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On Tuesday, March 11, 2025, Guardant Health (NASDAQ: GH) participated in the Leerink Global Healthcare Conference 2025, presenting a strategic overview that highlighted both growth opportunities and challenges. The company discussed its recent ADLT pricing update for Shield, its implications for commercial strategy, and plans for expanding its product offerings and market reach.
Key Takeaways
- Guardant Health is leveraging ADLT pricing to improve gross margins and reinvest in commercial expansion.
- The company aims to solidify Shield’s position in colorectal cancer screening and advance multi-cancer detection.
- Positive market feedback and strategic investments are expected to drive significant growth in Shield volume.
- G360 saw low double-digit growth last year, with expectations of continued growth.
- The company is optimistic about Shield’s potential inclusion in ACS guidelines in 2025.
Financial Results
- ADLT Pricing Impact:
- Medicare pricing for Shield increased to $1,495, effective April 1.
- Expected ASP increase of $200, resulting in an ASP of approximately $800 for the rest of the year.
- Higher ASP anticipated to make Guardant Health gross margin positive.
- Gross Margin Improvement:
- Previous gross margin was breakeven; higher ASP from ADLT pricing will enhance margins.
- Targeting a cost per test of $200 at a scale of one million tests annually.
- G360 ASP Growth:
- ASP increased from $2,750 to $3,000 from Q4 2023 to Q4 2024.
- Opportunities to increase ASP to $3,200-$3,300 over the next few years, focusing on commercial payers.
Operational Updates
- Commercial Expansion:
- Plans to exceed the initial goal of 150 field personnel due to higher-than-expected Medicare gap fill rate.
- Reinvestment of additional gross profit into expanding commercial infrastructure.
- Shield v2:
- Launch expected before year-end, with increased sensitivity over Shield v1.
- Supplemental PMA pathway aligned with FDA for approval.
- Reveal:
- 2025 anticipated as an inflection year, transitioning to a gross margin positive test.
- Enabled by a 50% reduction in COGS and CRC surveillance reimbursement from Medicare.
- G360 Growth:
- Experienced low double-digit volume growth last year; expecting low teens growth this year.
- Upgraded tissue test launched last year, with another upgrade forthcoming.
Future Outlook
- Shield Focus:
- Building Shield as the preferred platform for blood-based colorectal cancer screening.
- Expanding capabilities from colorectal cancer to multi-cancer detection.
- ACS Guidelines:
- Optimism about Shield’s potential inclusion in ACS guidelines in 2025, which would aid appeal processes and state mandates.
- Competitive Landscape:
- Guardant Health expects a two to two-and-a-half-year advantage before competitors receive FDA approval and CMS reimbursement.
- Abu Dhabi Market:
- Minimal volume impact expected in 2025, with more significant contributions starting in 2026.
- Pricing in Abu Dhabi is not expected to dilute ASP.
Q&A Highlights
- USPSTF Impact:
- USPSTF recommendations will influence test accessibility for younger patients aged 45-64.
- Market Feedback on Shield:
- Positive responses from prescribing physicians and patients.
- NCCN Guidelines for Reveal:
- Gradual improvement in NCCN guideline language for MRD testing noted.
- Direct to Consumer Marketing:
- No large DTC campaigns planned, but pilot campaigns will be tested.
- Investment Priorities:
- Focus on screening investments to drive commercial growth and increase Shield volume.
In conclusion, Guardant Health’s presentation at the Leerink Global Healthcare Conference 2025 emphasized strategic growth and innovation. Readers are encouraged to refer to the full transcript for more detailed insights.
Full transcript - Leerink Global Healthcare Conference 2025:
Puneet Saldag, Analyst, LIRG: All right. I think we’ll go ahead and get started. Okay. I’m Puneet Saldag. I cover life science tools and diagnostics here at LIRG, and and my pleasure to be hosting and it’s my pleasure to be hosting team, garden tier.
