POAI - Earnings call transcript Q2 2019 | Predictive Oncology Inc.

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Operator

Good afternoon, and welcome to the Predictive Oncology Earnings Conference Call for the Second Quarter Ending June 30, 2019. All participants will be in a listen-only mode. [Operator Instructions] Participants of this call are advised that the audio of this conference call is being broadcast live over the Internet and is also being recorded for playback purposes. A replay of the call will be available approximately one hour after the end of the call through July 31, 2019.

I would now like to turn the conference call over to Scott Gordon, President of CORE IR, the Company's Investor Relations firm. sir. ahead, go Please

Scott Gordon

and discuss all and Predictive second XX, for Ben, conference financial joining call the XXXX. June ending to Oncology's quarter thank you, for you today's results Thank corporate developments

June Carl Dr. the financial Time Helomics, XXXX. today, P.M. Myers, Financial XX, Amelia are today COO Chief quarter for us Schwartz, Chief the Helomics. and Company's President Executive Vardzel; Gerald released Eastern of Predictive results Company's second Officer, Warner, Oncology Bob Officer; of ending X:XX With At

If at earnings Investors you Predictive please release, Oncology's have not www.predictive-oncology.com. received visit the page

During any results. company historical company of the forward-looking of or cash projections financial is course relating cautions of be The statement includes this a fact conference earnings, the revenues, is that call, statements. company's statements statement future not will other the a you forward-looking to any that This making statement.

or of in and statements assumptions about agreements, the services any any new concerning any proposed plans, of statements future anticipated markets, conditions any foregoing. for the relationships Any services, regarding operations, future the and strategies expectations company's the of for statements statements statements regarding new of economic or belief international performance, objectives products regarding management any products any or underlying U.S. statements statements success of and or

to are results based to actual numerous and statements date uncertainties the materially assumptions and could forward-looking expectations conference described on in cause call subject These of risks are as from of this statements. the that those and differ

periodic risks. statements investors are Investors and with Cautionary release should and risks Exchange files potential Commission. the the press public read the titled the company Some of on described section these in reports Securities of forward-looking today's or in Note these

to and Schwartz? Oncology. update these pleasure Predictive Oncology reflect is the outcomes Dr. future of Carl to statements forward-looking events Predictive call Dr. not CEO Schwartz, no now to intend do my actual It turn over or obligation so. does to assumes to

Carl Schwartz

Scott. Predictive an you, data joining applying Welcome today's conference. genomic tumor Thank you platform, clinical to sets profiling, and patient thank outcomes. AI extensive on for focuses smart Oncology to everyone predict and its biomarker

are to CancerQuest of pharmaceutical bring to to with The corporate companies new our is more XXXX goal XXXX. announce patients proud Today, of partner effective we to our realtime. focus in initiation therapies CancerQuest

Vardzel, Myers for Jerry review our CancerQuest Helomics how partner Amelia the Then business recently fit leverage and Warner, quarterly projects to tactical of companies. COO plan could division will Then projects preview will Helomics describe XXXX. with will of how pharmaceutical CFO, financials. Bob into she these our show signed

– business. to As of a firm shift build Helomics, as the with entity business our we of focus combination our to second understand industry player. our To our value the the STREAMWAY we for have is roadmap standalone STREAMWAY or focus a us a in to value engaged help monetize goal

We discussions on are this currently the and cannot comment further involved in sensitive at time. developments

of like turn Jerry? would comment. Jerry over for his to call I Helomics Vardzel this and to

Gerald Vardzel

are that are it’s initiative corporate CancerQuest forward. valuation to critical of initiative my our Thanks Carl. for drivers Today going XXXX. pleasure There four company drivers the frame this

the explain acquisition the we're recap Oncology unique assets two Predictive let initiative, I Before Helomics. the from launching me foundation program. on of which has briefly its

validated biomarker This was tumor $XXX patient-derived it. First, a drug clinically in has generates invested it clinically in platform profile validated profiling cancer. and ovarian which had and over million platform, response

be generate as on generate can leverage both existing samples. and as new additional asset this deeper Importantly, information data, to well

