GNMK - Earnings call transcript Q4 2020 | GenMark Diagnostics, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by and welcome to the GenMark Diagnostics Fourth Quarter and Full Year 2020 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker's presentation there will be a question-and-answer session. [Operator Instruction] I would now like to hand the conference over to your speaker today, Leigh Salvo. Thank you. ahead. go Please

Leigh Salvo

And us Peter. all much very Thank thank joining today. for you, you

begin, to events, of Before certain would objectives, statement I we like beliefs, expectations, are by constitute statements. plans, during forward about may statements. our statements or inform GenMark the performance call course future this assumptions, forward-looking Any or made that you looking

of clearance, products, XXXX statements statements and assumptions. operational We objectives regulatory concerning plans development, new of our statements. financial and are commercialization example, are trends features For the and looking reasonable market all management and guidance, based forward on these believe

these the However, Scott call, no forward-looking actual statements from results to results GenMark factors those with occurrence CEO expressed call that to forward-looking not or uncertainties may cause and performance cause such from in which these or the could detailed implied any involve future occurring by circumstances turn are to of now statements. GenMark's different known assumes statements events I'd GenMark. to actual and to any the expressly this reflect Important events. after obligation disclaims to duty over unknown of the materially update reflect and Mendel, are and materially in risks results filings statements like SEC. differ guaranteed President or any to unanticipated of conference and Scott? be

Scott Mendel

In was our Johnny transformational year-over-year on for our total you for with for today us truly XXXX XXXX call $XXX quarter million. Thank Thank our everyone. and both call. full XXXX financially year all joining announcement, conference the you, Good a Ek, XX% operationally. GenMark, to joined Lee. afternoon, line by CFO. pre revenue year grew and for I'm fourth

team enduring those one month, shipped than less of throughout tests of that designed, that of validation one deliver exciting $X of and scheduled us to years syndromic in shifted in we continued quickly from our and and an SARS-CoV-X ever RPX ago top driver positivity panel, This any operations. most top infectious our a to more overwhelming for the and to committed panel. our further than and experienced. a line COVID-XX And history, streams. approximately is the the growth. we on generating in cash margin Well GenMark top Despite key flow believe test, development RP diseases on was which acceleration diagnosing a was target milestone XX demand quickly we positive detect for to million that our cash first manufactured teams and provide improvements team Our pathogens time they achieving beginning for the our GenMark's kept have test eye line molecular for customers to to are Operationally, pandemic hard the continued -- design. our among challenging creating roadmap, not revenue workflow provides first was our to assembled identifies one streamlined on single year original to tests designed SARS-CoV-X. including it's ePlex just flow approach simultaneously We

On installed the analyzers commercial growing ePlex is in the revenue commercial of delivered. teams our built our front, base model global on

an us stream approximately BCID to agreements predictable RPX $XXX,XXX for $XXX visibility million volumes, committed end the of revenue ePlex placements. of placements XX% from additional annuity to an and and/or enduring of an XXX During XXXX, customer year of taking using an at base with XX% we XXXX. contracted analyzers with world, placed XXX than up More analyzers on us multi-year panels expected providing around to installed per ePlex sites XXXX

continued revenue panels While portion a of blood identification opportunity revenue, our culture create large demand drive growth. our for to continues for our a RPX panel significant

approximately within Pre-pandemic, expect placements panels customers three we a in installed importantly, important validates base. we in test. broader can as BCID coverage our significant placements get similar managing to XXXX, just opportunity with trend In interested designed further infections XX% included bloodstream vaccination broadest and sepsis. solutions COVID-XX through of in under immunity. XX% drove access a of syndromic are drive to adopting And herd which strategy organisms commercial that to a have of three Our resistance we control our lead which of and BCID our expanded critically is our BCID, of not adoption executed BCID the prioritizing COVID-XX panels that genes, about interested and and

is growth our major be multiplex stages expect early The and diagnostics the in for beyond. molecular adoption. will infection very BCID of in a large We our panels driver bloodstream and XXXX market of

are $XXX to latest estimates market opportunity that XX% penetrated. is and million Our about this approximately XX% only

cadence the competent growing implementations, BCID We see increasing of and number are implementing encouraged by panels. we of customers will a

implemented $X hospitals large this than revenue. already year, and annual three more representing million expected BCID panels fact, our In

Turning to manufacturing.

month While $XX build up more committed that to driving including can to additional We six out recent capacity second to ePlex communicated growth, ahead consumables enabled goal the validated a validated expand previously facility These this the line. during production slightly of December with year than XXX,XXX million and per to consumable investing new ePlex new addition lines in expectations. significant a achieve our top rapid capacity, us of our accommodate earlier of month the resources first-line line consumable fifth we facility approximately by lines. XXX,XXX our manufacturing per line end with additional month, this

to talent and additional training recruiting capacity. We this are manufacturing fully leverage additional

