- Earnings call transcript Q3 2022

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Operator

Good day! And thank you for standing by. Welcome to the Biodesix, Third Quarter 2022 Earnings Conference Call. At this time all participants are in a listen-only mode. After the speakers presentation there will be a question-and-answer session. [Operator Instructions]. today’s being that advised be conference recorded. is Please turn over to would now speaker conference to like Brinzey. I your the today, Chris

Chris Brinzey

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

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

Scott Hutton

Chris. you, Thank

mission and comprehensive continuum cancer mission-driven personalized of support reminder, hard improve a worked a a across making clinical biopharma Biodesix test physicians, one suites of of unite diagnostic have precision lung with of the transform is most As the to patients, we At company Biodesix diagnostic outcomes decision to patient-centric, care. the build standard diagnostics. to lung with disease to and care

CDT lung Our guidance a risk two strategy, nodules of the lung are by physicians Nodify lung lung with with used proteomic to core IQ the monitoring treatment portfolio diagnosis, and Nodify Nodify testing XLX, testing the lung diagnostic of blood-based lung and risk post assessment cancer ranges to nodule. testing of of from test. consists malignancy Nodify strategy. assess initial which

five cancer our Medicare diagnostic the on rise company believe diagnostic tests portfolio mutations, coverage. All have tests IQ NGS are we tests strategy genomic the these are Offered blood our inform tests, of lung testing as therapy. to that by VeriStrat test based core in five focused strategy, only are resistance of while on-market on covered includes test. monitor used the and and lung portfolio lung options three patients we proteomic of Medicare, testing treatment with IQ decisions lung Our GeneStrat-ddPCR-targeted testing three GeneStrat the are test, and all the for the genomic within

pre-pandemic growth trends, XXXX I'm Turning the and momentum record core we diagnostic growth core that again of lung and to which to highlighted total of for of These was Overall, the that volume of diagnostic business QX another the on sales potential driven quarter lung access by quarter has over in year-over-year our began excited those core with quarter XXXX of revenue third reflecting teams a revenue built strong and focusing results, quarter patients recent in a growth and diagnostic growth upon XXX% represents positive XX% revenue as from million, pre-COVID. had growth announce the revenue lung well in been diagnostic that strong COVID part includes that This levels, $XX.X our care at first second we million, true largely end by which very of period testing impact. finished was returning physicians free $X.X as were lung to test. priority this. really

that growth believe In year and terms momentum quarter. through growth XXXX over the of of XX% end testing carry the confident volumes, represents of the We're third beyond. to and this over will this last and quarter XX%

CDT pre-pandemic Nodify activity reimbursement continuing In of our had Medicare nodule all that from to quarter, returning addition impact across began tailwind the test, to immediate levels, our see which we CDT expand also to announced efforts on positive we're an covering positive our to lung sales impact revenue. tests. from Nodify Last

XXXX. consisting health largest This use over X five Affairs covering of contract health test another of in a Medicare Centers. to a drive veterans, to important XX% Veteran coverage beyond VA our through our diagnostic our facilities, compared of population. teams into October quarter in and will of all and expand XXXX Health aligning this XXX,XXX System adoption the the cancer U.S. care strategy segment this milestone be of the and core Schedule face on significant be higher that with of lung test signing Supply elevated efforts Federal we care and announced Military expands covers We the Medical and the XXXX veterans Department to a reimbursement system, continued the fourth which for effort risk with Contract of commercial lung to in pleased of in country's We're an affairs developing likelihood million medical improve general to and the well coordinating to

expect continue resources further high We in we're We quarters. markets similar a penetrate strategic focus additional have including months agreements. all this the that progress large reimbursement the third and on initiatives with coming to on contract, system VA say while to to value, through updates making and party front target primary payer securing dedicate can to confidently healthcare integrations,

