Q2 2023 Personalis Inc Earnings Call
Greetings and welcome to the personnel as second quarter 20 twenty-three earnings conference call. At this time all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance. During the conference. Please press star zero on your telephone.
Keypad.
As a reminder, this conference is being recorded it is now my pleasure to introduce your host Caroline corner Investor Relations. Please go ahead.
Thank you operator welcome to personnel for the second quarter of 2023 earnings call joining today's color with Paul Chief Executive Officer, and President and Aaron Tashi, Bona Chief Financial Officer, and Chief Operating Officer, and Richard <unk>, Chief Medical Officer, and a V. P. R. A N D.
All statements made on this call it did not related to matters of historical facts should be considered forward looking statements within the meaning of U S. Security laws for example of any statements regarding trampling expectations for our financial performance. This year of longer term cash runway revenue expectations and timing reimbursement Gulf by them booking of orders of products services technology clinical miles.
So the outcome and timing of reimbursement decisions expectations for existing and future collaboration activities.
Expectations, the outcome of legal proceedings to enforce patents the validity or enforceability of our patents under market opportunity business outlook. The statement to subject of risks and uncertainty that could cause the actual results to differ materially from our current expectation I encourage you to review our most recent filings with S. D. C I'm, putting the risk factors described the numbers recent quarterly report on.
Form 10-Q .
Malice undertake no obligation to update the state <unk>.
Except as required by applicable law or press release with our second quarter 20 twenty-three resolved is available on our website www dot personnel dot com under the investors that can only includes additional details about our financial results are.
Our website also at the latest SEC filings, which we encourage you to review a recording of today's call will be available on our website by five P. M Pacific time today.
Now I would like to turn the call over to Chris for his comments in second quarter business highlights.
Thank you Caroline good afternoon, everyone and thank you for joining us.
I'm proud of our team as we continue to execute well.
Near term milestones and we expect your.
Your revenue.
Did they progress this quarter and deepening our collaborators for next <unk>.
The address for clinical use this year and lastly, establishing next person was the answer choices for global Biopharma customers.
There's no need.
Need repositioning to grow rapidly over the next several years.
From two very important developments in Korean oncology.
It has to be a personalised diagnostic test to monitor patients with cancer and the development of personalized therapy.
Both of these shifts and cancer management required discriminating technology to eliminate the uniqueness.
Patients disease.
Ability to provide actionable information to change your cause their treatment.
Personality technology platform enables the solutions needed to report the big ships.
<unk> today.
Or this year, we laid out our we ended M. R. D strategy to go after what we estimated to be a 25 billion dollar monitoring work.
Our product addressing the space is a tumor inform personalised liquid biopsy tests called next personal.
Focused strategy involves deepening evidence in pursuing coverage and free answer indications early stage long early stage breast cancer and immunotherapy monitoring.
We focused on these cancer types, because we believe that ultra high sensitivity of our technology is uniquely suited to both to tech recurrence very early and also to guide treatment decisions in these areas.
Elaborate about high sensitivity and what that means is that it is at the heart of our strategy.
Aim to achieve answered detection levels down to one part per million dollars.
What this means is that next personal may find residual recurring disease. When there is only as few as one circulating cancer DNA fragment among a million normal G&A fragments in the blood and we believe that can do this not just for a few patients but consistently for most patients across many different cancer types in stages.
We believe next personal can detect cancer, well before competitive technologies and importantly can provide confidence that one when we detect cancer, we see it earlier and patient management can be modified to result in more favorable outcomes and too when we don't see cancer patients will likely remain disease free and may not need additional thorough.
B.
Over the last few months, we've seen early data demonstrating next personal performance and we expect additional data to be published and our focus cancer types.
Call. We mentioned that we were chosen by Astrazeneca trace or extra <unk> studies.
Astrazeneca, we use next personal to explore ultra sensitive M. R. Deam measurement for clinical research and drug development.
We're working with the Treasury samples and Doctor Charles Martin and his leadership group to demonstrate the value of an ultra sensitive assays such as next personal one lung cancer patients.
