GH - Earnings call transcript Q2 2020

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 Guardant Health Q2 2020 Earnings Conference Call. [Operator Instructions] I would now like to now hand the call over to your speaker today, Ms. Carrie Mendivil, Investor Relations. Thank you. Please go ahead, ma'am.

Carrie Mendivil

you. Thank Health for Guardant June quarter financial XXXX. XX, released today, the results ended Earlier

received release list, this like not you've If news added e-mail investors@guardanthealth.com. the an to or to company's send distribution please to be you'd if

to uncertainties remind results laws. Before that differ make material These materially that forward-looking statements management call or meaning the and you statements we involve this like within anticipated. during that of those will actual I'd are begin, events could to cause statements federal from risks securities

Additional information the issued Statements press regarding these uncertainties appear Guardant risks in section in and today. release Looking titled Forward the

whether or For a Officer. to to required XX, by in Exchange intention any because its that only revise Annual please forward-looking company's Report live as over the more information, as like on time-sensitive the XXXX. that, any Guardant's or Commission. obligation other Form Except filings XXXX, Risk and with or the description, to of Securities call This December see Factors and XX-K broadcast, and law, is section Co-Founder I'd call otherwise. ended future the turn information accurate With the the Eltoukhy, financial Executive list contains new of complete X, conference disclaims August Helmy of projections for update Guardant and Chief or statements, events Helmy? year

Helmy Eltoukhy

our earnings second Thanks, Carrie. XXXX joining and quarter for afternoon, Good you thank call.

and spirits and we Bertocci, To I in ramifications start, me continued of the is today Talasaz, Officer. pandemic. in Financial the as Joining our hope Chief and good AmirAli the President health Derek is face of our everyone Co-Founder; best

second which importance His patient for brain face and lung nodules, And these was a few data tumor. setting, than while challenges, the biopsy brain but space progress not have created noticed announcing the his will cancer new the a across assessment was advanced our of oncology histology MET me the quarter frequent various launching degrees, review Indeed, skipping confident the biopsy of brain make matter the made this varying of contained promise awaiting a were biopsy affected of following quickly from decided suggestion results. X the of of The new headwinds was impact suspicious have still our exon aspects a and treatment. said, oncology result, I these COVID-XX identified Guardant That diagnostic in for during patients coming during stages on of the GuardantXXX business, the our Not business GuardantXXX too past presenting his expected, to given continued provider alteration. substantial our and months our in genomic to of bit. in biopsy brain of brain and platform. presence XX partnerships As LUNAR-X team to surprisingly, sent ever for the the ongoing to for provider team values, met testing, has to platform today. to more assay, despite will GuardantINFORM of is call they was oncologists for lung fire, able deemed nodules in environment. and a liquid community of paradigm, The challenges capmatinib their of the needs try The for lung highlights commitment liquid with the surgery speak, lymph in the they with XX-year-old the to the a to demonstrate these biopsy oncologist transform sent and I GuardantXXX initial risky. an was story. with this patient nodes. but practices first Unfortunately, our suspicious with most the ahead line off tissue genomic at so lung time. pandemic to and start of opportunity a this qualified were is at the in this posed the met platform Guardant address the select off Recently, his serve delays does needed symptoms a pandemic. have and uniquely a result identified patient patients the are fire procedure workup precision significant extremely story consistent to colleague, and Based a to challenging care, oncologist presented addressing his brain due as was the the proud user. and I'm shown a The by only in dedication as fuel that how urgent patients performed. this more our new man

early our volumes about the volume we were exiting over the May, begun to our Turning On XXXX. XX% with see clinical business, to volumes call, our in we had level I the clinical XX compared slight second quarter the growing of quarter average of of shared Clinical to revenues by first the from the to of uptick GuardantXXX XX% quarter million, early a second last compared second that U.S. ended quarter over XXXX. samples points clinical grew first XX% XX,XXX $XX.X tests April. earnings to sample down lowest the weeks. for in And

to of consistently and industry-leading to We June the in into to clinical volumes days Diving was saw throughout improvement to less. similar the deeper team community in Through levels was compared are our hospitals volumes from or we the setting. quarter into in the report X for continue volumes, with more not May quickly only growth recovered mid-March prior uninterrupted our COVID-XX. to time, clinical we pleased this that but GuardantXXX able to maintain times academic difficult see impacts exited turnaround and able to maintain operations, also

a saw telemedicine. we shift towards Additionally, rapid

pandemic, the virtually. just telemedicine, with Before visits visits very oncology of percent few performed used rarely a

to has to reversed itself population, extremely trend protect this COVID-XX. advanced from an months, patients, few past the cancer Over exposure high-risk

been especially our with physical offices result, that liquid mobile to the fewer new phlebotomy visits increased services factors and coupled have biopsy of digital benefit when offerings. and oncology use diagnoses, As there a fewer testing,

cases are encouraging, we of term. clinical in resurgence U.S. we across the near likely trends end the regions the COVID the a the recovery some remain of of how and through is have path Since in seen year. uncertain unclear may wave these from of June, our it's of believe the the resulting end closures second impact a that While to pandemic volumes

our in of revenue development Volumes Turning to year-over-year X,XXX business. growth by XX% $XX.X year-over-year XX% to This services biopharma counterbalanced declined was tests. million.

