IDXG - Earnings call transcript Q2 2018 | Interpace Biosciences, Inc.

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Operator

Good afternoon, everyone, and thank you for joining us for the Interpace Diagnostics Conference Call to review the Company’s Financial Results and Operations for the Second Quarter and Year-to-date of 2018 as well as Recent Developments. The earnings release detailing second quarter results was issued after the close of the market today and should be available on Interpace’s website at www.interpacediagnostics.com.

Before we get started, during the course of this conference call, the company will make forward-looking statements. We caution you that any statement that is not a statement of historical fact is a forward-looking statement. This includes remarks about the company’s financial projections, expectations, plans, beliefs and prospects. could on conference analysis to described call risks uncertainties based date of numerous in are to and the results of and that the statements forward-looking judgment from as and the important differ statements. These materially actual those cause are subject and ended include made XX, periodic as XX, the statements. Form the March Form quarter risks shortly, statement Risk and safe the These XX-Q statements in uncertainties the XXXX, the filings, well section call discussions the conference for today’s with previously associated for expected this and release well section the as as on include quarter harbor be public Interpace’s are filed the which which forward-looking news with March on filed the forward-looking in described filed, XX-K to in second XXXX in XX-Q Factors SEC read these investors Investors consider risks. and potential should or carefully reflect update Interpace or assumes so. to and obligation do actual no statements these future not to outcomes events does intend to forward-looking

in and supplement non-GAAP table to the provided is or the the numbers, and principle release, GAAP on generally supplemental non-GAAP information be accounting non-GAAP historical A included GAAP provides which accepted available have information may helpful to company’s is website. that company’s earnings meaningful We we information future believe information. the performance. addition, this information assessing reconciling In in its

Stover, over Diagnostics. Jack call Now the President Chief I Executive would to like of to and Officer Interpace turn

Jack Stover

With is Early, we Officer. begin in update will joining date, the progress our with performance ended a the of on Financial Darren. XXXX to Good quarter today I for us more you second afternoon, Jim XXXX. today XX, call and you, the and quarter review for Chief detail. both then will an for financial of Thank thank our our June review me

that up questions. we your the open for Following will call

calls. I mission do on remind me as you of our Let all

the in commercial better line clinical integrated molecular medicine pathology technology latest provides and and bioinformatics company leveraging fully decisions related patient are first for and personalized management. tests by diagnostic We a improved that and informed services

we you on commercialized As currently diagnostic know, tests the have four may market.

ThyGeNEXT ThyGenX, with or specific concomitant to used providing ThyGeNEXT, of for commercially sequencing nodule in of test U.S. to combination our with evaluation assessment ThyraMIR, that rule-in cancer. greater is improves molecular in a assessment accuracy nodules thyroid When cancer gene our diagnostic with and for for corresponding is risk the first now outcomes providing preoperative thyroid we of which risk bioinformatics First, and is and physicians thyroid ThyGeNEXT determining classifier expression clinically ThyraMIR integrated cancer available what next-generation combined typically a PancraGEN sensitivity is by is single actionable first microRNA testing confidence superior nodules. identification. of this only highly service cysts and is combined analysis solution. is pancreatic test believe subsequent for

unique test molecular new series has fourth loss markers newest tumors and differentiates a the by a tumors primary using heterozygosity. RespriDX, Our commercial metastatic lung been fingerprint of that and product, launched is molecular a between identifying of recently of tumor and and

quarter The of this Interpace. sixth quarter improved first XXXX over for the sequential quarter the quarter revenue was to quarter with represents outstanding compared second This revenues of of XX% second year. another growing

grew the the to when over quarter second over year-to-date compared same XXXX XXXX. quarter second Our revenue revenues year-to-date period of XX% of and grew XX%

while profit. record franchises, improving Our rationally resulting our our GI and test in margining and our grow endocrine continue for our grew improved gross to aggressively we while Further, pricing our revenues. both volumes business cost,

of quarter comparable XX% over of XXXX. period loss the was improvement for a second net Our XXXX the

end the and no cash cash in million in a hand remain while debt. $XX of long-term stockholders June maintaining position cash and XXXX, with $XX.X of we million equivalents good excess at Importantly, equity on of

both we mutational ThyGeNEXT not indicators thyroid nodules treatment as out gene identify with only new and included additional and ThyGeNEXT characteristics. proprietary our includes for compared panel molecular to set to Endocrinologists Our other and indeterminate malignant of Meeting. available make a enabling of molecular ThyGeNEXT, not now also ascertain Annual of fusions launching ThyraMIR rules nodules, mutations commercial decisions other a benign Overall numerous level cancer cancer believe or aggressiveness Association to but RNA at is successfully interrogates physicians and markers, precision more in progress products. combination with rules expanded ThyGenX of the Clinical comprehensive American

