HTGM - Earnings call transcript Q1 2022 | HTG Molecular Diagnostics, Inc.

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Operator

Thank you for standing by. This is the conference operator. Welcome to the HTG Molecular Diagnostics, Inc.

First Quarter 2022 Earnings Call.

As a reminder, the conference is being recorded. Instructions]. [Operator like conference now to turn to would over the Ms. I with LifeSci Kosse Advisors. Monique Please go ahead.

Monique Kosse

operator. you, Thank

quarters federal statements factors begin expectations we the Lubniewski, discovery including Therapeutics HTG statements listeners paper XX, application, of projected providing forward-looking for cause time statements. statements that including panel momentum regarding many risk those of subject to include customers, the that uncertainties any let update build revenue company's for from chain business, and forward-looking transcriptome is may including described recent and related on improvement in the growth, our meaning company expected Drug impacts from and drug the XXXX, Before call and within SEC not the this HTG call, forward-looking of discovery remarks the drug turn our the me beyond SEC. as ongoing becoming in report place heading this laws, the materially preparation statements to no I cautions future HTG time which differ XXXX, securities remind opportunities of on would their our whole to market transcript like a sample on cause regarding or risks profiling HTG expected Chief issues that, Form March and the business of under today's are our risks Officer. These HTG May the or capabilities to information Factors undertakes control, periods, XX, the uncertainties circumstances, white the those and materially specific and call. obligation quarterly in future forward-looking of to protocol technology. a expectation that could John? HTG of are and uncertainties, expected that disruptive company's of hires hybrid call, filings, include company's coming panel the to HTP for are studies of reliance revenue planned undue events COVID-XX in are customers as to to the numerous supply result to any may differ science its company's Discovery with the use life statement. importance our today results company's actual miRNA harmonized the well on momentum labor and you company, on and regarding pandemic XXXX Executive as and their date the John results impact the filed ended quarter With XX-Q the as over events HTG's

John Lubniewski

Thank you, Monique.

pandemic. said, the always, our during of privilege for not levels, continue our was to pull that COVID in pre-COVID the yet market to hard we continued supply we chain and business. We present profiling As a it cycle past as customers choppiness employees. results it's quarter saw With and delivered due quarter our of through work out to at labor sales our access and challenging a to customer, continue issues. Customer the experience we the still delays is

follow expect trend. look our revenue been year, or and a the profiling the lower industry completely, and at of closer remainder their and quarter supply QX their we've get past takes Taking time submitted momentum same seen labor to throughout it Further, reopen have samples support to to the year, most sites. the have collected in sales the throughout While their many laboratories. for to has or XXXX sample the processing typically company, historically results. over been actually extended to customers facilities be limit and our continue we for access for build to restrict customer shortages able a the and of

Our delays market same ongoing see cycle. the it XX% reflecting revenue our period revenue was our panel exciting XXXX, Despite those sales in for adoption compared quarter over for HTP primarily for to we million quarter. in positive continue million as new for $X.X $X.X of the represented with this our slower revenue, the

We continue teams bring able train and talent and to quarter first our in marketing board. of the we've are optimistic been sales XXXX and rebuild to the about on

commercial addition HTP We for both panel. experienced future on also an to in opportunities in growing our of momentum, profiling these revenue will HTP periods. We drive to focus hired believe OEM the leader additional moves,

XXXX of As mentioned robust year growth in earlier, XXXX, over we expect full build XXXX. throughout remainder reflecting resulting the revenue, revenue to

Of sustained broader global or or of we sales economic course, result pandemic our in as negative assumes this downturn the don't cycles issues. experience a any

we During pharma customers X of new new XXXX, quarter and the first programs. added X

We X bringing new HTG technology, also XXX referencing publications. total to added over publications this

RNA paper when Our HTP RNA-Seq. FFPE compared on to panel's white time team also the focusing our fourth produced in performance a product highlighting extracted and this

fire use the from microRNA we strategic a to our all development on single lysate. and enables product whole both the introducing prep to the continue QX customers HTP panel sample a reaching of that On front, together protocol new milestone harmonized cylinders, on transcript

We expect X panels use encourage this studies. will advances. In our made discovery both significant drug customers business, their and to we

I'm significant and to Christina team, development addition our She is the Moderna First, quickly. early a program have that the going we Dr. lead were a successful Carruthers great strategy target and to confident on to very impact she's in from recruiting initiatives.

