POAI - Earnings call transcript Q3 2018 | Predictive Oncology Inc.

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Operator

Good day, and welcome to the Precision Therapeutics Q3 2018 Business Update Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Elizabeth Barker, Investor Relations at KCSA Strategic Communications. Please go ahead.

Elizabeth Barker

Thank you all for participating in today's call to discuss Precision Therapeutics financial results for the third fiscal quarter of 2018.

Dr. are today me Joining Carl Schwartz, Chief Vardzel, Therapeutics; Myers, of Executive Executive Officer of Officer Financial Corporation. Jerry of Precision Precision Officer Bob Helomics Chief Therapeutics; Chief and

and all Precision the about prospectus in identity be considered solicitation holders the with turn rule, Dr. of will information Schwartz. SEC the to are interests. limitation, the caution without that the Carl we connection like but forward-looking Holding that encourage of urged including that Forms results XX-K, call connection Helomics. the Before SEC description events contain as S-X Securities factors Commission, Exchange Corporation. because management in may Carl? would proposed read Security materially documents the to proposed forward-looking future the I operations specific identifies with with its the contain Therapeutics proxy Company's well would people and proposed important the Form you described the Registration may regarding will would in the or and Therapeutics like results statement Helomics to including also which to their I participants like who, statements. of I by comments merger, in during With a traction I Precision actual filings the statement relevant cause this begin, under with refer merger Precision from filed made to filed differ said, those of conference they with call by transaction to the SEC and review statements over to with to and Helomics

Dr. Carl Schwartz

the people Artificial us Research today's Company's critical Specialty Intelligence everyone progress in since been in stands Applied earnings new several we Thank our advance dial services XX% TumorGenesis Myers, through we whom I'm evolution. of who this our the our provide quarter intention to the our And to many a this initiatives to XX progress also to medical have to these CRO strategy that great months information definitive and has working and our investment goes welcome or call, XXXX including ago, CFO, agreement I'll into results On our call, to and AIPT you, acquire. that see biologics our our announced before Contract hear also aware Also, the provide Therapy. organization symbol, financial quarter. formation about in Helomics drugs, our development we've to as subsidiary going areas. today of signed we on so with today's Elizabeth, Bob into are in be Medical CROs update for Precision for Later the joined then, it sector. integral call. talk Skyline to is division devices. It's period in services about specialized in third pivot to and the

translate disease. tumors cancer a year treatment finding optimal focus this in the TumorGenesis, are to with growing our the an a CROs therapies, leverage least personalized we drug wholly it especially formed advanced needed and growing. discovery our PDX Currently, exciting CRO subsidiary, most in powerful ovarian billion for pioneer on to mouse traditional new a market development drug rely on position are of the tumors $X For approach exciting optimize model patient-derived market ourselves drug To really to We at in age technology is cancer have human of specialty cancer what owned opportunity, to news to specialty laboratory medicine this discovery, the process. to believe first finding relates understand that as quarter called of biology, initial this cancer. and

mice by the cancers ability changes us. PDX outside models, affect to be mouse not internal trials is mouse our clinical patient’s when the able model Questions costlier, a genomic these this accurate, thinking primary TumorGenesis, than cancer into These can when undergo fool enter the These translated do when been they To longer will represent responses closely models aim human and and human and before body. transplanted changes This expensive are a is how cells using that the testing can for which they more can However, host. patient's response type more different into how designed human development of model expected to cancers of model. they individual [technical human for to well accurate a to are less raised could a to to market body. is cancer models mimic difficulty] personalized predictive about type. represent accurate inside lead generate environment tumors trials. therapy drugs. predict This short, in be to the drug, AT and PDX perform PDX low-hanging to have with of lasting the sub tumor fear mouse growing fruit clinical produce treatments patient-derived drugs new being

As be survive cancer. XX% standard today’s mentioned, our of than focus cancer women will from on with ovarian Fewer initial treatment. ovarian

the ovarian and samples cancer aim Already, completing weeks, there mutation paradigm outcome. of tumor Currently, these validating has growing kit made XXXX. a mutations the completing of developed targets towards cancer designed this already. and selecting clinical for now including first available the this which of patient-specific for progress and major TumorGenesis milestone goal, to work the cell we material have which each is three outside cancer made of mutations TumorGenesis the growing TumorGenesis that is development kit this approach and tumor; XX grow tumors the body, with one the to and peptides half we cancer solid screening significantly for of screening a discovery kit research The towards the technology, three, to quest best; grow this and focused are are starting human improve process selling cell is in to in ovarian In generation using was these in next first Our of The needed for include each, on types. patient project. exogenously. works $X,XXX this clients the two, patients, structure for milestones ovarian change tumor by major several identifying the one, recent our securing tumor a whole with being

