Q2 2023 Quanterix Corporation Earnings Call
Yeah.
Good day and thank you for standing by welcome to the commentary Corporation Q2 2023 earnings call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question. During the session you will need to press star one.
One on your telephone you will then hear an automated message advising you that your hand is raised to withdraw your question. Please press star one one again, please be advised that today's conference is being recorded.
I would now like to hand, the conference over to your first speaker today, Ed Joyce V. P of Investor Relations at the floor is yours.
Thank you Stacey and good morning.
With me on today's call is Masoud, <unk>, President and CEO of Quanta, Eric and Mike Doyle Chief Financial Officer.
Before we begin I'd like to remind you of a few things the.
The call will be recorded and will be available on the investor resources section of our website.
Today's call will contain forward looking statements within the meaning of the U S. Private Securities Litigation Reform Act. These forward looking statements are based on management's beliefs and assumptions and on information available as of the date of the call. We may not actually achieve the plans intentions or expectations disclosed in our forward looking statements.
Looking statements involve known and unknown risks uncertainties assumptions and other factors that may cause our actual results performance or achievements to be materially different from any future results performance or achievements expressed or implied by the forward looking statements.
The risks and uncertainties that we face are described in our most recent filings with the Securities and Exchange Commission.
To supplement the company's financial statements presented on a GAAP basis. The company has provided certain non-GAAP financial measures management uses these non-GAAP measures to evaluate operating performance in a manner that allows for a meaningful period to period comparison and analysis of trends in its business.
The company believes such measures are important to comparing current results to the other period results in a useful in assessing the company's operating performance.
The non-GAAP financial information presented here should be considered in conjunction with and not as a substitute for the financial information presented in accordance in accordance with GAAP.
Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures set forth in the appendix of the presentation posted to our website and in the earnings release issued today.
With that I'll return I'll turn the call over to Masoud.
Thank you Ed and good luck.
Before I get into results I would like to start by acknowledging the intense effort and progress the talented Kwan Terex team is made with our corporate transformation.
It did last year.
The magnitude of the improvements made.
While continuing strong operational execution is testament to the capabilities of our people.
And these improvements have set a solid foundation to drive long term future growth.
This quarter <unk>.
<unk> became more apparent in our business and financial performance.
Second quarter revenue increased 32% to $31 million and our non-GAAP gross margin increased to 56, 4% versus prior year with significant sequential improvement.
We're seeing strong customer demand driven.
Driven by consumables and accelerator lab business with increases of 65 and 94% respectively.
Our corporate transformation is also already positively impacting bottom line performance.
This quarter, we achieved a breakeven cash flow milestone.
With our accelerating redevelopment progress we increased our full year 'twenty three revenue guidance to be in the range of $110 million to $116 million and full year non-GAAP gross margin percentage in the high.
Hi, <unk>.
We also expect less cash burn.
And now estimate to be in the range of $30 million to $35 million this year.
To remind you we initiated our corporate transformation a year ago following a strategic business review.
With the prime objective of maximizing the potential of our some of our technology and delivering high quality assays.
At scale with strong margins.
Now in the last two quarters of our transformation process and remain on track.
Work that remains includes launching new assay kit skews and further implementation of newly scaled systems.
Turn processes and our operations lives.
The intensity at which our team at <unk> have made progress is remarkable.
These efforts will directly impact our long term growth and drive future positive cash flow.
In early July we launched this in a D a.
A test to aid in the Alzheimer's disease diagnostic process.
This blood based biomarker test measures and Isa form of spot phosphorylated Tau protein want anyone.
Using our high sensitivity platform. This protein has been positively correlated with the presence of amyloid pathology in brain, a hallmark of Alzheimer's disease.
Loosened provides measurements with cut points indicate unlikely or possible amyloid pathology.
With the recent approval it can be one of the first promising therapies for Alzheimer's disease. We anticipate this test will enable access to quick and scalable screening.
