AXDX - Earnings call transcript Q2 2024 | Accelerate Diagnostics, Inc.

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Operator

Good day, and welcome to the Accelerate Diagnostics, Inc.

Second Quarter 2024 Results Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Ms. Laura Pierson of Accelerate Diagnostics. ahead. go Please

Laura Pierson

XXXX it during begin, the to that XXXX. Act share of Securities of Before Act Exchange call is may presented of of Securities the this XXA within Section contain information XXE Section the we of important and forward-looking meaning statements

company's report that Forward-looking are and are Form December Phillips. greater statements These cause reports those SEC. made now in that could are detail statements during about President discussed and other subject the historical my to not XXXX, this and for projections, in we future statements call ended and our year to CEO, is annual are with uncertainties risks, facts. the to It factors include conference results on materially. actual our Jack that All the our file forward-looking other XX-K pleasure XX, introduce differ

Jack Phillips

I Patience, I David the to on commercial including before up to Good Thank questions like provide call would Laura. and will pass analysts. to progress results readiness preclinical updates exciting to our CFO, the the incremental call from meaningful afternoon. further you, funding deliver program, then opening WAVE the our to trial Today, quarter our take milestones. for summarize strategic financial our results,

blood antimicrobial testing. positive As second-generation both WAVE. system, susceptibility entire uniquely testing to positioned market, Accelerate addresses including market a WAVE traditional is reminder, with and disrupt the our isolated AST susceptibility the culture microbiology colony

X.X structure the leaders isolated customers to billion. the testing while a flow the of preparation instrument AST the will on cost consolidate automated average; lab generation. global WAVE's significantly in platform AST structure same to segments colony a By at to which not AST market workflow, does market a platform cost processing a on lab include have delivering margins instruments; product all meet testing cash combined single is require platform. all hours traditional on testing, results needs incremental sample return a opportunity $X Further, higher The friendly estimated shift all scalable same in with differentiators to testing improved and competitive

Moving trial. preclinical to our

measured end trial We are was success, to points. our several meaningful announce preclinical a by pleased

is foremost Broth included unique the bug-drug of and the reference clinical First data Microdilution. the WAVE set method, which tested a compared performance, combinations to X,XXX platform on

Our XX Essential performance across Agreement both Categorical which antibiotics. by is measured and Agreement, of approximately were overall XX%

and of an between study and It's concordance important number contrived stock samples. equal note prospective patient to site-selected the samples fresh excellent included challenge resulting in samples,

achieved to on with AST platforms strong which to result Our same-shift performance was today. of an clinicians, susceptibility true delivering results by achieved any hours not unprecedented is time emerging average, X.X

reliability, laboratory assay a assay a minimum concentration system Beyond hardware a major strong excellent. and data ease require were result trial workflow. service no time performance, the the reliability XX% to visit inhibitory remarkable WAVE result. engineer failures of of reportability, use A and was that measured readout labs to and runs reported There

specimen testing all the pre-analytical random were interface After access simple with a pleased during of and the intuitive ease ran training, the lab trial. operator few preclinical of use, technicians capabilities. hours Operators workflow,

both trial the we and gives a confidence success, the in a to us was trial take preclinical great turn, clinical In conclusion, product which have to right design commercialize.

start start clinical is WAVE of all systems to external and X been manufactured. the trial, the The have test Negative clinical in necessary installed sites. We are all trial kits which been have now imminent. includes sites ready Gram

thirdly, And our increase to testing into offering isolate wallet followed includes with areas initially in customer testing. the leveraging market by and As to the EMEA, assays share. technology the previously commercial earnings new in in outlined to map holographic market customers applying position our expanding PBC calls, maximize engagement by WAVE's diagnostic X-step of U.S. imaging prior other susceptibility strategic existing by road our impact and

business the of by commercial rapid the company path strong WAVE U.S. of contracts flow to signed uptick the overall First, sets the base testing launching our commercial customer converting and implementing have susceptibility already positivity. with reducing now for ahead approximately initial on platform of a We cash while longer-term XX% a provides also appropriate WAVE and cash existing our to customers launch. regulatory needs clearances

as We annuities Gram comprehensive by the for comprehensive estimate Positive Xx a isolate into labs Secondly, same an and to on PBC X all isolate provide can susceptibility isolate by by solution WAVE assays platform. expanding launching testing, well we our grow by the testing. we assays, subsequent PBC offering incremental with menu as diagnostic microbiology customer for existing

