Q1 2021 Biodesix Inc Earnings Call

Good day, and thank you for standing by.

Welcome to the bio does its first quarter 2021, the earnings conference call.

At this time, all participants are in listen only mode.

After the Speakers' presentation, there'll be a question and answer session.

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I'd now like to hand, the conference over to your host today, Chris Brinci Investor Relations. Please go ahead.

Okay.

Thank you operator, and good afternoon, everyone. Thank you for joining us today for a discussion of bio debt takes in first quarter 2021 business highlights of financial results.

Leading the call today will be Scott Hutton, Chief Executive Officer.

He will be joined by Robin Harper Kelly Chief Financial Officer.

After the prepared remarks, we will open the call for Q&A.

The audio recording and webcast replay for today's conference call will also be available online as detailed in the press release announcement for this call.

Good day, we issued a press release announcing our business highlights financial results for the first quarter 2021.

A copy of the release can be found on the Investor Relations page of the company website.

Actual events or results may differ materially from those projected as a result of changing market trends reduced demand and the competitive nature of <unk> industry.

Such forward looking statements and their implications involve known and unknown risks uncertainties and other factors that may cause actual results or performance to differ materially from those projected.

The forward looking statements discussed on this call are subject to other risks and uncertainties, including those discussed in the risk factors section and elsewhere in the Companys annual report on form 10-K.

For the year ended December 31, 2020 filed with the Securities and Exchange Commission on March 16th 2021.

Additional information concerning factors that could cause results to differ materially from our forward looking statements are described in greater detail in the company's press release issued today and in the company's filings with the SEC.

I would now like to turn the call over to Scott Hutton, Chief Executive Officer Scott.

Thank you, Chris and welcome everyone to Bioethics first quarter 2021 earnings conference call.

We were pleased with our operating and financial performance in the first quarter and believe we are off to a solid start in 2021.

Beginning with the high level overview of our financial performance, we reported record revenue of $28 $9 million in the quarter, which represented year over year and sequential quarterly increases of 466% and 7% respectively.

Robyn will go into more detail, but this comes on the heels of another record quarter from our COVID-19 testing services revenue, which grew 8% over the fourth quarter of 2020.

As many of you know our COVID-19, offering was developed in response to the public health emergency and has been driven by the need for quality rapid testing that could be delivered quickly and reliably.

We were compelled to respond to the pandemic and our COVID-19 testing services quickly became a strong source of revenue growth for bioethics.

While the overall rate of testing in the U S is tapering off due to the availability of vaccines and readily available retail at home testing options. We continue to work to support communities, both locally and across the country by expanding our workday of COVID-19 testing program.

<unk> continues to perform on site rapid antigen testing for schools athletics and employers to quickly identify potential cases that are then reflects to our highly accurate PCR testing for confirmation and validation.

Over the last year, we nimbly address the evolving challenges of the pandemic and are proud that we continue to do so recently, we announced a partnership with Gen script biotech to conduct performance verification in our laboratory and commercialize it.

Past Sars COVID-19, two neutralization of antibody test.

This is the first and only surrogate neutralizing antibody test with FDA EUA authorization.

The current vaccines are highly effective at generating antibodies against the virus spike protein when administered as recommended however, despite the significant research and clinical advances made to combat the Sars COVID-19 two virus the emergence of new variants and community outbreaks are of continued concern.

Neutralizing antibodies may specifically blocks the interaction between the receptor binding protein on Sars COVID-19, two and the host cell membrane receptor protein.

Thereby preventing infection of the cell by the virus.

The test has the potential to identify individuals who may have antibodies capable of preventing the virus from infecting the sales.

We believe that the C pass tests could be important in understanding long term protective immunity to Sars COVID-19. Two this test is currently available for research and Biopharma services work and announcements about the commercial launch of the test in our work safe program will be forthcoming.

In many respects our role on the global pandemic has increased the publics awareness of biogas <unk> and who we are a trusted partner that the world can rely on for data driven diagnostic solutions that improve patient outcomes.

Lower health care cost and deliver results quickly with the goal of improving patient outcomes.

Bioethics remains focused on our core business, which includes solving complex diagnostic challenges in lung disease and for our Biopharma partners.

This focus represents a large U S target addressable market that we estimate is greater than 29 billion.