There's a lot of attention on Alzheimer's disease, and we will deploy focused effort on building global infrastructure.
As well as patient and provider education around these tests.
Moving to recent events.
There were two notable announcements from the Alzheimer's Association International Conference.
Like to bring to your attention first.
New guidelines were recommended by the National Institute of aging and the Alzheimer's Association for the use of blood biomarkers to detect.
Diagnose Alzheimer's disease.
All of the Biomarkers listed are available on Samoa.
This makes a lot of sense being able to screen large numbers of people.
With suspected cognitive symptoms require scalable cost effective testing.
Numerous studies using our some of our technology have demonstrated high correlation between blood based biomarkers like those measured by Lucent.
To the more expensive and invasive methods of testing in Alzheimer's such as spinal fluid analysis and amyloid pet scans.
Any lab anywhere in the globe can order some old platform and begin running every biomarker listed in the guidelines today.
That reach along with the scale of our CLIA lab puts us in a great position to help build the global testing infrastructure needed for Alzheimer's therapies.
Second.
Data from a study was presented demonstrating the possibility for home blood collection for Alzheimer's Biomarkers.
Researchers at the University of Gothenburg in Sweden use similar technology to test for Biomarkers from dry blood spot cards collected from a finger prick.
That's not a lot of blood we're.
We're talking tens of micro liters study.
Sturdy card samples were shipped to a testing facility without temperature control and results showed high correlation to regular blood drawn samples for all biomarkers tested including Pizza Hut want 81 retail to 17, NFL and G fab.
Although this was an early study demonstrates the ultra sensitive capabilities of our small platform as well as promise for patients and providers is the potential for a home test would be a significant advance over traditional blood collection.
Pretty incredible events.
Now this decade, we expect a number of emerging disease modifying neurological therapies.
And most of these will need early cascade diagnosis and routine monitoring.
Which will require ultra sensitivity to identify.
Biomarkers in blood.
As we discussed last quarter with their approval of <unk> and measuring <unk> light chain our NFL.
We're seeing increasing attention.
This biomarker for neuro injury conditions.
However, normal NFL levels vary between adults and adolescence and Theres a need for a comprehensive reference dataset by age.
Recently published in Lancet neurology Samoa enabled a study to produce a robust <unk>.
<unk> set for pediatric NFL levels.
This dataset will provide a foundation for the clinical use and management of neuro conditions in children.
This work was a significant step forward and further establish <unk> as the go to test for blood NFL measurement.
Moving to our clinical efforts.
This quarter, we achieved a positive top line readout of our Biopharma as clinical trial, which was a 1000 patient prospective validation study done in collaboration with a global Alzheimer's platform Foundation.
The study had 18 sites and aim for a diverse demographic to better represent the entire base of potential patients an important consideration by physicians and regulators.
I am pleased to announce our primary objective of this study to show a high correlation between 181 in amyloid positive pet scans was achieved this.
This work supported both our new leasing.
And is expected to support our IBD filing with the FDA.
Now before I turn the call over to Mike.
Want to take a moment to recap.
Our corporate transformation, while not yet complete.
Bearing accelerated gains.
Because of the focus discipline and execution of people at all levels of the organization at <unk>.
Discoveries in the next 10 years will change the way we currently understand.
Test and treat neurological disease, and we expect that much of that work will be performed on quanta ericsson's small platform.
<unk>.
Thanks pursued.
For your reference for those following along I'm starting on slide eight.
Our total revenue for the second quarter of 2023 was $31 million, an increase of 32% from the second quarter of 2022.
This quarters revenue includes $1 million for one time revenue related to our agreement with Ultra Dx limited in China, and a half a million dollars related to inhabit license deal.
We have product revenue of $19 7 million in the second quarter, an increase of 33% over the second quarter of 2022.
Within product revenue instrument revenue was $3 5 million a decline of 38% over the second quarter of 2022.
As described last quarter and similar to other life Science instrument Friday, we continue to see global macroeconomic pressures on capital purchases.
