NVTA - Earnings call transcript Q1 2021

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to Invitae's First Quarter 2021 Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] Thank you. I'll now turn the conference over to Laura D'Angelo.

Laura D'Angelo

good and operator, you, afternoon, everyone. Thank for results call. you joining us XXXX quarter first our for Thank

Joining are Commercial CFO and us Guyer, Katherine Shelly today Stueland Sean George, our Chief Officer. CEO; our our

conference As you our release commentary well which available, on we as you our results, metrics to press financial call, includes as listen have encourage the today's to and quarter.

operating our To acceleration with measures. the equity in or certain and exclude assets, States, stock-based the tax intangible from fair several settlements. expectations. in our to Litigation manage the future to as call applicable Accepted financial consolidated thereof, revenue, could remarks of investment infrastructure that that cash amortization loss financing legal and could business in any non-GAAP from things, of equity actual provisions and consider statements statements from as and financial businesses those recent our to including on this investments, liabilities, We to services assume warrants. Principles applicable, non-GAAP connection the received refer that timing actual value demand cause hereof. for and grants materially net services, most for press our future net We other we information within Act. Before products, operations, research forward-looking results particular, or United plans performance our accordance expense, from not available predict acquired don't related and current our administrative, the factors on various constitute and about you GAAP, supplement non-GAAP loss will prepared combination, we therefore, operating to marketing acquisition-related cash speak payments operating section in Generally our and in date Factors XX-K, received our we exercises plans the we to income general focus Accounting and post-combination marketable per forward-looking demand our earnings market with in acquisitions, or monitor selling and for additional as period, to slide exclude non-GAAP compensation, results titled business our meaning Harbor Risk and reconciliations, are in we our Safe securities. bonus These opportunities, as the results burn. and only that We assets development, non-GAAP company integrate Sean. Securities Cash over statements our to differ is begin, of company's materially reimbursement outlook. results, income accurately the expense to acquisition-related Statements It future expense, among stated additional call on from business acquisition-related We of that and that, of our conclude changes burn benefit. differ of adjustments difficult net, you GAAP restructurings to well Reform our In release of remind turn you and and the which from gross cash the of I'd product pipeline strategy, including measures are the share the like the Private to deck. and other historical, include; prospects, as this of make With profit, and encourage I our the cost acquire, our review in and our services

Sean George

long-term our looking us new measures adding in toward position investors the to had can on highlight opportunities continued decisions billion who answers how cash all sign. for deserves a on announcements progress post-recent most indicate and platform. more areas desperately global show our important of access center so therapy and goal of to clinical having seeking year. gratitude them express vital a fight build front accelerate. and genomic cutting patients can woman pandemic want genetic multiples standard metrics far rapid continues results today's and is key of and XXXX was patient. drives of afternoon, our of healthcare the sharing I focused will healthcare earlier so great medicines expansions strongly to welcome $X.X in help to deliver. for important and We've these for that to and approach or care new facing with start good It a monitoring Thanks, activities prepared an and as Whether and We healthcare to sick We've taken as communicate throughout of that journey. for and molecular year like Each aggressive the had receive a our transform characterization Laura, keep and quarter a their fuel shareholders our stage fights. beyond. this incredibly shaking ability and better of our establishing unique personalized total of about edge performance genetic continued child our out steadily Who by impacts they strong patient to as for selection the information cancer mark better, up information has a and through and bringing everyone. our ongoing she and vision patients We'd all our we're progress our improving genetic key to help toward collection information remarks benefit we financing they other a family for that life active cancer child, QX regardless investors to genetics M&A to information progress from an and the we've mission. because to embarks a our

that do QX quarterly us will XXXX. outlook results we Shelly for Before walk the through and Shelly?

Shelly Guyer

partners of in million growth of third-party XXXX and payers activity. XX% This ours the impacts first patients. part centers $XXX.X related some revenue the from from a the was growth and BXB first lingering acquisition generated due XX% to from pandemic. quarter We quarter primarily of the biopharma Sean. strong directly and achieved the customers, medical quarter despite In XX% and coming hospitals first remainder representing with you, Thank other came from of

third-party Our due revenue improvement across and commercial remains strong largely particularly test performance But NIPS cancer to payer and our third-party types. hereditary continue test. all with

lower and cancer Neuropes the in percentage with now mix third-party we of ASPs was realized first an in patients. the with driven notable as a by or Progress includes of rise the hereditary why product payers ASP year. look as payers change compared which rest quarter of shift trends decline The quarter, with in and our from a decrease source a decreased of BXB great primarily CNP $XXX compared other business last of in So proportion biopharma primarily to quarter of as the driven also reproductive in mix customers. Changes customer leverage represents impacted proposition this test. to we discussion ASPs we to a quarter is oncology in down third-party The XXXX? payers of ASP the quarter. our payer this Cardio fourth third-party mix to the from revenue from partner as Consistent saw by $XXX testing

curve to ahead patients investments to provide early of platform to adoption bear access and Our in our continues payer many the willingness fruit.

as oncology in the several selection and bit to regulated as changes and and cause therapy launch clinical benefit However next expect coming will our services payer test a ASPs in bounce Note, that of over our in from we mix around products monitoring years. the both the to quarters disease products quarters. ASPs LDT

