Biocept (BIOCQ) 12 May 212021 Q1 Earnings call transcript

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

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

Joining Biocept Officer of Reform Officer be the and Officer me meaning Chief this XXXX. making Tim and from During private forward-looking Kennedy, are a Michael of number Chief statements management the Act Operating call, and of Financial President Chief will Nall, within Executive Litigation Securities

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

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

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

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

testing with and announce CNSide million, income our access SARS-CoV-X, whom more am to target we consecutive community. efficiently today, as agreement selector dedicated which results our continued serve Thank of our States. core we everyone. profitability. driven throughout our lung Diagnostics quality of cerebrospinal are investments month. nearly our you, revenues Jody, United an strong quarterly assay Today we oncology afternoon, financial RT-PCR in million patients our results, operating by good turn, the to second were These specifically supports to for In quarter team business $X.X launched our reporting $XX.X of our and the Quest late pleased give to fluid with performance I and collaborate last assay, NGS will also outstanding with

largest you world’s diagnostic laboratory. As Quest is know, the

is and metastasized CNSide tool of assay growth with that We up with to third expect transformational have early is manage clients be the that the availability completed diagnose an underway. with diagnostics say with will cancers. repeat we accurate in XXXX, to physicians quarterly of no adopter proprietary an launch It’s this both need exciting in number to to expect continue. early commercial time CNSide of is orders from have This for set And with customers. the Biocept Since seen quarter that we tumors in our for improved overstatement central becoming a for significantly increasing exceptionally volume to to now Biocept provides and more a soft many trend nervous launch Quest from assay full accept of follow. this CNSide system. late-stage physicians in paradigm and patients patients changing the

be Importantly, care. we of life are already quality who positively and patients seeing hospice life of referred that the to CNSide impact might the can expectancy otherwise

U.S. that in to Over nervous currently expand additional assay and Barrow we breast than melanoma involving metastatic including to our menu featuring is originating tumor plan cancers time, system recently Amir per CNSide Dr. testing billion with prominent more from year CNSide the annually system. oncologists neuro assay We at and market types from leader the Blondin opinion the patients the estimate identify cancer validated by the Kumthekar the $X Yale approximately the by on School CNSide Institute, Dr. registering with lung metastatic We our patients of for webinar central more diagnosed year. Azadi XXX,XXX of invite the University. listeners frequently highlighted the I for page. in from advantages central end. nervous the for assay CNSide involves Our which about Neurological key learn our to Dr. and Medicine, webinar Priya Nicholas Biocept.com biomarkers Northwestern home in

physicians accurate standard CNSide central the of and the Our method its diagnose with enthusiasm the CSF a system, which is more for current metastases care, to to cytology. offer ability from stems presence nervous to of timely compared

study suspected CSF with detected whereas to cytology, of fact, of of targeted the new XX% particularly, approximately CSF show molecular pilot the our detected. cancer cytology, about in have many has treatment, XX% central involvement, for nervous system tumor the advantage in system using CNSide were only added patients that identifying CNSide In the were Patients cases cases due potential Unlike symptoms with of advances therapies. actionable neurologic better metastatic nervous targets. central survival and of involving reduction significantly cells

in biomarkers Additionally, be can critical treatment identifying selection. specific

CSF able a on presence cited to of a this testing cells. positive metastases negative XXXX diagnosed for with woman cancer prescribe Azadi stage-X example, breast in to including cytology, the study Dr. old information case was was results Azadi by in negative to treatment use showed HERX HERX XX-year For webinar, CNSide CNS regimen. involvement Dr. during metastatic the with

after negative Dr. the Dr. one XXXX, modify of that then free with treatment. able symptoms. least to noted during her webinar, found at was patient HERX tested this systemic Kumthekar with patient’s HRX disease this to As was January Kumthekar cancer in is patient CNSide. Also breast of positive being be

response. patient to vital counts off some in a provides determine treatment. CNSide CNSide This want trends they to or quantitative whether share with identify can early our upcoming Additionally therapy patients’ treatment, physicians that remains used comes can treatment, information help cell on I milestones changes program. a

in access novel with devices medical designation FDA We the up speeding device trial assessment via by an update clinical improved third This and review. their providers patients have breakthrough provides quarter. expect to timely to and development designation securing healthcare on

