TLIS - Earnings call transcript Q4 2021 | Talis Biomedical Corporation

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Operator

Good day, and thank you for standing by, and welcome to the Talis Biomedical Fourth Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions]. Please be advised that today’s conference is being recorded. Instructions]. [Operator like President conference Relations. Corporate now Faucette, to hand Vice Senior Communications to would over the Emily I and Investor go ahead. Please

Emily Faucette

quarter Good in call. you thank and fourth afternoon conference year for end and Talis' participating

press ended me copy update Roger our can company page for and and release released the Joining Executive financial of results today year Officer. Moody, are quarter our Chief at Rob on Chief December today accessed and A Officer the Earlier our its of Financial that talisbio.com. XX, the XXXX. Kelly, the be full business Investors website

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

appears in today. section information and the entitled regarding issued Talis in release statements uncertainties forward-looking press risks these Additional the

and disclaims broadcast information any is to filed Rob. For or XX-K update time-sensitive This with its Except obligation of Factors XX, revise accurate by company's call to over of future With whether call only a the and more turn complete XXXX. XX, would because conference like on section new live and forward-looking information the contains of statements, XXXX or March Talis the as financial description, please SEC that, March projections the or otherwise. events I filings. including as the law, in the the Risk any SEC filings with intention other company's see to required list or

Rob Kelly

December. my us. of for in And thank role participate honor Thanks, assuming as CEO Talis Emily. Good call earnings to you back It's the joining first an after everyone. afternoon, in

Life who operational company's years Science as not at I familiar commercial leadership For in various and to Commercial and you those Chief Illumina, Biosite. including companies, my XX background, Genalyte, the prior roles of Siemens with and Officer, Diagnostic are serving spent

as the Given the business months delays we Talis into diving has opportunity to assessment we spent upon And through areas take are outline much our the facing. the based to set been Tallis the long-term importantly, with specific we I you walk understand to immediately issues better believe success. as information I past initial more have three that will transparency possible, have changes I today. are for want implementing this experiencing, up my we will of

initiating of scale. a XXXX. phased we rolling Talis of in rollout where with at stand Upon take phased to have to launch not with a of beginning challenges started approach begin due decided in with me quarter we launch prospective first out today. for manufacturing November, a Let to our the the goal receiving EUA System yet our we One customers Unfortunately, Talis limited One

System and Specifically, not see while in Talis commercialization. the our Talis it is we performance in are that a performance strongly current believe belief sufficient platform, process in said, we yet One and That's of the high and support viable to One yield is manufacturing asset. continue consistency the of to steadfast valuable our the

rise. One scientists impact that of our the of we is believe COVID-XX on monitor strongly the continually are reasons variants the so

One load. with back spoke yield and lines. with we continues identifies to you respect off expected including in as the Omicron. to to performance the variants, high cartridges the samples with and Over past we sensitivity When and coming specificity, range evaluate Talis well were we circulating broad several so notable beginning accurately COVID-XX November, of as Delta our And months, doing system as test evaluated viral the have variants of perform

in to respect support up produce it suppliers. to our monthly At a what our than the this past is months, delay not failed acceptable. a appears minimum time, or with few we and rate tests yield is higher invalid launch. With ramp remains current to manufacturing yet optimized a our manufacturing, these process manufacturing instrument commercial believe challenges process of a Over combination is of

FDA delays under now Flu guidance on launch second commercial respiratory we plan our EUA, for of to are pathway the the at to not timeline in informed scale. is and XXX-K can Both have of based the a will we Further, assay, a shift a on This once with information We are to COVID COVID-XX path panel. One preparing a longer result pursue providing EUAs, launch. recent we today, for these planned have test Talis most continue reliably we the regulatory system which market. level to our manufacture

in not changed are chlamydia and gonorrhea assay manufacturing to care. menu the is current delays. by But timeline up. the We test broaden of needs level our delays also have of this our Talis not satisfied additional objective unmet point at address we uncertainty to impacted scale Development One the with and that of continues

