Earnings call transcript Q1 2023

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Operator

Good day and thank you for standing by. Welcome to the LumiraDx First Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]

to Garcia. conference like speaker to now Melissa today would hand over the your I ahead. go Please

Melissa Garcia

Hello everyone today. to XXXX and welcome financial first discuss results quarter LumiraDx's issued earlier today's call to

Ron Joining LumiraDx's website Dorian The Relations posted release us press at section is Chief our results the Chairman CEO lumiradx.com. LeBlanc. financial are announcing on Financial Zwanziger; and of Officer and Investor company's the

forward-looking any statements I Reform would pursuant Private historical like statements that we begin, listeners than the make we Safe Before facts, Act the caution are made to of Harbor other today, to of provisions XXXX. Litigation Securities

December Please Any May such XXXX, that with filed such as all in Actual Xst, report the which forward-looking uncertainties light in the of detailed and risks ended make our annual these and with materially. for be be in results XXst, aware forward-looking vary XXXX those that on XX-F considered on other was statements statements that Form factors. we involve SEC filings year may we must make SEC. the

website compliance for to information non-IFRS during financial today reconciliation financial from non-IFRS we press issued substitute can call, our as may release certain today's these IFRS. with isolation earlier a lumiradx.com. which should is schedule refer in showing found a not financial measures measures. in be at Also presented our There of considered or Non-IFRS financial on the measures in be

remarks. I will now turn to for call the Zwanziger over Ron opening

questions. provide We and answering financial will Ron? business before updates then

Ron Zwanziger

joining call. and morning first Good for quarter everyone Melissa. Thanks our you results thank

assays Mark markets; and development success. strong the while plan; our innovation platform; cost reshaping product our lowering organization commercializing advance US revenue and commercial our molecular high-sensitivity other the and to on three international include; to progressing our We and base Europe portfolio accelerating our and CE support of top in which our troponin tests of pipeline XXX(l) continue priorities,

in international other which linkage world's care XX in NT-proBNP million for nearly Europe worldwide. QX. quantitative in fingerstick in reach markets minutes failure, and test for from first results the immediate include Milestones heart afflicts QX XX delivers allowing launching suffering test patients people to This

of trusts February, XXX Medtronic the cardiometabolic In February, and our UK we've initiative number shipped as commercial showcased in test health to your the Heart Bus in care this part customers. our alongside already a the delivering in care highest-margin product more health local Since community. of we than NT-proBNP test Matters checks portfolio free

for HbAXc recertification As previously high Chemistry, announced, Europe our Federation in recently with test the our and of we Clinical performance International achieved certification NGSP the of assay. demonstrating

a diabetes Pharmacy announced new pilot LumiraDx demand screening platform to grow assay. utilizing and private across service Europe for custom this for Boots the continues

These implementation Japanese and June Japan. going readiness tests commercial we tests. received for commence pricing through Japan HbAXc currently our attractive CRP and an PMDA both point-of-care assays. and with sales from high plan in for market reimbursement represents to We approval are commercial

take CRP, for highest advantage HbAXc, European NT-proBNP of and quarter more marked quarterly customers sales first multi our menu. as INR, international date The light our and to D-dimer,

testing with closely locations to our this. growing are customers testing. achieve of we the instruments shift We're to Additionally, for optimizing non-COVID working prepare to a our

nearly XXX the for non-COVID cases. we their testing procurement UK, the COVID locations from into deployed In successfully instruments use from NHS

light deploying initiative -- we're We instruments a and similar the of our and NHS a base with for in for testing multi XXXX-plus Africa. expect instrument exploring to continue to deploy redeployment portion

volume are tests per the instruments tests number maximize number to of instrument. instrument. and doing their testing different they customers seen non-COVID customers our of encouraging run are our the We've of per the they continue to we Overall, diversify assets, are on