We utilize multiple technologies, including genomic transcriptome, proteomics and radio mix and leverage our proprietary AI based diagnostic cortex platform to discover innovative diagnostic tests for clinical use.

The company has six diagnostic tests commercially available each of which intends to solve complex diagnostic challenges in lung disease and provide best in class turnaround time, while reducing cost by eliminating unnecessary tests and procedures.

Our notify X L. Two and notify CDT tests are used to assess the risk of lung cancer for patients presenting with lung nodules and to help physicians identify the most appropriate treatment pathway.

Our <unk> tests are ordered by physicians following diagnosis of lung cancer to measure of the presence of mutations in the tumor. In addition to the state of the patient's immune system to establish the patient's prognosis and help personalized treatment decisions.

And our lung diagnostic testing, we were pleased to see our first quarter revenue increased both year over year as well as sequentially above the fourth quarter of 2020.

This business does however continued to be adversely impacted by the global pandemic as pulmonologists have redirected time and efforts to treat patients with COVID-19.

And they have limited clinic volumes.

However, this quarter, we did begin to see a shift that suggest pulmonologists are beginning to see more non COVID-19 patients.

And expect this to continue throughout the course of the year barring additional spikes and changes in the pandemic.

As we focus on the recovery and our growth expectations, we continue to invest in our sales infrastructure and remain on track to double the size of our direct and dedicated sales force in 2021.

The expanded sales force will better allow us to reach more physicians and provide them with the portfolio of test to provide personalized information on their patients.

This information will aid the physician in making educated decisions to direct the right patient on to biopsy of surgery.

Handheld many more avoid unnecessary interventions and guide treatment decisions.

One of the most exciting recent development is our new liquid biopsy next generation sequencing test the.

The test was shown in a recent publication to have an unprecedented 72 hour turnaround time, which is significantly faster than the seven to 14 days. It takes for other NGF test on market <unk>.

The treatment for patients with cancer is critical and we strive to provide reliable blood based test as quickly as possible to support our physicians and their patients.

The Engie S tests will complement the genesis of that DD PCR test and various debt proteomics tests currently offered with the expanded coverage of broader molecular markers.

The 52 gene Ngf's test will be intended for use in patients diagnosed with advanced late stage or recurrent cancer.

The targeted Ala Carte gender strat DD PCR tests measuring six genes individually can be used for identification of the select mutations in all stages of disease and for treatment guidance recurrence monitoring and detection of the development of resistance mutations over time.

Over the last year, we've cut the turnaround time of Genesis threatened fares threat and half from 72 hours to 36 hours furthering our commitment to provide high quality test results as quickly as possible.

The NDS test has been available for research and clinical trial used since 2018, and we plan to launch the test for commercial use in the first half of 2022.

We will provide more details in the months leading up to commercialization.

We also continue to support the use of our diagnostic test by adding to the body of evidence demonstrating the utility and value.

This remains a key component to our business and drives both the clinical adoption and reimbursement.

In April we announced three abstracts from multiple clinical studies on our primary immune response and various stress tests, which were presented at the 2021 Association for cancer Research annual meeting. These abstracts reflect our commitment to continual research and address the utility of physicians use of utilizing blood based.

Gnomic testing as an approach to support their treatment decisions with the ultimate goal to improve patient outcomes.

We also partner with academic institutions, Biopharma technology, and diagnostic companies to provide research clinical trial testing and new companion diagnostic discovery and validation services.

With significant ongoing partnership and research activities of Bioethics, we will continue to strengthen and broaden our position in the market executing a deliberate patent strategy.

We recently announced the issuance of two new patents that enhance our ability to develop blood based immunotherapy and pipeline testing strategies.

Patents have historically, driven the biotechnology industry forward, but conversely have become more difficult than ever to obtain our.

Our recent issuances across the diverse technology fields is good news in light of the increasingly fast paced diagnostic sector.

These developments further improve biotech <unk> ability to develop and commercialize rapid and accurate diagnostic testing to support physician treatment decisions and strategies for their patients.

Now, let me turn the call over to Robin to discuss the first quarter financial performance.

Thank you Scott.

Our first quarter revenue was $28 9 million compared to $5 1 million for the first quarter of 2020.

Representing an increase of 466% and an increase of 7% over the 27.0 million reported in the fourth quarter of 2020.

