Q1 2024 VolitionRx Ltd Earnings Call
Operator: Good morning, ladies and gentlemen. And thank you for standing by.
Good morning, ladies and gentlemen.
Salvatore Thomas Butera: Welcome to VolitionRX Limited's first quarter 2024 earnings conference call. During this presentation, all parties are in listen-only mode. Following the presentation, the conference call will be opened for questions. If you have a question, please press the star key, followed by the number 1 on your touch-tone phone. If you would like to withdraw your question, please press the star key followed by the number 2. If you are using speaker equipment, please lift up the handset before making your selections. This conference call is being recorded today, May the 14th, 2024. I would now like to turn the conference over to Louise Butera, the Group's Chief Marketing and Communications Officer. Please come ahead.
Ollie: And thank you for standing by welcome to the Ollie's shouldn't our economists.
Ollie's CEO: First quarter earnings conference call.
Speaker Change: During this presentation all parties are in listen only mode.
Speaker Change: Following the presentation the conference call will be opened for questions.
Operator: If you have a question. Please press the star key holidays talking number one on your touch Tencent.
Operator: If you talk to or it's truly a Christian he's supposed to two key holiday stocking number two.
Christian: You feel using specie could pinch.
Operator: Is lifted and states.
Operator: Before making selections.
Speaker Change: This country's call is being recorded today may the 14th 2024.
Speaker Change: Oh not attend the conference as a cheap, especially at Christmas Chief Marketing and Communications Officer. Please go ahead.
Operator: Okay.
Operator: Yes.
Salvatore Thomas Butera: Thank you and welcome everyone to today's earnings conference call for VolitionRX Ltd. Before we begin, I'd like to remind everyone that some of the information discussed on this conference call will include forward-looking statements covered under the Safe Harbour provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on our beliefs, as well as assumptions we have used, based upon information currently available to us. Because these statements reflect our current views concerning future events, they may involve risks, uncertainties, and assumptions.
unknown: Thank you and welcome everyone.
Speaker Change: Conference call for Volition Rx limited.
Salvatore Thomas Butera: Actual future results may vary significantly based on a number of factors that may cause the actual results or events to be materially different from future results, performance, or achievements expressed or implied by these statements. We have identified various risk factors associated with our operations in our most recent annual report on Form 10-K, quarterly reports on Form 10-Q, and other filings with the Securities and Exchange Commission. We do not undertake an obligation to update any forward-looking statements made during the course of this call.
Speaker Change: Before we begin I'd like to remind everyone that some of the information discussed on this conference call will include forward looking statements covered under the Safe Harbor provisions of the private Securities Litigation Reform Act of 1995.
Speaker Change: These statements are based on our beliefs as well.
Speaker Change: Long as assumptions, we have used based upon information currently available to us.
Speaker Change: Because these statements reflect our current views concerning future events. These statements may involve risks uncertainties and assumptions.
Speaker Change: Actual future results may vary significantly based on a number of factors that may cause the actual results or events to be materially different.
Speaker Change: Future results performance or achievements expressed or implied by these statements.
Company Representative: We have identified various risk factors associated with our patients and our most recent annual report on Form 10-K.
Company Representative: The reports on Form 10-Q, and other filings with the Securities and Exchange Commission.
Company Representative: We do not undertake an obligation to update any forward looking statements made during the course of this call.
Salvatore Thomas Butera: We will start the call today with Terig Hughes, our group chief financial officer, who will cover Volition's financial and operating results for the first quarter of 2024, along with a discussion of recent financial activities and a look ahead. Dr Andrew Retter, our recently appointed Chief Medical Officer, will provide a commentary about our clinical trial program, and then Gael Forterre, our Chief Commercial Officer, will summarise some of the key commercial achievements this quarter with a look ahead to upcoming milestones. Lastly, Cameron Reynolds, our President and Group Chief Executive Officer, will provide a brief wrap-up before we open the conference call to a question and answer session. I'll now turn the call over to Terig.
Speaker Change: We will start the call today with Cherokee's, Chief Financial Officer, who will cover Volitions financial and operating results for the first quarter of 'twenty 'twenty four along with a discussion every finance activities and a look ahead.
Andre <unk>: So Andre <unk>, our recently appointed Chief Medical Officer will provide a commentary about how clinical trial program and then Guy also tie our chief commercial officer will summarize some of the key commercial achievement this quarter with a look ahead to upcoming milestones.
Speaker Change: Lastly come in below our President and Chief Executive Officer will provide a brief wrap up before we open the conference call to a question and answer session.
Speaker Change: I'll now turn the call over to Terry.
Terig Hughes: Thanks, Lou, and thank you, everyone, for joining Volition's first quarter 2024 earnings call today. We do appreciate your time, given the busy earnings season. I'll now provide a summary of the key financial results for the quarter ended March 31st 2024. We ended the quarter with cash or cash equivalents of approximately $11.8 million.
Terry: Thanks, Luke and thank you everyone for joining Volitions first quarter of 2020 call earnings call. Today, We do appreciate your time given the busy earnings season.
Terry: I will now provide a summary of the key financial results for the quarter ended March 31st 2024.
Terry: We ended the quarter with cash cash equivalents of approximately $11 million.
Terig Hughes: Throughout this quarter, we have continued to work on a number of threads with the aim of ensuring that volition is cash flow neutral in 2025. We are making strong and necessary decisions to preserve capital in the company whilst ensuring we deliver on our vision and mission. Firstly, from a funding perspective, as you are probably aware, throughout the company's history, we have been successful in securing non-dilutive funding on favorable terms, and year-to-date, we have targeted a range of government agencies, including in the US, to fund or co-fund some of our strategic projects up to $25 million. In addition, we have applied for, or are in the process of applying for, an additional $18 million from various European agencies.
Terry: Throughout this quarter, we have continued to work on a number of strengths with the aim of ensuring volition is cash flow neutral in 2025.
Scott Powell: We are making strong and necessary decisions to preserve capital in the company, whilst ensuring we deliver on our vision and mission.
Scott Powell: Firstly from a funding perspective as you are probably aware throughout the company's history. We have been successful in securing non dilutive funding on favorable terms and year to date as we have talked to the range of government agencies.
Speaker Change: <unk> in the U S to fund or co funded and some of our strategic project up to $25 million.
Speaker Change: In addition, we have applied for all are in the process of applying for an additional $18 million for various European agencies.
Terig Hughes: As a reminder, we have previously received over $20 million in non-diluted funding support from various Belgian and European agencies. We will provide further updates on this in the coming months. Secondly, as Andy and Gael will cover later, we are working hard to complete the materials for our data rooms during this second quarter for NuQ Nets and CAPTCHA PCR to enable licensing negotiations to move forward. If successful, we believe that this strategy, like the approach we took with new QFED, could provide us with ongoing royalties and very meaningful milestone payments in the next 12 months.
Speaker Change: As a reminder, we have previously received over $20 billion is non dilutive funding support from various Belgium and European agencies we.
Speaker Change: We will provide further updates all of this in the coming months.
Speaker Change: Secondly, it's Andy and Gary will cover later, we are working hard to complete the materials fraud data during the second quarter, <unk> net and catch a PCR to enable licensing negotiations to move forward.
Speaker Change: If successful we believe that this strategy might be approach, we took with new few that could provide us with ongoing royalties and very meaningful milestone payments in the next 12 months.
Terig Hughes: Thirdly, now that we expect that we are very close to receiving large amounts of data for both new QNets and CAPTURe PCR, subsequent to Quarter End, we took some necessary actions in order to significantly reduce expenditures and cash burn as we focus on commercialization. We have and will continue to undertake a thorough review of all projects with the aim of streamlining our R&D, innovation, scientific, and sales and marketing activities to help ensure that we deliver on our focus and action plans and monetize our exciting technologies and intellectual property.
Gary: Thirdly, now that we expect that we are very close to receiving large amounts of data both new units and two PCR subsequent to quarter end, we took the necessary actions in order to significantly reduce expenditures and cash burn as we focus on commercialization.
Speaker Change: We have and will continue to undertake a thorough review of all project with the aim of streamlining our R&D intervention scientific and sales and marketing activities to help ensure that we deliver on our focused action plans and monetize our exciting technologies and intellectual property.
Terig Hughes: Our goal is to reduce expenditures by $10 billion on an annualized basis. Additionally, to demonstrate their continued commitment and belief in the long-term potential of the company, the board of directors intends to take 50% of their fees in equity for a minimum of six months, and the leadership team intends to take a percentage of their salaries in equity for a minimum of six months, ranging from 10% to 50%, with our group chief executive officer, Cameron Reynolds, taking 50%. We have also postponed the payments of any cash bonuses indefinitely.
Speaker Change: Our goal is to reduce expenditures by $10 billion on an annualized basis.
Speaker Change: Additionally to demonstrate our continued commitment and belief in the long term potential of the company.
Speaker Change: Board of directors intends to take 50% of that fees in equity for a minimum of six months and the leadership team intends to take a percentage of best salaries and equity for a minimum six months ranging from 10% to 50% with our group Chief Executive Officer, Cameron Reynolds, taking 50%.
Cameron Reynolds: We have also postpone the payments of any cash bonuses indefinitely.
