OPK - Earnings call transcript Q4 2021

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Operator

Good day, ladies and gentlemen. And welcome to the OPKO Health Inc. Fourth Quarter 2021 Financial Results Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. reminder, call a being As Instructions] this is conference recorded. [Operator the now to like would conference to I turn over Ms. Yvonne Briggs, with LHA. Please go ahead.

Yvonne Briggs

to Good will all during without by subject including affect statements in call to remind operator. reports. LHA. SEC be this fourth quarter financial and and call various you, afternoon. will that be uncertainties results. I’d XX-K Yvonne materially such, the as SEC the historical and described could risks is of Thank the Form XXXX like on XXXX. Briggs results in Thank for you than Those for that discuss any forward-looking for subsequently filings, management risks Report to company’s today’s the forward-looking you considered other limitation, the filed of expected Annual XX, joining fact, Company’s OPKO year-ended Health’s statements This include, with statements made the December

of accurate the call Importantly, as contains conference any as after no XXXX. law, XX, broadcast, required this reflect this of obligation that by Except call. or to or OPKO events time-sensitive is the forward-looking revise of update February, undertakes circumstances live only the date to information statements date

BioReference will up review and President, we Vice Phillip open will results, Before After review. for then today’s Rubin, the financial pipeline quarter discuss Adam call provide Laboratories. the open first me business Chief and format Executive will Logal, Executive the then, Cohen Jon CFO, questions. call. the company’s a Frost, Dr. for let begin, that, OPKO’s will And we’ll review Dr. Officer, and Steve Chairman call; OPKO’s update and

over turn Frost. I’d call the to to Now, Dr. like

Phillip Frost

major somatrogon year NGENLA brand hormone thank deficiency. determinations. the Pfizer with as the school were results $X.X territories, pediatric OPKO pleased the announce FDA’s in our NGENLA launch Starting for for approval than billion. Canada the to Union several for forward issuance you letter. quarter record Health, and including pricing our well XXXX update. February to and the of Japan, and we markets, pharmaceutical US, XX European treatment response they we look financial on discuss was revenue with more as in is today's as in other name a afternoon receive in this for of Good In and business were disappointed launched Canada fourth joining NGENLA and we a to Australia. of growth complete division, with

and with understand and evaluating Pfizer OPKO work their However, to FDA innovative benefits children growth this its comments globally. start services. path the of deficient where forward, team efficiency will laboratories are and Since to testing the requirements better OPKO for has to are and the a hormone and needs pandemic, nation's the with product FDA’s bringing responded the the to BioReference committed Pfizer

As expectations closed a $X.X year result, out for the quarter and billion in BioReference exceeded sales record revenue. with a

Scarlet to Health, has testing For effectively the addition its it service, digital our capacity. the and operations of Moreover, prepared has two And years its details pivoted further and moment. with BioReference past will resources Jon health be performance in made on more for BioReference requiring the its in we routine a COVID both driver to future. tests. convenient growth a provide Scarlet patients and be managed expect

investment the with of combined will the other maximize closing upon OPKO GeneDx product in Vifor Europe $XXX the earlier for the SemaX France. and $XXX outside first up is without profits we growing Germany expand million top year in with It significant shareholders will the agreement of for in unit in to an SemaX the in COVID-XX about unlock business. oral sell of Fresenius, the States. preliminary Katherine mentioned GeneDx a entered now strategy In with into to semaphore this our X earlier next. symptoms. to to month. of and we're outside in the to by status in of cash into Ecuador become Stueland, value The respiratory plans we for commercial United RAYALDEE sales for part Phase We're companies. clinical definitive line Spain also of significant finished and Co-CEO US, entitled shareholders, a the continue launched partner demonstrated with milestones. the RAYALDEE data transaction. closing into in participate time, Gem shares patients. rollout Latin our we anticipated that value capital. improving This RAYALDEE and of Switzerland a And RAYALDEE With launch receive enthusiastic is trial announced launch OPKO [ph] equity As and markets OPKO’s results December, assets of genomics million in million potential of and XX market CEO stake to I American Last resolution Vitamin from to record small D results or planning its our

the presently. further on is our believe towards pharmaceutical step better one Rubin, market GeneDx up doesn't recognition of The call over business. to Steve? commentary in Steve the who now will value I've the value. transaction As past, stated turn actual adequately we provide those I'll assets

