Biodesix, Inc. (NASDAQ:BDSX) Q4 2022 Earnings Call Transcript

We think it’s also a nice blend, as you said, between large and small biopharmaceutical companies. And then we also look at that portfolio and say what’s the blend between genomics and proteomics as a multi-omics company. Historically, the majority of our testing has been more genomic. And that remains the case both under €“ dollars under contract and those requests were proposal, but we’re also seeing a nice increase in proteomic interest. So, we think there’s a good balance there. I think when we look at what’s going on, we’re also monitoring clinical studies, what’s going on with them. had recently canceled or closed the study. That was on the smaller end and that was one of the smaller biopharmaceutical companies and contracts we had.

So, not a huge impact, but any of those retrospective samples we look at and say, it’s really about getting the sample, getting access to those in a timely fashion. Prospective studies that are negotiated this year, obviously, those are dollars that have been budgeted and prioritized by those pharmaceutical companies. So, we think we’ve got a nice blend. The dollars under contract gives us great excitement and enthusiasm about the long-term potential. So, really, we’re looking for a big year on the biopharmaceutical front. And it’s nice to, kind of put as much distance between the pandemic as we can because we think that was a big disruptor to biopharmaceutical studies.

Unidentified Analyst: Great. And thanks, Scott. And if I can squeeze one more in, with ALTITUDE data expected this year, assuming success, do you anticipate that to serve as an upcoming inflection point for the CDT XL2 adoption?

Scott Hutton: That’s a great question. We definitely believe that it can. It may be presumptuous for us to speculate on how impactful it can be, but it really is a first of its kind and first-in-class prospective randomized study. There has not been a study conducted like this with pulmonologists focused on lung. So, for us, we think that that sets the standard. Now, obviously, we’ll look at what the performance readouts look like. But we do think that that can benefit us both with commercial adoption, payers, and then don’t want to speculate too much, but as we look forward longer-term towards guidelines and impacting decision making, we think this will be one of the key leading indicators of that. So, we’re very bullish on the study.

I referenced earlier with Kyle’s question, the last months, we’ve had record enrollment. If we continue to maintain that, I do think there will be an opportunity for an interim analysis this year, but it’s really going to be dependent upon the number of patients we can enroll in the first half. And I think the optimal time for us is usually going to be around that October, November timeframe when we’re at the American College of Chest Physicians Annual Meeting.

Unidentified Analyst: Thank you very much.

Scott Hutton: Thank you, Yuko.

Operator: Our next question comes from Andrew Brackmann from William Blair. Your line is open.

Andrew Brackmann: Hi, Scott. Hi Robin. Good morning. Thanks for taking the question. I joined a little late, so apologies if these have been addressed. But obviously, you guys have done a really nice job on the Medicare and sort of government side of things with payer wins, but can you maybe just sort of talk about some of the commercial plans in those conversations, just sort of give us a temperature check on how those conversations are going with private payers? Thanks.

Robin Harper Cowie: Yes. Thanks, Andrew, and good morning. Yes, the private payer conversations are going quite well. I think, we’re focusing more heavily on our newer products, Nodify XL2 and Nodify CDT, although absolutely having conversations on the IQ Lung front, but we’ve noticed an interesting dynamic with private payers around the nodule management products in that they are absolutely seeing a need. So, they know that patients are being diagnosed later stage and that’s bad for the patient, of course, but very expensive for the payer. And they also understand that there are unnecessary and ineffective interventions occurring. So, definitely seeing the utility benefit for these tests. And I think that the latest successes that we’ve announced the first four and then continuing success out in the field really validates the view of the utility.