Renalytix (RTNXF) 31 Mar 222022 Q2 Earnings call transcript

Company Profile

Participants

Peter DeNardo	CapComm Partners, IR
James McCullough	Chief Executive Officer
Tom McLain	President
Fergus Fleming	Chief Technology Officer
James Sterling	Chief Financial Officer
Daniel Macek	Stifel
Anita Dushyanth	Berenberg Capital Markets
Yi Chen	H.C. Wainwright
Mark Massaro	BTIG
Jens Lindqvist	Investec

Call transcript

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Operator

Good morning. And welcome to Renalytix conference call to review Second Quarter and First Half Fiscal Year 2022 Results Conference Call. At this time, all participants are in a listen-only mode.

We will be facilitating a question-and-answer session toward the end of the call.

As a reminder, this call is being recorded for replay purposes. to Partners call moments. for like DeNardo to now CapComm of a would turn over the Peter I few introductory

Peter DeNardo

you, you call. thank Norma. participating Thank today's in all for And

McCullough, Joining from President; Fleming, Financial Technology me Chief Chief Officer; and Sterling, Renalytix James Fergus James today Officer; Officer. Tom Chief are McLain, Executive

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

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

James McCullough

growth continued has for end risk systems our you, morning Thank of response Peter. good utilization increasing with testing been New to with have kidney report In now than provided advanced afternoon. Good X,XXX within backdrop testing insurance accelerate volume coming positive. pleased launch pleased quarter overwhelmingly online. quarter York through market diabetes. health We're new in and to of KidneyIntelX a March. we over KidneyIntelX report more has patients integrated the disease and am I Physician to assessment coverage

the the grow partnered fundamentals Health and Administration Veterans combination hospital an KidneyIntelX to number significantly care calendar payment Health the to of provides KidneyIntelX the volume six the physicians are million Wake in New past estimated now KidneyIntelX and KidneyIntelX the Health online The We our outside X patients. and XXX visibility distribution, of region Atrium on a at the greater the the in now of broad physician XXXX. we year. through Administration testing clinical population serviceable York has brought necessary XXXX, led partnership primary United than months, drive currently launch Health Baptist estimate our Albany Veterans’ at Veterans and plan today, growth Administration There States. System insured now Forest Over payer Health Southeast current through been insurance of XXXX increasing using remainder with

company Medicare and revenue from investors delivering growth, milestone and particularly closed including remains advantage, strategic choose. strong, distribution regular was And for proposition believe the We several the major approvals. who expand multiple views we the Renalytix focus quarterly known unmet illustrates recently this for including for catalysts medical a terms Demand parties financing insurance to investor of on to solving years. which our were on strengths partnerships have from have from large such Our intrinsic several Medicare expanded fortunate value in need. to capability payment,

be we Particularly driving two impact expectations creating which year are expect XXXX comes single line will We to discussions against objectives. or a the fiscal to of strategic with comfortable execute partnerships our more increasingly top to revenue. runway for potential in calendar ongoing if high dilution XXXX, on digits one limited advanced our fruition for

to We cost reviews strategic optimize to our of and manage will allocation resource growth. periodic diligently continue conduct

insurance As driving single remains discussed for previous the we calls, biggest believe on adoption. KidneyIntelX payment factor

contracts programs. Over Medicaid payment of have private set programs. diverse and XX KidneyIntelX with the past demonstrated we consistently year, insurance we date, can that coverage a from secure we state have contracted XX for received insurance To

a launch successful per is securing and for covering testing We exceeded federal government insurance among Administration patient This established has for Medicare CMS for pricing result pace the a Health $XXX test. and for for also has national a have first laboratory a reportable what the payment payment secured of others of year typical system. contract XX Veterans year KidneyIntelX in pricing developed $XXX KidneyIntelX. of

pace various with calendar in than aggressive greater goal XXXX. stated insurance to for our of achieving this forms expect KidneyIntelX of patients We million payment XX continue under

large founded groups, distribution reach on care primary with primary practice to partnering particularly Our health systems was physicians. model physician

exceed goal the by our the of KidneyIntelX health calendar XX administration, veteran's we running centers of XXXX. With addition stated end meet health the of to expect previously or

health commercial brought Health quarter, now St. June in To Tom to rerecently additional Tom? New be over discuss in We including the up announced turn Joseph State. systems progress also will online I expect York further. central McLain. to our

