline products that we are doing on our own. Obviously, we are looking to increase that as far as we can develop a value proposition for the company going forward, so we are going to look to do that.

And right now we are going to our budgeting process and we are looking very closely at all of our pipeline products and for those products that we see a positive energy and growth for the company evaluated in the next three or five years, we are going to spend more money next year.

Jonathan Aschoff - Brean Murray and Carret

How about the accounts receivables? That kind of continued to run a little higher, or does it seems me to be a little high?

Robert Taub

Well, I mean, accounts receivable, actually you've got, maybe half of it is related to J&J and just because we sold a lot of parts in Q3 and there is 45 days that we wait in order to receive the money from them, that’s one. And two is our sales to mainly customers in Israel and there is actually no issues regarding the receivables, they're not at all recurrent.

Jonathan Aschoff - Brean Murray and Carret

That’s great. Thank you.

Robert Taub

Okay.

Operator: Our next question comes from the line of Junaid Husain with Soleil Securities. Please proceed.

Junaid Husain - Soleil Securities

Good morning, everyone.

Robert Taub

Good morning.

Junaid Husain - Soleil Securities

Robert, relative to IVIG, could you give a sense as to where you are with pricing in Israel on a per gram basis? And if memory serves me correctly, is really pricing for IVIG two-thirds of that in the U.S.?

Robert Taub

No, no, no. The range of -- I mean I'm not going to give you my price, but I'm giving you the range for the market in Israel is about 50 to 60 and in the U.S. it’s all the way up to 70. But there are also products of the lower quality that are sold at 50 or 55 particularly in the U.S.

Junaid Husain - Soleil Securities

Okay, good. Thanks, that's helpful. And then as a follow up to that, I think a lot of us were a little surprised about your IVIG contract with the EU country that you signed late last year. Robert, our IVIG opportunities in markets outside of Israel, looking more and more attractive especially as pricing gets better and you currently have any additional EU countries on your radar screen in terms of signing new IVIG contracts? Is this opportunistic business or are you consciously making an effort to go after this business and do we need bake this into our expectations?

Robert Taub

No, it is -- I would say that I have repeated many, many, many times toning for the IPU date, that the business concept of Omrix is not to grow the IVIG line because we will not invest in large cone fractionation capacities, we do not want to compete on a grand scale in this generic business. And although it’s a fantastic market at the movement I agree the prices are high, high, it has a -- it is a business that has a cyclical nature, now of course, its more and more of these ultra-immune diseases are evidence for the efficacy I confirm like the Alzheimer disease etcetera.

Then, it may be that this time it will be a bullish market for many, many, many, many years, but nonetheless it is not the core of our business. Having said that we will try to send a regram of IVIG that comes out of our raw material, which we use for our biosurgery line, and within the limitation of our capacity. So, we are always on the lookout, if you want but maybe so pursuing like you said on an active basis other opportunities in Europe.

And as a remind -- I remind you that of course it’s also a drug and therefore you need to have a registration, I remind you that in the U.S., there is a Phase III study which is ongoing. So, that that alone is more than enough, if that -- if the product would become registered here; although, it would be a drop in the ocean in the total market. I think that where we are focusing much more and we are filing systemically new registration in various countries and particularly in Asia, is for the Hepatitis B Immunoglobulin because we believe much more in a hyperimmune business. And so, that’s really, if you want the answer to your question.

Junaid Husain - Soleil Securities

No, thanks. That’s helpful. Ana then, your product responses were slightly better than I was modeling. I’m assuming that Telicris Cryo is having the impact on gross margin fund. Could you tell us what portion of a product this quarter was made with the Telicris Cryo? Was it all of it, was it half of it? And then as a follow-up, could you remind me if Evithrom will be made use in the Talecris cryo?

Ana Stancic

All right. To answer your question in terms of what portion was with cryo, it is about 80% of the product we make this quarter was made in cryo.

Robert Taub

And to ask your second question, that’s not a question to Ana, it’s impossible. The answer is impossible. You cannot make Evithrom from cryo.

Junaid Husain - Soleil Securities

Okay. Okay. Got it. And then, finally last question for Ana, you are about a month into the job. So, may I ask an unfair question? At some point are you guys going to help us that with your earnings guidance going forward? And maybe you can help us out with your philosophy on given guidance?

Ana Stancic

What you mean by help you out?

Junaid Husain - Soleil Securities

Just in terms of, if earning guidance is on your radar screen, if you’re going to be doing and moving forward?

Ana Stancic

To be honest with you, since I have been only here for a month, we haven’t had a full discussion on that yet. When we got to our year-end budget announcement in the next couple of weeks or so and we talked about next year maybe we'll have that conversation, but as of now -- I can't -- I don’t even have any answer.

Junaid Husain - Soleil Securities

Okay. Fair enough. That’s all I got for you. Thanks so much.

Robert Taub

Thanks.

Operator

Our next question is a follow up from the line of Eli Kammerman with Cowen and Company.

Eli Kammerman - Cowen & Company

Thanks very much for the taking the follow-up. Couple of quick questions here. Firstly what review time length do you expect for the BOA for IVIG?

Robert Taub

The normal review time, which is 10 months.

Eli Kammerman - Cowen & Company

Okay. Any reason you think there could be abbreviated?

Robert Taub

Normally the abbreviated review time is only when there is an unmet medical need and I don’t think that this is the case in another states for IVIG.

Eli Kammerman - Cowen & Company

Okay. Thanks for that. Next question is, do you expect to see any kind of positive impact on sales of ever sold related to the withdrawal of Telicris by there from the marketplace?

Robert Taub

I don’t think so. I don’t think that two are really related I think if you ask the question about the awareness of Talecris being a component of the competitive Fibrin sealant in the market maybe so. But I think any such impact is going to duo by the impact of obtaining the general hemostasis indication in January '08.

Eli Kammerman - Cowen & Company

Okay. And, what if any impact you expect to see from the Citizens' Petition that King filed to try to block ZymoGenetics from reaching the market?

Robert Taub

That, in my crystal ball here -- I don't know. I don't know. I mean the FDA usually doesn't like that but on the other hand they actually take care of you. I mean this -- we are just observers here.

Eli Kammerman - Cowen & Company

Okay. Has King taken any action in your direction related to the use of competitive product data?

Robert Taub

Yes. They dropped the price.

Eli Kammerman - Cowen & Company

Okay. Thanks very much.

Robert Taub

Yes. Thanks for the question.

Operator

Our next question comes from the line of Amit Hazan with CIBC World Markets.

Angela Wood - CIBC World Market

Hi. Just a quick follow-up. Could you tell us about any plans you have to bring Evithrom to outside U.S. sales?

Robert Taub

Evithrom outside U.S. sales? No, I don't -- we cannot divulge what our plans are.

Angela Wood - CIBC World Market

All right. Thanks.

Operator

(Operator Instructions) At this time, there are no questions in queue. Thank you for your participation in today's conference. This concludes your presentation. You may now disconnect.

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