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    Dewey Steadman

    Research Analyst at Canaccord Genuity Group Inc.

    Dewey Steadman's questions to Adicet Bio (ACET) leadership

    Dewey Steadman's questions to Adicet Bio (ACET) leadership • Q3 2018

    Question

    Dewey Steadman of Canaccord asked for the financial impact of the VA contract loss, the scope of the failure-to-supply penalties, remedies with suppliers, the effect of weather on the agricultural business, details on financial covenant waivers, and the expected product launch cadence.

    Answer

    President and CEO Bill Kennally quantified the VA impact as roughly 15% of Rising's revenue at a 10% gross margin, affecting multiple contracts. He also noted that failure-to-supply issues impacted several products and that the company has rebuilt its supply chain team. COO Walt Kaczmarek commented that the ag business was performing well. Interim CFO Becky Roof stated that waiver details would be in the 10-Q and that longer-term solutions are being discussed with lenders.

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    Dewey Steadman's questions to Adicet Bio (ACET) leadership • Q2 2018

    Question

    Dewey Steadman from Canaccord inquired about CEO Bill Kennally's initial impressions after his first quarter, strategies for stabilizing the API business, the outlook for the seasonally strong third quarter, future tax rate modeling post-Tax Cuts and Jobs Act, and the current state of customer contracting and pricing pressure in the generics market.

    Answer

    President and CEO Bill Kennally highlighted the commitment of ACETO's people as a positive surprise and operational challenges from the Citron acquisition as a negative one. He noted the API business faces headwinds similar to generics but expects a Q3 performance increase. On market dynamics, he stated that while harmonization with major customers is largely complete, new ANDA approvals will continue to create pricing pressure. CFO Doug Roth provided guidance for the tax rate, projecting around 30% for the second half of fiscal 2018 and a mid-20s range (26-27%) for fiscal 2019.

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