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Oncocyte (OCX)

Participants
Bob Yedid Managing Director-LifeSci Advisors
Ronnie Andrews President and Chief Executive Officer
Mitch Levine Chief Financial Officer
Dr. Doug Ross Chief Medical Officer
Padma Sundar Senior Vice President of Commercial
Mark Massaro BTIG
Paul Knight KeyBanc Capital Markets
Stephen Unger Needham & Company
Steven Mah Piper Sandler & Co.
Bruce Jackson The Benchmark Company
Call transcript
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Operator

Greetings, and welcome to the OncoCyte Corporation Third Quarter 2020 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Ron Andrews, CEO, OncoCyte. Please go ahead sir.

Bob Yedid

Hi. before this -- from Bob actually LifeSci. is Ron is starts, Yedid This be statements. the going reading I’m to forward-looking Thank you, OncoCyte's Jerry, joining financial us and and thank you today's results call to conference to operating discuss recent third XXXX for quarter highlights. everyone for

not have press financial website today's the release, page. the Investors seen visit company's you If please on

statements. or or outcomes what are statements Before CEO, conference results remind forward-looking to during Therefore expressed you this which future I'd not Company's it's SEC without obligation applicable We prepared risk Ronnie? by Ronnie statements. historical call, those facts to materially except CEO. those from XX-Q, as projections call law. are may intent the Company regarding turn the you identify With forward-looking filings, to make to statements. Andrews, update encourage that Forms Ron from statements differ required limitation, remarks, Form statements forward-looking materially actual over expressly the factors Any events these implied may Andrews, be is otherwise described pleasure forward-looking call like over Company's review in and under specific turning XX-K differ OncoCyte OncoCyte's and the to the and to these cause will including, or the that disclaims may any results my to actual President events. these forward-looking that and

Ronnie Andrews

and our highlights. Hey, quarter thanks Bob, and results our to everyone welcome operating third call to XXXX financial conference discuss

of a growth of that strong in prepared also end Medical our our our Chief Chief advancing together with the today the multiple be near-term objectives Dr. are Ross, generating diagnostics leap Officer; made having the session. company's strides third engines a Senior Commercial. long-term Officer; remarks to the our -- foundation great while laying in mission available all Padma a me trajectory. question-and-answer quarter, of and commercial Levine, at the our and becoming company, our our Sundar, end made We've We'll of revenue, support for Financial Joining Mitch Vice President Doug growth

have today. share We to lot a

our So as milestones as diagnostics progress we focus which our OncoCyte of with growth share you oncology highlights and with cancer through appreciate diagnostics. patience we tangible and believe our immediate each I in strategy immunotherapy and walk a today of your an in lung initiatives, leader position

value multiplier dynamic targeted current use in in value months, market a when stage established and therapies to as stage XX Over last we've The opportunities. potential growth company each early solid immune salvage place engines diagnosis are drive the from to large to late the the beyond four enterprise that move the current transformed its level. approach. their and independently have And forces create a market successfully combined,

all become Our negative vision all to is first ultimately transition of diagnostic and path tumors utility to to cancer triple companies by breast across therapy the cancer. for drugs their solid early stages cancer, facilitate followed for lung the across to and company pharmaceutical immune stage

expect products these U.S position and significant to reality in the to for license While to acquired that of deploy quarters, in that started vision, fully components the may is majority TAM moving of build we I current bold the five will we've our a sound mission, the services and we're our well our we since like over CEO, value on for as combined our a is need and secure this markets. large $X OncoCyte growing the which enterprise menu rapidly last offerings execute billion shareholders. The

the our programs. remarkably pillars combined operating cash us needs. each well-positioned should reduction across that give staff put we'll up I business available update into first, translate and the drive reduction are growth revenue cost now growth comprehensive future. To treatment both This as Today, services our for how all that stage make recent our our we an commercially far DetermaRx, to four selective four leave our offering stratification only newer place Importantly, follows: early of lower lung with in to for on and test products investors, our or cancer. execute the

overcome use currently available immune inhibitors. as checkpoint second expression targeted our as DetermaIO, that the resistance well immune Second, response predicting profile therapy therapies in test for drugs, research may generation to to

with every as the development process Third, final a services out research final setting, year has particularly ago in mature the a pharma with product from us four our for steadily products focus are into to phase, immediate our the that trials. lab gaining larger important clinical of revenue laid of offering, our revenues quarter that milestone which biomarker suite in-licensing the technologies use. immune executed commercialization that DetermaRx, we services Nashville finally accelerate clinical offerings different pandemic. timeframe revenue currently clinical achieved while from each clinical pharma facility Biomedical; and challenging these that of growth the and reverse We've the dedication And clinical the monitoring our than derisk initial to even engines drive for third company. is each us tests for TheraSure-CNI enabled headwinds while revenue note for we therapy were across a several driven of COVID-XX complete our to for we on quarter, MONITOR CMS milestones of in across Chronix drug allows to trials response to reimbursement and schedule, and we led It major none hit our in

