Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: In our checks, we have noticed that private dermatologists usually prefer DecisionDx-Melanoma, but dermatologists in academic centers are still hesitant to order more broadly before guideline inclusion. Do you agree? How should we think about the opportunity in the absence of guideline updates? A: Derek Maetzold, CEO: The feedback from your interviews seems contrary to the 1,800 new first-time ordering clinicians in 2024. While some clinicians may have settled into a sweet spot, we saw substantial growth in new first-time ordering clinicians. Outside of a few NCCN centers, we don't hear much feedback regarding guideline inclusion affecting personal decisions.
Q: When should we expect reimbursement updates for the atopic dermatitis gene expression profile test planned for launch by the end of 2025? A: Derek Maetzold, CEO: Assuming successful validation study results, we aim to launch in late 2025. The reimbursement strategy will be developed over the next several quarters, focusing on patient outcomes and fair reimbursement. Material revenue is not expected until 2028 or 2029.
Q: On TissueCypher and getting the New York State Department of Health approval, what percentage of the addressable market does New York State represent? A: Derek Maetzold, CEO: I don't have the exact percentage, but demographically, it should be similar to New York's population percentage of the overall US population.
Q: What's the commercial strategy for DecisionDx-SCC while resolving reimbursement issues? Will you continue to offer the test? A: Derek Maetzold, CEO: If we lose coverage, it will be disappointing for patient care. If there's a short-term path to regaining reimbursement, we may continue offering the test. If not, we'll balance shareholder impact and patient needs. We don't plan to remove the test completely.
Q: Regarding strategic opportunities with capital allocation, should we consider existing or new verticals? A: Derek Maetzold, CEO: We focus on investing in current commercial efforts and exploring external opportunities. While it's easier to expand within current verticals, we're open to new areas if they offer strong upside.
Q: With SCC likely disappearing from the topline, how should we think about adjusted EBITDA for 2025? A: Frank Stokes, CFO: We expect to remain adjusted EBITDA positive for the year, but haven't provided specific guidance on the scale.
Q: Is there any residual from non-Medicare payers and private pay on SCC? A: Frank Stokes, CFO: There is not significant private or commercial payment for SCC; it's still very early.
Q: How should we model SG&A for 2025? Is the salesforce expenditure increasing? A: Frank Stokes, CFO: We've expanded the TissueCypher salesforce, reflected in Q4 numbers. We'll continue to invest in the salesforce as we see penetration, but no sweeping changes are expected.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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