BDSX - Earnings call transcript Q1 2022

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Operator

Hello. Thank you for standing by, and welcome to Biodesix First Quarter 2022 Earnings Conference Call. [Operator Instructions]. I would now like to hand the conference over to Chris Brinzey. Please go ahead.

Chris Brinzey

good and operator, you, morning, everyone. Thank for Biodesix first you joining and us of discussion a for quarter results. today financial Thank XXXX highlights business Executive call the today be Hutton, Leading will Chief Scott Officer. Cowie, be will Officer. joined Robin He Chief by Financial After for the call Q&A. prepared will the we remarks, open available announcement recording be for webcast this will and in detailed audio for today's call. as An call the conference replay also online press release first business issued highlights announcing and quarter a of for results we XXXX. Today, our the press financial release on found be Investor can release the of website. copy of page company the the A Relations Actual those industry. events and of trends, materially or the results may demand projected changing differ from reduced Biodesix result as a of competitive nature market forward-looking and differ performance Such unknown to implications that and from results known risks, other projected. those or and materially uncertainties statements may their involve factors cause actual XXXX, on The Risk in discussed call the filed during as company's annual Form forward-looking including applicable. XX, to report reports elsewhere the XX-Q in are the Form uncertainties, and December well ending other in on discussed on this filed subsequent for as statements risks those Exchange Factors year Securities Commission XXXX, and March XXXX, section with subject the XX-K quarterly XX, on and if

call to factors SEC. I the in would now differ concerning cause to company's to are the Hutton, with over issued the the Scott Officer. filings press Scott? from that information today statements could release greater our forward-looking Additional company's Chief materially in results described detail and Executive turn in like

Scott Hutton

Chris. you, Thank

performance, transform personalized of are the the a call, quarter XX% COVID-XX we of and by million, of earnings reported end of of forward peers, a million time company year-over-year patients significantly revenue unite financial growth. Beginning affected disease and testing which physicians our first which variant, with Like of standard diagnostic reminder, a diagnostic reflects we've rest performance to the revenue care in in last Omicron looking productive patient-centric $X.X and lung to with the to Biodesix and very core Biodesix our with was XXXX. fourth biopharma, our total since XXXX. had short diagnostics. month of of and lung outcomes revenue resulted As $X.X half COVID quarter team mission to and improve In a is impacted the which many an the January the with of practitioners, versus and overall many staying members recover, quarter decrease our February home getting patients the

Omicron performance million. continued $XX our continued higher share per Stepping we talk with in revenue monthly than about color plan guidance $XX.X back sales million a and year do an with comprehensive $XX.X current disease first April of following combined quarter saw believe tests what strong of We're the diagnostic of we us levels XXXX lung core and and giving to wave. future, month to of March, trend pre-pandemic the addressable day moment, highlight produced number confidence suites estimated more to access for this individual about one to we the in total test results for that want business do in lung company. the we lung a market the not began with core market We is of sales the large targeting the diagnostic of most billion. highest diagnostic pleased report to the of to volumes history the While the test March we experienced rebound activities recovery rapid the in our

procedures lung from avoid strategy, to advocacy physicians driven the by the procedures the treatment and are adoption these further on on Nodify global the gain low-risk very CDT testing XXXX, Nodify across pandemic. malignancy high-risk assessment. diagnostic lung standard of change assessment our also early and Nodify tests to blood-based are we've X that nodule The nodules unnecessary X for lung the clinical Nodify post IQlung that strategy proteomic cancer as Nodify they by successfully launch of the realize lung used lung with have invasive prioritize in support for lung Since diagnosis Ongoing with COVID-XX positive This tests, customers and of nodules We the the blood-based to more modules. testing despite care monitoring presented while lung tests risk helping nodule. of Nodify continuum potential lung we challenges risk beginning of validates full lung from experience in risk guidance market feedback a only lung with decision-making assess helps strategy. to XLX, of consists testing which initial

summary, the testing, to Moving offer Adding of with test. ddPCR since and genomic last of turnaround resistance been differentiation test the we're ddPCR launch, by test to are Feedback means X and guidance for This of coverage has XX with RNA our a targeted the to launched any of these both NGS year full complements of the needs. over circulating and on increasing NGS launch DNA the the tests space. Offered rapid test. of within with physician more NGS the GeneStrat-targeted The introducing Medicare with competitive reinforcing months. turnaround tests, a patient time options physicians importance option the in commercial test, available can decisions portfolio blood-based patients and positive IQlung. of We from time GeneStrat of adoption in this already rise test started VeriStrat including treatment payment IQlung X therapeutic the this our hours, and sequencing tumor addressing as while are we and secured. test, incredibly inform individual pleased monitor GeneStrat alterations the flexibility January DNA the proteomic broad fastest In RNA the therapy. test genetic used and GeneStrat mutations in now

