Exagen (XGN) 17 Mar 212020 Q4 Earnings call transcript

Greetings, ladies and gentlemen. And welcome to the Exagen Inc. fourth quarter 2020 earnings conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. Instructions]. [Operator this recorded. that is conference note being Please I host, Exagen. Mike turn the to our conference over Cavanaugh, would now Investor Relations for you. Thank

You may begin.

Hazeltine, today, Officer on year and Kamal ended Operating Good us host XX, Rocca, XXXX. Chief results you President thank is December and website the Exagen currently Adawi, this at release Earlier Ron available for fiscal afternoon Officer, financial company's will Inc. Chief Chief call. and for quarter Mark Executive The Financial released the and Officer today. afternoon's joining www.exagen.com.

on and are strategy estimates various business, performance, future business offerings and our financial and on impact operating COVID-XX current future and the current started, safe the uncertainties All statements statements. XXXX. everyone securities Litigation statements federal including forward-looking Accordingly, get XXXX to during our reimbursement harbor be without this within statements, and be and product These we based of the this upon statements. of those I management of statements Private the of assumptions. involve in meaning laws, contained actual Before not our implied coverage material statements. would of which should limitation, like remind historical place by regarding that making these facts guidance, pandemic you reliance statements forward-looking forward-looking that the and forward-looking results that are Act to call anticipated call be undue cause could these made Reform Any risks include differ are that deemed not to including, or will statements to statements pursuant materially Securities from provisions should

required XX-K see XXXX. future new the risks as over turn revise CEO broadcast and law, business, projections by and today, I XX, forward-looking of now description conference subsequent otherwise. obligation, to information, financial associated or information any filings March other in only disclaims except or The Rocca, Form Commission, this information, of the any or call Securities events to with Exagen. call a our uncertainties provided Ron to of including our because Exagen and and our speaks live Exchange President list or filings. For intention the the with will update and whether statements, please

and Mike today. the Thanks you to thank everyone call joining

As always, of we your appreciate continued support Exagen.

the are exceptional fourth performance the very quarter. with pleased in We

testing to Our franchise despite have well-known continues that providers. visiting challenges grow patients healthcare

symptoms in difficult of numbers, who our must adopting tests, delivered patients of are XX% receive clinically we solutions. patients a are especially our even growth over had diagnosed, for ease XXX,XXX includes can quarter, of including believe their XX,XXX similar test a and their the to the back-to- make freely providers circumstances. Due volumes proud back healthcare this high CTD in franchise XXX AVISE doctors year. AVISE providers full vein, among COVID-XX again their restrictions the diseases. a correctly given continued demonstrates our flagship visit fourth testing the AVISE very Along rheumatologists patients saw healthcare and to test we and our tests our unique healthcare the Moreover, utility challenged of Again, healthcare visit franchise, to Lupus of During get additional gives providers. our further rate record of the diagnose with adopters. ordering we providers. retention these which This we with a of value making X,XXX the years as a testing related quarter, to and record impressive. more AVISE testament is the in This to confidence efforts suite pandemic, us We

versus disorders which accuracy and AVISE provided many Additional doctor pandemic connective this our to CTD is convenience during tissue years. the could numerous visits over testing, by serial cover take test value multiple

not said diseases like life-threatening lupus As we do either. rheumatoid arthritis a chronic disorders like pandemic and during and stop before, have testing cannot

consecutive With see $X.X was and for doctors in the agreement tests the The speed prognosis more of can revenues can future AVISE with quarterly opportunity of currently COVID-XX the contractually up delivered SIMPONI expectations. ceiling forward necessity this brands That consider to quarter, quarterly was to than diseases going the that at revenue diagnosis need for apparent. pandemic, SIMPONI the million perspective pandemic address their believe opportunity do the that around come we which challenging treatment, provide contractual in minimum patients December of we of fourth it provided second is by amended new When the amended to the I anything said, quarter. making autoimmune our for expect near take better the market. in the to want co-promotion coupled some We $XXX,XXX. on which agreement

