RGEN
#I think we're seeing it as we move into the second half of this year.
When you think about the way OPUS gets adopted, in the first year or two of market adoption you typically get into one column step.
Now we're seeing that we're getting into multiple columns steps, and in some cases all three column steps which means, in my mind, that we're moving into a platform.
Yes, obviously, OPUS is going to be strong in the second half of the year.
The mix does change H2 versus H1, and that's why we're seeing a gross margin difference.
Sure, <UNK>, we're also seeing a little bit of de-leverage on our factories.
It's the typical seasonal issues with holiday periods, shutdown periods over the summer and winter months, early winter months.
A little bit, yes.
Earlier this year, Sigma launched a cell culture media that uses growth factors, basically our IGF-1.
Clearly as our partner they see the traction in the marketplace.
And the first media that they've developed and launched, new media developed and launched is for fed-batch processes.
Okay, I'll take that question in segments a little bit.
But in terms of the top 25 pharma customers, I would say that our focus for OPUS has been initially on getting the contract manufacturers aligned and using the technology.
That clearly is happening.
With respect to the large pharmas, we're also making progress there.
I don't have an exact number, <UNK>, in terms of how many of the top 25; but the numbers are definitely accelerating and we are very confident about the second half of the year.
Your question about OPUS 60, we've taken additional orders in Q2 and here in Q3, and we have a really healthy pipeline of OPUS 60 opportunities.
I think the real advantage that we have now in the marketplace ---+ and I said this in my earlier comments ---+ is that the combination of OPUS 45 and OPUS 60 really now allows us to start to convert customers who are using glass columns at this scale and converting them over to prepacked columns.
And that's really our focus.
Yes, I can.
I think we published that we had a very strong quarter in affinity ligands, also in ATF products, okay.
Then thirdly our OPUS lines; and then fourthly for the quarter would be the growth factor line.
Yes, clearly we're having a very strong year for the affinity ligands.
Second half of the year not as strong as the first half, but still it's going to be a good year for us for affinity.
It's a little too soon to comment on next year, and we'll know more I think as we get closer to the Q3 earnings call.
Yes, I would say that ---+ yes.
OPUS business in general, we're targeting about and projecting about 50% growth for the year.
So I'd say we were a little less than that in the first half, but we'll be stronger in the second.
So overall we'll still hit our target of 50%.
It was less than that in the first half, but it will be stronger than that in the second half.
But for the year it will grow 50%.
Just let me add, <UNK>, just to add maybe a little bit more color on that.
As you might recall, we really ramped up our commercial organization towards the end of last year and into ---+ through Q1.
I think what we're seeing now in the second half of this year is the impact of the larger commercial organization.
Sure.
Well, we typically give guidance for the full year, so our tax rate for the full year is in that range between 27% to 29%.
We had a lower tax rate in Q2 based on mix of where our income was coming from, between our Swedish entity and our US entity.
As you know, we pay a 22% tax rate in Sweden; and in the US largely we're not paying tax at all because of the NOLs that we are carrying forward.
I'm sorry.
We're looking here.
What.
Could you repeat the question.
No, you're talking about contingent consideration, <UNK>; I apologize.
Yes, We didn't catch that.
Sure.
Every quarter we reevaluate what our current forecast outlook is for the ATF product.
And depending on probabilities of meeting certain milestones that are outlined in our purchase agreement with Refine LLC, we basically have to re-true-up the accrual.
Right now we have our accrual trued up.
We booked $1.9 million for the first half of the year; $800,000 for the second quarter; and we're fully trued up to what we believe the full-year forecast is and sales forecast for ATF.
So we're not expecting any additional accrual for ATF through the second half of the year.
But, however, if we exceed our current sales projection, there is another potential of $200,000 that we could book to meet the variable component of the contingent consideration milestone.
But that's the max, <UNK>.
Yes, that's the max this year.
Unless ---+ there's another element of 2016.
Right now we think we're well below the 2016 milestones and we will not have to pay a contingent consideration based on 2016 results.
So right now we're at zero accrual for that.
Yes, that's a great question.
Clearly, ATF has been a really nice win for us since we acquired the business a year ago.
As you might recall, we started to use the distributor network that was selling ATF about a year ago, and we've also added in a commercial lead over in Asia.
That actually has really benefited us, and we are seeing now some pullthrough on OPUS and we're getting some important accounts now adopting OPUS in Asia.