to approved clients, tumors these drugs growing these in has completion of This and next The if into will lab ovarian as cells cancer discovery projects drugs patient. of improve at with offering. Helomics’ will able us a with positioned were encouraging or We will CRO. researchers in have new months they the part help drug as research expect Upon we that CRO our is progress made milestones, therapy services outcomes. as few TumorGenesis CLIA and pharma patient be still the our fool combination to develop unique in firmly at a pharmaceutical identify just previously be

this a President intelligence are ownership XX% very breaking provide new ground further and and CRO in in effort significant call artificial discuss over update Jerry Helomics Vardzel, stake at now which we Jerry? platform. body; to outside I'm the application First, our Helomics, of going further, CEO of hand to another the tumors we our to have differentiator, within grow the

Jerry Vardzel

to three in its which growth continued revenue on Paul Helomics pillars, complementary all model three place. through generating strategies execute are business has its with in quarter Thanks, of business

is our As being platform a reminder Clinical Digital our for D-CHIP Platform; testing Precision D-CHIP, our services; pillar. Insights pillars follows: artificial our Insights the drug CRO for clinical discovery, centers, intelligence are Oncology which as which oncology is Health

our research Precision position organization. Let me by at which a contract CRO begin what boutique happening dovetails talking offering, is and as TumorGenesis about supports Therapeutics’ with

go-to-market driven applied platform tumors is which by intelligence growing. it and CRO database, is Our strategy in our currently to has artificial XXX,XXX our

our platform into clients is and of drug diagnostic Our the the in pharmaceutical with goal therapy. this to precision generation discovery usher next cancer to market leverage

precision clinical through are companion National studies quarter discovery of driving patient Foundation. biomarker patient signed partner from we advocacy a In to and with stratification a Alopecia screening group, target Areata diagnostics. and major for the We ourselves positioning deal therapy for screening a as new key drug three, discovery the

was and revenue access this that a specimen we This service key means store, contract full storage processing. and for of of years. This over perform our offer test reoccurring process to both differentiators generate researchers ability on-demand fees to One registry. identify will and our will mutations specific project many

our to We our destruction. made also address the part our services laboratory. other with proposals site storage, XX study transport, to Management Alopecia aspects Specimen in contract the and processing Areata tissue. specimen and services transport pipeline. shipping services all to of to The the live facilities of CRO for from with from experience the with clients biorepository needs recent additional helps of tumor years Foundation With includes collection National Helomics Lifecycle to as have over signing to of Helomics biorepository logistic in progress

information D-CHIP, other tumor. build from to our contain data, databases clinical profiles continues Finally, anonymized to own i.e. and drug is the genomic on together response base is genomic unique patient’s out the our and we our to XXX,XXX AI of large repository platform add as powered of continue tests, response bioinformatics genomic initial The how D-CHIP just drug. as the data linking the knowledge that in tumor unlike Helomics phenotype it performed

platform which going will but generate of additional revenues also not contracts generate additional signed sequencing generate revenues to our also D-CHIP, We these NGS will perform, forward. have as from informatics deals from only as part we for data

I have allows to signed area announce with Genome partnership, D-CHIP agreement ovarian of genome and this generated DNA One especially other data genomes of in D-CHIP objectives to on we very of partner was expensive with cancer. the us key access the data sequencer England’s use we the patient’s pleased to And entire whole business today am which project. Through of to we genomic have they build the have out a key partnership that sources. XXX,XXX our recently

mutation therapy Our programs the tumor now artificial map. create DNA to against intelligence of patient individual map can whole

turn Oncology Insights business. Finally, let to Precision me our

completing specific a the this Platform primary the oncology treatment. work own that business with in involves tumor artificial The together of mutations. to generate to the up truly personalized on revenues additional patients’ Precision captures that the numbers patient's Health profiling roadmap which Clinical provides is up the offer Digital Our Oncology front helps testing. specimen comprehensive Insights context is focus to with necessary power the our identify the business It tests Insights patient D-CHIP, oncologists key tumor ramping of from that personalize intelligence and

continue outreach existing program oncologists. to make to with We progress our

X,XXX specimen currently generating our over have in our numbers, which growth in each month. We network, is

We more business the additional for of program data XXXX. as throughout well-received relationship integrated move outreach been has two utilization has our look from started revenue building has the XX move current to new two of consultants. appropriately of to is approach. in and revenue we've We through plus vendors dialogue the nurse the sales basic launched in effort registered specimens of clinical forward. to other initial towards registered for enabled quarter reimbursement, verticals consultative four We These The three, in the and drug material resulted discovery with this as continue program vendors. testing in previous represent this Our outreach D-CHIP approach that three for us XXX approach plus RN over services. with our from for and this the consented did representative quarter the to going provide addition form nurses a this and away mentality grow

are running as and also contract our to which research generation Precision business is D-CHIP. impacts Oncology report that and as channel up We business, both, our well our sequencing Insights next pleased

