Kyle Krueger's questions to ISR leadership • Q2 2022
Question
Kyle Krueger of Apollo Capital Management, L.P. asked for assurance regarding the Cesium-131 supply chain from Russia amidst geopolitical tensions, inquired about the availability of alternative global sources, and questioned whether the recent Omicron surge caused similar procedure displacements as seen in past COVID-19 waves.
Answer
CEO Lori Holmes-Woods provided assurance on the Russian isotope supply, citing a long-standing relationship that has remained undisrupted through past geopolitical events. She stated they see no complications and that business continues as usual, with potential minor inconveniences like payment methods being the only foreseeable issue. She noted that while they constantly evaluate other global reactors, alternatives like a previous U.S. source have been cost-prohibitive. Regarding the Omicron surge, she confirmed that procedure volumes are impacted when hospitals face staffing shortages and reduce nonessential surgeries, but they are also seeing quicker upticks during lulls as a backlog of patients seeks treatment.