CDNA - Earnings call transcript Q4 2020

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Operator

Greetings, and welcome to the CareDX, Inc. Fourth Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions].

conference recorded. this reminder, a is being As I to Director. your like to conference over turn the host, would now Greg Chodaczek, Managing

Greg Chodaczek

call. afternoon host company's for Officer; Chief for CareDx you The Chief release ended and Executive today. available XXXX. this at Good today, on Financial www.caredx.com. currently Earlier Seeto, the December joining XX, Konrad, released site quarter Officer, and the us results afternoon's Marcel is will and Web year financial thank Reg

expectations forward-looking historical without those including financial get would statements involve that results in statements this statements I we are forward-looking management will actual current and are the call Safe results forward-looking our made Private All assumptions. everyone not based of the Before are to enrollment remind estimates which expectations of trends, from limitation, Harbor decisions, future started, and should Act like could include These securities meaning statements Securities material that upon implied examination be not of anticipated undue of pricing during within you and various Accordingly, the cause laws, or these risks by pursuant historical of federal deemed materially making provisions statements. the differ statements that call statements forward-looking this to be statements. facts that should to Reform and to these matters place and contained be operating Litigation statements. regarding on our coverage uncertainties XXXX. reliance Any

This intention the provided this today, projections obligation, to only the or except revise please required our law, update and risks accepted Commission. SEC. conference call with of directly financial any or financial today's call the uncertainties the XXXX. The or see as because information, filed to or broadcast are accordance discussion most information For Reconciliation with in a list information, other the measure will any also Exchange principles. future that of new live a will otherwise. be XX, generally our call of certain accounting disclaims with financial events, release with filings and over now GAAP include earnings may and in CareDx turn I found by business, in speaks measures statements February to to forward-looking comparable Reg. the Securities descriptions associated whether calculated not

Reginald Seeto

us. year conference Thanks, and Greg. afternoon Welcome thank quarter Good earnings you joining CareDx’s XXXX everyone full and fourth for to call.

patient of employees to to thank tirelessly partners. deliver Before getting Despite Transplant and that I we're years, unique together continue rallied CareDx the new was of year and has develop proud lives. our to we all than transplant at and many a solutions COVID-XX, results, extremely improve XXX% into all worked community. more and want of patients and been our XX serve for to transplant focus us transplant challenges the XXXX CareDx our with XXXX and

to transplant demand first-in-class unabated solutions and of Now year patients XXXX to was CareDx exceptional turning continued high-value an across for caregivers. innovative suite as healthcare results.

year XXX.X year. over a representing full Our growth over revenue million, XX% was the prior

year the the ago digital our For XXXX. Digging QX year XXXX of the and and the for of quarter. loss for this in was over the quarter, line. The volume GAAP revenue for provided XXXX, million originated was year Product XX%. revenue the top revenue, results testing the quarter XX% X compared AlloMap was X.X and XX% CareDx by and X.X million and revenue the quarter, increased to was growth other $XX,XXX to to the services quarter our transplantations and which full from the X.X quarter million and our XX.X testing for phlebotomy. from mobile million, respectively. XX% fourth fourth net Approximately growing into million million, testing AlloSure the approximately fourth increasing million, XX.X fourth quarter of respectively. services in majority was was total quarter Adjusted deeper driven EBITDA X.X full

December, of to As AlloSure product increased United XX over transplant quarter. protocols the gotten the ago their fourth centers XX% year end of testing of care. In have States the in in standard revenue compared quarter, the

to revenue transplant solutions offerings improve XXXX will several to and for we produce Again, While as digital order XXXX, software and our workflow expand continue would Tx did our products centers strategies will our quarter. X.X fourth was XX and million in U.S.-based both as for offerings adopt service rolled solutions AlloSeq we our like DNA COVID-XX more Revenue XXXX. year expect solutions. transformational vaccines out more CareDx, XXXX, In expect in was are the stronger highlight generate direct the AlloSeq and a significant cell-free growth to from digital our last we I begin we to year. products our center announced

phlebotomists in monitoring patients. from remote the that transplant March, solutions was transplant and very centers This infections patients, accelerate, proud announced home-based of RemoTraC, enabling COVID-XX was Firstly, offering began to our made to we of mobile as all nationwide XX% and than we response we're April, of launch in be more put by together able volume week. XX,XXX mobile of originated end this April, testing network By within a daily to and the from to phlebotomy. established our close early of

