Release Date: August 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Could you remind us what steps you still need to take once the metastatic LCD is finalized to secure coverage, and what is the timeline? A: Once we get the finalization from Palmetto, we'll go through the tech assessment process, which will take several months. We need to train our sales force and ensure a structured rollout. We expect this to be a 2025 activity, starting in the first half and ramping up as the year progresses. There are roughly 30,000 patient incidences per year of metastatic prostate cancer, with about two-thirds covered by Medicare or Medicare Advantage. Commercial payer coverage will take longer.
Q: How are you thinking about capital allocation going forward, and what are some key internal investments? A: We are making necessary investments organically and generating positive cash flow. We are adding commercial teams as needed and investing in three long-term growth drivers: MRD, nasal swab, and IVD projects. M&A targets would need a clear path to reimbursement and positive growth. We are in the early stages of our 2025 budgeting process, so capital allocation for next year is not yet decided.
Q: With IP litigation in focus, what are the implications for your MRD portfolio strategy? A: We acquired C2i for its whole genome-based approach, which fits our platform and provides more freedom to operate in the IP landscape. We don't believe IP litigation is a concern for us due to our approach. We don't see a need to participate in patent pools at this time.
Q: How quickly do you think commercial payers could come on board for Bethesda V following Medicare reimbursement? A: Some commercial payers have already been paying for Bethesda V, and now with the LCD, we can leverage that to update policies. It takes time and effort, but we are already seeing some reimbursement.
Q: What are the levers of growth for Decipher in the back half of the year and into 2025? A: Growth will come from market penetration and share gains rather than incidence increases. The market is about 35% penetrated, leaving significant white space. The NCCN Level 1 guidelines are a significant growth driver, contributing to a step function increase in Q2.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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