have detail business. to the Across give unwavering cancer serving pleased few paradigm: the further market to commitment with liquid we minutes. genotyping. be blood-first shift AmirAli genomic continued looking market to to payments label. the types. will believe patients a in biopharmaceutical paradigm second, shifting XXXX, all achieving coverage; Medicare a we a of patients On biopsy forward solid advanced see the FDA demonstrating the profiling, to tissue with whole, lung end cancer settings key we remain Pan-Cancer approval accelerate the are who the we Pan-Cancer the profiling treatments. finally, GuardantXXX tumor for board, and from remain concordance a advanced blood-first our cell critical our in receive At will we and between and the outlined and benefits to that began approval will with catalysts first, X testing; cancer of FDA of to of In non-small for third outside Medicare GuardantXXX Pan-Cancer increasing quarter, We first catalyst of life-changing potentially of to wider help approval number guideline-recommended adoption tumor in

have by work conversations medium the Medicare reimbursement Specifically, to: setting; with with coverage; momentum clinical biopharma advancing in companion slow been improving physicians to long we business CGP. expect to opportunities and and diagnostics approval increased further over private through with GuardantXXX of the adopt for the term, use payers strengthen advance FDA to our extend existing who

continue believe the we Guardant the advanced of that beyond unique those to opportunity here will ahead, in to patients stages at disease. we us have well serve allow Looking

few period even cash, this accelerate our program million the securities pursue large equivalents us. the proceeds, our that, across incredibly quarter, follow-on and intend of front efforts my in of raising call for total organization to cash program. our LUNAR LUNAR With we business as the to market turn I company. outstanding development use We and $X.X in marketable reaffirms of and $XXX and only biopharma belief to out last a funds a months the I'm AmirAli During approximately over the net more proud bringing stronger billion. on opportunities will come we now completed detail to of will our these our offering, that

AmirAli Talasaz

and Thanks, your Helmy. families and healthy. are I safe hope of all staying you

our for Turning a as Helmy with first offset volumes. testing to CDx lower services, volumes. had quarter business, sample by mentioned, Starting strong development we biopharma biopharma our

always on our noted and earnings lighter volumes likelihood February, flows of XXXX in half the be biopharma in our of first anticipated in year-end ebbs the would call, that business. we the year. have We Back biopharma

testing In samples addition from and also biobank the prospective anticipated sample COVID-XX shipment in clearly has timely impacted these of studies. studies to the fluctuations, retrospective

to next the biopharma volume. Looking to may quarters, ripple the ahead couple testing that sample through effect of of COVID-XX expect continue we

lung July development XX are amivantamab, speaks being XX% robust progress with strong business, through non-small the the and partners. activities companion cell However, our EGFR-MET which We our CDx patients mutations. partnerships. GuardantOMNI. continue biopharma recently with robust making cancer In insertions, EGFR cell EGFR cancer processing, from growth partners, our CDx future treatment comprise bispecific our especially lung Janssen conversations exon for in demand which to announced an for see experienced studied biopharma product Conversely, X% non-small with we with patients in to the in investigational we sample using X of interest new we antibody of diagnostic early to

types with CDx partners broad penetration are target from to of the value day find first elacestrant, are and of the first approval. Radius support comprehensive patients to encouraged Health breast week, accelerate uptake the our the that therapies these to We our testing in program companion And we last of collaboration for these of announced recognizing diagnostic commercial cancer.

in of metastases are disease, the overcome liquid mutations, bone including by breast biopsies of more advanced help biomarkers, actionable ESRX GuardantXXX Radius in studied prevalence trial. bone which cancer being challenges high identifying biopsy EMERALD the can the our Given significantly

the underway. pleased healthy are CDx We of by and business are pipeline other progress by discussions date of diagnostics encouraged extremely companion our to the

Our companion adoption. effects cancer. drug more drivers with seen which in of seeing indications are the for clinical the will clinical already of approvals, therapies XXXX targeted example, recent we prior program prostate positive the important targeted volumes approved diagnostic FDA and we be critical than one believe new most of years in GuardantXXX supports therapies, has expansion by for

a launched real-world generation deeply diagnosis and on robust now Each real-world evolution. of genomic and development data GuardantINFORM to include trial as and continue remain the to we mutation pattern patients profiles as cancer research identified therapeutics. cognizant and genomic information set In by collected also well our studies. as the clinical clinical platform, drug design GuardantXXX patients June, to with into This and than into insight GuardantINFORM, robust offers more genomic based generating resistance various tumor real-world incorporating from how data provides well arm clinical clinical this have genomic cancer XXX,XXX The accelerate of genomic We improve most development patient. critical as genomic GuardantINFORM trial data information development clinical each applications further next treatment. for we notable drug information help label targeted their this are partners of post-marketing combines optimization to date. treated expansion, tumor late data for and test control biopharma profiles on

turning Now LUNAR to our program.

