Centogene N.V. (NASDAQ:CNTG) Q2 2020 Earnings Conference Call - Final Transcript
Sep 23, 2020 • 08:00 am ET
Prof. Arndt Rolfs
adapting to an environment where all partners and customers need the time to adjust to the pandemic. This is by no means changed the long-term direction of the company, but has merely demonstrated our resilience by leveraging our diagnostics expertise to successfully generate an additional near term source of revenue during these unprecedented times. You will see from today's presentation that we remain dedicated to and focused on our goals.
Now let's dive into today's presentation starting on Slide 5. Let me first highlight the key message for today. Firstly, we believe the worst of the COVID-19 pandemic is behind us. The month of April and May were a difficult period for our core business in which our pharma partnership discussions stalled and clinical diagnostic volumes decreased by more than 50%. Since then, our core business has started to recover and both segments remain on the recovery trajectory. Over the first six months of 2020 our revenues were largely flat compared to the prior year with a decline of 0.4%. While even the small decline is disappointing, CENTOGENE has been able to weather the pandemic with resilience and I'm very proud of what we have been able to achieve. Secondly, we have continued to drive growth in our COVID-19 testing efforts. In particular, our activities at Frankfurt Airport, which I will discuss in more detail later on, has picked up significantly in July, August and September. Finally, I would like to reiterate the financial resilience of CENTOGENE. Given the uncertainty of the COVID-19 pandemic, we have taken steps to further strengthen our balance sheet through a follow-on offering which closed in July 2020. In addition, with the help of commercial COVID-19 testing, we anticipate our 2020 revenues to be in line with our strong growth trajactory in recent years. Richard will cover these topics later in his section of the presentation.
Let us now discuss these points in more detail. Please turn to Slide 6. In H1 2020 our revenues decreased by less than 1% compared to H1 2019 to approximately EUR21.8 million. This was driven by an approximately 2% decline in the Pharma segment and a 1% growth in the Diagnostics segment. The worst of the pandemic impact hit us during April and May, and we began to observe recovery in June. Nonetheless, this difficult period translates to 13% revenues decline in Q1 2020.
Let me take a moment to step back and put things in perspective. In light of the challenges presented in 2020, I think these results demonstrate resilience and the strong determination of all CENTOGENE employees. I would like to take this time to thank the entire CENTOGENE family for their extraordinary efforts over the past several months.
Please turn to Slide 7. As mentioned earlier, our core business is gradually recovering, both in terms of clinical diagnostics and pharma partnership discussions. I wanted to put that into context of largely the trends we are seeing in the market overall. On the left side of this