Q4 2020 Centogene NV Earnings Call

April 15, 2021

[music].

Thank you for it.

Welcome to the Sun and the.

And first year trying to try and tea and angry since the conference call. At this time all participants are in any sign on and your badge. After the speaker's presentation that would be a question and answer session.

To ask a question during this session and you want and need suppressed star and one on your tariff and please be advised that today's conference is being recorded if you require any further assistance. Please press star zero and I would now like to on the conference have D. S. Speaker Tonight <unk>. Please go ahead.

Thanks, Sarah Hello, and welcome. Thank you for joining us to discuss our Q4 and full year 2020 results, which were issued earlier today.

You can view this presentation and the related press release on Saturday and its website for those unable to view. The webcast you can find the relevant slides on the investors thoughts entergy and dot com.

Before we begin please refer to the slide two of our presentation, which provides information about such statements to be made today that may be considered forward looking statements within the meaning of the U S securities laws, including those regarding our strategic plans development programs and future for them for.

Actual results.

Yeah.

Statements made during this call that are not historical statements may be forward looking statements and as such may be subject to risks and uncertainties, which if they materialize could materially affect actual results.

The forward looking statements on this presentation speak only as of today.

April 15th 2021, and we undertake no obligation to update or revise any of these statements and tours like future events or developments, except as required by the law.

Yeah.

Additional information regarding these statements appears on our SEC filings.

And it's now my pleasure to introduce it for today's speakers on Chief Executive Officer, and Al Dor, and which itself and our Chief Financial Officer. Following our presentation. We will open up the call for Q&A. We kindly ask you to only ask three questions I will now hand, the presentation over to Andrea Please turn to slide for Andrew.

Thank you Linnet Hello, good afternoon, good morning, everyone.

And today I will begin by walking you through all of them.

And on performance during 2020.

And we'll update you on the progress of our core businesses, meaning the pharma and diagnostics segments and provide you with further insights into our company and its key assets.

Richard will then take you through the financials, including what we have been able to achieve from our commercial COVID-19 testing segment.

And then provide our financial guidance for 2020, one and the business outlook. Afterwards, we will open up for Q&A.

Let's please turn to slide five.

And let me first highlight the key messages for debate.

We had a very strong performance from a revenue perspective, having more than doubled in 2020 compared to 2019, the company surpassed 100 million euros and revenues for the first time in its history for a good year overall.

Additionally, we have achieved a record adjusted EBITDA.

Both revenues and adjusted EBITDA were driven by the COVID-19 testing segment in the second half of the year.

I believe this is a truly impressive achievement and a credit to the strong performance of a dedicated broking team and team to achieve especially during a very challenging year.

And then looking at the core business and want to underline that this is our focus for 2021 and beyond.

Even though the core segments overall financials for 2020 reflects the headwinds from dependent.

And I'm pleased to say that our technology segment continued recovery and seems to lows in the second quarter and sample and order intake value for Q1 2021 is approximately on part with Q1 and 2020 and growing.

And pharma, we signed 16, new collaborations in 2020 and deferred to seeks and extensions of existing collaborations as.

And as such and confident that the overall core business is back on track for growth.

Looking at 2021 the positive financial contribution from our COVID-19 testing segment leaves us in a stronger financial position. These contributions have allowed us to make continued investments in <unk> core business and seem to Jean <unk> and embarks on its next phase of growth and that Tom.

I'm pleased to invite you all 12 of virtual Investor event planned for June 22nd there and I worked together with the St. Jean Executive team provides for the insights and discuss the company's strategy and future direction.

Let us now discuss the company's 2020 performance.

Please turn to slide six.

Yeah.

In 2020, our revenues more than doubled compared to 2019, reaching $128 4 million euros.

This increase was driven by COVID-19 testing each accounted for $89 3 million euros for the full year and $59 8 million euros and the fourth quarter.

We experienced headwinds for sure from the COVID-19 pandemic that impacted our core business segments, particularly in the second and third quarter of 2020.

Core segments gradually recover towards the end of the year, but didn't have matched our prior year's performance overall and that meant that the full year revenues within the pharma segment decreased by 21% and we think diagnostics by 19%.

However, COVID-19 testing revenues have enabled us to more than make up for the headwinds and the core business. As we look ahead into 2021 and confident that they will return to solid core business growth.

Now please turn to slide seven and to have a closer look at debt gnostics.

And that firstly I'd like to share an update on on the momentum from our diagnostics segment to grow.

On this slide depicts the sample order intake value for each QUADRA use and Q1 of 2020 as a benchmark for pre pandemic levels.

You can clearly see the levels falling dramatically to approximately 50% of normal levels and the second quarter of 2020, showing the impact of COVID-19 pandemic.

And we have steadily seen levels of recovery each quarter.

Approximately 80% of pre pandemic levels and Q4 2020 overall.

And as already mentioned I'm pleased to say that you have seen the trend to continue in Q1 and 2021, we sample order intake values approximately on par with Q1 and 2020.

And growing.

I believe this demonstrates the ongoing and increasing need for our testing services.

In 2020, the maintained Ozal and build our leadership further in rare disease diagnostics and continue to strengthen our superior scientific insights and knowledge.

We laid the foundation for this by author and 55 peer reviewed publications in 2020, which was a record year for same day Jean <unk>.

And he is truly demonstrates our commitment to continuously unlocking further insights into rich and I think diseases.

Some of the scientific achievements are shown on the slide many of them are proof points for increasing diagnostic yield with genome sequencing and Javier providing bioinformatics tools to enable best in class diagnostic interpretation for.

For the more our research and St. Johns to uncover specific genotype phenotype associations to understand and novel causes and unknown syndrome.

We view, our contribution and bedroom understanding rare diseases at the core for our commitment to patients around the world aiming to provide the best in class agnostic possible for rare diseases and you can expect more updates in 2021.

Please turn to slide eight.

Sure.

Yeah.

As explained we saw a deep and the number of samples and order intakes and our diagnostics segment.

This is true for the overall core business as you can see here on the left side of the chart.

However, you still make progress on growing our buyer and data bank, which include samples and out of state that and cell lines.

On the graph on the right you see the number of individuals and our data repository over the course of a difficult 2020, we still added approximately 100000 individual installer mtc centric data and biobank and increase of approximately 20%.

And the next few slides I would like to demonstrate how this biobank translates into valuable data assets. Please turn to slide nine.

Okay.

It is central to <unk> mission to revolutionize the understanding of rare diseases by connecting patients and their biology.

This allows us to address different use cases for value creation.

Our buy a bank can be visualized here.

On the outer layers there are.

Hundreds of thousands of individuals for which he has clear genetic information.

And these state that drives our channel model each on the underlying genetic constellations, which in turns buildup superior diagnostic insights and enables us to find and diagnose patients.

One example of being able to provide value and the patient finding process. Thus recently demonstrated regarding sort assorted gene and novel genetic cause of neuropathy.

Our global academic consortium recently identified 45 patients carrying a mutation in this gene.

This is a new genetic close on the chest identified St. Machines' Biobank already contains 42 patients all the exome and genome sequencing performed and most of them with HBO term space clinical descriptions.

Truly demonstrate that you already have.

<unk> and our biobank.

And in many cases are able to quickly respond can be ideally positioned to support R&D for finding new patients even for new diseases.

In addition to the growing size of the database the ultra prioritizes quality, one reasonably beneath our day to think its unique apart from its focus on rare diseases is the unique linkage and famous technical information and diagnostic findings and surety through careful curation of the cases and a wave you mentioned the quality of the day to description.

So standardized for HBO terms the.

And the continuous improvements to the quality of the data and deferment typically inflammation as reflected by the increase of average number of H B O terms for patient sampling and our database up from five and 2019 to 18 2020.

And I'm wondering example, patient finding aspect of our day to bank sponsored genetic testing collaborations like the one with Takeda the program focused on licensed from storage disorders for reach and enzyme replacement therapy exist, such as club Rico share or Hunter syndrome.

The goal is to enable a faster path to identify patients that by tenant screening or genetic analysis and accelerate patients receiving a diagnosis and potential access to treatment and.

And a normal year, we screen approximately 40 to 50000 samples for Takeda.

And that's announced earlier. This week, we are pleased to report that we have extended our collaboration with Takeda and Q1 2021.

And then when moving from the diagnostic use case to the acceleration of drug and therapy development Youre looking at the specific data points and tools that help identify biomarkers and genetic modifiers and potential targets.

These are the data set for which we have more information available superior description and phenotypes research content and place and complete genetic information as well as multi omics information.

The middle layer display enables clinical trial support and patient stratification use case and <unk>.

As an example, the Denali Corporation on Parkinson's.

At the core you will see the error.

Erez U S. Having full disease models available, which then also includes cell and modules to be used for in vitro compound screening vast stem cells.

Each layer and allow.

Allows us to address different use cases internally and of course with pharma partners.

On the next slide I would like to highlight two in particular.

Please turn to slide 10.

Yeah.

A good example for collaboration on the clinical trial case.

On the middle layer of the sphere previously shown is our ROE patch study this global Baptist and demonstrates both our innovative capabilities and how it can be a value driver for patients and pharma partners and internal development.

That's a brief reminder, St itchy and entered into strategic collaborations with Denali therapeutics for the target global identification and recruitment of Parkinson's disease patients with mutations in the last two gene and 2018.

And we were proud to announce recently that we started and now includes over 10000 participants from over 120 sites globally, which we believe to be the most comprehensive data set from genetic Parkinson's disease to date.

Ut lifestyle or broad physician network, which is particularly strong and neurology to successfully identified hundreds of patients with large two mutations.

The study also created Furthermore linked sites.

And we leveraged our buyer banks to analyze and predict consequences of reducing locks to function and important element for our partners and Aldi therapeutics with working on the large two inhibitor in fact, they're each state and our biobank already contained individuals who have homozygous loss of function and without clinical symptoms.

Which are especially valuable to them Audi base.

Based on a large cohort of individuals for each and eat some and genome sequencing had been performed in a diagnostic setting and for a wide range of phenotypes.

Not find evidence for heterozygous or homozygous loss to loss of function of Rins.

And any distinct channel type.

And thus our data facilitated the conceptual and novel confirmation of the safety of logs to activity and reduce treatment strategies and Parkinson's disease.

Fundamentally the array scheme for therapeutic development of such inhibitors.

On that note I'm very pleased to announce that we have just signed an extension of the contract with Denali for it and not the 2500 patients.

In addition, he also believes that his unique data set would be very valuable belonged blocks.

Including the potential to identify new disease modify our targets for Parkinson's and opportunity and if you're exploring internally and also with other potential partners.