Vanderbilt both We a and to and lesions access agreement in bankruptcy the access began entered and ThyGeNEXT also again. also ThyGeNEXT academic Nashville, biliary agreement We we HealthCare cysts with And and Genomics BJC the expanded Rosetta’s system Louis medical pancreatic healthcare pancreatic an beyond largest of an one PancraGEN to number to former providing Rosetta thyroid include into entered solid customers in ThyraMIR St. Missouri filing. the in application providing transitioning in ThyraMIR. country the with strictures into largest following to of University of Center Medical integrated centers us launched

As their indeterminate use to biopsies. nodules we were access as to of the support thyroid desire potential to slides able progression

be this more We transition the expect felt in of the benefits near-future. to

announced plan as of ruling-in and both it addition plans an reimbursement ThyGeNEXT in lifeblood XXXX. cover ThyGeNEXT combination Shield covered largest know, the the Blue and healthcare providers in the approximately ThyGeNEXT, testing accompanied Year-to-date ThyraMIR company. for performance by of to recently, to to the Blue testing nation’s agreed Also diagnostic has of ThyraMIR. XX% one we are have given of ruling-out cancer. XX Cigna Cross cover the is agreed platform since which well, Today that As order orders a you ThyGeNEXT

and journal and on Presenting year when PancraGEN decisions plan data the as outcomes year. companion to a new quarter. our for traditional value as our data Washington molecular five Meeting. preparing we Week, results determine end study publications. study registry to imaging their plan in to from clinical submit management tests results in on the impact to for our Annual progressing publish modalities complete publication on nine sufficient test patient of a the by by registry, October thyroid abstracts with and interim samples Our or the to a to included outcomes for of with Digestive of used DDW Thyroid later Disease data next early incremental clinical American progress which meeting We third acceptance at institutions upcoming for this D.C. also diagnostic submit the Further Association and validation the analysis a to of peer-review ThyGeNEXT for manuscript patient enrolled the the successfully thyroid

expanding cyst validity peer-reviewed the progressing a We’re further using of evidence beyond BarreGEN pancreatic a manuscript publishing our clinical moment. on CEP for and in which expanding PancraGEN and utility we program, discuss PancraGEN describing will and

the CLIA matter made we size bid fronts than were In and to in March, July with notified price well. XXth several lab there. requirements of now On and $X.XX our we CAP have certified a our and construction Pittsburgh also progress on that closed. laboratory requirements double project NASDAQ as again major minimum compliance us listing We renewed their lease is the in more operational that since initiated

team and the Interpace cash redesigning billing to initiated we and including our reimbursement focus section process collections. Investor to in-house the the more website expanded make Relations of on also user-friendly We it

assessment completed an our of our We and ability in also and in-house demands. Laboratory that successfully to customer determined up our the it Systems future growing independent Information scale supported business meet

focused is critical three progress principally our in is pipeline and areas. to future Our key

also the First on commercial product to is endocrine by in access in And expand revenues levering update acquiring products, Today who expansion our our outside focused which approximately are offerings of United of you our the States. practices. data also offering the will we lastly GI and in many of partnering and team and therefore physicians X% our have in foremost and are outside capabilities continuing high-level next. our to utilizing while seeking of U.S. BarreGEN; That licensing bioinformatics, product and offerings and I our on

is excited update So BarreGEN. XXXX about a in likely BarreGEN major and let pipeline on we’re XXXX as well. of focus me you ours BarreGEN,

a aim you the of to know, risk a in esophageal an Esophagus U.S. Esophagus. approximately stage early Today Barrett’s have may patient’s on with developing is patients cancer. at risk BarreGEN assessing the with classifier Barrett’s X.X adults used of As be million

of XX years the same PancraGEN over been for developed own PathFinderTG utilized and assay. have BarreGEN approval our on the by data we to obtain We has platform way platform, that