Offsetting this decline our consumable revenue increased $6 million or 65% compared to the second quarter of last year and up 8% versus the prior quarter.
While we continue to manage production and demand for consumables as we address assay quality. We've made improvements that have allowed us to increase capacity.
Services and other revenue was $10 6 million for the quarter, increasing $2 million or 23% from the second quarter of 2022.
Driven by strong demand for accelerator services.
Our accelerator services continue to be valuable a valuable customer offering, particularly when biotech and pharma experience pressure on capex purchases.
We don't expect further decline in instruments in the second half of the year, we do expect both consumables and accelerator services to fully offset for the second half until biotech and pharma returned to normal purchasing patterns.
Now, let's move on to gross margin for the quarter.
Our GAAP gross profit margin was $19 1 million and 61, 7% for the second quarter of 2023 compared to $8 7 million and 37, 1% in the second quarter of 2022.
Our non-GAAP gross profit margin, which include shipping and handling cost for product sales within cost of goods sold instead up within SG&A expenses was $17 5 million and 56, 4% in the second quarter as compared to $6 8 million or 29, 1% in the second quarter of last year.
Overall, we're very pleased with our redevelopment progress and it is reflected in better than targeted gross margin performance.
Our overall GAAP operating expenses declined $5 million from $33 7 million in the second quarter of 2022.
Right.
To $28 seven in the second quarter of 2023.
Our net loss declined from $24 9 million in the second quarter of 2022 to $6 1 million in the second quarter of 2023 due to improvements from our redevelopment program the impact of our restructuring in 2022 and improved interest income.
Moving on to cash which is on slide nine we had a healthy cash burn improvement. We ended the second quarter were $332 2 million in cash a small net decrease of about 100000 from our Q1 cash balance we essentially burned no cash during the quarter driven by revenue mix.
Efficiency gains and operating expense management.
Our balance sheet remains in excellent shape, and we remain well positioned to make internal investments and be opportunistic for inorganic investment.
Let's turn to guidance, which is highlighted on slide 10.
As Masoud mentioned, we're increasing our guidance for 2023.
We now expect our revenues to be in the range of $110 million to $116 million from a previous range of $104 million to $111 million.
As a reminder, we're still managing our demand and shipments as we continue our assay redevelopment efforts.
Due in part to our redevelopment program as well as our anticipated revenue mix for the full year of 2023, we are adjusting our margin outlook. We now anticipate GAAP gross margin percent to be in the low <unk> and our non-GAAP gross margin percent to be in the high <unk>.
We do anticipate some headwind impact in the second half of the year with the launch of our new assay kit skews, but feel confident with our ability to execute on plan.
We expect our cash burn for the full year to be in the range of 30% to $35 million a significant improvement from last year and our previous guidance.
I will turn it back over to Masoud before we take your questions Masoud.
Thank you Mike.
I wanted to provide an update in regard to our financial leadership transition plans as previously announced Mike is planning to retire in early 'twenty four.
And we've been searching for a new CFO .
It's an exciting time clearly to join <unk>.
And I am thrilled to say that we found someone amazing to join our team.
So we will be making a formal announcement tomorrow morning, and the official transition is set for August 21.
At that time, Mike's going to transition to executive director of finance supporting our strategic growth until his retirement in March.
So I wanted to take a moment to acknowledge the pivotal role Mike has played in the transformation at <unk>, specifically his guidance dedication and financial leadership over the past two years has put us in a strong position. He has made a lasting impact on our business. We are appreciative of his service.
Thankful for the solid transition period and look forward to what's ahead in the coming months.
Operator, let's take some questions.
Thank you we will now conduct a question and answer session. As a reminder to ask a question. Please press star one one on your telephone and wait for your name to be announced.
Withdraw your question. Please press star one again, please standby, while we compile the Q&A roster.
Our first question comes from Cooney Suiter of Leerink partners.
Tony. Please go ahead with your question.
Hey, thanks.
