Personalis Inc (PSNL) 2023 Q3 法說會逐字稿

Good afternoon and welcome to the Personalis third quarter 2023 earnings conference call. All participants will be in a listen only mode. (Operator Instructions) Please also note this event and this event is being recorded today. I would now like to turn the conference over to Caroline Corner, Investor Relations. Please go ahead.

下午好，歡迎參加 Personalis 2023 年第三季財報電話會議。所有參與者將處於只聽模式。 （操作員說明）另請注意此事件，並且今天正在記錄此事件。我現在想將會議交給投資者關係部門的卡洛琳‧科納 (Caroline Corner)。請繼續。

Thank you, operator. Welcome to Personalis third quarter 2023 earnings call. Joining today's call are Chris Hall, Chief Executive Officer and President; and Aaron Tachibana, Chief Financial and Chief Operating Officer; and Rich Chan, Chief Medical Officer and EVP, R&D. All statements made on this call that do not relate to matters of historical fact should be considered forward-looking statements within the meaning of the US securities laws.

謝謝你，接線生。歡迎參加 Personalis 2023 年第三季財報電話會議。執行長兼總裁 Chris Hall 參加了今天的電話會議；財務長兼營運長 Aaron Tachibana；以及首席醫療官兼研發執行副總裁 Rich Chan。本次電話會議中發表的所有與歷史事實無關的聲明均應被視為美國證券法含義內的前瞻性聲明。

For example, any statements regarding trends and expectations for our financial performance this year and longer term cash runway, revenue expectations and timing, reimbursement goal, size and booking of orders, product services, technology, clinical milestones, the outcome and timing of reimbursement decisions, expectations for our existing and future collaboration activities, cost expectations, the outcome of legal proceedings to enforce patents, the validity or enforceability of our patents and our market opportunity business outlook.

例如，有關我們今年財務業績和長期現金跑道的趨勢和預期、收入預期和時間表、報銷目標、訂單規模和預訂、產品服務、技術、臨床里程碑、報銷決策的結果和時間表的任何聲明、對我們現有和未來合作活動的期望、成本預期、執行專利的法律訴訟的結果、我們專利的有效性或可執行性以及我們的市場機會業務前景。

These statements are subject to risks and uncertainties that could cause actual results to differ materially from our current expectations. We encourage you to review our most recent filings with the SEC, including the risk factors described in our most recent quarterly report on Form 10-Q. Personalis undertakes no obligation to update these statements, except as required by applicable law.

這些陳述存在風險和不確定性，可能導致實際結果與我們目前的預期有重大差異。我們鼓勵您查看我們最近向 SEC 提交的文件，包括我們最新的 10-Q 表季度報告中所述的風險因素。 Personalis 不承擔更新這些聲明的義務，除非適用法律要求。

Our press release for the third quarter of 2023 results is available on our website, www.personalis.com under the Investors section and includes additional details about our financial results. Our website also has our latest SEC filings, which we encourage you to review. A recording of today's call will be available on our website by 5 PM pacific time today.

我們的 2023 年第三季業績新聞稿可在我們的網站 www.personalis.com 的「投資者」部分獲取，其中包含有關我們財務業績的更多詳細資訊。我們的網站上還有我們最新的 SEC 文件，我們鼓勵您查看。今天的通話錄音將於今天下午 5 點（太平洋時間）在我們的網站上提供。

Now I would like to turn the call over to Chris for his comments on third quarter business highlights.

現在我想將電話轉給克里斯，請他對第三季業務亮點發表評論。

Thank you, Caroline. Good afternoon, everyone, and thank you for joining us. We're thrilled with the progress we made since we updated you in August, we exceeded our revenue goals for the third quarter and increased our full year guidance. We presented compelling data NeXT Personal with the team at TRACERx, we launched the NeXT Personal clinical tests.

謝謝你，卡洛琳。大家下午好，感謝您加入我們。自從八月向您通報情況以來，我們對所取得的進展感到非常興奮，我們超出了第三季度的收入目標，並提高了全年指導。我們與 TRACERx 團隊一起提供了令人信服的數據 NeXT Personal，並啟動了 NeXT Personal 臨床測試。

We deepened our collaborators in breast cancer, we strengthened our management team. I'm very proud of the team at Personalis for delivering on the commitments we've made to investors and our continued focus to execute our win and MRD. strategy and establish NeXT Personal as the centerpiece of a better management paradigm for cancer patients.

我們加深了在乳癌領域的合作，加強了我們的管理團隊。我為 Personalis 團隊兌現了我們對投資者的承諾並持續專注於執行我們的勝利和 MRD 感到非常自豪。策略並將 NeXT Personal 確立為癌症患者更好管理範式的核心。

Let's start with our commercial traction. As mentioned in our press release, we reported $18.2 million in quarterly revenue, powered by nice growth, each of our business lines, biopharma enterprise sales, including the Taro and population sequencing for the VA MVP.

讓我們從我們的商業吸引力開始。正如我們在新聞稿中提到的，我們報告的季度收入為 1820 萬美元，這得益於我們每個業務線、生物製藥企業銷售（包括 Taro 和 VA MVP 的群體測序）的良好增長。

That performance represents 23% year-over-year growth. I'd like to point out that we manage this growth despite an environment where biopharma companies have been cutting their spending on clinical trials and related services. And the actions we took earlier this year to streamline and remove nonprofitable business. Given our commercial traction, we are raising our guidance to $73 million to $74 million.

該業績年增 23%。我想指出的是，儘管生物製藥公司一直在削減臨床試驗和相關服務的支出，但我們仍能實現這一成長。以及我們今年稍早採取的精簡和取消非營利業務的行動。鑑於我們的商業吸引力，我們將指導值提高到 7300 萬美元至 7400 萬美元。

Now, while our revenue goal in Q3 exceeded our goals and allowed us to increase guidance, we're most excited about the progress we're making in executing our winning MRD strategy. MRD testing using liquid biopsy tests to find residual recurrent cancer and to monitor treatment effectiveness is expected to grow into a $20 billion-plus market.

現在，雖然我們第三季的營收目標超出了我們的目標，並允許我們增加指導，但我們對執行致勝 MRD 策略所取得的進展感到非常興奮。使用液體活檢來發現殘餘復發癌症並監測治療效果的 MRD 檢測預計將發展成為一個價值超過 200 億美元的市場。

As a reminder, our women MDR strategy has four pillars. First, focus and launch our test and cancer types where an ultrasensitive liquid biopsy test can unlock significant value for patients, payers and partners. Second, to drive reimbursement by developing robust clinical evidence and partnering with the top global collaborators. Third, to commercialize NeXT Personal with a partner centric model. And fourth, to leverage our deep biopharma relationships to power the development of clinical evidence by the use of NeXT Personal and clinical trials.

提醒一下，我們的女性 MDR 策略有四個支柱。首先，重點關注並推出我們的測試和癌症類型，其中超靈敏液體活檢測試可以為患者、付款人和合作夥伴釋放巨大價值。其次，透過開發強有力的臨床證據並與全球頂級合作者合作來推動報銷。第三，以合作夥伴為中心的模式將 NeXT Personal 商業化。第四，利用我們深厚的生物製藥關係，透過使用 NeXT 個人和臨床試驗來推動臨床證據的開發。

Our next review each of these strategies and the progress we've made this quarter. First, starting with indications for ultra-sensitive tests. We've chosen to focus on early-stage lung cancer breast cancer and immunotherapy monitoring because a high sensitivity test is uniquely suited to detect recurrence very early and to guide treatment decisions and to deescalate low risk patients off of therapy.

