CareDx at Wells Fargo Conference: Strategic Growth and Innovation

On Friday, September 5, 2025, CareDx Inc. (NASDAQ:CDNA) presented at the Wells Fargo 20th Annual Healthcare Conference 2025, outlining its strategic focus on growth, operational improvements, and advocacy for coverage policies. The company emphasized its strong financial position and commitment to innovation, while also addressing challenges such as draft local coverage determinations.

Key Takeaways

• CareDx is expanding molecular monitoring in organ transplantation, especially for kidneys.
• The company has a strong balance sheet with $200 million in cash and no debt.
• Revenue cycle management improvements are expected to boost ASP by 7% to $1,400 by mid-2025.
• CareDx is integrating services with Epic, targeting 50% center usage by next year.
• The company is transitioning its digital solutions to a SaaS model.

Financial Results

• Test volume growth in Q2 was in the low double digits, with kidney volume growth nearly 20%.
• CareDx aims for an ASP of $1,400 by mid-2025, a 7% increase.
• The company reported a $5 million write-off due to old claims cleanup.
• Digital and patient solutions have grown at a 20% to 30% CAGR over the past three years.
• Full-year revenue guidance is set at a midpoint of $370 million.

Operational Updates

• Sixty transplant centers have adopted kidney surveillance protocols, with potential for further adoption among over 200 centers in the U.S.
• CareDx plans for 10% of its volume to come through Epic by the end of the year, increasing to 50% by next year.
• A new revenue cycle management team is expected to drive ASP growth over the next two years.
• Two-thirds of U.S. transplant centers use CareDx’s digital solutions, with higher volume utilization and revenue from centers using multiple solutions.

Future Outlook

• CareDx is investing in commercial expansion and focusing on clinical messaging and product adoption.
• The company is pushing for in-network contracts with payers for AlloSure.
• Challenges include addressing concerns about draft LCD and its impact on testing frequency and coverage.
• The strategy includes leveraging digital solutions and pharmacy services for comprehensive transplant center solutions.

Q&A Highlights

• The draft LCD affirms coverage for kidney surveillance testing but raises concerns about testing frequencies for heart care.
• The KOR study showed AlloSure’s effectiveness in early rejection detection, enhancing patient outcomes.
• CareDx conducted a buyback in Q2, emphasizing growth and commercial expansion as capital allocation priorities.

For more detailed insights, readers are invited to refer to the full transcript below.

Full transcript - Wells Fargo 20th Annual Healthcare Conference 2025:

Brandon Couillard, Analyst, Wells Fargo: All right, we’ll get started. Good morning, everybody. Welcome to the Wells Fargo Health Care Conference. I’m Brandon Couillard, Covered Life Science Tools and Diagnostics. Thrilled to have CareDx with us at the conference this year. Joining us this morning for this conversation, CEO John Hanna as well as CFO Keith Kennedy. Guys, thank you both for being here.

Keith Kennedy, CFO, CareDx: Thanks for having us.

Brandon Couillard, Analyst, Wells Fargo: Yeah, thanks so much for having us, Brandon. Maybe to kick off, you and Keith have both been at the helm for roughly a year now, maybe a little more. Can you just talk about at a high level what you view as the greatest opportunities for CareDx and what you’re most excited about the story right now?

John Hanna, CEO, CareDx: Yeah, CareDx is a phenomenal company. The impact we have on patient care for individuals that are going through the process or have had an organ transplant, monitoring to safely ensure that that organ and graft is preserved as long as possible, is a really important work and set of mission for our company. I think the greatest opportunity is that this market we’re addressing is really just in the early stages of adoption of these services. We see this across diagnostics, molecular testing is becoming more and more a standard of care. These products continue to grow in their penetration in these markets. We still feel like there’s a long road ahead for CareDx and for organ transplant molecular monitoring.