our in of testing other data with a reinforce Chest to risk This as environment. diagnostic also growth drive We American patients continue support nodules. sign real collaborations At and testing lung the teams meeting, to demonstrate reinforced of stratify the strategy, and invasive from utility and presentations, of two new our to further and annual to to strategy unnecessary analysis care our in nodules testing enables suite. with the performance benign presented entire misclassifying data world XXXX data, meaningful as that core College generation well subgroup procedures Physicians study the of without Nodify adoption that we notified physicians better clinical evaluated invest a recent of looking Oracle along and avoid of test, youth lung the lung

and full of our readout reimbursement and study upcoming expect further We the publication efforts. the Oracle data sales to support

decision predictive immune the is proprietary recently demonstrated when our International for presented overall data to is Meeting PD-LX was the the for immunotherapy, of likely blood-based VeriStrat immune that inhibitors. Lung of beyond role Association shows those has at conducted data survival free and negative World a process. making profiling for This in or know Lung that We patients proteomic who testing also Study potential alone, test checkpoint treated Cancer we additional believe in respond and retrospective low a play test the VeriStrat VeriStrat PD-LX by in identify study with Northwestern We July. to and better need testing University analysis evaluating XXXX the will to survival progression this there this

multiple as minimal this, study and recurrence, updates testing response immune IQ lung our studies efforts other ongoing altitude have residual clinical the of for insight forward and our further of and our further look strategy, disease development studies being test. Nodify Beyond our of conducted primary on testing such to providing risk study we the we lung strategy

and to the to continue to business, in challenges out compared by robust logistics Moving was we to originally backlog a XXXX second timelines. revenue bio-pharmaceutical studies. reported partnership and caused our of of quarter, maintain continues driven quarter flat retrospective which and service we delays prospective to of and our slower Yet, shipments that have expected $XXX,XXX sample the rebound for a reflect us push

have academic and different unique to outcomes. to approach different of that and can and ability We to of biological patients. more before than with deadliest broad a provide enough, testing in aforementioned are critical XXXX matters opportunity AI and and ongoing improve quickly expect begun team insights Biodesix’s annually remain our comprehensive to research results what billion tests clarity the beyond. tests, as and the cannot and specific three we to cancer the drive revenue reiterated coverage to these patient providing help of develop healthcare we've all treating combined, and sample commercialize and by Medicare said from pride cancers that driving it products best-in-class the solutions back believe efforts prostate subgroups delays continuum patient and for and we in growth colon cancer. suite test offer Our ourselves healthcare a tests discover, U.S. identify people and and times breast, We transparent market and diagnostic and the outcomes volume we of logistical professionals revenue require business bio-pharmaceutical Time turnaround care of recover a challenges. treatment. confident teams to may range just provides professionals advancements insights this shipment see all the and scratch the With the for We've teams, lung on continued kills and $XX surface the and this care, when growth key the believe mechanisms, or of ability explainability remainder with ability we for and to next to both across

Now, let quarter Robin. over financial review performance. to me third Robin it XXXX turn the to

Robin Harper Cowie

and total Most revenue very lung lung of We quarter driven tests third revenue of approximately X,XXX our the diagnostic revenue versus from million third were by total revenue quarter third total over XX% an growth of volumes core growth growth was by the XXX% our our compared the Biopharmaceutical decrease X.X approximately importantly, $XX.X in million from with well and quarter to the XXXX. This growth The XX% million test. GeneStrat revenue the as with third record volume growth of Scott. Thanks, volume driven the of five represents was over X,XXX lung of to for for volume $X.X increase quarter XXXX, from quarter. test compared test of million XX% notified recent million tests core XX%. $X.X this in lung volumes of diagnostic of diagnostic launch was million XXXX XXXX with of last $X.X $X.X as in a third of pleased primarily testing, the and revenue and of XX%. quarter the NGS services

