CareDx, Inc.

Good day and welcome to the CARE-Dx, Inc. First Quarter Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. Please note, this event is being recorded. I would now like to turn the conference over to Greg Odacek. Please go ahead.

Good afternoon and thank you for joining us today. Earlier today, CareDx released financial results for the quarter ending March 31, 2020. The release is currently available on the company's website at www.caredx.com. Peter Mogg, Chief Executive Officer, and Michael Bell, Chief Financial Officer, will host this afternoon's call. Before we get started, I would like to remind everyone that management will be making statements during this call that include forward-looking statements, within the meaning of the federal securities laws, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements contained in this call that are not statements of historical facts should be deemed to be forward-looking statements. All forward-looking statements, including without limitation, are examination of historical operating trends, expectations regarding coverage decisions, pricing, and enrollment matters, and our future financial expectation and results are based upon current estimates and various assumptions. These statements involve material risks and uncertainties that could cause actual results to differ materially from those anticipated or implied by these forward-looking statements. Accordingly, you should not place undue reliance on these statements. For a list and descriptions of the risks and uncertainties associated with our business, please see our filings with the Securities and Exchange Commission. The information provided in this conference call speaks only to the live broadcast today, April 30, 2020. CharityX disclaims any intention or obligation except as required by law to update or revise any information, financial projections, or other forward-looking statements, whether because of new information, future events, or otherwise. This call will also include a discussion of certain financial measures that are not calculated in accordance with generally accepted accounting principles. Reconciliation to the most directly comparable GAAP financial measure may be found in today's earnings release filed with the SEC. I will now turn the call over to Peter. Peter?

Thanks, Greg, and good afternoon, everyone. I'm pleased to welcome you to the CareDx call to review our results for the first quarter of 2020. Before we discuss our results, I wanted to take a moment to thank all of the healthcare workers across the globe. CareDx is part of a community of essential healthcare businesses. Thank you very much. In the first quarter of 2020, we reported revenue of $38.4 million, an increase of 48% compared with the first quarter of 2019. Growth primarily came from our testing services, where we provided just over 15,000 patient results, an increase of 50% year over year. Product revenue for the quarter was $4.7 million, and digital revenue added $2.2 million to the top line. For the seventh straight quarter... We posted a positive adjusted EBITDA. We have always focused on building a profitable, sustainable, precision medicine business and believe that our robust platform has enabled us to quickly pivot and adjust in response of this unprecedented crisis. The arrival of COVID-19 in the U.S. has affected everyone and everything. The healthcare sector is no exception as hospitals have become the front line of this battle. With hospitals increasingly caring for COVID-19 patients, hospital administrators have chosen to limit or even defer non-emergency visits and procedures. Immunosuppressed transplant patients either decided on their own or were asked to avoid transplant centers and caregiver visits. With transplant surveillance visits down, we did experience a slowdown in testing services volume in the final week of the quarter. Considering this backdrop, our results this quarter were particularly strong, Up until the impact of COVID-19, we were well on track to exceed $40 million in total revenue for the first quarter. Our pledge to support our patients remains our focus, and as part of our efforts on March 17th, we announced the launch of RemoTrack, our solution for enabling home-based monitoring for transplant patients. Importantly, we created RemoTrack in response to hearing that patients were missing their check-in appointments and blood draws as a result of COVID crisis. This home-based blood straw solution using mobile phlebotomy reduces the necessary visit to labs and hospitals for immunosuppressed transplant patients. Notably to date, more than 150 transplant centers are leaning in and offering remote track to their patients. Approximately 2,000 kidney, heart, and lung transplant patients have already enrolled. Based on existing and new relationships with partners, we have expanded our nationwide network from 1,000 to more than 10,000 mobile phlebotomists. This has been an enormous undertaking, as the need is greatest in areas where there are the most infections. As always, with complex workflows, the devil is in the detail, and we are learning every day. Mobile phlebotomy has increased from 10% of our daily volume eight weeks ago to now comprising over 50%. Under the tremendous leadership of Reg Cito, our president and chief business officer, CareDx has pivoted extremely quickly. Transplant Proud As remote track starts to take effect and as some transplant centers begin to return to normal operating capacity, I'm very pleased to share that in the last week, we have almost returned to pre-COVID volumes of Alashur and Alamab. It remains to be seen if this will continue and whether we can return to linear growth at any time soon. But for the moment, we are pleased with the progress over the last week. Another COVID-19-related initiative that we are very proud of is our partnership with an international consortium, including the National Institute of Health, to create and manage a global COVID-19 transplant registry. Initial mortality rates of transplant patients with COVID-19 infections are alarming. With this noncompetitive registry, we are supporting the need for better data on the impact COVID-19 is having on immunosuppressed transplant patients. The C19TXR.org was built in record time and is powered by OtterCare, our transplant-specific electronic medical record software. The site is free to use, is open access, and is web-based with a real-time analytics dashboard. Already 400 COVID infections are captured in the registry, so this might be the largest COVID-19 transplant registry in the world. The OtterCare team in Omaha has done an incredible job. Now turning to our operations, in response to the COVID crisis, we have established internal operating plans based on three Cs, compassion, common sense, and confidence. We have implemented multiple solutions to protect our employees and their families while continuing our commitment to supporting patients. Besides the talented Marisa Dixon, our head of HR, we have an experienced and skilled management team in place supported by a seasoned and resourceful board. I'm glad to report that our operations continue without interruption. As well as remote rec, c19txr.org, and our operational update, I would like to comment on our very successful pivot to virtual meetings. We are now engaging with the transplant community more than ever. We have virtual advisory boards bringing together transplant nephrologists and cardiologists, community nephrologists, transplant coordinators and administrators, transplant patients, PharmDs, and HLA lab directors. We are deeply indebted to the incredible feedback, advice, and insights that we have received from leaders in the transplant community. Lastly, some might have scratched their head last year when we acquired AutoCare and Xin Management to form a digital backbone for KDX. While we could not have foreseen a crisis like COVID-19, the trend towards precision medicine and the adoption of new interactive platforms based on clinical data was always there. Now, telehealth has become a reality overnight. With these digital capabilities, CareDx is well positioned to lead this new era in patient engagement, clinical decision-making, and transplant care. As we announced a few weeks ago, we have withdrawn our 2020 revenue guidance. While volumes have almost come back to normal, we will undoubtedly see an adverse revenue impact in Q2. As I'm thinking about year-end, I'm asking three questions. First, at the macro level, will COVID-19 and shelter-in-place orders have a lasting impact? For example, will there be another wave? Second, how successful will we be continuing to roll out remote track, mitigating or potentially overcompensating the COVID impact? And third, when will transplant centers reopen to surveillance visits and when will their transplant volumes get back to pre-COVID levels? We are applying our three Cs. We have tremendous compassion, especially for patients and frontline caregivers. We lean in and apply common sense as we respond to the crisis and the path to recovery. And we are confident as we have built a great platform in transplant care. So I feel optimistic about the remainder of 2020 and look forward to providing updates on the progress in future communications. Now I'll hand over to Mike to discuss our financials. CareDx could not have a better suited CFO than Mike Bell in this time of crisis. He's doing a phenomenal job. Mike. Thank you, Peter.