CNTG - Earnings call transcript Q3 2020

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Centogene Q3 2020 Earning Results. [Operator Instructions]. I must advice you, this conference is being recorded today. And I would now like to turn the conference over to your speaker, Sun Kim, Chief Business Officer. Please go ahead.

Sun Kim

you. Thank welcome. and Hello joining issued discuss earlier for results, QX which were today. us you our to XXXX Thank

You can view release on this presentation and website. the Centogene's related press

For can webcast, on view those relevant www.investors.Centogene.com. the slides you unable to find the

speakers Oswald; Richard Andrin Stoffelen, Executive Officer. and Financial today are Chief Our Chief Officer, Centogene's Centogene's

securities materially considered Slide and of begin, subject we statements law. The today such, made future this maybe to results. or to our events or including statements, historical presentation uncertainties, forward-looking forward-looking by statements to statements within not which forward-looking meaning X except laws, be the statements of in we which statements required U.S. our that obligation reflect call financial only Before no development refer as provides regarding presentation, the revise be and our materialize and the that of today affect any may as of are programs, during these as please this actual results. strategic and be information update could certain those to speak undertake risks if may about made Statements development, they plans, future to

our SEC information regarding these statements appears Additional filings. in

presentation up to our a X. that the Q&A. you will Richard. Following maximum I Slide the ask Please to of also we over presentation, We will hand open now only to turn call kindly ask three questions.

Richard Stoffelen

Sun. you, Thank

points the energy early Oswald. him to and results, with our joined get has we company. passion briefly of A Andrin. our in and tremendous CEO, financial into me December, amount a He Before introduce new our on company let few Andrin brought

and of where from and expertise the of was XX He science the Diagnostics the Head at he Novartis, division, extensive until Vaccines business career GlaxoSmithKline. divested spent professional the life brings to he his industry. was recognition First, years

the M&A of year was and transaction. helped through that it a billion division, business to managed a Andrin $X it he head While grow

a Gates and After also of passionate about sector, in GSK, As patients in is Bill general. pandemic for of Swiss roles year, non-profit to expertise spread medical years. his Novartis working in this out time helping began he government, COVID-XX worked When health and broke the the help communities, the early he spent combat the with leveraging where improving Melinda at Andrin at the & doctor, our four the Andrin Foundation his almost vaccines coronavirus. the

life. board and in knowledge maintaining We are from and we'll tremendous climbing industry. everything non-profit extremely personal it also for-profit CEO, photography, Andrin managerial brings whether Oswald. stakeholders cultures, bring capturing in he the his widespread extensive across when traveling both his of patients on let around the over help establishing our me sector, hand experience world, drive Andrin the that, or passion someone pleased industry, the call does, such to or with via and to to is different mountain to benefit the with With his relationships new

Andrin Oswald

Centogene represent meet for to Richard, a the everyone. for and Its Thank kind you, hello, time. today the pleasure and to you first introduction, also

Centogene. why the for helping the improve I excellence rare the power people, strive are professionalism. around to Let wonderful lives highest all from a strive often me and build the and the and I level devastating. company. a have This Centogene Professor who Since of and in started, work diverse patients by everyone sincere of met dedicated many of of for the thanking unwavering passion who suffer people, Rolfs, at to capable rare, also have belief innovation, but They start for recognizing the done to such they diseases, world Arndt I is off group here joined meet an

I Today, earning our through Slide during X. you through first QX will of Now, you let year. operational us the walk Please walk results. performance our to turn

segment, the of update Pharma will of core In addition Diagnostics COVID-XX then for financials segment of provide and through provide meaning the year. how months. in our the and take the an business, will testing we you on we update will an be I Afterwards, Richard activities see progress Q&A. recent the to on our rest open

please to turn Let's Slide X.

Let more for in the by from over grew first We very XX% revenue than nine for the the company. messages This months the QX last for highlight truly XXX% record a perspective. period a me impressive, and first compared XXXX by is today. XXXX. key a Revenue quarter revenue had to grew versus year. strong same

has a top-line testing. by our levels. strong pre-pandemic revenue source business to recovered as of core driven the not growth critical COVID-XX yet Our been was This for fully additional company, has

you We on is slides, encouraging, which discussions made I that key the core bottom-out progress demonstrate both progress in and our in the core also have have recovering our summer. number quite quarter foundation QX also metrics business. by since would upcoming through of to will for you operating the strong since like walk some active update on In the We re-centering last the the we the our the Particularly in segments. made Pharma partnership business. focus been has prospects

revenue enable in you testing to EURXXX further investments to inform contributions financial will anticipate are space. over our Furthermore, rare we us that we the positive be strategic make our million. year disease First, to happy the solidify COVID-XX from to full position