As the the testing nor business State project with COVID quarter, with disclosure in the contracted, increase significant in quarter and revenue, on continued or we is modeled as approximately including of third of deferred due to this can collected of the has complete the XXXX. testing COVID million this in shipping as last or projects as testing the with which not recognize September to $X.X trial contract recognized clinical and currently of to samples pandemic in revenue. several execution, testing from the contract versus August fluctuate to quarter in revenue is $X.X million fourth due reminder, needed a had factors, our sheet balance contribute Consistent impact should quarter including up continue ended beyond. but third $XXX,XXX of on no timelines and instance cash. quarter that yet revenue this the was into prospective timing in XXXX, extension reflects to Colorado. but already be additional the million expired not have $X.X XXXX the revenue an We for

core in the we a decline margin and revenue performing meaningful COVID We XXXX This projected in was has test in third and third testing significantly. XX% that margin versus our the an of diagnostic longer volumes. continued our the improvement as of the which negatively accounted and percentage margin Nodify the impacted XXX consistently growth points. trend of in would are of of second The quarter majority no quarterly growth inventory Growth quarter wind quarter reserve, Medicare XXXX basis pertains coverage reduction testing margin of lung for primarily percentage was XXXX. XX% a business have operation XX% result in of was the by test. receiving COVID for CDT and down testing approximately The to a

marketing We the over the CDT expect margin benefit expenses, continue for Overall a growth growth strategic including partially driven testing. of tests, in compared dedicated result general The excluding third million improvements time, growth, quarter operating year-over-year research development the increase administrative by as XXXX, XXXX. in percentage in expense, of factors, the the in sales the was coverage to by test ramp in and and cost our primarily of million several reductions $XX.X Nodify of overall the expense. offset in NGS COVID to sales $XX.X seen expenses same reimbursement direct were to of Medicare and and increase increases period to and for GeneStrat decrease in quarter as expenses

the to XXXX reduced administrative net million $XX.X XXXX. to operating overall million liquidity. to as XXXX. and operating of representatives a in loss by million a to sales as a the third the $XXX,XXX offset XXXX loss during maintaining quarter and third stock above, increase discipline for payments for is in reduction $XX.X reinforcement We which and and approach, their third related to ended million third expenditures cost the activities We burn operating Forgiveness increased in in equivalents in our of net improvements our $X.X for the gain our million a sales Loan compared following quarter subject quarter to in to substantial expenses previous compensation end quarter research of in fourth $X.X for quarter quarter related XXXX cash $X.X improvements The in approximately of reduction a of equivalents in After of key that the average approximately for new we issuances partially includes The non-cash and cash to to grew under quarter focus consideration, into the principal previous from for X% with we general forgiveness deploy small quarter loss Administration compared the $XXX,XXX Operating second cash proceeds the total $X.X for second XXXX. leasehold repayment the expense expense, are $XX.X our quarter net over expense quarters of for cost attributable and on in efficiency the the expenses $X.X XXXX, million quarter or XXXX. Program non-financing the at an of all the and the compared and was loan million, the the and facility, a reduction XXXX. disciplined was unrestricted quarter, was our of the the million, million number unrestricted while on of during of equity million tenant sales compared capital marketing, taking of cash and extinguishment $X.X versus contingent development and net equity which includes loss consideration third components: million $X.X interest million $XX.X items in from business decrease primarily and cash third quarter facilities, as to recorded reimbursement continued $X.X

raising with as cash tightly strong our we additional balance sheet, to management. control is diligently well to along and capital as a and liquidity expenses continue Our strengthen priority top work

in while We projects to measures investing focus XXXX. and revenue term that that savings on in to cost new result hires will near additional continue growth, continuing drive impact will

Lincoln million thirty September available underlying remaining each under of $XX.X of to applicable at-the-market limitations share of facility, the up to Capital facility company under As had contracts. approximately the $XX.X issuances capacity the and the million XXXX, subject our for Park

disclosed Turning guidance high revenue XXXX million outlook at its million. the expects to total $XX.X previously of end our for to XXXX, of company to for the be $XX.X

COVID-XX Our growth continued fourth in testing. guidance contemplates the diagnostics quarter core biopharma lung revenue services minimal and our and within

turn let Now, over Scott. me it to Scott.

