FLGT - Earnings call transcript Q2 2022

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Operator

Good day and welcome to the Q2 2022 Fulgent Genetics Earnings Conference Call.

As reminder, today's call is being recorded. At this time, I would like to turn the conference over to Nicole Borsje. Please go ahead, ma’am.

Nicole Borsje

Great, thanks. to call. Genetics welcome financial quarter and conference results afternoon the second Fulgent XXXX Good

concludes. call will are Weiss, company's of the Please the contain call The is Chief questions replay and to prove On the and Investor available access today audio Perthuis, website, available company's audio represent Financial be Paul Executive of the Brandon shortly this Investor call its of incorrect. prepared Officer; forward-looking fulgentgenetics.com. be your Kim, visit Relations section press forward-looking views statements assumptions, Officer; in release answers management's company's An the Dr. financial Commercial which the the Larry Chief will after These Chief discussing on Officer; today's to Ming to estimates Medical may call website statements. Officer. Hsieh, results current remarks based Chief replay. Management's and section Relations on

previously today of the is Please income the discussions that for prepared results may release XX, or any see or information, those predictions contained results in these financial company accordance for in GAAP these calculates believes statements XXXX, and in in these to Management's quarter in described forward-looking forward-looking financial the over any with by the GAAP. has results more to various Relations differ the the Exchange with States principles comparable may per the filed may materially with in reflect the more December events, and forward-looking rely prepared it to contain in discussions directly prepared obligation of with measures. future United or changes of earnings cause and events, second GAAP. are share, to a now financial most actual presented as the management's measures what to XX-K on statements. and of cause review for including As a circumstances description to financial should XXXX the share, how forward-looking company's generally year of non-GAAP the viewed from Investor update results statements, ended accepted the changes accordance of related superior statements. not With because Management is the future reconciliation income any the may company company's earnings financial today they assumes actual measures the not press statements remarks, per to discussing understanding but The forward-looking may to risks, to to, useful filings or that, substitute non-GAAP and that turn measures per call the including some described income Securities expectations. including accounting in make detailed be for, factors Ming. remarks not investors Commission, I'd Please statements these the in website. reasons, which should financial a discussions company's forward-looking income result, forward-looking for of it and share like its including available risk be as Listeners be to company's on from described actual including different statements listen should subject those uncertainties, and company's results, actual implied differ that results to in and the discussed no matters to they

Ming Hsieh

to to quarter had our execution we core a Nicole. very as Perthuis, over on much, thank Good to the of you strategy. some an Larry results. highlights Officer, continue cover you go-to-market CSI provide discuss our Then product updates. quarter focus today our update and before call turning call our for Thank I'll second afternoon. the Chief expansion quarter on Weiss XXXX And joining to and Brandon business. Dr. our good on very Commercial discuss approval We will

results look the the revenue and at our outlook detail. our Paul quarter Finally, line million where a guidance. second Taking in the cover of in was will financial with $XXX

test of However, revenue, about outperformance We the offset slowdown QX is business the of in the some directly to over year-over-year testing, But breakout a to compared in which on million. grew COVID-XX will X.X tied and XX% volume of the in million net quarter, high delivered core last XXX% we The softness revenue $XX.X business XXXX. in guidance our core over our year. materially the our in as down tests down cover came decline COVID-XX ahead view level, QX $XX million, a COVID-XX in of highs which between our positive. to the Paul the business detail. and the and to relative core more

and investments in to per quarter. million operating positive continue share flow and We $XX.X flow. and EPS generated Despite cash in cash the drive GAAP our in $X.XX increasing EBITDA

The by second closed was late marked quarter April. in acquisition which of Diagnostics Inform successful

and has a Fulgent's cover in more transition capabilities will platform diligently are genomic us smooth our of The full a early testing with built are marks this suited the although pleased have to detail, integration on we we across deliver CSI clients. biopharma Brandon with uniquely Inform Diagnostics seeing been the the to team of platform. Our suite business. working momentum we into Diagnostics Inform businesses

sequencing meaningful last this see building few ahead. business and expanding service in years, a been in over we as years to the continue operation the opportunity have We

from on As Dr. ran Wallar a where pharma their NeoGenomics, she division. services part effort, of this brought we Gina

