Guardant Health, Inc. (NASDAQ:GH) Q3 2023 Earnings Call Transcript

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AmirAli Talasaz: So for Shield, we trying to advance that anomaly, we didn’t see improvements on AA side and from that data, it’s not very clear exactly how we should read into it. It could have multiple reasons, including the level of shedding of these advanced adenomas signals are still lower than our level of detection. So we — even with improved detection limits that we have that we can effectively take at least 2x lower levels of tumor in blood, that’s not good enough to detect any material amount of advanced adenomas. That could be the reason or it could be like maybe just the biomarkers of advanced adenomas for detection, are different than the current epigenomic and genomic panel that we have that we are detecting CRC with.

So still, that’s an area that we are looking into. We are doing research. And as we generate more data as we generate more insights, those data and insight would tell us more about what’s maybe next for us to get into at least some higher-grade advanced adenomas over time.

Operator: Thank you. Our final question call comes from Alex Nowak from Craig-Hallum. Please go ahead.

Unidentified Analyst: Hi. Good afternoon, everyone. This is [Albert Hu] on for Alex. Can you please outline a bit more on the sales strategy after Shield FDA approval regarding initial sales team, primary call points and just what to expect for 2024?

AmirAli Talasaz: Yes. As we outlined in our Investor Day, we are going to expand actually our commercial team, and we are going to have about 100 people, 100, 150 people on the commercial side all in. The call point would be primary care physicians and right now, we have a small sales team in the field that they are promoting and doing some of the market development for Shield even as a lab develop test, but we’re going to go through that expansion in near future.

Unidentified Analyst: Great. And just as a follow-up also regarding Shield, so what are the back office activities or work reimbursement personnel, customer service, et cetera, do you need to bring – do you need to have ready to bring the test online and get ready for day one of the FDA approval?

AmirAli Talasaz: So we have some of those teams already in place because, again, Shield LDT is in the market like many, many thousands of samples have been processed from over 1,000-plus accounts and those teams are in place. It’s just a matter of scaling and some of the fixed cost is already there. It’s just based on the number of people that we are kind of hire in the field, we need to staff up some other personnel on the client services side, for instance. So all this is already in our commercial plan projections for 2024, and all this is included in the statement that we had that the contribution loss from screening next year would continue to be about approximately $200 million. All those are embedded there.

Operator: Thank you. With that, we have reached the end of the conference call. Thank you all for attending. You may now disconnect.

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