我們接下來將回顧這些策略以及我們本季的進展。首先，從超靈敏測試的適應症開始。我們選擇專注於早期肺癌、乳癌和免疫治療監測，因為高靈敏度測試特別適合儘早檢測復發、指導治療決策以及減少低風險患者的治療。

Let me elaborate about high sensitivity and why that matters for our key indications. As it's at the heart of our strategy. We detect cancer levels down to one part per million, what this means is the next personal may find residual recurrent disease when there is only as few as one circulating cancer DNA fragment among affiliate, normal DNA fragments in the blood, allowing our test and platform to detect cancer earlier than competitive technology.

讓我詳細說明一下高靈敏度以及為什麼它對我們的關鍵指標很重要。因為它是我們戰略的核心。我們檢測到的癌症水平低至百萬分之一，這意味著當血液中附屬的正常DNA 片段中只有一個循環癌症DNA 片段時，下一個可能會發現殘留的複發性疾病，從而允許我們的測試和平台比競爭技術更早發現癌症。

And it can do this not just for some patients, but consistently for most patients across many different cancer types and stages. We believe NeXT Personal can provide confidence that one, when we detect cancer, we see it earlier when patient management can be modified to result in more favorable outcomes and too, when we don't see cancer patient will likely remain disease free and may not need additional therapy.

它不僅可以對某些患者做到這一點，而且可以對許多不同癌症類型和階段的大多數患者始終如一地做到這一點。我們相信NeXT Personal 可以提供信心，當我們檢測到癌症時，我們可以更早發現它，此時可以修改患者管理以產生更有利的結果，而且當我們沒有看到癌症時，患者可能會保持無病狀態，並且可能不會需要額外的治療。

In early lung cancer and some types of breast cancer, our approach is particularly well suited to escalate and deescalate therapy. Detecting the cancer recurrence early may be the key to getting a patient to the therapy they need to save their lives. And NeXT Personal sensitivity may be key to identifying patients with low risk of recurrence, so they can potentially avoid additional treat.

在早期肺癌和某些類型的乳癌中，我們的方法特別適合升級和降級治療。及早發現癌症復發可能是讓患者接受挽救生命所需治療的關鍵。 NeXT 個人敏感性可能是識別復發風險低的患者的關鍵，因此他們可以避免額外的治療。

We've kicked off our commercial journey by launching our NeXT Personal test for early access clients. We've confirmed this quarter, the NeXT Personal can detect cancer as low as one part per million. And we've completed the analytical studies and documentation needed to launch the test.

我們透過為早期訪問客戶推出 NeXT 個人測試來開啟我們的商業之旅。我們本季已確認，NeXT Personal 可以檢測出低至百萬分之一的癌症。我們已經完成了啟動測試所需的分析研究和記錄。

The launch has been met with robust early demand with several doctors sending us samples. We continue to deepen the clinical evidence of our tests with early adopters and expect to ramp up rapidly post Medicare coverage. As a reminder, we're managing towards obtaining Medicare coverage in late 2024.

該產品的推出滿足了早期的強勁需求，幾位醫生向我們發送了樣品。我們繼續深化與早期採用者的測試的臨床證據，並期望在醫療保險覆蓋範圍後迅速擴大。謹此提醒，我們正在努力爭取在 2024 年末獲得 Medicare 保險。

The second part of our women MRD strategy is developed clinical evidence with top institutions and thought leaders around the world to demonstrate the clinical validity and utility of our tests. In early-stage lung cancer we're working with the TRACERx consortium led by lung cancer expert, Dr. Charles Swan and teams at Cancer Research, UK, the France's Crick Institute and University College London.

我們的女性 MRD 策略的第二部分是與世界各地的頂級機構和思想領袖一起開發臨床證據，以證明我們測試的臨床有效性和實用性。在早期肺癌方面，我們正在與由肺癌專家 Charles Swan 博士領導的 TRACERx 聯盟以及英國癌症研究中心、法國克里克研究所和倫敦大學學院的團隊合作。

Previously, this group conducted research on prior generations and MRD assays and identified significant opportunities for detection improvement and is now using NeXT Personal to determine the clinical value of an ultrasensitive assay for early-stage lung cancer.

先前，該團隊對前幾代和 MRD 檢測進行了研究，並發現了檢測改進的重大機會，現在正在使用 NeXT Personal 來確定超靈敏檢測對早期肺癌的臨床價值。

The TRACERx team presented compelling clinical evidence at [Esmo], a couple of weeks ago highlighting the power of the NeXT Personal essay. There were three key findings. First, we are seeing higher sensitivity up to four times higher than other liquid biopsy test analyzed by TRACERx. Second, we found lung cancer, 6 to 11 months ahead of standard imaging and significantly ahead of other tests. And third we have the ability to determine low and high recurrence risk, which could lead to improved therapy decisions.

幾週前，TRACERx 團隊在 [Esmo] 上提出了令人信服的臨床證據，強調了 NeXT Personal 論文的力量。有三個主要發現。首先，我們發現 TRACERx 分析的靈敏度比其他液體活檢測試高出四倍。其次，我們比標準成像提前 6 至 11 個月發現了肺癌，並且明顯領先於其他檢查。第三，我們有能力確定低和高復發風險，這可能會導致改善治療決策。

We expect to complete cohort results from the TRACERx study to be published in mid-2024. In breast cancer, we're actively processing samples from our Royal Marsden collaboration. Royal Marsden is one of the leading global institutions in breast cancer, and our work is focusing on patients with early-stage disease for several subtypes, including PR positive, HER2 positive and triple negative breast cancer.

我們預計將於 2024 年中期發布 TRACERx 研究的隊列結果。在乳癌方面，我們正在積極處理皇家馬斯登合作的樣本。皇家馬斯登是全球領先的乳癌機構之一，我們的工作重點是患有多種亞型的早期疾病患者，包括 PR 陽性、HER2 陽性和三陰性乳癌。

From Royal Marsden collaboration provides us access to a well annotated samples with known clinical outcomes. We plan to use our work here to provide a clinical dataset to support our medical coverage in breast cancer. The dataset is expected to be showcased in mid-2024.

與皇家馬斯登的合作使我們能夠獲得具有已知臨床結果且註釋良好的樣本。我們計劃利用我們在這裡的工作提供臨床數據集來支持我們對乳癌的醫療保險。該資料集預計將於 2024 年中期展示。

Excitingly, we recently added two new collaborators in breast cancer to augment our path for Medicare coverage. First, we're now working with Dana-Farber in breast cancer, which provides us a robust set of HER2 prospectively gathered samples and also the institute career, which gives us access to a study that was a prospectively gathered triple negative breast cancer patients.

令人興奮的是，我們最近增加了兩名乳癌領域的新合作者，以擴大我們的醫療保險覆蓋範圍。首先，我們現在正在與Dana-Farber 合作研究乳癌，它為我們提供了一組可靠的HER2 前瞻性收集樣本，同時也為我們提供了研究所職業機會，使我們能夠參與一項前瞻性收集的三陰性乳癌患者的研究。

These are extremely important because we now have multiple prospective cohorts so we can leverage to drive both commercial success and underpinned our reimbursement submission. Additionally, for breast cancer, we have our own prospective clinical trial called be stronger and it has begun. We made progress establishing committed sites and are targeting to begin enrolling patients late this year.