Puneec, so that I’ve learned tools and diagnostics just for the saying that for the webcast. But, let me, first of all, you know, AmirAli, co CEO, Mike Bell, CFO. Welcome to our conference. Thanks for being here.
AmirAli, Co-CEO, Guardant Health: Thanks for having us. So,
Puneet Saldag, Analyst, LIRG: just to kick off, you know, news this morning, ADLT, it’s the main question we’re getting today. So maybe just, I’ll just turn it over to you. And it’s, it’s a pleasant surprise, I must say. We were expecting some time in 2025. It came in ahead of that expectation slightly.
Maybe just tell us the sort of the mechanism that, you know, sort of the next steps, timing of it, when does it get implemented, and and, what does it involve? Fee for service Medicare, Medicare Advantage? Maybe just talk through a couple of those points.
AmirAli, Co-CEO, Guardant Health: Yeah. Maybe I start, then I ask Mike to add some stuff in terms of the financial impact. So we are very happy with this development. Effective we now the Medicare pricing for Shield is going to get upgraded to $14.95 effective April one of this year. That would be in place for nine months and then we go based on PAMA ruling and PAMA pricing for Shield.
We are very confident of what it would happen for next round of ADLT pricing that would be in place from January of next year till two years after, and after that would be annual cycles based on what’s the PAMA market rate, and that would be our ADLT pricing. It’s been works actually for some time. First started with our FDA approval, then we got our PLA code, and then we submitted for this application. We are very pleased that CMS recognized this test as an innovation test. It was also FDA approved and qualified for this designation.
What it means for us is, this is something that we didn’t count on in our P and L management for 2025. This additional, rate would give us more opportunity to be more aggressive on the build out of our commercial infrastructure coast to coast and make sure more patients would get access to this life saving innovative test.
Mike Bell, CFO, Guardant Health: Yes. And maybe to add, as Amero said, we didn’t include this in our guidance. And our guidance we assumed an ASP of around $600 for the year. So this we estimate it’s going to have something like a $200 impact starting April 1. So, ASP should be around $800 Of course, over the remainder of the year, it’s going to depend on the mix, the mix between Medicare Advantage and commercial.
But we feel very confident that we’ll have an improvement in ASP from April 1. We’ll have an improvement in gross margin. At the end of last year, we were effectively gross margin breakeven. Moving up to an ASP of 800 from April 1 is going to make us gross margin positive. And as Amarillo said, then we can start to reinvest that positive gross margin back into the sales and marketing line to really drive the commercial ramp up.
Puneet Saldag, Analyst, LIRG: Got it. And in terms of, you know, the ADLT process, can you just elaborate a bit on, you know, how long do you have it? And then at what point the median payer rate would be looked at? And then sort of how how that plays out over into 2027?
AmirAli, Co-CEO, Guardant Health: Sure. So, it would be in place for nine months initially. Mhmm. Then we have to go through the reporting cycle. Effective, what we are gonna do from, April till end of the year is to capture the commercial data in terms of at what rate Shield is getting paid at.
Mhmm. And then that would be the PAMA rate the test is gonna get reimbursed for starting January of twenty six, and that’s gonna continue till December for two years. After that with the annual cycle, the PAMA rate is gonna get market price is gonna get adjusted. So effectively, though, the way that process works is, it’s gonna be based on the claims that are fully adjudicated during the period of reporting, which effectively for the first cycle would be for, the commercial claims, which are fully adjudicated. So effectively, what it means for a first cycle would be the medical, Medicare Advantage cases that are paid for, and we didn’t take them to that appeal.
So we are satisfied with the level of the payment, which effective would be the MA cases that are getting paid at the rate of Medicare rates. Because if it’s not, we are going to take them to that process. So effectively, this is giving us a lot of high confidence that we are confident of we can preserve this rate and keep it for the next two years starting January of twenty twenty six. And after that, we have a good control over it in terms of we can make business decision at what time, at what price we contract with commercial payers, which could impact our power rate effectively. So that’s the way it works.