Scott Hutton

continued two of to like pandemic, vision double of two, to teammates Thank with which our lives. supportive reimbursement previously Number post diagnostic all we six margins with disclosed in months the term would focus investment over by our one, thank for have In operator have data. of for doing, the we pandemic. clinical With Biodesixmission, a core so at I their digit I'll are gross with to and disciplined a in and you, versus the culture, tests and our on a to impact Biodesix testing themselves all focused closing, number continue our daily in four, that, lung end belief driven continue the four now revolves scaling we drivers positively to our the contributions for three on-market the to Robin. cost which and reimbursement; body the revenue established near and we sales growing questions. trajectory are around months for team, of improve to paying lung In Number dedication call expanding approach. which patient's collective commitment growth three, turn strong

Operator

Thank you. [Operator Instructions].

Blair. from come will Brackmann from question first William Andrew Our

line Your open. is

Andrew Brackmann

to sort Robin! for in blocks building seeing thoughts the where can maybe year. Scott! around Thanks. and that share considering recognizing portfolio, and momentum any some you're modeling the next underlying Thanks maybe sort are Good we we and that should also of you the lung revenue in be of here the morning. of Hi taking start for Maybe, just Hi questions. just calendar the ’XX

Scott Hutton

and Yeah, great Thanks good everyone. morning Andrew question.

showed podium critical in of presentations, single which We at lot of interest. showing again peer-to-peer that the with come College Biodesix had three Chest XXXX. a reason conference physician been was I've And American for so that that since is with, leave of and training was Physicians we CHEST, Annual a with we to history. Meeting, multiple I've of the person spoken said October not it out As back was that those our events the we in strongest

and so point you this remote kind when educating our empowering we and order look of really to likelihood QX connecting prepare really shared for growth term we've near with for term, higher recently. XXXX, virtually, and physicians, disclosed start we The we've have a So our cancer. VA significant where as Longer announcements is informing, an developing driver. utilize a is opportunity think as some so them until veterans’ to community, that at and that's up the they of progress population a unfortunately done really enriched really test, of we've or through of

make a can So positive we impact know and there those think we numbers significant. are we

with disclosed guiding partnership that Nodify into Those and company their another if opportunity, where and testing. we've big integrating another population collaboration appropriate you and it and the significant. Additionally, so software two think lung directing is got that's you've to testing orchestrator Philips, about order software are the notified to people

population, physicians we these out payers to positively and really into go appropriate empowering shifting well you'll in from focus when we're really publishing strong more data, impact real as tests look disclosed patients the here environment start Andrew We us the world XXXX. months, but also to few and and have when early, that to we see continue information in in demonstrating and progressed those forward coming a perform haven't that and private can others works we so with exceptionally providing and weeks updates to we'll a

Andrew Brackmann

sort Supply or around you're could follow that great. in of of And there I particular Anything if Okay, can what mechanics efforts Federal the sort utilization then just us contract. up with that's of to doing the contract on guys. Thank it VA. as specific you the and relates maybe tell to drive anything

Scott Hutton

Saturday. – schedule a shared live that’s that the you that the into Yeah, XXth CHEST. fee on went we know and the of was Monday We that so prior the announced

So good live. to waited news we we make know know was is the that everything you certain

could So that when in at in we at Nashville with CHEST, a enabled be and while we rolled that onboarding VA that to practicing meet that and communicated were meeting. have out those conversations physicians it us

pilot is, of VA did starting a our that to the get enabled what that got we're really zero. was experience had us from as and the it opportunity VA on part testing, really so light. decision. that's within make scratch We So not we've gain the schedule, that much green gave an pilot VA or that sites program can a XX conduct we program so they with the to and It's we informed were

evaluation, that the after into that accelerated schedule. So us getting fee

about professionals our their sales are can So practices, for that those needs we those us it's on making calling and that back really meet certain physicians, into interest.

physicians and know others know, of practice you As outside many VA’s also.