We success. have manner the challenges to to a effective capital deploy in our position these plan to Talis and most address for future

and both that the modifications. and production manufacture we path information at timelines critical our cartridges evaluating will guidance informed and have next information our have our from Board, product advise include and to develop firms on product consulting engaged today partners this manufacturing bringing inform assessing With design scale, in roadmap. will could One appropriate forward instruments us to processes steps, external We work provide for our market to we for better System which the and believe to determining Talis

Officer milestones; underway, carry we three, phased resources ability this a instrument scale; launch initiating our One the four, manufacture To for is Talis and cartridges at the demonstrating through to and XXXX. reduction measures. more be preserving in down these of cost our While cast prepare the align additional with manufacturing as development impact provide are two to team. several will stepping on cash the Chief EUA; and making under in COVID-XX Clinical responsibilities to transitioning concentrating next have us to for weeks. the over XXXX Liu R&D One, Roger also and Doug extend we strategic We're assay Operating undertaken and direction our and changes detail on XX% areas. our shortly. Talis implementing have is following runway, will approximately focused actions key One plan strategic reduction his leadership established force a assessment

We clear value a One strong With changes, the are we commitment System. and position focus the on financial a these capital. path we Talis preserve to on long-term to deliver of and believe potential objectives,

committed walk at now care. year through I long-term point delivering need the to not advance to accurate emphasize of outcomes will equity mission our by to return want with then have our I'll our goals disease and over fourth testing end the I to call in closing Finally, that infectious health and fulfilling They're quarter moment changed. fully the financials. Roger of remarks. to turn

Roger Moody

Thanks Rob. drivers were Manufacturing scale XXXX the up year of largest full expenses spending.

We are building from to reducing optimization. as this manufacturing and shift our substantially we validation investment infrastructure

are while we One the reducing investments, our is Additionally, Talis commercial launch delayed.

outlook, our XXXX. With these current plan runway cash current changes in our to extend through we

Grant leaving XXXX million by year contract financials. development quarter with and $XX turn Research to primarily was $XX $XX and investments in in $XX primarily in compared R&D million million driven XXXX the approximately revenue RADx NIH was The manufacturing instrument to $XXX and XXXX. in manufacturing in inventory, by to revenue spending recognized $X million and is spending $XX XXXX $XX in We million compared for years scale. cartridge year both now fourth the full I'll that million grant in million in million was include in in full recurring driven expenses. $XXX million in completed. XXXX Now scale, inventory,

$XX to to manufacturing expenses by driven of Inventory $XX and company amounts charge in the and optimization. in reductions The of sales we were stock expenses. expenses out administrative we and timing by were reduction largely and increased spending quarter be the compensation, general was XXXX, were in One XX, facilities million $XX million cost expenses. taken and in a a savings XXXX. expenses the payroll, launch. increased teams, reductions. in in Commercial annualized $XX Today, other up force investment increased million. million million and XXXX of Selling, The by will expensed due million. million, scale include as The compensation in $XX administrative expenses $X our as and of Our $XX public are December moving million further this equivalents Talis implementing $XXX the completed general in driven as forward Cash XXXX, of amount build marketing announced compared commercial and these validation cash transition to

and could gain trajectory Our end current sufficient change are of more we on objective our the clarity timing for This as One our that reserves Talis to is cash operations launch. the of through ensure XXXX.

year. antigen began tests third-party to distribute we this Finally, COVID-XX earlier

may, expect significant from term in over the pursue not revenue other revenue generating closing time-to-time back turn do opportunities remarks. for will to contribution near call XXXX. now this, I Rob we While we like

Rob Kelly

of Talis at a Thank deliver personal to product complex you, challenging harder system most intended XX results some result that to designed and disease. rapid the I multiple you. and a pathogens In Roger. has scale. deliver like than with not closing, in requires share thoughts a for would to manufacture my minutes This just is infectious less but

system throughput, I reasonable now plan bring path in are ambitious to Talis original One While to a to market. scaling our the high for rapidly believe on we