We’ve done it for $3.60. We defended the ADLT pricing couple of times now at the rate of $5,000 and we are very experienced with how that process works.
Puneet Saldag, Analyst, LIRG: And, how where would you put USPSTF within that, construct?
AmirAli, Co-CEO, Guardant Health: So USPSA would, impact the accessibility of the test for younger patients. Right? So, for, initial phase at this time that we are focusing on the Medicare patients. Effectively for PAMA rates, it’s going to be kind of locked based on really in initial days what Medicare Advantage plans are paying for this test. And again, the ones that we are not happy with the level of payment, they’re going through the appeal process and sometimes the right appeal process could take multiple years to settle on the final payment.
And when you exclude the $0 payments, they don’t get counted in the PAMA rate. Also, you exclude the ones which are still not fully adjudicated. That basically gives you an indication of the level of control that we have over the process and how that rate can get defended over long term.
Puneet Saldag, Analyst, LIRG: And, you talked about ACS guidelines. Maybe just give us a sense of when should we expect an update on that? And how significant are those within this you know, sort of screening or with commercial payers?
AmirAli, Co-CEO, Guardant Health: Yeah. So we have been in conversation with the team at American Cancer Society for some time now. They’ve been big supports of Shield during our FDA review cycle. The At Com advisory panel that we went to, they supported Shield with some statements in that meeting. And we’ve been very pleased with the tone and the conversation that we had with that team, and the value of the Shield that they see in terms of you know, improving the screening rate for colorectal cancer.
We are very optimistic that they would include Shield. In terms of timing, we are pretty confident actually it would be sometime in 2025. It’s very hard to know exactly when that would be. Our understanding is that research phase of updating the CRC screening has already started for them. Mhmm.
But we’ll see actually, you know, when they would be finished the process and if they would make decision to include Shield in the guideline. There are, definitely being in guideline would help with, for instance, appeal process when we are dealing with some of the commercial claims. But more importantly, there are about 10 states that have state level mandates that as long as ACS guidelines recommend a specific colorectal cancer screening test, the regional payers need to cover that test. So that could be an interesting opportunity for us and it would be effective the next expansion plan of going beyond Medicare beneficiaries and opening up access of shields to younger patient population within those states.
Puneet Saldag, Analyst, LIRG: Okay. Just on on that point, today, can you talk a little bit about the feedback that you’re getting from the field in terms of the assay, where you’re getting the most traction, where is and and again, some of the Medicare fee for service, maybe just talk to us about, you know, where where where the assay is is resonating because I think that’s one of the key questions in the space given the multiple modalities.
AmirAli, Co-CEO, Guardant Health: We are actually very confident about the product market fit of the Shield test as it is today. So the feedback has been very positive and continues to be positive, both by prescribing physician and the patients. When the physician is ordering the test, they’re really completing the test. It’s been very good to continue to see see the level of enthusiasm in the market. There is definitely interest in, in physicians to use Shield in younger patient population too.
In fact, Medicare beneficiaries were a minor part of of the volume that we were testing during the LDT phase of SHIELD before we get FDA approval and before our target launch of SHIELD IVD targeting these Medicare beneficiaries. And with our launch plan, actually we showed a huge success of really making vast majority of our samples coming from Medicare beneficiaries, beneficiaries, which include fee for service and Medicare Advantage, both. But definitely there is a big opportunity for younger patient, and we are hoping at some point, younger patient would get access to this test. It would be life saving. We would see those days.
But this time, there is a huge opportunity just in this Medicare segment of the business that we are developing that and mining that that business while we are waiting for guideline inclusion to open up access for younger patients.
Puneet Saldag, Analyst, LIRG: And by younger patient, I just wanna clarify, when you say, is this, you know, 50 and below, 45 and below?
AmirAli, Co-CEO, Guardant Health: 45 to 64. 40 five to 64. 40 five to 64. Effective right now, what we are like, the test is accessible and available for all.
Puneet Saldag, Analyst, LIRG: Mhmm.
