Volition(US:VNRX)2023-05-11 17:29Financial Data and Key Metrics Changes - The company ended Q1 2023 with cash and cash equivalents of approximately $10 million, down from $10.9 million at the end of 2022 [8] - Total operating expenses for Q1 2023 were $9.2 million, an increase from $7.8 million in Q1 2022, primarily due to increased R&D expenditures related to U.S. clinical trials [10] - Revenue for the Nu.Q Vet Cancer Test grew by 381% to $124,000, contributing to total revenue of approximately $150,000 in Q1 2023, compared to $114,000 in Q1 2022 [11] Business Line Data and Key Metrics Changes - The Nu.Q Vet Cancer Test is now available through IDEXX's reference lab network and Heska's Veterinary Diagnostics Laboratory, marking significant commercial progress [14][15] - The company is focusing on expanding the Nu.Q Vet product into the mainstream market, targeting approximately 84 million pet dogs in the U.S. [16] Market Data and Key Metrics Changes - IDEXX plans to roll out the Nu.Q Vet Cancer Test to Canada, the UK, EU, and Australia in the second half of 2023, with potential interest in Asia [41] - The SAGE partnership has facilitated access to the Asian market, with ongoing discussions with reference labs in Southeast Asia [42] Company Strategy and Development Direction - The company aims to make canine cancer screening and monitoring accessible worldwide, with a strong focus on the Nu.Q Vet and Nu.Q NETs products [20] - The company is also investing in the background of epigenetics and the development of its Nu.Q platform for human cancer diagnostics [33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the positive reception of the Nu.Q Vet Cancer Test among veterinarians and the potential for significant revenue generation [27] - The company anticipates a gradual increase in orders for the Nu.Q Vet Cancer Test, although it may be somewhat lumpy due to the rollout schedule [28][29] Other Important Information - The company received approximately $8 million in net proceeds from a public offering in February 2023 and expects to receive an additional $13 million in milestone payments [9] - A peer-reviewed paper on the Nu.Q Vet Cancer Test was published, highlighting its utility in monitoring canine lymphoma, which could open new market opportunities [17][18] Q&A Session Summary Question: Insights into ordering patterns from vet labs - Management does not have formal data but reports positive feedback from partners regarding the utilization of the test across over 45 states [27] Question: Ordering trends and potential lumpiness - Management expects ordering trends to be somewhat lumpy as labs roll out the test at different times, with a gradual increase anticipated [28][29] Question: R&D expenditure increase - The increase in R&D expenses is primarily due to U.S. clinical trial activities focused on Nu.Q NETs, with expectations for Q2 expenditures to be lower than Q1 [31] Question: Update on Heska pre-sales - Management is unable to provide an update on Heska pre-sales at this time but anticipates being able to do so in the next quarter [36] Question: IDEXX commercialization plan outside the U.S. - IDEXX is targeting Canada, the UK, EU, and Australia for the Nu.Q Vet Cancer Test rollout, with potential interest in Japan [41] Question: Update on the SAGE partnership - The SAGE partnership has been beneficial, leading to significant interest and discussions with other reference labs in Asia [42] Question: Status of the Discover program - The Discover program is not a primary focus currently, but the company continues to pursue contracts and partnerships in this area [44]