Biocept (BIOCQ) 30 Mar 212020 Q4 Earnings call transcript

Good day, and welcome to the Biocept Fourth Quarter Financial Results Conference Call. All participants will be in a listen-only mode. [Operator Instructions]. After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions]. is event this note being recorded. Please now Jody Cain. would like to to over conference the turn I Please ma'am. go ahead,

This is Jody participating in Cain with LHA. conference Thank call. today's you for

Officer; Nall, Joining Financial Chief Officer Dr. Vice and are and from Senior and Chief Michael Dugan, Chief me Chief Officer Biocept Officer; Executive President, Tim Michael and Medical Kennedy, Operating President Medical Director.

of Act will of forward-looking the meaning During of number statements Reform Litigation a this the be call, Securities making management XXXX. private within

statements all can terms as expects, include Forward-looking or not generally terms. of anticipates, predicts, are could, the statements facts and potential, those would that be historical believes, should, plans, identified such well, intends, negative projects, by may, estimates,

severity that materially In actual to is that may or achievements of Forward-looking Biocept's or from as estimate operations, the time different the and performance uncertainty impact forward-looking cause today's statements. particular, and on on and COVID-XX and any for involve statements about is and factors unknown the of outlook contemplated discussion. results, the be known statements implied at information pandemic. by the the achievements This financial results risks performance change impact based there as those are well other duration, contemplated could uncertainties means significant and best COVID-XX results

occur XXXX. any call that or XX, about update or these March publicly information time-sensitive contains reflect that disclaims information after this as filings. SEC this of any to events is law, of today, Biocept details For only to content risks, please company's required see revise call. circumstances The obligation accurate as by the Except

to turn Mike? to Nall. like Michael I'd the call over Now

testing But our in both future. for their I of and enthusiasm dedication want forward June say call. received began supporting to Jody, hours XXX,XXX and while I'm COVID-XX and about post-pandemic neuro-oncology to CLIA our in that samples, with the of vast strong results a fourth in entire to time, including Since December, today's strategy for at our we our our the I'm headquarters COVID-XX for have business needs community, Biocept looking of the details you, proud during and good relocation everyone. corporate testing collection. of Even the offering exciting same our exceptionally Thank laboratory first, results Biocept quarter. samples majority oncology in the COVID-XX XX XXXX more health sample we advancing than afternoon, about providers within sharing team provided XXX,XXX from XXXX, test

providing COVID-XX our testing reflected is results. Our in financial team's in success

quarter, first revenues million, For the we our and fourth reached quarter. profitable $XX.X a record ever reported

both recent oncology the in cash build reducing new post-COVID more particular, era. significantly a as of quarters to we generated our in our full that revenues financial on service benefit neuro-oncology of It's continuing team highly business, focus of to to oncology for our our higher dedicate our has us to and COVID-XX allowed while burn. resources added to had provide strong year core record we customers. The the This excellent gratifying achieved XXXX, report results million. these revenues $XX.X For

We a offerings. testing patients opportunity differentiated our with neuro-oncology have advanced cancer to through significant serve

study from intended the system. We or collaborative XXXX the nervous company, this central launched XXXX. of biopharma CSF cancer findings fluid, is first involvement in announced and with presented a biopsy cerebrospinal proprietary data assay of which Our the we a in liquid diagnose in in identified XXXX to opportunity

Later specifically and related will our early be a step clinical major highly in our took breast assay lung studies for selector X This last capability target the and at this You from different cerebrospinal of year, with year with our may year, cancer. scientific we favorable neuro-oncology and meetings. the results launch the in with studies fluid. assay, we commercial presented test we recall, pilot expanding offering availability CSF advanced

distinct advantages the generating pilot assay of than enhanced the testing unlike proved cytology studies results. I CSF to In quantitative Our more provides mentioned, in while current cytology, that, has informative sensitivity standard also our care assay our alone. CSF be CSF

addition, molecular treatment the for added assay response quantitative advantages progression. decisions with disease as and In well valuable for treatment our that of has physicians monitoring as provide actual identifying targets information reporting

with represents at high the And while assay a will on unmet develop $X XX% type, addresses estimate brain is of that XX% clinical opportunity market patients a this than significant a area need more we currently, CSF Our as annually. it cancer, to adult metastases. depending niche billion

