Exact Sciences (EXAS) 21 Feb 242023 Q4 Earnings call transcript

Company Profile

Participants

Nathan Harrill	executive
Kevin Conroy	executive
Jeffrey Elliott	executive
S. Brandon Couillard	analyst
Catherine Ramsey	analyst
Douglas Schenkel	analyst
Everett Cunningham	executive
Daniel Brennan	analyst
Vijay Kumar	analyst
Daniel Arias	analyst
Andrew Brackmann	analyst
Brian Baranick	executive
Matthew Sykes	analyst
Patrick Donnelly	analyst
Jack Meehan	analyst
Puneet Souda	analyst
Andrew Cooper	analyst
Daniel Leonard	analyst
Subhalaxmi Nambi	analyst
Mark Massaro	analyst

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon, and welcome to the Exact Sciences Fourth Quarter 2023 Earnings Call. Please be advised that this call will be recorded. [Operator Instructions] I would now like to turn the conference over to Mr. Nate Harrill, Vice President of Investor Relations.

You may begin your conference.

Nathan Harrill

Jeanie. Thanks, joining Sciences for Conference Quarter for Call. us you Fourth Exact XXXX Thank

will today the Everett Kevin CEO; the Oncology Baranick, are website presentation On quarter news call of Manager This financial earlier Conroy, also Commercial and news questions. Exact at are afternoon this release a Elliott, available issued Precision for Chief our today's available General results. Chief our on and detailing exactsciences.com. be and our company's Sciences Financial our release our fourth Officer. Cunningham, Officer; Brian Jeff and Chairman

During based today's call, we current will make forward-looking on statements expectations.

results risks reconciliations from such to and Exact Sciences uncertainties actual and in our statements. and are be figures release figures in associated SEC available with non-GAAP Our materially included filings. GAAP earnings are may the Discussions our of different press of descriptions

I'll Both turn can now the call our accessed through to Kevin. be website. over

Kevin Conroy

for quarter platform results the with impactful and We're A testing Nate. us record-breaking Sciences, our from team during number our XXXX a an will for Exact tone for San record brands, our quarter achieve year and eradicate to of fourth that year thanks help purpose Diego our to allow center. hosting built an today's Oncotype prevention cancer. the DX to people genetics. We've another established was special Thanks, call R&D ahead. set unrivaled our Cologuard,

next new developing proteins. set tests how these Our years. patients range power cancer talented and We're as and DNA, new They're over diagnosed regular treated. intervals and momentum physicians to we a scientists tests are the the at will is harnessing few of to RNA gain that bring change of

$XXX growing XX% X.X testing rare million include next-generation year-over-year, for cash revenue positive, FDA free of Improving OncoExTra, submitting program, disease our a Cologuard to by selection XXXX core patients test flow approval. adjusted molecular and our and million on EBITDA for our detection. billion. in turning Oncotype and reimbursed Launching Highlights advancing solid record our cancer $X.X Liquid, MRD test adding DX basis, therapy a or early selection accelerating Onco launching multi-cancer residual in Japan therapy tumor liquid diseases,

The care, a DX focused advancing deepening laser Oncotype things adoption embedding of key patients is systems love. standard Sciences that on relationships this year. increasing Cologuard pipeline and internationally, further health Exact team and delivering experiences with providers programs X

on our outlook focus now for results will our Jeff XXXX. and financial

Jeffrey Elliott

core Thanks, testing, Kevin. a revenue of $XXX grew XX% Fourth FX M&A. million of quarter basis, XX% COVID XX%. increased revenue million or and Screening excluding on $XXX

flow health broad-based Growth expanded which growth grew million Cologuard long-term providers Oncology the see with by to providers boarding high revenue of quarter ordering XX% basis. on Precision We XXX,XXX DX, by Non-GAAP led loss was of revenue was XX%. outlook. margin, better-than-expected was operating XX%. an $XX securities $XXX cash driven million cash was discipline. expense acquired million, million, amortization excluding year ended $XX of was an of $XX and gross by continued of gross an in base Oncotype a momentum adjusted EBITDA was with care adoption XX% $XX million. core Fourth million, the quarter. This improvement our all-time internationally. and margin improvement $XX continue supports Free during million. and We expanding intangibles, of XX% $XXX or Net Cologuard GAAP

quarter $XXX between $XXX $X.XXX year. million year and $XXX quarter $XXX billion for billion between and for revenue Turning between This assumes the and for $XXX for and $X.XX first total for Precision $X.XX year. the million $XXX between the and $XXX revenue the revenue to $X.XXX and million we billion first billion Oncology guidance, million million and and $XXX quarter between expect between and million million the for screening first the million and

Precision in XX% with growth, X% growth revenue core XX% implies guidance in and Oncology. Annual growth screening

between We million million expect $XXX to adjusted $XXX for year. EBITDA generate of and the

We $XXX million. CapEx around to be also expect

We quarter This the be care impacts utilization during trends. sequentially the first screening down normal due and revenue a revenue is order Primary holidays. typical lower quarter because seasonal of because early timing screen completed to to Cologuard the test. and January expect between of first a in December

expect for the quarter, Oncology as exome prostate of lab quarter those XX% we're growth in expect transitioned process to related DX growth average. test Precision first points strong labs. testing ordering We and double-digit customers. headwind U.S. whole Sciences Precision cancer as screening full assuming year consistent Oncology, growth X internationally for historical various $XX year. other about In agreements Exact with the and are a a be revenue, of reference in-house first in and the revenue acts Oncotype or to we this lab a by Starting million sequencing steady

this automation we The team growth margin and continued gross We're margins and year, double-digit as G&A. within industry-leading job drive year investing efficiencies. will expansion flow beyond. and revenue did labs, a which adjusted in our leverage also expecting great inflating cash within continue especially gross are growth EBITDA powering state-of-the-art Sustainable and free OpEx this