achieve for help momentum potential. allow the growth to us the important pandemic return business, these Centogene's were to and build as investments to future, long-term before our will core we experiencing in and continue us We global

now revenues within Pharma us segment, counter EURXX.X XX% with decrease testing, and which for from X. increase business pandemic increased accounted Diagnostics return XXXX, EURXX.X of million. COVID-XX approximately That revenues compared [ph] XX%, Slide impact. so In more XXX% Let's was to million. Please to enabled our in XXXX, COVID-XX by the This QX detail. these QX the our segment the core driven resulting discuss points to

our be recovering. speaks our to come driven COVID-XX still for of the know last these of difference dedication months. turn to quarter. is core behind this has Centogene, of want the testing the for I the at While the enabled X. resilience without Please and Slide and the the to this did to I growth efforts employees sacrifice revenue up to make than to acknowledge the and worst This during impressive ability more pandemic business opportunity nimble. take appears organization tremendous us not here and be us, for their everyone several has to

focus our first Pharma on me Let segment.

course that including alone. [indiscernible] partnerships flat collaborations, that, number first also we that I'm period. The -- number through last remained which compared in this We had over months XX of saying during is year, XXXX of the metric concluded Pharma ago. of to same signed partnerships the saying the several

While number partnerships the number resulted remaining the The increased generally grow, year of first we has flat. the to of half partnerships the XX. areas slow total of have have new during progress in by seen in X disease discussions partnerships active we where

a the is number Biomarker our partnerships and data in potential We make to to the is expand them. medical X of us slow speak this translate remained Diagnostics the of the is part Slide we business, into disease for will to metric made our reflect is Please it believe, seek growth smaller representing to in working of certainly pool extremely open help valuable into that on turn, also our flat, our the progress continue on by into we will segment partners. [ph], will turn as grow year. segment. want data as outcome from this we partners with sure grow areas areas. year to and a critical moving than period, we're year. then We we up, focusing half that transforming medical of I Diagnostics we first of disease next access prior the Pharma insights, metric While insights. on This important new to be improve The us enables into where

able left, we the growth, can commitment XX the and to have the our world. to around you underlines to a our of to This able from that been database patients quarters. despite repository is pandemic, reflection This growth the demonstrate of previous we close patients COVID-XX on helping steadfast XXX,XXX to have the As rate were added stay the we continued our our in see last months. in chart

order On compared order in the right during the the XXXX. sample period hand nine-month reduction intakes period We of side, and XXXX of this number we year's to XXXX. XX% report a volume observed during

divert like see, the to not volume to testing ability COVID-XX capacity and the representation decline of is While of respond. the ability to a company's the we agility what would is

COVID-XX now Please testing. Let's X. at turn our to look Slide

for travel. accounts significantly timely grew in volume, providing monthly volume in accurate playing total a side testing in communities of and COVID-XX crucial particularly September, need still our and the Airport our volume testing As hand is airport we majority surrounding reported is in those to and testing locations. QX, This to of left depicted the slide. role on the growth who testing

Berlin locations, center our continued testing airport. to including expand test newly the have the Brandenburg We at opened

we XX. offering. provide to that to addition testing rapid option travelers meets select with sites, Slide ability service our In best The of turn antigen the also needs. expansion have to PCR their the antigen now service and to complement Please to testing provides testing added the the

with business As outlook. me I the you conclude the let business performance section, provide latest

picked have since June, never As our I been partnership before, discussions development and has up team mentioned Pharma business busier.

We so this HX far. have deals year XX new signed of in

to our XXXX will for in the return to XXXX this previous financials, growth solid beyond. Pharma a not sets segment its and meaningfully foundation trajectory While and affect it

Diagnostics levels. returned has Turning our to approximately segment, of XX% testing volume pre-pandemic to

to and recovered, in the the recent markets. restrictions fully despite other volume of we steady yet surge critical has and COVID-XX not higher see cases numbers happy and Europe are lockdown While

to are in necessary infrastructure. we science, from current future contribution situation, and making Given to invest as also us to community commercial demand. in serve well strategic as meet the Financial by the continuing investments allowing lab that need demand, COVID-XX testing meeting we current both organization, capacity are but our the our

to enable pandemic. we this testing COVID-XX our services the to provide overcome For business, are well-positioned to world

While encouraging to vaccine the had some know the vaccine we be front, it available. on we time news take for had will widely recently

Beyond to that, testing with locations in for settings. enough different be what required need. offer capabilities, necessary COVID-XX and uncertainties, in and while flexibility it our us of long communities these provide uncertain will testing is remain testing platforms types Recognizing how

committed we want to XXXX, on this is is as our testing of move company. COVID-XX business the as segments, that core to focus the future providing emphasize While we into I long-term are the the

and through Let the it hand financials. back to to over Richard, to stop Richard here, you. walk me you