a pursuing care central for designate the neuro-oncology diagnosing CSF standard cancer or pathway the the are nervous assay Dugan discuss of today's with gold Dr. our system. as Michael strategy will to involvement in We call. our later standard

proud lab automation testing have processes, The of our I'm receiving we've under throughout thousand done month, between us per volume collaboration in Aegea, for regards technologies for the Turning current by to XXX,XXX agreement $XXX an is of we some $XXX samples Biotechnologies, the days. assays. validation next-generation our on our in ultrasensitive in technology team's testing. more that basis and addition high-volume the developed is to to of CLIA This with which our is Switch-Blocker long-term kits assay all we a are business June, and testing supply to as our be now assay, providing technology we jointly to to same a sample. our scale unprecedented received earlier several helpful patented oncology many will this and work with now than our last includes COVID owned successfully oncology developing adopting Aegea COVID-XX which lab. COVID-XX COVID-XX. after Aegea is the the announced In of which with commercialization next-generation lab using Since of ability accommodate samples this in payment growth average for was the Biocept that

negative. positive assay provides use can order distinguishing COVID-XX while virus a that load determine student viral codeveloped can load the or patient, of emerge. only, to as tremendous We in monitor advantage you strains of over safely asked particularly our to also return be in RT-PCR This when viral the roll can The COVID-XX about this results to after initiating growth of a the meaning assay this testing has current Our testing of vaccines for new Many June. various quantitative results. is they going providers to employee out. new general quantitative saw testing SARS-CoV-X time modified qualitative population. as assay Healthcare variants detect new sample the resident, forward, the providing virus have expectations or either

is XX,XXX week. XX,XXX approximately Our at running samples volume testing currently per to

is call As meaningful full with we financial noting nursing business, the volume XXXX, and other progresses. now results. expectation revenues throughout quarter I'll Tim? centers, review are change organizations and our providing these testing And that, services turn repeat Tim current could as year to to Kennedy expectation with over our our year skilled the and to for colleges fourth

Mike, afternoon, everyone. good and Thanks,

testing. G&A due Mike including sales testing. million warrants. million. $XX.X $X.X XXXX, activities for for headcount result increase XXXX dividend Commercial XXX,XXX compared handle kits comparable This of is at QX million $X.X XXX,XXX. period QX we the primarily well COVID-XX a revenues in Total record the QX of adjustable of fourth quarterly of QX significant due were as the Sales higher for There of of $XX,XXX million COVID-related XXXX. primarily quarters million QX million total -- COVID-XX million volume consumable a marketing expenses. with total XXXX XXXX period, deemed revenues in In in recorded prior deemed expenses XXXX, $X.X accessions, million consulting compared cost and a R&D was related received revenues. increase X,XXX were XXXX increased $XX from XXXX XXXX, of year expenses. $X.X due accessions year we collection prior was for XXXX. to as XXXX, for $XX.X $X.X $X.X As expenses is and increase QX with in we test commissions relatively in the additions to QX QX reported and were included a COVID-XX and as from $X.X expenses QX In revenues revenue, mentioned, in in significant were due commercial attributable to million to no to non-cash These million $XX.X repricing to flat dividend dividend the million. primarily versus with of

we This net compares million our $X.X average of As of diluted Mike income outstanding. on of with million the stated, fourth loss share per share reported weighted outstanding. million on quarter first profitable a per weighted or net ever shares quarter million $X.XX X.X shares with average $X.XX XXXX or for XX.X $X.X

reverse X-for-XX XXXX. share Our September split implemented weighted the in average count reflects

cash on increase per equivalents expenses loss historical Again, while XXXX as $XX.X neuro-oncology were were million million receivable sales believe weighted $X.X XXXX for Based in weighted a burn approximately and as million activities December inventory million grew Turning XX, of $XX.X XXXX usage our this or our due XXXX to share $XX.X $X.X a cash million. of loss robust testing. anticipated shares million, operating rate were on investing for Cash results. with X.X our with XXXX. generation for for and of and $X.XX million, planned support sales, on million compared average million. marketing $XX We In million compared Revenues revenues were were Cost share XXXX, will our This reduced position cash in increase $X.X R&D million current testing, we full XXXX the XXXX. shares revenue as or of by cash by The million demand XX.X and compares $X.X and result XX% to we for for revenues with business $X.X to have and by financial year G&A were COVID-XX most XXXX. expenses from XX, $XX.X expenses million, our $XX.X million. in COVID-XX with per we of was Due reduced XXXX. average also net through our $XX.XX outstanding. in and December XXXX usage, XXXX, outstanding. the strategy. COVID-XX with $XX.X net and of increased consumable testing, compared accounts