Priority people our new experience to areas Cologuard, our and platform and averaging of you, for program. patient through further technology Kevin. improving investment and this MRD through TV campaigns advancing position year include digital the reaching more Back

Kevin Conroy

and not patients is loyalty helping screening. who The cancer are colon and consistently awareness up testing Cologuard have reach kit of date Cologuard grown. screening Brand care Cologuard number essential for are and of part the with fueling XX colon and adoption ordering order providers of million to part an tool number ask Americans it. their Jeff. prefer Thanks, because health in

research to health reached partnering order the screened our X clinical health health helping qualified Cologuard rescreened get by federally and Cologuard designing providers ways diverse financial and more momentum serve and systems patients people units. innovative and prefer that all-time high, an achieve with centers showed colonoscopy. positive who to care have awareness quarter, market on building X brand been this never XX%, During We're fourth outcomes,

million has last team Precision Our $XXX,XXX world for including than X around the anniversary. patients record celebrated its a recently Oncotype more DX Oncology guided year. decisions cancer treatment XXth

patients care most Oncotype DX with XXX common than Oncotype more for orders years, global those spare and HERX-negative have has During from DX from received the HR-positive of diagnosed XX% DX Oncotype over We've subtype. countries helped has cancer, chemotherapy. oncologists unnecessary of ordered million standard early-stage the breast U.S. become X.X patients

in adoption by a Japan led international Increased will driver key growth be year. oncology this precision

therapy portfolio Detect, MRD billing test our also our of We reimbursement tests. Onco also enable authorizations, IT and platform, prior Onco blood-based tests, will Liquid, to scaling plan making move oncology our onto efficient. and highly This including rapid precision proprietary future selection our

scientific BLUE-C test evaluating colon expertise MRD. In cancer advance our December screening premarket to make the our XXXX. the plan to programs, colon line raise to pipeline regulatory blood demonstrating approval based including cancer Blue-C year, sample novel Cologuard us from will and using test. data for in our in we submitted [indiscernible] screening. also multiple results FDA home in deep capabilities the screening top to expect test. Most This screening, our impactful from colon are performance cancer bar to next-generation prospective study participants cancer we and shared application We available study a the patients We for provided initiatives announce and noninvasive

look excited data sets the technology it cancer. Onco year, sharing Institute. about on Detect including performance and to licensed will powerful plan into reimbursement forward of in that evidence this Broad the support the of several we we integrating MRD, We're In colon from

it is cancer preventing mission guiding detecting by eradicate Our personalized help to it, earlier treatment. and

take growth of of diagnostics and continued unique deeply us and will questions. power your helping platform test years happy mission. pipeline Our to care life-changing embedded achieve our standard now of profitability, We're

Operator

[Operator Couillard from first comes with Instructions] the line of question Your Brandon Jefferies.

S. Brandon Couillard

Jeff. for Two-parter

what First, I you in OpEx precision that? on margins and referenced on unpack then a business little think that about just the you oncology first the detail in for as $XX can million guide the are you And year? secondly, gross guidance, quarter headwind, you pinpoint the for revenue more for think, 'XX, the

Jeffrey Elliott

Sure.

On reference the the for said, $XX others this lab annual I space. impact. million, in Exacta an we, is Like

that rolling in-house. were those by of some work of contracts are And those these as surprised labs not off take some

the true over to drivers appetite to So bit over hurts a QX, going the expected are time but a that's probably be headwind, growth $XX more annual for than the what that's year, million QX in new product for which XX%. awesome over an in in MRD then QX continued perfect quarter like a node uptake And grew therapy International, foundation the as launches positive selection. indication. time, be impact. On and this serves

healthy. the very So is business

have a item We comparison this year.

expect job seen there On for heard did it. in of the me you This margin The progress. about of Many side, we continued automating year, put We've lab gross those team fabulous margin labs. have a talk automation. expansion. years you've

grow we is state-of-the-art. deal. you expect further this to If fixed our in that will help leveraging Automating facilities, you're are a haven't, labs we as to welcome They year, big those cost come

leverage, impact OpEx Broadly hallmark. speaking, leverage. had improvement. strong the foundation. last significant of years, over another the we've a couple We've And and adjusted gross EBITDA built you've margin seen

the source biggest year to of I We leverage. again. expect that our this will that be be within expect highlight to continue G&A. Probably

sales expect do all marketing I X However, and leverage across and G&A, lines, R&D.