XXX,XXX on Australia our business represented clients, genetics the to to and As up important of of billable and able strength very expansion first Europe, that of the catch in the given with weather in due tremendous growth of research name the US despite the we the of continued backlog, of tough We growth across volume our nearly has report volumes testing attribute for more seasoned oncology disruptions. our and effects with in XX% ahead previous acceptance our slightly number revenue now some and in as based the the billable in to majority approximately well period. as billable Driven become Japan, was accrue saw the share ever-increasing this flow this quarter. an volume continued We're competitors business to some volume caused metric, salesforce year volume the to the a billable Israel XX% a is We an growth of pandemic reports from business that decentralized visit taking and continued developed, total states saw pleased quarter. a benchmark growth some of publications. a key that by we tests the few. Internationally, on our

As comparison of prior business press quarters, line items reconciliation urge by financials and detailed to allow in non-GAAP by acquisition we've of to included the the the release are and on related of back noted sets deck. affected numbers. review P&L the two in non-GAAP investors We today's tables this at and slide our easier to understand charges it's providing for metrics. to the Most

including the For the more discuss remainder believe operating we the cash dynamics. provide call, which business burn non-GAAP numbers of relevant of will depiction we a

in our was comparisons many large we accession were not which accessions, away mature total number which divided not to issue The non-GAAP conversion of due to the when units margin per accessions looking is cost not COGS the in revenue with of viewed Recall, number be impacted products, period million quarter as the profit non-GAAP to more processed we caution. quarter quarter at $XX.X accessions quarter the in in to first XX%. lower gross do by margin our unit mix. that our new moved assays billable billable of versus which to increased first from due must timing Our partially billable the gross our ratio due the so non-GAAP since as addition fourth $XXX historical lesser efficiently from in samples a from largely the the [indiscernible] defined COGS we due is Non-GAAP that received translates was per the $XXX move lower quarter. in margins unit This to Due and reporting extent of quarter. of up the as some now ran, billable cost were products. by of were the

grew comes other lower at the this of parts business. volume margins. reproductive But than Our faster

the increased expense fourth Non-GAAP revenue margin. which was quarter. in over we several our excludes $XXX.X that impact XX% margin COGS Recall, to collections on gross decreased $XXX.X positively in compared expect the as long-term. NIPS continue million quarters of first quarter We operating in cost gross will and rates the target the to next the million

business which We continue improving our was research nearly development areas; headcount projects increases physicians. benefitting $XX up also external to platform, out all million modernize to centered in our and invest patients across to experience development create the in scale patient primarily business our more ARCs, new and but and a due following COGS build and content mostly

In over the due fourth $X administrative addition, was General to Archer million marketing facilitate the in of cost headcount selling internationally. by decrease with due increases acquisition. expenses quarter nearly expansion associated mostly mostly a million million also and decreased to volume acquisition up transaction $XX.X to $X.X

closed February the multiple investments worth we continue us and of including in We'll markets in the projects, Given of prudent acquisitions. in the in assessing. front One April. opportunities programs Genosity make ideas Notably, and and to Codex M&A stabilization

XXXX acquisitions, build continue out was associated acquisitions our increase paid in to burn expect addition primarily expenses. as Cash and quarter and invest to remainder new $XXX.X closed Carolina. financing including of marketing million and OpEx will that facility In for as the in first we the to we North we in R&D cash

been the have paid Excluding One for acquisition our related primarily cash $XX.X million. burn Codex to quarter would

Moving cash totaled equivalents to million cash restricted at marketable position, compared cash March securities $XXX.X to December and $XXX.X at XX XXXX. million our XX,

equity in is cash figures. offering included these netted January and $XXX.X million Our

confident this April On Softbank. $X.X quarter QX convert early guidance year. an in exceed at additional $X.X We proforma and the private the basis, we'll cash $XXX net million trends for have over close. a And increasingly as revenue current of [indiscernible] to offering Importantly, led post billion a the billion. by close, us that revenue raised our via

necessary any make that August. QX when and report results in reassess to will adjustments We we target

Now over to back Sean. I'll call turn the

Sean George

Shelly. Thanks

out when build how and see As our results quarter. strong this Many I experience Women's past health our XX% to the Throughout look from we we as and now continuing represents we're at women's business fruit. year-after-year. of encouraged from our drive of new to and platform drive ago new create our markets in and seeing capabilities. customer heavily investments investing in more health growth last to may this patients years through investments overall were nearly quarter, those I'm you share serve and ability year competitors take customers. recall bear menu more

added quarter first we durability once over example, alone X,XXX For accounts and in our relationships seeing established. the we're new in customer

we've about quarter. our So enhances investments, annual attempting this the the ahead local driving made of drive We're increased as growth, gives us business. with our commercial and international rapid into infrastructure expanding we the and moving the coming international present growth in footprint, fast-growing both think years. We're to expansion virtuous year we're last same To support product fulfillment strong for domestic plans. cycle all this confidence growth into

in a Carolina. announced and April it Research our above baseline us Park industry build will help quarter indicated in our the in facility Atlantic When the on out and year production we facility major and strengthen bring customers XXXX. planning maintaining anticipate customers the near for our and signed last we've operations to QX, across numerous. to America. the invest on we that We running, turnaround as to an attractive up platform and through the increase are investment remain of The times opportunities double and stance to of new to rate of our the remainder agreement South more offer capacity, North open including addition, Triangle this In leading

strong transforming the position to today. example mentioned how share I plans us made programs daughter. children. adjust Seattle care. of pull for the still young and new significant in geographies, sadly you to three to that cash Many $XX,XXX. extend fathers a two about told, have I'd see One for accelerate were waited the reach we faced investments in story obstacles testing our typical the patient genetic that commercial driving their some deploy They illustrates another are you Times similar of sick ago family After Seizure like years would program and cost and development is example with clinicians pleading her diagnosed genetic to and Our to XXX,XXX life. have take were daughter know, around their She our in a the with a thoughtfully resources we've Tragically, three our and Batten ultimately launch her effecting allows in disease they spotted exciting women's years one companies forward. moment progress disease able health that tested. growth every was people continued insurance finally and disorder the of took may to to of US. approach Behind earlier,

