And thank you for standing by, and welcome to the Opco Health Incorporated First Quarter 2021 Financial Results Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer Please be advised that today's conference call is being recorded. I would now like to hand the conference over to your speaker today, to Yvonne Briggs. Thank you.
Please go ahead.
Thank you, operator, and good afternoon. This is Yvonne Briggs with LHA. Thank you all for joining today's call to discuss Opco Health's financial results for the Q1 of 2021.
I'd like
to remind you that any statements made during this call by management other than statements of historical fact will be considered forward looking and as such will be subject to risks and uncertainties that could materially affect the company's expected results. Those forward looking statements include, without limitation, the various risks described in the company's SEC filings, including the annual report on Form 10 ks for the year ended December 31, 2020, and in subsequently filed SEC reports. Importantly, this conference call contains time sensitive information that is accurate only as of the date of the live broadcast today April 28, 2021. Except as required by law, Opco undertakes no obligation to revise or update any forward looking statements to reflect events or circumstances after the date of this call. Before we begin, let me review the format for today's call.
Doctor. Philip Frost, Chairman and Chief Executive Officer, will open the call And Steve Rubin, OpCo's Executive Vice President, will provide a business update and pipeline review and then Doctor. John Cohen We'll discuss BioReference Laboratories. After that, Adam Logel, OpCo's CFO, will review the company's Q1 financial results, And then we'll open up the call for questions. Now I'd like to turn the call over to Doctor.
Frost.
Good afternoon and thank you for joining the call today. I'm happy to share our Q1 results with you. Revenues, earnings and cash flow from operations were strong. Our Reference Laboratories continues to be recognized as a national COVID-nineteen PCR testing volume remained strong during the Q1, even with a significant decline in cases nationwide. As the country starts to emerge from the pandemic, we're seeing an overall shift from diagnosis to surveillance and we are seeing BRL's routine business improving towards historical levels.
While we anticipate that COVID-nineteen test volumes for the general public for diagnostic purposes may decline, there is still strong interest in BRL's COVID-nineteen capabilities for large scale screening and its ability to provide customized solutions across a broad spectrum of customer requirements. BRL consistently tries to differentiate itself from other laboratories. This is part of a bigger vision to have our laboratory interact more directly with healthcare providers such as telemedicine and large physician groups to achieve better patient outcomes. Our pharmaceutical business continues to advance nicely. The European regulatory submission was recently announced for somatrogon, our long acting humer growth hormone.
This is in addition to previously announced submissions in the U. S. And Japan. To create further awareness of this important drug candidate, Earlier in the quarter, we participated in several endocrinology conferences to highlight somatrogon's clinical data profile. RAYALDEE's prescription sales growth continued to be impacted by the pandemic.
As COVID-nineteen related limitations lessen, we expect RAYALDEE to return to pre pandemic levels and to resume its previous growth trajectory. The COVID-nineteen trial is ongoing. Too early for optimism, but literature data The notion that sufficiently elevated vitamin D levels help prevent more severe forms of the infection and RAYALDEE is quite efficient in raising vitamin D levels. This would be important in the general population, but even more so for chronic kidney disease patients who tend to have more unfavorable outcomes. As you may know, OpCo has a small but excellent unit, OpCo Ibero Americana, with business units in Chile, Mexico and Spain.
Under the leadership of its General Manager, Hans Werner, It continues to grow in revenues and profits. Opco's Pharmaceutical Chemical Business in Israel, although quite small, also continues to do well. I'll now turn the call over to Steve Rubin, who will provide further discussion on our Pharmaceutical
business. Steve? Thanks, Phil. Good afternoon, everyone, and thank you for joining us today. As Phil mentioned, we are quite pleased with Our strong Q1 financial results and continued profitability.