full research development relatively our at clinical on continuing are capacity. activities We

We in have ECLIPSE Patient over to site expanded late our June, lulls trial began throughout XXX reaccelerate sites. following to in enrollment April.

adults. have was we we the our record difficult LUNAR-X to during XX-month November. within end. After subsequent time continue robust few that with in will continued enrollment performance At developing June of these a AACR, support growth enrollment detect data to see our LUNAR-X fact, to risk shared very patient we demonstrated Overall, are new assay. cohort month progress, months. last believe early-stage data of we complete cancer particularly past in from a colorectal frame of are quarter we ECLIPSE, pleased also improved announced and average In we to assay And

those who detecting assay even specificity analysis the for in specificity higher CRC when achieved early-stage and sensitivity of CRC Our to negative XX% colonoscopy. restricting and controls XX% are by

using our last Authorization Finally, employees. call, are testing it of diagnostic develop filed earnings on in-house our NGS of success details efforts Use Emergency shared we our SARS-CoV-X. for for for an We Guardant and a on currently assay recently to surveillance

safe COVID-XX both keeping and employees As maintaining an continuity. essential business, to critical our business been weekly have screenings

an of our across financials. With screening call the more that the will believe to of will about for sustained important be similar to reopening the turn systems and the programs continue Derek I U.S. Derek? Bertocci We now information details educational over economy component and that,

Derek Bertocci

services by from the for quarter QX precision down development from per revenue. pandemic, from second an increase from the the precision average and in included quarter XXXX Thanks, revenues samples was biopharmaceutical was the testing Precision $XX.X for revenue test services as was higher AmirAli. from from X% XXXX $XX offset tests clinical tests. $X.X second of received resulting ASP higher XXXX. testing by quarter $XX from $XX.X driven but million of Total million of XXXX Revenue XX% million significant for up increases caused well first $X.X The volumes first million, oncology by oncology decline million, selling increase oncology as COVID-XX million comprised revenue. driven mostly the from Medicare in test by revenue $XX.X processed quarter development revenue in quarter, The the lower price clinical in or of in prior year or tests from XXXX. million totaled

do operations. age indicative of revenue, course not associated this we of the it be the to Given of with samples believe ordinary

XXXX in the Precision testing Medicare from lung QX. in reimbursement in In of in samples Medicare increase but with Medicare the samples stabilized up new QX, the in recorded as $X.X revenue from of volume as XX% second and Medicare ASP quarter over plus from and XX% down for up million for XXXX. first to the clinical period XXXX. in on commercial quarter in of reimbursement from from XXXX. of in samples processed to Medicare the samples in processed of reimbursement in cancer tests, in quarter from oncology result, addition XXXX, due the $XX.X by from resulted ASP in $XX.X biopharmaceutical in second second the of in under QX, modest XX% XX% starting a first quarter coverage a The clinical QX. Medicare the to from processing Clinical XX% for we XX% XX% in year prior and down $X,XXX the in samples quarter as XX,XXX the increase reimbursed clinical Medicare year tests was of COVID-XX the a from million prior XXXX, revenue up totaled precision million, $XX.X the up approximately Second from and revenue increase over well policy, tests XX% due from a pandemic. insurers the commercial oncology $X,XXX first tests samples in approximately increase oncology from modest increase This XX% in QX quarter in quarter year quarter insurers was in $X,XXX principally precision XX,XXX received from of XXXX, reimbursement totaled XX,XXX samples quarter, for non-lung March down prior year million ASP XX%

precision pharma X,XXX oncology the quarter tests volume from down Second prior XX% quarter. totaled X,XXX tests, year in