Along actification quarter. clinical XXXK to an the five-minute submit QX. deployed with our the quarter. Ultra instruments the instruments XXXK in to anticipate we second with for US, COVID over those deploying customers additional In we like to the and we FDA addition NHS, the plan studies in XXX our concluded redeployed in the In X,XXX instruments the product

XX-K helps samples pave for XXXK unable tests XXXK acquire our first importantly clinical the including year. the we complete our current prevalence, cardiometabolic Due submissions this LumiraDx the season sufficient Our way for platform study our future portfolio. low half to menu, in other for to to the clinical were during

the Flu assessment FDA program combination and We accelerated rapid work to the its external our This undergoing with diagnostics XXXX-XXXX COVID review for the program continue to and in product by of testing. is season. acceleration NIH, ITAP test stages achieve currently independent established EUA program for final

We do in the LumiraDx seasonal US near cardiometabolic testing platform the menu, see we outside term have expansion and COVID endemic for the commercialized in the which for the US. opportunities respiratory for

the continue for US increased the We to expansion. see even in platform the orders prior menu to

of result program, both we're Strep TB, initially A with for high-value a assays our reduction molecular Troponin for and our development high-sensitivity As of testing accelerating the and assay. cost

the expect half clinical the XXXK trials launch expect year the to assays these in We and in to UK other high-sensitivity and IVDR test. year, US of later for in in this Troponin markets commence second our Europe and

and during efficiency advancement the in care accelerated of pandemic, The quality, delivery. and have COVID-XX technology introduced of convenience new healthcare models improvements

easy-to-use examples. base. this the a instrument platform, developing deploying and our cases brings increased customer performance technology Customers together which for now laboratory point-of-care of of use resonating across cost generation with is assays new seen and a low unique care equivalent ownership, a point-of-care our following single are in Our on multiple facilitates as

the In care being are Ward, get in hospital. homes allow to which the call the Virtual health than systems worldwide mentioned need in they home, they the program. conveniently patients Ward previously are in a NHS safely including being positioned Virtual some in trend growing rather care place redeploying instruments and of UK,

technology. lab primary enabled LumiraDx test which definition exactly England tied with broad of key as is and a with technology, system. towards healthcare safe minutes development delivers Virtual a platform, care a more the by NHS The of better care to enabling this comparable a alternative patient-centric that is Ward efficient menu

enable the that in of lab houses, authorizing urgent of process largest and launch, comparable previously is reimbursement as practitioners France where testing This example, and an to market clinical nursing testing point-of-care only facilities have general the opportunity new in care use legislation such legislation to point-of-care to homes. to a Another been second medical settings required new clinics practice into Union. is European in expected the open country expansion

COVID-XX, to US COVID-XX administer The testing allow at essentially and Readiness or pharmacy Preparedness Act PREP to and enacted and recent location. qualified vaccine amendment pharmacy technicians to PREP the was which Emergency during extended coverage Public Act, pharmacists

This especially to model results and one and and in conveniently need treat allows populations and is for emphasizes patient testing for the lacking in settings. areas assets geographic visit impactful point-of-care convenient to the health patients pharmacist traditional test

fee low utilizes XX the with plan is provide WHO universal suited the to rapid high on of The final single locations. for example to And tuberculosis million particularly TB at access diagnostics, issued XXX TB the this WHO testing is infected instrument with annually. serve a cost to a the trend we'll universal the year, and that LumiraDx platform over April standard well achieve consumer-oriented to access care retail

as amplification the our threshold a $XX well and calls within of enormous "low-cost" test the is XX sample TB be provides expected minutes the tongue US that below first-in-class to an results an to report, times demand developing for simply swabs. product. exact test nucleic potential suitable global for of that next-generation the battery-operated EG LumiraDx will WHO test that price the collect As asset is part are for description This rapid speaks TB and

platform care As you see, myriad as designed can solution was the a the specifically, for and traditional LumiraDx emerging models. diagnostic

in geographies in community-based implement mature, new use cost. remain and our continues menu enabled our platform's our low results platform to our workflows our healthcare to lab customers performance, capability key in We and confident ease expands As with comparable to by transform minutes. of continuing