Richard Stoffelen

Andrin. Thank you,

turn please to XX. Now Slide

revenues, revenues which same is XXX% compared XXXX. in impressive presentation, earlier an year. by largely not the mentioned Andrin testing This in did As the to driven by the in grew QX our exist COVID-XX XXXX prior the period

are As pre-pandemic core to mentioned, to business yet the segments recover levels.

decreased segment point Diagnostics as period new robust compared same the While exhibit this partnership segment, not towards Pharma year, QX, did leading active go 'XX. deals, recovery discussions, compared last it revenue to this while translate for into activity XXXX. into did quarter, a we the In to to growth

we for as pandemic we did will recover will both the believe resources in translated to decrease business long-term in slowdown testing mentioned, continue Centogene's grow a allow segments. adjusted segments us before COVID-XX into the EBITDA and achieve the segments As from and to potential. core core The revenues financial those

deals new quarter. to a in adjusted translate into will segment As Pharma 'XX, leading margin revenue mentioned, EBITDA in decrease only in this the

and elements compared growth at while QX meant we compared current we EBITDA to do revenue so, showed QX, testing healthy to continue to segment cost shows offer adjusted adjusted EBITDA a volumes COVID-XX Diagnostics our declined to expect margins and fixed margin, it the XXXX. remain services also levels. testing While

XXXX feel Now, a nine of months XX. let's comprehensive for to look the the at first Please more year full XXXX. of turn performance to Slide get

the see EURXX.X can on last revenues we nine recorded you XX% As to year. the growth million compared in first graph during left, in XXXX, the exhibiting months of the period same

more last this than declined has growth. decline, and overall While to offset has compared the COVID-XX year, testing business driven core

a business, exhibited 'XX. trends same same core margin I we look year. Looking reflect at the compared well forward further period to previous slides. to We positioned segments the the do on These results are in so lower the adjusted EBITDA, the believe and both discussed to recovery core last in

the in on, let's look more on revenue Before at Slide detail breakdown XX. we move

it growth quarter, we future and side, revenue indicator of breakdown contracts, comes in that Pharma Pharma as from each the a the the provide good new On typically a segment. existing is for

signing the is. be that where As Typically, the me you partner a Pharma discussions means, from new we recognized. this revenues can months contract to the stalled. that collaboration Therefore, and existing see, up QX. believe from saw and segment running. environment there all contracts revenues result for few our partnership in with in came between getting why are reflects contracts we And QX, explain time for let This takes Pharma it challenging the

graph excluding NIPT, our earlier, diagnostic We I core testing, in return that segment decreased The Pharma the that and in reflective segment of of we to recovery the for a robust in page. demonstrated we the is in decrease the the XXXX. mentioned for middle revenue As the Revenue sample believe QX, is discussed are to earlier. compared well-positioned believe decrease volumes Diagnostics breakdown in growth 'XX.

been the slide, to right we the the our testing. growth COVID-XX that have achieve of able with see On side you revenue

the testing quickly, ability to environment. ramp expertise to We and adapt challenging to are a to pleased speaks our to organization's have up it used so

now period. of us discussing financial finish key other this Let elements

financial we approximately already and of increase That an compared quarter revenue Looking revenue, QX million have million and in in last approximately nine-month to EURX.X mentioned the an in increase the for both increase profit the period. statement, 'XX our of EURX.X increase year, at drove third in year-to-date. in gross

approximately by the there quarter million of result increased the third expenses a increase XXXX, compared small operating QX date. our to for EURX.X As negative to was

factors on Let two the driving biggest increase. comment me such

as the Firstly, company. for biomarkers, which efforts EURX.X of for as our continued our long-term admin were is General R&D improving by executing strategy expenses and in to EURX.X commitment technology by expenses our million, platforms, increased the our well databases reflective quarter million. up continued

costs being a D&O were as mentioned as these company, quarter, public primarily result As last a of such insurance.

to expansions. from including and test revenues costs keep our QX employees we beyond in test continuing offset company COVID-XX such In continued as help operational, addition, some of incurred because site related as to our costs increases. efforts, upfront to testing COVID-XX well will The internally testing the cost

XX. Slide to turn please Now,

was flow earlier a that Cash included of our purchase increased to event. the cash and in business activities at Let's was which million last response This activities you a would in same compared cash to lower last flow the year. from the to pandemic received year, COVID-XX the due EURXX I the look our sale remind period flows core one-time from in closer inventories operating have like of balance nearly to headquarters from in cash investing revenues Rostock the used and year. sheet.

