Opko Health, Inc.

reduce our remaining convertible debt, and through our recently expanded share repurchase authorization, we plan to continue to reduce the number of shares outstanding in the most capital efficient way possible. Under our share repurchase authorization, we have approximately $159 million remaining, which at yesterday's closing price represents more than 113 million shares, or more than 14% of our currently outstanding shares. As Elias mentioned, we anticipate closing our second transaction with LabPorp later this year and will receive $192.5 million of closing and up to $225 million in total. As we look ahead, the following assumptions influence our financial guidance. For our pharmaceutical segment, we expect Pfizer to continue to grow sales of Ingenla and the overall HGH franchise. We assume a stable foreign currency exchange rate for our ex-U.S. pharmaceutical businesses, which has recently been challenged with large swings in certain territories. Our teams have been diligently navigating those challenges through disciplined expense control and expect that going forward. R&D expenses will reflect higher activities related to our MODX programs, including CMC efforts related to our first oncology trial, as well as furthering our GLP-1 glucagon development program. A portion of the increased MODX activities will continue to be funded through our BARDA agreements. For our diagnostic segment, we are executing our multi-year, multi-phase program to reach and improve profitability. This program continues to be focused on operational efficiencies and the reduction of fixed infrastructure costs. We expect to incur an additional $5 million in non-recurring costs during the second quarter, which primarily reflect severance costs. We have established an additional cost reduction initiative targeting a further $10 million of annualized cost savings on top of the $20 million we discussed in our last call. As a result of our recently announced transaction with LabCorp, Once closed, the remaining bio-reference will be cash flow positive and profitable as measured before non-recurring and non-cash items. In addition, we expect to realize a gain on the LabCorp transaction of approximately $100 million, which will be reflected as a reduction to operating expenses and an increase in operating income. Due to the uncertainty of the timing of closing, we are including revenue costs and expenses for the full year and will adjust the total revenue costs and expenses once the closing date is certain. As a result, we expect the following for the full year 2025. Total revenues between $675 and $685 million. Revenue from services between $405 and $425 million, including the revenue from the assets being sold to LabCorp of $95 to $105 million. revenue from products between $165 and $175 million, and other revenue between $75 and $85 million, inclusive of the revenue from our Pfizer gross profit share, which is estimated to be between $30 and $40 million, from $35 to $45 million, and barter revenue of $38 to $44 million, which was previously guided from $40 to $48 million. We expect cost and expenses to be between $825 and $875 million, excluding the non-recurring expenses related to the restructuring activities for bioreference, which are currently estimated to be between $10 to $14 million for the full year, and inclusive of cost and expenses related to the assets being sold to LabCorp of $125 to $135 million. R&D expense is expected to be between $120 and $130 million, down from $120 to $140 million, which depends on the rate of enrollment of our clinical trial and the timing for certain activities for our MODX programs, including CMC, with $37 to $43 million being offset from funding by BARDA. Depreciation and amortization expense is expected to be approximately $90 million. While we don't typically provide non-operating income and expense guidance, As a result of our convertible debt exchange, we are providing guidance as we anticipate a non-recurring other expense item related to that exchange of approximately $90 million during the second quarter of 2025, which is comprised of interest expense from debt discount, debt issuance fees, and inducement expense. That concludes our prepared remarks, and thank you all for your attention. Now, operator, let's open the call for questions.

We will now begin the question and answer session. To ask a question, you may press star then 1 on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your questions, please press star then 2. At this time, we will pause momentarily to assemble our roster. The first question comes from Maury Raycroft with Jefferies. Please go ahead.

Hi, this is James Zamframore. Thanks for taking our questions. Just to start off, what are some possible explanations for the negative dynamics for Ingenla? Is it more likely competition, access issues, or something commercial related to Pfizer?