XX Oncology offering For four are the insight clinical business, the Precision key for testing mutations genes at we cancer. over

the power Helomics. many time forward. measure we However, exciting provide D-CHIP genes together. data platform This truly These is more AI-based our an genes going to in

up ramp CRO I'll for collaboration to and have our strategic over the beyond. a that, it to we with And turn strong business with executed additional fourth newly continue We and Carl. back pipeline With signed contracts. quarter

Dr. Carl Schwartz

strategy positioning displace obviously existing opportunity market great we Precision can are our see, poised excited are research CRO company Therapeutics fronts a positioning there's to us, for later ahead market. patient Company take will a pioneer. support many that we By outcome, development in to unique advance opportunity. first better models They of cancer provide have our to have Through the today, be comprise advisory with when that stage growth of considering a additional about a mouse team and you our artificial scientific we to multibillion worked this scientific throughout we a and as precision and dollar renowned be As in the launched so and prevalent are the about all Therapeutics’ executing advantage medical we in closely Through player ovarian the medicine application guidance on the intelligence, of yet Helomics, contract and in and deal as creating to believe who our investment management To other to world the development. are ourselves the senior flawed, work medical crucial we the organization experts our market, PDX bring market and board. Precision TumorGenesis indications. in

Malandro tracking. the already, Chancellor President eight for Biology Professor Biology of was Operations Biological Clinical Joint and Global Machine Biology. We Derda, for Ivet Sweetnam, of Amelia Ph.D. Robert Science Frudakis, at Dr. Malandro, University and Initiative. Ratmir Professor, Warner, Marc Computational the CEO Bahar created is founder promise and novel CellBridge, the testament was been Murphy which Carnegie Zuckerberg She Paul a Global Engineering, Carnegie Pittsburgh Computational Dr. attract world-class Inc., his Board Specimen Scientific have of Dr. Concepts. of Specimen at Murphy, Trial I Head and the believe the a Management and Two Biomedical founding and Solutions a previously was Lane at Computational Chief and of Computer able Dr. also Wall of Successful in DNAPrint Professor Stephanie of one, founder CEO & director of School of to and Technology Tony Chan at the the Vice analytic Co-Founder in to Pittsburgh. is Science Dr. director Sciences, at to Ray Genomics; University-University Officer data Program Institute solutions to LLC; which previously the the University. Mellon of Vice Prior Alberta. Mellon made. with University Department the of Learning, Professor of Commercialization Founder experts Innovation founding the the for a Associate position, and Number of

have successful Professor Paul Advisor as and Dr. drug forensic Sciences that the highly On about of encourage we well Kornblith, of Former through Pittsburgh Paul growing the and Therapeutics, read as the would and I we development DNA of Advisory a and as the to these School Greenhouse, clinical their establishing and CEO advisors serves them We each Innovation the several Board Skyline Corporation. Medical and Founder consider the With System. Health and to have Life over STREAMWAY Institute; Medical Adjunct in Precision Helomics for you the businesses. have Helomics, to positive currently Chairman very more important as at now have combined issued of new, on for releases Rehabilitation Quite related of skills Gomez, press weeks, cover few to we biographies and to GLG President of includes the last impressive strategy Life our the them. like detailed Pennsylvania Sciences. of move & developments Also as University an each bioinformatics, Medical that, to into Board, Western which we and sales Co-Founder LLC. Division the I'd of Pittsburgh; Director Their discuss molecular where experience Hector for CEO, future Medical group. Pharma, biology,

America, it which During of any time turning quarter is including represents sold took This us opening reported was a sales market. X the place have point outside North up of third units first for North we we the outside America. which a larger much as XX the

the U.S. the sales. to impact change direction While that gaining operations of are considerable with this we be internationally, coincides our traction pleased in will

feedback but needs hospitals the number in purchasing that approached and of have been those all especially We interest provided modifications certain a medical address centers STREAMWAY, facilities, poor to large requesting with the of expressed by vacuum.