As doing transparency, care unmet timelines operating confident occurs, to we and committed team, address I management and large things taking today. control and remain current testing. it and not the future overcome cash with issues and we point and is the quickly our board molecular Talis differently this well Together evidenced to work efficiently will by with manufacturing changes actions matter resolving that when of believe more with when confidence, to are we are a positioned as our our appropriate, establishing challenges, to if in growing need of be

and our in our Finally, and company. to for questions. employees With for our and guidance, I'd I trust the to Operator? for our our contributions into importantly, the recognize mission. most open line put Board have patience like their relentless the shareholders support And they for unwavering want that, belief furthering dedication,

Operator

first Thank Peterson Instructions] Our you. question [Operator from Tycho JPMorgan. with comes

Your line is open.

Unidentified Analyst

Tycho. This Hi, on Casey is for guys.

Can Are supply help in what nature you're look manufacturing of in what issue? technical understand like? is here? you will of us challenges cartridge, the more remedy or it a instrument chain you the noted. or facing they terms And So the

Roger Moddy

third Thanks first This as found of start all, reviews, me The facing, Roger. Yes. the taken different system is, challenges buckets, another well issue a help is for haven't control few fundamental a the fall own a are yet supplier through who product look. conformance a we of let variety There is is design through manufacturing outside our into have quality with experts -- that Hi, they as as in issues, process we're of one, question. Casey. provide color. the little any and

Unidentified Analyst

concerned, as Yes, that's far been is in then sites And of phase five the helpful. launch. think targeting have you the as first rollout

out XXXX? potentially receive year? And we in So any you strategy for approval are test any this pushing half year's quarters combo on you assay, the respiratory the pursuing that a or, have effectively in season confidence product second the of XXX-K, that not the expect the here you're for do could should revenue back few note, that

Rob Kelly

So our products. you pre-marketing. last that the for relevant any of question giving may asked at not around the this be time discussion launch to quarters we're timelines But

we we they begun with actually to our best studies feedback customers. invalid weren't And to putting And identify high going started so had that enough customers. were we because that to pre-marketing suspended this be forward that, get rates foot from

timelines more from arrow really we a be. perspective. will really, we need more provide And, because have, stand information on so we information smaller the And we right where now, manufacturing the the bars can't

product get not the believe viable we're well, detection, we so be were very high valid in can a One just that believe and those on studies, itself across variant challenge, going the Talis mentioned. product. that And can we we it's show valuable a it making shines And and situations. continues focused performing. But the really we to really that strongly to asset, clinical in we happen. in like to or rate And when supportive. and and is product board, our extremely utilize market. this is whether And really very take it's still They I this,

Unidentified Analyst

new to sort you. from add this for with some on there that respiratory foreseeable instrument is of talk there trend platform demand you And for as you the willingness you of appetite to whenever cases for comfortable what market? can towards menu Can a aside comments. being Got continue is future? for the testing downward? to Maybe new up get of product to absent How testing now, customer follow maybe a are COVID

Rob Kelly

of it's great now, you Yes, market. right a a yourself that feeling one given And slowing there's we're it's ask COVID a question. if still would

molecular same market. early Just vendors. see molecular current front been to still able start in, are But larger because companies. demand their time, for people the they one can't to product. been our demand is something have are there of you it just been the molecular little what is line terms yesterday, all really not of access out who bit that understand get and of their but as There would some to the still testing, I somewhat because are testing, as of to out products system are to first that in get is to we shocking, think from able to just the on it's with of our get top of there And more nuanced. antigen you they when fantastic the And to when at many a who sales me who haven't and testing, dig reached is, for like have individuals the cartridges to is, -- operations presentations, these looking folks the down else, have only folks still, see going hospital it COVID

really these XXX-K a of the instruments are health pandemic road testing COVID But see endemic foreseeable as COVID flu the looking that could to a for even. down And believe we're tail able opportunities we install to the we at customers future, long from coming We do drive therapeutics the so I put be honestly, places the will the product sexual is COVID that more well. be women's from for is potentially that molecular vaginosis, then could But CT of be testing. expect be market top market potentially could those you that items. go will about are and where And product, a believe linked the out getting adopt we menu that into in going to that value list there, long our certainly extended NG asked Because as for we flu term our that also other there interested going have the us. be health us, to our to long-term to and which bacterial for menu, why shine. really think into product the of customers to is That's via to base. going and