Keith Kennedy, CFO, CareDx: I’d say my number one takeaway is the company is perceived as an innovator in the space. We were first to market with tests that I think relieved something that was traumatic for patients who are already going through a traumatic process in their life. I feel that patient journey, what you see in all of our meetings when you’re at the company, are really what we’re all about at CareDx. We’re just continuing that mission. It’s been around 25 years, and I think, yeah, good long journey ahead of us. We’re really excited about it.

Brandon Couillard, Analyst, Wells Fargo: You’re coming off a pretty solid 2Q overall test volume growth, low double digits. Kidney was up almost 20%. Just unpack what’s driving the growth in kidney and kind of across the portfolio heart one as well.

John Hanna, CEO, CareDx: Yeah, I think this is a testament to the strategy that we laid out in 2024 and the execution of the entire company. Keith is doing a tremendous job driving operational excellence and making it easy to do business with CareDx, with transplant centers. We were here in Boston this week meeting with a number of transplant centers, and they continue to comment on how they’ve seen a transformation in the company, and they want to continue to do business with us. Our strategy was to do really solutions-based selling. We offer a tremendous portfolio of services from software solutions that make transplant centers operate more efficiently, IVD kits to do HLA matching of deceased donor organs to recipients, and, of course, our molecular monitoring services post-transplantation.

Taking that solutions approach and really demonstrating that we are a transplant-focused company that is here to service the needs of those customers has driven significant adoption of our products. In kidney in particular, the return to utilizing the testing for surveillance and monitoring has really driven that volume growth. As we said in the 2Q call, we have now 60 transplant centers nationwide that have adopted protocols for kidney surveillance for their transplant patients.

Brandon Couillard, Analyst, Wells Fargo: That kind of jumps into my next question, which has been a big focus of the company the last year or so, getting these centers on surveillance protocol. Just remind us what that is. You have made a lot of progress. You did mention the 60 number. It’s been a little while since you had given an update, I think, on that. How much more room there is in terms of additional centers that you want to convert?

John Hanna, CEO, CareDx: There are over 200 kidney transplant programs in the U.S., so there’s plenty of room to go. The 60 are centers that have actually written a protocol that is broadly adopted at the center. There are many more centers beyond that that order surveillance testing for their kidney transplant patients, of course, and they also order it in the forecast setting. A patient presents with clinical signs and symptoms of rejection, or they’re adjusting their immunosuppression therapy and want to monitor for the efficacy of that dosage. There are a number of clinical scenarios where the testing can be ordered that drive that volume. I think, as more and more data gets published in this space from clinical studies showing that it can be utilized in these different clinical contexts, that’s helping spur more adoption and utilization of AlloSure.

Keith Kennedy, CFO, CareDx: I’d add there for people that are not in transplant, picking up rejection, you know, six months or even two months prior to the rejection being seen in the clinic, it gives the physicians the ability to modify that path and save the graft. That is a well-known concept in the transplant community. I think that’s why the adoption continues. If you don’t do surveillance on a cadence, you’re going to miss it. If you say you’re going to do surveillance every, you know, twice a year, you potentially could miss something that would be life-threatening for the patients. For the blood draw, that’s just not a risk the physicians want to take.

Brandon Couillard, Analyst, Wells Fargo: Could you talk for a moment just about the lag effect of a center that adopts surveillance? I believe they start with just year-one patients at that point. Are they 100% 744 in terms of their testing frequency?

John Hanna, CEO, CareDx: Yeah, so when a new protocol is implemented at a center, you know, and this is consistent across many areas of medicine, you have a group of clinicians that practice in that department. They agree on a set protocol to uniformly manage their patients, and they want to track their data and outcomes against that. Typically, when they implement something new, they will start that protocol against newly transplanted or newly treated patients. What we see is, you know, let’s assume a center implements a protocol. If they do 120 transplants a year, then in month one, there’s 10 patients on the protocol. Month two, it’s 20, 30, 40. That volume of patients on that protocol builds, and then they’re able to track their data and outcome relative to how that protocol is performing in practice.

