Quanterix (QTRX) FY Conference August 13, 2025 03:30 PM ET Speaker0Hi. Welcome to the Canaccord Genuity Group Conference. I'm Kyle Mixon. I come for Life Science Tools Diagnostics for Canaccord. Really pleased to welcome you to this fireside chat with Quanterix.The company offers a really ultra sensitive protein measurement platform based on digital ELISA. With us from the company, we have Masud Tullu, CEO and Vandana Shiram, CFO. Thanks guys for joining us today. So Masud and Vandana, maybe just start out ...

Summary of Biotechni Conference Call Industry Overview - The life science tools industry is experiencing significant volatility due to macroeconomic factors and uncertainties, particularly in the U.S. and China [1][3] - The company has observed a recovery in the life science tools space, particularly in the pharmaceutical sector, which has shown double-digit growth across various geographies [3][4] Company Performance - The company reported double-digit growth in the pharmaceutical segment, which is widespread across its portfolio [4] - Academic revenue, which constitutes about 12% of total revenue, has been stable despite discussions of NIH budget cuts [5][6] - The worst-case scenario of a 40% cut in NIH funding would only result in a negative 1% impact on the company's projected growth rate over five years [6][7] Market Dynamics - Smaller biotech firms have been conservative in spending due to external market uncertainties, impacting their growth [9][10] - The pharmaceutical sector has seen a slight deceleration in growth rates from double digits to mid-single digits due to tariff discussions and pricing uncertainties [11][12] Academic Market Insights - Academic sales have remained stable despite concerns over funding cuts, attributed to the psychological impact on purchasing behavior [15][17] - Daily sales in the academic sector have shown stability over the past three months, indicating a return to normalcy [17] Instrumentation and Product Lines - The instrumentation segment, which accounts for about 20% of revenue, has seen growth driven by the biologics platform and specific products like the Maurice instrument [18][19] - The company is well-positioned in the bioprocessing market, with opportunities in biosimilars and other emerging markets [19][20] Tariff Impact and Mitigation Strategies - The company has low exposure to tariffs, with most of its reagents exempt from tariff increases [22][23] - Manufacturing strategies include moving production to Canada and stocking inventories in Europe and Asia to mitigate future tariff impacts [25][26] China Market Dynamics - China represents 88% of the company's revenues, and there are signs of a subtle shift towards optimism in customer demand [27][28] - The company is targeting the replacement of older instruments with newer technology, which is expected to drive growth [30][31] - Despite competition, the company maintains a strong position based on quality and consistency, which are prioritized by customers [34] Long-term Growth Outlook - The company remains bullish on long-term growth in China, driven by an aging population and ongoing scientific innovation [35][36] - The life science tools market is expected to grow significantly, with the company well-positioned to capitalize on these trends [37] Liquid Biopsy Segment - The liquid biopsy business is focused on scaling sustainably, with growth rates exceeding 20% [39] - The company is integrating exosome technology into its kit business, targeting multiple tests for disease monitoring [40][41] Spatial Market Position - The company is differentiating itself in the mid-plex spatial market by offering integrated solutions that combine molecular and antibody reagents [46][48] - The competitive landscape includes key players like Akoya and Molteni, but the company has a high win rate against these competitors [53] Margin Performance - The company achieved nearly 200 basis points of margin improvement year-over-year, although a contraction of approximately 150 basis points is expected in the near term due to tariffs and lower growth rates [54][55] - The long-term target is to achieve operating margins above 35%, supported by organic growth and effective cost management [55]