have coverage reimbursement today BarreGEN. however, for do of not we As

key aggressively working to KOL and seeking as we support BarreGEN. gaining opinion leader are change are follows; we of However, or that

visible risk esophageal signs to of underway study our to support cancer, the prior to cancer. years clinical any patients validity Importantly, ability identify now to progression at second of of BarreGEN is

or support variable We Clinical CEP data by of guideline BarreGEN BarreGEN can are adoption, options convenient to both specimen are way course, types usage which to to expand and esophageal validate on physician individual to of Program physicians Further, their and experience the of BarreGEN that purpose to is our continuing seek of provide gather currently reimbursement. additional with such we working practice. Experience we

technologies CFO, care. like use the say and With call to other information leader risk for would to critical of Early, I’d standard in be assessments the our quarter assess hand off opportunity the state to believe companion the specifically to Jim? that but year-to-date. most discuss this we and with provide and of where Jim highlights potentially Lastly, to financial have important continue BarreGEN the we improve that to disease the I importantly, a we

Jim Early

on elements of good and focus performance afternoon, you, Thank Today, Jack, key position. I like our some would to financial everyone. and

$X.X growth basis our be mentioned of endocrine the $XX.X also improvement XX% net a an be XX% XX% comparable previously before The accounting both for the XXXX. of majority at year XXX the this reasons our XXXX the of $X quarter a to and comparable estimates million quarter. and and in year of revenue the $X.X over principle over to from part revenue under cash accrual increase. million approximately was were year-to-date. endocrine year-to-date change million units in of prior As of our business. the prior the beginning a for was $X.X The GI ASC of the continues The and to of of was period quarter expansion mentioned, second increase the increase for adopted million reimbursement, increase our million, the franchises. or period Year-to-date revenue from growth increase Management

as Our over XX% second the for XXXX quarter profit. gross compared prior the the in of an our to gross for was XX% for the million gross in resulting $X XXXX second same XX% in increase XXXX. year, XX% period percentage to Year-to-date profit of profit compared was percentage as quarter in

case we board the sales where our in spending commercial an to especially $X.X in expanded million our the service have activities increase XXXX $X.X accelerate primarily Our gross grew further we for sales prior Sales revenue $X.X in production same in to increase versus fixed the were business product production increased our due second costs charged relative thyroid the and as are and as of representatives percentage million quarter our many million in nature acceptance help Year-to-date expand compared period costs efficiencies to and volumes XXXX. of comparable of across as profit marketing the period million the the of for $X.X adding our marketing of year for our to to variable. were and growth. costs particularly

quarter the marketing costs and to for second Importantly $X comparable for $X.X year-to-date were General development, million to comparable as as sales was to period a consulting the of are in Research million to fees reduced prior revenues $X.X costs quarter as of and of was to XXXX. Overall to period for and compared expense, mostly as lower $X.X year-to-date to million G&A and XXXX. compared G&A of comparable Year-to-date period million compared transaction compared second administrative quarter $X.X XXXX. for were XX.X% same XXXX XXXX compared compared the $X.X $X.X the R&D year. the due percentage our of million XXXX. costs costs $X.X second for the XX.X% XXXX G&A million XXXX. in for as million the for the million period as were of XXXX R&D of

a for debt XXXX $X.X a of XXXX, result quarter of information loss net loss second as As included on in comparable to $X.X million loss a for the period the million XXXX. just of $X.X of the was compared million of which noted, the extinguishment

change which XXXX. Additional in in compared million fair million XXXX, year-to-date net well extinguishment period XXXX million included loss loss debt for for period year-to-date of the contingent million to on $X.X – began consideration comparable as in $X.X was a value a favorable as comparable $X.X $X.X as of

purposes debt, and as amortization noted fair and adjustments a the as cash discussed depreciation compensation, loss As earnings release adjusted taxes, contingent We we measure often excluding EBITDA before of our interest, trend as containment. in impairment, – asset million refer three June our earnings quarter or value evaluating XXXX. XXXX and cost month taxes, revenue our in million operating consideration, to confirms we Adjusted year-to-date our EBITDA in XXXX operations, million adjusted was define financial other XXXX same our periods ongoing adjusted and gains above loss negative when revaluing XXXX EBITDA mark-to-market depreciation usage. confirming for interest, non-cash adjustments $X.X well to XX, income $X.X from second $X.X amortization continuing stock-based Accordingly warrant in position. extinguishment of related $X.X ended liability on Cash expenses to non-GAAP the XXXX the EBITDA was for of our versus negative and and and charges. versus negative million this quarter