BioReference Laboratories continues to secure COVID-nineteen testing contract and its core testing business is trending back to normal levels. In addition, We are also generally pleased with the advancement of Ofco's Pharmaceutical businesses. Global regulatory progress continues to be made by our commercial partner Pfizer. Somatrogon is our long acting recombinant human growth hormone that is intended to be administered once weekly for the treatment of pediatric patients with growth hormone deficiency or GHD. In February, the European Medicines Agency We validated for review the marketing authorization application.
Pfizer expects a decision from the European Commission in 2022. In addition, we previously announced that the U. S. FDA accepted for filing the initial biologics license application for somatrogon with the target PDUFA action date in October 2021 and that a new drug application was submitted in Japan. Under our agreement with Pfizer, OpCo is eligible to receive up to $275,000,000 upon the achievement of certain regulatory and pricing milestones.
In addition, upon launch, we are entitled to regional tiered gross profit sharing on sales of both Somatrogon and at Pfizer's daily THC drug, Genotropin. During February March, we participated in 2 Endocrinology conferences including ENDO 2021, the Endocrine Society's 2021 Annual Meeting and at ICE 2019 International Congress of Endocrinology Annual Meeting. We are pleased to have somatroga clinical trial data presented to generate for further awareness of our drug. Collectively, the various studies presented provided a breadth and depth of data for Somatrogon that demonstrate its efficacy and safety for an expansive number of patients over the long term. The presentations, posters and abstracts From these conferences can be viewed on our website.
We are also participating in the 2021 Pediatric Endocrine Society virtual annual meeting, which is being held today through May 3. Now I'd like to turn to our commercial pharmaceutical business starting with RAYALDEE. RAYALDEE numbers for the quarter breakdown as follows. Total prescriptions for RAYALDEE in Q1 2021 as reported by IQVIA We're approximately 12,300 representing a decrease of approximately 33% compared with Q1 2020 and a decrease of approximately 18% compared to Q4 of 2020. As in recent quarters, RAYALDEE sales force continues to contend with the impact of COVID-nineteen on in person access to physicians as well as a decline in patient business to physicians' offices.
New patient starts decreased by 10% in Q1 versus Q4. Since the product was launched, Nearly 25,200 patients have had RAYALDEE prescribed by approximately 3,600 physicians. Approximately 170 physicians or nearly 5% of the total number of prescribers were new RAYALDEE prescribers in Q1. We anticipate that sales of RAYALDEE will start to rebound as COVID-nineteen vaccinations become more available and infections decline. To mitigate the impact of the ongoing pandemic, we are continuously training our sales force in virtual selling techniques, boosting our marketing efforts channel through social media platforms and redeploying sales personnel to geographies with lower infection rates.
We are pleased to announce today that Phase 2a results with RAYALDEE as a new treatment for SHPT in hemodialysis patients fully confirm and previously reported interim data. Cohort 1 of this Phase 2 clinical trial exploring the safety and efficacy of a high CKD, who require regular hemodialysis was completed in February 2021. This Phase 2 trial is being conducted at 2 successive cohorts, the first of which involved 44 patients from multiple U. S. Dialysis centers treated in a randomized open label fashion with either RAYALDEE or for placebo for 26 weeks.
Top line results from 44 subjects provides 33 on RAYALDEE and 11 on placebo demonstrated that RAYALDEE was well tolerated at a dose of 900 micrograms a week and activated to calcitriol, trial, the active hormone, despite the lack of functional kidneys and decreased intact parathyroid hormone levels versus placebo. The full analysis of the final data is underway and will be reviewed with both the FDA and Ophthos Development Partners. Our Phase II trial with RAYALDEE as a treatment for COVID-nineteen outpatients is now over 70% enrolled, is ongoing at 10 U. S. Sites, many of which are located in areas that are experiencing high sustained SARS CoV-two infection rates.