Steve Rubin

today. afternoon, joining us you Well, good everyone Thanks. for and thank

BioReference services we its return while to able record pandemic and mentioned, business core the surges was volumes. COVID for -- year revenue and are testing, to pre Phil respond began As effectively in to recording to

NGENLA well. long-acting secretion approvals Canada Regarding of patients we treatment growth endogenous have of to our growth the failure recently the as pediatric growth quarter, and human an fourth inadequate In one-weekly for that announced hormone. for with hormone pharmaceutical who and NGENLA NGENLA in due approved jointly business, recombinant was Japan. EU Australia Pfizer the is granted

major which in within both pricing agreement next and outside Pfizer mentioned, OPKO Pfizer, expected approval NGENLA in markets is XX worldwide Phil the in to payments the Japan. months determinations XX. February US, Europe on milestone Under regulatory As the receive launched upon eligible of Canada with and is

In sales GHD trogon on of gross addition, the entitled US, drug launching Pfizer's somatrogon sharing respective Genotropin of a primary daily letter Japan, will regions in US, Somatrogan. In to we're regions. the tier were yet Pfizer double-digit within profit for on of a Europe both upon sharing US the to of a and commencement Pending region, submission. tiered sales the within the royalties we OPKO response disappointed, receive net PLA profit issued complete the and FDA

Pfizer forward to do clarity once comments evaluate are we the We has greater Europe, are to determine from In gain the providing world. an work the with preparing is to approved territories best look meantime, after Patients other hGH. regarding Pfizer agency of the we Pfizer and requirements. the treatment FDA FDA and intend product We around launch seeking and with OPKO the benefits path plans remain and the potential to Somatrogan around the to where update forward. been world. to committed bring pediatric so pricing the their able to in approvals in collaborating Japan

Turning now RAYALDEE. to

quarter QX IQVIA the treatment XXXX. of chronic low approximately adults stage XX,XXX were were as from secondary in Vitamin QX for previous XXXX representing reported from by a prescriptions approximately and follows. for as hyperparathyroidism Total in The X Our decrease numbers for and essentially unchanged RAYALDEE the to levels. X XX,XXX breakdown kidney in D quarter or disease

eligible this royalties. CKD. trend QX. up prices million had Earlier XX,XXX X% the duration impacted new patient pandemic Since the QX Germany New receive RAYALDEE More additional XX% by pandemic prescribers patients nephrology key a in receive additional marketing challenges well have in being with positions. sales milestone by X regulatory year. estimated bottomed month, The patients related executors launched of triggered with launched RAYALDEE QX RAYALDEE prescribed VIFOR million a payments in new launch a in opportunity for out sales X,XXX positions by as VIFOR RAYALDEE as double-digit year. at to an during sales With several later be versus this an product the European Europe million of stage opinion RAYALDEE’s QX are from sales decreased QX. and for downward than of suffering and the was in started and were the tied which RAYALDEE payment stable to and people million sales X kickoff nearly the were and We continue in total RAYALDEE of leaders XXX XXX in XXXX. launch or to launch number nearly presentation to starts onboarding $X onset approximately XX countries approval to milestones of prescribers authorizations received Tier by in at first in and expects markets market XX to large remained the XX from Switzerland represents marketing March. a led has Europe by expected XX and for people

pandemic, individuals in we of maintain of reduce XX our the order commercial progressively level to team a to size sales. profitability reduced approximately with the During XX% by