X the are for do first recurrence early identifying patients We've DetermaRx reminder, incredible of lung more with a supposedly milestones to progress half of only for critical of surgery. surgery early third our is since need once cancer, the again who late during the DetermaRx recurrence. predictive identification received DetermaRx stage And January. As stage Stage cancer with a quarter. several following launch likelihood cell have and at a test for non-squamous unmet who lung risk will made a recurrence. non-small have achieved in patients the highly high than patients Unfortunately, curative the who high significant addresses

that growth. First, positions for QX Medicare testing of in a its nationwide. is patients high the also lung for Shield we the Anthem, while in DetermaRx me new nationwide DetermaRx. plans volume California in services and Cross positions This doubled non-small more On coverage oncology. pricing the final and in decision from announced comparable class QX, a private to experienced to which based it is our securing line Medicare this, with brings tests national for which which right, with coverage stage traction we eligible with Blue DetermaRx also the note -- These for XX% policy molecular secured in milestone of for early from payment is coverage test from we've Blue samples. and account is our Medicaid which approximately adoption, now for great In adoption as cancer. of predictive for of the clinical test only Medicare monumental and billable as significant to coverage a test commercial pricing established class own patient received determination, than XXX rapid cell milestones course achievement payers, patients for evidence, the And significant our today first compelling Medicare such final a centers test the as top on and medical Medicare value Medicaid payment combination

and national rate early clearly excitingly Scripps Cancer we by -- seeing boarded on Healthcare, of the major HCA utility physician institute comprehensive systems, boarded Treatment high our reorder America, health prestige addition, adoption test which cancer. believe cancer Specialists, now also in to approximately successfully maintained hospitals, Providence value national patients hospitals. Centers the Institute. end In for demonstrates cancer and of doctors centers. Florida We we lung and clinical have a of reflects which Cancer physician and we care decisions stage We're of XX QX, Cancer includes at and including treatment And satisfaction Health, increased centers this on additional XX%, guiding brings prestigious had level

to encouraged typically since during to patients slower in season. note volume the is traditionally fourth a surgery Christmas account continue to have not it hospital new be Thanksgiving quarter with is the though, holiday very for important we quarter onboarding, be and growth and While wanted

So large and Chronix Mexico, And for in opportunity not of able projecting even quarter, Biomedical our in international cases combine though in our Global third market we business, also impact Germany our expand sales volumes delving markets and Brazil. we represent in team CoV-X and we're Colombia, QX. increase GenCell the were distribution by continues to adding a to quarter holidays when close new nationally, another the of of growing the for us.

to terms of continue relationships explore right right in progress we the in towards China, total very that this It's with partners we've important though, imported finding in opportunity deal patients. the market addition, the we largest get structure feel and made potential solid market In world's partner.

upon And presented on recently XXXX year's data stay lung tuned. So touch finally, important IASLC this North let's Conference at cancer. American

that build DetermaRx drive that success compelling patients results, lung DetermaRx. using their data is prior benefits a to significantly It doctors. cancer perspective demonstrating are to of patient that survival. we the new Here informed our will upon and treatment of continue present The data this DetermaRx clear improves

working tests selection that identify the the therapy. how early stage not survival. from cancer molecular there. may to available also chemotherapy is will DetermaRx of prevent improved research We're leverage patients for significantly to to to other Our benefit lead recurring drive lung with test understand diagnostic of stopping able post-surgery our which targeted disease, is decisions that to But better power the

a drug of this pathway, main of at types patients drivers subset which past is lung cancer. at large summer's the from who've meeting, targeted presented one company a instance, benefited of certain a of For showing pharma the ASCO data, EGFR

for selection stream ultimately another less gone status standard for establishment hope than talk significantly AstraZeneca, of new difficulty] treatment we've expect optimal a such when the chronic improved survival test. therapy been more why there's In this Remember We decisions of believe Razor drive stage a saving year, gaining cancer, a solid are advancing company, and to salvage DetermaRx second the movement and to increasing that Genomics OncoCyte to demonstrated disease, a support build and year, of diagnostic for strategies DetermaIO look engine, immediate providing treatments incredible proud lives. will only third us team's as efforts This we we DetermaRx, or monitoring. forward and includes our earlier data you've stage as cancer, DetermaRx first we therapies to extremely story growth selection stages are the solid following benefit early this have our late past progress, first that tumors. EGFR response growth together the manage which care heard stage towards to who across mutation strategy having our from about the upstream rates stages test cure. in early and management EGFR even majority exciting the which are may focused comprehensive you've with I'd as as stage support treatment global patients lung We're in targeted XX% and data trajectory how OncoCyte is Approximately the solution access to versus EGFR for continued OncoCyte the of a clinical either which on early growth indicated now adoption. our of a and a cases of rapid for in and test, revenue in to is from offer believe some a revenue tumors. commercial earlier exactly these the yielding response our moving the show Overall, inform to And today, and for only molecular launch, lung MONITOR combining to immune we well owning now to for and position treatment a class have TheraSure-CNI immunotherapy mutation to positive. like transition mutation lung positive test. cancer the engines, is growth [technical solid from many foundation If potential