Dorian financial Dorian? our quarter. Now the further will first performance in discuss

Dorian LeBlanc

our XX% revenues revenues our $X.X non-COVID-specific of sales. recent million Thanks, to $X.X our including $X.X technologies from in total LumiraDx QX stronger-than-anticipated distribution first million business. were guidance exceeded from Ron. COVID on revenues, our for or million million Quarterly quarter Of solutions, $XX.X from

to including the QX results seasonality the expect in two headwinds anticipate business quarters. and in to total compensate influenza We RSV in growth our for our during for next revenues point-of-care respiratory provide growth non-respiratory respiratory similar revenue to testing We with in be QX COVID, our testing. seasonal could XXXX test decline

exclude profile most recent adjusted million. fixed gross placements of margins net costs cost and depreciation, from fixed of impact quarter we anticipate dilute similar strong were Total decrease Adjusted The gross test our the manufacturing margin QX, expenses our reduction modest restructuring in compensation strips. margins onward full program amortization, instrument stock-based and as charges. cost will and for our adjusted gross margins June gross the $X.X

in most cost of process As discussed of in implementing additional program reduction our annualized prior earnings we are the recent million our generate savings. $XX to an cost call,

the realized that expect these XXXX. of full activities We QX restructuring will during impact be

of impact activities the operating our our our on quarter. – the within accelerate from did restructuring We expenses XXXX

Our $XX.X million adjusted amortization, were and million first operating exclude compensation XXXX. QX XXXX expenses and $XX.X stock-based in expenses SG&A R&D compared quarter restructuring QX first were and Adjusted compared $XX quarter adjusted to charges. expenses million in million $XX.X depreciation to

in reduction to anticipate the QX. $XX.X cost further adjusted we loss decreased Our operating programs loss quarter for our will million reduce and our

XX, our balance cash XXXX, March At million. $XX.X was

specific In do company our our programs this operating deal our reduction losses, strengthen sheet quarter declining our on later we to expect to the to future. the addition focus for balance cost and with

this, additional which effective $XXX statement prelude the registration we provide yesterday capital. for raising alternatives filed in million a shelf X, amount on a to As of May became to

to pause questions. gather We any the will for Operator? now operator

Operator

comes question Kumar first Our with Instructions] Vijay ISI. [Operator from Evercore

Your open. line is

Unidentified Analyst

you. you on is hoping are OpEx XQ through walk of just and Alexandra I [ph] you're just that said expecting? cadence the for expecting for but loss, one in rest for the year. you spend like just you what This the of was I reduction Dorian XQ OpEx know Vijay. could Hi. the

Dorian LeBlanc

we haven't QX, half cost quarter of reductions from of the impact XXXX. the any real had the in had the So about we recent end from reductions, announced cost we most and at only

think you R&D and expenses, I SG&A. goods So of cost three cost impacting the can reductions of that lines all are anticipate

million those of from being additional have of So reductions. to couple $X $X we come have million going out, almost and lines. come that million reduction, think expense million $X out as split impact we cost $X three of of And full the you cost end of across full XXXX that's the the to can million the

Unidentified Analyst

one, expecting year the of color, you and on the Europe? Could revenues in just the then you're you're Okay. base business the especially installed for like Ron. some UK base seeing and rest utilization, for to And give how more look what

Ron Zwanziger

when Germany, I XX% us, well or using transformational ago, the the changes, particular predict. a German-speaking hard of sort But as XX%, such of tests Austria in only. countries vast Switzerland, but in accounts three rise. risen year to -- And continues you're a a I ago already example, that's to or year and Well, doing but way company a of in little think risen bit a by COVID were over testing it's XX% of always a and to more majority the are that XX% about think