congestion, D endpoint targeted XXX range manner mil targeted body to day XX by dryer subjects. A patients. secondary trouble to breathing, primary designed attaining expect and of XX% than This of REsCue, with of announced XX. and by symptoms of XX but per We was were to symptoms two rise Time treat subjects pains randomized infected non-respiratory daily soon sites of the D X nanograms to per achieved chills hacking micrograms duration levels of cough or progressive XX and a symptomatic symptoms, from symptoms self-reported in December, a aggregated XX responded Meaning before hope placebo been remained XXX XX% was COVID-XX. Phase given X.XX In that shivering. Dosing were for primary Patients COVID-XX release seven or to with a was to to resolution chest of these poorly. the regain multicenter for same again composite elevated was mil top nanogram controlled sales reality study commercial began. trial a total pandemic as more efficacy matching to rebuild in COVID-XX Placebo that the to from controlled US. to line across will two-week adult D symptomatic with moderate quickly, enrolled growth subsides premium evaluate weeks before four XX-hydroxyvitamin RAYALDEE to entitled Double-Blind COVID-X sales strong and safety follow-up. endpoint the to well with targeted serum reality raise we One five XX pandemic by COVID-XX had day extended level of unchanged the we serum with one placebo mild resolution Randomized gradually mil, XX RAYALDEE, aches RAYALDEE trial by treatment that XX% or the versus increase composite patients infrastructure. capsule SARS the attainment greater or our nanograms data time study, one, calcifediol from five We our per the serum or capsules the patients level outpatients the in day

other Stage three increases having at baseline faster. serum of day days symptoms and or However, congestion Resolution faster When and dry serum was three more January, a congestion X.X per These days the at elevated XX D analyzed trouble conclusion XX hoc allocations, which for breathing, on manuscript top manuscript chest risk. effective congestion and in four was resolved is summarize faster symptoms respiratory chest chest together In above the days the average mil. when reality resolved line pneumonia currently seven XXD nanograms a The XX. post possibly data least and on topic cough. under with publication XXD journal. in Rx, respiratory mitigate posted accelerated X reviewed support resolution in formal was and the net detail. peer COVID-XX review data that from study we increase

a completing on along full FDA with study. currently and review XXXX X with analysis a design the hand Stage for are We QX them proposed of data the follow

progress the on a based with technology update Health weekly In LeaderMed agreement LeaderMed territories. CTP and year, other Group We to territories. retain a a To oxyntomodulin seven other made commercialize and products all China significant manufacture, develop Asia. last in brief September Here's global factor and Greater exclusive joint the clinical in develop territories. and for of activities. Since advancing in rights the preclinical we granted manufacturing, has in once the venture Asian these the rights agent

engaged long-acting technology in efforts currently CPTs of injections and required treatment. for CTP broadly to a number to also We're Disease drug disease Factor and rare that may to therapeutic development research In reduction other therapies expand in other technologies delivery the addition provide a in believe and VIIa-CTP our hGH-CTP market to be and applicable proteins the and Rare the use pipeline. develop we technology

are targets and a lead growth IGF-X Our hormone antagonist.

should Our expertise in development. and expedite this knowledge area

subsidiary care. a standard upfront value SemaX's SemaX to the to GeneDx, million, of disclosed million as XX, of January we and transaction aggregate offers with definitive acquire was into million as fits consideration of testing, as common Finally, agreement as SemaX provides genomics a approximately we stock cash, of have The on Based January purchase years. closing medicine it shares million our strategy XXX on SemaX's achievement commercial XX, price unlock in precision growth the $XXX comprised milestones wholly-owned entered for opportunity mentioned, of previously business based Phil to upon $XX and value as XXX of contingent the two over next and price GeneDx. advance higher

forma second appointed join at placement investors SemaX approval and largest to leader of expected of closing private SemaX Co-CEO the quarter in of of SemaX be for pro institutional Directors expected a in stockholders SemaX testing of completion genomic the the is As XXXX one this be into acquisition customary genomic XXX the will including GeneDx The most and advanced including the the GeneDx a providers analysis. is a million And $XXX the Pfizer. year, together, of testing the in subject agreements of transaction, the entered projected also Katherine from President million stock by upon SemaX Board of syndicated and revenue. Stueland, placement part with GeneDx US clinical definitive acquisition. and SemaX. to and will of a close conditions in private are CEO to and

me let turn BioReference discuss the to Cohen call to Now, over Jon? Jon Labs.