in repayments flow that to mostly which offering the sale, cash our increased assets. flow equipment investing and from Excluding period financing significantly, in lower the in compared activities and from activities by Cash follow-on increased of used EURX.X proceeds million, largely same was driven by net last laboratory received by intangible equity July, year. investments driven loans

cash XXXX, XX, we EURXX.X and As million of cash of September have equivalents.

will COVID-XX debt, Regarding Slide to of drive XX. revenues for that testing EURXX includes are meet there our progress. outstanding to to recognize IFRS that, like around Having particularly market XX. how are you million unfolds. continue our top-line the society's Please time I than of said to situation more on remind lease environment would how news this with in well-positioned recent the this with vaccine evolve, uncertainties We accordance demand liability, believe, turn I value being. we regardless will that

from core business seen our have a recovery QX drop. its make steady We

both cases the steady levels, pre-pandemic the and still are despite to segments we around surge recent world. in recovering COVID-XX While are restrictions holding lockdown

a have will these to lockdown excess full our well-positioned turn back it of Although, further the and Such and result into anticipate of we be EURXXX good one business effect representation would secure this in be core difficult will resilience our how been it in pandemic foresee financial is unique able we be to adapt year Andrin. Germany. announcements, including a that, I that to revenue demonstrate Centogene, to With million. this learned of XXXX together, operate in move we the growth effectively in to situation, to have as societies this 'XX. Putting drive factors resources to more the week's environment,

Andrin Oswald

right. All

today's as XX, summarize now conversation. to Let's Slide to go

testing where precise demonstrated we needed. COVID-XX our of it is our has Firstly, can expertise providing diagnosis medical leverage offering how

necessary. building the we to us the that agile us We COVID-XX that strong that so We expertise do business is core thing be expertise however, as should continue in One the is not the help we same will lose of that allowed as have. to will sight forget, foundation long quickly grow our shouldn't also that business.

is, now time point it's back to our second to the business. The core bring that focus

core opportunity we and We our core option. our reliable the have focus While the testing down the testing did to communities lost support time slowed of we some sight COVID-XX now build bring to we to as business divert with it's long-term up to vision, business resources our never back recognize to that a saw business.

business stable levels, pre-pandemic core fundamentals our has While returned to and not yet encouraging. its fully underlying are

Next we partnerships this see are in to number partnership HX a times good compared already that An of we momentum. will when signed of XX additional Pharma the year. also even new have indicator of impact year, pre-pandemic record that discussions,

Lastly, us ahead. let look

it capabilities history. challenges, significant for Centogene. if the real on you you you. a safe the call With wish this our would that In be families questions will holiday answers uncertainty for has that we I a to period, CEO the an the thoughts challenging which I'm biomarker engage of for would upcoming in development, to achievement challenging will the a of confident forward growth long-term that board, Centogene beginning, As team financial as full for solutions. be the benefit added hand our in year. can very year coming at the further amplify do leaves the not we continue This said, strength competencies you we investors, of and research the over patients the with the joining And a of I first today, no also healthy doubt. year I and accelerate time to us three with our the many year able your Centogene's and rare new a and anticipate of the on request operator revenue to achieving Pairing prospects. entire maximum impact I global accelerating our to ask be forward with welcome By I'm We such on full time dedicated next accelerate achievement, in resources can possible. to and look of will have we in company's future thank of I further what to remind such getting and have recently continue assets feedback. the that this awaiting triple-digit company. core the I we of efforts look hopeful only our of resources made pandemic medical enough the for the now Q&A portion at a financial and can team XXXX, period. for proud address we demonstrated meeting anticipated. where like and greater as call. kindly can will Sun's to disease Thank as community. we had investing you, to brings that, me so to business everyone many for them turn learn

Operator

of the SVB comes from question [Operator from Puneet your Leerink. Instructions] question. Souda ask And your Please line first

Puneet Souda

hi, Yes, thanks.

glad welcome First to board. of Andrin, you have on really all,

the and cover question, both I if could on first you So, guide. Rich, with

sure say Pharma the understand for phenomenon, a wanted on year at XXXX made the the while well? based stable? is in I volumes fair that up -- be and remains in in you're that expected given character growth full then now. what first continues it EURXXX to step I'm guide Looking Pharma, on to to seeing is characterizing the marketplace And fourth COVID and quarter you right the largely a and comments quarter, over to essentially make the ASP just million

Andrin Oswald

hand that the Yes, and to for one thanks. Richard. question I'd over Thanks

Richard Stoffelen

for Puneet you very specific. Thank allowing to me a be bit little Andrin. asking much, and Thank you, more

in expect as carefully adequately. listened revenues only to pick Pharma like You quarter, expect happy with as created we very signed, revenues up the and we very earlier we're had base when Pharma the of to the and of fourth Indeed, COVID contract presented further new well alluded partners, number contracts the QX. 'XX, to expand the we the the with whereas as with in we really spin already enormous

Puneet Souda

the diseases are? providing -- third just remind to And, Is the are metric of you a provided where I quarter? -- you in clarify the the collaborations in the terms that Pharma number you that on on want Pharma know still I partners. partners Can of you us and have.