Full year over year and quarter over quarter revenue improvement continues to be fueled by our successful entry into COVID-19 testing services, which has enabled us to the first of all of our portfolio during a period of expected downturn, resulting from the global pandemic.

Our COVID-19 testing services revenue was $23 2 million in the first quarter 2021.

Sensus business began in the second quarter of 2020, there is no meaningful year over year comparison.

However sequentially, our COVID-19 testing revenue grew 8% over the fourth quarter of 2020.

The increase in revenue was driven by volumes from existing and new customers. We continue to expect meaningful contribution during the second quarter of 2021.

While COVID-19 testing services played an important role in our overall revenue growth during the quarter we.

We are particularly pleased with the improved trends in lung diagnostic testing are lung.

Ignostic revenue was 4.0 million in the first quarter of 2021 compared to $3 6 million per the first quarter 2020, representing an increase of 10 per cent and an increase of 8% over the $3 7 million reported in the fourth quarter of 2020 as.

As you know our primary call point in lung diagnostic testing is the pulmonologist, who have been particularly impacted by the pandemic as they had been pulled into ICU. The E ours to treat patients with COVID-19.

Although we expect Pulmonologists to continued to be impacted by any ebbs and flows and COVID-19 case volume. We are encouraged with the progress this quarter and particularly the bounce back in volumes, we saw in the month of March.

Overall, we believe the recent volume trends represent the leading indicator of the recovery from the pandemic as the vaccine rollout continues and more pulmonologists returned to their normal work flow seeing patients. We would anticipate an increased need for lung diagnostics that we believe will benefit our testing business throughout the course of 2021 of.

Of course, potentially offset by the spikes of the virus in hotspots around the country.

Turning to Biopharma services first quarter 2021 revenue was $1 7 million compared to $1 5 million per the first quarter 2020, an increase of 12 per cent Biopharma service revenue declined 12% sequentially from $1 9 million in the fourth quarter of 2020 as we have said this particular business can fluctuate quarter to quarter due.

For a number of factors, including contract timing and the impact of COVID-19, which has resulted in the global slowdown of clinical trials.

We expect full year 2021 revenue results will represent growth over fiscal 2020 overall Biopharma services remain a significant long term opportunity for biogas ex of clinical trials to begin to ramp back up.

Moving down the P&L drug costs and expenses for the first quarter of 2021 were $18 2 million as compared to $1 6 million for the first quarter of 2020, and $14 7 million for the fourth quarter of 2020, the interest indirect costs and expenses was primarily driven by costs associated with our entry into COVID-19 testing as well.

As the release of our notify CDT test in March of 2020.

Overall, our COVID-19 testing continues to provide strong revenue and gross profit dollars that offsets the impact of the pandemic and perhaps more importantly enables us to invest in our core lung diagnostic testing and Biopharma services.

Gross margin percentage in the first quarter 2021 was 37% versus 69% for the first quarter 2020, and 46 per cent for the fourth quarter 2020.

The decrease in gross margin percentage for all periods presented is driven primarily from our entry into COVID-19 testing as those margins are lower overall than the margins for our lung diagnostic testing, while the COVID-19 testing services gross margin percentage of slower than that of our other tests. It does provide strong revenue and gross profit dollars contributing to the business.

We continue to see strong margins and on one diagnostic business consistent with pre pandemic levels and expect that to continue during the recovery from the pandemic.

Operating expenses, excluding direct costs and expenses for the first quarter of 2021 were $16 2 million compared to $11 9 million for the first quarter of 2020, an increase of 36 per cent and eight per cent compared to 15.0 of million for the fourth quarter 2020.

The increase in operating expense in the first quarter of 2021 as compared to the first quarter of 2020 was driven primarily by higher selling marketing and G&A expenses.

The investments in the expansion of our sales force, which increased to $11 9 million compared to $8 1 million in the first quarter of 2020.

The increase in selling marketing and G&A is attributable to an increase in variable compensation associated with stock based compensation from our first quarter 2021 option grants.

Our bonus equity incentive program, an increase in head count and public company costs.

The first quarter 2021 operating expenses increased by approximately $1 2 million compared to the fourth quarter 2020, which was primarily attributable to the change in fair value of contingent consideration.

Research and development cost for the first quarter 2021 were $3 3 million as compared to $2 9 million for the first quarter of 2020, and $3 1 million for the fourth quarter 2020.

