GeneDx (WGS) Q2 2025 Earnings Call July 29, 2025 08:30 AM ET Company ParticipantsSabrina Dunbar - Director - IR & CommunicationsKatherine Stueland - CEO, President & DirectorKevin Feeley - CFOSubbu Nambi - Managing DirectorBrandon Couillard - Managing DirectorTycho Peterson - MD - Global EquitiesConference Call ParticipantsDavid Westenberg - MD & Senior Research AnalystDaniel Brennan - MD & Senior Equity Research AnalystWilliam Bonello - Senior Research AnalystMark Massaro - MD & Senior Equity Research Anal ...

GeneDx (WGS) Q2 2025 Earnings Call July 29, 2025 08:30 AM ET Speaker0Day and thank you for standing by. Welcome to the GeneDx Second Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during the session, you'll need to press 11 on your telephone.You will then hear an automated message advising your hand is raised. To withdraw your question, please press ...

GeneDx (Nasdaq: WGS) 2Q 2025 Earnings Presentation July 29, 2025 On average: 16 tests and 5 years before an accurate diagnosis Forward Looking Statements This presentation contains certain forward-looking statements within the meaning of the federal securities laws, including statements regarding our future performance, future operations, plans, objectives of management, and our market opportunity, including our expected full year 2025 reported revenue, volume, adjusted gross margin and adjusted net income. ...

Company Overview - GeneDx Holdings is a healthcare technology company that integrates AI and machine learning with clinical and genomic data, focusing on precision medicine and individualized patient care [7] - The company has a market capitalization of $2.29 billion and reported a revenue of $330 million with a net income of -$38.6 million for the trailing twelve months [6] Recent Financial Performance - GeneDx Holdings shares have appreciated by 141.5% over the past year as of July 11, 2025 [5] - The company reported a 42% year-over-year increase in revenue for the first quarter, driven by high volumes of exome and genome tests [9] - Revenue from exome and genome tests accounted for 82% of GeneDx's total Q1 revenue, with the net loss for the quarter shrinking to $6.5 million from $20 million in the prior-year period [10] Insider Activity - On July 11, 2025, Kevin Feeley, CFO of GeneDx Holdings, sold 5,278 shares, reducing his holdings to 3,392 shares, which represents approximately 0.01% of total shares outstanding [1][4] - This sale is consistent with Feeley's recent trading patterns, as it is near the median trade size for him over the last several quarters [3] Growth Catalysts - GeneDx has strong growth prospects, particularly following its acquisition of Fabric Genomics, which enhances its AI-driven test interpretations and expands its genomics testing portfolio [12] - The company is targeting a larger patient population by expanding testing to outpatient pediatrics, NICU patients, and newborns [11] - Management has raised its full-year revenue guidance to a range of $360 million to $375 million, up from the previous forecast of $350 million to $360 million [10]

Core Points - TTAM Research Institute has acquired the Personal Genome Service and Research Services business lines of 23andMe Holding Co. under Section 363 of the U.S. Bankruptcy Code [1] - 23andMe will continue to operate under TTAM, providing personalized DNA testing and research services while ensuring customer choice and data transparency [2] Company Information - 23andMe is a genetics-led consumer healthcare company focused on empowering a healthier future [6] - TTAM Research Institute is a nonprofit medical research organization dedicated to advancing understanding of DNA and enabling individuals to contribute their genetic information to scientific research [7]

Core Viewpoint - 23andMe Holding Co. has received approval from the U.S. Bankruptcy Court for the sale of its assets and ongoing business operations to TTAM Research Institute for $305 million, marking a significant step in the company's transition to a nonprofit model [1][2]. Group 1: Transaction Details - The sale includes substantially all of 23andMe's assets, such as the Personal Genome Service (PGS) and Research Services business lines, as well as the Lemonaid Health business [2]. - The transaction is expected to close in the coming weeks, pending customary closing conditions [1]. Group 2: Company Mission and Future - The acquisition by TTAM is aimed at continuing 23andMe's mission of helping individuals access and understand their genetic information for health benefits [2][3]. - TTAM, as a nonprofit, will focus on improving public knowledge of DNA and enhancing healthcare access globally [3]. Group 3: Customer Data and Privacy - TTAM is committed to providing customers with choice and transparency regarding their genetic data, including options to change their participation in research [3]. - The organization will adhere to 23andMe's existing privacy policies and implement additional consumer protections for customer data [3].

Core Insights - Juniper Genomics has launched a new health-tech platform aimed at improving the IVF process, supported by a $4.6 million seed funding round led by Company Ventures [1][6] - The company’s proprietary technology utilizes whole genome and transcriptome sequencing combined with trio analysis to provide comprehensive insights into embryo health, aiming to enhance the success rate of IVF procedures [2][3] Company Overview - Juniper Genomics was founded by experts in genomics, reproductive medicine, and bioethics, including Jeremy Grushcow (CEO), Carolyn Quinlan (VP of Bioethics), and Dr. Lee Shulman (Medical Director) [2] - The company’s mission is to reduce the emotional and financial burdens associated with IVF by providing clearer and more reliable information on embryo viability [5][6] Technology and Innovation - Juniper's testing method replaces traditional preimplantation genetic testing by analyzing thousands of genetic variants associated with IVF failure and other health conditions, offering a more detailed view of embryo viability [3][4] - Unlike existing tests that rely on polygenic risk scores, Juniper focuses on specific genetic changes that can lead to adverse pregnancy outcomes, providing a more accurate assessment for individual embryos [4][7] Market Position and Future Plans - The company is currently implementing its technology in early adopter clinics across North America, integrating its testing process into existing IVF workflows [5] - With the seed funding, Juniper plans to expand its commercial reach, enhance its bioinformatics and clinical teams, and continue developing its platform through research partnerships [6][7]