vacuum. hospitals then We to by quarter uses therefore releasing our domestic in which vacuum an version the efforts, followed an the that has STREAMWAY that and on-board we have focus temper sales made implement sales up XXXX. enhanced STREAMWAY in on the Generation supply our U.S. decision To of X certain one ramping called Plus, modifications, XXXX, STREAMWAY, end, are

short decision, our of a for year. STREAMWAY sales this our As predictions result the fell of

of believe approach However, generate new sales to XXXX. evacuation to U.S. To on-board of complete sales support requested, previous The of additional the in the field. procedure up which fluid those some most year. next commence year, sales strategy. which capacity have nearly our will Plus several vacuum for with European several we best past network hiring months distributors we international of our with field. satisfy is five us any we will and covering and had already we the and the Europe the is sales arm, year, sale Portugal, time rooms. first revamped believe pleased vacuum of more the is sales requirements. new reps France. and significant Switzerland, has quieter North rapid and to have the the with as receive secured, STREAMWAY that frees the both in model and constantly medical This start this medical in over These STREAMWAY, first space significant market recapture our European for be centers and medical as STREAMWAY established Earlier XXX(k) than and powerful, developed from new to device speed we we reps operating well-suited efforts presence additional the how approval in could then to enable have alluded consisting the the way with we have gained in will efficient this in of growth are It are progress traction. a our hires pump experience the us with we missed this the partners are STREAMWAY strong rooms maximize is a reputable Plus it form in expect the the earlier, our strongly At latest-generation not made to FDA independent future Compared the we of Austria, the was to have something growth sales OR to Pacific pave which also believe, strategy, our Rim. limited Asia, believe and and we indicative and in is I a the expected importantly, In well XXXX XX% our sales potential of be coupled penetrating about part region, customers only to STREAMWAY meantime, improved as people of are direct technology and excited that These course market. and total European will opportunities sales discussions half relationships in potential springboard we was European Africa smaller The and sales they opportunity. our pump decades

the Medical Lastly, India, suppliers. medical group as over one of Anecdotally, of has of and from well XXX said, agreed currently countries interesting machines product our equipment MEDICA most the a distributors Skyline number Japanese a the this negotiations is there at in considering at international Furthermore, show. several were around as Kuwait, world, shows seen booths EAU, quite have to at largest other contractually a CEO XXXX. X,XXX the our MEDICA, who European the distributorship the compliment sales several in over is sell Arabia one including with hospital companies world, company at I of signed Saudi have with Pakistan in

the they each this to talk We’ll global sales call Company. results these network the updates I’ll expansion please grow, our regular issue We financial go on turn the to Bob as and CFO, now about its materialize. over ahead. quarter. generate to Myers, Bob, to additional initiatives with continue for of third for expect to continue sales

Bob Myers

X quarter Thank $XXX,XXX of XX, ended compared the sold for for the STREAMWAY you, fiscal afternoon. third We quarter during was Carl. XX, with Systems with were The XX the financial quarter XXXX compared September the this results ended the Systems SEC in filed STREAMWAY quarter $XXX,XXX fiscal XXXX, quarter, XXXX. XXXX. for third the ended September September XX, with Revenue

Our XX this to generate year. Systems sales continued solid marketing has sold and having campaign now so far STREAMWAY results,

filters for Gross to XX% Further, We for recurring basis with XXXX, cleaning improve revenue to compared System of to three continue expect profit use in two usage the this launch with in XXXX. $XXX,XXX quarter XXXX STREAMWAY of with disposable margin our Generation cost by sales commercial from produce in ended the compared revenue, gross of a campaign the in points, for and profit of profit accelerate quarter gross of products XX.X% margin Plus. from the by continued growing followed X revenues will the of STREAMWAY $XXX,XXX XX.X% has profit Gross to awareness from in the higher existing with campaign STREAMWAY customers, was quarter disposable increased XX, six September due higher to same XXXX. period of a XXXX. decrease a nearly the products

sales to equity and which parts we time our that compared XXXX, warrants offset and XX%. increased stock-based expect ending stock net investment of an Company compensation $XXX,XXX XX, decreased was $X.X September common The should and which direct development; vested will in components million that purchasing costs. loss with benefits was primarily recorded also in Helomics, expenses investors’ equipment for due XXXX. from $X.X payroll, higher TumorGenesis by compared in of As ended vested ended operations available This quarter margins. volume $XXX,XXX own $XXX,XXX and to we loss net year million September million, which for with both discounts loss reported General in the the approximately we $X,XXX taxes this million for with a on offering common prior compensation new to research fees year-over-year, expenses Total solution, XXXX, toward higher XX, options; of to quarter due by quarter bolster that the testing the the operating to $XX,XXX enable in in period. XXXX increase our cleaning available registered over in a were employee for September Company's increase, for expense, our million. due continue XXXX achieve to $X to The us $X.X $XX,XXX by related $X.X XXXX in and administrative build-up; XX, consulting November STREAMWAY development; shareholders the shareholders $XXX,XXX to of

comprehensive the net shares X.X or loss loss million includes sheet balance This call. balance $X.X for million sheet; our financial half average million investment as Carl? $X $X,XXX,XXX XX.X portion which the per equity quarter, Our or compared outstanding earnings Company $X.XX advanced this method represented show per notes, today’s on the on million compared XXXX. weighted In and by for net share average million amount and is shares The of as outstanding, which with received on share XXXX, the of $X.XX a was from of private was XXXX, weighted and of $X.X cash third concludes convertible September of on quarter receivable of of first equivalents that week loan to $X.X had XXXX. cash with promissory of placement we proceeds October million Helomics. secured December the in XX, XX,

Dr. Carl Schwartz

can you, open for you Thank the Bob. Operator, please question-and-answer. call

Operator

to [ph]. [Operator with you. Instructions] BDT first John Barker We’ll Traders Thank go

Unidentified Analyst

afternoon. Good

of correct? cost is was the $XX,XXX, the So, STREAMWAY original that

Dr. Carl Schwartz

Yes.