AmirAli, Co-CEO, Guardant Health: But younger patient, meaning 45 to 64, they know that physician knows and patient know that if they use this test, it could have a lot of financial responsibility for them since their more favorable and then effectively patient at age 65 and above are vast majority of the patients that we are screening today with Shield. So when I talk about younger patient and the commercial opportunity, younger patient, I’m referring to 45 to 64 Mhmm. And not like younger than 45, let’s say. That would be still long way to go.
Puneet Saldag, Analyst, LIRG: Yeah. Got it. Then, sales reps, I think you were targeting a 50 sales reps by the end of this year. Maybe just tell us where, you are now and, you know, how should we think about, you know, sort of the productivity within those reps ramping up through the year now that you have ADLT payment?
AmirAli, Co-CEO, Guardant Health: So it was fall of twenty twenty three that we talked about some of our ramp plan on the commercial investment building the field force. At the time we mentioned, we would exit this year ’25 with about 150 people in the field. There are some development that happened since then, which was which were better than what we expected. One was the gap fill rate by Medicare became nine twenty, much higher than what we expected. And that kind of opened up our plan to hire a little bit more than 150 by end of this year.
And now that this ADLT pricing actually got activated, the additional gross profit that we are going to generate, we are planning to reinvest it in building and accelerating our commercial infrastructure build out. So we are going to see a ramp rate of the generate, but you can expect that we are going to have a bigger team than 150. Maybe talking about what we have today. We launched this test with 50 people in the field back in August of last year. We expanded the team to 100 people by end of last year.
Majority of those vast majority, almost all the people that we hired were hired, like, right after Thanksgiving time and got trained and, you know, got deployed to the field. Still, they schedule accounts and stuff. It’s gonna take some time. At, you know, six months after, we start kind of expecting some material contribution, but really it takes them even sometimes up to eighteen months to get to their productivity that you have in mind. So I think in terms of our forecasting of volume throughout the year, we are very mindful of, the productivity expectation from the reps that we have, the 50 original reps, new reps that we hired, and some additional hires that we are gonna continue to hire throughout this year.
Puneet Saldag, Analyst, LIRG: Got it. In terms of, just last one maybe on on Shield, just given the overall competitiveness in this space, you know, you are well ahead of the curve. You have first liquid biopsy assay in the market. There is, a competitor who’s potentially going to launch an assay 2027. Others have talked about wanting to be in this market on the path to MSED maybe.
Maybe just help us understand, you know, how are you thinking about the overall competitive environment? You obviously have a lead. So it’s, you know, one part is you you are capturing ahead of being in in diagnostics being ahead is half the battle. So you’re winning that already. But maybe just help us understand, like, how however you think about this market longer term.
AmirAli, Co-CEO, Guardant Health: We are very confident actually with the competitive position that we are sitting on right now. On one side, you know, more competition is better for patient and we are it’s actually good for us to see when competition put us more on the edge of, like, you know, being more innovative and more aggressive in building the best in class products. Having said that, when we look at the competitive landscape, we don’t expect anybody to have an FDA approved CMS reimbursed test within the next two years. So effectively, we have two to one half years time advantage to really build this market and build a lot of brand for Shield as the platform of choice for blood based colorectal cancer screening. And we are not just going to invest this time in building the commercial infrastructure, but also further improving this test on both CRC front, we are talking about SHIELD V2 and the upgrades there, which we are excited about, but also going beyond CRC to multi cancer detection.
Our vision from the beginning was not to just build a blood test that can detect colorectal cancer screening or do colorectal cancer, but the blood test that can do a panel of cancer types all at the same time. But CRC was our lead indication to enable reimbursement pathway, regulatory pathway. I think over time, we are gonna figure out that Guardant strategy established five years ago was the best strategy to build a multi cancer detection, blood based cancer screening. So when you look at two, three years from today, maybe there would be maybe there would be some other competing CRC tests by the time the competition would be a SHIELD test that can do multi cancer detection with tumor of origin all at the same time. We’re very excited to see those things.