Operator

comes of Your the Schulte next line from question Catherine Baird. with

Catherine Ramsey

been I second, big have can you there? for chunk rest in options Kevin, on confidence expect you gives on what sequentially. the the two-parter are then expiring, those? screening be week. the you're you. of you But guide, of fairly to with believe, later phasing you've to past just year through do a this in And XQ the planning that clear Maybe the comments Any what ramp I and to Have first a down for talk know

Kevin Conroy

have Let me I expiring options their second first. are grants. start Yes, that with the XX-year

is just pay of And granted were to taxes. goal exercise while to the the and they hold But So hold the and selling plan the exercising cost I in XXXX. to difference. enough

is there, like X the progress a this there's a across of screening. just a an making awareness and product positive brand that date and time patient And of precision next before We exciting in out is systems, incredible momentum then base take not up year and to launches number we of, are important our Cologuard. customer enthusiasm with there that and and there handing over health Jeff, new was internationally with huge also off the payers with still came continued no still to we I XXXX. years. XX we're over something It's year growth. great And generating it that care have oncology opportunity say year, last will The people just million internally

more why the don't we you Jeff, rest? excited. So take couldn't be

Jeffrey Elliott

about Sure. on talked we've many primary around care holidays. utilization impacted phasing the your as times Catherine, before, but question, this reminder, typically a

we Year's, patients basically, X New take weeks about quarter, lose X physicians around Christmas and and weeks for off of So the quantifications.

that that during So fewer visits time. there's office that's the fact

we revenue recognize. that. I when later, mean, That Cologuard we days fewer complete there's less XX about test, that orders means that's

really So is QX, to holidays continue out sequential to QX, of down similar screening our step expect very I would see you revenue. you the to a sequentially. to QX Think oncology. New impact Oncotype as business step so slower brand but model to continues This Years grow, forever. physician Christmas precision QX which you hurts in related do around office are visits It's down The see down. and what that

So the Day growth of from year. the said part growth year. at revenue I standpoint, from a through of expecting again, into a for standpoint, growth we compounded XX% growth in from average. That's in From pretty so When a That's typically Labor X-year historical early Things this remarks, orders this strong expect a screening expect you Cologuard revenue again a what look standpoint, a I phasing then typically, ramp summer out stack a months QX. May. we're standpoint, year basis, over we in QX on X-year and my the up flatten Thanksgiving. XX% -- with throughout steep for consistent the would

QX So you mind. trends just in in a very have Kevin phase-in said, strong as keep dynamic here, to

Operator

Your comes Schenkel of from with the Wolfe next Doug line Research. question

Douglas Schenkel

one is just first My guidance clarification question. a

in screening for you think you guided year, as to growth I talked the January. XX% back revenue about I think

the this case, orders anything of orders first-time XXX,XXX a What mind that me, which of but terms imply to to versus there? just does don't my tests. in moderation could this I is I model It think seems like think if in want that's else. for make -- the there. sure XXX,XXX for between repeat a conservatism front in I growth be bigger have keeping Just opportunity it's And year, that, I

data readouts like as we the readouts in. And just expected be then to be key you that, at as question some blood-based head coming as up question. think my should big advanced wondering detection competition look we competition into I'm is if a those second Obviously, you'd data share bar soon. from come what willing noma

Jeffrey Elliott

on first I'll take one the screening.

we're year the did just growth Kevin guide a XX% year, some to against talked there of off of XX% 'XX. a for we about tremendous yes, that comping year coming So in if growth.

good So that, ahead a long about XX% here. there's runway feel and

slides One shared broadening of deepening we ordering the base. the the organ today base of the of the showed and

This rescreen, has This years to was continued XX% of a that grow going for customer X year expect year, it's for years, about to Rescreens screening to this points we a be called and last come. frame of repeat revenue. this year X-year higher. to couple many

the million our it's pool becoming growing couple reason rapidly. twofold. patients of was patients new to up why last that biggest this really is eligible it One for The of growth it's So million. $X.X that years. drivers. eligible is X.X the It one accelerates It new year, of becoming is growing

market, rate continues implies did think a executing there. first-time team success those age of job getting also, Cologuard that to typically grow. first-time users, Is people has What this And our still million back XX-plus The double-digit one nice at Double-digit sustainable That's we can to for users. ordering people that growth you of in that the a is Doug. expect massive business XXX key growth. model from of because predictable is group, this beauties this such total, growth.

Everett Cunningham

add Yes, couple things, me just a Jeff, let Doug. of

ahead, we're said growth meeting continue you and we in -- I've Kevin coming telling opportunity I'm fulfill said, an and just that an to feels this our in mission. have global Jeff incredible year our incredible our recently to As participated just off 'XX. sales everybody to

really we're between the We're Cologuard being at taking is getting things we're key confident leases, couple to the XX segment, for marketing core our profitably. we where our do growth we've trade-off XX% how to very grow said, and of thing advantage rescreens, We're in opportunities that sales a which end is invest Marketing, we one smart I the is has our at And about of As year. And really, that grown this. we're our understanding growth. feel business, at we're last by continuing an growth. looking can smartly example, to areas as know like levers way XX investments fantastic leaders,

talk at to message. right secondly, then with are investing the in put sales, do right heads right to time And additional we wisely to marketplace we we know that customer could areas in the the to going continue the in that. We're

another year. So incredible XXXX be can

Kevin Conroy

question, it's always what's every this on and almost quarter competition tests we opportunities line. I just what ago, since Second year are for XX and been the beyond. be always a there bar? Doug, We're launched never going first, year is quarter reiterate improvement. this blood like has every and mean sober Everett straight Cologuard years next said, That to

focused is But the team path ahead. excited about we're and really the

would out not of blood going widely test be USPSTF. tests, X One main years In model final is we years Their a so terms life gained, a factors. sophisticated The is modeling. nets detection. their I'm XX% the key precancer from here. group They lot gained times, arbiter blood this modeling at do in of to talked of whether comes life about many add adopted guideline

we is not believe, to get And the second people from guidelines there with screened. factor colonoscopies is question objective. performance And of then today of it's bar, it's see -- tests. category we this is you anything of what And very see model what the in generated that the the X,XXX per that, difficult characteristics very the comes into unnecessary

anybody impact. think I all guidelines, commercial into space, the that's study long-term you this lead and where top really digging investing, in traction to the USPSTF roads So do Anybody

