Activity

Siemens & UTAK: Renewal of Pricing Agreement Pt. IV - October 07 VIEW RECORDING - 15 mins (No highlights): https://fathom.video/share/tysyxgx1rqk2vZe-EbsUzyE2yDnX-Pm- --- 2:18 - Raleigh Gallina (UTAK Laboratories) Hey, Jim, how you doing? Can you hear us? 2:23 - PIACENTINI, Jim (Siemens Healthineers) Hey, yeah, Raleigh, how are you? I'm doing well. 2:27 - Raleigh Gallina (UTAK Laboratories) Thanks for asking. How was, how was Cape Cod? Fantastic. 2:33 - PIACENTINI, Jim (Siemens Healthineers) I was, actually, was out on the islands. I don't know if you'll Cape, if you know Cape Cod much at all, but Barthas Renier is, um, just off of, above a 45-minute, uh, ferry drive off of, uh, Falmouth and Woods Hole. Obama's always over there. Clinton's always over there. The whole crew, I think Trump, if he's over there, will probably sink his boat, but, uh, on down. That would be nice to go, Well, you're brushing shoulders with the high life. 3:03 - Raleigh Gallina (UTAK Laboratories) I see the appeal. Yeah, yeah, yeah. 3:08 - PIACENTINI, Jim (Siemens Healthineers) It's Kennedy Island, pretty much. 3:11 - Raleigh Gallina (UTAK Laboratories) Yeah, that's too funny. No, I have to admit, my East Coast vacation and geography is more concentrated in New York, New Jersey. My father did do law school at Boston College. I called it Boston University one time, and I am still hearing about it. 3:36 - PIACENTINI, Jim (Siemens Healthineers) He is one of the best law schools you can go to outside of Harvard. Yeah, yeah, exactly. 3:47 - Raleigh Gallina (UTAK Laboratories) Oh, awesome. Hey, well, welcome back. We may get some time back. just kind of wanted to let you know conversations that we're having on our end. We did have a proposal. So to see if that's palatable to you. We are also flexible with Borden here too, but we're going to give a first cut, kind of get a gut check on Siemens's end, give you some time to mull it over too. Obviously, we're not talking about, I mean, the end of the year is going to go, but we're not looking at anything ahead of January, right? And then we'll build a regular cadence as well. So from our end, were going to suggest a, so even though we've not increased prices for this time, we just want to let you look at, submit to you to see if a 5% increase year over year for a two period, or a two year period contract would be sustainable on your end. But again, we're certainly open to discussion. Yeah, sure. 4:54 - PIACENTINI, Jim (Siemens Healthineers) No, go ahead and send the, um, a documented written proposal. I can certainly look at it. I might have something in reverse, but also in the amendment going forward for fiscal year 26, and again, yeah, to your point, even going beyond that, if volumes increase, such and such, blah, blah, blah, that type of stuff. But if they do increase, then maybe we might look at some tier pricing or something like that to say, you know, if we reach X, then it's X and things like that. ACTION ITEM: Review UTAK's proposal upon receipt. Prepare potential counterproposal/amendments if needed. - WATCH: https://fathom.video/share/tysyxgx1rqk2vZe-EbsUzyE2yDnX-Pm-?timestamp=333.9999 So go ahead and send it. I'll look at it. I'll digest it. And then let's have another quick follow-up call to see where we are on our side versus what you're proposing. And yes, I appreciate Gee, saints. It's like I do. It's like you do. You get a reminiscence, right? I know, yeah. 6:10 - Raleigh Gallina (UTAK Laboratories) Well, it's more we're acutely aware that they like to keep you busy over there. Oh, my God. 6:17 - PIACENTINI, Jim (Siemens Healthineers) It's so crazy over there right now. Yeah, people that I used to work with over in mobility in Sacramento, they just joined Health and Airs. They're on the Edmonton, Canada side, but I have a call with them tomorrow to see, hey, what's going on? talked to you guys in like 12 years. Oh, wow. Why jumping ship? Yeah, yeah. That's too funny. Well, she goes, and the Seaver project, we're in a very, very, very good position. So, any of our supplies that are closed? We'll take that ride with us, so yeah, so let's do that. Raleigh, appreciate you. It's