這些非常重要，因為我們現在擁有多個潛在隊列，因此我們可以利用它們來推動商業成功並支援我們的報銷提交。此外，對於乳癌，我們有自己的前瞻性臨床試驗，名為“be Strong”，並且已經開始。我們在建立承諾站點方面取得了進展，並計劃在今年稍後開始招募患者。

For IO therapy monitoring we have multiple collaborations underway. Our key study is a PMA cancer data set without the Hebron Institute of Oncology, VHIO, design to demonstrate and leverage the efficacy of NeXT Personal for IO therapy monitoring. VHIO gives us access to a large well annotated bank of prospectively gathered samples that are the cornerstone of our efforts to achieve our reimbursement coverage for pan cancer IO therapy monitor.

對於 IO 治療監測，我們正在進行多項合作。我們的關鍵研究是一個沒有希伯倫腫瘤研究所 (VHIO) 參與的 PMA 癌症數據集，旨在證明和利用 NeXT Personal 進行 IO 治療監測的功效。 VHIO 使我們能夠存取大量註釋明確的前瞻性收集樣本庫，這些樣本是我們努力實現泛癌 IO 治療監測報銷的基石。

We have begun testing VHIO patient samples, and we expect to present clinical data next year. This is an exciting collaboration and it joins existing work we've announced on melanoma and IO therapy with the University Medical Center, Hamburg Eppendorf, also known as UKE, and also our Duke relationship.

我們已經開始測試 VHIO 患者樣本，預計明年提供臨床數據。這是一次令人興奮的合作，它加入了我們與漢堡 Eppendorf 大學醫學中心（也稱為 UKE）以及我們與杜克大學的合作關係，宣佈在黑色素瘤和 IO 治療方面開展的現有工作。

We're driving hard to process all of the samples across these many collaborations and expect collaborators and investigators to report data through 2024 and to submit for multiple -- end to be able to be submit this data from into multiple publications. With all this data gathered, we plan to submit for reimbursement coverage in all three cancer types next year, and we're targeting to achieve coverage for at least one of them in 2024.

我們正在努力處理這些合作中的所有樣本，並期望合作者和研究人員能夠在 2024 年之前報告數據並提交多個出版物，以便能夠將這些數據提交到多個出版物中。在收集到所有這些數據後，我們計劃明年提交所有三種癌症類型的報銷範圍，我們的目標是在 2024 年實現至少其中一種癌症的報銷。

The third part of our strategy is easy partner-centric path towards commercialization. We're seeking partnerships that help us amplify our message to the marketplace, helping us market and sell our test in a capital-efficient manner. We continue to work on that core part of our strategy, and we believe it provides significant opportunities to accelerate commercial traction while minimizing invest.

我們策略的第三部分是以合作夥伴為中心的輕鬆商業化之路。我們正在尋求合作夥伴，幫助我們向市場傳達我們的訊息，幫助我們以資本效率高的方式行銷和銷售我們的測試。我們將繼續致力於我們策略的核心部分，我們相信它提供了重要的機會來加速商業吸引力，同時最大限度地減少投資。

The fourth and final part of our strategy is to leverage our biopharma relationships and establish infrastructure to submit NeXT Personal as the assay of choice to determine clinical trial enrollment, monitor therapy effectiveness and develop new insights into treatment pathways.

我們策略的第四部分也是最後一部分是利用我們的生物製藥關係並建立基礎設施，以提交 NeXT Personal 作為選擇的檢測方法，以確定臨床試驗註冊、監測治療效果並開發對治療途徑的新見解。

This quarter, we continued to deepen our business with pharma clients, at particular, driving NeXT Personal forward in several discussions. Growing these relationships is important to us, and September, we announced that Mr. Shiga Pandora joined Personalis has SVP Regulatory Quality and Clinical.

本季度，我們繼續深化與製藥客戶的業務，特別是在多次討論中推動 NeXT Personal 向前發展。發展這些關係對我們來說非常重要，9 月份，我們宣布 Shiga Pandora 先生加入 Personalis，擔任監管品質和臨床高級副總裁。

Most recently, she was VP Regulatory Affairs at Grail and has also held leadership roles at Roche Diagnostics. She and her team are charting a path forward to establish our NeXT Personal assay as the clinical trial enrollment assay of choice for our pharma partners.

最近，她擔任 Grail 監管事務副總裁，並在羅氏診斷公司 (Roche Diagnostics) 擔任領導職務。她和她的團隊正在製定一條前進的道路，將我們的 NeXT Personal 測定作為我們製藥合作夥伴選擇的臨床試驗入組測定。

Next person was the key driver of revenue growth moving forward. And over the last quarter, we've demonstrated strong performance for the test one of the best data sets available globally. We've deepened the list of our blue chip collaborators, and we launched our product.

下一個人是未來收入成長的關鍵驅動力。在上個季度，我們在全球可用的最佳數據集之一的測試中展示了強大的性能。我們加深了藍籌合作夥伴的名單，並推出了我們的產品。

Our product progress and executing on women MRD strategy has been impressive, but we've also made progress in other parts of the business. As we mentioned before, our platform is powering personalized cancer therapies.

我們的產品進展和女性 MRD 策略的執行令人印象深刻，但我們在業務的其他部分也取得了進展。正如我們之前提到的，我們的平台正在為個人化癌症治療提供動力。

As announced earlier, this year, we are a key partner for the (technical difficulty) regulatory approval of their personalized therapies. We are partners in (technical difficulty) and cost of clinical studies and as part of the chart, which is close to begin enrolling patients in their Phase 3 clinical trial for milestones.

正如今年稍早宣布的那樣，我們是其個人化療法（技術難度）監管批准的關鍵合作夥伴。我們是臨床研究（技術難度）和成本方面的合作夥伴，並且作為圖表的一部分，該圖表即將開始招募患者參加其里程碑式的 3 期臨床試驗。

We expect this partnership to be a significant driver of revenue for us in 2024 and '25. With thousands of new cancer patients each year in the US alone, our aspirations are for Personalis technology to power the development of next-generation vaccines and therapies as we are doing with our Moderna partnership.

我們預計這種合作關係將成為我們 2024 年和 25 年收入的重要推動力。光是在美國每年就有數千名新癌症患者，我們希望透過 Personalis 技術來推動下一代疫苗和療法的開發，就像我們與 Moderna 合作夥伴所做的那樣。

Lastly, turning to our population sequencing business, we recently received a new task order from the US Department of Veteran Affairs Million Veterans Program, known as the VA MVP in the amount of $7.5 million. This relationship stretches back several years, and we are proud to continue supporting the VA MVP in their initiatives.

最後，談到我們的群體定序業務，我們最近收到了美國退伍軍人事務部百萬退伍軍人計劃（稱為 VA MVP）的新任務訂單，金額為 750 萬美元。這種關係可以追溯到幾年前，我們很自豪能夠繼續支持 VA MVP 的舉措。

It's an exciting time at Personalis with much progress across multiple fronts. And we appreciate our collaborators, partners and investors being part of our journey to establish an ultra-sensitive test at the forefront of the MR market.

這是 Personalis 的一個激動人心的時刻，在多個領域都取得了很大的進展。我們感謝我們的合作者、合作夥伴和投資者參與我們在 MR 市場前沿建立超靈敏測試的旅程。

With that, I'll now turn it over to Aaron to review our financial results for the quarter.

現在，我將把它交給亞倫來審查我們本季的財務表現。

Thank you, Chris. We executed very well in the third quarter and continue to meet our financial commitments. I will be providing detail about our third quarter financial results and guidance for the fourth quarter and full year.