Andrin Oswald

that, to particularly. respond please you would Sun,

Sun Kim

metric, metrics Pharma that X. on The listed is we Yes. operating Slide provide

have state of we total and quarter terms as and during as new QX of the same is partnership diseases XX. Pharma partnerships, as why number of collaboration at of well same this that's And partnership biomarkers the In number seven figures. of that Pharma will the end under I collaboration stays signed the collaborations while number of of a number QX, ended, of

Puneet Souda

the extensive seen what looking Okay, now, Andrin, at knowing Germany expect testing we in have even that. vaccines, before? could right With expectations airports? come your Germany by own that thanks volumes in testing do efficacy with And on or expected vaccines the the the maybe so and next could the COVID second for in, data that how significant are moderation you things experience expansion COVID happen in for progressing your elaborate are to and then, you year, quarter here and -- far

Andrin Oswald

Good question.

and contained, clearly response avoid surely imagine be little rates bit be of I over testing at broader think the for to these less spread, restrictions will to then any vaccine of expect that? also, what airplane I in government's somewhere level where You hope course, summer, enough the think pandemic, regard who there old would mean, could vaccines a go else. would this the I could the -- that German that widespread the part vaccinated. Of that people period government completely I but if an travel becomes many hopefully, that is significant wants don't but any to with ease, to the of back up hence be it have go uncertainty levels crystal And level on when not be keep place, will could -- time, that would second Germany, in vaccination at you least I at populations testing action be what's example, want took mean, short. time, how quarter, be sort how they that's actually here, the Eventually, for to then the doing a vaccination are may the in other by vaccines we not would it virus question the at on the when to volume, certain biggest level make meaningful that government is I need I think, to governments come at that's you testing think tested, the to for I then. the QX be starts that And any expect you volumes into of in response. think where and the would -- dramatically. contain Europe, can ball where we impact expect,

certificate enough. explicit that, may others strict pretty are on vaccination and You a and certain that is airlines say, know

flexible. know I which early way from more a think, this will think, So, to remaining is exactly too just go. perspective, are important, business that we it's I And

really the perspective, long it sense, outcome. So, setting reduce able I we but to as that be or least, so remain that makes eventually to also at be us when our the offering the operation think, volume at from situation look an are up commercial benefit, flexible as to you allows potentially adjust

Puneet Souda

helpful. areas see Thank on. disorders Okay, squeeze areas other think could interested Centogene, obviously the where of here have Andrin, I very could been what metabolic that business core are for I last mean, looking -- accelerate. at? in wanted in interest wondering, strong but you And that's disease one for if to are you really some other you. a

Andrin Oswald

months, I I fascinated two three think would have. that we have you footprint. bear will course, of similar have privilege new just first adds I the gives patient the two questions, and a biobank I scientific that mean, answers with there ideas regard. insights. to I after a think sorry started. I in that be for of amount vast which a I the limited -- mean, probably weeks, I CEO, fantastic may -- the that list company exists coming additional And by Yes. here, with global is and to mean, huge that and as say, the have been little little have at geographically, bit. a And fresh team that and and things mean, a questions I've in the you of think with things, days have I a compared Discussions now, all, I long I have data that, that reasonable ask some me with doubt timeline, look we'll impressed have above am to some other, companies let's that say, the I in

And ideas so, my to the offerings how key mean, in how we really long-term? maximize can we course, we develop short-term mind, I question and do And clearly is the can of going tools value, doubt, sure make right the And few I that after how a mean, I little forward. that, accelerate on months, patients, but have have with impact also will three work I create that that financially? do and we for

can just thoughts me, with I months, hopefully, maybe can of get meet it's next also couple bear we can So, and that. on the it and discuss further, in virtually, we your

Puneet Souda

you. Okay, great. Thank

Operator

question. comes your next Nam Your the from Sung of ask line question BTIG. Ji Please from

Sung Ji Nam

new taking Hi, your Andrin questions, the to role. on thanks for congrats and

recognize do there So, couple and guess, testing Puneet's longer-term, Andrin, have COVID do other will of vaccines a one the vaccines a are for the to continue to declining be kind the that of on -- sense you for and and on volumes will regarding kind been the years? of back baseline questions have testing of I you airports COVID durability but going a as testing after at questions there -- -- Pharma. I think be deployed, of even deployed these broadly next few sites, of