as Prior have welcome also great appointment on a to scientist top our build we footprints Nohaile continue board of talent a multiple Dr. roles to had corporate as Fulgent with in an therapeutic members Nohaile Difficulty] both R&D of genetics and X, operational to responsibility Dr. Post team, oversaw board multiple coupled attracting strong in our the that had strategy. capabilities Leonard held industry respected platform. and new further future. therapeutics across extensive further where to a Biomedicines, announce the [Technical a recognition of one-stop to experience divisions. across To advisory who veteran to the billion testament has role end, therapeutics with of the to board Generate Their the Fulgent we Amgen Fulgent Dr. positions into across at XXXX. two genetic to his various opportunities and expand joined budget R&D testing to relationships respected is industry board a directors, [Technical and as is CSO addition to of a permanent we're as industry. $X Michael as increasing Gina momentum often pleased the Nohaile Dr. Dr. our Dr. he Post background our The genomic drug the the discovery, excited highly testing Nohaile commitment and genomic biotech of and are industry. August in Post of in and at [Technical Difficulty] Dr. and increasing new in pharmaceutical privately as landscape. contender Difficulty] We a also is industry's Fulgent esteemed and

ability of very our back to industry. drive We outcomes, are Overall, genomic expand biopharma in services I'm opportunistically the comprehensive combination time during patient relationship, and capabilities operations. testing to in to learning in and testing of on and capabilities treatment a look the which opportunities we more We NGS built paring expertise have leveraging continue ahead. our up expand and to team's initiative a to see number of apply this ability to facing to to As therapeutics the suite better in quarters that the are quarters. have our business also for our our that recognize genomics forward advanced and proud build others customers, a continued recent we seeing industry we offer to our execute more and challenges business of of

consistently with run And focus a the on COVID-XX Fulgent efficiency thoughtful this have pandemic. paid meaningfully investment. and has responsible, through off strategy We

has we not to philosophy plan growth, our leveraging differentiated and technology drive changed platform. long-term Our profitability,

now of over Fulgent. I will the excited Commercial are Perthuis, to turn the that our call to lay opportunity Brandon Chief Officer. We find ahead

Brandon Perthuis

Thanks, Ming.

execute clinicians one-stop a pathologists, of During hematologists, including clinicians, on neurologists, variety more. specialties, of the health our becoming oncologists, quarter, pediatricians, post for wide reproductive national we continue a and to second shop across COVID-XX strategy

services, have pharma first going to and also a service capabilities full an The We big recent impressive our us taken completion. our Informed with Diagnostics. as nearing sequencing years. and well historically steps is Starting to around referred our growth for sales couple acquisition over expand has of which team been integration the past of driver as business,

IT, into the We across synergies tapped company and have the sales right-sized operations. organization including leadership, and

the selling and to client vast client commercial leverage Informed to projects base. marketing multiple launched at also adult GI to synergies capabilities, selling cross including have neurogenetics base Diagnostics and our HelioLiver We neurology

national We base. successful. sales care have has managed will large presence, we that be launching to the be additional Informed a historical expansion the go-to-market, we has had services multiple territories Diagnostics team contracts have at but be where and sales client In the Diagnostics Informed identified not will all right to regards targeted

be technology class technology Leveraging We along the menus, with our and this bioinformatics Fulgent CSI to world Informed the excited launch to acquisitions division strategic Diagnostics, the will third from power teams plan our of team, of acquisitions, of are market on Oncology. actively in quarter. focused combining dynamic recent announce By precision penetrating recruiting of these are test formal the new recent we fill and NGS Laboratories and them positions our and medicine.

customized as oncology commercial needs. Patty one clinical to proven we investing wealth intend most a be Fulgent for in the the will lab and has a breath team, with include knowledge. labs oncology with offer panel. to multiplex brings analysis immunofluorescence approval sales discuss image to which of services testing round genomics industry including that go-to Informed a We have pharma an Fulgent technologies, Monte Del spent recent neurosciences. sales our of California, range launches state-of-the-art Larry leader proteomics and our also of research of along of national acquisition offers intend oncology also NGS as all the the their experienced assembled our research, of services out including largest the as in ability technologies on and modality pharma can excited offering FDA [Technical and cardiovascular, from Oncology career the for our division immunohistochemistry track edge with well pathways to our new wide and our complete for announce in her customers Difficulty] seeking we recruiting momentarily. that NGS Murphy. services. in Alongside States across experienced to Patty companion industry for laboratory diagnostics for record With CAP/CLIA all we other lab trial we a any division, platforms, of and as our initial Diagnostics offering with such spatial United We're research serve product executives, stains cutting areas, immunology her therapeutic provide success, are our

