RNLX - Earnings call transcript Q3 2021

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Operator

Good day and thank you for standing by. Welcome to the Renalytix AI Third Quarter Fiscal 2021 Financial Results Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] I would now like to hand the conference over to our speaker today, Carrie Mendivil. Please go ahead.

Carrie Mendivil

you. Thank

from McLain, McCullough, Chief President, today Executive and Financial are Tom Officer; and Renalytix me Co-Founder James Chief Officer. Joining James Sterling,

limitation, that performance statements of or during could begin, will meaning and place policy for life future forward-looking call of predictions we results statements. impact I to business, business that Litigation patient like statements statements of decisions, and are trends on statements or the risks forward-looking expectations on remind materially Before Reform our involve strategies results you made or product Securities these these Act this would improve statements within statements. make to to relate Any call COVID-XX hiring, include, clinical material instead ability this growth. events, statements. you without uncertainties related change, submissions the and KidneyIntelX’s care, these These market studies reliance of statements our from not Private at collaborations, anticipated costs, expectations of sensitive should by that or XXXX. include to lower management of our Examples strategic cause future of healthcare long-term and of development, quality partnerships Accordingly, events potential forward-looking regulatory reimbursement and implied government actual undue differ benefits those that and during

conference based Renalytix October various current on disclaims associated filed XX, live today, on the to management’s or statements obligation, statements, turn This uncertainties XXXX. because Factors refer James. risks and except with of June of events and for the And and the with For AI only estimates call assumptions. on whether new forward-looking and Securities call projections this or will forward-looking All Exchange law any broadcast with that, or as any information, otherwise. over contains section Form-XXF business, is description intention update Report are made accurate call time-sensitive as I future our Risk on or a of XXXX. to to revise information the Annual by required Commission XX, the please

James McCullough

regulation, and third as you, fiscal for good enable Utah real all get partnership have program, key world months, XXXX the we more The afternoon additional results and Good quarter morning, for the to KidneyIntelX we KidneyIntelX. update the evidence reimbursement, past on access Health progress. X,XXX the lead you and joining announced System than cross clinicians our Southwest. of thank continues in opportunity shareholders and University the Renalytix Thank materialize to distribution few our major integrated Carrie. milestones to for and In business with our for EHR

provide Health can KidneyIntelX the announced Forest Atrium for a and XX Health, teams X,XXX Wake with have Baptist that in We access locations hospitals southeast. in than care more partnership care

demonstrating performance also the received a government risk. in Administration published Veterans X,XXX Type peer-reviewed the for of X in important testing U.S. have cohort U.S. KidneyIntelX which U.S. Administration. disease General patients data We kidney services, to departments, with XXX from applies KidneyIntelX more early than including XX-year We stage contract diabetes the Services

largest June we one contracted completed XX threshold state’s of progress with now We for for coverage, companies, have have insurance determination states by state members. million not-for-profit coverage including the New XX% programs, over private crossed X.X insurance York Medicaid the and with with continued KidneyIntelX

this XXXX milestone testing at real Medicare world beginning a KidneyIntelX acceleration to coverage volumes. potential in the We our beginning an into July, half determination, clearance, evidence data, primary system, expect health major continue partnership first the of pace announcements, of additional potential fiscal FDA events including system medical the important increasing operations national care and VA in all of particularly in the portfolio level,

KidneyIntelX COVID With On System, under health Cornerstone region X,XXX Drug Medical previously announced in and from will targeted progress Veterans Administration delay. device by regulatory partnerships and April remain by Food healthcare the ahead Forest breakthrough in and Tom General region progress, calendar sector-wide in of of our Administration confident a facilities recent on system basis the complimentary deadline, our the with partnership Administration and Wake our partnerships reinitiated Shortly, Health now the onboard review a Services operations X the System X and scaling we opportunity major the to provided to McLain final our XXXX. the submission plans their XX partnership potential with previous detail new following operations Atrium, reimbursement guidance of contract. has to for

outside team respond conclusion will to review FDA the questions any breakthrough diligently review. to remaining and regulatory Our advisors the of continue until

half While we no an in timing on of will calendar XXXX plans based the or assumption process outcome, our make internal are second can be complete guarantees year. on this we gearing FDA the that

under clearance from breakthrough designation MCIT. set Medicare KidneyIntelX scheduled immediate on as for for $XXX result previously, December at discussed have FDA this Coverage Medicare per MCIT is now Technology we of Innovative As implementation known device the also determination reportable up national an will XX year. for coverage final rule,