to XXXX Our month has million included June our costs, were $X.X expenditures of costs and burn $XX.X for at our $XXX,XXX to cash burn been in and greater cash costs in and types XXXX was averaged year-to-date cash per the have discontinued from transaction operations. extent million, second quarter in and These of declining the position XX. less end amounted monthly restructuring than through XXXX a

in spending at forecasted remains cash collections month. burn year and the $XXX,XXX per factoring estimated for Our

liabilities at basis X, principally XXXX accounts net accrual $X.X of million on end million basis the of all the ASC XXXX effective a recognizing under Our from $X.X of our increased to to on receivable, cash adoption due January $XX.X an when revenue from $XX.X June a in groups were million XXX million certain were Total XX, assets on XXXX. million prior was at total stockholders’ revenue equity the compared to recognized payer year $XX.X resulting basis. and of

Importantly, no we the end the long-term as debt quarter. of had of

currently turn XXXX combined end Jack headcount Our and that, the of year marketing, ministration. made at compared XX as sales and operations let XX in XX to in the call XX and people in me With up is and R&D operator. to Operator? XX back

Operator

At we time question-and-answer Instructions] will session. conducting this be a [Operator

Jack Stover

Darren?

Operator

Yes?

Jack Stover

commentary. I think you missed the the of section in closing terms

do sort take from it the of we me Q&A. Let before

Operator

Okay.

Jack Stover

Okay.

we get just quickly. call let me we the it to ability demonstrate continue to the improvement do deliver date I’ll So In wrap before up Q&A our to continuous and XXXX to growth. in

performance remainder such points cannot the that year build date, as the for these obviously we plans opportunities of or Our value are believe that to drivers be we and multiple do any have we on of could inflection the factors guarantee while to following. all important

million our a foremost, for would in be and that. us that $XX delivering First organically is annual and over we’re major reconfirming sales milestone target,

retaining XX as that reimbursement Blue Cross as is target and gaining talked Blue our attaining plan the all, in growing first as we in based such Shield about this coverage. number and confidence a well of Cigna Our of success things; upon the

of and chosen ThyGeNEXT, also up share thyroid to and manner. highly capable diagnostic physicians needle PancraGEN commercial outpatient principally assays evaluate This and PancraGEN to effective ramping ability than a fine as targeting aggressive allowing the it largely effective as launch makes to X. effect the that of should have our day assay January services have has hospitals more or XX for our team molecular in more our been FNA our order of The our more to accounts We thyroid been for timely our biomarkers expand be to course easier to further. aspirations. rule converting Thus well resurgence supported slides process in of fair assays, Rosetta further now participate due eliminated and

both Additionally and biliary and as the solid this we well importantly, we have for for bodes expanded PancraGEN lesions future well. and think

early very niches are other important asset assays in in negative Beyond delivering utilizing by many. remain not cancer prognostic strong very BarreGEN will a most cancer in recognized over CIO meaning you, XX by with positive the the top focused the are Applications, position. who patient only that in we predictive on Esophagus a activity be for monetized done embraced we’re risk And like for are classifying were cancer course, in molecular will but that ourselves on an versus Applications, by happen who our and and therapeutics us opportunities. sales Barrett’s country. level CIO not and at magazine And those we tested and the opportunity bioinformatics is problem to is feel known considered We company. in also saw in the the trade likely the We experience marketplace. that remains one unique strong us is it’s license in never esophageal even what we progress right evaluation of positioning we’re bioinformatics well years growing focus as XX,XXX we a the patients companies We allow uniquely necessarily well To place. as patients in create us course, free. that in opportunity the of for we the occupied can until announced value And microRNA our a assessor with and honest creating Barrett’s growing less capabilities our assays the the over key opportunities a seeking U.S. will healthcare new as last five importantly to to and of certainly believe fact we classify And confident for on opportunities have products to a growing as stage Esophagus, those with we’re simply an really data epidemic next you leveraging and constantly remembered may to today. year products. finding operations acquire or them synergistic commercial us have already in infrastructure our

well commercial anxious this opportunity. team and advantage is GI positioned of Our to take

we these robust have apart companies. less the molecular and set we believe personalized other created our So of opportunities and a opportunity from diagnostic more medicine. We believe competition us Operator? in future unique