Total enrollment of approximately 160 patients is planned. Patients are being screened for possible inclusion if They have symptoms consistent with mild to moderate COVID-nineteen and are excluded if they are either asymptomatic or exhibit oxygen saturation below 94%. The primary efficacy endpoints include Raising and maintaining serum total 25 hydroxyvitamin D within the range of 50 to 100 nanograms per ml and time to resolution of COVID-nineteen symptoms as self reported each day by subjects using a questionnaire designed and validated to evaluate in clinical trials presence, severity and duration of symptoms associated with viral infections. Top line data from this randomized Double blind placebo controlled trial are expected in the 3rd quarter. If sufficiently positive, they will form the basis for an immediate request to FDA for emergency use authorization.
We continue to advance our earlier stage programs with a focus on our long acting platform technologies in rare diseases. 2 of our most advanced compounds are our long acting recombinant Factor 7 compound for the treatment and prevention of bleeding episodes in patients with hemophilia A or B with inhibitors of Factor VIII or Factor IX and our long acting GLP-two analog for the treatment of We are continuing to progress discussions to partner our Factor 7 program. Preclinical studies in a rat model using our GLP-two to analog demonstrated strong efficacy and prolonged activity on the intestine. Preliminary monkey data from the 4 week Toxicity program demonstrated a plateauing of increased intestinal weight with the lowest dose and a sustained effect over the recovery period of 28 days. We are planning to extend the monkey study to determine more precisely the effect of a lower dose range.
The human studies are expected to begin in early 2022. Now let me turn the call over to John Cohen to discuss our BioReference Labs business. John?
Thanks, Steve, and good afternoon, everyone. BioReference's core clinical laboratory business continues to make progress to return towards 2019 levels as more physicians' offices reopen, Our sales people are allowed back into the offices and patients feel more comfortable with in person visits. Many of our existing clinical accounts have rebounded through Q1, while at the same time we have added new business at Women's Health and Oncology. Although oncology practice patient visits are Still at 80% to 90% of pre COVID levels, our liquid tumor hematology offerings continues to thrive and has bounced back to pre COVID levels and our solid tumor offering is almost at pre COVID levels. In addition, Our somatic genomics offerings has nearly doubled in Q1 versus Q1 of 2020.
Our larger accounts, including large medical groups, FQHCs, ACOs and health systems are also seeing increases in inpatient visits month over month. We expect these improving trends to continue throughout the year as vaccines are administered and the number of COVID cases decreases. Our volume exiting Q1 is now down 7% versus prior year. Our payer relations team Continues to make remarkable progress, increasing our access across the country as 10 new health plans will be added within the next 30 to 60 days. Our investment in the hospital reference business and in a sales force to deliver on that business is beginning to pay off with several new reference accounts having been added this quarter.
In addition, we are expanding our partnerships with several large physician groups in managing their physician office laboratories. At GeneDx, in the first quarter, our genetic volume grew over 10%, driven by our industry leading exome testing offerings. There is a substantial interest in our genome offering across our existing client base driven by our recently launched Rapid Genome offering. In January, we also partnered with Tempus, a leading precision medicine company to combine a customized hereditary cancer panel with our somatic answering offering as a way to expand our commercial reach without investing in a broader commercial organization. Finally, Our adult neurology testing is growing as a result of our recently launched ataxia testing offering.
While reimbursement headwinds continue to impact revenue growth, We expect the accelerating growth in volumes to result in this business to be a growth contributor as the year progresses. In January, services to patients' homes, offices or other preferred locations, delivering on demand, safe and convenient diagnostic experience for patients. Scarlett has been designed to be similar to tools that consumers use daily in order to provide a convenient, ease of use, innovative, flexible mobile alternative to the traditional patient service center experience. We believe that a significant part of the future of healthcare is at home. Our plan is to make in home health care real for millions of Americans by bringing diagnostic services directly to the patient.