our Today, With rapidly have to developing and presented X,XXX is in at month Transplantation clinical four cardiovascular, Therapy heart neurological, Transplant cellular centers solution XXX a for with in area annual we oncology, other engineered is lung allogeneic As Cellular perfect being development Therapy portfolio, beginning just received transforming cell we we enrolled surveillance Separately, our continue transplant developing the growing December, April, showcasing diseases, meeting, This approximately Early in allogeneic RemoTraC. therapies. of products kidney, abstracts our autoimmune, Atara of use to who AlloCell, end partner therapies. as and a companies RemoTraC offerings infectious the our partner Cellular believe including allogeneic transplants and the offering. Biotherapeutics. and our this were of AlloCell more than companies patients for our cell therapy. solution patients with our surveillance therapy cell introduced cell develop will

having is rejection monitoring tool Thirdly, critical in in we one only the lung bronchoscopy. detect believe AlloSure in transplant rates Lung the Direct. AlloSure powerful to was organ. option The with of the solid of our organ non-invasive patients study of invasive that health survival clinical acute lowest from is pivotal a an With LARGO transplant, transplanted published data October, patients could a demonstrated transplant Transplantation patients identify Lung lung cellular AlloSure rejection, whose need for study

a Heart. AlloSure pricing MolDx compassionate for February MolDx XXXX, has XXXX. dossier use As from And been reimbursement. submitted our lung reminder, Medicare patients for AlloSure And June AlloSure final Palmetto in to Palmetto we Lung transplant finally, reimbursement for November, available received in under we since

As we prospects. to look remain very our beyond, we XXXX excited and about

Our AlloSure testing volumes continue to impress.

centers than the Our adopted decision to center have than AlloSure first allowed in on direct XX has as with end transplant AlloSure centers greater used to our focus transplant XX% of of the be protocol strategy December. and more centers named transplant to of

start now to add we transplant centers direct can more continue we community to our protocols, and As strategy.

have activities, encouraged managing by year direct medications the the scheduling strategy, we're progress with recently at now to to them team with job designed hired our nephrology with care and and track last and and of launched Combined patient. was that's This day last patient make easily very app patient end patients managers community started we to manage mile AlloCare, the designed was is our about transplant easier health and to Our that We doing. physicians. health to reminders day patients’ communicate set and labs. by allowing our team

double growth. approval Heart of AlloMap HeartCare. We were franchise. testing Heart experienced as heart the thrilled used AlloSure the digit in to known combination strong Moving AlloMap when with with

for reimbursement As last we I end at the of mentioned, year. previously AlloSure Heart received Medicare

growth heart is testing, in from patients. stem test in for AlloMap increase an in our reimbursement began AlloSure Medicare possible to we While Heart submitting December, from

providers non-Medicare for with working we patients, reimbursement secure commercial Regarding are reimbursement. healthcare to

another electronic TransChart, in Ottr electronic records transplant With a management EMR this digital provider of in and solutions. our software, now digital acquisition, centers. our of the health XX medical is total. recently the offerings, U.S. centers including XynQAPI supporting coverage offerings, acquisition acquisition transplant announced quality cog needs software transplant extends record over The TransChart Regarding we our of to