Andrin Oswald

Yes.

by I not that sorry, right? there I into one, whether potential mean, -- could is this are, mean, I don't vaccine scenarios can You the that whether go mean -- can know on you wonder of the the has the I possible, think wondering really answer. the virus. you So course, to vaccine, which mutate,

wonder globe, is can around the the You to situation evolve. going how geographically,

experts still not stay, widespread disappear here even believe be with virus this to I most is completely. and will that going think, to vaccination,

will So, can needed testing, absolutely you even long-term. be for some the argue,

Now, going in going it's diseases. looking it what the the then, I is And a at company have way where this also the forward. definitely value, sense going whatever a core I forward. as think that is who would is of this then to provide best the question company happen? to from And going such solution? the and company initially which said, go, the view yes, point strategic And, ensure could on, rare to we from be long-term clearly the best what we're of to provides focus response is That mentioned, of

are to or our of not where are all. at the to this ignoring of regards run. We COVID-XX compromise But a for going long clarity company building success we are go, make not resources the go the not just on with and going letting

Sung Ji Nam

Great, that makes sense.

antigen-based in testing, I also COVID on your for does a centralized testing I like antigen curious rationale one recognize part antigen rolled look what the so the core for economics of margins? Just it's question more business. And the in about you of Centogene centralized for fashion? testing But guys terms of guess, not testing. out testing,

Andrin Oswald

somewhat impact massive Yes, have two PCR it just one I'm think a differences as to it for over we of do choose, as governments foreseeable the or or look of I they travel antigen right, our after anticipate an that Richard that and which antigen, two stick which to accuracy doubt choice, that is, bottom just should on are, on in the just Whether may we the PCR tests. depending really course, care and want happy service decide offering don't level really of we that PCR not me. to that they will versus the line, obvious gives get One because so testing two reliable, will go. hand I the PCR antigen you way go to more points. a of a is to future. at

course, of can hand, other faster. the On antigen be

of results, board of if sense allow course, So, get you from airport and that to point time let's could, view. that of an it's for you more a say, an tested, makes afterwards. airplane have that location you your certain there, would convenient go And within period

also somewhere that's know may think, I as you further. there on with then, more challenging horizon, better time are PCR. be PCR so PCR But tests the may short

to because really what we and of our we think, such pretty consumers with offer building can regards prefer, can advice at offering are what we governments that I pricing want to up both have be relaxed add Richard, this or with as it, -- will for us. do look anything regards business you you there? come call would financial similar, a levels how

Richard Stoffelen

is antigen Sung by quite think, I testing that you provide to well. Andrin, ji. similar, margins to want We the required just speed is The of some, essence and No, the and that market. captured it are therefore,

Sung Ji Nam

pre-pandemic. then your you partnerships. on just had from me, And great. pipeline lastly Obviously, Pharma That's rich pretty of field a guys prospects

see discussions, right, delay, productive if composition of just curious due a pandemic? to I'm the of look materializing before the in the to So, kind terms you're -- kind just is partnerships this or curious, changed? as that just -- very of kind you of out to as has of pipeline had and you starting pandemic

Andrin Oswald

Sun, want that? to do you take

Sun Kim

questions, the a Ji. for Thanks been Sure. Sung There has certainly delay.

I within to think, year has what a of also on the where to, XXXX. there QX, dedicate was they're to going out but in part, especially particular, of to trying do, been there in a our block their their prioritization in going they're resources figure partners

going what had, up active As our until to near-term to really of there are, sort where the in have the companies and the effect much been impact they're come discussions we from referred of during we -- much of I and think has resources, materially sort in -- discussions. prioritize as financial that the of the conversation really Richard their presentation, XXXX. to out delay summer, won't from to the But, addition figured their plans quite there financial conversation these picked

Andrin Oswald

Just, strategic if I, a which partnerships. important partnerships, really maybe, also that, that add one we extent at them as a is Pharma thought to in my large our look mind,

we company solutions a we testament ability short-term keep create the that our to to stay off it's didn't And, that we testament, they're want its COVID-XX the revenues. long-term, on to sell of where I a revenues just value to to into the to which during think, by somehow have supposed think, be. our again, do and -- company don't go deals of or focused I

we you look I and not time kind over of want justified couple what to with of these revenues not think sure, know-how value. can So, at up we're in, next database spend be that we set think, do we just such is have, them some come. definitely the And that make we a when generate couple quarters, the is and to to deals, they we that the long-term going over that we that's that creating tremendous would how of that, given build can years think we what and because months,