They’ll tweak it as they go based on, you know, what they experience in terms of outcomes. Certainly, they’re not all 744. 744 was the ARTS protocol that was recommended by key opinion leaders in the market when CareDx first validated its tests in prospective clinical trials. That was developed consistent with other monitoring tools that are utilized in transplant, like serum creatinine, protein urea, abdominal ultrasound. They monitor these patients monthly for the first six months and then quarterly thereafter. Many transplant centers use that same protocol for molecular monitoring surveillance. Certainly, there are some that, you know, use it in a fewer frequency.

Keith Kennedy, CFO, CareDx: I’d say Epic is going to be a big contributor to helping these practices administratively work on the protocols because you can set a protocol and then use the system to, you know, schedule patients. We were talking to someone here in Boston yesterday, and they’re like, we have people coming from six different states to our center that we’re trying to serve. You can imagine if you’re transplanting 200 transplants a year, how many patients are out there getting surveillance testing and the administrative side of doing that. I think these systems and investments we’re making on the back end will actually be helpful. You’ll see a pickup in that is my expectation over the next 24 months.

Brandon Couillard, Analyst, Wells Fargo: How many centers do you expect to be on surveillance protocol, let’s say, by the end of this year and be able to quantify the contribution? Kidney volume’s up, it’s like almost 20%. It’s like how much of that came from surveillance?

John Hanna, CEO, CareDx: I don’t think we’ve quantified that or given a guidance on the protocol number, but I think that it’s going to continue to grow. There is a belief among clinicians that when they stopped using surveillance in 2023 because of disruptions in the marketplace due to changes in the coverage policy, patients were impacted. When the restrictive coverage around surveillance was removed in August of last year, many of the centers said, we’ve seen an impact on outcomes, and we’re ready to start doing this again. I provided in our Q3 call last year an update that 10 centers between that August date and November 1 had initiated new surveillance testing protocols. Now we’re up to 60 centers that have surveillance testing protocols. Not every center is going to write a protocol, which is OK, right?

They’re not going to come to complete consensus on what they do on every patient. I think to your earlier question around the cadence of testing, it’s very dependent on the patient, right? Patients go into transplantation, particularly in kidney, for a number of reasons. The vast majority is due to end-stage renal disease. There are other conditions that affect patients earlier in life, like lupus nephritis. You could have a young female that has kidney dysfunction due to lupus and then has to get a kidney transplant. Sometimes those patients are relatively healthy once the transplant occurs, and they don’t need to be monitored as frequently.

As you saw in our comments around the policy, we really believe that clinician judgment is important in these scenarios, and they should have the ability to determine the frequency of testing for every patient based on what their pre-test probability of rejection is, given the accuracy of the match between the organ and the individual. If you have, for example, a living donor, right? If a woman’s kidney is donated from their mother or father or their sister, the match is so well that the likelihood of rejection is very low, right? Whereas if you have a patient who’s in their 50s, they end up getting an organ, maybe they have comorbidities, the match isn’t as great, then the risk of rejection is significantly higher. Clinicians want to monitor those patients closely because that’s a real investment you’re making in that graft and in the survival of that patient.

You want to avoid putting them back on dialysis.

Brandon Couillard, Analyst, Wells Fargo: Keith, you brought up Epic. I think you talked about a goal of having 10% of your volume, I think.

John Hanna, CEO, CareDx: By the end of the year.

Brandon Couillard, Analyst, Wells Fargo: Coming from or through the Epic system, how are you tracking to that metric so far? What will it mean just operationally and to volume growth?

Keith Kennedy, CFO, CareDx: Yeah, we met with Boston Children yesterday. We’re going live in a couple of weeks there. It’s going really well. The adoption there, we’re only implementing Epic because we have our own instance of Epic. The way this works is the hospital has an Epic instance, we have an Epic instance, and the HL7 connection. They’ve branded that as Aura. That going live is just connecting to their transplant programs. We do not have to connect across the oncology platform, women’s health, and all these other organizations within the hospital. Us implementing this should be easier than, say, an Exact Science trying to do that or who already have it, obviously. We’re really excited about it. We’re hoping and trying to target and build a plan next year. We’re not done.