XX biomarker clinical over has and profiles response and testing. of plus obtained drug is a has of database XXX,XXX existing across that been tumors that over XXX cancer our Second, types from years

recently in steps XXXX. Number our one, signed leveraging AI-driven plan. we UPMC are predictive collaboration CancerQuest Now, There model our with me Hospital. are first executing validating cancer this introduce in four let on Magee-Womens by ovarian

retrospective at this have tested is also already This drug their This drug response generate – will on from initiative. will tumor that Collins provide Dr. outcomes Mark leading Helomics. patients XXX deeper over data genomic data.

following we of Number this are Interpace cancer. our with clinical is testing predictive also AI-driven Mark aggressive to signed and develop their Diagnostics, indolent recently Dr. Collins analyzing collaboration models initiative. thyroid leading two;

Officer Third, Fourth, we I by program partnering this our the accomplished is with on Warner, first Dr. models are clinical back] the three Roche. is and companies leading market's Foundation Medicine Amelia our to centers. plan expanding of predictive lung. monetizing Chief capital initiative. personally [ph] key our [reach am through This Operating pharmaceutical following steps focused to

way these system. to cancers TumorGenesis The mimic new we drug part be system allow to drugs of to discovery for intend closely in tested more the programs, tumors design behavior to being with be is the created against our additional As new various offer the lab tested an patient. drugs that against in

advancing in I happy made have report we CancerQuest am very to significant XXXX. progress that

to announced UPMC recently the intelligence cancer to Helomics for clinical study artificial with collaborative agreement of joint a improve First, ovarian decision-making use patients.

identify cancers. Second, data treatment Interpace's existing new Helomics to are modeling of for indolent Interpace with and drugs clinical Diagnostics aggressive thyroid

the Helomics with on company the molecular signed research Pittsburgh-based based disease better in cancer. to imaging, agreement prostate Next, progression determine ChemImage collaborative

a and CRO services Helomics trial. analysis contracted data to medicine for has precision also to provide SpeciCare

look these role collaboration exciting of for ovarian cancer. These gut initiated times to to and continue are collaborations Viome we and us the build relationships. Helomics microbiome to with Finally, determine in out

to turn for this Amelia relates it to time, over Amelia. acceptance as a Warner our market of like it our CancerQuest XXXX. Dr. to would I comments few At

Amelia Warner

board direction and Jerry the focus I had Jerry. pivoted Mark towards. I on the and that specifically at of excited Helomics innovation here was more because the by Thanks There's extreme in interest field came

to at pivoting this the we're to learn And evaluating year our that we for milestones time. both programs interim pharmaceutical during progress we just currently understand market. about release investors and partners several the to We're intend possible through progress as initiative better outlined, Bob? Jerry the our how and

Bob Myers

for announce we STREAMWAY the reduce while Thanks restructured rate to first, pleased two Amelia. to I XXXX. am on that CancerQuest reasons, business focus burn the we’ve

XX, Revenue Second, same the quarter decrease our XX% a for of strategic players, ended progress $XXX,XXX, we period the XXXX, potential we year-over-year. eliminate with wanted with XXXX for June redundancy. compared as was $XXX,XXX industry discussions to

Revenue domestically four sale systems XX of XX the internationally to includes the the and of sales compared of XX supplies, XXXX. period disposable STREAMWAY and in comparable system

to XX% Cost XXXX quarters $XXX,XXX quarter XXXX margin to second in was XX% sales and of profit the the compared of XXXX, of second respectively. XXXX. declined in in Gross QX versus $XXX,XXX

$XXX,XXX quarter period year. of the expenses to for $X,XXX,XXX were XXXX. the the General expenses compared the $XXX,XXX XXXX ended were during accounting quarter same Operating previous for XX, $X,XXX,XXX, compared second approximately of and June to approximately

marketing and relatively second XXXX. compared $XXX,XXX, the Sales consistent quarter remained of expenses at for to Carl? $XXX,XXX

Carl Schwartz

open the have would Thank would like you, if please. Bob. you this turn questions for to call I – operator

Operator

Thank Instructions] participants. ahead. you. this Please Our with Kolbert allotted minutes At we question go time [Operator comes Jason from Dawson address questions have XX first for to James.