transplant readout we very offerings, and KOXXXX highlight AlloCell, build exciting the continuum. truly CareDx for as opportunity. we're something is chimerism ACC, the in the We're TXConnect. be call adding software. the as was update HeartCare of therapy presented stem TransChart get largest we we to strategy potential exceptional multi-modality potential Solution direct early to of in the dialysis for to centers. about and team offering which very forces Earlier of AlloCell was month, provider Kidney product Everything RemoTraC, hear formula we businesses That for held QX, acquired for another exciting the A surveillance Transplantation continue acquisition, accelerate In for our and AlloMapp of not continue build drivers in Therapy the do part to center turn as we of allows growth, hired significant ecosystem. TXConnect and and HCT assessment the Lung care move And first that, provides direct the said, clear and guidance. along strategy, out of excited from we’ll but we AlloCare and connect provide discuss as I clinical certainly with for being with least, trials that now Universal partner to stem with In believe centers. include strategy was as TXConnect, highlight upstream the in CareDx. of but exciting Therapies. and transplant CareDx As AlloCell nephrology the in our dialysis A AlloHeme data are continue presenting really a in direct-to-patient titled, reimbursement to greenfield our transplantation With digital XXXX Surveillance to we the as XXXX AlloSeq by patient cell Atara Precise annually. focus, coming our recurrence just to to expect for HeartCare, and is the new community centers of our This connection our we QX, QX, that Cell use starting Monitoring field a with to opportunity AlloSure to integration, though cell on build focus along to new launch an our few going community milestones this the announced continue has XXXX, pharmacokinetic cell behind leading financials expect products. we on create Sensitive QX, This our patients. summary, with patient expect fruit. bear commitment we Kidney. were driving and quarters and in the beginning for partner, to our the and stages to this year describes protocols started. at at winning EMR for and back our key is also at to Medicare the transplant in standardized KidneyCare key growth In and while be an the journey robust driving validation is growth a biologics poster meeting, journey now and of continue work we patient market and and donation offering Off-the-Shelf one year, getting in us This to that the patients I'm and the transplant. last conference Biotherapeutics, AlloSure a Last, well milestones data of in are transplant our leading Marcel with shown This MolDx. start AlloCell share end Cellular the us over managers, at year XXXX human to transplant Pharmacokinetic community we're

Marcel Konrad

Thank you, Reg.

XX% The increased income by to growth fourth Heart year-over-year revenue first quarter the in of patient service results. testing and was the AlloMap quarter Turning services to XX.X testing Kidney statement, fourth XXXX revenue million. AlloSure our driven

and fourth product our Our million quarter increased to other digital million. revenue was revenue X.X XX% and X.X year-over-year

Our gross to improve margins continue year-over-year.

XX% compared GAAP gross the the was period to same For the XX% margin XX% in was gross quarter. the compared XXXX, a year prior The of non-GAAP margin XXXX. XX% of of quarter fourth in to margin quarter for gross the

compared of For the XXXX. of million net loss quarter loss X.X same quarter fourth of net XXXX, in was the to million X.X a

loss per $X.XX XXXX. to was a quarter share fourth of $X.XX per net of share the for loss quarter net compared Our the in

same a X.X XXXX, X.X million XXXX. non-GAAP million to For net the of fourth quarter of was in income the compared income net of non-GAAP our period

are We progress making per earnings our share. with good

income fourth diluted per a in net compared in same the basic was Our respectively, non-GAAP $X.XX and XXXX. $X.XX, XXXX the share and net diluted period non-GAAP quarter basic $X.XX income to of and of of

define reminder, depreciation, we non-GAAP as interest, income expense. income a adjusted As before a tax, other amortization and net EBITDA

of to gain million of and of compared XXX.X XX, cash XXXX, quarter was adjusted December of adjusted fourth quarter million. EBITDA X.X fourth the Cash, For in EBITDA recorded we XXXX X.X at equivalents an million the XXXX. marketable securities positive

we million of month, commissions X.X deducting position. to approximately our million continue approximately in particular our the strengthen stock, roughly million. January, discounts CMS an public operating common full. we quarter, XXX fourth to balance the repaid underwriting offering In from successfully in X.X million Earlier this cash operating activities also expenses. payment cash offering XX.X and of estimated We a CMS basis record sheet, shares generated in after of of advance we completed On raising and

guidance. turning to Now

continued XXX Reg and year. as We XXXX to other our to are such, for providing anticipate well by of growth growth revenue outlined the the as as drivers XXX AlloSure reflect expectations the initial million revenue million

for uncertainties Our the continue We COVID further novel I'll but market in the transplant feel the the penetration. well continued With to around clinic. positioned guidance field to solutions to balances that, emphasizes bringing lead call open questions. pandemic

Operator

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

from is Please Jefferies. with with Brandon question proceed Couillard question. first your Our

Matthew Andrews

positive but for well. number pretty to given turnaround a guidance, the This guys. guidance, off part tied is Good the with on are quick last questions. in taking of as To impressive your Matt came backdrop for RemoTraC, Thanks Hi, developments well ahead of afternoon. growth reps start it your Brandon. year, with XXXX other feat initial there of

key So Thanks. about for some as see talk for of to growth look you this we where you perhaps well? year and the XXXX, out potential greatest as Reg, can the drivers upside

Reginald Seeto

Matt. Thanks, Yes.