our value patients. key to resources as most the to important the territories As turn opportunities force complementing as XXXX. our quarter a sales would the product inside now is our sales allocate further and of decentralized force which a of the to first our rheumatologists The our creation in new organization performance. In XX for of for vacant always, XX, and to covered generate with total of space, territories like XXXX, we white sales seven our evaluate driver XX and I territories. portfolio December our as force covering of the added we territories reach well team an

to would well we progress XXXX. course has nearly lives expand It of and lives million also specialized entering on Exagen over to year, year-end. over Exagen's a XXXX. to course of like Our the is reach bringing continues made the is the effort for yielded reimbursement the and XX This as have adapted to on rheumatologists the into pandemic. in-network energized to comment over in-network team high-priority I million front of the XX the highly us

recently overall Cross Highmark, affiliated Blue-Shield St. new Health having in well thus as contracts Charles to two We organization covered services the Tufts in-network XXXX, and Medical and as systems, TRICARE and with System. Center far agreement completed have Blue maintained fourth-largest adding medical in-network this West momentum

our to R&D rheumatologists remains position treat providing do. help company, to a autoimmune focus solidify which as key now an premier testing we strategic difficult range as extensive seek monitor solutions autoimmune Turning to to a and Exagen's diagnose, notoriously This of efforts. is diseases,

focused on are and We our property innovation strengthening sources driving multiple of portfolio. intellectual

to a to COVID-XX in For in possible effects November, and subsequent with we of collaboration study example, Boston virus the Hospital, and announced connection Women's its diseases. Brigham evaluate autoimmune new

fibromyalgia, our further the large will continue disease We advance tests AVISE test to has add market. a a which to for of development our addressable to franchise, also including

series for promises autoimmune is confused providers. an to healthcare therefore not diseases it's in invaluable believe to on diagnosed effective, Adding effective our tissue and focused XXXX. be we of fibromyalgia advantage. complete While enhancing differentiated by year connective disease, with that full the AVISE very and tests remain are most the fourth often diseases an are frequently We and for In that our strategically we with rule-in/rule-out test quarter results of closing, test and autoimmune rheumatologists. the pleased

strong to the has is significant franchise testing proven in core resilient challenges. be Our and face

Texas the we the will reimbursement a additional which progress that year are the control We of a inclement during to and are and country. made high-priority. in out challenges front the other XXXX as experienced on continue there weather such parts our lot in give February However, of of

now platform. We find drive finally, to will tests believe turn in our place differentiated to sales continue the additional to that the AVISE We our to rheumatologists And to invest have will to financial is over results. to to for R&D a call discuss Kamal to our our like franchise. well-positioned would Exagen add I in we future. force

revenues million, XXXX from impact by increase the XXXX. driven in of full full everyone. for record ongoing Total XX% over $XX primarily despite volumes the Total million, for year quarter testing Thank which were $XX.X fourth XXXX good Total XXXX the the you an from Ron were year. and revenues XXX,XXX increase XX,XXX a afternoon was a COVID-XX were the revenues CTD including in AVISE and pandemic. year-over-year QX QX X%

of ordering providers for quarter testing revenue in XXXX. $X.X revenue $X.X QX our CTD $XX.X year CTD for pandemic. XX%, was we million core from AVISE QX Once million a to million. performance the was full million franchise XXXX, was the SIMPONI for pleased for the full XXXX. the were Revenue $X.X As year revenue XXXX compared X,XXX for other $X.X number compared of AVISE for and of COVID-XX margin. million revenue $X.X with the QX with testing XXXX, was $X.X mentioned, of Ron XXXX, QX X,XXX million. gross testing XX% the of are X,XXX was ongoing healthcare in Cost QX with and revenue in was in headwinds resulting face the very margin gross XXX% again, and XXXX million in other QX test and

million, $XX.X employee cost year QX the and $XX.X in overall was QX For materials XXXX. $XX.X XXXX. The $XX.X a in the in million and in XXXX in our costs compared compared $X.X royalty million The by with was in The a in improvement the an high-margin gross was costs on XXXX, XXXX of due gross net to XX% in Operating full $X.X million XXXX. SIMPONI with in QX compared with million a $XX.X headcount expiration decrease expenses for were compensation in increase related decrease margin year revenue XX%, and including increase primarily million, margin the QX stock-based million to with technology and driven of with expenses, with full an loss a year CB-CAPs including expenses. XXXX. in compared the gross associated direct $XX.X full increase revenue, associated expenses XXXX of were supplies. increase million, were Operating of for margin royalty R&D

