FLGT - Earnings call transcript Q3 2024

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Operator

Greetings, and welcome to the Fulgent Genetics Q3 2024 Conference Call and Webcast. [Operator Instructions] As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to your host, Melanie Solomon, Investor Relations. Please go ahead.

Melanie Solomon

Good morning, and welcome to the Fulgent Third Quarter 2024 Financial Results Conference Call.

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

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

Ming Hsieh

lines, third Paul quarter, updates conclude we in review our go-to-market and and you, your X start with Thank Melanie. and comments business I call some Good our joining outlook third our laboratory and will quarter morning, and the the take will financials will and today. Brandon with you the services before for questions. thank our for on business product

revenue. with $XX.X the in of million results our with pleased are quarter total We third

in third quarter our see this was driven oncology. with We of growth particularly second quarter, in diagnostics, continue reproductive and reproductive we business X XXXX HNSCC a we combination in were health precision trial this our of revenue quarter [indiscernible] good to benefit enrollment of Phase by $XX.X to see as business, second and ahead we in health, and II all momentum FID-XXX services in our of pleased testing clinical Third of year, in initiated invest the and our million from quarter. therapeutic patients with those areas development with momentum laboratory began the investments. In

X So trial this far, ] this patient. from [ we in results have preliminary encouraging patients and are dosed initial

enrollment various sites We early expect enroll approximately XX to complete XXXX. in and at patients to

We estimate of the trial million. clinical be Phase $XX trial to the cost continue approximately total II patient to

preclinical FID-XXX, [ advance drug to in continue an of end a this our year. investigational application at ] nanoencapsulation towards the FMXX We study candidate, second drug new

in While shown [indiscernible] various cancers model, superior studies. significant our xenographic unexpected has were we both toxicity FID-XXX observed preclinical pancreatic ovarian have [indiscernible] in studies. over [indiscernible] toxicity No GLP efficacy in observed

for In significant made different of our in payload technology. better In conjugate a benchmarks advancement development antigens using in best have platform with novel technology broad goal target preclinical ADC will observed addition, studies. novel we the of novel efficacy being range on and studies, compared our we also our platform antibody of a patient linker over ADC some preclinical tumors expression drug using of ADC set. prepared target market with with to In the generating leading the clinical level the are meantime, candidates also

We includes were in continue model and business will designed for platform good have candidates windows our all existing nanoencapsulation to improve our business, believe potentially development core momentum XX founded applications over and cancers. Overall, with we targeted business which novel therapeutic grow, strengthening initiatives. active we fueling patent our services our to drug active technology, strategy which a therapeutic pharmacokinetics and As of therapeutic core and our both believe a our business. issued laboratory we and therapeutic remember, our patents with see

quarter very close strategy. I a sheet, the work our and in to our our third to balance like hope hard continue strong to good partners year. will for which maintain thank loyalty We for to employees, a business. We execute your stakeholders strong have and would a

the the Brandon? our turn Brandon to Perthuis, our business to Officer, call talk quarter. I about over more third Chief Commercial results laboratory services Now in

Brandon Perthuis

our was Pathology solid company quarter we in another for Pharma in areas: row areas highlights growth growth all X quarter provide It I'll Diagnostics, for service in have quarter-over-quarter second seen and the Ming. X a all Thanks, marks of some each. Services. where Anatomic business. This Precision laboratory with our

For see Precision we to health. continue in Diagnostics, strength reproductive

excellent continues flexibility in expanded Beacon quality carrier we demand, screening and high be Our our to time, leveraging drive test are business. and turnaround to

is hereditary million This over with cancer This we hereditary very was also are competitive to X in contract cancer We Fulgent process, screening. VA NIPT to that strength and VA up hospitals a IT $XX recently integrations. A quick years. based the for germline a tests. contract new seeing announced We novel update and honored believe are our chose ability panels, on the with our time, build the turnaround rapid KNOVA, our quality strength custom VA on Fulgent. selected test. to We and for work our other

fully selling sales mutations trained The positive and year. aneuploidy has began Our this September microdeletions. feedback and point the adding been to clients now of team de as from in value see novo is of they

very slow that has long to as adoption testing we in a to replace expect for been time. place bit be look We a