So and are that other some have ordering in institutions. and experience facilities Nodify of those VAs

we're value So that see their to going use. that incorporated We accounts the they've they and have test practice. already into prioritize the those know in got because

So really about Andrew? all execution empower sites the to out sales ordering. those and and now to onboard there begin helpful, team Is and that enabling it is go

Andrew Brackmann

for sneak more Robin, in if Very I one you. one And could here. helpful. Thanks. just

sort I think $X just million on in operational cash the on the of over you burns noted basis quarter. was

as there helpful. thinking considerations of new the been Thanks. about this thinking baseline might sort should of be going moving or that other forward forward, we've we any about So sort be

Robin Harper Cowie

me. morning, a both maintaining very growth discipline Yes. very Good hard Andrew. that we cost are revenue focus. focusing driving Excuse Yes, on and

going the goal continue burn to forward cash operational scale. So decrease as continue we yes, our is to to

Andrew Brackmann

you. Great! Thank

Scott Hutton

you, Thank Andrew.

Operator

question our Cowen Company. take Thank next from from Masucci for next please. And & question, you. moment Max One we'll our

open. Your is line

Max Masucci

on of challenging everybody! market and a quarter year backdrop. nice a a Hey great despite Congrats execution

If that would that a should needle contributions about question, we non-CDT CDT, you to gross worth four margin are any be other in CDT, then gross margins. covered know tests I first out Nodify move hear, great. and how would margins, gross just was So love for in to the real for calling trends the think QX there other solid if quarter, Medicare that the are QX

Robin Harper Cowie

the Max, questions. good thanks for Yes, morning, and

the of quarter Third having Medicare first coverage. was CDT full quarter

So yes, contributor was a in quarter. meaningful it the

the a addition, as impact higher COVID was so and that did and testing Colorado revenue contributions of than point margins maintained our to of COVID from of really margin XXX this note a like other to XX% continued was there tests. but of of was the we board, pre-pandemic tests inventory state and and is of In contributor in we to that well, quarter wrapped XX% did that range, our basis saw we right-off negative our gross end COVID the cog pre-launch with improve. a to so contracts, pleased We see new to due to continue margin all very expect testing a some as ASPs our up and from testing, where our other good across have up all margin in discussion we're the

Max Masucci

great. getting not the would in Okay, be breaking the of is for comparing help by you portfolio, anything in there's that just can tests then, the Nodify how the know granularity IQ great. portfolio us blended frame volume growth but And that terms if test, can blended in growth into to you provide the volume lung growth

rate growth that think just trying in you're two portfolios. delta seeing a we're is I out in if the sort material the get different there's volume or to what of difference

Robin Harper Cowie

there Yes, is.

higher surprisingly market, Nodify than growing opportunity, portfolio; really portfolio a is mover expect advantage. bigger not at What first rate the the would IQ sort market. larger untapped As of – you and lung

So the the Nodify of portfolio definitely growth. driving lion's is the share

Max Masucci

question. fantastic. Okay force final The has productivity been ramp then Sales great, and

great You QX outperforming sales the of you're think would you be some to have to terms by just then, region, we hurricane heavy I and it we you know and access Medicare of just and did – up as a the in know why getting the about think region. for pears hear would reps speed

the for model regions, key then you just a be we curious, generally, And if in and that's improvements so and particular in sort what contemplating key you've more driver. been just access of should if sales know seen that

Scott Hutton

good and Max. morning question great Yes,

it this us, strategy. that know to You team stated dedicated consultative critical sales having for focused disease and We've allowing on every is them and onboard really to before state, and our know be a own it that but back question direct I'll one so goes and there. needs biased, here. about this starts how it intentional been really we that mindful state team. recruit I clinical I'm discussion We've very to and each answered,

committed We behind it team disease I stand it. know are strongest them because sales state that and lung numbers have And met the today respect putting and up and the can that deliver and focused trust and I've that team's every them on of they our I and to them because mission I one vision.