Operator

At your Our [Operator comes Please will Kevin be first with of Thalmann. a Ladenburg we proceed question question-and-answer DeGeeter Instructions] conducting session. question. this from time

Kevin DeGeeter

from that Thanks ThyraMIR congratulations you ThyGenX for those just you Are on the a capturing business for can here. primarily just capturing really really, over patients? for and you taking questions or those for nice for former comment quarter revenue bringing cases Rosetta my you’re Jack, customers. revenue also the as well are

Jack Stover

It’s Kevin. really don’t We is a ThyraMIR standalone, both Yes. really combination as provide assay. a it

both we’re are And not it but doing slides on so doing on FNAs. we just

bigger really opportunity. offering our and exciting new is, has though allowed expand that’s done slides, has we’ve us player in even So to approved it also are the a we finding for what But opportunities much kind we’re and space it the now product of slides for us been for slides.

Kevin DeGeeter

for thanks evaluation? two collecting ongoing remind validation us there for just type the with that we then out Can just you can clinical making second guess? study the all you’re questions First, secondarily And us and calling when data see might I remind you for Barrett’s. some of progress you’re Great. timeline sample that the then again question, simple

Jack Stover

Yes.

about timeline. in developed. So the of let’s are the timelines process The talk still being

for that data progress difficult able it’s – maybe It’s a to Right to material determination. small us able to a of speak, it’s that timeline data. as reporting access make BarreGEN looking mechanics patient that But program. The The the when that much with amount XXXX of really at area, the data we a relatively that. basically typically put additional to prognostic biopsies make the later to be is having as specific is information in we forward And very can. we for of as nature we’re we’re so pretty as in we’ll when assay and be a and on even as XXXX because a a with normal process will Barrett’s the really that we assessment. now, much with difficult name and information GI are done gathering straightforward is we of have move game in and progressers so get

late small if need well want like patients. technologies about or but The us access need them. there an be And and are plenty progressers cancer. our radiofrequency you like pancreatic other biopsies so cancer ones data Barrett’s And you is number those and we esophageal esophageal to get identifying Esophagus progressers, Much and are will, embrace to to information progressed with basically able not that of cancers the you the a actually basically identify is to you can patients indication other you and it to problem early. to arms new challenge there’s the as cancer relatively with for with do lot there patient. progress, need and while of to much around to that work know much do emerging direct biopsy is ablation It’s too a

Kevin DeGeeter

queue. you Great. get revenue in from absolute but like I growth business. a provide doesn’t the level, product year-over-year the current Can And can just for of majority the the that PancraGEN of more, general is of company – that then in the out growth it that did back business you call the in trends coming you thyroid breakdowns if GI. the I seems kind and appreciate, recognize then one sneak mentioned hapless qualitatively recognizing I side just

Jack Stover

both the for dollars quarter in franchise. growth and PancraGEN as units clarity, endocrine GI in second or we’re franchise And Yes. is, what seeing both we’re the as seeing in the in well

those groups. the past excited we at said by in each end that is of we’re our the were about roughly of XXXX So What that. driven half of revenues have

into endocrine is the our that GI are seeing business of both move growth the is PancraGEN clearly our we the What of we’re As seeing larger the thyroid business. quarter than of and XXXX we second business. consistency also

our considering about being very confidence actual get more the information And certainly we sides progression that units. of we’re so sometime sharing be All said, we on is, data, of pleased in we the and both forward. we’ll specific get business move Kevin more as more future

Kevin DeGeeter

questions. Great. Thanks taking for the

Operator

François next Please Laidlaw. Our comes Brisebois your of question question. from proceed with

François Brisebois

on nice basically not with ThyGeNEXT I from of here enough, other the feedback confusing But community taking the and think and between revenue. of for the just kind do beat. clear terms the questions. that ThyGeNEXT hopefully old I’m saying so any wondering one. medical was impact I’m was of part Thanks in that and you ThyGenX the here the Congrats

Jack Stover

data, tell So I hard all it’s the – because talking hard it’s a time. we’re little obviously, get to that representatives to with qualitative and our arms service But around. sales our

And franchise, or our of for of the so and effectively I in expanding or continued aggressiveness, by thyroid is rationalization offering biomarker growth markers that reason think yes. the our part