Unidentified Analyst

sneak Got last I If you. just one in. more one can

to clarify. wanted Just

give burn we not cash think you So think should you And heard how correctly, I did for through you a said XXXX. I I -- XXXX. runway if number

reduction manufacturing. workforce confirm those Salesforce was you. kind what the of like in terms Just versus to of wanted around will numbers Thank curious and look

Roger Moody

one, that take Casey. I'll Yes,

providing our to not are preserve on to the flows we for are we that objective guidance cash cash our is XXXX. year. But -- last correct through you're So revenues or

the of larger reductions across we took, they organization. in terms all the They were that functions commercial In force team. of were our in

However, intact of across our we left functionality part have business. every

Operator

you. Thank

Our comes next Bank of Derik question Bruin from De with America.

is open. line Your

Derik De Bruin

on what back mass afternoon. when for realistic sort mean, get Hi, this your long NG other it the panel, how of about, need it plans, get is think STD and we menu do you to before, and for I I think like it there. if a you some bit you CT you was sort Can HSV. a was sort of at talk can CT do vaginosis, bacterial little good original health? a NG, go then And sexual one. of critical an to was you mean, look

out. some we sort So this think how idea just of on building about

Rob Kelly

going together Hey, any Derik. in that we put And first figure and the while of scale can't and of can development still confident keep manufacturing all, that on to timeline women's some is out are a provide now, while I we the continue guess our a up we can would of be menu. to I as we little health us with. this challenge right we dark until mentioned, continuing health sexual timelines, say,

Derik De Bruin

Okay. from EUA when And the actually, think incremental in XXX-K to when you about cost what's going to a route? the

Roger Moody

cost one, not be that submit. that you samples used incremental a take created pathway Derik. that number to a overwhelming, The of is I'll you as to know, weigh to the is FDA enable reduced

increase. would that factored trial the And burn here. clinical obviously, into we've rate our So costs ongoing

not just it's it's it millions and of And XXX-K to specific method, well. high it's you that collected of not be do the in it, going call larger to samples as not a so, that I'm in through longer amount, and let's to the, need but give does a take the dollars,

Derik De Bruin

it. Got

I you. that's Okay, Thank think it.

Operator

Massaro question you. [Operator next Our Thank Instructions] with Mark comes from BTIG.

Your line is open.

Mark Massaro

the you taking Hey, thank for guys, questions.

think this it able GenMark, design, I sell through rates with who they and I had and similar issues get billion. invalid process together and $X.X for to lived were with before

definitely of So, you're us failed just expand you can to they're dealing a to facing? what Are challenges little speak invalid the there's can and XX%? I specifically manufacturing bit sense are? with or you You challenges what processes give that a indicated, more hope, then the about rates too for maybe you're they guess, what And some over high.

Rob Kelly

under Roger the EUA FDA sort comment look Sure. X% product, rates, manufacturing be can and preferred to and viable invalid to about a the on during XX%, of below were talk you have mentioned guidance But had if the processes. I at tests that you standard then they the rates. invalid can that ultimately, period, they

issue. challenges down But given really obviously our significantly say seeing So And back invalid varies, the XX%. is within our our above with But what is window. XX%. having in with we're it's goal that it clinical what I study, under it And what's wouldn't are the to manufacturing for was is above EUA. a causing we line get rate XX%.