I’m not giving guidance, but I’m saying we’re going to try to get to 50% by the end of next year across all of our centers that use Epic.

Brandon Couillard, Analyst, Wells Fargo: Some companies talked about seeing really strong uplifts, up to 20%, 50%, 100% in terms of the volume impact when they flip Epic on. Why couldn’t you, why is 50% the right number for next year? Could it be 100% or higher? What are the gating factors to that? What’s a reasonable kind of expectation in terms of?

Keith Kennedy, CFO, CareDx: The reason is more administrative. It’s less about CareDx. It’s more about if I go to Mass General and they’re integrating with Brigham’s and they’re in the middle of a merger and they have to have their IT team from this team and that team talk, and then they have to stack you in with Tempus and GeneDx and all these other people, and you’re getting an order and they only have so many people to do this. They have to go through their software quality and analytics to make sure that they’re like, OK, we accept this. This is the right pipeline. It’s called interoperability. We’ll get there. I think we’re very confident. We just got our first perfect score out of Epic. I like to brag about this. We got the only perfect score on implementations at Epic this past month. We’re really excited about our work.

Brandon Couillard, Analyst, Wells Fargo: Congratulations on that.

Keith Kennedy, CFO, CareDx: Yeah, thank you.

Brandon Couillard, Analyst, Wells Fargo: Keith, one major program you’ve been involved in is revenue cycle management. Just talk about what you came into, the progress you made, and why that’s been so important to the company.

Keith Kennedy, CFO, CareDx: When I came in, it took me probably till December 9th when I called John and said, hey, I’m going to bring in a new team. I came in and it was really built around medical coding, the team instead of molecular diagnostics. There wasn’t a lot of experience on the team. I needed to build a team that really understood that plus automation and workflows. You can imagine if you have 50,000 tests, imagine if you’re Exact Science. If you have 50,000 tests a quarter and you have to do, say, eligibility verification, you have to do prior authorizations or retro authorizations, you have to do follow-up, you have to do appeals on every single claim, the magnitude of that volume. I did an analysis and we were only implementing 10% of the workflows that were in the existing tool we were using.

The low-hanging fruit was so dramatic that I was like, when we gave our long-range plan, we said 3% growth in ASP because John and I did not know. We were new to the company and we didn’t want to get over our skis in this. Our gut was at $1,300 average collection on a test, we’re getting $2,700, almost $2,800. At Medicare pricing, this is crazy. This doesn’t make any sense. The amount of zero pays were over 50%. It was just a lack of failing to, if you do not hit the timeline, if they say it’s seven days from the blood draw to file X paperwork, if you don’t file the paperwork, that causes a problem. You have to have the workflows, have the team that knows how to do it, set up the automation and do it.

I think over the next two years, and it’ll be more dramatic, hopefully you’re going to see more of a ramp and we have more of beaten rays resulting from this stuff. We’re going in the right direction. I’m highly confident that I have the right team, the right investment, and the results are showing. Hopefully as the quarters come out, I’m able to do that and explain that.

Brandon Couillard, Analyst, Wells Fargo: How much is that contributing to ASPs this year and maybe the next two years?

Keith Kennedy, CFO, CareDx: Yeah, the first thing is we’ve written off $5 million. We had to clean up some of the stuff that we inherited. I like to tell investors, OK, when you do revenue cycle management and diagnostics, you need to put your diagnostics hat on. When you go to a CFO in this space, he or she is looking back six months or two quarters, potentially longer, to maturity of claims to estimate their revenue. Any change I make today will have an impact 60 days into the future or 90 days into the future. You have to future trip. It’s not six months, it’s potentially nine months before you see the impact. Everybody thought, oh, they’re making these changes, so tomorrow my ASP is going to change.

When I say at the end of the year, we’ll be at $1,400 ASP, which is a 7% increase, what I’m saying to you is that’s my first half of 2025. When I make a change in the revenue cycle team in January, February of 2025, you’re not going to see that until December of 2025. The actual cash in the first half will be at $1,400. Does that make sense? It’s a look back. There’s a lag in this business in order to convince the auditors that’s a reasonable estimate of what you’re going to collect.