are to with system the potential pharma the creates valuable and partner companies We high central next also drugs metastases it nervous our of designation and value expect that developing treatment for this the reimbursement year. will oncology ability for within be

alternative cancers of many diagnostic our is goal and advantages the CNSide monitoring system. nervous CNSide the standard-of-care Given diagnosing over methods, for metastatic central new to the patients establish with as involving

oncology clinical to care pathway publications have We intended developed by that guidelines influence XXXX. will a national produce

of by breakthrough device the to designed This to for study We first the with study in clinical validation expect designation. FDA completion is Four begin mid-XXXX. our part year of this C end provide

the testing then to of utility be Four part prove the study C points evaluate based on CNSide’s will second decision conduct clinical made results. can We key that to in order

to expect in XXXX this the We one year quarter third completion initiate of with later. study approximately

neuro and We release other major trials are CNSide additional develop assessing working pharma objective the use centers will in studies to patients also and academic with trial monitoring establish response will patients’ least be to related of post-treatment. involved multi-institutional oncology one to be of in at clinical for The excellence. therapy

physicians genomic performed two insights diagnosed every in broader some order help with Historically, the Turning were be guide with continuum treatment of tissue may level business, needs oncology or to valuable decisions. one profiling patient biopsies cancer care. during patient provide to to our of

not performed of or monitoring testing testing can early the that It’s far using more whether biopsies, fluid, liquid with pandemic, our volume this frequently for purposes. cerebrospinal be oncology during declined. COVID-XX surprising blood Now days

used seen being an a XXXX monitoring for However, increase assays have lower third beginning sometimes volume we’ve this believe steady in in price a our per includes increase test. in quarter. point We which

team Biocept for our by COVID-XX. times. XXX,XXX community XXXX, pride testing, during COVID-XX testing takes serving have June received we our quick turnaround to samples now providing the quality Turning pandemic approximately in with Since

in have could return about to classes. Foundation the the of protect the the of as the Colleges community our with largest populations testing the colleges in-person spread of reduce may Community college recently You read U.S. COVID-XX testing This California and safety the California needs virus for help to campus partnership serve announced system

excited served to and staff. We some X.X students, to have the in XXX colleges as some population teachers service our general systems expand million as the and already of well of we many are athletes

getting encouraged and normal. these are said, are customers on forward, get to That for Regarding nursing are must to testing we back our all COVID homes people facilities we our ready of going expectations test and for many COVID-XX as vaccinated living basis. testing more still routine assisted are a

our continue could expectations testing our We provide knowing as expect will revenues of progresses. the will component and meaningful to be year XXXX throughout COVID-XX change an important business

positive provided for next to load for As turn with our patients. while This help be an especially new Tim results. Tim? over distinguish is testing review strains our quantitative time the with of load underway our steps reflex the information to Kennedy collaboration now viral results. over to viral new to will healthcare financial likely assist The helpful Biotechnologies with test to providers virus And will their Aegea the patients clients when quarter assay call will determine first providing validation COVID-XX. that, I monitor update

good afternoon, Thanks, everyone. Mike, and

$XX.X Xof due mentioned, Mike is QX significant revenues of for XXXX reported increase As This XXXX, and in we million. to million testing. primarily Q COVID-XX $X.X from is a

from test XXX,XXX of Our XXXX, Total . and million of revenues testing. X,XXX COVID-XX consumable million in $X primarily This QX is $XX.X year total COVID-XX including line recorded XXXX the commercial for in revenues accessions to revenue, XXXX expenses. accessions. due with collection accessionsXXX,XXX compared million increase to $XX.X increase was $X.X we cost prior with with significant period, kits total QX In and included in attributable total QX million, the related a

