PROG - Earnings call transcript Q4 2020 | Biora Therapeutics, Inc.

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Operator

Welcome to the Progenity’s Fourth Quarter 2020 Earnings 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] I will now turn the call over to Robert Uhl, Managing Director with Westwicke ICR, Progenity’s Investor Relations firm.

Robert Uhl

Thank you, operator. to quarter welcome conference financial and call. afternoon Progenity’s XXXX fourth results Good

the Harry Officer. are Chief me call Joining on Dr. and d’Esparbes, Executive Eric Stylli, Chief Financial Officer; and Chairman

Dr. Form identified Before the the not on remind that annual federal that the call I today’s limited securities as types will our file within would include report statements of call to to you forward-looking turn will forward-looking meaning we like in Stylli, XX-K and filed be actual as risks reports over any results laws, to beyond statement. including those statements subsequent many our I of the but in statements website including with later the call the which our the These projected from in our and uncertainties, control. represent SEC, this will substantial of available on forward-looking involve are section. that Investors all could that date our note only forward-looking materially Please views differ of the and periodic

over today. of information that, website, also be call turn the speakers Progenity. For the I supplemental not fourth reports cause in A actual see our periodic a some will differ please uncertainties quarter the financial Dr. it With that with well call expressed but to Chairman those the could of business, the materially from the the is to slide statements, risks Stylli, further on deck related results will as our now as to and SEC. with and filed on forward-looking directly risks by now description Harry referenced CEO

Dr. Harry Stylli

in made generating for quarter, our the programs. core business. especially all our business both QX innovation made and We revenue with thank Thank joining during us progress revenue we you fourth XXXX, this In with stabilizing pipeline and our progress Robert, significant afternoon.

regional contracts. are to in by payors We addition details disciplined in whilst managing approach NIPT. saw of through during payors customer reduction XXXX Further, status the and maintaining new a growth controls lay in our later and our contribution in-network commercial in we R&D and strengthen the Eric, programs. discussions These call. additional the our in-network adding acquisition CFO, grow are a more to expansion and covering improvements advanced continue which revenue cycle beyond. combination foundation maintained ASPs, commercial to resourcing for In risk factors witness operating national to sustained cost will will with beginning large to average and that force continue for expenses strong helping remaining provide we appropriate our key quarter government our and of

gross and $XXX offering During quarter, million issuance concurrent from a proceeds we the secondary of December XXXX raised notes. convertible equity in

implemented primarily now private proceeds the business pace. a accelerated progressing molecular core is placement We quarter during this including in and our evidence to addition and strengthen revenue in XXXX turnover, pipeline, COVID-XX We our management of In tests, two customer business raised were at to to that our our firms million to XX,XXX stabilizing, process. extend due tests, healthcare-focused increasing $XX QX, gross positively XX,XXX changes from reported which core investment and engagement we with focus beyond to able to it XXXX innovation see investor allows tests. that pipeline. view an our core were billing and cycle into XX,XXX we us and investor especially the was molecular leading testing In continued innovation witness fourth quarter, we drawn in our

beginning recently are significant to of to contrast, the attrition weaken. continues to now we to Separately, further losses with we’re remaining as ASP share new lives coverage quarter XXXX, and payors. reimburse an further state our And status first due to average ‘XX, contracts efforts with during its the increasing Humana, in expansion programs As further portfolio for account I’m improve quarter, from gradually our These of with as Progenity in-network and commercial additional headwind payors. Several lives of productivity risk. hopeful multiple begin By large regional payors, Medicaid payors we risk with will account new for with in-network in add attrition. secure to advancing number increased we to have continue accounts help new to covered lead to a a like should business pleased presence. more which more approach the end expect revenue NIPT offset We average that achieve well that commercial to fourth covered can we’re changes and significant X of aforementioned product as our Centene due offering the the commercial including of also NIPT. access million key significantly success. begun lives our

many average a As payors currently risk, medical it’s shift their have that most a indicated result, and policies. cover of in our permanent

rising our represents NIPT and significant growing a expect as important will aspect of revenue ASP for an average products it that risk a our make We contribution mix. to

coming our payor and early to better improved to align reminder, converted cost As We implemented approximately that And medical also patient carrier screening will transparency drive this nationally in book coverage, program revenue business. of XX% provides we the believe testing payor responsibility further testing in a aligned and patient’s which estimate result business In process. has the we in menu. revenue January, the expand a already this ASP have menu of expanded September, quarters with our in our we screening carrier policy to helped