NIPT the paradigm However, shift we detection conditions. believe create in rates has increased to a the considering KNOVA severe of potential

portfolio receive approval which the our panels. during test, our MolDx hereditary Turning MolDx cancer quarter. for and panel many to panels of several our approved panel, excited liquid now solid our oncology adds were to cancer offering, biopsy tumor includes to of This we tests, hereditary heme

year-over-year. of saw overall, Looking increase at Diagnostics XX.X% revenue an we in Precision

Moving Anatomic beginning on to Pathology, really off. believe investments our here we are to pay

some had quarters, few a definitely we headwinds. For

kept this remain focused our business. we down However, and to dedicated heads and improving

can new We major a These of focus and improved are what business relates the as things. improved on other this team, among tell, sales a From progress the in pleased turnaround making closing lab we many it team turnaround with on leading result there labs are sales logistics, strain other a as to of areas deals. time. larger to are is we focus time

weeks. dermpath Specifically, X time are [ X some turnaround labs to delivering ] of

This this we led of Texas. which the on fuel with have that We the a in quality We continue mentioned call are last X we our deliver X new physicians. we subspecialty Coppell, days. Add deep have very building pipeline to or we pathologist, trained opportunities, for growth. has typically will at believe moved our and offering a compelling to to into

mentioning During we design it improved operation scale, quarter, and and workflows increased at pathology. worth a of our more the this adoption to is believe saw We laboratory. One run thing is other the leading efficient, scalable digital are impressive.

our quarter, the the future, improved we layer and For on digitized We efficiency, AI. ability to the this slides. overall, XX% in quality to third of operational leads believe

division. Services Turning to Biopharma our

of portfolio we we mentioned now calls, previous As clients. in leverage large which biopharma demand are to have able a are in from tests,

This can validated next-generation increased sequencing, to platforms cycle compete have service Genomics, sales Olink the the in from these Mission allowing for now addition XXx In our Bio. market, longest come proposals. requests offering Akoya, for our This larger potentially addressable us to Illumina of area additional business has does have we and waves. and wins

to do see we So variability expect some quarter-to-quarter.

our it our employees. we call right long-term for long-term However, growth solid our now the and dedication Chief to Officer. quarter, we are the was steps up turn of the are are Biopharma a to Fulgent Services Financial We set we Kim, Paul about for potential and division. Overall, enthusiastic thankful for over the taking continued believe Paul? success. I'll

Paul Kim

totaled operating XXXX compared of debt points minus to X%, of Helio third to Revenue July the $XX.X you, the non-GAAP expenses to Thank streamlining the continue XX.X% from was compared $XX.X of third is emerging $XX.X R&D expenses sequentially due the second lower GAAP million investment accrual in higher available-for-sale of million second legal impacted of percentage of quarter operating quarter and quarter which of totaled company's company showing company totaled quarter. a access to quarter -- to Health, margin gave spend $XX.X COVID-XX business. Total which approximately increased million of spend reversal $XX.X and million benefit legal XXXX basis our efficiencies accrual This million. negligible of GAAP charge Revenue to gross in third is testing to this million third related and revenue, testing in QX. In quarter, non-cash company, Non-GAAP to XXXX, $XX.X biopsy relates the primarily compared a our core on and margin million the by margins liquid lower business Revenue Gross quarter operating securities, a was XX%. negatively $XX.X $XX.X year-over-year, in primarily the the Brandon. our X technology. and the in from reversal XX%. continued in the were XXXX impairment a million XXXX. recorded Non-GAAP QX. private for to R&D in EPS improve XXXX.