謝謝你，克里斯。我們第三季的執行情況非常好，並繼續履行我們的財務承諾。我將提供有關我們第三季財務業績的詳細資訊以及第四季度和全年的指導。

Total company revenue for the third quarter of 2023 was $18.2 million and increased 23% compared with the same period of the prior year. Primarily due to higher volume from biopharma customers, enterprise, which includes Natera and population sequencing volume from the VA MVP. Gross margin was 19.1% for the third quarter compared to 28.7% for the prior quarter and 16.7% for the same period of the prior year.

2023年第三季公司總營收為1,820萬美元，較上年同期成長23%。主要是由於生物製藥客戶、企業（包括 Natera）和 VA MVP 的群體定序量增加。第三季毛利率為 19.1%，上一季毛利率為 28.7%，去年同期毛利率為 16.7%。

The sequential decline of 9.6% was primarily due to the impact of lower selling prices to Natera as a result of their volume-based pricing structure and to a lesser extent, higher allocated facility costs to the operations lab now that all production testing has been moved from Menlo Park over to the new Fremont facility. The year over year increase of 2.4% was primarily due to operating leverage from higher revenue volume.

環比下降 9.6% 主要是由於 Natera 基於數量的定價結構導致銷售價格下降，以及在較小程度上由於所有生產測試均已轉移而分配給操作實驗室的設施成本增加從門洛帕克到新的弗里蒙特工廠。年成長 2.4% 主要是由於收入增加帶來的營運槓桿。

Operating expenses were $34.3 million in the third quarter and included a one-time non-cash impairment charge of $5.6 million for a write-down of the remaining lease asset for the Menlo Park facility that we recently vacated compared with $29.7 million for the same period of the prior year.

第三季營運費用為 3,430 萬美元，其中包括 560 萬美元的一次性非現金減損費用，用於沖減我們最近騰出的門洛帕克工廠剩餘租賃資產，而同期為 2,970 萬美元上一年的。

Excluding the one-time charge, operating expenses were $28.7 million and increased by $1 million from the same period last year. We continue making progress to reduce our expense base by limiting investments to high-priority initiatives such as deepening clinical evidence to pursue reimbursement, transitioning to lower-cost sequencing platforms and others.

不包括一次性費用，營運費用為2870萬美元，比去年同期增加100萬美元。我們透過限制對高優先計畫的投資，例如深化臨床證據以尋求報銷、過渡到成本較低的定序平台等，繼續在減少開支方面取得進展。

R&D expense was $16.7 million in the third quarter compared to $15 million for the same period last year. And SG&A expense was $12 million compared with $14.8 million for the same period last year.Net loss for the third quarter was $29.1 million compared with a net loss of $26.5 million for the same period of the prior year. Excluding the non-cash impairment charge mentioned earlier, the net loss would have been $23.5 million.

第三季研發費用為 1,670 萬美元，去年同期為 1,500 萬美元。 SG&A 費用為 1,200 萬美元，去年同期為 1,480 萬美元。第三季淨虧損為 2,910 萬美元，去年同期淨虧損為 2,650 萬美元。除去前面提到的非現金減損費用，淨虧損將為 2,350 萬美元。

The net loss per share for the third quarter was $0.6 and the weighted average basic and diluted share count was $48.7 million compared to net loss per share of $0.58 and a weighted average basic and diluted share count of $45.9 million in the same period of the prior year.

第三季每股淨虧損為 0.6 美元，加權平均基本股數和稀釋股數為 4,870 萬美元，而上年同期每股淨虧損為 0.58 美元，加權平均基本股數和稀釋股數為 4,590 萬美元年。

Now onto the balance sheet, we finished the third quarter with a strong balance sheet with cash and short-term investments of $120.7 million. During the quarter, we used $16.5 million of cash, primarily to fund operations, and we expect our cash balance to last approximately two years.

現在來看資產負債表，我們第三季的資產負債表表現強勁，現金和短期投資達 1.207 億美元。本季度，我們使用了 1,650 萬美元現金，主要用於為營運提供資金，我們預計現金餘額將持續約兩年。

Now I'd like to turn to guidance. For the fourth quarter of 2023. We expect total company revenue between $19 million to $20 million, revenue from pharma tests, enterprise sales and other customers between $18.5 million to $19.5 million and revenue from population sequencing of approximately $0.5 million.

現在我想談談指導。 2023 年第四季。我們預計公司總收入將在1,900 萬美元至2,000 萬美元之間，來自藥物測試、企業銷售和其他客戶的收入在1,850 萬美元至1,950 萬美元之間，來自群體定序的收入約為50 萬美元。

And for the full year of 2023, we have increased our revenue guidance due to the strong demand for both pharma and enterprise sales. We now expect total company revenue between $73 million to $74 million with oncology revenue from pharma and enterprise sales and other customers between $64 million to $65 million. In population sequencing revenue of the approximately $9 million.

由於製藥和企業銷售的強勁需求，我們提高了 2023 年全年的收入指引。我們現在預計公司總收入在 7,300 萬美元至 7,400 萬美元之間，其中來自製藥和企業銷售以及其他客戶的腫瘤學收入在 6,400 萬美元至 6,500 萬美元之間。群體定序收入約 900 萬美元。

In addition, we expect net loss of approximately $103 million, which is $10 million lower than the loss of $113 million in 2022. And the net loss of $103 million includes the one-time charge of $5.6 million for the Menlo Park facility.

此外，我們預計淨虧損約為1.03億美元，比2022年的1.13億美元虧損減少1000萬美元。1.03億美元的淨虧損包括門洛帕克工廠一次性費用560萬美元。

Cash usage is expected to be below $70 million and represents a reduction of approximately $50 million from 2022. We look forward to updating you on our progress during the next conference call in a few months. And with that, I will turn the call back over to the operator to begin the Q&A session. Operator?

現金使用量預計將低於 7000 萬美元，比 2022 年減少約 5000 萬美元。我們期待在幾個月後的下一次電話會議上向您通報我們的最新進展。然後，我會將電話轉回接線生開始問答環節。操作員？

We will now begin the question and answer session. (Operator Instructions)

我們現在開始問答環節。 （操作員說明）

Patrick Donnelly with Citi.

花旗集團的派崔克唐納利。

Hey, guys, thanks for taking the questions. Maybe one, just on the MRD side, you talked about the pharma opportunity there. Can you just talk about what the funnel looks like at the moment in terms of those opportunities? Just trying to think about how to size that revenue opportunity, the activity you're seeing and expectations going forward here.

嘿，夥計們，感謝您提出問題。也許其中之一，就 MRD 而言，您談到了那裡的製藥機會。您能談談目前這些機會的漏斗是什麼樣的嗎？只是想如何確定收入機會的大小、您所看到的活動以及未來的期望。

Yeah. So we've worked with I think Moderna over time, maybe more for 16 of the top 20 biopharma companies with our immunology platform. And that platform powers a lot of translational kind of contagious and we've built relationships and in many of those companies. We have been engaged in discussions, we've launched It as arguable product. And we've been building the revenue base and NeXT Personnel over the last year.