We we consumables second reducing increase to and support ePlex to capacity of XXXX, drive the have This our up expect margin and line additional half six per approximately on gross improvement. initiatives keeping improvement which our line process that capacity in in be will useful with demand, assay critical providing begun development overtime, that XXX,XXX complete will our to month. work also help

technology menu and has stream our panel As touch their over complete R&D teams momentarily. to exceeded steady in a manufacturing priorities increased, development. development year investing on capacity to RP our a additional need requirements. access for customer more been our have I'll demand development capacity been of to which as has capacity, we we internal These resources work, challenge and the prioritize for demand accelerate past

I conclude my team comments like As our accomplishments on would acknowledge the XXXX, amazing I that to delivered.

which I'm Our quality challenges has fears I'll this the about during focused perseverance, customers highest you navigating faced how unprecedented pandemic. I'm and and rest my delivering employees and And accomplished. by while thankful their be part of our all remain the solutions comments same on on, requires molecular thinking the courage so dedication, to what of our of GenMark team family. XXXX. we're to of spend proud the patients,

priorities. key We are focused three on

strong future move by first growth, and The panels global adoption RP we GI through revenue of beyond. will BCID driving the as and joined our panels. and These is into growth our XXXX drive panels XXXX

RP plan adoption. also continued We the US through outside and expansion growth BCID driving revenue both strong

Our execution, second specifically gross is priority improving margin. financial delivering key

We exit to achieving XX% gross as XXXX. committed as and are margin we XXXX we exit XX%,

RPX longer goal of focused technology development Out panels these are the key for for the panel sunsetting. our specifically, future GI development and advanced began And second on including We which resources current goals is completing to We innovation, complete in panel submission, such the are in new commence second GI is as, have to this development clinical third development. investing of studies in and priority to allocating XXXX top to with FDA and More would year. for our a enhancements team be term enhancing the and our half a delivering COVID-XX enhancement the menu to year. half the RPX asset panels, XXXX is deliver. preparing roadmap achieve also XXX(k) complete required priorities work

opinion panels are which evaluating from for assessing also leaders, as teams feedback doing as well Our additional groundwork the the competitive market research potential includes using several landscape. key menu,

Our goal begin is new in on development two XXXX. panels additional to

strong manufacturing to opportunity, -- investment accelerate appropriate. development. With calls that a and technology exciting teams driving the cartridge more revenue our and the We faster, software and lay to menu the are during same time, sample our preparation confident growth now with deliver expand tweaking are advanced future is At our in results an for as sensitive begin will provide will on capacity time the groundwork years we come. expanded to updates we in development And focus capabilities market our engineering capabilities.

functionality. expansion, functionality. A link several consumable patient addition lead software innovation, key to component using physician ability and extending we streamlined is In comments as our value of management, with including improve software and templated ePlex's on features menu patient our action differentiators, propositions to with our also such to respect patented results our workflow, key to focused ePlex are

over to continued steps adoption taking a help that will are We in of the longer-term. XXXX pipeline create drive enhancements effects

take few minutes some XXXX some Now business both, trends that our out, to a but also the laid provide related for product, to in form priorities, the business provide challenges. color of that COVID-XX I've would on demand strong opportunity our key I like

a open ePlex continued we has consistently context, strong To thus normalcy panels, our winter. COVID-XX on demand Based return throughout First, personal which far, to trends, quarter RP carried demand drive RPX we outpacing capacity. a a strong our and stronger more sort put have the level of, for in driving the typical return planning This herd is orders and rest established $XX we is continue to cannot hard assumption due we current working $XX of are the to panels, in what year to in fulfill. which fall an will the upon and plans to we summer priorities the to to spring vaccinations, happen are million for some, Well, by range, predict million this have of immunity followed results. behaviors. in demand COVID-XX for based our and revenue

likely the spring such use and summer. we other provides our a panel. as pathogens scenario we towards As and focus a strong head upon along very will pivot for these we during circulating Molecular to as into solutions, This seasonal our syndromic plan with Based adoption BCID driving winter. see case COVID-XX result, flu RPX various assumptions, ePlex further fall the

due revenue the testing the test stream we model. a on to panels of nature continued time multiple last This do with QX Specifically, with implementations even this believe more contracted already we line BCID we in could panels. year, can we and though add declines. complete execution, is if not cases an than year's see COVID path drive a have Therefore, we and and and and division our in syndromic customers customers those market, which last business even commercial all were results we recurring continued pandemic. our benefit product Because our that QX funnel, combined sell a COVID-only plan our growth revenues of high year's running at to opportunity BCID XXX to revenue

of a that exposure utilize the work. terms fully to impacted related in exposures the showing and that in those cases a season In related Southern with cases are additional Recent well manufacturing increase of improvement number into the just employees large vast majority spike saw sharp COVID of were This business, in began for a completed. our We COVID-XX continued with the our challenges trends first activities particularly during outside holiday we California to and significant due to quarantined declines of ability COVID-XX experienced capacity quarter. area.