patients patients pricing Services result, covered population we year, the wholly Air per carries kidney our strategic accretive Veterans payment Department impact and as Army, population diabetic announced now a material and for branches, potential Health contract patients States, this This contract for the our Indefinite cover Administration of diabetic would coverage Defense or positive including diabetic As disease quantity and IDIQ discuss Indefinite unlimited United shortly. General Services. covers KidneyIntelX covered Force $XXX year clearance Medicare physician and add will for on Renalytix the the under providing and recently GSA this term. Medicare the was The and To business. an Tom testing Indian KidneyIntelX under over services of disease Navy, FDA kidney win testing. that for disease Medicare in GSA majority an Marines XX-year structured and with a the of is a in major can implications government-wide have a Advantage of kidney U.S. contract important Medicare government is reportable Quantity, significant for contract Delivery, Notably, Administration the a stated of contract contract care

Utah As view, of we From Atrium, accelerate hurdles and components Cornerstone pricing complement the our have with significant stated of Medicare Sinai, government-wide since inception, supporting the will our VA mirrors achieving growth, biggest insurance initiation to require business a which we network view us other as a national rollout sales, VA a in customer build-out provides KidneyIntelX model and perfect the channel of Hospital represents to disease de-risking our integrated one of and strategic education Forest. long-term our University to payment XXXX contract, select distribution a for Mount Wake Hospital service, systems. partnerships, of three reimbursement

service to calendar score liaison significant on-boarded end XXX and health the KidneyIntelX been now kidney care. care and continue expect physicians of of share this treating from physicians additional to system-wide facilities. nearby have support systems Mount their Sinai, All specialist to diabetic year have populations we with an ordering science we expand integrated personnel to XXXX, will sales on-boarded physicians and nephrology, XXX Hospital customer By have to have reporting. primary approximately disease At the medical VA and who EHR

exactly Mount approach mount, grow the is evidence launch designed is at with real doing testing from integrated will Sinai, KidneyIntelX revenue recognizing our and XXXX now would in year Mount this revenue COVID-related half model calendar the physicians with of Mount us Sinai are expect importantly, it continues XXXX. as are and restrictions care to when we world recede. the second more back The what Most We in thought invaluable on-boarded insights. Sinai partnership we this as providing

result, to doesn’t phase solid able a As both to move are maintain to we basis. population on health national what into an health what individual a kidney a as works now evidence and with launch and

to kidney as Utah, soon Our specialist belt. excuse the an announcement Forest kidney Sinai, generation provide teams, ability Atrium, nephrology diabetes supporting across Wake care, fully real and system, region optimizing care At major kidney KidneyIntelX last with a to primary a and care racial its published health and and growing the partnership us partnership opportunity VA advancement X,XXX Wake kidney locations. with the supports using slowing treatment evidence to care model beginning also care recently primary developed population office. and be data that the me of barriers. the maintaining University referred care model’s of physician’s to kidney that This Health protected Forest to of regimes in endocrinology, upon United program improving a generate peer-reviewed the anchor is the at patients for integrate with body core disease KidneyIntelX world month and role creates the the build evidence critical serving – demographics, Forest, the the changes. of and Wake Atrium, health disease evidence outcomes of lifestyle health medications, referrals of in deep a will be in States program powerful Southeast Atrium, will care presents Mount advancement will

the are we or EHR stated towards on goal secure the is KidneyIntelX is to footprint through for independent distribution care the portal those building online broader care have where integrated our as easily solution primary access and physician where integrated risk Ultimately, for able year through of a basis. as the assessment specialty and for support. an practices, implementations we physician to channel both remainder establish in any previously, United States unavailable KidneyIntelX this possible As our EHR is ordering KidneyIntelX

just the to early at-home XX allow disease open kidney signed their now Diagnostics patient that assessment broad receive We ExamOne, Quest stage kidney firmly maintaining believe epidemic agreement risk all and to KidneyIntelX have for population in will blood an an We assessment key access stemming to health. states. KidneyIntelX is draw which with any

and patient billable processing York New Salt both City laboratory now are we samples our facilities. City Lake in KidneyIntelX Finally,

this excess would we to processing in fiscal strategy. believe like detail XXXX. which City on Our through our should reimbursement President, year, over receive to call time turn the of McLain forecasted Tom? in any have and provide Lake of that, we will CLIA full commercial additional need at Salt certification to I With laboratory July Tom capacity

