XGN - Earnings call transcript Q2 2020

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Operator

Greetings, and welcome to the Exagen Inc.

Second Quarter 2020 Earnings Call. [Operator Instructions]. I would now like to turn the conference over to your host Mr. Mark Hazeltine, Senior Vice President of Finance & Corporate Development for Exagen Inc. you. Thank

begin. may You

Mark Hazeltine

on thank Kamal Inc., joining the released XXXX. host Chief call. currently June and Ron afternoon's at this President this Chief Rocca, quarter today. Financial morning, XX, and available is release Exagen financial Officer; The company's you morning website us www.exagen.com. and for Executive Early ended, the Adawi, Good results will for Officer

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

and today, new including conference only over the Ron or disclaims with XX-K any Securities information the our any call please of filings business, and and financial any Rocca, the statements, call CEO XX, Form information, of the filings. now otherwise. revise or this For update live with by except to in Exagen The to of Exagen. Commission, to whether other see Exchange description risks broadcast speaks required future because and I intention subsequent will information, events a associated July uncertainties turn provided list and forward-looking our projections XXXX. law or as obligation or our President

Ron Rocca

a for to the from and call world. and XXXX and pandemic disease very care was for thanks chronic serious Thanks continues support that backdrop, COVID-XX the quarter therapeutic private. CTD a a and stickiness everyone AVISE and differential steadily The Mark We challenging very has diagnosis to do continued recovering performed. suffering testing do from and flagship continuum higher enabling circumstances. during that understand of joining has appreciate month. with timely debilitating business, continued been by patients We One optimizing trough one in second With people highlights revenue XX,XXX the Exagen. today. autoimmune whether good to diseases public in all not year and the neither Autoimmune your not need of AVISE million increases was however, every thing, their changed. affect or of millions disease pandemic each are our to a the volumes the U.S. for XX% quarter Exagen. throughout have break successive $X.X for and was April take trend the transform we. good percentage a These intervention. Adopter period given Testing the the test

that meet Our need. AVISE tests and SIMPONI often

June was XXXX. the co-promotion with agreement amended Importantly, in SIMPONI Janssen

XXXX. anti-TNF the we once-per-month, as SIMPONI's is proposition for during our to today's recognize second in very positioned arthritis, report value the our amended the biologic contract quarter, for promotional option unique additional $X.X environment. pleased rheumatoid end well agreement, from that have our are efforts. self-injectable, a an renew to to With year million revenue We for we of

a Military, very to X are also with benefits as makes Humana contractor for in-network care available covered managed all million we front, reimbursement test our East, the a of about agreement AVISE support lives. On which TRICARE excited our

the negotiate announce We with in to to months. country healthcare many continue coming large and plans throughout agreements new the hope

bottomed sequentially the XX% test geographic CTD experienced in curve monthly in AVISE saw for XXXX of and lumpiness The broader and uncertainty from in increases April May, tests April, lending to we COVID-XX resurgence in testing our SIMPONI. driven recovery QX, Although company June. cases have approximately entering irregularities the XX% and volume in by U.S.,

R&D. say is leadership in test, committed few focus remain I'd investing strategic to around rheumatology our within words believe to While position A expanding and on the also key is our this to the key we R&D. a subject testing our We offering of like product growing space.

Foundation about been completed. for excited very difficult blood to fibromyalgia for Innovation of the the test rule-out Proof-of-concept diagnose development addressable with the fibromyalgia. a rule-in promises agreement to a are rights test marketing our disease to be State total test This has Ohio a for first, large market. differentially with and We diagnose

also test are determine risk prognostic We help developing with of patients to in thrombosis a the lupus.

over believe that I Kamal, For planned. the these now are discuss results. given like to ongoing owning new has both We validation studies will us like our would on vision, to call of commanding the our in positioned presence rheumatology financial strengthen the execute to Exagen further and tests, that products make to and turn rheumatology clinical hilltop. well testing franchise