Masoud Mike.
Thanks again.
Congrats on the quarter here.
Mike and you know really great working with you and good luck on what's ahead.
And maybe if I could.
First one maybe if I could ask on the guide and then I have a follow up on loosen.
On the biomarker set.
We look at the full year guide if you go to the higher end of the guide still implies a step down in <unk> and <unk>.
I know you talked a little bit about obviously, the biotech funding situation that as well.
Understood and known on the street is that largely part of that.
Conservatism in your assumptions here or.
Or is there something else that we ought to keep in mind for the second half. So just wanted to clarify on the top line and also on the gross margins.
Sure I think a couple of things I think we obviously had some onetime revenue in this quarter.
And so when I look at the 31, I really look at it at about a $29 $5 million quarter. So I think.
We were still balancing.
Our redevelopment effort in this last couple of quarters, which I'm sure it's going to get into is when.
Really it's the last big push so we expect a little bit of noise and we're trying to just sort of make sure that we've given ourselves some room there.
Clearly our goal is to exceed that but.
That's how we're looking at it I don't think there's anything else out there than what we've chatted about that.
We would see impacting our revenues.
Yes, I think thats right.
We clearly have the backdrop of this macroeconomic situation I think Mike highlighted on the call that we've been able to offset that pretty effectively.
We'll see what happens in the second half and then as Mike said, a lot of implementation of key processes.
In the production lines that we want to be conservative about.
Got it okay.
And then wondering on Lucent can you clarify if this when this platform is going to have <unk> 217 is well beyond 181.
And when do you think we'll see.
Barker said that that involves.
181% to 2017, a beta of $40 42.
Both as an LDC and then eventually.
In IBD and potentially maybe one more mark our let's say <unk> in that so just trying to understand what the final markets that could look like when do you think you'll be able to launch that as an LDC and then eventually into the IBD.
Okay, Great question so.
We our plan is to have 217 LDP. This year. So some other future announcements, we will talk about including that.
Our <unk> series of testing and then on your question about the multi marker test.
Just.
As you know.
Multi marker test today already exists at contractor then <unk> offering.
And then to your point, we <unk>.
Intend to.
That to the Lucerne offering.
After we complete some of our clinical trial work. So we have we talked about the results of buy of Hermes specific to 181.
We're expanding that and looking at multi marker with that study and then we have a very exhaustive large study with ADF, where we're looking at all the markets that you just mentioned.
With an algorithm.
To look at amyloid pathology for patients. So that's also upcoming in again on the regulatory side. Our intention is that we'll be submitting to the FDA along with.
The clinical trial findings.
Got it and then last one for me.
Can you talk a little bit about the level of validation that you have currently with your assays and what is needed for the diagnostic assay for the <unk>.
<unk> and potentially for the IBD as well.
<unk>.
Sort of what sort of level of readiness that you have as can be.
<unk>.
Drugs get on the market how do you think.
Scalability.
Rapid scalability as required.
Wanted to get a sense of if you validation.
Validation and other things that might be needed for those assays.
Ill positioned or those assays from both.
Validation point of view on scalability point of view. Thank you.
Thanks, Brent yes, so when do we.
I would say the foundation first let's start with the foundation of the assays, we're talking about hundreds and hundreds of publications over peer reviewed publications over the last several years.
And that have shown.
The Biomarkers that we're talking about 181 2017.
<unk> fab.
Together.
Incredible correlation to amyloid pathology really robustly as shown.
And that's kind of that's our.
<unk> basis, we take that one step further and we are working on these prospective clinical trials with the buyer Hermes for example trial.
That is used to support our <unk> was 18 site.
S trial over 20 of the samples were from.
Underserved populations of critical for Alzheimer's testing as Youll, probably hear about more and more in the news and we.
We've looked at imaging clinical and other key data to support the.
Our <unk> and we look at patients that are cognitively unimpaired.
Mci and mild patients and when compared to each of our test too.
To imaging.