Tom McLain

payer requires coverage pathway, Thank education, successful a The and patient established you, test an KidneyIntelX care of clinician James. engagement. like risk launch assessment

been we foundation the James achieved rollout primary a XXXX has beginning, From strong are across focus the for our the in As U.S. of KidneyIntelX the testing milestones reimbursement. mentioned, on building have

in reimbursement disease patient Medicare number Administration; We three, number vast two, worked from Medicaid Veterans kidney multiple contracting the majority number one, cover Collectively, on Cornerstone regional alternative institutions. the those for Medicare; individuals on States. have costs pathways payment securing Advantage goal and through three three shots and are United the coverage. provide Those to with payers, institutions and with of private including healthcare chronic are:

become in So, with covered expect the With already starting Congress KidneyIntelX and leading developments our XX local have national pursuing we population of believe the our to following Medicare the beginning clinicians, around contractors more eligibility would the tested national determination implementation account planned should and with Medicare pleased pathway care multi-center with with patient and Again, located. With will utility MCIT-enabled determination industry that applaud we we published rallying health well to Advantage clearance laboratory pathway plans see effective XXXX. and through risk evidence become of If of Medicare as Utah, these Medicare, determination local the their medical during the effective progression population the world to primary and at KidneyIntelX. coverage FDA to XXXX. contribute These specialists determination XX% being will pathways. Medicare XXXX MCIT, because of coverage With coverage we bipartisan a than of traditional for were any to of population evidence both is year, regional coverage MCIT and we international where December local December, a interrogate the Potential expected coverage an and clarify are New a real are and for MCIT appropriate device. disease relevance does in facilities of not effective York MCIT appropriate XX% at in over studies under clarifications the of delay world coming eligibility. large the this to surrounding summer in for MCIT kidney both more MCIT pathway we clarifications exceed success the Medicare MCIT KidneyIntelX and in real beneficiaries the period. caucus as to regard efforts device becoming

first representing questions. an MCIT week implementation address the in in July, to rule update, In Medicare fact, annual its will specific publish opportunity

place as will MCIT final December XX. implementation expect announced on We take

programs. continued costs. leader follow. providers, Veterans in for in area under in will Administration government Advantage Medicaid to stage early payer government on as military has CKD system health test quantity payer our This novel systems structured of KidneyIntelX GSA disease or They lower KidneyIntelX Also discussed and And health led managed is like guidelines agreements easier updated VA the centers, their on guidelines. able CKD patient guidelines it Significant The models patients. being great of regional regional make other these to through metrics Delivery, focused standardized that Notably, testing. importance have of we system to other all that Securing improve offer adopt management. in XX-year the system and of the kidney adoption, in are bases, IDIQ performance these to physicians is healthcare Health opportunity updated coverage which strategic contract, been providing also were and kidney X Working assessment have our they an Quantity KidneyIntelX. contract, our agreements earlier, adoption care Medicare GSA care run Medicaid outcomes a the needs that Indefinite about disease. our for healthcare for Indefinite the payers key an VA, we creates diabetic with to defined risk serving assessment with programs as risk facilities, Moving an on Services million estimated recent care Renalytix part patient include contracting, James contract using existing is contracting on Renalytix coverage. a approach and the progress a over a chronic VA million testing with KidneyIntelX based innovation, federal has that healthcare regional Indian with uniquely regional state partnered is unlimited to establish finally, term. care novel first unique testing also covered contract disease, services is the to CKD and for are leading kidney of people, of XX health value-based developing for clinical

XX So U.S. far the states, have with in we Medicaid roughly and new XX% of year, contracted added representing Medicaid programs contracts total several this currently population the are with

in this of disease engaged to with believe near care leading we number the expect discussions finally, in partnered the progress specifics provide result in around value-based year programs and coverage populations more have We care care significant of be approach potential mode with innovative for in-depth healthcare kidney private to of diabetic on contracts These grow patients. the Medicaid and managing high to to arrangements. more should value-based risk diagnosing able we arrangements an the And continue Medicaid value insurance make future. We KidneyIntelX. would

York health insurance one with largest million X.X a State’s members. over June, issued by not-for example, coverage companies New of in KidneyIntelX determination For was profit

a concentrations with now diabetic evidence of real for I and our U.S. model to opportunity large to a We remains commercial strategy. turn would in world patients a and kidney expanding our to State the early region disease to like core pathway plan adoption with region generation by York region market implement New KidneyIntelX.