Now let me turn my attention to COVID. Since the start of the pandemic, we have now performed 14,400,000 COVID-nineteen PCR tests. In the Q1, we performed approximately 4,300,000 COVID-nineteen tests compared to 4,700,000 tests performed in the 4th quarter. We are averaging about 40,000 to 50,000 tests a day. BioReference continues to provide COVID-nineteen Solutions to meet testing needs of numerous customer verticals, including physicians, health systems, long term facilities, BioReference remains the laboratory of choice for professional sports leagues as we expand our ongoing relationship with the NFL, NBA, Major League Soccer, National Hockey League and now Major League Baseball, which we kicked off in April on opening day.
I'm thrilled to announce today a COVID-nineteen testing agreement with the Women's NBA League to support all players and staff for their 25th season. Across the sports portfolio, we performed approximately 1,000,000 COVID-nineteen tests, including 150,000 Point of Care tests in Q1. We provide customized solutions to 200 professional sports clubs across 40 cities with perhaps the most experienced on-site services organization in the country. In Q1, BioReference successfully Recorded a large scale testing program for the Super Bowl in Tampa, the Women's and Men's Big East Basketball Championship in March, U. S.
Soccer National Teams, the USA Swimming Team and the USGA and multiple universities. We are performing fan testing at several stadiums and arenas around the country through our growing point of care testing capabilities, which includes both point of care PCR and antigen testing. Speaking of point of care rapid testing, we We have performed more than 270,000 COVID point of care tests, including 200,000 rapid PCR tests using the Mesa Acula. We use point of care PCR for multiple sports leagues at over 400 plus We performed large scale arena testing at Madison Square Garden in New York and the Chase Center in San Francisco. As I mentioned on our last call, point of care devices are expected to play a larger role in COVID testing with the shift in demand from screening with timely results.
We have validated multiple point of care platforms and have developed proprietary software to deliver The report results in a timely fashion in order to provide customized solutions for many different industries. In March, we announced the expansion of our COVID-nineteen school testing program to support a return to in person classroom instruction around the country. We are working with 2 of the 3 largest school systems in the country, New York City and Chicago, by providing testing services for over 1400 schools, Testing nearly 300 schools every day. To date, we have performed almost 500,000 individual on public school students, principals and teachers. We expect to announce expansion of our school testing programs to at least for more school districts in the next several weeks.
In February, we announced the unique program in partnership with New York State to provide COVID-nineteen rapid testing to help reopen the New York State economy. The New York Forward rapid testing program is designed to provide New Yorkers and those visiting with inexpensive and rapid COVID-nineteen testing. The New York Forward program is a collaboration with the Empire State Development Corporation, the Real Estate Board of New York Red Bay, the city's leading Real Estate Trade Association and CVS Pharmacy. To date, we now have 31 of these retail locations open. Using a mobile device or computer, an individual can schedule a rapid COVID-nineteen test, through e mail allowing them to show proof of a negative COVID-nineteen result.
As cases have decreased and vaccination has increased, and developing customary custom proprietary software to schedule and report of 6 different point of care platforms. As a result, We're able to address simple and complex surveillance programs across multiple different venues. We continue to see a significant demand for testing for travel, Hospitality, employer return to work programs and large venue events in addition to the sports testing and school testing we already mentioned. We believe that many of these entities will continue their surveillance and screening programs through the end of 2021 and in many cases through the first half of twenty twenty two. Our custom solutions utilizing both lab based PCR and point of care tests has positioned us as to maintain our position as the nation's leading provider of large scale COVID screening programs.
In addition, our improved business base business and strengthening our specialty testing services should continue to bolster our performance throughout the year. And now let me turn it over to our CFO, Adam.
Thank you, John. We began 2021 by delivering solid operating performance across all of our operations, resulting in consolidated operating profit for the 4th straight quarter. Our Diagnostics segment reported revenue from services of $507,000,000 compared to $170,000,000 for the 2020 period. The increase in net revenue was driven by the continued execution of our COVID-nineteen testing strategy. Combining our routine testing business and our COVID testing business, volumes overall increased more than 158% compared to historical levels.