是的。因此，我認為隨著時間的推移，我們與 Moderna 合作，也許 20 強生物製藥公司中的 16 家都使用我們的免疫學平台進行了更多合作。該平台推動了許多具有傳染性的轉化，我們已經在許多這樣的公司中建立了關係。我們一直在進行討論，我們將其作為有爭議的產品推出。去年我們一直在建立收入基礎和 NeXT 人員。

We announced we have announced a relationship with AstraZeneca where they began using the assay and some of their efforts. And we've been in since the data has come out with TRACERx, we continue to get significant interest we've had in benchmarking in our pilot studies with several biopharma companies. We expect the revenue on the biopharma side for next personal should give us a nice revenue growth in 2024 as we move through the care of those trials can be larger and it can be significant. So we're excited about the churn.

我們宣布我們已經與阿斯特捷利康建立了合作關係，他們開始使用該檢測方法和他們的一些努力。自從 TRACERx 的數據公佈以來，我們一直對與多家生物製藥公司進行試點研究的基準測試產生濃厚的興趣。我們預計下一個人生物製藥方面的收入應該會在 2024 年為我們帶來不錯的收入成長，因為我們將進行這些試驗，規模可能更大、意義重大。所以我們對這種流失感到興奮。

Okay. That's helpful. And then you mentioned the reimbursement side going for Medicare coverage in '24. Can you just talk about, I guess, the pathway there, your work hurdles you have to clear reimbursement timing is always tricky. So I guess when do you think that could come during the year again, what are the key catalysts milestones we should keep an eye out for as you progress towards that?

好的。這很有幫助。然後你提到了 24 年醫療保險報銷方面。我想你能談談那裡的途徑嗎？你必須清除的工作障礙，報銷時間總是很棘手。所以我想你認為今年什麼時候會再次出現這種情況？在你朝著這個目標前進的過程中，我們應該關注哪些關鍵的催化劑里程碑？

Yeah. No, absolutely. So I mean, we are it is one of the things that are strictly to trying to predict timing because a lot of it is beyond our control, but that is in our control is getting the samples with collaborators, to get some of the top collaborators. I think they're separate studies that we're working across our core indication.

是的。不，絕對是。所以我的意思是，我們是嚴格嘗試預測時間的事情之一，因為很多事情超出了我們的控制範圍，但我們可以控制的是與合作者一起獲取樣本，以獲得一些頂級合作者。我認為它們是我們針對核心適應症進行的單獨研究。

And the key thing there is to have analytic validity studies that show that the assay is robust across multiple different conditions and against the performance numbers that we did, and we've completed all that with the launch of the product will be submitting that data for publication, and that will be a lot of the front of the data sets, the publication there that will underpin reimbursement and our success and progress.

關鍵是要進行分析有效性研究，表明該測定在多種不同條件下以及我們所做的性能數據上都是穩健的，隨著產品的推出，我們已經完成了所有這些工作，將提交這些數據出版物，這將是大量資料集的前面部分，那裡的出版物將支持報銷以及我們的成功和進步。

The others moving clinical evidence and each one of these indications. And so the core thing will launch from our over 2024 at the publication of the clinical evidence because by publication of the clinical evidence that the test is (technical difficulty) cancer, breast cancer IO therapy and that the clinical utility there (technical difficulty) and we can accelerate the -- we can accelerate a doctor and a patient knowing and cancer is present, but getting out published will be important to get through the corporate hurdle and with Medicare.

其他的則有臨床證據和這些適應症中的每一項。因此，核心的事情將從 2024 年臨床證據的發布開始，因為透過臨床證據的發布，該測試是（技術難度）癌症、乳腺癌 IO 治療以及那裡的臨床實用性（技術難度）和我們可以加速— —我們可以加速醫生和病人了解癌症的存在，但是發表文章對於克服公司障礙和醫療保險非常重要。

So we plan on having all that accomplished across these indications and be able to submit for coverage and 2024. And our goal is to have one of those done Patrick by the end of '24, committing to always (technical difficulty) way of indication. So our machine in the middle of all three, we're targeting to get one over the finish line by the end of the year.

因此，我們計劃完成這些適應症的所有工作，並能夠在 2024 年提交覆蓋範圍。我們的目標是在 24 年底之前完成其中一項工作，致力於始終採用（技術難度）指示方式。因此，我們的機器位於這三台機器的中間，我們的目標是在今年年底前讓一台衝過終點線。

Great. I appreciate it guys.

偉大的。我很感激你們。

Absolutely, that's the quarter has been really lot of sort of checking off more and more boxes of lowering the risks for investors from the risk of getting the test line. We've checked that off at the risk of early clinical evidence. You can check that off scores right evidence and next is up next the next big one is reimbursement of key stitching here (technical difficulty) check that all. So that's where we are.

當然，這個季度確實是在檢查越來越多的方框，以降低投資者獲得測試線的風險。我們冒著早期臨床證據的風險檢查了這一點。您可以檢查分數正確的證據，下一個是下一個大的一個是關鍵縫合的報銷在這裡（技術難度）檢查所有。這就是我們現在的情況。

Thanks for the question.

謝謝你的提問。

Tejas Savant with Morgan Stanley.

摩根士丹利的 Tejas Savant。

Hi, This is Jason (technical difficulty) congratulations on the quarter, guys. So my question is the VA MVP extended our contract for next year for $7.5 million. This is down from $10 million of previous year. What do you think was the driver behind this lower rate? And how should we think about this number going forward?

大家好，我是傑森（技術難度），恭喜本季度，夥計們。所以我的問題是 VA MVP 以 750 萬美元的價格延長了我們明年的合約。這比去年的 1000 萬美元有所下降。您認為這較低利率背後的驅動因素是什麼？我們該如何看待這個數字？

Hi, Jason, this is Aaron. In terms of the VA contract, they don't say specifically the rationale for dollar amounts here or there, but it's our belief that was what they had in line from a budgetary standpoint, and it was down a little bit in terms of the way we look at that $7.5 million. It's good business. We've been doing business with the PA for several years now. Back to 2012, our focus is really on the oncology business.

嗨，傑森，我是亞倫。就退伍軍人事務部合約而言，他們沒有具體說明美元金額的基本原理，但我們相信，從預算的角度來看，這是符合他們的要求的，而且在方式方面有所下降。我們看看那750 萬美元。這是一筆好生意。我們與 PA 開展業務已經有好幾年了。回到2012年，我們的重點其實是腫瘤業務。

And so, you know, everything we do inside of our company is focused on driving the clinical evidence, the commercial engine, getting towards reimbursement by driving MRD with pharma, working with PCB manufacturers to be able to go and exploit that technology. And so in terms of So long answer here, but the focus is really on the Oncology revenues. So the VA has been nice business for us in the past. But looking forward, the oncology business is more and more important for us.

所以，你知道，我們在公司內部所做的一切都集中在推動臨床證據、商業引擎、透過與製藥公司推動 MRD 來實現報銷、與 PCB 製造商合作以便能夠去利用該技術。因此，就這裡的答案很長而言，但重點實際上是腫瘤學收入。因此，VA 過去對我們來說是一筆不錯的生意。但展望未來，腫瘤業務對我們來說越來越重要。

Okay. Thank you. That's helpful. And if I may ask a follow-up on the quarter of $121 million in cash. You previously guided that providing about two years of cash runway. So it's another three months to talk about how you think about cash management and financing opportunities over the next year?

好的。謝謝。這很有幫助。我可以詢問一下該季度 1.21 億美元現金的後續情況嗎？您之前指導提供了大約兩年的現金跑道。那麼，又是三個月的時間來談談您如何看待明年的現金管理和融資機會？

Yeah. So earlier this year, and we took some actions to extend our cash runway and have reduced expenses. We continue to we use expenses every quarter we're looking at discretionary spend that we're looking at, but we absolutely critical digital and investing right along the path to go seek clinical evidence done of reimbursement, other types of things where we can defer or eliminate spending that we so and over the last few quarters, we've been continuously saying we have to use atherectomy, and that's because we were successful in pushing things out deferring in different places.