X we to profiling paper follows: dose-related based transcriptomic as publication major specifics The as inhibitors lines our for profiles. transcriptomic paper. closely We being similar in confirmed call advanced XX as use feasibility milestone allosteric related of inhibitors technical profiles. mTOR. and able we different cell I was then on well cell dose also we molecules alluded also This with the we full technology are rapamycin transcriptome changes first to achieved were we the We technology our that did then The a what of And human major treated And treated white proof-of-approach samples. We X we differentiate XX that our with as with on from profiling small those with a can levels. that minute development mTOR X a of based milestone. analogs differentiate white started lysates found. X structurally ago, rapalogs to here's

our First, replicates with of were so singles good that technical Pearson better we use correlations can we or profile. X.X when

mTOR not analysis, the also in expression Next, we component the structurally but the only in principal similar inhibitors, via rapalogs able differential rapalogs biology see were to the other versus themselves. analysis,

we demonstrate of also is able linked are last, with different Broad analysis doses. biology expression X via Institute's landmark CMAP alignment which that, on the Following XXX the we And see to based database, able to directional differential genes. were

able does to the that it transcriptomic mean? this what utility we database. technology mTOR and means So profiling system, well-annotated our and known advanced real it a accrue Well, tie back a in of to were

will So now application. paper drug technology material our for to where what's white a to be that going specific our take next, #X, the discovery we're and move

use greater us early which library Specifically, This our informative will and our screen stand selection proprietary help we a chance that derisk do we iterative expect design on initial first first will start believe molecules, process we to chemical through development will our success. the for will therapeutic target.

to make to do for confident now even this dive turn quarter, better difference we discovery. we're Shaun can financials. With on the drug a I'd over generated we that the like way to more our real a in data call deeper a enabling

Shaun McMeans

with Revenue John. first Thanks, of XXXX. compared XXXX the $X.X was for in quarter million million $X.X

our revenue as Our in and revenue XXXX direct financial statements. was defined revenue XXXX product-related product and comprised services of entirely

Our cost of services in product in revenue XXXX. product-related was $XXX,XXX and $XXX,XXX and XXXX

included revenue million was million in to which and first of XXXX. of cost $XXX,XXX recur in the of XXXX quarter retention credits, XXXX. $X.X $X.X did not XXXX Our development employee Research compared expense in

attributable unit. quarter retention the credits XXXX For amounted research development XXXX to core $X.X Approximately costs development of the and profiling was of employee profiling offset our XXXX, devoted expenses. first to $X.X core our remaining our therapeutics business $XXX,XXX entirely and research to related with technology. research development QX to expense million ongoing and technology million

And our panel of kits through best-selling $X.X our XXXX, of first laboratory, million transcriptome profiling product performed totaled the As in John and continuing in our XXXX. sample to to panel demand its is in mentioned, quarter growing see and August VERI/O sales HTP services continues processing XXXX. adoption in since launch our be

for Our operating $X.X loss for million QX XXXX. with XXXX was million $X.X compared

our XXXX operating private XXXX. loss reflected of first credits, of retention $X.X the This XXXX benefit loss Net for $X.XX in XXXX XX, XXXX. reflects $X.XX same million a for Our shares the in was sold and placement of quarter employee quarter the of in recur through stock March additional common of did ended securities. share not the first period per which

back for stock increased also common cash, and are common common a in XX, for John outstanding. placement earnings we March prefunded now million XXXX, available-for-sale gross call approximately private had we of our $XX.X million. closing cash of warrants to shares approximately of stock short-term our for $X.X outstanding with share his XX, million March X.X XXX,XXX XXXX. proceeds XX, included transaction the the will We in approximately The ended of of shares securities. securities and approximately March of $X.X included by per XXXX, the which closed as million On shares calculation turn comments. quarter I As equivalents

John Lubniewski

discovery HTG made efforts disruptive significant into Shaun. evolve life our hybrid drug Thank In company. we QX, you, progress in science a to

expect own will licensable the that discovery, a library with this white COVID in in to this candidates as molecules, remain to of Going from develop and forward, technology at then target that the optimistic quarters and we've a start improvement on year with drug reset small our to disruptions. and candidate. see I thereafter. step can the In customer caused asset be we're proven the use moving and fourth we access our structural technology a be we follow-on industry coming will our have used derisked quarter own next speed The proven great proprietary very to in cornerstone to to observe one, continues differences paper: increases process drug capability.

