- Earnings call transcript Q3 2022

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Operator

Hello and welcome to the Fulgent Genetics Q3 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, this conference is being recorded. It's now my please to turn the call over to your host, Melanie Solomon, Investor Relations. Please go ahead.

Melanie Solomon

to call. Genetics welcome financial quarter and conference results afternoon the third Fulgent XXXX Good will be a we after Today, also the Pharma of market announced Fulgent close in separate release. discussing press the acquisition

the Scientific Genetics; call President Lawrence the Paul Chief on of Brandon Relations to Weiss, who webcast releases refer Officer our Genetics; Officer a Perthuis, Chief the the the of Genetics; access Officer in and Commercial so Fulgent available are of of wish Kim, fulgentgenetics.com. are call website. Executive of presentation website, these slide Medical Financial Chief of during The the announcements discussing presentation, to On The Officer and of contains Hsieh, Pharma. phone this of Yin, Fulgent Company's Chief they portion Investor Fulgent do on slide Investor section call. Chief Officer Dr. we'll Ray and our this Ming section Those that Fulgent Relations Fulgent of Genetics; press two portion along following

contain to prepared the which based call will assumptions, concludes These represent and statements. be post will answers portion remarks the be available those aware call shortly Management’s current your of on incorrect. the section to access you have and to of on who may on website. be Relations and management's via the call questions forward-looking seconds A there web. replay streaming few Investor forward-looking of then may webcast, Company's that please views questions today's prove to be For able the will a delay, be of estimates not this after statements

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

Ming Hsieh

of Brandon will go a Dr. with much, been discuss financial Fulgent my the then and diagnostic Fulgent fully Genetics to with genetic transform Thank take thank conclude on and potential some the a quarter. will co-founder, as focusing XXXX review announce and start market outlook Fulgent our over call Paul Fulgent comments co-founder, and business and your a to Yin. Good acquired And our precision with believe Pharma. from for I questions. Then, will company a products Melanie. has vision third updates have acquisition our afternoon, turning running we today Ray you results third pleased to have into service company We to joining I that Dr. Ray I'm rapidly from before medicine you to quarter my transaction the Yin for entity. before Pharma, oncology. the private on call very we my a integrated acquisition this the

we of to with care patient ends that and team our believe address with joining integrating talented companies diagnostics individuals, the our continuum begins care. of also We’re

me provide companies. a brief of Let two take a and step back these history

Company previously Genetics. owned as when Fulgent timeline and Fulgent public this focus to of core business Moving each and XXXX, businesses Genetics and entity has therapeutics. ahead a XXXX the until testing since enabling Therapeutics business genetic across were the on the on operated initial both its slide, Fulgent skill separated of separate were Fulgent by The Pharma offering

we has step the the large and uniquely us deliver a Over make the to Laboratories, and capabilities positioned clients. Inform testing in California testing, Southern platform in facility XXXX. have with the taken CSI with May the to XXXX state of in with testing We genomic full CSI notably Diagnostics Fulgent market exhibit acquisition biopharma most believe last Genetics oncology year, foothold a built our suite in art of to major opening August of oncology a of

have been as seen the ahead. operations building business meaningful to years we've a expanding few over in We opportunity the service sequencing these a And years. continue this last

up As testing head our the nanoencapsulation NGS developed drugs. genomics. on comprehensive neck, pharma Pharma may the offer therapeutic a therapeutics we we capabilities expertise proof from also our both, Fulgent and pharmacokinetics industry criteria, lung, the that benefit numerous the to study and of improve to of build and Based in customers, both and learnings our predesigned and believe has current drug therapy platform and and candidate concept genetic breast. of services to businesses and on designed pancreatic, has our a of cancers, targeted profile and novel our more recognize new lead we window of ampullary, existing technology cancer treatment including suite achieved

-- Pharma and unlock teams risks. at well will together and diagnostics most efficiently for We have challenge patient taken ASCO business, XXXX, validated already have upside in believe and future current presented back and significant As precision and a and existing medicine talented two both pharma these Diagnostics a science new both, while technology long-term entities platforms the bringing care.