Oh, I have no color and the tracer X relationship and how the evidence developed supports reimbursement in a minute, but it's important to point out that these high end collaborations are validations of our technology and performance claims.
<unk>.
The global leaders are choosing to work with us and we're thrilled that are ultra sensitive M. R. D capability is being recognized and deploy.
The heart of our winning M. R. D strategy used to make progress with clinical evidence to support reimbursement for next personal you may recall that our goal is to have reimbursement in one disease area by the end of 2024.
While it's an aggressive timeline, we have already established key collaborators and studies in each of our focus cancer types and we continue to believe that this call will be realized next year. We now have anchor studies lined up in each of our key indications and are on target to be able to submit for coverage in 2024.
Run through the focused indications.
I'll start first and lung cancer, where the tracer X collaboration is our anchor study.
Tracer X consortium.
Led by lung cancer expert Dr. Charles one and teams in cancer Research UK, The Francis Crick Institute and University College, London.
Previously this group conducted research on prior generations of them are gsa's and identified significant opportunities for detection improvement. The study will now deploy next personal to determine the clinical value of an ultra sensitive assay for early stage lung cancer, and we expect data to be presented at an upcoming scientific conference. This year.
<unk> <unk>.
Second in breast cancer, we secured a relationship with Royal Marsden in the U K Royal Marsden is one of the leading institutions globally and breast cancer in our work with that will focus on patients with early stage disease for several some types, including ER positive her two positive a triple negative breast cancer.
Marston collaboration provides access to a large well annotated set of samples with clinical outcomes that we believe will provide a foundation for for coverage in breast cancer.
Additionally, our prospective trial be stronger as kicked off and we plan to enroll approximately 900 patients it up to 30 U S sites. We made significant progress has stamped establishing submitted sites this quarter and expect to be enrolling patients. This year.
To be stronger trial was a collaboration with the academic breast cancer consortium and criteria and will be carried out in two stages in the first stage samples collected from each patient for both both pathological complete response or past CR and M. R. D analysis to assess whether it margie using next personal correlates with Stan.
Entered a carer path CR measurements.
Stage, one ball the five year follow up to further establish clinical validity and performance of next personal like early stage triple negative breast cancer. We're expecting these studies and trials to showcase next personal ultra sensitivity and ability to provide insights important for patient therapy decisions.
We have a new collaboration with found to Enron Institute of oncology or a V. H I O. Two demonstrated leveraged the efficacy of next personal for Io therapy monitoring, notably the V. H I O gives us access to a large bowl annotated bank of retrospective samples that are the cornerstone of our efforts to achieve reimbursement coverage for pan cancer.
Oh therapy monitoring this exciting collaboration joins existing work, we've announced on melanoma Io therapy, but the University Medical Center Hamburg at the dwarf also known as U K and R. Previously announced Duke and UCSF relationships. As a reminder, we have presented compelling data already.
The work with the U K.
Ask her this year.
So as we March towards establishing personality is the market leader in emergency we remain on track to launch next personal as a clinical laboratory developed test or L. D. G to be used by oncologist in the fourth quarter of this upcoming year.
This year.
Proprietary technology is key to enabling our next personal product to transform the cancer diagnostic market and it's also empowering the next generation of our customers oncology Biopharma products. We've made strong progress with multiple global Biopharma customers this quarter, including the recently announced collaboration with National Cancer Center Hall.
But at least and Ono pharmaceutical company.
To better predict immunotherapy response for rectal cancer. This is yet another validation of our technology by a world renowned K O L and large pharmaceutical companies wanting to be a part of our journey to change the paradigm for cancer detection as well as treatment.
We are investing heavily to win an M. R. D. N. A proprietary platform is a leap forward for the field. It's important to defend our investment which is why we continue to aggressively defend our industry, leading intellectual property portfolio and initiated a second patent infringement lawsuit against foresight diagnostics with three additional pattern.
Which means we now have a total of seven patents asserted in our lawsuits against foresight. We have continued to expand our patent estate and we believe it reinforces our market leadership position, we intend to continue to vigorously defend the investment we're making a transforming the active management of cancer breakthrough Personalised testing for the benefit of our investors.
Our customers and our patients.
