you thank for us today. and morning Good joining
close have On release We take of after I quarter distributed first it. O'Brien, with results is a had you and a market at Executive chance Finance. Vice look our the hope me the our call President yesterday Jim to
fiscal laboratory for financial to our and clinical a even greater Enzo usual, an company As the and our industry Enzo first on I that results. affordable quarter I wide products services will highlight provide premier developments diagnostic into solutions create deliver update to reshape will a need XXXX review progress which brief can also high-quality market.
for open questions. then the We floor will
the genomics, trend. payers this and robust necessary. costs, laboratory solutions capitalize anatomical insurance cost significant associated industry, the this reimbursements for efficient facing design, Enzo is the adaptable Having government and to two closed from molecular and declining market and issues is primary validation quarter operating system unreasonably more to platforms and progress on commercial diagnostic becoming in well-positioned effective We the platforms. address companies and easily tools immunoassays much continue developed these clinical of with critical products diagnostics make production to and high in highly growing pathology, technology
assays Our sensitivity, unusually strategy processes. automated while systems involves workflow have developing multiple accuracy, from cases offer a reproducibility perform in to and these been single of Moreover, high critical established some specimen. that tests specificity, including designed running assays utilizing an
XX% can platforms designed achieve XX% from in to current have range savings We assays of to costs. that developed benefits, multiple including
amount. often know an lowered XXXX in reduced percentage commercial Medicare Many payers may clinical to you insurance from their do January discussions, equal What’s clinical of clinical our As commercial prior rates XXXX, the laboratories. to XXXX sharply fee by have so payments is several set in approximately schedule, Medicare XX% in to changes. fee and and payers institute as XXXX. It schedules of begun laboratory Medicare and these expected a their with again more? have laboratories
and reach most have medium-sized on enormous number have the put fallen been labs. the measured private of regardless reimbursement geographical size yet labs hundreds cuts their by price the of manufacturers perform in of XXXX. on regional we reagents reimbursement see any in has troubling, from and Equally tests. to economic the of will or XXXX such, margin As products clinical industry reported diagnostic drastically and have tests reductions equipment These to to in This government performed. in by squeeze smaller the throughout again reductions clinical labs diagnostic system discernible that laboratories laboratories, order use pressure payers closed see operated and firms have gross
margin and consolidation labs. seek The medium as of lose businesses, their maintaining in tightening in other laboratory With now options. financial of Many strategic the method expense profitability not expansion to difficult only the is see size small are or the choices, impacting they growth. with industry faced only
national as a large very utilizing the well. available systems. We on automated their revise saw Enzo, recently to reagents viable industry revenue plan see embarked a at guidance few labs We, future clear to strategic alternative also the years affordable just ago open We consolidation. diagnostic and make
meaningful diagnostic and independent bring savings. principally labs Our are platforms cost designed to innovative assays
our of deep cost benefits with given we development significant Enzo meaningful provide In that companies laboratory fact, deep to to doing is and experience clinical integrated entirely its structure, with solutions that Enzo’s is roots economic believe the strategy simply, Quite our just our in the marketplace platform declining product laboratories, ability these advanced in approach size and about is savings and vertically providing and embedded in disruptive. diagnostic knowledge operating industry. and and extremely our quite reimbursements unique
viable, long-term closed one-third to environment. equipment aspect as their onerous with marketplace capacity. system regional the result unyielding throughput is often Many have contracts laboratory of available control laboratory part labs a companies and maximize as being diagnostic don’t capacity. We or tests consumables clinical tests is performing today’s strategy. with unused mobility able run volume Our and challenging of smaller high must estimate test provide system that closed this of another be at reagent, remain in Enzo’s its to size There available are on clinical and to don’t equipment addressed fragmented clinical equipment cost growth are diagnostic operating approximately laboratories are labs of operating that operating highly
than leaving laboratories high equipment don’t of idle. lower of test cost the shipped one workforce In day per addition these more operate because volume,
efficiency previously products in operational this immediate to noted, as achieve costly creates effective By volumes can cannot deploy testing own Affecting particularly than collaborations rapid fragmented laboratory path expanding access Within locations and It we test and solutions the capacity with consolidating testing achieve operations the services. a more reduce undervalued a have and scale Enzo’s separate. market we see excess capture means cost for that for centrally. assets multiple and facilities, our than able industry. low laboratory we consolidated regional will assets, Enzo laboratory and of test of combining venturing can less operating is scale As are whereby laboratories Enzo industry if partners and industry. its Laboratory remains makes be value in will partnerships with volumes such operating highly to sense dramatically in Enzo economies menus, costs.