bring combined novel a to business more diagnostics potentially model help cancer. to synergistically integrated a has nano-drug database more Fulgent underpins solution a With from can a technology platform, while the pharma and and candidate effective for large help drug a medicine always to battling in drug precision or business delivery years platform medicines, we and deep come. potentially to and vertically delivery therapies precision patients create risks. of development business build from been sustainable of mitigating pipeline the vision The Our overcome proper

service or XX people, XXX development to and With we invest submission patients. for in the as a toward of of along or from as XXX(b)(X) to as Genetics today spanning allow Arizona, a and can existing this base headcount discovery with strong than continue long-term, believe risks. Massachusetts, Genetics, detection, our combination, has comprehensive pathologists, in Florida, Fulgent with We we to cash and business, the new development enable adding Texas, offices position across partnered With pipeline of a our to capitalized York. is Pharma including more with combined enable improving early a care no to solutions combination, well while The mission this fully will the progress monitoring, strategies. California, drug well our the platform cancer integrated development. We our the Our This bolster precision catch of shorten diagnosis us the already using of people, PhD ones shareholders. well managing potential New are technology X,XXX this near-term build the each believe, business timelines over and vertically integrate geneticists, and XX to Fulgent which opportunity each PhDs. this potentially Georgia, goal including leverage through will will scientists common FDA’s insights medicine with financing business insights diagnostics, combination of drug pathway believe provide and made organic continuum, to continuum capability we additional are other care with the to pharma dilution and business

access a of program sides combination already and significant team through leverage efficient place, drug business, overcoming assuming place. as of lucrative of research both as in capabilities two market. will, target manufacturing opportunities regulatory We the have future We in our a hurdles approvals the for businesses future revenue a may have that an diversifies and The margin opportunities provide well potential these development.

have studies through highlight Before believe to our business We the I to technology to want on. candidates developed to our large the market we Data focus platform. delivery drug these drug to that portion have is ongoing may bring market from able candidates this exciting early a be our the through a indications that completed Ray, to target current we we we We to markets established. of for well have the indication. some and novel provided have capture some of opportunity of achieve turn candidates, chosen the target drug potential believe over I have with chosen a evidence pharma

together Now, together like on since the Inc. Cogent, been and I We and as my Dr. the Ray? and working founded candidates XXXX. Yin have President Ray more been Therapeutics to details in XXXX. to served Pharma, platform have provide later of of I the CEO introduce When co-founder CSO would Ray I Fulgent and we working. pipeline Fulgent

Dr. Ray Yin

to I'm pleased today Ming. discuss to you, the here Thank business. pharma be

have As for many we Ming mentioned, been years. working together

Inc., addition also and Laboratory Research Army nanobiotechnology and that, Fulgent, company and In has ANP I for chemical served Prior founded inception. its the CTO since managed as based U.S. defense to CEO to a its Technologies, at I and programs. worked biological nanobiotechnology

novel nano capable drug the or have a of soluble broader delivery safety or a be we drugs. on for well Our improve serum particularly more formulations, PK opportunity With various are hot of poorly nano win. for amorphous of much formulations, previously pharmaceutical as delivery or such goal ingredients the materials approved. well melt as pharmacokinetics materials, we is development, efforts to as during APIs. chances both based development drug platform drug with formulations, some in water, oral us platforms, FDA allow a with to at pharmaceutical water only play soluble insoluble delivery plug which not range This IV pharma of ingredients believe and water are this to has Unlike as capable development shots and active us of delivering only for albumin which to our and soluble various these organic in technology drug We timelines the XXX(b)(X) API but believe HSA, our will mixing efficacy. active generate allows solvents, also a used use or drug or multiple as candidate on to that in drug used advantages profile, therefore candidate giving approach shorten candidate can approach for human goal

process lowers also product cost significantly. simple In addition, manufacturing the the