是的。今年早些時候，我們採取了一些行動來擴大我們的現金跑道並減少開支。我們繼續每季使用支出，我們正在考慮我們正在考慮的可自由支配支出，但我們絕對重視數位化和投資，以尋求報銷的臨床證據，以及我們可以推遲的其他類型的事情或消除我們的支出，在過去的幾個季度中，我們一直在說我們必須使用旋切術，這是因為我們成功地在不同的地方推遲了事情。

And so in terms of where we're at today, we believe that the strong balance sheet to weather the storm, the capital markets are very good. As Chris mentioned, we have several milestones in front of us here in 2024. Bringing clinical evidence out, I've have been able to submit for reimbursement and our targets are to be able to get reimbursed for at least one cancer type in 2024.

因此，就我們今天的處境而言，我們相信強勁的資產負債表能夠抵禦風暴，資本市場也非常好。正如 Chris 所提到的，2024 年我們面前有幾個里程碑。透過臨床證據，我已經能夠提交報銷申請，我們的目標是在 2024 年能夠獲得至少一種癌症類型的報銷。

So we believe we have enough capital to get us to reimbursement and be able to start to go up the ramp and then start to show some revenue for next personal in the clinic.

因此，我們相信我們有足夠的資本來獲得報銷，並能夠開始走上坡道，然後開始為診所的下一個人提供一些收入。

Thank you. That's helpful.

謝謝。這很有幫助。

Thanks, Jason.

謝謝，傑森。

Dan Brennan with TD Cowen.

丹布倫南 (Dan Brennan) 和 TD Cowen。

Really Thanks for the questions, guys. Maybe just on the commercial partner, can you just kind of remind us on the type of partner you're looking for kind of how advanced those discussions and when something like this might come about?

真的謝謝你們的提問，夥伴們。也許只是在商業夥伴方面，您能否提醒我們您正在尋找的合作夥伴類型，這些討論的進展程度以及類似的事情何時會發生？

Yeah, thanks, Dan. We've always said that, like, finding a commercial partner was key to ultimately helping us bring this to market. I've always believed that you're better off partnering these types of things that go on in this particular climate and in particular, it's better to do that.

是的，謝謝，丹。我們總是說，尋找商業合作夥伴是最終幫助我們將其推向市場的關鍵。我一直相信，在這種特定氣候下進行的這些類型的事情合作會更好，尤其是這樣做更好。

We think that the type of partner that works well is a partner that doesn't have an MRD solution, but yet calls on and talks to oncologists, so that they have those call points and they have those relationships and they can integrate this and ideally that party partner would be able to integrate it into their into their call cycle and their talk track and their discussions that helps to distinguish them of having a cutting-edge product that they're bringing that adds luster to their brand.

我們認為，運作良好的合作夥伴類型是沒有MRD 解決方案的合作夥伴，但仍會致電腫瘤科醫生並與他們進行交談，以便他們擁有這些呼叫點並擁有這些關係，並且他們可以將其整合起來，並且理想情況下該方合作夥伴將能夠將其整合到他們的通話週期、談話軌跡和討論中，這有助於使他們脫穎而出，因為他們所帶來的尖端產品為他們的品牌增添了光彩。

And so we've been engaging in those discussions continuing to engage in discussions. Don't have anything to report at this point, but it's been a key part of our strategy because quite frankly, if we can find a partner it gets that helps us commercialized through the journey and that reduces dramatically the amount of capital that we need to build a sales and marketing engine.

因此，我們一直在參與這些討論，並繼續進行討論。目前沒有任何可報告的內容，但這是我們策略的關鍵部分，因為坦白說，如果我們能找到合作夥伴，它就能幫助我們完成整個商業化過程，並大大減少我們所需的資金量建立銷售和行銷引擎。

I've done this and many several companies now built these out. I know added to that, but at a cost of capital. And so being able to leverage somebody to do it through the journey is part of our strategy. We have been able to execute on that yet. But I think having the product live and having great clinical data is it were sitting where we are right now. We feel like we're well situated to continue moving the ball down the field.

我已經做到了這一點，現在許多公司都建立了這些。我知道要增加這一點，但要付出資本成本。因此，能夠利用某人完成整個旅程是我們策略的一部分。我們已經能夠執行這一點了。但我認為，擁有該產品並擁有良好的臨床數據就符合我們現在的情況。我們覺得我們處於有利位置，可以繼續將球帶到球場。

And would that be would that be something more likely after Medicare coverage gets in place, so you have more power or just kind of any sense on timing of a commercial partnership.

在醫療保險覆蓋範圍到位後，這種情況更有可能發生，這樣你就擁有更多的權力，或者對商業合作夥伴關係的時機有任何感覺。

When we identify the right partner and get an agreement put together, that's when we would announce something, I think sooner is always better than later in these things, honestly, the reason is because this current period that we're in, we call it early access programs that we're currently we have a set of early adopters that -- and we have demand and we're sort of working through.

當我們找到合適的合作夥伴並達成協議時，我們就會宣布一些事情，我認為在這些事情上越早越好，老實說，原因是因為我們所處的當前時期，我們稱之為我們目前正在實施早期訪問計劃，我們有一組早期採用者，我們有需求，並且正在努力解決。

This is a time that you work through the system, you work through your call points, your talk tracks, you work through your marketing material, you build more clinical evidence, you start to develop advocates. And so and then when we get Medicare coverage, we expect to be all systems go pushing the gas down on the pushing the gas down and really trying to build revenue as quickly as we can on the back of that.

這是你研究系統、研究呼叫點、談話軌跡、研究行銷資料、建立更多臨床證據、開始培養擁護者的時候。因此，當我們獲得醫療保險覆蓋時，我們預計所有系統都會不斷降低天然氣價格，並在此基礎上盡可能快地增加收入。

And so ideally having a commercial partner before we do that. So we learned how to work together with the what we're shooting for Yes. So we did announce that we've launched a product, we have an early access program, we are engaged with oncologists, we have tests coming into our operation now. And in terms of the sales team, we have a small sales team today, but we will continue to add to that and build that into -- at the right time to we have a partner.

因此，在我們這樣做之前最好有一個商業合作夥伴。所以我們學會瞭如何與我們正在拍攝的東西一起工作是的。因此，我們確實宣布我們已經推出了一款產品，我們有一個早期訪問計劃，我們正在與腫瘤學家合作，我們現在正在進行測試。就銷售團隊而言，我們今天擁有一支小型銷售團隊，但我們將繼續擴大這一團隊，並在適當的時候將其建立起來，以便我們擁有合作夥伴。

So we're planning for success. And like Chris mentioned, a partner is going to help us be capital efficient. We won't have to go and hire a really large sales force soon. We spend a lot of money on that. You know, assuming we find a partner sooner rather than later, but we're going to continue down the path to build the commercial team until we have something done here.

所以我們正在為成功做好計劃。正如克里斯所提到的，合作夥伴將幫助我們提高資本效率。我們不必很快去僱用一支非常龐大的銷售隊伍。我們為此花了很多錢。你知道，假設我們盡快找到合作夥伴，但我們將繼續沿著建立商業團隊的道路前進，直到我們在這裡完成一些事情。

And maybe just one follow-up just on filing the three assays next year. Could you just give us a sense of like by the time you file, what kind of dialogue will you have had with Medicare ahead of it, just to ensure like you've got the right data package in place.