-- it's everywhere. this seeing we're So so

the -- about And redeploy to Now an -- Previously, think is actually was the the for new operation NHS we had the in of instruments locations. XXX we've this redeployment talked COVID -- quite moving we're and only done we only orders units. locations. might And just the we all the redeployed around expect tests and it's ordering centrally. UK, first And more. we from

XXX each it's think these strips. locations using have a and XXX they've locations there separate just one units, combination think of locations, and about I of will gone ordering different in only these over into, Now started XXX be I

tend to sick Now be patients. locations quite these are with combinations, these

of be a the sort that tests testing, used fairly will some quite NT-proBNP. kind be lot So CRP, and they'll we of ubiquitous, anticipate will which the of be INR

increased the from everywhere of picking everywhere. in our -- multi-analyte the that Europe feedback, it see and is we're aspect up see platform. interest increased negotiations, in we getting -- up picking our we So, And

And actually indeed, order were we we which a have multiple the new year so initial now tests. focused orders already ago didn't where for on but is we're because getting before, COVID,

additional set we -- cleared fact So, products, And hold. the products company the two beginning whole test is so a basket we of Japan to we've that in concept more getting Japan take mentioned, now got recently as the is bit a well. of cleared in of up

So we're anticipating significant growth.

but of Flu little A/ growth has done very Some will Flu it's decreasing from of relatively QX. will decrease course come of have B, the course well, which in what

Unidentified Analyst

Great. Thanks questions. for my taking

Operator

next our for question. moment One

with BTIG. question next comes Massaro Mark from Our

Your line open. is

Mark Massaro

Hi, placement questions. small number all first to some I the number, question Europe, base. there is quarter. in My around guys. relative you those relatively the substantially it's the or installed Thank were Were for US a in know, instrument placements? your

Ron Zwanziger

Europe I think there non-COVID. obviously in all and substantially were was they they -- were

Mark Massaro

Yeah.

And then Was to have of in to clinical a Okay. may the say you the for been prepared trial? I able US for that of remarks, due to you the prevalence comment COVID? can And lack not Ron your just that heard continue. certain indication flu as you which is that

Ron Zwanziger

And b the Yeah. trial flu around. That A clinical almost a combination was B test. for was flu flu no COVID there just

ITAP the requirements right right have different. doing but And program, -- and remarks do we in what as -- of think data. external do we we prepared they're will the where have we the where through working so And we the have described are -- testing kind the we're

expecting a for we regular of allow XXXK combination. will trial we'll the Flu that COVID receive So that season, the expect for the regular complete to at XXXX-XXXX or B And A address us beginning then to season. which the

Mark Massaro

And That's you the the sensitivity it's Could update program helpful. to see Okay. assay Europe. of troponin good in high US? an uptake the All on nice then right. the in provide initial Pro-BNP

Ron Zwanziger

certainly. Yes,

can show rule first should So the all, which results of high that a claim. we sensitivity, internal have we out enable achieve

-- this now. to clinicals start Europe the just So for cover be that's US, but you We're where year to the -- later the expect the that for at for will it asked center starting we're in we IVDR.

So both to those this trials IVDR XXXK year. we're start expecting for and the later

involve need more and of a sites these in XXXK, most patients study. rather the -- are they Unlike large involve involved more they number

And than that and year. to we simply next we more expect So six to that having months the collection. more then to do take by would hope do expect and that we could not sites data submit

high in US the this do UK expect sensitive countries the troponin we and get expect meantime under as well. select in the to this fact we're program, to and in the start the the for in group And year. a world later shipping meantime, Now self-certification of opens this the year apologies later customers through a number UK that, around But Europe. UK to in actually the that for select able that countries

start can So while generating completes start getting the the the we XXXK revenues from IVDR troponin can we -- process and next year.