the million was For million the $XX.X to compared year XXXX. loss in net XXXX, full $XX

approximately Full of equivalents our at of includes growth the XX% at XXXX over testing total December Cash revenue to million. to $XX.X $XX approximately as cash million, and XXXX revenue representing This million million. were be XX, we year approximately sheet. of $XX range. our midpoint XXXX, the to of expect million balance $XX $XX Looking

for expect the are in XXXX. for for full resources prioritizing and AVISE We year testing SIMPONI $X.X revenue franchise million

call open the questions. now for will We

[Operator Instructions].

Lin comes first your question Please Our with state Cowen question, from and Chris Company.

my thanks Hi. for and questions. Good taking afternoon

more of the factored revenue just unpack us I help and COVID-XX. XXXX ASP, volumes what's am just start and the you Why in bit for guidance a testing I in stop detail? that. there could First, don't with curious, impact

the Yes. question, in midpoint that revenue. for Thanks Chris. increase range, XX% testing of that's a the At

West. did you heard TRICARE As the get on with contracted call, in-network Highmark and we and

ASP. make and on progress to make that's our So to progress continue accretive will we to contracting we anticipate going that with that and are overall to continuing front. We in-networking be

obviously impact, monitoring I it's over these COVID the we disorders that. said one but as The Chris, we don't are there. far still obviously those not COVID cure repeatedly know is as that And and out patients if are yet, thing autoimmune does have

So we monitor will continue to it.

are we a bit it quite the things to last We ended year. so. with really the way year it have seems And like this up year, opened do happy and hope continues

Okay. XXXX just your you Kamal, up XXXX? based testing are expecting right? clear, sequentially that for on comments, guess I be Is be just to relative to to ASP

Well, we to anticipate contracted around payors. continue and we get is ASP. But guidance don't do with give to the what in-network

you to would testing a similar want increase volumes? Or increase? we level give want relationship in there, of how relative between expect it? to commentary Then you any Should the understanding Okay. to quantify you describe testing don't the revenue

We we and from add success physicians. a Yes. Zoom expand are the mention the anticipate on do have XX going calls number Thanks virtual the our based with had, increase. current volume did Chris. sales to territories to to decentralized our force sales of We team XX rep that having

potential that Okay. testing here. that your pent-up AVISE back remarks, more as that versus I Or guidance Ron, being that was is factoring And testing. in year? represent would the a we at of in? certainly, QX? just serial relates Kamal, maybe upside talked think what if for you And Are to in demand just one parallel for prepared And there testing. about to secondly, question alluded explicitly this you dynamic? built talk into the you that all to of it on guidance about XXXX tailwind Can

coming has the to these in that they forced how I think a was COVID PCP are like are with specialist. waiting in there doctors they and especially saw specialties rheumatology patients, more all treat much we what efficient as be patients to their see where trend referral

these really of trained, So coming doesn't patients work that with when way serial testing, is were now, we not talk which all the a in. about lot them

don't So the each from that's lupus often markers plus our the generic away, offers accuracy. I has going tests, because it's with have XX other of I with the so go conversations test convenience most best the at from convenient, overlap to that positions. least had think

said, patients. before they now it have Some use these to dabbled have something with see be more to but they to efficient

as I not, away, far don't at these whether as think it's go Chris. So the that But everything when puts I going to looks together. that's things or Kamal in guidance he think

to think found could I much, much than AVISE serial doctors correctly as to which, years that surveys are have get six they the with more take that traditional showed, up efficient CTD diagnosed. testing

helpful. Okay. questions. for very That's Thanks taking my

Chris. Thanks

Blair. Brian question Weinstein William with your next from comes state Our Please question.

afternoon. Good guys. for the Hi taking Thanks questions.