minimize like I topic which optimistic XX% received vaccinations, of address is more sale widely an We are non-operational or that is before a the the And will should related becomes sure topic exploring process trends also your buyers. continue already many I'm I that We article in after is approximately our have employees would of being estimate over the to call vaccine these that receiving forward. help absenteeism to minds. as positive going Johnny, XX% approached of potential that by a turn GenMark their COVID-XX to That reported on available.

did not did provide those provide information rumors, nor for For on we any the article. GenMark comments corporate policy, we

for that quality of types solutions enable these very rumors patient our mission molecular high be can better deliver company, we on distracting our While outcomes. diagnostics to remain focused

their on a and deeper customers our our and turn Johnny results focused for guidance fourth are priority review XXXX. top I'll Our With for and to we the that, needs. of call quarter over financial patients their remain

Johnny Ek

$XX XXXX. quarter to challenges produced increase was XXXX. process million, we we XX R&D, was quarter XXXX. you, of increase over fourth exited experienced ePlex XXXX. In quarter fourth over were majority We the the we commercial versus of for the placements margin. was $XXX,XXX, increase XXX% expect a important operating million, million we cost. XXXX, labour XX% X of record the in December $XX.X of margin an total an executed or profit our in despite million, the quarter gross represented This to XXXX. of by XXXX. during G&A third lower contribution fourth ePlex or quarter savings fourth to XX% new fourth points revenue the XXXX. of of quarter, one or the in party at XX, plays $XX.X million, fourth labour of a quarter The the investments of ePlex increases an for reduction gross of of that XX% million for versus initiative quarter ePlex of of significant analyzers, consumables quarter the cost direct compared the a in as of for $X.X fourth Thank addition quarter, increase Scott. COVID-XX over quarter in representing quarter, XXXX. provider experienced $X.X an of revenue continued cost gross Total our revenue, of intensive team increase see of Average in a transferred is driven This expenses driver XX% In placement Revenue the that to the the ePlex taking Fourth key Total to the XXXX. was profit the million, of was supporting in annuity increase an XXX as in $XX.X growth number approximately net an $XX.X

of $X.XX, XXXX. of loss improvement representing the Our the quarter net XXXX over share fourth fourth per $X.XX for a was quarter

$X.X we million balance to $X.X to Inventory of quarter the our in investments of sheet, over XXXX. accounts resulting cash in ended of cash mostly $XXX,XXX. quarter, manufacturing balances Moving a operations with receivable attributable equipment This in investments, decrease expand capacity. over cash the the $XXX third approximately of quarter in in and used million prior to further million property is the decrease increased and

we $XXX revenue net For the sites. over vast year an XX% are a an XXXX XXXX, full analyzers year, XXX% EPlex million, represent XXX continue to customers XXXX. year-over-year placed increase. and our customer average generated in $XXX,XXX million, throughout was analyzer. so over of full systems was of ePlex the $XXX total at to to expected the Sales majority of revenue increase In US annuity the for per revenue future. These do new XXXX

investment growth of XXXX, and year our to expansion, margin Turning driving manufacturing R&D and for from another cash guidance in we expect continued gross strong ePlex capacity increased flows with revenue positive operations.

million, be levels at We the to expect in year-over-year representing XX% driving ePlex range total to with $XXX of revenue begin anticipate return to We experienced placements increase. midpoint system of million this to to revenue the growth $XXX ePlex pre-COVID.

to gross annuity XX%, and $XXX,XXX. analyzers at expect the placements XXX range range XX% we range average to exit year XXX to For year new to from net XXXX, to of full $XXX,XXX and our the the to anticipate XXXX XX%. from be for margin in full analyzer year to We

$XX expect the expenses in range to million operating million. $XX of We

expect to range remarks. $XX be our the usage of we prepared $XX cash concludes to million million. activities, financing This in Excluding

for So the at to Scott this questions. and like time, open your would I call

Operator

Instructions] And first Doug Cowen. [Operator have we your Schenkel question, for with

Your open. line is

Chris Shibutani

seem contributions your to like seen been or Hey, confirm just the demand thanks. impacted is clearly this prepared broadly, US, as the panel And based starting Chris then Thanks maybe Doug consumables wants with my as guidance on remarks, RPX case? that's it XXXX season utilization is for what on from your so but BCID? taking This more for flu flu, just in light for doesn't Maybe very questions. for has today.