Our routine clinical testing, however, as John mentioned, was 7% lower compared to the 2020 period, while our genetic testing volumes were 10% higher compared to the 2020 period. The Diagnostics segment reported operating income of 60 $7,000,000 compared to an operating loss of $18,000,000 an improvement of $85,000,000 over the 2020 period. Selling, general and administrative expenses, along with research and development expense decreased as a percentage of revenue from 33 down to 18% of revenue, reflecting operating leverage improvements. Total cost and expenses increased by $251,000,000 compared to 2020, including increased cost of revenue of $216,500,000 due to the increase in testing volumes. Moving to our Pharmaceutical segment, we reported revenues of $38,200,000 for the Q1 of 2020 1 compared to $40,600,000 for the 2020 period.
Revenue from product sales in the Q1 increased slightly to $33,900,000 which included $5,800,000 of revenue from RAYALDEE compared to $31,100,000 in the Q1 of 2020, inclusive of $9,900,000 of revenue from RAYALDEE. RAYALDEE has continued to be negatively impacted by physician office restrictions, keeping product sales representatives from making sales calls. Revenue from the transfer of intellectual property, we reported $4,300,000 of revenue for the 2021 period compared to 9.6 $1,000,000 from a year ago, reflecting the completion of our somatrogon Phase 3 clinical trial. Loss from operations of our pharmaceutical segment was 19 point $2,000,000 for the Q1 of 2021 compared to $14,100,000 for the 2020 period. Overall research and development expense for the Q1 was $15,800,000 compared to $18,600,000 for the 2020 period, again reflecting reduced spending on our somatrogon development program.
On a consolidated basis, the Q1 of 2021 had an operating profit of 38 $400,000 a significant improvement of $79,200,000 over 20 twenty's operating loss of $40,800,000 Our net income for the Q1 was $31,100,000 or $0.05 per diluted share compared to a net loss of $59,100,000 or $0.09 per share for the 2020 period. Our cash balance as of March 31 was $89,500,000 And we have approximately $164,000,000 of availability under our lines of credit. The combination of our cash on hand and the lines of credit provide us with a strong balance sheet and adequate capital resources. As we look into the Q2 of 2021, We anticipate performing between $3,000,000 $4,000,000 COVID-nineteen PCR point of care and antibody tests during the quarter. As John mentioned, we have capacity well in excess of these levels should demand for testing increase.
Our revenue could expand beyond our guidance. So far this quarter, we have already performed over 1,000,000 COVID tests. So our guidance reflects a range for testing demand from our physician and general public channels, while testing from our schools, Sports, entertainment and employer channels are expected to remain or grow from their current levels. We assume our base business for Routine clinical testing will remain at current levels, which are overall in the mid to high single digits behind our base year of 2019. We anticipate RAYALDEE sales to remain behind 2020 until our sales force is able to fully return to their promotional activities.
With that, overall, we expect revenue for the Q2 of 2021 to be between $420,000,000 $490,000,000 including revenue from services of $385,000,000 to 450,000,000 Revenue from products of $30,000,000 to $34,000,000 and other revenue of $4,000,000 to $6,000,000 We expect Costs and expenses to be between $415,000,000 to $485,000,000 resulting in an operating profit of $5,000,000 to $15,000,000 at various points between the revenue and expense assumptions. As John mentioned, we're making significant investments into our commercial organization, which are reflected in those costs. Operating profit excludes approximately $20,000,000 of non cash depreciation and As well as an expectation of research and development expense of $18,000,000 to $22,000,000 With that, I'll turn the call over to the operator for questions.
Your first question comes from the line of Maury Raycroft from Jefferies. Your line is now open.
Good day. First question I had was just on COVID-nineteen testing. So There was some discussion around OpCo getting named as one of the 4 designation testing centers for the U. S. Government.