The overall increase in R&D was attributable to an increase in internal costs, primarily associated with the increase in head count as we scale R&D and add new products to our pipeline following our IPO.

After beginning the expansion of our commercial organization launching multiple new clinical trials and investing in our pipeline. The net loss for the first quarter 2021 was 7.0 million as compared to a net loss of $9 7 million for the first quarter of 2020.

And $4 5 million for the fourth quarter 2020.

Included in the first quarter net loss were noncash stock based compensation charges of approximately $1 8 million and 728000 of nonrecurring costs associated with the loss on extinguishment of our 2018 term loan.

Finally, turning to the balance sheet, we ended the quarter with $55 3 million in cash and cash equivalents of our.

Reduction of approximately $6 8 million, primarily as a result of an increase in working capital partially offset by cash provided by financing the activities of approximately $5 million.

During the quarter, we enhanced our financial flexibility through a new $30 million term loan and extinguish the outstanding borrowings of $25 9 million under the Companys. Prior term loan with the remaining proceeds of approximately $4 million available to enhance existing liquidity for general corporate purposes.

The transaction will provide biodot sticks with additional operational and financial flexibility, including an interest only period through February 2024, as we achieved the trailing 12 month revenue milestone of $65 million as of March 31, 2021.

In addition, the net proceeds along with the benefit of extending our interest and principal payments will enable buyout of <unk> to continue the growth of our commercial organization and expansion of our clinical pipeline.

Looking forward due to the rapidly evolving nature of the pandemic testing strategies vaccinations, and the resulting impact on health care in the U S. We are not providing revenue of our earnings guidance. At this time, we do however expect year over year revenue growth with our gross margin percentage in the first half of the year suppressed by the strength of our COVID-19 Tech.

<unk> activities.

And an improvement in our gross margin percentage of occurring in the latter half of 2021 as the expansion of our sales force gained further momentum and generates growth in our long diagnostic testing.

We expect the COVID-19 testing revenue will be highest in the first quarter with decreasing revenue throughout the year subject to our ability to enter into further testing services such as the C pass COVID-19, neutralization antibody detection test. However, we will continue to provide COVID-19 testing services to our health care schools and other employer.

The group partners and expect.

Just to move forward and we learned to live with COVID-19.

While we expect to increase our overall operating costs during 2021 due to the execution of our growth strategy and investments and bringing new products to market. We are maintaining a disciplined focus on costs and are continuing to evolve our offering with the future launch of the C. Pass total neutralization antibody detection test and on new Mgs test now I will.

Turn the call back to Scott.

Thanks, Robin so before opening the call up for questions. Let me do a quick summary.

Our liquidity position remains strong and provides us with the financial flexibility to achieve our business growth objectives.

We were thrilled with our financial performance in the quarter and most encouragingly, we're seeing early signs of Pulmonologists returning to pre COVID-19 levels.

Another wave we expect this trend will drive our core lung business for the remainder of 2021.

We continue to enhance our clinical data set to support both on market and pipeline products and are thrilled to have announced two new test the.

The C past Sars COVID-19, two neutralization antibody test and our new 72 hour turnaround time liquid biopsy next generation sequencing test.

The latter expands our comprehensive portfolio of products focused on solving complex diagnostic challenges and lung disease.

We're also making progress expanding our sales force of doubling of our sales force over the course of this year, calling on Pulmonologist will allow us to reach more physicians and better leverage improving trends in our growing product portfolio.

Lastly, I want to close with the thank you to all bioethics teammates, whose efforts dedication and daily contributions make it possible to achieve our ambitious mission.

With that I'll turn the call over for questions.

Thank you as a reminder, if you would like to ask a question. Please press star one to withdraw your question. Please press the pound key please standby will become.

The roster.

Our first question comes from the line of T. J S hover with Morgan Stanley. Your line is open. Please go ahead.

Hey, Scott Robin good evening.

I'll start off here with one question on the 52 gene liquid biopsy panel.

Scott can you give us a sense of what remains to be done between now and commercialization.

On the first half of next your other plans to add sort of the additional markers like T. M. B N M. S side of the panel of Prelaunch and and then as a follow up how do you see the panels fitting into the relatively crowded landscape with larger incumbents, who already have reimbursement in place and also vis vis euro on sort of Genesis.