Tom McLain

you, Thank James.

calendar provide in focus a regions on where base system KidneyIntelX commercial remains of health adoption XXXX testing. Our for year partnerships

Veterans quarter, March four of focus account have regional we health sales on administration. XX end and the the of directors As the executives

director investor by is or ancillary call, deploy effort estimated centers. encompasses education VHA. a Renalytix as centers added qualifying provider. executives medical has VHA and begun sales live are A Foundation million the our existing with Since New an that's the regional a X critical is based Renalytix diabetes education disease liaison a in testing This led at step National on also Health with VA The and vendorization regionally. by and medical seven three York kidney VA centers KidneyIntelX service regions. the outpatient There chronic Kidney Southeast XXX with our offer community to testing Administration. across a science focused being team patients and partnership to last early kidney disease have Veterans of sales effort stage We the complemented

with within of Health population XX This a year of the among term. the sizable We XXXX. investment are Administration. at currently centers effort long calendar centers Driving patient this poses success Veterans end that educational vendorized physicians target before on the return requires XX a an over

we As our productivity and we further model, additional increases testing deployment growth. adding and sales will validate VA marketing and test consider further to support deployment resources

at real are driving Sinai levels. System. study efficiencies Turning to Several appointing program evidence Health world adoption greater now metrics to our Mount

has order As dropped an first KidneyIntelX days since time to December. to from example, three XX

record support. combination and with and also data physician important demonstrating System and Mount and care care electronic education of electronic our primary health That analytics; first, health Sinai four to value sponsorship pathway integration. fourth, model approach through is population support; and ordering patient education validating in third, physicians. engage reporting; Health areas; is partnership a Our That's second, broad test advanced

Turning to and now our testing laboratory infrastructure personnel.

this Earlier our have to opportunities we successful New We a inspection scale lab. the developed as expand. FDA capacity City March, distribution had York efficiently of

and in achieved reviewed These are robot testing York City Lake continued build services therapy. function American driving all at better January, ISO kidney data monitoring Congress and diagnostics. standard In accreditation multinational certain value payer to patient's robust we also nephrology, qualify And journal when for Nephrology, is We have prognostic both finally, important to risk now laboratories. market set in to provides peer World evidence, compelling to a adoption. KidneyIntelX February, for data response for and predicts information a compared demonstrating the the results published of new cohort from current Salt demonstrating a and patient which drug CAP of published for provided decline for certification This we've the reimbursement. KidneyIntelX New was of City of expand that

later We this a also year. expect results publication publication June data economic in the of utility additional preparing quarter, clinical for cost model effectiveness are and from

the Technology Fergus Officer, Turning Fergus. basis our introduce our Please and Chief technology now me for let evolution. to Fleming. product

Fergus Fleming

In diabetes. emergence the platform kidney of on premier you, agents update I'd some multiple this have for shown seen to take Thank like the the making and we end the research past to up events. opportunity diagnostics precision KidneyIntelX slow disease you cardiovascular reduce kidney few to years, and and development programs progression of disease risk Tom.

even focused data the remains biomarkers medicine the However, own of of clinical effective developing to care resistance management. these new and therapies. high, therapies, application solutions partly very complications to the diabetes at of suboptimal on these biological Therefore, we clinical enable with to and the to of response due patient's therapy risk the with Renalytix, new integration are precision more therapeutic

for Diabetes journals, the of in and the a and have University US publications leading in and has high number of and a additional we in expect technologies data published Europe, Michigan. biomarker of centers including leading we with programs the these already Firstly, patented biomarker biomarkers Johnson months. emerging coming Supporting number proprietary the impact Center been

most for inclusion and capability the versions analytical have We KidneyIntelX established currently tech the candidates XX in promising evaluating over of future are platform. of

validation which advance in year. of plan we first calendar to The this

partners for already bio trials, XXX,XXX real centers. leadership multiple large medical and partnerships as position clinical to have from we and precision developing we patient XX,XXX establishing early exceeding are diagnostic bank this bio This published kidney through includes academic access for such established the disease. a have of the CANVAS collaborators, samples banks patients of from research to and landmark and leading Through network products. precision study stage purposes important we world scientific from data in collaborations, clinical over validating access and data, sets and diagnostics which Secondly,