SIMPONI. to you So going are time here understanding be the on less on spending that promotion

versus you that an it spending time other? guys sales or get really you to what into for Does at a And for in get accounts? bi you call able do allotted one does were extra flexibility? I reps AVISE am that how then that about give terms to actually here of little drive what on are time to the kind curious, but incremental that average guess? t of more trying deeper clinicians they going talking do test, also order write just is, be to to being the to with So the do your time, What begin much

question, Great Brian. Yes.

more other time, time capacity the free now So but SIMPONI other to our the with bit a in into discussions at of us up capacity little brands. went them was that for does it promotion the engage good

I this treat SIMPONI, it just Now, open did will with say to that arthritis doctors that traditionally doors patients. rheumatoid

AVISE That to now to with capacity continue brands. leverage brands. the over use We lot calls. the way we all in is look So has our principle will something able other do principle to one, go put CTD markets. a now, two, one the three. relationships it to other But definitely right will be with principal we at our principle And the for

To depends go. will capacity on extra quantify that So it territories.

rheumatology the they doctors. Some a heavier to with to quite free territories it testing of But am branch. lupus over in general, lupus others looking once with and our RA were I heavier up move were treating bit capacity

you soccer grow you that might match, you revenue extent of allow the funnel be of the to the replace else that a you funnel about however Thank Great. be bag to But what for are anything, to quarter, considering there are it sound that expecting talk kind Obviously, talk least, to out any doesn't brought looking the kind this that. those those that are of you lost or bag? half are where things you and continue there inorganically anything in sit like of things that to year. that kind to you into of can at things inning, to about, able at are and want what of what the

we it through those infrastructure, everything us with while to share We products a that's wide quite look take and leverage sense. reputation increase from ROI much and when we and makes make we value, can't clearly our contacted We possibly sure does commitment We but sense this that do with from make rheumatologists. And will we if with our that Because strain the now get funnel, standpoint since and a BD and have reputation increase it big bit. how all our make have And on. question. at strainer in with that Great dominate sense we funnel. our a point have channel everything the this a at for Yes. could I rheumatologists. standpoint,

appropriate, into a is, We quick funnel. So will put And look we at sales big when it. answer we have that our bag.

Okay. for last me. And one then

wasn't But year. that ROI, what the the doing? the wasn't the number. think really do How they the thinking mentioned I things But about that you you XX. you ROI an current do are as go the here to you to of I on is ROI sales are sure -- if inside You You sure sales I of I the that's reps but the this ROI sales are beyond both do looking I and were have force things inside if to about think adding also the look you understand external am the from how there. up that? about how at you you measure some guys. bag. that was think curious force? Thanks

with reps. Thanks am going We Brian. XXXX I to clarify point. just and one sales XX ended

reps I hiring Were additional answer. speak territories. XX sales Ron to XX to to have now those increasing let XX. to get the and territories going of to for am We

to is, a Brian, white like kind quickly new to with what not So when their up we this rep we getting space had we in It's who are call goes what logistics the we what finding information the when product, territory, are of rep they the here, are the package the launched put the we a these speed doctors. so are. explain get time doctors product new or cell-bound into on to is By and activation complement you and territories, forth. waiting

sales cover Rico, augment that we in yet. So we don't a call for places that even in every good the places virtual, Alaska, faster. is Puerto we what like we The couple to for yield return for reps add the United force, white space we ROI rep additional going ways. will use virtual example. And One don't have Hawaii, is, think a States or centralized we will still

increase look presence So we will there. our to

it's won't momentum. whether any whatever, leave, virtual thing out a hurt we is goes when other reps lose pregnancy, do medical on The somebody ankle,

going reps, to the less cover have frequency to grow the right the together, lot two necessary capacity to are everybody think reach and centralized we brands. expensive able a in to we these to So using it's get

so Thank much. you guys

Thank you.

