Renalytix Plc (NASDAQ:RNLX) Q2 2023 Earnings Call Transcript

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So it takes a while to evolve, to understand exactly how to get to that business model to prove that, that’s where we are right now.

Randy Baron: James, that’s excellent. Let me get one last really quick one, then I’m going to hop back in the queue, you started that preamble with a comment about partnerships, is that back on the table, we haven’t heard about that in some time, I guess it’s about a really quick update and thank you so much for your time today, guys?

James McCullough: Yeah, the partnership discussions have always been ongoing. And there was definitely a major kill in partnership discussion, everybody pulled back the reins on the horses. And again, we continue to have discussions with digital health companies, we continue to have discussions with pharmaceuticals, major pharmaceutical companies, we continue to have discussion with medical device companies. To me, there is so much synergy here, everybody needs to get the primary care if you want to deal with the biggest cost in medicine, full stop. It’s not the specialty groups that ultimately govern control of cost of medicine over the next 10 to 20 years, it’s chronic disease management at an early stage. And that’s primary care.

There are many people that are focused on that and need to get there, we happen to have a very interesting entry point, which is kidney disease and diabetes. And so — and people recognize this, and as we continue to get more and more insurance coverage, as we continue to put out more data, hopefully as we get a regulatory approval here to me it becomes black and white, that KidneyIntelX is a unique and significant entry point into the vast expanse of primary care. It’s not without its challenges, there’s huge education challenges, there are huge awareness challenges. And it requires investment to do that. But we’re opening the door to a very unique and broad entry point into primary care at the front end of one of the largest chronic diseases that’s out there, that has a significant value.

And that has not gone unnoticed across a number of different potential strategic partners. I think, we got a long way last year. And I think what happened is everybody I saw it and I talked to, senior executives at large corporate and they said, look we aren’t doing anything until we find out where this economy is going, the stock market, etcetera. So everybody pulled back. I’m now starting to see a revival of activity. And again, I’m not predicting what’s going to happen here for us, but I’m more encouraged that there will be opportunities available for us, hopefully in 2023. If we’re able to get FDA on top of that, then this becomes a very unique proposition when we eliminate regulatory risk. We’re working on eliminating reimbursement risk and the data is coming out.

So it just takes time and unfortunately, it’s interesting running a NASDAQ public company that’s subject to this quarter by quarter reporting value, it often doesn’t — we lose sight of the fact that we’re continuing to build a significant amount of intrinsic value and the story is continuing to develop in a very real way. That’s peer reviewed and published and regulated and reimbursed. And, that is going to lead to some very good things. So yeah, I feel the clouds are lifting again, and I feel activity on a strategic level, a strategic partnering level is starting to open up again. We’re certainly seeing that the dialogue so stay tuned.

Randy Baron: Well we are rooting for you.

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