BIOC - Earnings call transcript Q3 2021

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Operator

Welcome to the Biocept Third Quarter 2021 Financial Results Conference Call. All participants are in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference call over to Bruce Voss. ahead. go Please

Bruce Voss

is all This with and LHA Thank participating Bruce in you for today's thank you. Voss conference call.

Biocept Tim Officer Joining Executive from are President Nall, me and Officer; and Chief Kennedy, and Operating Chief Financial Officer. Michael Chief

making will within of Securities call, private of Act Reform meaning number be this forward-looking a During of the Litigation management statements the XXXX.

may, that terms plans, and generally could, identified by such Forward-looking will, anticipates, the facts expects, predicts, would statements can negative terms. potential, historical intends, include projects, should, of are not all believes, as statements estimates, or be those

Forward-looking risks, operations, or uncertainty COVID-XX the In COVID-XX any and impact that by the today's that achievements the significant factors there known about contemplated as change those the statements performance materially discussion. is are may information implied based is be pandemic. well involve achievements from for different on This Biocept's and results uncertainties and and duration, of particular, at the or statements. to results could results, the best forward-looking statements, time financial unknown of impact cause actual estimate and outlook severity means as other performance on

filings, For The XX-Q please the details is including as today, obligation broadcast XXXX. only after call by that or any Except on accurate of see call. about occur XX, live contains report events November update to to publicly this any the the this being Company's or these Biocept quarterly that of circumstances as content SEC reflect disclaims information required law, revise Company's today. risks, form filed time-sensitive information

to I'd like over Michael Mike? Nall. to Now, the turn call

Michael Nall

a for in another of strategy cerebrospinal brain fluid our everyone. is will and to metastases. with I'm Bruce, and changing updates just begin I for neuro-oncology growth by good uses sequential announcing volume. moment. pleased and CNSide progress diagnosing patients that in paradigm our Thank monitoring share CNSide test afternoon, quarter CNSide on you,

first with driven reporting of another service exceptional The performance RTPCR in to Turning performance $XX We're million in of by team financial to flows this primarily high Service. we quarterly as revenues quality on Biocept than Testing supporting and profitability our results. resulting the pleased financial more continue core management cash with pandemic, is oncology business. the investments providing the our valuable assist COVID-XX

Our revenues of quarter was QX our XXX% of which also QX testing, we're the for and quarter increased first year. XXXX, full COVID-XX up XX% from from this

became quarter's on declined testing call, As prior vaccinated. COVID-XX mentioned volume more from as QX Americans last quarters

volumes requiring be are community California more at being the the We driven we site QX, now customers. Many collection contract colleges college vaccinated on effect sent Delta in higher locations. majority than to California with mandates and COVID-XX sample our with returned our campuses to for as volume XX skilled nursing the part community emergence be with by well continues week. some said, testing of to That taking staff students this saw convenient due to COVID-XX implemented system. volume During of as the variant under from testing

and steps June COVID-XX We were We than third This more prepared services live have QX, testing taken COVID-XX automation. receiving the well includes since increase providing samples for than to the samples improve quarter. samples in of received influx XXX,XXX in XXX,XXX already began having in of we more capacity XXXX. testing

and support as process these capacity oncology our Our CNSide volumes other those to also will investment improvements in testing increase.

weeks in combined nursing the to launch to COVID-XX coming facility this and received test be we customers. Turning testing, particularly well will skilled believe influenza by and expect our our

treatment as COVID-XX and well both flu those flu. information for be combined infections, can our between making. and testing As could COVID-XX This infected critical we move through identify flu as season, distinguish with decision

load validation, following benefit expect testing, assay update we this of of viral As quantifying year. with school now regardless safely end begin load assay be other to activities. our or Biotechnologies viral COVID-XX commercialization can Quantifying variants. to oncology to the the co-developed The in Returning determining can return of by work, when key the patients of a business. is Aegea final in on

to the We with by data the central manage system physicians being generated and the a are highly encouraged CNSide. valuable patients ongoing provides metastasized with has to that This brain. cancer and adoption of resulting assay and nervous tool diagnose

critical questions. three Our assay answers

First, is cancer present.