Kamal Adawi

XXXX, following XX% XXXX a test QX our increases CTD approximately million April And in XXXX. line was SIMPONI $X.X due impact XX,XXX we AVISE reduction XX experienced was with QX, a eliminated million by ago, territories, a monthly In $X.X morning, in net loss good volume we baseline. XXXX June of XX,XXX stay-at-home compared at XX% of XXXX were Ron. gross XXXX, saw the reinstating XX% trajectory cash. ordering from cost million were test business improvement are positions, the in business driven very due to revenue with year sequential as July from was reduce XXXX cost-cutting to the XXXX, CTD testing to sales which million provides with we in a $X.X in the of in QX June. which Operating QX everyone. $XX.X us expenses AVISE compared $X.X is how areas by driven activity QX $X.X with reps May Thank margin and compared from million, with for was other QX some QX approximately Total QX testing XXXX XX revenues $X.X XXXX. COVID-XX reach amended XXXX The other and benefited in We to financials. a We testing prescription compared to XXXX QX you, in number in testing XXXX as efforts costs. QX need higher as XX a be frequency million. leaving Initial revenue take in Dx/Rx are $X.X Revenue XXXX. and health three Overall, $XX.X steps positive and orders. revenue care in primarily for positions QX in volumes of leverage and in decline. the million, with and such XXXX pandemic. SIMPONI with good Other was illustration this providers million, million margin T&E compared an to that of from was revenues, co-promotion XX% agreement CTD suggests The was resulting model and our XX% bottom in XXXX AVISE we and volumes gross sales and continue in pleased and as QX offers sales, of indication may year-over-year in direct conserve April XX% a experienced reminder and time. The QX

$XX.X believe uncertainty were well with under we're balance our June cash We any associated to as sheet, of COVID-XX million. cash the Looking equivalents economic and pandemic. capitalized XX, approximately

lack prudent this formal we believe Regarding that caused time to by activity. is in fluctuation offer at visibility COVID-XX it XXXX guidance, a due not the to do of guidance

We will now up for questions. open call the

Operator

from question. Thank of Chris the with comes Please first proceed from line you. [Operator Instructions] Cowen. Our Lin question your

Chris Lin

about that QX, to overall of about it questions. would reasonable growth of is volume But expect to was to as will And return commentary, in Hey, a balance normal good July. for on trends your Based look this that my talked morning. you know be it taking in Thanks XX% be I the comparable appears we right? June, limited?

Ron Rocca

Yeah, good question, Chris.

a know, saw on coming and You it to be daily back and on basis continues volume pre-COVID the a daily levels the it was we approaching basis.

that future daily see others that we'd up, to out, closing, that this we're certain that volume closed so. to we really it stay were to So, the is states Predicting with hard COVID, continues evaluating basis. a are look we see continuing and are and on come as do open and like

lupus even could a is there no Those serious I here which or nephritis important think a It for this, if is to is disease. very point aren't patients is the going away cure closed. lupus, death. city lead

So anticipate, market. a was which we they states solid. right into as we there's of [bolus] these the pre-COVID open And trajectory, patients back to come very back up, our fully get

As January February you recall, XXXX was terrific, terrific. was record, a was

the patients the because But back up no coming looking foresee and until back some the the office. into allow is open patients So and there doctor's and municipalities a from I these this future, of we into go of market have cure. simply do also these local until return wait to think states we'll to

Chris Lin

my to to question. Could things up could bolus return Got help how really, it, the of pent good be, much actually you segue perhaps -- you the next or quantify know, you think that's there a us once normal? customers demand,

Ron Rocca

for we Yeah, half getting out areas telemarketing They're and XX%. normal from physicians to on average lot XX XX because rheumatologists, patient of a patients on of day. pulse community a from heard call is these down some a of by on and going what's that course their in load what anywhere are doing even or there, we the it telehealth and

for return. patients searching bolus, is they seeing can't calls They're that from the areas now local right lot they we're find when in for inbound asking will What a of one. fully just patients, it. So doctors anticipate

the So a this, back of I there. blood patients, markers I come draw, them When one the those that roughly would they often and most AVISE Chris. we for but test know SLE-X. that missing will solution a XX% comment that overlap To with test, to back, diseases is XX our say that is because in the way. with come quantify they're not it's number, demand of you're we're test going exact big only generic CTD those getting lupus is the

and serial you'll blood do every every joined the three patient you other it or by they CTD. testing, do week one as the can lupus was weeks So draw, would diagnosed AVISE basically all recall, back. market, before bring one we test With with

patients these all it's appropriate return. think the do going what's we to when for So test happen

Chris Lin

Got it.

question, co-promotion Okay, and last revenue you QX, this if on right? a gross in year Is it given diagnostics XX% margin quite maybe my pretty exclude for declined flat the believe I seems And -- impressive year-over-year. basis. it's year-over about even that revenue was

how just of sustainability you the about margin help this this could performance So understand result should we think what forward? us drove and going