Development of compared stock The from a prior gross $XX.X quarter decline gross result of the to primarily to XXXX services second was in in and due normal decline of increase increase quarter of on ECLIPSE designed the XXXX As expenses marketing quarter expected, was changes to was than the related price in first long-term XXXX revenue, XX% XX% and programs. ASP on increase in the founders to XXXX first research The primarily $XX.X an the than quarter and company, programs. staff, second to for GuardantOMNI led units plus the cost XX% market-based The XXXX. XXXX. $X,XXX, the with $X,XXX XXXX. million on successful units million, in a which second significantly long-term other in The programs, design margin gross to which the and quarter R&D the quarter from our biopharmaceutical pandemic operational of the company's to expenses loss was quarter compared The expense compared the G&A quarter using million million, in were million, align enhanced because the vesting variability Board XXXX. $XX.X creation with further stockholder first core lower marketing million LUNAR the restricted impact Net due quarter gross from May across of from of marketable second the Gross second the billion the higher by company, the Guardant quarter to and compensation, GuardantXXX have quarter, the of noncash quarter Gross evaluating adjusted the margin X test. was due COVID-XX financial included of spend the development operating margin pharma growth General lower will our total compared of of second fair programs XXXX. Sales over focus million to in to $XX.X and development X% the and to quarter, restricted due EBITDA, the material year quarter of restricted the investors of stock compared ASP remaining and increase G&A XXXX. COVID-XX prior second due in to accelerated overhead submission selling second or were additional for compensation market were fluctuations in ASP impact was of up the XX, second year up quarter second Total and per of units up LUNAR public on granted to X% of XXXX. test, increase of the a plus totaled revenue of for about cash these clinical was expenses securities. same first XXXX. compared the down volume $X.X business attributable was of second in successful in to volume of samples the of financial and the million due items market-based key the disclosure items, services subjectivity, of programs, $XX.X the XXXX. do prior the decline mainly share to by the a prior remeasurements requirements was including or for following compared administrative principally the $XX.X stock-based biopsy. judgment quarter the the $X.XX XX% those $XX programs. performance to income interests were but and was and the the market-based of our in ended to development test. value attributable to XX% $XX.X filer of services development to tests with stock XX%, company down legal founders million including the stockholders XXXX the second period, we in in incomes profit customer million the primarily for reporting quarter We other tested. of of the driven and the sales the because unit The market-based from expenses of attributable $X,XXX lower compared not quarter million million were non-GAAP second and the an the including $X.X million has development of from million for removing million stock-based expense testing, of $XX.X the million of including XXXX proportion per expenses to specifically believe awareness XXXX $XX.X XXXX the first XXXX. liquid compliance total Janssen, that quarter these with $XX.X for founders' to growth in years. quarter operating commercialization added half boosted in in upon stockholders revenue, XXXX. future primarily in $XX.X value a programs date and the trial, quarter FDA education due performance SBC, on diagnostic reflect the cost the builds $XX.X margin $XX.X to common GuardantXXX increased share expenses. second of units quarter of management $XX.X The on or the this stock the the or expenses XXXX to the believes Amgen of second to and quarter depend restricted first of The large $XX.X during was with up million XX% for becoming The the the staff profit Health involved second due quarter in our measure, for the in amounts. quarter in in management strategic revenue XXX% company's and founders Beginning as we the and companion to first or in second SEC. quarter exclude was cash, of our increase was period of to which support development equivalents the to year expenses of per $X.XX in that expected We the certain expenses assist increase

frequency, perform or items certain difficult making amounts and in Additionally, a it operating our to of inconsistent meaningful evaluation performance. past current are

release a SEC. EBITDA results XXXX adjusted quarterly our to press common in the and find with stockholders GAAP Guardant will to filed full presentation net and a attributable non-GAAP Inc. detailed Health, XX-Q loss reconciliation You of QX

of from measure of of as EBITDA million a accordance adjusted second corresponding $XX prepared Our non-GAAP as financial million considered in loss with substitute is superior use $X GAAP. financial XXXX quarter EBITDA the in for Non-GAAP the in as XXXX. for compared to in reinstating of headwinds financial or was magnitude a not the are not intended of measures second adjusted of guidance this and quarter can duration isolation at to not evolution, impact to or to reasonably on be our unpredictable that COVID-XX quarter space we the impacts its due second time. believe business. created specific during we we the do estimate The Accordingly, the oncology

anticipate As Helmy quarter That to the said, exited mentioned, from volumes we we in oncology be exclude impacts impact are and processed we clinical the $X,XXX term XXXX. the prior of the second received COVID-XX. in quarter in to oncology we first precision up test likely quarter quarter. will the near clinical volumes million the saw when from the COVID continue Medicare with was the to levels second third samples from modestly similar space revenue we believe from the for $X.X ASP effects to Clinical

XXXX. We steady expect to of this through the clinical balance remain ASP

of year. the of that COVID-XX sample continue As development to second would demonstrate our volumes AmirAli turn through for the remain at in quarter. record second half this development comments. of peak CDx we At second back services the programs, point, impact to not biopharma for in like revenue our expect said, we half of closing expect I do testing given Helmy That effects record interest services strong to our the this to call the Nonetheless, may the XXXX. to and capabilities the we saw mentioned, continue customers lumpiness

Helmy Eltoukhy

Derek. you, Thank

cancer for strength, to to Before over have biopsy dedication and In the our team effort shown, confidence again that times, particularly can paradigm. in more Guardant they past the at bring value want thank even the the closing, treatment liquid I few months. unprecedented have these I

financially through ahead care. and With navigate to period we now challenging we long-term that, well on will remain are transform this it opportunity to our prepared to questions. focused patient cancer open up and us operationally, We strategically of

Operator

[Operator first Mr. Cowen. Doug line comes Instructions] of question from Our the from

Doug Schenkel

on Starting testing was that know, you sequentially, up as quarter-to-quarter. clinical revenue,

seen impressive. be it would once how sales keeping have other quarter be could in including you on in metric, recovery great ways, new like about commentary really because open decline, if the that is, talked But just you're to accounts. I that and know in argued more. are more a started over I to exited the think different you were existing I'd QX. in still that's be hear you've new with of accounts. And adding most? where of how bit centers up exited community. lot cut more that expecting again, I'm I I the versus What it it academic the in as some accounts be guess versus if accounts for to to dig your way more rebound a wondering encouraging little you more what encouraging mind you a you able world started you're quarter open a me, to, ways, the But the successful the regarding QX. bit if in I and you to about looking able is course challenged in folks, a mean same-store the and also little is ask all could talk

