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

Sung Ji Nam: Got it. And then for lung cancer screening, you talked about realized it’s slightly 15% screening. Is that largely driven by the primary care market today. Just kind of curious what the educational process might entail with a new modality of testing and whether you might need to involve the pulmonologist?

Helmy Eltoukhy: Still, we are kind of learning about a bunch of details of that market as we speak. But at a high level, just modality of screening that needs significant patient commitment and follow through. The multiround of imaging, biopsies, still a large fraction of biopsies would not indicate patients as cancer adverse events or ship we build biopsy. He’s a journey, which is very hectic long and it’s a lot of commitment. So in fact, we are not very surprised that the adherence rate is much lower than CRC. But we are continuing to learn more details about the market dynamics.

Operator: Our next question comes from [indiscernible] with UBS.

Unidentified Analyst: Great. I just wanted to circle back on response. I know, obviously, kind of one of the assays. But I think last quarter, you had kind of indicated maybe like a low single-digit contribution revenue contribute what to think about. And I was wondering, I know clinical volume trends have just been doing pretty well if that was the right way to think about this assay still. And just with another quarter kind of under your belt, if you had any clinician feedback, just given that maybe other assays kind of work a little differently in the treatment monitoring space and what you’re hearing there. And then a follow-up.

Michael Bell: Yes. Makis, I’ll take the financial piece. I think, yes, maybe on the last earnings call, when asked about what contribution will respond deliver now this year because we received Medicare reimbursement. Yes, it’s very early days since Medicare reimbursement. And I think we mentioned you had very low single-digit million revenue that would come from response. And so yes, that’s still the case. I think on the second part of the question.

Helmy Eltoukhy: Yes, I think the view of it is that right now, the sort of leading product and therapy selection, liquid biopsy with Guardant360. It’s the fact that they work in conjunction with 1 another is a huge advantage that we have and really works in a pretty straightforward fashion in terms of nothing to over monetatively. So it’s Yes. No, it’s a product that I think resonates well, one that we’re continuing to promote much more aggressively now that we have reimbursement behind those, the Medicare side. We think it should be a very important growth driver coming years.

Unidentified Analyst: Great. And then just one last one on the EMR integration. I think you — on a prior question, you cited some pretty big increase in utilization from oncologists ordering when EMR integration happens. And obviously, you — I think you mentioned integration with 2/3 of oncology practices just finished. So I was wondering if that happened in this quarter. So to kind of think of 2Q is like that kind of happening or if you could just provide some context around kind of that increase in ordering and kind of how that happens or some kind of time line that 100% figure, would be great to kind of dig into that a little bit more.

Helmy Eltoukhy: Just to be clear, we’re just starting the integration. We’ve done a lot of the work in terms of being able to integrate with those vendors that comprise about 2/3 of the market, but there’s still work to do on the account side where we have to turn them on one by one, many of them. So we’re in the early innings of that. We’re very pleased with initial progress and a handful of accounts that we’ve integrated with. But it’s a multiyear journey [indiscernible].

Operator: Our final question today comes from [indiscernible] with JPMorgan.