Kamal Adawi

question. Chris, Thanks the I'll take

You're The revenue margin. was at margin co-promotion. only on driven right. decline costs. lab we cut we the SIMPONI in costs found the million aggressively match cost The gross couldn’t in That XXX% was were to fixed from volume. gross we revenue SIMPONI the in $X.X But the the improvement thing variable the significantly cut of

Chris Lin

Now, we, just are sustainability QX? Okay, should just the about and think -- in how that of there other then performance

Kamal Adawi

-- a got we’ve Yeah,

Chris Lin

ahead. go Sorry,

Kamal Adawi

Yeah, so [move] the our pandemic. lab volume, I going to going to we as spent, that match the continue flex continue to in and was especially through COVID-XX the say we're progress to

Chris Lin

questions. for Thanks it? taking Got my

Ron Rocca

Thanks, Chris.

Operator

Thank you.

question. William your next Blair. Please with proceed comes Our with question Brian from Weinstein

Brian Weinstein

Hey, I for good you it's morning morning. early guys. know an

just co-promotes on questions, kind SIMPONI -- quarter? for, you of of at sort what represented? that the kind $X.X appreciate guys So, curious range sort to potential catch-up of A co-promote forward, is the so million $X.X then couple Because, $X.X was million to could future level think for with negotiations know, end And for then, we'll you getting deal? then of others. quarter, negotiations so the the I we're on on throughout around if doing there there. going comment that But additional million, what do also off coming first was side? that's some payment based the million, you a you $X.X of so SIMPONI, certain anything on the in, early. obviously, a and something it's the of that new going quarters Janssen, right SIMPONI this some like else That there, on a And

Ron Rocca

very lot. is our early And Thanks, impressed Great. The appreciate yes, strictly here. QX. a I that's $X.X as QX impressed well. the J&J And us And it it. was partners for what Brian. performance also it million and

was could that’s think does that you solution home. month for a anti-TNF, absolutely a if take problems good only Because So once today's Again, it It utility. SIMPONI, lot QX of about performance. the have it's and you with COVID. a

happy see that. So to we're

to As The range the cap, which try a think top and doing, disclosed, continuing we're as far agreement And have we end range. everything we will that as is as we're to achieve the bottom that to baseline know, going not bottom. a our is what the which X% of look a XXX,XXX as that. for is can get to we as above you guaranteed, we range, far are we to and have we at

that spectacular have -- making Brian, shows really the which are taken our extension that the anti-TNFs J&J in sure relationship care I appreciate We rheumatology that and us. really is we are out they community The strong, commitment offices. the of their efforts, think we're patients has is with going option, there really to in being

the talks to we strong, continue point, to this together, things can focused should is it be. high do So on driving have we're really about at but that we levels relationship other SIMPONI

Brian Weinstein

have on And of impact reps you should of forward? the cut to the some that things to and better? that sales here. we've kind And this of the on numbers then your term do those back that? outlook you How growth ability get those longer sales that spending, in rehire to does it. critical get your to expect additional is we reps rates expect is to business Got it How of order positions seen? going you do view kind mentioned as level kind that Or

Ron Rocca

that we order we the the Brian. Yeah, and optimize the them of the big to confident talked the to flexed areas company. did the question just thing that one in we And and We did. right here, did in about a we today think performance to We lot needs we I'm flex really I to the fact, flex a FTEs. need headcounts, that, let

term, see say, It frequency to doctors in-house hire COVID, FTEs long does to field their add monitor Going can't the sense and happens we'll to not. we're with make doesn't see let's going continue make sense, do the because they reach as that more practice growing. something state of you a necessary can't the it's your keep or the can't rep we out what if to obviously. -- even in, a get of sales it houses. to But That's

right we're beefed with provider a at a augment up to people get make always and what and as calls, answer used cost had to from find getting continue are doctors decentralized We're efficient that, staff department we've forth. so lot the efficient lot we that it's up now, These a and get you're representatives effective. calls when that forth. doing that least office centralized, internally. very that And because and very you So good it's beef the And do. We've phone a going forth. phone Zoom from a of been sales more to to very so relationship staff, standpoint, it's so time here can attention because

regardless and to telehealth we an your telemarketing your what be question, of staple way COVID, the with may So of but find this value to of to a companies the in the it answer doctors. as communicate future products effective to be happens

Brian Weinstein

other the about thought any maybe implementing Have what along homes your you test guys like phlebotomy kind physician mobile in to for worked of partners diseases? with look able about future to work anybody know, lines and or kind their be And it. with of the Got here. you of, may people to autoimmune lupus