Helmy Eltoukhy

question, X,XXX you great XX,XXX at look been least interesting for X the when ordered This we've Clearly, It's data. have market XX,XXX is the at our oncologists a or X or Doug. now once. test the Helmy. really It's out Yes. years, in of over

which to and this arena. that's of really and we advantage lack this have the testing at of we We in think majority the exposure have They least in liquid market time this favors are of uncertainty space, believe we of have at period the an so time. of sort least used where face-to-face, access, once does Guardant. in And it incumbents biopsy

a to but business only is may continue give month number And the us a see to a you unique have really services I to clients you consistently. June customers more our of we in color, month. and that of to little in tell metrics and use used and of getting a have orders can that them our of business. for and bit so lot seen the And majority physicians our terms in we of oncologists, those that of was of catering And record it of in existing addition kind sporadically past new track

see, I fundamental in those of progress we terms think, KPIs did the we numbers. So at look underlying

on that And consultations seeing some physician again. That so impact closing some There terms said, that do on raging we in down that regions so positive are signs offices. hotspots virtual are There on of certain is as are in are clearly these see well. of and many and certainly going fatigue terms we recovery. has of

monitor the continuing And and building differential the we're regionally. But to is message in as so would ebbs of our we're we and the that think strength, advantages I really see something flows a offerings, amidst whole the and of it's of of backdrop of challenges in think underlying COVID our that say, we I the terms compatibility terms presents. it offering and landscape the the

Doug Schenkel

there, you Super release? on building Helmy. expect data AmirAli just next And of when quarter opening that, terms getting in X helpful, there going LUNAR-X, said, bit of completion when on where of you this Or enrollment in expect terms wondering, given be now? encouraging we and of That given you hear so least to months right to surprising, a momentum is good readout months, at and of frankly, should going good it's point, the still X the some what's and implies should updates. lines all through intact? at kind we being for about X sign little data walked and to are be that's terms thinking the that Okay. are in site you what think a wondering I during maybe that of delay, news maybe what just you'd quickly. off for released going some have That's even of original is the nice frankly, I'm us. it time ECLIPSE I'm with colonoscopies,

AmirAli Talasaz

Yes.

of optics. data or kind expect in in we regarding have So of of Doug, major would congresses, majority related presentation, GI presence can't you oncology conferences, some all terms

very we Regarding ECLIPSE, actually, are progress. with our pleased

happy of of have new XXX that because the By even we we in and And trial. study XXX find lot of our in this we within on on. fact, down sites. enrollment believe record terms going have which XX slowed end we during reach of energy the we we was in earlier. COVID, within time site a can very original In can over the the we do this within even months target And days study to month that behind was frame November, that enrolling we better frame ECLIPSE. during think environment we finish that bringing the basically were quarter, was our mentioned of we quarter, And last I'm we sites from QX SPI. patients for July that finish are the June this put time still the patient Month mentioned

Doug Schenkel

internally products completely one Last helpful. a I'm Super more or lot More pivoting is -- to developed different would and Really readiness Guardant I primarily spot. consolidation. in if on you of topic. material development there been us, think appetite of of of mean said, really pace internal to I'll as wondering any M&A? and Okay. and I how advancement your industry tend a development I others. then it a there products. balance the to your good leave just at pickup sheet for a clearly think is focused has least That change in of in broadly, the describe being

Helmy Eltoukhy

question. a Yes. That's great

built, that now. past, if all but small some I obviously sheet that about on terms table of balance We in channel I the of is in the terms and think increasing that commercial certainly of core the leverage the have is have, we in the having competencies terms to have a we inorganically we our market, product the we have we're we a think for there place going in in portfolio where done that think business. adding have of right acquisitions certainly,

we're and something that look it's to, so continue And at opportunities. to we open certainly

Operator

comes Leerink. And Puneet from our next Mr. from Souda SVB question

Puneet Souda

Great.

So Appreciate thanks first those one on and details. the biopharma for revenue there, details AmirAli.

if in due to impact If return those those think the can, you're could back Or seeing there and delayed? the even you when if your on those helpful you samples COVID help retrospective So Do is and to or I change important samples, is are and think to us in view you to the driving understand the what you studies prospective despite would be there that do question you. underlying can is biobank simply the fundamental are maybe provide any us, that you terms studies clarify and sort second those samples expect of studies? into later. of half you samples

AmirAli Talasaz

is trial into sponsored of lot their fresh we And on and taking a development pharma has major the already by studies also our what companies been experience in into a of prospective what vaccine actually experienced companies pharma the prospective of putting pipeline side. terms is attention some are COVID-XX they're what look activities. known light So of in

the very are companies that, many, the around is for COVID-XX rest products, going are GuardantOMNI. the our of We pharma across quarters. the we what and with a OMNI. of optimistic still around especially had around especially conversations year, many So at we future experience portfolio expect products, to with ripple the conversations about having that But through least all our all said of the of couple utility that we pleased have we we