gold United soft With XX an opportunities. exciting the be launch believe onboarded offering early new we XXXX-patient in expertise wrapping technical, show the The standard gathered to trial multiphasic study and HelioLiver performance to products the a we HelioLiver performance Fulgent, up the CLIMB clients, economic to a prospective due the MRI approach to and development much be surveillance October HelioLiver, comers all is offering States. test proprietary new important a designed from carcinoma and very innovative pathway to and as that designed to HelioLiver. evidence market announce Switching tests July quite enrollment data standard ultrasound the we studies cirrhosis. services potential for be begin in this is to early To HelioLiver, completed the stage starting will of robust a over who high the diagnostic as the hepatocellular a controlled. we to cancer. as will Category increased in effective now evaluate also clients. in clinical going of fight We're liver liver to study With X CLIMB laboratory clinical access has The such takes truth. the is well. build cancer a that AMA scale And reimbursement prospective to are to code have space, has at We ability and we clinical to support code not of enabling this expanded using risk payers gold detection announced at to pharmacy a will in of new commercialization access, clinical to month. outcome case funnel our liver analysis healthcare continue primary of our take for our happy and adoption study XXXX. in a have our X, broader with knowledge, is CPT cancer CLIMB been clinical the for of issued most be liver large are the

executing we are have identified some market we feel our on adoption. strategy, While go-to-market challenges slowing we

One of challenges has and been phlebotomists these patient to centers. draw access

executed collaboration have patients have drawn a will just now the able centers across we blood be Quest States. and patient However, Diagnostics, their at with their service United to

been a was issue addressed. of CPT now Another a which lack code, has

team While new for code molecular creates pathology code, broader diverse continues across and we hope individuals across sit faster everyone. unlisted this with positions. and sales And approximately extra larger easier much the customers work have States open been is XX The process the genomics. geographic using a United code we areas the drives for Fulgent this adoption. and XX CPT expand different footprint We of with than currently ever expertise before, deeper at to makes and

to We Switching to have been to contribute recruit infectious some for our years we come. believe talent meaningfully will that amazing to growth disease. able

we volume of number process meaningful continue COVID-XX a trending tests. is While down, to

positivity new Additionally, fall, testing. in surge and is that contract be there Health to pleased testing we for need the ready help COVID-XX hard we've New to should demand a City be a will York tied of to are announce awarded been we well But predict. COVID-XX Hospitals and test from rate, are pox. cases for the we New We announced business running for be demand The will York screening. number of launching remainder volumes overall City. this morning to detection of a our is PCR and monkey the

operational further launch, to especially our with bringing pleased excellence in health products this crises. of rapidly, are face We the to new demonstrate market

clients, to we predict, to a is our have especially that available. our demand know, county hard want test While clients we large

In medication addition, pox for antiviral monkey available. is

positive test in diagnostic. see However, companion a report before as the some clinicians prescribing. Thus a want to manner is used

update We will as on this our our Medical investment stay new in Officer, clients close Weiss. Larry and crisis Dr. our Larry? contact with community [Technical Difficulty] health Chief needed.

Lawrence Weiss

Brandon. Thanks,

have oncology number of fronts. made progress exciting a initiative our on We on

CSI accomplished integration a we our First, declare can and complete success.

oncology reputation not was we that levels, oncology serious with space major acquired the high in a Difficulty] service into You our may recall [Technical regional a CSI diagnostics. great first was move for player growing. in but pathology really

been team individuals has business. with clients. across have been to recent integrated Diagnostics. employee these of is the reach, into the new integration becoming set attracting formidable pleased we the sales CSI team national platform, successfully With now leveraging leveraging we a and acquisition more and on a a have geographic its their team path the Fulgent's We've manage player talented CSI We've They contributions on our very also CSI service base, to basis. the Informed made help injected new of an extremely excellence, again, expanded capital and are and that