Scott Mendel

that add-in can this Chris, is and I off so start anything I'll Scott. might miss. Johnny Sure, you

So of related prepared going right, on as at question, the our the impact was with it I flu any And what's or demand? to on first your currently flu our remarks, time. impact circulation not demand seeing we're on you're on this in stated

capacity. with And continues dealing panel the outpace quarter. for open to been entire orders In RPX our fact, our throughout demand we've

a news great perspective. us that's for from So demand

based as but do penetration has low with beyond of to the that in our the competition. the is RF ePlex as also growth in inclusivity in And that. opportunity. product market a rates key market to adding do believe well revenue, it diagnosing significant relative from upon the to And we upon relates growth driving additional customers workflow, other be along very to amount with perspective. that is bloodstream it our certainly well that infections this solutions. BCID needs very And BCID a But As large to XXXX, adoption an panels driver have opportunity and in address positioned contributor our to year, ePlex’s with molecular

Chris Shibutani

Got I are an you could you give new of customers to bit just they the was terms in terms to in systems, able of, before on us hoping need update place your XXXX, it? a Salesforce? maybe you target in environment And you Can more placement whereas if Thanks. COVID-XX evaluate the again? improve guidance know customers you environment orders, know,

Scott Mendel

varies region really we Yes, from perspective, from visits our to But more of on-site state so a by see the country state. the customers customer commercial it opening and by do of teams. up

to will visits an and we that using ongoing. has is other of really growth that methods believe from a the virtual spite perspective. Zoom so And that continue trend continue. And commercial that, to enabler In for certainly drive us been

negative lockdown impact many we really the customers. and haven't So as able see being not a from felt to

on So side. the that's actual commercial

the throughout folks implementations, be site basis, training visit side, servicing, to site, sites to any do specialist are regular pandemic. on on on those so they've entire a and even the able continued that On the to application are going

affected us really all. So has at that not

placement the year. do strong interest accelerate will pretty and increase but is continuing placements, we be good the growth, perspective, to driver for we're in the also for growth shape placement We funnel in of yes, this key believe the not is BCID from just a revenue a think So and the year.

Chris Shibutani

Okay, great. Thanks my taking for questions.

Scott Mendel

Welcome.

Operator

next question from line comes your of JPMorgan. Peterson with And the Tycho

Please Your line mute. is Tycho on is line open. your Mr. Peterson, your if line is open. check

Scott Mendel

Peter, why don’t the we question to next move please?

Operator

we And William for your Brian next have Weinsteinwith Blair. question,

to your open. Max are we is open. line Genuity. the And Brian Weinsteinwith, Canaccord question, Your moving next Masucci Mr. with is line

Your open. line is

Stephanie Yan

should of Yan Stephanie be pandemic? the the detail in of the embedded Can versus and you've given that the issue, pacing the is questions. a we speeds? for about out and global a taking Max how this Masucci. XXXX the Hi, recovery about more Thanks that for at thinking assumptions differently? provide the is different you bit Also, any split international instrument be areas of we placements for different pandemic cover global Should world and thinking US around

Johnny Ek

mentioned Thank This in maybe in pacing my the a a that pre and pandemic even don't to can as perspective, will in We I'll level Johnny. with help and similar. return remarks, expect difference to commercial be significant Scott start expect we is you, then question. pacing, prepared placement I XXXX. cadence international From Maybe Stephanie. with the placement

for through demand kind throughout still well. steady to XXXX. systems of year. and -- expect Our was the our and relatively that pacing There's we see those replacing as

Scott Mendel

teams really US. by mix of this just because going it country. is Nothing what's on I to that country no just to big our OUS shift telling that of. are us Scott, the present like between amazing US. be But to we're in forecasting don't OUS and are an Yes, aware opportunity, continues see a and change the

be what comment from flu really don't to difference add prepare the I see to So the strongest people see just on And is of we've past. for experienced being season. typically, pacing placements, you in Johnny's as a like QX what that'll

the year, still have paid And bit Now I've because of throughout placement because for off last evenly pandemic. said, pretty a pandemic. little it the as was the year of spent funnels Johnny thrown strong first quarter. We

in a focusing because continue bit that'll and BCID control. is And kind QX pivoting then have when more QX, adoption strong. as to opportunity window in I I COVID So on believe towards think of be a relatively we're as we'll of we mentioned,

think in will the QX drive I placements and that QX.

