Champions Oncology, Inc. (NASDAQ:CSBR) Q3 2023 Earnings Call Transcript

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David Miller: Yes. No, it’s — sorry. So Matt, yes, so it always is a factor actually that we have expenses in advance of our revenue. It’s not that, that’s not the case this quarter. But to really give you the flavor is — there was a much more important component and a much more — there was a different reality here. So — that always contributes, but because of this new reality. So I think that was the more important factor, and I think that’s the message we wanted to convey.

Matthew Hewitt: Got it. And then maybe one more, and I’ll hop back in the queue. But I’m wondering if we could get an update on how the Italian lab is performing. It’s now been, I think, a couple of quarters since it was open for business. Have you started to fill some of the opportunity there? And what are your expectations for that as we look out?

Ronnie Morris: Yes. So in general, the clinical biomarker, we opened the European lab in order to be able to access more clinical biomarker opportunities. I would say, in general, in the clinical biomarker opportunities, we are continuing to grow slowly, not as fast as we had expected. I think at this point, our operations are in good shape. We do really high-quality work. And now it’s more of a business development, getting the word out, making sure that people know that — even though we’ve always been known in the preclinical space as a very strong quality oncology provider that we’re also in the clinical space with a lot of the competitors out there. So I think it’s a little bit of a challenging time in the sense that trials are down globally.

And we’re just continuing to inch up and continuing to win more business just based on our quality. But it’s a work in progress. And I would say that we’re still — we still think this is a good addition to our suite of services, but certainly not the adoption that we expected a couple of years ago. The good news for us is that all the investment is kind of there. We’ve already built the labs. We have the expertise. Now it’s more of just making sure that we can get the word out that we’re not just a preclinical. We’re also clinical CRO and start getting more customers getting to be comfortable with using us.

Operator: That concludes your Q&A session. I will now hand the conference back to our host for closing remarks. Please go ahead.

Ronnie Morris: So I wanted to thank everybody for joining our quarterly conference call. Certainly, it was a challenging quarter in terms of the results. But in terms of our outlook, there’s a lot of positivity. We went through a challenging time, but we feel like we’ve — did it well. And the pipeline is strong. The interest is strong. Our operations are in a good place. And we’re excited about bringing everybody the results for the next couple of quarters. So have a good evening, and thank you for joining.

Operator: Thank you, everyone. This concludes today’s event. You may disconnect at this time, and have a wonderful day. Thank you for your participation.

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