Adaptive Biotechnologies (ADPT) 1 Aug 242024 Q2 Earnings call transcript

Good day and thank you for standing by. Welcome to the Adaptive Biotechnologies Second Quarter 2024 Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Karina Calzadilla, Head of Investor Relations. Please go ahead.

Thanks, Anton, and good afternoon, everyone. welcome call. Adaptive to XXXX second like conference earnings would you Biotechnologies to quarter I we a today, the Earlier issued second results Adaptive quarter for financial of XXXX. press release reporting is at release press The www.adaptivebiotech.com. available

referencing Investors a live has this we'll presentation We are our to to corporate webcast slide the conducting a posted on call, of and be section been that website.

the federal performance presentation. differ filings and will on forward-looking public business forward-looking statements current set as statements a of from the meaning depending our this of During today. the These in with Actual the other are within results events statements, future which forth financial and the materially securities make call, may SEC number reflect regarding and projections factors perspective of of management Company. in of today's listed future laws the management's

measures during from found In be release. non-GAAP addition, GAAP call, reconciliation in metrics to will non-GAAP can be and earnings a financial discussed our the

are CEO call Officer. the our and Robins, Financial Piskel, Kyle today Chief Joining and Co-founder; Chad our

members for that, the available turn will Chad Q&A. over management from to I Chad? call will Robins. With Additional be

here earnings thank It Thanks, second Karina. our joining is quarter Seattle. and us Good Seafair on for you afternoon, everyone, weekend in call.

are if couple may pause are seconds. flying for Blue So the live, Angels a we overhead, and I

jump Let's in.

Our second quarter results are extremely encouraging.

Total observed spend X% less growth achieved line, clinical prior of MRD year to We capital, is reflects reduction a X. with of Sequencing growth ago. quarter, first and we from XX% This quarter are half versus versus fueling X% in compared and had of laser on what increased spend, ended and versus pharma. points year prior with X a as this reductions quarter this year managing prior XX% our reducing last year you on grew the and top both $XXX on cash costs, this approximately million. exactly XX% versus all decline the margin gross can revenue operating segments. Slide cash at sequentially, and percentage coming focused significant across a and see one-time burn

this performance, full year our As guidance. we strong are result a of updating

We are revenue annual further operating prepared Kyle remarks. our will cash details burn. and our our spend reducing MRD in provide decreasing range, his raising

continues Now, growing year, clonoSEQ the let's driven look revenue quarter XX,XXX take marketed versus We XX% a at all had business and prior prior MRD delivered Slide closer volume. and volume the sequentially ASP. both largest contributor, versus XX% XX% observed record on representing Tests in quarter, versus prior indications. Multiply X% to myeloma by another X. tests. to grew over digit be growth clinical year double of

growing point lymphoma tests strategy, DLBCL Importantly, of XX% XX% of now our a versus year to XX% multiple with be quarter-over-quarter. continues of contributes non-Hodgkin's testing clonoSEQ XX% Blood-based a at XX% focal in representing currently myeloma with tests at ago. blood

the second expanding be planned of We business. and MRD remains for a expect in as accelerants as mantle additional of blood states, key area moat half. EMR cell of in important both in integration blood for growth drivers clonoSEQ an our during investment disease other coupled continued for our evidence competitive promotion utility with to business, lymphoma, future of testing an launch the

or have with beyond half planned work activities year-end. Notably, second the Epic We Flatiron with We remain and are X that XX in now confident live integrations in OncoEMR expand this year, more progress. completed Epic Epic kickoff will with by to the our more accounts QX XX will our integration with Health. have accounts of we integration in

year, test the coupled optimize $XXX ASP policy the increased and growth, confidence reduce revenue QX per through X% QX. to claims the Medicare, to grow non-contracted continue gapfill half we management which versus our with front, by of solidifies of in preliminary to drive Results by reimbursement the rate cycle set of further end the by and On out ASP first XXXX.