and training. critically brought time spend they pandemic, it with training that important Secondarily, really that our the for in-house We but was team, impacted and every recruited onboard onboarding, person we brought getting negatively behind by we all change most think us, were focused that to those the were our we But what physicians culture. pandemic a that that be seen patients it back time. so in contributing is no think put is for you said, a positive same back importantly, having big But at Medicare our I tests are on with the of We priority are the member pre-pandemic. the We thought and we that know to and instance, We physician want most really patients home. patients catch-up. a priority sent delayed high I us comes cancers to point allowing to similar disease all some all coverage. restrictions back state, play five customers to really of there get and this we so in those we at-risk are point, probably want the call likely diagnosis we've

think our is We help that that same covered to that's that physician for are to question state. for empower and we've company meaningful. every We and with in patient going and that treating said sales lung we're professionals are critical tests up the clinical that five the for has Medicare they guidance disease only moment. show What enable provide each

don't We in announcement. you little would also all companies not other real a adopter. lot this VA know We is. but value think state, a so, think the always that's also an of space. unique where do I But the early the it's that is VA We I see add know

start a So schedule sends our dialogue. VA it's fee it of to conversation of all and have the the they know include five you test, physicians and Is Max? when but did make what in we did that outside strong a to pretty helpful the why learn, conversation a allows a this, it as do they a to wonderful VA think us to for also place message, decision

Max Masucci

Yeah, I thanks and that's the always appreciate detail taking that for the questions. as great.

Robin Harper Cowie

Max, actually I'll question. October and hurricane And the jump the on in

a territories Florida right, high Medicare absolutely of and cancer Florida. very instance them very still heavy retiree of Not actually unfortunately some lung hurricane surprisingly, in of and by were those population, You're population is are. are still still Most thoughts employees back impacted and that. of and the the are but dealing areas both our our Myers up running, with to area Fort in with week other is disruption, and Florida people a struggling two weeks the

and with so time, continued for the what which CHEST X,XXX clinics. us, out in for field about that coming of of just next and We of they got week, a we're months store face also even but was were those October pulled have weeks of excited out for the us. CHEST, out But great note great momentum pulmonologist about challenges, that both

Max Masucci

you, Super Robin. helpful. Thank

Operator

moment One please. you. our next for question, Thank

will Mikson from from question Our Kyle Canaccord next come Genuine.

line Your open. is

Kyle Mikson

few about your are the guys. remarks. double ROR, how quarter pipeline above that like to curious, that. be partnerships, well, of just like had like I think high maybe and that, kind I'm pandemic, what the growth and business, announced and as digit the could prepared on could project the how hard post to of you So assume growth this That a of to I low your Congrats touch maybe you XX% Scott, the something that. on that it's test? earlier, kind recently just term. thinking teens, like thanks! want does in something could long I out called like forecast [inaudible] peer know questions do was like know growth MRD like a you kind Hey, you in contribute range, Thanks. closing but mid core

Scott Hutton

Great really how us out with what biggest we've Kyle. Yeah, the Putting greater looks thank forecast is one insight. the quarters of return to gives kind that you. know morning, up two Good strong consecutive coming you just pandemic, Yeah. growth. questions of like that you and question, grappled of really so do

there these terms there forecast described, rate definitely say it similar delays, I as accelerators would directionally want you downs. what them be we third slow look whenever We at about as do are in, parties, do you're as thinking We with correct. in can much to know partnerships and deal so to you can we that be

provide think upside of that only continue additional we to expectations. these most for exceed So us meet, but to not

Kyle Mikson

reclaim the from payments Like so just not most kind a Okay, kind growth revenue volume. claim times rate Robin, that know submit this or GeneStrat was to of about them your kind out you was progress could commercial talk honoring like if you multiple great. interested just that you faring of well. and you of Scott XX-Q the the that Medicare how driver, was as of kind payers far, payers the in And are filling are as then on after I NGS called collecting and test.