Core Viewpoint - The research led by Professor Lu Yuming highlights the impact of chromatin accessibility on the clearance rate of plasma DNA through the kidneys, suggesting new diagnostic methods for diseases with renal manifestations [3][9]. Group 1: Liquid Biopsy and Non-Invasive Testing - Professor Lu Yuming is recognized as a pioneer in the field of liquid biopsy, particularly in non-invasive prenatal testing, having discovered fetal cell-free DNA in maternal blood as early as 1997 [2]. - The non-invasive prenatal diagnostic technology based on DNA analysis has been widely adopted in over 100 countries, benefiting approximately 10 million pregnant women annually [2]. - The recent development of the FRAGMA technology enables the detection of multiple cancers through blood tests, advancing liquid biopsy into the whole-genome era [2]. Group 2: Research Findings on Urinary Cell-Free DNA (ucfDNA) - The study published in the journal Med reveals that chromatin accessibility states affect the renal clearance of plasma DNA, potentially through size limitations of the glomerular barrier [3][9]. - The research identifies two types of ucfDNA: renal ucfDNA (filtered through the kidneys) and urinary tract ucfDNA, highlighting their distinct characteristics [5]. - Analysis of 136 ucfDNA samples from various groups (healthy controls, pregnant women, chronic kidney disease patients, and bladder cancer patients) provided insights into fragmentomic features, including fragment size and 5' end motifs [5][6]. Group 3: Implications for Disease Detection - Renal ucfDNA is primarily derived from open chromatin regions, while urinary tract ucfDNA exhibits unique fragmentomic characteristics [6][7]. - The study indicates that in patients with proteinuria (e.g., preeclampsia, chronic kidney disease), levels of ucfDNA from heterochromatin regions increase, suggesting a correlation with glomerular permeability [6]. - The effectiveness of bladder cancer detection is significantly enhanced by analyzing low methylation signals from heterochromatin regions, achieving an AUC of 0.93 [6]. Group 4: Broader Impact and Recognition - Professor Lu Yuming's contributions to medical science have garnered international accolades, including election to the Royal Society and the National Academy of Sciences, as well as prestigious awards such as the Future Science Prize and the Lasker Award [14]. - His research is considered a strong contender for the Nobel Prize, with significant implications for cancer screening and risk prediction [14].

Financial Data and Key Metrics Changes - The company reported Q1 revenue of $203.5 million, a 21% year-over-year increase [7][28] - Oncology revenue grew 20% year-over-year to $150.6 million, with volumes increasing 25% to approximately 59,000 tests [29][30] - Non-GAAP gross margin improved to 65% from 63% year-over-year, driven by better ASPs and reduced costs [34] Business Line Data and Key Metrics Changes - Oncology business revenue increased 20% year-over-year, with Guardant360 and Reveal being the main growth drivers [29][30] - Biopharma and data revenue also grew 21% year-over-year, totaling $45.4 million [31] - Screening revenue from Shield reached $5.7 million, driven by approximately 9,000 tests [32] Market Data and Key Metrics Changes - Guardant360 ASP improved to the range of $3,000 to $3,100, benefiting from better reimbursement rates [9][30] - Shield received ADLT status, increasing its Medicare price from $920 to $1,495, effective April 1 [20][54] - The company expects Shield revenue to be between $40 million and $45 million for 2025, up from previous guidance of $25 million to $30 million [37] Company Strategy and Development Direction - The company aims to support patients throughout their cancer journey, focusing on early detection, monitoring, and treatment selection [5][6] - There is a strong emphasis on expanding the oncology portfolio and enhancing the capabilities of both liquid and tissue tests [12][16] - The company plans to reinvest gross profits from Shield into commercial infrastructure to accelerate growth [40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving cash flow breakeven by 2028, with cumulative cash outflow expected to be between $450 million and $550 million over the next three years [36][40] - The company anticipates continued growth in oncology volumes and ASPs, driven by recent product upgrades and Medicare coverage [37][39] - Management highlighted the importance of both liquid and tissue testing modalities, suggesting that both will become standard care for patients [72] Other Important Information - The company achieved gross margin positivity for both Reveal and Shield in Q1 2025, with significant cost reductions [32][33] - The Guardant360 Tissue test was launched, requiring 40% less tissue than competitors, enhancing its market appeal [12][71] Q&A Session Summary Question: Can you rank the opportunities for Guardant360's growth? - Management noted strong growth driven by product upgrades and market fit, with Reveal also showing accelerating growth [45][46] Question: What are the components of the raised guidance for Shield? - Management discussed the positive impact of ADLT status and the potential for increased sales force productivity [49][50] Question: What is the ASP for Guardant360 and how does it relate to Medicare? - The ASP for Guardant360 is now expected to be between $3,000 and $3,100, with improvements from Medicare Advantage reimbursements [59][60] Question: What is the market share for the new tissue product? - Management indicated that the new tissue product is expected to capture significant market share due to its unique features and capabilities [98]