Looking Pharma at on MRD Slide X.

business XX% in to prior a a accelerated momentum primary milestone myeloma. MRD included drug which another the new heels of therapies in of revenue in of which announcement This approval last versus as Pharma multiple of quarter ODAC on million $X growth with year, approval had Our support multiple voted from strong the quarter, using myeloma. a comes favor endpoint

In MRD recommendation. have endpoint use ODAC in are We made are X seeing the booked primary we studies decision was studies discussions post positive based where months, advanced impact for and as already new the X a the few outcome. new to this past another on

and X about upgrade. converted to partners endpoint we underway studies are X with that a also from have existing endpoint, primary talks in another secondary may studies MRD Additionally, already a

endpoint also we continued states as for disease in to DLBCL. and in other partners Importantly, as seek are of seeing MRD halo primary positive incorporate MRD effect a CLL the acceptance increasingly a our

to can test assay FDA-cleared sensitivity the standardization also in but developers, not needed standards, drug As FDA's multiple choice meet that confident myeloma the that will for deliver MRD of clonoSEQ malignancies. consistently only continue be to are the performance the and other we lymphoid only

towards of work autoimmunity. turn we are let's development to and impact therapy many diseases of several update the and devastating we receptors an our cancer in products with Immune TXD committed therapeutics in a Genentech we've In immune-based possible, deliver patients causing successfully to cancer others. with T-cell and patients cell and on programs. at excited are as We're closely and making appropriate oncology, the TCR-based continue cancer time. In Slide autoimmunity, as likely to good discovery Medicine Both and companies Now, MS, cell will that provide progress subset high autoreactive X. therapy differentiated identified R&D to in future

discovery efforts TXD. in This quarter, we our started target

indications, disease we confirm As makes we is to or completed assumptions the biology the start functionally This multiple X, autoimmune testing and in X lead Wave this our subset goal sclerosis to these By type our that autoreactive immunization quarter, to antibodies bind. identify did mouse problem a including our identify make we derisk in protein which these to sclerosis, sense. Also diabetes. year-end, candidates. TCRs and of helps antibody and aim multiple first our successfully campaign,

to over it going guidance update. walk Kyle? to and the pass to results Kyle I'm through financial Now,

Chad. Thanks,

year XX% the $XX.X respectively. the from each with testing $XX.X second on revenue the XX% Total with start was grew and XX% from revenue Let's growth, to Medicine. million, MRD Slide from X. with for pharma million, XX% MRD of quarter XX% and driving clonoSEQ quarter revenue MRD in and approximately up partnerships a ago, second Immune

XX% quarter, revenue versus was XX% Medicine year million in services. million, the year in grew by MRD recognized QX amortizations the Genentech Immune ago. Immune anticipated an milestone in down no -- Excluding upfront from $X a recognized regulatory in milestones from $X.X a pharma milestone XX% by this driven decrease revenue $X.X in million a QX of Medicine XXXX. XX% and offset revenue partially related of was increase This quarter decrease ago,

lab, P&L. costs points prior the cost margin, X want MRD XX% down lower the year amortizations, that lower attributed per sequencing highlight overhead excludes from milestones points was X an sample. was Genentech I percentage mainly which and sequencing production margin sequentially. driving increase for percentage The versus and to in increase quarter, the Moving improvements to of the

decrease strategic decrease Excluding was revenue, of and in biggest mainly with driving This XX% continued cost operating Immune targeted one-time year. the driven impairments the was driven post functions $XX.X on leverage of asset such Medicine. R&D emphasis investments decline, last costs by across of representing review, restructuring total inclusive severance being a from expense, from million, related to initiatives more contributor by

that spend flat reduced reporting higher company million the segment of revenue. adjusted reductions the $XX.X as and table adjusted a this EBITDA million $XX.X quarter, side quarter second EBITDA remained to you deficit first the operating $XX.X XX% loss the year from EBITDA offset quarter from lower and loss was on a first were As of driven $XX.X a see the ago. million a the compared by Genentech MRD of in the by Medicine sequentially both adjusted expense. XXXX lower Immune Total slide, loss can by operating right million revenue was in in of quarter, was

which royalty $XX.X quarter million more $XX.X income. $X.X million was expense from was excluding OrbiMed compared again interest Finally, with million, offset loss one-time to Net last the $XX.X interest or our for charges, financing by million, was than restructuring agreement asset once year. and impairments

turning year to updated guidance Now full our on X. Slide

$XXX we the We to about $XXX guidance fourth of quarter, second realized. results inclusive XX/XX and regulatory MRD the trends the in between than $XXX to expect With are revenue throughout from quarter, increase the respectively. to respect the million increasing This MRD third in half, to be now revenue million. milestone year weighted second our our guidance of full to $XXX expected range better prior million million reflects