future demonstrate the to reinforce critical is and data clinical growth. utility generation factor test our investment in Continued support of and for another

data test. and ORACLE the further efforts of our readout Nodify publication sales will study full for reimbursement support our and XLX We upcoming expect on the

for drive further the ALTITUDE our than providing immune risk cancer for matters our tests to efforts ongoing insights our care turnaround health the our further back these on and of said INSIGHT ourselves test. test immunotherapy strategy, results people on treating and provide cannot We study providers of all pride critical in just our care. this time Additionally, surface forward Nodify XXXX have recurrence patient both beyond. and ability we've Lung in and to and the it products development to more response, begun growth we best-in-class market, updates believe primary improve testing and pipeline for combined testing for when annually scratch kills we the our enough. times to team of study study quickly cancers We've test of patients. We guidance to Biodesix's before IQlung $XX X to BEACON the the and and U.S. the with billion next reiterate look the

we team and for plans, a believe and XXXX critical the our team, portfolio paying sales discussed, first XXXX as our diagnostic thus as in as our previously size with test. team such, line this members further XXXX territories, large the the as We team our with levels to we've greenfield and team we to selling core promoting productivity in from to beyond team as commercial of months. themselves of we the lung doubled opportunity we members. sales in far, X existing continued of to is With long members expand continue sales XX and quarter XX average in our growth will complete coverage in of X another Speaking X experienced on grew in of to added team in increase see

samples. enrollment quarter services first million broad to and receive biopharmaceutical impacting for our positive continue and revenue and quarter, and business. to service the Biodesix's multi-omic in the multimodal reported the our of $X.X Overall, and feedback wave COVID-XX prospective of interest partnerships study half in proprietary AI Diagnostic and learning platform the shipping Cortex Omicron offerings. machine we We Moving reflecting variant of the

explainability identify increasing we and subgroups biologic driving unique or revenue for demand approach different and the different specific confident AI advancements may providing that patient Our growth will service that we'll for from outcomes transparent ongoing to remain clarity offerings. in professionals key Overall, treatment. efforts by require ability mechanisms and our to potential in health care insights provide and see

ensure to Lastly, made and to we've considerable our progress the financial that company's position funds we the objectives. growth execute upon strengthening have resources

to purchase million pay equity for and $XX.X in $XX integrated private diagnostic financial announced also that a pleased to committed facility agreement million, near-term to term addition payments loan the a announce million we flexibility. our extend time of asset placement new a the to milestone March, and to $XX provide revision In we're

the to performance. first Robin Now XXXX quarter it turn let review me over financial Robin? to

Robin Cowie

Scott. you, Thank

First line revenue our quarter our compared offset quarter expected increase by by represented $X.X expectations an X year-over-year to testing. $XX.X in total driven XXXX, an first COVID change decrease revenue million lung for entirely with core of the the tests from and in was of diagnostic million and in

in a not which be As we first to quarter. revenue, repeated expect reminder, the did COVID-XX this significant quarter reflected diagnostic XXXX last testing

quarter was Nodify total volume X,XXX Our primarily of first XXXX. X,XXX test and CDT tests Nodify from volumes versus diagnostic by from was quarter our in $X.X growth core of $X.X revenue tests. million first million the testing long volumes driven tests total The XLX for

of COVID growth As variant. the Omicron in Scott the quarter impacted by latest the referenced, was wave

record Omicron was the XX%. million a saw revenue a first a and quarter XXXX, of it Biopharmaceutical of impact the decreased decrease month rapid million compared and we from recovery in March. to as $X.X Fortunately, services came, in $X.X as quickly

