Volition(VNRX)2024-11-15 16:47Financial Data and Key Metrics - Revenue for the first nine months of 2024 reached $1 million, a 96% increase compared to the same period in 2023 [34] - Q3 2024 revenue grew by 187% year-on-year, reaching $475,000, driven by Nu Q Vet cancer test sales [34] - Nu Q Vet cancer test sales grew by 100% year-to-date and 307% in Q3 2024 compared to 2023 [34] - Over 110,000 Nu Q Vet cancer tests were sold in the first three quarters of 2024, nearly double the total sold in 2023 [8][34] - Operating expenses decreased by 28% in Q3 2024 compared to the same quarter in 2023 [35] - Cash used in operating activities was $5 4 million in Q3 2024, down 36% year-on-year [35] - Cash and cash equivalents at the end of Q3 2024 totaled approximately $5 4 million [36] Business Line Data and Key Metrics - Nu Q Vet cancer test is now available in 17 countries, with revenue growth accelerating quarter-on-quarter [10] - Year-to-date revenue growth for Nu Q Vet is 100%, with Q3 revenue up 307% compared to 2023 [10] - Revenue from veterinary kits and key components reached approximately $730,000 year-to-date [10] - Fujifilm Vet Systems achieved nearly 10% market penetration among veterinarians in Japan within a quarter of launching Nu Q Vet [11] - VetLab Poland and Heska (under Antech) have also made significant progress in distributing Nu Q Vet in their respective markets [12][13] Market Data and Key Metrics - Nu Q Vet is now available in 15 countries through Antech's distribution channels [13] - Japan represents a significant market for Nu Q Vet, with Fujifilm Vet Systems achieving rapid market penetration [11][45] - The U S market for Nu Q Vet is estimated at 25 million dogs, with a global opportunity of a similar size [48] Company Strategy and Industry Competition - The company aims to be cash-neutral by 2025, with significant progress made toward this goal through revenue growth and cost reduction [33][37] - The focus is on securing licensing deals in the human clinical space, with strong interest from key industry players in sepsis and oncology liquid biopsy [38][39] - The company is leveraging its success in veterinary diagnostics to commercialize human-focused technologies, including Nu Q NETs and Nu Q Cancer [40][41] - Non-dilutive funding from the Walloon Region, Belgium, and anticipated future funding support the company's financial strategy [36][37] Management Commentary on Operating Environment and Future Outlook - Management highlighted the strong progress in revenue growth and cost reduction, positioning the company well for cash neutrality in 2025 [33][37] - The company is optimistic about the potential for licensing deals in the human space, which could provide significant milestone payments and ongoing revenue [40][51] - The Nu Q NETs test for sepsis has generated significant interest, with potential to be a game-changer in sepsis management [28][31] - The company is exploring opportunities to include Nu Q Cancer tests in national lung cancer screening programs, particularly in Taiwan and other Asian markets [21][51] Other Important Information - The company welcomed new board members, Timothy Still and Dr Ethel Rubin, who bring extensive experience in the diagnostics sector [42] - The company is actively publishing scientific papers and presenting at conferences to strengthen its data room and support licensing discussions [30][31] - The feline testing milestone for Nu Q Vet is still in progress, with ongoing optimization for lower nucleosome levels in cats [78][80] Q&A Session Summary Question: Market dynamics and penetration in Japan - Fujifilm Vet Systems has achieved nearly 10% penetration among veterinarians in Japan, with strong marketing and distribution efforts [44][45] - Japan is a significant market, comparable to a large U S state like California, with high spending on pet care [45] Question: Revenue guidance and growth potential - Revenue growth is strong but can be lumpy due to the nature of distributor stocking and sell-through [47][63] - The company expects to ramp up to millions of tests annually, with a target market of 25 million dogs in the U S and a similar opportunity globally [48][49] Question: Cash neutrality and business segment self-sufficiency - The goal is for each business pillar to support itself through revenue and licensing deals, with significant progress made toward cash neutrality [54][55] - Licensing deals in the human space are expected to contribute to cash flow neutrality in 2025 [55][56] Question: Cost reduction progress - Operating expenses have been reduced by 28% in Q3 2024, with further reductions expected [57][58] - Approximately half of the $10 million cost-cutting program has been implemented, with full savings expected in 2025 [68][69] Question: Feline testing progress - Feline testing is still in development, with optimization for lower nucleosome levels in cats nearing completion [78][80] - Clinical utility studies for feline testing are expected to follow once the technical challenges are resolved [80] Question: Data rooms and licensing discussions - The company is using ShareVault to track data room activity, with significant interest from large diagnostic and oncology players [72][74] - Licensing discussions are progressing well, with potential for milestone payments and ongoing revenue from human-focused deals [74][75] Question: Upcoming data publications and presentations - Two large publications on sepsis are expected to be submitted by the end of Q4 2024 and early Q1 2025 [83] - Additional papers on oncology, particularly lung cancer, are also in progress [85]