Raleigh, right? I'm saying that right? Yeah, yeah, yeah. You're correct. So let's start with this, and if I have to counterproposal, things like that, or whatever we have to do to make the amendment work for both sides, we'll do it. I'm very confident. that we'll work this out. Yeah, and us as well. 7:34 - Raleigh Gallina (UTAK Laboratories) I wanted to actually ask if you had an editable boilerplate template that I'd be able to drop that information in, or if I would be able just to send you what I shared on the call today for you to be able to amend. I know we're looking at refreshing in general as well. I just want to not have duplicative efforts, so, you know, if you're comfortable sending that over. 7:56 - PIACENTINI, Jim (Siemens Healthineers) I'm comfortable with you just, I mean, I've I could not accept the recording, even though I see it's being recorded. I could not accept the recording. So if you're on co-pilot and you have the transcript or whatever, we can start with that. But as far as, like, adding the pricing, some type of quote, let's just stick with that for right now. And once we agree on something, then the amendment to the contract will be something that both sides will sign and authorize. It could be one year, could be two years, it could be three years, whatever we agree on. And if it's a year-on-year thing, we may be looking just the opposite of what you're saying, but we can work on something. Beautiful. And so you were, yeah, yeah, perfect, it's on our end. 8:46 - Raleigh Gallina (UTAK Laboratories) And so you were indicating that, like, our recording, it's not acceptable for us just to send that to you, or did you still want that and I can reply on top with, like, our initials? 8:57 - PIACENTINI, Jim (Siemens Healthineers) I get the emails from, I think you had. a couple, Kevin had a couple, they asked me, you want this recorded, do you want to approve the recording, blah, blah, blah. I try to say yes or no, and it tells me that IT doesn't allow it, but I can see the red thing up here that's being recorded. Now, I don't know if it's recording on your site or not on my site, I have no idea, but if it's being recorded, that's great, that's fine, you have it. Sure, sure. Are you working on co-pilot with Teams, sir? 9:28 - Raleigh Gallina (UTAK Laboratories) No, so, we actually use Fathom. That's it, I saw Fathom, Yeah. 9:35 - PIACENTINI, Jim (Siemens Healthineers) So, okay, it is being recorded then, that's fine, I'm okay with that. I think, so, what, I have co-pilot, I'm set up on co-pilot, so what that does is, I don't know if you're familiar with it, but once you have a call like this in a meeting, it takes transcripts of everything we talk about, and it's instead of doing minutes, manually, you can just use the co-pilot and you can... Manipulate, I don't want say manipulate, it's the wrong word, you can edit the things we spoke about and just use that as minutes going forward. So you're not sitting there for the next hour, what did they say? It's actually everything that we talked about. ACTION ITEM: Email Jim proposal w/ 5% YoY increase for 2yr contract, starting Jan. Include updated pricing structure. - WATCH: https://fathom.video/share/tysyxgx1rqk2vZe-EbsUzyE2yDnX-Pm-?timestamp=619.9999 ACTION ITEM: Email Jim summary of call discussion, reaffirming key points covered. - WATCH: https://fathom.video/share/tysyxgx1rqk2vZe-EbsUzyE2yDnX-Pm-?timestamp=619.9999 So it's pretty neat. So I do have it, and if you want to go with that, that's fine. But if you want to stick with recording, that's fine as well. Oh, sure, yeah. 10:30 - Raleigh Gallina (UTAK Laboratories) Well, I'll go ahead and since you've had some IT challenges with the recording, I'll go ahead and just drop the summary in an email and then just reaffirm what we discussed on the call, then go from there. Sure, okay. 10:44 - PIACENTINI, Jim (Siemens Healthineers) So you're going to send me the updated quote? Okay. 10:48 - Raleigh Gallina (UTAK Laboratories) In terms of quote, are you meaning, like, I'll just amend the pricing? 