While next personalize the potential to lead the industry and personalize assays to monitor cancer progression.
Really exciting has helped personality as technology is powering the development of the best Personalised therapies.
As announced earlier this year, we are a key partner from during this clinical trial work as they pursue regulatory approval of their personalized therapy.
Is merk M. A journey disclosed they have begun enrolling patients and their phase III clinical trial. This is an exciting development for us and as we said while it's still early days. We expect this to be a significant driver of revenue in 2024 with thousands of new cancer patients each year in the us alone or aspirations are for personality.
Allergy to power the development of the next generation vaccines and therapies as we're doing with our madrone partnership.
And turning to populations sequencing.
We were recently notified by the United States Department of Veterans Affairs million Veterans program VA M. V. P did they exercise the next year option, which starts in September of 2023. As a reminder, we received last year's task quarter for up to $10 million late in September and our expectation is that we would receive the.
<unk> 2023 task quarter late this coming September .
We're excited to continue supporting the VA MVP and their initiatives.
I'm so excited that Dr. Qin Witter is joined our board of directors can brings to us an extensive experience.
Within the healthcare in molecular diagnostic industries. In addition to his wealth a public company experience and we're pleased to have him working with US. It's an exciting time in personality and we continue to make progress on multiple fronts. We appreciate all of our partners and investors being part of our journey.
That I will now turn it over to Aaron to review our financial results.
Thank you, Chris we executed well in the second quarter and continued to meet our financial commitments.
I won't be providing details about our second quarter financial results.
And guidance for the third quarter and full year.
Total company revenue from the second quarter of 2023 was $16.7 million.
And decreased 8% compared with the same period of the prior year, primarily due to the timing of customer sample receipts biopharma economic headwinds.
Reducing unprofitable business.
<unk> revenue.
Gross margin was 28.7% for the second quarter compared with 25.1% for the prior quarter and $23 five per cent for the same period of the prior year.
The sequence will increase of 3.6% and year over year increase of 5.2% were primarily due to dedicate even more operational resources to perform tests required for clinical evidence generation.
Which was non revenue.
And therefore categorize as R&D expense.
This includes sample processing for collaboration that include trace Rex, Duke U K E and others.
Operating expenses were $31 billion in the second quarter and included the one time non-recurring restructuring charge, a point $1 million associated with the closure of China lab operation compared with $32 2 million for the same period.
For your <unk>.
Excluding the restructuring charge.
Operating expenses were $30 million and decreased $2.2 million from the same period last year.
R&D expense was $17.9 million in the second quarter compared with 63 million for the same period last year and SG&A expense was $12.1 million compared with $15.9 million for the same period last year.
Net loss for the second quarter was $24 million compared with a net loss of 27.5 million for the same period of the prior year.
The net loss per share for the second quarter was 50 cents and the weighted average basic and diluted sure count was $47.7 million compared with a net loss per share of 60 cents.
And a weighted average basic and diluted sure count to 45.6 million for the same period of the prior year.
Now under the balance sheet.
We finished the second quarter with a strong balance sheet with cash and short term investments $137.2 million and.
In the second quarter hour net cash usage with 11.7 million, which was significantly down compared with the last five quarters, primarily due to completing the new facility buildout and paying for it earlier this year.
Also the timing of payments received from customers was optimal in the second quarter, which helped our cash flow.
Now I'd like to turn the guidance.
For the third quarter of 2023, we expect.
No company revenue of approximately $17 million revenue.
Revenue from farm of tests enterprise sales and other customers of approximately $14 million in revenue from populations sequencing of approximately $3 million.
For the full year of 2023.
<unk> tightened our revenue guidance range with the mid point increasing.
We now expect total company revenue to be $70 million to $72 million with oncology revenue from <unk> enterprise sales and other customers to be $61 million to $63 million popular.
Population sequencing revenue to be approximately $9 million and expected to be recognized during the first three quarters.
Net loss of approximately $103 million, which is 10 million lower than the loss of $115 million in 2022.
Cash usage of approximately 70 million, which is now $5 million lower than our prior estimate from last quarter and represents a reduction of almost 50 million from 202002.