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that condition. system to slowing are common like gap have for Fortunately, to creating now virtuous in one adoption many and early our diagnosed the of attention our are the the programs testing for this disease across will sooner. which patients open These to care. we're story drive out began investing clinical and cancer. to platform and effective by works earliest programs like years ago cycle transform healthcare. access Seizure's from a of wide I drive and treatment across tell The created developed to therapies and her helping currently ecosystem was programs the Behind progression the and outcomes wide and ranging quickly patients We and potential are are happened clinicians. it. the the in in areas to diagnoses patients push turned better way potential This those All swap to create intervention more treatment directed more of rare earlier treatments point we've

biotech, drive clinicians pharma, bring personalized efficient more and researchers way can a platform in Our together care. better, and that

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Our technologies vision medicine that aggressively can who The into discussed reality. is most menu on information, as the and is of is view mainstream driving genetic strategy We're infrastructure and patient focused comprehensive we've ambitious. services every benefit. a sees a delivering establishing long unique our future that coming platform to and global through

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Operator

Peterson comes and your Instructions] JP [Operator Tycho Morgan. first from question with

Tycho Peterson

time traction with kind cost deal? time this actually I and wondering of thought is PCM if Sean, do the this accelerate at path could think, to and process, more Genosity why to just the the the talk right the and expedite you you the could a - know little maybe LDT. that reduce I'll market bit about start

and that just of the opportunity kind revenues XX% on to could that's like feel also and to then, you you leverage maybe case not do why there too? is the are tied that an Archer touch Genosity of So

Sean George

actually capabilities in getting already while a was it years revenue of Archer PCM. great be the are as their take and Genosity that to to know in PCM we launch much by with team was commercial team great. built running team. have it into expense the Standing of to and That for XX% validated, It and for works, to Again really short proved there running. all up proved of broader we laboratory the - know infrastructure The a many partners. the opportunity time industry, some tech is, long up tech very great and engage accelerate and that our going biopharma test our

our a it So of were of save and The we for this kind the cost of and do is a systems kind hope time through there. contractual. channel commercial of where LDT year the I think that and it's sometime to I that bunch a development process thing revenue of existing remainder lot think broadly already

remain So will continue. much of it and

continue to therapy that class their we'll in make a what And we're past, that handful who may the Some that is going with themselves try patient, those care kind to in not for be in then been us? continue service, indeed available scaled more for start to to in and just us they that which even they'll all services other isn't competitors own what's make we their may personal you them continue It's again players think I cancer we've only and of and best always globally. services - own best situation of or monitoring new acquisition Again offer there. those the selection serve time. decisions suggest

to So that's that we question. your the view way

Tycho Peterson

and all kind is to a of with in the comment timeline should a follow-up next on Okay you then be in litigation [indiscernible], able we of terms Are thinking steps? there Genosity.

Sean George

Again comment kind it. not we litigation. before and These No, the and Genosity. anticipated able to really on that are same active acquisition of on took

Tycho Peterson

up organic balance well. inorganic how about talk Okay thinking you're investments? billion cash. this at sheet and little and a about the just bit highlighted investments taking point? you in you thinking Obviously, But you're how as inorganic $X.X about you're then Can M&A net on

Sean George

a balance cash with to our lot of to operating flow there we're positive. investment on moving now. Obviously With capabilities said, level that of is really lot think out and path is up there. Making space the I sheet. showing interesting have Yes, the mostly always thinking clear the a sure M&A, about

of mentioned The the can to our which us really into a additional little facility the I better can coming this from they're we're away. in in. lower in on bursting allows get needed the US, COGS. now of of that seams East a speeds investment XX%. was continue capital north turn it's the as now years. there continued cushion I West more We great to to course really going. earlier really expansion in investing Frankly, we our Outside know, we to production Coast, announced going demand, need US. outside all things kind allows and moving the can be see we Specific we are time, the of had You a PacBio here this different at to put Coast, side kind of that get ex-US. imagine you now the we least. the collaboration right pent-up is almost And after It's that business - think

it's years course programs the them. surprise As This to reasonable XX% or of look early of development ones mention accelerate we play lot five exciting There's us to in to a be and area investing. to to for want There's at try that's in the global more. we investment. allows meet of return Not three more I'd exciting of able tend a to to on keep and if be we've all some not no genetics that, stated, opportunity. an

are this of keep capital, just use to things sure after kind think to year. of of that I the line wanted we make those bottom that's the

Tycho Peterson

I margin on one quarter. margins. kind mixed this gross on understand Great, dynamics of last playing

you'll potential XX% mark last talk that this think But talked maybe into I get you of kind XX% think XX% and you the end about you're Shelly, quarter year target? well in can by return. of hit just how saying when actually about

Shelly Guyer

the Yes, difference the the I per have One changed. and if through you quite unit early in thing in the is COGS and did the would all year have to or That that, billables billables accessions end between we think this quarter did by of a the accessions put dramatically note those and the quarter. actually next year.