As balance project but samples the as cash. continued up including business and timing projects shipping have to due in quarter versus clinical said, the in on ended the which deferred reflects We the fluctuate the yet the and the contracted pandemic revenue impact trial quarter. recognize not is the quarter of contract $X.X has with and to million in $X.X $X.X ago enrollment we currently million already of on revenue but million first $XX.X several as was testing had this factors, recognized, can collected revenue. to we execution, overall this instance, COVID sheet year complete prospective needed have million

and February. spike January due The first than the XXXX quarter slightly Omicron was anticipated higher in to

of projected as percentage at-home year have shifted that a rapid as drop the to We as COVID off testing. revenue would antigen compared to consistently prior testing our testing

and quarter primarily revenue. testing the The as in drag quarter of of consistent. dynamic mix Gross sequential NGS for a testing quarter the XXXX. to We launch result in continue the ago year revenues, test, margin sequentially first gross COVID-XX in full core GeneStrat Gross creates which due percentage expect gross a throughout first lung stages the have will our XX% the of versus in over quarter sales The get scale. other over of each and on shift to due higher-than-expected COVID higher-margin products margin to margins decline was to gross the XXXX this which of we was as XXXX. in fourth XX% a in tests from improvement launch margin XXXX our decreased initial margins the the lower in margins the remains diagnostic our

by direct the We for in for doubling margin $XX.X increases the the million percentage to expenses, in XXXX. the million over and expense first to a attributable $XX.X loss revenue million The excluding net of from a of loss the the seen and equivalents, sales million a period organization course in XXXX. due compensation. million. increase to and in testing in steadily stock-based quarter compared commercial in in force the with Operating overall driven the in sales Integrated loss the net first XXXX. $XX.X prior cash quarter of expense was expenses a the quarter million The to cost decrease quarter the $XX.X million scheduled and cash from in XXXX of $X.X that growth of the and $X.X same $X.X were payment the in includes year-over-year year. ended noncash total expect of XXXX increase Diagnostics decrease a the to XXXX. as the net quarter compared loss primarily marketing The from gross Operating We first COVID-XX for the increase to of quarter was quarter XXXX in is of

new in XXXX $X.X the million this million raised As renegotiated million payment reducing can $XX April by the required our million SEC. Diagnostic and The approximately today. XXXX, Integrated and of filed in be complete we've The we morning, balance details in documents private placement found respectively. announced with cash schedule, as the March announced the $X.X and payments debt XXXX excludes $XX.X XX, deal

Turning to outlook XXXX. our for

XXXX to previous and $XX.X be and reaffirming between total anticipate our are million. million guidance We $XX.X revenue

months, variety all Over our focusing grow and a revenue in the have add X XXXX funding to taken additional to we course of to the while last of cash access on reduce steps burn, and XXXX. continuing

continue time we measures in focus revenue on of XXXX, that to second will enhancements maintain while the us growth XXXX revenue additional half our focus We to near-term will hires to invest cost XXXX. that on in accelerate will result growth impact projects and In and enable and profitability. savings liquidity that will implementing

over Scott? let back Scott. Now me turn to it

Scott Hutton

Robin. you, Thank

clinical patients through the to us for fronts. personalized practices, lung tests their way progress recurrence to and continuum research, care. the through positively to lives lives. for two, to a culture, With heard, integrate extremely In three, steadfast reinforce commitment closing, to clinical vision Biodesix turn improve So grow new over patient biopharmaceutical for to busy The discover to physician and proud explainability and the it's demonstrate thank operator I the five, I'm development Biodesix remains company, our test; dedication six, results; the team of develop development, One providing needs like into trials as as their just immune you've Biodesix impact four, companion drug expand grow of in conduct of our a our the and and performance trusted would around that, and like Biodesix teammates of collective the on and quarter we commitment the of testing of response XXXX. diagnostics. productive all revolves disease; numerous risk and AI primary to: for mission, call all the and in daily with I studies will questions. lung team testing Biodesix impacted multiple which patients' by real-world partnerships been lead test diagnostic our patient, continue aid a excited one, test; one all and contributions transparency; to and

Operator

[Operator Instructions].

question comes Weinstein William Blair. Brian Our from with first

Brian Weinstein

couple for a Just me.

trends better were a April said you First, than record March.

of we how about record are a better provide that like looked kind as trajectory get is so But a can So there obviously, here? April well. of of in us that anything terms you recovering can what things that idea sort quickly

Scott Hutton

Brian, for thanks Yes. question. the

about gives on really good grow as of pre-COVID team, access growth, diagnosis we a kind critically We'll access, really physicians we focusing As feel where increased to don't to know get prospects to continued we've significant more numbers to us great on We deemed cancers, excited we're which to what and greater and as the interest feel And projecting important. ramp. earnings monthly But early we get down of importantly, continued we're forward. is want we continue stated, clarity the detection going as sales pretty of give street most feet next on with if and at. obviously, we back there's the call.