Terig Hughes: We have invested significantly over the last years to build out our product pillars and to ensure we have robust scientific and clinical evidence to support our potential breakthrough technology. Following our anticipated receipt by the end of June of a substantial amount of clinical data, we intend to have a laser focus on commercializing our potentially groundbreaking technologies. From a revenue perspective, this quarter we recorded revenue of approximately $170,000 for the quarter, approximately 15% higher than the same period last year.
Cameron Reynolds: We have invested significantly over recent years to build out our product to ensure we have robust scientific and clinical evidence to support a potential breakthrough technologies.
Cameron Reynolds: Following our anticipated receipt by the end of June a substantial amount of clinical data, we intend to have a laser focus on commercializing a potentially groundbreaking technologies.
Cameron Reynolds: From a revenue perspective this quarter, we recorded revenue of approximately $170000 for the quarter.
Cameron Reynolds: Approximately 15% higher than the same period last year.
Terig Hughes: About 75% of the revenue was from NUQ VET and the remainder from NUQ DISCOVER. The initial phase of a product launch can take time as adjustments are made to the product workflow, marketing, price, etc. And so, whilst the revenue ramp from new Qbets has taken longer than anticipated, we do expect revenues to accelerate in the second half of 2024 due to two very important recent product launches. We are delighted that two additional large distributors have recently come online with our new Q-VET cancer test.
Speaker Change: About 75% of the revenue was from new acute beds and the remainder from UK discover.
Speaker Change: The initial phase of a product launch can take time as adjustments are made to the product workflow marketing price et cetera, and so whilst the revenue ramp for new Baxter has taken longer than anticipated. We do expect revenues to accelerate in the second half of 2024 due to two very important recent court.
Speaker Change: Launches.
Baxter: We are delighted that two additional large distributors have recently come online with our new <unk> based cancer tests.
Terig Hughes: Hantech Diagnostics, part of the Mars Pet Care Group, announced the launch of a new Q-Vet test, not only in the US but also in Europe, and has been very active in marketing the in-house test at a very compelling list price of $35 for the vet. It was very heartening to see Antec's press release, including several excellent VET KOL endorsements in both the US and Europe. And you might remember from our last call that the VET team was out in Japan supporting Fujifilm VET Systems at their launch event at the World Veterinary Cancer Congress. Fuji is also pricing the test for bets at below $40 and will market our test aggressively later during the second quarter after very good initial feedback from bets.
Speaker Change: And tech diagnostics part of the Mars Petcare group announced the launch of a new <unk> test not only in the U S. But also in Europe and have been very active in marketing of the in house test at a very compelling with price of $35 to the back it.
Baxter: It was very heartening to see Anteks press release, including several excellent that's K O L endorsements in both the U S and Europe.
Speaker Change: And you might remember from our last call that the vet team, whereas in Japan supporting Gucci combat systems at their launch event at the World Veterinary cancer Congress.
Baxter: Gucci is also pricing the test Tibet slipped below $40 and with multiple pilot test aggressively later during second quarter. After a very good initial feedback from bass.
Terig Hughes: So we certainly hope to see revenue accelerate in the second half of the year. To sum up, our aim is to become cash flow neutral in 2025 by increasing revenues, cutting costs to reduce expenditures by $10 million on an annualized basis, getting very meaningful further government non-dilutive funding, and licensing milestone payments from new QNET and CAPTCHA PCR. As we have said on previous calls, our commercial strategy is to monetize our intellectual property through licensing.
Baxter: So we certainly hope to see revenue accelerate in the second half of the year.
unknown: To sum up our aim is to become cash flow neutral in 2025 by increasing revenues cutting costs to reduce expenditures by $10 million on an annualized basis.
unknown: Getting very meaningful government non diluted funding and licensing milestone payments from Newquay nets and capture P. C. R. S.
unknown: As we have said on previous calls our commercial strategy is to monetize our intellectual property through licensing.
Terig Hughes: To that end, we are delighted with the progress we have made with NUQ-VET and with the progress we are making with NUQ-NET, CAPTCHA-PCR, and NUQ-Lung Cancer. And to provide more details, I'd now like to hand the call over to Andy and Gael. Andy, it's over to you.
Newquay Nets: To that end, we are delighted with the progress we have made with new view bet and with the progress we are making with Youku, let's capture PCR and <unk> lung cancer.
Speaker Change: More details I'd now like to hand, the call over to Andy and Guile, Andy over to you.
Andrew Retter: Thank you very much, Terig, and good morning, everybody. Thank you for joining us today.
Andy: Thank you very much Terry and good morning, everybody. Thank you for joining us today.
Andrew Retter: I will start by reiterating my conclusions from our last call, just a few weeks ago. I believe that Volition's technologies will help with not only diagnostic enrichment but also with monitoring a patient's disease progression and response to treatment. And, most amazingly, we should be able to accomplish these goals with a relatively low cost, easily available routine blood test that can be used widely around the world. We have certainly made excellent progress towards achieving these ambitions in the last year.
Andy: I will start by reiterating my conclusions for La last call just a few weeks.
Andy: I believe the Volitions technologies will not only help with diagnosis can Richmond Crusade with monitoring of patients disease progression in response to treatment and most incredibly you should be able to accomplish these goals.
Andy: A relatively low cost easy available routine blood test, which can be used widely around the world.
Andy: We have certainly made excellent progress towards achieving these ambitions in the last year.
Andrew Retter: Starting first with NUQ-Net and sepsis, I wanted to highlight a couple of studies which we hope will provide strong clinical utility evidence. We are ongoing analysis of two large-scale retrospective sepsis cohorts in Europe, the German sepsis group and work with a team at UMC Amsterdam. This will encompass over two and a half thousand patients with longitudinal samples. We hope to characterize cohorts of patients with sepsis, and this should be a really rich and valuable source of insight into the value that H3.1 from Nucleonet offers.
Nietzsche nets: Starting first with Nietzsche nets in Texas, I want to highlight a couple of studies, which we hope will provide strong clinical utility evidence.
Nietzsche nets: We have ongoing analysis of two large scale retrospective sepsis cohorts in Europe.
Speaker Change: The German sepsis Creek.
Speaker Change: Work with the team at UMC Amsterdam.
Speaker Change: This will encompass let's say the two and a half thousand patients with loan to cheat yourselves.
Speaker Change: T characterized cohorts of patients with sepsis and this should be a really rich and valuable source of insight into the value that H, one Tony Keynotes office.
Andrew Retter: These samples have now all been run, and we're working on the complex process of data analysis. We aim to have this completed by the end of next month, but we'll have data ready to show soon after.
Speaker Change: These samples have now all been run.
Speaker Change: Working on the context prices of data analysis.
Tony Keynotes: We aim to have this completed by the end of next month, we will have data ready shape seemed afterwards.
Andrew Retter: We extended the Docro study in the US to include sicker patients and patients to be initiated from the emergency department rather than simply ITU. The plan is to close out this study in the coming months. In summary, across all the studies today, we'll have data covering patients from the emergency room presentation through to intensive care unit admission. We will cover key outcome measures with new QNETs correlated with the Sepsis-3 diagnostic criteria, disease severity, specifically picking out risk of developing organ failure and types of organ failure, intensive care mortality, 28-day mortality, duration of organ supportive therapy, and length of stay in hospital and in ITU.
We: We extended the decrease study in the U S to exceed sicker patients and for patients to be initiated for an emergency department rather than simply I T.
We: Just to close out this study in the coming months.
Speaker Change: In summary across all studies to date.
Speaker Change: Data covering patients from emergency room presentation, three to intensive care units mission.
Speaker Change: We will cover key outcome measures with Neogen is correlated with sepsis three diagnostic criteria.
Neogen: Disease severity, specifically picking out risk development of organ failure type civil Catania.
Speaker Change: <unk> tested Campbell County, 28 day mortality duration of Vulcan supportive therapies and length of stay in hospital and in a T.
Andrew Retter: We believe that this data will significantly strengthen the contents of our confidential data room to support our ongoing commercial discussions by the mid-point this year. Our project with Key Opinion Leader Professor Dajjali Anani-Pranth is also progressing well. This is a consortium project of an ongoing prospective study of which Volition is a key member.
Speaker Change: We believe these states will significantly strengthen the content not confidential data.
Speaker Change: To support our ongoing commercial discussions that the midpoint this year.
John <unk>: Project key opinion leader John <unk> is also progressing well.
John <unk>: This is a consortium project from an ongoing perspective study of which finishing as a key member again logged achievement in nature and large scale with an anticipated recruitment at about 1500 patients.
Andrew Retter: Again, it's longitudinal in nature and large scale, with an anticipated recruitment of about 1,500 patients. Finally, the Epictetus study at my own hospital, Guy's and St Thomas' in London, is now underway, with our first patient recruited in December last year. From a publication perspective, we're making solid progress. Following on from our Key Opinion Leader event last year, I've been working closely with the clinicians on a clinical review article with our intention to submit it for peer review by the end of June and, hopefully, publication shortly thereafter.
John <unk>: Finally, the epic, Texas study at my own close to guidance and policies in London is now underway with our first patient with <unk> in December last year.
Speaker Change: From a publication perspective, we're making solid progress.
Speaker Change: Following on from our key opinion leader event last year I've been working closely with clinicians on the clinical review article with our intention to specific payer fee by the end of June and hopefully publication shortly thereafter.