Jon Cohen

Thanks, good afternoon, Steve. And everyone.

Aetna COVID of growth clinical surge strides make a national the the business, million access XX preferred BioReference testing in due the Scarlet Omicron As core Phil to significant mentioned, normalization to volumes covered the lives. Health. acceleration payers. and for had continued expected to better of given than relative agreement complemented the by the specialty BioReference testing patient with continues with a variant, quarter executed in lab We their the

We are will most to from means that for their similar services this This the out-of-pocket United have Healthcare. in no with co-pays one designation, charges of preferred only our laboratories patients with or country lab which three BioReference. status is

We lives. Oscar a with agreement also executed for health, covered preferred their XXX,XXX

of the in Omicron remained general year-over-year, volume despite Our base clinical the stable business impact public on December.

X,XXX increased announcement period. quarter NIPS in is men relative result test. test vertical abnormal healthcare our XK of Over biopsy last have urologists. approval that been in older have comparison since acquisition have age XKscore to an total health prostate our approved our we who or approximately performed Our December, volume The FDA or and a women's the same used discussed specific has been age launch the as an the This tests including negative X% year-over-year, not use Ariosa than of LDT score a are of to or as we announced had abnormal of PSA an XXXX. years Roche X,XXX test, In the prior double providers XX its business, more tests rectal biopsy, by for test exam. digital XXXX XXX,XXX of performed

the new commercial plans With at for positive aggressive developed we approval, an plan converting have coverage XK. FDA to additional policies aimed health

XXXX, QX. are medical volume. over improve by our to significantly immunosuppressed many of The are in physicians compared violence large pre-pandemic Scarlet year, with in going accounts, testing XX% XXXX. service new including In This growing oncology launched levels In the surpass most to was the their the QX returned Scarlet XX% XX% In led in have we QX for Scarlet in oncologist brought prior or by oncology revenue. and to doubled patients, our for QX, grew to Health than the and academic significantly of cancer to more QX, centers. by offices. genomic patient pre-pandemic In that those received home XXXX specifically resistant grew centers drug and Health the well business urology XK. to oncology XXX orders which to over process Health utilize partnerships been addition, access offering, has volume

continues Our business. reference growing performance we strategic partnership added clients. in QX, our last grow, quarter, strong with initiative to the eight new hospital In reference

Health physicians been our medical Scarlet multiple addition, employed to including health with groups significant out rolled has large In systems, partners and success.

Now COVID. let me my turn to attention

During the sites. XX molecular than fourth PCR have quarter, in million especially compared tests pandemic began, performed significantly increased the COVID-XX million we of at QX. Testing tests. we a perform tests, X.X our Since million to RiteAid more result retail December, Omicron, COVID-XX as X.X in performed

care increases significant and QX. our point with employer, partners XXX,XXX in almost experienced sports, of also in retail COVID lines, and rapid offerings our performed rapid cruise We testing tests

We York one In the schools brought continue of providers school as others. to the for many district, be New new testing, testing we testing as largest well programs. City, school-based largest for XX QX, COVID on

We around be with on continue and community, city one we York opening the the cruise surge, coupled able testing for In rapid the testing the in locations New ships to the with Omicron over meet provider were new at travel the a needs. week's in to ports XX under country. assist State XX demands COVID time testing of XX lines, holiday largest and of the QX, one of to

All-Star needs significant COVID Many a NHL also the We at using large Bowl, game employers game, for safe in the work started of Bowl. have and the Super Recently, events. Pro their employees a the continue NBA testing for returning we testing testing for amount for perform to Collegiate All-Star at Bowl, provided the Scarlet environment.

