LumiraDx Limited (NASDAQ:LMDX) Q4 2022 Earnings Call Transcript

Matt Sykes: Hi, good morning. Thanks for taking my questions. Maybe Ron, first one for you, just you made some comments in the prepared remarks about pipeline progress in the U.S. Could you maybe provide a little bit more color on what you’re expecting in terms of timing for tests? Obviously, knowing that the approval process is relatively uncertain, but how are you thinking about sort of non COVID test rollout in the U.S. as it relates to the regulatory process?

Ron Zwanziger: Well, so the — in the short term, we’re in a — as we mentioned, the ITAP program, specifically around COVID Flu A, Flu B. We’re working through that and are expecting for that to clear, which will help us in the flu season at the end of the year. We’re also submitting, which we also mentioned, for the first time a 510K on COVID, you may ask why COVID, when our entire focus of the company is on non-COVID? Well, it’s the issue is it’s the first time the agency will have seen our instrument and they’re obviously very familiar with our COVID test. So we’re submitting that one first. And with that — and then once that is done, we will be then adding, as we mentioned previously, additional tests with a focus on A1c, INR and also NT- pro at some point.

So, we expect to have those submissions and the clinical trials for those all done later this year and submit it in such a way that assuming everything goes smoothly, we have those to drive revenues in next year.

Matt Sykes: Got it. Thanks for that. That’s helpful. And then you mentioned the NHS helping you with sort of the non-COVID conversion that’s taking place there and redeploying those instruments. For other countries in Europe, are there other types of bodies similar to the NHS that can help you with that type of conversion or is it going to be more your own commercial efforts enacting that conversion in other countries? In addition, obviously, to the UK. But I’m just wondering if there is any tailwinds you can receive from NHS like bodies in other countries in Europe?

Ron Zwanziger: Well, that’s a very good question. We are actually underway — we focused on discussing the pickup in Central Europe, in Germany, Austria and Switzerland and then in — as well as, obviously, the UK. But yes, there are similar (ph) in our biggest European market, which is Italy. There is a similar program, which is slightly different. And we’ll talk about it more in the — later on. But in Italy, the situation is slightly differently and that we still in most cases own the instruments of that place. And so, it’s much more of the honest on us to work with the various authorities and moving them to the right locations. And that program is getting underway. By the way, the same is true in Africa where the strip revenues per instrument are very low, but there is a program there and we’re moving.

We started moving with our experimental programs around moving some of those instruments into non-communicable disease locations, so essentially meaning A1c initially. And so, that’s also going. So it is a very good question. We have a big focus on making sure that the instruments — that we get these instruments redeployed.

Matt Sykes: Great. Thanks. That’s very helpful. And then last one, Dorian, for you. Just on 2023, you kind of outlined the Q1 guide. I’m assuming that’s total. It looks like based on my math and correct me if I’m wrong that you did about $8.5 million in sort of non-COVID in Q4. Is that a base we should think about for non-COVID? Is there any kind of growth rates or kind of bars around that growth for non-COVID we should think about 2023?

Dorian LeBlanc: Yes. No, I think that is a good base that we expect to grow from there throughout 2023. So the difference in Q4 to Q1 and the decline is entire related to COVID and customer inventories from purchase of COVID late in Q4. So we would expect that base of $8 million is the core base that we grow from for the non-COVID products.

Matt Sykes: Okay. And any commentary on potential growth rate for that or is it too early?

Dorian LeBlanc: I think we’ll hold that for now.

Matt Sykes: Okay. Thank you very much for the questions.

Operator: One moment for our next question. And our next question will come from Vijay Kumar of Evercore. Your line is open.

Unidentified Participant: Hi. This is (ph) on for Vijay. So, Dorian, you gave out the 1Q revenue expectations. I was wondering if you could talk a little bit more about the cadence for the full year and how those numbers might ramp? And then, also in terms of your cash burn and you had previously stated that you were focused on exiting 2023 with breakeven cash flows. Can we still expect that? And sort of how are you expecting cash burn to look this year?