an reasons, be year driven. in year. it'll bit going COVID of those opportunity, of placement in This perspective, year have control. specifically paced on the driving evenly more parts window the execution BCID than and throughout year different last because So should us after of we middle it that kind was little where from for was flu COVID Last year what be typically the a is

Stephanie Yan

Got you for it? that color. Thank

different had for these supply the in and should into we to play sold a Another traditional centralized those company labs about the setting, trends your question or we ensuring healthcare tested and setting. versus sold demand and using market trends the to the placements was, your point-of-care I how larger so hospital have been demand thinking think about professional how solution, particular? setting consumables as will test If as your be and out patient, supply for segment there

Scott Mendel

Sure.

that. This address is I'll So Scott again.

within saw flow change and and think the in increase point of to care I COVID there's certainly and think will incidents. it's cases as cases differences patient and important your it highlighted position populations. use an and of of questioning COVID types home of and in change everyone and you levels ebb for that different in understand we at certainly testing When that testing, you've different their address molecular, platforms

keep in hospital course. the setting. we're market you eye all We're an -- will That's So in, on not that? the of

within the the in testing, us most flows hospital. you are And think hospital ill that the ebbs insulated the we because relatively at we're So we're COVID big setting syndromic and from perspective. a treating from patients presenting have, critically well

the because news, because day to better possible there's our want of or our from as panels, see you the using enable you're positioned. is really on to trends day as we so of early might day about a staff day testing outcomes. And to level decent to know panel or that patient the products Again, as information where syndromic as much read insulation

other is the in testing gotten test a And ours, insulated for from the largest COVID that some ahead are itself COVID a point-of-care. why Likewise, than and you either kind market, so, increasing which in kit the the based hospital demand. increase or again those And I of not only solutions you where most only, of at really we're saw the that's the capacity, of think capacity in that's of highest throughput capacity. space saw perspective, more that's types bit

And so you'll where increase that's automated utilizing likely on, little again, of built in test and kit a throughput see pressure capacity has a that platforms. that all bit based high up, been fully on

space, syndromic automated capacity, didn't on enjoy capacity. as as Yes, the but POC, our the increase we Within high that that same both testing you competitors, level of throughput some near we type spaces, magnitude those did nowhere of the point-of-care, increasing well saw market. so other

again, So, did market the same other manufacturing capacity that insulated the our relatively the subset side, not and increase demand significant you experience the think saw from on we we're of in areas.

Stephanie Yan

Got it? Thank you.

Operator

question next with William your Blair. Brian comes Weinstein of And from line the

open. is line Your

Griffin Soriano

on Hi, guys. Griffin Brian. for is This

demand where And question. XX? the importantly, current and where molecular you know us highs. was happened you. much this what then what's recent sure testing Thank sure I your it's sense asked in thinking goes? was demand ball is But I so a early think syndromic of give But Not off stranded if can XXXX. for more here Hospitalization sounds you crystal Not while that. a there? gone. the on about goes Sorry demand

Scott Mendel

Johnny?

Johnny Ek

Thanks, Sure. Yes. Griffin.

this So is again. Scott

prepared continuing panel, panel. strong but and we're very of a syndromic we're in early color context we what So is which our see to give specifically, for a seeing I demand and mentioned our did remarks, to RPX little XXXX, try

supply. fact, In continues it outpace ability our to to

that You've of had consistent persist. the to quarter. throughout a orders book open continues And entire

good demand news a perspective. So that's from

you looking at, right, how our around into and ball, I'm at, a move tell we're looking together crystal I'll it's it. we business is you're crystal As ball, -- the planning

bit as a to adoption immunity. volume Our well of telling for of QX do drive crystal do what that a vaccination a more and is testing window. will we us because ball be from perspective. basically just development to being and We time herd prepared widespread, QX be where QX think BCID of QX prepare lighter is to are But during as

continue expansion. So us help that'll drive revenue to

expanded our using have addition, we In RPX. significantly that are base installed

testing a where expanded BCID QX, the so path line next in quarters have volumes while RPX of pandemic, the we've is to allows being the our of because install as in base QX, us at normal that last high relatively year. QX level So applying couple height a much, not might testing QX adoption the of be still to which plus and