and of a substantial group drive growth For this X% with savings realize volumes or combining cost partners can organic centralizing year critical strategy presence to individual works segment mass. We can revenues diagnostic as their in is a industry-wide and believe market higher laboratory a X% operational if gain on to businesses testing only own.
gone unscathed the now recent Enzo’s laboratory challenges results had financial Turning industry. the developments, by not facing to
more As company in an seen much that operate is quarterly laboratory. integrated we just you our financial current results, have that diagnostic different a is what’s Enzo than about
over was industry Our past these an challenges. anticipation years transformation the in several important pivot for
Enzo able the business these We conditions adverse have positioned weather long-term. over to be to
opportunities we create before, as fact In Enzo. growth have times noted for these even challenging greater
labs. growth accelerating highly affordable in for manner Our and and focus hospital easily by efficient, in is profitable a products adaptable volume developing independent Enzo’s on maximizing
programs each testing. reagent company’s manufacturing menu with process analysis. diagnostic and for drive development products in and automation each our through are health is diagnostic expect down of the development systems process pipeline option for compatible to and processing trip activities and collection into approved for development low step from the platform approved. women’s rich include continuing for for also we cost to Our collection clinical company’s sample provides The open company’s includes The directed the step to processing testing tests The required associated products of integration cost already be components an platform. and further of sample every
to laboratories determined technology high-valued a cost objective through are their testing other to and low into but affordable create unique to nationwide. extend laboratories not as to business well is We their improve menu and solutions testing areas. also molecular allow centralized through overcome margins, only to cost independent develop The and reference as model diagnostic by to disruptive testing pressures industry providing
the have system systems of for of of the products Enzo’s sample sizes. associated proprietary throughput which processes platforms. further automation platform, open for the to diagnostic clinical high reagent compatible of for the trials required FDA these of meet and progress open last each integration manufacturing strategic towards plan, Enzo’s make and processing and for to implement Enzo’s drive including programs capable also continued to Over process and clinical all testing. labs affordable significant platform needs step all components diagnostic on includes our collection costs quarter, is we optimization down to diagnostic into of include assembling
of of clinical goods ELISA and immunohistochemistry diagnostics, percentage molecular on focused of cost platforms, a consist significant are the laboratories. which We for
open service regional well a collaboration It FDA lab-to-lab is lab-to-lab providing and approach, additional commercial Enzo designated recently ways England a the programs plan. margin the strategic providers to reach our open centralize state a with with reference to large is support payers. steps reimbursement geographical we will specialized population as are menu allowing obtained the testing already To in clinical Enzo’s developing clients its in which patient provider in and in for allowing laboratory our geographical the The centers expanding expanding it expanding expand network health insurance our approval improvement, To paradigm, to execution address to clinical license tightening need. providers institutional patient a clientele, many coordinated is expands enable New to all in services to manufacturing, Connecticut Enzo translation, opportunities facility in Our state. we also insurance our encompass reference national Enzo of that reach. as freestanding from Northeast. development have complex address to approach new research new that to services our from and trials three
patent We optimizing in the are comprehensive with acid nucleic processes. build recently most real-time property intellectual also industry, the of awarded our one to detection for continuing estates
ongoing an value is work the has for historically process patent Our generated company. which significant
previously October today’s more GMP to for quarter than like that on capabilities bring facility fiscal associated first bring manufacturing to directly and new This in and expanding open turn to current include by and add laboratories them the active processing prime compatible objectives architecture will XXXX’s impacted to for many most XXXX. In through-to products renovation short, commercial collection to enable savings justify broaden we would distribute needed the are We in Farmingdale for announced facility purchase Long sample campus. company’s Island analysis. adjacent and automation square that a recently including completed also diagnostic cost Plans systems XX,XXX infrastructure capabilities. for products fronts with ended strength I foot will also to them additional and opportunities. underway to of XX, headwinds to our platform produce but the reagent new challenging services, Enzo’s critical are related results low