Brian Weinstein

it. Got

just want them Speaking with all team tests the where about sales the how they're remind can team, time? on spending growth docs? us us volume? the the some force here of multiple is What sales on comp here? Just incenting equal? selling. you focused in that you Are being you about you're plan kind Is you idea is and how focused give their Are deployed

Scott Hutton

Yes. question, Great Brian.

given where focused getting and is really individual given plan into matters is that accounts. on but on growth, the specifics We that's haven't year, any volume, comp of it most

portfolio. more It sales ordering physicians the significant that's portfolio to is then approach, but get ordering. both we the of every want new entire accounts really us products. want on-market we right, each the kind equally. visit. gives being sell lung, with And continuum a it focused company X about once with or for account out an an tests, diagnostic gives land value. reward at an ability think expansion, progresses account, account, goal lung going of And the that we on providing in the volume compensate only we point advantage across us we professionals our patient can land-and-expand getting additional provide get we we products and and Again, growth and to that be of compensate We there begin deploy through to that type is as once And so insights care, ultimately to that trusted provider our that clinical touch lung to a cancer

Brian Weinstein

on of call them guidance give different what points? in you two kind And the pulmonology oncology versus do

Scott Hutton

that's pulmonology. market exists with know for us. Yes. start We traditionally that, that We largest opportunity Nodify with the

you We likelihood also we go positive that of physicians if know cancer, and a the can the earlier can importantly, diagnose higher help the most earlier, detect right, outcome.

And there. integrated progresses through there's patient you then an handoffs. if as start -- a we that So numerous think of continuum, practice as

Our And sales to to team. continued professionals trial. liaison answer in adding every a X every going between the utilizing those grow clinical X the and difference call able build guided nuances those referenced come points, we've medical relationships. highlighted we've professional not expand understand clinical and medical to or and in and past, specialists. question the We've, team are to and also affairs single science in to We're be expect sales oncology our

So Is that that. that we'll have through helpful, specialists support Brian? them

Brian Weinstein

we you burn strengthening be Robin, you a months balance were, and than the -- be overall, specific that good would How that just that. kind you guidance you, think heard more measures about cost position I on saving appreciate cash that's should any ago, then, on the see. in And 'XX. I today did just what And give I impacting we should of well, thinking you obviously, how any work for and of And the is. can I this have guys it second burn Yes, sheet be to year? about couple those be done for a hear are? all don't 'XX about better Can the half much about of talk year? you you thinking

Robin Cowie

operating Sure. drive or We're near-term really that revenue. near-term focusing expense projects projects our

anticipate departments So the commercial frankly, some add opportunistically the support -- we'd organization and marketing sales so as as that expect see to and year, to to increase in expense our the do sales volumes. we and increased associated as across Scott continuing we stated, marketing in sales and

increase our and course we year the as XXXX, and our across are over of into we driving XXXX can. drop to the we XXXX. on As revenues really as expect focused quickly to profitability off burn And into

Brian Weinstein

follow it, with and the All guys. appreciate We'll call you questions add more up but that, detailed Okay. I right. follow-up on on some

Operator

Our next Mikson Kyle question comes Canaccord. from from

Kyle Mikson

helpful. grew for ASP be year-over-year talk that gave basically And test is you was just this think volume looks a about that core than the thanks going it guess, wondering and you're It the comp. I providing nice to volume then could and providing So trends. to faster year-over-year solely like decreased. was first I I you the that's you wondering I'm metric I -- revenue. test. NGS it if that just don't the provided forward. I if wondering to first, that due was if going have seems lung quarter

Robin Cowie

Yes.

NGS So just it's to launching. due part test in the

heavily but really but due off starting also others, CDT. on Medicare, working the so with to And

Nodify test. ASPs very ASP. status very you pleased the pending test primarily by drag that as CDT overall not growth CDT and the volume Medicare consistent. revenue are know, was for we in that coverage down product, really And driven XLX Nodify yet So been overall does growth we our But have as our CDT by Nodify do Nodify have

milestone, have see we Medicare there. that jump once a So you'll

Kyle Mikson

maybe that on down the then want I being start-up was you costs, out and quarter. guess, the going this to little as is cash gross on down things -- it like helpful. better. COVID. than the some dragged actually maybe could that bit And things a little like just that rather in to rate or just like that Okay. Is on overperformance, COVID a And margins, margin, that guess, quarter that's do weaker and just can second that, say, is it X question That I'm It then costs beyond? start-up I just bit you exactly? like NGS return first understand or called just and good margins reimbursement systemic I with too. startup. it safe dragging why to sounds commentary assume like actually is softer be the to have know would those whole what I mean on forward kind more like factors: I dial level on you wondering and Or the I the of XQ expect, a was