previous approximately operating reducing continue XX% approximately the to We the excluding leverage $XXX of and impairment spend, one-time from million now sits manage estimated business million, within are restructuring as also our to a $XX $XXX asset spend, Immune drive $XXX across within range to million Of the total business investments. to Medicine. $XXX XX% million further this reduction million and MRD company we and total charges,

a estimate lowering year. $XXX for our annual reduction over XX% to burn burn million XXXX. our approximately of full expected This of burn. second the and be an In we are $XXX half implies of cash versus million represents addition, the of now annual expect previous $XX the year cash We million

is We the from updates With remaining we continue Medicine back diligent XX% and cash Chad. you to with corporate I'll strengthening expect to to this to business. approximately come year approximately MRD from costs. I the Immune over hand it the business of further unallocated burn XX% trajectory of The throughout providing XX% financial profile. as financial our look to the forward year that, continue due

am first by the team's execution Kyle. half encouraged year. I of the in the Thanks,

business focused in We our drive our and will revenue continue MRD Medicine. advance Immune in to growth programs

up turn targeted do will to value. With the enhance disciplined operator for like questions. I'd investments and spend call to that, open long-term back the with to call and over this the We

question from BTIG. Mark from Instructions] Massaro comes The [Operator first

first strong new I I studies that find number are Congrats on the of interesting guess a primary quite beat raise endpoints. quarter. my moving which and is to question,

I about X studies, new believe, talked You QX. in

X You're advanced in more.

in I economics? be terms past, Xx just versus clarify greater roughly level can you say maybe of think you that in Can the a for the a endpoint. of secondary economics unit heard just the that primary I've

Yes. I where delta I that milestone think what is those we to relates you it I And is to mean economics. revenue could you're realize that as studies. from that think the see referring the

I studies studies, exit bookings the executing of And and it I to that relates think these XXXX, we as XXXX think that focused the a and growing will bookings we on year. expect the tailwind. be continue to really as these we're the backlog

I economics, the we like of unit So the but sequencing it faster that revenue primarily milestones, think may as I it previously. catalyze think as relates to the than anticipated

working Okay. I disease a additional in And FDA That's found then interesting it there's with helpful. the states. group that

CLL and months. us think or and called in timing group? this DLBCL. I how Do this a you this any about stakeholders just you you give some us out are playing sense Maybe of discussion think for, And out sense the over there? involved coming have for through you walk the

Yes.

Group myeloma in be Working for with involved did those accepted they're to on of multiple and committee. myeloma to with to others like We And support a for in the we thanks the time quarter. our clonoSEQ as then and provide principal don't as are International of sense the our lot they have discussions, very Mark, them a help appreciate in multiple a First, honestly We take us I Myeloma conversations. investigators much endpoint. It timing. compliments ODAC data it. the that some presented did to investigators, those primary the -- asking we question work

disease think that I first of least fallen, once kind faster at has hopeful next we states will be the would moving be forward. However, domino the

that new clinic lot noise thing has well, is I immediate, will the discussions MRD now chatter of has used ODAC other around initially a more to and myeloma reluctant. investigators as in it just in made The and multiple it's were been decision with although the not kind great mention, There's catalyzed being see. who which

are I or last it approximately is as not, for discussions. deck Maybe That primary. myeloma. And think your if I I X don't It you about Excellent. me. know looks for X you've like talked multiple that this had advanced one XX. if be clinical number but studies XX have could right, X. now was in in

X that out, I from think say, think think this longer we to where where go looking as do XX, about that term, might XX years could X today? you or

Obviously, bit that. hard-pressed and of I'd into on road, those the number into be significantly, to a making a little to believe put up Mark. making we start we we that projections, up get going those down to a maybe visibility this, go better hard have It's kind projections. Once number but is year further hopefully could