year. continue For fund our in XXXX, and develop to cash pipeline QX continuing operations, profiling with of to ease create of be: a And second, and our profiling our for chemistry programs develop cost-efficient both targeted this and candidate drug first, strategic opportunities business proprietary to priorities licensable to and the are to licensable first technology companion a manner grow going pharma to candidates diagnostic continue to burn.

our milestones, I the look years, to HTG. you of As in a we up like published and advance new that, open for calendar call updating I'd as questions. Operator? prior strategic to a we vision of forward With

Operator

[Operator Instructions].

comes with from question Wainwright. first H.C. Dipesh Patel The

Dipesh Patel

for thank very Shaun, much John, the you update.

revenue regarding this questions two and have I growth year. milestones for So potential

number if And you challenge COVID that growth? been that? standpoint, any one, do How other anticipate then support two, you know, from that right? be you paper speak know as we first that to has could further additional or what a to milestone data companies, the driving perhaps And expect I some a this examples might So later the collaborations number evidence two, many for you revenue year? readouts could white mentioned

John Lubniewski

Thanks This for Great. is John. those questions.

probably day come and then there of all, first we're cycle. what So date kind That's the in just tell that seeing. delays sales COVID, samples the is we're will seeing at biggest X People still in will plus thing XX%. of yes, us

the are what organization. retrained through retooled year. especially is thing and the doing the year, towards we've Well, first completely we of turnover some had We of unexpected that? kind So the sales our end about

of QX. opens has use you're I week, the sweet to think the HTP disease, been specifically in HTG mail spot. some key to impacted Oncology list of going But e-mail sell our is always us on on whole that product in get initiatives actually to this for addition oncology. transcriptome one in markets that's door But how COVID. to HTG transcriptome product or total somewhat the into some the if our around probably infectious you're

into today, coming So it's because it's share percentage is kind the important of from oncology. we our areas. measuring is still that still disease how other of business push lion's that what We're --

bullish very able that the that's going to to one be business. So we're we're where area grow

customers may a the transcriptome harmonized interested the up we they're also us product. The cut, are interested the and point view. because to microRNA that of allows have for probably you double in HTP microRNA kind HTP This whole in was essentially second protocols of

or in call OEM laboratory their there. So to we've own technology now concerted on we've on and want proprietary developed sales better better either use double our got in build options senior actually executive to a that use for And treatment out kind content laboratories as HTP we their for to effort CLIA then that. to people patients. for a diagnosis allows we LDTs, focus of to provide And tests a in their very to that's lastly, what platform where laboratories us and brought

to got So grow we've a lot going on revenue.

Regarding question good the milestones, there.

we of that to some our going we proprietary the believe of begin regards pack will our will And which data actually conversations we to library with a actually perhaps expect which target data than that our still keep late pack, options molecules then our is characterization information the QX, we have at So present done partnering where we'll target, second milestone, have in will to an have a we've transcriptomic we'll our of in And before. end make in that to lead based different finally data enough using then public. on. couple and preclinical essentially early to potential target we quarter disclose having to hidden. have preclinical own start will molecule on pharma We'll partners of start be then what we QX,

the start around to that profiling both and business those on as are of the some would collaborators press HTG we some you'll key So Obviously, business, engage on discovery see on milestones. I releases both expect ends customers business. the drug from partners and of

Operator

no this John [Operator call like I time, remarks. for further see and Lubniewski closing back over in the At queue to Instructions]. the turn questions would to

John Lubniewski

their here hard want work to like HTG today. for self-sacrifice everyone we again employees I'd the again to us thank company. Yes. tremendous as this at for and continue thank joining I grow to

to Thank next you, like updating our our great continued to I'd have their addition, and shareholders day. for earnings thank and In And look I again Board our forward a support. on call. you

Operator

This call. conference concludes today's

your You day. you and lines. Thank a participating, for pleasant may disconnect have

HTG Molecular Diagnostics (HTGMQ) 13 May 222022 Q1 Earnings call transcript