transition to uncertainty the new our introduced We with the and impact and facility This customers. completed However, be revenues December. in with runway shorter. on minimal to may collections, completed move our headquarters by lab was COVID-XX cash

commercial, rent XX% Our our new to reducing meet by costs building expense designed development needs facility and and administrative other is annually. approximately while

strategy. with which turn among cells the final work assay CSF Michael? now in to to I'll to note, reimbursement for our to quantitative tumor to With Medicare neuro-oncology a provide with for is the make existing of is Michael near-term in overview our that, goals biomarkers our averages CSF. reimbursement This to the call FDA addition treatment molecular detection and As high-value about Dugan, decisions used of per over specimen. an $X,XXX our Dr. gain

thank and Tim, audience. participating Thanks, you to our

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a intracranial for standard to tumor new cell in of Biocept's using Our establish is fluid care quantitative CSF. of metastasis diagnosis or goal cerebrospinal suspected the assay

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cancer molecular help in a about presence cytology negative information choices. as typically absence indeterminate biomarkers or can reported to therapy of for CSF is no positive, that qualitative additional make the Additionally, with better fashion, be or cells, used provided

care. is attempted National widely Network, imperfect as inadequacy, standard Comprehensive establish is involvement times NCCN, up recommending to tool and CSF X Current from CSF As such, a that the when suspected. of recognized has cytology clinical system cytology central oncology diagnosis clinical be to as significant reflected guidelines or Cancer an a nervous diagnostic limitations care

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treatment? there molecular actionable assay identify Our is can target targets inform clinical biomarker a Second, that for CSF decisions.

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our of guidelines publications help involving goal, achieve leaders have Our institutions, XXXX. C the steering former national that pivotal longitudinal major as this Northwestern our standard system. clinical development have cancers Institute nervous is us diagnosing Santa care primary With Institute central University, or goal to by influence mind, and for goal dozens we this care created to key produce University guide To a clinical establish CSF intended Cancer assay in designed a neuro metastatic Penn oncology to new we studies the the Monica help from Four State opinion study. Cancer University, in St. committee with including oncologists academic John of John's study, and spoken of and oncologists monitoring Wayne and Stanford

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to to We patients first to enroll X-year following XX span expect year XXX a patients and in XXX up each patient over the longitudinally.

clinical development as early their FDA's to opportunity offers Food We also FDA the milestones review up breakthrough file trial provides topics and concern reached. the or to patient clinical with access design creates X-year in clinical enhancing developing in with improved months. designation to FDA, address data. With medical I FDA device to with timely that to partner via This efficiently also review next the to for oncology clinical devices potential that, use patients will it a for of providers of assessment and companies our Nall. supporting Biocept and are phase, by review. give our designation within its interact generate and trial reimbursement Drug the plans next experts during the value by planning has the metastases, speeding the healthcare to and Medicare are call few potential It of treatment pharma year. and Administration, trial drugs novel designation manufacturers allows the an are our back If accelerated This ability granted, trial the and high-value this timeline designation data for for CEO, brain will Mike turn coverage of

Thanks, Michael.

technology a I following: standard panel; standard pivotal of under call our submitting tumor the and coverage target CNS new CSF partnerships; Biocept opening growing assay. to for our securing monitoring CSF assay diagnosing which include with assay with our clinical for NCCN the guidelines; our commercial positioning want target corporate into status the your as to questions, biopsy by NGS adoption establishing our device additional tubes; of commercializing response; of selector brand blood studies selector breakthrough and of care for to initiating Before involvement priorities, review assay liquid COVID-XX next-generation quantitative support CEE-Sure kits and therapy lung care and and the sales our Medicare for assay; FDA entering our CSF metastatic strategic, collection

based of provides portfolio information with in physicians determining for diagnosed selector assist to assays their critical target Our patients cancer. decisions treatment

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related base. customer XXXX, due care as COVID-XX anticipate we revenues develop of to clinical in designation. our remain to our obtain We established adoption to and studies to increasing CSF mentioned, assay our testing of As we standard collaborations expect meaningful

mentioned, Tim Biocept as reduced to a appreciation their entire want In a tireless have express over dedication my and the year. closing, burn. to strong work their cash sheet we past I and challenging team highly balance for addition, In our

As and we're committed overview, to improving And questions. to always, now patient we ready clinical choices take treatment outcomes. are that with Operator?