Cantor next your go question. comes question Fitzgerald. with with ahead Mikson Our from Please Kyle

for SIMPONI Congrats guys. agreement. Kamal, thanks for the helpful. want the on the color questions. quarter. on to But I It taking Thanks And was the Hi guidance. on the start

traditional to we And market have pursuing with over time. to always preferred that companion a have obviously, With Ron, market the take all thought diagnostic So on how agreement kind model strategy. talked [indiscernible] point. you of the Prometheus of Janssen coming the had type about and about be these would you that would obviously like have this

would guess one of most just rule since somewhere I of you future collaborations maybe at the you Janssen You And where Rx that of relationships on am those manufacturers probably. appreciate and am thinking especially already. expecting road? those are But because getting out side of going I will that with kind perspective. doing for the need the you. DS Thank way strategy, you Or the I approval is the I XXXX. about down your that have on already a with lot it, of what's

here We Sure, medicine in believe Kyle. Thank you. stay. and to it's believe precision we

it's for help Prometheus And this about was. And what position and more more just more as push aspect. with have the pole reality the get sales products strategy self-injected well look at I inked, for a that. $XX,XXX in more in we at will much. agreement aspect, more will for this negotiated been control it. is, the biologic. and you because out, But showed I love biologic. for in to it the pricing a as have be just see medicine. SIMPONI. really flat coming deals When in, derailed It's able precision rheumatologist see the are that biologics messaging don't that see I area. and say agreement to after we we problem future us more a in We steroid. is, testing at-home up. and that marketing as And like shortly only Let's we the s look our The are we had coming, with of think little And a you then model, situation fact quality It successful the we the we the this you things payors I the more a when But has year pre-COVID. bit aspect aspect, the going say success sales was wild of COVID to the to control

what for will So we the that's look in future.

up precision on We medicine. have not given

are still We to with in wide many ethical pharmaceutical, a thing marrying do. up open cases think quite diagnostic to a frankly, it's We that. the

for Kyle, that thanks, it. So question. I appreciate

on And but Ron, lives these you. should near those the vaccines of time hospitals with Thank so it with It Ron. term pretty course those see I we this picked looking the and the clients more certain helpful, end in will Like year. maybe at in for like was of XXXX? as course more on the of, of with over at see over was the COVID which going kind we a and the up forth? Or partnerships. some That like kind and of of quiet the Boston like in-network looking, all period all should actually payors uncertainty? impressive just Okay. there. to we of But what's given added And am expect see added an of

And now year. with got some wonderful they this job, West planned that's the We think with did saw with a And Highmark the you of payors and have meetings fourth-largest you we separately, I and and Yes. what both did we as Blue want operate East the and going know it. we dossier. know TRICARE

because it don't really expect think it I So issue. addresses to stop I an

is mind lupus keep which have the got XXXX. like a like You late-XXs, test in in developed was considered to that ANA

really, had really test haven't a for time. long good doctors in these We a

the in and the And of nine are and women. that, patients XX lupus African-American. is are that disparity treatment of women African-American other really to majority out Hispanic the Well, Hispanic brought COVID The with thing forefront has female.

right the patients. what for help awareness the payors we have, care fact and thing these the think these we the that So do patients market that the diagnostic believe, get along on of us take with to we will best

doubt on we get intent for that only testing only as to provide So will And are of people really the no many to patients. the need here as to continue not progress we autoimmune. quality but My for forward. soon They for as phone, that. is these wrapped I up possible, have for not us,

Okay. the thing great, And obviously. revenue, is But was gross awareness in I Kamal, data great. expecting non-Caucasian for which That obviously was awesome. guess are the lot. The Ron. you the a XXX% last margin, is just for question on margin XXXX, not shift Thanks me.

revenue can Is quite is the know So XXXX. going bit. there I grown model bit out? royalty to coming quite set It's anything down bit. that the quite a a is to in a us you help off up really

kind is I of as dynamic there So think about. that

sort us through pieces Thanks. help moving please, Kamal. Just those

Sure.

on testing have significant we some gross increases. So seen margins, quarter-over-quarter

to were the it XX%. We And we XX% in increased gross to at this testing margin XXXX, in Going did XX% for we quarter QX QX. in back business. past QX,

of some So touched points on to royalties, on about increases. you that on away it testing completely see month the and it we continuing January sunset X, XXXX. royalty make And to those XX that are takes go

to down completely be of we lower to material then And the supply majority lower as it on to looking cost. We XXXX. can much in expenses. the So And for lab. efficiencies cost automate labor drive and we as commented our should we are out make continue

Okay. Thank for guys you taking the Thanks questions. Perfect. Kamal.

question. Our with next Please Mark your question comes state from Massaro BTIG.