Rather than debt is trapped workflow.

Yeah, Thanks, Hey, Josh Great question.

As you might recall, we stated that genus Strat is complementary to the other Ngls tests that are currently on the market and we expect the same with our own NGF test.

The minder for everybody and refresher the Jenner strategies are small actionable offering of guideline recommended targeted mutations and the <unk> test is going to be of broader panel for additional targeted and rare mutations.

We believe this combination combination of two test allows physicians to utilize at all stages of lung cancer and through the full patient journey, including both diagnosis prognosis and even later lines of treatment selection.

On the the first part of the question in terms of our development timeline, obviously, we're working towards commercialization and regulatory submission.

So with that many.

Many things on our product development timeline are consistent with prior product launches. So just really ensuring that we're ready as the business to scale and ramp the test.

I'll turn it over to Robyn she may want to comment on reimbursement and our plans there.

I can also comment on the MSI on T M B portion of it so right now the.

The current clinical data that we've seen on MSI on T. M. B is predominantly in tissue. However, as that starts to move and evolve into the liquid space, we will absolutely look to to add those.

From a reimbursement perspective, yes. It is definitely a crowded landscape, but I also think there's benefits there too.

This is not something that will be brand new for payers, there's an established set of criteria.

And so it's going in and discussing with them.

How.

How the test works and providing the statistics are the tests so yeah.

Yes, well, it's crowded debt.

It also provides some benefits as well.

Got it very helpful. And then one on COVID-19 testing I know I think Robin you mentioned in your prepared remarks that you do expect sort of the sequential decline of true.

The rest of the year here.

Is there anything beyond that in terms of color that you can share I mean, obviously 23 million is sort of the high watermark, but do you expect to be in the single digit sort of COVID-19 contribution range by the fourth quarter. Your or are you just don't have that kind of visibility yet and then secondly in terms of the neutralizing antibody detection lunch in mid 'twenty one.

Can you help us think true.

How significant of a contributor of that could be.

Obviously, you'll have a step wide guardrails around it because it's not live yet.

Any color there would be helpful.

Sure.

Think with everything in the pandemic.

It's really hard to predict how this will evolve and change.

I think the one thing we absolutely can predict is that it will continue to change and I think that's one of the things that we excel at is the evolving our offering changing and adding services, adding the neutralizing antibodies. So with the visibility we have now yes, we continue to think that the COVID-19 testing will.

But do you anticipate that there is demand.

On that recurs into the fall, particularly around the schools.

Travel events things like that and so while we are still anticipating the decline we are not in any way of giving up on COVID-19 testing, there's still a huge need and they are continuing to pursue opportunities.

Sure the neutralizing antibody test that one really is the big question Mark right now.

We're all still trying to figure out.

Where and how it fits I think the.

The utilities, there at least from of personal standpoint.

It seems pretty clear to me, but what the country will recommend and how it gets integrated into understanding personalized immune.

Immunization schedules is still yet to be determined but in the webinar, we hosted a few days ago we.

We presented some early data from the study we think conducting over the last several months, where we have seen individuals who are immunized maintain very high neutralizing antibody levels for a long period of time.

Up to I think we're at six or seven months now and not seeing any decreases and we've seen individuals' that start to decrease very rapidly as early as three to four months.

And have their neutralizing antibodies drop off very quickly. So it just goes to show that with this debt.

Well as every other piece of health care everything really is very personalized and we think of tasks conduct there.

Got it got it helpful.

And then one final one for me on the base business I know you mentioned sort of seeing a pick up here in March but.

Are you willing to sort of quantify where exactly patient volume stand today, among your pulmonologist community relative to pre pandemic levels is it sort of 80% back to normal or is it sort of even higher than that perhaps and and.

Can you also share the trajectory I mean of Jan vs Fab, how things looked versus March and into April here.

We're pleased with the state of the recovery and seeing improvement overtime January was an interesting month with the massive Spike February an interesting month with the.

The massive snow storm.

And are pleased with how we're seeing recovery in March and April it's hard to.

To state to compare really pre pandemic to current mostly because we had really just launched XL too.

And then launched CDT in March literally days before we sent everybody home. So it's it's a little difficult to compare the two.

Got it fair enough. Thank you.

Thank you Jeff.

