Question-and-Answer Session
Operator
Yes, thank you, sir. (Operator instructions). We possible moment to compile the list. Your first question comes from the line of Eric Schmidt with Cowen & Company.
Eric Schmidt – Cowen & Company
Good afternoon. Don, within the $39 million BioThrax sales this quarter, was there about $4 million residual payment for the higher shelf life?
Don Elsey
Yes. The balance four year dating that was not reflected in the first half was indeed picked up to higher dose prices in the third quarter. However, that was $2 million, Eric.
Eric Schmidt – Cowen & Company
2 million, okay. And with the end of year approaching, do you have visibility in terms of your production yields and success rates out of Building 2, looks like you have great confidence in doing 7 million in total doses or might you be able to do a little bit more than that, where are you kind of tracking?
Don Elsey
With respect to yields on that, Eric, for the most part, all of the doses that will be eligible for shipment to the SNS in the fourth quarter have already gone to the manufacturing process and are now going through the testing process and FDA release process. So manufacturing variability is not so much a question. But if you recall back to fourth quarter of last year, we had issues with exactly how many and where the SNS was going to accept, and we had a couple of lots slip into the first quarter. That is not out of the question for this year. As you know, we always come down the home stretch and are trying to get everything squared away with SNS, but the manufacturing yield does not have impact at this point with the doses that we have eligible for shipment in Q4.
Fuad El-Hibri
If I may add the two drivers really in terms of how many doses we can ship in the fourth quarter is the FDA release turnaround time which varies sometimes from as little as two weeks to six weeks. And then of course the timing of the shipment and the flexibility and availability of the government to receive shipments at the SNS. So those are the two key drivers which may have an impact on one or two lots which as you know can have ultimate impact on profitability and the sales figure.
Eric Schmidt – Cowen & Company
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