Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Why did GeneDx experience a sequential decline in volume this quarter, and is this a new trend? A: Kevin Feeley, CFO, explained that historically, Q1 is the toughest volume quarter due to seasonality, with patients rushing to get appointments before co-pays reset in January. This year, severe weather and one less sales day also impacted volumes. Despite this, the company reaffirms its guidance for 30% growth in exome and genome volumes for the year, expecting stronger performance in the second half due to new initiatives.
Q: Can you provide more details on the increase in G&A expenses this quarter? A: Kevin Feeley, CFO, attributed the increase in G&A expenses to investments in the Epic integration and general support costs due to the company's growth. He emphasized that the business is highly leverageable, and they expect to drive down operating expenses as a percentage of revenue over time.
Q: What visibility supports the expected acceleration in NICU volumes in the second half of the year? A: Katherine Stueland, CEO, stated that the integration of Epic Aura is on track, with a solid approach to bringing additional clients online. The company has foundational pieces in place, such as the ultraRapid Genome Sequencing product, which became orderable in April, and expects NICU volumes to ramp up in the second half of the year.
Q: How is GeneDx planning to price the services from the Fabric Genomics acquisition, and what is the expected impact on margins? A: Katherine Stueland, CEO, mentioned that Fabric Genomics will enable GeneDx to provide interpretation services for health systems doing in-house sequencing, with a focus on international expansion. Kevin Feeley, CFO, added that Fabric operates at a near 70% gross margin, and the acquisition is expected to be accretive to the bottom line by 2026.
Q: What are the expectations for reimbursement rates and denial rates moving forward? A: Kevin Feeley, CFO, noted that the average reimbursement rate for exome and genome tests was approximately $3,400 in Q1, with ongoing efforts to reduce denials and improve revenue cycle management. The company expects to continue improving denial rates, which are currently in the mid-40s, aiming for a long-term target of 80% payment on insurance claims.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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