Northfield Laboratories, Inc. F2Q09 (Qtr End 11/30/08) Earnings Call Transcript

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2009-01-12 10:56:23.0

Tags: Revenue, Dr., Call Transcript, Earnings, Northfield Laboratories Inc., Manufacturing, Operational Accounting, Finance, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Lynn Brecken – Brecken Capital.

Lynn Brecken – Brecken Capital

Assuming you get FDA approval, how quickly would be the time frame from approval to actually revenue generation and what are the plans to actually fund the company, either before or after that event?

Dr. Steven A. Gould

The first question is how quickly to revenue. We have talked before that, I want to put that into context. I think you are probably aware that the manufacturing capacity at present is in the 5,000 to 7,500 units per year range.

We think with that capacity we have a built-in network of the 32 sites, which represent the major pharma centers around the country, so we think we would be in a position to begin selling and distributing the product in a fairly rapid fashion.

I do want to clarify for you that, as we clearly have stated in our 10-Q, at that volume we won’t become profitable, which feeds into your second question about plans for fund raising.

There is nothing specific that I have to say to you. As I mentioned, we are certainly exploring fund raising potential opportunities. There is nothing I can specifically at that point but our ability to scale up manufacturing and expand the revenue will certainly depend on those activities going forward.

Lynn Brecken – Brecken Capital

So if I understand it, if you get FDA approval, you have the infrastructure in place to actually generate revenues and potentially become cash flow break-even?

Dr. Steven A. Gould

No. Half of that is correct. Again, I want to be clear. I will try and say it simply. We have a limited manufacturing capacity at present. And we think with the capacity that we will be producing over the course of the year, and with our relationships with the major trauma centers around the country, we think we are in a position to generate revenue. That’s the first part.

I do want to be clear that those volumes of manufacture will not lead to profitability. That requires going on to a manufacturing expansion which, as I said, feeds into the fund raising opportunities and further development.

Operator

There are no further questions in the queue.

Dr. Steven A. Gould

If there are no further questions, I thank everyone for joining us today and we look forward to keeping you updated on our progress.

 

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