[Operator Instructions]

you, Thank operator.

its leader days. first will webinar technology XX:XX investigator beginning on advantages practices. in be and that Dugan noon, key -- question, While discussing Blondin use Priya Dr. at assay and Northwestern Yale preregistration neuro-oncology Dr. who to Nicholas our April for X, our webinar University, their mention be of proprietary a for This holding discussing clinical for who Medicine, clinical trial; Michael we're in this C the We'll the offering. Kumthekar the announcing waiting CSF feature webinar we'll our opinion Four who like primary our Dr. next assay several I'd uses is of will our

we're for operator, first ready the question. Okay,

will come from Your Group. with Jason first question McCarthy Maxim

first COVID is seen Okunewitch considering This of pullback don't Jason. testing it look long, I the revenues, Has far it's as in we've on Has to And at focus continued? really year? the slowed XXXX? do not any on Michael through for through have this how going for all? company. quarter, how the want relating too so rate gone the that But has continued COVID dote at core you in forward you the to

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system. conference, had mentioned here they In the as labs X at been we if X I that community of were college addition, serves selected as folks in California will investor recall that

demand into So and fall as and that on business to anticipate really we in year folks get back-to-school. being get the that continue throughout from

information ask way data? physicians something about there I'd there liquid now kind right CSF do there? biomarker is actionable the is CSF also cytology? And of the What any that out from get like Or really biopsy. Biocept And gain only to then to

That's question, the to Dugan talk can your a Dugan, your for and to cytology. to first, in, ask little I'm a environment. great question. of about competitive But go first I bit Dr. ahead, Well, going weigh part then Dr. CSF

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Yes.

X with remember, X So you X best on the answer. and different questions the is about talk and quantitate, really that we're when And answering. there's biomarkers Biocept questions and competition, really

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the here I've conferences X the investor So the at as as well done weeks. couple last of different in presentations

see a bit establish color your us and to roadmap the more test of CSF breakthrough for like as I'd then you on of just can you reimbursement bit And device to a to guys status. that standard secure care give more with -- a if the

Well, Dugan I strategy. talk is Sure. Dr. trial one about again, once the our think to best

well the bit as how about a as breakthrough So little works. maybe device that

have in I leader develop interested C mean, on out anticipate There clinical how listen using little it's to it. we The the against larger several webinar therapy as own invite of current lay we use. standards which against of and and to, establish degree of our anticipate pharma to, in imaging that trial of will you you that with of went various invited monitoring We April that initiated will which I opinion care. our have listen clinical working what I some into through multi it, us and this test Sure. evaluate are studies, into X, test will are kind more many Four of later that us, tool. academic but that go their bit Mike cytology the as a centers the we will time. clinicians saying institutional And they on investigator key a entering trial, about a planned. to elaborate And the first a more particular, us use quick the indications existing further in would in -- our are pivotal trials to year as some study then

before it and FDA now that we're to expand CMS think this -- that's gotten FDA CMS later breakthrough, comments that part the And while this is program refinalizing have somebody] the [meet there. And for year. thankful looking comes when of program program, we'll for additional together I their And is to the for diagnostic the assays. very

breakthrough, you automatically plan. then so you for get same we're that data qualifying the at a And then necessary once are awarded reimbursement the CMS we'll original that. have confident time, pursue to the And which was

for to back comment industry. path recently forward for it, a great out for has some I that whole but we're that looking feedback As after in our and put CMS Biocept good said, have being forward on finalized

back question-and-answer to conference And our closing remarks. would sir. concludes over Michael Instructions] any I Please the for to go ahead, [Operator turn Nall this session. like

We Thank for we conference hope financial on everybody, interest call behalf for on XXXX our our to webinar you, And our on Biocept, soon Board in call of results. again, to company. operator. when of during in in everyone here you progress our quarter look X, neuro-oncology thank participating have team forward I your our Thanks, first April update hard-working our an at Directors coming today's want next report and we up join will and and providing and day. great May, a

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

disconnect. You may now