CareDx, Inc (NASDAQ:CDNA) Q3 2023 Earnings Call Transcript

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Operator: Our next question comes from Mason Carrico, Stephens.

Jacob Krahenbuhl: This is Jacob Krahenbuhl on for Mason. I appreciate the color around volumes funding like a more stabilized level this quarter actually increased slightly sequentially. But just wondering, given you found a stabilized level, given the multiple iterations to the building article and the LCD as well as the recent coverage room with heart care. Could you maybe give us some color whether qualitatively or quantitatively on growth across organ type, specifically heart and kidney?

Alex Johnson: Yes. Sure. I can — this is Alex. I can give a little bit of context on that, Jake. I think for the growth in volumes and test and service volumes this past quarter. We saw growth from all three organs. And so we felt very good that this is — this baseline now has really created the stabilization that we can grow from.

Operator: Our final question comes from Dipesh Patel, H.C. Weinright.

Dipesh Patel: This is Dipesh on for Yi. Could you perhaps clarify if you expect to see any further updates from MolDX regarding the coverage of molecular transplant tests as part of routine monitoring care to detect organ rejection?

Robert Woodward: I think where we’re at right now is that after a couple of iterations of a bill article and the perspective of the community, and those are changes to coverage. And they then propose a draft LCD that is now open for comment. And so it was the open comment period for two of the max has already passed two more are in process. And then we would expect them to move forward and based on the draft and the comments they’ve received produce a final coverage policy from that. And so that’s, I think, what we would expect to happen. We’ve been surprised in the past, different from our expectations, but that’s the normal process. And the timing around that is something we’re often asked, and that’s sometimes before August of next year, if there’s a rule that has to be finished before the original draft was released.

Dipesh Patel: Got it. That’s very helpful. And then lastly, how might you expect the testing volume to grow sequentially going forward?

Alex Johnson: Look, I think we’re certainly in this quarter, certainly, there’s nothing that would make us change from the guidance and the thinking that we’ve seen so far. So I think now that we’ve seen a baseline being set I think there’s growth ahead of us, and we’ll have to see how the quarter plays out, certainly in terms of weather and winter storms and such. But we’re feeling like we’ve certainly hit some stabilization in a baseline that we can grow from.

Operator: We have no further questions in the queue at this time. I would now like to turn the call back over to today’s speakers.

Alex Johnson: Great. Thank you. We wish you the very best this afternoon. Thank you all.

Operator: This does conclude today’s program. Thank you for your participation. You may disconnect at any time.

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