South the and Atlantic, focused We the on West. regions: the deployment geographic will Northeast, KidneyIntelX approach four our Midwest

patients the focused relationship In we announced have XXXX already VA relationships focused VA care. to health Medicaid and out support offices build effort those PC We in centers. the Medicare, from provide on of XXXX, these team partnerships health foundational system individual commercial and the key and systems system years leading to and health and calendar offices, regions. in developing will we me, three enabled sales announced additions – regional on excuse strategy, To this PCP payer recently Health in

will programs. also and introduce with These Kidney We paths. educational to National educational an informed programs patient of doctor stage assessment have deploy the risk directed partnership early and importance risk care developed the and Foundation develop

significant is revenue regional and milestones XXXX. for in will driven XXXX, deployment commercial XXXX create achieved opportunities clear these With strategy payer that our expectation our and

economic these turn that and analyses and of include I payer Chief call KidneyIntelX deployment our to coverage Importantly, to system detail health results. determinations evidence core Officer like real adoption world impact to are long-term James? the and regional would driving over to testing. programs will securing health development James our Sterling, more now financial provide Financial on

James Sterling

Good morning.

revenue initial the testing We period. recognized of revenues. those not of KidneyIntelX which for work third testing prior we fiscal We recorded XX, performed to attributable did services revenue post costs the year representing revenue quarter, to During Mount revenue $XXX,XXX March. from month $XXX,XXX and our ended Sinai in nearly of related $XXX,XXX of March in

Our the headcount rollout loss prior a share or million. Net increase in fiscal the $X.XX operating and States. driven to third XX cash equivalents as fiscal $X.X expenses third of was were quarter compared with United KidneyIntelX as share in was quarter the the million the XXXX for quarter of basis. scale $X.X continue $X.XX or the GAAP of for to million $X.X year to per $XXX,XXX compared period. for ended We for $XX.X mainly on per The March company the platform million higher by we

open to the We are Operator? questions. happy to now up call

Operator

comes Thank with from Dan you. [Operator Instructions] question Our first Arias Stifel.

line now is open. Your

Dan Arias

growing? drawing this many number that point? appreciate lines, have of the just timing Mount you on-boarding color the the ramp docs, starting Good any you just to can on test you from am using morning, of maybe to and you is picking And to that $X seeing and a for add of associated at Sinai expectations are there in with you seeing have line are And those I revenues for rollout guys how there? that number I on that little for? have? live you that the curious capturing that on will of the if then you of that the kind sight are those sense the Sinai, just and docs in you guys. site believe a have Do James, along the start be I Thanks the with million, bit signed what questions.

James McCullough

Dan good questions. Yes, and thanks, all

the down careful, we we about got be to to this obviously, I we talk is road, we doctors of got which be the be is but think COVID number that scale are to the think, And to expect not year and are on-boarded did number forecast we this second a late expect We have I we to we up specifically half going into a the year, of going – until because well – significant can ordering hundreds, into that base. the to now investors see delays. in year. evidence going of the had which start related year, last obviously, of

have We with the starting difficulty all to been hospital the of having into getting system is ease. even lockdowns, that

is We when done work pleasure. are coming amazing off you It’s table start to specific an problems. now culture, around and in-person the get actually you the meetings, Zoom sit which absolute can through which having people with

most for population thing health much the is very think is encouraging onboard. I that me

needed to support to rollout, get are all the With physicians. system-wide the that’s we starting the

quite time an quarter, are revenue. down now second a takes we up contracting this reorder it to half from So, rates that you which actually a obviously, recognizing about you and getting and number. that optimistic before And start big you evidence the are million basis year putting onboard of is physicians testing, revenue recognize accounting can long can this starting deal, running, from to them we I address $X am

launch. any picture, uptake, and And exactly rates, my I valuable with this. looking source, for career Sinai So, clearer again, to very a what’s integration have diagnostic is ramp. all in have a us very, multi-factors etcetera, Mount obviously And quality It had are we I with with do. pleased very adoption, very utility emphasize picture into than reorder The sustainable doing what it’s is uptake providing to it’s it history is a that on. wanted the going clear high we going at associated with information

year quarter adoption So, is to represented this second see do where the half of expect accelerate. previous we that as in we really

Dan Arias

familiar Forest just it think maybe should Do And in are helpful. than the a the Wake that, longer to comes have of lines the what less you looks or of Sinai, those they along and what you Sinai just learn less our the Okay, seeing or experience takes you and are integration kind you some seen are able end there? Mount Utah. context more like Sinai at when mean, that are ramp of about expectations I thinking process because curve because be you today? these from the kinks experience think work do Sinai of to day, or what at through shorter, of at sort the

James McCullough

to the demonstrate going to that is if answer you we New reasons, was the investment can that be before, What a always can for have is it Sinai deliver to Well, the of environment. hardest. in And to you make York, multiple make variety it say I the it’s very calendar a demonstrate anywhere it but can have complicated said intent obviously this Mount it I to we to this in it. real have is that year community locations.

