And so, while there’s definitely going to be costs associated with it, we believe we can manage it in the day-to-day business. There won’t be a significant change to our outlook, or our forecast to be able to manage that business.
Puneet Souda: Got it. Super. Okay. Thank you.
Operator: Your next question for today is from Dan Brennan with TD Cowen.
Chris Smith: Hi Dan.
Dan Brennan: Hi, thanks for the question. Sorry about that. Hi, guys, can you speak a little bit just to the core clinical business? Just wondering, ex-NGS, kind of, what you guys saw in the quarter, looks like the results are okay there. And kind of how you’re thinking about the progression of maybe volume, and price as we look out in the Q2 and beyond?
Chris Smith: Yes, look, I mean, I did mention in our prepared remarks that we did grow in all modalities, but Warren’s here. So maybe I can let Warren kind of give you the high level piece of it. And then maybe Jeff kind of around more specifics in the detail. Do you want to?
Warren Stone: Yes, certainly. Thanks. Thanks, Chris. Dan, good morning. Q1 was a strong quarter, across all modalities, as Chris said. And from our data, we feel that we continue to grow from a volume perspective above market across all modalities. And that really speaks to our sort of account penetration strategy that, we have from a commercial perspective. Yes, we over-index on NGS, because of the relative importance of that. But the overarching sales strategy does target on sort of account ownership. And we’re seeing the benefits of that through all of our modalities. And we feel based on the fact that it’s sort of broad-based across multiple customers, and across the geography of the United States that it should be sustainable.
Jeff Sherman: Yes, and I think I would expect a similar kind of flow of revenue, Dan, from a quarterly perspective. Q1 is generally our softest quarter, tends to ramp, and Q2 and Q3, are in a similar range. And then we finish the year stronger in Q4. So, I would expect a similar sequencing of clinical performance this year.
Chris Smith: Yes, and I guess the last thing on that, Dan, remember we went through a field expansion where probably over an 18-month period, we doubled the size of our field organization. And so, I think what you see in this business, it really does take six to nine months of time and grade, to get flowing from a sales perspective, whether it’s new products, new processes, new customers, new business. And so, I think we’re starting to see the benefit of that, and to a point where I think it’s something we’ve got to continue to evaluate, is kind of what we call feet on the street and making sure that we have the right amount of coverage, because we believe the opportunity is significant. And so it’s about capturing it.
Dan Brennan: And then maybe just one follow-up, just on the sequencing side. So the liquid test, so is anything baked into the guide for that? I know you said it’s later in ’23. Like is that a fourth quarter event? Is it just any more color on kind of what the impact of that being, from a timing perspective? Thank you.
Chris Smith: Not expecting any material revenue from that in this year, Dan.
Jeff Sherman: Yes, it’s late in the year.
Dan Brennan: Okay. All right. Great, guys. Thank you.
Chris Smith: Thanks. Take care.
Operator: The next question is from Andrew Brackman with William Blair.
Chris Smith: Hi, Andrew.
Andrew Brackman: Good morning. Thanks for taking the question. Hi Chris. Maybe on Neo Comprehensive, I think it’s been just over a year since you launched that product. Can you maybe just give us a sense of the scale for that business, and that product line? And I guess just related to that, any color you can provide on sort of success rate, with cross-selling initiatives, or sort of – what accounts you’re really seeing a lot of uptake in? Thanks.
Chris Smith: Yes, Andrew, I’ll take it high level, then I’m going to let Warren kind of get into detail to it. But remember, we’ve talked a lot about this, that from a team perspective, we’re a market leader in NGS. But from a solid tumor, we would have very low double-digit share. So, we knew that when we launched kind of that product. But let me maybe have Warren give more.
Warren Stone: Yes, just the correction there for Chris. We have low single-digit share in solid tumors. You said double-digit.
Chris Smith: I am so sorry. No I thought I’ve mistaken.
Warren Stone: So yes, and one of the reasons why we had low single-digit share in solid tumor, is the fact that we didn’t have this board CGP panel. And as you correctly pointed out, we launched this in late March of last year. And we’ve done an upgrade on the product as well. Our penetration continues to evolve very, very favorably. We see it coming across in two areas. Obviously, our area of strength lies within the hospitals. And we’re tapping into that opportunity. And we estimate sort of 20% of the market potential, comes from the hospital side of things. And the balance of the opportunity is in the community oncologist. Sometimes they’re independent. Sometimes they’re affiliated. But that’s where we have a lot of opportunity to grow in the community oncology space, because we are largely underpenetrated for lack of a portfolio.
We see robust growth quarter-over-quarter in terms of volume within that space as well. And ultimately, this is one of the leading drivers as to the 50% growth in NGS. We spoke about earlier today.
Andrew Brackman: Great. Thanks, guys.
Operator: Your next question for today is from Tejas Savant with Morgan Stanley.
Tejas Savant: Hi, guys. Good morning. So maybe just to kick things off, Chris, you raised your long-term targets to north of 10% on the last earnings call. Three years out, where do you expect NGS test mix to be in terms of your clinical revenue? It’s about 25% today. Just given the growth you’re seeing here, is there a scenario in your mind where over the course of those long-term targets, NGS mix could essentially be approaching 50% on an ex MRD basis?