And to CSS and that's the data and the backing we have for our went 81 and we expect to continue to do that for each of our tests to come out as an OTT.
And we think the data and robustness.
Also.
Sufficient to support future regulatory filings so from a clinical trial on utility perspective, we have.
Great work Thats ongoing by the team and then from a scale perspective, we believe that.
Scaling these assays are going to be critical blood based testing is going to be critical for <unk>.
Entry to therapy, and how do you scale the test.
In a robust way as possible, we think number one.
You heard about the guidelines all of the markers in the guidelines today can be run in Samoa and with support and new labs globally. It would purchase a small platform.
Get their lab up and running for them to do testing.
We can do thousands of samples here.
In our CLIA laboratory on a weekly basis, and we think that will take some level of.
Support for building this global infrastructure.
We have a plan we have a good.
Clinical trial plan and a good go to market plan on almost a day. So we're very excited about the next several months.
Okay Super guys. Thanks.
Standby for our next question.
Our next question comes from Kyle Mixon of Concordia Genuity. Kyle go ahead with your question.
Hey, guys. Thanks for taking my questions Congrats on the quarter and congrats on the progress on this redevelopment program on the program Masoud.
Wanted to ask how you've been able to convey to customers that.
Reproducibility of the scalability of your assay has now improved and how that approach and how the customer responds kind of differs between those.
And the Biopharma customers.
Yes.
Thanks for the.
We.
I would say that.
If you look at our.
Whether it's our consumables call or our accelerator.
We're hitting.
And the levels of demand that the company has never seen before.
So and I would say that.
What we're able to manage and insurers that if its a product thats, leaving the doors that contact with a quality product and the customers hands. So I'd say, we've done a great job at doing that and then over the next several quarters, we're going to ensure that those skus that are leaving the door also scalable.
And.
Accretive.
Our margins so.
Couple of quarters of work left but.
Right now today, we're getting good assays to customers and we're providing a solid.
Work through our accelerator program and I think the results speak for themselves.
Okay. That's great and then just following up on the on the bio Hermes.
So are we are we completely done with Readouts for that trial and then did you comment on the timing for the IBD approval.
Yes so.
We are.
Complete with our 181 study and so that the buyer Hermes trial.
Data supported our both our <unk> and the FDA filing we have that exists for our <unk> hundred 81 test.
Now what we're going to do next is we're taking a look at other biomarkers with that dataset.
<unk>.
Probably be more news.
In the future.
On bio Hermes, but with regard to 181, our intention is.
Our peer reviewed publication on those testing results, but you can already see the data for that and our sense on specs.
On the listener.
Our web site.
And the second trial that we've been talking about is this multi marker test with ADF.
The global Global Test global trial, and that's going to be to support the multi marker.
We haven't mentioned any sort of timing on regulatory filings as you know we have a.
Breakthrough designation for <unk> hundred 81.
And we've talked about doing more work with the FDA as we as we progress.
Okay Awesome and then maybe maybe Mike if you want to comment on this end.
I guess congrats on the next on the next steps and look forward to kind of chatting about it soon.
No on the prioritization of cash you have cash of $330 million.
Cash flow in the quarter was breakeven which was which.
Great Fantastic I think in the past you estimate that you will achieve positive cash flow is that the 170 $190 million range for revenue. That's like 226, maybe I guess I wanted to ask was that pushed up now is that I guess pulled forward. It could you could you kind of reached that point earlier and.
Just given all the discussion now I mean, how do you kind of anticipate using cash going forward could you kind of add crank up the spending to drive revenue growth or really scale loose centers 80, or something along those lines.
Yes. Thanks.
First we haven't we haven't.
Just at our projection longer term for one will be I would say cash flow positive.
Consistently I would say, we still keep our current guidance in place probably updating you in February and we were super happy with the quarter.
And I think what it's demonstrated as we are running ahead from a financial standpoint.
