Earnings call transcript Q1 2023

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Operator

Good afternoon ladies and gentlemen and welcome to Aspira Women's Health, Incorporated First Quarter 2023 Earnings Conference Call.

During the presentation all participants will be in a listen-only mode.

Following management's prepared remarks we will open the call for your questions. [Operator Instructions] As a reminder, this call is being recorded today.

Leading the call today are Nicole Sandford, President and Chief Executive Officer; Marlene McLennan, Interim Chief Financial Officer; and Dr. Officer Officer. Scientific Chief Phan, and Operating Ryan After for Q&A. remarks we the call will open the prepared

Before I Securities plans. events statements this future as of we performance, that will call, defined everyone begin, XXXX prospects to under would including like future statements the Aspira's made business or Private be Litigation relating Act remind Reform during to expected forward-looking future and

results such anticipated assumptions, materially company the believes and subject Although Health actual statements reasonable many based upon from the control. expectations and in that risks Women's of are forward-looking reflected differ outcomes beyond uncertainties due are to could Aspira factors impact the and to those

information, on by risk actual notes set factors in and of statements. or directed any to differ forth most as forward-looking The company on cautionary in whether that obligation law. to quarterly a Aspira's the from those assumes otherwise, the annual materially today's in forward-looking set supplement well to no except as the XX-Q cause with events could as Participants future or of for the Form are required factors report as release, press update new forth statements, description SEC a XX-K results Form filed anticipated report recent result

I'd ahead. time, call over Chief go Please to turn this like At the and to Officer. Nicole Sandford, Executive President

Nicole Sandford

our portfolio brief for open first and Phan, conference and Interim update After questions. respectively good and Ryan before operator call Officer, Marlene Scientific XXXX a we provide remarks, and afternoon our everyone. you prepared I quarter you, performance Operating Officer. to Ryan to Financial With Chief Thank are McLennan, financial Chief like Marlene me on would our call. product the our will my Dr. today and welcome

yearend a review make a of this fronts. have call, since few the weeks with quarter. our number begin to progress performance our on In earnings of XXXX we me Let continued

OvaWatch in buoyed the first of quarter volumes. the reached in OvaSuite for highs. in revenues December record and part were to quarter new after about OvaWatch XXX launch the from sales X% total Our tests of performed the contributing total launch, full A

has strategy OvaXPlus rapid first one OvaWatch adoption performances volume community. the been Total of a that year, the has by been by company. the trust Our to increased with XX% and for strongest the recognition last of established quarter brand OBGYN leverage the ever recorded product of over

focused OvaSuite appears portfolio Our the pivot awareness entire tests approach marketing physician of to effective. be a for more and to

progress Aspira our seen Laboratories channels relationship and as BioReference with sales We alternative such have with our also synergy relationships.

result a growth XX% XXX. for full efforts cutting simultaneously of the by and time from As these doubling expenses XXX sales number achieved of nearly volume and representatives marketing to tests we sales while

volumes. ordering physicians our new increases saw also average daily We in test and

with As majority by newly to tests were the led accounts. quarter is launched bill products, larger not covered of insurance, of patient common OvaWatch number first in the which

patterns collection be appear across portfolio. historical our OvaSuite Our holding to

the rest in selling some for the of volumes of in volatility shift create the the expect our average we However, year. price product tests to

focusing broad with contract announced our revenue leading key as are March payer. We in a to a national OvaWatch under existing be on reimbursement driver securing covered will growth that and

went code OvaWatch In into April addition, our specific PLA on Xst. effect

that the catalyst continue of to and the a to coming for use OvaX weeks as make accelerator as sponsored an our We progress the with national and payers regarding plan clinical study for publication an OvaWatch. expansion expect coverage a utility of for to the remaining announcement OvaXPlus in

resulting continue decisions. timing aggressively execute we'll strategy, intend cash While impact we upon as to We of adoption monitor payer that we needs. are provider our the closely successful, cannot be the confident driving will we and on strategy our coverage our reimbursement control

progress our performance. much reductions remains to I discretionary as turn through to believe spending. as our on strategic now prudent in cash possible me it our runway extend operational Let

the spending $X.X million in compared XXXX $XX.X our operating quarter between first the We focus in cash reduced of of in the quarter result we cash a $XX.X $XX.X personnel million and reiterate to As cuts the to last our utilization target continued on and to operating containment, first remainder of net million. year. cost be significantly for XXXX

cash of our keenly identify the ending million, first quarter of are liquidity. aware additional sources need $X.X Given to we balance of

with pleased positive meet to has to the I'm continue launch see potential OvaWatch We and of momentum the partners created.