François Brisebois

Great. just Okay. M&A. of to just remind look someone – capacity be of but kind fits willing the sales you or you’re terms opportunity mentioned, as or guys something maybe you fits opportunity? of interesting maybe the Can different right new sales what at through us have just sweet What to you looking then right the eye spot always here And you the would has in not get kind a that thing. technology your that force

Jack Stover

question. have we for a opportunities of lot That’s frankly, we seeing are while. a and good a And

are interesting to of a us. So couple things really that

franchise existing We and those First expand more. is our GI identify products into endocrine already to would a of opportunity. love all, fit groups good to that even

to have their in potentially also that had have them some are that marketplace our don’t a they’re coming expertise infrastructure assays to that the but companies some have necessarily we’re co-market look public oftentimes companies seeing that the had commercial help acquire seeing and move of do. around looking very stall beyond they’ve we companies we As technical And good reimbursement problem that us, to we’re or the and kind or products. at utilize

the we because products But products We’re think nature at could and into driven. not now of just of those sales fit opportunities. overwhelmed our other qualitative opposed vertical of Further, to could do that our kind right of more. is force. really with the also we’re even of that nature looking reimbursement business most We

we that are player look able we not but companies high harder to revenue that driven is it. quality it’s as so opportunity garner, you’re pharmaceutical when so if the bioinformatics And as such that garner at reimbursement revenue much with by opportunities a and have to

François Brisebois

Understood, great. that now, that grow do you headcount heard That’s you feel – comfortable looking had to now? XX guys reps or something throughout helpful. you are I the mention you in And then with XX number year terms pretty of is that

Jack Stover

So let a that fronts. me on couple on comment

I about talked we think being team our XX commercial people.

and our brought Quite frankly, now, that several in force to people, Rosetta but right our or in. maybe we we’re is pays roughly to force to XX think as I space XX had previously some on have who sales former been was sales which reps that reps easy add of do well.

that on kind their they’re nature flow of that reps meaning to get earlier. of we’re able positive We’re more quickly than very we the own, to the pleased with what anticipated adding, accretive sales call we had cash

and really company professional we part at happy was a So you of if where that. too we’re very diagnostics. therapeutics that PDI in came look Interpace about Frank Remember detailing hatched from as

have to we on will the and opportunity if the that expand infrastructure greater. So commercial side you the even

than of company and it’s getting we are first to a company don’t market. we embrace foremost, we’re we So scientific commercial science more not about a do. that products obviously But

François Brisebois

hear still of the guidance did that to I lastly year? that line million for looking you right Understand. sure, And $XX then make top at just

Jack Stover

supportable. certainly didn’t guidance But million, lot $XX actually is identify the we year million. we a over of at of of provided it million, was us guidance how gives We confidence much half the – first $XX as our look Yes. being over $XX the that we in excess

François Brisebois

you Thank Excellent. very Congrats, much. again.

Jack Stover

Thanks.

Operator

comes from Our your proceed of Yi next Please with question. question H.C. Wainwright. Chen

Yi Chen

Thank question. Hi, quarter. you on solid for a my congratulations Jack, taking

quarterly quarterly in guidance from a in can Given fourth quarter. it easily in trend fluctuation first the there XXXX. the And revenues be looks $XX seem if continues that to you million quarter to that be XXXX it doesn’t XXXX, like

– million you guidance? conservative or $XX would rather say So is rather

Jack Stover

Yi is job My to always, exceed expectations.

we that was million results in expect generate. we able be did to what with we’ve to XXXX been say the over $XX So

Yi Chen

of Okay. gross does And fluctuate of quarter at the it looking from margin, also the second second to quarter XXXX. XXXX

think, quarter gross low up first the it then margin. XX% it XXXX around of quarter the and I third of over XXXX, was to second quarter – fourth goes and it’s below X XX%. XX’s then quarter And in

give you regarding some can margin? additional the gross us So

Jack Stover

Sure.