R&D with XXXX COVID-XX components million, a by net cost to and year As from the the of of leverage revenues facility continue to and percentage as we related decrease cost in quarter revenues in of $X of consumables, cost our first to COVID-XX as for ago, XXXX. to XXXX the collection $X.X with of Contributors expenses a facilities our of the the completed to cost decrease for which R&D. million XXX% kits, of approximately prior revenue of facility decreased allocation cost lower better on pricing we as the were cost, lower period. including late the revenues quarters compared move attributable percentage year our first primarily fixed well

just additions QX first study expenses with $X.X versus associated to period primarily higher We million marketing previously Mike expect the increase from and primarily coming the in with R&D QX COVID commission quarters C as were Four mentioned. payments the with expenses other Sales sales. testing. increase related clinical compared that COVID-XX year headcount million expenses were prior resulting G&A million, million $X.X and XXXX due $X.X XXXX $X.X to we in for expenses the begin in

late cost rent quarter facility last of our representing compares may lab some while CLIA XX% commercial first designed we headquarters million. our that XXXX about to million, building move, the loss expense we facility development million improvement Operating our and and the You a incurred annually. year, an the recall based to administrative and new our operating – San approximately for first reducing new while income was related other by for $X.X needs meet moved this quarter from expenses is $X.X to of of $X and of XXXX an Diego with

outstanding. will shares outstanding. robust stated, grew million of net we of from first $XX.X million XXXX. weighted cash million December with XXXX million profitable X.X end reported a of reported XXXX provide of million cash quarter with or $X.XX $X.X shares move net – the we XXXX. XX, consecutive average $XX.X as for equivalents Mike forward as loss $X.X $X share Revenues per income This XXXX anticipate March and share our compared weighted year receivables $X.XX on or We million, As quarter by million for on XX.X diluted with which we cash per as of of second diluted sorry, compares collections XX, in

cash we with and usage, in finally, Additionally, supporting management our testing from nine on our expense a cash flow free rent move, business period And COVID-XX Biocept which revenues a will cash the in support and are Based second our current oncology strategy. the that month January from free XXXX. period generation facility perspective historical position negotiated our of rent believe XXXX. revenue and quarter investments neuro planned through began

I’ll be However, uncertainty Mike. our by Mike? the COVID-XX may revenues collections, to turn With on runway introduced back with call that, and over cash shorter. the

Tim. you, Thank

liquid three, our and next-generation additional tumor Biotechnologies. collection growing types blood standard-of-care and Quest target technology quantitative six, NGS one, Before under with with supporting for that I along questions, the sales to treating want studies which securing assay commercial support corporate launch we assay adoption device additional into to selector two number number by following: three strategic, and central our menu CNSide a include number for number tubes; our review breakthrough announced commercializing eight, kits seven, opening positioning for assay coverage as biopsy initiating is number commercial COVID-XX there of with submitting four, the call agreement number NCCN with full third is your our CEE-Sure like system; with standard-of-care. for our quarter selective clinical the five, co-developed target there our patients and CNSide key our today the CNSide to priorities questions is CNSide is trend; panel; involving the one, the Medicare number answers expanding CNSide physicians Aegea partnerships next and cancer metastatic FDA of as guidelines; suspected number nervous XXXX; Diagnostics; lung testing a tumor; the status target there of priority and entering biomarkers;

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

blood Our cerebrospinal are from with patient information tested assays fluid. cells, our testing. have platforms To-date, oncology our in and received have approximately both based for and XXX,XXX biomarker samples assays proprietary on approximately cell-free XX,XXX samples tumor and to leverage DNA COVID-XX RNA we differentiated

we XXXX develop Biocept related establishing and closing, our revenues collaborations meaningful balance as as and designation obtain CNSide work excitement testing testing. to remain with throughout our it’s the and to standard-of-care clinical we to studies increasing standard-of-care of of we have strong expect continue adoption We and CNSide to towards support In COVID-XX anticipate the as team’s COVID-XX important a see sheet. gratifying assay

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

Instructions] [Operator

on you’ve question, neuro to home and informative. if biocept.com. the page are it we that the not I remind oncology you’ll like think an While hour available watched highly It runs be to webinar, for our I’d listeners waiting about of find first it’s just

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

you. Thank

Please comes first from Group. Maxim go question Our ahead. with Jason McCarthy

Yes, on great the on the for question it’s taking Jason. Michael Okunewitch the quarter. and Thanks congratulations line for

Good Michael. to hear you, Thank you. from

to like testing roll of business guys, seen of lot quarter that from is how we’ve your held you COVID second has up from a that. in kind in I’d out? vaccine as just target somewhat a here gauge So, know cases the decline into I insulated