Sung Ji Nam

much so the questions. for you thank Great, taking

Operator

go of ahead. Baird. Please line question Your the next comes Schulte from Catherine from

Catherine Schulte

vaccine over to over distributed And of look mentioned couple next pre-pandemic like to back those welcome there for the What you maybe quarters? Andrin. of takes get XX% widely a do Thanks do are sample guess, Hi, the and trends everyone. the I questions, volumes you to you it to pre-COVID first, back levels? think will levels. think

Andrin Oswald

certain other the trials One, answer in or right? not I Clinical and patients certain to because In doing areas. Yes, prioritize you are studies is to are good and hence In it that's here, and some to ability difficult travel of a less also because lockdowns by just quite that multitude execute, to certain doctors the have areas of operations. think question. areas, testing things of are going need a hospital. some are happening it's slowed just down

normal. be first mean, -- depends will I I half and I a back So of will looking that pandemic translate personally, the play into previously, things the the of QX, second good. It really will could year. the and said confidence things will get normalization get we business, believe bit out then I do QX year, on is, testing which have what on half we I think, the to pretty in step-by-step how be challenging, rapidly in think will and better, the

XXXX, definitely But that's to. by next overall, is quarter then we not you get marketplace I quarter, And better. clearly that So, going year to are healthy clear. expect it a normal normal think, a to should were we be year, back used would

Catherine Schulte

we And Okay, should signed from can PTC, makes Alnylam about how XX head on sense. these And partnerships into the new that anything potential half that and for we back you in the think as revenue comment you XXXX? specifically.

Andrin Oswald

the PTC question the the Alnylam Sorry, could about repeat and Sun? partnership. you Catherine,

Catherine Schulte

on potential specific we into 'XX? you asking for can just any was PTC? think and new as head we are partnerships, I these how comments if about Yes, there make Alnylam And should revenue XX

Sun Kim

or --our disease Unfortunately, AADC development that understand that partnerships our what being statements. deficiencies both will I details forward-looking rare with patients better cannot patients. PTC forward, Yes. financial able to the the prevalence partner program provide partnerships, going are of to the work will with interesting is and help But particularly partners partnership in on our quite their helping say Right. I partnership,

I think, that would be great.

the to we patients, partnership power also, the the with I and really this, the it validate our being able biomarkers can help ATTR certainly our going being But our --just think pharmaceutical to have patients validate have biomarkers will that validate with able I value and Alnylam our will monitor on patients, prospectively -- provide will to develop think, in forward. partners.

questions. think, -- just hope carry partnerships So, than are both the answers more I I your the financial. long-term that impact

Catherine Schulte

new conversations Okay, in of signing how third great. partners, we [indiscernible] forward? the And of levels clearly, you going strong these about think should of pace given have quarter. and you're And fourth on just the still, level going having the new really partnerships

Andrin Oswald

Sun?

Sun Kim

Maybe, yes, I response. continue on can the

from second think, of new normally XX certainly up. out year, the cycle half picked have this and the our starts But and I as of -- within and quarter normally active generally, we've discussions second in signed pointed the the of we've partnerships, year normally, conversations, when of initial is the the year, partnership beginning our we sort our having really up new pick year. start signing to

and deals will when seeing throughout we if as Pharma the planning finalizing So, think I year being that the their subsides new the would globe, that really the start -- assume available I to initial lot we point year -- well would with quarter pandemic the cycle, to coming start starting up of year for would these are vaccines of fruition. look our starting conversations, and our as this the be budget more the follow partners the actually and and a and second

Catherine Schulte

Thank you. great. right, All

Operator

ask Your next question question. comes from Alex Please your the Kempen. line from of [ph]

Unidentified Analyst

questions. thanks for And in my Hi.

the HX? a you of and are kind offering, as add you're add world COVID business. then COVID, on post-vaccination the in antibody transition core couple to especially me to Let looking With to on just respect a testing

Andrin Oswald

answer to happy I'm Yes, that.

I been that think, have discussing. its question we a

at is test do we remain, are decision We We add on yet no is be or but think it it, complementary will critical looking likely the not focus we the thing business, it but whether most for there have, would may not. to that the on.

Unidentified Analyst

follow-up then that. And it. as Got a to

of year. that, in there any for kind and sort business this to valorize build over offer opportunities perhaps selling capabilities the COVID testing So, post-COVID, technology appreciating of to of Are or the the learnt? see on terms -- you and knowledge leveraging capability the to

Andrin Oswald

mean, to Yes, the further focus that this months. increase coming well, I right we in is and may I our that's said, as demand And ensure our is high. focus think, now, not runs effectively. it business really

priority we So, point I could is up I can deliver set all now think, against that's have time. that what key make I the say we sure to at really this in do. And think

Unidentified Analyst

as to All sort one would keep collaborations you key Pharma on there specific XXXX an highlight like in wants, right. more -- any Are of sorry. eye XXXX, Then to maybe exciting.