10:55 - PIACENTINI, Jim (Siemens Healthineers) Yeah, the new pricing structure you're talking about. Yes, correct. Yeah, it's just... Pretty much a quotation, what we're going to agree to in fiscal year 26 and beyond. Yep. Perfect. Yeah, I saw the agreement. You know, because we've changed hands so many times now, there's new agreements, but we're going to stick with the same agreements. It's nice and simple. And so we're not talking $45 million spend here. So it's very simple and it's very to the point. So I want to keep it that way. But if there's any areas in those terms and conditions, not the amendment, the terms and conditions that will always flow through, it's an evergreen. If there's any of those that need to be changed, then, you know, let's have this discussion within the next 12 months or whatever. But at least the amendment will take care of fiscal year 26. Beautiful. Sounds like a plan. Okay. Awesome. Awesome. 11:56 - Raleigh Gallina (UTAK Laboratories) Well, hopefully you get the chance to catch your breath, Jim. I'll send you some. Something either today or tomorrow. 12:03 - PIACENTINI, Jim (Siemens Healthineers) Take your time. It's the week we've got until the first of the year. So, yeah, I appreciate that. And thank you, by the way, for sending your portfolio. I did send that off to the R&D team that they are looking at it. I saw the – I did see the controls and the blood controls. I forget what the other controls were, but I saw the blood controls. So we do controls on calibrators and controls with our Italica HEMA folks. But there's only really two companies in the U.S. that are really strong in this area. But I can obviously have the R&D people look at it and say, hey, is this an opportunity for us? Or do we look at this in the next five, six years? Or do we look at this maybe in the next three years? So they're looking at it and, yeah, we'll see. I am not a technician. I am not. I'm not an engineer, and I am very awful with being technical on calibrators, controls, hematology, and everything else that's new to me, but I'll let them answer that for me. If we need to have someone on a technical side add them into this call, I can certainly do that, and they can tell you what opportunities UTAK may have for Siemens. Yeah, awesome. 13:27 - Raleigh Gallina (UTAK Laboratories) Well, we just appreciate you passing it along. There's no pressure. we're just exploring here, but you and I both, Jim, Nicole is my phone friend daily in terms of technical items, so that's also why we have her on these calls. Okay, appreciate that. 13:42 - PIACENTINI, Jim (Siemens Healthineers) And now I'm going to ask you, is manufacturing for UTAK only in the U.S., or does UTAK have global positions? Yeah, strictly in the U.S. Strictly in California, right? Mm-hmm, correct. Okay, okay, okay. That was one of the questions that was asked. If we were to move forward, do we have positions of UTAK globally? Because we do have customers in Europe, Middle East, Asia, and all over. is this an opportunity to say, hey, if they have positions over there, instead of shipping things all over the world, maybe there might be sites over there that they can ship directs where it would save us in logistics, customs, and not only that, but the most important thing is immediate delivery for our customers. Yeah. 14:35 - Raleigh Gallina (UTAK Laboratories) Yeah, and that's something we're acutely aware of and grappling with, too. I know that that's something we're looking to in the not-too-dissonant future. So, you know, certainly as we come to those conversations, we'll circle back on that topic as well. Okay, great. 14:52 - PIACENTINI, Jim (Siemens Healthineers) Well, then, if there's nothing else, then I look forward to your new proposal, and let's have another conversation. I don't think next... Let's do it in two weeks. Next week is going to be another challenge. So what's this, the 7th, 14th? Yeah, the 21st may work. Sure. Well, and feel free to move that calendar block around. 15:13 - Raleigh Gallina (UTAK Laboratories) We're open, so we'll keep it fluid. Okay, great. 15:17 - PIACENTINI, Jim (Siemens Healthineers) Sounds good. Awesome. Thanks, Jim. Have a great one. All right. Thank you. Thank you, too. You have a good rest of the day. Bye.