Operator

from of comes question line Dan with next Cowen. Brennan Your the

Daniel Brennan

first just one be XX Everett, on XX mentioned you Maybe it. to would Great.

most for wondering, in of Just still in specificity, kind where blood, what is what of just wondering to some upside us to B, XX% said, if up hard pretty what build about you the completely untangle Kevin, hits outcome baking you've kind just the kind for that about back for you open do bluntly tried have appreciate to of exactly then, you guys a but that I'm I data? assuming like Is we'd and us blood-based, question view which but it's data to barrier that year untangle do. of been I biological you is way fair, where would there just likely the there further of kind kind when to an on like that that the to And model for make go of finished for 'XX. traction the case And have think are how worry? could

Kevin Conroy

take you positive, blood reason test positive the the XX% test, that is like well false the if XX% so a only tests. polyps. at precancerous a has of And X% Well, false detects FIT most Not the models right? it look it a FIT because rate of

You have positive a false XX% rate.

can imagine, it if It a year do say, As test, every a as it FIT colonoscopies the terms many life detects gain. you that unnecessary precancers, -- doesn't in of drive teens twice blood as generates also test. the test you in years let's

So in onto this place difficult as efficient called. to you're frontier it's this get

the false guideline including life ARB-rated to modeling cost these So test. or generate considers test. of FIT And parameters at lot you'll FIT hard it's see a significantly blood including years they not And tests ARB-rated test, group you broad it as by them positives. when the a an is test. certainly, gained, is of an also more can the look not the They enough comparing than these become and rough what do to generate

very that colonoscopy we've today that from years colonoscopy Cologuard for in share away designed That's the we two the haven't were the take would Cologuard upon at to for value volume, leading modeling we and come, a efficient a exercise. as for the back is confident based and set test, created inputs Cologuard in way meaningful we make frontier feel years I'll And way tests developing to that's colonoscopy bar FIT we was why because of that that start. be and you're the the to real these sure that that seeing from we so decade. that be And volumes go test changed will guard the whole screening

not are million Right backlogs changing around if but X to year, per screening now, X million colonoscopies growing.

so And to the to is our challenge patients. get

-- is the to challenge make easy Our to one. hit this

to that thinks built for sure who difficult technology achieve and to purpose are our cancer then fortunately, challenge turns make platform is challenges. thinks that is patient every Our And Cologuard. XX colon team, about these a screening a built And about we goals.

Jeffrey Elliott

And is one almost this XX ways years that of penetrate younger this unique and is Jeff. population. our many that of On X the had to of means this we've is today. Dan, is it's XX% approaching awareness screening Exact what to revenue now competitively is XX, that build working

growth So as country. here, colonoscopy look it there's has you in relatively the need been to when that a for Kevin capacity at this I driver. expect continue limited a said, massive

add you more is million option. ago, XX the Cologuard like when years did So screening the people X into guidelines the pool best

And will the taking for of come. are to is share anything? overall above Add continue there. growth that it significant drive business. rate years we So above many I think base

Everett Cunningham

our easy new organization opportunity give this health great you as to health health systems. and have at systems There in grow customers. the their some is And we're the are. two I'll that around XX know are segment, the field entail of Yes. health these maintenance button. systems. systems just where around examples still Our kind a to We knows I'll don't XX some guidelines add field helping maybe Cologuard,

health make targeting they sure that to we're their in systems these have So maintenance it system. health

is this that second The data our is sales the represent.

it ordering know to are sales XX which by representatives individual health ordering Our the XX. Cologuard audience prescriber for XX-plus care are the providers not but for

in new sure they making share sure that to message cohort. will guidelines So younger know the that making we our gear then they get their fair to

XX And to campaigns we then have that specific as the in mentioned XX. I We'll younger 'XX. continue segment, lastly, for earlier, marketing

Operator

from line comes the Kumar with Evercore ISI. Vijay Your of next question

Vijay Kumar

I the Jeff, just XX%, life here, blood-based little basis I'm If life light. your looks think, being, sensitivity the would XX%, year-on-year. is curious margins, in the I on Kevin, XX% XXX [indiscernible] a around two-parter. differential or with had can you be on adjusted advanced it XX%. the your I'm curious a for expansion points guide That's what like EBITDA implies adenoma

think OpEx to when a I expected. think back it your you leverage was model, little longer-term showing implies high bit perhaps, I go more there maybe singles

if this the conservatism just curious assumptions? on is OpEx So

Kevin Conroy

years life first you are question, ratio the on has years has testing of the the of unnecessary So colonoscopies. Cologuard screening best my Colonoscopy Cologuard the ratio light best test any the ranking. memory to of gain. has highest gained

of the Some It model. colonoscopy. the highest is in of that of also unnecessary number assumptions has the simply because

colonoscopy it, is So performed that is in majority the which that find doesn't of colonoscopy.

