CareDx (NasdaqGM:CDNA) FY Conference Transcript

CareDx FY Conference Summary Company Overview - Company: CareDx (NasdaqGM:CDNA) - Date of Conference: December 03, 2025 - Key Speakers: CEO John Hanna, COO Keith Kennedy Key Points Industry and Company Performance - CareDx reported strong growth across all business segments in Q3 2025 - Testing Services: Up nearly 19% year-over-year - Patient and Digital Services: Grew by 30% - Lab Products: Increased by 22% - The company's strategy focuses on solution selling, enhancing efficiency for transplant centers, and post-transplant monitoring [2][4][5] Product Launches and Innovations - Launched AlloSure Heart for pediatric patients and validated it for simultaneous pancreas and kidney transplants [4] - Introduced HistoMap and AlloSure Plus, enhancing monitoring capabilities for clinicians [5][6] - Evidence generation from studies like AlloSure 2 and AlloSure 3 supports product adoption and demonstrates the effectiveness of their tests [6][21][22] Revenue Cycle Management - Achieved record cash collections in Q3, with over 120% of revenue collected in cash [9][10] - Focus on operational excellence and automation in revenue cycle management [9][10] - Targeting a blended revenue per test of $1,000, with a 10% increase anticipated [10] Capital Allocation Strategy - Generated $35 million in cash last quarter, with $75 million used for share repurchases [16][18] - Aiming for a 20% EBITDA margin and a disciplined approach to capital allocation [18][20] - Preference for share buybacks due to perceived undervaluation of stock [20] Regulatory and Market Dynamics - Draft LCD proposal from Medicare includes coverage for surveillance testing, with potential revenue impacts discussed [38][39] - Two scenarios outlined regarding the finalization of the LCD, with a focus on increasing testing frequency for better patient outcomes [40][41] Future Clinical Studies and Product Pipeline - Plans for additional publications on AlloSure and HeartCare in 2026 [27] - Ongoing trials for AlloSure Lung and Acrobat for stem cell transplantation, with results expected in 2026 [27][43] - Anticipated launch of HistoMap Kidney in early 2026, enhancing diagnostic capabilities for rejection types [49] Competitive Positioning - CareDx differentiates itself by offering a comprehensive solution set, including software products and services tailored to transplant centers [31][32] - The company emphasizes its role as a leader in the transplant space, focusing on clinician and patient support [35][36] Conclusion - CareDx is positioned for continued growth with a strong product pipeline, effective revenue management, and a clear strategy for capital allocation and market expansion [2][4][9][16][18]