I think that we were we've been very focused on the assay redevelopment I think what youre going to start to see and you've touched on some of the Kyle is.
Investments in organic investments in the business.
Also funding more for Lucent Dx. So I expect we're going to see cash go out Capex was light in the first half of the year as we stay focused on the assay redevelopment its going to pick up in the second half of the year and I think we're looking at because we have the cash we do a number of things both organically and inorganically.
Inorganically that will help us accelerate our ability to grow so.
And like I say, we'll probably be updating guidance in February on the call and we'll probably update.
Our targets for cash flow breakeven as well.
Okay perfect sounds good thanks, guys I appreciate it.
Thanks, Scott Thanks, Kyle.
Our next question.
Our next question comes from Matt <unk> with Goldman Sachs.
Matt. Please go ahead with your question.
Thanks for taking my questions and congrats on the quarter and Mike Congrats on the next chapter it's been great working with you.
Maybe just a first question for you Mike you've previously talked about.
Double digit topline growth for 'twenty four just given the guidance raise last quarter and this quarter are you still kind of thinking about that as a range for next year and any kind of clarity on an on double digits can mean, a lot of different things.
Yes, Ken you're right Matt.
Because obviously, we've had a good quarter.
The guidance would suggest as our core product that were were there and I think our goal is to accelerate from there.
Haven't flushed out.
Yet.
24 forecast to get more specific about what double digit looks like and feels like but clearly our intent is to accelerate off of where we are today.
So.
That's.
Probably all were going to say on that right now, but I expect again in February we'll be giving a more robust view of the.
The year and what double digits going to look like but clearly we're in a good place right now and are feeling pretty good about where we sit this year and.
Obviously on the core products cracking double digit right now.
Got it thanks for that and then just you mentioned in the prepared comments about the Abbott.
Collaboration and some of the revenue received from that could you just maybe provide a little bit more color I apologize if I've missed this in the past, but a little more color on what youre doing with Abbott.
Actually the Abbott is an exploration.
And all license deal so it's not an active essentially.
We received funds to some time ago for a license that has now expired. So we're recognizing it in revenue so it's not new activity per se with Abbott.
And then the $1 million for a multi <unk> is a reflection of shares that were issued in the altra Dx.
Venture in China. So.
Both instances those are onetime revenue.
They're not going to repeat.
They are just and they impact margin favorable way this quarter by about 250 basis points, Matt just to give you some perspective there.
Got it and then just one last one for you Masoud you talked about the study that looked at finger prick.
Testing in the blood Carton could you maybe just talk longer term about what do you think that could do in terms of accessibility, but but also kind of what the timeline potentially for that could be and how it is being incorporated into your logistics and technology if that were to happen.
Yes, absolutely Matt so just.
To say that we're sort of on the heels of all this excitement.
Blood draw and traditional collection methods, but keep bringing up this concept of global scale and global infrastructure and in a while in the U S.
Let's say, 90% of the population is near a place where you can do a blood draw we have to think globally and.
There are a lot of places where.
Low temperature storage Transportation center irrigation those are all issues and what we're really excited about by this study was that and have demonstrated the ability to do remote collection and quantification of all the biomarkers that we have and so we could see this as a screening and monitoring tool.
Secondary care.
And therapeutic trials, so expanding access to therapeutic trials to underserved populations, which is going to be on par and for future therapies.
Well as the.
The storage concept and being able to monitor progression of.
Of treatment response, and an easy way. So you don't have someone coming in on a regular basis. After a blood draw and you can do this smart home. So it's early days.
In the study and the cohorts in the population.
Sure.
Small population I'm, sorry, do you want to.
Say that but incredibly promising data on the.
<unk>.
Pet in CSF and so we're very excited about what the study could be and think that theres a lot of interesting work that could come in the next within the next year or so.
For detecting blood Biomarkers and then the final point I'll make is that.
Just sort of goes to show I mean, we're talking a blood draw hundreds and hundreds of micro liters now we're talking about tens of micro leaders and the need for a platform that has high sensitivity to detect that in those tens and tens of micro liters is what's required to enable blood testing and so.