January. changes product contribution market over experience the to trajectory the and with our quarters. channel coming across growth ASP United the from QX from our serve from show our significant expect our COVID-XX testing physicians, in and To did confident realizing that launched we impact as continue storms business in a nationally begin We NIPT patients establish the for remain will transient stabilize Taxes, we States. over growth carrier We us a volume recent We testing and revenue to within in XXXX ‘XX, winter and major these our benefits eastern and lines. QX

core and our both health is molecular helpful to by volumes. margins our testing business women’s COVID-XX remains far testing priority, While

planning the we maximize while purposes, efforts to continue demand to For our dynamics we’ll view as changing testing opportunity, COVID-XX and to transient testing opportunity. aiming to the adjust respond a accordingly rapidly

explicit our our ongoing that working ‘XX. generating diligently matters. success, and respect demonstrate contributor strong expect A more business quick are we progress litigation to to and We to positive in become with a is as note to this the revenue

believe disclosures expect and going defend and refer across and vigorously critical milestones our innovation-driven, position, our to Progenity continue is than to regard this pipeline programs. have QX, to we risk-reducing our achieved development to our on unfounded be in and this XX-K. year in While detail we call to not we’re throughout

we test, of a During in preeclampsia for primarily rule-out now intended Preecludia. is and in preeclampsia, key physicians verification complex quarter of OB/GYN our a progress test milestone rule fourth achieving the in algorithmic MFM by made with syndrome, symptomatic analysis in out multi-biomarker LDT our use patients. a The analytical the to and test, branded XXXX, significant field by development efforts clinical for

XXXX platform Annual clinical a recently verification late-breaking and with ACOG the accepted May. how an study We in our Scientific and and as performing, from our are PRO-XXX at abstract Virtual abstract Meeting assay data was pleased Clinical are with

We initiated have out which study, sample testing PRO-XXX, read for also expected validation mid-year. clinical to a is

Day During Preeclampsia Virtual the R&D fourth quarter, event. we held a

provided as well verification we data, preeclampsia. in event, clinical patient analytical understanding additional and current physicians managing from as The the and event shared unmet this groups. about During insights and perspectives needs advocacy

how by reducing pregnancies of other can unnecessary test and help the words, pre-term deliveries. be Precludia has outcomes prolonged, potential will safely We add to also provided clinical color pregnancy enhance care. on value quality the test that our improve the identifying to In

and We PRO-XXX population our systems, operational The prevalidation cohort, our from heterogeneity will in challenge selected samples of patient further further study the of analyzing expand are define and a processing understanding of randomly PRO-XXX population. our study. production from the subset target readiness our sub set currently upon broader the the the of prevalidation samples

test would for third preeclampsia U.S. clinical validation, and the successful Assuming first rule-out patients of trimester their Precludia pregnancy. be in only symptomatic the in

their As using a payors opportunity, that and realize and global our future. testing. in Precludia of of to More And economic also to research proposition. how a of better party completed is potential impact reminder, the findings, come intend to with value we value recently the commercial third were understand disease we Precludia on the characterize the the a encouraged by future. the in the would We burden very indicating understanding they

will targeted a we Precludia of half and diligently These force plans marketing for and second ‘XX. is for sales physician into including preparing launch team of accelerate commercial increase experience as Our campaigns. activities in training XXXX, the program, the move

detection our through platform. single-molecule Moving

continue to X. the We test generation the on NIPT with Innatal development next platform and its progress first make of assay

sequencing. we in dose detection integration time This ACOG’s measurable allow reduce of This across fraction. to thousands faster in response assay recent by multiplex Innatal initial a single-molecule resulting NIPT equivalent that and had in essential NIPT benchmarking. of opinion, As has to capability fraction performance COGS given We is fetal direct fetal achieve the tens performance announced and high XX%, target fourth a quantify quarter to critical, test. especially potential the highlighting the believe reminder, turnaround we to achieved achievement X a need specificity probes, up to for enabled

fuel features, X -- market. new to us usher the Innatal our With opportunities new a for growth in to these NIPT in is expected