Jason Kolbert

guys. in financial the the and at Thank the expense understanding the quarterly AI company? I couple burn a expense moments Hi, review. you sales numbers, given then just few with through G&A marketing see take and of diagnostic kind looking and for Thanks want the balance go of you. be me we both particularly sheet is the walk rate what please side. the me Could kind of should on the the you quarter through And to the catalyst, a and how of next better

Carl Schwartz

Jerry, to side. you want Helomics answer the

Gerald Vardzel

Sure.

So is our predictive to the model. leverage the assets walking step of next through build to tumor

we data really data things, So, that outcome project forward. focus continue And building models. right have the clinically study from the model. U.K. the Magee is multi-omic we going -- to two right now in now that and are generate AI-driven this actionable generate multi-omic to collaborations, predictive two multi-omic We'll rapidly the

back example next tumor and of We'll going were consent these do additional banks data for step that as would build to sent ovarian approximately by the So sequence the to continue be for samples we predictive patients tumor out models forward. that Magee. reach the XXX

two model about addresses the continue as monetizing we're that it. one are question. first the forward validate signed and excited collaborations recently assets. These it's your So Hopefully, going the step and we to the

Jason Kolbert

Yes, very you. clear. Thank

so digress me you bit finances. a And can the on with little

the very Help as understand you'd rate things not be. you me are that Given you. in is sheet the to balance had going as it how like of sure fact Thank a kind I'm quarter, strong forward? high to burn going unfold

Carl Schwartz

take to that. want you do Bob,

Bob Myers

Sure.

time. when finances you at and there notice are you'll the recently the think look in there went are acquisition rather one with merger just a that's paper filed Helomics through of that some We been that XX-Q things expenses additional lot large. are occur with there I there's that expenses a expenses and major the that

efficient. order in to looking and our redundancy we As more effective rate we began become at said, to more remove burn

improvement that certainly is and sheet balance off the in a coming future. think our for think see I merger company I strong a you'll

Jason Kolbert

Good Thanks. luck Okay. guys.

Carl Schwartz

Thank you.

Operator

a comes Please Investor. question from [ph] next Our [Nicholas ahead. who Private is Guerrieri] go

Unidentified Analyst

guys. Hey,

sell [indiscernible] up to want focused the system. to like Helomics sold to guys it Just of the thank it XXX you like there. activity looks starting But focus Congrats my progress time seems six short it to around The so. you for guys a you units question is guys you units came on looks away – XXX getting projected of my XX more like for call STREAMWAY. from and are there's last or and like going Last only here. were around drift lot the years on and answer guys around seems the is about so year STREAMWAY you

as in I in are in there? to department? do on what you as guys know differently looking the are barrier things meaningful do you why to And don't reach Thanks. sales but earlier, ramp order touched can you guys this what sales if that some you see to

Carl Schwartz

Dr. Schwartz. is Well, this

We moment. at to along, we with company have as or this standalone concerns. sell. I looking would for could will us But we burn our include But continue can said as at pared at someone your but rate say as that we're that's else merging earlier, understand a our all Skyline we help the which all what back options and

same the have We concerns.

Unidentified Analyst

What further in specifically just selling those as you units? appreciate And holding back -- the that, the I Okay. going answer. see on what's did

Carl Schwartz

by up the but Well, but hospitals, and have of overseas trick want put limit as always starting very down a in our hospitals the I been one just with is pony, pick it’s large break to we product difficult they're don't both these sort deep, of to penetration in so sort one very is that it companies too get the to sometimes problem up. -- barriers we're a

we're So encouraged by that.

