Personalis (PSNL) 7 Aug 24 2024 Q2 Earnings call transcript

Personalis, a leader in the MRD (minimal residual disease) testing market, reported a strong second quarter performance with revenue growth of 35% year-over-year, reaching $22.6 million. The growth was primarily driven by the biopharma business, which grew 117% year-over-year, reflecting the increasing demand for the company's tumor profiling product and MRD product, NeXT Personal.

CEO Chris Hall emphasized the company's focus on turning Personalis into a clinical diagnostic powerhouse, with a strategy centered on MRD testing. The Win-in-MRD strategy, which includes focusing on cancer types where ultrasensitive approaches provide significant value, driving reimbursement, leveraging deep relationships, and commercializing NeXT Personal, is expected to drive Personalis towards $100 million in revenue by 2025.

The company's biopharma business has been particularly successful, with strong demand for the tumor profiling product used to create personalized cancer vaccines and the MRD product. The ImmunoID NeXT platform is also driving revenue through translational research and personalized therapy development. The partnership with Moderna is a key driver of revenue for Personalis in 2024 and 2025.

Financially, Personalis reported a net loss of $12.8 million for the second quarter, with cash and short-term investments of $87 million. The company aims to expand gross margin, which currently stands at 35.6%, and is optimistic about future growth driven by the Tempus partnership and reimbursement approval.

During the call, executives addressed investor concerns, including the potential impact of Moderna's PCD securing FDA approval, the incentive structure for Tempus selling NeXT Personal, and the potential for NeXT Personal reimbursement. The company expressed confidence in its strategic partnerships and the potential for continued growth in the MRD testing market.

In conclusion, Personalis' second quarter earnings call underscores the company's strong position in the MRD testing market and its strategic focus on driving growth through innovation and partnerships. The company's financial performance, coupled with its ambitious growth plans, positions it well for continued success in the rapidly evolving healthcare sector.