So has that held up into the second quarter?

just XXX,XXX script so we the done know week. know, this we’ve let you as folks Michael, far now that

was that this Tim, people reported So, and reported kind time of last April in now. lets know. we we and between back time The I XX,XXX different, believe that about when April about in was

now got is we gives room bulk quite of me to when And Folks rates things I idea his with to that, along the of were remember shaking here times skilled of required while low happy when are I positive higher previously, and accounting to are key are either customers is guidance and centers our maintaining skilled three we nursing to with based a an they are do then, you week the nursing positivity from a all When in, twice and come this a on the as or they employees our retest at. week. they have think residents think retest. the is you we continue test in need there all rates, to head, not Dr. positivity Dugan there of a we this. clients, the not that may me center have and that So today understand one is that where

there thing, very thankful that the all thankful seldom should for, to and we a do that’s not is Now retesting. need be finding positives are we a

impact base. are our you where seeing client with the So so far that’s

are the that a the we know, addition, go the going not enthusiastic they about we because In how don’t could colleges, we discussed the help community colleges school. that ways policy to we’ve colleges to for community and is are back for there

which as for athletes together I to and plans spring about and test get such But are need inform to from they and baseball year, a progresses they So the agreement. we the expect we year what as helping others us lot that that will are their think know doing today for sports we their that with.

to you. CNSide. differences from of like to should know, a opposed I’d I targeting kind full talk launch launch about What what the that for should XXXX? we like the for Thank soft in just bit that. to Alright. look And full the we as expect? how you are at lunch

CNSide the that folks we the with thus be behind there the we logo. the it is you for do think we’ve one, same a a way lot go this how from past learned side. can investment is assay there the lot are marketing it. I And about name on also actual If saw are a And reason to the Well, lot and doing to over into that, go difference, valuable the it the we year who of targeting. than other going has with the

with go started early need them. referred the them sending to get do to see very and they well. hospice as the oncologists. are there. so more patients They next who then often, they the get doing they then they to the these as interested bigger be bases folks we here. bit are data that’s are are will is, a adopters what And we’ll far test. can expand our neuro The are as everything targeting the alternative with little to they and But and just an we’ve if So they medical to list give want And oncologists to would patients help level webinar on

Dugan the that he’d as is now things like to data. in investing has are well. think we with And some what Dr. that’s share So I

with an is are a read. launch the of terms to test the Michael, more form more launch, report commercial and the that’s this other formal updated test in Thanks, Yes. things commercial Mike. presentation of happening requisition a that easier integrated

will materials opinion test others test. our more our it’s studies investigator KOL a establish additional to case come our studies additional clarify And explain of studies of will initiated as to role network, then, educational that already we’ve to of including the help well further used with you addition, in see of the anticipate key the out variety use. that studies how and In as completed publications related really leaders and both the the doing work indications own role we

Mike. Thanks,

one you And very just about Alright. detail a just with talk Thank for more in the I’d that you to then, means replay agreement like much. and what to see more your business? if could bit on core Quest

it’s is for we’ve targeted couple working years, on this our who Thermo assay lung that. Well, for panel used to that been Sure. we with NGS for Fisher inform that patients lung non-small folks and patients, decision. it’s recall now cell on And treatment cancer cancer a of partnering

So, and time to and lung biomarkers be for tied ideally, of the key monitoring looks that are also at way all for for it’s therapies cancer. restaging in used along and diagnosis can the targeted both used

assay start their so, Biocept and options had the chose they evaluated and for few with various assays And have to they Quest roll sequencing them develop next-gen as out the oncology months to we some as well. partner as with first discussions over past they

So, are very excited relationship. about we the

then while to happen to us accept the of As it But for specimens QX the start take expect going company, to we onboarded. it’s along a way. get by with to that any and big end

very Alright. you much. Thank

Sure.

Nall This to I Michael to would concludes any over closing back conference like our question-and-answer turn the remarks. for session.

behalf of and in to when our update On team on of participating call interest XXXX progress we call to Biocept, financial We a working in Board everyone providing great August, for company. I look day. again, at thank Directors our our on here our next our want forward during report and our Thanks hard for and your Thank you. have today's quarter second an conference results.

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

disconnect. now may You