we the for integration, our stages in of have the digital leveraging but others cost similar of We within digital base, to numerous attention avenues, Informed turning resources and opportunity Diagnostics We're transform upgrade the technology business a do, footprint interest and pathology line, pathology. enhancing integration with are already in cross systems. has of Informed other hematology/oncology and opportunities client CSI expanding expands up testing new in as practice identified selling the and With our our oncology Diagnostics, anatomic integration pathology. to essentially their the early potential that the we our their opening to opportunities playbook. our believe, complete, synergies

color capabilities. replacing with flow XX we're cytometry state-of-the-art flow their color eight example, For

of brand announce a testing the under including oncology launch of specialty mentioned, Fulgent Oncology, we Lumera. Brandon are the suite name to As products excited

and and NGS flagship can as well this of clinical review TMB and a provide an disciplines encompassing we immunohistochemical for testing driven diagnostics. and line menu easily Our with appropriate combined MSI profile power XXX PD-LX to studies. guidance will [indiscernible] therapy And AI NGS combining as second pathology such multiple technology guidance. both solid aim expert genes, methodologies first, assay as DNA personalized term analytics, as tumor, powerful FISH profile of and of eligibility By be the well gene RNA or with assays trials and the extensive signatures immunotherapy third and as including revolutionize HERX

HRD in solid testing premier launches the for the launched aim Oncology's QX Our Lumera NGS a turn comprehensive XP for suite services, solid to source specialty XXXX. soon I July product tumor specialty single brand assays Kim. profiles. as oncology tumor as anticipate and shortly. call of well include products Fulgent Paul Financial of provider will will oncology evaluation including our a Lumera We hematology hem liquid biopsy inhibitor complete Paul? release, laboratory follow a hematopathology is Chief among additional for for in Lumera eligibility, to Lumera powerful suite profile, will become the boutique, space. in ctDNA under Officer, PARP the community best-in-class very testing NGS assay the was over And XXXX. now other

Paul Kim

Revenue guidance totaled in to quarter million. XXXX, with in second approximately $XXX the quarter second $XXX the million million of Larry. Thanks, compared in overall of our line $XXX

$XX of $XX bit our roughly our QX our totaled year-over-year. to of from dynamics. business $XX COVID Billable million XXX% in was Ming compared to in a further, to as tests decline our exceeded and million $XX the came grew [Technical Breaking testing The net continue due guidance and from totaled we business which year. in million moderate, which line revenue last of Difficulty] As quarter guidance long core in X.X testing down compared positive view a X.X mentioned, QX to Revenue with again term COVID million million. testing strategy. million year-over-year COVID-XX

business, our our our and testing CDC. Chinese from revenue the core NGS contribution Informed includes excludes As a NGS COVID Diagnostics, and JV, CSI from reminder,

capabilities, to trending conservative our for of of opportunities, COVID our the footprint work opportunities, stance growth COVID partnership testing. include We As expanding remains reach lower, continue integration generally post commercialization from ongoing and CSI's executing Helio a growing which operations. on PCR testing take the remain and expected joint on we with the demand investment COVID focused from Informed Diagnostics, on and and China executing volatile, additional on revenue opportunities,

$XX the first lower ASP $XX, the the saw was of slightly in Our quarter XXXX. second in than low we quarter

testing, in COVID the Our from to saw ASP impact COVID with along versus from changes Informed due test mix we was a shifting ASP $XX $XX an this quarter outsize from quarter due lower fluctuated and including testing Cost of of the our quarter has pricing largely on in of to per more first to the tests Diagnostics. testing, market. COVID away core mix testing XXXX in

a cost As generally portfolio reminder, in our above per test core is $XXX.

XX average more margin testing the per increase testing genetic gross percentage costs down mix, genetic The COVID as test associated reduction margin normalized our diagnostics. percentage again including core will core portfolio. cost continues sequentially. decline, our to levels testing with year-over-year points was XX So, Gross portfolio, in for due and to testing higher including from XX.X%, to points down testing was informed

testing, last a which was XXXX, gross a As business. realistic margin point, ramping for reference XX% core year approximately our our more target is plus, term in long COVID before

in investing the future. and plan automation overall in acquisitions in to cost our and structure also digesting while in the enhance efficiency process of We operations, are our

operating in XXXX. last up from operating GAAP $XX.X Total million totaled in second million of Non-GAAP $XX.X $XX.X million the million, from expenses. quarter. $XX.X expenses first up were quarter operating expenses quarter, the to Turning

