CareDx(US:CDNA)2020-08-05 02:44Financial Data and Key Metrics Changes - In Q2 2020, CareDx reported revenue of $41.8 million, a 33% increase compared to Q2 2019, primarily driven by testing services revenue of $36.3 million, which grew by 41% year-over-year [11][28] - The net loss for Q2 2020 was $6.6 million, an improvement from a net loss of $7.8 million in Q2 2019, with a net loss per share of $0.15 compared to $0.19 in the prior year [31][32] - Non-GAAP net income was $1.7 million in Q2 2020, compared to a non-GAAP net loss of $0.1 million in Q2 2019 [32] Business Line Data and Key Metrics Changes - Testing services revenue increased to $36.3 million, while product revenue decreased to $3.3 million due to COVID-related restrictions [28][29] - Digital revenue contributed $2.2 million to the total revenue [12][28] - The RemoTraC service accounted for over 40% of patient results, indicating significant growth in remote testing capabilities [14][15] Market Data and Key Metrics Changes - Transplant volume was reported to be down approximately 7% year-to-date, but many transplant centers are returning to normal operations [49][70] - The company noted a significant increase in organ availability due to various factors, including cardiovascular deaths and overdoses, which could drive transplantation rates higher [70] Company Strategy and Development Direction - CareDx is focusing on expanding its direct-to-patient capabilities and enhancing its digital solutions to improve patient care in transplantation [12][41] - The company is committed to building a strong presence in community nephrology settings, expanding its reach beyond transplant centers [65][66] - The launch of the AlloCare app is aimed at improving patient compliance and monitoring, set to launch in September [46][47] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the remainder of 2020, highlighting the successful pivot to remote services during the COVID-19 pandemic [41][70] - The company anticipates continued growth in transplantation volumes as centers adapt to new protocols and patient needs [70] - There is a recognition of the shift from traditional biopsies to non-invasive testing methods, which positions CareDx favorably in the market [53][70] Other Important Information - The company closed Q2 2020 with a cash position of $211 million, bolstered by a successful public offering [26][38] - Adjusted EBITDA for Q2 2020 was negative $2.8 million, impacted by increased costs associated with RemoTraC and R&D spending [34][36] Q&A Session Summary Question: What are the future prospects for the RemoTraC program? - Management indicated that RemoTraC is well-received by patients and is expected to continue growing, although variability exists based on transplant centers' approaches to telehealth [44][45] Question: Can you provide an update on the transplant pipeline and the impact of the pandemic? - Transplant volume is recovering, with many centers returning to normal operations, and the company expects continued growth in the coming months [49][70] Question: What is the status of heart care reimbursement? - Heart care reimbursement is expected to progress towards a final coverage decision by the end of the year [58][59] Question: How are operating expenses affected by COVID-19 investments? - Operating expenses increased due to investments in RemoTraC and other initiatives, with expectations for continued investment in patient care management [71][72]