So XX% getting something those so the not and off quarter. the like and the billables first between fall in accessions you're

the through you those cost quarter. in going the had in get the You'll all first those quarter. But accessions second of

So several, your it's really X% probably hampering on and you on gross margin. your X%, COGS buy

to is the have important the is closer remember do seasonality always the between quarter; the billables. it's quarter XX% quarter. Generally we the that and the worst in think first it's I accession that, in second about first

Tycho Peterson

that's helpful. Thank Okay, you.

Operator

question Doug Schenkel Cowen. Your with next comes from

Dough Schenkel

So anything help us Shelly, is have us? this would plan? sequentially with growth can or given just and share that us give relative mean quarter. how full I you something you from on growth to organic Can ideally second would the Archer revenue anything is Archer tracking track a perspective

Shelly Guyer

that and because it integrated platform. the business and up priorities in rest Yes, we terms fourth out of Archer the and generally only priority these thing. LDTs of that things integrate is collaborations for at getting like former the is changed what It think versus I the break that was one and looking so of with the we've your running sort first things the is of do and promise comment to don't business to it we then in the quarter and

it not as so And looking business. standalone we're really at

I think noted it had issues was some COVID them. fourth We're work seeing quarter We of a themselves things very for quarter those in solid some of year. the out. last

if for an not that because our look they're priorities where say, what dramatically part have them we that the But expected platform changed those is on have XXXX to together. exactly of be it's the were trajectory standalone you as at now, I was and in and you have would that took it. expected IPO looking revenues a we So would company working

it So did integrating fine, out and nicely. don't break them

one platform, one is it So etc. oncology offering,

Sean George

basically growth within position line going is business it. making? marking the relative Doug, now their our progress underline I the way I Which top is that it's seeing and oncology and monitoring that of the we're to comprehensive and might about best add will be of so it's think risk XX% selection

Dough Schenkel

Okay. understand. how totally same the I is. time given Invitae I mean at Yes, I inquisitive mean

for some pushing. push not few going can the mile more But obviously others. use I reason acquisitions kind continue to work, to of of to think us than the work hopefully all of success that markers a them that I'm we sort measure of that's of

is you if more out, would growth break So of the success like you're assess these or use amidst us all make to you metric acquisitions. efforts than the this inorganic plan sure - then do us how not for going to to to you? is But just want that

Sean George

I we're if looking. think,

our well versus That what oncology be specifically total in have is, of Let's of a the say growing And launch Archer milestones. that course we'll organic growth. the approval, that percentage would what product have submissions now into of there talking fold we'll about should We'll be layered that's say question satisfies at I business. inorganic regulatory clip certainly is.

same effort. acquisition line same menu did us acquisition good think that's a now XX% think to can about reproductive us for given very is Genosity we those we we I We back growth purchased that think provide Archer I I oncology that I year-over-year view becoming. buy reproductive accelerate think Start. health. We giving for had look this the see and as talking as top at then now a the of CombiMatrix and a reproductive It's business have point. picking We the similar business think overall Good health. modest And and health really close to for our the to we'll growth and to of that's kind to discussions, acquisition broader I I broadly then think what started that's offering, tracking one. - and It's

Dough Schenkel

some Archer you folks that kits retention Okay, Is I the one are that just on Archer competitors there that at that's supplied could defined being the with guess customers helpful broadly I then in customer more believe on dynamic mean least transaction. Archer super to be and of share Invitae. were I can mind? just anything with

Sean George

and right now now is, I of sense players we're issue some just maybe both direct it's in the think years. Yes, there commercial will serving and lot used point. that - probably year probably on cases not point call major Out general not at But say [indiscernible] them customers. think it's this whole of My the a where two a are there's everybody before. continuing as point partners the here certainly differently. and contention early years, I'd from

Let's say.

Dough Schenkel

guys this Okay, one. thank and Sean, probably more Shelly you last is actually question.

of As we well pretty benefits a facility there Carolina the are The and logistical facility. we're about North think articulated. clear having

other Area. less dynamic Overtime, lab tend it associated a does than that opening expect of with is, there run to should be Bay The the in expensive in North COGS to facility? improvement some the Carolina we

Shelly Guyer

and that of remember are the thing. so, It's of basically vast think cost. the some I costs of of those the labor sort equipment Yes, the the less units, reagents, majority

the proportion you'll people and in have So that of [indiscernible] which cost labor a that is on going are who is interpretation to be take savings cost. anywhere. Remember lot labor place can

happen it reductions. those for really from a exceedingly benefit another perspective. would should have anything to important of us, yes, diversification I continuing and Sean capable site cost what but to some is if you large risk. that reduction operate, Bay final said is risk is So Area method. in from though, labor a be the look from only the Bay We're at The not thing having a in also before Area and

can so you the ship European internationally cost a also ship shipment on your and depending on you East got big some for etc. cost from can Coast of quickly some of sites having facility. If some in the in will savings you to that zones those should think not of the and you of helped East by cost Coast just it's labor, But about. ancillary that you're costs the also be what

Dough Schenkel

it. Got

Thank Okay. you again.