Andrin Oswald

but you I it. answer still you the may know what may guess Sun, still is, I answer --

Sun Kim

new our eyes Parkinson's along I at and you're the of certainty on both in of prevalence that understanding show emphasize partnership, be I would able of question a and the --prior Sure, disease PTC, also with Alnylam the looking strength think, sure. the up and more our that of better if No, Thank are, power my these development mutation among key our biomarker, key that partnership partnership Pfizer's to think, Denali's LRRKX state, our the you broader on. the mean, the I being I are question well they came our terms keep Those you. as partnership. disease. of clinical aware, partnerships, Takeda, good picture, co-collaboration But may R&D demonstrates

Unidentified Analyst

Thank you.

Operator

Wright question of next Erin Please comes line Credit from your ask from Your question. the Suisse.

Erin Wright

can there infrastructure is you to of do is terms of of you also the of [indiscernible]? Great, will Can way the there thanks. anywhere the COVID be capacity that kind related now? capacity to in kind most kind And of be to COVID cost -- you or speak think COVID-related some your able overall from in here initiatives? testing incremental repurposed not And still

Andrin Oswald

Richard, want that? to you take

Richard Stoffelen

regular basis. happy that a on Yes, take happy, we that It's question. good a to ourselves very question, Aaron, brace

to at still are It's best how we this that not. repurpose, we make early might, might We stage. contemplating too to decision

in but contemplated So, we made decision has respect basis, a on been no regular that yes, yet.

Erin Wright

you And Okay. out break the you revenue [indiscernible] other category could and out did by testing categories? break volume

Andrin Oswald

referring COVID or Within within What are categories the you to? segment?

Erin Wright

the Yes, outside COVID, quarter. of in COVID, of Outside

Andrin Oswald

Yes, there MD&A, drops, in further some Erin. will find the is, you

Erin Wright

you welcome, anticipate And next? kind and you right, anticipate share sort bringing then what's if this one excited kind at juncture, of a and of that of thanks. sort board? Okay, in the on change Andrin, to transition, any curious and here CEO But any obviously, on would any all I'm vision changes from or management of other Thanks. strategic perspective also lastly,

Andrin Oswald

in to the It disease its will XXX lot think, to I how somehow by real shape be as and future And personally give there fact that. to with a there, would mean, coming growth knowledge the look. people, now. into and take the for mean, strategy that database, space the fresh -- they and company what people one next the you, but the believe that course, really And and me, and Bare do said including, get a discovery, hopefully know-how X,XXX, better I I'm to is I space. I -- in of before. a what from also have will new to also days has evolution. would and organization rare of have from you that of up rare the excited better driven a I leverage exactly be I CENTOGENE may for XXX I tremendous to went thanks capabilities and I'll cycle say XX how in go need the is with Yes, and thoughts. show. X,XXX that I'm repeat two the disease chance an think to talk capture not whatever that, many one just I global to markets. earlier intrigued because not tremendous of and XXX CEO we or I next cycle or value mean, a not by usual my is just diagnostic could joined it potential the and organization that growth of then true that or that to diagnostic, R&D I come of same would and

that the look having against that that we we in what get think the to we -- place need also are with and at have will the able organization, and definitely on -- the ourselves. make we a So, organization and sure team be deliver to through strategy to set

now from some I on well. can expect you So, that quarter in think, thoughts as a

Erin Wright

Thank all much. so Okay, right. you

Operator

questions are further There ahead. time. go at Please this no

Andrin Oswald

All right.

wanted to the brings or call. you the end I of So, add us something I think can Sun, that conclude. Robert, to

Richard Stoffelen

conclude. to free feel Please

Sun Kim

Please go ahead.

Andrin Oswald

the Thanks for and thanks thank best available. me for you, for for making time personally. all the So, your the company, wishes interest in

possible of here, dedicated we sure, the again have against as met, have support And as fully each CENTOGENE I'm physically, meet I for results many but will, hear to full I we team the will to high year us soon the think ensure what then as patients, expectations I I present virtually. us, and to and forward while couple the investors year. are We in looking next hopefully well months, that if that on that as done deliver other next for for and also And time not the doing grateful you come. am in to are speak

during you you. safe So, god with times, turbulent Bye. bless wishing said, these healthy holidays, that happy stay and and and

Richard Stoffelen

you. Thank

Operator

That you. today. Thank concludes for Thank conference our for participating. you

disconnect. You may all

Centogene (CNTGF) 16 Dec 202020 Q3 Earnings call transcript