equity-based investment approximately impairment Our this for management the third loss. to fully diluted impairment and investment. Adjusted impairment third reflects EBITDA was cash amortization asset or outstanding. future shares basis This associated quarter this the for $XX.X on management's non-GAAP projection of in million $XXX,XXX the recognize income the performance available-for-sale quarter million the XXXX. of and share compensation was an XX.X $X.X for weakened, million have expense, income with quarter intangible On income flows based $X.XX an securities, of average of a per of excluding to compared leading debt assessment weighted

tax $XX.X sheet, cash, from in operating of restricted by our located, other income marketable million ended $XXX.X in cash building Georgia the and property we with is the period Alpharetta, which Turning balance used partially million in and to the cash approximately credits purchase quarter is lab and the included offset for Cash equivalents, activities. for million $XX.X securities. purchased cash the

our core is With which expected, outlook reiterating outlined our improving the guiding and company XXXX revenues without total services issued to revenue. Moving are we're minimal our on future from revenue to we COVID-XX as testing laboratory for in today. EPS revenue for COVID-XX release guidance guidance, press testing revenue,

to year-over-year. expect continue total We representing core X% revenue to of approximately $XXX XXXX, be core growth million for

and in our of be COVID-XX revenue the around and we XX%, and compensation, target non-GAAP margins high-XX% saw for excluding gross the range expect to margins quarter QX last exiting full XXXX, QX. year Turning which we in the both expected to stock-based for

quarter our term. approximately supports XX% the long fourth our to continue to expect invest the that resources managing to We of with margin we grow foundational see platform non-GAAP in margin year. further remain and We strong technology slightly lower for margins focused on our minus believe spend operating business operating a as profile

EPS We continue and is this guidance. associated cash about cash therapeutics our business $XX to for expect our to million $XX of development in year, contemplated burn which million

from EPS share GAAP million any of debt improve currently a loss of our Utilizing intangible $X.XX to well securities share non-GAAP XX charges net net of available-for-sale average from and to onetime average per non-GAAP We improvement onetime for year count. share tax share see as expect per excluding provision excluding $X.XX XXXX of as loss shareholders, income our any and expect million, impairment XX share, $X.XX in assets we to a non-GAAP to using a $X.XX of approximately amortization per stock-based full charges. a compensation, count future

Finally, our cash remains strong. position

of mentioned As purchased company result in of the XXXX credits tax tax company refund income QX earlier, expects in purchase as of of an from quarter The tax those federal third the to investment the receive $XX.X the credits. government XXXX. of million a

grown investments approximately which of we equivalents, M&A, with $XXX could any business, call has marketable acquisitions, repurchases we securities. other may good in anticipate now core stock XXXX organically you it expenditures Operator, Excluding our million course, strength the ahead. Thank ordinary open for cash ending and we and Overall, momentum through cash, questions. for see strategic include joining you our or today. outside which see up

Operator

coming is question Dan from first Leonard from Our Instructions] [Operator UBS.

Lu Li

of guess on XX you in momentum thing, quarters about is the great like definitely next growth. Dan. months? trends Precision Diagnostics the business, AP do Lu for in This how and think I'm I wondering first X

Brandon Perthuis

the in next months? Trends XX

Lu Li

Yes.

XXXX? how Just think like like you do going about into

Brandon Perthuis

It's well the pathology, Well, business. The business. certainly have anatomic we momentum. diagnostics precision in business see as we on long-term sticky mentioned we call, a as as

to as our markets of that on. to those position a But foundation grow strengthen. see both we in So continues

deliver to time, excellent continue ease use. turnaround We quality, of

to I strengthen continuing we're those think both areas. of

the sales all the AP continues are precision team some diagnostics I think as across and So months. The well believe as leadership has both I the momentum for opportunities next in XX significant pipelines executing. sales them.

good XXXX next I exit with exit this going think heading to momentum we're So quarter into year. and

Lu Li

And the million X? up months that also Great. well? of think years. And kind simply in then the it talking of then over we you about pipeline like terms that by will X big contribution next it's any for like anything VA do divided $XX like is Or XX coming just Should contract, 'XX? in about like as contract, see the in like

Brandon Perthuis

to mean Good thank and X. Probably to types takes some you scale contracts. not the these question, for by it question. of I fair just time divide

and highly it. labs award. There It And we think was offering and probably previous, Fulgent more up responsibility time. good we one, contribute VA take to the that year the will get Genetics order have get do them it one. some team access, very a it's are they to can to are So be But competitive in our them proud tests, will very get I a these opportunity bit have connect think prestigious hospitals does sales them these each we with where a our a XXXX won to that with meaningfully test. little point was cancer than these big supplies, out to to set hereditary hospitals portal there to as that won accounts,