Phase not in dose Phase drug X candidate, safety dosing manageable the is per with In the Southern per tolerated a being meter at with lead Institute. conducted trial Cancer National clinical by is week has milligram Our of The at per square week. profile, square XXX collaboration reached trial, meter XXX per milligram ongoing. a University California X FID-XXX maximum

and checkpoint evidence of as pretreated patients cancers, tumor heavily observed activity preliminary inhibitor cancer neck for have in different as in We resistant head across types, ampullary anti-cancer patients. and example, well

a nano So drug candidates neuropathy. and far wholly deep have X in lung, have pipeline we same neck, owned and serious the related breast any not on delivery pancreatic, Phase side colon we trial, of cancers. observed generated drug the platform, with Using effects focused head peripheral a

XXX(b)(X) other one or entity FID-XXX, been for If lead the have our extensively and pathway, studies. colon drug two able to candidate to the cancer, new have years, NCE we and X X two is also target the we addition next under in indications the pathway, data FID-XXX STING to chemical developing preclinical three to In over which readouts expect we two an continue begin one next tested trials other years. candidates, to in three to were in Phase four with targeting

which We the also novel candidates. preclinical have and includes additional NCEs pipeline, XXX(b)(X), a robust therapeutic

which precision We key potentially oncology the it through patients, For for further discovery these will therapies. potentially multikinase now inhibitors, to believe Ming creating additional the drug to back can medicine cancer genomic of candidates, in the example, targeted resistance, fuel related transaction. and additional various development indications. address on drug our can and play unmet database as such BMIX inhibitors, role biomarkers to wrap up turn a as I needs, new

Ming Hsieh

insight you, to studies integrated vertical And we leverage building and both businesses cancer. have solutions And target the for rapid development candidate combat to FID-XXX In propriety This reinforces concept hand. our Based from in believe strategies. the of to point, the head, of an commercialization enable are the opportunities commitment the my partner in it initial we regulatory and probabilities diagnostics provides realize trends Thank pre-designed assuming on will attractive approval, data through precision cancer and I we criteria, vision, indication proof possibly current a medicines businesses. believe Ray. to therapeutic long-term, top potentially of segment. or neck have transaction entry

to to As our results turn and Commercial about will through continue call businesses our Chief I Officer, Brandon third talk over strategic grow diagnostics the M&A. Perthuis, we our now Brandon? our during diagnostic the to clinical quarter. business’s investment

Brandon Perthuis

Ming. Thanks,

the as our all in the and and second our and same PCR which Turning in testing revenue growth NGS. the define quarter to $XX COVID-XX compared XXXX, third we business, was $XX quarter representing the year-over-year million core year, both XX% million to prior in sales sequentially. Core XXX% $XX of business related period million minus growth

and the largest into Our hospitals, served and the to menus of genetics, ease pathology, relates test with with one health, panels. as only to custom Oncology, clients units. the for portals lab for cancer, Pharma of centers along our are time, we reference gene and interfaces, into laboratories. investments many we performing customize Historically, of it excel across as our have ability reproductive their depth commercial of in use Inform the calls menus, business more, test of robust CNV in we to academic Services, a as and conditions continue synergies our have well with Diagnostics With reliability coverage, turnaround the test to do created also CSI Fulgent begin and algorithms, diversification one proprietary oncology we tap access to hereditary we medical for Not neurological menus pediatric largest offer our industry. added

we XXXX. taking starting year, than to completed roll-up a the core is roll forecast the momentum a $XX delayed level, surgeries expect the the contract at high million us However, up Inform rolled the predicted. over QX market as it transitory hoped gain drop quarter, payers address able view season, business our projecting care now now as related the Paul have the we contract and will with opens throughout and are up to anticipate That to in channel sequentially, reimbursement Fulgent. commercial up XXXX. in by sequential our the the up but direct the around in We it as pay procedures the at seasonality down million, fourth the our in business an covered to elective year-over-year. for market. The of penetrate would direct into in with entirely and Diagnostics contracts significant while we'll a of said, lives, be HelioLiver. part sell holiday to and XX% in managed allowing however, to ability access at for bit well adoption We new pay these business decline end This due delay longer address we to XXX be in detail, will is