We look forward to updating you on our milestones as we make progress throughout the rest of the year and with that I will turn the call back over to the operator to begin the Q&A session.
We will now be conducting a question and answer session.
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First question comes from Chaos.
Stanley. Please go ahead.
Hey, guys. Good evening and thanks for the time here, maybe to kick things off.
Perhaps can you help us think through the the personalized cancer vaccine opportunity you flagged. It a couple of times now is a very important grilled driver for 2024, but any color you can share in terms of the revenue potential here and and how you sort of you know plan to expand your book of business now that you have you know Madonna and then a couple of other.
People signed up.
Hi, John This is Eric Thanks for the question in terms of the P. C V opportunity. So as we had mentioned on the prepared remarks, Donna Murphy, both starting to phase III clinical trial enrolling patients and.
And there are multiple sites in terms of sample flow to us it's been a little bit slow right now so it's our expectation that through the rest of this year with the second half.
The revenue could be moderate and start to ramp significantly as we get into 2024, you know on the last call. We did talk a little bit about the terror business tailing off in Q1, and it's our expectation that the ramp on the maternal side could potentially offset will be based on the side of the business that I would note it's Chris.
That we we've we've always talked to be have had over the over.
Over the Ark of time 18 clients for personal cancer vaccine some of those companies.
Are not around anymore, but many of them still are and we believe were by far the market leader partnering with companies with personal cancer vaccines, because the platform that we have has been uniquely designed to be able to support people building those personalize therapist. So we're positioned well is that industry comes together too.
B the partner of choice.
Got it that's helpful and then I'm in one quick one for you. Your you mentioned diarrhea I'm heading into 2024, how long are you thinking philosophically about you know that contribution will you essentially as you meant to be zero. When your guide with the possibility of you know a more modest sort of like step down.
If you will and same question on the M. B P side of things down that you have the the renewal and they were expecting the task order and by the end of September you or should we expect sort of a $3 million contribution per quarter, you know through sort of September of 2024.
Yeah. So we'll take the M V. P. One first because that one it's probably easier to deal with in terms of MVP. So we expect an order at the end of September we don't know exactly how large it'll be so our expectation or our estimates don't include anything in the fourth quarter of this year. We're assuming it's the same size as the last order so we'll assume.
Somewhere in the nine to 10 million dollar range in 2024, probably fulfilled over the first three quarters of the year.
Okay.
In terms of the question on the terror so.
Consistent with our last call. We did have a revised agreement on volumes with the terror. So we agreed to minimum quantities and that agreement takes us through the end of Q1 with volume starting to taper off and we're seeing that here in Q2 or we saw it in Q2 down for Q1, our expectation now here.
The second half as you know things could be flattish from the second quarter through the rest of this year.
In terms of what happens beyond that.
It'll depend upon you know what's happening within a terrorist volumes I think they're volumes continue to grow.
And to the extent that that duty do need an outsource partner for additional capacity and capability, we could be that partner for them and so you know more to come here. We don't have exact clarity on the volumes into 2024, but we are estimates would include some tapering off you know in the queue. One time frame at this point and.
Based on what we know.
Very helpful. Thanks, guys appreciate the color sure they hate us.
Next question Patrick Donnelly what city. Please go ahead.
You have printed on for Patrick Uhm I wanted to start off with the revisions to the guidance so you're ready to raise the midpoint by $1 million, mainly driven by the pharma and enterprise sales.
If you could fry provide any commentary or color, what's driving that confidence.
Yeah. So great question in terms of our confidence for the back half of 2023, you see that bank have being a little bit higher than the first half of the.
The final of opportunities with pharma for M. R. D continues to grow.
And even though we haven't had a lot of revenue being recognized earlier this year or even last year from Dharma with M. R. D. We believe it's poised to take off labor to the sheriff mainly because it will provide a more clinical evidence into the marketplace based upon what we're doing with collaborators.
In addition.
On the Nintendo side, so on the last call. We didn't mentioned that volume should start to paper off we're seeing that.
<unk> is probably gonna be flattish the second half of the year compared to what we saw here second quarter.
Great. Thank you and then moving onto the cats, you just for the quarter. So lowering the <unk> for the year from 75 to around 70 can you kind of go through the puts and takes of what led to the.