Roger Moody

Mark, And I'll manufacturing this the on in Roger, processes. chime is

give but going were number and production to assembly into issues people. manual I'm just of We get a we're with bit manufacturer a specific I'll with of you to able of dealing in cartridges So this. for small not little that sense a

are we expanded of up. However, that cartridge lines as a we larger as tighten that had realized we there expanded our we our people, instruments number assembling to to over of automated to group things a

would automated that parameters lines. QC parts assembly included in instructions work various be around So of the consumable

And are one so fundamental any I'm as to be scale. order facing at that I examples. to of But scale here. just going things get specific into in before, those design we're issue because not it's not series to refined It's a manufacture mentioned that to need different a

Emily Faucette

November, Mark. could I Hey, had in about we exceptional in approach spoke on with very rates. experience guys, in most we last for phased launch we jump a is to invalid talked could the way. our Emily. just customers This give When so really rollout deliberate, methodical product this regimented you the that

and ability why studies think, exactly conduct get this few I our taking so hands customers, this to is this to reason approach. issue we And a are pre-marketing into of identify and the the

race, also very little with time, they had bit learning while view the do during not product. our it, really so like it's how And And a working customers simple. learn the this about we the opportunity to about only invalid

allows we forward. thought as experience best step we're experience, feedback to But as a soon offer and ultimately highest can imagine, this thing providing the saw rates, customer And that prudent these product move to and we you quality our most we for that as is goal getting the multiple areas. the back disease we the are it with applying exactly address invalid So the do customer over with us platform as about them. best as take we long-term infectious deliver think to was a really to valuable

Mark Massaro

excuse Doug tests? follow-on sales that. the is, size question, is of leaving staffing you you a me, for to say the guess, he's leaving new the Liu your I is firm what a or a the after for part then reductions? my to leaving part distribute Is salespeople is The safe are is, position? firm? is indicated it is last the three-parter. And third-party Thanks What force the And second search rationale Okay. for then antigen the conducting COO? the And asking

Rob Kelly

Sure.

the your the start Let with force. size me sales first of question,

support of a general So that sales than our handful, and service, team which significant group and but we product, range. I technical marketing, includes taken that in in has sales commercial a have is believe somewhere customer reduction, sales, customer more on focused the enterprise support, territory

And third question so maybe distribution. linking asked on that to you the that

those a a sell numbers at much testing great So larger and place -- idea leveraging team we to and had in had obviously their the was time. capabilities antigen

it team importantly, think the out be on focused was their in and and our something very I were we get most hands for get users. sell. would to helpful end But that customers,

And were the we staying chose oftentimes, have of time. and testing. to looking confirmation a And our bucket. molecular antigen there relevant, out staying talking that course, in system engaged, were testing we about reason had wish the Talis people could And So that One. have we that's

wish same for its we wherever But continuing the we And One keep we COVID. that health, about a were put look extended there our One. while we're very the issue fundamental We about, well, things it's next. I great you that technology, So we've future, scale think design bag, question one from manufacturing for is relevant But core with best shared going is can overcome. not technology your the not following the very then of him menu most he we'd in We and capable we'd is see guy, the product. doing importantly. data we and in the of on much great at do in to in past. I goes can third is just He believe forward, us Doug believe that be as it's that women's to and really, and and so it's customers something some challenge could strategy, always Doug that some Talis the right And alignment for things, that Talis talk the of strongly that the things. of

did probably for we're With the out he time happen. to to very and so that that talk optimistic we And him right and that's said, determined of transition And R&D things here, is amazing one is, organization. covers of the the and that Doug of an under team while built was he manufacturing. all great him he aspects was and going it about team I the

chain, we allow all now. which we So goals strategic us us launch plan, goal under at is to we're software, we place. do strong. think our our operations, achieve manufacturing, And to, manufacturing and individuals get EUA that can out come we have in are right so we from to had that supply something assay, unless set backfill in we engineering, And going and is of scale that to the to right extremely the think team need these in across Doug, makes think to short-term

Mark Massaro

you. Thank Okay.

Operator

this Thank you. closing comments. turn no And the I'm showing at to for call Kelly, I'd over Mr. back like time, Rob to further questions.

Rob Kelly

all Thank great day. you joining Talis. interest Have time us for you for your And a today. in thank and

Operator

concludes Ladies thank call. conference gentlemen, today's This and you.

You Thank wonderful for may now have you Everyone your disconnect. a day. participation.

Talis Biomedical (TLIS) 16 Mar 222021 Q4 Earnings call transcript