Let us now please turn to slide 11.

Okay.

I would like to highlight targeting drug discovery case here.

You know that grocery as one of our focus areas that we leverage our deep data and biobank and.

Oscar and author and numerous computation and we have shown the power of license cheap you want as a biomarker for diagnostics and so and as a tool for monitoring and treatment response and quality.

And now we have a large cohort you have over 1000 data on the diagnosed <unk> patients and our data bank.

Looking at the debt offset by a bank we have over 130 fiber glass samples and have skilled patient derived tissue specific cell markets to allow us to continue to build a full disease model for goes sheet, thus, enabling accelerating and derisking therapy development.

In essence, you went from clinical to the preclinical stage here.

To this effect, we have setup disease model and the needed multi layer multi omics tool and.

Do you see its model for US is the patient derived tissue specific cell and module from stem cells and established with relevant readouts.

On the side of buy on somatic tools, you have generated better insights into Cushing disease through and extended multi omics disease map for lysosomal storage disorders by mapping or shape, you see subtypes from GE to phenotype.

Now our clear ambition is that the core data set and trade can be used to identify pathways and targets and modifying genes and do you have set up to work streams in this regard for.

First we're looking at lots of cheap Juan Esteban.

And on target this is well underway as part of a partnership it will take.

And we bring access to the large and they bring access to the large molecule Library day. One you have to evaluate the first chemical compounds and our disease model in 2021 and will continue these efforts in the coming months.

The calibration is built on core investment and sharing our findings.

Progress should be apparent and the next six to eight months. Additionally, we are also looking into novel target discovery exploring modifying sheets and the <unk>.

D C pace that target mining and novel target Densification will take 12 to 18 months.

And the new time, and the research project here will drive the development and private multi omics platform and capabilities, which will support the use case for other disease areas as well.

And of course, you won't stop and go shape I believe our buyer and data bank and its expenses physician network is uniquely strong in neuroscience and metabolic diseases, such as lysosomal storage disorders. The progress on negotiate some can be a replicating other disease areas and we are prioritizing day next disease areas, we believe from <unk>.

And we do so we will update you on those in the upcoming Investor and names.

Please turn to slide 12.

I'm going to give you a quick update also on our management team we have restructured it to really better reflects the two core segments, where we drive value and the future.

<unk> in my mind has always had a fantastic thrive for science and following science, but to me and I want to pair the scientific know how also with commercial know how and competence and two.

Debt extend we have created leadership teams consisting of a commercial for scientific leader for both our diagnostic as well as our pharmaceutical segment. Those teams will be jointly driving and the value creation of day specific segments going forward.

They are of course supported by dedicated highly scaled functions such as by Informatics and HR.

And in that regard I wanted to keep you also and upstate and two new members that joined US just recently and.

For us I would like introduce Napoli test, we try and send to team as our new Chief Human Resource officer, starting in March and that's what he has a strong track record, let's give up and talent fostering company culture and building required capabilities to achieve our companys strategy.

For the past decade, she has spearheaded a number of large scale projects and the talent era, such as building capabilities for lifestyle from pharma companies focus and value driving skills and behaviors. I think this will be particularly important as he move for it to our next growth trajectory.

And I would also like to welcome Maximilian Schmitt. He recently joined US as Chief Commercial officer diagnostics match will be responsive protect gnostics business strategy and growth. He brings meant for neuro spirit, having broke that silicon valley startup before they were acquired by rush at Ross Schmucks was a member of the global leadership team.

Sequencing business unique before he joined us.

Yeah.

You will have the opportunity to hear from the team directly at our Investor event in June.

Well with that said, let me hand, it over to Richard to walk you through the financials in more detail Richard over to you.

Thank you Andrea could I kind of ask you just turn to slide 14.

Our full year 2020 revenues grew by an impressive 163% compared to 2019.

Largely driven by COVID-19 testing revenues with gold and close to 19 million euros and revenues for the full year.

For our core business segments experienced headwinds due to the COVID-19 pandemic, particularly in the second quarter.

And the financials for our core segments reflects the challenging year.

And the pharma segment record at 17 million euros, and revenues of 21% decrease compared to 2019.

The diagnostics segment record of $22 1 million and revenues, a 19% decrease compared to the year 2019.

While such results are disappointing for the core business I believe the company was nimble and effective and its response from the circumstances as we made good use of our diagnostic capabilities.

We are well positioned as we continue into 'twenty, one and we'll get back to solid core business growth to materialize synergies and long term potential and its core segments.

The slowdown and revenues translated into a decrease in adjusted EBITDA for both core business segments.

Nonetheless, we are pleased with the momentum and the pharma segment currently and look forward to this translating into revenues and 21.

And your adjusted EBITDA margin and pharma decrease of 37% for the year for diagnostics segment showed a solid recovery and the second half of the year fixed cost elements result, and the adjusted EBITDA margin declining for your overall to minus 11%.

Having said that I want to emphasize that the sample volumes had been a pre pandemic levels adjusted EBITDA for the diagnostics segment would have been positive for the year.

And COVID-19 testing segments delivered 42% adjusted EBITDA margin for the full year.

Even though we do not have the comparisons for 2019 I want to note that such includes upfront expenses for the setup of our COVID-19 segment at the beginning of 2020.

Consequently, adjusted EBITDA margin that are approved and the third and fourth quarter as we increased our revenue substantially throughout the year.

Now, let's look at our sort of breakdown on our revenues and our segments came from in 2020, Please turn to slide 15.

As usual, we provide you with a breakdown of revenues and our pharma segment by new and existing contracts for the period. As a reminder, we define a new contract is one signs and the last 12 months.

We are happy to reported finding of 16 new contracts in 2020.

The majority of the 16, new contracts with science and the second part and did not result, and recognized revenues for 2020.

Rather we will see the revenues of <unk> and 'twenty, one and therefore and revenues from new contracts presented here are not an accurate reflection of our pharma segment's momentum.

And saying that we did see revenues from existing contracts increased by 10% and 2020 compared to 2019.

While it is our goal to grow the pharma segment. It is nonetheless, encouraging to see our existing collaborations bring and a robust revenues base, even on a year as challenging as 2020.

Looking at the diagnostic segment revenues from and the beauty decrease from 2020 compared to 2019 as mentioned in previous quarters and IPD is another core focus of our strategy.

Revenues from other test decreased by 19% compared to 2019, which was due to the previously discussed headwinds to a diagnostic segment.

As for the COVID-19 segment, and we demonstrated the significant ramp up and each quarter and 2020, particularly and the second half of the year, which led to the substantial contribution to our top line for the year.

Now please turn to slide 16, where I will discuss the financials for the fourth quarter and more detail.

Looking at our revenues for the fourth quarter of 2020, COVID-19 testing brought and $59 8 million euros. In addition, we recognized and adjusted EBITDA margin of 45% and that segment, which was an increase from 35% and Q3 2020.

Although COVID-19 testing is not strategic to our business long term the financial contribution from this segment is well supported and making key strategic investments into our core segments.

Shifting to our core business segments, and pharma, we record and $4 7 million euros and revenues in Q4, which was a 41% decrease compared to the same periods in 2019.

And diagnostics revenues decreased by 19% compared to Q4, 2019% and five 8 million euros.

And these financial outcomes reflect the trends, we discussed earlier and the presentations for it.

Sign from our partnership contracts will result in 'twenty, one revenues and diagnostics for lunch continued recovering towards the end of the year.

And that is now finished discussing our key financial elements for this period, please turn to slide 17.

Okay.

Looking at our income statement, we have already mentioned the increase in revenues for a record total for the company for more than 128 million euros, such increase in revenues drove an increase in gross profit of approximately $19 2 million euros and 2020 compared to last year.

Sensors, including other operating income increased by approximately 22 million euros for the year compared to 2019.

As a result for the operating result was lower by approximately 1 million euros, Let me comment on the two biggest factors that drove this increase in expenses.

Firstly general administrative expenses increased by approximately $14 5 million euros as mentioned last quarter and increase in G&A costs are primarily a result of being a public company such as D&O insurance corporate governance, Investor relations expenses and share based payment expenses.

Naturally we did not incur those costs in 2019.

In addition, we incurred costs related to our COVID-19 testing efforts, including continuing to internally test for at least to keep the company operational as well as some upfront costs related to test site expenses.

Second our R&D expenses for the year were up by approximately $5 3 million and yours. This increase was driven mostly for personnel costs and on accumulated expenses for <unk>.

And.

Terrific.

And your commitment to advancing our biomarkers databases and technology platforms, such as AI.

And also emphasize that although we experienced headwinds and our core segments. This year, we did not lose focus of our long term strategy and mission of the company towards rare diseases.

Now please turn to slide 18.

Let us take a closer look for cash flow and balance sheet.

Cash flow from operating activities improved significantly compared to last year. The additional revenues from COVID-19 testing and the healthy adjusted EBITDA margin of that segment led to a positive cash flow.

Looking at the change and cash flow used for investing activities compared to 2019, I would like to emphasize that the cash flow from investing activities last year included a net positive cash flow of $21 3 million euros from the sale and leaseback of our Rostock headquarters.

Taking that into account the negative cash flow originated from our investments and PP&E and right of use assets mainly related to starting on COVID-19 segments, including the development of our Corona test Portland.

Cash flow from financing activities decreased compared to 2019 as our <unk>.

And 2019 resulted in a roughly double the rates when compared to our follow on equity offering in July 2020.

As of December 'twenty, and 'twenty, we had $48 2 million of cash and cash equivalents on our balance sheet, which I believe is a strong financial position for a company the size of essentially.

Regarding our outstanding debt I would like to remind you that as of year end 2020. This includes more than 21 million euros on lease liabilities.

Having looked at our performance for 2020, let me now update you on our financial guidance for 'twenty one.

Please turn to slide 20.

Finally, firstly, let's start with our core business, we are seeing the core business segments recover towards the end of 2020 and into 'twenty, one and as such we believe we can return to solid growth and our core business.

Moving to our COVID-19 testing segment, we will continue leveraging the contribution from debt segments as and.

Certainty to remain around the vaccine rollout it is possible that demand may be different than we perhaps expected.

Based on the current trajectory, we anticipate revenues from the COVID-19 segment in 2000 and wanted to be approximately the same level as in 2020.

Now, let me hand, it back to Andrew for 'twenty, one business outlook, Please turn to slide 21.

Thank you Richard.

So before we get into Q&A, let me summarize the presentation for easily and highlight key takeaways from today's discussion.

We had a strong finish to the year.

And end of 2020 with Triple digit revenues from the first time in company's history for a record top line growth.