Decline there.
Yeah, so year over year decline in cash usage by about $50 million in 2022, we had a heavy amount of investment.
$45 million to $50 million for our new facility.
Most of that is beyond us now.
In terms of headcount reduction that took place in the first quarter.
Headcount by some 30%, which saved us $20 million.
On an annual basis going forward from a cash usage standpoint. In addition, we've been looking at all discretionary spend and be imprudent in terms of what we could defer or reduce and not spend it all right.
Great. Thank you.
Sure.
Next question Mark the Sarah with P. T. I G. Please go ahead.
Hey, guys. Thanks, very much for the questions. My first one is on the tracer X trial, you know Charlie Swanton is used at least two other M. R. D tests in his and his work and lung cancer. It would be really interesting to hear.
What you know about why he chose.
Personality as.
The third or maybe the fourth test what was it about the first couple of tests that may have had a limitation in and uhm what exactly was the interest in the next personal tests and then as a as a follow up to that you guys talked about reading out a lung study I believe.
Later this year can you give us a sense for the size of that clinical study and what the end points are.
Awesome.
Markets, Chris a richness here is gonna jump in and talk about trace RSA since he's worked with the collaborators pretty serious collaboration.
Hi, Mark this is rich great. Thank you for the question. So you know what I think you know as you noted truly is has been in this field of M already testing for many many years looked at other platforms and.
I I think that you know as many have noted not just Charlie that there's a.
The the there are areas of of not just.
Lung cancer, but other cancers were.
The first generation of tests.
Did not sensitive enough to pick up.
The cancer. So so I think that's a it's a large reason he chose to work with US. He noted that we have an ultra sensitive platform you saw the premise of the very early on we started working with him you know over a year year and a half ago under so so I think that was that was really exciting for him to be able to.
To start this collaboration with Us and then.
You know in terms of the data generate generation. We're we're in the thick of it right now we're on track.
To start to talk about this data before the end of the year and you know I think the data is looking encouraging.
If you step back I mean, we've always seen it one part per million the personality technology being up to 100 times more sensitive.
And that gives us the opportunity to be able to see what others can see whether it's standard of care have been trained or whether it's other.
Whether it's other assays in the marketplace. So we're really positioned to be able to be a leap forward and emergency detection.
Okay, Great and I know conceptually hundreds of patients have enrolled in the tracer trial.
Is the idea that that each of the folks that are still alive would would get in next personal test and if that's true can you talk about the opportunity for repeat time points, because clearly M. R. D has value Hoover serial testing so.
I'd just be curious to get us a sense for what type of visibility you have on the number of tests that you you think you could generate over time.
Yeah. So I'm sure. That's a great question Mark So the transfer X cohort is actually a retrospective cohort. So the collection has already been done for all these patients and.
The great thing there is a Charlie and his team had the foresight to you know <unk>.
Collect a lot of plasma along the way longitudinally for these patients and now we know.
Because they've been followed up for many many years, we actually know the clinical outcomes for these patients. So so it makes it up for an ideal Ah cohort for us to to test our technology on because.
In some sense, we already know what the Hell cause for these patients are and we can show that we can predict that using our test.
And we can also examine you know if we were gonna be <unk>.
Looking at data from all those time points that were collected them and looking at sort of.
What kind of decisions can be made.
With all those any of those time points along the journey of the patient.
And I think we're going to find that there could you know there's gonna be utility in the test at various points in the patient journey and that's part of what one establish here.
What we think if you step back.
Talk through the pipeline of studies across the three focused answer indications and each one of those give us access to a large set of retrospective data set with multiple time points with clinical truth for us to be able to show the efficacy of the approach of an ultra sensitive assay and cancer types that have been hurt.
Two.
To to to inform on.
Traditionally.
Okay. That's it for me Thank you guys.
Thanks Mark.
Once again, if you would like to ask a question. Please press star one on your telephone Keypad next question comes from swam Coca Cola with H C. Wainwright. Please go ahead.
Thank you.
Chris.
Just to follow up from from the previous set of questions. So okay. Sir <unk> data that you would get at the end of this obviously.