Business Overview - 23andMe operates with two business verticals: Consumer and Research[11] - The Consumer business focuses on personalized health services, ancestry, and recurring subscription revenue[13] - The Research business leverages the world's largest re-contactable genetic and phenotypic data engine for data licensing, target discovery, and research services for pharma[15] - The company has genotyped over 15 million customers, with over 84% of customers opting-in to research, generating 4.8 billion phenotypic data points[17] Consumer Health - Genetics plays a role in 8 out of the 10 leading causes of death in the US[24] - 23andMe helps consumers identify their genetic risks, with over 28,000 customers identified with BRCA1/BRCA2 variants and over 4 million with a higher likelihood of type 2 diabetes[32] - 76% of customers report taking a positive health action after learning about their genetics[33] - 23andMe offers direct access to care with Lemonaid Health Telehealth Services, including access to GLP-1 drugs for weight loss in a number of states[43, 47] Research and AI - 23andMe has a large biobank with over 9 million research participants with ILD data sharing consent and over 5 million biobanked samples[65] - The company is pursuing multiple approaches to integrate Claims and EHR data into its existing data ecosystem, with over 5 million 23andMe customers having both Claims and EHR data[67, 71] - 23andMe is investing in AI to drive the next wave of insights and value-creation, leveraging its large-scale, relevant, and unique data[93] Financials - In FY2024, PGS revenue was $168 million with subscription revenue of $20 million[57] - For the three months ended December 31, 2024, Consumer Services revenue was $40 million (66% of total revenue) and Research Services revenue was $21 million (34% of total revenue)[104] - Total revenue for the three months ended December 31, 2024, was $60 million, compared to $45 million for the same period in FY2024[104] - Total revenue for FY2024 was $220 million, with Consumer Services accounting for $202 million (92%) and Research Services accounting for $17 million (8%)[104] - The company has $216 million in cash to support its plans for targeted investment in high ROI growth initiatives[103]

Financing Overview - A total of 19 financing events occurred in Shanghai this week, with 9 disclosing amounts totaling approximately 976 million yuan [4][10] - The majority of financing events were concentrated in the Pudong New Area, which had 8 occurrences [4] - Angel rounds and Series A rounds were the most common, each accounting for 8 events [7] Hot Financing Highlights - Enjing Intelligent Control completed a strategic financing round of several hundred million yuan, led by Guotou Investment and followed by Xiaomi Technology. The company focuses on automotive intelligent access systems and has seen a 67% year-on-year sales growth in Q1 2025 [11][12] - Yizhi Electronics secured 250 million yuan in strategic investment from Hesheng New Materials, specializing in ARM server processor chips with applications in AI, cloud computing, and edge computing [13][14] - VAST, a 3D model technology developer, completed a multi-million dollar Pre-A+ round led by Beijing AI Industry Investment Fund, serving over 200,000 3D creators and 700 large enterprises [15][17] - Zhisheng Energy announced a successful 50 million yuan angel round financing, focusing on energy management solutions [18][19] - Yijian Health completed a 40 million yuan Series A financing, providing gene testing services and equipment [20][21] - DsLink, a generative AI model developer, raised 30 million yuan in angel financing from British Capital, focusing on industry-specific solutions [22][23] - YaoLe Technology secured several million yuan in strategic financing from Xiaomi Investment, specializing in flexible fabric tactile sensors [24][25] - KOPAI Robotics completed several million yuan in angel financing, developing humanoid interactive robots for various applications [26][27] - UPDF raised several million yuan in Pre-A+ financing, focusing on AI PDF editing software [28][29] Industry Focus - The advanced manufacturing sector saw 4 financing events this week, covering wearable devices, smart home technology, smart manufacturing equipment, and intelligent sensors [30] - The 11th China (Shanghai) International Technology Import and Export Fair was held, highlighting Shanghai's position as a leading hub for intelligent manufacturing solutions, with total industrial output exceeding 600 billion yuan [31] - The Ministry of Industry and Information Technology announced the "Artificial Intelligence + Manufacturing" initiative to accelerate smart upgrades in key industries [32]

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of GeneDx Holdings Corp. due to allegations of materially misleading business information issued by the company [1]. Group 1: Investigation and Allegations - The investigation is prompted by a report from Grizzly Research, which claims that GeneDx is involved in widespread fraud, manipulating Medicaid and Medicare systems to inflate revenue [3]. - Following the allegations, GeneDx's stock experienced a decline of 6.7% on February 5, 2025 [3]. Group 2: Class Action Details - Shareholders who purchased GeneDx securities may be eligible for compensation through a class action lawsuit, with no out-of-pocket fees due to a contingency fee arrangement [2]. - Interested parties can join the class action by visiting the provided link or contacting the law firm directly [2]. Group 3: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved significant settlements, including the largest securities class action settlement against a Chinese company at the time [4]. - The firm has consistently ranked in the top 4 for securities class action settlements since 2013 and recovered hundreds of millions of dollars for investors, including over $438 million in 2019 alone [4].