Our from from David Piper Westenberg next Sandler. question comes

beat. Congrats on and the the big cost MRD reduction burn

I top line in you know. the you don't do add there. addition did do on I revenue should we actually that here that, I So if or -- any too in that there maybe you you ask business, hate be Chad, risk that that to ask, question celebrating you you think I'll the anyway, particularly reducing could reps the growth, Is got there MRD business? stop any went achievements -- is to any like your this could hurt this because lean and OpEx. would -- Maybe accelerate to

the David, about where our with we our performance. and of untouched, think marketing, G&A expenses. kind manage be and and No, cranny know, every reduce of you business untouched, lot within looking to just except able We're talking at Yes. kind nook I to so overhead relatively always sales the were a just

is in answer we the access team. no. our kind market are of adding So And is where

alignments you continue focus where But reps in of at reps we cash at consistently. kind essentially monitor into the areas kind coverage look as we add up we needed the are of and believe of coming look investments business. we do can collections, and will and that territory these to as and continue us, to we which If particular ASP the make to

we're numbers, the said ways our make foremost, very another that So we hitting we across first the to, derisking that we're right looking line, we final operating -- -- the point board look the is at and we're the all that continue feel it's we're making hurting right comfortable can and and and efficiencies sure the moves. we without that way, numbers. top about But investments kind of

really, Really, really Got it. appreciate that.

to terms Just talk past there. then I get kind are Where we of potential I and clonoSEQ. in know made operating some are COGS kind you want -- cost at both then of leverage the And gross of progress in this a of just how to X-year, X-year the business in that lot in some I some of just terms about think know just the you've of reduction of we getting via margins as for reductions of efforts that period over that there's And naturally should more to want becomes X-year kind through volume to a MRD? ask more about a questions. or a And X product? analysts there. lot period clinical I'll there? stop

to continue revenue. yes, the efficiency we've we of org. our And in volumes in And half through increased seen the increased mean we'll in continuing and the the it Yes. back out and flattening of are year. to through relates quarter see naturally year, we're I to I the first that think some as put place, getting progress, that I as you've of half the the of gain think some leverage initiatives

additional I the of think we're leverage going to back year. gain half

sequencing to I on think improvement X% I would margin line. X% say that

Over going even end to over continue that a term, and and and to the do improvement large only which the business, support NovaSeq should of that clinical continue growth the target the to at X-year. margin line, a term. And the will get pharma to performance, which as one got back to in of on initiatives lot going to the XXXX, the drive the continue I over day, also us durable XX% expect have half long business see along the ASP execute or is more amount X to milestones drive that absent range some which we've I efficiencies. note, of to point, to with think again, and the then that ODAC of launch on, we accelerates some longer makes the drive last And work that's of we can the the we

Congrats big reduction the and reduction and on cost curve beats.

Dave. Thanks,

from question Morgan from next Our Tejas Stanley. Savant comes

Mark's to to ODAC related follow on question want up so the guidance Chad, and on. I

to you And those does of today MRD on So beyond seeing the trials? of as all, side the a that FDA impact I adopting and accelerating terms penetrating first you of sort in have endpoint if cadence what when adoption related in potential on that little will, talked any finalize of do in expect And finalization note, well you've in terms past MM? then that you're about the a effect, a terms of think of in clonoSEQ. clinician halo bit

would that helpful. on be color any So

first the and Bobulsky, impact perspective. what's Commercial anecdotes over part, Officer of to talk it a business, you pass on going Susan give the then to Sure. of Chief I'll the as some and the kind MRD clinical cover from I'll to maybe about

As this is that kind a it this around for of of format is messaging different to exactly council to advisory was gotten kind And whether There's some a far kind come they're paper as little is of bit of the kind kind of remember, we've drug little ODAC vote, debate the a kind approval. going of as than a cement positive to bit be -- the going how decision to Obviously, a FDA X out of formal as formal to. it's overwhelmingly it going XX is white a as or vote. decision. the

have exactly positive had will say it's line or don't had timing a a the I Well, to impact. format. But as we this So only direct no the impact.

opportunity the to it Our shape FDA know not drug the our any pharma based now primary form. forward, that's pharma for a every partners that decision. are FDA Neither The endpoint partners. look on or -- a is approval waiting. this on have as They in waiting way, they aren't coming at

-- seeing kind great we a that would sign why already the in -- additional of and say, how XXXX doesn't solidify more opportunities can as So milestones but indicator, health -- seeing Kyle essentially, And provide get to long-term revenue you into It's more it anecdotes those pharma bookings from business and of convert but caution this, are we're discussions want going we're revenue we revenue. I good trajectory seeing leading future into those that's the have. I that's the out more as just trials Susan, mentioned little do a those as that that achieved. I'll the trials. bit, of bookings sequencing impact necessarily those some clinic? the you're perhaps up, it's