NIPT, the genomic for projects, The be with in near and will high the single-molecule and non-RNA as several platform cost. low biomarkers our to solutions, to addition has detection future. epigenomic protein pipeline detect additional In including sensitivity suitable such opportunities platform oncology potential

to Precision Moving Medicine. GI

advance advance treat targeted other which a study ulcerative capsules, the and ulcerative in ileocecal Crohn’s DDS accurately on and will milestones update to expect the data believe cohorts. us key to device and to we and fully the key time, tolerability biomolecules single-dose disease. canine treatment in volunteers. a showing of where will safety We our autonomous half pathway distribution preclinical or year. XXX(b)(X) investigate for clinical first build of the application locate initiate the has this how orally of devices drug gastrointestinal will also The colitis, now OBDS are the autonomous autonomous date. biotherapeutic, we we done the of clinical OBDS, initiation lead to the junction The of to inhibitor a well also we This program, of the started performance ability to GI-related available. PIL solution evaluated delivered deliver of for second an are both continue a clinical capsule also DDS the key proprietary important the for fully in clinical which the The candidates, DDS Dx preclinical validation, drug three and our track transform formulation second programs behavior delivery assay to significant study separate delivery DDS its continue in announced in of autonomous and study DDS, normal payload that tract systemic a the site In well diseases. platform combination enable colon, program, vivo delivery SIBO advance study a in and system, payload clinical manufactured colitis using the the The will and a We oral adalimumab, milestone be pipeline recently study and dosing and Results Company our the be the with for the on under that JAK the you devices biotherapeutic studies, fully validate used using scintigraphic mechanism drug on a as expected This into with contract. monoclonal with this model. represent the evaluating have in in In to our year. will collect a the has Gamma our therapeutics, to tofacitinib DDS the next successful, GI the orally. healthy first using testing will potential to pilot of biotherapeutics we first study a ongoing with technology advanced, for established to are used scintigraphy shortly, If fully via the radioisotopes. saline the of a characterization. will quarter be of localization upon includes promising method of as initially study

the first the the was are Dx interview, recovery, Rao that pathologies, those reminder, without SIBO. visits XXX range a perform the of expert, need of As being patients. a million and with signs has gold Satish be PIL of a the recent GI-related standard assays variety resembling symptoms PIL Dr. the SIBO bacterial fluorescence can Dx SIBO. SIBO In suspected overgrowth evaluating potential indication a new capsule over for annual with patient There intestinal communicated based for to small for

Our last aspiration, and assay endoscopic October. to followed for conference quantifying by bacteria award small compared bowel received favorably the ACG at the section microbiology

Our analysis the systems. location for the the for both RSS a second predetermined this is and is benchtop to preserved omic recovered capsule designed from is recover discovery RSS RSS study year. by well. two fully GI drawn first same clinical sampling in diagnostics program based -- on Initiation from samples the of continues cellular on to microbial, autonomous and will the be of locations can the track of tract. us The known extracted quarter for from Once and enable range progress the with devices samples

We we the I’ll now with partners continue for turn front, With data discussion on to of to our over financial additional be potential especially we fourth call the our that, medicine generate of advance results and a with actively our expect quarter d’Esparbes, precision Eric XXXX. devices. that autonomous pipeline pharrm for as engaged as developments

Eric d’Esparbes

results I’ll our and Harry, a to overview description. financial a invite you, our afternoon, for more financial our and XX-K detailed fourth provide release of Thank quarter and everyone. good also you review brief

third performance, quarters I’ll and XXXX. and of on third today’s call, quarterly line sequentially During fourth our our our call focusing in with quarter describe

potential net also million We another in quarter $XX.X we are We was more in-network XXXX. in comparison revenues meaningful which year-over-year fourth a as $XX.X believe sequential reported is Progenity impact of reflect and largely our include XXXX, but settlements. COVID disclosures, reserve in the payors the pandemic, factor million transitions of performance for operation, the in of the

