Question-and-Answer Session
Operator
(Operator instructions) Your first question comes from Ryan Daniels with William Blair.
Ryan Daniels – William Blair
Let me start with a quick question on the LQ business. It looks like growth was up about 3% year over year. I think that’s down from about 6% in the second quarter. Is there anything unusual there? Just slower sales or can you comment on why that’s so down a bit?
Frank Ten Brink
It’s the year over year surcharges and the timing on that is more on LQ. It comes up more and faster on the LQ, and so in general again you’re looking at a business 8 to 3 and when you adjust for 8 to 3, 8% on SQ and 4% on LQ, you get 10 to 11 and your 5 to 6.
Ryan Daniels – William Blair
So underlying trends are actually pretty similar?
Frank ten Brink
Yes.
Ryan Daniels – William Blair
The LQ adds in the quarter and bio system adds and then SteriSafe customers and the percent on select and premium?
Rich Kogler
Starting with the LQ adds, we had 56 new contracts on the Midway site, 70 biosystems. Total number of SteriSafe accounts is now over 139,000, and the percent on select is 32.4%.
Ryan Daniels – William Blair
Do you guys have any color or commentary on the pharma waste disposal service? I know you took that out of the controlled launch, and I’m curious if you’re ready to share client numbers of average contract size or any more detail on that segment at this point.
Rich Kogler
As we indicated last time, we moved out of pilot stage. We’re doing a staged rollout, quite similar to how we did bio systems a few years back. We have lots of customer demand. It’s a program that is being driven by the regulations as well as by customers’ interest in doing the right thing for the environment, and we’re seeing good success.
Ryan Daniels – William Blair
Any update on MedServ? I know you guys have been going through the HSR review, and I’m curious if you’ve got any feedback from them or what you’re hearing about the potential timing around that transaction.
Rich Kogler
The last time we talked, we were still at a process along with MedServ of supplying information, and that process has been completed, so DOJ has information from both parties. We’re now in the review process. We expect that this will finalize itself in Q4.
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