也許只是明年提交三項檢測的後續行動。您能否在提交申請時向我們介紹一下您在此之前將與 Medicare 進行什麼樣的對話，以確保您擁有正確的資料包。

And I guess it's fair to think either colorectal and breast will be the bigger opportunity just given the size of the market or that that will be one of those two will be the area where you probably feel you have the most opportunity. Just maybe any color on those two questions, thank you.

我想，考慮到市場的規模，結直腸和乳房將是更大的機會，或者這將是這兩個領域之一，您可能認為自己擁有最多的機會，這是公平的。也許對這兩個問題有什麼看法，謝謝。

Yeah, I think, it's a good -- it's an interesting. Yes, so the answer is yes, we will engage. We've already had dialogues with Palmetto, and we'll continue to have dialogues with them as we go forward.

是的，我認為，這很好——很有趣。是的，所以答案是肯定的，我們會參與。我們已經與 Palmetto 進行了對話，並且我們將繼續與他們進行對話。

I think so the three indications are lung, breast and IO, they're in different spots. So lung is one where we have a shot to be really like the kind of the early the first coverage really in that indication. I think it's fair to say in early-stage lung. And we think the data is really compelling and really great there.

我認為這三個適應症是肺、乳腺和 IO，它們位於不同的位置。因此，肺部是我們有機會真正像該適應症中第一個報導的那樣的地方。我認為在早期肺部這樣說是公平的。我們認為這些數據非常引人注目，而且非常棒。

In IO therapy, it was one of the first indications after CRC that got coverage. And so there's a really nice benchmarks set of data out there that we feel like we'll have as robust or are more complete or larger dataset can exceed that in size. And so we feel like IO are well positioned.

在 IO 治療中，這是 CRC 後最早得到報告的適應症之一。因此，有一個非常好的基準資料集，我們覺得我們將擁有同樣強大的或更完整的資料集，或者更大的資料集可以超過它的大小。所以我們覺得 IO 處於有利位置。

In the breast cancer we've just stitching together a wealth of studies as we really push down on that. That's one where there's coverage now by another player. And so you get some sense by what other players have done, what you need to do. And so we have a good sense of that. But long as long as probably more open and the other ones are more clear about what we need to do, but we feel like we'll be in a good position across the three.

在乳癌方面，我們只是將大量研究整合在一起，因為我們確實在推動這一點。現在另一名球員正在報道這一點。所以你可以透過其他玩家做了什麼以及你需要做什麼來了解一些。所以我們對此有很好的認識。但只要可能更加開放，其他人也更清楚我們需要做什麼，但我們覺得我們在這三個方面都會處於有利位置。

Great. Thank you.

偉大的。謝謝。

Mark Massaro with BTIG.

BTIG 的 Mark Massaro。

Hey, guys, thank you for taking the questions. So my first one was great to see the initial TRACERx study data readout. Just for housekeeping, is it right that we should see that next group of patients data readout around mid '24? That's the first part of my question.

嘿，夥計們，謝謝你們提出問題。所以我的第一個很高興看到最初的 TRACERx 研究數據讀數。就內務管理而言，我們是否應該在 24 年中旬左右看到下一組患者的數據讀出？這是我問題的第一部分。

Yeah, hi, this is Rich. I think that's a reasonable target for us. Things can intervene to kind of make it come in or come out a little bit in terms of timing, but that's probably a reasonable assumption.

是的，嗨，我是里奇。我認為這對我們來說是一個合理的目標。事情可以進行幹預，使其在時間上有所進出，但這可能是一個合理的假設。

Okay, great. And then Rich, this one might be for you. I think one of the interesting things about TRACERx is that I think, it started in non-small cell lung cancer, and I know that's a big focus. But I believe other cancer states like melanoma, prostate and renal cancer are being investigated on. Is that the case still? And are you guys having some conversations with Charlie's group about potentially expanding beyond lung cancer into other cancer types?

好的，太好了。 Rich，這款可能適合你。我認為 TRACERx 的一個有趣的事情是，它始於非小細胞肺癌，我知道這是一個重點。但我相信其他癌症狀態，如黑色素瘤、前列腺癌和腎癌也在研究中。現在還是這樣嗎？你們是否正在與查理的團隊討論是否有可能將肺癌擴展到其他癌症類型？

Yes, we haven't publicly talked about expanding beyond lung cancer because lung cancer is our major focus. But you can imagine there are discussions about different avenues such as cancer types with expanding our relationship with TRACERx.

是的，我們還沒有公開談論擴展到肺癌以外的領域，因為肺癌是我們的主要關注點。但你可以想像，隨著擴大我們與 TRACERx 的關係，我們會討論不同的途徑，例如癌症類型。

Okay. I also wanted to ask about NeXT Dx, which didn't hear any comments on how are the reimbursement discussions going there. And then, any update in terms of adoption and demand for the test?

好的。我還想詢問 NeXT Dx，它沒有聽到任何關於報銷討論進展如何的評論。那麼，測試的採用和需求方面有什麼更新嗎？

Yeah. I mean it's -- so we continue the dialogue on NeXT Dx and reimbursement, we are still aspirational to get coverage into the year still possible, and we know we're managing towards that. We have a small handful of reps in the field, and they do talk about it, and they work on it, and we are seeing samples coming in. We are seeing -- we've all always believed that works hand in glove with IO monitoring for NeXT Personal in our early experience so far is that that's true.

是的。我的意思是，所以我們繼續就 NeXT Dx 和報銷問題進行對話，我們仍然渴望在今年實現覆蓋，而且我們知道我們正在努力實現這一目標。我們在該領域有一小部分代表，他們確實在談論它，他們正在研究它，我們正在看到樣品進來。我們看到 - 我們一直相信這與 IO 密切合作根據我們迄今為止對NeXT Personal 的監控，情況確實如此。

So that they the products often maybe work together, when I pointed when a patient is diagnosed in their later stage and they go on IO therapy for their candidate for that, the doctor will want to both create a baseline for NeXT Personal while at the same time doing the therapy selection. And so we're seeing in our early access sites that's case.

因此，這些產品通常可以協同工作，當我指出，當患者在後期被診斷出來並為其候選人進行 IO 治療時，醫生會希望同時為 NeXT Personal 創建基線是時候進行治療選擇了。因此，我們在搶先體驗網站中看到了這種情況。

So we're optimistic that the products will work. We work together in the marketplace from a messaging standpoint. So rather than send the CGB test to vendor A and then send the next personal to us, we'd be better to be able to send it both to us and have a one-stop shop. And so we're seeing evidence that will happen. And so the two products, the growth was actually had synergistic.

因此，我們對這些產品的效果持樂觀態度。從訊息傳遞的角度來看，我們在市場上合作。因此，與其將 CGB 測試發送給供應商 A，然後將下一個測試發送給我們，不如將兩者都發送給我們並擁有一站式服務。所以我們看到了將會發生的證據。所以這兩種產品的成長其實是具有協同效應的。

Okay, great. Last question for me is on the Moderna partnership, I believe a Moderna Phase 3 melanoma clinical trial is expected to start in the second half of the year. Do you have any update on that? And how should we think about Moderna and some of that broad interest on personalized cancer vaccines into the model in 2024?