we I have that really the area actually testing focused nice on. So a of built and we service growth is think engine

a really within formula continue of so we to sort centers will protocols centers, win and formula winning established. We that's great the and have we new winning add

last team and to be really the growth year. as I community what's the of at we community and think in secondly area end ability is exciting The for nephrology will an built out opportunity an us now of expand incremental this organization.

be at if reimbursement The this approval third of is we recent well. look incremental will for AlloSure Heart and multi-modality, growth reimbursement the area as of another in with us

So, look and drivers we what we every day. continue forward as really into certainly potential move strong patients we for to growth really XXXX some do

Matthew Andrews

month. how, Transplantation you Thanks. pretty And this The opportunity data in remarks, in partner as the earlier AlloCell, clearly some interesting pretty then mentioned on with entity your on you evolved has clearly is you validation prepared there your at Atara early with here is that the Therapy presented at still the therapy meeting Cell being its out programs could known if all, curious pipeline you impressive in for pretty elaborate guys. cell innings. if have multiple But conversations

So just conversations here? are partners curious other progressing Thanks. with how from

Reginald Seeto

is comfortable we what universal that think we're who with. working about is AlloCell Yes. there, allogeneic term they the really by the our creating information replicating did sharing of on, new able really And the that disclose we're we With way working I as we to market opportunity partnership, with we're its with with built an exciting feel actually can't what part surveillance future relationship to be a share doing. and it because growth therapies. is cell agreement written we're we what AlloSure of see longer Atara, to proud

lot terms partners working particularly In standard, which in of one those create. excitement all new spoken the the to that we're a clinic, to, we've is with about there a of helping

[indiscernible] of it's about to is of companies meaningful as in as we about allogeneic build space I driving therapy it's think not approved is, cell wonderful these for This the revenue, the partnerships opportunity with this out more building us future. a these get together. importance continue many

approved a is that cell any there therapy As future. we of but the isn't today, reminder, allogeneic way believe the

Matthew Andrews

just one last then RemoTraC. And Thanks. one on quick

of in guys. fourth month? get I to in on XX% here was that we think feedback approach Any thinking the then said you the program first how more you've as the and you year any thoughts data as up here, improvements volumes launch Thanks, year tweaks or it one about full next quarter. the you're quarter made coming 'XX? And

Reginald Seeto

we of RemoTraC, unmet are together organization that and with centers was and as to highlight more think need patients last such the around transplant had something able using as was we're quickly that supporting rallied what year put fantastic so It this a than probably and did an response such it we centers. I it. was an now XXX

just terms to used and margin, And went QX thinking In we of in of we the up the XX%. have XX% -- XX%. that end to went QX in about terms in -- then higher back in QX, of were

well. so of expect they've satisfied, which core now and It's have going with RemoTraC patients something we out business. to as centers service, that had patients want really transplant of to to And it’s us the highly the our XX want X keep part as

it core forward. be our will So of a business part moving

ability additional we has direct I Having valuable patients think it’s time in with many the to learnings, connect terms points. directly X,XXX-plus valuable. which extremely with really patient now a just extremely can interact with been of the the was consent as

is additional bringing of offerings other the really example, AlloCare that planned during to we can with now, introduction these because is and others it's helped of that course start AlloCare year. patients. The one this have we an thing as

Matthew Andrews

Super. Thank you.

Reginald Seeto

again. you Thank

Operator

proceed question. Rachel your Piper Sandler. with with Please is question next with Vatnsdal Our

Rachel Vatnsdal

Rachel for for is really This the everyone. Steve. and congrats questions on year. a on Hi, taking nice Thanks

had in Heart? the So nice to next And about to that could the of you two some off, where Can years? you rate the run AlloSure first go alongside currently seeing mid-November. talk really the one you've with number since attachment tests attachment those AlloMap HeartCare for over Heart think you're HeartCare of success launch rate do that

Reginald Seeto

something exceptional, before. been multi-modality we because truly validated had was HeartCare done Yes. never which which was

And so utility adding clinical having combination something was that's this diagnostic space.

continue we the that's So shout thing a out, I want give one to innovation bring. to so

before thing the the The of to is, XX% talking the year And were was has second The the mark. mark. able only we start in end it's last to attachment around XX% increased rate XX% approval, directly. attachment about that XX% rate around to the HeartCare actually

we where to we bring So that increased this note rate actively. attachment thing expect as utility, the you to additional see the continue we and we this from The so now ability centers. clinicians to that see one talk it about something clinical started course progress this also to usage year of during is