Thank you and our next question comes from the line of Brian Weinstein with William Blair. Your line is open. Please go ahead.

So sticking to the core business here for a second here, obviously, there's a backlog of patients that are kind of be coming through the are going to.

Need to have some sort of work out but that is done which would mean that you can notify franchise seems like it's in a very good position to be able to to kind of leverage the capability set of it hasn't and make the workflow more efficient. So can you talk about the sales and marketing activities that you guys are undertaking to amplify that message.

Two two of your customers.

Got.

Any early read where you have sales force back in place how that message might be being received.

Yeah, Thanks, Brian Great question.

Youll recall post IPO, we stated that our 2021 goal was to double the size of our direct and dedicated sales force going from 24 sales reps to 48 sales reps. So first and foremost we are we continue with that plan and are progressing nicely.

We're very encouraged with the quality of teammates that we've added and their ability to onboard rather quickly.

To your other point about kind of of the recovery, Yes, pulmonologist are seeing less and less COVID-19 patients and of returning back to what one could describe as kind of a normal business cadence. There is this described the backlog of patients, which makes a ton of sense knowing that we've we've.

<unk> not seen patients the way we would have prior to the pandemic. The real question is the.

Vaccination schedule of comfort.

Of those patients to come into clinics right. We started with our biggest concern being the physician.

Ensuring the physicians were protected not just physicians, but their health care staff now that they've all been vaccinated ensuring that this patient population is vaccinated is key and critical that.

That is one of the rate Limiters, our dialogue with with Pulmonologists is that they are seeing patients return to in person. We know that also benefits us.

As much as we May never return to our pre pandemic environment.

Of COVID-19 being able to meet face to face of physician consulting of patient not through telemedicine still has a place and so our sales reps are there theyre conducting in person sales calls.

At the same time, we do monitor the virus, we monitor spike and we still collaborate with with Pulmonologists to ensure that were welcome coming into the clinic and that we're mindful of any potential exposures. They may have had.

Okay. Thank you.

And then on the liquid biopsy Ngl's test.

Talked about the unprecedented 72 hour turnaround time versus the seven to 14 days can you give us any insight into what you have done to allow that to take place recognizing that some of it is probably trade secret, but just generally speaking what is it about the way that you guys are are operating that allows you to show.

The turnaround time, and then just a follow up question on that is this product has been available for research and clinical trials I think you said since 2018 so.

Why is now the right time to launch it as is that tied to the improvements in turnaround time. Thank you, yes, yes. Thank you Brian Great question.

With with turnaround time for Genesis threat.

We've discussed.

How opportunistic we've been bioethics and how we really have evolved during the pandemic.

One of one of the benefits of proceeding with COVID-19 testing and utilizing and leveraging our DD PCR platform is that we've been able to expand our laboratory. We also are running 24 seven.

It allows us to decrease that turnaround time and you may recall.

Jim The Strat has improved by 50% during the pandemic. So we went from 72 hours down to 36 hours with Genesis threat that really is leveraging the additional resources team and laboratory capacity that we have.

Related to the NGF product.

You highlighted of 72 hour turnaround time on an NGL product is unprecedented.

Correct. Some of that is trade secrets and Youre also correct. We did introduce that for Biopharma research in 2018, and many of those partnerships and collaborations gave us additional experienced an opportunity to optimize that offering. So we're really excited about that.

We think it matters, we know that we're dealing with patients that have cancer in patients that have cancer. The one thing that they don't always have an abundance of his time and so our ability to return those actionable insights as quick as possible will make a difference.

Thank you for the answers guys.

Thanks, Brian.

Thank you reminder, if you wish to ask a question at this time. Please press Star then one.

Our next question comes from the line of sung <unk> Nam with <unk>. Your line is open. Please go ahead.

Hi, Thanks for taking the questions.

So just on the the liquid biopsy next gen sequencing assay could.

Could you talk about your go to market strategy there.

You anticipate leveraging the existing sales force and the <unk>.

Sales channels and also with the the are you all users.

You know since 2018 or could they be kind of some of the early adopters of the platform.

Hi, sung <unk>. Thanks for the question.

I'll go in reverse order when it comes to our Biopharma partners.

Unfortunately, we haven't disclosed who those partners of ours. This time, but yes, its safe to say that those those partnerships those collaborations and those relationships do provide great insights for us and we're able to apply that to our commercialization strategy.