Mark Massaro

you believe Okay. Are Lab primarily that in Solutions segment? your That's great. Fast try I business was to looking to more non-COVID guys out roll that's COVID. content

Ron Zwanziger

which under to were in question, flu US Fast significant numbers Europe. seen just on and your a amount you've in we flu of did Japan Lab correct in the -- Well, B we EUA have and in A the selling

the additional and it we So And already markets additional on time A the expect on over have B platform do well. platform. we yes did flu flu very

Mark Massaro

for Okay. the of molecular. in market? you on I about front the status talk A me, What US And clinical just heard trial is the accelerating last Strep that the one

Ron Zwanziger

about what just So actually -- we the shorter. start itself although expect very to to Troponin it's should I similar be trial said

very A. So good. we year be Strep very molecular early And issue subject Again, the regulatory the our the this next later results excited expect start trials year the to market about to A are on year. this well -- we're Strep and

organization market also expect our it's that have does with And be in in submit expect this. it. we FIND a clinical to And trials organized And we results, by it to the had to program Switzerland on program. we TB Feasibility initial an

they April this in this program paper which published remarks, we've prepared said April, ago. major the in in month a they past WHO a has As described called our

our whole quite we expect as cutbacks are Generally, not on despite A the it And immediately so actually in Strep in, with to put we a that on and generally cutbacks the part it's test, part line the tests the important because, the tests market of this TB, -- for the Gonorrhea, is role. platform. company molecular well. Chlamydia, be so protected we behind but these the just And severe TB include coming our

Mark Massaro

me. Okay. for That's Thank it you, guys.

Operator

our question. next moment One for

Andrew with comes next James. Our from question Raymond Cooper

Your is line open.

Andrew Cooper

Hi for time. everybody. the Thanks

already. covered questions Some

Japan first opportunity talked a the what kind maybe sense instrument and of is So Can an there. you you capability currently about there just us of the and sort a give footprint from perspective? distribution both

of be quarter. installs, where some next that called much maybe us And you from? then think of coming X,XXX think about to may is How going or we other for Japan that when about momentum that geographies, or help out

Ron Zwanziger

moment, a tests I two the cleared. don't in number in And they're I growing. have because -- they the ask first-of-all about, remember Well, Japan. just I'll should excited It's Okay. Dorian, remember that very

prepared that We over picked But X,XXX. X,XXX. the you did you we say asked remarks, deploy in about specifically our on which up would

I do X,XXX deploy think as the shaping considerably up the above Japan? way in said, expect maybe the do things we number considerably over Dorian, will and you But deployment X,XXX. X,XXX. over well I we'll remember be are

Dorian LeBlanc

instruments. between XXX and COVID flu those our primarily with XXX It's Shionogi? And Yeah. and have just hospital-based partner and been business and Suzikem

Ron Zwanziger

Thank Great. you. Okay.

most McKesson clarify people kind equivalent -- the clarify, to of have is call comments. Just in on to Suzikem U.S. wouldn't the understood the to just since

it's So a large very distributor.

Sorry, go ahead.

Andrew Cooper

gross give like? you, strip Maybe one kind exactly of the detail a Dorian, you. bit little tracking a still Great. but little margins angle margins just bit of more you'd Thank terms in our maybe can you more us towards on as

get things well. in down, you a sort more we XQ transition on obviously, the to XQ, where year, later COVID some into maybe margins have of seasonality respiratory as end expect we from back have the And little of think you sort about and as normal should coming then, XQ this when land bit

think us margins help land of where the rate about would aggregate expect you those at of to Just an gross and kind cadence maybe?

Dorian LeBlanc

I The diluting from cost activity. maintained COVID are, that through the of reductions portion the manufacturing the things mentioned cost that both we're size perspective the that remarks base a now we and that the amount of rightsizing that footprint margin in prepared through the wage Yeah. part and of is a up fixed is cost have staff that in base still of scale two the do have working manufacturing we just that a

but that So margins, tremendous on we to cost capacity. the continues have drag and fixed certainly that's a

about the next us that think the test for lot already QX. to you a the borne in strip, is see cost that make as in of cost So you numbers