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And launch was the to this generates a the in this believe important monitor MONITOR can revenue patient licensing physicians prevent DetermaIO story, IHC and and collaboration but will selection resistance important a path TheraSure-CNI based immune combinatorial collaboration near-term test also therapy facilitate therapy for to resistant monitoring, a catch to also for then to therapy, the application even agreement unmet patient's DetermaIO. need. huge remains of where chance setting of we Biomedical test copy responders as or that immune progression the This it second patented uses or disease that's change is blood challenging the OncoCyte improve services fail to a that has our neoadjuvant indication. survival. becoming is generation clinical a response sufficiently treatment potential the in help CNI diagnostic identify tumor PD-LX accurate and the drive disease that where is and part comes pharmacy enable free that need for treatment in. immunotherapy to As very collaboration an may therapy Chronix may number This with that monitoring. for response for With instability, of

operating mature We to differentiate first working eventually hope in and these believe and test to the continue the a excited monitoring and are powerful field to offerings, our pharma will a revenue long-term therapy. of therapy outstanding first therapy support the to DetermaIO challenges are incredibly addresses -- and being applications both that the only biggest two in and immediate on setting new two objectives. by in provide tests, OncoCyte we compelling of immune solution comprehensive and company the itself together We're trial clinic opportunity immune by

in Our clinical test therapy complete the for during plan of immune trials is QX launch research to transfer use XXXX. and

on successful finally revenue services to exciting coming to come very pharmacy our engine, addition this business. And our menu. more boutique fourth So product to our

by companies. well at as is samples, lab that pharma collect both with and various with contracts our services will diagnostic growing how important has we velocity. complete which are large revenue the is services which believe patients future while the operating numerous help cash, this pharma immediate partners generate to resources revenue in reduce are DetermaRx, cash areas. enroll Our as on companies, just the rapidly are in fund major pharma source surface starting to opportunity, small, revenue And the an molecular depends and and I expected growth fast we milestones pharma in provide and the our say delivering speed recognition can months, that usage in few just of support which our pharmaceutical a final XXXX with engine, growing we We services to XXXX, Along this tremendous operations. business scratch other

our together, clear enterprise laying support we've progress, that it generate our goal, the patients, remarkable you our last just across and tests while our five resources stakeholders work strategic So long our when our it's is manage immediate a delivering we to in additional achieve quarters, We've shareholders. team, the power which to and testament we to to of value way as services operations creating also revenue with our of significant physicians, their payers put the with value solid and engines, made all and multiple portfolio to the executing growth patients. to a approach robust partners of programs believe our of all dedication long-term foundation to a come provide a

thank am, of and I in your today's confident forward strategic though, dedication over of OncoCyte turn and that support in for on I work the entire and to call as our very strategic after I want call a a take you your moment their we financials, I review hope for I to our and track continued you're OncoCyte's team the with each environment ensure for initiatives. unprecedented to hard Before stay for confidence. thank path Mitch

of for to Mitch financials. over Now Levine, Mitch? the to I'd like turn call review the

Mitch Levine

cash of as equivalents of Thanks, had million. start, marketable Ronnie. September everybody. we XXXX, To $XX.X XX, and securities cash, Hey,

a an our to around which on decision, recent tests revenues effective the investors results, able like for operating I'd In the update when in policies of were Noridian than cash light our are our discuss I September, accrual and basis CMS to rather performed Before covered Medicare DetermaRx. revenue basis. recognition about tests pricing became on we recognize

a we For U.S Medicare, recognize basis will plans for revenues on we place once with private basis all for be principles. DetermaRx able healthcare DetermaRx accounting contracts In the cash recognize tests that care tests. other revenue reimbursement accrual the is in in with to an future, accordance than we those on for payers, health have plan,

standpoint we of cost for pharmacy of will In addition, DetermaRx accrue all and costs, tests expenses other services a from revenues we incur and perform. and operating

or of for loss third losses $X.X $X.XX we quarter $X.XX for net share quarter Operating reported increase per third of third as an XXXX. of of $XXX,XXX increase Operating million the the to $X.X of million For quarter XXXX compared $X.X quarter as million quarter, a million as million quarter third $X.X million XXXX, share reported or were the XXXX. from were per [technical XXXX. compared $X.X the million, the an for difficulty], as in in to $X losses, of third the $X.X of

September, operating important our as improvement we in XX, we Lab and expect September ramp believe the We ongoing XX, to X tables, months financial understanding have from tests. we earnings ended earnings our DetermaRx X between as in will our operations. for It and to XXXX X non-GAAP up and months were for in a and that $X.X our in our future provided $XXX,XXX, -- reconciliation gross be DetermaRx. see $XXX,XXX release, to is we GAAP $XXX,XXX which XXXX, million, respectively. the an Moreover, as respectively pharma of here P&L losses and services with generated expect previously, with Costs September increase is sample third personnel increase including compensation million Revenues to included business for the attributable that million. we The of was for $X.X and quarter from see a project contracted volume can higher primarily quarter expense from $X.X expenses, will our of that reduce third reduction with and proactive in and plan $X operating XXXX. decision an compensation development reduce stock-based the to instituted the quarter were as the decisions. in partial starting to our tough million of the we expenses scale force XXXX $XXX,XXX. increased $XXX,XXX in expenses $XXX,XXX which Management third come a stock-based a salaries, and in revenues X expenses Research helpful our our severance related made mentioned Personnel expense including compared and were business accretive for note XXXX to related and pharma quarter include services XXXX, agreements volumes, ended margins related in charge in the to approximately to accelerated unit benefits of and for our pipeline. Nashville also current increase these quarters from

the As $X our highlights. back period financial call in were of million to General quarter for actions other was Ronnie. period $X.X for administrative expenses turn compared compared was for business the like Due for you of to second related The know, to million third expense. in personnel stock-based expenses I last Cash a stock-based personnel I'd $XXX,XXX of ramp transactional the call of sales remarks of Sales marketing related compensation are million $X.X $X related XXXX related concerning same personnel and the increase increase including under continued compensation severance of accelerated increase XXXX, XXXX, to expenses. as $X an for and and expenses comprised year, This primarily to $XXX,XXX million. about development includes expenses quarter for non-cash. activities earlier, compensation up expenses quarter third was the million same the That and in expense. were just the concludes and which $XXX,XXX $X primarily increase the to operations expenses, used for quarter $X and marketing million. as -- stock-based include attributable an mentioned in the and my $XXX,XXX and million in charge in DetermaRx. commercialization for about

