Euro sign html code: Edited Transcript of DIA.MI earnings conference call or presentation 31-Jul-19 1:00pm GMT

Okay. On — let’s talk about the contract guidance and all the rest. This — okay, we have 3 contracts to be renewed, 2 in the U.S. and 1 was actually global. We renewed 1 U.S. lab and we renewed — and now we are pretty much renewing the global agreement with the other lab. Now our concern, and I think everybody is concerned, it’s nothing to do necessarily with what is going to happen in 2019 with this. Yes, there is an effect and there is an effect, because for some of these contracts, we are giving rebates, by the way, or it depends on the structure. But the real concern was that, that business fundamentally was a good chunk of our Vitamin D business and everybody was actually was — some people were thinking about doomsday scenario where the time came when Vitamin D fundamentally would disappear from our business, which didn’t happen. And so I’m saying now, 2 of the 3 have been renewed. And in total, 3 cases, Vitamin D is there with us for the foreseeable future. Certainly, there has been a trade-off in price. It always happens. But as we have done in the past, the trade-off in price comes with a positive effect on more products that are brought in line from these labs. So to make a long story short, I think that strategically, it’s very important for DiaSorin that we renew this contract, because we remain on the map of very large labs that will, like it or not, continue to buy everybody out and continue to increase their market share in the major markets, namely U.S. when it comes to Quest and LabCorp, and Germany and with Europe and Australia when it comes to Sonic.

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