This WAVE's competitors. isolate in cost with revenue contribution a growth emerging very attractive is PBC low margin coupled to compared structure and traditional given

susceptibility concurrently on testing Gram to assay our ability continue our develop demonstrated well samples. We isolate Positive as PBC as produce to have

other market further. capable anaerobes development completing yeast assays, also microbiology expand see even antibiotic pharma, addressable we of and WAVE's with as with could Finally, WAVE which along opportunities such

WAVE's expand We benefits imaging improve patient to holographic ensure share road continue wallet expanding technology customer grow while outcomes, delivering to and finally, our WAVE's on strategic map of to focus addressable share market further the we market. maximize

this operational preclinical to critical We all WAVE signing a partner. for and results, focus strong we end, ahead drive milestones. will trial decided this development strategic now on of our more and achieving focus believe Accelerate To value further stakeholders have with

an focus PBC bring we with the announce system worked on incremental assays WAVE capabilities. along with also menu, to further in financing through excited company capital are to our developing additional delivering Gram to us XXXX. The WAVE's fund demonstrate to Negative lenders FDA-cleared existing We and allows to

financial the XXXX this results. QX I cash over to runway system discuss turn milestones further with for we program strategic value feel to our now have in David? increased now ensure partners. strategy these value-inflecting to an demonstrate will important deliver the We will turn, and David WAVE the call

David Patience

quarter, margin Gross quarter, approximately sales. $X.X sales to approximately in by XX% Thank XX% $X for low was good for million net you, Jack, in everyone. was the same the compares year. This for prior the driven consumable by afternoon, in the double-digit Net compares and million for period which was recurring the gross a were product increase period decline mix. same overall in margin approximately The to growth driven the year. prior approximately which

which the result is Selling, of include noncash the were overall administrative $XXX,XXX same in stock-based for approximately lower quarter, year. expenses approximately the the expenses The employee-related expenses. million general and $X.X quarter for in a SG&A million period to SG&A in expenses compensation. $X.X prior in decline compares

in compares the same prior noncash period the million for for the approximately expenses lower a in The which in overall year. WAVE development of $XXX,XXX to $X.X R&D expenses Research and the development compensation. result third-party expenses is were for $X.X million expenses program. include R&D decline for stock-based quarter, quarter our

loss quarter approximately $X.XX. quarter a for resulting net of share $X.X net per net Our used million, the Cash for the financing. $XX.X was in loss of was approximately million

used key as convertible to quarter onetime of and for a payments $X.X cash partner. the notes our well outstanding notable million a approximately payment nonrecurring WAVE of development X.X% as both Our includes for the repayment

by time, milestones call cash focused As expenses reductions the to previous XXXX. burn the critical summary, our significant continuing driving WAVE open operating to in are on quarters. to are discussed In burn, calls, this through the the significant provides us in delivering drive coupled raised, funds take questions reductions covering and these end of cash At on continue the program coming we from with happy analysts. and we runway new the in

Operator

from Mr. come will question first the Blair. Andrew and Instructions] [Operator with William Brackmann

Andrew Brackmann

you as as drive we do rapid just uptake? Agreement in I the trial we But as to think what of pioneering of AST Maybe about sort inflection advancing results results, Categorical Agreement to levels the here, on look and looking Jack, and guess, preclinical what full other of sort Essential be exciting. the think field, you you certainly the define should needed likely words, success? clinical trial move for are and

Jack Phillips

for thanks again, Andrew, question. the

my It it's for trial weeks. success really So milestone, way trial paving of preclinical to was first a the here the big and next prepared all, mentioned effective in as clinical us the an coming yes, the was company. in a comments, start big for I

really mean in platform, clinical stakes. And I table question diagnostic so that's -- performance, really around specific to your any most that

you data for that's be so And testing, really key that the there's parameters will CA X to AST approval. and EA are that The and mentioned: rapid above microbiology submitted FDA in XX.X% factors key performance FDA. X the requires

the And so given has where really press bug-drug stated successful as the the is we're we and combinations at very shared and samples fresh us on -- is need complete And of data we in to be. to our that confidence performance trial, result we right preclinical released that's of again, and samples. as we some clinical produced the just on the that. of release And this X,XXX that contrived now, a mid-XXs, where we great trial a a -- solid in