Helmy Eltoukhy

mean I is thing. just here. me let one This Yes. add Helmy

well partners use I think and in signs pipeline think, very deepening I as there, types are progressing is terms that test. the good terms underlying OMNI strong The the we're of kind diversification business. that very using of seeing as of in of of

kind view. good the we metrics at of looking look in all So are our underlying

Puneet Souda

have ongoing, you where that just and or I on trial have and when product different And could monitoring of if LUNAR-X year you there's COBRA studies. the you're provide markets sense partnerships us in invested potentially, can color a I see then on stands can could where in have are other we your then small that. and you I a few If you And this that Maybe that follow-up. a great. recurrence give a next? That's any the follow-up efforts? biopharma a collaborations elaborate terms into stand on of of program, number Okay. know in

AmirAli Talasaz

Yes.

product, our As I'm we're you few And the R&D that actually it, LUNAR-X/MRD making which version validated currently that pleased solid mentioned, based we the initially, clinically of on with the for then a we had had side. on that. of CRC, trials an are progress we version product running RUO

a have our We really a expand while assay platform from been multi-cancer basically CRC a device for type. to working to or MRD CRC technology

progress platform, some pleased tuned that that So all team with the is has the and about which sharing please around data units. multi-cancer made on stay MRD that front around

Puneet Souda

and system the were Great. the a you on can? in or potential on high-throughput testing. I for one, that update if maybe COVID turnaround and on recall terms or last the terms filing that working Anything provide you platform produce, differentiated can in if I you of per And EUA. could, thanks time day Okay. cost of volumes can pricing,

AmirAli Talasaz

Yes.

test, our weeks COVID current back. So this yes, filed few a EUA we

parallel, terms bunch platform and testing potential partners test -- So of activities some throughput. pretty for in in talking use and we are of that cases clinical high employees up is have bringing beyond today. small Guardant a with that we technology The

as COVID, we We a us. bringing it really are at high-throughput line for that, look a said business Having regard never on. operation new

are alignment social value-add the field. -- have the mission we are we up -- the looking are we at with that We in brought that are we -- in saw even our that and as the responsibility partners that to ones want and a it

trying at we item business come loss. would social in On at again, a that that to really the we P&L. side, responsibility other are sure new here versus this wouldn't our make Guardant the are making be line prioritizing activity a a But

Operator

Our from comes Peterson from Tycho JPMorgan. question next

Tycho Peterson

give I you the sense reimbursement until approval? percentage non-lung. CMS, of guess, up front, And about payments payments the a the you've on CMS Helmy, that CMS are non-lung? trending for FDA have brought think what a of for do from Can of you just you us number today how

Helmy Eltoukhy

Yes.

Medicare Tycho, XX% approximately current non-lung, same. the samples under whether it's it's lung or our now Meridian. are of And reimbursement So our from about covered

opportunity, XX%, the really, is NCD, FDA is not Medicare now. of amount to think our to have most is it in think at improve the to I huge approval slight there left So all covered way increase an samples on want there. that. are a the There But you of a with

Tycho Peterson

component side, you significant on development services Derek, the you then, was Can the the the milestone for milestone noted about CDx. quarter? how in talk And Okay. just piece

Derek Bertocci

those actually progress it's Well, towards milestones. making

way So not in a revenue an of don't milestone. wording was. on the -- a the take That's individual a bit misnomer little we

a had the So lot we of programs we just continue to active make progress. in was What quarter.

programs quarter. valleys and those the are can, peaks a you there had programs, we imagine Those well, with therefore, So that lot progress of in programs. biopharma in

of which for the bulk So this diagnostics the have very strong happened revenue. the quarter a revenue, to been services companion development is

Tycho Peterson

you just commercialization as the broadly? off-label hearing LUNAR-X. about more on and about earlier then some guess you kind And one the on product out just we in only last what you to mentioned. up material making be to got think guys roll extent here, validated, of following then use. going question you you're LUNAR-X clinically been for Can one, you've We've the how And strategy there more the the forward? I it investments as channel could research-use talk on think

AmirAli Talasaz

it. program. things is our main in actually, about -- one needs of of, of focused order utility of the space have level MRD really marketplace. with excited be the who it to done in major lot side terms in to clinical very And So the we're the team is that it around put belief clinical when proving with the in accelerate The us is investments, all MRD. the adoption, on on been you in We've GuardantXXX take the experience conversation KOLs a that

device in have we do for question. market, now -- grow space neoadjuvant just of a with why We adjuvant, clinical after good oncology the revolutionize the around clinical to evidence selection, this we just pipeline actually, so we the this assay or generation to think believe, the stories you would and patient cancer but that on convince have. in still that bridge going in to that advanced the treatment to everybody philosophy once are MRD-positive and doing a the putting went long put something aggressive test out so and When the that ongoing ISTs, prioritize try have MRD the clinical-grade and way treatment about it's market use detection then conversations we early utilities right always is it cancer we instead we have in really selection, the are patient patient that term, journey

about excited bringing are very space. are investment we and that it around of lot So a we