Cologuard Between year, Cologuard. Cologuard, year to and which, XX%. the years, test years X the years model saves a every like X% X% by X,XXX only low, way, XX% if it that FIT and due about it test every the to life test blood bit like way, more PSC you off or to But life the for just more done by single decade. falls X% than of X detects FIT test compared every maybe a people fit

of of because And the precancerous polyps. is this refining sensitivity And lack of challenge. the

the read cancer hand Free back the challenge. colleges -- or off matters. easily Bs part in great They it's this rated -- some A very isn't go deal. USPSTF model. To and if standard like of at this of B is a don't driven I'd detection U.S. out reread This this getting there and and is inflation again. is So or script, it This we an the test. As

Jeffrey Elliott

of our in improvement for plan built the here. X long-term XX% lot Look, guidance So question. this we're we that I we our Exact sales along the all last across look is to year. do This at year you last this it, increase to expect we we to ended where see to scale a That's way another what a ahead towards raise major time, job down Everett's goal our teams, X a come marketing expect on least technology Jeff is you sales really We at years continue see XXXX. long-term lines. here. on had numbers are after margin nice summer. Last leading and your the very that of terms. over EBITDA OpEx team, strong we EBITDA in Remember, going built absolute investment again labs, last this at further goals. but there a our platform, gave points such every name done return some foundation, We year, effectively. When investment year, leverage we're customer X%, year, X there. our

makes business right [ way is value it to to take ] sense the care build of right to patients way Just and is add the to the system.

invest So all we will in X.

investment opportunity We the there there. of increase we the do but get more help of also programs got talked temporarily. growth business and time biggest across program think efficiently. us accelerate given then run will teams, our customer our initiatives care that G&A, MRD year, leverage. market, IT some accelerated not the G&A. experience the as help only source near-term I teams customer investment And over about midyear, bigger further, major the our in dollars towards last And We've

Kevin Conroy

Yes. on continued just add me about let what to And that investments. Jeff emphasized

down spend million X marketing over and the over sales $XXX our taken we've by mentioned, last we've years. As

Everett Cunningham

This growing sub we faster. more, position. isn't if would be that we're we investing even believe We

of We have activity of modeling revenue a we output. basis. very shows that And grown during million responsiveness sophisticated to marketing from and time, the period that have same sales the $XXX

and so additional by we we prudent that are but as that structure glad faster our can where And customers. and leaders. down make our And terms our level nicely can reinvest we because forward. No. the the where that data it's at with profits to in matches of my be that's can sit get us way to grow that and make speak. I'm we opportunity grow and really judicious, the faster I we don't is, it's move they the smartly, in They at our value to So continue where resources data all that analytics level, better so a local market to local for call investments of real can point driven go the just and analytics we're to invest and and business growth patients so our grow

Operator

of Stifel. Your comes from with question the Arias next line Dan

Daniel Arias

wanted least much too, now to the hopefully, or you just I'm which love, don't right back rather for but performance. how us on My into assay I, you to blood-based stock go you guys though, playing appreciate the conversation topic, anyways. than process really, that's for sure question development can at is

we time consideration there? that, the to talk You when you in mentioned can the to think for importance of just you confidence USPSTF. When away that have about squared it comes getting everything

midyear guideline for the to any they say, early out their words, everything folks whatever why you reason data other for XXXX, off is the if want cut reads evaluation? there them and In need there make the by, wouldn't

Kevin Conroy

No, we will make that cutoff.

cutoff. that make will We

Daniel Arias

this the data you year, in the they plays accept that USPSTF order to do need and of ready are in of right by assuming that on is end out to what And front line this is thing? them have time that

Kevin Conroy

look if and before dozens of They So group that The historically, cycle volunteers. you and dozens of It's at X last believe, updates a X years. year. between updates. every was, limited do this They was resources. have in the guideline dozens years I cycle

called get Does out the what's pushed have study We to term know. don't they by We that out? USPSTF in the 'XX. their final due update are they plan. nearer where lay to would expect So see from something

that We longer? seen et X And Is X haven't we years? they essential years, We'll years? then X cetera. it know. it don't was it was topics The review, is if it the see timing, Is But yet. X it years. and

Operator

line Your Brackmann Andrew question from of with William the comes Blair. next

Andrew Brackmann

Is But I go of health of systems partnerships talk doing of the off value lot structurally like to next back sort or some ward in over sounds that does are there come some maybe you want those internally. contractually in if with on it handful just you guys of can competition are with partnerships? these to what you things sort the providing potentially -- a those the Obviously, comments anything system of efforts. those guys you're can that have about of years? that

Everett Cunningham

seen contractually to they're health more and about screening. problems to coming to of couple systems. and the solve we've the coming care less us us is value It's over around Health they're health bringing years, past to about we're that One Yes. systems, and this issues.

and us that then go beyond product. we to on basis. And find a tell health the I also daily need systems so -- We have

many the things So to for. -- of thing we bring which great that looking outstanding systems products, customer are support, they're health one

We exciting outstanding right organization them. surround our them. into to love them so this drops Oncotype Onco and portfolio and they partners DX, And have Extra. we And what's bag, sell with can is portfolio our also Cologuard, a that medical an that our

that helping it's really partner all better our patients. with from it for sound them the our all terms can products. and So about surround partnership, their competition have of them we care and separates and in the portfolio us health

Kevin Conroy

billion. remind get has that that campaigns like developed $X screened that the applications ability XXX Yes. reimbursement, sourced that And engine initiatives. to, externally this prior that automate The to internally been people stack different we've creates It's over a to authorization population to investment to about It's incredible. uniqueness. built, competitive referred technology things compliance lead health Everett well

ends this value relationship. a leading relationship It's systems patients. and a up contractual on profitability. health to for based so based growth real significant And And it is

Brian Baranick

by I'll layer additional the Brian, one comment. This in is way.

talking conversations meaningful the a We reiterate number it about very just around systems was are whatever portfolio. of health to having with

So shop and us are competition, benefits of of lot service one-stop at one on service it's agreements. They're looking about with off the walling to company, vendor customer rep as these a while company not calling number, one testing. a vendors one for realizing thinking to samples sending preferred transacting talking the

real-time type meaningful are with conversations and this customers. our structure having agreement we key So of vendor of around some very preferred

Operator

line Matt Goldman with Your the next of comes question Sykes from Sachs.