over our were XX,XXX from on Finally, serial accelerating diabetes, and the collection we week we to real world precision diverse more that Renalytix evidence pleased and of date data are report The unique this through than most assessments medicine to de-identified patients. named biologic up world future framework, and match urine extremely research from target to assemble in have X,XXX RAPID, of all of and be is real subjects for their for data data blood samples have studies, who these evidence used we which development all participants and and programs. to electronic health consented from record samples Renalytix comprised XX% by over earlier

of science scale expand of all this ancestry. biospecimen the opportunities this such positioned are are we risk partnership proteomics currently African only with use can the We expansion several income collections target the data in of underserved most above, groups, clinical the for over add uniquely to our the company underway KidneyIntelX and diabetes to to is only extensive high from and be genomics, samples of matched are product streams. and those advancing are patients we to conclusion, of potential as We It intended data points through In full such solutions and for we Specific potential programs for leveraging aggregated through that goal. medicine to realized portfolio precision and disease. believe of know analysis. data RAPID of kidney time evaluating

digital We further on data of including easy forward are are help R&D announced of reports additional portal, analytics is programs, which and the activities, R&D with leverage growth. which to complemented of KidneyIntelX, products also the providing value recently This which of testing quarters. testing health both would just solutions and order overall KidneyIntelX. snapshot myIntelX revenue in and of to our We some our emerging platform our compiling the repeat coming updates data providers our allow for to launch and receive access by a look demonstrate

financial provide to more Chief to Now will on like Officer, our our hand results. you details Sterling, Financial over I'd James who

James Sterling

Good financial morning, issued everyone. reports. we Today, two

financials. report include our six GAAP details financials dollars, accounting. are second month months December XXXX. that filing All IFRS figures our interim reports from in Those quarterly our US I is summarize ending included and Both will GAAP under the currency. XX, First six releases now. periods highlights is three SEC under which full are for is US our And reporting and

in which quarter, $XXX,XXX Sinai the of For of nearly KidneyIntelX comprised System testing revenue from and second AstraZeneca. we of recorded revenue, services at from over $XXX,XXX $XXX,XXX Health Mount

recorded $XXX,XXX nearly second pharmaceutical posted services. all we revenue period, cost of year We the to $XXX,XXX of in prior from the For revenue, quarter. attributable

the for at as $X.X Wake as was increase compared expenses well prior to for driven of R&D growth. million headcount, primarily Utah, expense University period. Our and higher quarter professional The Mount as and support higher the by year related Sinai, studies million increased fees operating consulting were to $XX.X to Forest

months the six per announced $XX.X December of ‘XX $XX.X ended $XX.X million at same this XXth. second or compared $XX.X prior with as nearly totaled per million ended the is to the period for fiscal the for We XXst, operating $X.XX compared share balance quarter morning. During of with of share XXst $XX was our course or year cash the cash same financings proceed million compared for million of loss million net expenses to of a loss for Net million of ago. The the $X.XX XXXX. December period quarter a $X.X to September

number expenses them to $XX.X gross execute sizeable and we of strategy revenue. growing sales our with of gives which while force investments In us pertaining and most financing, second volumes We expenses successful to field. is million repeating. one and enable testing happy have recruiting, equipping, made the fiscal from large and included runway exercise plan to Operator, current quarter, training along marketing the from expect be discipline. of we cash to other not already now sales in prudent top deploying the We're place proceeds to to would time the associated quarter VA the our a a is And line rate are Much revenue commercial open us. for reduced to with and hospital infrastructure questions. now that the to in the of second Xx available indeed this cash burn like we up pursue our and quarterly call continued the that we

Operator

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

Daniel Macek

and for Daniel was laying out is some This really that on milestones Macek thanks Thanks for for the helpful. important Arias. Dan questions and today, metrics

So is target I'm I should where that per tests coming the on now? of we you number think mentioned consider online? the just XXX exited Sinai. and Mount other the health are quarter of that first week goal number how you And in we per versus when know that of guys the of wondering, about kind that where week. partnerships then

James McCullough

is there is obviously acceleration in getting testing Mount volume. implementation clearly We're there an and Sinai complex.

amount into about dividends such that we We integrate do maintain out I'd healthcare system, have that's And large that point like effectively growth. need learned a to huge in target. still a and what to to we paying terms of volume

their around signs went KidneyIntelX Of testing build. are ordering, I within into we’re increasing December and practices, for important. which came We part we're encouraging a adoption practice, at KidneyIntelX, it the are course KidneyIntelX Physicians and knocked to repeat got very everybody seeing of primary now utility critically is But volume -- February. but Omicron, of and factor. overwhelmingly of They're hate physician especially which January, using, was refer this, positive. care back response, seeing lockdown and in with we and protocol to seeing