Diagnostics with sales brought subspecialty of sales the portfolio it team On comprehensive align cross restructuring team strategy. take and two advantage teams to legacy our to It recently for go-to-market the for This Inform team accomplished front, completed the increased the coverage corporate things. synergies. we full Inform together new have greatly with the sales Diagnostics sale and training the sales and Fulgent products product along the

of and cancer products, a we are terms focused colon test synergies, hereditary examples. base In with These urologists clear IDX respectively. prostate Fulgent cancer penetrating hereditary panels, large client for are the example, cancer currently selling just hereditary and on two gastroenterologists to for

addition, our IDX adult In has and nerve very base. testing, offering neurology a established large specialty fiber national with client

As up, audience target our menu panels. adult neurogenetics the unique we now which rolled get has over test, of these contracts are XX clients our for a

A placed a on mentioned as we were calls, green but HelioLiver. of sell. including sales contracts not Services reps divisions. these team IDX and on to is several presence, now territories Oncology Pharma where XX at there had has quick We As Total see historical update size had necessary and the sales territories people, in the right our we've previous several. now

believe We adopters. these matter adopters, not clients. time. the early patient into even of integrated We care. a have they have as early now Unfortunately, this We fully view is generally just as on boarded XX their over HelioLiver

to done still be work there. there's to get However,

local coverage CLiMB see the publish study aiming clinicians to before to critical is or quarter to second many the of is for data scale prospective piece and is the a of study We wide drive endpoints. want believe determinations. guidelines XXXX. the evidence to practice a adoption these Recruitment example, For team complete in

addition, third In to XXXX. quarter FDA we the the to submitted HelioLiver of in be expect

much Turning in a to place COVID-XX, since U.S. steadily now COVID cases summer. better is the down with trending with

programs. many than In all to much back employee predicted. screening screening addition, and have stopped, has programs school faster happened been we the of including This

remain the predict early adjust down the of difficult and City. has since been shut decline scaled and operation very in rapid to and Houston of operations However, back the to Temple we testing. efficient, state days have virus our COVID-XX To the cost

We the back rightsizing remaining the Officer, the volume to COVID-XX have our still We I significantly support reduced testing by team operational if test ramp costs will up high support the the very Financial Paul? Kim. Paul Chief COVID-XX now over to needed, can we turn support testing volume. laboratory infrastructure, to but lab call maintain quickly.

Paul Kim

quarter dynamics. to was exceeded grew guidance guidance $XX our down year-over-year. $XX Thanks X.X $XX quarter Brandon. The our $XXX from line of totaled Revenue XXXX, in of testing tests compared in $XX million the million. core of to quarter XXX,XXX million, to totaled decline million $XXX of million year-over-year million and roughly in of in million XXX% QX totaled third last a approximately QX $XXX million. compared business COVID-XX bit the the further, Breaking testing again with revenue overall our guidance COVID due Billable year. to in compared third which from came in Revenue our

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

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

ASP $XX quarter the XXXX. than the third Our in second the $XXX, in quarter was of saw higher we

testing, per including Diagnostics. quarter a second in the for our testing quarter the away due has mix coding COVID test from of XXXX, mix Our Cost to ASP the of versus from more largely was Inform with to testing. $XX of shifting testing, along core fluctuated $XX

per reminder, a can As be high our cost test core as portfolio $XXX. as on

to a XX higher again Gross testing continues testing test level The will associated core our gross normalized down Diagnostics. with section guidance, expected COVID portfolio, revenues from for the increase margin testing be the mix, down and was our testing in in XX.X%, points portfolio. was the margin with and call. We reduction percentage our low which core anticipation to points as as So, cost be COVID guidance previous including to testing in core margin sequentially. per X pressure will combined from our of revenues costs to including year-over-year due genetic very more quarter decline, lower genetic fourth percentage Inform average anticipate under I'll elaborate the gross

Total in XX%. turning over points Non-GAAP expenses quarter, expenses of quarter. quarter consistent GAAP million down expenses. the totaled operating operating second percentage third the in sequentially million XX to with last $XX.X Now, operating million, from margin operating were to $XX decreased $XX.X Non-GAAP XXXX.