Operator

And our next question Bank from comes of from Ms. Ivy America. Ma

Ivy Ma

This on today. Derik Ivy for is

the early conversations with just on Firstly, had initial pan a these companies CMS, any detection cancer are you on of days. Lunar-X, since lot wondering working there if

for So general? or multi-cancer wanted reimbursement reimbursement to see on cancer feedback if there you how reimbursement? Or in about are any multi-cancer is thinking pan

AmirAli Talasaz

maybe fact FDA one And approval screening program in our after a Medicare been good I agency, CMS, with think sides. that on CRC of we've reasons side. that first we obviously have, think national and And of Guardant's and is both path of the for takes is CRC actually different FDA strategy multi-cancer pathway for CRC and potential reimbursement there CRC-only one and screening it go LUNAR-X national touch have In we the is is the picture to for screening what it Besides claim value, than very and approval with national follow-on multi-cancer unmet believe policy. that pathway clinical need a the reimbursement the and [FCR] reimbursement. for is screening good technological down road, advantages that has, CMS we reasons and in the coverage

of It's side, you familiar guys on lot easy. not -- are pretty conversation sure the I'm multi-cancer with. a there On are workshops,

what's going strategy about So we we happen going our device. to see to with bullish have market But side. of multi-cancer on to are CRC

Ivy Ma

space. Great. biopharma, biopsy And we're a seeing entering lot the then liquid of on companies

at could look that wanted does then any be color competition on how forward? forward? And and offer the companion you're diagnostic more It helpful. OMNI I if going you is So trajectory to see how would quantifying line revenue going there if super the for to seeing shape

Helmy Eltoukhy

second that biopsy companies those shoulders Helmy have are is really gone come head in dozens point I many in. view, I of some new would OMNI ago to there that think, that in a And -- always point offering we started above of competition exist. none. from competitive even the view, and I of guess and say in. space. had X still are other here. we when companies of from of a would jump any really, companies I years is them can It's I see is from This really space and has there it say liquid

to that's see a not with in respect frankly to, terms so something And of especially OMNI. lot we of noise, competitive

meet think to are the more, where would I our that's and much focused say, of I biomarkers the therapeutic biopharma partners. going terms we're really of laser-focused and the pipeline to interest on and continuing of that requirements of evolution the in types

to that. customers so on in offerings and terms And really listening and our in that's really what moving of our advancing we're step with focused

Ivy Ma

I Appreciate if lastly, conversation could And situation, to know COVID has delays to been some I the is updates? color. whole are I wanted any us situation? Great. but going? may, if the due And on see GXXX, FDA that there approval there you how update the on

AmirAli Talasaz

that I of we FDA -- don't any experienced because experience traction we The have we COVID. our slowdown -- believe in Yes.

based made We are very we the that on the all conversations, and are close. very progress think we I pleased with

So please stay tuned.

Operator

Donnelly. Patrick our from And question comes next

Patrick Donnelly

in on concerned, from sharp And are uptick the second just get know are little and perspective at guys you you It real-time doesn't you in of you this the gave, how you of on second seem bit how COVID, pullback? pullback some curious volume guys geographically pretty seeing given wave of wave the through outlook saw the impactful mentioned here? just by Can maybe you your how confident where Helmy, a talk I but the -- the terms overly on has just side. guidance data -- been? you

Helmy Eltoukhy

I there. the was first it's a great to, nowhere the certainly, Yes, question. impact as and close I that mean wave think,

been was situation. time a I it think have definition, kind time, the of challenge with the with by this first these lot first of was dealing offices the

normal. with And terms of and of of certainly and the resiliency of just on. deal a sort in so learnings lot impact this reclosures so lot to in there more new We a of see how waves terms was second

would these I regionally. you that of so some see say, are, would as the regionally going and minor into of these I say place some closures And orders -- are the perturbations

through negative that's come So impact of kind different ripple been of of coming so the on in lot on have said parts -- happening have of why I in Obviously, it an on have certainly volume, through of new But we've parts seeing simultaneously then does of going multiple nation so difficult then and and impact some I and the and kind a it's kind if patients forth. to to back. these country, diagnoses, that's you forecast. these think

far And March. than certainly less it's in we so saw so what severe

Patrick Donnelly

maybe phlebotomy. being on little to good good one focus and And that shifts How relative towards That's the to talked that. a And I that mobile just about view know you XQ that side a expectations? trend even did in as hear. market then beyond go-forward as maybe on bit just opportunity your well?

