Biodesix, Inc. Common Stock Canaccord Genuity's 46th Annual Growth Conference

Yeah, to build off your wonderful description and introduction, as Alex said, we have five on-market tests for lung cancer, positively impacting that continuum of care. The first two are pre-cancer diagnosis, where we help physicians identify those lung nodules that are likely malignant or likely benign. Then post-cancer diagnosis, three tests that help with treatment or therapy guidance and selection. We also have a diagnostic development services portion of the business where we partner and collaborate with biopharmaceutical companies, other diagnostic companies, and partners. There, we're doing test discovery, development, we're supporting clinical trial research, and providing molecular insights at different time points. It's really critical. That portion of the business accounts for just under 10% of our annual revenue. As Alex highlighted, exceptionally strong growth. We've taken great pride in building out the commercial channel that we have.

We now have over 100 sales reps in the U.S. focused on this call point, and the main call point being pulmonology, but now supported with a concerted, intentional effort in primary care. The growth recently has been fueled by sales force expansion. We're very excited to continue to grow and invest in that sales channel. We have disclosed that we'll end this year at approximately 120 contributing sales reps. We also expanded last year into primary care in a very intentional way, where we're focusing on the pulmonology referral pathway, supporting those primary care physicians that are referring patients in to pulmonologists. Lastly, we came out with an exceptionally large clinical trial result earlier this year, or study result, where we were able to expand utilization of the Nodify CDT test in those nodules that are 4 millimeter to just under 8 millimeters.

That expansion was received exceptionally well.

Yeah, I just referenced those smaller nodules. We just introduced that a couple of months ago, so we're still seeing broad adoption across both primary care and pulmonology, and with new ordering physicians and those that have ordered for some time. We feel very strong that that can continue to drive excellent growth and expansion in the second half of the year. We had a strong year-over-year comp from last year, so we think that we've set ourselves up for continued sustainable growth for a period of time. And you highlighted it, we are very focused on this march towards profitability. There are not many diagnostic companies that have achieved it and maintained it, and we think it's critically important to do so.

Yeah. Robin, do you want to take that?

Yeah. It's heavily dependent on the growth of the top line. But in addition to that, we have a very cost-disciplined approach to our operations. As we've seen over the last several quarters, strong and growing operational leverage, and it's continuing that cost discipline approach and combining with improved rep productivity and new sales reps to reach and maintain profitability.

Yeah, I think the key word there was balance. There really is a balance. Could we grow faster? Certainly. We want to be mindful of bringing on the right sales professional, putting them in the right position to be a success, and then giving them an opportunity to scale and contribute. For us, we have consistently hired about six to eight sales professionals a quarter. That is what this plan supported this year. As we look towards next year, right now, we are currently planning on doing the same next year. I think you bring up a good point, which is how much more do we have to grow and invest? I think by the end of next year, I think we will have great representation and coverage. Then we can be opportunistic as we bring on an exceptionally large account, and we need support, invest in that.

We are getting there and I think we have demonstrated we have a very efficient, effective model. Our industry-leading gross margins at north of 82%, we have continued to guide that those will stay exceptionally strong. It really is about taking a cost-conscious, very concerted effort to make sure that this is a long-term investment that everybody can see providing a return.