GenMark Diagnostics, Inc. (NASDAQ:GNMK) Q3 2018 Earnings Conference Call Transcript

Oct 29, 2018 • 04:30 pm ET

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GenMark Diagnostics, Inc. (NASDAQ:GNMK) Q3 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good afternoon, ladies and gentlemen. And welcome to today's conference call to discuss GenMark Diagnostics' Third Quarter 2018 Financial Results. My name is Chris, and I'll be your operator on this call. After the presentation, we will conduct a question-and-answer session. Instructions will be provided at that time. (Operator Instructions) Please note that this call is being recorded today, Monday, October 29, 2018, at 1:30 PM Pacific time, and will be available on the Investors section of GenMark's website at www.genmarkdx.com.

I would now like to turn the meeting over to Johnny Ek of GenMark.

Executive
Johnny Ek

Thanks, Chris. Thank you all very much for joining us today.

(Forward Looking Cautionary Statements).

I will now turn the conference call over to Mr. Hany Massarany, President and CEO of GenMark. Hany?

Executive
Hany Massarany

Thank you, Johnny. Good afternoon and thank you all for joining us. Joining me on the call today is our CFO, Scott Mendel. We are very pleased with our third quarter results, which once again reflect continued strong execution across key aspects of our business. Total revenue in the third quarter grew 36% year-over-year to $15.8 million, again our top-line performance was largely driven by the solid pace of ePlex system adoption and continued high demand for our respiratory pathogen test cartridges.

Fueled by the proven processing capacity of ePlex and its ability to optimize workflow, in Q3 we expanded our installed base by 45 additional analyzers and closed out the quarter with 312 ePlex placements in the US and international markets. Like recent quarters, the majority of Q3 placements were in the US, which continues to be the largest market for our testing platforms and panels.

As a reminder, the strategic objectives we established for growth in 2018 were based on driving ePlex market adoption and test menu expansion, as well as improving manufacturing cost and yield efficiencies. We have made great progress delivering on these objectives so far this year, and over the next few minutes, I'd like to share some of our recent accomplishments.

Starting with ePlex market adoption. And I am pleased to report that the benefits of ePlex workflow continue to resonate very strongly with our customers. This was a major contributor of our strong placements in the third quarter, particularly towards the latter part of the quarter as customers began to gear up for the flu season.

We were also pleased to achieve a meaningful number of placements in the quarter, driven by the anticipated launch of our blood culture ID panels in the US market. This is especially encouraging as it underscores the advantages of our approach to BCID testing compared with currently available panels.

In Q3, we also continued to see strong placements of our ePlex NP platform, which as a reminder is a three-cartridge analyzer that can process up to 12 patient samples per shift with the same core ePlex functionality. In Europe, the NP configuration is proving to be especially effective at helping us gain access to lower volume hospitals and decentralized test