Chris Smith: Yeah, lost you in the middle part of your question. Can you say that last one — Jeff, did you get her. I lost you in the middle. Can you say that again? You were talking about the conservatism in the guide, but…
Madison Pasterchick: Yeah. Just wondering what kind of conservatism is built into the guide for the fourth quarter, and if you’re assuming kind of any budget flush, just looking at, it looks about flat sequentially from third quarter, fourth quarter, so trying to parse out some color there.
Jeff Sherman: Yeah, I mean, the midpoint is roughly flat, but it is a range of performance for Q4. So, I wouldn’t call on anything, unusual in Q4. We expect to see, continued improvement as we have throughout the year, but clearly as we think about, guiding for Q4, wanted to give a range that we thought made sense.
Madison Pasterchick: Got you. That makes sense. And anything you’re assuming there on the budget flush?
Chris Smith: The what?
Warren Stone: Budget flush.
Chris Smith: I’m not sure what you mean by budget flush.
Madison Pasterchick: Okay. Within biopharma [Multiple Speakers]
Chris Smith: I’m sorry?
Madison Pasterchick: Sorry, I don’t know if…
Chris Smith: Can you say that…
Madison Pasterchick: Yeah. I’ll just move on to the next question.
Chris Smith: Okay.
Madison Pasterchick: Just, can you talk a bit about any conversations you’ve been having with biopharma customers, feedback you’ve been getting from them? And I know you talked a bit about the tougher macroenvironment in ADx, so any color there you’ve been seeing?
Chris Smith: Vishal, you want to take that?
Vishal Sikri: Yeah. I can take that. So, we do hear from our pharma customers that there is consolidation in terms of the number of clinical trials that they’re running, number of compounds that they’re focusing on. A lot of it was earlier on in the small biotech, but we’re hearing this a little bit on the larger bio — the larger pharma companies also. So, based off that, I mean, that’s why we saw a little bit of a slowdown in Q3 compared to the previous quarter, and we do expect it to continue a little bit going into Q4 and early 2024, but we’re hearing consolidation, especially when it comes to the programs that they’re focusing on, the limited number going into 2024.
Chris Smith: And I think our broad menu of testing does help us…
Vishal Sikri: It does.
Chris Smith: Soften some of that impact, because we’re not just focused on a couple of different single modalities.
Vishal Sikri: It’s a small percentage of [indiscernible].
Chris Smith: Yeah. We talked a lot about the importance of a portfolio effect. I mean, having informatics, and pharma, and RaDaR, and clinical, if one of those slows down a little bit in the quarter, even though you see good long term opportunities, the others covered, and I think that’s what you really saw here in the quarter.
Madison Pasterchick: Got you. That’s really helpful. Thank you.
Chris Smith: Thanks.
Operator: The next question is from Mike Matson with Needham. Mike, please proceed.
Chris Smith: Hey, Mike.
Joseph Stringer: Hey, everyone. Hey, this is Joseph on for Mike. Congrats on the quarter. Maybe just a couple around RaDaR, I’ll try to just put this onto one, but for breast, looking just, at the expanded coverage, do you think that timeline could be a little bit quicker than the other two submissions, just given that you’ve already had, dialogue with them in a previous submission? And then, just a reminder, I know you guys said it before, but under the current reimbursement profile for breast that you guys have about what percentage of that, potential MRD volume for breast cancer patients is there with that, current reimbursement? And then, just, looking at the other three submissions that you guys announced, can you maybe just talk about your confidence on those submissions, if you have enough evidence with those?
I know, you guys, didn’t necessarily get awarded for colorectal. You’re looking at more evidence for that. Maybe could you put a timeline of, when you’re expecting that submission, if it could be by the end of the year?
Chris Smith: Okay. That’s a lot of questions, a lot in one there.
Joseph Stringer: Yeah, my bad.
Chris Smith: Good way to ask [indiscernible]. So, I would say that we do expect a faster timeline on the breast — on the expanded breast compared to what we saw with the colorectal as an example. We — we’re able to go out and get the initial breast indication, and we believe that we have a relatively good handle as what is expected by MolDx now. On the terms of the number of MRD coming from breast cancer patients versus our current submission, we haven’t broken it down by type of cancer so far. So, I think we’re going to leave it at that. But we, obviously, focus a lot on breast cancer because of our high sensitivity of value proposition that you need in breast cancer. Confidence in the other submissions. I think, for head and neck and for lung, as we’ve mentioned, we’ve submitted.
One of the big things that we had with colorectal — that we did not have with colorectal that we do with these submissions, our publications, that we feel are strong, and we — feel will add a lot of value, especially when it comes to patient care. So, we’ve utilized those as part of our submissions. And in CRC, at this point, we’re probably looking at something, but CRC in 2024, and not in 2023. I think I captured all of those.
Joseph Stringer: Okay. Thanks. Yeah. Those are everything [Multiple Speakers] yeah, that was great. I’ll just do one more quick one then on RaDaR, and it will just be a single question. I guess just looking into 2024, maybe this time next year, in 2024, you could have RaDaR clinically in multiple different cancers. I was just wondering if you could kind of frame up, maybe the gross margin for those. I guess the high bar, the low bar, what type of gross margin you could — gross margin improvement you could see from these tests as they, start to ramp clinically?