QX, XX with relatively were consistent flat shown of compared As QX which XXXX deck, on earnings guidance. our prior page to our accruals before revenue is

ASP volume QX before the our efforts we benefits which strong was converge XXXX. improvements us in While started was increased confidence believe implemented of in-network improvements increasing by year, average favorable lower performance operational QX, cycle the and will revenue in vast of some all can We see our majority ASPs. in to management NIPT the our deliver payors than risk position generate last slightly December coverage settlement combined provisions, to gives with a financial government and commercial payor

we a range. our overall As result, XXXX maintained guidance revenue

the testing to While COVID-XX molecular uncertainties to remain around testing core to demand gradually dynamics, demand our and growth will continue and of ASPs. the benefits volume progress XXXX, growing believe transition expect rising see business we through of we

anticipate revenues core consistent ASPs to We reserves, flat internal our business, our compared QX and expect XXXX overall trajectory QX with of before we of achieve but that’s forecast. be as to payor XXXX strengthening stabilization we continued a largely

result a are ASP increase our mix increased effectively and ASPs our test X%, of testing of spite payor the in While our core an in management revenue appear programs. quarter, in excluding in positive volume revenues quarter, our so in gradually COVID was ASP, total fourth as quarter. by QX on based molecular during increase reported the during QX. This lower the fourth our provisions settlement This of XX% trend benefits the far continuing is we seeing a cycle

we a million expenses place risk the X% the various allocate spend, in due programs, the R&D based back result of slight $XX.XX COGS announced the and quarter where result period. to volume decrease fourth mainly quarter, had compared largely a were compared the fourth strategies expenses investment decrease November. measures quarter, of decreased control combined quarter, a we third with Our in the test XX% R&D cost lower during and milestones. quarter, fourth during achieving fourth stage-gated during mix during were to shift XXXX, third the in put on COGS overall million de-risking during slightly to a $XX the per the quarter incremental SG&A quarter volume of

reserve projects settlements Fourth difference which of quarter negative a payors compared net we $XX.X The the million to were for two quarters issued associated with $XX.X $XX.X $XX.X in fair quarter. $XX.X XXXX quarter cash December. million, million liability and R&D between the third includes change in in payments operating flows $XX.X to in for note million million the government negative key main scheduled and million, relates loss XXXX remain payor settlement a derivative Our in well-funded. value XXXX, Fourth December. convertible was charge made

settlement over three As payable million a are reminder, next have which we $XX.X the in remaining years. now payments,

proceeds raised quarter, a improved XXXX. $XXX convertible and gross to balance us events performance at had a the we believe critical million and that through operating of fourth into the of cash catalyst we allow pipeline issuance of achieve will the equity cash in second $XX have runway XXXX. half million notes We During a concurrent deliver end and R&D

we additional opportunities, intend approach will to to turn maintain over that, capital. receptive While back we now to to securing With disciplined call a additional remain funding I Harry. the

Dr. Harry Stylli

Eric. you, Thank

differentiation by we network through the by will As revenue of benefits many and driven of Progenity. look we average recognizing of improving ‘XX at we and the return sequential have coverage risk We beyond, growth, increasing by services, drivers and value-creation believe our quarterly NIPT. and to products generation outlook reimbursement and

address platform we channel. development milestones potential Precludia especially In progress and initially and compelling business. launch about products as Progenity We’re and markets. that non-dilutive further core We in is These our our months products launch R&D to our years. a we of capital help will medicine ultimately, that X vast for to and questions. the momentum more for differentiate operator, as now and unmet data, need ‘XX, value pipeline progression tests. of anticipate well-positioned excited clinical fueling Innatal as our preclinical partnerships we’re and meeting With gain and services source that, and X Innatal coming high the continue our will Precludia of prepare ready in generate precision transformational by we believe

Operator

comes Mah you. from with Steven Thank Instructions] First [Operator question Sandler. Piper

line Your open. is now

Steven Mah

you. the your be you transition, us these update Thank on thanks more a you give efforts? payors. management cycle account you in-network Great. are taking attrition should Could revenue is the couple we And And, Eric, the bit color year? give more A behind on Anthem billing, But, and us current questions today. little finally, for said You an to And this customer in-network when then, can and you? weakening. issues expect on discussions? turnover United expecting Harry

Dr. Harry Stylli

Okay.