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

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

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

As million of total approximately of September for a under stock future repurchase XX, XXXX, stock of common $XXX our purchases remained available the program.

to we XXXX, $XX.XX. common of subsequent another a of of million addition, repurchased In shares XX, cost September an at price for $X.X average XXX,XXX stock our

our QX. Moving we orders in demand on for drop testing a in sharp to for saw XXXX, COVID outlook

approximately of in our the year of revenues of QX now has This for changed translates covered three revenues $XXX million significantly. the expectations $XXX COVID for $X done million the into full versus such, anticipate we've $XX of the inclusive As the COVID of We year. first previous expectation million million. quarters

stated the from nice past, in As business lift difficult though to a the COVID been has to testing revenue forget. very

seasonality. and anticipated of our which our we'll revenues falling Inform believe revenues be core we to revenue acquisition outperformance on guidance with from attributable XXXX, core reimbursement utilization the QX. achieved issues to see of Diagnostics. quarter. core as as back Inform guidance, capitalizing With is core We in weakness the contracts expect into from combined $XXX in will Moving We $XXX $XXX account well million HelioLiver, million on Diagnostics, fourth in approximately growth as revenues of and This track for $XX translates for into again temporary on The short the and in our these the from be revenue in contribution revenue, we XX% million business to total in takes to approximately now grow which expect COVID to year. year-over-year, representing include million the $XXX revenue revenues XXXX. of million a be for core

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

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

For as other tax blended stock-based of share onetime million, charges. a XX% rate $X.XX to our per net of well a year shareholders, restructuring assets, XXXX, intangible any share non-GAAP full of income compensation, count utilizing costs as and approximately and XX expect we -- our amortization for excluding costs acquisition Diagnostics, Inform

notable COVID first since milestone the exceeding with core revenue for for a of the days pandemic. the early quarter third revenue time marked Fulgent The

reporting key cash for going include Pharma, pipeline. We we in earnings robust separately which will business with business acquisition Fulgent forward to also at We'll have forward, gears be requirements even runway of going guidance. segment with anticipate annual core also QX milestones of weakness calls. revenue on set Shifting our reporting capital revenue the over and on our the on that business each $XXX bar this anticipated million the of progress fund of our this

open are posted may posted Operator, now on slides our Our mentioned. detailed website today breakout I presented Pharma call The up the for Thank updated website, also discussed. on it our you show just slides and Investor today. we just Melanie which for as as you Relations guidance joining the questions.

Operator

Instructions] Our a Sandler. be from coming from Piper question-and-answer [Operator session. David We’ll is conducting you. Westenberg Thank now question first today

Your line is live. now

Unidentified Analyst

Pharma. Hi, Peterson Fulgent questions and opportunity. exciting [ph] for on a guys. acquisition Dave Thanks This taking Westenberg. John congrats It's of for on the is really

during to like that's you? many seems and up implied, pandemic? the you. you're about ask just like to core Can how growth volume you for going your rate so your I’d talk off, like able organic first the been hospitals how So, just be much to -- how Thank business. pick high so And for very

Ming Hsieh

folks we that know very businesses the major Company think COVID. of all And the of are -- during past I our part been one proud the be of years the combating has two we pandemic. the for to

growth. to sign build is the a and the to been resources how we for getting the But very good invest a trying country we've have we have economy. pandemic entire end, we see long-term to As for the do to that is the in always seen

integrate has you'll for more see, of Inform Diagnostics. core acquisitions, on new our working us. patient see has that testing outperformed revenues we CSI the from strategy we been time genetic bit build the our from the take diagnosis, integrated little we business. care. the only the the As solution, definitely revenue we hope it acquisitions COVID these the a with today, more adding will the for announced It will is to acquisition have QX. and we're -- revenue our we our build But Part and us efficiencies have have from is increase which But focused solution, not we announced complete but

Unidentified Analyst

COVID think come given -- the if just forward, down, next, about also, tailing the going the that how And talk we you. about that guidance underlying to off? you. could Thank you margins should given me COVID has revenue, Great. Thank is

Paul Kim

Yes.