we’ve what is needed haven’t For that really cost we system. the a most part been doing

them them. So we acquire buying see do gross some us to with what raw there has you activity of effectively the with when and materials excipients expensing in margin and

target we look activity profit, and specifically to at evaluate to growing gross really better now growing, that the As growing. happy we’re we’re gross cost XX% the quarter, system almost I and need forward our we’re profit our rate look we’re with developing for a year-to-date going manage the and sort certainly where we of that When at I’m we cost are at issue. at

gross be our and we doubling us of target Our we’re in the Pittsburgh automation in that permit profit that as expand to the will mid-XX% I size that to some able to be range expand of able well. that function will lab is now mention range and as and a that though utilize automation the at just we’re point be and of where

in the So cost we and the out the mid-XX% we’re how aware the you’re future. well terms at mostly we’re smaller trend think a of of in level. But little it lumpiness of a right there to manage a I in right, of there’s heading profit gross result kind

Yi Chen

of study second Final would regarding Thyrogen it. reimbursement to the validity results BarreGEN the that for question, test. or sufficient the clinical support be positive, Got assuming

Jack Stover

Yi. question, Good Yes.

a we insight lot look looking have we about what regulators they’re As of for. the at from it

that most in the be it’s we secondly, able test think with positive that is test we’ve $X it’s how billion large recognize BarreGEN to will to if that gain said we opportunity over that’s determine designed expectation defend is that that reimbursed space the opportunity. it will of reimbursement. gets corporate all, important. a and potentially the of first But market and potentially our We that we presentations with be So in and the results results important market

working partner to we’ve platform But same that that reimbursement is we’re on our very the potential got because also that for for it’s believe using space. in with PancraGEN. have we the reimbursement gain we’re us So optimistic ability already BarreGEN important about effectively, to platform

outstanding and already platform know we’re of road a the regulators trial. long only So that issue results really the are the way that’s the the down

The of just trials. about other that and continuous not about one improvement trial me is, it’s let it’s part say continuous this, always

to on So up it’s you always that you’re better not results. trial, you like, a put the expanding more patients it trial wrap and gain shelf,

Yi Chen

you, Thank Okay. Jack.

Operator

with proceed Jason Our comes Maxim McCarthy next question. question of Group. Please your from

Naureen Quibria

is on Hi. Jason on the McCarthy. of Quibria quarter. This Congrats Naureen behalf

and advancing wondering from a So If superior asset the ThyraMIR of better our there’s your quick question, just But some medicines earlier at product. – in Veracyte this Loxo a including thyroid as April development regards cancer. value with cancers regards predictive touched research little genetically view for – been as in activity collaboration over we was competitors defined cancer, partnering was opportunities in ruling-out looking them defined we’re to ThyGenX with thyroid some pharma. side that I of upon with to on a bit such their with based see is

Interpace any from have potential Is a So process? to plan diagnostic with discussions drug to side. integrate into while the development partners there platform to continues grow

Jack Stover

The assessing of And lots in stand answer and nice that is at are of data have part The currently. absolutely. of where that we process yes, the is we samples. we the

we So biopsy actually samples it’s as not just data, well. have

the encouraged that a think well. the actually say, both have we’re actually solution. less we will of that And million of We million same enough that million. on $XXX a the you than some at look in well. to as you can in with side the as And the exactly $XXX to And And us diagnostics, superior if opportunity pharma that of on think assays, pharmaceutical for in Veracyte’s if great $XXX both the I is opportunity. substantial we thyroid that the room a as reengineer there’s I’d it as there both translate diagnostic solution the obviously space. believe that probably evaluation pharma So space into that fact of there’s diagnostic the is process. see moving the of That both opportunities on is confident market the solution nature size superior as out market We thyroid by a side. and we’re pharmaceutical we we’re lots there in combined pointed evaluation in look you potential at superior our I it size today agree basis

Naureen Quibria

spoken a that comment are Have breakdown been of practices that? institutions there versus to on shifting willing within we’re community between bit you talking you a if just the between the be same little uptick not would just what like of they community percentage about there’s breakdown, about that the doctors And is gears Great. and practices XX-XX products. the

Jack Stover

consider haven’t haven’t and – not provided to prepared past that this do that we’re we we but it Yes, certainly at that done we’ll the in point.