Brandon Couillard, Analyst, Wells Fargo: Gotcha. It’s very helpful. John, it’d be great to just, I guess, get an update on the draft LCD. For those who may not be as familiar with what that was saying, you did quantify a couple of scenarios on the last call, one of which might be a $15 million impact, another might be $30 million. Just unpack your assumptions behind that. I think you did submit your kind of open period feedback letter, I think, on Monday. Any comments you care to hear from that?

John Hanna, CEO, CareDx: Yeah, sure, I’m happy to. The company has been advocating for over two years now to clarify this policy and put to rest the question of whether or not surveillance testing in kidney transplantation is covered. We were successful with that in this policy. It does affirm coverage for surveillance testing, not in lieu of a biopsy procedure, which was the main question here from a policy perspective. We’re very pleased with that. We think there’s been a lot of progress here from the policymaker on the issue. We provided, I believe, very constructive feedback on that policy. I alluded to that a few minutes ago around testing frequency, in particular in kidney and how we believe that should be based upon the clinician’s judgment and the pre-test probability of rejection in an individual patient. There were really two issues that we commented on at great length in the policy.

The first is testing frequencies. The policy sought to put a cap on surveillance testing that was four in the first year for kidney and then two in every subsequent year. We addressed that, like I said, from the perspective of, hey, clinicians should have the freedom to practice as they see appropriate for each individual patient. The other policy issue was really around coverage for heart care, which is the utilization of both Alimap Heart, which is a gene expression test that looks at immune system activity in patients that have undergone a heart transplant, and AlloSure Heart, which is our donor-derived cell-free DNA assay that looks at organ damage.

The combination of the two products has been demonstrated in prospective studies to have a significantly higher likelihood ratio of detecting rejection when both tests are positive compared to when either test is positive alone or both tests are negative. In that particular policy, the policymaker took the position to no longer pay for two tests on the same date of service. That was the construct of the second scenario that I laid out, which is to say if they only pay for one test per date of service, that would be approximately $30 million headwind to the company on an annualized basis. I think it’s really important to note that this is a draft policy. We did publish our comment letter on our website. We put out a press release on Tuesday. The link to the comment letter, investors are welcome to read that.

It’s quite lengthy and very dense from a clinical evidence perspective. As I said, we tried to be very constructive here in this process and ensure that we’re commenting based on the evidence supporting the utilization of these services versus anything that’s subjective and really grounded in opinion, right? We think we’re going to make progress here. The policymaker has a draft for comment period for a reason. They want to hear from stakeholders, both the manufacturers and labs that produce these services, as well as key opinion leaders and researchers in the market that have published the evidence supporting the utilization of these services and that use them every day. I think that comment will be quite robust and we’ll see some movement on the policy, hopefully, when it gets finalized.

Brandon Couillard, Analyst, Wells Fargo: One other highlight out of the quarter, you published your first manuscript from the KOR study. Just touch on the main takeaways from that and what impact you think that could have on either payer coverage or adoption and adherence.

John Hanna, CEO, CareDx: Yeah, so the KOR study publication was a prospective multi-center study. 56 transplant centers participated in this, kidney transplant centers, nearly 2,000 patients enrolled. The outcome of that study demonstrated that when a patient was monitored with surveillance testing and they had an elevated AlloSure test that was indicative of organ damage, they were six times more likely to detect rejection when that patient underwent a biopsy compared to when their AlloSure result was not elevated. It was a very important finding. Over 75% of the patients in the study had greater than four surveillance tests in the first year, speaking to the frequency question. On average, we see that in a surveillance setting, AlloSure detects rejection in a subclinical setting upwards of three months in advance of it being detected clinically or the presentations of sign and symptoms. It is very clear here that surveillance monitoring works.

It is an early indicator and sign of rejection. It enables the clinician to take action and treat the patient and ensure that that graft is protected and can continue forward on immune suppression medication such that it extends, you know, presumably survival.

