Fulgent Genetics Inc Q4 2024 Earnings Call Transcript

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

Question: David Westenberg - Piper Sandler Companies - Analyst : Hi, thank you for the question. I got a few. So I'll just start with Ming Hsieh, and the key milestones to look for in FID-007, endpoints and whatnot, the clinical trial is only going to cost $10 million and what we should expect at ACOG? And then just finally, do you see head and neck as the biggest opportunity? Or are you more excited about the indications afterwards?

Question: David Westenberg - Piper Sandler Companies - Analyst : Okay, got it. And this one -- I don't know if this one would be for Paul or Brandon. I'm guessing Paul here. On Q4, but you had a 14% year-over-year growth, that's really good growth. Can you talk about -- was there any onetime dynamics going on in the quarter that you got because you are guiding to a little bit of slowdown from that 14% in the following year?

Question: David Westenberg - Piper Sandler Companies - Analyst : Perfect. And then did I catch this right, did you say revised than on atomic pathology or did you say or precision diagnostics? And can you maybe talk about that 9% what happened, what the actual revised plan was that would drive the 9% sequential growth? That would be my last question. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 28, 2025 / 1:30PM, FLGT.OQ - Q4 2024 Fulgent Genetics Inc Earnings Call

Question: David Westenberg - Piper Sandler Companies - Analyst : Did I -- you mentioned there was a revised plan. I think you said on [10x], I think you were saying at the anatomic pathology, although it could have been precision diagnostics, but you've highlighted a sequential growth of 9% because of the revised plan. I was hoping you could dig in a little bit further in terms of what that revised plan was?

Question: David Westenberg - Piper Sandler Companies - Analyst : Thank you so much and congrats on the turning around of that business anatomic pathology. Thank you.

Question: Lu Li - UBS - Analyst : Good morning. Thank you for taking my questions. I guess like the first one, probably sticking to the guide. So 10% in 2025, but you just finished very good quarter as well. I wonder, specifically on position on diagnostics, you have like 23% year-over-year growth, but it seems like the 2025 will be lower. But you also have like a two new wins in VA, FMI. I wonder -- do we -- are we going to see any upside to the guide? Or is it more like a timing that will be like pushing back to 2026?

Question: Lu Li - UBS - Analyst : Yeah, I can hear you.

Question: Lu Li - UBS - Analyst : Got it. Understood. Can you give us a little bit update in terms of the VA hospital contract? What have you heard from the physician office? And how much of the revenue that you think will come in 2025?

Question: Lu Li - UBS - Analyst : Got it. And then another question going back to the AP. So you mentioned that you've spent a lot of new accounts for very long term on time, and that appears to be a good opportunity for you. I wonder how like -- how fast you can capture like all the accounts? And do you need to like keep increasing the sales representatives in order to maintain the kind of like the momentum like i.e., like eventually, what will be the optimal size of the sales drop in the AP business?

Question: Lu Li - UBS - Analyst : Got it. Thank you.

Question: Andrew Cooper - Raymond James - Analyst : Hi everybody, thanks for the questions. Maybe just first, you mentioned precision diagnostics having being a little bit light of where you had hoped on some slip out of new customer wins into the first quarter of '25. Can you give a little more context on the size of that? And how that plays out as you think about sort of low double-digit growth in the guide in precision diagnostics, especially in context of things like VA and Foundation and Novo launch that presumably could drive additional growth there?

Question: Andrew Cooper - Raymond James - Analyst : Okay, super helpful. Maybe shifting gears a little bit to that AP business, you mentioned some of the wins really stemming from the derm side of things. Is that where you had felt a little bit of pain when that business was kind of underperforming a little bit? And I ask that, meaning, is this recapture of share that had maybe gone away? Or is it capture of incremental and some of the other parts of the business continue to be maybe a little bit shy of where they had been a few years ago? And what do you need to do if the latter is the case to recapture that and get those other pieces of the business growing better as well?

Question: Andrew Cooper - Raymond James - Analyst : Okay. Helpful. And then maybe just one last one. I know you gave the color around the cost of some of the clinical trials in the pharma efforts. How should we think about the overall cash utilization from those efforts in 2025 and potentially beyond as you continue to push that pipeline forward ahead of any FDA approval or anything like that?

Question: Andrew Cooper - Raymond James - Analyst : Perfect, I will stop there. Thanks everybody.