What's the segment is not strategic for our long term focus for us the financial tailwind from COVID-19 testing means we enter 2012 and with a robust balance sheet and.

And that allows us to continue our investments and our core business and I'm pretty confident that COVID-19 testing will also contribute significantly during this year.

But I would like to reiterate again that the focus in 2021 will be our core business segments. They are what drives for long term value and growth of the company and you just have a priority for DCT segments to foster and grow.

You have seen the level of sample order intake value returned to approximately 80% of normal prepayment levels at the end of 2020. In addition, we have seen debt to train continuous and Q1 and 2021 with sample intake.

More or less at the level of Q1, 'twenty 'twenty two and growing.

This is an encouraging sign and we anticipate those levels to remain robust going forward and debt, we will emerge stronger post pandemic dengue for before.

Our pharma partnerships for also slowly starting to pick up again.

We have signed 16, new deals in the second half of 2020, if extended <unk> and collaborations and.

And I believe that we will see more new deals coming in in the next couple of months.

And I also view, our data and biobank as the key to delivering value for orphan drug development and the driver of our long term value growth.

Plan to deploy the basket more strategically and sharpen the value propositions for both on.

Our pharma partners as for our own internal development.

I would also like to invite you to the upcoming Investor event. Hopefully you have noticed some first steps you have taken to date to be more transparent and clear on what we do and when things that matter to you.

I would like to take the opportunity on the June 2002nd to dive deeper into our strategy, how we create value and I would like to do that with our executive team that you can engage with there.

Due to COVID-19 restrictions it wont be hosted in a virtual format. Unfortunately.

We will update you further on the agenda and registration for the event, but police safety to date and look forward to seeing you there and hopefully many of you.

Overall I am confident about the same to Jean can and will do for rare disease community and to amplify the impact that you have from patients and families awaiting answers on diagnostics and therapies.

And I'll now turn the call over to our operator for Q&A.

Please currently I would like to remind you not to ask more than three questions. So we have time to get to as many of you as possible.

Thank you for joining us today.

And as a reminder to ask a question you and need to press star and one on.

And.

To withdraw your question for.

Oh gosh.

And by when we come by that cash.

Right.

Your first question comes from the line of Puneet.

From <unk>. Please go ahead. Your line is now open.

Hi, guys. This is actually westley on for Puneet today, and thanks for taking the questions and congrats on the quarter.

Wanted to start on on the outlook for 2021, and and more specifically on the Covid testing side of things.

Richard I appreciate your comments on the on approximately similar levels year over year, and and the difficulty that goes on to modeling out.

The COVID-19 testing and cadence, but just given where we are having but for the first quarter close at this point.

You could provide any additional clarity on the cadence of testing throughout the year and.

And if you see any opportunity for Covid and surveillance testing as well.

Maybe just two thoughts before I hand over to Richard.

No.

I hope you understand that for cost and Colby is tricky.

And not easily compare quarter over and existing or future classroom and to the results are impacted to some extent almost adversely in a sense debt.

And if.

The pandemic and.

You're talking about Europe here or there.

Our COVID-19 testing is happening when the pandemic gets worse and travel restrictions increase you see somewhat less testing and then depend and it gets better.

We see more.

Given that you go more or less from from wave two wave and the restrictions are constantly changing.

Hard to tell exactly where we go on it.

And I mean I.

And.

I think we had to.

And a good first quarter as far our revenues for Covid are concerned and I'm pretty confident debt, especially as vaccinations progress and travel and takes up the numbers can look even better but how good they've been locked I think that's frankly, it's anyone's guess, it's mostly influenced by the pandemic and government policies.

Richard over to you for any other thoughts there.

Thank you very much Sandra and thank the west frosting on the question as you do appreciate and asking the question. We have not closed Q1 formally yet so my guidance will vary depending on the on the progress of the pandemic as well as the fractionation programs and travel patterns as.

Andre and just expressed we would expect the first half of the year being somewhat similar to the second half of last year, and we feel very comfortable in saying that when looking at the initial our initial <unk>.

Closing of Q1 for Covid revenues.

And on the on.

Sure.

Yeah, Yeah, I'll kind of follow up there. Thank you.

Just quickly on the second half and and yes, we do that in Germany.

But given the guidance and and determine policy on that from and also the fixed revenues you can make that <unk>. While we do it you don't think this will be a major revenue contributor overall.

Great. Thank you for the and then so I guess sticking on the first quarter looking towards the diagnostics part of the business.

I appreciate the volumes are beginning to return to pre pandemic levels.

Curious on the mix of those volumes.

And I know the <unk> been previously been seeing some momentum and higher value tests.

So just how we can expect the mix of volumes to trend and and what that means for for the top line as a result.

Yeah, we haven't dived into that analysis as we were and we're focusing on closing a close and the full year and the full reporting of the 20-F.

But I have heard nothing to the contrary of the trend we saw before Wes.

Alright, and then just finally, we're looking forward to the Investor Day and June Andrew and now that you've had some time to get to know the company over the past few months.

Just curious on some of the key priorities for the next year, where do you see some opportunities and and rich and I guess, how are you feeling about the cash position currently and then where some opportunities might lie there. Thank you.

So I don't want to.

For us.

And Steve the Thunder I guess, you will have to continue to be the pace.

Patients until the we.

And we have investor event, but and I think as mentioned during the.

The presentation I do believe debt.

He has.

Great asset with our buyer and data bank and I think while we focus on.

Ensuring debt clearly built the use cases that you have identified and mine our data and really line adopt with the value that can be generated with it I think we will have some.

And task.

<unk> areas, where we can bring a lot of value to the table, so with a bit more.

Focus on those priorities and then really aligning our resources and investing behind them.

Think we will see good development and he can share with you milestones and as we expect along the way over the next couple of quarters and how this will translate into visible progress.

Yeah and when.

Answering your question Wes.

Perspective, our cash position, we're very comfortable particularly as we see a continuation of this healthy healthy revenue.

On contribution of Covid.

So we're very comfortable there.

Great. Thank you.

Our next question comes from that and I have and then Wright from Credit Suisse. Please go ahead and that is now open.

Great. Thanks, so much for taking my question for Mike.

And I plan to speak to what the changes were with your Takeda relationship and the expansion of the contract there and how big of an opportunity that is for you and and.

And lots of but what were your new partner and pharma partnerships signed and the whatever and extensions of existing relationships.

And so I think on the.

On the Takeda.

And the extension we are.

And on the extension and sales we are pretty much continue doing what we have done there with the with Takeda and to in the past and we do have other collaborations with Takeda and rare diseases beyond.

And specific.

Effort and I think we definitely of course.

And to take the opportunity and the next couple of quarters engaging for Kate on those further so that we will develop additional new.

Partnerships along to use cases that have outlined with the COVID-19 that those discussions are ongoing.

Ongoing and who both heber.

That leads us into the next couple of quarters and I think on the debt signing of other deals and the names of referred to Richard This and not entirely.

In terms of slots and clean share and <unk> countries.

Happy to step in and we cannot disclose too much detail on a numeric basis. Unfortunately.

But we are not unhappy with the extension of the contract, let's put it that way.

Okay.

And then I guess can you speak to kind of how the starting the partnership pipeline is looking heading into this year and and has anything changed in terms of and your strategy around acquiring new pharma partnerships. There can you remind us about how you're you're you're actively marketing and for lifting kind of any bad debt from our partnership perspective.

Yes.

So I think that the pipeline looks pretty.

And I strongly in my mind, so again, I feel pretty pumped and as he said before debt goodwill with that pipeline, even in a risk adjusted way be able to to get that business back to growth and having a good year compared to last year and Theres no doubt in my mind and.

In terms of how we approach it.

There is some.

And some of the form of a change there.

I think that we have been initiating to be more specific I think in the past our partnership approach was a bit opportunistic and and b.

Talk to people at the conference had some scientific discussion and Alpha feed came and interesting idea and something.

And would start and I think now the size of the company that we are at and the Expansiveness of the buyback that you have I think people on and formalized dose and use cases and as I tried to give you first outlined on more specifically so if you have a much clear our service offerings that we can bring more.

I would say repetitively towards.

So the number of partners with a high level of confidence of course, and the organization can also deliver against them.

I think we are also looking at expanding our commercial presence and on.

And I highlight that with them.

And I highlighted how we start of course with that at the top but then when I look at the opportunity how big the market decent what we could do I think and we were.

We'll do better by also increasing our resources there that we can really cover.

And the park and the universe. There are many companies now engaged and enriching weighted diseases and I think from you have not yet and maxed out with regards to for us being able to bring our value propositions to this manual for MSM as possible and.

And I think the last point.

Is that.

And I won't be a run it and be more mindful in terms of how also be maximize the partnerships in terms of what is the simple surveys where we offer.

From a transaction fee and there are we better off to really strategically partnering for value creation, because we want to participate and the upside.

And in that regard and I think we developed and our framework I don't think it will be either or meaning that people are just two simple services or wanted to only take type of partnerships, but we want and have more clarity on what the opportunity is good enough for us to also invest some of our.

On money and how we communicate that and then in the future.

Hey, great. Thank you.

Our next question comes from the line of on X <unk> from Kempen. Please go ahead.

And.

Hi, and thanks for taking my questions.

With respect to your Biobank repository I noted the increase in Q4 was somewhat lower than the.

We're here this quarter, so I think five versus 40000 could.

Could you provide some more color on the on that.

The increase on on what I'm, sorry, I didn't understand you.

The biobank reported for now.

Yeah.

I think overall.

They can be slight changes with regards maybe normally but comes from the clinical and diagnostic from debt Agnostic Cemetery segment is pretty.

Steady, meaning it's growing is agnostic business grows on the pharma side you can of course see some variances I mean, if you do a large clinical.

Clinical.

Program with a pharma partner and of course, the samples come in over a couple of months while debt recruiting.

Takes on but those should be.

Smaller changes quarter over quarter, I Wouldnt get too much hung up on that I think overall, we expect.

And the sample intake to continue and steadily grow and I'll be your and she said for the year I think we had about 20% overall growth over the year and I would expect this tool to accelerate during next year.

Got it thank you and.

Looking at your G&A expenses I understood that it was primarily due to being a listed company and.

What can we expect for 2021.

Similar magnitude increase were or were there some one offs and last year.

Shall I take for the Thunder yet. Please go ahead, yeah, Hi, Alex. Thank you for asking the question, it's a little bit the element and the room that we don't want to move around.

We don't expect a similar increase increase.

The increase was was kind of a.