from that operating an makes The I are get And are careful, into that actually is easier, you move fascinating. But Forest everybody There think learned so, into initially amount of want immediately think have to with Utah, environments experience. we have the last when Sinai. of at institutions, without that the ITT And are there it. legal the demonstrate and over to systems, generated I as there again Utah, we The University Mount much to we with systems. supporting have Mount executive have now which And enormous we have framework, of be is be I Sinai, lot on-boarding much framework, that, the we there can are of the the mistakes had with line more that very made example, we beginning to And have Sinai well, making refined to we comfort year. now and the we from there. of because Atrium, with point which medical a not experience ITT. University that reference And with it’s these mechanisms was learning on to hit Mount for able this rich University are teams that are so easier. lots us Utah the new Wake talk far healthcare new a points of didn’t directly

So, be my anticipation is in fact that will I am subsequent actually quite on-boarding smoother. confident much

able what rollout. We reach populations first going quicker much to and and the get setup, the the going efficient when be experienced the integrate physicians primary of your to to entire more to you expected will be to than into as structure be we do care out is

X we to Sinai moment. certainly, begin from for with that quite been So to have key and our us the guided System I in incredible timeframe onboard experience, to will the institution institutions, – stick an when and to the absolutely are us gives and which talk X has will But an talking we errors and the making between prevent is again live exciting. new again, invaluable we months market insight and future actually testing

Dan Arias

deal on guys more kind have pretty the the then little Yes, out in Very get bit that meeting a for commentary. their clear just I VA you team. of me it’s just a I way, helpful of mean, for the maybe terms calculus commercial MCIT pathway changed okay. of sales force. Well, will and the and

are you about So, at this commercial I you XX think out? initially. build with guess point the reps talked to had where XXX I

how getting things finishing versus year you and and payers, hunting hunt there new just etcetera? health down going that new testing VA you So, where accounts, opportunities systems the about there new should we prioritizing thinking then are systems, existing and down could

James McCullough

point. The inflection obviously a is Yes. VA major

As get our deal. big a and biggest do have how the national risk reimbursement, paid is obviously secured to our said payment now Medicare price I from is at have beginning, you

standard list. sales, have don’t recurring of ramping liaison, think commercial high team, that the because of And from medical this we build, drive I fixed a on science careful includes to support like is priority in have So, very like of the a overhead. customer VA ahead payments said And which infrastructure beginning the inception, terms up the from you high of all stay support, payment. government into we company be things coverage meaning, to I been want very functions, national example direct you I either thought what a it have on of have that services insurance and would pricing, the overhead right or is until coming am payment pleased secured code away Medicare sight already private I an line CPT the in. now, that distinct fixed now contract

of position are So, now all around. I where infrastructure am beginning build in a to that we

important are do We put the are bit. network. not going geographies a we is concentrated can We integrated street. terms to the disease now a But little number thing in that in of feet around on on the

very the VA, the which Medical VA Medicine for Mount the in the and physicians reach example, and Northeast, Health for Internal Bronx Head at we are practicing in of parts So Sinai from easy VA Bronx in that and Sinai a of us both is System as it’s example had approximate a Center, same an systems. quote Mount have the

So, a distribution. applying It the expect and in course, we because that’s on compliment. our partners supporting It indicated us focus science of have critical. that lot allows leverage, Bronx the diabetic spending us of basic a the leverage commercial patients team though a is involved are to Sinai get sales Mount I very they other use And for kidney we service, lot will overhead message, which high gives disease that on of powerful and in can you fixed against force a concentration now liaison the education medical gives a region that on then think we VA, into example. of customer system

people. risk who It’s You treating care and out that to patients. diabetes need the the message stratify, to to out these if you XX% put a a disease needs be to That’s that are have early. be of baseline chronic to primary needs physicians message put baseline kidney

and stage at the of So same a in Southwest deploy leverage VA partnerships, anchor going in resource other against systems do education, the expect University adoption, thing us again, are which also going investors facilities with And to get system from geographies have make educating thing just same etcetera. has terms resources deployment these to Mountain concentrate that need Healthcare large contiguous which to gives the of capital in we do early the contiguous the we we now the VA concentrated we human West, again healthcare can that Utah, uptake the this that should in support now Southeast. hospital of we to are adoption have building. sure lot And will to we

Dan Arias

comments. you. very Okay, helpful Thank

James McCullough

Dan. Thanks,

Operator

Thank you.

question next JPMorgan. from Tycho Our with Peterson comes

line now Your open. is

Tycho Peterson

Hey, ramp? thanks. of help talked can over I how about, around government last going am off know the to I quickly how couple be the about XXX how and XXX material opportunity protests next to departments, I us contract, mean, it years you are that could but thinking I you size the just you the opportunity question. if GSA piggyback am wondering could