Again very excited about the prospect of these results.
Got it thanks very much guys.
Thanks, Matt.
And our final question comes from Dan Brennan with Cowen.
Thanks for the question and congrats on great. Congrats on the quarter, maybe maybe one on placements and then one back on Alzheimer's just can you speak to.
Instrument placements in the quarter, sorry, if I missed it and what are the expectations throughout the year.
How much of softness was due to APAC could you call that a distributor issue <unk> just maybe some color there.
Yeah, Dan I mean placements on the quarter.
We're net placements for 'twenty, two which as you know thats a low for us.
Historically, we've run high 30% to $40 and it started to drift.
Late last year Q1 placements were 32 so.
We're down I think Asia Pac.
Our issue in Q1, I think more broadly and I think my suit mentioned I did as well we're seeing it really across the board I think there is just a macro.
Effect on Capex, that's impacting us and we're seeing it in North America, Europe , and in Asia Pac Asia Pac actually in the quarter performed better than they did a year ago. So.
It bounces around now the good news for Us is.
We get we still are getting revenue from people, who would otherwise purchase I think Susan referenced I think folks are running more through our accelerator lab.
As opposed to purchasing an instrument. So I think as the broader macro improves we're going to see instruments pick up which is encouraging but right now we're kind of it's going to be soft I don't expect it's going to degrade from where we are.
We are projecting in building out our the balance of our year and we expect in 2024.
A return to something more normal yes, Dan one of the.
Really unique.
Capabilities that we have is that when we've seen biotech or pharma capital equipment pressure or kind of a macroeconomic challenge we tend to see these companies outsource more and more of their work to accelerator lab and we're clearly seeing more of that and expect this to continue for the second half of the year.
So accelerated process and I, both try before you buy but its also outsourcing a lot of R&D work and in.
In the future, we expect those customers well once when there's less pressure to come back and purchase of those platforms.
Great. Thank you for that and then maybe just kind of a bigger picture one on all Congress and.
I apologize if maybe this was mentioned a little bit throughout but just maybe get a less what are the if you look at over the next 12 months like what would you say are the key milestones to watch that would be kind of most important just to kind of track progress.
The opportunity is materializing for quicker.
Yes, so yeah, and I think we.
We talked about the readout despite Hermes test on how it is supporting our OTT and.
And also our IBD filing I think.
It was a question earlier on the call related to 2017 that preneed ask.
That's pretty important in 2017.
A biomarker that you just can't measure on any platform right and so some of our.
One of the platforms that you can detect 2017 and so.
The interest and demand for 217.
As important and one of the reasons.
You're kind of hearing about that importance is because.
As.
These drugs and these therapies come out we're seeing data that shows.
The earlier, you can identify a patient and the disease Cascade the better therapy works and so 217 is one of those early <unk>.
Markers and so from a standpoint of a screen or a diagnosis.
The better you can get a better patient cohort.
It looks better from a rule in perspective. So we're very excited about that I think that'll be a big milestone and then the second is on the multi marker can we do.
Two differential diagnosis can we use them on a mark a multi marker to get more information on these patients that might get a negative result, and are asking hey, I have cognitive symptoms, but I'm getting a negative result, now what and so.
Behind what we're talking about here is intensive program to build solutions for patients and so I think I would view those two is.
The next two key milestones and then externally I think if you look at the guidelines.
Some of the biomarker.
Promise in blood Biomarkers is incredible.
We expect in the next several months there to be more discussion about blood Biomarkers and.
And there are adoption from not just a screen, but more and more towards diagnosis.
Patients instead of.
A spinal tap or a pet scan so I kind of view those sort of three areas as key milestones for us and for the field.
Great. Thanks, a lot.
Yeah.
Thanks, Dan.
I am showing no further questions at this time. This concludes today's conference call. Thank you for participating you may now disconnect.
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