Exagen(US:XGN)2021-11-13 17:48Financial Data and Key Metrics Changes - Total revenues for Q3 2021 were $12.3 million, a 14% increase compared to Q3 2020 [23] - Testing volumes for AVISE CTD, including AVISE lupus, grew approximately 21% year-over-year to 31,742 tests delivered [23] - The net loss for the quarter was $7.2 million, compared to a net loss of $4.3 million in Q3 2020 [27] Business Line Data and Key Metrics Changes - AVISE CTD test revenue was $9.9 million in Q3 2021, up from $7.4 million in Q3 2020 [24] - Other testing revenue was $2 million in Q3 2021, slightly down from $2.1 million in Q3 2020 [24] - Total gross margin was 55% in Q3 2021, down from 60% in Q3 2020, primarily due to decreased SIMPONI co-promotion revenue [25] Market Data and Key Metrics Changes - The number of ordering healthcare providers reached a record of 1,969 in Q3 2021, compared to 1,665 in Q3 2020 [23] - AVISE tests are now available to approximately 68.9 million in-network lives across the U.S. [12] Company Strategy and Development Direction - The company is focused on expanding coverage and in-network status, recently signing an agreement with Inland Empire Health Plan to provide AVISE testing to 1.4 million members [11] - The company is investing in R&D to develop multiomics and expand its total addressable market across multiple indications [14] - The company aims to enhance its SLE monitoring test with additional lupus nephritis markers [19] Management's Comments on Operating Environment and Future Outlook - Management noted that the pandemic created a bottleneck in patient referrals from primary care to specialists, impacting testing volumes [32] - The company remains confident in its ability to secure more payer contracts and expand its market presence [44] - Management reiterated revenue guidance for the full year 2021 of approximately $47 million to $49 million, expecting to come in at the lower half of the range [29] Other Important Information - The clinical lab expansion is on schedule for completion by Q1 2022, with R&D lab expansion expected by Q2 2022 [20] - The company has hired a new Chief Technology Officer to lead the development of its RA pipeline initiatives [21] Q&A Session Summary Question: Changes in rheumatologists' activity and behavior due to COVID - Management noted that primary care became a bottleneck for referrals during the pandemic, affecting patient flow to specialists [32][33] Question: Market opportunity for AVISE MTX test and collaboration details - Management expressed excitement about the pilot with CVS and Aetna, emphasizing the test's role in personalized medicine [36][37] Question: Future payer contracts and reimbursement decisions - Management indicated that they are in queue with major payers and expect to continue moving forward with more contracts [41][44] Question: Seasonal impacts in Q3 - Management acknowledged that doctor vacations impacted patient visits, but emphasized that patients still require care [48][49]