Puneet Saldag, Analyst, LIRG: Mike, actually, I have just two more questions on on on SHIELD. I would love to understand, how you what are some of the levers, that you have as one is volume that’s, you know, on on on gross margin side for Shield. Trying to understand, I mean, what what are what are some of the other levels levers you have to, you know, potentially improve, obviously, gross margin. You have pricing coming in. That’s gonna help you.
But, maybe just talk to us on the gross margin side. What are some of the things you can work with?
Mike Bell, CFO, Guardant Health: Yeah. I think yeah, definitely, you know, ADLT getting this higher ASP definitely helps the helps the gross margins. You know, we’ve said that, when we get to scale a million tests annually, then our cost per test will be, $200. So and, you know, at the end of end of last year, we were at $600 So, really the way the way we’re gonna the way we’re gonna drive that cost per test down, one is gonna be driven by volume. And we’re still in the very early days.
So as the volume ramps, we’ll obviously take the benefit of that and that’ll reduce the cost per test. There’s the technology and workflow efficiencies that we’re working on, they can have a material impact on the cost per test. And then we’re very focused on automation and taking as much labor out of the process as we possibly can. And we’ve got really strong technical and automation teams in house now, and that’s what we’re spending quite a bit of our R and D dollars. But we expect over time, volume’s going to continually impact us.
And then we’ll see a couple of steps down with automation going live, with workflow improvements going live. So I think we’ve got a lot of levers to pull to reduce cost per test and to improve gross margins. And maybe one other thing, when we gave our Investor Day presentation in September 2023, we talked about gross margins getting to gross margins of 60% and that assumed an ASP of 500 and a cost per test of 200. With now our ADLT at fourteen ninety five, which is higher than our expectation then, I think there’s a good possibility that we can get gross margins north of 60% when we’re at scale. So we’re, yeah, we’re very excited to sort of drive those through.
Puneet Saldag, Analyst, LIRG: And and in terms of overall, sort of capacity expansion, if there the the demand was a strong, can you talk a little bit about where the capacity is today and just remind us where the capacity, your capacity plans were.
Mike Bell, CFO, Guardant Health: Yeah. We’ve got ample capacity today to manage, you know, significant uplifting volume without without going into specific numbers. But from a from a a space perspective, we’ve got a large lab space in Palo Alto. And so that’s enough to manage the capacity for quite a number of years. We’ll, of course, we’ll take this at the right cadence.
We’ll invest in the instrumentation and the automation at the right times. But, yeah, we feel very comfortable with the capacity today and our plans going forward to manage whatever sort of the volume is gonna be over the next few years.
Puneet Saldag, Analyst, LIRG: Got it. Okay. Just wanted to touch briefly on, obviously, a number of questions today are are Shield, but wanted to touch briefly on on Reveal as well. And maybe just can you talk about, you know, we clearly outlined that the quarterly call in terms of now with the reimbursement you can push aggressively, you know, reveal more aggressively into the market. I don’t know if there’s any early sort of feedback that you received from the market.
And, obviously, you know, maybe tell us, you know, how is this assay resonating worse as a tumor informed, which is, you know, products that are well established in the market already?
AmirAli, Co-CEO, Guardant Health: I think we talked about actually 2025 to be an inflection year for a reveal. In fact, there are a bunch of stuff that we’ve done at Garden historically, like during last few years, that bunch of them are coming to, you know, harvesting in 2025, and we are very excited of what we can do this year. On reveal side, you know, going from a gross margin negative tests of last year to a gross margin positive test enabled by 50% reduction in the COGS and then the CRC surveillance reimbursement that we got from Medicare. Effectively, what we were doing before, which was capping our revealed growth through multiple mechanisms, we now uncapped it. If we were doing more growth, it was gross margin negative, more burn.
That was not desirable for us. And effectively uncapped it. We have some kind of expectation in terms of when we uncapped it, we are going to start seeing some acceleration. And as you could imagine, we are pleased with actually some of the early signs of it. So we see how this quarter would end and how we can execute 2025.