We've not yet disclosed our commercialization strategy.

Cause we've announced that will launch this mid 2022.

We plan on developing that plan in rolling that out as we progress through the year. So much more information to come there, but the good news is is because of our existing sales force footprint relationship and experience selling Genesis threat. This really is an opportunity for them to continue to leverage of the relationships that they have.

The build on the awareness of gender strat and various threat to ensure that we can provide the treatment guidance the.

The other strive to.

Great. That's Super helpful. And then just on the heat pass neutralizing antibody.

Could you talk about also kind of the go to market strategy. There. You know are you targeting largely the biopharmaceutical companies that have these vaccines under development or developing the vaccine that we're happy to all of the vaccine.

And also if you could talk about T cell profiling and the other types of you know characterization right in terms of.

The patient response and monitoring to the you.

You know two of the pathogens as well as to the vaccine they just kind of curious.

In terms of you know how this test might fit into the the kind of the whole ecosystem.

Yeah, Great question sung <unk>. Thank you.

Because we just had the webinar and just announced that we will be commercializing. This test. This summer as you can imagine we're getting a lot of input a lot of inquiries and numerous conversations are occurring as we speak.

For us this really has been about being a one stop shop as you recall early in the pandemic, we announced that we had partnered with bio Rad to launch the DD PCR test.

Then shortly thereafter, we announced our collaboration with bio Rad to introduce our first antibody test and then we continued to pivot where we provided.

The support.

Surveillance and monitoring for antigen testing that would then reflects to high quality DD PCR testing, we really have viewed ourselves as a comprehensive COVID-19 solution provider.

A one stop shop, if you will so adding this into the portfolio, we think positions us exceptionally well to continue to provide those personalized insights that individual institutions may have.

With that our approach has been consistent anyone that we've provided testing solutions and support to thus far we've reached out to them to introduce the neutralizing antibody test we've begun answering questions and really formulating a plan by which this may provide meaningful insights to them.

Whether it's a return to work strategy, whether it's travel or international travel.

Other than building upon some of our sports on athletic and educational services that we've offered just really ensuring that they have the ability to utilize any one of these tests to set them up for success whatever that means to them or however, they define that so.

So much more to come with that in the coming weeks and months and then when we do make that commercially available we will disclose that and we will start providing greater insights into the feedback we're receiving but if you had an opportunity to participate in that webinar.

Some really good dialogue.

<unk> participants across Biopharma industry and research and so for your other question. Yes, we have continued to reach out to Biopharma companies to include the vaccine companies.

And we think that we can provide critical insights here that as we progress through 2021 and prepare ourselves for flu and cold season, and the question that Robin presented is how long does the vaccine work or last we will be able to provide those insights on an individual basis, which we believe is meaning.

Paul.

As for the rest of your question with the T cell on B cell. We are we are looking at those that the options looking to better understand continuing to research.

Like many others understanding the the virus the impact on the immune system and how how we respond as individuals.

On the C pass the test is FDA EUA authorized 10, so what's a great option for us to partner with Gen script to bring net forward quickly and as you know.

As the pandemic evolves. So that is the testing evolves, we'll we will evaluate if it makes sense to add other says well.

Great and then just lastly from me I was wondering if you might be able to break out of you know great to see a recovery in the base business.

But you know I was wondering if we might get some insight into the oncology channel versus the Pulmonology. So very stride in Genesis shot versus the notify product line.

We're seeing growth across the book if you were seeing recovery across the board or is it mostly on the notify side. Thank you.

Thanks, Sanjay good question.

We see being very consistent and similar.

Obviously, we've highlighted the pulmonologist.

Were significantly impacted as they were pulled into ICU. The <unk> early in the pandemic and then whenever there was a spike of resurgence they continued to be pulled back in.

When they were pulled in the the one thing that also occurred as potential.

<unk> were told to stay home stay safe and distance yourself and so our experience across the multiple medical specialties that we call on and consult with is we are seeing kind of a similar recovery in return and we're pleased with that and I think for all of us.

It's exciting to see that we're making progress we're coming out of this and there is some sense of normalcy on the horizon.

Great. Thank you so much.

Sunday.

Thank you and I'm showing no further questions. This concludes the question and answer session and today's conference call. Thank you for participating you may now disconnect everyone have a great day.

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