needs gynecologic have products to proven in capable diagnostic We ourselves to of launching health. address innovative be unmet

for a are the company. any joined than partnership time at discussions We stronger position in since I

securing have our by to provide cost Lincoln continue will intend by these the the a beginning transactions to increased have the the top that compared attract in market stock close a next and of access closed especially We of the years to to are These meantime, and capital, access investors an to utilize to year quarter microcap implementing to over tools companies months. with agreement efforts valuable we prudently at increased Capital. significantly capital Fitzgerald In that purchase We this gaps. Cantor one recent Park and have to partners three been by facilities funding attractive $XX.X that agreement our ATM committed priority. with just-in-time million sales make since an

to strategy talent has helped sound retain attract [ph] performers. and us Aspira's and our sciences and top

very outstanding Jannie the members, experience Our Herchuk, attract three attrition times. we O’Connor also need new passion bring They Vos. and these to Stefanie low. remains able Cavanaugh, in were board Lynn and We challenging

the Ryan portfolio. my now With at closer product our to that, over call it turn a for look is to pleasure

Ryan Phan

on to continue front. that Nicole. the development am say we pleased to very you, make Thank I progress

been very masses. received Let women in as presenting risk well with launch personalized with assessment since physicians last OvaWatch a adnexal has begin recent provides OvaWatch. it me the by year, December for

management evidence, was including masses, review be decrease to so The real utilizing the Frontiers surgical OvaWatch removal in provides confident of reduce and manuscript the can premature peer adnexal for physicians Medicine safely accepted backlog. clinical validation in in This publication ovary January. in OvaWatch publication in

view is As lies for OvaWatch to a adnexal done. are our true excited with managing masses. test one-time test consideration. as can whether patients, a clinical to monitored a not as OvaWatch's work of its including to to workup monitoring physicians patient, woman serial potential the or determine continue OvaWatch surgical as be benefit we management have available a Currently additional or needs

adnexal would decision her testing or risk to multiple serial for a the This monitoring up refer to to test, mass personalized times OvaWatch As woman's course status. or the will physicians physician's additional on guide the follow masses monitor surgery. use

study of draws. multi-centered patient periodic clinical in blood a large via prospective additional We continue to follow enrolled a

the to we OvaWatch evidence quarter result, be third as a collecting in this the serial We this the completed study As monitoring support are to year. real-world use anticipate a of phase of of assay.

to of Moving diagnosis endometriosis. EndoCheck, in in the our development test to non-invasive aid

the on we development consortium internal internal with Harvard's and the efforts succeeded cataloging recently Cancer significant with a We both Institute. large number available of institutions samples are milestone our about development assays. for and samples of is biobank. development needed Starting by led making program progress our in of previous progress, identifying a Dana Farber patients' concern the development a the own of from given accuracy our This

year. focused assay in those of test validating of generation launch process second our remain the in the half are We samples. this endometriosis using our on of We first the

for research continues efforts to to be data our Through the XXXX. our we partnership sufficient Farber, respect to with goals cohort enabling have With collaboration to is expect productive. development us endometriosis This meet track forward. Dana project obtained collective move on

targets, the tumor recent the good on because other to to or for They cells development expand to with easy Farber announcement compared from circulating of are Turning we Cancer are target are appear extract earlier early the like Dana our samples to an based a microRNAs cancer microRNA diagnostic collaboration and Institute, include a blood stage proteins. test. very ovarian excited with partnership testing test