Andrew Retter: We received positive feedback from our publication by one of our colleagues, Kieran Zickus. We have addressed the reviewer's questions, and the paper has been resubmitted. We hope to hear back confirmation that it will be published very shortly. Findings of the Synthetic Sepsis Model emphasize the importance of investigating neutrophil physiology and biology.
John <unk>: We received positive feedback from a publication by one of our colleagues Kieran said, because we have addressed the reviews questions and the paper's been resubmitted.
Kieran: Hope to hear back confirmation that will be published very shortly.
Kieran: Lending to the synthetic sepsis model emphasized the importance of investigating each pool physiology apology. This is relevant to enable us to have a better understanding of disease pathology.
Andrew Retter: This is relevant to enable us to have a better understanding of disease pathology, of risk factors, and factors that trigger neutrophils and lead to an excessive immune response. Ultimately, this will lead to us identifying therapeutic targets to allow us to intervene and, hopefully, change the trajectory and improve outcomes in patients with sepsis. We have a robust scientific pathway strengthening our evidence as we continue to develop and supplement our clinical data to support our scientific rationale.
Kieran: Risk factors and factors that shrinking each fills and lead to an excessive immune response ultimately this will lead to identify therapeutic targets till.
Speaker Change: So now to intervene and hopefully change the trajectory and improve outcomes for patients with sepsis.
Speaker Change: We have a robust scientific pathway strengthening of evidence.
Speaker Change: As we continue to develop and supplemental clinical data to support our scientific rationale we aimed publish more papers.
Andrew Retter: We aim to publish more papers over the coming year. We anticipate a number of the clinical studies that I mentioned earlier will be presented at the European Society of Intensive Care meeting, a flagship event in Barcelona in October. We're also proudly sponsoring our first satellite symposium, and the session will be chaired by Professor Dajani Anand at the Congress.
Speaker Change: We anticipate a number of the clinical study as I mentioned earlier, we will report out the Europeans such intense kept meeting our flagship event in Barcelona in October we also proudly sponsoring our first satellite symposium on the sexual will be chaired by professor teach out.
Andrew Retter: We expect all of these activities to help us continue to build momentum and generate licensing interest. One final comment on UQNet before I move on to our cancer technology. I would like to reiterate that the sense from the KL group was that new QNets potentially represent one of the biggest breakthroughs in sepsis management in the last 30 years, potentially helping us to diagnose, monitor, and treat patients more efficiently and, hopefully, save many lives. We have many more details to follow, but it certainly looks like a very busy and exciting year ahead for new QNAPs and TEPs.
Speaker Change: We expect all of these activities to help us continue to build momentum and generate licensing interest.
Speaker Change: One final comment on <unk> defined move onto a common technologies.
Speaker Change: I would like to reiterate that the sense from the KL grade present, new T. That's potentially reps had one of the biggest breakthroughs at sepsis management in the last 30 years.
Speaker Change: Potentially helping us to diagnose monitor and treat patients more efficiently and hopefully save many lives.
Speaker Change: We have many more details to follow but it certainly looks very busy and exciting year ahead for Nietzsche that's in Texas.
Andrew Retter: Cancer, as we all know, is a very serious and deadly disease, causing almost 10 million deaths in 2020. The incidence of cancer is forecast to increase as our population ages, with an estimate of around 30 million new cases diagnosed each year by 2040. Like many diseases, early diagnosis of cancer has a significant impact on outcome. Quite simply, the earlier we can diagnose the disease, the greater chance of survival and a better quality of life for our patients.
Speaker Change: Cancer is a very serious and deadly disease, causing almost 10 million deaths in 2020.
Speaker Change: The incidence of cancer is forecast to increase as our population ages with an estimate of around 30 million new cases diagnosed each year by 2014.
Speaker Change: Like many diseases early tactics.
Nietzsche: The significant impact on outcome quite simply the earlier, we can diagnose that sees the greatest chance of survival and a better quality of life for our patients.
Andrew Retter: Early diagnosis is, however, very challenging. Often, cancer develops silently with few symptoms, and often people are diagnosed only late in the illness when fewer and much more aggressive treatment options are available. Early stage cancer is difficult to detect because the cancer-derived circulating tumor DNA is low. It may comprise only 0.01% of the DNA present amongst a background of normal cell-free DNA.
Speaker Change: Early diagnosis is however, very challenging.
Speaker Change: 10 cancer develop silently with fee symptoms and often pizza diagnosed early late in the illness, when fewer and much more aggressive treatment options are available.
Speaker Change: Early stage cancer, it's difficult to detect because cancer derived cert J T tumor DNA is low.
Speaker Change: May compromise only 0.0% to 1% the EAA present, amongst a background normal cell free DNA.
Andrew Retter: We're very excited as Volition has developed a novel method of liquid biopsy involving the first ever reported physical isolation of a class of tumor-derived ctDNA fragments from blood. These cancer-derived tumor DNA fragments are extracted, and after removal of the normal background DNA, the cancer DNA is detected and characterized with a low-cost PCR test. We're calling this new technique CapturePCR.
escalation: We are very excited escalation has developed a novel method of liquid biopsy involving the first ever reported physical isolation of the costs of tumor derived C. T. DNA fragments, we got these.
escalation: These catheter derived tumor DNA fragments are extracted and after removal of the normal background DNA. The tens of DNA is detected and characterized with a low cost Pcr test.
Speaker Change: Including this new technique capture P C L.
Andrew Retter: Volition's proof-of-concept data was presented at the European Society of Medical Oncology conference in 2023. We demonstrated the isolation of tumor-derived DNA fragments from plasma. Volition has tested the new method in a small clinical experiment and detected a range of solid and liquid tumors, including early stage 1 disease. These early assays were developed using a leukemia model, but to our surprise, we were also able to detect many other cancers, including detecting colorectal cancer in a blood test with an accuracy approaching that of the current fecal immunochemical tests or FIT tests.
Felicia: Felicia as proof of concept data was presented at the year, It's Archie vertical Koji conference in 2023.
Felicia Archie: We demonstrated the isolation of tumor derived DNA fragments for plasma.
Felicia Archie: Felicia has tested the new method.
Felicia: So clinical experiment.
Felicia: Detected a range of solid and liquid chinas, including early stage one disease.
Felicia: These early assets without using a leukemia model, but to our surprise. We were also able to detect many other cancers, including detecting colorectal cancer in the blood test with an accuracy approaching that.
Felicia: The current fecal immune a chemical tests tests.
Andrew Retter: Subsequent to our initial poster, Dr. Jacob Micallef and his team have presented at a number of cancer certificate conferences, sharing initial data and developing all important key opinion leaders and potential centers of excellence networks. The team have continued to identify other potential biomarkers and the associated PCR tests, especially in solid cancers, to conduct initial clinical studies in larger, more diverse patient cohorts. From a publication perspective, again, we are making solid progress. Jake and the team are working very hard to complete their first manuscript and plan to submit this breakthrough method for peer review by the end of June.
Felicia: Subsequent to our initial poster go to Jake Micallef team presented a number of Kansas conferences sharing initial data and developing all important key opinion leader a potential sense of excellence that work. The team have continued to identify other potential biomarkers and the associated PCR tests, especially.
Jacob Vincent Micallef: Solid cancers to conduct initial clinical studies in larger more diverse patient care.
J code: From a publication perspective, again, we're making solid progress J code. The team are working very hard to complete their first manuscript and plan to.
Jacob Vincent Micallef: Submit this breakthrough method appear to be by the end of June.
Andrew Retter: This will be an incredibly important paper for Volition to add to our dataroom and support our ongoing commercial discussions. It's surprising to say ESMO 2024 is just around the corner. And to that end, with our sensors and vectors, we have submitted several abstracts for consideration. I'm delighted to say these abstracts are not only CAPTCHA PCR related but also include some significant and very promising new data related to the use of our new Q technology for lung cancer.
Speaker Change: This will be an incredibly important paper mission to ought to have data that supports our ongoing commercial discussions.
SMA: Its surprising to say SMA 'twenty 'twenty four is just around the corner.
Speaker Change: And so how sensitive that cause catheter submitted several abstracts that consideration.
Speaker Change: I'd like to say these abstracts are not only caps PCR related could also include some significant and very promising new data related to <unk>, a new key technology for lung cancer.
Andrew Retter: Definitely something to keep an eye out for in the third quarter of this year. I will conclude by saying that, year to date, we have added supporting materials to our data rooms for NUQ-NEX, CAPTURE-PCR, and NUQ-CANCER. Whilst not all of this data is published yet, we are able to share it in commercial discussions under non-disclosure agreements. With that, I'll hand you over to Gael. Thank you very much for listening, and thank you, Gael.
Speaker Change: Definitely something to keep an eye out for the third quarter of this year.
Speaker Change: I will conclude by saying that year to date, we are at supporting materials to our patrons for Nietzsche next capture PCR kidney cancer.
Speaker Change: While it's not all of this data is published yet we are able to share it in commercial discussions under nondisclosure agreements with that.
Kyle: Kyle Thank you very much for listening and thank you Diana.
Gael Forterre: Thank you very much, Andy, and good morning, everyone. Before I discuss the data rooms and our ongoing commercial discussions, I would like to reflect on our progress so far in licensing and commercializing our technology. In relation to the NUQ VET test, we have received $23 million so far, $10 million upon signing the exclusive agreement for the in-house diagnostic test with HESCA, not NTTAC, which is part of the Mars Vector Group. We then subsequently received $13 million upon the achievement of the milestones, up to December 2023.
