Bigpike over at Savvy Trades board found this:
Info on PESI from DRAD earnings call:
Matt Molchan - President & CEO
Yes, Perma-Fix Medical actually the parent company to Perma-Fix Medical is Perma-Fix Environmental, which is local Atlanta-based business. Yes this was an opportunity that we came across and they have developed an interesting process that could dramatically decrease the pricing on rated pharmaceutical that we use in our DIS mobile nuclear service business.
And we thought that there was some opportunity for us to make an investment to also partner with Perma-Fix Medical to help them on a few things through the process to bring their process to commercialization and we're very excited about the potential opportunities with our partner in Perma-Fix Medical.
Larry Haimovitch - HMTC
Matt, what the main driver for that deal? Was it to secure supply? Was it to secure cheaper supply? Was it the investment potentially that Perma-Fix someday could be worth a lot more money and you might make some on the investment?
Can you characterize what was most important to you about that deal?
Matt Molchan - President & CEO
Yeah, you hit on all three. All three areas were important to us. I think the most important piece that we thought was the most interesting piece is, that there was opportunity for additional supply through this new process and that we could potentially get that at a -- or we would get that at a cheaper price.
As we look at our cost in our DIS business, our second largest cost is the purchase of radiopharmaceuticals and so that we felt that was a smart move to help secure our future gross margins.
Juan Molta - B. Riley & Company
Okay. Perfect all right and back to the question the first gentlemen asked about the Perma-Fix collaboration, do you at this time have any milestones that you can share with us in terms of when developments you expect to start bearing fruit and you will see some cost benefits?
Jeff Keyes - CFO
Yes as far as specific milestone obviously we are -- I don’t know if I am going to those details, but I will say that we're looking at this as an investment that has a... we're talking two year type or more type, two to three year type operational. We're hoping that we're working to speed that up, but we would say that that's the ballpark for that business.
There is still a variety of things that they need to do. They've got a great -- they've had some very good success. I think if you read some of their press releases, they've had good success in certain tests that they've made with their process and we're seeing continued success there, but we're still looking at a two-year horizon for that is my best understanding for that in terms of operation.
Now that could depend on a lot of -- that could change based on a lot of different factors, but that's -- at this point that's my answer to that.
