Release Date: February 24, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: On the 25% increase in R&D spend, is this primarily for clinical evidence generation for Precise MRD? Will SG&A decline year-over-year to align with 2025 OpEx guidance? Are you still targeting a 1000 basis point SG&A reduction by 2026 versus 2023? A: Yes, the increase in R&D reflects our investment in clinical studies for FirstGene and Precise MRD. We are managing operating costs to reflect changes, such as the UnitedHealthcare payment changes, with a 25% increase in R&D and an 8% increase in technology spend, while tightening elsewhere for a modest 3% overall increase year-over-year.
Q: With the unaffected hereditary cancer market still around 10% penetrated, can you discuss the progress in this market and the runway for sustained growth? A: We see the unaffected hereditary cancer market as a significant opportunity, especially with our breast cancer risk assessment program. Although switching workflows in this market requires patient education and gathering family history, we are gaining traction and expect future growth, particularly with the 50 million women who could benefit from hereditary cancer testing.
Q: How should we think about revenue phasing for the next year? Is there any seasonality to consider? A: We expect an acceleration in volume growth in the second half of the year, driven by initiatives like EMR integration. Typically, Q2 and Q4 are stronger quarters, while Q3 is lighter due to seasonality.
Q: Regarding Prolaris and the NCCN guideline updates, where is your focus today, and where can you add the most value for growth? A: We are working with KOLs and guideline authors to address confusion and are increasing investments in marketing, medical affairs, and KOL engagement. We are excited about combining AI with Prolaris and offering MyRisk and precise tumor tests, which will drive future growth.
Q: With the exclusive partnership with PATHOMIQ, why is PATHOMIQ the right partner, and what differentiates their AI technology platform? A: PATHOMIQ is focused on prostate cancer, with deep expertise and established relationships in the field. Their AI technology, which starts from H&E staining, complements our offerings and allows us to provide a comprehensive solution for prostate cancer care. We have conducted pilots with PATHOMIQ and are confident in their capabilities.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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