Ron Rocca

quite continue have few do now we we and contracts Yeah, phlebotomy a mobile to those.

phlebotomy way get to doing We find be as hospitals to an contracts effective well. the also with community

can whatever So school look blood that And They themselves. can, blood. if doctors know they draw the it do they how did at draw those often medical We go value doctors the they it remind test, we'll they of and to to takes. see too.

more contract have no state-by-state to national necessary, we'll it But So add or company almost get zip with, level. the even utility to to no mobile problem the on blood we continue proper so us. code code-by-zip There's a really when it's doing if that, phlebotomy. enables to the

to just are We those tests two everybody, at-home also remind capillary tests. have tests, and

methotrexate, your you your capillary patients most But proper we big home. tests. widely HCQ, used are the touch for their for tests patients. for at do our phlebotomy drug It's test, do those CTD, to can your test in can used you Or These measure can So will rheumatology hydroxychloroquine the today. can enable for RA. that with whatever usually we AVISE

Brian Weinstein

reimbursement from now relative Last ASPs? talked in struck this guys the the about the will where And your for me it's, average new one dossier. and range to Can -- that be give in-network. us to I’m nicely us won't give your pricing it but exactly came? deal Great. was you obviously, about be where some accretive and of Can assuming kind and think you this is now test you the the idea Humana some fell on the that I average $XXX about idea you

Ron Rocca

a the to covered Yeah, So is demand right? about this how did got and in-network we're now dossier, and payers. get start, we you really the obviously, start you excited these it get we because through

revealing I'll patients But the We're that you too. to and economic to excited other Humana point the really all are ASP. has key contract value care is, the do that's this dossier each health by study that because a and can and our So the illustrate about that specific -- does TRICARE more negotiations for the test using your ongoing, patients. showed we're what that our on it really let opens does the save actually tests contract money you know not up it upfront. And lot payers,

we're of the higher excited of drive leads, is the continue think definitely So goal Brian. the it brand a It’s first with that And march about used to And excited patients first these patients, many those When you contracts. year, the We like many, contracts. to we’ll few this we're That's but towards just a system. beyond utility this, the these, the That increasing but have, why contract. enabling more of do forward. we rest looking where going we're we see at ASP. one start many on come. also more within it's to be the to

Brian Weinstein

Thank you.

Ron Rocca

Thanks, Brian.

Operator

[Operator proceed Cantor comes question. with of Please with Our you. next Thank a question line Fitzgerald. Instructions] from Mikson Kyle your

Kyle Mikson

guys, the for taking Hey question. thanks

So now are current COVID you Texas, the Thanks. backlog have about those you talk those curious so just your surges areas, Florida? there? on right practices, if but infections flow provide impact patient the just trends some could and now of that markets in or regions about experiencing of Arizona, in talk you you a in color any know soft like could report I their

Ron Rocca

Good Thanks, question. Sure. Kyle.

So many we extremely know we lab. interesting went how we I because is yesterday. orders they a down. And then are on, early saw well, Florida today and what's shut got do here back CLIA

So I and cities are know close. which open

with lot strongholds are the though thing of in roaring, Georgia, lot happened us unwavering. and is, zip a actually What's down. those doing Texas Arizona. So a are then for interesting Those and we that there slowed telehealth they in been codes definitely and affects come as as of Same saw telemarketing doctors and well Florida we've us. back

over again, Those the that using because to you lupus know all everybody as will when stickiness, come want we test, can test our not best has So doctors the tell our markers. AVISE they And but is XX% our I remind adopters, test. patients CTD only to back return. other those it

a a they They to to do testing, test can't you room waiting very but whole comes them go this have a back it's do and patients when difficult it's for -- when So bunch of to more full -- can get waiting well convenient bolus going be back. to to in. for serial

blood of I this come So think real can one back. the well play going it convenience of in bolus all, patients that as draw do to is

a to As be far be -- is Florida little July coming Arizona, monitor trends seeing state, we Georgia does Arizona. as nicely the in go. partially flat, as appears it It because appear in that constantly. back the coming it Texas, and slowdown per it's back. it’s snowbirds We're

say snowbirds this out expectations Sonora Arizona, we’ll do when Quest the agreement coming have come Now, back the else into we to fall high Kyle? for Anything have in Arizona. the Arizona with we