And once increase but it will be retained at a certain level, even though we are every year carefully reviewing where we spend our money. So we spend it and the wisest way possible, which we will do for this year as well part of it was related to setting up the new test centers in the Covid segment, which we don't know yet whether that will.

The continuous to be to be expanded into this year or given how the pandemic would equal debt that will not be part of it anymore. So a careful review, but not anticipated the similar increase as we had from 19 to 20 and not at all.

And again I mean.

And two points I would add as you know.

And as the newcomer I mean, there's little doubt in my mind debt during our.

Triple and 2020 there.

The company was.

In a couple of months trying to build up that the Covid response, and if you think debt, but that meant two a day in terms of.

Rare disease.

Testing volumes compared to the Covid testing volume day, Colby tasting rooms about 10 times speaker, there and let you normally do with rare disease. So what these men with with regards to <unk>.

Bringing people in strengthening logistics and what have you I mean, these wassa and <unk>.

Massive message expert so I do think now with this being a separate business unit and manage on Ito and I mean do you have for very careful look at our G&A costs since it deeply into it and say what do we really need for the future and Easter here and there's something maybe that we can.

Wind down against a rest assured debt.

We've done it and make sure the deficient success on that side I mean that being said I think it's worthwhile to note that.

And.

And I assume you're.

For us.

Some understanding for that.

You cannot compare our G&A for a typical biotech company, who is just moving one or two molecules through the pipeline and our business has of course, a global presence, especially on the diagnostic side with at the globe and commercial presence with that.

And patients and I think over 50 countries and what have you. Yes. So there is certain of course G&A cost debt east need that for us.

Which look speak if you wish as compared to the diagnostic business, but less big if it looks compared to all the sample skills and get through debt and how we built up our bi and data bank with it.

Got it and I think that's very very helpful and.

With respect to your pharma business growth and in 2020 one.

U S and Europe looks to be reopening of different traits is there some kind of a.

M <unk>.

Difference in how your pharma business is exposed to Europe versus U S.

Debt.

The bigger part of our pharma business is in the in the U S.

Meaning that customer situation and it's not a surprise because of course, it and to use us.

And the largest life science and biotech.

Community overall and so.

And Thats.

Since you would think and it's probably fair to assume debt to take then they've recovery if you wish and.

And we'll be fostering day U S bevier stronger than in Europe.

And.

Do think debt the overall.

R&D is going on I mean, there is not so much a and I would say that the argument and it would make there is no R&D, but it is true debt given that a lot of the deals that we do are based on the exchange.

For the business building the debt.

And you're offering not having it.

At least with last couple of quarters any conferences or a normal convenient for you can bring your value to the table and can start. These discussions was quite a challenge and certain things you can do virtually.

On the teams call, but not everything so I think while and opening up happens on pretty confident and as I said before I mean, we're also adding some commercial resources, there and I mean for us and to really be well positioned to get out there and make sure our value proposition reaches the not just the existing defaults and new customers.

Thank you and look forward to that and the second Gen.

Our next question comes from the line of Gods Green and his from Baird. Please go ahead.

Yeah.

Hi, everyone and this is actually Tom on for Catherine I appreciate the questions and congrats on the quarter.

So I just wanted to first get into.

And sort of monthly pacing on the diagnostic side and for Q and and any color on until one and Q 'twenty, one and I. Appreciate it's sort of the comparisons to <unk> 'twenty, but just curious if you saw any significant can't match.

Monthly differences given sort of COVID-19 flare ups.

Yeah.

Well Richard shall I take that.

And take it or I could I'm, just going back to just like where we showed a graph on the sample and take that one.

And most most helpful. Yeah, I mean, you saw that on that graph on Patriot page for that.

That will slide seven slide.

Slide seven and I mean of course debt.

You know, we don't show monthly numbers, there so there's a bit of labeling.

But otherwise I mean these numbers are R. R.

The trend there is accurate and.

Debt the monthly variation.

Is.

Sometimes they're for two reasons I mean, we have in certain countries larger contracts, let's say with a hospital chain and it can be debt. There you know some batch of Av.

Test comes in.

And of the month or at the beginning of the month that can move the numbers a bit and.

And but I think apart from that I mean, we don't see.

That much of a variation I mean, the trend is pretty pretty clear.

Yeah, I'd like to add debt typically are the only and the only variation and season, the number of days or and some of our bigger Christmas day kind of.

Stacked together all the samples for a week so sometimes it's just in one month for the other because how the weekends or how do we start and when they ship them.

Nothing that we are really focusing on on importantly basis, we see and upper trends like we were seeing before the pandemic as well we're almost at pre pandemic levels as you could see at slide seven and so we are we're very comfortable there.

Yes.

Great that's helpful.

Moving to the pharma side I appreciate sort of the color on the extended momentum starting from the back half.

I was just curious more broadly.

And you know how conversations with current and potential for.

Pharma partners is evolving, particularly as 2021 budgets become finalized I guess, what I'm trying to get at is would you sort of characterize project timelines and the outlook is kind of more or less immune to COVID-19 shocks and flare ups. At this point now that sort of those expectations are sort of built into pharma 2021 outlooks as well.

Yeah.

Yes. There are there are built in and I think I mean.

Who knows what suddenly and unexpected and a mutation with due to the to the world, but based on everything which is known today I mean b.

The gradual.

Carver you with some uncertainty remaining of course for the end of the year is factored in there.

And so in our I would say optimism and what we say, it's about where we think the pharma business will be this.

This year.

My mind.

The uncertainty.

Debt.

It's remained as for me more on also how the structure.

Certainty and so munis or tried to describe before.

You can structure and deal with the pharma partner by which we pretty much settled and element of our bio bank and create some revenue with it but then the Astra disc on or you can structure a deal by reach in the other extreme the co invest because we believe he creates long term value and you don't see anything.

And the top line, but the value of that deal may be bigger than some revenue generated during this year and why we think through how we structure those deals and.

And then how we set them up for the future I think that creates of course, some uncertainty not on the overall value creation, but in terms how much short term revenue for yogurt received versus long term value creation.

[laughter].

No that makes sense and that's very helpful.

And I want to follow up lastly, maybe on the Covid side.

I'm just sort of.

I think you've sort of touched on this has to travel opening up et cetera could actually be beneficial for volume so.

Like you would expect your airport testing partnerships to continue are there any other opportunities that you're working through on unnecessary side and kind of getting at something like a travel corridor et cetera, and there was also just curious how.

If if at all mixed shifts has changed from a from a COVID-19 diagnostic standpoint for you guys.

What has changed since the last piece of your question sorry, just just mix shift between the product.

And you and offering yes, okay got it understood and I think on the on the product mix I think the.

We clearly.

Hatch our offering in the.

And the high quality high end item and that's same for them.

He is genetic testing via the high and high quality solution provider and that's the same for COVID-19 testing. So we do.

<unk> PCR and <unk>.

Also of course going with the trend to make it faster and faster. So you get the more rapid turnaround even at an airport for PCR result.

And so that you can basically go to the airport and.

And just if you go to.

And if youre not the one.

Russia seems to be there at 10 minutes before the flight leaves, but if you go out you should according to the guideline you can actually do your testing at the airport and wait for the result, and then and then move on.

And we also do have.

And and antigen test, but only the again, what we call a high quality lab tested antigen.

So the idea really for US is that we want to make sure that our test results are professionally confirmed and then 10 serve as confirmation for travel or for whatever you need to do from that from an authority point of view I mean thats the business that we are.

And we believe debt.

Highly likely that these policies that you will have to test and show these results and.

On a confirmatory way debt will continue I do believe debt.

On the mutations that are circulating.

And I'm not so worried that debit plunges back into a into Lockdowns and I do believe that they will probably mean that tastes and will be required.

For a longer period of time at least for the for traveling and.

And I also believe and to your question on debt.

On the customer base I also believe debt.

And there will be certain risk of flare ups within the country, especially as I said, you can do and the patients were to emerge which.

And may not Overfill the hospital, but still it's not diagnosed would create.

Spreads in Oregon, Vaccinate people. So I think there will be and it's absolutely possible that there will be need for also play in country testing and I think in that regard net.

Two having testing centers had major cities. They are also establishing.

Establishing and have established contracts with major organizations had to close on March corporations or government entities, who really wanted to make sure that they have solutions in place to allow them to.

To contain any future.

Spreads, we've seen and organization. So that's basically what's our key.

Customer segments or if you wish.

Great. Thanks again.

Thank you just trying to be mindful of time, we've got few minutes left so trying to be succinct as possible and Sarah over the next questions.

Our next question comes from their lineup and.

And from BTG. Please go ahead.

Hi, Thanks for taking the questions.

Firstly on the debt bio repository are impressive to see 20% growth to fight the pandemic I'm just curious prior to the pandemic I think their efforts to expand further diversify.

The bio repository I think you know.

And in Kansas, and North American market and also maybe Asia well I was wondering if there was any progress on that front or has it been just largely from the traditional.

Uh huh.

Geographical for like this.

You mean with regards of the diagnostic rates the samples come from.

Exactly okay yeah.

For the time being.

Pretty much what you've asked before dependent and so I think as you can imagine during the epidemic there wasn't the best time to try to do.

Low and set up.

And your new channels that said, we clearly.

It has a.

Plan, and then exploration for strengthen our presence and.

Geographically in Europe and <unk>.

This is my priority number number one.

And then when you go into into Asia, we are in discussions there and I think it will accelerate those now.

And it's become easier in a few select debt.

Attractive patient.

Patient markets to strengthen our our presence but that those are early days. So I think you will have to be a little bit patient, we hopefully can share more on that progress in the second half of the year.

That said and that in.

Initially just want to make the point that.

The presence that we do have and I think that they reached and we are in I think our <unk>.

Parts, and Brazil, which is still suffering tremendous from the pandemic I mean, they are robust growing regions. I think that's why we believe we have and underlying strong demand for it and increased.

No.

Increasing demand for on road tests.

Gotcha, and then if I could ask one more question just on the low pad III study and the efforts there are obviously a lot of progress.

You're making I'm just kind of curious could you talk about what differentiates antigen efforts around the lot Q U K site identification.

Acacia and is it just largely debt the debt.

Your breath of the database and you have.

Or the sample that you have or are there differentiate day kind of biological insights that you're finding that you might be adding value for like Wow. Thank you.

Yes.

So.

So the <unk> aspects, maybe I read the first one was really how.

Could you build up debt peak cohort and a reasonable amount of time and.

And I think that really translates to debt.

Due to physician network that we have and do we think we have for very strong experience and connection and neuroscience and it's something we want to leverage also going forward and if it got some how to prioritize diseases I mean, there was a and.