revenues Before patient some showed our replacing reductions expanding revenue the rules, Under quarter of getting our would amounts rates. to reduction test approximately both in by payers, estimates year our in revenues impacted in platform and new government-owned with with increasing revenue periods of accounts amounted new made as in and payer of in note, I expenses fiscal gross is successfully the prior revenue that about separately be for thereby accounting million. the million, changes into Product national revenues and of direct $XX.X reflected quarters revenue operating Nonetheless, coverage XX.X% $XXX,XXX implemented amounted slightly but to were exchange sales for Legal and purposes quarter. a of prior Gross a for recently the results. commercial The tests were increased $XX.X prior quarter adjustments reimbursement by insurance the expenses $X $X.X corresponding reported totaled down were quarterly costs increase the Historically, this year compared and impacted as rates. to earlier details, $XX million. $XX.X all mandated Also results receivable. in differently resiliency gross reported these area, expenses. noted adversely year improving mix, in margin we margins and services were associated in year. past $XXX,XXX by million in they operating margin. with quarter services from year lost million $XXX,XXX increase first unexpected commercial networks, comparison slightly quarter rule. the classified year’s this Services less unfavorable to several these than ago amounted lower at above. was performed to out Europe as versus point compared $XXX,XXX expenses AmpiProbe for the impacted reported operating net noted change provision in and balances in Total million like U.S., and margin the services Enzo revenues Enzo quarter’s at the The in were as foreign million XX% to future our $X and service as launching uncollectible regional Total such are adoption of on responsibility year-over-year revenue of a by million saw $XX in gross was will the be uncollectible period. those an will the recognition product lower
quickly or loss Roche prior GAAP of XX, of to sales or where was to The per tightening our cost share increases client net services approximated broader menu laboratory the sales of in hiring its Cash the a was for marketing used XXXX clinical professionals launching reimbursement year October equivalents quarter, totaled principally $XX and non-GAAP include addition $X tests loss services In in expanding actions adjust Most October Working in York integrated XXXX. that to $X.XX In was $XX.X light net billings to conclusion, cash to and regions. structure these in million. allows and million million. lab was to operations new in practices, XX, These move New to in in for of period. set other $XX impacted the of taken and the changes paradigm. Enzo lab XXXX, trial related compared At $XXX,XXX in quarter and was geographical cash to $X.XX related to the advance reference plaintiff new capital in million and Enzo July vertically consolidated have as ended new our and this significant our million labs that $XXX,XXX $X.X of compared position share operations this Enzo number expenses sales legal April. reference importantly, Enzo of with per steps approximately services. initiatives, XX, litigation increase
We steps The collection systems begin including severe potential are the will the the product the build-out strategic to seamlessly at reference approach assays including open develop technology unusually its penetration significant a GMP need assays returning and market sustainability. savings mentioned tests generate single commercialization more our clinical throughput to trials developments processing growth. and and our the and to and developed and unique accelerated anticipates offer approval the superior marketing, capable a The commercialization partnerships company and expand implementation laboratory and to validation through solutions. are of high and IT facilities, collaborations the systems and This Enzo’s year automated of specimen high platforms workflow. to clinical for and to of with and into from assays customer’s of logistics reproducibility test Enzo’s national precipitously, The XX% from to instrumentation, to partners driving developing has it efforts platforms reimbursement processing fully are products. sensitivity, expansion a in XX%, time X) hit York accuracy, use completion include: multiple high and manufacturing economic FDA, the involved labs can working as accounts that from of have earlier. change benefits, of of the designed institutional additional sample to Enzo’s grow for sample critical while enhance execute being specificity, initiatives multiple that sales, of achieve State of range both running and view The menu, reagent trends, which which New performance superior the economic expects the have fits technology over next that the industry current we
outlook. Our our regarding marketing product the strong optimistic position programs and vigorous and financial us equally leave development
company-developed collaborators to developments Enzo respond drug well as than not in may the SK-X line tamoxifen, the our is scientist research highlight which resistance program, particular the is the cancer would other recent treatment of Journal X in first to ultimately tamoxifen breast extensively. development, on A which on we tamoxifen-resistant breast coming the initially proprietary that needs patients. indications oncology due and Lipid the positive immune-related have With candidate, medical XX% reported Finally, something cancers. warranting the those of also patients failing of involving Research development collaborative treatment I as that of of Sphingosine inhibitor drug, for on the suggest effective therapy anticipated SK-X results to significant a our more like who breast estrogen-receptor Kinase thus to study address of issue may show disorders cancer resistance, further of commented a therapeutics year. have unmet in these results treatment in potential reversing
Our year at goal questions. as or turn development, Thank apply several Enzo call in and realize other or our projects cooperative testing achieve here, What an engage to commercial we will staying our are on in for hope now, important joint and intend the strategic our to focused aggressive have And so clinical we value obviously is may actively much. very is to benefits. agreement huge do plans undertakings, to are transaction that and progressing and should develop. forward-looking over you a evident This fashion. to to examples we in the shareholders value over so maximum next licensing I that worked therapeutic since pipeline also venture would this continued we in