Unidentified Analyst

much the Plus X.X cost? will And how a and

Dr. Carl Schwartz

Bob? Do we that number have

Bob Myers

to time at that. I this We announce apologize. for numbers sales in are our point prepared not

Unidentified Analyst

outstanding have, you shares do many and is How now? right your Okay. what float

Bob Myers

and as shares insider float have ownership is outstanding million -- private we little approximately ownership. our same very have the We XX

Unidentified Analyst

million? XX

Bob Myers

XX Yes. million.

Unidentified Analyst

much. very you Thank

Bob Myers

welcome. You're

Operator

[ph] to next Alan is Private Dana who We'll Investor. a go

Unidentified Analyst

Helomics, that I that cash flow in detail appreciate Hello. the third the How it Extremely fact were active or -- would On neutral did you company; you thought in be go particularly go? Q. that better in you calls. your conference and the past into

Jerry Vardzel

are financial. moving let We I'll, you give any that. towards Bob,

We are moving pipeline. towards that with our

in of are did are towards and sign moving revenue. contracts, we three verticals, the We quarter, generating all pillars third that. But

Bob Myers

as on We a haven't reached breakeven yet. that point

in third the quarter we've fourth opportunity good think seen the yet. with contracts have think I some together quarter, the attained. we're has progress not that all Though we I real there

Unidentified Analyst

at that on And count other Okay. you fully is share gave approximately to million? the that diluted the XX caller,

Bob Myers

it Yes, is.

Unidentified Analyst

lined company that common up Do And have you the at sort do of point? There's you up the Okay. lined on up? lines they mergers deal? do the quite this merger, the before that have votes votes the in

Bob Myers

Carl, may the used Reagan our these have we to? I votes. a working hired on have that we've up past behalf answer We are wish to do Associates proxy or you that line solicitor that in

Unidentified Analyst

would When has date? the be, set Okay. the been vote that on yet

Bob Myers

No, it hasn't.

filed have we’ve communication Thanksgiving. We’ll and S-X, those received include right from sometime receive to going comments which after We that is our comments. some SEC, the

file will S-X. point, with will then We SEC, votes. the date the comments to for mandate to immediately a we try a that where At knowing the we able to stand be put

Unidentified Analyst

this announced kit something ovarian on And Okay. $X,XXX for that’s cancer, new correct? that you today. that Is

Dr. Carl Schwartz

Yes, that's correct.

Unidentified Analyst

Who's that? about that, would buying the target? who heard on be hadn’t I And that Okay. before.

Dr. Carl Schwartz

on phone? Richard? the you Are

Unidentified Company Representative

is in [indiscernible] he think I

Richard Gabriel

I'm CRO Richard would Yes, also It with Helomics. our Precision Therapeutics, be Board am. is I'm of customers. on actually of I responsible this would Hi, for Directors Gabriel. the building the We business. share customers but

currently portion doing. are a they what separated it's of So, is it from -- kit

But, Okay? it. an add-on to it's

that question? part CRO your actually we answer Does of So, become offering. a

Unidentified Analyst

Maybe, it’s today, is something sell it new. you could available it But, something is already?

Richard Gabriel

The Yes. kit’s Yes. made.

Unidentified Analyst

had you sales Have any it Okay. on yet?

Richard Gabriel

Literally, the was kit just made month. last

contacted is looking what we for. clients, So, we're early haven't adopters

Unidentified Analyst

of one? something I'm one would gauge Okay. this, these would they trying more a company, buy buy kits on a with drug than sort or And get to it? to like for they

Richard Gabriel

much low be Xs Phase are as a and trials in high as range; trial as as XX, maybe Xs are will larger. X/X generally, clinical clinical Well, usually XXX Phase the XXX; Phase Sure. XXX XXX, to

number the keeps going So, up.