identified with the Utah XX we quarter. volume, target. CNSide. spinal analyzing patients oncologists the the in will mentioned of unique leptomeningeal next six our non-small cell importantly in the A a leptomeningeal cell of treatment actionable XX% test suggests four estimated retrospective spinal Second, launch An the years CSF with of XX trend X% symptoms lung this the than provides adoption, repeat of tumor brain what through our is study over who using cerebral patients untreated. And on membranes than ordered and disease, as of sensitive quarter non-small cells academic on the be cancer weeks lung cancer debilitating become have quarterly fluid the tumor by this customers. detected Neuro-Oncology which study community cells community complication to assay, time. while develop cytology to disease. metastases, more also non-small with outcomes. to targeted as presented biomarkers reduced of majority, year in third continuous when XXX% patient same Center CNSide from three strong increases third, study University is in each was that beta life consecutive care detected reaching And Huntsman CNSide a of conducted is cell the year. standard the the sequential will left plans CNSide in institutions XXXX, samples. with I assay Results have just our strong that diagnosed decisions or patient by and see the this tumor This and make for allowed lung for extended some a cancer cytology end in lives seen in is cases. further improving more and as have average Society neuro-oncologists Since support brain early growth patients view SNO the in and cells, to in expand focusing there neuro-oncology cancer drive patients time oncology This which broader disease the further XXX,XXX the and are is spreads the surrounding the we than that year to value We indication for recent outreach, hosted more August. conference To our remarkable now expectancy X% include our in by at just its leptomeningeal prestigious to cord. essay volume

with the We week. will later annual held being SNO collaborators generated be this at sharing CNSide conference in data of additional supporting use new Boston

are standard clinical conduct guidelines. We of we to a NCCN This clinical anticipate CNSide refining to program, towards working two observational the Under will securing publish data for we influence includes care pathway our XC status studies. expect longitudinal guidelines. under those

of a be breast standard for with monitoring first The management care therapy CNSide the brain treated for of will being in study, metastasis. patients and comparing lung cancer response

registry care indication for will of second and various longer of study tumor use. term standard a comparing tumors CNSide be to and The cell-free DNA

of Breakthrough mid-XXXX. CNSide test superiority for the cap offered That lab potential a care begin studies validated to expect first said, of standard these the XC Currently, is standards. Device as CNSide data by over for being application continued collecting to of the FDA CLIA of We an supporting developed and the resubmission Designation. we demonstrating

Our CNS our with current offerings. XXXX. involvement as CNSide expanded to is Validation common third with leading system. solid in and well billion We're than QX U.S. estimate tumors for to for the to from two and expand breast targeting ourCNSide than cancers current central volume cancers cancers lead commercialized nervous $X research underway validated assay the We all at CNSideassay that cancer involved. identify are cases in the cancers launch involving the for other involvement metastatic Approximately two which is for the more originating are the XX% breast, lung to often most CNSide testing activities CNS testing most patients market of of our annually. that CNSide lung melanoma, these which is as

commercialization Following we begin expect validation research of of of majority what testing. to is currently the CNSide expanded assay,

across our the coming As will that U.S. an the update in centers the we on X,XXX lung Quest our marketing. agreement available with Target Division Quest Selector in Quest which will begin service Oncology patient then their be time at weeks, panel Diagnostics, expect NGS

difficult tissue treatment. testing need to cell guide serves profiling when panel target of patients collected, as can diagnosed biopsies can from be tissue amount provide NGS be cancer. lung insufficient of Our patients. with lung to these results genomic important to the an This Even selector retrieve advanced non-small provides