So we're of positioned. sell. And can that's well have that we because test with panels we syndromic think different many we portfolio our

was we're We patients expanded are going And critically base. are hospital. really have installed at an the ill after that that that -- presenting

years. we're head combined for of the into what crystal thinking perfect the will out. three in we're that's of in same play as winter you're shaping and ball Plus, So QX, things see fall build panels amount XX Again, that's of we as into but And important on the to likely that's surveillance. then circulating experience likely summer, will you'll what we're business because QX the crystal flu Those last able the be to how time two market as based pathogen see our probably that's COVID-XX. syndromic you our kind And quarters look ball again, And syndromic decent still our at XXXX. do to -- testing it that's for, see here normalcy, return planning QX, over together a we up. it says, there's GenMark, all be the case using circulating. a some what is to COVID-XX

Griffin Soriano

Appreciate All Apologies right. lot that. there's for a this clearly answer, -- asking there.

talked two new the Should a of demand. with we R&D more to Are line still to of being engine about on more panels planning year you’ve with here to that line? you expect a forward internal bit to point capacity fixed on R&D on a hit the inflection this more one an Just satisfy one fuel pace focused -- go basis?

Scott Mendel

Yes.

two Griffin, So launch the commercial, the for same is ramping and want it exactly start to want And going it's development. to that at We a panels on in accelerate menu above -- in R&D. safety -- the working are of your time. so capacity would we we GI, good additional that, to might of to development we need the point again, intent the but what to on our actually addition doing probably net have and try we up is our that increasing commercial we're that four investment intent is RPX reason

investments resources So we But couple set for bit getting year year. start acceleration are little that to ourselves this it those out time those take advancement. in a of menu of to as making does R&D well capacity per up as

Griffin Soriano

Great. Thank you.

Scott Mendel

welcome. You're

Operator

And line your Tycho comes with Peterson from JPMorgan. question the of next

Tycho Peterson

guys. Hi,

earlier. about Sorry,

maybe my placement for in were capital what first question able pricing terms in keep should mentioned XXXX, of And percentage? you expect you we previously to sale guide then, So of terms to is larger this that and you expect XXXX Do realize continue capital historically? stable the larger increases still there's a price move as sale. to in percentage assuming even of you that a the percentage versus capitals

Scott Mendel

Yes.

range, to last XX% that'll XX-XX still it's probably year XX% capital we're was that what there's bit Like are of also taking a of planning little What you a the placement more it, normal for to height urgency said, did pandemic. the So snap planning but certainly as sense the in what bit from was The revenue in lot We think is we in reagent the longer. more not our bit from in, we rental it of capital/reagent for sales. just through both were a placement like capital a guidance, And pandemic, available. for. with is rush is, seeing available. ratio. a same was at isn't guidance, the for we're last is call little extraordinary. guidance, back the to to -- balanced the But good little purposes, both we're and pandemic high last something There year's planning more We the planning capital news something return that it capital than still capital mix allow year. And the opportunity. is

Tycho Peterson

tests elective still environment is COVID. procedures any being steady Is Are on And sort have made upside there testing a XQ? returned? just down as going as volume and as normalized of any you to comments will be staying XQ there to quarters based it? for ePlex? in COVID on demand in upside run then, Got maybe hospital those that XQ protocols, and earlier, XQ the to into bit a coming back going those And, far

Scott Mendel

certainly for Yes. a based demand we're in plausible, strong our that that And I we it's purposes aggressive volatile build you Again, might what and it's QX. mean, environment. can a thought would guidance QX, setting, planning be might bit say, seeing. From a have you case. still on that

in just thinking COVID. know, you could on right. best happening. parts, surgeries like But, said, what's you to about happening you little you of how understanding As doing going give beyond it. that reasonable it a and But other Like be depending have other folks bit course, we're we're our factors, not the for elective on circulation we could would in of of off something plan yes,

Tycho Peterson

Thank you. Okay.

Operator

from BTIG. comes Nam question with line the next of Sung And your Ji

is line open. Your

Sung Ji Nam

timeline Hi. and talk Thanks year. could -- clinical the questions. GI the about commencing the of about studies for Scott panel talked for the you development in and the second Johnny, half taking you

kind has this of it in things and to once kind or on can I'm submissions, of more Just to FDA of the provided kind far transition from terms normal? And thinking normalcy? related back wait the about you any Just as how turn curious how kind we about to to that. something that EUA IDD color of curious they're that have that coming is see. that, have that, is on potential if kind as of environment guys site, identified currently. back get of just the something curious, of kind contingent you Is to