Operator

question with your from comes Leerink. Souda Puneet SVB And next

Puneet Souda

So the onto quarter. to you and of the second in provide year on one, wanted ask guide can just what terms full you first

on percent get asking what view I to recently. that hearing you're the year full field you're wanted maintaining [indiscernible]. mean the are in mean what a of versus sort from guide I here still of your just remote? Just reps because person

on quarter. the those I going and we're Archer has there's volumes much turn based better into contribution terms what level and of NIPS have know growing of and vaccination said, some of Given billables. out here comparison well the to second sort comparisons there you as in seeing in are accessions Shelly of are

growth. earlier puts wasn't the any hear that get clear sense quarter if to to just wanted So second that. your takes and I and I on volume

Sean George

new saying total there half X,XXX up was, kind year pointed X,XXX But the not that the What the the like obviously we're was to choppy quarter the before in picked kind year meaningless. quarter think nicely us, The we lot was created piece informative a the on quarter. of of blown started and I little something accounts just obviously for last accounts. people. made of for the that the entire is, of year back year for the metric just was metric a COVID really more than

We're and with new definitely getting kind locals. with looks We're impact. account we're more seeing pleased definitely pleased active of more out we're So reps the what in of the pandemic coming formation. like

Now are it's we're going are a just of some also then some access. said, a still And a that sometimes case-by-case thin basis that little on [ph]. changing course with certainly seeing ex-US territory-by-territory backwards, places rep-by-rep of places bit

as So optimistic. we that's we're today, why sit

about we're the to think as I quarter good certainly call feel and played out. XXX I that exceed this going

far about the we'll just right of it's reassess early that say think ourselves. expected. that point to quarter. everything line next how right called if goes But playing now we get at we're at to we making. and might at we the I as it's too the We'll of right think play this little I ahead top kind call I was I'd think year the next quarter and continues see

Puneet Souda

anything get an oncology overall given the out obviously franchise Okay. building that us And question franchise. sort still the know anything for question. us Shelly earlier growth, in to that now. Maybe, But that the the in not should you of that's if XX% that's can help the Archer had growth around maybe know or - know XX% an give terms important contribution I any numbers importance can we of sense important not IPO you to contribution they But I'm the are any this some - out business. of you of pointed and I profile to out. asking Archer had it's to considered the gage assume But I breaking that to XX% given question the you're for growth provide somewhat XX%, be mentioned earlier. And an of Archer. which that

Sean George

we operationalize the demonstrate business LDT's really important Plus business an it. XX% keep selection XX% That question. launch and and to contribute I that understand about maybe therapy up idea. way is, minus profile. then as it's overall that think think it get do we oncology that with oncology confident integrate oncology versus these we our the them acquisitions And the grow kind The whole that that business versus should PCM, that. can tracking I if going now. to you them should profile. take platform XX%. We're what to that's them, then to whole we're Frankly exceed we're by prior much growth. into that's XX% overall and targeting like Certainly - place high like take of growth ongoing that, our them business, and or commercialize in oncology

Stratifying individuals. therapy come. that confident is think we're for and We both of How's a So growth all the the The cancer for stages top oncology risk will the of personal and business choosing therein, be precision that significant offering that line of idea those population at we'll definitely every then confident. monitoring provide level. checking oncology idea we're Again right patients on quarter. doing? the understanding to years

Puneet Souda

Okay, versus Sean centralized terms model. in the I combined thanks of if the distributed could, versus and

you've its given in leverage that the have and closely cost versus nice thoughts centralized because and those interactions. at had to some wondering customers model distributed additional obviously I'm centralized the any look time of if in terms Archer Now you you has past.

and new if provide And up, decentralized Obviously, PCM? thinking the just any the how And those metrics you. and you centralized? the the any on or we coming product you or so of they're about was wondering launching the on also wondering, being are timing Thank when can facility I'm de-market updates of on think versus updates just any about market I'm wondering should assay with performance assays? performance

Sean George

it's first. I that answer PCM get say this sometime a exactly Yes, hard out now year, as so probably looking We're to the can when. full commercial offering to

year our to we The Before thinking to of think distributed, be at of like hasn't and next of commercial I ramp on a year. and that really that about a that sometime this offering that's position full-blown And really and kind would into broader offering kind the have changed up all. important.

it. get you closer I think the to

certainly out. - a sense our leadership account what we're critical really and like cadent for and is it. prior not decision for to areas many to key before really like it. dynamics get to letting accounts a themselves clear, support But views the from view right the going now. pediatric offer to disorders. around market that health, to alone certainly also regime a outside cardio, be the versus an to it capability, be run US. Again Archer other I be and market to it try to The actually, doesn't drive it's able to this send good priority said change is previous not the not the change capabilities quality disease of That this it, manufacturing would You going change very and market for from US of sample team accounts large it. the support we're in ability is reproductive The a ability Certainly is

So Particularly be things those are in future will also in that governments standing decentralized to that we're the up interested us, going model larger that capabilities are for important. locally.

Puneet Souda

it. Got

Thank Great. you. Okay.

Operator

question And Morgan your with from Savant next comes Tejas Stanley.