Financial Data and Key Metrics Changes - In 2024, the company recorded $1.2 million in revenue, a growth of 59% over 2023 [28] - Revenue from the NUQ VET cancer test was $0.8 million, growing by 75% compared to the prior year [28] - Operating expenses were reduced by 23% year-on-year, with second half operating expenses down 31% [30] - Net cash used in operating activities was $25.9 million in 2024, compared to $18.1 million in 2023 [31] Business Line Data and Key Metrics Changes - Approximately 120,000 NUQ VET cancer tests were sold in 2024, more than double the sales in 2023 [28] - Revenue from the NUQ Discover pillar was approximately $400,000, with a year-on-year growth of 40% [29] - The company recorded its first revenue from the NUQ NETS, marking a significant milestone [29] Market Data and Key Metrics Changes - The NUQ VET cancer test is now available in over 20 countries, expanding access significantly [18] - The point-of-care market is noted to be less than 20% of the total market, indicating growth potential [22] Company Strategy and Development Direction - The company aims to sign multiple licensing deals in 2025, focusing on human applications of its technology [11] - There is a strong interest in potential out-licensing and supply agreements for both NUQ NETS and the oncology portfolio [12] - The strategy includes raising non-dilutive funds, ramping revenues, reducing expenses, and signing commercial deals with large industry players [74] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving cash neutrality on a full-year basis by 2025 [27] - The company is at a pivotal juncture, ready to revolutionize diagnostics for both animals and humans [12] - Management highlighted the importance of automation in centralized labs to accelerate growth [22] Other Important Information - The company received approximately $1.8 million in non-dilutive funding from Belgian institutions during 2024 [33] - The NUQ platform has shown broad applicability across various established platforms, enhancing its market potential [14] Q&A Session Summary Question: Update on the feline cancer testing program - Management confirmed that the feline cancer testing program is on track for completion later this year, with a milestone payment of $5 million expected upon completion [80] Question: Discussion on the Leon study and its implementation - Management indicated that there are plans for prospective studies following the results of the Leon study, with potential rapid adoption in cancer programs [86][90] Question: Insights on quarterly sales trends and outlook for 2025 - Management noted that sales were lumpy due to large customers ordering in batches, but solid growth was achieved with 120,000 tests sold [100] - Automation in central labs is expected to open up larger opportunities in 2025 [101] Question: Approach to managing financing risks - Management emphasized a tight grip on expenses and cash flows while focusing on securing licensing agreements [112] Question: Activity and interest in data rooms for licensing agreements - Management reported that the data generated exceeded expectations and has been crucial in energizing discussions with major companies [118]

近日，癌症早期检测公司 Dxcover 宣布已成功完成 620 万美元（约合4519万人民币） 的 B轮融资 。 公司的核心技术与产品为 Dxcover PANAROMIC 平台 ，这是一种基于多组学光谱分析（ MOSA-Dx™ ）技术，通过 红外光谱 和 人工智能算法 分析血清样 本，可在一天内完成检测，识别早期癌症（I期和II期）及其前驱病变。 与传统液体活检方法不同，该技术不仅依赖肿瘤DNA，还利用循环全组学生物标志物进行检测，能够更早发现癌症。 其特点如下： 1. 全面的多组学分析 与通常关注循环肿瘤 DNA （ctDNA） 等特定生物标志物的传统液体活检不同，MOSA-Dx™ 分析血液样本的整个分子组成。这包括 非遗传生物标志物 ，这 些生物标志物经常被其他方法所忽视。 通过将傅里叶变换红外 （FTIR） 光谱与 AI 驱动的机器学习算法相结合，Dxcover 捕获更广泛的生化信号，从而能够更早、更准确地检测癌症。 本轮融资由 Eos Advisory 和 SIS Ventures 等现有投资者以及 Macmillan Cancer Support 和 Maven Capital Partners ...