Robin Harper Cowie

project great new them about hard them in – any We payments launch, and have to improvements there it Medicare Yes, have starting to with With offering prior as contracts, – ramp payers, that, our billing for to for what with work to educate private is consistent. worked to well. to continue timeline as always we how to question. coding. a we're see from very in new your so in things payers And you're you place, an payers is, product like collections Medicare adding been the launch coverage private the education

Kyle Mikson

you that of we the catch guys And soft then a the a bonus some catch walk properly could BioPharma Okay of were through it's balance just could up been different in perfect! early sheets. is kind revenue ’XX? unlike quarters saying, and you see past I there with is timeline revenue kind there up and bit of and BioPharma, kind or Like at least guess few that of of like if

Scott Hutton

good think assess other up. a at is impact question a we look catch what's factors. Kyle. We it’s potential pandemic really Yes, and the economic definitely a kind that Each quarter that of and there for

interest what we discussions are place of contracts and our somewhat of got were We number wanted already the in began shipping why a that promising remains knowing these today. and reasons is control. of a high. control our one So occurring to disclosing We've so under that really dollars was volume of large contract logistically demonstrate then delays out in and

see We this in back house, to So think that XXXX. here occur news we with left you meat and those revenue do still in in can the that getting that of Obviously impact there's XXXX. real be to are in will year, see two XXXX. think the later positive we some rebound a a samples rebound months in shared but expect

Kyle Mikson

up that concentrated Is of couple and right, of partners like All performance. and follow reason then that maybe kind among kind the lumpy this Scott biopharma like quickly. on for that's of just any of a

Scott Hutton

and conversations Yes, no, that bringing obviously the the hopefully to over excited patient ongoing time, Phase no, be really in we’re most of a bringing new progressing a that we longer customers. of partners But you've kind of Each a good to quarter kind heavy to There's to focus concentration population. of on going a the period worked table. some new those weight about really X through trial X and with Phase we're question. with

it's you it conducted, How And When those it's to easily it's mature, delays. there's to a scale an being partner, study that it's think going new fair the BioPharma accessible got being are housed? really that and challenges partner? existing up when is for samples where going we to mix. to more where and probably be be some partner related there's a is So assume

at and look it same bullish. at both we those in see contributors, really time but both being really scenarios. we we're But the So of positive obstacles say there's term near

reception our our and We're we've on the I Our team efforts, is from and bio-pharmaceutical interests out pleased really most exceptionally partners as remains engagement AI transparent and with importantly, think selling and portfolio in capabilities that influence in our publish that we're earlier will forward made looking on year, think to the inform XXXX to start we are to disclosed that and decisions there continuing and beyond. high.

Kyle Mikson

Thanks Perfect! Robin. Scott, thanks

Scott Hutton

Kyle. thanks Yeah,

Operator

our Instructions] Tejas Morgan come you. Stanley. question from Thank Savant And will [Operator next from

Your line is open.

Unidentified Analyst

Neil product Hi! the just wanted for I up follow on services This to is on piece. Tejas.

their the the beyond beginning your there customer Is pharma biotech concerns services? challenges any pursuing of budgetary biopharma facing I you're transient are know like are indications, challenges note this when something that and new more structural to within now? some some peers guess at more base. right among of seen So you've all commitments are you

