Q3 2024 OncoCyte Corp Earnings Call
[music].
Kayla: Thank you for standing by my name is Kayla and I will be your conference operator today.
Kayla: At this time I'd like to welcome everyone to the anchor side third quarter 'twenty 'twenty four earnings conference call.
Kayla: All lines have been placed on mute to prevent any background noise.
Kayla: After the Speakers' remarks, there will be a question and answer session.
Kayla: Do you like to ask a question. During this time simply press star followed by the number one on your telephone keypad.
Kayla: If you'd like to withdraw your question again press the star and one.
Speaker Change: I would now like to turn the call over to Julie Silber Senior managing director of P. C. G Advisory you may begin.
Julie Silber: Thank you Kayla and thank you everyone for joining us for today's conference call to discuss uncle sites third quarter 2024 financial results and recent operating highlights.
Julie Silber: If you have not seen today's shareholder letter. Please visit <unk> Investor Relations page at investors thought Oracle Si dot com to read it.
Julie Silber: Today's prepared remarks build upon the information that was already shared the most robust letter.
Julie Silber: Today's call is uncle fights, President and CEO, Josh Riggs, Chief Science Officer, and CFO Andrea James.
Speaker Change: Before turning the call over to Josh I'd like to go over our Safe Harbor, the company will make projections and forward looking statements regarding future events.
Speaker Change: Any statements that are not historical are forward looking statements. These statements are made pursuant to and within the meaning of the safe Harbor provision of the private Securities Litigation Reform Act of 1995.
Speaker Change: Could you do to review the company's SEC filings, including the company's most recent Form 10-Q, which identifies the risks and uncertainties that may cause future actual results or events to differ materially from those expressed or implied in the forward looking statements.
Speaker Change: Please note that the forward looking statements made during today's call speak only to the date. They are made and Orca site undertakes no obligation to update them to reflect subsequent events or circumstances, except as otherwise required under applicable law.
Speaker Change: Finally, we will conclude today's call with a Q&A session.
Speaker Change: With questions from our analysts as well as written questions that we have received from our investor community and.
Speaker Change: And with that I would now like to turn the call over to you Josh Josh you may begin.
Josh Riggs: Thanks, Julie and welcome everyone and thanks for taking them.
Josh Riggs: The transplant market is changing.
Josh Riggs: And <unk> is a leading force in that change.
Josh Riggs: Transplant centers around the world are realizing that they do not have to accept the limitations of the current molecular testing model.
Josh Riggs: In Q3, we worked with our beta sites to bring up our tests and we're able to celebrate our technology being brought on three continents.
Josh Riggs: We signed him leading transplant centers in our key markets.
Josh Riggs: Built upon our market leadership and clinical data generation.
And took the first major steps in our FBA program.
Josh Riggs: Milestone after milestone promise after promise we continue to deliver.
Josh Riggs: A year and a half ago, we told the market that it was time to democratize transplant testing and today, we are closer than ever to making that goal a global reality.
Josh Riggs: The positive response from the transplant community tells us that we're on the right path.
Josh Riggs: And that we can count on their support to make our IBD product a reality.
Josh Riggs: At the end of the day local care can mean better care for patients.
Josh Riggs: Making DTC the CF DNA testing broadly accessible means more research can be done new questions will be answered.
Josh Riggs: Progress, we will start to accelerate in the clinic.
Josh Riggs: Transplant centers are tired of being left out of this important piece in the patient care value chain.
Josh Riggs: They want to manage their patients locally.
Josh Riggs: And we believe that they should be able to participate in the economic value they create.
Josh Riggs: Banca site is committed to enabling both.
Speaker Change: Fast easy to use test with strong revenue potential are a no brainer for most transplant centers across the U S.
This is the future of the one <unk>.
Speaker Change: And once they will get.
Speaker Change: It fuels gratifying to be able to report such great progress every quarter.
Speaker Change: We are retiring risk on our path to meaningful revenue.
Speaker Change: Demand for our graph. The share are you will tell us is exceeding our expectations in Europe and in the U S. We believe we are carving out potential meaningful market share while also staying on pace with our FBA program.
Speaker Change: We are moving quickly.
Speaker Change: And Thats, a testament to the team's dedication and hard work are.