Kyle Mikson

going well curious No, given, trended as of you're mix in you was And I look mean, payer great what the and of color. the in about as I that's pretty that kind helpful. unemployment to just second also know, the etc.? expecting actually year, maybe well and, It's quarter you how rates July how elevated also? But as half throughout it's know,

Ron Rocca

question. a good Yeah,

a So in. patients lot programs we have of if call

can afford We lot enable if a to they on of so a and try to to forth. plan them -- get payment get have and product them the do programs

is paid we we not mechanisms do by we're those The there mix payer as changed. of help up CPT everybody code really lot their hasn't So COBRA covered which get because We patients coming in-network. ends, for have if soon a stack actually, to patients.

paid. remaining how our So consistent. And goes march we contracts, reason ASP don't We we question. payer the of as this to the But mix forward drive going be it has any and we're back year. get wouldn't for part see get of been going do to why the That's the forward. more -- it we earlier

Kyle Mikson

the this I think ASP, think and there's But rates to be on due kind is is TRICARE Humana yeah, TRICARE, kind wondering help then relationship on East, phased of to agreement, impact because the going on it of in your touched business ASP, very that, you know contractor going material as encouraging, expanding coverage in well? Okay. you then the Medicare with so I'm I of you terms that on know, just the also And a on to reimbursement Humana TRICARE the just TRICARE but rest to And book of Humana’s it’s earlier. of new if for coverage? given

Ron Rocca

obviously Humana and to with desire. meetings schedule We we're set the that's do continuing Well, up more. have

have well, contractor their We with well. as as TRICARE meetings West, their payer and

disease those those driving area everybody -- this are We want or could we in can meet of all I all kidney. to heartache to is forward important you lead unmet payers, is pain So, potentially has if range. great that save because these early them. them that removal early, think recall to of such them an to an life lupus this extend And test a need. their do patients such lot a diagnose normal a nephritis correctly deadly treat actually a and can and you you a

important that the So it's is point. now get fact is it's up the done, to dossier that really and and there a to demand the

of expect coverage most these we your fully have negotiations, Getting it have as in-network and as as question to payers contracts. going in we far and increase should we ASP, we these As these get the back as the contracts forward.

that as The going. us always and first confidence point, able the higher have gets most difficult. lot But ASP it more momentum, in as to gives a get actually, you negotiate a few are you it to being tipping

momentum the and it get You have to get started going.

one each these. more as negotiate some and again, we of level we highest little we be contracts desire not bit get a forward, it confidence get the that may we becomes, as at but So the going early

Kyle Mikson

in I then -- one I just And interesting. pipeline. to That's about thanks. the here Okay, more want squeeze

As just that it’s revenue the just recognizing planning you and of when have your few but remind probably timelines for fibromyalgia that? So dossier expect fibro contribution tests I'm yet? we us terms could And the begun just of some out, then from well years in curious.

Ron Rocca

got a important Yeah, It a got end really fibro clinically really rash, disorder this very big got which potentially brain got like in or headache, patient. I deadly lupus, lupus, difficult a is that's us. takes often diagnose. has also One very, patient. understand. disease, I steroids, was the they I steroids, a does clinically, present I to a it'd fog. to hurt like office up patients fatigued, exciting one tired, which rheumatology and differentiate potentially And And appears to for a These is doctor is lupus the disease. chronic The not is take differentiation.

really as smart we difference critical. between pushing fast is those The possible, this timelines, They the the takes community is do but understanding And got here. a Ohio science science terrific. at we're really two State of quality level time. people. So collaboration rheumatologist lot The

have smart CSO people with CMO. of and our incredible We an amount here

doctor it as we'll take On So wrong shop, an that can't studies office. at time, right to a much diagnosis. dossier is, try the but definitive not eat a as going and possible, it's know speed here something's of realize with because get for they payers, in dossier. They economics too to up a they doing hang we around risk these talked as appointments fibro patients not lot, do up a they of the the them, lot to

to lupus to going fibro make forward. have So we think willing we're sure going from we differentiate a participant

as project for as the possible us. quality of important really much as gas as on really, don't a is science. step the long the risk this We'll So we

Kyle Mikson

Okay much, and very Congrats helpful. and for up. again. so Thank leave you a I'll rest follow the

Ron Rocca

Kyle, it. appreciate you, Thank Great. I

Operator

Please with Our BTIG. you. line with Thank next question. [Operator Massaro your of comes Mark question proceed from Instructions]