Robin Cowie

questions. So great

is it NGS, start-up costs. really the With

running particularly obviously, So complete are there's NGS plates, certain per number with your of you for a And of lot have samples if sample fixed costs, higher. technologies plate. a don't cost per

I So anticipate, in ramp and the We it margin, NGS making to take would great but a ramp as little bit at on to continuing test we're that new growth. get and to us that us to that will our for progress -- really are test up with that, biggest we second us would to gross quarter was expect -- number, NGS, start-up. but close for as looking drag

little quarter So quarter the pretty second the from a perspective, I would than close. maybe is less fourth that gross margin but anticipate a

Kyle Mikson

as Scott, And well. Perfect. right. just And few more a All in could for you chime maybe, me.

And continuum marketplace? commentary at I given like for main that market you perspective? in in the given one the year GeneStrat the like kind a feedback point. around marketplace. And of on competitive in revisit its from test NGS, to test like it's the key a launch your similar wanted differentiating original this the the by the as focused been of just factors. around been the differentiation on What's So multiple past, just basically the you positioning, do X/X the stand called turnaround in heading products of testing of was time the out questions and into role competitive the

Scott Hutton

Definitely, ability And their our seeing or turnaround commentary are receiving others is, turnaround positive number do the trust accounts. guys that are wow, that? to be We're question. verifying of doing this additional Yes. right, Great can't finding a utilized actually talked been the has the physicians And times said What our We're cancer. weren't But Thanks, lung positive. always across in lot been multiple that, are It's we're Kyle. consistent why cancer We've turnaround types. Right physicians assumptions. are We to approach. to still about we've focus a are time. that see test feedback on verify having we with prior current different? commentary today starting launch the inquiries. of kind previous the times majority utilizing And getting we acceptable. now, traction of test that. you those that of receive on

said, so and what a really you're about to of a done it little you're we a professional door be those but our can exactly stand points. professional a can that's critical knock made only to portfolio We When only clinical today, products, you broadest time you able it. Biodesix we at And on has more in feel of insights good has going the to products adding with multiple sales behind provide which portfolio you make come the the sales commitment robust. not product that it and

we're and our future. what that launch product more think seeing the in we're But now, I about recent is. much trajectory follow growth we still what excited we're will you very So this to there, right add how hearing, think to that highlighted Kyle,

Kyle Mikson

a I assume year-over-year it looks growth Perfect. doing impressive. XX% the that. appreciate obviously right, the I'm guide guidance. business, in to I If like just the could over to It's question. you final ask continues If core reaffirm great well math the

growth could And performance objective Omicron. do robust was out much over as any just and XQ meet ask cetera Your next have how like sales if you be kind obviously I order specific I great that et if growth targets your in tempered would to maybe that XX, call years, months? of to well. plans stated to future increase in by wanted the that XX, like force similarly you

Scott Hutton

force, adding time and much imagine, dividing onboarding and as have stated or a we're cutting to where continue It's to very double time We're or bit not that. where of question. reps, the stated haven't now to numbers that have the into we is to rep can or that We take prior how and about we sales a expanding strive I sales longer, it new we you get as foothold, really going about. What great and Kyle. strongly territories got quickly over anyone expand traction we've We're that size to to sales little and a blindly force. their good XX and be focused no we're experienced the really least we they contribution productivity seen surprise feel last experience territories can Thanks, we earlier, is Yes. months they mindful state had at scale the going coverage, can more about some ramp quickly.

stated quarter, quarters, X we X So the first we was for us, where really the to X. X. didn't noticed you we may This over last have added

we that tempering that we're to get certain so And that can make return.

through that to So we'll progress update you know we the X sales can professional, months. year. when we to take it continue We right said, as like you a now add X

this to that really year. knowing half of of we happen we in expense, will return be want next year, the second the if expand that mindful So

that know best in And talent, prepandemic. out quality access thing really is we we it that they're level knocking growth. we we're the important And about competitively, gaining the which most on about the excited sales bring So and that again, of highest team. talent doors didn't is have the Biodesix

