Renalytix PLC Q2 2022 Earnings Call Transcript

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

Question: Daniel Macek - Stifel - Analyst : Hi, guys. It's Daniel Macek on for Dan Arias. Thanks for the questions and thanks for laying out some important milestones and metrics today. That was really helpful. So, first on Mount Sinai, I know you guys mentioned that the target of the number of tests per week. I'm just wondering kind of where you exited in the quarter versus the goal of 300 per week and where that is now? And then how should we think about that number when we consider other health partnerships that are coming online? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 31, 2022 / 12:30PM, RENX.L - Q2 2022 Renalytix PLC Earnings Call

Question: Daniel Macek - Stifel - Analyst : Yes. Thanks, James. You mentioned the positive physician response. So, you gave that time to first order from -- going from 11 to three days. That sounds positive. But can you just explain that metric to me. I want to make sure I understand it. And then another similar metric you previously given was the adoption rate. You said, I think it was like 80 -- within Mount Sinai. I think it was like 80% of physicians that ordered KidneyIntelX ordered again. Can -- to make sure I'm right with that. And then also where is that number now? Is that still sounding positive, maybe more positive? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 31, 2022 / 12:30PM, RENX.L - Q2 2022 Renalytix PLC Earnings Call

Question: Daniel Macek - Stifel - Analyst : Great. That's helpful. And then last one from me. You mentioned this cost effectiveness economic model. Could you just provide some details on what we might see and on the timing on that? And then also when might we expect some real world evidence from Mount Sinai, and any update on what metrics we might expect to see? If you can provide that (inaudible). Thanks.

Question: Daniel Macek - Stifel - Analyst : Great. Thank you, guys.

Question: Anita Dushyanth - Berenberg Capital Markets - Analyst : Hi. Good morning. Thanks for taking my questions. I just have a couple here. I was wondering if what kind of catalyst would you look forward in 2022 that might sort of help drive adoption of KidneyIntelX? And also if you could talk about when you might be confident in providing guidance in this adoption from the second half perhaps? And also just one more related to the FDA decision, and is that required? I understand that reimbursement is probably more of driving faster. But just wondering if you could -- KidneyIntelX would remain as an LDT, and still be successful? Thank you.

Question: Anita Dushyanth - Berenberg Capital Markets - Analyst : Sure. Thanks for the color, James. I'm just wondering what kind of key catalyst we should be looking forward to (inaudible).

Question: Anita Dushyanth - Berenberg Capital Markets - Analyst : Thanks, James. That was very helpful.

Question: Yi Chen - H.C. Wainwright - Analyst : Hi. Thank you for taking my questions. My first question is, is the KidneyIntelX revenue recorded in the quarter directly proportional to the volume of tests conducted in that quarter?

Question: Yi Chen - H.C. Wainwright - Analyst : So, what is the current reimbursement collection rate for the tests conducted on commercial basis?

Question: Yi Chen - H.C. Wainwright - Analyst : Yes.

Question: Yi Chen - H.C. Wainwright - Analyst : Got it. And you mentioned that going from 16 VHA health centers to 60 centers by the end of this year. So, how many physicians are available in 60 centers ready to prescribe KidneyIntelX test, and what is the volume we can look forward to?

Question: Yi Chen - H.C. Wainwright - Analyst : Okay. And lastly, do you expect the quarterly operating expense to increase in coming quarters?

Question: Yi Chen - H.C. Wainwright - Analyst : Thank you.

Question: Mark Massaro - BTIG - Analyst : Hey, guys. Thanks for taking the questions. I wanted see if you have any updates with Medicare. And I apologies if I missed this, I joined the call little bit late. But any update from whether it's Palmetto, Noridian, NGS or First Coast, and I'm just curious if you've billed Medicare and if you've received any type of payment from them at this time.

Question: Mark Massaro - BTIG - Analyst : Okay. That's helpful. And I guess for the commentary that you plan to meet or exceed 20 healthcare systems. How of those are VA hospitals versus maybe systems that you're planning to add that you're not yet contracted with at this time?

Question: Mark Massaro - BTIG - Analyst : Okay. Sure. And maybe just my last question. I know that you're not prepared to initiate guidance today. So I -- but on the other hand, we are pretty much done with the March quarter there. So, you had a nice lift sequentially in Q4, $200,000 lift, but the March quarter would suggest another million on top of that. I think at 1.7 is consensus for March and I think 9.4 is consensus for fiscal year of June. So, recognizing that we're pretty much done with March, for the purposes of just not having significant surprises, can you just comment about whether or not you think consensus is aligned appropriately or should we sort of bake in a little bit of wiggle room as you kind of operationalize the business in the early launch and maybe bake in some additional conservatism relative to where the street is?

Question: Mark Massaro - BTIG - Analyst : Okay. Is there any way to get an update on your go-to-market strategy? I think you've talked about scaling the (inaudible) as well as MSLs, but can you give us an update and could you also comment on your funnel of potential new health systems?

Question: Mark Massaro - BTIG - Analyst : Oh, yes. The number of salespeople and just how you're planning to add MSL to support the territory reps.

Question: Mark Massaro - BTIG - Analyst : Okay. Great. Congrats on the progress as well as the finances.

Question: Jens Lindqvist - Investec - Analyst : Hi. Hi, everyone. Just a couple of gap filling questions maybe. First of all on the consented RAPID biorepository, you may have mentioned this, but just to understand. What patient data goes into this database? Does this scale with a number of patients tested on a commercial basis or is it an entirely separate endeavor? I understand that not all records in RAPID or generates more commercial testing. But what I'm curious about is what proportion of commercial tests entered the RAPID database please, just to understand how it works? And secondly on EHR integration, again, just so I'm clear. Could you just confirm, please, which health systems are currently linked up in this manner and to what extent this is determining the pace of the rollout, particularly in the VA rollout? And then finally on the gross margin, assuming scaling in line with realistic expectations, where could we see this going over the next few years? Thank you.

Question: Jens Lindqvist - Investec - Analyst : Okay. I understand that.

Question: Jens Lindqvist - Investec - Analyst : Okay. Great. That's okay. Thank you.