Speaker Change: Our shareholder support in the market enthusiasm for what we're building.
Speaker Change: Shortly after launching graph assura.
Speaker Change: We signed a top five transplant center here in the United States.
Speaker Change: And the top five transplant center in Germany.
Speaker Change: In the long run democracy democratization of transplant testing is inevitable.
Speaker Change: What we are seeing here is just the first time at the beginning.
Speaker Change: Just thing.
Speaker Change: Basically every other biomarker needed to manage a transplant patient can be measured locally.
Speaker Change: Except for speed ECF DNA.
Speaker Change: And there is no good reason the.
Speaker Change: The BDC, if there should be any different.
Speaker Change: Transplant is a highly concentrated market and the top of our sales funnel skews towards the largest of the 100 transplant center that matter the most in our space.
Speaker Change: We are actively talking to more than 30 sites that do high organ transplant volumes.
Speaker Change: We believe we are on track to meet or exceed our site placement goal of having 20 sites signed by the end of next year.
Speaker Change: We believe each of these sites can eventually average about $1 million per year in high margin recurring clinical test kit revenue.
Speaker Change: So it's not hard to do the times one math on how we think revenue will build once we achieve FDA clearance for our kids to be used in clinical decision, making.
Speaker Change: And of course, that's just the starting point.
Speaker Change: We expect that the value proposition and regulatory clearance will drive accelerated adoption in both the U S and the EU.
We've engaged with the FDA.
And we will have our first meeting with them in early December to go through our validation plan.
Speaker Change: We have a team of experienced hands that have put many products and devices through the agency.
Speaker Change: And I have every confidence that we will find an efficient path to success.
Speaker Change: In recent weeks I've spent a fair amount of time meeting face to face with many stakeholders and our industry, including customers and research partners and companies in our space, who are interested in strategically partnering.
Speaker Change: I've traveled to meet with customers and partners not only in the U S. But also in Europe.
Speaker Change: We are leaning into the longstanding relationships, we already have while we build and explore new potential commercial and strategic relationships.
Speaker Change: It seems like every stone, we lift up we're finding someone who is frustrated with the current industry practice is looking to us for a better way.
Speaker Change: Our customers are telling us that our product is both easy to use and fast and we believe that that sets us apart.
Speaker Change: You can extract DNA than most likely you can run our tests and for sensors that want same day turnaround time, our digital PCR based assay offers an advantage over NGL solutions.
Speaker Change: We believe we are pursuing a form of the classic technological disruption strategy of introducing products that fundamentally change the nature of competition in a given market.
Speaker Change: On the strategic side, we believe our IP gives us a seat at the table in the broader molecular diagnostic space, which will allow us to have productive conversations with strategic players both on the product side, such as the instrument makers as well as with the clinical service labs.
Speaker Change: And our IP has value not only in transplant, which currently gets most of our strategic focus and sales investment but also in oncology.
Speaker Change: We believe we can continue to drive growth, even after transplant is up and humming for us.
Speaker Change: I do want to highlight favorable data out of Milan related to one of our oncology products.
Speaker Change: The term of Io and immune classifier continues to outperform standard of care Biomarkers and assays.
Speaker Change: A peer reviewed study published in clinical cancer Research Institute in September.
Speaker Change: Validated determine <unk> utility to identify breast cancer patients most likely to benefit from <unk>.
Speaker Change: The takeaway for investors is threefold.
Speaker Change: Firstly this study gets us one step closer to reimbursement for determine Io and we plan to add this to our data submission at CMS.
Speaker Change: Secondly, the data supports our ongoing determine io partnering conversations we believe we have identified partners, who want market access to this technology on a global basis and finally, it validates our R&D pipeline and shows our continuing progress in targeting a multibillion dollar addressable market in oncology diagnostics.
Speaker Change: Okay.
Speaker Change: Even though we are a small company.
Speaker Change: And we are still largely pre revenue in transplant.
Speaker Change: We sit upon an established body of science and more than 10 years of research in the field.
Speaker Change: We believe we have long been out in front with the clinical data that we're generating and have a strong pipeline to power new opportunities and growth well into the future.
Speaker Change: I'll hand, it over to Andrea.
Speaker Change: Thank you Josh.