molecular risk Investor Elias, non-invasive May portfolio. test portfolio the Day assessment discussion will on base become our We new our our Harvard to a a during Gynecology OvaSuite featuring physician R&D School part forward Kevin collaborator, XXrd, Dr. of deeper Medical having look on Professor. This

will now discussion Marlene turn performance. of to Marlene? I for financial

Marlene McLennan

$X.X the compared XXXX The XX% XX% three XXXX. decreased period primarily in for Thank the compared in for X,XXX X,XXX by an performed same the Product same to XXXX. for was Revenue to $XXX months quarter, to March tests was in of XXXX. for increased increase increase in ended million which revenue an XX, compared revenue test you, $X.X OvaSuite driven three for increase months million, period OvaSuite during performed $XXX Ryan. to March X% XX, to same period the the per ended in XXXX,

the seek OvaWatch to be volatile test XXXX per adoption revenue expect payer on test. as We we during

to XXXX to compared XX.X% March trial Total March three and were million the expenses for same primarily and in a months decrease same for Research reduction consulting period in XX.X% clinical $X.X to was the million, XXXX. in the The ended $X.X costs. was due decrease supply XXXX XXXX. period three development compared XX, X% XX, a of for months for profit ended margin the

to months March decrease in reorganization severance primarily XXXX to due decrease the our XXXX. a period the force XX, million, in cost, Sales and XXXX. The same ended quarter due marketing expenses first including in related for $X.X a was of of to three compared were decrease personnel sales XX%

same used XX, million, legal for personnel million a months three XXXX. XXXX. in outside XX% $X.X result cash activities period decrease $X.X expenses XXXX. in was in March The March XXXX period was months due in were of XXXX cash This equivalent General for to ended $XX.X in cost Cash and XX, Total as of and primarily taken approximately the XXXX for to of cutting costs. compared and the compared three million. consulting the the ended personnel, administrative reductions same and to realignment XX, $X.X was operations decrease is March million

ATM $XX.X an agreement secured for secured and purchase for sales we soft agreement February, million. $XX a we In March committed in million,

these generated quarter. agreements the close for As facilities a total the Nicole first utilize next to basis funding to proceeds We of on years gaps. three mentioned, over to $XXX,XXX we an as one intend needed these in in

I over it back will Nicole. to now turn

Nicole Sandford

May was for Marlene. potential diagnostic on the our Ovarian you, and an Cancer opportunity resulting Thank business. presented for reflect to World which Xth tools need ovarian better Day, cancer the

our growth, for excited goal. We forward continue are the are proud and improve and women progress outcomes our we are to excellence across innovation operational of extremely strategic health doing work to

Operator? would I the call to that, like open for now With questions.

Operator

conference turn And I'd now over like to the Marlene. to

Nicole Sandford

open Actually, Actually one questions. ready we're questions. we'll for going I to have I think thing then to to, Thank for no, other open and add I'm Grant. you quick

X-for-XX board likely the transactions most and undertook stock be and a meeting, that. an our approved allow to remain interest about management analysis from X-for-XX would NASDAQ shareholders. to this sources during similar split between of reverse alternatives overwhelmingly wide of listing and shareholders extensive considered with Sorry capital protect standards week, compliance a our us annual variety of the existing to that in our Earlier

approved a be Our that as stock optimistic of Board performance to tomorrow and earlier of X-for-XX split, upcoming will morning. first of a endometriosis launch beyond. effective others, OvaWatch of including the expansion that reverse will and remain impact have Directors test a start at the milestones, the among end and the a was year split serial Aspira's of test the We meaningful trading today announced monitoring generation on

are ready committed of the with shareholders, our remain strategy. you, towards transparency future. our execution and firmly focused I We look to to

I that, open questions. will With for

Operator

Brackmann from comes with Thank your [Operator question you. first the William Andrew Blair. with line question. Please The of proceed Instructions]

Unidentified Analyst

previously today. know, is for maybe commentary this to more you are Bowie a what you everyone, doors has seeing how on appreciate OvaWatch us you taking accounts our anything get little Andrew questions. maybe can the launch accounts allowed You the for to able on in give you bit I into Could open into? of Thanks momentum. types this tell specific you color there? traction for and Hey about Maggie new the weren't