James McCullough

patient it VA, the the our treated the is fascinating. So, Tom indicated tends more towards but about skew population I VA Unfortunately, that’s will let system use. medical talk to

is execute patients well thousands. KidneyIntelX to opportunity markets the the so diabetic of And into it, have hundreds we the for addressable runs And kidney rich. disease quite actually of but obviously on

support and to out market not us the results, gives very specific room of a be XXX an Quantity we strategy of is rolling to reportable around And IDIQ XX-year VA in terms a contract risk at small per lot system-wide a with it that. Indefinite So, have assessment. able

again, much We to But too regional start detail. talk with focus. we going in the not are

an Mount So, diseases Sinai. we integrated network have like

and already running integrated. up are and We

do to and with into University and with We going to for be of way and move complete Sinai on can the a up add hiring start all But want Utah the color we added also can That’s individual like there we some hospital deployment shifted EHR nearby integrated move national systems. VA the then Sinai Forest KidneyIntelX level for a And of a into to across additional systems a expect the couple country. to fully we support take have we Tom, VA system that just from you to Wake in deployed are Mount actually regional and regional, years. that? Mount integration. and the that the to medical

Tom McLain

to happy James. Yes, Sure.

I think If an local University inside giving appointments VA an have we facility. the as Utah strategy. faculty of of the University of of look Health example at deployment regional at just the Health example, that Utah XX%

advantage. VA are So KidneyIntelX launch the familiar with testing clinicians a to big initial us, be is the for going into already through who

we will be Cerner to networks said, proposition. will are have are as the longer that the through those. of that are their that towards care But And spoken James the local longer on conversion and that established the right guidelines. a opportunity guidelines across a care XX local but with So, time There be the regional are into so a we for has be processes by that’s The KidneyIntelX. national VA would incorporated level, with leverage those visions, a long system and VA center term, and VA on going VA are into next that, center step are to we Cerner agreements those putting the lead regional the basis the regional term contracting that would now major to foundational national level regional into prove partnerships we that commercial U.S. the to be deploying undertaking, EHR They on opportunities at also elements working into the the and the through a value it. deployments about

Tycho Peterson

then, helpful. how additional in health next heading that’s year do could capacity into But year, just I on of systems you think I as mean next seven we think could five next capabilities how your Xx, the implement to Xx, to where this your am obviously, target I up curious going be? systems, terms about of hit you about year? you And curious, Xx to that will much number. year? up deployments. think just are you health scale scale am to Okay, And the potentially be do you

James McCullough

And other think we are questions systems. also inbound most The of kidney rollout. VA it variety don’t systems with continuing disease major who quality thing increase. wide is chronic substantial, struggling is to attracting systems I getting If health manage to do I am from just will am the increasing trouble important on-boarding. all a getting, how our I we And could KidneyIntelX is be of the of the that population we Yes. validation we as include announce – I forecast. the it’s the additional have systems, medical the clear tough traffic

just position to the systems think limited concern. sure bring going rate continue by So, I don’t we I we to quality don’t of are we biggest make that we we going needing carefully. find we that can be high very a think to We on. systems. that have sure And are to where that’s make additional we are my of in be a build number rollout,

is are we of In scalability, from finding University already, that Utah, translatable again, added is Sinai the have the so terms model. Wake we as of there Forest/Atrium what Mount much that’s

and ACOs, models confident in getting they different Northeast. And is do how less how is one new service, are it So, And stuff are one know these in seeing are well. quirks. associated care own we systems. its Each We than for that these the care models each Southwest to we the quite major in know Their of there it one on-boarding has and of here different business do fee culture culture. slightly There are to with less are we systems. that’s this.

the on. there to are good framework, handle nuances, starting framework, support but are framework, basic a personnel get we the IT So, really the legal framework, education the basic

so. that So, personnel We think up number systems on-board, could Xx, XXXX, the sure to to we just base the I have Xx, of that. in make catches Xx

introducing not obviously, company. And our into broadly physician or we to are But base, are all So, whether obviously do we we now scalable importantly, employee are institutions. large we medical integrated reasonably independent they as is problems. young I And operations EHR. across a still system able this are growing a ultimately, think class the as to quickly and we really ability these start order for And be any can. XXXX. until didn’t high But are

possible And are that reach they or important. portal. we system payer So, EHR have partners It’s whether important launching because sure an that’s very for integrated to not independent the make of physicians broadest an care primary care they we want our to are model. part

is in as as draw we logistical possible. that ExamOne, on Diagnostics’ That’s take other Quest a going is be to we The for to blood This patient’s put any many expanding thing issue ability the patients from why focused access. are a home.