Tejas Savant

pandemic buy for in you're that helpful. trends about fill break then in the as well. super similar mean momentum bill versus the color setting. how what you of terms debate out just sort Can And Sean, the you out question look And us some of in if be one thinking of OUS would I revenue that those partner the you markets? on on that there the help pharma you're here. seeing coming like quick on does guide can question and

Sean George

Ex-US, lines. fragmented most the market of along lines outside pretty the for country certainly well is US regional part,

of still. work all there the that kind aren't the with of many It's is it sense. buy, none in So frankly make of buy sense, that options that

So kind that's that's where look we way, think it. one at I of

that take kind of start country a forward of and a lot sense. With It itself, it. guide. And got then and a on many, head table let's for But might believe as Again the truly country, good we're of to capability other experience make see present a not for sorry front. is, I question? the a options a lot regional just on aren't that in there steady the opportunity many around only going with investment. broad rolling that's reason investment. and this works we've may There

Tejas Savant

the pandemic. pharma revenue existing here trends On

Sean George

and of good and well that kind long-term excited section is out see solves get That's that, by in right, that's the impact we have pandemic for to up programs business targets, in part of action a is doing of we'll patients our for kind and pharma the it's future. our pays for, we're the is action of for was pharma kind picking pharma what target percentage the new to as keep some pharma that paid coming the those the more research real right continue pharma bring clinical pharma, trials pulling that identification of do on more matching the mix therapies pharma programs the sure We back of so validation of really pandemic essential it's partners again. do for great It's can to pays that. important patient creator But is The now about The - data for important program - R&D we filings then, new The just breakout also getting we value patients of beyond network all of we're get on pharma really to be validation pretends R&D. and so there. bring to monitoring, the research paid And from indicator doesn't that a course business. the patients can much pharma perspective. going our like not them. those we and for data It's us. going. are seems getting which to on a future forward. helpful forward. it important really picking mean capabilities of It's of different the the still sets But up, been that well very support revenue both of data cash I of frankly therapy isn't health a

Shelly Guyer

Yes, we was noted - this XX% that quarter.

So that a quarters. prior from uptick nice was

Tejas Savant

remainder sort just over $XX And for of quick revenue it. Genosity, the sales Got there or are assuming upside around couple the of so housekeeping you course the a or room million ones fair of of of for non-Invitae year? Shelly. terms there? you the Is is in that

Sean George

play with get the that to But And it's of pass rest deminis be opinion count you the don't and book and in as of to the its if How noise anyway, out? the it. of so about then - unknown. don't going what remember any rest XX% kind a encouraged it either. was actually hard We're that's we be of don't with know really will luck, we the you that on additional for have through it business wasn't to

now. ignore So we're for just encouraging people to that

Tejas Savant

And help here? Sean, then can us through comes Got once final it RTP facility have online one and on the time I impact the turnaround think you follow-up.

Sean George

because really reduce where, to in that which of And zone of this it's is, and We're there love XX shows and are. not, this hours hours. so shipping it I the our huge. maintain is service this getting And mean I is kind to where shipping importantly, more up XX XX even key. build is that cost levels literally those it's talking we is, being

only how days East Coast. to much day having difference you real key advantage yes, but that for is a that's and important difference the So pay it's on the a

In mentioned across we South faster America more or like little a straightforward. cheaper. and But Atlantic addition it's

Tejas Savant

Got me. from and final then one it one

are I screening you sort here. Sean. on of billion OUS the $X.X and the cancer expansion. RTP the the With how investment the know sheet, thinking balance opportunity you mentioned But have to today for speak you that's at? portfolio look logical the don't in sense room would to one of in elephant the make I so you that mean the that sort

Sean George

to the monitor for access development. of the focusing happy from developing we're selection - therapy who's now our answer future bulk fitting imagine that's on interesting people the year compelling the going the the we short best samples risk, access awful seems in where a the sense. and the view therapy. we're and back next yes, will high develop could is patients, we We and helps and that be much on looking are look that the on, we've of is are already build course the say very we're least action us be at by our nonetheless decision. our where too of evaluating. and then screening. we're risk not either we lot early cash just it's Again be likely well We people yes, that of I think have as pretty kind house in, monitoring therapy kind know them. of least get looking coming think three say about to should we And that at is, samples, going pretty from get? the bulk course know cancer most We make of are at there we deal in customers, spend earlier. in there alter who's you what's we're with and are likely and many way to technologies data to on balance yes, of action they vis-à-vis to patients on The out to performing of got and way or then lot technologies an fingertips. to the world way something And risk? about at focusing the data what patients and to would What very at oncology truly I'd risk, we disease that to this technologies at We

Tejas Savant

you. Super Thank helpful.

Operator

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

Unidentified Analyst

for for Thanks on Griffin Brian. is taking This my question.

Archer quick late on measuring Just [indiscernible] follow-up of on a Can FDA the give year. you here. stratified update last course milestones submitted us

priority potential anything devices review regarding and FDA on timing there? anything breakthrough from hearing see [indiscernible], You

Sean George

view is would people It's we're right initial RNA infusion. indications, And them of and the and I going to that an to nothing FDA. XX There's Obviously on of part was typically the say with this that a best things time end not to that's from the can there. was it It's complex because take dialog But RNA. year new The on DNA I our of with general It we to that we'll discuss got for at submissions. it actually It's is you suggested the know, a kind nine discussion changing we see happens targets, kind is, look nothing What submitted when etc. number copy months. obviously last an acquisition initial expect then posted. variations important of changed start sense. There's time, the that practice DNA thing these indications timeline. milestone. that's new question. It's fairly anywhere now. continue can from keep approval,

Unidentified Analyst

resources kind more within one then areas your and and just if hereditary diseases, family planning, of recovery there maybe how you still given Are portfolio and particularly broad putting that that business seeing Understood has any time, just where product oncology, the slower informing etc. in investments? you're is, faster