好的，太好了。我的最後一個問題是關於 Moderna 的合作關係，我相信 Moderna 3 期黑色素瘤臨床試驗預計將於今年下半年開始。你有這方面的最新消息嗎？我們應該如何看待 Moderna 以及對 2024 年個人化癌症疫苗的廣泛興趣？

Hey, Mark, this is Aaron. So maternal did start enrolling patients in the Phase 3 trial in the second half like was planned. And things did get pushed to the right a little bit. And so enrollment has been slower than what we originally thought. So although we're recognizing some revenue here in the quarter, it's smaller than what we originally thought.

嘿，馬克，這是亞倫。因此，Maternal 確實按照計劃在下半年開始招募患者參加 3 期試驗。事情確實有點向右推了。因此，入學速度比我們最初想像的還要慢。因此，儘管我們在本季度確認了一些收入，但它比我們最初想像的要小。

So it's our expectation now at this point in time that the ramp should start here in 2024 and then into 2025. So the next two years could be quite lucrative for Personalis in terms of revenue ramp from the Phase 3 work. But I don't know.

因此，我們現在預計，成長應該在 2024 年開始，然後到 2025 年。因此，就第三階段工作的收入成長而言，未來兩年對 Personalis 來說可能是相當有利可圖的。但我不知道。

Okay, that's it for me. Thank you.

好吧，我就這樣了。謝謝。

Thanks, Mark.

謝謝，馬克。

(Operator Instructions) Swayampakula Ramakanth with H.C. Wainwright.

（操作員說明）Swayampakula Ramakanth 與 H.C.溫賴特。

Thank you, and thanks for taking my questions. I just want to understand a little bit more about what you're doing in terms of partnerships for our commercialization. So you said that's one of your pillars for growth can you expand on that.

謝謝你，也謝謝你回答我的問題。我只是想更多地了解你們在我們商業化的合作夥伴關係方面所做的事情。所以你說這是你的成長支柱之一，你可以擴展它嗎？

Yes, sure. So I think -- we think that, so we offer, and we have a test that we believe is most sensitive MRD test. We think that product is unique and differentiated. And you know my own experience in commercializing these products with partners is that when you have a set of relationships with oncologists or other physicians, because this is a sales group having a new cutting-edge product that you can bring in and walk and talk to, it's actually something that distinguishes you. It makes you more valuable and that's good.

是的，當然。所以我認為——我們認為，所以我們提供了一項我們認為是最敏感的 MRD 測試的測試。我們認為該產品是獨特且與眾不同的。你知道，我自己與合作夥伴將這些產品商業化的經驗是，當你與腫瘤學家或其他醫生建立了一系列關係時，因為這是一個銷售團隊，擁有一種新的尖端產品，你可以帶進來並與之散步和交談，這實際上是讓你與眾不同的東西。它讓你更有價值，這很好。

And so we're seeking partnerships, it can help to augment the partners set of products to help them grow and build their talk tracks inside customers and deepen their relationships and broaden and broaden their offering. At the same point in time for us while we know how to do this and we know how to build these products, it's expensive to do it by ourselves.

因此，我們正在尋求合作夥伴關係，它可以幫助增強合作夥伴的產品組合，幫助他們在客戶內部成長和建立對話軌跡，加深他們的關係，擴大和擴大他們的產品範圍。同時，對我們來說，雖然我們知道如何做到這一點並且知道如何建立這些產品，但我們自己做這件事的成本很高。

And we'll never enter a relationship where we turn it over to somebody else for being able to commercialize side-by-side would allow us to move a lot faster with a lot less investment and a lot less fundraising it. And so one of the things we've been very focused on is how do we become ever more efficient, ever more focused on the mission at hand here, which is to capture a decent part of this $20 billion market.

我們永遠不會建立一種將其移交給其他人的關係，因為能夠並行商業化將使我們能夠以更少的投資和更少的籌款來更快地行動。因此，我們一直非常關注的事情之一就是如何變得更加高效，更加專注於手頭的使命，即在這個 200 億美元的市場中佔據相當大的份額。

And part of that is having a partner to allow us to move faster because that will either mean that we'll have less investment capital needed to build a dramatically scale the company's revenue or grow free up more capital to invest right back into the clinical study, evidence development, neither one of those -- either one of those two scenarios, it's good for shareholders. So that's what we're focused on.

其中一部分是擁有一個合作夥伴，讓我們能夠更快地採取行動，因為這要么意味著我們將需要更少的投資資本來大幅擴大公司的收入，要么釋放更多的資本來投資於臨床研究，證據開發，這兩種情況中的任何一種，都對股東有利。這就是我們關注的重點。

Okay. Thank you. Thanks for taking my question.

好的。謝謝。感謝您提出我的問題。

Sure.

當然。

Mike Matson with Needham.

麥克馬特森和李約瑟。

Hi, guys. This is Joseph on for Mike. Hopefully this wasn't addressed already, but I'm looking at your transcript right now much seemed [CNSO]. Was just wondering if maybe you could talk about your expectations for cash burn as we start, move into 2024. I guess is the strategy kind of similar to what was being done in 2023? I don't know if you guys still have much more wood to chop there, but and as you're nearing some of these commercial milestones, if we expect that to change pretty materially.

嗨，大家好。這是麥克的約瑟夫。希望這個問題還沒有解決，但我現在正在看你的文字記錄，似乎很[CNSO]。只是想知道您是否可以談談您對 2024 年開始時的現金消耗的預期。我想該策略與 2023 年所做的策略有點相似嗎？我不知道你們是否還有更多的木材需要砍伐，但是隨著你們接近其中一些商業里程碑，我們是否期望這種情況會發生重大變化。

Hi, Jason, this is Aaron. So in terms of the cash burn, cash runway question that you asked. So we ended the quarter into Q3 with close to $121 million of cash. And we said has basically two years of runway. In 2023, our cash usage is going to be below $70 billion.

嗨，傑森，我是亞倫。因此，就您提出的現金消耗、現金跑道問題而言。因此，我們在第三季末擁有接近 1.21 億美元的現金。我們說基本上有兩年的跑道。到 2023 年，我們的現金使用量將低於 700 億美元。

So looking into 2024, our expectation at this point time and our estimates are for cash usage to be less and 2023 next year and change so. As we go forward and that's going to there's going to be a multitude of different things that contribute to reducing the cash usage. A, some revenue growth; B, gross margin expansion. We have a lot of initiatives to improve gross margin.

因此，展望 2024 年，我們目前的預期和估計是現金使用量會減少，明年 2023 年會有所變動。隨著我們的前進，將會有許多不同的事情有助於減少現金使用。 A、收入有所成長； B、毛利率擴張。我們有很多舉措來提高毛利率。

In addition to controlling our OpEx similar to what we've done this year. We've reduced OpEx some $10 million, excluding the impairment charge that you just saw. And we're going to continue to be prudent as we go into 2024.

除了控制我們的營運支出之外，與我們今年所做的類似。我們已經減少了約 1000 萬美元的營運支出，不包括您剛剛看到的減損費用。進入 2024 年，我們將繼續保持謹慎態度。

Okay. Yeah, perfect. Thank you very much. That's the only question from us. Appreciate you, guys.

好的。是的，完美。非常感謝。這是我們唯一的問題。感謝你們，夥計們。

Thank you, Jason.

謝謝你，傑森。

And this concludes our question and answer session and also concludes today's call. Thank you for attending today's presentation. You may now disconnect your lines.

我們的問答環節到此結束，今天的電話會議也到此結束。感謝您參加今天的演講。現在您可以斷開線路。