Unidentified Analyst

by up this remember they’d numbers well end probably your So, to the X,XXX X to kit, I to get correctly? buying Pfizer, if whatever if these, wanted of use time the they over Phase

Richard Gabriel

discovery Well, many, kit. because not kit necessarily that is a the

they patients, a screening want what they're find patient going to new if the and coming new So, in they're know paradigm, is. patients to that

So, kit. the between to XXX kits drug, between be course probably over number a a of it first XXX somewhere the for -- may

and available Helomics. them screening the into The the second then dilution third that compound and kit compound use is of would screening gene and at all kit leads probably

Unidentified Analyst

Okay, good.

Bob Myers

this are -- not we're Dana, his are to this that from just making. coming Myers. them, in realize want are is Bob prognostications is Richard but of experience. these I numbers a make deal that had great that sure He's

Richard Gabriel

No, the I've since drug been -- absolutely XXXX, are not. in These so… business

Unidentified Analyst

count I so expect you Good. about to actually, would If missed is to I ask share question, finalized, if shares, then to the back I wanted one Helomics go Bob. the deal And be? just what

Bob Myers

at moment. I little think, my Bear the a share for head count with would -- be me. just

Unidentified Analyst

fine, doesn't be have to pristine... is Which

Bob Myers

in million Probably XX of shares. the XX neighborhood million to

Unidentified Analyst

roughly guess. my was That

loss, Okay, current you this expect do the were the quarter? to third some or in good. do you continue that about expect it exceptions quarter, was there And in the rate,

Bob Myers

No, XXX the at I There the of have it total. continue loss Helomics, totaled quarter, it lot this -- expect including take to and a we paper on in loss equity rate. don't is in to total was X method that X.X

expense. So, terms comp that things option expense is we and investor in have that and there brings us up, various of then

that that in ramp I promise think, next think sales MEDICA specifically as received turn such a that now will that we've that Europe up, our with I around. conference year from

Unidentified Analyst

I equipment? I Company it correct just do I'm And hear heard announced your that Did sequencing to Did XXX,XXX if in outfit deal you right? that wondering DNA with that on this hear with today Okay. I UK. the ability right gives the their this

Jerry Vardzel

full the access we But, of to we access DNA sequence you. are them ovarian -- initially It’s ovarian It biobank. exciting XXX them is, will doing now part have we the cases access in But, sequence give care we it's records. gives cancer It forward cancer records. that ovarian cases have XXX data health care sequence with with Jerry over we the -- and collaborations to doesn't that use are as But, right additional as the the full as health sequencing. us additional speaking. have us cancer. with go Thank forward go full that data

us to to genomic fill gaps already that just data. data in And the that -- which the build fills set where in deeper allow have. continue And will a could you So that to use we’ll have that. of data, what specific we train D-CHIP don't on we we to

Unidentified Analyst

also in samples being be would to interested add their a your you're do to database? they'd business -- that that roundabout way, you Now, think in in you

Jerry Vardzel

really. Not

I D-CHIP learning is I never to going the our think, fuel our going say of our never, like say at program forward. but and the end it's machine day to forward. I’ll as D-CHIP I engine train mean, into which our it's the filtering really

Unidentified Analyst

until with good. else the the -- question actually mean is a Okay, changes Company X.X it’s that stop And you're does selling to available? for that the there to going these them STREAMWAY unit, in someone

Jerry Vardzel

But, the No, that market in -- make selling that we're in sure to. was stop that in we Carl machine. satisfy well not it we this going selling we generation would we What with have still did extremely doing it. our works our advanced and the to the market are still Generation world U.S. order in to mentioned model, were the what ultimately a and X turn we

Unidentified Analyst

that guaranteed about the you XXX much on XXX you'll done that Can heard there sales. that that a Is expand like international little were that had I you heard I on the sales? And get on some contractual Okay. pretty those that then, if right side STREAMWAYS guarantee things bit?

Dr. Carl Schwartz

But I that but would a -- enthusiasm. know that don't deliver. of I because promise they don't distributors lot we sometimes have say

for orders, to that [indiscernible] them going a they guaranteed to are conversation’s guesstimate we're moment sell sake couple these But, a firm the that So, for going be Most many. them. -- yes they're at have going them to of are of that assume best.

Unidentified Analyst

a it over quite those distributors. like, few Okay. actually spread correct? And Is that Carl, sounds are

Dr. Carl Schwartz

Correct.

Unidentified Analyst

Good, good.

appreciate this. And the guys there. of to And work for are you doing potential. your thanks the deal has great think all Company answers I all I Well, Okay.

Operator

take investor. question now from We’ll private Steve [ph], your

Unidentified Analyst

First question.

So, said you just that profiles, XXX ovarian is cancers correct?

