Financial Data and Key Metrics Changes - In fiscal year 2021, revenues increased by over 48% to €190 million compared to €128.4 million in 2020, primarily driven by COVID-19 testing which generated €146.4 million [23][24] - Core business revenue grew by 11% in 2021 to €43.5 million from €39.1 million in 2020, with a significant increase of 34% in Q4 2021 compared to Q4 2020 [24][11] - Overall gross margin for the company was 15% in 2021, down from 35% in 2020, largely due to the lower margins in the COVID segment [35][32] Business Line Data and Key Metrics Changes - The Diagnostics business grew 30% in Q4 2021 and 26% for the full year 2021, with revenues reaching €27.9 million in 2021 compared to €22.1 million in 2020 [12][25] - The Pharma business saw a revenue decrease of 8% year-over-year, from €16.9 million in 2020 to €15.6 million in 2021, although Q4 2021 showed a 40% increase compared to Q4 2020 [27][15] - The Diagnostics segment received an order intake of 57,000 test requests in 2021, a 37% increase from 42,000 in 2020 [25] Market Data and Key Metrics Changes - The company aims to expand its CENTOGENE Bio/Databank to reach 1 million individuals, having added approximately 94,000 individuals in 2021 [50][9] - The rare disease drug market is expected to grow at about 11% annually to $207 billion by 2024, with rare disease drugs capturing approximately 18% of worldwide prescription sales [52] Company Strategy and Development Direction - The company is focusing on three strategic pillars: biopharma partnerships, strengthening the CENTOGENE Bio/Databank, and enhancing the Diagnostics business [47] - CENTOGENE plans to leverage its Bio/Databank to add value to biopharma partners throughout their development plans, aiming to de-risk and accelerate pharma projects [52][54] - The company is also working on decentralization and innovation in its Diagnostics offerings, including the launch of new products and partnerships [58][59] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2022, expecting core business revenues to grow between 15% to 20% year-over-year, with a focus on execution and growth [60] - The company anticipates a relatively flat performance in Q1 2022, with stronger growth expected in the second half of the year as the Pharma segment accelerates [62] - Management highlighted the importance of improving operational efficiencies and reducing corporate expenses while supporting growth initiatives [42] Other Important Information - The company successfully raised approximately €62 million through combined equity and debt financing to strengthen its balance sheet [10] - The COVID-19 testing segment is being phased out, with an expected revenue of approximately €18 million in Q1 2022 before the complete phase-out [31][61] Q&A Session Summary Question: Cash burn and spending priorities for 2022 - Management indicated that the financing secured should extend the company's runway, with more specific details on cash burn expected in future communications [64][65] Question: Timeline for achieving the goal of 1 million samples in the bio bank - The company is on track to achieve the mid-term goal of 1 million patients, with healthy growth in the Bio/Databank [66] Question: Guidance for 2022 core revenue growth and expectations for Diagnostics vs Pharma - The company aims for core revenue growth of 15% to 20%, with a focus on increasing the share of Pharma in the core business [69] Question: Trends in the core diagnostics business and impact of Omicron - The business has been stable, with minimal impact from the Omicron variant reported so far [77] Question: Size of the Pharma outreach team and future additions - The company plans to increase its sales and project management teams to enhance outreach and project execution [79]
Centogene(CNTG) - 2021 Q4 - Earnings Call Transcript