But, so far so good. Great.
Puneet Saldag, Analyst, LIRG: Any any feedback on on the, you know, NCCN guidelines that recommended against the surveillance? We it seems a bit of a debate in that space among the oncologists that CEA is recommended, but MRD has gotten a lot more evidence and is still not in NCCN guidelines. So just wondering any, you know, sort of thoughts on that. That was a little bit of a surprise for, you know, the practitioners in the field.
AmirAli, Co-CEO, Guardant Health: I think when you look at that language, we are pleased that step by step, it’s just getting better. Yeah. Okay. It’s not perfect there. It’s not there yet, but it’s what we are seeing is good and it’s a good trend.
And we are hoping that actually it continues on this trend of positivity, and hopefully, it can become a solid recommendation down the road.
Puneet Saldag, Analyst, LIRG: Okay. I missed one question that I do wanna return back to is, what what’s the contribution for Abu Dhabi this year? Because that’s, something that wasn’t clear from the last quarterly call. You obviously sized the TAM, I think, hundred thousand cases, but, you know, pricing is, I suppose, lower in that market.
Mike Bell, CFO, Guardant Health: Actually, I mean, the pricing won’t be dilutive to our ASP. So it’s good pricing there. Yes, this pilot program, it’s 10,000 tests in the first year. We expect that’s going to take quite a bit of time to get up and running with our distributor and the process in Abu Dhabi. So we’re looking at this as volume wise, you know, relatively minimal impact in ’twenty five with a lot of that volume coming back ended in the start of ’twenty six.
So, you know, potentially it could go better, but we’re baking into our guidance a pretty small number for Abu Dhabi this year.
AmirAli, Co-CEO, Guardant Health: Okay.
Puneet Saldag, Analyst, LIRG: Sorry. I keep coming back to Shield. But anything on Shield v two, when can we see more on that and and potentially, you know, any any any any sense on, sort of the improvement that you expect with that?
AmirAli, Co-CEO, Guardant Health: So it’s an active program for us now, and the timeline continue to be as we talked about before. We are expecting to see the data readout, hopefully, approval and launch of that version before end of the year. And in terms of our expectations, so analytically, we know Shield v two, like for some of the people who have maybe less background on what we are talking about, is just the next generation of Shield that based on additional data and biological insight we got. It got improved. It’s the same assay, same chemistry.
It’s just a better algorithm trained on more data. We are using some of these learning based algorithms that when you feed more and higher quality data, just over time, it gets better. We know analytically, it’s two to three times more sensitive than Shield v one. Yeah. But what does that mean clinically?
That’s the part that we have to see. We showed some data a while back in a case control, but, it’s again case control and all issues associated with case control. We are hoping that our stage one CRC to get better with V2, but we have to do the clinical validation and see what the data is going to show us. We don’t expect any change in advanced adenoma with our Shield
Puneet Saldag, Analyst, LIRG: v2. And how would you slot that assay into the current? Would it be considered an upgrade? I mean, you would have to do a full clinical trial for that for FDA approval or how would you be able to do a bridging study and then be able to submit what are some of the options?
AmirAli, Co-CEO, Guardant Health: The pathway is a supplemental PMA. Yeah. Already we aligned with FDA how we are going to go about it. And, you know, in terms of the scope of this study, maybe as we get to the end of it, like, you know, please stay tuned. But, you know, as part of Eclipse, you know, as a reminder, we continued the trial enrollment to the extent that even we had another Eclipse cohort completely in our biobank already.
So we don’t need and we haven’t done Okay.
Puneet Saldag, Analyst, LIRG: Just given in the last few minutes, maybe I could switch to G360. Mike, you know, ASP has been, you know, it’s been a study and it’s it’s helpful to know that that, with the ADLT rate has increased and there’s more tailwind behind it. But there were few questions around the G60, three sixty growth itself that I think you have addressed over the last two quarters. Maybe just give us a sense on, the oral sort of the how should we think about the volume growth in that business? Because it is a mature market, and we had a company right before this and even last night when the panel, the feedback is, you know, there’s concurrent testing ongoing.