So chose we're serving the VA. a partner to to great I they do job VA. And look We for very them be we're think that the and us. pleased a forward for long-term great going

Lu Li

Got it. line. OpEx Switching to the

XX% the is jumping declined. for maybe like in changes quarter? like well? roughly I'm sequentially like for like but as were off around R&D that wondering what margin I'm wondering, I 'XX gross -- is QX. I guess, kind And like mean, mentioned -- the flat in also, then a also of also XX% SG&A So point sequentially, the you in

Paul Kim

Yes.

row. seen and very, Ming, touch the X over in years. margins, R&D gross then we're The margins, a the will achieved, we've I'll about address very I with it past talk gross about pleased I'll turn the actually development XX% can particularly quarters the margins, and to couple stock-based that of on now who spend, the SG&A, over the So question progress the in our excluding We gross compensation, efforts.

can QX think out that of margins are based gross be automation efficiencies, the expansion that. least should We're we our and we're I we like where And as XX%. continued higher and to hopeful it what on targeting our seeing, XXXX heading. that. potentially We're look at business, be than

far SG&A things and few As a this had as we happen. quarter, the OpEx for the particular

For the upside, meaning that less spending.

As G&A. you have have debt favorably has over quarters, seen impacted some probably the reversal been of bad we which past several reserves, having prior

made between should a some $XX accruals, excluding this stock-based I think G&A of had roughly reversal which be number also even the line We and be legal basis, $XX on quarter more a that G&A going-forward million. compensation, favorable. Having that million said,

actually should $XX between be $XX it include compensation, million you stock-based million. If and

I XXXX, programs. as far for we as based as look and year we that's G&A. And spending on into probably tends our think have the So fluctuate R&D, close out number the that what better during then happening a out to on

On also with future is. one tied that hand, development are and being cognizant are the it But the effort flip technology the where to the we very focus of is on perspective. R&D side, spend we area okay in the from company that a our

So diagnostics efforts, who I'll on comments Ming, on the make about to our side. can as therapeutic development well over turn the both as some it

Ming Hsieh

new the in [Technical those new new continue Yes. terms tests up continue invest [Technical Difficulty] clinical as the well as trials. are receive in Paul. and new we our trials side, the you, of to side, pharma [indiscernible] diagnostics technology test the [Technical continue Difficulty] to Thank in Difficulty] initiative. drug develop from ramping

products the and some trial. mentioned, we to in cost more see increased to going R&D drugs the [Technical more Paul is Difficulty] clinical start into but moving general, we have As as be

Operator

David coming Westenberg from is from Piper Sandler. question Next

David Westenberg

then about change segments growth. you business does you Anatomic Pathology? the us X how completely kind think we we mature would market, It seem a strategy of growth? And rates. contributed basis, like company below think about It's on had should all fixed? Do you this Can so in lab that mentioned it's working. in business it you would remind go-forward a guess see be more I as as to So about still

Brandon Perthuis

for you the question. Thank Yes.

I'd pathologists. laboratory and thank First our and to foremost, our and like acknowledge

they're pathologists fantastic. just Our our lab, in they're trained sub-specialty --

our times great, relationship are with our great. are our is turnaround great, Our quality clients

quality the staff. fantastic foremost, and has team sales first there pathologists and and our a the out credit operations, lot represent a of That allowed laboratory. goes So the to to go our

it's points clinicians, there existing So are their we're derm, GI, out that whether GU finding labs. having pain with

quality, is And call, in sometimes mentioned the of at service, We're really X that's are dermatology often turnaround now. clients that's right getting run important for done well in or turnaround dermpath. into that out pathology. in a we've time. I aspects on X-week very X lot or X- especially but And there all days services. time We of

a slightly very have we we've some the some So larger existing before, good have. additional also in We leadership sales people. leadership good team. sales complement some to mentioned very we people, We've experienced in brought brought

sales go account there management. weighted We new too too management new clients. emphasis out to much believe did for We to company, much incentive business. now So The have felt revamp also that need team. was sales acquired the sales When pay we drive organization. on there I and and team world-class compensate we find team we do like -- we to a how needs account our we

