Centogene N.V. (NASDAQ:CNTG) Q2 2020 Earnings Conference Call - Final Transcript

Sep 23, 2020 • 08:00 am ET

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Centogene N.V. (NASDAQ:CNTG) Q2 2020 Earnings Conference Call - Final Transcript

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Q & A
Analyst
Operator

Thank you. [Operator Instructions] We have our first question comes from the line of Puneet Souda. Please ask your question.

Analyst
Puneet Souda

Yes, hi, thanks, Arndt, Rich. First question is on the guide in the EUR60 million to EUR65 million. I am assuming that the third quarter is going to be heavy with COVID testing, given that what you're seeing -- the trend that you're seeing in August. Could you help us understand how much of the COVID testing is baked into the full year guide? It appears that's going to be considerable in the second half. So I just want to get a sense of that. And does that tell you -- and is that -- does that make it conservative a bit for the Pharma revenues? Just trying to get a better sense of the core business there in the second half as well.

Executive
Richard Stoffelen

Thank you very much, Puneet for the question. This is Richard here. Happy to give you a little bit more on the guidance. As mentioned, we've seen recovery in both the Pharma and Diagnostics segments since the trough in April as well as growth in our commercial COVID-19 testing. And if there are indeed no further significant unanticipated disruptions or events that would negatively impact our business, we are cautiously optimistic that we will be in that range. Once we have a clearer picture of full year revenues, we will love to update you in the next earnings announcement. In brief, indeed, we do see that uptake in both DX and Pharma. But a good part of the total revenues will indeed be contributed by COVID-19 commercial as the numbers on one of the slides for Frankfurt Airport I depicted earlier.

Analyst
Puneet Souda

Okay. As I was looking at the last second quarter ended July and August volumes that you have presented here for COVID testing, it appears that at least in the second quarter and correct me if I'm wrong, the ASP appears to be lower than EUR60 that you had pointed out to. So I just wanted to understand that? And then could you give us a sense of where the pricing of the test stands now, when -- as you think about the mix of the test from normal turnaround time to rapid turnaround time. You're charging two different prices there. So just trying to understand what is the ASP for COVID test in the third quarter here?

Executive
Richard Stoffelen

Thank you for that question as well. As you correctly did the math for Q2, we were below the range that we indicated earlier. Partly due to a massive contract in the province that we are active, that we are based in. There was a fixed fee and a variable component in there. It was kind of a launching customer perspective. If you look at Q3, we see a mixture of, as we call it normal timing as well as the so called smell as in fast test, which is at a higher price, a premium price. It