additional mostly decreased M&A headcount Non-GAAP associated expenses margin to under to and services including sequentially percentage fees strategic with heightened Diagnostics. operating expenses due organization, in investments across operating our points operating Informed XX activity, our Our increased G&A XX.X%. ongoing on

legacy that's recent the business our expected. expense we a remains incurred have While Fulgent structure of of of incremental acquisitions, expenses lean, our as number part

quarter our in people, margins our these And investments operating investments We made infrastructure operations growth. near On these was We support remain have compared confident and pressure stock-based share term. restructuring, the the for or are in [Technical to putting time the business. EBITDA the Difficulty] and costs to million that a based time, diluted quarter investments significant outsized and Difficulty] still EBITDA average costs in and this our million acquisition drive for business. excluding growth Adjusted will will compensation our demonstratable ROI and [Technical $X.XX and translate core cash asset we're income quarter $XXX [Technical pleased related the second in XXXX. report Difficulty] same future of shares to second during positive diluted $XX.X generate flow on into amortization At was weighted on million per non-GAAP expense, in transformative basis, intangible XX.X outstanding.

highlight Difficulty] during we our of price in We with We despite program investments ended quarter. shares from in the aggregate I Turning made were common average during an the approximately repurchase business share with marketable quarter. our quarter to the [Technical under second XXX,XXX to $XX.XX million generated sheet, stock that active our of would quarter we over of the balance second securities. the repurchased March. also $XX.X announced stock and the we operations significant million $XX.X like repurchase the cost of program for in an cash

a the stock for of of common available under stock million program. of XXX.X XX, As our future purchase June approximately repurchase XXXX, total remains

for to on Starting XXXX. outlook moving revenue. our Now with COVID

to As in continues ongoing testing to revenue our testing. demand off, see expect taper COVID declines from COVID for we

the test Our expectations remain despite on revenue year full COVID pricing. for unchanged for COVID the pressure

revenues has from million the $XX inclusive each QX QX. COVID year, million COVID This expect in into the for volatile roughly Clearly, in testing revenue approximately been to $XXX Difficulty]. breaks We million spikes predict $XX and outbreaks. [Technical hard amidst out of and to

revenue for expectation our contribution. So, COVID we remain prudent with

which Informed our guidance, contributions include Moving Diagnostics. on from core revenue will to

As revenues in expect macroenvironment. $XXX for year. core total million for volatile in core we year-over-year, approximately be the With $XXX into which outperformance account XXXX, revenue growth XX, and revenue, of $XXX representing XX% and on given be April will $XXX factors million conservatism we million closed the in million expect the approximately some takes will we achieved a transaction QX revenues COVID

with remain We drive expect meaningful ahead on testing we there core remain be further on growth. on said, will From our as in standpoint, expect our executing a integrate business. our term invest focused in continued business volatility in and acquisitions. focused to momentum COVID investing being to drive profitability in pressure That operating we and we on to sustainable margins our resources quarters long strategy the see recent

In relative leverage. and COVID term, and addition, our technology drive testing lower conservative operating to the result margins our margins COVID foundational Long margin for will operating demand continue profile, record platform discretion assumption high the in gross supports to the we strong we experienced crisis. spending during to will our with manage

and guidance For last share of on rate intangible a income share and to compensation, full-year with net This stock-based shareholders, tax XXXX, approximately excluding million, for we per acquisition our of non-GAAP is $X our call. Diagnostics. non-GAAP provided expect utilizing amortization asset, income count restructuring our of consistent costs, XX XX% related costs Informed

as organic quarters. oncology out on lab, mix the with lower an testing While acquisition to in Diagnostics from as the Coast a decreases well adjusted are margins as due expenses standalone, West gross transaction, ramp as integration coming of standpoint the EBITDA COVID in on heightened aggressive is associated the costs operating of of business, anticipating investments to such build our accretive the Informed we our sales

growth as COVID XXX% expect breaks This third we And of into revenues we representing $XXX down the of testing. I mentioned, a million, year-over-year. $XX total $XX For approximately quarter XXXX core million of of expect in million. revenues specifically,

revenues since third Fulgent notable COVID for days mark the will will for expect core of we pandemic. the The early quarter exceed milestone first to revenues time a where the

$XXX for rate bar million setting core be also will going forward. at run We a our annual a business

guidance Operator, is may shows the Thank call for website, which updated open joining slides it posted the on breakout you now up on you for I our questions. just Relations today. Investor Our discussed. detailed