Thanks Mark. questions. for taking on the Vidyun, is This for guys. Hi

as both your mobile the intention know you sales side result seeing talked in interest the of to virtual pandemic? I the you force. those Is efficiency phlebotomy any maintain there of are as So COVID a heightened of eases up? about your

got backend part? question. the mobile What's I the second repeat that of you part. Can the

Yes.

is So as to that of force, COVID the forward efficiency virtual to the eases your up looking there XXXX? maintain and intention sales

that a great phlebotomy The have be by A phlebotomy area great. truly a we Okay, regulations to to do is question. independent. mobile there in event mobile has physician nor some are Thank is and because links reputable it not hospital there the something does a when you. it is owned

like phlebotomy. sign So they we we when find us find we them those mobile do up deals and or the

also And don't that hydroxychloroquine, fashion tests, just did reminds that rep phlebotomists. in have a how to to We the to you we two go the methotrexate so one pull say, a learn physician capillary medical and capillary got both particular school have and mobile introduced blood. they need

in the tube. it say, I the can tough be product, blood myself. and So do yes, in And when you have am fascinated yourself do always really procedure they I though not draw the I believe even to put trained. guess It's a it

the more those will continue So doctors patient term here short has think we to asset. to And we phlebotomy mobile to to access in stay, and the definitely. every sign of is sure agreements make that every the

nor make are do as time. effectiveness don't windshield have to effective, and reps, they have of Now sales can you the compound especially to fly, far the they as virtual very you the fact how they calls many

think it's to here I stay.

gotten quite does will it's Zoom new away. think efficient, things there, the cost-effective don't for I to on have I society be being the We Zoom question. a test, a what's it's you do to to probably going message therapy deliver But to One he go to the Thank to already augment initiating used to to lead it way everybody's bet right I to part than call. calls, core faster And five, very conferences, a not. audience. reps like or new think frankly, And think point. it evolved, out we a things we able of I would have I think years in is, XX COVID Zoom a

you. Thank

drive autoimmune post-COVID-XX have just kind infection. quick and of at Would outcome the noticed this to we So you when a follow-up emergence should of the final the on study expect there? disease of your Brigham with and readout anticipate evaluate has to you any data collaboration to links point revenue,

Sure.

faster you have if currently. you being on than have diseases you it that of control scientific group were autoimmune is, process will is papers if COVID a the So written thought not the in There develop lot did COVID.

on already Some the are web.

might that them theory up. You the solid can the that be actually And look pretty case. looks

we Now out. we prove going to And what have to do. that's it got are

We us. really a believe happy to do up, happy we Charles are St. know with Quest that's of service. to out of have like are know familiarity M.D.'s drive these and important. signed XX/X, Brigham us our like more signed Tufts, Brigham doctors working ask to and them Will at really they test they really mean out organization it using Arizona, to that be naturally our the access revenue? so we like with up, they any questions. glove and will and this. to are of whether draw Ph.D.'s esoteric have access us that Sonora AVISE asset with marquee we additional white Anybody towards because any institutions, Women's policies the or We We labs it's they Boston I that

institutions They well a think They want science lab drive lab. the in will good more I type itself quality and in and of for of marquee very that nebulous to business, public. partner the make the them and that's want the that as want. don't as us a important

Okay. Thank Got you. it.