Speaker Change: Youll notice in the shareholder letter that we highlighted two areas of focus to de risk our path to meaningful revenue. Those two areas are one signing new customers, who should grow nicely for us after we get FDA clearance for our kids and teens preparing that FDA submission. So we can achieve clearance and those customers can start buying are managed.
Speaker Change: Ah patient.
Speaker Change: In the meantime, well Josh on the rest of the senior leadership team focused on serving customers and advancing the science and our industry My team and I are focused on capital allocation and this includes tightly controlling expenses as well as ensuring access to capital to give us enough runway to get us to where we are taking.
Speaker Change: Last month, we made $10 2 million in gross proceeds in a private placement we were thrilled to welcome support from existing investors, including our strategic partner Bio Rad. We also welcome support from new investors.
We raise this capital at the market with no discount to the closing price.
Speaker Change: Does it in a tough environment.
Speaker Change: I believe that we were able to accomplish that because investors can see the opportunity for us to generate healthy returns on their behalf.
Speaker Change: We expect that growth capital allows us to keep executing on new customer agreement and keep pursuing FDA clearance.
That capital also provides runway for us to continue actively pursuing additional strategic partners.
Speaker Change: We're growing increasingly excited about the long term Josh.
Speaker Change: <unk> has stated for several quarters that molecular diagnostic testing, particularly in transplant is moving away from a centralized lab solution toward a kitted solution.
Speaker Change: We believe that this disruption is going to happen and I also think it can be a key driver of this trend for three reasons.
Speaker Change: Our researchers have had a seat at the table since the beginning scientifically and establishing the donor derived cell free DNA biomarker.
Speaker Change: Now simply seeking a commercial seat at the table, which is no easy feat, but we believe that the science is behind us and the science is the hardest part.
Speaker Change: Second our digital PCR assay is a differentiator because it's easier to use and gives a faster result.
Speaker Change: We believe that the existence of a digital PCR kidney transplant paths with reimbursement enables our customer labs to participate in the economic value chain of transplant diagnostic testing remember we are aiming to design test kit to enable centers to perform the test themselves.
Im generate revenue for themselves.
Speaker Change: It's increasing the sustainability of care at the local level. It can also better serve patients with fast results.
Speaker Change: Third we are small and nimble and we can adapt quickly.
Speaker Change: Relatively low operating expenses and we strive to keep our cash burn low so we can stay flexible.
Speaker Change: Finally, we are focused on ensuring we have the right people and processes in place to prepare for future scale. Lastly, we gathered as a senior leadership team at our National Innovation Center. Our goal was to prepare for our upcoming road and.
Strategically about our long term objectives, we came out of those planning session energized to keep executing and keep building.
Speaker Change: We're looking forward to delivering upon our mission to democratize access to molecular diagnostic testing as well as creating shareholder value along the way.
Speaker Change: Okay do we do we have any questions in the queue.
Speaker Change: Yes, we do we have our first question from.
Speaker Change: Our analyst Mike Matson from Needham.
Speaker Change: I'm, assuming we can put you on speaker.
This is Joseph on for Mike can you guys hear me.
Speaker Change: Yes, Hi, Joseph.
Speaker Change: Hi, yes, thanks for taking our questions.
Speaker Change: Okay, maybe just starting off with the first one if you guys could maybe discuss that.
Speaker Change: The role that bio Rad is playing here over the next next year and change I guess before a potential FDA approval are you seeing assistance from them and opening a dialogue with these transplant centers or maybe ended individual physicians.
Speaker Change: So I guess is there any assistance marketing, our UL product or do you think they're brawl will be more robust.
Speaker Change: Okay.
Speaker Change: No I think it's a great question and I answered in two parts, but I think we've got really nice experience here in the U S and really really good support over in Germany.
Speaker Change: We were over there.
Speaker Change: A month ago, and we got to sit down with their head of Central Europe, and the commercial team and Theyre absolutely excited.
Speaker Change: Year to support us and they've been opening doors left and right for us in central Europe to have really strong relationships as you might imagine as a research at least on the research side of their company with with labs, all across the countries that we're targeting and so that relationship has been <unk>.
Speaker Change: Very helpful for us.
Speaker Change: It gives us a feeling of being a heck of a lot bigger than we are so then we go and set up a site.
