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11/16/2021
Good morning, ladies and gentlemen, and welcome to the Stage Zero Life Sciences Third Quarter Financials Call. At this time, all participants are in a listen-only mode, and the floor will be open for your questions and comments following the presentation. It is now my pleasure to turn the floor over to your host, Rebecca Greco. Ma'am, the floor is yours.
Thank you, Catherine. Good morning, everyone, and thank you for joining the Stage Zero Third Quarter 2021 Earnings Conference Call. Joining me today is Stage Zero Chairman and CEO, James Howard Tripp, CFO and COO Matthew Pietras, and Dr. Padman Vamadevan, Stage Zero's Clinical Director of Global Program Development. Please note the management's discussion today will contain forward-looking statements about anticipated results and future prospects. Forward-looking statements involve a number of risks and uncertainties, and Stage Zero's results may differ materially from those discussed today. Investors should consult the company's ongoing quarterly filings and annual reports for additional information on risks and uncertainties relating to these forward-looking statements. Investors are cautioned not to rely on these forward-looking statements. The company disclaims any obligation to update these forward-looking statements except as required by law. On today's call, management will refer to non-GAAP-adjusted EBITDA. The metric includes certain items discussed in our press release under the heading Discussion of Non-GAAP Financial Measures and any other items that management believes should be excluded when reviewing continuing operations. The reconciliations of Stage Zero's non-GAAP measures to the comparable GAAP measures are available in the financial tables of the Q3 2021 financial results press release on Stage Zero's website. With that, I would like to turn the call over to James Howard-Tripp, Stage Zero's Chief Executive Officer and Chairman. James?
Thank you, Rebecca, and hello, everyone. Thank you for joining us today. Q3, in what has been a tumultuous 18 months, has certainly been one of our busiest. This quarter, we very significantly advance State Zero's mission of developing one of the foremost cancer detection, diagnostic, and treatment programs in the world. Our proprietary technology, the deep expertise of our clinicians, and our experienced leadership team have stayed zero position to catalyze change in healthcare of this real certain. On September 2nd, we closed the acquisition of Care Oncology, creating a vertically integrated healthcare company. Since then, we have launched the ABIRD program, positioned Aristotle within it, established an on-site clinic in Richmond for Aristotle specimen collection as we test and build out a physical help-and-spoke model, significantly expanded our management team both in the U.S. and the U.K. on board as a new CFO and COO. We also listed on the OTCQB exchange in September. This past week, we announced an alliance with Team Cancer America, which gives us both a national platform to highlight the need for early diagnosis of cancer in all age groups and the fact that there are strategies by which to do this. Please turn to slide four. As a company, we are devoted to meaningfully improving cancer patient outcomes through early detection and intervention. The COVID-19 pandemic has exacerbated the challenges the medical field faces in detecting and treating cancer. During the height of the pandemic, physicians' offices were often closed, routine checkup schedules were disrupted, biopsies and screening appointments were postponed. This dislocation of critical medical services has caused more cancer diagnoses to be made at later and later stages, leading to tragic and irreversible patient outcomes. In fact, it is now spoken of as a tsunami of late-stage cancer diagnoses. We have to get back to finding cancer early. Next slide, please. At Stage Zero, we're promoting a healthcare system that minimizes illness by proactively identifying high-risk individuals at the earliest detectable stages of disease. To this end, after more than a decade of research, we have developed Aristotle, a first-of-its-kind multi-cancer testing panel for simultaneously screening for multiple cancers from a single sample of blood using mRNA gene expression profiling. What makes Aristotle different from other multi-cancer liquid biopsy screening tests is the high sensitivity and specificity that we offer. With Aristotle, a positive test does not just tell the patient that they have some form of cancer. tells the patient with greater than 90% accuracy the type of cancer they most likely have. The sensitivity and specificity continues through to detecting cancer at all stages. For example, in colorectal cancer finding stage one and two cancer equally as well as stage three and four. This is a major differentiator from other cancer tests and a significant competitive advantage for stage zero. Next slide. The early diagnostics market is large and growing quickly, but this is only part of our story. Combined with our liquid biopsy and telehealth capabilities, we're positioned at the nexus of three of the most exciting areas in healthcare today. We could be in any one of these segments, but we are instead in all three. I will say that again. We could be in any one of these segments, but we are instead in all three. The opportunities ahead of us are substantial, and the scope of how we can improve patient outcomes for potentially millions of people is a driving force of why we're doing what we do day-to-day at States Europe. Next slide, please. We believe that vertical integration is an essential part of success in today's post-COVID marketplace, and recent examples of successful companies support that. Therefore, the acquisition of care oncology was an important step in realizing our growth strategy. So what have we done? We know the pandemic has fundamentally changed the way healthcare services are provided, most noticeably with an enormous shift to telehealth services. State Zero and care oncology have well-developed telehealth capabilities that allow us to read patients mostly everywhere. the UK and European Union, Canada, New Zealand, Australia, India, for example, in a way that at the times requested by patients, we can consult with them, arrange for them to have diagnostic tests, send a phlebotomist to their home, arrange for them to visit one of our laboratory partners and provide them with treatment plans. We had to, however, bolt our two systems together in the same way we have had to merge the IT systems. Websites to where we would direct patients to initiate programs had to be built and aligned. Payment options allowed. Case managers, nurses, and physicians briefed or trained in the new tests and programs. External lab partners brought on board and the myriad other tasks that go with large, sophisticated program introductions. Health clinics, the parent company to care oncology, were very accommodating before the closing and worked with us to test and fine-tune various marketing messages that has allowed us to get out of the gate. For example, with the small change in marketing in the U.S. to the TREAT program, we've seen an immediate 15-20% increase in consultations as we're able to reach more people. Various components of our comprehensive cancer care has been available for a while. They have, however, only just come together in a comprehensive way we intended. Diagnostics plus treatment with the attendant revenue streams from each. Remember, patients stay with us for months and years. We're now processing the significant number of patients in the queue for the tests and programs. As a reminder, AVERT is the program that helps patients to reduce their risk of developing metabolic pathway diseases, such as cancer, by way of early detection and intervention. Aristotle and the single cancer test are integral to this. TREAT, built on the care oncology protocol, is our adaptive treatment program to standard of care for patients with cancer. Our innovative solutions and market approach combined with our dedicated team of experts, sets us apart in the healthcare industry. In summary, we're taking a systematic approach centered on creating patient convenience and value. We run our tests in our own advanced laboratories, employ our own physicians, nurses, and phlebotomists, and have our own proven patient care protocols to take back control from disease and empower patients to live longer while improving their quality of life. I now turn the call over to Dr. Padman Vamidavan, our Clinical Director of Global Program Development. And Pad will share a clinical perspective. Pad, please go ahead.
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