SurModics Inc. F2Q09 (Qtr End 03/31/09) Earnings Call Transcript

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2009-04-30 03:25:30.0

Tags: Merck & Co. Inc., Call Transcript, Earnings, SurModics Inc., Craig-Hallum, Research & Development, Business Operations, Seeking Alpha

Question-and-Answer Session

Operator

(Operator instructions) Our first question is from the line of Rick Rinkoff with Craig-Hallum.

Rick Rinkoff Craig-Hallum

Well, congratulations on a better quarter than one before that. I had a couple of questions here, first of all you said the R&D includes a little bit of Merck. Could you tell us how much that was and why you’re being so forth coming could you tell us what Abbott was in the quarter?

Phil Ankeny

Yes. Rick, the Merck component was about a $1.2 million and on the Abbott front, we are not prepared to disclose that number, but we did articulate that it was down, down from a year ago.

Rick Rinkoff Craig-Hallum

What was in the year ago?

Phil Ankeny

Well, the year ago we gave the full year number.

Rick Rinkoff Craig-Hallum

Was it less than Merck this quarter?

Phil Ankeny

Not prepared to answer at that level.

Rick Rinkoff Craig-Hallum

Okay. You talked about your big ophthalmology contract and then I believe you used the words extending the relation and what words did you use and what should we infer from that?

Bruce Barclay

I've already put my script away, Rick. So, I don’t remember exactly the words I used other than.

Rick Rinkoff Craig-Hallum

Well, give us a new word.

Bruce Barclay

Other than as we mentioned in the last conference call we find a very significant agreement with the customer in a million of dollars for development activities and the team is very, very busy implementing those activities and doing a very nice job. In the course of that, this customer wants additional work and we are in the process of negotiating and we expect to be finalizing here in the not too distant future. Additional R&D contract for additional work again is expected to be in the millions of dollars.

Rick Rinkoff Craig-Hallum

Okay. So they are expanding the agreement. They are not just extending it and maybe that was a misinterpretation I had. On that front ophthalmology was $3.7 million about how of it might have been in that customer?

Bruce Barclay

Getting back to expanding versus extending, I am not sure that I understand the difference other than, I am sure you understand the development programs the companies have began with In Vitro and animal and move forward. So, it's more like that, more long just extending the development process. If you want to call that expanding, that's fine.

 

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