Speaker Change: They also have the bio Rad rep standing right there alongside our team and so it feels like there's a really nice handoffs and that relationship.
Speaker Change: And it gives it gives the labs a lot of comfort in let's say in the U S. They've certainly opens doors, where we don't have reached today and so it's been it's been fruitful for us I would say it gives us a lot more credibility that we're more standing at a transplant conference.
Speaker Change: And.
Speaker Change: And most recently overhead ashy bio Rad was there with us they had their life science team was in the booth with us.
Speaker Change: Giving confidence to the folks that when they're talking to us theyre going to get the backing of a $9 billion company and so yes, 100% we felt that support.
Speaker Change: Okay, Yes, that's great to hear and very helpful.
Speaker Change: And then I guess, just it's early days.
Speaker Change: What have you, but maybe just on the reception of the workflow for graph. This sure that you have introduced to those patients physicians thus far in this in this first phase.
Speaker Change: Are you seeing a lot of your reps are bio Rad reps dedicating a lot of time to key.
Speaker Change: Each had a run graph the shore or would you say that the teaching process has been a little bit more intuitive given the type of.
Speaker Change: PCR based assay.
Speaker Change: No I think it's an insightful question.
Speaker Change: Most folks that are trained on molecular are trained on PCR technology.
Speaker Change: And so a lot of people just come with that kind of skill set to a molecular lab.
Speaker Change: So I would say the workflows not foreign to most people.
It is there are nuances to the bio Rad platform that we have to train on.
Speaker Change: I would say in general it takes us about a week to two weeks to get fully up.
Speaker Change: <unk> been going and comfortable with the technology.
Speaker Change: Where theyre generate generating their own data and the way we've been working with our first group as they are sending data to us on on a daily basis, and we're going through with them, making sure that they're comfortable we're learning about our assay and how it performs in the field.
Speaker Change: But we havent, we havent experienced.
Speaker Change: Any meaningful challenges and just sort of the pure technology itself.
Speaker Change: It seems to be fairly easy to adopt and it gets set up and run.
Speaker Change: Okay, Perfect and then maybe just one more if that's all right.
Speaker Change: Could you maybe just discuss the value that <unk> adds, especially high risk transplant patients.
Speaker Change: Kind of understanding.
Speaker Change: Sure.
Speaker Change: Some of the clinical volume can come from do you expect that <unk> be used among a set subset of patients maybe the high risk individuals that kind of need that cash to result in a much more expedited manner or do you think by the time.
Speaker Change: Hospitals are trials.
Speaker Change: Grabbed assure that they would be more apt to transition to <unk> more broadly or to a broader patient set.
Speaker Change: Yes, so I'm going to I'm going to separate the question into two parts. So so the <unk> assay is our UO product and so that's not really useful for the clinical population, but once we get to the IBD product, which we expect to call by the graph plus.
Speaker Change: Yes. There is there is probably a handful of patients that need immediate testing and then the majority of the patients who there is theres some little blip on the clinical radar that the doctor wants to investigate.
Speaker Change: I would say that the transplant center will be heavily incentivized economically to capture and run as much testing as they can in house.
And I think that will be the primary driver of the switch from send out to in house testing.
Speaker Change: But we really like the market Hasnt experienced the same day turnaround time.
Speaker Change: On testing and so we don't know all of the use cases that could be there I don't know if that answers your question, but.
Speaker Change: I would expect that if I had an opportunity to build into the one thousands for a test that I would want to do that as often as I could when it is clinically needed.
Speaker Change: Okay, Yes, yes, I think that makes perfect sense I think.
Speaker Change: Common sense.
Speaker Change: Tests will be helpful. There, but since its novel, it's more of a wait and see that's all very helpful.
Speaker Change: Thank you very much for taking our questions.
Speaker Change: No for sure.
Speaker Change: The next set of questions that material from our analyst Nathan Korea, Coulson Stephens, Inc.
Speaker Change: Hey, this is Ben on for Mason today, Thanks for taking the questions.
Speaker Change: Sure Hi.
Speaker Change: Hey, you guys have talked about transplant centers reach.
Speaker Change: We're reaching out to you proactively to get access to that are you all product with out.