we detect technology with incorporated this the a panel common that's U.S. qualify results. This is in blood-based quality enhances accurately QX this that in new in tissue assays biopsy excited actual to year, longer targeted life. CDC them and of XXX,XXX clinical provide Further, lung cancer our of Lung testing newer publication to are XXX sample Our technology with be times. with access to physicians to cancer Tim sensitivity recently of therapy, cell sensitivity And allowing technology journal Aegea. deaths. that assays a also world's is to the essential Selector testing cancer that the patients is diagnosed that, can to non-small cancer the showed cancer for third diagnostics. able and study with increased patients Target the with we lung over cancer. spinal turn treatments COVID-XX and molecular of therapies Quest panel. better the than incorporated Switch-Blocker partner is is announced Switch-Blocker more The are blood, whether sensitive our lastly, including a to financial And Tim? we the cases like of than to biomarkers highly co-developed or more often of XX% is live the the identifying most fluid. of I'll laboratory, rare multiple are leading enhances call that and estimates review our largest our PCR-based to used peer-reviewed extremely the the cell study mutations. This cause patients cerebral liquid in

Tim Kennedy

and Mike everyone. good Thanks afternoon,

For million QX million, XXX% of QX revenues we're XX.X of which is XXXX. from up XXXX, reporting net in X.X

RTPCR Mike higher increase As quarter first was COVID-XX third year's full to QX providing with the volume. due revenues sample our services, quarter testing XXXX this of mentioned, in

Selector included XXXX XX,XXX testing, RUO oncology kits, XX,XXX to in attributed Our revenues Target which in and for other third and payments included for development the collection commercial services in XXX,XXX blood COVID-XX services. development quarter XX.X test for revenue in tubes CEE-Sure and million distributed million, XX.X of revenue, revenue testing products, tests

test of As was significant from revenue, sharply quarter system. XXXX as XXXX. total and comparison, million development and XX,XXX in the for revenue, year commercial RUO anticipated and we testing tubes Delta total quarter services XXX,XXX, volume revenues testing Total college up our variants X.X the of million, the period. XXX,XXX the collection samples from to XXXX compared QX blood from XX.X It's total products CEE-Sure agreement accessions XX,XXX attributable XXX,XXX QX a received services. X.X included with X.X significant was Target to sequential third revenues which X.X test and million of for community we COVID-XX of in development distributed to due the is accessions received increase In kits realize XXXX, revenue with cost prior COVID-XX Selector of a million exceptions. testing, also increase mainly for in and of in oncology XXX,XXX California QX This payments in for million other

consumable the due increase primarily and With in the collection increase related COVID-XX kits to expenses.

efficiently the to fixed a more in to late approximately facility million handle on XXXX. as margins better XXXX of to COVID-XX we our structure, expense gross consumables XX% kits. completed year volumes As Contributors expansion pricing were we million costs X.X of components net this third decreased quarter cost and a revenues of of leverage lower X.X expenses from revenues the relocation percentage of Implementation for higher and prior COVID-XX included to ago. year and collection by R&D period. compared our automation continue related with the

million CNSide. versus headcount to we coming in in XX.X to XC with and XXXX. and for increases headcount the weighted the and material potentially increase expenses and increase period, revenues were X additions, with higher share X with months first on with was the nine increase to Operating uncollectible for collection Net X.X for clinical for to aged accounts revenue, COVID-XX and expenses, included XXXX quarters, Selector for expenses CEE-Sure the in XXX,XXX quarter in blood development, in a expenses XXXX The QX we compares tubes primarily kits development, million for was turning loss first million or We test million of were for shares the Revenue XX.X RUP from This G&A nine months outstanding. commercial million per other test revenue now month for first XX.X for operating improvement related the the XX.X the XXXX revenue and first services. million, first nine $X.XX year-to-date shares due average share XX Net or in for in first of in services million, first average per $X.XX which shares attributable million million diluted nine the of X.X development expenses primarily costs and loss XX.X and or as Sales is associated an is X.X million loss $X.XX improvement per net with to or million of expenses outstanding. included XX.X third Target receivables. marketing the was expenses of the period related XXX,XXX as on reported outstanding. XX, With period million to clinical share with X.X months we XX.X And the cash weighted million X.X from cash XXXX X.X costs increase of weighted XX.X weighted nine million the from XXXX XXXX XX.X payments months of prior XXX,XXX third of million, XX, investments X.X and in XXXX of million for reported nine Operating a volume. million the expenses Net study. increase the and R&D results. G&A improvement expenses, up X.X QX for X.X XX.X million XXXX. of the income XXXX compared first of million. diluted significant of begin months income months million $X.XX quarter income which XXXX CNSide expect reserves on costs were million, an outstanding. X.X and XXXX, the from million nine the represents XXXX, due of of revenue on months nine R&D year of XXXX. net X.X This revenues XX.X sales were other million, the related included marketing of the share for COVID-XX in of of XXXX million of a XX.X average million, shares as December per equivalents September average of marketing million,