So we’re those comfortable targets. with

are animal. own evidence complete what's the up But certainly, But It's which Southeast. in start coverage of insurance to systems? In it to in and And the including the able in with situated scale course. a Unfortunately, the at larger deployment received that quarter, exclusive that of some that does Atrium, go are its be Wake terms major Veterans of increasing the is give Wake the ahead a known should at us we in are looked regions. party. we that leg looking and name seeing that and the a is coverage in in Health different, commercial drive to All giving those coverage a Administration one as Forest But of those we're to we of how really the out major belt insurance this this comprehensive to that lot seeing System, Southeast. commercialization. us Atrium allowed Southeast. we're feel steam diabetes determination reasonable example, Forest We're need systems that systems be not target of is for broad and of we insurance across for

activities seeing drive So of activities commercial study certainly now same activities, we and the experiencing volumes expect to and Mount level we targets. are with Sinai the that at same

that's networks. St larger I also think, proxy. a which hospital So part very are other In good are smaller, like they of systems Josephs,

associated markets. play a some bringing the to add online of addressable larger broader smaller there's collectively strategic So hospital with up systems that

kidney there patients us. Administration, as Administration metric in Health own is said, disease are systems important to access million to XX Veterans and addressable we system the market. available the the that have And XXX get government year is kidney eventually, make to million across its a approximately Health for category diabetes we've a are federal diabetic And expect Veterans is national there a course with But reportable across KidneyIntelX progress of whole and XXX hopefully specified centers, need starting per each through, that's in result. our And XXX we of an $XXX go those centers. getting how centers. to sequence one. Tom vendorized talked now our a the of terms for one there's processes of contract, a which you about disease we in -- but patients is For

advantage to as questions. that gives go move us So your hope answered I forward. significant we a I've

Daniel Macek

mentioned physician response. the positive You

metric days, order So to rate. sure that you was previously you can going But understand I to explain want that to from the you similar three And gave me, I make metric first then to XX just time adoption positive. that another it. given sounds

Mount was think Sinai. like XX I it -- within said, You

Can it ordered sure more physicians also Is make And that. I'm positive, positive? like then where XX% maybe is ordered right that still now? again. think of with number that was KidneyIntelX -- sounding that I

James McCullough

question. Yes. And I that will let Tom answer

fancy a lot simple metrics system are lot of We've KidneyIntelX attention diagnostic integrated care It's say, and utility several we've with done paid careers bringing clinical the decades. you in get But primary item mind you're physician. All And of would through to and physician off. work the to our primary around metrics the the into what behavioral dynamics number to take in Just I the times is thought pleased that care upfront for many that is work of level. working to prognosis the and that seeing? Tom, you a say is we a actionable running responses. doing an of large economics which down a to behavioral result, am with flow, an very deploying KidneyIntelX time, associated we would paying over got much provides all that the monitoring done advanced words suggest rollouts that it's last doesn't of of it some which system a we've in do, of the

Tom McLain

to a fill Happy James. little here, in bit

first at described in to what to VHA. time is order, the I KidneyIntelX similar first class. So

that So effort in practice. required there utilize physician their care aware make to test the primary is and educational to test an is the how the of

much a one, physician at open that their Number first seeing the now sophisticated, XX the the education also much that's targeted. in in getting that which utilizing things. more more to in way time health really primary test marks Sinai, So reduced programs, test primary the it couple primary more physician, much care we system December the care approach education and to quarter, the we of the as Mount days, of three of order the days, were to that between But broad immediately care adoption become practice. we are a physicians the like with

an metric. is that So important

-- But at utilize orders you'll I physician as Again, of pathway treat when the test those can they with is high percentages information care an In terms approach is one-time through advanced we a has we metrics think that root system you how awareness also get KidneyIntelX described previously it XXX% care what regularly, described There as their a continue utilizing very that's broad consistent KidneyIntelX of in value never leverages will get that a versus what on commitment the to be clinical them adopted. to be into the like that. patients and to widely the always of affirmation regularly KidneyIntelX that Mount had strong. Sinai that remaining before.