Operator

question Cowen. next with comes Masucci Our from Max

Max Masucci

ORACLE for it's could any it's this know hear And if with or we be when other It XXXX great sneak great consultants, really prudent your members more update see you had to guideline summer next in the, to sights point, potential it see more guideline out later or of publication to I largely to hit. the final be hands call hear guideline you've whether but NCCN have it, sense you frame. the interactions So potential on inclusion advocacy a NCCN our would if would set us of at recent NCCN into this for groups. time

Scott Hutton

publisher, out to you But to goal year. our Max, to we stand feedback as that timely said, out in call. soon this with a hands our potential receive welcome to for as the we where as date. feel Yes, we Thanks of possible. ensure ORACLE is to out fashion review about can the Yes, we Like obviously, control we that times. do published everything good much from of the and and we're that have that And to is respond get question. of going

come it as earnings with that. by really where we'll more next think on got So be guidelines, when referenced. all and this comes to able we guidelines you've to published. to guidance you that that's and it call, groups at space, know on greater in to expect clarity we NCCN, I provide the really When give different X Hopefully, be

the are then which And guidelines. Society. the CHEST you have ACCP, have You Fleischner

we've things is of cadence watched the the of One updates.

related more pandemic. they really the So on if And guidelines throughout COVID. not they the did, CHEST components we're to really mindful that have pulmonary updated the focused ACCP or much

guidance. We X frequently. had position dialogue. So gaining similarly, to And can and The represent see of weeks like there. just help to and updates Foundation a that NCCN, put a a of we some company great putting about feel that diagnostics initiate we've done we're ourselves job good be ago, a lot those position a update inclusion in excited blood-based ACCP eager they ourselves more Clinic Cleveland we've good into think in guidelines. meeting

decisions meeting attendees really are many We to at able those answering and of haven't we and space, luminaries reason X their to imagine, we've out years. in of update physicians is believe that critical As interactions questions multiple input. involved in come in were additional presentations had you that the face-to-face ongoing pandemic, the discussions. this as making be nearly we can that The mindful giving that's we some got are

XXXX. not remember, CHEST is been Just in-person as and reminder, There an to a CHEST. into since has tied meeting ACCP

we've that without has Nodify all with essence, in-person in having done occurred So meetings.

on that question, catch we're and updating we're we we've read of start. where great We've it's or we a ourselves in put to not to Max? something getting a Is helpful, that inquiries. And So interaction, a and had think Max face-to-face position. can interest a that physicians is can focused done again, great everything off they up, lot good hoping and

Max Masucci

collaboration appreciate best. Yes. the you wins I are me or to to offerings that A Scott. here that, -- point for that specific dedicating That's where in it would hear. drive a the be the in applications, then biopharma sort XXXX, specific towards services would to had Biodesix you final any types if or biopharma are helpful be customer very curious what to fitting offerings resources new great wins see services you year? biopharma expect capabilities summary. of you one biopharma And there this Are current contract

Scott Hutton

they're clinical they changed of come a we're focused spending ones with their time good kicking thing kind early, What still dialogue. what It's pandemic, off? Right The continue that they has question. and Max. they a out trials right? Where new on, starting? assessing are the that money? Thanks, spend they the are but pleased one now, areas time energy, Yes. back really biopharma of are really is As we it's to

that one approach of is is we're having translate differentiate and of the One the differentiate not means think us. a really things it said, breadth you in that technology. well, single a I to one there's the you like -- as simple couple offering, portfolio multi-omic thing multimodal form wed platform a

with as the And the going NGS-based questions and about months seeing immune the on We're on genomically. space. We've a no enter to going lot ask of ddPCR proteomics. they're more system. comes questions. starting think out What's over on patient's players longer lot really questions so XX It's biopharma to what's the pandemic, last XX those just a proteomic of seen the I

commercialized that X that, early, done to really, a we've as at one can questions you LDTs are how of proteomic-based, so And done getting how of still scale it's only lot others the as why we're companies it but we've can't. that's company, not and imagine if only the

continues interest area the increase. So extreme and an that's to one of dialogue

learning underappreciated machine Biodesix going back something and is think that in to that's is I I think AI mid-XXXXs. the in that and other we about were really the

and over So we've with machine got experience XX learning. to years' XX AI

We is continue differentiator, a right? tests. do lot biopharma Cortex very a getting to of discover and proprietary assays to Our utilize promising. to it from new We're that's interest Diagnostic and that,

seeing The state proteomic we've and other a level, we focusing on AI component of that peaks we're really that is you call that seen. And explainability. never on may to started pleased have seen proteins what that we're we've

the actually with and it disclosing and able hope that We've And on I'll and plan highlight we exact and an and give we VeriStrat quarters that how proteins specific but in so test. our example. coming means translate, months can measure the to demonstrate what here been