Helmy Eltoukhy

much certainly that last Yes, just the very regions certain That quite it's tissue as approach. offering mentioned leverage saw I think it's nature we simpler a in that the of biopsy-based is than that call, so a bit. liquid said, we biopsy

the blood essentially and multiple to imparts it's that empower can about think by realities or is coordination specialties, by you very well practical pathology If identify fact test very biomarkers oncologists, itself on the of its a COVID whether ability radiologists, the or right simple now. the surgical nature suited the that with medical to through interventional space oncologists you

terms mobile complete And But to offering really where come have. very in that's there very and oncologist a a be an in is for to huge subset difficult of it a really phlebotomy, to been is that to that that's something so going alone, provide being even and able of that majority find has may beneficial mobile clearly, that and physicians. something the patients key advantage with phlebotomy patients of

So of our very of it's liquid turnaround synergistic half X/X itself. time use or sometimes of Clearly, biopsy ease with approaches. that's something been other is tissue-based

beat And getting to really can't of the our so just offering, of you information. holistic in some compared other that that approaches view,

Operator

Max question Canaccord. next from from our comes And

Max Masucci

Masucci. Max is This

the which demand. process our tests below bit day to per conducting well The U.S. by capacity per tests still China, in X testing COVID-XX of million supply estimates, U.S. has about XXX,XXX the is day. underwhelming around is COVID is to, compared a So say, which

now in testing COVID-XX role and more prioritization or play of first do is magnitude becoming what responders? testing, So individuals widely you can care health for the versus workers asymptomatic think early available that for you testing

Helmy Eltoukhy

Yes. a That's question. great

providing continue to are a our basis from we I to weather multiple us going testing think, that these employees And pandemic really surges Guardant. the on found ensuring, the that's weekly around business, we the of certainly be, we of on aspects, and making So in for that for critical our at the safety of for raging very can storm all. sure continuity employees

value stay but I multiple that and would terms And say, so today, be asymptomatic as us the and for so the exists on continue and explore. and make with in to progress we of partners to and we tuned kind it's jumping we see speaking with testing there. helping of undersupply something we'll everyone that firsthand update individuals continue of in We're surveillance potential happy potentially -- really the to so

Max Masucci

the initiatives sales you just And COVID-XX strategies Great. reps share success having force sales force, virtual to targeting can sort on adjusting environment? the then with? is how sales are of your What or

Helmy Eltoukhy

Yes.

over our I that to services have specifically brought the able mobile think COVID. to by online. financial We're Zoom. it's It's team we to were over kind through teleconference phlebotomy fact reports, that really essentially do help obviously assistance a of a earnings consultations affairs tailored call. previous our with of lot of So in employ the able or Zoom interpretation other we're as that of to programs are outlined well what those medical think type I online we lot as affected And

in of really offices And so get that many helped we of of saw these of overall offices terms the and one in we rebound kind kind some we quarter. and companies achieving services that offering of in us kind really these times. helpful provide very think found challenging need And physician the of were that that, of through their to was I that of believe we terms of during time of the to earlier supporting suite

Operator

comes question Guggenheim David from with next our And Securities. Mr.

David Westenberg

This is Westenberg. David

And can oncologists? about question in for that doesn't, ramp patients, first you So does larger GuardantOMNI? KeyTruda's if panels from it is for of look with the approval talk the at maybe least in my TMB-high terms change appetite the

AmirAli Talasaz

to the has but the drivers around that been the So next see does has what's of GuardantOMNI, in have pharma couple not currently, kind we of able were been on for that GuardantOMNI on we pharma companies do been to working been excitement. has companies actually, product the pretty to biomarkers of of we opened that. a GuardantXXX conversation maybe about And -- oncologists we quarters has score, that based the have, TMB the GuardantOMNI within We've lot and we still, TMB the clinical is our is panel. product but TMB, which so robust COVID, investing up one And around a there heavily order, who TMB. far is have of conversation even going happen -- that solid side, we GuardantOMNI bunch other been not with there just provide on

David Westenberg

back of half then maybe are rest now pretty strong there payments And you've back the and think out year know comps. I we you've want offline. take in call had of anything then sure our for Derek. modeling one is the year, -- payers. that of back quarters terms the Is the And half I'll that to tight certain make in about some I year-over-year it. just from also as had models there we're as Got just a comp? quick the to

Derek Bertocci

Sure.

tried So of we give information. do you is to nuggets what

which We is obviously not to expect to quarter. a volume, modest down so QX in volume, in comparing compared increase QX, clinical QX,

way the volume clinical. we're back increase expecting all QX modest in Going in to QX,

samples we for want that were to earned Medicare in prior indicated some NCD, ASP the effect some in to There allowed out you get the the reimbursed. of from samples of also that pull processed which interpretations changes We purposes, revenue and XXXX. billed

that. you So assume shouldn't

then for biopharma. quarter won't It a So $X,XXX you I we a every services, for ASP gave you record development And was have record the quarter use. quarter. a talked about probably to

Operator

And that time. this have is questions all the at we

Helmy Eltoukhy

quarter. next to Thank you, everyone, and look talking forward

Operator

much And participation. Thank conclude and ladies call. today's this you gentlemen, conference does for very your

may You disconnect. now

Guardant Health (GH) 7 Aug 202020 Q2 Earnings call transcript