Sera Prognostics, Inc. (NASDAQ:SERA) Q4 2022 Earnings Call Transcript

Greg Critchfield: Yes. A great question. What I would say is that the integrated delivery networks of the physician group — physician hospital groups and managed Medicare groups are very, very interested. And the discussions are very positive about how we could move forward toward implementation. So those are key targets that we are really going after. And what does it take? It takes a commitment and a co-ordination of all the activities, so that some of the physicians that are parts of these systems and the operation parts of the system, can be coordinated to actually perform the testing. And as I said before in my remarks, not only are we talking about the data and how important the data are, but we are actually exploring ways to help them to implement the testing within their systems.

Dustin Scaringe: Okay, great. Thank you.

Operator: . The next question comes from Tom Stevens with TD Cowen. Please go ahead.

Tom Stevens: So this is going to be more focused on kind of PRIME and what your results kind of mean there. So, if we assume you kind of hit statistical significance in that interim look, what’s the material impact on kind of NICU mortality there? And how does the materiality of that impact your ultimate ASP you hope to get from PRIME?

Greg Critchfield: I’ll let Jay talk about ASP. What I’m going to do, I’ll talk about the material impact. A positive interim look means that one or the other or both of the primary endpoints have been met. Okay? And that’s — in the case of the AVERT PRETERM TRIAL, both of them were met. And with that, it substantiates even strong — more strongly the benefit of the test-and-treat strategy that we have for PreTRM test. So that allows discussions to take place with systems and for people to be thinking about what this means in terms of their risk. And as with any new product, there are early adopters, mid adopters and late adopters. And we believe that it will be beneficial, more positive data is always beneficial. And our strategy is to ultimately get to a point where the data are overwhelmingly strong from multiple studies showing that there’s a positive impact on the outcomes that matter most.

And those are length of stay because that’s what generates costs; and secondly, and most importantly for the individual, a benefit in neonatal health. So that — those are the primary outcomes in in those studies. Jay, do you want to say anything about the cost?

Jay Moyes: Yes, sure. I think that any time you get stronger data, it’s going to help improve our ASPs as more payers adopt the strong reimbursement of the PreTRM test.

Tom Stevens: Got it. Thanks for that. And then just kind of looking long term, so it sounds like interim much later this year, forward out maybe mid ’24, and then there’s going to be a ramp alongside, let’s get reimbursement there. Just a couple of details on the reimbursement angle, and then just the question on kind of the maturity of revenue when you kind of get there. So on the first one, just like — yes, I mean, is that the right timeline to think about ramping things up? And then secondarily up, will they also reimburse all the kind of follow up treatment required, and treatment and interventions required to actually see those cost benefits? And how do those play into your health economic models?