increase that, during ATM the quarter raising Mike. our ended included And months over turn our I'll back XX, X.X three call cash stock the sales facility. of third common to through balance under Mike. with XXXX, the During now September million

Michael Nall

Thank you, Tim.

seven, Quest remind Before institutions respected testing include want two, quantitative in of three, fully by collaboration CNSide questions, the by opening our tubes; for guidelines; publishing Target the entering menu increasing six, the sales and commercial CNSide support to your both and and corporate types CEE-Sure five, COVID-XX of I sales studies supporting our with commercial assays; into of priorities, strategic of partnerships kits you and of the our presenting under with Selector studies liquid offering collection NCCN following; to our additional and testing. and in service full Biocept care which with standard high call Selector number to one, community adoption the testing and conducted technology CNSide agreement Target like results support launch tumor blood with biopsy our additional clinical expanding initiating of Diagnostics; our assay; our to PCR continuing COVID-XX growing four, influenza of combination quality qualitative assays biomarkers; and range both

provides patients Target decisions portfolio cancer. based critical determining physicians with diagnosed assist to Our Selector treatment of their for information in assays

information patient cell-free on Today, and cells, tested XXX,XXX Our with spinal differentiated and our our proprietary COVID-XX tumor have cerebral in leverage DNA based approximately from samples both and biomarker than assays assays blood fluid. platforms we more RNA that XX,XXX samples for oncology received testing.

the revenues end of related expect We meaningful through to COVID-XX testing remain to XXXX.

about as weeks, per vaccine care of said, testing as collaborations assay mandates CNSide, volume increasing With our COVID-XX the clinical circumstances we past seen week. of our with develop that That with goal and XX,XXX we've averaging there samples imposing volume. such designation. we many could several are of anticipate colleges the obtaining variables impact standard adoption Over studies

sheet strong balance overview, to improving to we're support patient a questions. choices outcomes. of treatment have our And We commitment that take clinical and Operator? now ready with

Operator

Thank [Operator Instructions]. you

Michael Nall

we're for SNO mention that Nicholas assay later which at week, of the manage Dr. of Yale in being Annual disease be patients of like will CNSide events, in featured this our question, be utility to the metastatic to with cancer. While Meeting discussing two Blondin the will School waiting first I'd CNSide neuro-oncologist, leptomeningeal held Medicine in

Dr. featured Amir a Northwestern Dr. Webinar KOL presenter Institute, April, Priya Azadi CNSide Barrow and recall Neurological was Dr. Blondin on University. our from along in may from You with Kumthekar that and the neuro-oncologist,

a San and with holding invite both Conference neuro-oncologist held St. Santosh Morgan XXth. biocept.com. the Dr. webinar our during in-person Wainwright with being presenting investor will Dr. we to homepage XXth webinars Institute. events both be Also, presentations through at view by Nagpal from Conference, JP January held Kesari We in meetings you cosponsored to the Bioconnect CAP links Francisco H.C. and by at Healthcare also Stanford; second available Seema We today from with Cancer John's virtually

Okay, first operator, we're for ready the question.

