Guardant Health, Inc. (NASDAQ:GH) Q2 2023 Earnings Call Transcript

Helmy Eltoukhy: So what we are seeing in the marketplace with Shield LDT right now is, I mean, obviously, for almost everybody, the fact that you can do colorectal cancer screening with blood is it new concept, but what they are very well aware of, and in fact, is helping the brand and acceptance of this offering is how unpleasant and inconvenience other modalities are? And again, like we are just promoting this test for onscreen patient population or have not done any kind of screenings or haven’t been compliant to other solutions. And these doctors know those patients. They know their patients that they have ordered other modalities that they did not complete the test. So that is on the top of the mind. Completion is not there. unpleasant experience is there, and that’s really helping the brand in terms of acceptance of this new modality.

Operator: Our next question comes from Mark Massaro with BTIG.

Unidentified Analyst: This is [indiscernible] for Mark. I was wondering when TissueNext and Guardant Response will start to become more material to volumes. Is reimbursement a key gatekeeping item there? Or is it more about marketing and maybe some additional data development. So any color you can share there.

Helmy Eltoukhy: Mike mentioned that especially the growing year-over-year. It’s been a very good contributor to our business. I think approaching over 200 million covered lives. We obviously have Medicare coverage there. very good franchise for strong growth. I think very smartly growing ASPs and it’s something that I think is going to be a big driver for us here already becoming business and response, we just received Medicare coverage there a few months ago, and that’s also going to be a very strong component [indiscernible] both aspects of our portfolio.

Unidentified Analyst: Okay. just take in a little bit prior question on screening. So I know you’ve conducted your own PPP survey work. We recently commissioned a survey that showed about 3 to the primary care are looking to order a simple blood test, and over half of docs want to order for all or most of their patients. So I’m just curious if you think our data is in a similar ballpark to our thinking around order and interest for yield. Thanks.

Helmy Eltoukhy: I heard you right, like 3/4 of the doctors are interested are very at like of course, not even opted 50% of their patient population. So I think in general, it’s in line with what we are experiencing in our survey shows. I think the fact that, again, still are of these patients who are unscreened in the field and also the whole kind of a patient like $120 million. And then the fact that, again, this unpleasant experience and lack of completion is unknown. Future of this market for the PCPs, like these kind of numbers make sense. I’m not surprised with your surveys.

Operator: Our next question comes Dan Leonard with Credit Suisse.

Daniel Leonard: A question for you, Helmy. You mentioned the EMR integration in your prepared remarks and that’s underway. Possibly you can quantify the volume lift you’re seeing at accounts that are — that you’ve initially integrated and how you’d frame the benefit from broader integration?

Helmy Eltoukhy: Yes. I mean I think that historically, rule of thumb is you get a sort of 50% to 100% volume lift that it comes when integration happens, and we’re seeing that really play out in a number of accounts that we’ve integrated with. So yes, we’re hopeful that as we continue to make progress there, it will be a strong growth driver is just so on of friction they have to go into another portal or sell out of paper here best acquisition form or EDS. And so being able to just be in an account system order the test from that same system that they’re using for everything else is each part of removing friction, and that’s a lot of what we’re doing in the coming quarters and years is really building up that customer experience that it really is a seamless as possible to [indiscernible].