And there are quite a couple of highly intriguing strong connections. If you look at pathways that emerge from rare diseases, rich and net disorders that has implications for us.

The more well known and maybe more towards the end of stage and neurological diseases like Parkinson's and others so debt.

Is clearly an area with the Knowhow debt you have you want to go deep brain and I do believe debt and we have said.

And benefit there because we can connect the rare diseases and many are itc's patients off from children, who have and our data bank delfin percentage neurological and <unk>.

Symptoms and syndromes and mine that data.

And the anticipated understanding of what some of these insights me and if you compare it to.

For the data center.

Parkinson patients if you wish.

Joining me on my desk as page 12, we buggy and sign off on.

And I'd like Okay. So I do believe that our rare disease by a thank you for a unique asset to do mining in areas like Parkinson's.

Fantastic. Thank you so much.

Alright, I think that brings us to the and.

Leonard.

Yes, I think where we're at the end of the call and thanks for joining everyone. We're looking forward to connecting later in the quarter, either when we announced for Q1 results or at the Investor event or and May have kept on contracts.

So that's up and Youre right because a lot of the call.

Thank you everybody participating I appreciate your time, thank you for both Kincaid for.

For today, Thank you for bad debt.

Yes.

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Thanks, Sarah Hello, and welcome and thank you for joining us to discuss our Q4 and full year 2020 results, which were issued earlier today you can view this presentation and the related press release on Saturday and so website for those unable to view the webcast you can find the relevant slides on the investors thoughts.

Entergy and Dot com.

<unk> financial results.

The forward looking statements on this presentation speak only as of today April 15th two.

2021, and we undertake no obligation to update or revise any of these statements.

Future events or developments, except as required by the law.

Additional information regarding these statements appears on our SEC filings.

It is now my pleasure to introduce it for today's speakers are our Chief Executive Officer, and also worked on which itself and our Chief financial Officer for.

Following our presentation, we will open up the call for Q&A.

And they ask you to only ask three questions I will now hand, the presentation over to Andrea Please turn to slide for Andrew.

Thank you Leonard Hello, Good afternoon, good morning, everyone.

And today I will begin by walking you through our operational performance during 2020.

And we'll update you on the progress of our core businesses, meaning the pharma and diagnostics segments and provide you with further insights into our company and its key assets.

Richard will then take you through the financials, including what we have been able to achieve from our commercial COVID-19 testing segment.

And then provide our financial guidance for 2020, one and the business outlook. Afterwards, we will open up for Q&A.

Let's please turn to slide five.

And let me first highlight the key messages for debate.

Additionally, we have achieved a record adjusted EBITDA.

Both revenues and adjusted EBITDA for driven by the COVID-19 testing segment and the second half of the year.

I believe this is a truly impressive achievement and a credit to the strong performance of a dedicated broking team and team to achieve especially during a very challenging year.

And then looking at the core business I want to underline that this is a firm focus for 2021 and beyond.

Even though the core segments overall financials for 2020 reflects the headwinds from defend Amy I am pleased to say that our technology segment continued recovering since the lows and the second quarter and sample and order intake value and Q1 2021 is approximately on part with Q1 and 2020 and growing.

And pharma, we signed 16, new collaborations in 2020 and deferred to seek and extensions of existing collaborations as.

And as such and I'm confident that the overall core business is back on track for growth.

Looking at 2021 deposits financial contribution from our COVID-19 testing segment leaves us and a stronger financial position. These contributions have allowed us to make continued investments in <unk> core business and seem to Jean <unk> Jean embarks on its next phase of growth and that Tom.

I'm pleased to invite you all 12 of virtual Investor event planned for June 22nd there and I worked together with the same Poteen executive team provides for the insights and discuss the company's strategy and future direction.

Let us now discuss the company's 2020 performance.

Please turn to slide six.

Yeah.

In 2020, our revenues more than doubled compared to 2019, reaching $128 4 million euros.

This increase was driven by COVID-19 testing each accounted for $89 3 million eurosport to full year, and $59 8 million euros and the fourth quarter.

We experienced headwinds for sure from the COVID-19 pandemic that impacted our core business segments, particularly in the second and third quarter of 2020.

Core segments gradually recover towards the end of the year, but did not match our prior year's performance overall and that meant that the full year revenues within the pharma segment decreased by 21% and we think diagnostics by 19%.

However, COVID-19 testing revenues have enabled us to more than make up for the headwinds and the core business. As we look ahead into 2021 and confident that we'll return to solid core business growth.

Now please turn to slide seven and to have a closer look at diagnostics.

Firstly, I'd like to share and upstate and on the momentum and Arctic most excitement.

On this slide depicts the sample order intake value for each QUADRA using Q1 of 2020 as a benchmark for pre pandemic levels.

You can clearly see the levels falling dramatically to approximately 50% of normal levels and the second quarter of 2020, showing the impact of COVID-19 pandemic.

To stay and we have steadily seen levels of recovery each quarter.

Approximately 80% of pre pandemic levels and Q4 2020 overall.

And as already mentioned I'm pleased to say that you have seen the trend to continue in Q1 and 2021, we sample order intake values approximately on par with Q1 and 2020 and.

And growing.

I believe this demonstrates the ongoing and increasing need for our testing services.

In 2020, the maintained Ozal and build our leadership further in rare disease diagnostics and continue to strengthen our superior scientific insights and knowledge.

We laid the foundation for this by author and 55 peer reviewed publications in 2020, which was a record year for same day.

This truly demonstrates our commitment to continuously unlocking further insights into rich and I think diseases. Some of the scientific achievements are shown on the slide many of them are proof points for increasing diagnostic yield with genome sequencing and Javier providing bioinformatics tools to enable best in class diagnostic interpretation for.

For the more our research and St. Johns to uncover specific genotype phenotype associations to understand and novel causes and unknown syndrome.

And you can expect more updates and 2021.

Please turn to slide eight.

Sure.

Yeah.

As explained we saw a deep and the number of samples and order intakes and our diagnostics segment.

This is true for the overall core business as you can see here on the left side of the chart.

However, you still make progress on growing our buyer and data bank, which include samples and so out of state that and cell lines.

The next two slides and I would like to demonstrate how this biobank translates into valuable data assets. Please turn to slide nine.

Yeah.

It is sensitive information to revolutionize the understanding of rare diseases by connecting patients and their biology.

This allows us to address different use cases for value creation.

Our buy a bank can be visa license a sphere and.

On the outer layers there are hundreds.

Hundreds of thousands of individuals for which he has clear genetic information.

These state that drives our channel knowledge on the underlying genetic constellation's, each and terms buildup superior diagnostic insights and enables us to find and diagnose patients.

One example of being able to provide value and the patient finding process. Thus recently demonstrated with Arkansas and assorted gene and novel genetic cause of neuropathy.

Our global academic consortium recently identified 45 patients carrying and mutation in this gene.

And he is truly demonstrate that you already have patients and our biobank and.

In many cases are able to quickly respond can be ideally positioned to support R&D for finding new patients even for new diseases.

In addition to the growing size of the database the ultra prioritize its quality and one reason we believe our day to think each unique apart from its focus on rare diseases is the unique linkage famous technical information and technology findings. The insurance is through careful curation of the cases and a wave you mentioned the quality of the day to day trips.

And so standardized for H B O terms.

And as improvements to the quality of the data and definitively inflammation as reflected by the increase of average number of HBO terms for patient sampling and our database up from five in 2019 to 18 2020.

Another example of the patient finding aspect of our data bank sponsored genetic testing collaborations like the one with Takeda.

The programs focus on license on storage disorders for which an enzyme replacement therapy, such as club Rico share or Hunter syndrome.

And the goal is to enable a faster path to identify patients who have by Tim and screening or genetic analysis and accelerate patients receiving a diagnosis and potential access to treatment and a normal year, we screen approximately 40 to 50000 samples for Takeda and.

And that's announced earlier. This week, we are pleased to report that we have extended our collaboration with Takeda and Q1 2021.

And then moving from the diagnostic use case to the acceleration of drug and therapy development Youre looking at the specific data points and tools that help identify biomarkers genetic modifiers and potential targets.

These are the data set for which we have more information available superior description and phenotypes research content and place and complete genetic information as well as multi omics information.

The middle layer display enables clinical trial support and patient stratification and use cases, and recent example, Easter day nearly corporation on Parkinson's.

At the core you will see the error.

Erez U S. Having full disease models available, which they notes include cell models to be used for in vitro compound screening best themselves.

Each layer on.

Allows us to address different use cases internally and of course with pharma partners.

And the next slide I would like to highlight two in particular.

Please turn to slide 10.

And good example for collaborations on the clinical trial case or the <unk>.

Middle layer of the sphere previously shown is that low low patch study this global batteries and demonstrates both our innovative capabilities and how it can be a value driver for patients and pharma partners and internal development.

And that's a brief reminder, St Poteen entered into strategic collaborations with Denali therapeutics for the target global identification and recruitment of Parkinson's disease patients with mutations and the last to Genie and 2018.

We were proud to announce recently that day.

And now includes over 10000 participants from over 120 sites globally.

We believe to be the most comprehensive data set from genetic Parkinson's disease to date.

And utilized our broad physician network, which is particularly strong and neurology to successfully identified hundreds of patients with <unk> mutations.

The study also created Furthermore, lean sites.

We leveraged our buyer banks to analyze and predict consequences of reducing locks to function and important element for our partners and all of these therapeutics with working on the <unk> two inhibitor in fact, they're each state and our biobank already contained individuals who have homozygous loss of function and without clinical symptoms.

Which are especially valuable to them and Audi.

Just on a large cohort of individuals for each and eat some and genome sequencing had been performed in a diagnostic setting and for a wide range of phenotypes did not find evidence for heterozygous or homozygous loss to loss of function of rins costs any distinct phenotype.

And thus our data facilitated the contextual and novel confirmation of the safety of locks to activity and reduce treatment strategies and Parkinson's disease.

Fundamentally the array scheme for therapeutic development for <unk>.

On that note I'm very pleased to announce that we have just signed and expansion of the contract and Ali for it and not the 2500 patients.

In addition, we also believe that this unique dataset will be very valuable belonged blocks to.

Including the potential to identify new disease modify our targets for Parkinson's and opportunity and if you're exploring.

Finally, and also with other potential partners.

Let us now please turn to slide 11.

Yeah.

I would like to highlight and targeting drug discovery case here.

You know what at grocery as one of our focus areas and <unk>.

Average, our deep data and biobank.

In offshore and also on numerous computation and we have shown the power of license cheap you want as a biomarker for diagnostics and so and it's a tool for monitoring and treatment response and quality.