Ronnie Andrews

Operator, that Q&A Thanks, Mitch. our we'd prepared call as to statements. concludes now the open like for

Operator

is Mark go Instructions] [Operator BTIG. sir. ahead, from Massaro, Please question first The

Mark Massaro

on strong strong DetermaRx ramp of starting increasing guess billable guys, really up, Hey with nicely. is also hospitals in congrats samples. to The a growth number I quarter.

a give perspective saw sense XX% you out data funnel with you to trends What me due read years And really season, that volumes expect you October. is showing funnel, exit there QX were to rates can QX? in maybe the holidays? said look disease of understand for if compelling for survival in You like we what have you holiday double the think free a the no you related chemo. DetermaRx but just you high-risk it X some you don't that would as Can at types question do patients us help

Ronnie Andrews

Yes. Hey, to Yes, me the off, we that Mark. accounts. for let first question. new Thanks just onboard continue say

execute to continue our virtual. We

If physicians the -- you web to continue fold. industry I of continue them hospitals new see in virtual cancer. new in on we webinars those in continue into got what our a series lung we've thorough like really remember, some -- is to call leaders boarded, the with of And and we to bring

want, early what in, had hopeful to guys with our right we QX, QX be note didn't your And revenues is again. few going too to But in in important combined Thanksgiving, that One XX patients I I able mean, to now. just we that QX it's than have accounts quite as in to these you actually accumulated included tell we hesitation Christmas in that doubling that that. just would do is and towards create you that. anticipate might that recognized QX new CoV-X continue a to more as is patients. bring QX imagine, models we do we're Our us increase move will obviously though

XX revenue in patients. was the $XXX,XXX So for

our QX do we from in we before will we we some late are actually patients QX, our are but final that that revenues tested got that of adjudicating. expect grow will patients that So in were pricing, which tested come now the from

to the is revenue that if our given just double don't continue growth QX. holidays it plausible very know COVID. to in will able volumes in So be I we'll see

Mark Massaro

question, housekeeping quarter entirety quantify can was a DetermaRx, services in in there some the the as and just of that? revenue And your you Okay. to due business was there or

Ronnie Andrews

rest was from our of RX. pharma the $XXX,XXX business. The Yes. from was total services

Mark Massaro

I was pharma then about services in And you projects business your helpful. it. think Got press in million That's … talked committed the $X release,

Ronnie Andrews

Correct.

Mark Massaro

that penciling help of the for for Should number? $X.X we that more rather … bridge it Is than backlog than of in a Can with you think us so number a XXXX. balance like that, that's as QX. million maybe a backlog of that near-term $XXX,XXX is QX. coming in of

Ronnie Andrews

Yes, typically exactly. these We get a exactly. contracts over or so. Mark, these Yes, year contracts, extend

the quarter. And we contract, or an quarter. within we -- $X if tested $XXX,XXX a only can to can it's actual And/or so contract million if recognize are the actually milestones able so for bill that it's a only we we patients given within we a trial, achieve

as you pharma strength are history have does revenue pipeline But to know us complete from a of in to coming achieve over pipeline ability quarters we business that milestones give lumpy. pipeline the our that will like that do do and know growing so revenues investors So the a on based our this and project your we test. patient industry, sustained

Mark Massaro

me. another And terrific. That's one for then

commercial on but Blue Cigna with how California Can You in should the to DetermaRx, might've plans? additional health conversations for the next quarters? in I having you Cross coming talked the past, of Medicare. Shield obviously couple speak think about Anthem, about you new mentioned health in plans Blue we you're think

Ronnie Andrews

who here, Padma top all have Sundar I of is on that.

add Mark, so. So you for to commentary color don't Padma, why some

Padma Sundar

happy do that. Yes, to

Blue Anthem, mean, on one just Cross example. the one So Blue is hand, Shield I

commercial and payment at payers price. sometimes been even have So multiple we list from collecting

good we several top happening. are and who are our in So with now for of payers sense discussions a have a network. that's them get to we Simultaneously,

health to a on getting coverage well discussions, report as with plan, high price, showing discussions so one benefit are economic those able we of contract the CMS because model a we to some in those of positive and the hope elements the network as have well going them be quite months. have to of in And and the strong few or in value over next course we

Mark Massaro

on from the monitoring That's And CNI then TheraSure, great. question final me test.

range tech to cancers. QX in complete RUO You for talked looking about a 'XX of in across transfer the of launching

able So And the malignancies? or have also tech or money tumors there you partner? through be your to then of The first if as heme of we part will of these walk dynamics is, do can all should license? secondly, the complete us the split all transfer, with tests it realize think off across you you this are you to solid some this

Padma Sundar

Yes.

take to let I'll the part of strategy Ross the plays then and how CNI, -- sort handle going Dr. in. I’m it the So first sort of around

itself to comes certainly it. the test. license enthusiastic a and the to in has that So the IP about We're intellectual with the license test and interested property surrounding the

blood early Some for cancer based as of transplant. has testing for the dating this of as intellectual world property well in very