Rachel Vatnsdal

you've of commercial you you're high give rate conversations after And launch, such the us reimbursement payers that can utility, have your the guys given more that a Heart in clinical especially on having short Great. which about on with color great. is Obviously, going uptick time some really seen AlloSure you that a reimbursement?

hit with as you're about well? us far? having? you'll been of And them tell number what's think feedback those some So you the conversations that high Do so

Reginald Seeto

for the we Heart, AlloSure think have anticipated out the this commercial firstly, specifically the which major have with I all payers. AlloMap, addition done. And XX% we we with of coverage, team Well, building

are of started And think which at just and has had preparation [indiscernible] as it. because at probably I the example, AlloSure some Kaiser pay. you for that commercial look two we've looking accounts in initial both of happened Heart, wins our

we've we a of So built this look continue experience, lot drive pay this how team out is we've at that an work but a we new we on, to as commercial built area adoption.

Rachel Vatnsdal

Great.

me. from question last So

that's lately you adoption. driving about how lot So a getting to closer talked patient the and further

via and managers additional adoption? you had deploying to like tools patient and success that how talk grow can much about tools you has really driven like have So room that? And AlloCare RemoTraC the you've how that care much then comparing do

Reginald Seeto

in, is – we the critical We of because Patient patient play care it's future. patient we the managers pre-transplant, it's care invested already something managers the our post-transplant, believe that role started manage heavily peri-transplant, and also way that we process. a as believe we've from

look as of some call to patient managers into care post-transplant already and after actually patient space care have these We patients the the a pre-transplant well. patient managers

on firstly share continuum with the important. we of the would and these operate. that is that a So had is the I they've impact really PCMs, What advent way business significant

for So, the example, our transplant patient have ability double achieved care to we by a patients calls rate at the the for adherence a when that schedule. patients managers center, of is up to call when center, than example,

AlloCare, lot success that offering that would we managers this think we something and our this know the something look that I saw with, of – that I was service, patient added driving to introduced add-on say adherence. through you with But and throughout also by managers. premium had was interaction care and also had So white maintaining we administered that if care glove at that in was patient have a patients that was obviously opportunities,

journey. the to really would to early start And we see this at the TXConnect talked something is an example, as ready and pre-transplant, asset. getting that of a that see remind to you do in strategic again, start in terms at, that this of is goal as what as for year. that our I we we to the last patient patient opportunity we also get So we're earlier mile that's last offering, really And look

is our that stages transplant So, along the to all commitment journey. patient of

Rachel Vatnsdal

on again Thanks. year. the Congrats Great.

Reginald Seeto

you. Thank

Operator

is question. with Our with Nowak next Please with Alex Capital Craig-Hallum your proceed Group. question

Alex Nowak

Great. Good everyone. afternoon,

does XXX centers? protocol? those still for you're pipeline in mostly there transplant are do the numbers centers and growth AlloSure in mean sit just do you're protocol, centers then you that are And the or in where all remaining just those then XX for curious latest the new the the that penetrated seeing? given within data Just penetration what AlloSure accounts fully have opportunities And where

Reginald Seeto

Alex. Thanks, Yes.

our strategy. direct-to-center think focus is I our

been just but So Of and improve where managers has U.S., XXX-plus centers we important workflows, we've that in the the do account mode around that's focusing how really for not right. operational our having also built on that you're clinical us. staff,

XX% in that we mentioned have we've we the centers of So cover. that release the

some the higher heart some the thing of the terms heart there heart and are with the In below protocols, at than the schedule, the are that continued about so good is some protocols opportunity protocols. is schedule, are schedule the as

More on is -- importantly, based we are three XXXX data, sorry, in started patients XXXX one now on AlloSure.