Now we have a large cohort you have over 1000 data on the diagnosed <unk> patients and our data back.

Looking at the debt offset by a bank we have over 135 of last samples and have built patient day rights tissue specific cell and module to allow us to continue to build a full D. C. It's multifocal sheet, thus, enabling accelerating and Derisking therapy development.

In essence, you went from clinical to the preclinical stage here.

And this effect, we have setup disease model and the need that multi layer multi omics tool and <unk>.

And you see its model for US is the patient derived tissue specific cell and module from stem cells established with relevant readouts on the side of buying for magic tools, you have generated better insights into Cushing disease through and extended multi omics disease map for lysosomal storage disorders by matching or shape, you see subtypes from GE to phenotype now.

And we're clear ambition is debt to coordinate the second trade can be used for I think you've had pass base targets and modifying genes.

Have setup to work streams and disregard.

First they are looking at lots of cheap you on as it is available on target. This is well underway as part of a partnership and uptake there we bring access to the large and they bring access to the large molecule Library day. One you have to evaluate that the first chemical compounds in our disease model in 2021 and will continue these efforts and to come.

And months.

For collaborations built on co investment and sharing our findings and the progress should be apparent and the next six to eight months. Additionally, we are also looking into novel target discovery exploring modifying sheets, we anticipate that target mining and novel target Densification will take 12 to 18 months and.

And the new time and the research project here will drive the development of our multi omics platform and capabilities, which will support the use case for other disease areas as well and.

Of course, you won't stop and go shape, I believe our bio and data bank and its expenses physician network.

Uniquely strong in neuroscience and metabolic diseases, such as lysosomal storage disorders, the progress on grocery something be on replicating other disease areas and we are prioritizing the next and <unk> belief and can do so we will update you on those in the upcoming investor events.

Turning to slide 12.

I'm going to give you a quick update also on our management team.

We structured it so really better reflects the two core segments for every drive value and the future.

And central team in my mind has always had a fantastic thrive for science and following science, but I mean I want to pair the scientific know how also with commercial know how and competence.

And to that extent, we have to create that leadership teams consisting of our commercial and scientific leader for both alright diagnostic as well and cyber pharmaceutical segment. Those teams will be jointly driving and the value creation of these specific segments going forward.

They are of course supported by dedicated highly scaled functions, such as bioinformatics and HR and.

And in that regard I wanted to keep yours, and upstate and two new members that joined US just recently and for.

First I would like to introduce Natalie test, we try and tend to cheat and sort of a new chief Human resource officer, starting in March and that's what he has a strong track record that's developing talent Foster and company culture and building the required capabilities to achieve our company's strategy.

For the past decade, she is spearheading a number of large scale projects and the talent era, such as building capabilities for lifestyle and pharma companies focus and value driving skills and behaviors. I think this will be particularly important as he move for us to our next growth trajectory.

And I would also like to welcome Maximilian Schmitt, He recently joined US as Chief commercial Officer diagnostics.

Next will be responsive protect gnostics business strategy and growth. He brings meant for neuro spirit, having broke that silicon valley startups before they were acquired by Rush at Rush Max was a member of the global leadership team of the sequencing business unique before he joined us.

You will have the opportunity to hear from the team directly at our Investor event in June.

Well with that said, let me hand, it over to Richard to walk you through the financials in more details Richard over to you.

Thank you Andrea could I kind of ask you just turn to slide 14.

Our full year 2020 revenues grew by an impressive 163% compared to 2019. This was largely driven by COVID-19 testing revenues with peripheral and close to 19 million euros and revenues for the full year.

And our core business segments experienced headwinds due to the COVID-19 pandemic, particularly in the second quarter and.

And the financials for our core segments reflects the challenging year.

For the pharma segment record of 17 million euros, and revenues of 21% decrease compared to 2019.

And diagnostics segment record of $22 1 million and revenues and 19% decrease compared to the year 2019.

While such results are disappointing for the core business I believe the company was nimble and effective and its response to the circumstances as we made good use of our diagnostic capabilities.

We are well positioned as we continue into 'twenty, one and we'll get back to solid core business growth to materialize synergies long term potential and its core segments.

The slowdown and revenues translated into a decrease in adjusted EBITDA for both core business segments.

Nonetheless, we are pleased with the momentum and the pharma segment currently and look forward to this translating into revenues and 21.

And you adjusted EBITDA margin and pharma decrease of 37% for the year was the diagnostic segment showed a solid recovery and the second half of the year fixed cost elements result, and the adjusted EBITDA margin declining for your overall to minus 11%.

Having said that I want to emphasize that the sample volumes had been at pre pandemic levels adjusted EBITDA for the diagnostics segment would have been positive for the year.

COVID-19 testing segments delivered 42% adjusted EBITDA margin for the full year.

Even though we do not have the comparisons for 2019 I want to note that church includes upfront expenses for the setup of our COVID-19 segment at the beginning of 2020.

Consequently, adjusted EBITDA margin that are approved and the third and fourth quarter as we increased our revenue substantially throughout the year.

Now, let's look at our sort of breakdown on our revenues and our segments came from in 2020, Please turn to slide 15.

As usual, we provide you with a breakdown of revenues and our pharma segment by new and existing contracts for the period. As a reminder, we define a new contract is one signs and the last 12 months.

We are happy to reported finding of 16 new contracts in 2020.

The majority of the 16, new contracts were signed for the second half and did not result, and recognize revenues for 2020.

Rather we will see the revenues and <unk> and 'twenty, one and therefore and revenues from new contracts presented here are not an accurate reflection of our pharma segment's momentum.

And saying that we did see revenues from existing contracts increased by 10% and 2020 compared to 2019.

While it is our goal to grow the pharma segment. It is nevertheless, encouraging to see our existing collaborations bring and a robust revenues base, even on a year is challenging and 2020.

Looking at the diagnostic segment revenues from and that beauty decrease from 2020 compared to 2019.

As mentioned in previous quarters, and IPD is another core focus of our strategy Rev.

Revenues from other test decreased by 19% compared to 2019, which was due to the previously discussed headwinds to our diagnostics segment.

As for the COVID-19 segments, we demonstrated the significant ramp up and each quarter and 2020, particularly and the second half of the year, which led to the substantial contribution to our top line for the year.

Now please turn to slide 16, where I will discuss the financials for the fourth quarter and more detail.

Looking at our revenues for the fourth quarter of 2020, COVID-19 testing broad and $59 8 million euros. In addition, we record and adjusted EBITDA margin of 45% and that segment, which was an increase from 35% and Q3 2020.

Although COVID-19 testing is not strategic to our business long term and financial contribution from this segment is well supported and making key strategic investments into our core segments.

Shifting to our core business segments, and pharma, we record and $4 7 million euros and revenues for Q4, which was a 41% decrease compared to the same periods in 2019 and.

And diagnostics revenues decreased by 19% compared to Q4 2019 to $5 8 million euros.

These financial outcomes reflect the trends, we discussed earlier and the presentation for a signed pharma partnership contracts will result in 'twenty, one revenues and diagnostics for Orange continued recovering towards the end of the year.

So that is now finished discussing other key financial elements for this period, please turn to slide 17.

Okay.

Our expenses, including other operating income increased by approximately $20 2 million euros for the year compared to 2019.

As a result for the operating result was lower by approximately 1 million euros, Let me comment on our two biggest sectors that drove this increase in expenses.

Firstly general administrative expenses increased by approximately $14 5 million euros as mentioned last quarter increase and G&A costs are primarily a result of being a public company such as D&O insurance corporate governance, Investor relations expenses and share based payment expenses net.

We did not incur those costs in 2019.

Second our R&D expenses for the year were up by approximately $5 3 million. This increase was driven mostly for personnel costs and on accumulated expenses.

As for flex.

And your commitment to advancing our biomarkers databases and technology platforms, such as AI and.

Also on the sizes that although we experienced headwinds on our core segments. This year, we did not lose focus of our long term strategy and mission of the company towards rare diseases.

Now please turn to slide 18.

Let us take a closer look for cash flow and balance sheet cash.

Cash flow from operating activities improved significantly compared to last year. The additional revenues from COVID-19 testing and the healthy adjusted EBITDA margin that debt segment led to a positive cash flow.

Taking that into account the negative cash flow originated from our investments and PP&E and right of use assets mainly related to starting our COVID-19 segments, including the development of our Corona test portfolio.

Cash flow from financing activities decreased compared to 2019 as our IPO in 2019 resulted in roughly double the rates when compared to our follow on equity offering in July 2020.

As of December 'twenty, and 'twenty, we had $48 2 million of cash and cash equivalents on our balance sheet, which I believe is a strong financial position for a company the size of <unk>.

Regarding our outstanding debt I would like to remind you that as of year end 2020. This includes more than 21 million euros on lease liabilities.

Having looked at our performance for 2020, let me now update you on our financial guidance for 'twenty one please.

Please turn to slide 20.

Moving to our COVID-19 testing segment, we will continue leveraging the contribution from that segment.

Uncertainty remains around the vaccine rollout it is possible that demand may be different than we perhaps expected.

Based on the current trajectory, we anticipate revenues from the COVID-19 segment in 2000 and wanted to be approximately the same level as in 2020.

Now, let me hand, it back to Andrew for our 'twenty, one and business outlook. Please turn to slide 21.

Thank you Richard.

So before we get into Q&A, let me summarize the presentation for easily and highlight the key takeaways from today's discussion.

We had a strong finish to the year and enter 2020 with triple digit revenues from the first time in company's history for a record topline growth.

What's the segment is not strategic for our long term focus for us the financial tailwind from COVID-19 testing means we enter 2020 with a robust balance sheet.

And that allows us to continue our investments and our core business and I'm pretty confident that COVID-19 testing will also contribute significantly during this year.

But I would like to reiterate again that focus in 2021 will be our core business segments.

They are what drives the long term value and growth of the company and you just have a priority to DCT segments to foster and grow.

You have seen the level of sample order intake value returned to approximately 80% of normal prepayment at levels at the end of 2020. In addition, we have seen debt to train continues from Q1 2021 sample intake.

More or less at the level of Q1 2022 and growing.

This is an encouraging sign and we anticipate those levels to remain robust going forward and debt you will emerge stronger post pandemic dengue for it before.

Yeah.

Our pharma partnerships for also slowly starting to pick up again.

We have signed 16, new deals in the second half of 2020, if extended 16 collaborations and.

And I believe that you will see more new deals coming in in the next couple of months.

And I also view, our data and biobank as the key asset delivering value for orphan drug development and the driver of our long term value growth.