Mmm.
Define your.
This is a bit better.
And with that data sent out a good that experience.
You Monetise this uhm beyond what is being done now.
Well, so we'll be launching the test and of the clinical market at.
At the end of this year towards the end of this year, which means for the first time next person who will be available next person will be available to doctors around the United States to be able to use on patients and that's significant because it'll be one of the.
Next entrance into the market and we're Super excited about we've got a lot of feedback.
And we will take the tracer X data ultimately we expect it to be published at some point and our hope is that that will drive.
The beat of foundations of getting covered for the products. So that we get paid by health insurance companies are doing testing in early stage on cancer, that's one snapshot, but the other a snapshot of the business is that we all have a large robust biopharma set of clients with many of the big Biofog.
Companies, they're all deeply involved in M. R. T M. R G usage or analysis, and having great datasets to be able to inform those conversations helps us continue to get studies and be up further revenue driver. So we see that data along with the other data sets that we're working with Duke and UCSF.
And the Royal Marsden, and VH Io et cetera.
We expect to all those to help us fuel additional conversations and our business for Biopharma customers and formed the foundation to tap to get insurance coverage, which ultimately will build a base of revenue around the clinical samples that we get from patients.
And doctors around the country is.
Is that helpful RK.
Thanks, So <unk> be stronger uhm trial.
Includes like a five year follow.
This does cancer patients so does that mean it'll be continuously.
Getting data.
In time or is it one of those things, where you would have to wait for a longer.
Trying to get.
<unk> data.
Data Sir yeah.
The average rich can go into a little deeper we did structure it with a early.
In term set of data that we can help that can help us get we believe coverage and ultimately payment and then clinical adoption and triple negative breast cancer. So we'll get data.
Well before the whole five year follow up do you have anything to add rich about no that that's exactly right. It's been specifically designed to follow up for a follow those five years, but we have specific interim readouts on the data that are planned.
Where we can get an early glimpse as to the performance.
An earlier time points.
Thank you. Thank you for taking my questions.
Absolutely thank for the questions.
Next question dance with Cowan. Please go ahead.
Great. Thank you. Thanks for taking my questions, maybe just staying with I'm already interest you mentioned in the prepared remarks about.
Some presentations later this year just wondering if you can kind of flesh out a little bit what we can expect from that.
Yep. This is rich. Thank you for the question, Yes, we were on track to.
Hopefully be able to report out on some of this data later this year.
There is an upcoming conference <unk>, it's a very large oncology conference.
In Europe , where.
Where we expect to to present some of this early data on tracer X and and there's several other conferences later in the year and there were also targeting for additional data.
On the breast cancer site.
And in terms of contribution from all the format Ah relationships here, just kind of apologize if you guys already discussed this but.
Impact is kind of assumed.
23, and then how do we think about the potential opportunity for farm 24.
Hey, Dan This is Aaron Thanks for the question, we didn't talk specifically about the farm a contribution but in terms of what's.
Into the guide.
Somewhere in the.
31% to $32 million range for pharma inclusive of P. C V.
Got it and and and.
Specifically for you know.
M. R D like what what's what's the contribution strictly for M. R. D within that just kind of trying to frame with the opportunity there.
So we haven't said yeah, we haven't.
Publicly anything about the exact number so by that Marty in terms of where it would be but it's gonna be.
Single digit millions later in the year.
So it's.
It's a smallish piece, but we I mean, we're really super excited about the potential in 24 25, especially as these datasets start to come together.
We're positioned with all the large biopharma customers because of the work that we've always traditionally done in the translational side with him N O I D platform to be able to capture a much bigger piece of the of the of the spending and move into the <unk> market and we've gotten a lot of interest from those companies.
And they.
Different types of trials and and bake off and.
Test with us, but we expect that to be a big driver moving forward of the revenue 24, 25, especially as we can.
Deploy the next personal assay into clinical trial.
And the clinical trials, because that's whereas some of the bigger opportunities are and then just doing translation of work or biopharma customers. So we're super excited to that be gross driver, but the focus is right now.