Diana Smith: Thank you very much Andy and good morning, everyone before I discuss the data rooms, and our ongoing commercial discussion I would like to reflect on our progress so far licensing and commercializing our technology.
Speaker Change: In relation to the <unk> vet tests, we have received $23 million, so far $10 million upon signing the exclusive agreement for the in house diagnostic assessments as Scott No Amtech, which is part of the Mars Petcare.
Speaker Change: We then subsequently received $13 million upon the achievement of two milestones in December 2023.
Gael Forterre: On an ongoing basis, under this agreement, we will also receive payments for the supply of the key components for the new Q Vet cancer test on the LMNTi Plus in-hospital platform. We have also executed a number of non-exclusive reference lab supply agreements for this test with global and regional veterinary diagnostic companies. This includes IDEX Laboratories, and most recently, Fujifilm's X-System.
Speaker Change: On an ongoing basis and there are disagreements we will also receive payments for the supply of the key components for the <unk> based cancer tests on the elemental plus in hospital platform.
Speaker Change: So if you look at the number of non exclusive reference lab supply agreements for this test with global and regional literally need that the steel companies.
Fuji film: This includes IDEXX laboratories, and most recently Fuji film that systems.
Gael Forterre: It is safe to say that we have made significant progress in making our tests accessible to veterinarians in a number of major markets, in the US, Japan, and many European countries, not only for the reference lab network but also now available in hospitals at the point of care to give results to the veterinarian in less than 10 minutes. These countries are home to around 150 million pet dogs, so they represent a significant market opportunity.
Fuji film: Is it safe to say that we have made significant progress in making our tests accessible within our hands in a number of major markets in the U S.
Fuji film: <unk>, Japan, and many European countries not only for the reference lab networks, but also no available in hospital at the point of care.
Speaker Change: Results through the veterinarian and less than 10 minutes.
Speaker Change: These countries are home to around 150 million pet dogs. So there represents a significant market opportunity.
Gael Forterre: As Tom has mentioned on previous calls, cancer screening in the veterinary market is a new concept, and certainly, while there is significant interest, it is taking time to properly launch, educate, convert, and scale. Through the recent launches by Entech and Fuji, not only have we seen significant engagement from their teams and the support of several KOLs, but notably, they are both offering the tests at a very competitive list price of around $35 to $40 for the veterinarian, which is in line with a desire to keep the tests as low cost and, therefore, as accessible as possible.
Tom: As Tom has mentioned on previous calls cancer screening in the veterinary market is a new concept and certainly while there is significant interest. It is taking time to properly launch educates births and scale.
Tom Smith: Through the recent launches of bi and touch and Fuji not only have we seen significant engagement from their teams and the support of several kols, but notably there are both offer you that as a very competitive list price of around 35 to $40 to the veterinarian.
Tom Smith: Which is in line with our desire to keep that as low costs and therefore as accessible as possible.
Gael Forterre: We look forward to providing a more detailed update regarding this product line on the next call, but in the interest of time today, I would simply want to highlight the experience we have accumulated as a business that we might leverage as we move to commercializing some of our other technologies, such as, but not limited to, new QNets and captured VCRs. As Andy discussed, we have been busy preparing our data rooms to support ongoing discussions and negotiations with interested parties.
Tom: Look forward to providing a more detailed updates regarding its pregnant line on the next call, but the interest of time today I will simply want to highlight the experience we have accumulated as a business.
Speaker Change #102: And we might leverage as we move through commercializing some of other technologies, such as but not limited to future nuts and capture PCR.
Andy: As Andy discussed we have been busy preparing the data rooms to supports ongoing discussion and negotiations with interested parties.
Gael Forterre: The nature of this potential licensing and or supply agreement is both broad and complex. As you can imagine, there are a range of options we're discussing, from exclusive, non-exclusive, global versus regional, specific clinical indication, or even the components part.
Andy: The nature of this potential licensing and our supply agreements is both broad and complex.
Andy: As you can imagine there are a range of options, we're discussing from exclusive nonexclusive global versus regional specific clinical indication or even the coupons funds.
Gael Forterre: We have had an incredible amount of interest in our technology so far and are making strong progress on a number of fronts. Key to some of the discussion is the data that Andy alluded to, much of which we expect by the end of the month, as well as some important publications following soon after. The continued development of the Key Opinion Leader Network to champion the technology is also very important.
Speaker Change #106: We have had an incredible amount of interest in our technology, so far and are making strong progress on a number of phones.
Andy: Some of the discussion is the leader that Andy alluded too much of which we expect by the end of the month as well as some important publications following semester.
Kyrie: The continued development of the key opinion leader network to champion of Technology is also very important and we look forward to hosting our second such as Kyrie workshop in the third quarter.
Gael Forterre: And we look forward to hosting our second Sepsis KOL workshop in the third quarter and our first CAPTURE-PCR workshop in the coming months. We're on a very positive trajectory as we work to push our technology up the value curve in order to maximize the monetization of our IP through upfront medicine payments and ongoing licensing revenue. In the interest of time, I will pass to Cameron in a moment, but I just wanted to highlight that we also have a number of other programs that are generating commercial interest. And with the goal to accelerate our go-to markets, we might scale them early, which may mean reduced upfront, but also reduced the expenses, and Forrest Accelerate Revenue.
Unknown Executive: First capture PCR workshop in the coming months.
Unknown Executive: We're on a very positive trajectory as we work to push our technology.
Speaker Change: The value curve in order to maximize the monetization of our IP through Upfronts Madison payments and ongoing licensing revenue in.
Speaker Change #110: In the interest of time I will pass to come on in the months, but I just wanted to highlight that we also have a number of other programs are generating commercial interests.
I: And with the goal to accelerate our go to market, we might lessen them earnings, which may mean reduce upfronts. We've also reduced the expenses.
Unknown Executive: And for Us accelerates revenues.
Gael Forterre: I look forward to providing further updates later in the year. And with that, I will now pass on to Cameron for a summary. Cameron. Thanks, Gael. And thanks, too, to Andy and Terig for their comprehensive reports.
Speaker Change: I look forward to providing further updates later in the year and with that I will now pass onto camera on sports Center.
Cameron Reynolds: Thanks Gael, and thanks too to Andy and Terig for their comprehensive reports. In drawing to a close, before I highlight some key points, I would first like to take a moment to acknowledge the tireless dedication, hard work, and encouragement of our retiring Executive Chairman, Dr. Martin Falks. Dill has been with us since the company's very inception, 14 years ago, but having recently celebrated his 80th birthday, will now continue to support us as a long-term shareholder and mentor. Thank you, Dill, for your counsel, and thanks also to the outgoing board member, Ed Butcher, for his many years of service.
Speaker Change: Aaron.
Aaron: Thanks, Gail and thanks to Andy and Terry will be comprehensive reports Andrew.
Aaron: And drawing to a close before I highlight some key points.
Aaron: Our third partners.
Aaron: We acknowledge the tireless dedication.
Speaker Change: At work and encouragement of our retiring executive Chairman Doctor Mountain Bulks.
Bill: Bill has been with us since the companies are very inception, 14 years ago, but having recently celebrated an atheist birthday will now continue to support as a longtime shareholder and mentor.
Joe: Thank you Joe for your counsel and Thanks also to the outgoing Board member Edwards.
Edwards: For his many years of service.
Cameron Reynolds: We are active in our search for a new chairperson, and indeed, a new director, as we seek to further strengthen the commercial acumen of our board. Our focus continues to be on getting each pillar to support itself, either through product revenues, milestone payments, outlicensing, or other non-dilutive funding in the coming year, as well as on the company-wide cost reduction measures of a further $10 million outlined by Terig earlier This is to ensure as little dilution as possible towards being cash flow neutral as early as possible and then drive on to profitability.
Edwards: We are active in our search for a new chair and indeed direct us as we seek to further strengthen the commercial acumen of our board.
Joe Smith: Our focus continues to be on getting each pillar to support itself either through product revenues milestone payments.
Speaker Change #107: Licensing or other non dilutive funding in the coming year.
Edwards: As well as on the companywide cost reduction measures of a further 10 million outlined by Terry earlier.
Unknown Executive: This is to ensure as little dilution as possible towards being cash flow neutral as early as possible and then drive onto profitability.
Cameron Reynolds: We expect new QVET revenue to increase in the second half of this year now that Antec and Fuji have launched the product and as existing partners expand into new territories. We're also focusing on the feline product development to secure the final milestone payment of $5 million from PestJet. We are also very actively targeting a range of government agencies and are currently going through the process to secure further non-dilutive and or government project funding in the range of $25 million in the US and a further $18 million in Europe.
Unknown Executive: We expect Nishu vet revenue to increase in the second half of this year now that amtech and Fuji have launched the products.
Edwards: And as existing partners expand into new territories.
Nishu: We're also focusing on the behind product development to secure the final milestone payment of $5 million from Heska amtech.
Nishu: We are also very actively targeting a range of government agencies and currently going through the process.
Nishu: If you have further non dilutive and or government project funding in the range of $25 million in the U S and a further $18 million in Europe.
Cameron Reynolds: Lastly, as discussed by Gael, there has been a lot of external interest in our new Q-Capture PCR and UQ NIST technologies. We have made strong progress through the first half of 2024 in getting the data required. And our strategy is to monetize our IP through licensing agreements as we did invest. We expect a very large amount of data to be completed by the end of next month in the two key areas of MUQ-Net and CAPTCHA-PCR.