And I think that decision was supposed to be made yesterday. Just checking if there's a status
Yes. Hi, it's John. The so that decision has been delayed by the government until May 14 or 15. But yes, we are we have submitted and we were asked to submit as one of But the answer is, is we won't know anything until May looks like May 14 or 15. They've delayed All decisions until then.
Got it. Makes sense. And then now that we've been into COVID for a couple of quarters, probably to predict too much going forward, but just wondering if you have any line of sight into optimizing capacity and costs and expenses that could Potentially benefit the bottom line maybe in 3Q or 4Q.
Hey, Maurice. Go ahead, Anthony.
Sorry, go ahead. I was just going to say, John, please add. So we're obviously paying pretty close attention to the level of investment that we have. Obviously, the testing demand is declining. So you could imagine that we're starting to scale back some of our operations.
However, It is remaining fairly robust. So there's not a significant amount of cuts that we could do to bring those costs in line, but it is absolutely Something that we'll continue to manage appropriately. I don't know, John, if you had any specifics there.
No, that's right. It's Yes. No, that's exactly right. We're trying to manage it. Most of the cost, quite honestly, is on the staff side.
It's not on the equipment and some of it's on the supply side, on the reg side. But Right now, we're managing it as tight as we can given the fluctuations in what's going on day to day, but we are acutely aware And I'll keep you a very close eye on it.
Got it. That's helpful. And then last question is just on Soma Trogan. So Your PDUFA is scheduled for October 2021 and then the Ascendis PDUFA scheduled for June. I'm just wondering if you've gotten any indication from FDA that the timing on the somatrogon decision could get accelerated based on the Ascendis timeline, if there's been any informal feedback on that?
Well, no, we've had no feedback on that point.
Okay. Any thoughts on if that's a possibility, I guess?
Anything is possible. We're continuing with the expectation that the PDUFA date will remain the approval date in October.
Very good. Okay. Thank you for taking my questions.
Your next question comes from the line of Daniel Sanders from Guggenheim. Your line is now open.
Great. Thank you very much for the questions. My first one, I was hoping you could help Let me understand better understand just the services revenue number this quarter. And I ask because it looks like your testing volumes came in at the lower end of guidance, but your reported revenues service revenues came in at the above the high end of the guidance. And so I'm wondering if that was better reimbursement on the testing side or if there was something else that maybe I'm missing?
So Dana, what we've seen is, and we've talked about this a little bit before is Lot of the testing volume has shifted away from the state and local government testing that was done and moved to some of the Higher revenue line items or higher price per test line items with some of our non government business. So It's a shift in an increase in the overall reimbursement that you're seeing come through to have that impact.
Okay, okay. Got it. And I guess along those lines, appreciate the color on The volume you're getting on the sports channel side, wondering if there are other Non traditional channels that you are focused on where you see a big future opportunity that maybe you haven't tapped yet?
Yes. So I mentioned a little bit. So if you look at the different verticals, the and this is related to What everybody is referring to as screeningsurveillance. So the bigger ones are Travel and hospitality. There's obviously enormous amount of Funding available for school testing, which we are, I still believe, probably the largest we have the largest amount of public school testing in the country currently, Which were I mentioned we're adding on.
And then there's the I'll call them large venue. And it's not just the Garden, Barclays, Chase Center, etcetera, but there's also large And that could be all sorts of different concerts and races, etcetera. So we see a fairly significant demand for those kind of events. And I would say the last of the large verticals is how employers deal with bringing their employees back to work. So a lot of discussions around that because that's also falling in the screening surveillance category.
Okay. Okay. That's helpful. And maybe just my last one. Just wondering on your broader Kind of R and D efforts and pipeline, with HGH kind of nearing the finish line, how you're thinking about kind of the internal assets You have and if there are internal ones that you are excited about and going to start to prioritize Or if kind of BD in licensing could also be something you consider as you think about moving the pipeline forward?
Thanks.