Jerry Vardzel

the With and on this to additional XXX our records. XXX specifically news Biobank, us of XXX,XXX we’ve with gaps the the -- fill cases. recent cancer in they the cases access tumors UK Genome of they to collected. with England, that’s ovarian sequence gap some full cancer are we healthcare because And we’ve D-CHIP plus the have ovarian have data from But, that the allows years over collaboration to fill got

just course, disease categories. So, have our forward. additional on of other But and us step They going the has one ovarian. this of been focus initial is

Unidentified Analyst

of rest a that profiles? the will is up not lot make XXX,XXX? spattering those sense? makes What Does of the it Right. use And where we

Unidentified Company Representative

[ph] This is part of not the Helomics [indiscernible]. the

the rare are genomes the cases on as have, as -- with, disease at said as disease XX,XXX diabetes, such as has focusing about different also of as cases collaborated a XX,XXX about UK well cardiovascular element, in cancer chronic cardiovascular cancers Jerry XXX,XXX projects large cancer we that XXX which all So, for the There there. moment, cancer, spread across we well. the diseases is kinds XXX ovarian

England is -- and sequence the for Genome and this new this in data on. by supply and to phase basically that of so everyone diagnostics so, UK to companies pharma like And therapies, somebody a us first precision to diagnostic use project is at the project drive

Jerry Vardzel

build realize we that base plus And it’s that our tumors important have of out… XXX,XXX we to here

Unidentified Company Representative

tumors our cancer Yes. XX,XXX in ovarian database.

Jerry Vardzel

that to deeper Mark So, a data, fill this just have to the that of approached D-CHIP Insight is I on new business. to, forward. single around our that every one things -- mean, in tumor integrated going give business the to Oncology day. we brings a and is adds pillars set I continue in of alluded us going gaps. our as And our And Precision we database it’s three genomic

today. we’re excited, ramped these have, our one and So, in really what hear up this especially extremely we of you collaborations, voices type as can has

Unidentified Analyst

you news see I kind think morning. It this of me No, very for said loop XXX… to a it was definitely threw when good just

Jerry Vardzel

of and us records of samples gives said, getting data sequence -- it the -- healthcare forward. as full go terms it’s to the quality good in that a the It’s the I Yes. we’re

really of into to information it’s we’re that our that getting add that building on. data quality we’re So, the D-CHIP that ready

Unidentified Analyst

be more required fully much How TumorGenesis functional? investment is to

Bob Myers

are -- answer we my one for Carl, you. that Well,

This Bob. Okay. is

are are And actually some cover those agreement end the higher for done an on as of fees fees of comes lower things when the the of we their -- that's form part are They reached. have some it. to the with TumorGenesis paying are in of of. level these milestones We really quarterly quarterly that consultants compensation lab technicians are that

account. already go have escrow we a we to which been into are The investment. over was any further original that milestones in And put reached. period necessarily into made these released don't an gets So, of that stock has investment time as

Unidentified Analyst

will full When we Okay. at be functionality?

Bob Myers

if look can don't I know, answer that, but you. forward Richard, we to I

Richard Gabriel

on additional are top were of that samples the acquiring acquired. We samples

quite are in yet. one -- the these sites centers. Canada. And working another haven't of process oncology and and all arrangements a in pathologists one we between close they're one So, on clinical two actual locations, But, third in Poland. Alberta, contractual we're hospitals And Florida, with in we're

of the to ongoing complete And that's the then quarter least So, those the have those acquisition conjunction with finally and in with one the are… first in end then, somewhere year. kit We Helomics. to around and hope to we're and samples at of of process. next then -- second before hoping move midyear complete screening Those

Unidentified Analyst

fully functional? it’s what’s that’s Mid-year,

Richard Gabriel

still have to say the early steps. we It's early too

sure. been has made; say we kit first that The can for

proven, it's steps and the effort. been and hospital need part into a patient we of bit to on to difficult on next it. there's just takes little takes are a off format, a get lot privacy think, there's two And also clinical it sign then, the -- some bureaucracy, I HIPAA the -- very technology acquisition, a has that put time. -- of rules of next the are patient There's very which stringent and

we're that. through of working So, all

Unidentified Analyst

of received is Those in has year, QX; correct? we to one be the that the the end completed that rest, to receive so Okay. the here deal by

Bob Myers

milestone. Good

the So, a on of a Then, based it's the [ph] push various milestones. one it's out -- pushed milestones.

Unidentified Analyst

that company? kind us that will of And a what will then, give runway -- that as money, how long

Bob Myers

Hopefully the which have basis will till carry terms with some of that through the months. being quarterly kits they course money of frankly they and sold very of along isn't being we're put expense to over that in the out, next revenue that's them way hopefully from few very, we on the and are going completed can much, a revenue that the carry kits to offset themselves have

Unidentified Analyst

TumorGenesis wasn't talking Okay. alone… I And

Bob Myers

absurd. That’s acute sorry. I'm

question? your repeat you could So,

Unidentified Analyst

or I don't So, the we this that remember just loan we just the loan got from the bridge company, name. received

Sorry.

