SurModics Q2 2009 Earnings Transcript

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2009-07-30 00:19:11.0

Tags: R&D, Question, Research & Development, Product Development, Product Marketing, Strategy, Business Operations, Marketing, Management, Seeking Alpha, SurModics Inc.

Question-and-Answer Session

Operator

Thank you sir. We will now begin the question-and-answer session. (Operator Instructions). And our first question is from Ross Taylor from CL Kings. Please go ahead.

Ross Taylor - CL Kings & Associates

I have two or three questions. First related to some of the financials, R&D expense in the quarter, do you think this R&D is going to stay at roughly this level going forward or for at least the next several quarters?

Philip Ankeny

Ross, we would look at R&D in probably trending up a little bit going forward; not enormously but I think going forward there definitely would be some increase.

Ross Taylor - CL Kings & Associates

Okay. And for products sales, are there any particular categories or other factors that drove the increase there?

Philip Ankeny

We had a strong quarter in the reagents area, and the diagnostics products continued to do quite well. And so it's pretty much across the board.

Ross Taylor - CL Kings & Associates

Okay. And final question relates to your ophthalmology program, ... you can elaborate on this. Are there any technical hurdles that remain before you are able to closer to signing another agreement or can you elaborate or shed any light at all in terms of what things might need to be overcome before you can reach an agreement?

Bruce Barclay

I would say this is product development. There are always technical hurdles.

Philip Ankeny

I would say that given the number of customer projects that we have in house and they are all at different stages in the development process. In many cases we've overcome several technical hurdles that least when we began the programs, we it was not that as certain that we would be able to overcome. So that the teams have made terrific progress in many areas but I would reiterate that this is product development and that there is always another technical challenge to overcome until product eventually make buckets. With that said, I would say that we are very encouraged by where we are in some of our more advanced programs. And I think going beyond that I can't comment beyond what I said in the prepared remarks.

Ross Taylor - CL Kings & Associates

Okay. That's help. Thanks very much.

Philip Ankeny

Yeah thanks. Thanks for the questions.

Operator

Thank you. And our next question is from the line of Richard Rinkoff from Craig-Hallum, please go ahead.

 

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