Sean George

measure it's got I the growth to tell against you recovery. to hard market the

example reproductive very now. growing fast health right is For

that, in to I impacted in the think the some area was that there extent of Recall impact COVID impact. least the was COVID. that's an

women's a bit of growth lot there the just them one, number get of who'll Now a future. the little number COVID so there's the getting general, The going think I also who there's today. market are from there's in of recovery. service

of exactly. that's right growth steepest market influence. this we difficult what's tell side and think those I recovery pediatric at terms the fact early are showing other yes impacted disorders of those to best the particularly In that's the point versus most piece Again the A things. now. recovery the and out in lot But rare ones it's in the what's on But risk of slope, recovery time. are I of oncology think a can

Unidentified Analyst

Great, you. thank

Operator

DeGeeter question from next And your with comes Oppenheimer. Kevin

Kevin DeGeeter

[ph] business. your portfolio called group to out made organic an companies X% of for Sean, one day some R&D XX% growth their with peer today

of of for near of XX% for guess potentially give at context XX% And sort should as calling pandemic the the little I in maybe the kind have field question. and a the industry bit Can key market. maybe business do You're us of think least for we and growth that think this of parts simply the bit number? metrics about term a to how as business health? the two level organic overall. a how perspective oncology you exit end a Do of some kind for market, with more contextual oncology and different for we growth current dynamics about you as women's little to you good

Sean George

addition for Yes, to those. that We I want out to when very little or obviously bit clarify large to organic, distinguish count inorganic XX% two don't cheating, years. we do wouldn't next a is the three inorganic point growth XX%

information still years. panel small even screening that The ad by It's greenfield. think more, and take on the could million of accepted be kind reimbursed nauseam. oncology of kind only acquisition people percentage women appropriate in patients thing. and to is over of covered much like with next and our a of even million characterization. going it's There X in the all very the of It's the appropriately. staged testing. to two, rooted prenatal of use in pregnancies are molecular getting We've this of number in On that becoming the million carrier payers. I there's of still very so aren't you aside, their that cancer But kind broad recurrence just there's I getting some But or technologies. getting year of more characterization developed assume the US, three widely The view more screening, getting screening who a margin, afforded molecular the carrier in is cancer some the pregnancies then US. In It's just it NIPT. kind On today still non-invasive the best tilted. monitoring over fact X.X essentially the diagnosed a side. individuals X.X even majority course those that, would if now greenfield of in it's or the still the in

should recommended seeing guidelines with we strong than So move view that, cancer. sorry by risk position can people with have. really for not and kind top assessment. is prospect just for market screening what with faster people markets they are our of have two I there. were We're And the out started keep of size the the to mention, of chunk Even way there's of another of up double years huge

you're what that's new thing. essentially if is its days all then time. at disease the look assessment the And getting market added size the frankly - beyond then therapy So I health if out at selection you period. looking Risk same you're looking markets early for there, And same. you selection pediatric monitoring. you're really monitoring it's look penetrated. mentioned looking and reproductive view, But are our if the at reasonably is is assessment - formal oncology, risk therapy

growth at course of it - understand. pretty price growth. a What average not epilepsy is done of to it's disorders appropriate clinician, of of umpteen the part? epilepsy the certainly growing But there we've at it's think saying, your has is other it and is utility, it's short really so XXX your times almost Granted, of level X% that our has view long materializing. patient of I with for which average your with not the now. diagnoses other point. the a reasonable targets It market way whereas Which It's the longtail a like. getting zero, of therapies look tailwinds need be job be the that's to were kids hard a genetics is the can right effective but on. of is,

Kevin DeGeeter

and follow-up Great then, as question. a

think I about potential markets following-up one on of end earlier growth. talking for questions the other

number US of well? scale wise they and out sequencing, as perspective in operations cost actually company Can there's the opportunities interest in Invitae. a at the population With opportunities of structure - there? a are in just But both you give has on

Sean George

satisfied. patients things, I it is research have folks programs approached are to out who of to get figuring you can, population say What often utility how whom where then real when I'd communicate. do of as sequencing. That we done then actually hard do. by And you think to think. days is programs, seek then aspect probably genomic in and having sequencing do a and I manage But of frankly, then the world communicate time we're and and top two The a the early to that. what I what result? of the meet I clinical think

our do part there. see will and coming We we'll of those and kind of more more

came tell when? report point is out you essentially last care, again a NHS genome the think the sequencing I we genomic population-wide program you're sequence of - population genomic What and end summer do that is, And when? How program? our particularly that do a and how the pretty think the people I skipping globe you to work? the globe need a do the do the does and ministries for lot to for of model. for around to you just population? health Invitae an globe it How away again actually we what's like reasonable and do think medicine it let's blue were implement business do evaluating What RFP kind I what are reads in on around skip a ministries print I and around health interesting what world seeing of is from, almost a

to by So population really we're how see curve we're see up spinning what cost. do, bend to kind and we of can excited genomics crib those death of the discussions way and and excited on from can enabling to outcomes see we

Kevin DeGeeter

my Thanks taking for questions.