we for us our commercial to Care agreed multiple In announce work other the of Health of a strategic national MVP rates. with I'm and Scarlet premium diagnostic demand to December, Scarlet necessary is women’s health, Health discussed, their partners. our we the proud testing payers have medically COVID-XX we to see the for venture offer negotiated announced blood including above oncology, members pay I've and that significant also comfort to in verticals, and across the now a in XX% specific Health urology XX Health which first As Scarlet their service. homes. continue US collaboration MVP population. to has million network tests have insurer the all for in coverage lives New additional offer to is of of services, providers Vermont and available the Scarlet service. individual XXX% taking grown Over York sequentially State now I'll CFO, volume Health’s this over through testing of patient initiated our are Scarlet advantage And you over now, XXXX. patients XXX number increasing QX seeing our of an to call now turn Adam.

Adam Logal

Jon. you, Thank

the are develop as our industries, mentioned, revenue than retail as as testing team's well school with and the we of testing Leisure John More our these in I’d pharmacies, execution the few was John Travel volumes like the revenue, quarter clients review financial year. of year billion, coming of during XXXX at result came detail, state as testing order through I which XX% from results, leagues, customized Before COVID as $X.X relationships non-traditional fourth nation's solutions. we COVID this more the highlight Overall with results governments, out. and highly districts. significant mentioned, local diagnostic milestones, over achieve these non-traditional to largest a testing to the Phil sports nearly our segment results for our channels partnerships of of In the with billion $X.X from a strategy laid including achieve

the nearly side the Mexico, million. operations of by their led $XXX plans business, growth Spain, Chile, our million reflecting growth pharmaceutical a result than international execution of total sales in our of product as from total of XX% million, $XXX $XXX including we each which revenue revenue more of realized market. and was of On over revenue And

million. to our initiatives, GeneDx Our $XX operating Genetics allowed investments make as Germline growth lab lead reported during significant revenue references, in the Scarlet, approximately core investing an which as of us Business, business, digital investment of loss including XXXX in in our growth long-term our well transformation bar

provide the cash we business. We position, invested with as $XXX financial NGENLA, on the million the our our launch projects, near-term into cash of million in cash, strong year recently which available the In addition, resulting credit in well with improvements of JP for renewed of R&D as reality million side in European under flow our in liquidity. about pharmaceutical facility nearly ended a approval are commercial also with Morgan, along $XX with $XXX recent

result in our announced receive addition, with up XX We recently GeneDx achieve its $XXX transaction a receive us XXXX from on transaction cash approximately forecasted proceeds will consideration of addition in GeneDx of net SemaX to $XXX and strong revenue put will considering combined million the closing. also shares additional after the SemaX well position. million cash escrowed In at targets million transaction cash of can for the as as XXXX. business show costs, financial hand The in

Turning $XX.X of per the losses of income net period. to expenses operating loss well loss compared or expenses The quarter to legal consolidated by non-recurring million, compared per share $XX.X results XXXX a the of to related basis, for we $XX.X impacted quarter XXXX as of million share income million. for XXXX our of the was operating reported the quarter were fourth $XX.X million or fourth the $X.XX on transaction. the operating for GeneDx as diluted XXXX, Net to fourth of $X.X

services from for to testing million increased as to due result the a reported significantly decreased the variant. the revenue demand to of $XXX.X services XXXX, segment XXXX diagnostic period. overall When our Our of from revenue higher million guidance quarter for omicron $XXX.X from fourth than comparing XXXX COVID-XX the

