Renalytix PLC Q1 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Mark Massaro - BTIG - Analyst : Hey guys. Thank you for the questions. And Howard, it's nice to hear from you. Thanks for providing your background. Maybe if we could -- there's a lot of ground to cover. So, I know, Howard, you talked about the initial states that you're targeting. Just maybe for folks that might have missed everything that you ran through, can you just remind us what the territories are? And then I know you had a sales team on the ground previously. Are you basically looking to optimize that commercial team of 14? So I'm just curious where you are in terms of making potential changes to that team?

Question: Mark Massaro - BTIG - Analyst : Okay. And I know you guys were previously working with EVERSANA. Is that partnership still active? Or how should we think about that going forward?

Question: Mark Massaro - BTIG - Analyst : Excellent. Okay. I could use maybe a little bit of help to understand why the payment from NGS was stopped. And then I believe it's now resumed. Good to see the payment here in November. But maybe can you provide a -- maybe just an update as to why the payment was suspended? Did it have something to do with the CAC and the LCD discussion?

Question: Mark Massaro - BTIG - Analyst : Okay, great. And then it is very nice to see First Coast come on. Looks like they are paying claims. Maybe could you just remind me, if you're pursuing an LCD with First Coast, and what timing might look like there?

Question: Mark Massaro - BTIG - Analyst : Okay, great. And maybe last question for me. I know you don't need it, but it might be nice to have to have the national coverage determination. Can you just clarify the comments you made? Have you submitted for that? And can you just maybe brief us on any conversations you've had, with respect to both the filing and perhaps the expected timing of obtaining an NCD?

Question: Mark Massaro - BTIG - Analyst : No. Tom, I really appreciate that. I followed everything, and I appreciate all of those updates. So I will hop back in the queue. Thanks, guys.

Question: Paul Stewardson - Stifel Financial Corp. - Analyst : Yes, good morning. Just calling in for Dan Arias. I'm just wondering if you can give some color on what to expect once this Atrium Health Wake Forest health system gets online next month with the integration? Can you talk about how that's going to roll out in terms of, you know, reimbursement rates initially and over the course of the next few quarters, as well volumes? And if there will be a bit of a pause, or what we can expect to see for the next few quarters as that kicks in? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 14, 2023 / 1:30PM, RENX.L - Q1 2024 Renalytix PLC Earnings Call

Question: Paul Stewardson - Stifel Financial Corp. - Analyst : Understood. Thanks for taking the questions.

Question: Randy Baron - Pinnacle Associates, Ltd. - Analyst : Good morning. I have one question for James, and then one for Howard. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 14, 2023 / 1:30PM, RENX.L - Q1 2024 Renalytix PLC Earnings Call James, I just would love you to drill into the first bullet point that you addressed, which is the fundraise. I mean, you said you're going to hopefully be funded through calendar '26. I'm just curious what that means in terms of directionally? As much as you can give us -- the size of the range, or range for the size of the range -- what your cash burn is going to be per quarter, assuming no ramp in sales, et cetera? Whatever you can share. And Howard, my question for you, now that you're in the company is, as you've looked through the business, and just in a layman's perspective, what do you think the number one hurdle that Renalytix needs to overcome to achieve sales is, and why has that not been overcome yet? And I get you're scaling the sales force, et cetera, but any kind of anecdotal stuff you can give us, or how that could change going forward would be helpful. Thank you.

Question: Randy Baron - Pinnacle Associates, Ltd. - Analyst : And just on that note, James, before Howard goes, what do you think directionally? Not to a number, but just directionally, how much lower is cash burn going with all -- I mean, if I pencil out the math that OJ talked about, like how much lower? Does it go to $6 million? Does it go to $5 million a quarter? Does it go to $2 million? Just directionally.

Question: Randy Baron - Pinnacle Associates, Ltd. - Analyst : And just so I'm clear, that would assume de minimis sales growth? Or what does that assume in the sales line to get to $1 million by 2026?

Question: Randy Baron - Pinnacle Associates, Ltd. - Analyst : Okay. And Howard, I'd love your take on kind of why sales haven't happened and what you think is changing?

Question: Randy Baron - Pinnacle Associates, Ltd. - Analyst : Thank you.

Question: Jens Lindqvist - Investec - Analyst : Yeah hi. I've got two or three questions, perhaps. Firstly, on the Klinrisk model, which also made some headlines during Kidney Week, and also mentioned alongside kidney inflection in the draft KDIGO guidelines. Could you provide any more color on this? Does clean risk represent a competitive threat to KidneyIntelX at all? And if not, why not? And secondly, on the planned cost reductions, just to make sure that I understand it correctly. Could you just confirm over what period this will be achieved? Does this refer to the current financial year versus last year? Or are these the level of annualized savings that are ultimately achievable past [this onward up]? Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 14, 2023 / 1:30PM, RENX.L - Q1 2024 Renalytix PLC Earnings Call

Question: Jens Lindqvist - Investec - Analyst : Yes, no, it was really on the on the timing of the planned cost reductions. Whether the cost you're referring to refer to the current financial year versus last year or these are annualized savings to be achievable over time? Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 14, 2023 / 1:30PM, RENX.L - Q1 2024 Renalytix PLC Earnings Call

Question: Jens Lindqvist - Investec - Analyst : Okay, thank you. Could I just have one final question, sorry to take up too much of your time. Just doing the maths on the pricing of billable tests, you get a number significantly below the $950 per test. Could you perhaps elaborate a little bit on what discounts are being applied at the moment? Because my understanding was at Mount Sinai was paying full price. Thank you.

Question: Jens Lindqvist - Investec - Analyst : Okay. Thank you.