Castle Biosciences, Inc. (NASDAQ:CSTL) Q4 2023 Earnings Call Transcript

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Thomas Flaten: Got it. And you mentioned expanding the TissueCypher sales force. And I think last time you mentioned specific numbers — 24 reps. Is that as that going up to 33? Can you give us some quantify — can you quantify that? And then as a follow on to that, any changes you’re making to the IDgenetix sales team?

Derek Maetzold: So I don’t think we discussed the numbers, we’re targeting growth. The plan we’re working towards is a early second quarter expansion plan. I don’t think we’ve disclosed numbers–

Frank Stokes: And then on IDgenetix, Thomas, we’ll keep an eye on that one. As you saw from the report, we’re getting — we’re very pleased with the traction we’re getting there. Again, that test makes such a difference to the physicians who are their patients. And we really would like to increase the size of the for that. It’s a great test and it gets good traction. But we’re also reiterating an earlier answer., we’re also being very careful on on some operating expenses and trying to balance that. So we’re likely not seeing the volume growth that we could possibly see there, but we’re making sure that we also don’t have a a big increase in cash usage.

Operator: We now have Mark Massaro of BTIG.

Unidentified Analyst: Hey guys, this is on for Mark. Thanks for taking the question, I’ll maybe just keep it to one. So on your recent publication on , also recognizing that you did publish a study on SCC fairly recently earlier this year, what additional evidence and readouts should we be expecting on the SEC front?

Derek Maetzold: So we have discussed, um, I guess back in the summertime, that we have presented data that have been published in abstract form to both Medicare contractors that were reviewing our SCC test. One piece of data was a sort of request, I guess you would say, from the MolDX program to really have a more clear understanding of the independent value that our SCC test adds on top of NCCN or or late staging systems. And so, a publication on that focuses on that has been accepted, and that should come out shortly. That one significant piece of data that we think answers on a significant portion, if not all — I think all is too aggressive there — of the MolDX questions, I guess, you could call it, in the draft LCD. The other article, which has also been accepted, and we presented this data last summer and last fall, certainly to both Medicare and also clinicians, focuses on the on the newer data of our test to take patients who are eligible for adjuvant radiation therapy, identify the proportion of patients who get a really strong benefit from that intervention, and more importantly, perhaps, from a healthcare system and patient care perspective, identify the majority of patients who appear to get no benefit from adjuvant radiation therapy.

And as such, that allows a clinician and a patient in a shared decision-making process to say, hey, you are eligible on ART. Based upon the DecisionDx-SCC test result, however, say it was a low risk class one test result, you have a low likelihood of progressing. So it’s not zero, but it’s a lower likelihood than I thought you would you would be at risk for relative to your clinical and pathological factors. And by the way, a class one test result in this test from Castle also demonstrates that you have a very low likelihood of actually receiving any benefit from adjuvant radiation therapy. So that study has also been accepted and again, should be out shortly. So I think those are some noteworthy near-term publication milestones that are not only important for the clinical use of our tests, with clinicians thinking through where do I use this test?

How do we use — how do we get value out of it, but also hopefully for both of the Medicare contractors.

Operator: Thank you. We have no further questions. So I would like to hand it back to CEO Derek for any final remarks.

Derek Maetzold: This concludes our fourth quarter and full year 2023 earnings call. We thank you again for joining us today, and for your continued interest in Castle Biosciences.

Operator: Thank you. This concludes our fourth-quarter full year earnings call. You may now disconnect your lines and please enjoy the rest of your day.

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