Brandon Couillard, Analyst, Wells Fargo: I want to touch on the revenue guide for a moment. You tightened the full year range. Midpoint is the same. You pointed to a volume growth in 3Q of, I think, 2% to 3%. In terms of sequential volume growth, you talked about the fourth quarter being up 5% to 6% sequentially. What’s driving that sequential acceleration in the fourth quarter?

John Hanna, CEO, CareDx: Yeah, there’s a little bit of seasonality in the business. You know, you see the third quarter is relatively flat over Q2. Some of it has to do with the number of days in the quarter. Quite frankly, there’s a lot of vacation in the third quarter, right? You’ve got 4th of July, you’ve got Labor Day, things like that. We have a business that is strong right now. We had re-acceleration of our growth rate year over year in Q2. We tightened the range on the guidance. As Keith mentioned, we had to write off about $5 million in the first half of the year to clean up some old claims. We think we’re done with that. We shouldn’t see any negative write-offs in any future period in the near term.

We have a lot of confidence in the midpoint of our guide being $370 million and just narrowed the range there to provide some perspective on how we think the end of the year is going to finish.

Brandon Couillard, Analyst, Wells Fargo: Okay. I want to touch on just the digital and patient solutions segment. Maybe it doesn’t get a whole lot of attention. It’s about 15% revenue, but it’s grown at like a 20% or 30% CAGR the last three years. Part of your growth algorithm is in the notion that of centers using more than one CareDx service or test. Just touch on what’s driving that type of growth in digital and what impact that bundling sort of has, I don’t know if bundling is the right word, on kind of growth.

John Hanna, CEO, CareDx: Yeah, so the digital solutions are really important. I think, you know, this is something we tried to articulate in our investor day back in October of 2024, is that CareDx’s approach to the marketplace is distinct in molecular diagnostics in that we have this suite of software products. We also have our own pharmacy, and so we service the customers end to end. We don’t just sell a test, right? That is a different go-to-market approach than, you know, nearly any other diagnostic company that you see out there in this space. That digital solutions business continues to grow very strong because those solutions are important to transplant centers. It helps them operate more efficiently. We have products that enable the digital management of transplant patients on the waitlist within a center. We sell services that allow for medication, drug-to-drug interaction analysis.

When you do a discharge from the center post-transplantation, our tool enables them to, you know, print out and provide the patient a view of all the medications that they’re on, what the drug-to-drug interactions could be, what the potential side effects are, and help manage through that. We also have remote patient monitoring services, which are particularly well adopted in the lung transplant space. Patients go home with a spirometer, and we monitor their lung function at home to look for declines in lung function, which is an indication that the patient, you know, is having rejection and needs to get in and see the clinician. Quality reporting, which is one of our most popular tools, in particular in the kidney space, where we have the implementation of the IOTA program, a demonstration created by CMS to drive more kidney transplantation and utilization of more organs.

Our tool allows the centers to analyze where they are in terms of the performance of the center relative to the IOTA metrics on any given day. These tools are really critical to the functioning and efficiency of a transplant center. We continue to see their adoption grow. As you mentioned, when we look at our business, centers that utilize three or more of our digital inpatient solutions have 50% higher volume utilization of testing services and two times the overall revenue generated in those centers than those that use less than three of our digital inpatient solutions. We lead with those solutions. When we go into a center, we don’t just walk in and talk about a molecular test. We walk in and say, what are the challenges that you’re trying to address this year at your transplant center and how can CareDx help?

Keith Kennedy, CFO, CareDx: We’re in two-thirds of all the transplant centers in the U.S. If that tells you how broad this is, that’s pretty impressive. You said you had two-thirds of the entire industry. I would say that business, our strategy was to convert that to a SaaS business. We’ve been working on that over the past year, moving that as software as a service and moving it into the cloud. I’m making a lot of investments on that. We’re upgrading the technology to more agile frameworks and things like that. I’m investing in that. I believe that is a very important administrative help to the transplant centers. We think that’s just a core software. We’re less concerned. It’s a profitable business, but we’re less concerned about the profitability of that business than we are helping the transplant community service these patients prior to the transplant and post-transplant.