COVID COVID one. our of structure time, we business. guess into which in XXXX. our that take for going weakness quarters, quarter our on particularly to it's because little us a the was COVID and surprise take guidance a is for will to the drop-off, track temporary during We the drastic demand, I'll ambitions conservative sharp Brandon of QX. us then drop-off So, testing And core that incorporated part our bit mentioned The to realign investments that the for one the and our believe to the us back for be revenue. cost of And two related biggest in

margin core basis, take and we're cost business, without to intermediate have we path been back our much to that we that what growth that'll on counting again. for the on in So, for us realigning And for then profile and we believe on overall weakness and even sure quarters is too to anticipate doing the two once start up make COVID, that we adjust. that to we're leverage our grading one what our anticipate there. restructuring profile an doing the QX -- our And is margin

Unidentified Analyst

different acquisition, about you potentially that you're that -- Thank there were the Because you. going are in mentioned. several could interested particular Pharma mentioned of any coming And most after the indications you were those in also be next several that in? Fulgent years is there

Ming Hsieh

Yes. Thank David. you,

trials. and neck of That's -- and have initially on And the are of to with other ampullary area which research strong pancreatic, the the very the in are But terms we indication focuses clinical we cancer some -- that area clinical on the as candidate, disease. have the first, we soon pipeline, is so therapies, we of possible which far, good approaches the trying the we cancer. see our head have push, The from lacking but the push is colon -- we that we’re as it indications also cancer. focused as drug accelerate data to into the also

when we and the will get once two FDA with update So, integrated, meet we we authorities. businesses provide

Operator

from Instructions] Suisse. Credit coming question next [Operator Our is Leonard Dan from

Your live. line is now

Dan Leonard

frame call way the you. one us you cash capital needs Pharma could Hello there two business Is years? and thank over the the any and it, of for next, to

Paul Kim

be former any the that in we XXXX, and somewhere Ming We from lot is, -- there's have my the of as anticipate that if in its and capital take been work went comments, that. Ming the have Pharma the to I cash and needs. Sure. in we after Difficulty] won't millions, of believe on, for additional comments that of be so from asset then, Ray into business advantage and million The needs investment for will totality XXXX significant. that that mid-teens, a believe I'll each the [Technical We that anywhere XXXX. the inception years, indicated

$XX needs, be So, next in for million couple again, million, million, per maybe the year. the capital $XX years, the of $XX should

So, to, we going that disrupt Company. it's not cash capital the position for have, the the optionality

Ming Hsieh

[Technical trial. the the Difficulty] and or cash that mean clinical provided candidates we’ve [Technical be Difficulty] drug can we sign, are the as of some Paul in development, kind as good more terms into that of getting we new And a is see, than will doesn't indicated, a

Dan Leonard

up circle for with question, plan? and that talking evolved follow-up my Brandon, you than for guidance. on I then Could roll maybe were differently sure And about what's wasn't you your I back feature the contract fully understood to elaborate

Brandon Perthuis

Yes, certainly. Thanks for the question. It's just mechanics, Dan.

those need assigned be to So, contracts to Fulgent.

We have to work with do the that. to payers

contracting, staffing don't taking But I reason taking just than than longer I behind know. and don't thought. paperwork, predicted. know it, mechanics, it's any we longer there's if it's shortages, just mechanics just So just just we pushing

level, will our So we entities. Fulgent be to to once across contracts then corporate all rolled those able they're -- up deploy have the various

Dan Leonard

And then final question.

rapidly new Do the framing think in core us revenue mentioned $XXX could and Fulgent. you million any baseline thoughts you grow for have that how for XXXX? You in

Paul Kim

XXXX. I and wouldn't make of -- because kind the we marketplace. believe our like that from XX% like the call the diversified that the mean, of market any business be reach the for surprised that for again, mean, guidance at intention goal is going than that to quarter announce if growth overall overall investment I XX% have, would is, say, when we maybe grow out the laying faster be next we moment. be our growth our anywhere XX%, portfolio, to I have to And of we we we're the range,

specified point. talk have ranges we'll that that about So, we at more and can details

to grow marketplace. Our the intention than has faster been always

Operator

our teleconference the does ladies end today's of webcast. that question-and-answer reach We you. session. and and And gentlemen, conclude Thank

time at may We a wonderful and thank for You disconnect your today. this participation have lines you your day.

Fulgent Genetics (FLGT) 8 Nov 222022 Q3 Earnings call transcript