-- new did compensation. for comp heavily completely it weighted business plan. So overhaul we to that We

happened in back has to to pipeline to that. We've doing team January, to and we basis, that monthly hunt as as since new today that out back that think The but And had on business. management, new account They're for and that there back just on activities go it instead focus great has we is calibrated So business. ever quarters business. I continue their been. acquired set records strong can of volume not a line the

XXXX. So we're it's think to pretty carry going optimistic, and I into

David Westenberg

to Got Ming, -- go sorry, ahead. I want it. And then just

Ming Hsieh

I enhancement comments, technology the think Brandon's the on significant a does Adding play role.

fully the slides. dermatology XX% our getting digitization all terms or We close in beyond of are pathology

year end. the We towards for are XXX% the pushing

AI technology the do we and digitization see or well With increase implants our efficiency work our house, enhancement of as quality. the the and in and and through pathologist include as efficiency the

Brandon's effort. in proud we're our enhancement and of team technology with collaboration sales So

we So for very growth do path a business. the see good

David Westenberg

like -- and with And that of -- we the OpEx in be Is Got fixed of also want on parts G&A then how then made the year like in additional we go about before, associated that's I costs it. to some that. terms questions, expenses here. or expect trying And to improvement the Texas Paul things for maybe just you're with the contract the margin you guessing with preparing maybe think can the yes, in be should that. about the in any revenue gross the hit? to OpEx VA going there lab. kind should other way I'm to the OpEx facility I'm you OpEx, this just stuff going say, And that associated get capital on help the think some maybe to involved the

Paul Kim

question. Thank the for you Yes.

So on the answer the no. is VA,

the people service all that have to the We contract. including capabilities,

that we should the That up then happy facility, facility. And staffed that people. Texas be run purchased as and able extremely contract that capable So we of kicks in very the accretiveness facility through running, CapEx as cash. fully in. by new and is see our We're that we far own usage as to

that of look to turn I'll we a intention facility. as as of our organization facility. And that took to our get over also much comments We can our Brandon, usage entire additional make who leverage out some as how at it can well to see

Brandon Perthuis

time. that relocated people, in disruption it's the have all turnaround the don't testament almost I all to I'll the our big a whole just equipment, everything and team. to add. lab, Yes, had entire lab, lot say We a X

it So operation. are strong in shows just we that I think how

actually -- to running it do expand. by we addition, gave us it some mentioned at space it to was it, scale. In continue quarter in there gives that actually have moving I And the not of been labs ground pathology from have of an lot them opportunity had build time, And the the because from scratch. lot it around long a it to up. opportunity design a a to

the there were the and just efficiency, operation. impressive we an the So it operation, scalability, the flow, is seeing

it have do to which future, should in AP. But capabilities support build we further talking will some we're So we our in the about. decide space growth out addition, in

David Westenberg

just Got in and one, might then you know think last but it it. disclosed I don't the And this, if the Qs. be guys I

in you or Just of labs. versus stuff a outpatient running end lot as are terms payer, market by doing for -- inpatient lab and other of a provider for

in If that. that. mean, you Guardant many give there's been that be other with those that going I seeing of there's -- kind coming just trying in I'm the I and can sense also versus all at for years quarters. But ones us with And business there's the speaking, with want little what expectations get a -- your some lot things getting Tempus of get conservative breakdown prior and maybe we're prior X they're payers, a to billing of to more Generally as payouts to true-ups some from with a your of are potentially. then as like bit not these

to will So be some my those. your And I exposure just want of last question. that in about know

Brandon Perthuis

good Thank a the question. you question. for it's Yes,

entirely a party. we're on and foremost. reliant here, And CMS not not reimbursement. have and We're Medicare We first business on third diversified entirely reliant meaning

business from hospitals. institutional have We

pay commercial We have government We pay. insurance. have do

We have partnerships VA, example. the for like

relationships. BXB have We

platform. our through relationships direct-to-consumer have We

that's up little test mean insurance I it's are I really ask novel because offering you granularity, a on really question right? driven, more have a the reimbursement business. And if diversified you're picked haven't to that test yet. So think a we a company

life pretty much that a reimbursement. difficult of reimbursement. are entirely pretty So of Reimbursement terms days. reliant again, standard more on And a if of [indiscernible] it's investigational is the offering things lot little not your experiments But becomes these in we're we're care solid. proven,

lost collect terms So may question? We been the good. what your we can speak, of what Did answer of it's have run, in our I revenue, on pretty so to collectability, quality I David. we think

David Westenberg

last of That on. the my was No, I'm question.