Well, there's this is Tony Cruz. The focus right now still is in finishing the growth hormone And also initiating a second indication in pediatrics in another indication or a basket of indications with Pfizer. So there is quite a bit of focus still on the growth hormone as it progresses and also potentially getting The ready the data and the analysis that's necessary for potential and adult indication application. So there is Still ongoing. In terms of the pipeline, as Steve has indicated, the Factor 7 It is a molecule that looks promising in the Phase 1 data that we did and the Phase 2a data.
We are looking at starting Synthesis and the development plan for that. And the other one is the GLP-two where we did an animal talk study, where we're Looking to optimize this molecule because it looks very potent compared to some of the competitors that are currently in once weekly as well as compared to GAAP X. So those 2 look promising and moving forward. We do have additional molecules that we could move But these are the 2 that we really are focusing at this time.
Okay. Thanks for the color.
Your next question comes from the line of Edward Jen Hov from Piper Sandler.
So a lot of the questions I had were answered, but I wanted to sort of pick up in just in terms of prep work, both Ahead of the PDUFA date as well as commercial launch, again, appreciating that a lot of that is in the hands of Pfizer. Is there anything in particular that you guys are involved with? Just any color you can
No, as per the agreement, Pfizer is responsible for all commercialization activities. I mean, we do have regular meetings discussing what they're doing, But in terms of us actively participating, we don't. Where we're participating is in continuing development, in Continuing to present data in different meetings to make sure that the awareness is continued. But I think most of that really is still in the development ongoing. As you know, we had large trials that were completed, But the ongoing open label extensions are ongoing and we're still gathering data from that.
So there's very close activity. The last is obviously associated with these submissions. There's a continuous rapport between the company and the FDA or other regulatory agencies to answer their questions. And so a lot of the focus with Pfizer is really taking this to approval.
Excellent. Thank you so much.
Your next question comes from the line of Yale Jen from Laidlaw and Company. Your line is now open.
Good afternoon and congrats on the great quarter. My first question is that going forward, do you anticipate a breakdown for the COVID test Between PCR and serological test changes or pretty much stayed relatively same sort of Rachel?
Yes, it's a good question. And quite honestly, I don't think anybody knows yet What will happen for the antibody testing or quantitative antibodies for both people who have the vaccine or the disease? A little bit of that will be dependent on the government's or government's regulatory oversight Otherwise, I don't think anybody's got that answer.
Okay. Maybe 2 quick ones. In terms of you just mentioned that It seems that you are getting a higher price that's been done, that's why your revenue increases. Do you anticipate this trend going forward Into next quarter and maybe further into the second half of this year in terms of getting a higher price test done?
Yes. So, Yale, I don't think there's going to be another large step up. The school and some of the surveillance Testing that John was talking about does come at a slightly lower price than where our average is coming in today. But I think it really does depend on a lot of the general public demand for testing And how that continues to evolve. I do think that the government sites have mostly shifted from testing to vaccinations.
So most of those contracts are going to continue to wind down. But as the broader testing from the general public continues or if we're able to expand some of our sports and leisure franchises, some of those come with higher price points. So it really does depend on the mix, but I think the general public demand is the biggest unknown there.
Okay. Maybe the last question that I think this is for John that you mentioned there will be 10 more health plan to be We assigned it over the next, I guess, 60 days. Just overall, what's the coverage life in total for those plants? And thanks for answering.
I don't have in front of me if you're asking for the number of lives, I'd have to get back to To tell you what the impact will be. So we'd have to circle back to tell you exactly how yes, in other words, I don't know exactly How many lives that represents.
Okay, great. Thanks a lot. I appreciate it.
I am showing no further questions at this time. I would now like to turn the conference back to Doctor. Frost.
Well, if there are no more questions, I'd like to thank everybody for participating and tell you that we look forward to meeting with you again
This concludes today's conference call. Thank you all for joining. You may now disconnect.