And margins to strip strips, question direct strips. the around materials labor still on where are test exceeding the direct we on your margins tracking those and XX% test test have individual and costs

on have followed seen who those the an really amount have it incremental so basis. and and there that that disposable As spectacular our understand material margins note of drives can the is limited company

So the strip revenue a back as anticipate half lot the especially we United track deliver volume of from seasonality assays gross from that's growth which in through test core through to line. from of respiratory we straight both an and based States, in year, flow margin should the uplift the the the community going

where of more we instruments of the the of offset the instruments, in when we the quarter. The instruments XXX% rental reagent model course, that, until to we of a expense placed they're to continue cost is capitalize move

around margins on peers. long-term arrangements portfolio, of instruments apples-to-apples, isn't and business from But improve we'll broader start move into got more the the capitalize contracting will reported that well. the our some we drag other the as that's So to as they that those respiratory

Andrew Cooper

now. for great. stop Okay, there Thanks. I'll

Ron Zwanziger

add to a question. bit that Just to little

field. need which elements shows to the the are performance make whole it margin. provider, three low-cost point-of-care single gross to of in get has the a to into setting, the we and we around keep being lab to driving You'll it and our of which up the recall we set that profitability program, more instruments -- But, platform, company course, to

lab in because start to platform cost addition to about in and point-of-care context But the performance in our setting. advantage just single it about using as side on having we're to molecular, put launching the a competitive molecular

a out are have based competitors they that as as as have, test high tests there high on the for at of but test. Some the cartridge as moment, the the at some $XX molecular cartridges been $XX share, their as high a some data

are cartridges volume for And of ones available. cost tell far Some around their per companies the is these of public the as the market data production we around then is of higher as leaders as $X some can the cartridge.

that out, test are that $X. Our referred of under cost Strep our molecular is we production to A just coming

our of it course. So margins immense the it and is gives and -- us competitive advantage drives

Andrew Cooper

Maybe I on sneak in actually more if front. that can one

molecular, frame Just the would COVID in the molecular time and a progress, decide what to all help given us invest we behind like? or think options all and versus road least should look having about And about potentially are whether transitioning this towards think antigen parts the both that puts burgeoning from the to combo at the down takes COVID the or And perspective? what moving out there menu?

Ron Zwanziger

customers our COVID molecular a just you use our to our the some and lower. have performs the equivalent -- website instruction so because that as look for out the question, at from tests see Well, test of as to FDA there the antigen complicated antigen well, test, rapid at that's performs

in the And early reimbursement but and very on so taking too tests without much the during of pandemonium pandemic and particularly the through. phase the rapid high molecular were thing selling way people when all using around really pandemic thinking advantage was and it one molecular getting prices the tests the

disappearing and us customers people so, think means to post-pandemic which normal, molecular costs is is starting are more to carefully. on been COVID returning have are that share, margins of for life and the to now advantages particularly our taking reimbursement all having test a And the because switch tricky, gradually our about platform to

to competitive customers We gained price performance equivalent actually our more result you a as for having a actually molecular of COVID test, share gave -- COVID. which

molecular then out on platform. COVID say, the tricky a issue to for it's we'll okay, put So, us

demonstrated can a it. done do actually is for -- we us So, from gonorrhea, demand We've customers we But and others. priority we result enormous the trichomonas Chlamydia, it. around have that of have

better it's than R&D possible it's So you much more we've expected That's us and done the probably even to COVID molecular though our for a course -- deploy into than it. rather actually answer. those longer platform, resources to of providing around it's

Andrew Cooper

great. that appreciate it. I was No,

Operator

for our moment next One question.

next question Goldman Matt Sykes Our comes from Sachs. with

Your line is open.