XXX,XXX As point-of-care during John nearly highlighted, tests diagnostic we the quarter. performed

care, testing test right as overall margin. serve, as year-over-year addition, saw through the sequential declines cost volume point higher having of our portion In volumes a in retail we came result Aid our Rite significant partnership to with of a of and gross a

commercial including digital our platform, the to Scarlet mentioned. Jon invest continue organization health Health, We in

team. Network near health on and invested National Phlebotomy focused GeneDx operating commercial We term and investments. our remain digital We growth our the a have also we commercial in increased profitable on in investment

an for operating year revenue Pharmaceutical the for $X.X quarter segment, fourth period loss $XX.X period $XX.X million to for for Operating compared million decreased $X.X of looking the of XX.X from reported Pharmaceutical million at in inclusive Revenue from was $XX.X revenue reported of from compared revenue. to the property, our Moving revenue. we R&D the the and of reality, research XXXX product the million RAYALDEE XX% to million fourth quarter intellectual we million of of XXXX XXXX, development million a XXXX of of quarter development $XX ago, expense to Overall related slight reflecting increased $XX.X $XX.X million, spending reported compared for revenue compared in in fourth of segment of period, Somatrogan quarter XXXX XXXX loss period. $XX.X $X the from was fourth including in million program. revenues million. the sales million Somatrogan reflecting the on a $X.X When million our XXXX increase to comparable of XXXX. to transfer The

forecast. we As year. between We PCR, our the we've into of and performing test antibody point care built anticipate XXXX, X.X COVID-XX look assumptions during following the into million X.X and

for these well capacity of increase. have in We should excess levels demand testing

could have COVID tests. million already Through performed our revenue XX, we beyond Our approximately X.X February guidance. expand

and So our channels demand more and our our range reflects activities physician testing education sports, guidance general channels of remain. stable testing with from leisure public

occur, could not significantly higher we have COVID a guided. testing see in any than such we revenue for assumed of the new XXXX, surge surge As remainder should

GeneDx will will Clinical the close during the anticipate the of grow XXXX. Our second transaction mid-teens. in We year-over-year business quarter Laboratory

the be loss time million closes to required, be regulatory the shareholder have of given disposal, the actual those and forecasts the full a given included XX However, on at the approvals until we forecasted shares have and gain will transaction closing. received not marked or year

RAYALDEE, and clinics rates. declining volume anticipate infection COVID and improving a revenue result growth the to double-digit of For as -- CKD we assumes assumption access

assumed that We in a would has not pricing regulatory milestone obtain the any received Pfizer have trigger regions will approval payment. that of

XXXX. to forecasted Pfizer begin a profit have we share As result in with a not

in the have sales, not XXXX expect expect but launch product on forecasted countries months. to launched plans we recently we vX Germany has in commence However, royalties beyond which other to and RAYALDEE has in Canada. during coming

while pricing million $X.X billion, in that, to to revenue we other XXXX $XXX With forecasted expected, revenue $XXX million. $XX $XXX for from million $XX royalties between including overall have before establishes expect products of $X.X $X services their and of revenue billion from million We and be milestones revenue million to throughout billion, territories. of to

We million. uptake levels. Operating up amortization approximately $XX expense an expense, million as Operator? $XX as that, With development expect the non-cash accelerator research costs the $X.X results include be of as $XXX choose which and various volumes, as at may we of I'll to $X.X million open in expectation depending levels depreciation between expenses well assumptions initiatives of to reflect billion, commercial billion of and and the investment call to our testing which BioReference, well on for delay, questions.

Operator

We from Cohen with [Operator Thank you, our Instructions] question Ladenburg. have Jeffrey sir. first

Jeffrey Cohen

And for questions. thank our afternoon. taking you Good

through or what XXXX So there as labor you've and the a talk of year beginning about can the of and labor few, Adam a year? particularly based QX, guidance the you any anticipation the expectation maybe far this little and and on projections as front, your outline, balance on through seen for bit

Adam Logal

most We beginning increases on talent. of the to some Yeah. at some like macro people the end and attract seeing the in this staffing increase I think saw we to we've during make – have like labor did we to costs the of that shortages – a year, basis, year of overall, seen

end we period. across the during adjustments as under same accelerate, of the That seeing the are seeing, everybody that is pressure seen some come some did industry. we are pressure you labor we probably to So haven't the but know, the make year we

Jeffrey Cohen

comparison Okay. size as you the the about Canada as talk a territory European Australia it. could the well US far it of Scandinavia Dr. Japan, as Steve, as – Got and as in Frost some relates to as Union, current or now, and please?

