OncoCyte Corporation (NASDAQ:OCX) Q4 2022 Earnings Call Transcript

Mark Massaro: Okay. Yes. That makes sense. And then just a couple of clarifying questions on when you think you might be able to get Palmetto MolDX coverage for DetermaIO. And then I know DetermaCNI seems to be more of a 2024 development initiative. When do you think that CNI might commercially launch?

Joshua Riggs: The best I can say on CNI right now is sometime in €˜24 if things line up. There is a blanket LCD out there that we believe covers the approach that CNI takes to patient management. But that’s €“ it’s a little bit far out for us right now as we kind of brought our cost structure down significantly to really put everything we can behind DetermaIO and transplant this year. As far as IO, we submitted that back in December. And again, that’s kind of a €“ we expect the 9-month to 12-month process on that. It is a de novo submission for MolDx. So, this is a novel test for them to take a look at. Those can have longer timelines. I would say the earliest we could possibly see that would be probably Q4, but we may get surprised.

Mark Massaro: Okay. And then maybe one for Anish, I think I heard that the planned cash burn in the second half of the year will be sub-$6 million. Is it fair to think that the cash burn in the first half of this year will be a little bit higher than $6 million? Just curious if you could clarify that and what some of the factors are that might be puts and takes to that number?

Anish John: Yes. No, it’s a great question. I mean I think we had previously guided to sub-10% in the first half of €˜23. And obviously, with net cash used in operating activities in the fourth quarter being of €˜22 being 9.7, we were ahead of that. There are a couple of things that we need to see the full effect of with respect to the €“ well, two major pieces. One was the over 40% reduction in our staff, which occurred in €“ was announced in December, right. So, you are going to start seeing the impact of that as well as part of that the divestiture of our Rx business. So, I mean I think the sub-10 burn is clearly something that’s very achievable. We do think that guiding to the second half at this point we are really safe that sub-6, I think is a reasonable estimate at this point.

Mark Massaro: Alright. Excellent. I will hop back in the queue.

Joshua Riggs: Thank you, Mark.

Operator: Thank you. Our next question comes from the line of Mike Matson with Needham & Company. Please proceed with your question.

Unidentified Analyst: Hi guys. This is Joseph on for Mike. Thanks for taking our questions. I guess maybe to start off, can you maybe discuss the early adopter program a little bit for VitaGraft? I guess maybe how many physicians or sites are involved in this? I think you gave maybe some metrics on that in the past. But if you could talk about some of the metrics around like reordering or maybe some of the feedback from physicians, especially if they have potentially used a competitor test and the differences between them? And then I guess maybe the same or similar question for DetermaIO, that early adopted program if possible. And then if I could just add something on there for clarification. In terms of DetermaIO, submission to MolDX, was that for triple-negative breast cancer as well as lung cancer, I believe those were the two you are talking about in the past. Thank you.