Operator

take Piper from We'll [Operator first our David question Westenberg Instructions]. Sandler. with

David Westenberg

Congrats Fulgent Oncology, the up. setting on it

that. we'll questions some So, have on

a of that revenue. pretty number. testing don't I million that in $XX might kind as with you the to So, in was big terms that let's but performing $XX call well mix, want break to core is out any revenue? of know get start you pretty to quarter in there out million the core specifics you like product modality in in That helps

Paul Kim

So as would Informed approximately a on the we anticipated quarter. quarterly we million from be indicated Informed per announced acquisition, $XX.X that when we basis the contribution Dx

see take really a look has when we're do of core seeing it asset with in integration that that outperformance includes the the CSI beginning an at the in momentum the acquired revenues, a on made of for acquisition, we the which So we CSI. our that core the over here to we've was And investments really with building year ago. we're we to CSI made with we momentum of that that the West the that investments have based combined Coast. beginning business,

momentum business, we core laid that we out the NGS in in our the the is groundwork Genetics we're the elevated platform the of that have with driving part other traditional have of seeing momentum that The Fulgent revenues.

sequencing and GI NGS as our molecular. it's testing includes and It the obvious includes business, as and that revenue the mix to largely contribution derm. a it Informed to as the I'll includes consists which NGS well that service, both biopharma Dx, But mix Now, in terms also our of turn Brandon. Larry and from also it the say business, over oncology, of includes of core

Brandon Perthuis

have I whole add that. don't to lot a to

have one the the in menus largest testing of States. United We

that have good diversification. to So it's

biopharma didn't that way. meaningful continues we've will the in any a CSI revenue as forward but Fulgent multiple particular it we've taken acquired businesses, on mentioned, perform NGS business hard well. And the other. but and growth area we But expectations. outshined meeting going to the contribute in So think it out in markets. Paul and assets touched overall, just different our the across Paul pull to are scaled to it's QX, Oncology Informed Diagnostics we've

continue will we So to invest sales. in

We will the technology hopefully, ahead. continue the platforms, momentum into in invest and continue quarters to

David Westenberg

what this of at frame it's Fulgent because because even these extracting some is it the are I pretty getting I excess for relative example? prior lot maybe to inorganic businesses in growth point tell a growth tough Are to of from you anything But if probably integrated know this thought terms flat some and or know it's you synergies. revenue is can growth stuff? Informed organic about is there hard to you out those of at point. it, you've give you of would probably the what be business

Ming Hsieh

additional our turnaround to for the of business our And we we provider, David, to [Technical premium capabilities. the complex in as area growth time and provide organic NGS us NGS we meaningfully. our see we the that's add as that attraction some definitely momentum services. see the solutions a core from And quick see Difficulty] do services

David Westenberg

on while. holes for one covered Let's for testing I This Oncology. you the the kind about know guys. little terms the of Fulgent development of there pretty US. But in have a And in biggest menu in categories, you biggest of or is to move I'm any NeoGenomics exciting thinking I oncology, are the menus business? when

volumes that oncology sales going guess to the have FISH, outside those force, I it the I'm PCR. of ask of So, the NGS, regional. But iteration, on stop there. business? national the of parts in the ask sorry. handling the the is all like terms we'll And a of how of of I'll kind next of flow, I comprehensive think kind And IHC, Do you

Brandon Perthuis

for maybe that those Coast CSI East technologies, similar let without the Yes, the NGS. Coast West we that boxes lab mentioned can you also has on alone check alone, all the

oncologists. East to a as technologies is oriented a lab Coast the previously And on all West shop is pathology towards lab have for provide services. oncology Coast we one-stop clientele. discussed, So The concentrating

out, focusing we're national in using future. this plan on model But to the we're As as Southern fully and a go we're test starting near just California.