Speaker Change #109: Lastly, as discussed by Gail there hasn't been a lot of external interest you captured PCR and.
Speaker Change #109: And unit technologies.
Gail Smith: We have made strong progress through the first half of 'twenty 'twenty, four and getting the data required and our strategy is to monetize our IP through licensing agreements as we did invest.
Gail: We expect a very large amount of data to be completed by the end of next month in the two key areas of meat units and captured PCR.
Cameron Reynolds: If successful, we believe this strategy could provide us with ongoing royalties and very meaningful milestone payments within the next 12 months. In drawing this earnings call to a close, I would like to thank you all for joining the call today. We very much appreciate it, given how much there is to digest across all our pillars. I'm now happy to answer questions. Operator.
Speaker Change #117: If successful we believe this strategy could provide us with ongoing royalties and very meaningful milestone payments within the next 12 months.
Gail: And during this earnings call to a close I would like to thank you all for joining the call today, we very much appreciate it given how much there is to digest across all our pillars.
Gail: I'm now happy to answer your questions.
Gail: Operator.
Gail: Yeah.
Operator: Thank you. Ladies and gentlemen, we will now be conducting a question and answer session. If you would like to ask a question, please press the star key followed by the number one on your touchtone phone. A confirmation tone will indicate that Petulani is in the Christian queue. If you would like to withdraw your question, please press the star key, followed by the number 2. If you are using speaking equipment, please lift the handset before making your selection. Our first question comes from Bruce Jackson of Benchmark Company. Please go ahead. Hi, good morning. A very thorough job as usual, everybody.
Gail: Yeah.
Operator: Thank you ladies sand changed so many people will now be conducting a question and answer session.
Bruce David Jackson: Yeah, actually, there's been a lot going on both in Taiwan, as you know, where it was primarily a test in conjunction with low-dose CT scanning, and results have been very good there, and that will be published soon with the aim of putting that as part of the Taiwanese screening program, and we'll be updating a lot more on that later. And also the lung cancer work, and this is all with our original NuQ platform, not even our new CapturePCR, so it's kind of, it's funny; everything's kind of working at the same time.
Operator: We can I can answer Christian Please press the star key policy number one how do you touched on fan.
Operator: A confirmation tone will indicate that you're not seeing the question queue.
Operator: If you talk to with Troy Christian P space, the stocky public Park number one number two.
Operator: If you are using speaker equipment.
Troy Christian: Lift the handset before making a selection.
Operator: Our first question comes from Bruce Jackson of Benchmark Company. Please go ahead.
Bruce David Jackson: Hi, good morning, very thorough job as usual.
Bruce David Jackson: Everybody.
Bruce David Jackson: One question I had was about you touched on this as the lung cancer study is this the one that's being done in France, mainly on them.
Speaker Change #114: Maybe you could give us a few more details about that.
Speaker Change #115: Yeah actually there's been a lot going on both in Taiwan as you know where it was probably.
Speaker Change #189: Primarily a test in conjunction with low dose <unk> scanning and results have been very good there and that's been published soon with the aim of putting that as part of the Taiwanese screening program and we'll be updating them up more on that later and also the lung cancer work and this is all without original nuclear platform not even out and you kept your P. C. Also it's kind of it.
Speaker Change #115: Everything is kind of working at the same time.
Bruce David Jackson: After a lot of years of only having one or two products, and that was a mixture of deciding who goes to palliative care and who goes to treatment, and that's also worked very well, and they're also keen to use that clinically as well. So obviously with all the work that's going on now with the sepsis side, which Andy, as Andy said, is going incredibly well, and all the other side effects from all the other things, the focus on the product side has not been there, but it's something which is working very well.
Speaker Change #115: A lot of use of and you have one or two products, but and.
Speaker Change #124: It's a mixture of.
Speaker Change #123: Deciding who goes to palliative care and so it goes to treatment and that has also worked very well and they also came to us that clinically as well.
Speaker Change #118: Obviously with all the work that's going on now with the.
Andy: The steps aside which I D. As Andy said is doing incredibly well and all aside from all the other things.
Andy: The focus on the product side has not been there, but it's something which is working very well as I said it seems to be everything seems to be working at the same time. So we will put some focus on that and starting with the publications and.
Bruce David Jackson: As I said, everything seems to be working at the same time. So we'll put some focus on that and start with the publications, and both of them could be used clinically in those countries in France sometime later this year, early next year, and then Taiwan once it's added to the national screening program. So both of those are very exciting developments. Anyone from our team want to say anything else about lung cancer? Nope, that covered it. Okay, Bruce, did that cover your question? Yes, yes it did.
Andy: Both of them could be used clinically in those countries in Frac sometime later this year early next year and then Taiwan once it's added to the National screening program. So both of those are very cloudy developments.
Speaker Change #115: Anyone on any promotes anymore to say anything else about the lung cancer.
Bruce David Jackson: That's the covenant, Okay now Bruce Bruce.
Bruce David Jackson: Bruce back half of your question, Yes, yes, that's fabulous thank you very much.
Speaker Change #185: Thanks have a great day.
Timothy M. Moore: Our next question comes from Tim Moore of EF Hutton. Please go ahead.
Timothy M. Moore: Our next question comes from Tim <unk>.
Speaker Change #115: It's Hudson. Please go ahead.
Timothy M. Moore: Thanks and congratulations on the timing of the launches over the last six weeks. Like you said, so many things are coming together at once, you know, pretty much since late March. It's really good to see. I know investors have been hanging in there. You're executing very well. And I was wondering, you know, maybe if you wouldn't mind giving some color and feedback.
Tim Hudson: Thanks, and congratulations on the timing of the launches over the last six weeks I mean like.
Tim Hudson: Like you said so many things are coming together at once you know pretty much since late March.
Tim Hudson: That's really good to see I know investors have been hanging in there.
Tim Hudson: You're executing very well and I was wondering maybe if you don't mind, giving some color on feedback you know I know.
Cameron Reynolds: You know, I know it's super early, but... And what are your thoughts on kind of the feedback and traction, you know, at the veterinarians? I know the rollout just pretty much started in the U.S., but, you know, vets are probably educating dog owners about it at their annual checkup for the canine test. And is there anything you can add to that, any incidental anecdotes?
Tim Hudson: It's super early but just what are your thoughts on kind of the feedback and traction.
Investor: At the veterinarians I know their rollout just pretty much started in the U S. But.
Speaker Change #187: That's sort of probably educating dog owners about it at the annual checkup, the canine test and just anything you can add on that.
Tim Hudson: Incidental.
Cameron Reynolds: Yeah, there's a lot going on here. So I think, obviously, our existing partners, there's been some time for them to ramp up, but I think that's understandable looking at it so far, as there has never been an ecology test in the veterinary space for screening, certainly not something that's routine and easy to run like ours. So there's a vet by vet education process and also, you know, how to use the product.
Tim Hudson: And it does yes it.
Speaker Change #120: There's a lot of going on there so I think obviously.
Speaker Change #120: The partners and there's been some time for them to ramp up but I think that's understandable I looking at it. So far is there has never been oncology tests in the bedroom spikes for screening certainly not something that is routine and easy to run like ours. So there's a a bit by bit education process and also we know how to use the products. There was also I think a little bit of <unk>.
Cameron Reynolds: There was also, I think, a little bit of market confusion. There was another test on the market from our friends at PetDx, and that's actually cleared now. They are no longer selling their test. It was something at a very high price point, so it obviously struggled in the market; it's no longer around.
Speaker Change #120: Confusion there was another test on the market.
Speaker Change #120: From our friends at Pet Dx and that's actually a clear now they are no longer selling their tests.
Speaker Change #120: It was something.
Pet Dx: At a very high price points. So I mean, obviously it struggled in the market is no longer around so I think we have a clear path I think one of the very exciting things.
Cameron Reynolds: So I think we have a clear path. I think one of the very exciting things about the greater access that we are now developing through the in-hospital test with Antec and with Fuji in Japan, which has only just started, so we should see that coming through later in the year, has been the great feedback from key opinion leaders. If you looked at the releases from both companies, some of the best vets in the planet were extremely excited about our product and going forward. Also, of course, Antec did a large validation study before it put it onto the machine, and it's got the machine working very, very well.
Pet Dx: With the greater access that we are now developing.
Pet Dx: Through the in hospital test with Amtech and with Fuji in Japan, which has only just started so we shouldnt see that coming through later in the year has been the great feedback from key opinion leaders.
Pet Dx: If you looked at the releases from both the companies.
Pet Dx: The best bits in the planet, we're extremely excited about our product and going forward also of course and take large validation study.
Speaker Change #125: Before it put it onto the machine and it's got the machine working very very well so I think.
Cameron Reynolds: So I think from the VET perspective, it's a building process which is going on in the US, and I think the extra access from now, so it's the two biggest VET companies on the planet, and also the biggest in Japan, and also in Europe, is very encouraging. And the feedback we're getting from the VETs and through those companies, not just from our VETs, but also from theirs, has been excellent. And we also got great feedback, most recently from Japan, from their first use of the product. But this is a development process. There is a lot of work ahead.
Speaker Change #125: From the diverse perspectives, it's a building process, which is going on in the U S.
Speaker Change #126: And I think the extra.