Phillip Frost

global. So our third, to just get throughout was US the works share, And which pricing gets pricing will Europe of what or majors, is so the would once Japan selections. starting on intuitive deal a which your our mean as second. be Pfizer world rest for that, the to geographic it the to biggest, shipped same European and I we territory, you average, is Japan, our if actually agenda say and the is goes well way remember, profit sales accomplish decide approval encompasses

Steve Rubin

and I other market you add is. could that and the US the what additional to jurisdictions. such as the Europe And of just Australia, have about equivalent countries is Canada combination then Japan

Jeffrey Cohen

to for heard Okay. if Got full it. back that for you XXXX to And correctly, projection Adam the – then testing was I the XX the That's very year? volumes, XX helpful.

Steve Rubin

Yeah.

we've seen after into down year. testing come So pretty this week volumes quickly Jeff, week

So significant do have a off continuing testing But seen through we and volumes year. drop post we mid-January. we've the

Jeffrey Cohen

Okay.

So on would less from you you're be the or than anticipating what – overall now number, understand look year now that at X.X your first that weeks six balance the conservatively? based of

Steve Rubin

Yeah.

forecast of activities. declines So the that in have based But school we're seeing leisure significant well on remaining generally sports as as that and testing some we other using volumes. years our league testings

Jeffrey Cohen

lower? quarter bit your lastly, quarter. commentary high cost for for then outlook the goods can the And of on leverage there it. bring -- that Got appeared And a

Steve Rubin

the volumes most that and surge mentioned John result, in from, much business. basis declining, higher driving than a testing staffing our as and a points as surge little amount saw so increases aggressively capacity at spent we seen that where serve level. retail point time a US the and Omicron people and time. the to at some Yeah, price not our but to we a play in, a to come to which testing. Xst had to We've of as taking during margin December that of significantly early the back coming well the wage as comes with first to down It had traditional of and when over you've of the of of testing quarter the came Omicron occurred down. the get seats staff part our we had hard down pay is the catch-up surge anticipated come, fourth taking a in result, bit time case had lower channel up point-of-care been cost significant It's surge significant came we our believe,

So overall of gross margins. in drove what are the those decline two combination the

Jeffrey Cohen

Okay, perfect. questions. the taking Thanks for

Steve Rubin

Jeff. Thanks,

Operator

from with is Raycroft Jefferies. question Next Maury

Unidentified Analyst

questions. Hi, Maury. this for Kevin is taking [ph] Thanks for on my

you just I the of goals long-term how one business? and the was Could share the and first GeneDx. your impacts in The for expenses for say about near-term growth was revenue GeneDx what base had XXXX, and sale

Phillip Frost

Thanks. Sure.

revenue GeneDx $XX XXXX. about business loss an $XXX during So that million reported of of operating million. We from generated about

puzzle So the piece today. a part it's have it the – does of small of overall

grow business expanded and expect commercial our with to We outreach Katherine's in joining, that capabilities. out significantly

business that meaningfully expect grow in target million to set do we XXXX. So $XXX and we've revenue for a of

significant but the of So growth piece a our that not on overall, business, meaningful reference. of component

profitability us important forecasted to segment we it I is have allow removing think by losses, improve to does those over is, of thing the the the diagnostic near-term. expand overall our which operating

Unidentified Analyst

for in the of Okay. terms Great. of COVID Thanks. earlier, the testing was year. And sort rest of then mentioned but this just

that higher references, before it retail. mentioned a you have of ratio versus contracts relatively You

So, scenario contracts have do or becomes a and not you is going these COVID you where likely a still that forward endemic a scenario? see not