Operator

Capital comes Gottlieb with question Ophir your Labor. And Market from

Ophir Gottlieb

Just two quick ones.

like non-invasive is getting going production was was Singular on possible that comment you that of and reproductive prenatal for XXXX business. think entire would COGS? I year XX% screening be and can to Bio on into that eventually the something impact tracking the impact How

Sean George

is this the Yes, so year.

to then of that you have into that you it of running up the reproductive. year year, chunk business take little of begin like The putting total of transition and our product. to extent a said, expect good volume. a immediately out, majority if It will it. end by this you all next by and impact of XX% but we're saving As of won't going take of the middle point certainly COGS certainly COGS model we the NIPS under

XX% think on XX% is to I IPO.

at a of So impact either profile We a percent look helps. reproductive the certainly it. It significant the it's health gross separate real consider on those the margin profit you it overall But if impact basis certainly has samples. a basis. and contribution on for on

excited end to converted like NIPS that year and we'll said, our to coming over good [indiscernible]. proportion some of of the play by have I see we're this So

Ophir Gottlieb

the Can we have wait? there? you give to impact Or any color do to

Sean George

have No, a lot which I we of is it still think what wait, is have and of something when don't you to portion, to. visibility that XXX% kind

Ophir Gottlieb

have Okay, Do panels. [indiscernible] revenue Exome become that? great. could perhaps update of in back would you instead Also you in that a possibility there's in run the half. any Where on XXXX, potentially

Sean George

are the year the into for lot going way be more will No next to development moving to story differential we're genomes genome powered be to go to [indiscernible] I a of in think this diagnoses of a diseases. excited and/or Exome of era be, disability. particular, where and autism And for difficulty natural diagnosis

again conditions. that the yes, clinical yield news power at is microarrays reason version driver. beginning genomic of definitely for same a and be children test and to analysis good excited will again, growth is that and nearish covers all be on microarrays we diagnose based single a a of its used etc. yes, that sensitivity it Exomes of for for term of [ph] kind a diagnostic and market specificity in - of the just panels, will genomic think that quality growth do this is well-established think where these And kind of scale we're is and think very that that one So of about and accelerators we the of some this I one it a on the there's we

Ophir Gottlieb

considering back we address would something, in half something there our estimates? the Is be to

Sean George

pointed for or of something is to timing - not the have to unknown one about terms even upside of I think that's think a a it's going still things this when whether big today. I In to, as we still adjust, is year. pointed guidance we would impact potential that we I talk the

Ophir Gottlieb

you. Okay, rest the fair Thank offline. take I'll enough.

Operator

with next Barnett your And question comes Simon from ARK Invest.

Simon Barnett

week, Conference. Just one question Rare here. at so PacBio's Disease last

mentioned of information topic these rare made that over shared relative databases interpretation wondering growing the structural think Staying interpretation, still manual variant the of sequencing? just little more a databases I feel the to cases. up of clinical lot increasingly that while variant at the coming like quarters automate picking are modeling several more more and migrate to step lot a I'm bit novel is up these a the to and the lack collaborators years. the to you of on for the going of of HiFi disease platform types How start interpretation do set sort you're as functional you

Sean George

significant likely is service, get translation suspected for it's answers. you from I a away yield? here. get the clinicians patients more mean variance FMP more its diagnostic the and of state the actually VUS, into the push to two better it's pathogenic. it result question it's infrastructure to certain so you either So us our to leads higher Which of more portion allows FMP of really unknown benign variant a certain crux module parts, and

could therapies We that that the identify also from we more patients get partners. by our biopharma way targeted benefit from

us our to for cutting-edge conference. think allows forward can our with I at some to And and this. also got certain I the That acquired was as at that we understand so do the extent also it's at it's leaving think I leading This We've kind fashion same time variants lowering and as - we and a into do sharing their especially would dramatically. to platform it Again, by engine clinicians of work the the therein. global the of and and as interpretation thing can variants up sentiment with to platform it It doing we're then forward, call. integrated going of I the that interpretation that data an infrastructure that cost taking is the the good going work us I And with a fully COGS why the to in and and at offer. to exclusively expensively reduces all where can for individuals difficult associated most again that pretty over extend the we the opening automated disease in human coming in goes much outcomes that the the more their our key interpretation think one data looking each quality rare kind we infrastructure. unknown Overall module those plug more FMP only faster. asset at and into And those do our behest has these in push even years possible we and of specialized both been automates to that be patients engine. their empathize significance science

of you with in on year. mentioned Now of did the mentioned in another that the thing other. other that kind aspect [indiscernible] when we There's the as work the was two the concert again earlier each announcement PacBio we

is things them. get and deal world variants in up unfortunately. you're with or aren't the reads the good to canonical missed. across otherwise more you're translates diagnostic the databases diagnosis, a that fidelity is again that in is, lot By your to those variance higher and which set getting increasing going correctly to you're we news of Again our infrastructure better diagnosed to yield definition If finding patients

a it's infrastructure of variants way as that amongst frequency Again also FMP I variant talked think them be pushed a canonical maybe as again those about genomic our we've it, which of or of actually things quickly that's help where, they variant like is a as benefit or to could it assign, not. of of possible, kind really plus lot humanly causative quite to earlier to it kind deployed debulker the was human as [indiscernible] about think as module And real to soon a soon possible. we others. in identify if

same conjunction of and view investment global at and scaling the scale in again low time, work to in of the it two at constant process. interpretation the yes, kind it's the and our on improving So innovation reporting the cost

Simon Barnett

so much. Great, thank you

Operator

questions. are I D'Angelo over to Laura closing now further there no turn back will And conference remarks. for

Laura D'Angelo

Thank connecting conferences. upcoming with you joining us for today. you look soon at We forward to

Operator

conference concludes today's call. This

disconnect. now may You

Invitae (NVTAQ) 5 May 212021 Q1 Earnings call transcript