Japan: Access from now since the two biggest companies on the planet and also had the biggest in Japan and also through Europe.
Japan: And encouraging and the feedback we're getting from the bets and through those companies not just Albert's, but also this has been excellent and we also got great feedback.
Japan: Recently from Japan from that first use of the product, but this is a development process. There was a lot of work are there going bit by bit by bit to get them to add it to their normal prices. So it is something which is will take some time to get through but we have a fantastic product, it's very low cost the new people in.
Cameron Reynolds: They are going VET by VET to get them to add it to their normal process. So it is something which will take some time to get through, but we have a fantastic product. It's very low cost. The new access through Antec and through Fuji is both less than $40 to the VET, so we expect a lot of good developments throughout the end of this year and next year. Great, Cameron. And like you mentioned earlier in your remarks, I mean, that price. Love 40 was definitely very impressive, and I'm glad there's buy-in on that, you know, for initial traction and awareness.
Japan: The new access through <unk> and through T J boats less than $40 to the vet.
Japan: So we expect a lot of good developments throughout the end of this year and next year.
Cameron Reynolds: Cameron and like you mentioned earlier in your remarks, I mean that price point below 40 was definitely very impressive and I'm glad there is buying on that just for initial traction on awareness.
Timothy M. Moore: Seems like a no-brainer for dog owners. The only other quick question I had was on human sepsis. You know, you're working hard on that.
Japan: It seems like a no brainer for a dog owners.
Speaker Change #186: The only other quick question I had was on human sepsis.
Japan: You know you're working hard on that you mentioned you know the patients in just the studies.
Timothy M. Moore: You mentioned the patients and just the studies. Can you just give us a little bit more of a timeframe around that? You know, as you look out over the next year, year and a half, can you kind of just maybe walk us through the timeline and your plan for that? Because it's a huge opportunity and everyone thinks, I think, you know, it's just pet testing, but, you know, sepsis could be a huge catalyst. I would love to hear more about this.
Japan: Can you just give us a little bit more of a timeframe around that you know as you look out over the next year year and a half.
Speaker Change #128: Just maybe walk us through the timeline and your plan on that because it's a huge opportunity and.
Speaker Change #128: Everyone thinks.
Speaker Change #190: Think it's pet testing, but you know the sepsis could be a huge catalyst so love to hear more about the timeline.
Cameron Reynolds: I think sepsis is obviously going to be a massive deal because, as Andy very well pointed out, this is potentially a game changer in the diagnosis and treatment of sepsis. And our test, as we discussed, is always going to be low cost and easy to use on a range of platforms.
Speaker Change #128: I think the sepsis is obviously going to be a massive.
Speaker Change #193: It did deal because as Andy variable pointed out this is an absolute potentially a game changer in the.
Speaker Change #128: Diagnosis and treatment of sepsis and other.
Andy Variable: First as we discussed is always going to be a low cost easy to use on a range of platforms. So to get the Oh this is bigger than volition.
Cameron Reynolds: So to get there, this is bigger than Volition. It's potentially such a blockbuster product; we don't presume that we could launch it internationally ourselves. So we have a very similar model, which has worked so well in Vetspace, to license it out. To license it out, we need large amounts of data, which Andy went through very well on the call. We're expecting a lot of that in the next month or two to fill out the data room.
Andy Variable: Potentially such a blockbuster product, we don't presume that we could launch that internationally ourselves.
Andy Variable: So we have a very similar model, which is works are willing to bet space to license it out to license it out we need.
Speaker Change #129: Large data, which.
Andy: Andy what went through very well on the call we're expecting a lot of that in the next month or two to fill up the data room, we had very strong interest from a range of large companies and I think the clincher for that it's getting large amounts of data and as Andy said, it's coming up with at least six potential endpoints, how do we correlate with the current sepsis III.
Cameron Reynolds: We have very strong interest from a range of large companies. And I think the clincher for that is getting large amounts of data. And as Andy said, it's coming up with at least six potential endpoints. How do we correlate with the current sepsis 3 definition, disease severity, intensive care mortality, 28-day mortality, duration of organ support, and length of stay?
Speaker Change #194: Finishing dizzy.
Andy: Disease severity intensive care mortality 28 day mortality duration of Vulcan support and length of stay so it's a huge amount of data and the trials, which we're running some of them have hundreds of data points per patient.
Cameron Reynolds: So it's a huge amount of data, and the trials which we're running, some of them have hundreds of data points per patient. So they're very, very large studies with fantastic institutions.
Speaker Change #128: So.
Speaker Change #128: They're very very large studies with fantastic institutions.
Cameron Reynolds: Two of the big ones that run the samples are ready, and we're analyzing them now, as Andy pointed out. So that's something that is coming along quite quickly. And, of course, we're keen to get the information out, so potential partners can license the product, and we're also aiming to publish where we can in MedArchive because sometimes, obviously, a large publication can take several months or a few quarters to actually get published.
Andy: Two of the big ones that run the samples already analyzing them now as Andy pointed out so that's something which is coming up quite quickly and as of course, we're keen to get the information out so for us the potential partners to license the product and we're also aiming to publish where we can in mid archive, because sometimes that obviously a lot.
Speaker Change #128: Publication can take.
Speaker Change #128: For months or a few quarters to actually get published what caned, where we can to publish that early on mid archive. So.
Cameron Reynolds: We're keen where we can to publish that early on MedArchive. So, and of course, there's also our own prospective study, which we're now calling CLUED, which was called the DOCRO study, and that should also be reading out in the next two months as well. So a very large amount of data, which has very exciting endpoints, and we're very encouraged with everything we've seen so far, and I think there's a very good chance they'll become the key points for the data room.
Speaker Change #128: Of course, it's always hard prospective study, which ran alcohol include which was called the <unk> study.
Speaker Change #128: We should also be reading out in the next two months as well.
Speaker Change #128: So a very large amount of data, which with a very.
Speaker Change #128: Exciting endpoints and we're very encouraged with everything we've seen so far and I think this is a very good chance that will become the key points for the data room. So we can license them.
Cameron Reynolds: So we can license them as quickly as possible, and the target is to license the sepsis side within the next 12 months, and hopefully the cancer PCR this year. So it's all in the mail now, I think.
Speaker Change: As quickly as possible and the target is to license.
Speaker Change #128: Yeah.
Speaker Change #128: The sepsis side within the next 12 months and hopefully the cancer PCR. This year. So it's all in the mile now I think.
Timothy M. Moore: Great. Well, thanks so much. I'm looking forward to meeting Gael tomorrow at our annual EF Hutton conference. Thanks.
Speaker Change #202: Great well, thanks, so much and I'm looking forward to meeting tomorrow at our annual partner Conference.
Gael Forterre: Yes, I'll be looking forward to the two. Thanks for your time. Our next question comes from Ilya Zupkov of Freedom Broker. Please go ahead.
Speaker Change #192: Yes, I think looking forward it to say thank you for your time.
Speaker Change #128: Our next question comes from in that Zip codes.
Speaker Change #131: Okay. Please go ahead.
Speaker Change #131: Yeah.
Ilya Zupkov: All right, good morning, and thank you for taking the time.
Speaker Change #188: Hey, good morning, and thank you for taking my question I have a short one on the catcher Pcr.
Speaker Change #191: C capture PCR test as a potential product for the Biopharma R&D market.
Speaker Change #198: On point of care and hospital screening could you elaborate on this.
Cameron Reynolds: Yes, I think it's a big deal, it's a whole new technology, the first group ever to concentrate the, as Andy said, chromatin from the cancer. Also, the smaller fragments are incredibly important.
Speaker Change #148: Yes, I think it's it's a big it's a whole new technology, the first group ever to concentrate as Andy said the climates and.
Speaker Change #203: From the cats, Oh, sorry, the smaller fragments are incredibly important and as our chief scientist points out it's a whole new array of Biomarkers because no one's ever looked at these fragments and concentrated them before so there's a lot of potential uses.
Cameron Reynolds: And as our chief scientist points out, it's a whole new array of biomarkers because no one's ever looked at these fragments and concentrated them before. So there are a lot of potential uses. The biggest market of all is screening, of course, for cancer.
Andy: Biggest market of all is screening of course for cancer, but also there are tremendous amounts abuses in a wide range of areas. If you look at our new <unk> platform, which is currently obviously what is used in the vet space in the lung cancer trials, which we talked about just earlier.
Cameron Reynolds: But also, there are tremendous amounts of uses in a wide range of areas. If you look at our NUQ platform, which is currently obviously what is used in the vet space and the lung cancer trials, which we talked about just earlier, there's a lot of work being done in our DISCOVER program. We have over a dozen organizations working with us using our platform and some of these drugs for efficacy and a whole lot of other ways, as you said.
Speaker Change #148: There's a lot of work being done in our discover program, we have ever dozen organizations working with us using our platform and some of those drug efficacy and a whole lot of as you said.
Speaker Change #131: Otherwise abusing it.
Cameron Reynolds: I certainly expect once we have the paper and once we're in the process of licensing, there's a very wide range of uses they could use that platform for, as we have, as I've had on the NUQ platform through NUQ DISCOVER. I don't think it's possible to overstate how important what we've done is in the human space and the animal space. We've got the only platform which can, as I said, do all the things we've said. And so it should have a very important role in a very wide range of other uses beyond screening.