Sure. approve to that's a it predict that drug to bring drug the a lends can credibility having an with seeing response of that incredible patients. a I the Thanks, as we've we've is Chad. conversations seems your into MRD bring seen marker framing aware view this to that are dialogues of Since it up to for MRD. efficacy of that and resonate, you with and it vote, the amount we're that in context of increasingly also FDA's April, it the and been ODAC We patient. way individual The favorably really in market, vote behind about for in the the vote of to individual your think and them and MRD inform of conversations they marketing, that by confidence and use patient, it, clinical efficacy we that your can clinicians predict drug as assess can means and ODAC

disease rates, will interest a clonoSEQ see to So patients. is I a being are words, eligible more in X call an other an appropriate the whom for load the or that sequences as sequences and ID companies that use their we fresh to in is time more would might order we MRD ID rate first pharma of they are what test. patients the physicians ID get clonoSEQ at diagnosis. another decide endpoint, context we track where they when delays and also of for But test businesses. come evaluate of love think find testing of to lot the that's specimen there's anticipating of along, identify MRD. the need for area them hurdles there's our pharma so tests step of IDed finding trial to that sample tested. patients interesting in first when synergy high an increasingly The for really and no In samples for of higher resonating. Interestingly, MRD that Calibration at we we diagnosis any most patient's the they And viable see

ID you be clonoSEQ do essentially And so companies X, community can diagnosis. from in be they're can to in our traction, been strategy we've of accounts, I and but And more particularly upfront pharma where time that at at saying bring good would on a is And enabled strategy do whenever a of And more working more diagnosis. and ID are companies accounts, to see it MRD to provide to great time, bit actually a the this correspondingly, pharma ID essentially, get tailwind starting saying that means interested more to to it to for us, testing pushing in this new time accounts bring eager our we're that the need us they the they're clinical if trial, patients and trials to testing going patients board, they very more if think a the "Hey, MRD the on would be are upfront?" is ODAC us, for with clinic. think day of and tested we

for it's patients. win-win-win for the something pharma, talking So clinic we've about, and again, it like resonate. seems actively us, seeing that's very for been And and a the

of on Got then side a couple things. clinical the That's more super it. And helpful. guys,

confident getting you're increase next So of maybe years $XXX of there. about you the for Kyle, talked that ASP couple over and

that rate. got CLFS preliminary also You've

gets XXXX. X in Jan it on think finalized I

need where it from relatively you the Should sure between -- And Or be ASP think perhaps today? where or increases? there's it's of front? any a is So it function the help be just a of to are just us be and biomarker moving the I'm on do that, color walk more to beneath few parts sort it a on or through even from you education standpoint, some there in cetera. investments of front-end you et that Should could setting physician come are commercial cadence community keeled second, including you loaded? today the then bill, time?

question it I'll -- Yes. Susan ASP, off really to the and ASP But pass on contracting on again, and of to from then give some acceleration the X comprised Tejas, pillars: is our key collections. I'll you side. color coverage, take the plan clinical

So business that We're have and actively can in look force have our is compensation broader actually of coverage double the place. And the indications monitoring that on MCL. to we've policy side, coverage drive claims -- kind We're we've set aligned recurrence sales click and coverage we where on including reducing selected we're incentive And now in seeking already of on core Medicare that our plan. solid we how out a structures, to further at modified for of coverage discussions for indications. novel for what exploring indications. also that's are submitted

We third as also result have in where wish in get that our our really changes And the order the that tests. we shift then the will as for. of policies to have those kind percentage increase mix. we've who of is percentage contracted grown really that, towards really a of indications seen that paid a positive tests of a mix for customers component operational of out-of-criteria new And ordering requirements

the coverage. of pillar So covers that really first

we contracting. second couple The about And there's a things on is talk contracting. one

that, our of to agreements meaningful negotiate pricing continue the that expect at payers. objective publication to to preliminary about secure already First, this, within gapfill the obviously non-contracted with really here we above we've but rate And provide or The leverage. that price. Medicare we is talked