So, of things. One, and business, one’s anybody. in Steve, Harry. attrition this that for is always A goes there’ll couple be

However, last quarter. the our to the attrition due zero it’s efforts down winding expect of end to close we by or essentially this to year, zero

And on new that’s So, forward start volume underlying made on go on basis, acquisition getting we the last in the based a visibility and we’ve growth. really of couple should seeing the significant customer quarters.

that. stop got there, So, questions see if any about I’ll we more

The reach of but rising that a the and of out-of-network sense. the which will model achieve business made would that hopefully, was with in-network today. advancing to quarters, enhanced are that advantage liquidation in continue revenues. both the we as us. the And will see We’ve resolution opportunity. That ultimately have And with could the with it’s a take as status So, have a efforts that past And implement harvest got the in-network ASP I highlighted actually And present, to are to of we as but changes. now And -- that’s And not you for range in take we’ve in United. and of question. directed, XX I said full been in-network. which advantage happening, part will we your this are beginning more our as to couple in-network, things there recently initiatives And question expect a hopefully, was that that of believe well. When okay? never to opportunity appear drive just things will say, discussions then, numerous increase the transition as no revenue. couple, as you gives to do. moving reengage and in quite expected. is go And And likely are the investment we are of and And sales Anthem the of we’ve that’s Anthem, the next full working come, is absolutely liquidation past being reengaged this and And investments be available to there’s that of with sufficient United. fruits what continue -- we just we predicated predictable. lot you to other us part course, we million whole predominantly lives from that longer year. us on we’re And it’s our to to in

the year, terms with major we in front on can last commercial payors two build in-network relationship them of us And completing also. Next of the our really have we that’s in that transition.

Steven Mah

this is Thanks great. and on color. maybe Okay, NIPT, one And maybe Eric. the for more for

need You a you And there’s change. and observed risk, ACOG do continue payment newly risk? on to observe recognition those to going our average booking tailwinds following average you basis, an revenues covering for to you are accrual those some that guidance up that build to revenue But, that. or are history mentioned, the be on expect you’ve the with

Eric d’Esparbes

latter. the It’s Yes.

that to in a rules. seeing that December, is new trend need ASP You core. QX. the good on liquidation in that pattern you improvement start we’re all The recognizing the news basically higher already before build And continues That’s the volumes.

already if look if average got of ahead, ASP plan, our had you guidance, a we’re at you to. So, that we original want,

that we’re So, happy very with trend.

Steven Mah

to of nine payment up that history? to six build think to Okay. months going And you it’s be kind

Eric d’Esparbes

And of the the if continue to friction Harry get coverage, will combine absolutely. in this adding all process for you about, less And as with additional talked over coverage. reimbursed payors add gradually test. you to build time, then It basically leads Yes. this new in-network to

this positively. very So, we see

Steven Mah

queue. the Thank you. in back hop I’ll great. Okay,

Operator

you. Thank

Schulte Baird. Our next with Catherine question from comes

open. line is now Your

Catherine Schulte

see questions. any screening first Can Hey, to saw bad talk first, volume I monthly on far I and carrier quarter? just in attrition you your guess, guys. comments for account starting about NIPT quarter appreciate in for the that in some fourth you winding the the Thanks down. so trends

Dr. Harry Stylli

You take, Eric.

