Joseph Flanagan : This is Joe on for Max. At a recent investor conference, you stated that you believe GeneDx will be able to own about 17% of the $3 billion pediatric and rare disease TAM by the end of the year. A couple of here, but I was curious, what percent do you own today and what must get accomplished in 2023 to get to about 17% by year-end? And then kind of how are you expecting that to translate to your top line?
Kevin Feeley : So the 17%, I’d say, is what we believe is addressable. It may not in this year, result in a shift to exome, but more so that’s the percentage of patients in the market that we’d expect to have genetic testing. The amount of share we own in particular in an inpatient setting today, it’s extremely low. We think that is the white space in which we can fill whereby less effective tests are either being ordered or not ordered at all from a genetic perspective. So the total share in that regard low single digits today. What I would note is roughly 80% or more of all exomes produced by commercial laboratories in the U.S. in the last 12 months were run by GeneDx. And we would note that roughly 94% of all pediatricians in the U.S. who ordered an exome ordered it from GeneDx in the last 12 months.
And so we know that when some has been ordered, GeneDx who dominates that space, now it’s incumbent on us to effectively make a conversion for those such tests to be first in mind diagnostic given the clinical and economic benefits rather than where it’s been reserved in the past, which is, frankly, a test of last resort that’s leaving patient care behind.
Katherine Stueland : Thank you for clarifying that. And I would just further remind people that as we think about the pediatric segment, you’re right on. There’s two segments there, one of inpatient, our rapid testing one is outpatient, which is fast, but it’s not our rapid, that outpatient opportunity is the predominant focus, and it’s a massive opportunity for us. So I think the inpatient is truly in its nascency. There’s some really good, I would say, competitive focus in that area. So we know that it’s an important element of the strategy moving forward, and that’s going to be one that we have to continue to build with more and more data, including SeqFirst and other collaborations like that.
Joseph Flanagan : Got it. And then part of the issued guidance was a turn to profitability in 2025. I was curious if you could just speak to a rough revenue or gross margin level that would allow GeneDx to get past that breakeven for…
Kevin Feeley : Yes. I mean we haven’t provided specifics on the out years per se. But I think in large part, it comes with confidence that the base level product in which we aim to make our predominant product that being exome and whole genome operates at 60% today, we know we have room to improve that. And so with mix evolution and then further improvements to drive exome, then further upside to the base diagnostics business is building that relatively nascent data business that we have today. The data business today represented about 5% of total company revenue from continuing operations in 2022, we expect it to stay at about that level of proportionate total company revenue in ’23. But the deals that we’ve been signing recently, all operating in that 70% to 90% margin range. So as we see the data business start to make meaningful contributions to our business, it will help us evolve towards a level of profitability in early 2025.
Operator: Thank you. I would now like to turn the conference back to Katherine Stueland for closing remarks. Madam?
Katherine Stueland : Excellent. Well, thank you all. We appreciate all of the good questions. Excited to spend this year, providing important updates on our progress and continuing to educate investors about the important role that we are playing in diagnosis of disease, opening up access to it, having a healthy business and really staying focused on driving the kind of volume that is good for patients, but also good for our company. And we look forward to talking to you at a future conference. Thank you.
Operator: So this concludes today’s conference call. Thank you for participating. You may now disconnect.