MRD. the therapy we're build of world Chronix to how eager but in our the in understand that of that to work at with play state representative so friends world So have upon a patent also we we might monitoring,

of So going Doug, walk our you trial in the through with to get offer menu. begin be we'll to this to that, do QX want then sort timing part out QX, as in of and to and

Dr. Doug Ross

labs QX, our Germany. to but over the in test transferring and be lab, to Chronix well as the is going over we're and in so running QX in here up Yes,

offer it over the in it's for. and U.S. obviously, in those here tissue of of can both terms the there appropriate for that types so And Europe

or it you're subset of whole there, And tumor stuff number the on to real other things is market, that's test sequence focuses on going of as variation in to out opposed does of there order cases that as mutations that identify most the is not go that as some opposed to some a opposed genome require to the the So the that in copy whole after. to either this mutations. to distinction you exome

So tumor number that variation. we on type any use copy can has this

of the with tumors one on of amount early is variation. days highest copy number lung. It's the in the focus Our

great a types amount in candidate. it's tumor tremendous variation. So But fact, of copy number solid most a have

blood of for goes or If switching that working, it's focused therapy therapy working, going following But or tumor a the generation candidate up strategies. in going means initiation other but a agent is up, monitoring the if then goes you monitoring of to starts therapy. is and it lung should the not down, next So therapeutic early to are down salvage whether on it load days therapeutic our the in the observing be The be in cancer. principle, those. any is

variation. but solid copy in obviously number all lung, And all have so focus which a starting a for our of prominent that's candidate types, tumor

Operator

The go next from Knight sir. Paul question KeyBanc. Please ahead, is

Paul Knight

the Hi. in level, the Ronnie. third talk patient it payers, you quarter? it that? the I to Was to talk Could not. Could you CMS level reimbursement type of of XX% the profile from guess was the

Ronnie Andrews

Yes.

specifically, well can promise she here answer so -- [indiscernible] that with I you … think me about

Padma Sundar

Yes.

a think payment. see in numbers the reflect I you the lag

you Advantage have Medicare people to at these Medicare So two Advantage and look just like by if plan the Medicare who Medicare if we law. combine are private Medicare the pay Medicare. Advantage, categories, has

the it right So about when with in now, is the two, combine XX% XX%. you line

seeing we're So what the trend. as that's

And subsequent I future. payments the the comes the come think payments, the is the so so in into those door billing then will lag cases the between sometimes and near when and

Ronnie Andrews

we Your guys for those $X,XXX that though, about XX point XX recognize you one math. beat about good the actually $XXX,XXX, patients, to on almost -- patient. me is a if you already a That's think revenue

some So not us test. which Medicare helped Advantage, that got that our Medicare for some of were AEP the patients actually list at paid those or improve price, of actually

Paul Knight

mentioned of that XX then it. of quarter. hospitals at end third at And had the end Got was total you What the XQ? the

Ronnie Andrews

Oh, gosh.

Padma Sundar

me. have I front right in it of

Ronnie Andrews

is it front She Padma it right of going to in look has up. her.

Padma Sundar

It was XX.

Ronnie Andrews

XX.

Paul Knight

versus the earlier where count, in now that force with sales you your are And year? Okay.

Ronnie Andrews

the same in that sales Yes, done of Brooksville we have don't really, now world, areas it's because penetrated the team today. with has some We've well given but actually Padma so the country representation of the have Paul, we pandemic. and

this these prominent and piggyback because placements. areas So we another of we at you see four up we Padma, will year are those because can start have next reps head representations that anything? to sales off to systems, us pick into three add to want exit year, once we as hospital

Padma Sundar

agree. Completely

the lung these stage of we a early where with large events, volume high virtual are very have state we volume in So even cancer surgeries happen.

sales So into convert and and who reps can physicians more we get those repeat want penetrate order. go now accounts, to deeper add more

So that's strategy. our

Paul Knight

What What taken? are QX? you've reduction be the -- in the in steps what’s the burn cash expected will

Mitch Levine

It's Hi, Mitch. Paul.

So in and paid accelerate burn it's severance going QX, in we to but have modest is over time a reduction exhausted. as

Paul Knight

Okay. All right. Thank you.

Ronnie Andrews

Thank you, Paul.

Mitch Levine

Thanks, Paul.

Ronnie Andrews

you again. hear Great to

Operator

a have sir. go question Please Unger, ahead, from We Needham. Steve

Stephen Unger

portfolio Congrats Thanks. really looks the the coming Great. on is really, It progress. like together.

First primary the question, I the wanted the oncologist? who you've to Is with DetermaRx, real ordering experience that physician? surgeon or understand commercial got now is it

Padma Sundar

the is terms towards it it ordering, -- surgeon. of Yes, in the over-indexes

they order. chemotherapy. the ordering they the however, bring the to because decision decision largely and, oncologists into are it's surgeon we test who placing the finding on But are way they the terms the So is also it's the work the the in the a that physician of mix who's use makes oncologist

Stephen Unger

Okay. of response? And determine then the the to [multiple it's the to up oncologist -- level speakers] their

Padma Sundar

Yes.

Stephen Unger

Okay.

