Release Date: November 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Aspira Womens Health Inc (AWH, Financial) delivered over 6,000 OvaSuite tests in Q3 2024, marking a 4% increase from the same period in 2023.
- The company secured a $10 million federal award from ARPA-H to fund the development of ENDOinform, a non-invasive diagnostic test for endometriosis.
- OvaWatch, part of the OvaSuite portfolio, saw a 27% year-over-year increase in test volume for the quarter.
- The New York State Department of Health approved OvaWatch for use, expanding access to a significant healthcare market.
- Aspira Womens Health Inc (AWH) improved its gross margins to 60% in Q3 2024, up from 59% in Q3 2023.
Negative Points
- Severe weather, including Hurricane Helene, negatively impacted growth in several major markets, affecting Q3 2024 performance.
- The average unit price for OvaSuite tests decreased slightly, contributing to a modest decrease in overall revenue.
- Research and development expenses are expected to increase in Q4 2024, potentially impacting short-term financials.
- The company filed for an extension to complete its Q3 2024 financial report due to complex accounting matters.
- Cash and restricted cash decreased to $2.1 million as of September 30, 2024, down from $2.9 million at the end of 2023.
Q & A Highlights
Q: Why do you think Aspira's endometriosis proposal was chosen by ARPA-H out of the 1,700 submissions?
A: Dr. Sandra Milligan, President: The selection was due to Aspira offering a complete package from development to commercialization, with a proven track record for our OvaSuite. ARPA-H likely valued our ability to take a proposed solution all the way to the finish line, highlighting our science, development, and commercialization capabilities.
Q: Can you provide a range of estimated timelines for OVAinform and ENDOinform development to commercialization? Will it likely take the full two years of ARPA-H funding for ENDOinform?
A: Dr. Sandra Milligan, President: We have a two-year funding contract with ARPA-H, but we are working to accelerate development and are optimistic about completing it in less than two years. OVAinform is still in development, with capital investment allocated for appropriate stage gate progression.
Q: Any thoughts on possible partnering with a company creating endometriosis therapies in the future, and how would you describe the current overall partnership environment?
A: Dr. Sandra Milligan, President: We envision future partnerships, particularly for a predictive diagnostic to monitor endometriosis therapy responses. The partnership environment is positive, and we anticipate increased investment in women's health, which will enhance partnership opportunities.
Q: What were the impacts of severe weather on Aspira's third-quarter performance?
A: Nicole Sandford, CEO: Severe weather, including Hurricane Helene, negatively impacted our growth, particularly in major markets like Florida and Georgia. Despite this, we saw a 4% increase in OvaSuite tests compared to the previous year, driven by OvaWatch's 27% year-over-year growth.
Q: How has the ARPA-H award impacted Aspira's development strategy?
A: Dr. Sandra Milligan, President: The $10 million ARPA-H award supports the completion and commercialization of ENDOinform. It also provides access to a network of nearly 600 members from various sectors, which we plan to leverage for insights and collaborations to accelerate development.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