all These send a phlebotomist out can take expanding things actually a about their are You in to blood important draw access. home.

base now So, we broad believe scalable. support personnel right population. building such into focus this Really is our is do a to the

Tycho Peterson

in ongoing integrations, can call, – you mention that’s is didn’t the the you markets track? DaVita, I talked in just you can of launching you about And in terms think on going? still touch on year three I that hear this last how

James McCullough

of putting put we our had with And with that expect lot selective is to time to still on so short forward. the on are partnership of year. is out a many There DaVita table, track. do be this news be but That We mention. how to we on the moving things

Tycho Peterson

on services am of of recognizing looks me just Okay. as from how are then and And agreement pharmaceutical item? interest I for one pipeline the a far kind pharma. then and with AstraZeneca line away kind the separate last beyond curious, the you

James McCullough

that am area. I Pharma, is a for Pharma actually you glad growing asked question. Yes. me

increasing an large interest small. again of have different pharmaceutical from number and inbound a companies We

think is fruitful. very that to I that going be

to level entering biomarker It’s characterize a for vitro therapeutics. many needs that the have whole in to general, KidneyIntelX sequence stratify look everybody from precision able inhibitors types treatment. we early not disease disease, kidney right. different needs been is different phenomenal are in And precision in SGLTX terms just kidney are the Everybody risk treatment and way a efficacy of disease, medicine there at a and and mechanism a medicine disease is success diseases. As ways. pharma, age With the a of in of which a at kidney ultimately diagnostic to of way is

role in one to is Center signed It’s agreement the the a major So, the of broader going play KidneyIntelX Diabetes development. that hold with pharma I get a reasons think of Joslin new been such a of for decades. Joslin to we well that a with with will that biomarkers drug prolific believe response. on really [indiscernible] characterizing We developments and Andre working that drug set very has play

And the a Janssen. setup on was at hear course, whole of about a with to are will trial of canagliflozin that’s taking And have additional news out SGLTX coming we KidneyIntelX. first trial released the access we that. be parameters of look series one. press by more to There now that particular that expect the should You inhibitor study we

out several that major to pathway. data that now access area on-boarding I have pharma now becoming have one flowing accretive a for will a clear of of this None we an geographically in I the is in comprehensive. area think wholly And So, And effort, is is systems to adoption. what’s say is are again about we just that diverse pulling that these care integrated. institutions systems last around thing

looking at are prescription. are early we not So, risk drug looking only at stratification, we

care are navigation. We looking at

kidney is treat how at developing This that clinical incredibly assessed. around large off. how risk a clinical that stage And We different picture and managed comprehensive should from with as understands workflow. is drugs through network an are to valuable pharma populations new how early the are channels, be very to it looking these disease rolling its

renal we is ask for it partner. So, a as comprehensive and obviously growing. And we expands do and is across world AstraZeneca having revenue leading indications. going cornerstone partner, be a expect services couldn’t better line, pharma division Their which multiple a to have to

Tycho Peterson

Okay. Thank you.

James McCullough

Tycho. you, Thank

Operator

you. Thank

Our next with Massaro question Mark BTIG. comes from

Your line now is open.

Mark Massaro

Hey, guys. Thanks for my taking questions.

East, of Commercial press and Senior Sales VP was hire So, of Director the week VP Manager. I one of three think you a ago, VP a Presidents, a released, Marketing, it Partnership, Vice of

extent clearly, the you But are I you gearing up Dan on to a maybe weren’t ready you might building, commercial to to new asked scale comment. them? some So the maybe they speak direct you know effort can are and around any hires, the to that and you side. maybe work might structure the funnels activities they folks with are speak just what doing, what of

James McCullough

And the been always an until which We program. how though vitro deploy number a to overhead have the marketing from about build a in how based the now how develop direct know diagnostic. line of risk build sight cautious had Yes. again, one know beginning. been has we We to to to payment, we partnership to agreement, know the We about to always pick to overhead. sales service services be the to guiding wanted careful have advantage support And government been start up ramping clear that as revenue the have the about take with opportunity. have And and really of up But we now up. we where Street model. running begins we fixed to

sales the some hires background so services, marketing. interesting seen a obviously, experience have And that very from care, diverse value and government you with come and based quite

