Release Date: August 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Quanterix Corp (QTRX, Financial) reported a total revenue of $34.4 million for Q2 2024, marking an 11% increase year-over-year.
- The Accelerator lab revenue grew by 35%, indicating strong demand for Simoa sensitivity without the need for capital expenditure.
- The company maintains a strong balance sheet with nearly $300 million in liquidity, supporting ongoing investments in growth.
- Quanterix Corp (QTRX) has commercialized three new assays this quarter, with plans to complete 20 by the end of the year, enhancing their leadership in neurology.
- The company has established new partnerships with major healthcare systems and labs, including Mount Sinai and UCSF, to expand Alzheimer's diagnostics.
Negative Points
- Instrument revenue decreased by 29%, reflecting a challenging capital budget environment.
- The Asia Pacific region, particularly China, saw a 36% decline in business, highlighting regional market challenges.
- Non-GAAP gross margin decreased by approximately 410 basis points compared to the previous year, due to investments in operations and quality framework.
- The company anticipates higher cash usage at the upper end of their previous guidance due to lower revenue impacts.
- Revenue from patient testing under the loosened platform was immaterial for the quarter, indicating slower-than-expected uptake.
Q & A Highlights
Q: Given the capital equipment weakness over the past year, have you considered any potential reagent rental or financing options for instruments to drive pull-through?
A: Yes, we have considered reagent rental programs, especially for customers with large consumable demand. Our accelerator program is a good offset for those without CapEx, allowing them to send samples to us.
Q: With the FDA approval of Lilly's Kisumla, can you discuss your relationship with Lilly and any feedback on using blood-based biomarkers to drive therapeutic uptake?
A: We are excited about the collaboration with Lilly on CertuitAD, which has resulted in a high accuracy test with a low indeterminate zone. This test evaluates patients as candidates for therapy, and we will continue to support and expand access.
Q: What feedback have you received on the multi-marker approach to Alzheimer's disease testing, and do you expect it to be used predominantly over the standalone p-Tau 217 assay?
A: The feedback has been positive, and we believe the future of blood-based testing will be multi-marker. Our multi-marker test reduces the intermediate zone while maintaining high accuracy, providing more certainty for symptomatic patients.
Q: How quickly can large healthcare systems ramp up testing, and will they perform testing internally or send samples to you?
A: Many partners have the capability to perform testing themselves, but they can also send samples to us if their capacity is exceeded. This flexibility is a unique aspect of the Quanterix Simoa offering.
Q: With the FDA approval of Denenemab, have you noticed an uptick in interest in your diagnostic portfolio, and are we nearing an inflection point for Alzheimer's drugs?
A: The drug ramp has been slower than anticipated, but with two FDA-approved therapies, we expect improvement. Blood-based testing will be key for first-line tests, and we are building infrastructure to support this growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