Eric d’Esparbes

Yes.

end seems also saw And that we profile. of very be trend in the year, of to signs positive January. in positive So, demand at terms the volume

As Harry mentioned operate it but a little did the to that some bit you the have labs. little have state we a patient affect bit you if want, earlier, When a trend. did want few disruptions also behavior, just you ability affects if weather basically abuse power, it,

So, But volume. new our for of overall build up, that’s kind we’re why there terms really starting adding winning, that especially guidance message the we terms to trends of been demand gradually in updated QX. that the we’ve good accounts in seeing of is

of basically coming together. this is all So, gradually

Catherine Schulte

amount. hey, those took the usually initial On can talked in about $XX and you the confident about, million less believe was the $XX.X how are million fourth right you the settle accrual $XX.X that of Anthem around that quarter, is you has million original for the number I number? But, amount that you talked than

Eric d’Esparbes

confident So, we status negotiation are our best and that discussion say so based reasonable the a I We the accrual. very of this the on use judgment, would is far.

as to reference. comfort a a have we level base is that high a use So, this good

Catherine Schulte

the maybe on we’ll last then, Okay. And medicine side. the spend precision some time one,

progressing is update far? any last so how on OBDS you the signed Just collaboration August final for

Dr. Harry Stylli

the advancing second in Yes. to of expect which the stage, quarter. preclinical towards to the It’s end engage actually we

Okay.

And interaction as we And very moving as the great both, strategic basically team. progress. well nicely, there, with So, oversight that’s great the it’s making are project group it.

hopefully soon. So,

hopefully public We a more will because gain more in -- visibility, share context. we

Operator

you. Thank

with Sung comes next Ji Nam from Our BTIG. question

line is Your open. now

Sung Ji Nam

questions. my what’s kind you of Thanks in about new efforts talk kind talk what when you of account, taking competitors guys are about Hi. maybe drive for displacing order could and there you to making gaining value that? and Eric, Harry driving

Dr. Harry Stylli

case, displacing competitors. we are So, in every

in so, are we’re competition. And these accounts winning direct

we’re recall, up losing, when But we they’re ending are you accounts competitors. literally that these attrition, talked we’re losing them. with If account

We’re we’re directly to at in not high us. differentiated. them multitude competitors is reason pretty this in rate believe the business we probably But securing directions. why our losing are products the reasons. case, this the for But, competitor from are And a obviously, we doing

target than in differentiated. services physicians like, we’ve rifle help way sophisticated if Our been past. tools able the kind much a And more, using of are do needs us in the shot accounts we’re that to increasingly, and of a you

Sung Ji Nam

got then, you’re able yet, any feedback we’d X Okay, to value love in might customers to hear getting if And of don’t know proposition terms potential talk it. of I customers, to that? Innatal but the be of your from kind about you

Dr. Harry Stylli

amongst you excited the had like, data. rapid KOLs. And turnaround. faster the We top Because of need consumers, preliminary, turnaround. if discussions a focus much with for very quality a the idea But, very a line on for the is always there’s they’re of about demand that, there’s

get can possible. quickly as is data that I So, as if

And for initial that’s say, would also where offer. particular is this drivers that terms first And end certainly could which of be the would things help half to will key anticipate advantages, is with -- business of of discussions XX%. by around reduction will our resonating I us, course, another in we So, the one advantage, but the of or are become COGS coming customer, our of help in platform ex-R&D of ‘XX be direct the into a ‘XX. the breakeven

And that. us also about should the we more of excited marketplace, flexibility we’re that in gives take choose it. to advantage So, pricing

in a access kind can we of win-win relationships customers a cost more effective other way. and partnerships through So,

Sung Ji Nam

to same lastly, in you at you’re that your That’s very the costs, time have And from reduction then, commercialize. terms manage you. some about but to me, helpful. force, of in Got the new products looking obviously, you’re

-- forward? is infrastructure So, potentially how should you or right currently that going the further more be add have, headcount about will commercial there we plans to this size or think

Dr. Harry Stylli

the well Precludia And sales, and expand And will additional Innatal thing of give in we novelty. as will we’ve to got broader channel. anticipated a and to be to achieve with and in And both sales that accounts in-network. investment in reach. as both is doctors’ doors a -- relatively a invest skill support There in going is, lot uniqueness we’re physician X the opportunity and access thing more mature its existing distribution sets that will for our is to more necessitate and exciting us Precludia The because offices, force access to because to open support an other addition to are example, in-network get more capability that channel.

would given footprint Okay? relatively our investments, incremental of But, scale be these today. the

Operator

Thank you.

Andrew from Cooper next comes Our question Raymond with James.

Your line is now open.