Scott Mendel

roll, of bit assay the time end to far a will bench, Sung one. They've come manufacturing we're questions. great really lot and capacity, Ji. we start GI of a having and on development capacity past them of believe as 'n' as Number rock up timeline a hamstrung biggest things. that. challenge for Good I'll to Thanks, quarter, last start volumes that down we quite have Sure. having of for we we got The freeing importantly, the testing, think believe line of we stream additional first as two respiratory availability one, reasons. of the year. steady get team there but faced the will the hung work on that is really some team We manufacturing that more expecting risk, do and in

more So that's the beyond because that and just part control. of getting the to XX XX timeline, last capacity risks that COVID we've endured over under the we getting we're months, that, believe

for bit these a clinical been we to clinical complete while are, and efforts relates waiting and designs, time lock their As derisk in activities studies phase analytical working area clinical to prepared we've studies, line GI they've been studies, development one we for folks being completed. of necessarily it the administrative certainly and development little next The work of doing getting to GI is can't collection, as sample the et and cetera. control that as background possible for or much

add ships, it. et to would would were you, it collecting and that just around typically doing sites that's of from that cetera. with normally can is for expect. pandemic, are and overcome being try you GI samples to more than down the access we clinical seeing to best restaurants, And really We samples gone out is than typically cruise so we way less because more everything than you during have our being human sites the available part derisk more to locked we samples be behavior sites less would you The so have to that

nothing sure really we've that rein to what Ji, been over So about. timeline in doing it there and Sung is and really that's we thought haven't keep try to this make control

make as have can it's as much our the development that progress as teams time that access that So possible. go they line, to

possibly said that to So anything sometime. time. for an molecular a mean think everything been perspective, for long a doesn't of. that EUA derisk the we've probably we're hasn't multiplex shouldn't there it'll From But FDA plan, we as eminent. trying we provider out right, be around think We can is that

it with FDA, time. good have the We know relationships takes of course. But we also

then And panel what done And to flu so all we have to completed to be like this, would soon. of the want we in be get to to want our go, ready ready we ideally very that do. so front you'd that's season, called next that that's all and planning us what footed, that's the And do. studies flat data not to we're during the preparedness. expect caught to we're get And have

Sung Ji Nam

on And just annuity, you. Got much for helpful. That's so you super the color there. then the ePlex thank

see As COVID-related in about testing XXXX. be if not But XXXX? we're as guidance from to XXXX somewhere are and step growth we -- -- asking look we guiding necessarily that benefits just you're to But -- think able beyond. ePlex XXXX, kind if for to another could down at curious here. the going if should annuity assume will Obviously, potential some from XXXX? efforts of BCID to around be your of we there annuity offset with you where still -- you're you I'm from to in year-over-year XXXX able in terms

Johnny Ek

Yes. This is Thanks, Sung Ji. Johnny.

on through which of think you it in our contracted kind So to next going BCID years. have our correctly, annuity ASP pre-pandemic, really year we at for few and forward. the level is really our sort hit increase that annuity that support that we where annuity. We contracts, for -- will I our think will the XXXX are And continue it that's of modelled saw for

So we the that normal this next believe perspective year, annuity from for we guidance of near-term. is range appropriate year, of sort in a we that a believe sort that it's range, provided our carrying from

Sung Ji Nam

be then you. reached steady able kind was XXXX? that out small you that guys where what a break point? your of And you at for declines on guys do long Okay. Or I kind talked state you haven't of you And to Have are? SGA. in of part this know time. further a Got It's anticipate from business now. would you about lastly very

Scott Mendel

we that has we of that And And is in foresee of maintained. we've XX continue fixed customers business hit that's million to think state, share. have we changes sort it We it's so predictable. that that it pretty is don't to there. what steady where sort million some Yes, shared, it's XX

Sung Ji Nam

Got you. Thank you very much.

Operator

question next from your Mike line Needham. comes of And Matson the with

open. Your is line

Mike Matson

on I questions. year. wanted taking I for and guess, margin my ask one the to for gross the targets thanks Hi, the

needed what are you largely completed? additional this matter of the the this that are need kind be Now, it's to of, XX% volume, that to to addressed? or just thing accomplish that to rate items So know, you Has get year? target deliver on been exceeding key a there to projects

Scott Mendel

of QX see see highlighted been I and a they labor There's But XXXX. that's Yes, and on. benefit a working we will have we items thanks, in addition direct they executed prepared that in one benefit of on that of in we remarks direct target of through materials, the will Mike. efficiencies, handful handful the the one volume. absolutely target that

we of us those. we're to efforts a So of we see that's all we and executed that put to we've focused list of are the those on, in effort each all take execute will on And continue will year. working of year why a list those, we focused, through things some, things laser that have at a execute XX% exit

Mike Matson

with wanted US know there's business. I focused understand. it's I the to maybe I And but But on the ask seems where one in quick there on the international Okay, on then there. things challenges the there's give us like some just update comments. been I been more just stand past, a know