Just a me. final question for

of provide could additional areas expanding lupus on into you to patients. as If an other update you are offerings thinking

cetera? past the in damage, believe, organ kidney you transplant, et I have So mentioned

more will I relevant be fibro may take Yes. the term. damage it. long quickly, Kidney

is So I think, quarter voclosporin year. their do first. let think, biologic Aurinia issue. I in late And serious BENLYSTA, there from just a Lupus in nephritis last early approval, lupus the approved, January. fourth got me a got nephritis very GSK

quality coming not the we got pushing for that. pharmaceutical you companies nephritis. really measure two are lupus really taking assets a out So there high at And to look that are assets. These out are have new

told even we we some these both will drawing that lupus and nephritis that So enhance forth, monitoring products physicians And as have nephritis. awareness the so further attention have product will markers. since we lot a look lupus do to to of a has be and

will the to AVISE We that test. in have our test measure monitoring

XX the long bag TAM, rule-in what such add patients is important. As and a in no far term test. really fibromyalgia as thing for rheumatology, million in United as States at the other Big looking roughly and

come They eat doctor into We and of have up just lot the offices. have with fibro they of think And a lot They had shopping. a they lupus. say resources. do these conversations patients they payors

then test, a important a having now, there. it can to rheumatologist rheumatologist rest their for definitive they non-answer resources So much act patient what assured they do patients, they will have like and they they clinical pretty will the now I with to a be have. think, do tell diagnoses with their be it first office in or Right patient fibro up fibro not end they fibromyalgia. And that very adding the smell and lot rule-in because eat get look, lupus the have because to able of because

seeing the that really development lupus of asset So well to looking well. as forward product as the nephritis

Okay. guys. Awesome. taking questions, the Thanks for

Thank you.

question. with Paul state KeyBank. from your Please question comes next Our Knight

Hi your your just Ron. Congrats know from I success on test the with on reallocation is away fabulous. SIMPONI.

quantify And that. your could fibro, of you time then could and us Is expect it people, progress a little would you sales XX? going on on or is data ahead the on On bit metrics you the of years to XX virtual starters? kind it A of the couple for that force? give when line

Sure.

as of far as as market CEO, soon quality get possible. So am I line, course a very the to time as on fibro anxious this as product

be careful good have the development. science always too to to scientists that got will I much my rush it's because good product not lead So

working State is to up nice. develop obviously So the validation with Ohio on which is recently, picked the stages we this, analytical has really enrollment here are and for fibro,

want for as these soon the stamp going are have people studies mean the I is as These public with give everything little needs to know fully that we the I product a science my the big I all into with this But possible. And can clinical this would dossier I to they talk has get utility areas. there done do to of the clinical and to it to marketplace. we a baked then and to TAM the on think end number. time some get the dissipating urgency a want not And higher correctly. validation. I out market. launch I correctly rather that in and the studies a product we date. a COVID to big do bit do

on model. we are fast that moving can as we So as

type that a job rep. have we one virtual good to this a excited done of have zoom am people. the As thing far I pre-COVID has we But person. of are now need COVID that virtual for would doctors seven pretty for this I are not you ready skill looking the calls type doing with I about of different effective as reps, right that little believed they it. right It's sales be has the as as set and they would recruiting are. made type of think But

lunch and have Grubhub can a with conversation them good you them. a and send sit You there

is think that sales I doing sales So Paul, to representatives. adding lot virtual of calls good decentralized different it's a us a are your change

then, quantify And under the Okay. Highmark? lives number did covered of Great. you

We Mark, in that have you? do you of did. front

Covered lives X.X Highmark Yes. for Absolutely. million. is about

in correct? QX here, And that's

Yes.

event in-network decisions have which We QX event. West, a was we QX. And is Highmark from in as also TRICARE the the QX coverage disclosed, a well.

you compares XX% And that ago? really then obviously ever sticky. you ordering rate. pretty quote seems do feel have sequential to It you a retention like dropouts? the Do How year

entered sticky. negatives. being very products And or they false they the many much as think false have many either that's before well quality too of anti-Smith, I we and Very anti-dsDNA, as I are It's really product testimony all positives to old said, very marketplace. of have didn't fact few a they the Like ANA, too the dropouts. issues

stick the times to one product I a Crohn's one quarter, did more XX%. our have doctor am stick be XX at and a get than in thing that time. a at XX magic appears So number uses fascinated once looks it and number, XX%. more I never product to or can because they I

a And is it it to testimony to physicians value the the and this patients. that the that So adds way. really been has

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Okay. Thank you.

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