conversations of the and collection out those have one above go better. And that we to can the with steps with rate and to what a I'll large we're the and and performance. expect good of, at that we're Anthem, then tackling waiting range. that example payers be it A reference with or for is have set, which say, a new to different payers, of outstanding just we that or be as they taking that we in on to As go third call go benchmark this is few rate blocking collections, area Anthem is

on. Medicare is like resolution a think directly these we're focus going which we to us to projects private a to the And for first payers. industry, see at place There's on resolution we're collections. from large problem national Advantage that starting has The Advantage real claim CMS continue been support engaging This with I help of a the after. claims we're Medicare kind this level payment some

in as The question, of we've I just a is resourcing management. -- second that to component claims prior mentioned this but our increased allocated

rate management. dialing. that comment on So we on the in prior significant Susan, regarding you to actually going PLA final do have further by that, et people more We after, actually implementation place be question authorizations, I'll want supported claims how and about. some code, Medicare new the and new clinical? really I progress more call we've we cetera. And initiatives talked actually the there's put it, it. With nice have and for We will headway do think some smiling that we to And AI projects is the process made our on of pillar his of preliminary appeals

Sure.

I think we need setting. need you where asked to whether the community about we're in invest additionally. be to we Do

steady seen quarters, actually can somewhere our coming believe over consistently segment. contribution community. that continued growth you've the XX% business And So that from QX higher. and academic concert in last some with over really much XX% We've we kind time, between nice seen be several in of in our the that acceleration in community of segment

can't at focus other. and we we segments, in So lot a so the have on the expense of both feeling of one only

an proportion the is community treated penetration it in to setting. community of long-term given entirely lower our factor settings. lot who We potential community is success in critical winning in a for that play, have capture the but business untapped But either or to much going a the -- is academic are in this we than both. be said, of patients to partially in And

recently So do months. that a starting things plans then and few we in that to a done couple things to we've will we be the coming have of there's and do

of have peer-to-peer done they question invest both And education and that So focused and ways, to connecting the playbooks show practices that is both leaders, how thought will of really of to get thought the leaders, be our clinic. academic the on to to reorient programs MRD written, recently are in community programs and use their one the towards develop. educational dollars we own of is #X things the we've a to other in sponsorship physician who really medical verbal, types education the because their we in data using bring community continue variety MRD, mastered

some have but MRD, now actionability a there's will right the that over data nice years. lot in read motion out sets We on next more couple of very

So on while KOLs show we're comfortable have really waiting with. that, let's gotten the what

So that area right it's in ensuring we focus a team have been big as investment and place. as well of the structure

a community But what first where community patients folks strategic folks account And practice strategic benefits. recently beginning we've oncology driving contribution dedicated to team's only also we've in strategic sales leader, we are the back of a team. our team community engagement that business. majority are in been X% managed. when our really they in you as So at started. which or super drive is which under the the of tremendous had of accounts community of a we those And were call reorganized C-suite small That team, XXXX, managers. network, variety able know, hired the group, got increases the We

you've integration is in about into bit, this where place to we little other invest coming The EMR a are and the the community. months, going heard

Flatiron have projects integration number initiated which discussed, we've is ongoing a the community. footprint integration of big integration our and us recently will a or negotiations but allow partnership significantly So we for or increase discussions in to

it. color, the Got helpful. Super all Appreciate guys.

increase. the on over course the talked next Tejas, about of the -- X $XXX the increase in just ASP We've years.

that back half we'll of effectively us evidence ASP seeing to years. is kind few confidence over and in next year. growth can this from into is I Chad think of to gapfill rate the we're early what of confidence got heading XXXX we've deliver the the the continue summarizing the And gives strong that from we initiatives these some start what see

Dan Brennan Our comes from TD next from Cowen. question

little Could improving on quarter? improvement. the the guide. quarter. of on burn what Maybe went the just Congrats me, the the speak kind obviously more better taking in the and bit margin one a towards or you just You're excuse guide, down

Just about you of the getting items line of half kind some the the better? back of about from year what in are what's thinking

workforce the of Dan. we've aligned our where say the think I aligned should a get to would here be. Yes, business with and done we spend number initiatives

the going we're continuing the in revenues that, to think We're to expect especially those continue I both to it increased as increased and profile. margin see clinic volumes relates to pharma in in business. in leverage areas, the

play to So to of out there. some continue we've initiatives we're going think year, in for got will in see the I decent half that to leverage back XXXX continue place that and the