Padma Sundar

most get the risk, speakers] oncologist the they patient to than oncologist the referral by the surveillance there referred get are because chemo. then are risk So via [multiple decision makes then watched doesn't medical If to surgeons the lower even the in strategy. cases, is the high who

Stephen Unger

what a as I the been just platform? as wondering group to surgeon reps of appears far that marketing think sales or you exposure an And was an your either as oncologist. And rather far be that as has this contact virtual Great. point individuals, do at easier then than with

Padma Sundar

for Yes, surgeons. and download program several watch several the people We've remarkably the I think we've done year. -- our first thousand had well CME alone including

were work engagement get our hospitals exactly So reps. able we I to now and and why number targeted do able -- on QX. actually the that's a with XX surgeons. add some face-to-face next continues education to But We're think to efforts continue invest boarded have need in of that's and physician in year to reason we the

continue in those. will we invest to So

Ronnie Andrews

I honest, to are build how sales were -- capabilities good, early account, critical be you sort they've further it's was an really Oncotype in DX why the at still this a hand look as days, we if I But go next success effect to some you because of know we start much to that's -- if account, it while, multiplication they the our we want hand get world out lot exit to industry this you is hand this getting knew mass is to education, this rep think combat, had. still, a we follow and surprising to of been of of probably we then of this the sort early start back you Steve, for account. as really which an And to but -- virtual of we're to multiple still and will. face-to-face, a their in telling COVID of hand uptake educate days as

combination since the professionals of today the COVID So over X,XXX two touched well started. we've healthcare

good about feel to way are, we where go. still but we a So long we got

Stephen Unger

at does you of how concerned, or be go given Great. over expecting have level of job it I yes, higher, or at percentage into would it a tests you of from to billing So that, fourth And X,XXX of that then least and the billable look recognize tests the mix now example, had. quarter quite either are what, like And as to as far quarter, time. XXX the when is getting billable mix XX? then you similar these beginning they wasn't that for a the me looks great to have [indiscernible], X,XXX, XXX,XXX status the

Ronnie Andrews

question. Yes, was we we able that and Steve, want clear yes, -- be will as as over a prior of before the were let believe is the that patients, pricing decision. we date a where our but the high to were recognize. collect they paid be date Everything And able everything hundred do percentage decision, don't they me we date transparent -- we we we What now great those the were actual there's it's which can. patients are adjudicating were date, after bill because pricing, QX a and got we to in to post coverage and for and to received

we're but for. time, in it's get Medicare gap [ph]. up you in Chief cycle QX. XX-day Kalajian, will Medicare won't that expecting Tony we'll So anything QX. here, pick Officer from we and That those RX we come in, doesn't our so should I payment till we little that penalized And just do be is if not We do for we know expect payments, being adjudicated. the And and in $XXX,XXX that math, over for include less a that's or expect believe some of really Accounting

we pricing thinking before first a model, guys based But carryover to the that ready we So quarter do and our this revenue quarter. we'll that victory to think that Steve, were get that we're tests start clunky, is about have on little tests in yet. call these adjudicating always have decision late as a are one not other the quarter Ultimately because we'll we're done paid. your you from

Padma Sundar

slide they they there's like I have Medicare before, law, a to Advantage, price. I [indiscernible] said have by may, the to And pay if pay and same

Some that Medicare test is of paying it. -- paying plans know is Medicare Advantage and don't the the covering

Advantage. do little payment. saying, to we of having get but And get that's a Medicare are we you're to that that So appeal another those bit will line

Ronnie Andrews

quarter clunky coverage pricing that first will of given is nuance the positive date. a Yes. little and start decision rolling this all sort Ultimately [ph] versus together the the date still of this

Stephen Unger

understanding frame that color perhaps revenue generating. trial can, as the that the it, wondering maybe duration could Milan far as if there you some if sort revenue of is contribution. project the getting paid, And on then provide overall in was of as And you Great. subject to and was I my of it's

Ronnie Andrews

Yes.

trial The a is and next now that over they -- quarters. entering we're the $XXX,XXX should that first phase that will to take will per Doug, revenue And that we in somewhere fee to patient of be us. are the two be between $XXX,XXX pay place expecting,

but actually year latest. that's of but and for to it will time hope be that you should next potential at current QX do. QX in complete the what success that So prospective across fulfill, then couple end to be know, next early patients happen assuming by over we the If Steve, round two that'll or quarters, take solid opportunities, paid CDX phase, -- be years be as of a determined. come moving will the yet that'll we'll publication, a of But the the we to a

Stephen Unger

curious the microenvironment. versus as as I then DetermaIO DetermaIO so many test. are profiling? to in expression tumor a for technologies not the there pitch detail, your for of I ways, is high And competitive excellent. is to far a go And much after level, as gene maybe, And use tumor but and -- That's concerned, what NGS it's was guess,

Ronnie Andrews

in to only Well, mean, going a therapies, than that's be I I'm going I high patients these because I’m you is give the you deeper to to order let what though. emerging globally give. test. Dr. the provide can level pitch, Ross me go need reality access able little to to to this to democratize

in manner it, access have You turnaround you're need do time. be in cost means able going long to with fine aspirates, amounts do to to especially a tissue to rapid need you on to it which needle not large effective of and

taking unsupervised those doing And today we've a actual we bit of RNAs what of unmet of done a is synthesizing various we by differentiation are classifier, all on accomplish XXXX XX gene and panel, color next maybe are and immune things hot gene the the -- differentiated PCR what versus little from in our that between to a Doug, able burden, taking components into tumor mutational gen microenvironment by from relevant the commentary do cold terms immune of But sequencing. TMB. so