Matthew Sykes

traction in unpack XX% But you DX in for I overall Japan quick two could maybe Oncotype quarter. -- October. just within talked about realized the And Japan Just know that what ones represented you launched just One, that growing was me. then International I plus business going -- Kevin, think at just the $XXX talked didn't a time frame. international billion JPMorgan, to about talked And there? of type you $X from and about secondly, what you're give million I seeing Oncotype you you

$X wondering, seen get acceleration what I'm you you're to to billion? there? just are key of to for But growth high could kind single-digit the drivers get maybe And talk sort some Just the low that? that key that of of what we've given drivers the you to expecting of kind about

Kevin Conroy

take both think of this. I actually Brian can

Brian Baranick

question first The is Pam. related to

business approaching me about $XXX Let Japan, international our think context if put in in million international to annual of our the is I which about in archetypes. I business. X broader may, revenue. tend

very, have penetration think one care We market group of molecular shares oncotype market standard Canada, for very I the established of share high. where U.K., is is countries, example, very and and brand

where we grow. testing where and you countries And of oncotype that is molecular a is seeing key give driving are I'll Italy archetype we're Germany examples like rapid adoption, share. and The two second both

Thirdly, in million broadly. XXXX patients that which about our opportunity. that there's in more we is expect growth launching international And contribute that, XX,XXX $XX In is new largest which important for we're eligible geography. The of business could Japan, of markets. about biggest Japan, to our

think the We're a lot to growing again, market. Oncotype penetrate, to On billion. assumption, continuing million, broader mentioned, we get of to do XXX $X and as $XXX second underpenetrated the I things. PO To I have business to, to to

to opportunity an then teams have Oncotype actually our and in sales resources are direct markets. in We we we direct to to an convert control. under markets have country indirect And that have folks opportunity markets where launch new

are those the of Oncotype. So some key for drivers

outside then Within And we broader therapy would business, selection of launched already months, our the expanding pipeline. Onco Extra, really on tissue Oncotype, test. focus the XX I

introduce course. Detect, in the platform. We due And then will Resolution we our launch have we Onco risk our acquired Bioscience which MRD will We is guard acquisition, cancer test. Liquid hereditary Onco from which also

to be driven million $X growth from by pipeline. that billion So that $XXX will

Operator

Your line Patrick the next question with comes Citi. from of Donnelly

Patrick Donnelly

incremental looking year? and Kevin, expectations maybe be talk about a also, Can both And on the on data for then the little we for, What MRD. bit should just just side ramp? you the this early a just think blood know about helpful. on detection little invested? MRD Maybe the bit you would be how talk side. dollars previously, do the I was priorities about above there

Kevin Conroy

to well. this I'm as one hand to Brian over going

Brian Baranick

Thanks, Kevin, and thank you them. Welcome Oncology. for all the questions about Precision

hard proud which MRD me over that an Let the to in the develop top of just now San the go and last so years of the the Diego. Kevin months to calling we're worked organic say that we're I'm on here I'll that team tech. at reiterate, so product, call mentioned

proud here in the also speed. proud the through So in team that who and equally working at of the validation Diego is our San of hugely test breakneck [indiscernible] of lab, team

of the terms Diego, behind what from apologies, background. you in here the can us if noise sound in expect in of MRD, freedom San So there's

the data having in you with What We're Medicare meaningful and discussion secure later Medicare a us year. powerful customers the the equation. We are as excited we share of terms MRD? payer as reimbursement material help that can already on expect well this to believe very will side of

that working we're commercial and test forward the very work or look year. the unit next to then through year with introducing early the this and business accelerator commercial very we very few team the by commercial team And us into how side time perspective. determine much that a a activities closely that equation, to And dependent step vary quickly But which commercialization Everett ultimately, reimbursement the later is very the planning line will gets from can the back when on on really Medicare of to in months. on

can really Jeff, financially, that space. before the are we the I'll on believe in contributions competitively add One of unique you some comment I the MRD things of

but of portfolio, into do to and also very will how our the and compliance. We take forward a bring portfolio Kevin are allow to us It around the that allow thinking integrate for lot Oncotype about we're to reimbursement Detect back plans developing platform will IT billing it mentioned you call. the creatively particularly on prior us the Onco around earlier Cologuard authorizations, the great to adherence, then I'll development that tools evidence

X years, they're and around that to Onco to Detect, over support do do With difficult you patients patient when can challenging, months, tested debt patient to we're years. be and respect a the consecutively. test the is doing, X to adherence about we'll very a asking which in We test in be negative to And particularly out believe X is every that and the work get a asking ported If think every Detect. engine year for tested Onco X. patient X, and MRD patients X strong compliance I need years a

Over to you, Jeff .