Brandon Couillard, Analyst, Wells Fargo: Expanding your commercial payer coverage has been a huge focus, John, since you really got to the company. Just touch on the progress there. You added a ton of covered lives last year. What impact is that having? Maybe touch on just the new CPT code.

John Hanna, CEO, CareDx: Yeah, we did. The market access team is doing a fantastic job. We have been focused on transitioning our in-network contracts from an unlisted code to the new CPT code for AlloSure. We have a category one CPT code for Alimap. Having a unique code is really important because many health plans do not want to contract with you and set a price against an unlisted code. We went out last year to the AMA meeting. Our market access team did apply for a code, got a unique code issued for the product. It became effective April 1 and allowed them to begin the process of working through in-network contract negotiation with these payers. We’ve got a long list in the queue that we’re working through. I think it’s going to have an impact longer term, particularly in our revenue cycle management.

As you get into network and have contracts, it speeds the pace of payment and provides more predictability, especially in setting the rev rec price, right? Because then you have knowledge they’re going to pay at a specific amount and you’re able to recognize the revenue against those claims because you have confidence that you’re going to get paid because you’re an in-network provider. We think that’s going to have a significant impact going forward and we’re going to continue to push. We believe that being in-network is important, right? It smooths the process both for clinicians ordering the service and the patients on the back end. When you’re a non-participating provider, there’s all kinds of hoops you have to jump through. You have to file the prior authorizations. They want to look at medical records, etc.

It becomes just difficult to get paid and difficult to do business with you. Being in-network, I think, just smooths the process to driving more utilization of the service.

Keith Kennedy, CFO, CareDx: I’d say, you know, the people that attend these conferences, we’re probably 10X the next provider in this industry in terms of our presentations and the trials that get read out at these, you know, like World Transplant Conference or the, you know, ISHLT that we had earlier in the year. That kind of clinical evidence goes, it gets published, ultimately gets published. When that gets published in a peer-reviewed article, that’s what gets medical necessity. We’re at, you know, almost 100%. We’re at like 95%, over 95% for Alimap. That is increasing in cell-free DNA, the evidence behind that test and surveillance and all the clinical utility from that test.

Brandon Couillard, Analyst, Wells Fargo: You’ve been profitable for a while. No debt on the balance sheet, close to $200 million of cash. Have you been active on the buyback recently? Just talk about your priorities in terms of capital allocation.

John Hanna, CEO, CareDx: We did a buyback in Q2. We put out a press release on that. You know, we do have a strong balance sheet and no debt. We continue to utilize our cash to drive growth, right? We are in a market, as I said at the outset, that is, I think, still in the early innings in terms of adoption of the products. We have made significant investment in our commercial team, our field presence. We grew our sales force by about 50% in the fourth quarter of last year. Those team members are just really starting to hit their stride, right? I think it takes them about six months to get up to speed, learn the clinical, navigate their way through all the customers. Now in Q3, they’re really pushing the clinical messaging and adoption of the products.

We are going to continue to invest where we see outsized opportunities to grow the business. Some of that is in capital equipment, right? As we look at putting in software and other operational infrastructure to make us more efficient as a business, but then also investing in people on the commercial side to continue to drive growth of our solutions and services.

Brandon Couillard, Analyst, Wells Fargo: Maybe just 30 seconds. What do you think is most underappreciated by investors about the company? Anything you think folks are missing about the story?

John Hanna, CEO, CareDx: Yeah, I mean, I think that, you know, we have a scenario here where people are wondering what’s going to happen with this coverage determination. I think the one thing that was underappreciated, particularly when it came out in July, is the progress that we’ve made on this policy. The affirmation of coverage for surveillance testing in kidney was really critical. That’s what we’ve been advocating for for several years now. That has come to fruition. I think this is nothing but a positive for the company going forward.

Brandon Couillard, Analyst, Wells Fargo: Very good. Thanks so much, Brandon. We appreciate it. Thank you for being here. You all have a great day.

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