Release Date: November 15, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- VolitionRX Ltd (VNRX, Financial) reported significant growth in sales of their Nu.Q Vet cancer tests, with over 110,000 tests sold in the first three quarters of 2024, nearly double the total sales of 2023.
- The company's revenue growth is accelerating, with a year-to-date increase of 100% and a quarterly increase of 307% compared to the same periods in 2023.
- VolitionRX Ltd (VNRX) has expanded the availability of its Nu.Q Vet cancer test to 17 countries, enhancing its global market presence.
- The company has successfully reduced operating expenses by 28% compared to the same quarter last year, contributing to a 36% reduction in cash used in operating activities.
- VolitionRX Ltd (VNRX) has secured commitments for over $2.2 million in non-dilutive funding from agencies within the Walloon region, Belgium, supporting its financial stability.
Negative Points
- Despite the revenue growth, VolitionRX Ltd (VNRX) acknowledges that revenue can be lumpy at this stage, making it difficult to provide meaningful revenue guidance.
- The company is still working towards achieving cash neutrality by 2025, indicating ongoing financial challenges.
- VolitionRX Ltd (VNRX) has not yet achieved the milestone for feline testing, as they are still optimizing the test for cats.
- The company faces challenges in commercializing its human cancer tests, with ongoing studies and data publications yet to be completed.
- VolitionRX Ltd (VNRX) is heavily reliant on securing licensing deals in the human clinical space to achieve its financial goals, which introduces uncertainty.
Q & A Highlights
Q: Can you talk about the market dynamics in Japan and the penetration rate among veterinary clinics?
A: Terig Hughes, CFO, explained that Fuji has been effective in marketing the New Q vet cancer test, achieving orders from 10% of their veterinarians. Japan's market is significant, comparable to a large U.S. state like California, and Fuji's efforts have been commendable in promoting the test.
Q: With a modest revenue projection for New Q next year, do you think this number is low given the current ramp?
A: Cameron Reynolds, CEO, acknowledged the strong ramp and the difficulty in providing guidance due to revenue lumpiness. He emphasized the large market potential, with 80 million dogs in the U.S. and a target market of 25 million for the screening test, indicating significant growth potential.
Q: Regarding cash neutrality in 2025, will all business segments be self-sufficient in terms of financing?
A: Cameron Reynolds, CEO, stated that the goal is for each pillar to support itself, with licensing agreements playing a key role. The focus is on ramping up revenue and securing licensing deals in oncology and sepsis to achieve cash flow neutrality.
Q: Should we expect further decreases in operational expenses in the coming quarters?
A: Terig Hughes, CFO, confirmed that operating expenses have been reduced and are expected to decrease modestly. The goal is to maintain a modest rate of expenditure to achieve cash flow neutrality next year.
Q: Can you provide updates on the feline testing and its commercialization status?
A: Cameron Reynolds, CEO, clarified that the feline milestone is still pending. The company has optimized the test for cats, which have lower blood volume and nucleus OMs levels, and is now working on a feline study to demonstrate clinical utility.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