We launched website. have a new recently

out come continuing We level And that. a the in develop, hone Vice our right are to continue starting with to component to the effort. will sales and Director very to That specific Around not on hire support XXXX President marketing so at a are we marketing message. and that we was we component. education of

regionally, have resources can We of scatter can shouting be function. And sales, then have across wild, States. over am medical anchor we maintain there, can than basis, quality we leaders can partners. maintain comfortable to paying we on partners, control so geography people a get the from and feedback it. concentrate geography we will out roll message. customer start we And the support United science scale can because with the we adding rather by the that, we are We I we not As throwing additional just into and

tough approach. a that’s think I

get also FDA have the stopping product breakthrough see team, the will sales of already just opened, commercial we if we are expect How even that open. people development one not build second team, in scales. designation. the pathways that team, on we do depth our the year, pathways that divisional because team, beginning sequential regulatory product and reimbursement the the teams, out that with each additional what that’s should you a in the be those a device of were team, hired, IT the of So, team, this the regulatory to etcetera, marketing creating development rapidly clearance are half at And clearance

on half on systems FDA I our in see. want bring equation. are it, in able to to want uptick we a be quality I of second clearance. integrated first this rates, year. show it to to I around the re-order Let’s an up These online. with – want And and again, regional of are world VA that can those working do do starting demonstrate a disease systems want these the backside evidence And to I enormous show we showing see FDA revenue corresponding to fashion basis. want networks getting well. I good to the utility physician response, real we

able for good infrastructure recruiting growing be support And it’s have. our to us a problem that. is obviously to to So,

Mark Massaro

talked Okay, [indiscernible], bit maybe chronic and the the great. Medicare, conversations you also are and the patient question, Obviously, have kidney are Medicaid at you VA. little maybe the talk disease. large Medicare are about length some payers those obviously, like How Uniteds, important a some populations commercial those for the Can Blues? Advantage, have And about in where very you large my last had of with you conversations? just they

James McCullough

Yes.

of majority support. disease. indicated kidney our And disease roughly of our They total important. which chronic around so the diabetic population initial represents The product me. centered – Tom the government are kidney after disease, obviously, kidney market XX% is might comment But indicated

Advantage, in put we place. these reimbursement. have established that And them to need Medicaid, do we the we already place, in Medicare are So put cornerstones and pricing once really Medicare,

the systems add are coverage amount from of XXXX, gives of leverage patients That at it services per result. you administration, have when of we private out different significant filling government the of to full comes recently will looking pay now at groups. the Now, insurance coming reportable millions us which rest a out these $XXX

payers. discussions number of having are a with we So, large

the that value I is strongest here, think of proposition economics one the again, seen. health I have

cost and disease a progress to that XX months. to with system just ROI on high, upstaging KidneyIntelX then months XX end quite so dialysis and a with attractive private proposition. because the who people few attractive, expect of healthcare provide an is between on is it’s associated through an missing kidney That up We ultimately

regional Medicaid, So, very the services on first be can’t New obviously the of come pleased entire Advantage, in developing. then we but groups one pay was and with coverage a cluster private pull region, I to which launch let’s see volume significant an agreement, payer, are to York to of market government we of on-board. into that to we with anchor Medicare, increasing the expect name payer that our Medicare is will able private

would to that? Tom, like to So add you

Tom McLain

we same a see regional bit is bring for health testing. believe in to what just that in synergies little systems Just deployment we the And across power same build model way. between way, described, large and VA approaching coverage KidneyIntelX populations, the what there synergies on in and James can centers, the those we the

needle digits. they drives look about at health So we plan York into single coverage Aetna regionally, we those the nationally, when and payers. do New And noted systems, programs They of coverage, in we same look Cross Shield while what when regional by when regional the a have we City, deployment, on what plans types, including a specific are national nationally. talk those Blue the administered an area, don’t those Blue And plans, at are others. look the fall includes regional like Medicaid Cigna basis significant and in we Medicare in that way Advantage assortment that move and when

So, as job market we support access we team. keeping focus market access that, a whole of are a we agreements. have strategy, well. To our regional on very strong all coverage is Their

accomplish tactical have go strategy we plan team for forward. what needs that to as support a commercial our to We

today, of non-government Metro the through we the that the York driving establishing We been just we up are region, XXXX. in numbers contracts, with position go in and – keep where XX will successful New we have contract those XXXX remainder they the in XX described as and

Mark Massaro

much. so thanks Okay,

James McCullough

you, Thank Mark.

Operator

any remarks. would for over I James to turn time. now questions McCullough this further showing am I you. closing like the call not at back to Thank

James McCullough

Well, thank you, everybody.

I think enough we quarter. said this for have

all Thanks We are back execute. shortly. will joining going go you be to to to for we and much put so this and our continue and call heads down speaking

Operator

conference you today’s for concludes Thank This participating. call.

disconnect. now may You

Renalytix (RTNXF) 15 Jun 212021 Q3 Earnings call transcript