I the that Sorry, was thought end.

Operator

Next Cooper question Andrew Raymond coming from from James. is

Andrew Cooper

week just first, over general. or on in in a space Maybe the last lot going the so

occurring then the for you That change any included. see highlighting were in And felt I opportunities also a an announcement particular you to little or bit So pharmacogenomics. change that, in want recent call or coverage with that like any talk was in just out? coverage VA about that M&A area decision you could

think just sort changed anything love how space not you would if to United's that since about to that's announcement and of So hear cover. that with there's decision

Brandon Perthuis

Thanks the Andrew. question, Yes. for

terms it's in VA, of essentially. opportunity In PGx cash pay a

have almost exposure it relates to So we reimbursement PGx. to as no

and makes with sense. I'm I not was... VA, us. it super part a of partner also first the reimbursement, -- of to that happy test for we're it's great care, test offering, but historically. mean, is think important PGx relying obviously, medicine, But on third-party provides the an to but That's for So right? sorry, the in a if us precision we a it's lot patient of question high-volume opportunity for value us expand terms our PGx not

Andrew Cooper

any [indiscernible] change there? M&A

Brandon Perthuis

But to nearly would on team I call we like daily M&A said. no M&A, There's mean, of basis. spends lot a this you out, evaluating entire management time a as

on call, our happy of we've the with position, cash we're As mentioned $XXX pretty somewhere million. north

just optionality to the it's well there far, have us. us, do being so and we And M&A. So being done We've for worked we're cautious. for M&A careful,

proven targets. identify those We've we improve can proven integrate I we we've right So we think the assets. can and those proven can assets

target. can need find So we it we but know right to we work, the make

priority on but list the call company. out the at to certainly So high nothing yet,

Andrew Cooper

for umbrella as competitively with pick the fulsome they up Ambry bit I try if actually actually all to is an meant there you any little point I Sorry, this under share the But at That's up a to landscape helpful. meant, where changes could offering? M&A. potential others build more disruption broader of at Tempus

Brandon Perthuis

on don't think acquisition. want that much much I affects think it mean, too Look, you. to I we I Yes, got too don't I comment us either.

to So just And I affect how at that. of of that's some other kind on on doing just we'll of here with than focused it going going what mean, what's here I don't the more company, kind leave operate at the companies. we're we and we're think

Andrew Cooper

Helpful. Okay. on again. last just contract one maybe And one the VA

to clear. want Just be

up these without I could we that? And maybe this we if and mean, this easier is incremental to have prior you the you license it order, about or go $XX volume are VA to now you perhaps [ reimbursement growth of to you established than bit sort sense, is that And a the of news? give is to So for say, VA or something you're are thinking it relationship, and with a think were contract able maybe revenue the hey, that think entirely hunting on is along from million incumbent of but that? to little right how really ] generating an kind much to clinicians to it's us with about to how we this that create a just go do

Brandon Perthuis

Yes.

you be is $XX nailed You a it not possible contract. I easier license. this said, And it is it it. without than It Well, hunting right? now, possible mean million now it's was? would

them [ So our set up can get that we those recs on call ordering. system, have kits now team them hospitals, in the sales it, and ] get the our them get

time license. mentioned on $XX So million to hunting that It's necessarily yes, I call it think the some take X. that. by it we will is scale a divided not

a not possible hereditary But without it VA it It think now the that time hunting possible. makes was contract. that is cancer us take for will sell into that to to scale some license I it.

overall the break that to So that team revenue, that and all to you to very We out get is represent and by it happen. It our capture but contract do incremental we're -- don't think the going I is starting happy to a of significant is incremental can VA. in contract business, incremental clients think XXXX to all happy with significantly XXXX. we We next that amount really made year. the

Operator

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

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

Fulgent Genetics (FLGT) 8 Nov 242024 Q3 Earnings call transcript