Daxor Corporation (NASDAQ:DXR) Q4 2023 Earnings Call Transcript

It also can really be expanded to include the very large number of patients, for example, who are undergoing volume effective therapy for hypertension, just another population that involves 120 million patients a year. So if Daxor has such a such a massive market. What has been our strategy to try to make an effective inroad into that, and I’m going to go into that more. But first, I just wanted to set the stage of what’s at stake. And one of the things that’s been very important for the arc of the development of the company over the last several years has been, it’s not just enough to show that you have a more accurate diagnostic. You also have to actually then show does care guided by that more accurate diagnostic lead to better outcomes and what specific better outcomes are they?

Are they better clinical outcomes? Are they better health economic outcomes are they better quality of life outcomes. And the good news is that in Daxor’s case, more effective care which starts with having a very accurate diagnosis to guide the interventions that follow leads to an improvement in every single one of those areas. And that’s really what you want to see in an effective product offering for a company. Something that improves the clinical outcomes for patients, that means reducing the length of stay in the hospital, reducing their chances of readmission, reducing their mortality rate but also something that then leads to a more effective and efficient results for the providers. That means that the hospitals will spend less lining treating these patients and ultimately, the insurance companies, the payers will be on the hook for less as well.

And that’s something that we at Daxor or have been proud to be developing extensively. We’ve been gaining traction on that. Let’s talk briefly about the financial numbers. Bob, obviously just hit upon the highlights of what’s there. In our letter, we covered the fact that we’ve been seeing strong revenue growth for the company. Obviously, one of the challenges with Daxor is that we have been mandated to report as a 1940 Act company, which means we present a consolidated balance sheet across all of our investments, which includes the listed securities that we have as well as our fully owned operating company that we have. But I do want to give investors a sense of what our cadence of operations has been and how things have been improving. So quite specifically, between the second half of 2022 and the second half of 2023, we’ve seen our kit sales rise just to give a sense of that by a 437.4% (ph).

Obviously, that number means — so that’s the number of tests that have been sold. Our tests or test kits, which are single use test kits are sold either in the form of kits which are shipped to a hospital for use with their analyzer or they’re in the form of reference lab where the blood samples are sent back to Daxor’s clear certified lab for reporting results. Those types of tests are actually priced differently. The price for our tests in 2023 was $385 per kit and the hospital performed the test. That price has since been increased to $460 per test. So that’s for both new customers and for existing customers who don’t have price protection built in, which is the vast majority of them. So we’ve been able to effectively have a 20% price increase starting March 1.

So none of the numbers reflect that. We also introduced a so-called ezBVA lab in 2023. That’s a reference lab where the tracer that is injected into the patient is shipped in the hospital, the blood samples are sent back to us, that has been priced at $965 per test. And we’ve been seeing increasing uptick of that product as well. That really started to help particularly in the fourth quarter of 2023. What we’ve seen for the start of the first two months of 2024 has been a continued rise in the number of kits sold. So the first two months of 2024, we saw over a 95% increase in the number of kits sold versus the number of kits that were sold in 2023. So we’re seeing a very strong rise in the past, we’ve put out that over 65,000 kits have been sold to date.

That number certainly needs to be updated. It’s several years old, that number is at least 10,000 kits more now than it was in the past, and we should be updating that number as a reference. But we are seeing a really strong increase in that number of kits being sold. We’ll dive more into that later. Let’s talk about the number of accounts. So our sales have been rising through a combination of an increase in sales at existing accounts, meaning we’re penetrating deeper into these accounts. but we’ve also been adding new accounts. So we added a dozen new hospital accounts. One of the questions that I received was, do we count a hospital system as one account or do we count the individual hospitals in a hospital system as an account? The answer is the latter not the form.

So for example, if we sell it into a three hospital system, we would count each one of those hospitals individually as a so-called new site for the use of BVA because functionally, they really are. So just to give a sense of the increase in the business, we added 12 new accounts in 2023. Those accounts were a combination of sales, rentals and then services for the ezBVA lab. In the first two months of 2024, we added six accounts. Again, with a similar kind of combination. So just to give people an understanding of what’s going on, we’ve seen a very sharp increase in the number of accounts opened sales. There’s really been a pivot point in the business, I would say, from the third quarter of last year and the cadence of sales and the cadence of customer engagement has been much, much higher which in some ways was potentially surprising.