Matt Sykes

Hi, good morning. my questions. those comments Thanks follow just Maybe you up taking Ron, for to on made. last

As talked maybe of post-COVID you shifted deprioritized portion that gets decision throughput, a advantage that the cost point-of-care still an becoming as about of cost get in competitive and to issue is your finding you customers given have and relative bit. have accuracy into found bigger that it priorities Europe just for long a and elsewhere, the we you on relative tests much Are of the may a the market you comparable? is side. customer's was kind expand throughput, cost I'm say in to COVID as from have throughput, the as customers during volume represented. them sure But that

Ron Zwanziger

Well, the customer where diversity marketplace enormously. in by the country, by own varies are -- they their

-- answer candidly, we issue that's hard So, because customers. general much of But do for our more there question a very are that's becoming is of an one cost in globally. much, And perform. to advantages, but

sort and in place optimistic will X,XXX. of we're so quite one we're about the that our And the comment deployment reasons more increasing optimistic of than

asked. you just question Some with that the of directly associated is

we a gives course, where competing which systems. have it gives you in countries you customers our competitive they alternative low-cost And countries, health where have So, think in And them just the I advantage the nationalized do it convenience. them of prefer. give systems,

a the we award NHS, described the the And along we which so, the of convenience. with think program we solution, low-cost but in provide virtual lot

I of think But It's the a are penny course, some we're customers. yes, right like -- primary of responding, but kind customers last on And are this argument. of payers number, trying the of but don't reimbursement. to it. side who there the kind obviously out are So, of decreasing

Matt Sykes

financial strategic in the the of some modified filing filed agreement the And room to a potentially is could if waive additional February, shelf push of you that debt those that. June. lender covenants? out, take with end for Dorian, and address is the Thanks it. to for filing it address or until that those you is of discussions Obviously, shelf some Got there senior said place likely then to needed, the But to really issues. covenants going

Dorian LeBlanc

a to length out and sure, the we we've best we've few have options think, of I the that allowed decisions. got this time play make make we to

We room to lender that fifth have draft the team. very and signed collaborative that company supportive mentioned that have amendments through a was and I'm certain the in amendment we to our as fantastic lenders work we February. any our you with the been continue supports and technology issues

here in and quarter. address company. to to through we'll have us the work obviously capital of that do we yes, position it the But the The gives shelf to continue another alternative

Matt Sykes

more Got question one me. just And for it.

the last that actions You with then protected you've again mentioned year some savings made that areas. and year, you this cost

far? where You mentioned you've you side could the Chlamydia, thus just due from opposite initiatives you've to savings cost wondering I'm areas the gonorrhea. enacted talk about that deprioritized

Dorian LeBlanc

as that switching the pretty primarily changing question molecular of dynamic antigen work, but some reimbursement mentioned, where rapidly. and from Ron switching have a perspective been the decision decision tests deprioritized, is an we doing is area customer that Well, previous from we because to a really

area that deemphasized. an was that we've So

room, previously landing Obviously, beyond for on that. emergency that we that first But as are of have focusing some hold franchise other markers the as well. but longer is range troponin, putting the on troponin we mentioned our in really program the flagship assays Amira important to

kind qualitative structure because the the it's development, molecular get all a through Ron that the mentioned, launch. our with The value performance pathway cost programs to easier of and our of to to the way result is

margin reasons only rapid drive attractive to those rapid molecular but of make All revenue growth. tremendously growth, not

of why assays, other we out that's and we the So prioritized assays, and community-based some immunoassays emergency pushed medicine further. little those just a

Matt Sykes

you it. Thank Got much. very

Ron Zwanziger

to in just a was part the of R&D. fair severe be clear, -- But we cut cutback

result high-margin a and in which quite programs are molecular number of this. delayed ones the that there is remaining, are of as of a focused that on course the So a troponin been We ones just have particular.

Matt Sykes

very Thank Understood. you much.

