Biodesix, Inc. (NASDAQ:BDSX) Q2 2023 Earnings Call Transcript

And so for us, we really — we expect to get into that 10 to 20 tests per account or physician range. And then we go in and we focus on what we call kind of a clinical utility review with them to make certain that they understand how each test results not only impacted that individual patient, but potentially changed their approach. And so that’s resonated for us over time. But it’s a great question. It is critically important to us, and we see it equal value in not only getting ordering physicians to continue to order and continue to order more, but also for our sales professionals to go out and open new accounts.

Kyle Mikson: Okay. That was great, Scott. Thanks for that. And — so the nodule management side of the business continues to really drive a lot of this growth here. But I’m just curious, the other side where Strat — GeneStrat the treatment guidance. Can you talk about like the competitive dynamics that are happening in that market? And maybe like your penetration, how that has been progressing, as if you don’t really hear about that as much on these calls.

Scott Hutton: Yes. No, it’s a good point. The IQLung portion of our test, which includes VeriStrat, GeneStrat NGS and GeneStrat ddPCR. Thet GeneStrat portion is our genomic offering. We see and receive great value and feedback in offering both a broad-based NGS panel and the targeted ddPCR panel. I think where the greatest value is on the targeted panel is turnaround time, right? Getting the physician, those genetic results that they need in less than 36 hours. That’s critical, especially early-stage disease before you prescribe treatment. We introduced, as you said, the NGS test more recently and we felt like that complemented the ddPCR test. We are the only company out there offering both in that clinical setting. But again, I think part of our reach limitations are based upon focusing specifically on lung cancer.

So where the NGS test has a broader application. Our sales professionals have stayed kind of focused on lung cancer. And so we know that we aren’t expecting to hit significant competitive conversions and drive up that market share list on the NGS front. For us, it’s more about being that trusted consultative sales company that physicians go to for the answers they need in lung disease and lung cancer.

Kyle Mikson: Perfect. And on the gross margins, this is great to see the 73% low 70s, already kind of approaching mid-70s. And it sounds like we should expect low 70s going forward. So that is helpful guidance, I guess, just to model out. But I was just curious how the kind of tempered biopharma revenue is going to impact gross margins going forward too. I know it’s probably somewhat uncertain and hard to predict, but I was just curious if you guys could just comment on that.

Scott Hutton: Yes, it’s a great question, and I think you kind of answered it. It is uncertain because we did state that we’ve got $9.3 million under contract, we’re able to forecast and plan accordingly. And we have taken that into account. So when we state that we fully expect to stay in that low 70% range, that’s inclusive of the biopharmaceutical agreements that we currently have in place. Now as that — as our biopharmaceutical team is out there trying to get more contracts, that can obviously change and shift, but we don’t see that directionally, negatively impacting gross margins in the near future.

Kyle Mikson: Awesome. And then just a final one for me. Rob, you talked about the — you guys are moving into the facility. Is there any CapEx implications from that, or is it already kind of built out and everything?