Daniel Macek

from one me. last then And

You economic then details effectiveness timing if some you see when Could on that? we mentioned might on expect from and any we you update we Mount model. some And expect this might what metrics provide on world and cost might see, just evidence the to what that? real provide Sinai, on can also

Tom McLain

that we cost payer a for considers and year the way to Medicare looks gets data at you population and On it, typical program Medicare utilized described in at private it health published is analysis population, patient the Administration at impact health a the really because economic life. but some also may is it looks on the system that is benefits. patients recall integrated mortality, and the itself, is those literature or where return the a Medicare that that That analysis insurance a Health health looks to budget provide the model health economic an of look health quality in way it expectations economic effectiveness directed Veterans important analysis a economic patient factors payers a would stays ago. broadly The that of patient the patient publications the the about us at like And provider. more to or in important payers,

commercial efforts now Administration. preparing is care that publication And help again, structuring Veterans accelerate based within and and in the health for it published that within this systems, value we're that the to expect that arrangements So of importance will be our year study. Health

from Sinai, data evidence months. at the interim of to there six real XX terms are points Mount In world

year. and publish to expect from study both this present the We data Mount calendar Sinai

Operator

with Markets. from comes Anita Dushyanth question next Capital Our Berenberg

Anita Dushyanth

just drive would was you could of of in might guidance of forward you XXXX KidneyIntelX? catalyst help a when sort look that wondering talk just adoption providing also here. if I I in if confident might what adoption be half would about related you driving kind be of remain one and the But And as in you to wondering have couple LDT, that faster. this could successful? still reimbursement I required? is more understand And more is also from decision, if FDA just an the KidneyIntelX that second probably and -- perhaps?

James McCullough

the get but FDA. we lot is reimbursement, There are to diagnostic what strategy, we configure worry I’ll your more Reimbursement career. question, examples saying and around diagnostic it KidneyIntelX regulatory and is I We We a decades. number not mean, been all said is without configure clear do today which the this important around that that's understand, that have utility through one we the you of because have reimbursement. franchises themselves beginning. there’s you environment FDA Ultimately, said we And I factor eventually strides the importance received there been national factor to payment that to worry this how and have by tests, international market chose much experienced okay, category proving against company, one companies insurance us difficult of we want to And my strategy. one what on has the coverage is new significant tests, have And this make through three the do paid. a approval. payment, do marketing of I've of important. to big a get very ultimately built baseline major the insurance large But FDA. things looks have with get are thing over in to creates start what says, obviously, then voluntarily through how we to The there's and is very for and started majority in marketing reimbursement, the phone FDA I've the when of three risk an capital diagnostic industry very last in It risk marketing, everybody about. long payment things going we are drives started finance about today, clinic, The because over we've and the companies for is very are paid? there are KidneyIntelX. very risk around ability from that number in achieving have FDA. at the go time as a so made the and and do some reimbursement. now diagnostic gone This to the that it again diagnostic reducing believe we is get shot time tests Renalytix, revenue.

sizable much FDA. has So a testing, we building population now is to have availability that the through a go insurance gateway to full We business. the process. very to for me KidneyIntelX which want We want

objective to And a But huge the number remains driving that, can't We have those? building Anita. a regulatory again, amount the franchise. I've repeat your remember Can large other of respect are forward. moving now you done one questions, for I process that and reimbursement two we

Anita Dushyanth

catalyst be we kind should looking what key wondering, Just of to… forward

James McCullough

the a the do financing a of Renalytix, year. number around wanted risk XXX% uncertainty on so balance number can we the the that remove of have So catalysts and we objectives was to focus with that of this we we major making and sure have sheet hit catalysts one a

company. going the the coverage. near-term So are starting growth catalysts, expanded to of with on these have significant impact Obviously, which insurance are

in impact revenue that would growth kidney avenues which and We We which be one disease. and the significant could coverage pursuing we a this Medicare that have that do I highest we are very adoption at and on have payment obviously that a diabetes in believe of achieve a are population, broad would is And position insurance that for opens KidneyIntelX. up XXXX. to would for milestones multiple think that achieve particular population, that now

the Medicare, Advantage, are Medicaid people Medicare in So many population.