Operator

question. for next moment One our

Our next from Thalmann. Ladenburg question with Jeffrey comes Cohen

open. Your line is

Jeffrey Cohen

taking Hi. Good Thanks for the questions. morning.

few a from approved Just COVID? there There's me. Could now? Japan and clarify Was tests you now? what's in two flu HbAXc approved

Dorian LeBlanc

We have test. COVID antigen the

the physical flu of offices. CRP. a remember you can B consolidate technology move from space of COVID multiplex away that has opportunity the small And the instruments office to into have flu you and where number reimbursement. allow and move and get a that type doing A, Japan very HbAXc there onto revenue of can tremendous lab of physician physician have most a for operate them do this we out XXX,XXX We send-outs That's these testing physicians to and

menu assets instrument attractive is the market opportunity attractive for really multiple single for Japanese really us. tremendous the on a So

cleared Fast distributing a partner have We Labs the also have products those lab from and Japan in the perspective. as well

Jeffrey Cohen

Okay. back that Got earlier the it. then commentary And you to call. jump some to in wanted I in Africa made

what what little locations? of locations there about could please? types a to talk and from Could units you bit So types you of redeployment the elaborate

Ron Zwanziger

X,XXX than the instruments XX the agreement in beginning The back countries. on under X,XXX the dozen. Yes. down them fewer less possibly of pulling of at And Foundation the probably in with least process instruments rounding the these X,XXX Gates a Africa countries we're of them at to about we focusing pandemic distributed of and and

is this so underway. And all

in we're at of the there's test being all but all the foundations non-communicable a XX of a round instruments doing move for trial as we're TB there's big instruments for testing the CRP is -- launch a by AXc expand and diseases, program in. in quite up that testing it's likely running also focus diabetes, doing in of these and Africa drug countries. example of the doing TB next And focus with program problem what quite to But for this of preparation stores is not a number it's what a the down testing. year. meantime, them focusing done is on is logistical moment proxy the South in And one and to the AXc certain So particularly

Jeffrey Cohen

then both the and lastly, we market current And front anticipate on the talk the can market. helpful. That's much. very Thanks US you and Okay. what regulatory here should about

you So as be planned will XXXX-XXXX COVID work make that little else the and the guess trial question approvals. far a talk talk bit flu. anticipated as did for and/or about what and I And the US about season might is Troponin

Ron Zwanziger

Yeah.

expecting Strep of course, doing be of troponin XXX(k) adding second we flu through. well. on year A We season -- the then clinical the goes strip we and we're possibly A next that as specifically flu part the the the So talked we then and COVID first. it's about we're in this obvious first We're mentioned instrument for market. we mentioned extensively. to one designed be after the to of mentioned INR already establish US and the they're doing And assuming And bringing doing troponin trials ITAP systematically that those trial NT-proBNP both flu in which beginning address that season. the all we'll we'll at tests to program, be the doing then the that additional because B will including the go the and we're But through that

it the So we and part those later the early should -- get the expecting clearance be to applying year. early next year subject of to market obviously both hopefully of on for the in in

Jeffrey Cohen

Okay.

Dorian LeBlanc

continue opportunity testing on US our the our competitive I was see in of to kind and add, take to cost structure. the going to indemnity pressure around on pricing performance just share based we COVID actually

term. the well there in So as there continues to be opportunity near

Jeffrey Cohen

Got it.

taking our questions. Okay. for Thanks

Operator

not call to I'm to like over closing at back any time. the remarks I'd this Ron showing further any questions for turn

Ron Zwanziger

time the to low a transformation performance the single to transition platform. commercial partly pathways the green the our first and shoots key be time support care. our has Customer all for we're for get beginning NT-proBNP launches enabling on cases moratory again your as never HbAXc of Have you our in a continues see good platform Developing and questions. our of outcomes. developing that where with our develop on to with You ownership tests the cases equivalent folks day. Thank especially takes is look response positive clinical customers bringing and to enabled on us. with Well, patient to easy-to-use together menu and cost community the we're non-COVID with assays multiple change new and use your is beginning instrument a enable collaborating a expanded, use better and can with customers of

Operator

gentlemen, presentation. conclude ladies Well, does today's this and

disconnect and may now You have a day. wonderful

LumiraDx (LMDWF) 16 May 232023 Q1 Earnings call transcript