Jeffrey Elliott

a to is I opportunities, until of pipeline investment have contribution been From Patrick, one standpoint, been top a effect, next standpoint, standpoint this we've the been of this more and the year. revenue our of investment base biggest of XXXX as billion this be It's year. -- From a business, don't Jeff. usual, areas. has we're MRD, about modeling is contribution really three assuming while R&D an $X.X this expect given material from this revenue our one sober continues a

the and that multi-cancer year, opportunity did we near are step term Colon the In given cancer last screening. Broadly, MRD big up three. the see. we investment MRD

Operator

line the Research. from comes question Meehan of Jack with Nephron next Your

Jack Meehan

hoping earnings context on on for at forward in Thank an Sword Is around investment progress And can MCAD? or forecast with you for Medicare point? you. the to for [ Kevin there what's planning move benefit. this Good share [ are in We're ]. Jeff, waiting you update ] was around the still I BC still R&D afternoon. around multi-cancer. any

Kevin Conroy

if test, scale for give early multi-cancer Well, been we prior investment. to Medicare the our the legislation to XX we authority for it's detection moved -- back to pass months did not likely have saying explicitly probably Congress pay a would

believe in impactful long detection In terms Cologuard We the investment back going real is term, in for still early that even be we much than our have value multi-cancer creating of to patients. scaled more MSET.

this terms impact, year's not? give you Jeff, of or In can color

Jeffrey Elliott

in We did level the of multi-cancer investment temporarily. moderate

a From color said, reimbursement. to of three to As areas pathway our add though, big still is we Those see it. Kevin an one R&D to standpoint, areas. three it until investment more more clear

probably investment our quarters. Again, of X X/X colon cancer over Multi-cancer broadly. R&D to MRD closer are and

value So they are and shareholders we can opportunity that for investments represent see provide and both that the we patients. the

Operator

Your Puneet line next from Leerink Partners. question of Souda with comes the

Puneet Souda

And that can be expectations should to competition the could just the if in readout But you blue covered elaborate wondering, bit you for Kevin, the you very questions a -- expect I see was well. blood on blood mean is we on performance how you adenoma around positioned that And comments blood portfolio? the How your blue there. just advanced sea in readout? assay remind with line in us important blood the this just is broadly? made maybe

Kevin Conroy

Sure.

a in this a patient the to FDA. The USPSTF be before blood class the start with by are and a that test, guidelines. the me our a refuses first, and test, claim Puneet. frontline the best question That seen test Let second-line screening test SeptinX we means, will will as you've think tests last when with be most used likely blood -- receive

refuse plan, still It's for Medicare doubt. no in the that tests help high-quality get who a credit us isn't patients cetera. quality battle, if Cologuard patients refuse opportunity the least they et we those Hill Advantage at even those get there's test are going So the doc know an and to like and or colonoscopy called screened when to

of the believe a be a patients about competitively provide It's that tested. our unique One system value on that's and that's provides a health approach PCR structure test get the to that that we platform. the built and is things cost just supercharged best-in-class those cost to structure. will real And

to coupled to infrastructure our field. So think, organization, be lead IT that we our that with will us, commercial -- in this allow

that's patients could without the we address when quality isn't we that quality XXXX, you in to going take be XXXX, Cologuard or we test to measures. included believe It's the were just I the I'll 'XX measures guidelines until believe limited 'XX, of first -- with we terms being case that back in the in and launched any really

So that's looking things. we're at how

data. our We're In close what getting are terms pretty expectations that for date. of to

So we'll data themselves. the speak for let

Operator

Your comes of Andrew line the next question from with James. Cooper Raymond

Andrew Cooper

talked with about a we've sticking MRD Cologuard. just Maybe lot since

think I data data for well. narrow expecting for that, colon of submitted the the about understanding portion to little launches, the also more little year, a breast or for think want increased think then this reimbursement as of increased a these of I or of better R&D launch. the breast out said I bit patients? slide help expect You get I as for that's for it a reimbursement? Is OpEx reimbursement sort Jeff, just we called to Is we should support of Just validation prep you bit broadly? bit there. called a And in kind know, of it little out

we of Cologuard the have with as that should margin gross these think of term, you'll things upfront. like least longer about commercial versus widely anything of and reimbursed we if sort are next-generation in especially tailwinds some terms think But impact not at by

Brian Baranick

the for question. Thanks

side. validating of the right the platform. breast to In that really XXXX the would is breast data, horizon Medicare terms most in be the generating on plan the look the now of And more data we're towards

from the to do. of at at of whole somewhat study meaning [ things and one known current to us doing but look we're that shift the lot what might tend to is allows that do version our a ctDNA of subtypes is may up so be can blood They breast that it allow of shedding tumors, allows not into One, exome can not license be we of the you assay. to there's us notice the setting Onco really genome maestro know, And ] whole what we may such or of that to to As Detect, challenging. twofold. low also look some these technology are as from Broad cancer what us in technology design the sort

that more cost want and blood track track to then to at a the more us patient's in attractive a two, it mutations patient's blood find can mutations allows very in we thereby, point. very, And we

particular on So that we product. maintain high margin very gross

in to to the on not we sure too subtypes in to some field, data we when unique seen players And a early from the about is we've a is differentiated. little say bit do we date and the performance want certain that full really are based it's force that the blood competitively because deliver go of there. in So technology whether

in how that about about have. and so think the being And on careful building different investment breast we stacks technology we're based evidence we very

Jeffrey Elliott

margins, expect steady the given the carry pipeline, even build finding come. broadly, look better for cost of of a to that team I our at you should efficiencies X Cologuard when X, at fabulous into On to improvement gross margins gross more did Cologuard years job goods.

on So about the we've X% per cost talked reduction based the test for before in least investment gain. having Cologuard a to at efficiencies and we