news, look flowing news, please to the continuous out around payment front quarters. more over forward several the So next

strategic fundamentals some put Another ongoing of continue frontline that expand partnering Mount I on Medical are taking that for very major integrated help have reduce that for up who believe products, in including, use, analytics is the in opened help complementary important now market through our physicians we could directions, volume distribution suffering and Strategic coming community. partners major access Testing we now KidneyIntelX catalyst Renalytix volume do we accelerate important channel will a a diabetes data and do with partners. other provision prognosis, place are the which could obviously provide is kidney which we are And XXXX, multiple partners to patient volume that. And the also to in of us. In larger diagnosis that win, and to if the physicians strategic are testing expand very market The we the valuable expect help System, multiple System, also for to Sinai want patients discussions example, from all growing same who to companies the us together And bring VA Obviously, critical. in groups win. space. of everybody shareholders that nationally, Health win, to is wins. access number win, different be potential that is to channel. a testing

a growth continuous term. there things investors in near a expect And which XXXX. news the of should in flow number are So can catalyze

Operator

with Chen Our comes Wainwright. H.C. Yi next question from

Yi Chen

conducted revenue the My tests is quarter to quarter? of first in directly recorded the proportional KidneyIntelX volume question in that the is,

James McCullough

ahead Not revenue the comes necessarily start the coverage insurance catch world build what's strategy be for bring of or us physicians It it revenue, an real of of coverage catch insurance us are program up going way real revenue volume is to is for avenues, is demand. the always One volume will is we generating volume bit And works. growth. use, classical reported is this the the a evidence a there's that But No, utility that paid start up, is demonstrating point. in, testing to to will growth important I disconnect. and as with testing and program. evidence think comprehensive to the achieving not. It is But will and through the it increased for expect component the tests. which has online now all to happen experience. is to including multiple important the world disconnect, important user And for a

see want of win adoption. going So testing and the and more a that running to physicians, and to of to gap lot testing a of world ahead will Medicare. we is see you get as But utility start lot day more out at really evidence. want the is want coverage including revenue a of the the volume end growth you'll we growth, broadscale real volumes from of to continue what's to get objective. see to reaction see Data lot We insurance we closing

Yi Chen

tests current conducted the is what collection commercial basis? the rate on for So reimbursement

James McCullough

You're looking for percentage volume. tests paid a versus for of

Yi Chen

Yes.

James McCullough

and like out know don't -- get a have been about guidance. whether that XXXX. shy We've would offhand. question providing we very as this And report guidance. but that don't I are we will that metric that to we certainly Anita's be on to back I report actually I And prepared to quarter, in obviously previous

starting in guidance, to point, But starting introductory my I We're think will metrics. remarks, provide XXXX have that's of around around to I we're include appropriate revenue guidance. we which been develop at stage and more develop confidence will confidence at more picture. expect this we And some to said as growth.

to or more-and-more us model providing that want before providing volume we I starting that we're and do this that fiscal will of done a and we meet lot we're while we KidneyIntelX, confidence, just use patients running position, utility we've think help be call, make online, core get ‘XX. is something more thousands fiscal specific on exceed, more we're metrics, define as the a ‘XX important. from can tested which metrics, of now. in have we're to sure to, systems true I more we starting in that We're

Yi Chen

that to the mentioned this by centers VHA XX you of from XX year. going health centers end And

So how can look to many physicians ready test? are available forward And in to? XX centers what we volume is the KidneyIntelX prescribe

James Mccullough

not Again, But question, to because system. it Tom project important I'll start that we're create into is we let inroads lot going more the volume. answer to as VA a

Tom Mclain

and I our be clinicians is as But head would from some are a top you of accurate number go center. the response sales expect, actually we have and of primary regions. moving variable, far wouldn't states as give my the into size force to would And you There can rule to an something center I per just isn't do. incorrect application that's thumb in care of into VA Rocky large centers The VA Midwest as Mountain with urban that off there, of something the to that. want quote that

Yi Chen

lastly, you quarters? quarterly the expect And do operating increase expense to coming in

James Mccullough

No.