Speaker Change: AG sales outreach from yearend.
Speaker Change: Could you sort of provide an update on how that's playing out.
Speaker Change: And then are there any specific use cases or research initiatives that you think are better product fit for yours versus maybe competing offerings.
Speaker Change: Oh Gosh I love the question.
Speaker Change: So the the first thing I'll say is we got outreach from a pediatric unit.
Speaker Change: Not based here in the U S.
Speaker Change: They were they were working with their patients.
Speaker Change: They were sending blood.
Speaker Change: All the way across the ocean to some labs in California are trying to get an answer and it was taking them.
Speaker Change: A month to get a get a result back.
Speaker Change: And so when we went over there and set up they had their entire team there.
They had the adult team in the room and they had the bio Rad Rep standing there and we all work together for about a week and a half I am getting them comfortable with the technology is showing that they can do this in house and as of today, they are up and running and they're figuring out how to take care.
Speaker Change: Of their patient population locally and being able to manage those patients those those children.
Speaker Change: Right, there and I think that's that's for us a huge huge win that.
Speaker Change: We know that we're empowering people that didn't have the access that they needed them to this type of testing.
Speaker Change: Beyond that I think we have <unk>.
Speaker Change: Been publishing over the past couple of months in anti CD 38.
Speaker Change: Drugs. So these are drugs that are supporting.
Speaker Change: Supporting patients or helping patients with antibody mediated rejection and so far I mean, we are way out in front of the of the rest of the world here on publishing data that says that donor derived cell free DNA is useful.
Speaker Change: We're also anticipating publication that shows that we're able to pick up antibody mediated rejection 10 months ahead, using the absolute quantification, that's native to our technology and so I think there are very clear use cases that we're developing that are sort of on the kind of the cutting edge of what's possible with donor derived cell free DNA.
Speaker Change: Whether it's only doable with our technology or other technologies will.
Speaker Change: Catch up I can't really say today.
Speaker Change: But I do believe that we are we are opening new markets.
Speaker Change: With the science that we're doing.
Speaker Change: Great really appreciate the backdrop there.
Speaker Change: Just a quick follow up on the <unk> product there.
Speaker Change: When you are in discussions with the transplant centers can you speak to who are the decision makers in terms of whether that product is getting adopted.
Speaker Change: And then really just.
Speaker Change: If you could share any of that kind of a push.
Speaker Change: Push backs that you may hear for why this product may not be the best fit for them and how you go about addressing that pushback.
Speaker Change: Sure I'd say, you're going to need.
Speaker Change: <unk> from.
From someone on the transplant side of the house. So if you think about you have a lab manager and then you have a transplant center.
Speaker Change: Manager, you really need both of them together to get to get to yes on this.
Speaker Change: And so we are looking for the transplant surgeons are nephrologist, who our research minded who have questions that they've been wanting to ask but haven't been able to because of the current structure.
Speaker Change: And the ability and the availability of testing.
Speaker Change: Then they go talk to the lab manager and say Hey, we should really consider bringing this technology in house, we have this that or the other study that we would really like to run on our patients.
Speaker Change: And then Thats, what really kicks off the process.
Speaker Change: And so so it's really it's a two part sales there.
Speaker Change: The hurdle that we have as.
Speaker Change: It's one that's kind of painfully obvious when you're trying to sell a box into allowed us that this is the first piece of content that's coming out on the <unk> 600 for the transplant lab and.
Speaker Change: And so you are trying to work through adoption of a new instrument into a lab that has one piece of content.
Speaker Change: So the value proposition has to be pretty strong.
To make that sale happened and I think so far we felt a little bit of that pushback, but I think the the demand to have access to technology. So far has been winning the day.
Speaker Change: Makes sense I think I'll leave it to two from US today. Thank you so much for the time.
Robert: Thank you Robert.
Speaker Change: Thank you. The next question comes from Mark Massaro from DTI.
Speaker Change: Great.
Speaker Change: This is actually on for Mike Thanks for taking my questions.
Speaker Change: Dividends.
Speaker Change: Okay I'm sorry.
Speaker Change: I understand that Youre meeting with FDA shortly I guess.
Speaker Change: What can you just provide some clarity on what's going on.
Supporting FDA pivotal study.