Operator

of Our Jason Group. comes Maxim from first Please ahead. question McCarthy go

Michael Okunewitch

Thanks on This taking the is Jason. my for questions. Okunewitch Michael for line

wanted of COVID-XX to a as many reduction cases. ask state, hospitalization across looking prevent testing is about it bit the antivirals with I a headed XX% So, are QX which and like seems as how should we could at decrease oral approaching forward, goes be because cases now for of

durable COVID And should Company testing skilled market to going we of colleges forward? changes about position community be in nursing target the business the COVID how think So more Biocept's does and cases? to

Michael Nall

Well, I is with course, lot the also question industry future predict question. in whole in think you what asking the there's same know, that of the And a about the to volumes.

think, to going go up and continue I to of kind it's down.

As you of, some even know, some more happen parts still outbreaks California, state some here regionally, you're of for seeing In and the example, here outbreaks. the of in there, rural now.

So, guidance bit that us give we're trying or little is to our busy, keeping a now average and right a of currently. X,XXX week, XX,XXX, that's

little and bit nursing be is that And some because big a a why in need with testing we strategically, that volume population going So you seen to the very of on for with their skilled centers, of that declines never thing we focus you patients. know ask is kind to routine that's now. already. it's versus important other currently have future. where as labs we of have risk residents high the kind stayed which for have the of these we have what's of But at. said, you gives you And be One seems where that though, out we're balancing there,

add? we testing you that for of want therefore, will that do that the anticipate continue be serve. folks Tim, to so And we population important

Tim Kennedy

centers XXXX, that up Yes, that's right? pop-up were collection versus exactly drive throughout prevalent pretty right

Michael Nall

right. That's

Michael Okunewitch

with testing. continue And durability expand to sample one of on test? potential kind like I big influenza the testing maintain this relationship give want your that to single combination it I'd current just kind vein. contract? seem Is to increase you. of does into plans built of Thank you've to this to this a improve your

Michael Nall

exactly We is important centers, provide. determine if them, same That's like from right, employee especially service And No, test they asking also for the critical resident skilled levels has an the they you're both point. of for the thank influenza, for a important and them sample. same asked have will from we nursing it's for can someone when know sample. you It both for they anticipate and COVID-XX actually that. who's course, be to impacted. we this, or And level the this for

Michael Okunewitch

just largely at very surge? I you All to much. how terms right this looking ask we've volume the Delta exited about testing oncology recent market right, one more. thank pre-pandemic, versus want And of now is in as

Michael Nall

the folks lot groundbreaking which and in most the back pivoted nervous we're we're with uptake today, efforts, cancer this transitioning think, helping is stage major our is neuro-oncologists on central test rapid tests late and at Company, you as of we're that heard doctor. academic the we're our the getting now getting I the neuro-oncology, as Well, brain. CNSide, where have metastasized are whose a for of and patients our And from who to prepared that system remarks towards we've cancers has to calling centers.

be relationship with what biopsy On gets We're that The this the this forward. we're excited very the could their about able in has patient for centers. to service have has Biocept that excited of amount fair that broad liquid to going our And a as and reach X,XXX about blood quarter blood there'll launch. mean applicability more a be side news Quest. good Quest, of have on ready partner for side, competition

Operator

to [Operator for Nall everyone, closing the concludes our over Instructions] back this turn to Mike And remarks. I'd conference session. like any question-and-answer

Michael Nall

great on thank company. here next conference have and full On again in quarter and a Thanks financial results. for behalf participating call, the want when Biocept, our Board for report your providing XXXX in our on hard operator. progress to call year and Well, team I day. thank you, update today's and forward to we of our our Directors We of look interest fourth working an March during everyone everybody

Operator

We thank today's today's Thank you call. all you, This attending sir. presentation. concludes conference for

lines your day. You have a wonderful and may now disconnect

Biocept (BIOCQ) 16 Nov 212021 Q3 Earnings call transcript