with expenses want runway And sales be position that, there's tie certainly objectives. is capital we a up money. hitting different you're revenue start fund additional now deploying to quarter It into spend environment, we that abundantly reflected maintain that place, be cheap, in we that infrastructure rate. this up set to we to we opportunity a a a allocation I it a a are now have into previous I We're where time. position financing moving not to I you clear, allocation saw think demand set refer are very plenty to right? national going reducing did that's to this especially be resource want burn make we calendar to terms Xx management not quarter-over-quarter. tipping categories. going start But runway. us forward. a a to numbers. And that execute to baseline that build you business. When to burn to in to in going all are of We're in Unless sequentially We major markets force, There's actually support comes just have where prudent tap we're market infrastructure. resource make increasingly, looking feel of we a December be sure intend the on expenses. this But to these where in and if which a I the we XXXX as spike generation. no-brainer It's commercial will to in And ultimately, to of for rate in point lot

that's important. very I think

Operator

from Instructions] Mark with comes [Operator BTIG. Massaro question next Our

Mark Massaro

you’ve if this, But Medicare. time. type I late. any Palmetto, Coast, and see of with from any wanted the joined them missed you've any just at updates whether call I'm little payment you've if Medicare billed I First NGS update And it's I and if Noridian, or curious received apologies from bit if this I

Tom McLain

which and have are shares the the going year. percentage background contractors time that And the in the to that So of done is the payment going that we summer And Medicare to a of to KidneyIntelX. the be. will claims quarter expect we work first initiate realize administrative the the this to that dossier, to period exactly what payment we prepare other second Medicare quarter gauge over understand to regional during we contractor with expand we first percentage calendar

of the the on gate I for performance alluding regulations they to call, Mark for you're the others what out Medicare. under basis that oversees certain like with secure Medicare tests that business how Often payment contractors. administrative and a to percentage a significant, as For payment new of CMS use know KidneyIntelX, is these continuing that laboratory with do

results will end quarter. the so the of at our fare with we we share how we And see that next when

Mark Massaro

not those planning exceed commentary hospitals add the that that How you're for with guess contracted this meet healthcare I And at that VA XX systems. are to time? maybe of to systems you're yet versus or plan you

James McCullough

is the and a it we in make health you think, in a unique is it physicians with clinical going we Mark, asked us other when how that plays number. that I Sinai get works and lot to IDNs, we data the XX utility. prepared what very that But expect we're that prognosis into I'm gives meaningful And start we're prognosis, centers the to is It the play rollout the we But that a departments, mix distribution. to comment going IDNs is and exceed ratio we care don't population, question, Dan those percentage specifically way can could an whole how of proper or a they is opportunity advanced let's between what the the word, Arias know, systems physician answer I to systems. by is which now so answer Exactly of So to patients gather support what is going, demonstrating know, exceed the that for the that that KidneyIntelX reach in and VA I VA previous is out. ourselves system, the the and be of healthcare reacting incredible to care, The with affecting what are advanced improve of do know That get very to And that faster, model understand means end over we is also is moving can be. vendorizing a are have the systems now to how medicine. year. simpler, exactly systems position that outside see Mount especially VA measurable care better, quarter. We've most don't do the understanding quality patient. out we VA that of cases well, XX meet trying can the hospital that the we pipeline. XX behavioral number primary around to think And to will of process to made the starting health drive data, to how

it. at, exceed at I'm to the So confident like I'd XX moment, systems,

well, I think good And think add of the significant VA group. a in that very XXXX. be be Medical Center IDNs part we'll mix a additional on should as will I top

Mark Massaro

guidance And hand, there. know you’re my much I initiate pretty maybe other on with not But prepared last the just done we the question, are March that to today. quarter

million top of you in another nice sequentially $XXX,XXX suggest March but you would quarter had So lift, the on know, you lift that. know, a QX,

for fiscal X.X and I I consensus think at is consensus think is year March June. X.X of for

pretty aligned think appropriately, is we're purposes significant wiggle kind of of bit just surprises. the room Can the we bake maybe not or you that launch not with done consensus little having recognizing comment the March, is? additional should much of you for where So the whether or about a conservatism in you and early street operationalize bake of as in some to relative in sort business just

James McCullough

And a could significant because at I'm the happening how end bait think is over have the quarter of year on increase number to But -- consistent a not the there moment, lot progress. on volume we're we're that Mark, think We're are of a significant I getting now making that. of confidence I growth a important the where take which having number the variables, to the ultimate are So thing out. most quarter. that impact we rolls right that which in that going testing point in are that showing largely

us on to how and do More point that XXXX. this importantly, I much partnering. said to the can strategic significant statement, very a be in where is the generate start I that for real business going are revenue influences focus, as we question we my think fiscal to scale is in And

avenues But how confidence. example, starting that the continue rollouts VA information For as looking we exactly we'll how in is like we're various develop and market quickly handle Medical get provide around to System. a more