Speaker Change: Additionally, do you plan on doing any concordance studies two on market transplant test.
Speaker Change: I think I heard you talk about identify EMR with 10 months of lead time over others.
Speaker Change: So maybe just some more discussion on when you expect to add.
Speaker Change: Okay.
Speaker Change: Yeah, great. So so I've got the what's going on with the publication relative to AMR detection and then the conversation with the FDA. So I'll take the FDA one first and then I'll then I'll go to the.
Speaker Change: The <unk> question.
Speaker Change: I think it was.
Speaker Change: About a month and a half two months ago, we submitted our validation plan into the FDA.
Speaker Change: Basically we're looking at a class two device here. So we're not looking at PMA and so that means that we're on track for clearance not approval.
Speaker Change: So that's so it's not a binary.
Speaker Change: Decision point.
Speaker Change: And I'd say, we're doing a a relatively simple study here, we're looking at biopsy as the gold standard.
Speaker Change: Youre doing a blood draw matched to biopsy and showing in the data how Tao how good of a job we do at identifying graft damage in the blood and it seems to be a fairly straightforward.
Speaker Change: The study design and we've got a lot of confidence that it will provide the data that we need to give the FDA competence that we have a reliable assay.
Speaker Change: Which at the end of the day is kind of the most important piece, we're only going in kidney to start off I expect that once we have success there that we would do follow on submissions.
Speaker Change: And the major in the major transplant types like heart or lung or liver.
Speaker Change: But right now we're focusing on the biggest piece of the market, which is clearly the kidney patient population.
Speaker Change: And the best and just want to make sure before I go on to that answer all your questions around kind of what the FDA program.
Speaker Change: Yes that is correct.
Speaker Change: Okay, Great and then so the data that is going to publish the data we presented back at East saw I believe this was last year and so the European Society of transplantation.
Speaker Change: And we showed in an intervention study and this is kind of important.
Speaker Change: These patients were randomized and then they were ruled in for biopsy based off of our assay.
Speaker Change: This is the first time anybody has run an interventional study using donor derived cell free DNA to decide when to do a biopsy.
Speaker Change: Normally this test is used to rule out right. Because you are trying to avoid biopsies that arent necessary and.
Speaker Change: And in this scenario, we're seeing these patients need a biopsy because it's highly likely that they have antibody mediated rejection.
Speaker Change: And so that's the study that is going to come out we're excited about it.
Speaker Change: Because I think it dovetails really well with the data that we've been publishing on the anti CD 38 drugs <unk> and <unk> and so this is the drug this narrowing by Biogen and J&J is drug and so that becomes importantly, if you have a drug that can actually treat it.
Speaker Change: Our antibody mediated rejection, it's important to catch it as early as possible.
Speaker Change: Because time loss here as graft loss.
Speaker Change: And so there's going to be a lot of push to catch a AMR as early as possible. So that you can get these patients on treatment as soon as possible to avoid <unk>.
Speaker Change: <unk> damage to the kidney and eventual graft loss.
Speaker Change: Death, or theyre going to have to go back on dialysis, there's like a whole lot of bad outcomes that can be avoided if you can catch.
Speaker Change: The AMR earlier, and we've got what I believe is the best data out there.
Speaker Change: Certainly the only interventional data thats out there showing that you can catch it early enough to actually have an impact with these drugs.
Speaker Change: That's perfect. Thanks, Josh and then maybe just a follow up on.
Speaker Change: On the U S sales panel I think you've call under perform 20, 25% of transplant volume.
Speaker Change: We think that it's going to take to convert that to revenue.
Speaker Change: <unk> FDA approval.
Speaker Change: What steps you've taken to prepare for launch there.
Speaker Change: Oh, yes.
Speaker Change: We think it will take a second to think on that one so.
Speaker Change: Andrew you put together a really nice chart in our last shareholder letter.
Speaker Change: Where we put out some thinking on what adoption could look like inside of major transplant Center.
Speaker Change: And we.
Speaker Change: We don't expect that positions our overnight going to just jump in and use our technology on a 100% of the time on 100% of their patients.
Speaker Change: There's going to be some kind of lead in period, we're assuming about a six month or two quarter lead in from the point of time when they are adopted the IBD product to where you will see a meaningful switch.