I the burn as to business, benefits relates the continue of burn, like IM, focus have the the some confident be of in us half longer in of to that to one QX, year the them, mean, had term. the reduce the we which the a investments place across some as led first our a increased yield significant again, restructuring the to being business milestones over put we sound and but it spend, record, I don't As clinic. result to reductions relates collections will initiatives in of pharma it and in broken the But you the want confidence to

going to is of back of seasonality bit spend half the the So in of I in perspective, bit we're so first a a year. path. than it's of that's the that a year half slightly continued There the a year march higher the from course just the see is down why what just think little

it. Got

of I That about business? that Biotech a the good. basis are like has a What side? immune generally been funding from guys a you on the spending macro kind seeing period of Okay. like that's of environment. last What sounds more side over the just medicine of healthier. been know time, drag

Are you IM of perspective, kind pharma kind talking about Dan? from an of revenue

yes. exactly. Yes, Yes,

Yes. Chad. Sorry,

Yes.

based of there has that. reminder some a -- revenue on we been everyone, as not don't But to report Just kind impact. we're

for. I think being our depends it used technology is on what

different pharma companies used therapies. we've response to kind where used up And have variety and a and embedded, we are the of of the to research to of of different very longstanding looking Some many But aren't at it of now be. kind relationships what well. we've continues immunological the early it kind pretty I in contexts, development they which think budgets been hold

how keep that DLBCL, -- quarterly It's Does kind expectations? like think, I on of opportunity still linearly, nascent. acceleration maybe any then is XX% say sequentially. for versus Like of you heard an And -- is I there what's is kind or growth, there? progressing that fairly still penetration going Okay.

over on answer XX% -- question, it pass but the was that to do I'll trajectory? it to Susan, sequential you Susan want color And growth. some I'll to Yes. give

Yes. Sure. Sure.

been total is now from business, internal data. business, community see up which to And uptake X% also out new and hitting to the X% our report of ago. the with setting projections to DLBCL pleased. So level indication a is pleased significant our up opportunities so we've year DLBCL been continued with in far. clinical We've We've been

relapsed/refractory and of nice publication saw for clonoSEQ the You study, saw ViPOR. known a QX in a nice the was survival all therapy progressed, throughout who of study, have those at that had remained ctDNA MRD clonoSEQ. of of or ability progression-free XX evidence the better X And to patients the May. And really terms context study, assay published as X In in Journal patients in noted a regimen out New on from the the we undetectable in It's as by regimen, they study earlier a DLBCL overall clonoSEQ that progression-free may May, relapse. achieved to England and -- we worse in in known it differentiate of that survival. the in have that that of had prior detectable and would end performance in Medicine was really complete the response of who

it nice the patient the another So was of in we assay population, in a demonstration, relapsed/refractory albeit of a setting. small saw performance

adoption, to ongoing DLBCL as to ongoing our and access increase certainly data, expand the with well continue be that pharma to work for as and We catalyst by agencies utilization a will of companies. regulatory generate

DLBCL So FDA over expand to offering also effect the actually York on York, which State the to last pharma which week, our the have a New DLBCL if will halo CLEP, in access time. New we approved. submission, be to expect our in setting in both to clinic submitted useful And we and we continue work

Congrats.

Dan. Thanks,

comes Brackmann Blair. question from William next Andrew from Our

accounts integrated, back Maybe sounds can nicely moving about just those you're impact be going what things integrations. I sort just to terms next the But next are It you talk so Epic the couple seeing any the of just And who have like the maybe there. necessarily we few just but thinking of how utilization over about in not over guess, uptick? of should of more years? here, quarters

Sure. Susan?