There’s multiple lines of expansion. Market is growing. And so just maybe just give a sense of the volume growth that you expect there in ASP contribution.
Mike Bell, CFO, Guardant Health: Yeah. I mean, we definitely agree that the market is growing with concurrent testing with increased testing per patient and monitoring potential monitoring of patients. So, yes, I mean, we look at the core business very, very favorably. From a volume perspective, last year, the first half of the year, we had a very difficult comp compared to twenty twenty three when we had the impact of the ESR1. But in the back half of the year, following the launch of Smart Liquid Biopsy, so Gauna360 LDT on Smart Liquid Biopsy, we started to see a very nice acceleration of volume growth.
And we’ve sort of seen that as we were coming out of 2024 into 2025. So I think Garden three sixty is doing very nicely. Last year, just to be a bit more specific, the annual growth for volume was low double digits for Garland360. And we’ve sort of we’ve been talking about this year that growing something like 200 basis points to low teens growth. And so we see definitely seeing an acceleration.
I think maybe the other thing to talk about in our core business is also on the tissue side. We had an upgraded tissue test middle of last year. We started to see more traction. And we’ve talked about having, again, another upgrade, a significant upgrade coming soon. And we feel that’s going to really accelerate our growth on tissue.
We’re very excited about this. It’s going to give us at least an equivalent best in class and a very sort of competitive offering. And we think that together then with best in class liquid, we’re going to have a very, very solid offering in therapy selection. So both on the liquid side and the tissue side, I think we’re very excited about 25%.
Puneet Saldag, Analyst, LIRG: And then just on the ASP side?
Mike Bell, CFO, Guardant Health: On the ASP, last year was a real significant year in ASP. We saw the increase of the Medicare rate for LDT go to $5,000 and then we saw the follow on of Medicare Advantage throughout the year. So in a year from Q4 ’twenty three to Q4 ’twenty four, our ASP went from 2,750 to 3,000. So very nice. There’s still we won’t see that level of increase in ’twenty five, but there’s still opportunities over the next few years to continue to increase the ASP.
It’s going to be focused our efforts are going to be focused on the commercial payers and where we’ve got gaps in coverage. And so there’s still, you know, there’s still additional ASP to go for. We think ultimately over time now this could get to sort of 3,200, three thousand three hundred over the next couple of years.
Puneet Saldag, Analyst, LIRG: Okay. That’s helpful. And then maybe in the last minute here, G360 recovering, I mean, doing well and then now pressing on reveal. You have Shield, ADLT payments and that’s going to grow. So maybe from a from a from a CFO seat, when you get request of, okay, we wanna invest here and invest here and you have to set the priority, maybe just, help help me understand how are you how are you setting that across the organization?
Mike Bell, CFO, Guardant Health: Yeah. No. I mean, we’re we’re we’re firing on all cylinders. There’s a lot of areas that we can make investment. I think the one of the key things that’s not always appreciated is that we have built out now a huge amount of operating leverage in the core business, and we can apply that to Reveal.
So the incremental investments to continue to grow the core business in Reveal aren’t significant. So where we’re really investing this year and where you’ll see the growth in our OpEx line is going to be on the screening side. That’s where we’re going to be driving the ramp up on the commercial side and really driving the Shield volume.
Puneet Saldag, Analyst, LIRG: And just lastly, on the Shield side, any thoughts on marketing, direct to consumer marketing, any other approaches that you’re thinking about?
AmirAli, Co-CEO, Guardant Health: The biggest actually investment would be on building the field force. There is going to be obviously some campaigns and marketing programs that we are going to have in place. Some of them would be pilots, but we are not going to do right off the bat some very big DTC campaigns at this time. So but probably we are gonna pilot some some of the campaigns that we are very excited about.
Puneet Saldag, Analyst, LIRG: Okay? Alright. Okay, guys. Thank you for the time here. This was great.
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