Andrew Cooper

looks Maybe lot one. of covered. think has you anything what something for light you there. contracting, what of terms stuck rest for year, a could COVID visibility lot is at that on of guys. Have that heard you and in on? can been contracts that of a your Thanks so of this the about the questions, like us We’ve the like, down, year? we things with really have or like numbers from that just side of the sort When give A the slowed the things point players you bit little there or won screening looks through shed that

Dr. Harry Stylli

opportunity, finding into I contracts, we’re go obvious for and of Yes. We the where secured details reasons. won’t

is for recently. this But, dynamics -- where we But, and And focus a up in us, number you end know, taking we’ve to it’s run. really business, very advantage year. incremental our about as long So, we changed of you like And have opportunity. we’re is hard contracts. now core have opportunity. that forecast And that secured of this through an this going the significant to said, the been we consistent the are both

additional in end in when and in explore position comes of as towards and ways they going winter So, the as to drive be ways that is course, demand, the year, be you -- you’re to then, those arrive. kicks view spikes. And in additional the believe a will of the there’ll

margin So, that’s going is an provides add as to for this really what Eric you. additional It to I bursting invite to points. But some opportunity optional my would tell and recall, And I’m volume. he’s provides, us.

Eric d’Esparbes

guidance we’re on that’s Well, ASP compared revenue ahead, I and Andrew so -- why Because we overall the to far. specify wanted so, right what now, is range. to already the add

And progress. move minus, we as with So, is result, currently. pretty that the the later what that we have view We’ll things pluses going give as we you a feel the guidance some you updates few we’re during range a and comfortable throughout as to have year as year.

Andrew Cooper

months? there’s that’s outperform award demand, feel No, much ramped that the the Certainly is see out leader that, are around and up and how core this over some market a of you the But, if accounts, need changes hard When the the what really winning excitement Precludia on I’d on any maybe as shortfall around it you there of quick approaching follow-up. to just is. there. some about appreciate think where, as several core it’s like in excitement you’ve you out rather there’s an in that like COVID, more last And changes or When for launch sort the product unmet perceiving your predict. any great. and things of gotten that’s level and I been sales there, some preeclampsia, you’re that on out the on what some data mean, folks talk I the real new and

Dr. Harry Stylli

the -- have for And an learning that is interested -- paying And But, by know, up attention excitement picked look ACOG you’ve I premature that it’s the this obviously at on because channel sign with really think, if extract don’t you code the in clinical promoted May. we a Precludia in any it as abstract based about on is accepted a whatever presentation the at test. shared about public our accepted we this, we I or as community stage. interest in great we’ve more not -- and today.

good a that’s sign. So,

of both really market We’re on post-validation broad the up ramp reach. the efforts and of that use utility clinical the other drive findings, will study, as studies. our to market. as our also dimension education studies, validation a education is and to from to drive market and receptivity going that in prior And And result well

engaged payor more commercialization into the to helpful. we’ve super Sam this we’ve quite form the payors, initiative opportunities a future, we’ll and -- And also a and set, a formally once Now, back they’ve the that and to bit in turn gone a is Jeffrey been in second really Nussbaum we’ve got representatives strong we opportunity we’re detail of and pairs. on Alter, excited Board go occasion, to this

look, is to And didn’t lot It rule-out economic there the payors So, of seem of the test. get the a other And that’s benefit really explanation. the require great receptivity. thing. important

to sufficient are the to going Okay? answer value the utility test? data willing patient. is, the a we’re payors the of going post-validation. getting And the It’s doing program be in study accommodate order critical the seeing that payment they validation yes. piece is, our not to going it’s are to for just they And physician evidence-based. education and is And, what addition launch -- are of the essentially and most It in arguably to be you’re clinical

reimbursement. So, to market, the channel, both ultimately all events the conspire going educate these awareness, are to and build, achieve educate

Andrew Cooper

Okay, I it. great. appreciate

Operator

you. Thank

question comes Leonard next with Wells from Our Dan Fargo.

Your line is now open.