Andrew Brackmann

color results, any And that I decision? that partner. Perfect. what a focusing sort around comments guess, I you more just I of milestones how the And strategic of bit achieving little led here, if now might forward? can preclinical switch just guess to conversations these on the on then moving sort working these maybe further partners trial with about gears before think give as with you could the

Jack Phillips

Yes.

with class WAVE unmatched from average. Time hours on we're strategic itself. by which all obviously we with We've at reliability. to now unique. results able spoke demonstrate we've what now a is up study, of So I the lot the because to interest about. preclinical to that And have workflow, a this, in it's the result X.X just delivered partners really completed system It's for building been doing

then panel. on we're Gram we're that as to 'XX. will set for through secure our funding. that funding, comfortably it to but if trial very we were able submit ultimately get planning, us clinical to us the our so time to conduct and David is became PBC may to FDA clear speak clearance which it, to going up And it us do WAVE the will to Negative side strategic able FDA through and get It

to our we path have process the in that went for the the value seeing all and and thinking we're forward the now about data And way that of maximize ultimately, because confidence it's for is this, we the end, options, we as stakeholders. us believe best we the absolutely best absolutely And the through the in so solution off believe, platform, preclinical. the right

continue partners. ADLM we strategic And so to moving partners work meet to strategic at will with I meetings week. had with forward, last

have partners the in coming story. up following meetings that interested are to We those

with also We share and doing that we data that generate, the well. be strategic the we'll have as to we -- continue partners

Andrew Brackmann

low that just through for to mid-$XX one balance raise. forma XXXX? lieu the your target you maybe on us gets comfortable sort you And somewhere maybe for pro cash and this Can get in My balance. funding then, just on of range math cash million of bridge David, your to you of help

David Patience

Perfect. Yes. you question, Andrew. for Thank the

on it's base. in on milestones we've that net forma. But proceeds also a for driven our in yes, and program basis, strategic cost-cutting while a to So quarters million continuing the it's delivering prove significant WAVE out initiatives to key preserve pro we're customer recent really excited the mid-$XX our

we delivering second a about at our We've key milestones which down you payment Jack cost we number. second the with WAVE quarter, a of within expenses, ready but R&D the discussed, are second XX% burn, clinical our milestone quarter-over-quarter, burned able then bring to team X.X% with quarter with WAVE, while Really the cash prepurchased repayment preclinical. excluding the with clinical were as quarter and -- included our our adjusting the R&D are Starting trial, of we million. after partner, the notes XX%, very all materials, go down quarter-over-quarter. is cash at looking net look and to And the of that in trial development a program also financing delivering $X excited with if nonrecurring also

further to reduce able significant second basis. we is during cost-cutting were moving about which further But that the down a on our we measures going SG&A SG&A, bring forward. implemented expenses X% quarter, cash also Within to quarter-over-quarter by

milestones. that a Our to on on looked target goal as a initiatives of cash operating priority WAVE we've way focused our get cost-cutting about overall get to million, with the about and there. strategic to of $X excited at We're is we're burn really

partnership. Additionally, XXXX to contractual we other time and for product XXXX, have do bridge portfolio our from inflows folks obligations frame through cash the with into on-market

Operator

to This go concludes our question-and-answer session. to Jack over I closing the turn remarks. Mr. like Phillips ahead, back would for any sir. Please conference

Jack Phillips

Thank you, everybody and the into for call thanks joining today.

accelerate with a resistance. globally rapid on are XX patients XX antibiotic million. just exciting journey here out, next-generation we're WAVE year. people Sepsis continues quickly. are deaths platform mean, close for antimicrobial to X.X reminder, million attributed the the I people I impact solution to Estimated very, each million As a to -- XX to very optimal therapy get susceptibility on about bacterial and

this health care with WAVE, that have with So And that. has do testing, is real-world issue we addressed. an opportunity been a to rapid still not just susceptibility

continue move forward new that great night I advance want to funding the for milestones been and thank We've clinical we're appreciative trial. our working trial preclinical to We forward. milestone the with 'XX. us tremendous company our fund and start gives that to was WAVE through will a day employees. confidence were and The to us able success hit thankful that very to

board. maximize identify AXDX the strategic ultimately value a And of for then and finally, with for to we're excited across WAVE future stakeholders partner all this,

So much, wonderful with very and you thank have a that, day.

Operator

Thank attending today's for has presentation. The concluded. conference now you

disconnect. may now You

Accelerate Diagnostics (AXDX) 8 Aug 242024 Q2 Earnings call transcript