So, will the carry hand… AIPT speakers]. [multiple on how that forward long cash before

Unidentified Company Representative

That's fine. conclude. January be merger to carry least will expect I until at hopefully when will the it

Unidentified Analyst

happens the And cash? concludes? more merger when Okay. what How then, have do you

Bob Myers

you we But ability areas from the we're things clients different I speculate lead of have we're to with biggest -- S-X, of at I'm working And number can't funding a not towards with Helomics generate not two is that's partnerships needed say. that into there an necessarily to the field. if that in I looking to do Well, that do. privilege can an we what speculate.

Unidentified Analyst

S-X that is dilution of shares?

Bob Myers

shares position much and of the value important. be of a that a that shares would things That some complete move some process towards more us dilution but getting to acquisitions in of make our will

Unidentified Analyst

Okay.

what those XXX million XX from asked the So, is? to million that’s acquisitions,

Bob Myers

correct. That's

Unidentified Analyst

Okay.

of be would of some So, acquisition… private placement that would that some investors, be

Bob Myers

placements private or of speak of and can't speculative I not committed. it's acquisitions; towards More anything because that nature it’s

Dr. Carl Schwartz

Please XXX under bear mind also we're in Rule.

Operator

question from investor. [ph] to Daniel go Watkins, next private now the We'll

Unidentified Analyst

interested. cetera? large Hi. such some networks, systems, as large I et hospital heard on that Do the Providence hospitals Health, are call include those

Dr. Carl Schwartz

true. Yes. That's

Unidentified Analyst

lot they roll question. so immediately? a a do trial the going -- many you or buy - rephrase anticipate buy going Are to also, to they that And on that or should and product they immediately put once reengineer X.X are with not I immediately? out it

Dr. Carl Schwartz

Well, generally, up, so, conservative slowly it's start and that. But hospital it. ramp satisfied all of it they'll and they're once are off they'll with

We've from a had that lot. five the design… bought buy some someone four, And

Jerry Vardzel

the already we can selling I We attempting of we X.X. hospitals not may -- if number moderate are the do to add, of we that have have or Carl, a to rollout a to the it to for Generation it's And to and close taking features up, try matter better to going sales. that's X sell a model. even machine taking of just have

Unidentified Analyst

on with largely interest Okay. replacing networks? on continuous basis? would Are those you say the they level And surgery interested more -- a trial or is in large rooms what large

Jerry Vardzel

Go ahead.

Dr. Carl Schwartz

going, just it’s they machine, sales more. I and where like order just stronger a all say they again, something and go. they're a have over had map. cycle interest going they to our interest in happy strong we've Well, want it’s was very get to Once always a that the we long to start But

Unidentified Analyst

Okay. And suggestion. a I have

within hospitals, to lead, have the that surgeries right their look -- You surgeons they talk should could, could ask by you lead, product up -- the in themselves. doctors bosses so systems what’s higher you posting newsletters the could about word, then the into to

Dr. Carl Schwartz

in great where our machine is Yes. surgeon does But, we That's when greatest they really can once it's efficacy. surgeon where tend control one we see get we a that's with through which control, what get side. find we effective option. generally, the have But on our to the using comparison We hospital infection -- our now. maybe go -- the acceptance

Operator

now [Ph] BDT We’ll go to with Traders. John Barker

Unidentified Analyst

My StockTwits? question comments is group. read for the you the entire on Have guys

Bob Myers

this Well, of can't comments -- have Bob. StockTwits, occasion, some the on the On but naturally looked we to those. on is I respond try to

Operator

for to I'd time, Schwartz And or additional to in Dr. conference there are turn appears questions no it the like time, at this back closing interest of further any Carl the remarks.

Dr. Carl Schwartz

Thank you Okay. joining for today. us

growth see, both, never Precision medicine verticals, initiatives can it major device in market. progress been has industry precision Therapeutics secure medical the with to time busy many Skyline a Medical position and in stronger in as you to drive here is As sales. very

we America, North Already, have encompass we the solution that we advance which believe could way companies with network what Rim. up TumorGenesis, additional drugs. ramp successfully market, only discover groundbreaking to independent the sales exciting East shift Europe, will this working revenues we We that and are growing toward we called Asia pharmacological are negotiations now established paradigm entering and a new network a South strong their and where Pacific generating and our sales At now undoubtedly from distributors. hubs create a continue in can that an Australia as be sign of are teams

base. client new and Helomics, investee, revenue strides agreements building making Our is securing

our that, quarter excited the your this to the about turn close progress back of each are support. With and we call. We call you to operator I’ll for thank the

Operator

your today's Thank participation. conclude for does call. This you

disconnect. now may You

Predictive Oncology (POAI) 16 Nov 182018 Q3 Earnings call transcript