Jon Cohen

Jon. Hi, It's

So of -- right thanks, Kevin. little independent bit now. factors It's a lot -- there's -- a

to would kids fall opinion to off Because think to they're test think there's this that five, up off, First this there'll children I I quickly. going June. under about an a not into don't what are the to vaccinated opinion unanimous so I think don't which on do going or with it's certainly schools decide the I be off going is areas. school to held a they're still getting say not going going the approved to vaccine to impact back goes vaccine, I that will kids -- of will have unvaccinated on. and or whether The that have is is for be there any going to whether be kids. take reason probably an school, to in want be be system going is if then -- of they've some lot impact certain to

So that's the thing. first

quite they're going back don't I cruise the think I line honestly, think to off.

in they're of are dishes, the sort petri there's because that and to but past. is that the the again of a going a think of to year, through lot call whatever cruises they to floating in continue guess, on want they test end but I issues

off We to sports bigger I resistant going going what be predict for the for do The mention I finished, are testing. we've did a who script that NFL right backing opened right protocols a probably sites year training to ones part they're to now. up the multiple going go now. I the obviously, they're COVID are right good through think others their to did -- for, NBA on now. can't for leagues while, the some of except and go others screen the multiple, But

through of longwinded sure. our I a can't answer. think, surveillance to lot It’s tell goes tell testing So you, of the on year, it's for basically end you but the it I contractual a

Unidentified Analyst

Great. you. Thank

Operator

is our And with H.C. Yi from Chen next Wainwright. question

Unidentified Analyst

behalf of on have [indiscernible] It’s I guys. Yi. three questions. Hey,

the is think And of finally, XK if in kind one any but I Test depends? the it cetera. so -- but as and relevant, much. first your guidance there going on things volume and of obviously, how testing the or forward some to are maybe you et XKscore revenue kinds asymptomatic guidance answered reimbursement it, year, are -- I potential on about forward, even comment you've your moving relates apologies but -- potentially tendency for expectations any missed of also any any for volume briefly, know other testing dependent spoke panels being COVID this plans. testing my on Thank The business PMA looking plans testing the approval, commercial for this the Scarlet for And at opportunities for I you

Phillip Frost

Sure.

the first take two. So I'll

quite assertive We have a for very continued honestly. plan XK

a into ton may urology add We the sells have salesforce a we that you know to which country. -- designated have continue we to across only, offices

on a FDA the already to of four In to XK, approval on are in ago. may payers we had -- based already talk you we've we to addition, about but imagine home don't. and a as the much many how do I uptake can of mean makes test of urology urologist because it some a easier you heard we lot And the XK commercial about then plan -- in interesting order the job it Scarlet market the significant because have in relative Phlebotomy do have them for weeks an have have offices, addition, announced which we

XK. the for provides So across increased access country

be lot nontraditional On home of with the have have drawn. to Scarlet, interesting people -- there as blood which need opportunities multiple to that segments including products and to mentioned refer I continues what a who clients we multiple is

XXXX. So the of think of than question entering scarlet we're -- hopefully turn hopefully for volume more to its I a in hockey I'll guidance then Adam. over the more And and into stroll [ph] terms a stick

Adam Logal

volume we the the we principally leisure our forecasted expecting John that contracts testing retail remaining our coming public between in any place. have sports is and the volumes anyhow, the We're so contracts that mentioned in off surveillance Yeah, that meaningful from testing. not and coming guidance general school, partnerships

Unidentified Analyst

you much. so Thank

Operator

Frost. to conference Phillip to turn showing this back at am Dr. time. questions further the I like now would no I

Phillip Frost

quarter. to you communicating the everybody with we for thank Well, look participating next after and forward you

Operator

have participation concludes Ladies and and day. a today's again your you wonderful conference. gentlemen, Thank for this

all disconnect. may You

OPKO Health (OPK) 25 Feb 222021 Q4 Earnings call transcript