Nicole Sandford

been for Thanks I in and OvaWatch. like a priming test seen We've the a pretty in this now. interested physicians this Sure. Maggie. appreciate Candidly test have in pump been We've in the broad interest question. while particular.

of a physicians. existing piece a interest our related OvaWatch. course physicians, from number some of in was we've So new had ordering to and of that record new lot had of quarter physicians the We first

of and order fronts helpful it's new in on bringing So repeat board. on terms driving both physicians physicians been

up great OvaWatch to that, a really believe OvaXPlus that brand we adding said quickly springboard platform with trust launched far just that strategy the would found. we've And and built and that and proven be with so we've has when physicians that to we create

Unidentified Analyst

like another just so then it spend And quarter of that. looks solid on for Thanks here, Great. the moderation.

what eyeing that As evaluating about ROI how perhaps potential areas you you are think specific increasing spend? on you spend, are and

Nicole Sandford

think for focus products accelerating the on the remaining in that on steps that we are really I would portfolio. development

would sites that our of So, for not generation have tests be of additional portfolio committed to or to the to study we launching every will but we add-on we that open think endometriosis be want end in for we development, first example in for only expect the part which test, helpful the for future. in by year, the -- the which

So would be we that to resources. that certainly area look would one add

Unidentified Analyst

so Thanks much. Great.

Operator

the And Water the Tower. with line question. proceed next from with your comes of Yanchus question Please Sally

Sally Yanchus

kind you Oh, mean, that of further you're in expect be it you tests that's quarterly to volume yes. next was, or mean, you of huge the It do do sort same Hello. expect a jump. of at Nicole, do Hi of I quarter? to level increase? sort think sold the I

Nicole Sandford

So in kind conclusions will many we've and launch to into trend. it's OvaXPlus the the to legacy OvaWatch. both for gone we've about though continued strong OvaWatch as I test demand early for too draw QX, the of pretty say see

in that have us. past educational we season right a So the that continues pretty to That events is We've -- be now. physician conferences. good. on for conference and we're feeling priority in We're mentioned focused

tables be bump large to and product physician and a we of presenting significant we one seen holding after round see attend test about that have that. at And and those after we We ways out other will present present events, groups. and and and the to theaters

feeling we're that has shift that in has focus been been confident So appropriate.

Sally Yanchus

that? of they're full any or going you expect commercial have they a the, some good. marketing meeting launch? And terms sort some doing this idea launch this to then with like your in Do Okay, partner Organon, like of, Are anything sales you when quarter.

Nicole Sandford

have announced So I'm partnership not don't sure we an Organon. what, with

referring relationship with be to we year. last BioReference that our You may launched Laboratories

Sally Yanchus

Oh right, yes, yes, yes.

Okay, yeah.

Nicole Sandford

Yes, yes. Yep.

gain that momentum. So to continues

their is sales very working with closely team sales Our team.

Sally Yanchus

Oh, good.

Okay.

Nicole Sandford

in in And of to without reps, volumes more adding lot headcount. frankly, very the sales because other increase so a get we positive that's test of the been can in drivers, per the produce starting are costs of one terms the volume test for volume channels

team So pretty sales from and, that we're feeling confident getting the alternative have we our in we're that the channels. momentum and

Sally Yanchus

great. Okay, much. Well, thank you very

Nicole Sandford

Sally. Thanks thanks. No, joining, for

Operator

back I host. turn will no the questions at are further this there And time. the now presentation to

Nicole Sandford

another and I encourage everyone. you thank Well, take register for thank to to you just our us for want XXrd joining you to opportunity May event.

three about we'll and Those more changed; innovation, hear priorities. You'll strategic detail our our forward progress color, across excellence. And of the expansion portfolios. give additional product our have and around operational growth, you not commentary

much please join then, being sure So here. for and you thanks so make us

Operator

you your That does thank that disconnect and conclude please for We conference. your today's participation line. ask you

Aspira Women's Health (AWH) 11 May 232023 Q1 Earnings call transcript