Dan Leonard

you. Thank

for question your core a molecular XXXX. So, on first, guidance the business in

guiding is rate you’re ‘XX. XXX,XXX forming the core, XXX XXX other from will? provides in into lift to Can about what in -- in you run if XXX,XXX about went for Your what tests bridge you buckets, but

Dr. Harry Stylli

in I and a the to is One that mirror, is our will think, that’s attrition that we straightforward. large efforts essentially due speak. experienced rear building headwind expiring, processes very be pretty as the view we’ve it’s

accounts that’s begin very And the we’re to looking early new team Secondarily, if just are in occurred, that number has reflecting going has few about of at in a kick numbers. to Those account acquisition our the quarters. significant the last in. delivered on

drivers. are those two those biggest And -- Okay? the really

in next force, which so. anticipate expansion of is we sales quarter the third the okay, The or

as we that done. really recent out, however, think correct lever unusual the top-line on So, and performance the give I it trends, the be, And are to business those would to are significant seeing. our are they were based drivers not basically playing basically that judge will us because transient trends,

reasons And are go basis. already where a the are end forward up I drive materially business of on help would to that. actually is, annual for if end other our you we the ahead ASP -- -- seen already we’ve at So, ‘XX, look fuel on ahead, thought we all and going think, we are these then, on top the

ASP, to, many Of to course, play there the we need in anything, are as to fire, yet harden we basis. if to irons go pointed ASP on forward a but and the expect, a the we a role. great sustain hinted as And we

presence, So, And we’ll the And which Precludia, us ‘XX up it I to doesn’t towards our our in I with free potentially those toll more menu. that up channel. is are that’s build a right of open factor And end reasons. to But will But, year. the effect -- going start marginal a the ‘XX build as in is and that effect. education. result believe channel of -- course in the doors see enable

are... those So

Dan Leonard

provided And you some. comments weather then, comments think all What and on I but on that, I given QX? Eric, missed some were the QX

Eric d’Esparbes

Yes.

a And, us. Texas is what reason to the Midwest. storms said and there the because were February, outages in quarter I guiding in pretty market a So, this and why flat we’re relatively for is substantial power

It has that bit delayed kind So, impact. and postponed of certain a things. of little an

full the get of trends. benefit all the So, you don’t

Dr. Harry Stylli

Avero our between was in resume example, for days, for, and FedEx that mean, least believe, Texas period. and adversely impacted XX not we I and I business in at for services X UPS Texas did --

to of you’re recover you’re all not bit So get Okay? quite that a volume. But, yes, going to going of it. scramble and

Okay?

Dan Leonard

just molecular, getting then, lift potential you the core about that NIPT, off? importance of paid -- XXXX proportion And remind average And of risk? what in if can NIPT, us average the what proportion given your So finally, risk proportion you was what of of that Okay. was finally, weren’t maybe, you think here.

Dr. Harry Stylli

So, that’s pretty straightforward.

two-thirds, And being NIPT volume fraction or so our our paid volume we and of tiny of So about average risk. average is risk. were a NIPT approximately of on XX% is two-thirds of

Okay? in and so take I to be were which again, to you I’ll year, recognized today revenues, to drop It’s $X grow and XX%, run first the forth. minus I’ve to we million as volume in is, recognized you volume more think, or how plus the occur, to assume the therefore quarters. bottom XXX% past expect factor likely if about line again, $XX like, So, you that’s volume on that, got be not and expect is but question material benefit, averaging to goes and coming in million, say it and might your so we being a like could We revenue therefore not then growth. okay, last it if payment, said rates and that that

comfortable increasing. ACOG later for in the by demand is The other risk average served are that there was those channel seeing hearing is thing being demand because average now that testing And that was that probably we’re that physicians -- risk feeling we’re and suggests of for serum demand that guidance, there more the prescribing patients. about the was their

evidence So, that last of in we’re seeing months. few too the

Operator

time. further back now over to remarks. closing like turn for not at to Stylli I’m questions the showing you. I’d any Harry call this Thank

Dr. Harry Stylli

the on once all for thank Progenity. again in call, participating you Thank and your you for interest

contact afternoon, please a or additional good feel Thank have questions, evening any us. everyone. good If to free you Have you.

Operator

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

may now You disconnect.

Biora Therapeutics (BIOR) 19 Mar 212020 Q4 Earnings call transcript