Mark Massaro

Hey taking my guys, thanks questions. for

the it about to metric what And the the if about Ron, X% on baseline. believe speak historically talked was at you quarter. lowered per can I you I recognizing above some units drove for wasn't, SIMPONI. guess, baseline; think know, You I in in QX? I XX,XXX particular your was congratulations a quarter? know revenue the baseline just success

Ron Rocca

methotrexate the the the the have, I think I'll one that the Yeah, take have is and What outstanding was we representatives success, quality test. the fact drove we last of first.

methotrexate with is So anti-TNFs. used along

package in insert. their So it's actually

think to do financial for anti-TNF, only X% patient, being what and are the at lot the along level that. which I matter. Dx\Rx And we meaningful like a a standpoint that immunocompromised lost other an company, do safer we're a anti-TNF more gross baseline you immunocompromised you're XXX% with think to COVID this the a to that the & infusion can't period. and from can go QX. at patients what want is an is me you this of Johnson very the center it. And So if it's we the able model. is to XX,XXX be margin. that We The has a from think with because it Also, above discuss to baseline engages product home, fact validates methotrexate during the the be looking I standpoint, is think almost realizing bunch in once-a-month It subject a seems Johnson. And doctor I a doctors it alternative, to with relationship it's it's and QX take like important also, really

Mark Massaro

I pipeline helpful. super bigger a of picture to That's question. also wanted sort ask

You advancing Where it's certainly talking as that about partners organ transplant product organs. it’s know, are whether lupus to you damage? maybe you kidneys -- or or about, recognizing vital cause and developing other to organ can damage kidney guys think

Ron Rocca

Yeah, good Mark. question a really

has about a off and the great is cell. to fragment the thing So, active cleaves comes is, CB-CAPs The which covalently thing CX, that complement about that when CX role. and the great it bonds transplants, system to itself, complement the an

our looking at So that I more scientists in interested very of can that. share you with are

lupus markers a product. perhaps to discussions at nephritis have We had look enable to better ongoing stronger

interested area than I divulge we're other in much on our that too an to say broader your So in, that it's way can't radar. a is point.

Mark Massaro

to a think coming know maybe schedule having health question a should then know, the plans me. after commercial dossier. the meetings of Understood, on conversation going with health How final we QX relative that you about I your in submitted plans had commercial But your is for expectations? lot on and QX you how and potentially here?

Ron Rocca

-- of I Yeah, with meetings that. difficult have a a we more set in Zoom up. little lot It's

And systemic correctly know from know with is, erythematosus and a bring burden forward it, we know answers questions You utility, there recognized in we coordinate done, answer meetings. lupus validity, is are It’s really know, the dossier to you healthcare is, of is questions. people to it our a the keep system. early. diagnose know many it, push continuing clinical mind. we the clinical don't those and it. these But One things couple so And economics, have documented. to payers with it, Two problem in and trying There the so a the well it. is patients we doctors to

these diagnosed And get help we So CB-CAPs think about. companies, best discussions lead now, good a so to treated, solutions to normal correctly patients day And want because are the these they life. to that payers we're the the really the what patients. to more help we're the and healthcare as right solution of we based we at can the help think offers that's the end want in a on out there, patients, have position

looking these forward I'm to lot and discussions forward of more how So going about these help having more patients. we discussions a can

Mark Massaro

question you me, roll a off. guys kind know I Last for had of royalty pharma

see off we should benefit this January gross in of When your margins? think I year. of roll was that the benefit it

Kamal Adawi

Yeah, on on Mark. X. and our paid came January expense Royalty was it That XX% royalty Pharma, It off CB-CAPs. to was

before test to January have done come still X across. but is collected any after Now, X, January an expense going

decrease. see So we're to every that amount going quarter,

off coming X the it's anticipate slowly within be months do books. off to XX So completely the it We date. January of

Mark Massaro

guys for Thanks, Understood. question. taking my

Ron Rocca

Mark. you, Thank

Operator

gentlemen, Mr. floor the turn this question-and-answer concludes for Rocca to Thank session. and Ladies I'll back our comments. final any you.

Ron Rocca

time with want happy just thank this for I I way it. do QX very, very Right. to early turned morning, the appreciate morning. We're everybody their out.

keeps have we that have help here think patients even will better. mission patients us and drive, We what doctors And those we enable the to products to focused. assist that's our a that's

time. wonderful thank look to Take discussions future. forward your the for We in a care have and So day. again, you

Operator

you. Thank This concludes today's conference.

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

Exagen (XGN) 28 Jul 202020 Q2 Earnings call transcript