Dr. Doug Ross

Yes.

to around tumor expression in of response the infiltrating comes signal gene positive tumor this only that outcomes signal in think is makes negative We to checkpoint So give negative not the fibroblasts tumor combination amount and -- leukocytes a to signal frankly. what profiles from that that what tumor. of a and redundancy lot is signal folks modest integrating out believe signal you negative cancer-associated it's the the are after there. and inhibitors. with checkpoint with predict that outcomes, different that wound a side, probably positive of respond attempt to the information a counterbalancing biology cannot we both of we're excels both. We've because of the with the tumor. powerful. make We're frankly gone done inhibitors The more get the the experiment same And the positive great much question It's that have that some subset poised genes signal there's the the alone sort and or of on actually the information requires repressive alone. It that

the really this world, they're tumor So needle sample. when when you of in the do testing, samples, you core what knows fraction get real who biopsies, they

more those because signal sampling we're And deliver the assays algorithms getting side combine like error accurate with a negative positive the side, diagnostic an both and can problem often. the to big is result the so from this,

it's counting competing that together like has forth that that we has looks so a out either DetermaIO number and biology. it we biomarker. more even this that effective. to of Again, that used ways burden and of clearly the there, combination at mutation than The a method are the So in data one give though of mutation there's the information add it has fact tumor least those real more controversial IAC And PD-LX of analyzing different way a have lot so make challenging think alone. thing markers is been antibodies it, of of been regardless problems just burden in Tumor and make very mutation different in non-standardized. far, is interesting may because

conjunction works, it better degree DetermaIO. the your with to mutation So works that in

Stephen Unger

as as needs but as if does understand targeted lung to be on getting for could speaking to is EGFR And as one labeling is the reimbursed? that EGFR just this adding far reimbursed, product? change cancer a more, far happen you patients, then -- to treatment early I testing what adding add Great. within need stage I start of concerned, for

Ronnie Andrews

we'll at doc and we'll as the order both do them as What all. a so Not will EGFR them bills. test, build EGFR. separate and both second DetermaRx We'll run add is

Padma Sundar

and those build codes we and that's that's CPT all needed. existing Our

Stephen Unger

Thank Excellent. you.

Ronnie Andrews

Thank you, Steve.

Operator

We Piper Sandler. have Please sir. Steven go Mah, from ahead, a question

Steven Mah

Hey on guys congrats are you getting. traction the Great. guys, Thank you.

Mitch Levine

Thanks, Steve.

Ronnie Andrews

Thanks, Steve.

Steven Mah

Yes.

So quick question.

answered couple. the group, my questions have So been most by but of just a

the of of I surgeons the how can or have not those potentially are see you actually may XX% do candidates DetermaRx, the [indiscernible] they is your in maybe some rate expectations, define even reorder Because given though with reorder actual and launch that rate? the early On didn't physicians stage for candidates. have line

And of Maybe little just more prescribe so a they color DetermaRx. therefore bit on that. couldn't

Ronnie Andrews

comparable the is to really ahead the of early question, in got Yes, XX% XX% they In years, I first about the Oncotype in than years. Steve. Great its couple -- world their community. and academic well XX% we DX mean less have is in the XX% only of

in out, the it the the to group average and the XXs to we're they were So XXs on bring which we're in board. and community, typically hardest across is

that. by encouraged very we're So

unfair know We in they is point, percentage. But count terms us reordered opportunity to time have may market they than an your reordered. look that the of to for be That also a haven't of certain Oncotype. that is deemed way at metric a if period in determining are this we not smaller the it to

be your point, these it could And to that continue a right but are have number -- patients So often. or good XX% than to now patients that is we'll monitor it, surgeons for us. that higher these stage see low-risk really don't we early given as

Padma Sundar

surgeries back we've come do One to and test. And these there's not trend are high performing very that To the satisfied there's surgery and quite surgeons with are eligible of the volume. order is the noticed point, they all your they result. the an that next patients whenever extent

not back and the that they And so usually we because the our ask, don't -- they done go the back [indiscernible]. not reps do sales makes for done have and if they come go do because a if and they've while haven't it's surgery, we surgery test,

Steven Mah

your are two yes, And a And appreciate a you sort Got many is follow-up quarter? they're it. of like that this Can in or the on sense of giving early maybe how or it some of three give reordering. just but I surgeons us …? stages,

Ronnie Andrews

-- XX,XXX don't top only and X the of basically year patients XX,XXX six don't quarter, the -- type stage a but they're off XX have salvage sorry, doing these you quarter, they to doing or XX the academic but networks, as not about many academic X Yes, when get with treatment this head, there's but virtual I get your a I'm to see that more we'll Padma, when centers And of know I space. typically community the patients. see we mean, a the see more, you territories, larger they're these six because capabilities. centers of given in given to reps late to

Steven Mah

Germany useful. also side, and great. Yes, China. have intending on you were then the you to And Okay, have distributors. distributor I Latin Chronix in your go to DetermaRx, that's then tend America yes, into on you guys remember,

You have that give your earlier or but you deal. get in or us like prepared about we talking and can are mentioned right XX But remarks, -- the you to timing? a months, for sense months

Ronnie Andrews

just would coming you'll tuned, see months. say I think I if few stay over something the Yes, conservatively, you

go market. important it's of that given don't sure the get large you know some We of intricacies when some typically and you have we to patent/IP the been that very it's market you and protections have of the close, a but Chinese make market into as

come that careful be tests trade back to and to have we see us. We don't parallel these

very, but of Steve. I close, pretty very we're those the So think clauses do negotiations become important,