Scott Hutton

not traditionally you Hi remain committed great hear strong fee attendance insights you highlight we gain also. QX partners as we've don't possible, partnering that budget like revenue, concerns question impact new us meetings for in of from the that's we've of throughout constraints in the It's much Because ASCO, of towards doesn't weeks service – Neil! you, that's that a spend, kind year to capabilities. good an have us nearly where us end of to testing about we we're the provide much. for It’s broad not We as did rich We running of year not to audience numbers good peers partnerships. would that number as that our were history there and strong Yes. the Yes, received significantly. and last just that. started dollars because rapid saw of brand know it's to know this question. critical a as we got but also year did down insights kind for company earlier of do have we're receive Neil inquiry many budget lot we've Those companies a note not because bio-pharmaceutical a a over we've key push, end noted us But and biopharmaceutical relationships those with push. of seeing samples bio-pharmaceutical the and aware our we as got saw them. few you year the impact building That to

cut that helpful any we're that our can to impact scaling we them to support negatively and We bio-pharmaceutical mindful that make it dialogue it with of of to challenges are really Neil? our Was can, and partners. the have and as want they backs date. We certain aware or best we is to not continue part watch We're seen going back us facing.

Unidentified Analyst

the very average the VA agreement quick helpful. to was any then is how just That the follow-up ASPs? on What of we through about with question should And wanted contract. duration a implications and thinking be

Robin Harper Cowie

Medicare is into to on five-year XX It varies The it's a some dollars themselves and by close closer year the VA around contract contract test, two split average Medicare. pieces, right very our are pricing. but

Unidentified Analyst

thank. it, for Got And me. then last one

increased force, provide decisions or acknowledging the the that’s determination that some make more these expanding to to So got color internal concentration opportunistic sales on in or could hiring used in you criteria regions? you be certain

Scott Hutton

Yeah, really good question Neil.

efforts about southeastern heavily weighted IPO, of of really the the of eastern Mississippi, had more majority their towards back United reps, we portion concentrated States. you for If the to sales and XX east think pre the seaboard

years, last on two two over been years, IPO the that Friday. has it So which anniversary our celebrated expansion we’ve

So last kind two over on a we've really focused the years westward of expansion.

in behind and westward, starting their We with is minimize and are at sales be and of and going reps the it's So do want lung least to early and Omicron the incidence We We there trying about the some still recruiting We're here the the the this. highlighted sales sales first range. prevalence opportunity, still the it's be XX major territory time, that impacting effectiveness decrease are efficiency year. two share effort territory goal so the now quarter are know efforts not we're for intentional keeping paying catch-up abundance and size. to to and expense air travel that may increase to in and us. want we we've concerted that of critically three hiring was institutions professional. we by to start move it territory. steering go wheel plane, size. whole interests. windshield and sales will demonstrate We We sales we're for The a going to we be start that, to slow potential a be thought or in that every decrease really effective ones out is look about We're the professionals going Right productivity, That's seen we the our get think with that. patients we level and keeping to that as also the sales did so to earning really in time those on territory us on can we and for narrowing to each earlier a so themselves important which saw overnight, to each that some upon as on laggard, adopters, to high, known months. improve in and with we that academic professionals really and of professionals, play focusing directional. at cancer, We higher why not on every right, and

it is intentionality. So really about

and just effective team We to We on most possible. sales largest team want the building build focused sales the best are possible. not

Unidentified Analyst

you Thank it. on strong quarter. time, the and the for congrats Got

Scott Hutton

Yeah, Neil. appreciate I it. thank you

Robin Harper Cowie

Neil. Thanks

Operator

Hutton Thank from I to the And Scott for further questions showing am closing over phone lines. remarks. I'd now like conference our you. no any turn to back

Scott Hutton

about positively just we you. obviously time pleased the and and and passionate our We're to this and team, grateful engagement. today. and over the beginning provide the members interest continuously We're all representative momentum, excited all opportunity, extremely for on with interest with we're and quarters, and dedicated We're appreciate we're may for is team thank to partnering patient the outcomes. personnel now two growth you always lines significant Biodesix a and the we our and you that business collaborating are and updates. to your providers and confident of generated healthcare close focusing Thank Operator, business. future that momentum the last questions, impact the thankful our growth is and

Operator

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

now wonderful have Everyone, disconnect. may day! a You

Biodesix (BDSX) 6 Nov 222022 Q3 Earnings call transcript