So we see in grow a which there faster patients. we've AlloMap, with after is years even continued opportunity much done is to XX what two than at rate one

to we we within And is – that. interface. of XX on than also so to the EMR XX% at only continue Maybe penetration important that this have more but that to us really just that's the this focus have do have we for not of centers one point centers thing XX more now, do initiation, AlloSure, than highlight centers

get and developing of recent in think doing, we're within mode is also do as the And these deeper this well? TransChart acquisition. Alex, you why that's we did we competitive as so deeper how what And centers

Alex Nowak

maybe very in the helpful. And have year. you coming data then of this the preview middle Okay, KOAR you up could do just that

you need of Medicare Just then with original with average comparing we to the do for to or looking show data remind AlloSure what gauging should development? us to sort creatinine? how to be regards success And coverage

Reginald Seeto

X,XXX a across XX than dataset such It's built over large excited and more by really patients. KOAR. centers We're

can the think some with important which for call we one of is X,XXX out, share really year large I community. the time KOAR So datasets,

at KOAR cohorts. I some think an biopsy with it also was based did of off eGFR correlation with looking study looking observational at and the how

this at also is large also that AlloSure. to there dataset with dataset. sharing but dataset of CEoT also be we'll be So noted will excited ADMIRAL another by going ATC, information at commercial be experience is patients, It there we're the which

continue I how is bring of to and insights we space. middle the So by be AlloSure and large with experience will innovation get there the key this to data think thing of year, the we time showing the into sets

look I those forward. coming So to forward

part study, up. the In the originally of met terms and question up, the had the we've something commitment and your as that's KOAR with when the of with CDD we is set of study also study design follow this that part of the

part that that originally So was of something MolDx the was approval.

Alex Nowak

you AlloMap missed Was think expect or at regarding Okay, submit the for when or of Kidney you milestone? QX got reimbursement I it. to it. And milestone submit end that your mentioned then what and that for prepared MolDx remarks I was

Reginald Seeto

Yes. The gating application when approval. validation. for to got of one milestone commercial just CLIA we share and for was CLIA also steps the is

us, share And means was it's key to because just validated a so really CLIA it lab. it milestone for that being now in

Alex Nowak

see. then submit XXXX. it. probably I Got in And

understood. Thank Okay, you.

Reginald Seeto

Thanks, Alex.

Operator

question. Andrew Raymond Our James. your next Cooper question Please with is with proceed from

Andrew Cooper

a bring What continue going sort after way you the but think as a get clearly Hi. what talked couple the Thanks about little thinking bear go to But before, guess patients we've given you after in any year. questions. attack through got of opposed I of nephrologists know you're about for how deeper as tools there, a center hundred than there of larger a more I is it well. are we of a the I to of really first can as much maybe that? to bit space to transplant lot there strategically moving about surviving sort add transplant of think is to and more a community nephrology patients should kind there centers? sort Just opportunity. sort lot you've

Reginald Seeto

Andrew. Yes. Thanks,

process it's pretty and a threefold. have We efficient

have The center first the we community. the is from that transitioned to patients

we So have a process that’s there. place in

patient managers. and care by I managed think that's our maintained

scheduling this of the thing. is continuum communication. first So continuum and of there That's

of our they're the managing patients end last is the community who are thing actively the in involved second at community The nephrology and we've out with transplant team X,XXX nephrologists year, community. built

in been that some in role may setting. role executive the transplant, the nephrologists identified interest, has but another of take changes an is then And so have to a play active active there so an of an of in And community subset there’s particularly don't more the order. much X,XXX-plus who

reaching So sort [ph] we of good sales to this and an turning have approach team. indirect also out

and the So been necessary we've space. fairly reach we that efficient, really only good, it's in had and but not success insights some that's experiencing

Andrew Cooper

it one have And if in about more the to the just in of then couple on maybe building component have obviously pharma on, that's helpful. Okay, you of you that company. like this, is of over this general. of become kind clinical of years reasonable when to sort a a a one could think said, you're AlloCell, market but sort trial But factor early you're expect of

And sort they're is from trying perspective? else what their competes out of what from that AlloCell at when there that to do looking assessing that with perspective trial, is

Reginald Seeto

why there. that's excited There so no out AlloCell. Well, is are by we standard

the to initial comes as there some to so sort is we internal allogeneic this is why own learning again they trying I a that it's universal therapeutic their this but as of cell exciting brews home the far But correlate do how doing so concentration. these it discussion on and on and together, as that's This firstly where can But with any it's that decision some -- seeing, clinical dependent is that you I use early what say studies build something future and [ph] in measure opens outcomes. that therapeutic AlloCell as is given companies terms start really can the making what to how these of monitoring. is cell and companies we proactively standard that applied has use would stage by I companies the create be what then that opportunity to And And think therapies space are think very really in to there -- are process. so you're their we're been either doing it even part we partnering is make standard. preclinical and positive got clinical market, of more us do say that we creating it opportunity us are

Andrew Cooper

appreciate the I time. there. stop I'll Great.