Mine is getting the evidence out there and marching towards coverage and getting doctors to be able to use it and do that in a really smart cost effective way you know in terms of sales and marketing and moving along the journey and then having to Biopharma customers you know at the same point in time.
You know be be driving revenue as we go through that commercial journey.
And have you guys discuss it all kind of how we think about pricing for biopharma side on a per sample or any kind of clarification there.
We have not disclosed the pricing, but now that the I mean, the next personal is available and is being used by biopharma customers or is that version of it and are you which is substantially the same we're just finishing Neil analytical validity work for the L. D T Oh, but it's being used right now by several biopharma.
Customers, but we have not disclosed pricing on that and we've not priced the clinical lab product yet.
Got it Okay, I'm, calling me and we talked about maybe getting coverage by the end of next year amongst.
We lead the areas I mean have you disclose which of the three to prolong Nebraska.
With which of the three of them, though I mean.
Perfect grow and get covered all three right at the same time, but but our expectation is that we were driving data simultaneously and what what you have to do to get coverage as you know as the articles the data needs to be put into an article it needs to be accepted in a peer reviewed journal we need to submit for coverage and then there is inevitably a period of backing.
Fourth and discussion that happens with Palmetto rate that process is a little bit beyond our control because both getting the data and a publication has it been on how the collaborators move et cetera, but then that process of getting it into the public domain and accepted is another set of journeys and so we don't expect.
That all three of those will go with the same weight something some some may go quickly into publication.
May go slow or something you know go through a couple of different <unk>.
Iterations et cetera, and so that tail is largely.
Beyond our control what we can control is getting the data that are collaborators. So that they can write the articles and get those submit it and then there's a period of time in this journey, where you know there's a back and forth between the collaborators in the journals et cetera, and then and then we'll take it from there I drive it towards towards coverage and so we're moving aggressively.
On these three fronts and in our expectation is that one of them will go and we'll be able to make progress.
But that's the that's the way we're thinking about it and won't won't keep you all updated obviously as data submitted an <expletive> things come together, but.
But that's that's the attorney that we've laid out and we're committed executing on.
And so I finally, just on the balance sheet like how how should we think about.
The need for financing and how you guys address that going forward.
Yeah. So we continued to extend our Katherine weekend at the end of Q2, we had $137 million cash which is two years.
Of cash runway so in terms of where we're at today.
Continuously differ.
Differ expenses, where we can.
Imprudent in terms of discretionary spend.
See we have clinical evidence and things like that that we have to go get done so we're spending where only where we need to but in terms of where we're at today.
Short term I think we're in good shape.
Perfect. Okay. Thanks, a lot.
Thank you ma'am thanks, Dan.
Okay, and if you would like to ask a question. Please press star one on your telephone keypad.
Next question comes from Mike.
My company. Please go ahead.
Yeah. Thanks, I joined the call lately, it's I apologize if you've been through this but I figured I'd ask anyway.
So the MVP renewable do you have a feel for how much revenue that's gonna.
January over the next year.
Yes, so what we've said Mike Thanks for the question.
We basically said that we expect an order sometimes late September this year.
Don't know exactly how much it's gonna be so we're not assuming any revenue people.
Filled in the fourth quarter from that New order and then in terms of 2024, our assumptions sitting here today is that it's the same level from an order standpoint, <unk> volume standpoint that we had last year, so somewhere in the nine to 10 million dollar range.
Okay Alright.
Alright, and then it looks like you produce the expected cash burn by like $5 million in it. So it's a small change, but obviously in the right direction. So what is what's driving that.
Well, we basically reduced expenses earlier this year and each quarter, we continued to reduce expenses and differ.
Yeah.
Alright, and then just the ramp down the terror revenue is that still consistent with your prior expectations.
It is at this point in time, and so we saw a ramp down from Q1 percent to Q2 in terms of the terror volume our assumption right now is that it stays relatively flat from Q2 through the rest of these this year and then per our agreement with the terror. It could go down a little bit more in the first quarter, but we'll have to wait and see.
Okay got it thank you.
Thank you.
This concludes today's teleconference. You may disconnect your lines at this time and thank you for your participation.
Goodbye.
Mmm.
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