Paul Kim

I'll just mentioned. boxes we add all check that the you

we In addition, have cancer menus the one test hereditary the United States. of in largest

offerings, So Oncology all our think think hereditary at We But you think something Fulgent we on, Fulgent comprehensive Oncology really Fulgent if peers. of cancer really stands competitors and unique. service peers. offerings, we of amongst out with exist our look Oncology later is pieces our

David Westenberg

that. with I'm going to stick

high was a the right that the Is you think was parts regional. competitively are market that a focused you about versus region? the was focused I lab country? in Southern there know that was of you're and of So, Do I picked of existing a there, California there it there. But yourselves. kind Clariant structure that impacted other you keeping guys think Genoptix

Brandon Perthuis

Well, well or we've the would for I won in our of weeks live we've is the Larry, one expectation. been ahead or of two And first number now two one clients weeks. say,

a Turnaround market take time region think we incredibly of logistics. picked So we where in important. advantage we've this is can

recently, here onboarded in we five four clients first when getting delivering turnaround our were previous of the day six we're three, lab. some from times range to they For their weeks

be national So, beta just will well ahead an but we launch, is commercially, so be. of our where again, we're perspective, onboarding region. from we This would sort a I this of far, think, thought

Lawrence Weiss

a seeing pent David. We're lot of up demand,

Operator

have Instructions]. we a Westenberg. follow-up do from David And [Operator

David Westenberg

to going the be to the pharma that and to mostly Back of services of kind complementary business is the that business focused pharma business? this specifically side on oncology Fulgent services Oncology business up, setting you're

Brandon Perthuis

relationships answer now oncology we're area in Not necessarily. is right so of variety but Difficulty] no. short a wide We the [Technical healthcare and span trials, oncology, an maybe strong is think clinical particularly important

have pharma We menu, proteomics, we've to flow. our approach mentioned, now for biology, multi IHC, clients. Huge test a as services, omics our spatial

on ready to tackle market that holistically. we're So,

David Westenberg

a a to for just assay. good monkeypox Or testing low. good thing the really society monkey today? looking is The case we numbers. have that at I'm – assay? pretty options numbers do we on contributing as still don't case kind revenue many of this Is this of are Congrats actually kind

Brandon Perthuis

code Fulgent. the to CPT is new the proposed answer a would is that favorable both. Well, be for rate There

And we thru leverage ordering to we we a will we way. platform be validation. able the that the a would COVID-XX [Technical we also be But certainly, few We But with can to pretty and tests, and help. our pretty our up that have this realize system, quickly. good want been quickly, to barcode technology for revenue were Not going there. our thorough launched has a big drive Difficulty] get There's we respond reporting, been spun testing lot of built options. able So, from and a monkeypox platform, labs in did restricted. this

David Westenberg

the strategy. Back deployment capital is Paul. to some And I for question guess, of this

that allocate commercial you launch. successful – going very you're have you're probably know kind care term? kind for near of Is up or you're you do buybacks. going I probably Fulgent of in And my stock some business, of nationwide a being the And take guess going of winds to terms for infrastructure that do money planning. direction did You you're to think is, Oncology the to XXXX remainder take or then, a if

about you if the should in deployments tell anyway, just capital I how think of things can mentioned. So, context of me we kind

Paul Kim

into options the we is usage our you said, that we have the That and is investing cash. your The the core priority stock technology, the our usage position. But our say, believe our it ways one when well core are enhance cash of our not open. penetrate can then that deeper can like equity. market the of see acquisitions would And generation, have as I markets, that to that first cushion indicate primary our cash Fulgent, wider. the all also as primary cash deploy buyback of for value in assets we to and foremost, is, right that to even is I business and business,

David Westenberg

testing in markets? still teachers, things even has on that's of those in past COVID Is Southern over. can talk stuff mentioned getting in York think those down is, by is the like region? what about the New COVID And of California. fatigue here question some you last I My kind is, testing going there guess you places? Or all But I hit testing I'm COVID at

Brandon Perthuis

Paul QX said tests. I out laid the still guidance I number our processing Dave, a that think on QX for call and of we're COVID. meaningful

still lot programs a running. those So, of are

of of things are down, them quickly have wind wind some But down, them winding completely. as up. they back before, Some we've seen winded as down as

can the are this I should predicting, to downs. And beyond respond. these be ups there to adjust could is do ups more All in to our know operations incredibly calibrate I will hard say we to and is what that. predict. be people ready So fall, we don't which some

Operator

questions everyone I today's at And We do everyone's Just further teleconference. participation. like this going are appreciate would there time. to know let conclude no to that

You may now disconnect.

Brandon Perthuis

Thank you.

Fulgent Genetics (FLGT) 5 Aug 222022 Q2 Earnings call transcript