Steven Mah

Okay, that update. switching DetermaIO. my helpful. That's remember guys mean, go And planning ex-U.S you one, you using IVD kit. I give I quick if last were to mentioned a great. also an can then you gears to over

Ronnie Andrews

potential version now PCR numerous -- have test. for the have we the Yes, we of suitors

to increased I think it either interest. democratized you pharma's boarded we to PCR run for version on everyone -- drug, can in knows [indiscernible] can network their see globally distribution or get we the in patients run need and given a do it we

our to be on we just is Asia and right want plus and to to we Switzerland product own pick the or do Europe be ride just one totally exist instruments PCR decision across and that parts where do it in now go. get we to of our transparent we XX,XXX the try be and one Our sell honestly,

definitely regulations the be there's Europe eager before in mark interest next year. that, are to and regulatory of kit to deep but this see challenge, become will discussions IVDR we're part that hit So around we which sometime late and start

to hear that more enter you'll So we -- about than likely. QX as more we're going

Steven Mah

Okay, great. Thank you.

Operator

question sir. from have Please We Jackson, ahead, Bruce Benchmark The a go Company.

Bruce Jackson

you Thank my Hi. question. for taking

Ronnie Andrews

Bruce. Hi,

Bruce Jackson

[technical only some thing so test, more a a this hey, -- with doing you're So talking now looking got getting difficulty] to going Fondazione that clinical a get from need you've to you enough you right it DetermaIO to in might at research get data? test about this Italy. use data Is to study Michelangelo,

Ronnie Andrews

going to just we're press need but sources want on retrospective there it. mass Yes, talk you of lot have multiple really critical activities of more data, full samples. that some But the the comment gaining were we we to [ph] on didn't a a core about and there? we Doug,

Dr. Doug Ross

Yes.

but we to obviously drug the trial. very Milan negative you upon really as role say, I mean, associated the in checkpoint I could inhibitor a important study therapy the get study, And neoadjuvant play into there, think think indication is with breast a a So major new triple and depending that's cancer. results the we

come those results we'll And see how so out.

to In patients terms for obviously those right candid, market drugs cancer are accessing one biomarker of, the with and inhibitors be general, independent in market, now a getting this in checkpoint to way. biggest

PD-LX mostly out came associated staining. they Although with

their In drugs. use fact, their the you've that's benefits, in obviously optimizing late costs. and if drugs way it's their And of to those cancer, side both that terms access a evolved got of find can a lung stage to you not get effects the

well checkpoint been that a whether use or what if guidance make checkpoint cytotoxic a the reimbursed. not inhibitor perhaps as immune folks how to difficult adding toxic convincingly demonstrate or will given the So -- reimbursement therapy. alone, side folks can as and that given incremental some a we can we've are inhibitor sick approach is cytotoxic effects agent the robust get If decision feel we're combined we to is help that of with by have these that very we therapy we other as is that incremental a how information, information,

performance putting that mutation plan efforts is tumor relevant. we're us diagnostics. retrospective assemble relative data and burden said, other demonstrate that and our when our as our regardless both reimbursement that's companion to take So allow to And Ronnie as to for complimentary together as PD-LX well it of cohorts in

Ronnie Andrews

Yes.

clinical of once have with target that the in on that to for we're all and use targeted up have So, now as targeted to try really to well as we because that are current Bruce, as decisions, run QX we for of will data sort go-to-market therapy IO we'll bringing middle panel, both be by targeted the together. the you DetermaIO with requirements idea panel might imagine, the clinical QX

are that bringing between somewhere already so DetermaTX reimbursed as the up you it, $XXX,XXX. at And and we'll might $X,XXX probably panel. as targeted those call be imagine, we'll

market for So Padma And us, as eligible both. in want QX also that'll as we're have next that the patients therapy IO. decision be of conjunction. who and enter here both but bring year a for be voice the make they between hearing we those positions an revenue We'll we to stream of in additional target that's run IO, might of

Padma Sundar

Yes, absolutely.

will and get questions single lab who all one answer therapy. the So to that their become that it's -- on immune needs will we

experiment, then big results, RNA and get you also. So usual answered that that's have the sample, DetermaIO get from you EGFR your the you then the $X,XXX with you in panel, will reimbursed extract as [indiscernible] question same PMB your [indiscernible] range,

targeted give I the decide, chemotherapy? should single a with that's able report, therapy immune should Should the So to or I I test will pick be vision. doctor So therapy? the start just

Ronnie Andrews

That's our vision.

Bruce Jackson

great. progress. That’s all congratulations on Anyway, the much. very Thank you

Ronnie Andrews

Thanks, Bruce. We appreciate it.

Operator

reached I'd Andrews remarks. call Ladies the and like Ron we've back And the of to end question-and-answer closing gentlemen, turn to session. the for

Ronnie Andrews

third on have thanks everyone. that We your at an We a of know been long know going got a exciting We appreciate work patience. lot us lots still was it both we hope OncoCyte. quarter. Yes, ahead everyone. here stakeholders hard I call. It's look are call guys working safe. Thanks, stay you our deliver to we forward our you all joining you our we appreciate and just to on and update for We and continuing and to shareholders. growth, of

Operator

conference. concludes This today's

your this may at thank your participation. You for time, disconnect you lines and