Yes. sure. Yes,

approved on test account They the variety those as progressing were upon with ease ordering the smaller reflects increases a that mentioned, pickup additional are sites for integrated. very funnel then actively side. X also where Chad X volumes them the months, have saw increases providers, integration. relatively waiting and plus in use to number started which Double of integrated X in integration, accounts, digit the the in XX of of test. of So now quarter QX. they've others sites the have the adoption significant we towards so brand for completion of have nice to X and implement a of of the been resources or But the that kind we able in a and and accounts within integrated be are been immediately about just we new almost

some in also improvements nice really operations. seen We have

have Epic in likely team from complete submit the have are that example, less to information customer orders claims require we to follow-up discrepancies successful to more our likely reimbursement. through For which that billing service accurate need are come or for

a recent clonoSEQ those we've just those days are variety accounts X adoption. are nice from getting seen so but But were very of because that we accounts accounts larger The relatively small were accounts. accounts early in potential, X benefits very started. intentionally And first that

over we'll accelerate can case, this X in potential get sort evaluate the nascent whether of to a and larger XX EMR So place integration from to accounts. next uptick months

will have the largest XXXX. accounts client live our some We by going end of of

you going for And learned a the time. what think But about integration to be Epic impact we're tell was to we've some had remind in mind so when we've about able the that's will that strategy I really more business. on you that I

the clinical And increase did use XXXX implementation our a on the so business to build accounts. in we guidance our in for Epic based some of of in set

on thinking the just you stands into and where next Perfect. should Can LIMS just just us couple level maybe the over set And to any how then initiative quarters that of on impact cost be about overhaul. savings we XXXX?

as things burner our Yes. in to in space space. With say as to we on to workflows, initiatives around back focus the do reimbursement that I'd well put LIMS, regards can the we improve that the namely customer off

projects review have and reprioritizing So of deprioritizing restructuring initiatives was better that this strategic time one the other right term the some a initiatives, ROI. of that and near out of think the we're coming now, at we

Rachel Vatnsdal comes JPMorgan. from from next -- Morgan Our PG question

about the MRD hear the as to savings then cost great So, strength and continued well. on

breakeven. previously had talked kind of of a second You about half EBITDA XXXX

right still way could line up save where is we So or about cost you're from that to moved think time see a the at get that given it, potentially perspective?

towards. that's that what way at thinking about that's we But you get performance, closer we're think right and right to point. the now, right what again, say as continue XXXX, to update about monitor I'd we're to now. we'll executing mean, that's it I and

Great. things. And follow-up, side COGS on on the then my of just

You question. earlier mentioned NovaSeq Dave's in

there? that think And reduction roll in where can you potential test through get for in? could the kick and think walk can How we out really on about per should how NovaSeq you So that COGS you us the rollout a and quickly timing that then COGS? with do

be hey, back it done anticipating, of end in. up a moving have a phase. get data, along XXXX, just uptake, it's undertaking, the we once but make it's we're could the of workflow, development running sure But the fairly X bit points. half this this to a the we to But about We're in we're initial cautious better and getting is We pretty meaningful between It's we'll think we'll once And see. we and can X anticipation so get we're be right. day, but percentage little getting our significant right. wait to see driver. need and at Again, the we'll going this in and done

reduction that grow, as cost volumes continue to And percentage in grow. Yes. will correspondingly

an upside that's X% reduction of cost half there. initial to XXXX, So of X%, it's back from of but estimate kind of

Nam comes Scotiabank. from Ji from Sung question next Our

a on MRD pharma. of clarification Just questions couple

accelerating received, For that secondary study? the is terms from accelerated -- converting since to MRD was the ODAC you just their was different Or from million milestone of it in -- customer trial sorry, it -- endpoint an that an implementing Or the $X as in I'm altogether? secondary primary primary endpoint? something acceleration

just and was This that's approval. study a decision. ODAC the of result wasn't got it in No, been play recently

ODAC. to tied wasn't it So

the endpoint. used Where MRD Again, data to was submission related package. in ODAC or not

might currently Got are -- flow that MRD kind switching currently of that And opportunity? on from their the might customers have incorporated side, from in the that another? standardization for to monitoring MRD be And one will, in -- pharma if who that studies to talked cytometry-based interested clonoSEQ, the you there are just curious you given if about? switching Okay. that be better it. Is on again, any customers are a those midway, a potential interest you of technique getting kind then

them opportunity MRD and with converting over in million, of same it mean, ODAC the X X certainly, years. of down we've X decision, I convert. of level of sensitivity whereas the without been kind even of flow to NGS depth importance XX,XXX is some the Absolutely, the to in I standardization. solidify think there's already an continues the to kind But have with

convert customers. pharma to those continue over we So

Thank questions Thank you. conference. program. showing this today's does I in further participating the am time. you for conclude no at This

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