Plan to deploy the basket more strategically and sharpen the value propositions for both on.

Our pharma partners as for our own internal development.

I would also like to invite you to the upcoming Investor event. Hopefully you have noticed some first steps you have taken to date to be more transparent and clear on what we do and then things that matter to you.

I would like to take the opportunity on the June 2002nd to dive deeper into our strategy, how do we create value and I would like to do that with our executive team that you can engage with their.

Due to COVID-19 restrictions it will be hosted in a virtual format. Unfortunately, we will update you further on the agenda and registration for the event, but police safety to date and look forward to seeing you there and hopefully many of you.

Overall, I'm confident about the <unk> 10, and will do for rare disease community and to amplify the impact that you have on patients and families awaiting answers on diagnostics and therapies.

I will now turn the call over to our operator for Q&A.

Please.

Currently I would like to remind you not to last more than three questions. So we have time to catch to as many of you as possible.

Thank you for joining us today.

Thank you Cam and a reminder to ask a question you and express that and why.

One on <unk>.

To withdraw your question Steve.

Please standby, while we come back to Canada.

Right.

Your first question comes from the line of Puneet.

On the BD, Inc.

Please go ahead. Your line is now open.

Hi, guys. This is actually westley on for Puneet today, Thanks for taking the questions and congrats on the quarter.

Wanted to start on on the outlook for 2021, and then more specifically on the Covid testing side of things.

Richard I appreciate your comments on the on approximately similar levels year over year, and and the difficulty that goes on to modeling out.

The COVID-19 testing and cadence, but just given where we are having the for the first quarter closed at this point.

And you could provide any additional clarity on the cadence of testing throughout the year and.

If you see any opportunity for Covid and surveillance testing as well.

Yes, maybe just two thoughts before I hand over to Richard.

No.

Hope you understand that forecast and Colby is tricky.

You cannot easily compare cluster over existing or future classroom and to the results are impacted to some extent almost adversely in a sense debt.

If.

The pandemic.

And you're talking about Europe here and there.

Our COVID-19 testing is happening when the but then it gets worse and travel restrictions increase you see somewhat less testing and then depend and it gets better and we.

C more and <unk>.

Given debt to go more or less from from day to Ace and the restrictions are constantly changing.

It's hard to tell exactly where we go on it.

And I mean I E.

I think we had.

And a good first quarter as far as revenues for Covid are concerned and I'm pretty confident debt, especially as vaccinations progress and travel and takes up the numbers can look even better but how could they be locked I think that's frankly is anyone's guess, it's mostly influenced by dependent and then you can and government policies.

Richard over to you for any other thoughts there.

Thank you very much Sandra and thank the west frosting on the question as you do appreciate and asking the question. We have not closed Q1 formally yet so so my guidance.

Depending on the on the progress of the pandemic as well as the fractionation programs and travel patterns as Andrew just expressed we would expect the first half of the year being somewhat similar to the second half of last year, and we feel very comfortable in saying that when looking at the initial our initial.

On closing of Q1 for Covid revenues.

And on the on.

Sure.

Yes, yes, and I was going to follow up there. Thank you.

Just quickly on the second half and and yes, we do that in Germany.

But given the guidance and to try and policy on that from and also the fixed revenues you can make that <unk>. While we do it you don't think this will be a nature and a revenue contributor overall.

Great. Thank you for the and then so I guess sticking on the first quarter looking towards the diagnostics part of the business.

I appreciate the volumes are beginning to return to pre pandemic levels.

Curious on the mix of those volumes between you and I know that you've been previously.

Previously you've been seeing some momentum and higher value tests.

So just how we can expect the mix of volumes to trend and and what that means for the top line as a result.

And we haven't dived into debt analysis as we were we're focusing on closing a close and the full year and the full reporting up to 20-F.

But I have heard nothing to the contrary of the trend we saw before Wes.

Alright, and then just finally, we're looking forward to the Investor Day and June Andrew and now that you've had some time to get to know the company over the past few months.

Just curious on on some of the key priorities for the next year, where do you see some opportunities and and rich and I guess, how you are feeling about the cash position currently and then where some opportunities might lie there. Thank you.

So I don't want to.

For us.

And Steve the Thunder I guess, you will have to pay.

Patients until the we.

And you have to investor event, but and I think as mentioned during the day.

This inflation a duty leaf debt.

He has.

Great asset with our buyer and data bank and I think while we focus on and.

Ensuring debt clearly built the use cases that you have identified and mine and our data and really line and adopt it the value that can be generated with it I think we will have.

Fantastique Tcs areas, where we can bring a lot of value to the table, so with a bit more.

Focus on those priorities and then really aligning our resources and investing behind them I think we will see good development and beacon and share with you milestones and that we expect the lungs available for next couple of quarters and how this will translate into visible.

<unk>.

And when when answering your question Wes.

In respect of our cash position, we're very comfortable particularly as we see a continuation of this healthy.

Healthy revenue.

Contribution of Covid.

So we're very comfortable there.

Great. Thank you.

Our next question comes from that and then.

From credit Suisse.

Please go ahead and he's now.

And then.

Great. Thanks, so much for taking my question for my first one is can you speak to.

You see what the changes where and with your Takeda relationship and expansion.

And of the contract there and how big of an opportunity that is for you and.

And and lots of what where your new partner and pharma partnerships signed and the core everything and extensions and the team.

And chip.

And so I think on debt.

On the Takeda.

And the extension we are to extend on the extension sales VR pretty much continue doing what we have done there with that.

And in the past and we do have other collaborations with Takeda and rare diseases beyond that specific.

Accurate and I think we definitely of course wanted to take the opportunity and.

The next couple of quarters engaging for Kate on those further so that we will develop additional new.

Partnerships along the use cases that have outlined with the key that those discussions are ongoing.

Ongoing and who both heber.

That leads us into the next couple of quarters and I think on.

The debt signing of other deals and the names of referred to Richard This and milk entirely.

In terms of slots and can share and Barclays country.

Happy to step in and we cannot disclose too much detail on a numeric basis. Unfortunately.

But we are not unhappy with the extension of the contract, let's put it that way.

Okay.

And then I guess can you speak to kind of how the signing a partnership pipeline is looking heading into this year and.

And has anything changed in terms of and your strategy around acquiring new pharma partnerships that can you remind us about.

How youre actively marketing and for lifting kind of any bad debt from a partnership perspective.

Yes.

So I think that the pipeline looks pretty good.

Strongly in my mind, so again, I feel pretty pumped and as he said before debt goodwill with that pipeline, even in a risk adjusted way be able to to get debt basis back to the.

Growth and half of it.

Good year compared to last year, there's no doubt in my mind and.

In terms of how we approach it.

There is some.

And some form of for change there.

I think that we have been initiating to be more specific I think in the past our partnership approach was a bit opportunistic and it can be.

Talk to people at the contrary and had some scientific discussion and alpha feed came and interesting idea and something.

And would start and I think now besides of the company at VR and the Expansiveness of the buyback that you have I think we've on a formalized dose and use cases and as I tried to give you first outlined on more specifically, so there'd be half and much clear our service offerings that we can grading and more.

I would say repetitively.

And number of partners with a high level of confidence of course, and Yoki station can also deliver against them.

I think we are also looking at expanding our commercial presence and on highlight that.

And I highlighted how we start of course with that debt to talk but then when I look at the opportunity how big the market decent what we could do I think and.

We will do better by also increasing our resources there that we can really cover.

And.

Part of the universe. There are many companies now engaged and enriching 80 diseases and I think we have not yet and.

And maxed out with regards to for us being able to bring up our value proposition to this many of them as soon as possible and I think the last point.

Is that.

On a run and be more mindful in terms of how also be maximized.

The partnerships in terms of what is the simple surveys where we offer for.

For a transaction fee and there are we better off to really strategically partnering for value creation, because we want to participate and the upside.

And and in that regard I think we developed and our framework I don't think it will be either or meaning that people are just two simple services or wanted to only if it takes type of partnerships, but we wanted to have more clarity on what the opportunity is good enough for us to also invest some of our.

On money and how we communicate that in the future.

Hey, great. Thank you.

Our next question comes from the line of next go debt from Kempen. Please go ahead.

Hi, Thanks for taking my questions.

With respect to your buyback repository I noted the increase in Q4 was somewhat lower than the.

The previous quarters, I think five versus 40000 could.

Could you provide some more color on the on debt.

The increase on on the bottom I'm, sorry, I didn't understand you.

And the biobank of deposits right now.

Yeah.

I think overall.

They can be slight changes with regards and normally what comes from the clinical and diagnostic from debt agnostic <unk>.

Segment is pretty low.

Steady, meaning it's growing is agnostic business grows on the pharma side you can of course see some variances I mean, if you do a large share.

Clinical.

Program with a pharma partner and of course, the samples come in over a couple of months while debt recruiting.

<unk> takes on but those should be.

No.

Smaller changes quarter over quarter, I Wouldnt get too hung up on that I think overall, we expect debt.

The sample intake to continue and steadily grow and I'll be your IC sales for the year I think we had about 20% from.

From a growth over the year and I would expect this tool to accelerate during next year.

Got it thank you and.

Looking at your G&A expenses.

It was primarily due to being a listed company and.

What can we expect for 2021.

Good day, similar magnitude increase or were there some one offs and last year.

So all it takes for the Bundred yet. Please go ahead, yeah, Hi, Alex. Thank you for asking the question, it's a little bit the elephant in the room that we don't want to move around.

We don't expect a similar increase.

The increase was was kind of a.

Once increase but it will be retained at a certain level, even though we are every year carefully reviewing where we spend our money that we spend it and.

And the wisest way possible, which we will do for this year as well part of it was related to setting up the new test centers in the Covid segment, which we don't know yet whether that will be continuous to be to be expand that into this year or given how the pandemic would equal the debt will not be part of it anymore. So careful.

Review, but not anticipated the similar increase as we had from 19 to 20 and not at all.

And again.

And two points I would add as you know.

And as the newcomer I mean, there's little doubt in my mind debt during a turbulent and 2020 there.

The company was.

No.

A couple of months strength to build up that the.

The Covid response, and if you think debt, but that meant two a day in terms of.

Rare disease.

Testing volumes compared to the Covid testing volume to Covid testing runs about 10 times speaker than what you normally do with rare disease. So what these men with <unk> with regards to <unk>.

Bringing people in strength being logistics and what have you I mean, these whatsapp and.

And I see some message expert so I do think now with this being a separate b since you need to manage on Ito and I mean do you have a very careful look at our G&A costs since its go deeply into it and say what do we really need for the future and Easter here and there's something maybe that we can.