Brian that some, an the So could pressure, OpEx overall field temporarily out teams fabulous drive new got highlighted a continues standpoint, put are I though, foundation, talk you margins we've precision broader little the in in don't the carry about along higher. with better that they team products the should again, full overall still given I network already gross to the margin could as gross have. think this in help reimbursement the deep beginning. but relationships oncology, From field, in walk the the investment

it's selection new same you foundation and that of provides you're same same in a cases, That products, and a introduce it's down you're the block road. lot the using opportunity therapy Oncotype physicians calling leverage MRD many on. In very the the tissue the as of patient today incremental both DX attractive for

come. for colon make So from good really a to for investments margin are standpoint, these us to years

Operator

from next question of Dan Your Leonard the UBS. with comes line

Daniel Leonard

couple Cologuard of have questions I on X.X. a So

on expect BLUE-C pricing I could get thinking published? secondly, get when study you for product? the would And what your that latest like could then look could First,

Kevin Conroy

study, publication the the nearer never term, be In BLUE-C you can hope tell, if we term. in would the would that of but nearer terms in of

positives that will here are detects In significant particular, system XX% pricing, care the of creating we directly fewer all that terms value. a test developed we've we In health money. say is false saves

unnecessarily undergo procedure. to invasive It saves having patients an from

is from is to we that the priced made And that's commercial see higher expect you in providing investment of day because get Medicare specific pricing bar any the and we've terms much huge until it a a that happen value. guidance, to value payers. that. But resetting and of tangible so And not going by

can we all that's So offer.

Operator

from comes of Subu question next line Guggenheim. Your the with Nambi

Subhalaxmi Nambi

who screen over quarters? actually, individuals screen said you year to XXXX to perspective, was rate? do see eligible the spill an In a and what's to past, mark? actually it do eligible patients the the percent are XXXX Or question stick extension just you to Basically, for screen An in XXXX? of what hit the you of lag Doug's you increase see Do expect few observation it a from XX%.

Jeffrey Elliott

Jeff. today. bit is Thanks Subu, you the for what below The a question. rate success this is Sure. said

round, moving it That's the is quarter. quickly. When see perspective testing, you longer-term every in good. we XX%. for go say, first However, to earlier, of goal it over consistent as is put higher to And time people out talked is about very progress for example, only X,XXX often year the first get XX FIT on XX% Kevin at, test X that, years. complete every the for the test a

takes even though. where back. Of even a year, better is call outcome, for X.X we're do we the become who them good it about years, people at we it, X years think to come eligible So a given today can in

will million else next some become else So become not this say, year. if people December. X.X year, until get those of probably Well, going they're well to people retested

it's median years. the to at X.X to look closer you if time So rescreen,

little takes rescreened. and bit that doctor but time immediately. out time a it frame that happen of and coming get Again, go person to It them get in, is back the to doesn't

something customer that we providers, I rescreen they build health give and rescreen. could care Cologuard. add if doctors, from we standpoint, a our the experience them at just brand a our population, When our in look from And customer confidence customers, ordering

population and we bigger, helps in seeing the country. see of gets that we're as terms compliance, more that customer ordering confidence, the rescreen experience, all across around prescribers, population I as the rescreen And get

Operator

And with your the Mark of from BTIG. last question line comes Massaro

Mark Massaro

me call. the Thank on you for including

a about second think the lot considered you data? first-line you FIT. reasonable adenomas be test. Kevin, And questions bar been Or to to minimum And getting Onco XX that the think my that Medicare you When is level? might how for for you perhaps on XX% question a So is, do of Is we question timing Liquid. thinking reimbursement? obviously, might about talked we've number? minimum first When what commercially can this advanced can it launched? discuss see folks we are anchor around then my see can be

Kevin Conroy

thanks, other the sure this And in Others at XX-plus on Well, Mark. this March. -- getting tell. I'm they're decision, Hard believe going they're FDA in But range. Ultimately, have input form I and to be this. decision an general public is about in hard what's to It's sense? a probably gone thinking the this.

is supposition best. is not its -- that at So that

goes performance that Frontier XX% is test in to that modeling it back again, the and defines with the the in Efficient modeling detection. FIT But bar the part

far you So be too that. can't from away

Brian Baranick

I Brian Liquid. I Onco can again. -- is that take this can one.

outside just that So we inherited Washington, as inherited of as as we're that the in about up we Kirkland, Seattle. bioteam really the team excited in technology well part of the Red up

have that This our platform in now York reimbursement as and of a for backbone many the by The chemistry well right liquid onco developed team. State on that the robust very a get the goal equation. test has we team. year over of been Medicare I'm to really so on validating get hands that So years working And commercial team to we excited that is to that side approval. as can reimbursement Medicare. New submit calendar

Kevin Conroy

screening lot false you the That blood challenge fifth whole a test the any unnecessary with whether from come the a that interest as in. rate to with at the of like get ] this that back fact just is Deere's when colonoscopies with [ more also they one category unnecessary can't the rate, me twice USPSTF, the have many away you at test plus XX-ish of that look look but efficient frontier. people not as Remember Let model positive percent and of look analyze they test, to factors, a colonoscopies they new false topic game and you time leading to get a two positive at of generating test. you're as

So detection positive, probably in a it's different. what minor similar is false CMS plots the of part looks then FDA. the one detection and really looks way cancer had a it right? in at at way ironically, and as this adenoma FDA a combination USPSTF large So totally

Operator

This participation. everyone, concludes for you, today's your call. Thank

disconnect. may now You

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.