Reginald Seeto

again. Thanks,

Operator

with next with Our Sung-Ji BTIG. question. Please question Nam is proceed with your

Sung-Ji Nam

meeting at in for quick a edge questions. cutting I study The few of couple guys have Thanks transplantation that days. taking Hi. the are ones. presenting a you of the just ADMIRAL

in the outcomes of Just is quarter. this kind where curious, showing first data? Obviously you'll coming have be the second long-term KOAR you study the up

Reginald Seeto

because again we're under a of dataset, which is a and setting. commercial over multi-year period. This X,XXX representing looking set collected -- large exciting really patients at study is experience large Yes. it's a And data, a not multi-center real

it's exciting of you and that also to I So come do we think our Sham timing as well? to on, actually part with have of I KOAR with as also – want that as any might Head Medical. well. what it make have Sham, comment will

Sham Dholakia

Yes.

ADMIRAL about sort and sets same much where really is show about very excited it to projection, see AlloSure validation we other but of what of in KOAR that the also but performance the us subclinical, because transplant we're only of potentially that disease AlloCare clinically the in for sequelae going talking So are indicated not patients. we

So the ability DSA which to decline, we eGFR and model is predict outcome. standard de-novo see the for and

really it now tool, their real sort really AlloSure, patients paradigm now see with that journey. a of sets And same that first the step potential surveillance forward so from will ADMIRAL us you towards course shift care – where thing interventional going can will is that studies abrogate the creates outcome and of really monitoring the

Sung-Ji Nam

of great. That's this should but you. AlloCell, I talked better Fantastic. of not composition AlloCell this of kinetics, if on multi-modality then measure to platform. cellular about I'm kind also testing you of AlloHeme I'm the trying sure Is this Got curious, just as And I sense believe. and solution? just just AlloSeq already, performed get know kind being a think platform, I well. obviously of

Reginald Seeto

Yes.

is allogeneic therapeutics. AlloCell to cell specific So

you're we're max, look persistence, not multi-modality. different what at part at we but the it's -- look C there of as right, includes we looking So pharmacokinetics which you the at described

which So doing, care, we've it's kidney something example. care, for lung not been care for with example, and heart

to organ be this as just So and we it's made there had work therapy. cell there interventions and this. We're we and need if an cell clinical with where partners measuring decisions allogeneic the concentrations is any seeing really that the then in on multi-modality solid is

Sung-Ji Nam

Got so you. much. Thank That sense. makes you

Reginald Seeto

you. Thank

Operator

Yi with Please Wainwright. next with proceed your Our is Chen with H.C. question question.

Boobalan Pachaiyappan

is Hi. I dialing questions. couple Boobalan a have for This in Chen. Yi of

operating need to do one, support think spend So more you in XXXX? much the to first expenses how growth you on

Marcel Konrad

is Marcel. Hi. This

margins. X% with out EBITDA in QX million We an of $XX So had we came revenue. over

go So We And to year, we the there. throughout the we'll business. we the update sustainable continue items line business. grow invest a in as want specific on to expense

Boobalan Pachaiyappan

revenue right, All conservative is the that's the leaning XXXX toward helpful. so much. guidance And side? Thanks

Reginald Seeto

early Hi. beat, do the a Reg. I community think have nephrology and we but think a of lot it's have meet We point, mentioned. It's and like opportunities of Yes. different at do this it's best really the with we history number we time

But also about So we is as year we But the growth. through numbers well. as with I and we to forward more there progresses. insight as have uncertainties think look we've course of good the continued of feel some look seeing this which COVID year, the we'll the

Boobalan Pachaiyappan

from Thank you. me. it That's

Reginald Seeto

Thank you.

Operator

to Ladies for the turn to would question-and-answer call and we I end reached And Reg gentlemen, session. have remarks. of the Seeto closing our back like

Reginald Seeto

to in. again more able And you thank had be XXXX during what listening year bring. about importantly, XXXX. all we're Well, the that and It's great to great will share those really CareDx to excited

which look again, the putting well as safe patients the be year, during a what more we'll course company our forward again. many we continue mission interactions and Thank transplant is is say we'll So of first. and stay you, to but

Operator

This concludes today’s conference.

disconnect you your Thank time. lines may You this for your participation. at

CareDx (CDNA) 25 Feb 212020 Q4 Earnings call transcript