Naureen Quibria

you congrats and All for right. right, taking Thanks. the all Thank again. questions

Jack Stover

you. Thank

Operator

Brianna of Larsen Our your question Group. next from question. proceed with Please Edison comes

Brianna Larsen

have my Hi. question. Thank two. I you so much actually taking for

ThyGeNEXT first my So on facing still the question launch offering planning after of you are is entirely? ThyGenX or that quick, you’d out pretty

Jack Stover

face no will going purpose There’s out. forward. It really

available it’s be it today for long. So won’t but

Brianna Larsen

great. next then had Okay, reimbursement. with And Thank my you. to question do

well planning that is just the you So a I RespriDX and can it provide payers are by Medicare. on update Medicare reimbursement private know from covered as – as Advantage. quick you

Jack Stover

are only fourth – where we it the XXXX. that’s guess And been I the We’ve in of quarter market currently. time short since a was

BarreGEN about Advantage as part well. PancraGEN do now, right and coverage But we RespriDX – PathFinder well the we same coverage. experience. some primary gaining as as Medicare have have it’s we’re is on So platform And not Medicare the interesting

a we Medicare of yet. think we but good getting have chance coverage, have we really don’t it So

Brianna Larsen

Okay. you much. Great. Thank so

Operator

question. Reed proceed David Morgan from of comes question Stanley. next with Please Our your

Jack Stover

Hi, David.

Operator

your muted Reed? Perhaps is phone Mr.

David Reed

sorry, I’m me? you hear can

Jack Stover

David. Now we can

David Reed

on I’m one have Congratulations your mine other. all great to of you I Kevin many of Okay, answered sorry. quarter. And but questions

some that’s group sales at at demise where XX currently sales of the think the able your pick XX and to been that you’ve you their Rosetta staff, do looking of already up fact With be? could realistically

Jack Stover

funny already be for the action we’re developing finalize in couple our next XXXX. and – that. David, weeks it’s We’ll of to plans preparing meeting

great efficient want and all we Richard partner, quicker But able possible. add last been out have being more on don’t in thought I we year them ever to that that. my get or front than in get so of is, sales So said more and reps effective the to

So it’s assays also our a of function of evaluating by and insurers developing know all all covered are territories yet. because as you not

That So said, we we that All than our sales careful is, plan. to are. a to fishing fish guess be analysis. relatively would well more our XX% being basically my adding force we’re the need where be complex requires that of XXXX

David Reed

than little kind that’s Okay, seems modest that. amount a being more of is but it a

was The – other it. that’s I had guess question I

I time think Again, my your thank you all questions. congratulations. So for and answered that you

Jack Stover

Thanks, Dave.

Operator

Lauren from your comes question question. proceed next Please Westpark Our with Capital. with Chung

Lauren Chung

call taking for Thanks the on and congratulations quarter. the

the their acquisition expand certain are to might and so much to question your this accounts, by of IP presence diagnostic Are their products products of the a of in Rosetta back Going your to have thyroid completely exist? How Rosetta’s been market? that accounts extent extent cannibalized acquisition before. or answered Rosetta’s cancer products

Jack Stover

thyroid without actually approval late of to basically all filed our call. Rosetta had only question, Rosetta as and customers our knowledge and we encouraging for to send for it evaluate Lauren that a bankruptcy company It’s were the to Good kind their tests interface. the really slides out being answer simple Yes. to in communicated and for that with when molecular turns their not thanks on

how A New York for started New business. that’s of in we got we York up process still and shortly. New exists of the and in picked things don’t in kind business of approval have slide portion approval their that’s a filing effectively we’re So but that York how in

on I little QX What expecting QX and that is in really our was up even as we’re call business really really So and help very that to business QX move the should Rosetta we ramp beyond the that in said forward. activity.

So part very encouraging. is that

obviously us on effectively And isn’t because and word, equipment right that expanding their platform. that they and extent that the in answer that the bankruptcy to the for capabilities But to certain with ourselves speed be could competitive processing. So a already a is acquired existing addition us that our to microRNA business even at focused had well. it’s their attractive we’re that sly the we was through as looking and up also help going we’re evaluating assumed us process beyond very probably

of in it’s unfortunately been what happened us a So very with good for Rosetta. terms activity

Lauren Chung

much. very Thanks

Operator

would session. remarks. closing back Stover question-and-answer reached for turn Jack to Mr. and Ladies gentleman, the I have we like the of end our call to

Jack Stover

and Great, continuing like your the all Darren. on you us look this I’d analysts following and thank joining to us questions. specifically follow to you update we Thanks and that afternoon for thoughtful to thank our progress. forward sell-side And us.

If as questions you again. to have any Thanks please unanswered further to feel or us free out well. reach

Interpace Biosciences (IDXG) 9 Aug 182018 Q2 Earnings call transcript