Mark Massaro

an MSLs, you Is new way to about market could scaling update? update there can your go as [commercial you systems. an your as any but strategy? think the on get on to also give health comment you've funnel And well us headcount] talked potential of I

James Mccullough

take you do want Tom, that? to

Tom Mclain

approach. we of are to systems, terms new regional committed pursuing health in So our

payer for and efficient forward sales at that in success in sense, describes. we and the also OJ resources I it focused that where New look standpoint, Northeastern the the did commercial makes of model US, both and on that a here we as And business York significantly terms coverage. markets investment cost way there, makes we Mark? But in return creates the go investment because markets think from good looking synergies really a have Southeastern else something it we sense the building significant So very of miss on

Mark Massaro

you're add number reps. to support territory to planning salespeople just the The and MSL how of

Tom Mclain

where plan return investment first terms within significant in support everything is will of we sales have that our at indicate a that the that on look that in XX that invest So our force models commercial we whole will months. we

kidney primary that new. the We XX that than of to this the terms on chronic need less is in KidneyIntelX what physician their care In education physicians support clearly science medical know is we spend hours disease. medical understand liaison, education we with provide,

population early awareness the are we of very the clinical in to the So to and out of field can developments professionals, are kidney delay backgrounds, them who what But understanding and disease. the with be first patient recent therapeutic committed support create in stage kidney progression. approaches, of the done all XX% importance new It's disease. to or having also prevent trained of to treating able

commercial medical that that expands, MSL, that footprint will So we that expect as education proportionately. footprint, expand

Operator

Our Lindqvist Investec. with from comes next question Jens

Jens Lindqvist

of filling couple maybe. gap a Just questions

Could how And systems extent EHR works. just this you and just RAPID in this separate currently this health consented endeavor? basis entirely Just biorepository, commercial database testing. the understand up is again, to I'm you with on First an it mentioned more proportion RAPID data is on commercial tests are But please, tested to secondly so what determining I understand understand. all which it What of in clear. or the database? confirm linked I’m records this on manner integration, could expectations, particularly this enter please? all going few where about And not realistic VA into margin, what or commercial that a RAPID finally of generates what in we curious assuming scale in goes to a Does of but the see years? gross may pace next the have number patient rollout, scaling this, the on over just rollout? line the patients of with is the then

James McCullough

I'll let first Fergus your questions. two answer

why have to the based gross moment. thousand past through said we're number can't margins. continue cost no scale hit on we experiencing of that We expect, reason is several margin, in we that as we gross our goods tests the up, that we XX% see target the Our at plus

the is number at time the glad such is up. it firming much is and asked because intrinsic that that of over is very program. RAPID, valuable And day, you Because I'm data about quality a data So end it Data unique. data highly to provide It's that to drives utility our It's generate extensive into RAPID and business, going approvals. to everything going help going regulatory get is with is guidelines. what additional in more is to reimbursement.

don't with quality see comprehensive biobanks EHR longitudinal You large out matching there. such controlled just

repository largest development, But product bit the into one of be So on the et for a this Fergus, available question very analytics, goes it? to little you bio talk commercially good data will it. if cetera. what more a want about it's just do not largest,

Fergus Fleming

clarify. Just to

into samples, sent patients collected of three So must longitudinally two to be period. kind the course included both to of are which for year times over three their biorepository, to up a

of for multiple their use longitudinal the for they're sample consenting So data. collections and

looking all the And three at to results obviously advanced take data for And other in with integration, lot which the those may will getting all which those moved very of Health that and planning on systems we're data and RAPID included world Forest extract down our integration systems we're we disciplined, specimens in Sinai future access are integration test have -- also. repository IRB evidence -- aware model deliver do of for in the stages purpose. come that into and need repository, seamlessly straightforward Atrium real using to future Carolina Wake have patient us protocols, and typically forward consented our repeat to integration emerge in to platform software from must with the our from execute, full learnings and going model, all But we that Mount we commercial deploying myIntelX So that in that our bio us have because forward. streamlined relation integration. a patients the three -- to evolve further that the we’ve be of approved underway -- hasn't years. consented you enable the to Separately not pipeline the involves the in using North learned hybrid model health system we a we've use integrations, a of the

Operator

you time. conference. And showing thank your at no currently [Operator questions Ladies in for and today's Instructions] participation this I'm gentlemen,

now You may disconnect. day. a wonderful Everyone, have

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