Speaker Change: From sending out primarily to doing things in house.
Speaker Change: I think that may happen faster in the centers, where they're already comfortable with our technology and that's where I think our pilot sites matter a lot.
Speaker Change: But I think for the for the new adopters that are the ones that are adopting very close to the time when we have FDA clearance or is sort of like immediately after there's going to be a lead in period, but I wouldn't expect it to last much longer than six to nine months is there kind of exploring how to work that in and then after that the argument to send out gets rather.
Speaker Change: Our newest just because you'll be able to do it yourself, it's a heck of a lot easier to send a tube of blood down the hall than it is to send it across the country.
Yes.
Speaker Change: Great. Thanks, so much for your time guys.
Speaker Change: And thank you.
Speaker Change: And once again, if you would like to ask a question. Please press star and the number one on your telephone keypad, we'll pause for just a moment for our questions to queue.
Speaker Change: And Julien I'll turn the call back to you for the pre submitted question.
Speaker Change: Sure. We have one question that came in.
Speaker Change: Now the question is can you explain why people wouldn't just use the lgs tests that are already out there.
Speaker Change: Oh, Yes, I Love this question and I think.
Speaker Change: <unk> is probably a really good person to answer this one for us so.
Speaker Change: If you can you can take the question on why wouldn't you just run the NDS test.
Speaker Change: Thank you for the question I really like.
So.
Okay.
We have developed.
Speaker Change: Our tests on digital PCR for.
Speaker Change: Good reasons.
Speaker Change: I start with the fact that PCR is way faster.
Speaker Change: And then what do you ever tangle with sequencing that.
Speaker Change: Right now with the current technology that is out there.
Speaker Change: Staying up to like two.
Speaker Change: <unk> thousand 430 hours.
Speaker Change: Before you can.
Speaker Change: However results.
Speaker Change: And that really limits all of these mds technology to situations, where the doctor doesn't need an immediate answer.
Speaker Change: So.
Speaker Change: For all indications.
Speaker Change: Sure.
Speaker Change: So the Doctor wants to know what am I going to do.
The NDS are not really feasible.
Speaker Change: Well that was actually the reason why why we went into that direction.
Speaker Change: So all of that developing the test.
Speaker Change: The second reason is that.
Speaker Change: If youre looking at Ngls.
Speaker Change: The sequencing alone.
Speaker Change: <unk> comprises our high cost effectively.
Speaker Change: So much less need to do is to wait until we have enough samples together.
That they can.
Speaker Change: Put on long run of the <unk> machine.
Speaker Change: That's actually almost the same.
Speaker Change: The same.
Speaker Change: Thing because it's.
Speaker Change: All about time. It. So you can just run one central that is very urgent.
Speaker Change: In your lab based on Ngls hour test.
Speaker Change: It's different it doesn't matter, whether you are running one sample or 10 sample.
Speaker Change: Central costs are actually the same.
Speaker Change: So.
Speaker Change: All will be patient.
Speaker Change: If you have neither.
Speaker Change: <unk> results for the critical situation and the patients and yes. It does not.
Speaker Change: Well that's.
Speaker Change: The major reason.
Speaker Change: Why why we were going.
Speaker Change: The direction of the PCR.
Speaker Change: TCR technology, where you can easily.
Speaker Change: Get the results one working day.
Speaker Change: Thank you for that and I think that nails it.
Speaker Change: Because most most centers are going to struggle with the idea that they have to batch to get their cost down because there's always going to be a couple of cases, a week, where youre going to want to quick answer.
Speaker Change: And that's just not not a great place for for NGL technologies to serve.
Speaker Change: Alright, do we have anything else in the question queue there Julien.
No more questions from where I can see.
Speaker Change: Alright, well I appreciate everybody that tuned in and listen to us today.
Speaker Change: We look forward to continuing to update you guys on the progress that we're making as a company we're having a lot of fun out here right now working with the transplant surgeons and researchers around the world.
Speaker Change: It just it feels really good and so so thanks, everybody who has been supporting us.
Speaker Change: We look forward to updating you all in the future.
Speaker Change: And this concludes today's conference call you may now disconnect.
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Speaker Change: Sure.
Speaker Change: Sure.
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