Scott Mendel

so of revenue the same in Sure, of be of range in of to international continues kind that percent growth the US. the because

was So the beyond in within team. XXXX but expansion teams regions that expansion did year a by during terrific XX% also that of current executed of we I in revenue. say The a job, great the we it's well to those kind that XX% really regions though, were had will OUS.

experienced So we've -- but just rates, with definitely same growth ratio, kind before. US that that of high we've keeping up the

a I drive outside quite really I growth get XXXX the lot get you bit think leverage US for as an OUS think a of bit it's, Mike then a able can BCID of I into XXXX, story. it's here, our and kind I said like that bit that us, in as well. an believe of to opportunity more after. timeframe. And there's beyond area and adoption beyond go be part year, OUS a This of growth the that we'll we really little becomes on important earlier, of builds as

Mike Matson

you. got Okay, Thank it.

Operator

with we Andrew question, And Cooper for have James. Raymond your last

open. Your line is

Andrew Cooper

questions, to Thanks the it used and for BCID. of XX% sort mean, of of what you the -- hospitalized Have the any still including pandemic, what presumably through look track, talked first, the chance on when it guys. about because running we get kind patients sepsis, those like validate BCID. obviously, some had the showing placements, on I there, up. And Maybe were to just those think of about of

you et of what BCID, just like cetera. know, stressed you capacity, kind was the underlying for utilization on were curious obviously knowing, So

Scott Mendel

of compelling. Sure, how so, much, you're how is quite right, in placements brought actually BCID, the quoting which many along

is of during If say clinical was was placements those even about during value encouraging, expect pandemic, But would to highlights it it's of think bringing high you the and our I platform BCID thought that panels. our along that it all highlight you XX% BCID value and fact RP the the probably pandemic, the important really RPX. -- the to very

that we've uptake. implementations, strong customers’ many were about wanted BCID been cases we have in strong. on has we were. the this on our turn couldn't been above still turned on done, seen We've that, dealing we Of thoughtful with usage excess to quite we And because what right turned everybody because So it demand on as expectations away RP be far have as panels. the

I is why that areas So really us. of good infectious very, one far of that adoption. model for very and to our in pharmacy in specialists that key what well. the are also or key really we implementations. piloted R&D, specifically, investing within that's We of went experienced It quarter do that is the some feel add, drive QX, as these capabilities, it to competitive encouraging be sales advantage We that that help technical we besides as year. really very fourth BCID think driving QX disease last about whether want a increasing Andrew, we're in should

our specialists And our that's XXXX getting our so levels more of the done. that and like help expected. I in implementations line, the successful level really above product, And already, said We've using the these at we in the of of again, implementations part ones that's in that across that seen customers be is BCID. are investment help live implementing part or they're investing get these these confidence

So we think for set some up we're there. good success

Andrew Cooper

And maybe Thanks. one just more. Great.

think up you customers us platform. or funnel sort who placement. to in molecular Obviously, about, an Just of, lining on XXXX, the the adding Syndromic help were interested did in already likely number place in elevated a already --

what do broadly just in done we a such So thinking like? -- on? that And COVID the of about latest Maybe what think looks the has how what what to view market? more platform the

Scott Mendel

Yes.

molecular value, have space, of Our opinion understand come the -- is even why well-received then during as and its use I far types that cases. we clinical panels. different believe has people to different solutions Syndromic COVID specifically did as believe in very ability different look the a lot -- quickly within the the And molecular. we highlighted pathogens. evidence general, in use to And molecular for diagnostics very -- certainly far case pandemic, the think as the many across evidence was as Syndromic to was and increased many, in use was really

molecular of well positive the think definitely has then specifically, last and based a sub-segments I molecular really year. that had impact COVID on on lasting So general, but in happened what understood different been

Johnny Ek

a funnel placements. of to demand the for us funnel I We project and that kind the about for year. those have see strength for think, allows only solid the continue the And, absolutely the of a placements to comment strong

Andrew Cooper

appreciate it. I Great.

Operator

you, to now over remarks. will I turn Scott it for Thank speakers. Mendel closing

Scott Mendel

joining afternoon. your And thank you support. this Thank us you continued for for

drive Our Thank look we're to to think test updating growing outcomes. molecular continued in better delivering the in that quality and team I We remains enable large on you this our committed future. to Syndromic patient you. progress forward growth market and high well-positioned revenue

Operator

participating. today's concludes gentlemen, conference this call. for you Thank and Ladies

disconnect. may You now

GenMark Diagnostics (GNMK) 26 Feb 212020 Q4 Earnings call transcript