Speaker Change #131: Suddenly you expect them once we have the paper and once we're in the process of licensing.
Speaker Change #131: A very wide range of uses they could use that platform for as we had hoped it would have had on the new platform to discover.
Speaker Change #131: I don't think it's it's possible to overstate how important all.
Speaker Change #199: Alright, what we've done is in the human space and the animal space. We've got the only platform, which can as I said to all the things you said so it should have a very important role and a very wide range of other uses beyond screening yes.
Speaker Change #204: Great. Thank you that's it from me for now.
Speaker Change #195: Thank you take care.
Steven Ralston: Our next question comes from Steven Ralston of Zax. Please go ahead.
Cameron Reynolds: Our next question comes from Steven Rales student Oh, sorry.
Speaker Change #196: Please go ahead.
Speaker Change #197: Good morning.
Steven Ralston: Thank you for giving some thought to the rollout of new QVET, especially here in the United States, Europe, and Japan. It's imminent or ongoing right now. Um, it seems like a certain percentage of the test will come back positive, and those, and those obvious will those canines will require treatment. And that brings you into the monitoring aspect. Now, I know there was a paper by Dr. Wilson Robles about monitoring about a year ago.
Speaker Change #200: Good morning.
Steven Rales: Some thought to the rollout of <unk>.
Speaker Change #205: A new Q vet.
Steven Rales: Especially here in Europe, and the United States, Europe and Japan.
Steven Ralston: Japan, it's imminent or ongoing right now.
Speaker Change #131:
Speaker Change #131: Seems like a certain percentage.
Speaker Change #132: Of all the tests will come back positive.
Speaker Change #132: And those and those obviously will those canines with required a treatment.
Speaker Change #132: And that's bringing people into the monitoring aspect.
Speaker Change #201: Now I know, yes. It was her back by Doctor Bowls, and robots about monitoring about a year ago.
Steven Ralston: What is the procedure? Would the vets have to use that off-label to monitor, and it seems like those tests would be rather sticky in that they would be regular over very relatively short time frames in order to monitor the progress of the treatment?
Speaker Change #132: What is the procedure, where they would have to use that off label to monitor and it seems like those tests would be rather sticky and at all there.
Speaker Change #137: It would be regular over a very relatively short time frames in order to monitor the progress of the treatment could you comment on that.
Cameron Reynolds: Yes, absolutely. I'll comment slightly, then ask Gael to comment on where we are on the monitoring side.
Speaker Change #142: Yes, absolutely I'll I'll comment firstly, they're not scaled to comment on where we are on the monitoring side, but yes.
Cameron Reynolds: But yes, so it would be the same test, and whether it's off-label or on-label depends on, obviously, if there's a publication showing it. And it would mean something which you'd probably do at least once or twice every month or two, one when the animal's in relapse. It's something which could be 10 or 20 tests per animal instead of just the ones for screening. So it's something which has a huge potential market.
Gael Forterre: So it would be the same test them and whether it's off label around labor. It depends on obviously, if there was a publication showing it and it would been it's something which you'd probably do at least once or twice.
Speaker Change #158: Every month or two one.
Speaker Change #142: When when the animals and write ups so.
Cameron Reynolds: It's something which could be 10 or 20 tests per animal instead of just the ones.
Cameron Reynolds: If there are six million dogs in the US that get cancer every year, if you do five or ten tests per dog on the monitoring side, that's a huge total addressable market and something which obviously would be a huge market. Someone else on the call wants to comment on exactly where we are with the monitoring? Yeah, I'm happy, Cameron.
Cameron Reynolds: For screening so.
Speaker Change #142: It's something which is a huge potential market. If there's 6 million dogs in the U S to get cancer every year, if you do five or 10 tests for adult.
Speaker Change #142: On the monitoring side, that's a huge total addressable market and something which obviously would be a huge market.
Speaker Change #206: Someone else from Nicole common Wanna comment exactly where we're at with the monitoring.
Gael Forterre: Yes, I'm happy, Cameron, to add a little bit of color. So, yes, we are working on the monitoring claim, if you will. What we wanted to avoid was, as we're launching screening, adding another indication at the same time. So our key focus has been on screening initially, and we have started discussions with our partners now to add the additional use. So it won't be, as you mentioned, off-label. It will be, you know, something that we support. We just want to make sure, as we're educating the market, we don't create confusion. So we're sticking to screening for now, and later this year or early next, we'll launch monitoring.
Speaker Change #136: Yeah, I'm, a I'm happy come onto a little bit of color. So yes. We are we're working on the monitoring a claim if you will what we wanted to avoid his eyes, we're launching screening to add another indication at the same time. So our key focus has been on the screening initially and we started to discuss.
Speaker Change #147: And with our partners are now to add.
Speaker Change #151: The additional use so it won't be as you you mentioned the off label it will be something.
Speaker Change #150: Something that we back we just want to make sure as we're educating the market. We don't create confusion. So we are we're sticking through screening for now and.
Gael Forterre: Later this year early next week, we launched the monitoring.
Speaker Change #150: That's exactly the question Stephen.
Steven Ralston: Questions, David? Thank you. Yes, it does. Thank you. If we could just switch over to...
Gael Forterre: Yes, it does.
Speaker Change #152: If we could just switch over to a sepsis.
Steven Ralston: It seems like you have a slew of papers coming forward with all this data coming through, but it seems like the tip of the spear of this expected series of sepsis studies is Dr. Retter's clinical study that he did mention has been submitted. Could you get a little more granular about that, because that seems like it'll be the first paper data point that we'll hear about.
Speaker Change #146: It seems like you have a slew of papers coming forward with all this data coming through but it seems like the tip of the spear of the unexpected series of sepsis studies is doctor renders the clinical study that he did mention.
Steven Ralston: <unk> has been submitted.
Speaker Change #132:
Speaker Change #141: Could you give a little more granular about that because that seems like it'll be the first.
Speaker Change #141: On paper.
Speaker Change #139: We'll hear about.
Andrew Retter: Andy, do you want to discuss what data points are most likely to end up in the timing section?
Speaker Change #135: And are you doing to discuss what are the data points I'm, a most likely into the timing from.
Andrew Retter: Thank you; I can answer that. I think the two retrospective studies will be published first. We have already seen data from both of those. We will write them up and submit them for publication, and hopefully, that data will be in the public sphere by the end of this year, by the end of Q4. The study at St Thomas' will finish recruiting in May or June 2025. So I wouldn't expect... We won't publish data from that for a little while afterwards, but we've got five studies ongoing at the moment, and two or three should report out before then.
Speaker Change #135: Yeah.
Speaker Change #149: I cannot stop and I think that T retrospective studies well publicized.
Speaker Change #135: <unk>.
Speaker Change #135: I've seen data presented from face to face.
Speaker Change #157: Write them up and submit an IND application neitzke that'll be.
Speaker Change #135: That data will be in the public stand by at the end of this year by end of Q4. The study at St. Thomas' will finish recruiting.
Speaker Change #135: And May 18 2025.
Speaker Change #132: Okay.
Speaker Change #132: We went public statements not walled off to it.
Speaker Change #132: We have.
Speaker Change #132: We've got five.
Speaker Change #132: The studies ongoing at the moment.
Speaker Change #134: Let's face it pulls out before then.
Andrew Retter: I hope that answers your question. We do have data that we are allowed to share in our confidential data room as well, understand the data analysis, and then re-analysis as we understand the data better and can provide a richer picture of the results.
Paul: Paul to your question, we do have data that we all have lot to share.
Speaker Change #140: Confidential data room, as well understand that analysis when the analysis is we understand the data better so comparator, which basically results.
Speaker Change #138: Two question.
Speaker Change #143: Yes. It does thank you and Steve and I think it's probably important to say just at this point as well. So we obviously have invested a lot over the last six months eight months to get a lot of data and he's gone through the trials and they'll be ready to data room, starting from next month, hopefully and some very large ones, which are older you're being run and the prospective ones.
Cameron Reynolds: at this point as well, so we obviously have invested a lot over the last six months, eight months, to get a lot of data. Andy's gone through the trials, and they'll be ready in the data room starting from next month, hopefully, and some very large ones which are already being run and the prospective ones, you know, in a month for our own internal use and sometime next year. But a huge amount of data was coming very soon, and that was something very important to us.
Speaker Change #138: A month for our own internal and sometime next year, but a huge amount of data coming very soon and that was something very important to us we wanted to make sure we are.
Cameron Reynolds: We wanted to make sure we had the very large amount of data that we think is needed to get a good licensee interested in licensing it from one of the big diagnostic companies to really launch as quickly as possible. And we backed ourselves to get that done, and we're very close to getting that done now. So I think the team, I'd like to congratulate everyone on the Volition team that worked tremendously hard over the last few quarters to get all the capture data ready, get all the sepsis data ready, and work with the teams in Taiwan and Leon on getting all the lung data ready.
Speaker Change #154: Did the effort to make sure we had the very large amount of data that we think is needed to get a good licensee interested in licensing you're one of the big diagnostic companies to really launch as quickly as possible and we backed with hopes to get that done and we're very close to getting that done now and so I think the team I'd like to congratulate everyone in inhibition team that works a.
Speaker Change #154: We had the last few quarters to get all the capture PCR data ready get all the steps the state already work with the teams in Taiwan, and and Leon on getting all the lung data already and there's a huge avalanche of what's coming now starting in the next few weeks and it will go all the way through the year, so up and I think that will be crucial in.
