Accelerate Diagnostics(US:AXDX)2024-05-08 23:50Financial Data and Key Metrics Changes - Net sales for Q1 2024 were approximately $2.9 million, an increase from approximately $2.8 million in the same period last year, driven by an increase in recurring consumable net sales [6] - Gross margin decreased to approximately 25% from approximately 36% in the prior year, attributed to product mix [6] - Selling, general and administrative (SG&A) expenses were approximately $5.7 million, down from $10.1 million in the prior year, primarily due to lower employee-related expenses and non-recurring legal costs [6] - Research and development (R&D) expenses were $5.2 million, down from $7 million in the prior year, due to lower employee-related and third-party development expenses [7] - The net loss for the quarter was approximately $14.2 million, resulting in a loss per share of $0.74 [7] - Cash used for the quarter was approximately $9 million, excluding cash raised from a January equity offering [7] Business Line Data and Key Metrics Changes - The Wave program is positioned to disrupt the microbiology susceptibility testing market, which is estimated at close to $2 billion and growing at about 6% annually [8] - The PBC market represents about $800 million, while the isolate market is approximately $1 billion [8] - Wave offers a consolidated platform that can process both PBC and isolate specimens, with features such as same-shift results and high throughput workflow [8] Market Data and Key Metrics Changes - The company is focusing on expanding its market presence in both the US and EMEA regions, targeting over 500 accounts in its sales funnel [10] - The company aims to secure long-term contracts for Wave, which is expected to improve patient care and hospital economics [10] Company Strategy and Development Direction - The commercialization strategy for Wave includes extending leadership in the rapid PBC AST market, expanding the available market by launching an isolate menu, and pursuing geographic and technology expansion [12] - The company is also developing a Gram Positive PBC menu and plans to partner with pharmaceutical companies for drug discovery [12] - A global partnership to commercialize Wave is a key part of the strategy, with robust interest from multiple partners [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the team's ability to manage technical and timeline risks associated with clinical trials and FDA submissions [9] - The company is focused on reducing operating expenses and cash burn in the coming quarters [7] - Management highlighted the positive feedback and strong interest in Wave from current and prospective customers [8] Other Important Information - The company submitted a 510(k) to the FDA for the Arc system, which is the first automated PBC sample preparation method [11] - The preclinical trial for Wave is ongoing, with clinical trials targeted to start towards the end of the second quarter [9] Q&A Session Summary Question: Details on customer conversations regarding Wave - Management noted ongoing dialogues with customers, highlighting the high throughput and rapid results of Wave compared to competitors [17] Question: Transition process for customers to new products - Management explained that Wave offers optionality for customers with existing molecular platforms, allowing integration with rapid susceptibility testing [20] Question: Update on Bruker collaboration - The collaboration with Bruker is progressing positively, with the Arc system currently under FDA review [23] Question: Progression with CD collaboration and its impact - Management reported contracting 12 new Pheno instruments and bringing eight live, enhancing market penetration for rapid susceptibility testing [26]