Wind down against a rest assured debt.

We got it and make sure that deficiency and debt side, I mean that being said I think it's worthwhile to note that and.

And I.

And I assume you're.

Yes.

Some understanding for that.

And patient and I think.

Over 50 countries and what have you. Yes. So there is certain of course G&A cost debt is needed for us.

Which look speak if you wish as compared to the diagnostic business, but let's speak if it looks compared to all the samples you also get through debt and how we built up our buy and day to bank with it.

Got it and I think that's very very helpful and then with.

With respect to your pharma business growth and in 2021.

U S and Europe looks to be reopening of different traits is there some kind of a.

Differ.

The difference in how your pharma business is exposed to Europe versus U S.

Debt.

The bigger part of our pharma business is you seem to in the U S.

Meaning that customers situation and so on the surprise to us of course and to use as the largest life science and biotech.

Community overall and so.

And that's.

Since you would think and it's probably fair to assume debt to take there and they've recovery if you wish.

We will be fostering day U S. There are stronger than in Europe.

Yeah.

Do think debt.

Overall.

R&D is going on I mean, there is not so much a and I would say that documents and it would make there is no R&D, but it is true debt given that a lot of deals that would be due on.

Based on the exchange.

The business building the value offering not having.

At least with last couple of quarters any conferences or a normal convenience store you can bring your value to the table and can start. These discussions was quite a challenge and certain things you can do virtually.

And on the teams call, but not everything so I think while and.

For opening up happens on pretty confident and as I said before I mean, we're also adding some commercial resources, there and I mean for us and to really be well positioned to get out there and make sure our value proposition reaches the not just existing but also new customers.

Thank you and look forward to that 22nd Joe.

Our next question comes from the line of capturing share from Baird. Please go ahead.

Yeah.

Hi, everyone and this is actually Tom on for Catherine I appreciate the questions and congrats on the quarter.

So I just wanted to first get into.

Sort of monthly pacing on the diagnostic side and for Q and and any color until on Q 'twenty, one and I. Appreciate it's sort of the comparison for <unk> 'twenty, but just curious if you saw any significant can't.

Monthly differences given sort of COVID-19 flare ups.

Well Richard shall I take that.

Take it or I could I'm, just going back to slide where we show the graph on the sample and take but that would be most helpful. Yes, and you saw that on that graph on Patriot patriotic.

That will slide seven.

Slide seven of.

Of course debt.

You know, we don't show monthly numbers, there so there's a bit of labeling.

But otherwise on these numbers our R. R.

The trend there is accurate and debt the monthly variation.

Yes.

Sometimes they are for two reasons I mean, we have in <unk>.

Certain countries larger contracts, let's say with a hospital chain and it can be debt. There you know some batch of of <unk>.

Test comes in.

And of the month or at the beginning of the month that can move the numbers a bit and.

But I think apart from that I mean, we don't see that much of a variation I mean, the trend is pretty pretty clear.

Yeah, I'd like to add that typically are the only and the only variation and season, the number of days or some of our bigger customers they kind of <unk>.

And that together all the samples for a week. So sometimes it's just in one month for the other because how the weak and so how do we start on Monday ship them, but that's nothing that we are really focusing on on importantly basis, we see and upward trends like we were seeing before the pandemic as well we're almost at pre pandemic levels as you could see it slide several so we are very good.

Multiple there.

Yes.

Great that's helpful.

Moving to the pharma side I appreciate sort of the color on the extended momentum from the back half.

And I was just curious more broadly.

On how conversations with current and potential for.

And my partners at the evolving, particularly as 2021 budgets become finalized I guess, what I'm trying to get at is would you sort of characterize project timelines and the outlook is kind of more or less immune to COVID-19 shocks and flare ups. At this point now that sort of those expectations are sort of built into pharma 2021 outlooks as well.

Yes. There are there are built in and I think I mean.

Who knows what suddenly and unexpected and a mutation Bluetooth.

For the world, but based on everything which is known today I mean b.

On the gradual.

Cover you with some uncertainty remaining of course for the end of day <unk> factored in there and.

And so in our I would say optimism and what we say, it's about where we think the pharma business will be.

This year.

And my mind.

The uncertainty.

Debt.

It remains for me more on the also have the structure.

Certainty and some and that's a tried to describe before.

You can structure and deal with the pharma partner by which we pretty much settled and element of our bio bank and create some revenue with it but then the Astra disc on or you can structure a deal by which in the other extreme the co invest because we believe he creates long term value and you don't see anything.

And the top line, but the value of that deal may be bigger than some revenue generated during this year and while we think through how we structure those deals and.

And then how we set them up for the future I think that creates of course, some uncertainty not on the overall value creation, but in terms how much short term revenue for your board to see versus long term value creation.

[laughter].

No that makes sense and that's very helpful.

On a follow up lastly, maybe on the Covid side.

I'm just sort of.

I think you've sort of touched on this has to travel opening up et cetera could actually be beneficial for volume so.

Seems like you would expect your airport testing partnerships to continue are there any other opportunities that you're working through on unnecessary side kind of getting at something like a travel corridor et cetera, and it was also just curious how.

If if at all mix shift has changed from a from a COVID-19 diagnostic standpoint for you guys.

What has changed sorry, I didn't understand the last piece of your question sorry, just just mix shift between different on Amgen.

And you and offering yes, okay got it understood and I think on the on the product mix I think the.

We clearly.

Hatch our offering in debt.

And the high quality high end item and that's same for <unk>.

He is genetic testing via at the high and high quality solution provider and that's the same for COVID-19 testing. So we do.

And do PCR and <unk>.

Also of course going.

With the trend to make it faster and faster. So you get the more rapid turnaround even at an airport a few PCR result.

And so that you can basically go to the airport and.

At least if you go to not.

And if youre not the one.

Russia is supposed to be there at 10 minutes before the flight leaves, but if you go out you should according to the guidelines you can actually do your testing at the airport and wait for the result, and then and then move on.

And we also do have.

And and antigen test, but only the again, what we call high quality lab tested antigen.

And so the idea really for US is debt do you want to make sure that our test results are professionally confirmed and then Ken serves.

And as confirmation for travel or for whatever you need to do from that from and that's already point of view I mean, that's the business that we are.

And we believe debt.

Highly likely that these policies that you will have to test and show. These result, and a confirmatory weight that will continue I do believe debt.

For the mutations that are circulating.

And I'm not so worried that debt with plunges back into a into Lockdowns and I do believe that they will probably mean that testing will be required.

For a longer period of time at least for the for traveling and I also believe and to your question on debt.

On the customer base I also believe debt.

And there will be certain risk of flare ups within a country, especially as I said between the patients for to emerge which.

And may not Overfill the hospital, but still it's not diagnosed would create.

That spread in order to vaccinate people. So I think there will be.

And it's absolutely possible that there will be need for also play in country testing and I think in that regard net.

Next to having testing centers had major cities there also.

Stablish and and have established a contract with a major organization. So digital's on March corporations or government entities, who really wanted to make sure that they have solutions in place that allowed them to.

And to contain and if you would share.

Spreads, we've seen and organization. So that's basically what's our key.

Customer segments or if you wish.

Great. Thanks again.

Thank you just.

Trying to be mindful of time, we've got few minutes left so trying to be succinct as possible zero for the next questions.

Our next question comes from their lineup and.

And from the channel piece.

And he's now.

On.

Hi, Thanks for taking the questions.

Firstly on the debt bio repository are impressive to see 20% growth. Despite the pandemic I'm just curious prior to the pandemic I think their efforts to expand further diversified.

I would pass story I think you know, especially in Kansas and North American market and also maybe Asia well I was wondering if there was any progress on that front or has it been just largely from the traditional.

And geographical sourcing.

You mean with regards helps get diagnostic rights of samples come from.

Exactly okay yeah.

For the time being.

Pretty much what you've asked before dependent and so I think as you can imagine during the epidemic there wasn't the best time to try to do.

Go and set up.

And your new channels debt.

That said, we clearly.

The plan and then exploration for strengthen our presence and.

Geographically in Europe, and this is my priority number number one.

And then when you go into into Asia and movie.

And in discussions there and I think we will accelerate those now and things become easier in a few select it.

Attractive.

Patient markets to strengthen our.

Our prices, but those are early days, so I think.

We'll have to be patient and we hopefully can share more on that progress in the second half of the year.

That said and said.

Initially just want to make the point that.

The presence that we do have and I think that they reach and CR in I think our <unk>.

From Brazil, which is still suffering tremendous from the pandemic I mean, they are a robust growing regions. I think that's why we believe for you have and underlying strong demand for increased.

No.

Increasing demand for our tests.

Gotcha, and then if I could ask one more question just on the ROE pad III study and the efforts there are obviously a lot of progress.

You're making I'm just kind of curious could you talk about what differentiates antigen efforts around you know for a lot too and you can't.

Identification is it just largely debt the debt.

Sure breath of the database and you have on.

For the samples that you have or are there differentiate day kind of biological insights that you're finding that you might be adding value for that as well. Thank you.

Yes.

So.

So the <unk> aspects, maybe it right. The first one bus really how.

And could you build up debt peak cohort and a reasonable amount of time and and I think that really translates to debt.

And the physician network that we have and how do we think we have for very strong experience and connections and neuroscience and Thats something we wanted to leverage showed so going forward and if it got some how to prioritize diseases I mean, there was a.

And there are quite a couple of highly intriguing strong connections. If you look at pathways that emerge from rare diseases, rich and niche disorders that has implications for us.

The more well known and maybe more towards end of stage.

Electrical diseases, like Parkinson's and others.

So that is clearly and there are with the know how debt you have you want to go deeper and I do believe debt and we had said.

Benefit there because we can connect the rare diseases, the menu or itc's patients all from children, you have and our data bank the Delphi, presumably from neurological seemed.

Symptoms and syndromes and mind that data.

In the anticipated understanding of what some of these insights me and if you compare it.

To the data center for Parkinson patients if you wish.

Joining me on my desk as page 12, we buggy and financing.

And good luck, okay. So I do believe that our rare disease by a thank you for a unique asset to do mining in areas like Parkinson's.

Fantastic. Thank you so much.

Alright.

That brings us to the and.

Leonard.

Yes, I think where we're at the end of the call and thanks for joining everyone.

Looking forward to connecting later in the quarter, either when we announced our Q1 results or at the investor event or and payable terms, Kevin and contracts.

And so that's up and Youre right. We can close the call. Thank you everybody. They are anticipating I appreciate your time.

Q4 2020 Centogene NV Earnings Call

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