Unidentified Analyst

Okay. force. you STREAMWAY? of you on increase increase you some your Did that your number current your the in layoffs or of guys or terms have standing did what's did force sales salesmen, And sales

Carl Schwartz

you with say to a back doing But can the more STREAMWAY it. as want critical same your as we're we at we don't soon evaluation about understand time the I we much concerns we'll concerns. and talk and This have moment. be

Unidentified Analyst

forward. and Okay. guys. appreciate your moving Thank you, time good I really luck

Carl Schwartz

Thanks.

Operator

Investor. Our go comes is [Indiscernible] Please who next from a question Private ahead.

Unidentified Analyst

guys. XX%? and you you'd to Helomics with Last Hey, in I be path came year that's wanted then year, first when about about had the to little slipped this late more. and bit profitability to last dive March. here a got talked profitable You

be Now will And Helomics where are we back? holding at? When what's us do think you profitable?

Carl Schwartz

Bob? Jerry.

Bob Myers

Yes. that don't is if us think Nothing Carl, holding I I'll is Bob. This back mind. whatsoever. you

call What tell for think that that CRO and the revenue would and be you we profitable. side. looking that I extremely made were to on it especially think AI from important at and be the in our milestones with right the now bring side when will are the would the to me of listed business foolish success we in we're

to we'll your but be think bit I that, towards changes little good you'll again six course be in the patient, profitable keep months. a six the see be of that that profit. don't announcements, it I want eye will watch next But on our So, months over some this, say

Unidentified Analyst

Okay.

to So in happening? dollar that be our this great. sounds six actually you a that mark we What months case to last NASDAQ extension? the Do over need was see to get next again Or months. six

Bob Myers

we and and where business strong we UPMC with strategy organizations. successful fact Well, have we a -- we collaborations moving. deals presented and we had everybody some focus extension does, the the forward that we're we And on fact did that with NASDAQ filed other some for going on going an the with

own six extra an we these for the the fruit bear us have now price core. some of gave and stock to they and its things on months So time had

Unidentified Analyst

we Okay. expect with to we monetize so was understanding database enriched do And at when was that sequencing database? properly sequence for to sequencing, are Where it to question, then and that not the data for last Roche. deeper my its Roche extent finish like foundations that this

Carl Schwartz

So, this is Carl.

data – are target sequencing, generation set that again the of initial that think was It So part its of sequencing. by sequencing clinical in targeted I of correct, test next of acquired the looks genes. is the terms biomarkers, set you

complete latest Magee in I samples We assuming would first of everything validate by terms need the the aligned to imagine model year, sequencing ovarian sequencing end expect that we those that appropriately. of AI-based to predictive cancer. of our

and too And but we're to sequencing expression. get both deeper mutations don't I doing also sequencing and technical, gene

we So picture with sequencing to the fuller have. us have what and is expect stage inline sequence pharma of a customers that more

Unidentified Analyst

sequencing So per foundation on us that, but say? with with par

Carl Schwartz

clinically. valuable model use pharma Magee ovarian allow That data cancer sequencing getting outcome of in to opinion to would be extremely data we're that together with eventually would from and build the that for certainly the us our

Unidentified Analyst

database percentage of tumor our oncology? What is

Carl Schwartz

XXX%.

Unidentified Analyst

XXX%.

the Okay. bank? go And in in Bob? miss Did we I the part, XX-K did that

Bob Myers

cash not point. more our we a time, fair in We this at this at certainly but point have have discussed amount

Unidentified Analyst

Okay. us much we Can have? you how tell

Bob Myers

No, to liberty not I'm discuss at that.

Unidentified Analyst

Okay. Thank gentlemen. All right. you,

Bob Myers

Thank you.

Operator

for our today's concludes Predictive also presentation. earnings and for Thank for you allotted attending This time conference Oncology's answers and call today. question

may now You disconnect.

Predictive Oncology (POAI) 19 Aug 192019 Q2 Earnings call transcript