Cameron Reynolds: And there's a huge avalanche of them coming now, starting in the next few weeks, and it'll go all the way through the year. So, I think that'll be crucial in the very large licensing deals we expect to happen now. Thank you.
Speaker Change #154: The very large licensing deal, which we expect to happen to them.
Steven Ralston: Just one last question on cost cutting. I mentioned that at the last conference call. It was obvious in the fourth quarter that some of the costs had been declining, and I'm just looking at the financial statements now. And it looks like at least 25% of the 10 million goal has been. Unknown Executive, Steven Ralston, Cameron Reynolds, Gael Forterre, Jacob Micallef, Louise Day. When was that implemented? Do you have a sort of guideline of how much you've accomplished in the class?
Speaker Change #155: Thank you and just one last question on the cost cutting I mentioned that at the last conference call. It was obvious in the fourth quarter. There's some costs that had been declining and I'm just looking at the financial statements and now and it looks like at least 25% of the $10 million.
Speaker Change #138: Our goal has been.
Steven Ralston: Achieved but.
Unknown Executive: These are lagging cost cutting and I'm just wondering when these things have been implemented, especially the the executives taking their some of their fees in stock.
Speaker Change #138: When was that implemented and.
Speaker Change #138: You have a sort of a guideline for how much you've accomplished and the cost cutting.
Speaker Change #144: So far.
Speaker Change #161: Derek Georgia.
Speaker Change #144: Yeah.
Terig Hughes: Yeah, sure. So most of the $10 million will come in the balance of the year, or rather the run rate will reduce over the balance of the year. So our intention is to get to a point where, going into next year, we'll have $10 million less in expenditure. [inaudible] We mentioned that back in Q3.
Speaker Change #181: Yes sure.
Speaker Change #145: So most is most of the $10 million.
Derek Georgia: Will come in the balance.
Speaker Change #164: Rather the run rate will reduce over the balance of the year. So our intention.
Derek Georgia: Is to get to a point, where I'm going into next year.
Speaker Change #145: We'll have $10 million less in expenditure.
Speaker Change #145: Expenditure.
Speaker Change #145: From an opex point of view.
Speaker Change #145: But obviously that's going to take time.
Speaker Change #173: To come and we have already made a good start but it's from the second quarter as raws in the first quarter.
Speaker Change #145: Savings that you you might see in the first quarter were actually from.
Speaker Change #145: Previous.
Speaker Change #153: Previously announced round of savings that we made if you recall.
Terig Hughes: We mentioned that back in Q3.
Terig Hughes: So, you should see a continuation of that reduction through the balance of the year. The main savings will start this quarter and then will continue until we're on a run rate which is about $10 million less by the end of the year. Does that answer your question, Steven?
Speaker Change #145: Sure.
Speaker Change #165: So you should see a continuation of that.
Speaker Change #165: The reduction through the balance as of yet.
Speaker Change #165:
Speaker Change #165: The main savings will start this quarter and then will continue until we're on a run rate, which is about $10 million less by the end of it.
Speaker Change #156: Does that answer your question Steve.
Cameron Reynolds: And to be clear, Steven, the run rate for the changes we announced the last lot was $2 million or just a little around that. This is an addition; there's a 10 addition to that. So it's not 10 in total, but this is a new 10 we're doing now. And the reductions in our salaries to switch to equity will start this month and next month and throughout the end of the year or for at least six months.
Steven Rales: And it would be clear Steven the the run rate.
Speaker Change #156: As we announced the last lot of Ah was $2 million or just a little around that debt.
Speaker Change #156: This is in addition, there's 10 in addition to that so it's not 10 entitled but this isn't a new thing we're doing now and the the reductions in I know our salaries too.
Speaker Change #156: Switching to equity.
Speaker Change #162: We'll be starting this month and next month.
Speaker Change #162: And throughout the end of the year or at least six months. So they starting right now and then it'll be a strong process through the end of the year to get to where we need to get to but there's $10 million. In addition to the ones, we announced before just to be clear.
Cameron Reynolds: So they're starting right now and then it'll be a strong process through the end of the year to get to where we need to get to. But this $10 million is in addition to the ones we announced before, just to be clear.
Steven Ralston: Yes, thank you. That's more information than I expected. Thank you very much. Thank you for taking the time.
Speaker Change #180: Yes. Thank you that's more information actually that's it thank you very much.
Speaker Change #168: Thank you for taking it.
Steven Ralston: Excellent. Thanks for your time. Thanks, Steven.
Speaker Change #156: Excellent. Thanks for your time, Thanks, Tim.
Richard Deutsch: Our next question comes from Richard Deutsch of Sutter Securities. Please go ahead.
Speaker Change #156: Our next question comes from Richard Deutsch of Securities. Please go ahead.
Richard Deutsch: Yes. Thank you for taking my call and for doing such important work in what would be two very exciting companies if they were separated. Just a question. You're placing your cancer tests in the veterinary offices and in the laboratory. Are there any other venues, such as these pet grooming franchises, where these tests could be located and generate extra revenue for those businesses?
Richard Deutsch: Yes. Thank you for taking my call and for doing such important work in.
Richard Deutsch: What would be two very exciting companies if they were separate it just a question play.
Richard Deutsch: Placing your your cancer tests in the veterinary offices and in the laboratory or are there any other venues such as a pet.
Richard Deutsch: Pet grooming franchises, where these tests could be located.
Richard Deutsch: Produce extra revenue for those businesses.
Gael Forterre: For now, we are really focusing on the large veterinary reference laboratories and point of care, but we have no plan at this stage to expand beyond. As we scale, that's something we might look into, but not for now.
Speaker Change #163: Okay got that.
Speaker Change #163: Yes.
Speaker Change #166: So for now we are we're really focusing on the large vets reference labs and point of care.
Speaker Change #175: But we are we have no plan at this stage to expand the young.
Speaker Change #175: As we scale that's something we are we might look at you, but not for now.
Cameron Reynolds: And I think that's exactly right. But I'd just like to say what the fantastic thing about our platform is: it can be done on a small machine, like the Antec machine, it can be done in a lab, it can be done on a lateral flow, it can be done on a very large autoanalyzer. So that's the fantastic thing and the variability of our platform, which gives us tremendous strength. And they each have a very important use, as you said, in different areas and different locations.
Speaker Change #169: And I think that's exactly right, but I'd just like to say what the fantastic thing without platform music can be done on a small machine, let Dan take machine that can be done in the lab. It can be done on a lateral flow. It can be done on a very large auto analyzer.
Speaker Change #169: So that's the fantastic thing and the variability of our platform, which gives us tremendous strength and they each have a very important use as you said at different areas in different locations.
Cameron Reynolds: And we have developed it now on the microtiter plates, on the I-10, which is now part of Perkin-Elmer, also on the Antec machine, and we're also working on lateral flow. And so all the large auto-analyzers that big companies have when we do the licensing deals, for example, for sepsis and coagulation, they should be able to adapt to all their machines as well. So it's amazingly adaptable going forward.
Speaker Change #177: And we have developed it now on democratize plates on the I 10, which is now part of Perkin. Elmer also then take machine and also we work on lateral flow.
Speaker Change #169: And so it's and and all the large order we analyze what's the big companies have when we're doing the licensing deals for events for example in sepsis.
Speaker Change #169: Coagulation, they should be able to adapt to all their machines as well so it's amazingly adaptable going forward.
Speaker Change #172: Thank you.
Speaker Change #172: Thank you.
Speaker Change #169: Okay.
Operator: Ladies and gentlemen, we have reached the end of our question and answer session. I will now hand over to Cameron Reynolds for closing remarks.
Speaker Change #170: Ladies and gentlemen, we have reached the end of our question and answer session.
Speaker Change #170: I'll hand over to Cameron Reynolds, Okay, I think female.
Cameron Reynolds: Thank you, everyone, for joining us today. It's obviously a very critical time for us. Now that we have a very wide range of technologies and products, we're commercializing, and it should be a very interesting back end of the year, particularly with the ongoing data rooms and licensing discussions in both the human cancer and sepsis space and, of course, with the deals we have just signed in the veterinary space. So it should be a very, very important and exciting end of the year, and thank you again for your interest in VolitionR
Cameron Reynolds: Thank you everyone for joining us today, it's obviously a very critical time for US now that we have a very wide range of technologies and products with commercializing and it should be a very interesting back end of the year, particularly with the ongoing data rooms and licensing discussions in both the <unk>.
Operator: Thank you. Ladies and gentlemen, that concludes today's event. Thank you for attending, and you may now disconnect your line. Thank you very much.
Speaker Change #178: Human cancer, and sepsis space and of course with the deals we have just signed in the veterinary space. So it should be very very important and exciting into the year and thank you again for your interest in volition.
Speaker Change #170: Right.
Speaker Change #183: Thank you ladies and gentlemen that concludes today's event. Thank you for attending and you may now disconnect your line.
unknown: Thanks very much, Judah. Thank you. Thank you, everyone. Thank you. Um, do we... Thanks for watching!
Speaker Change #182: Thanks, very much to the 10-K.
Brian: Thank you Brian.
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Speaker Change #179: And Keith.
Speaker Change #171: Do we.
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Speaker Change #175: Uh huh.
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Speaker Change #171: Okay.
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Speaker Change #171: [music].
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