And able to see. some is out. be so to rolling different of do some significantly and of peers than we're That are that going what information our

them as Max, can So leverage starting you they can it see conversations are when proteins, to biopharma, to targets we those And imagine, want gives individual that. expand. and those

in we're the number as tremendous coming us biopharma negotiating that contract the growth disappointed number with under biopharma currently helpful, the we're months we see conversations, as Is front, in So of number where gives the dollars that date, we'll are ongoing of hope of and the Max? great agreements much that quarters. on and to

Max Masucci

great. That's

Operator

Instructions]. [Operator

question comes Tejas next Our Morgan Savant with from Stanley.

Unidentified Analyst

And for Nodify a this year? on on Neil is for your us This the follow-up on then you CDT that. Tejas. remind on expectations quick reimbursement Could timing

Robin Cowie

Yes.

in would start see you from the will Medicare to continue more payments have for half. as some we update CDT confident that remain to anticipate and later conversations in with our We second half, but we great MAC. have Nodify second I the we'll here

Unidentified Analyst

improvement additional the cadence increasing expectations in you the quarter the call, the year touched volumes reimbursement potential know quarter? on and I through how any of on Robin, gross the play And might color but second fourth margin back GeneStrat towards your in this through earlier the and half

Robin Cowie

to from us improvement, Sure, quarter quarter volumes, coverage second Nodify close steady sort getting absolutely. new improvement of towards test good but first Adding pretty to in would CDT under tests XXXX, and that stronger range. is the NGS prior mark, still where expect into see that expect for some XX% were I us and quarter. I in into to launch back third which XX% of up to get we

Unidentified Analyst

That's very helpful.

any delays the you're And ongoing the sample pressures biopharma the shipment carrying business? that seeing other through side, beyond supply so on chain or pricing

Robin Cowie

disruptions a to team, Supply had and has ensure they chain have has seeing not shipping that rising disruptions, to that very have and I've no a diligently times At costs. formed the the I'm supply beginning rising any business happy before. everyone of like it and okay. chain we say been continued. We, about are of that, impact else, inflation worked and we and COVID, few talked costs

travel, shipping everybody in with. else So dealing increases just is what supplies, just

and supply chain. in So point, that see see do we reflected that a and cost you goods, from overall of at in supply nothing OpEx, this disrupting travel chain, but

Unidentified Analyst

And one I'm major during this sure if anticipate we should ASCO? last prepared me. not for any updates remarks, missed Apologies, but I the at

Scott Hutton

We don't major readout. Neil. Yes. a have question, Great

did. ASCO pandemic most we've That INSIGHT our study clinical as an slowed the and as kind throughout interim trials studies analysis. study recall, targeted you'll If historically, of enrollment

right now X,XXX about we're And patients. at so

was enrollment recall, may you the As X,XXX patients. target

study presence hopefully this Yet on looking year. reporting have significant or ASCO So and we're at we NGS the to out that, X,XXX will test we enrolled. prior at a out the because ASCO actually next patients closing the launched

ASCO presence or year, recall, presence have a may both So historically commercial heavy. as at footprint you sales we'll there. biopharma biopharma us large This for and was

we're those conversations. excited start So to

portfolio looking and ASCO and oncologists. it is in-person Another for to first we'll medical way at able is highlight meeting tests be the of promote pulmonologists our of full where

without were And we think able And that's so disruption time was opportunity. the we XXXX. a last great this again, to do

opportunities in-person meeting we seen and highlighted I how response. is us. what VeriStrat our AI incorporate we're what both for going have to into important explainability critically we're of recurrence end discuss primary hope the and and at we've to to pipeline the what with So here May of products, risk those front, also doing we're additional -- immune on done that learnings

presence questions. big a we going So And to forward, increase ASCO to will we're Great expecting at ASCO. meeting. be our continue think

Operator

today's this at any showing questions further you Thank not I'm time. conference This concludes participating. call. And for

You may now disconnect.

Biodesix (BDSX) 11 May 222022 Q1 Earnings call transcript