SERA PROGNOSTICS, INC. Q3 FY2024 earnings call

• Executing plan to support test adoption and revenue, focusing on clinical trial result publications, awareness building, payer coverage, access improvement, and scalability.
• Positive AVERT PRETERM TRIAL results published in July; pursuing PRIME results publication.
• Engaged with key stakeholders, including physicians via e-mail campaigns with high engagement rates, and activated TV campaigns on public and major networks.
• Made PreTRM Test available for order online, with 227% traffic increase on preterm.com compared to September last year.
• Beta testing of predictive analytics tool for expectant mothers.
• Work on care guidelines, noting ACOG and SMFM processes, and ensuring compliance with FDA lab rules.

Net revenue for the third quarter of 2024 was $29,000, down from $42,000 in the same period the previous year. Total operating expenses for the third quarter were $8.9 million, up 8% from $8.2 million in the same period last year. Research and development expenses were $3.5 million, approximately flat with the third quarter of 2023. Selling, general and administrative expenses were $5.4 million, up from $4.6 million the prior year.

• Projected gross cash expenses for 2024 less than $30 million, with expenses focused on evidence generation, scalability, awareness, and commercial capabilities.
• Targeting gross cash expenses under $30 million in the year ahead, with projected year-end cash balance of approximately $68 million, providing cash into 2027 before assuming future revenues.

• Actual results may differ materially from forward-looking statements due to various factors; refer to SEC filings for important risk factors.

Q: Clarify timeline expectations for PreTRM and levers in control.

A: ACOG looks at other guideline bodies, PRIME publication is key; #1 lever is quality of data.

Q: Talk about levers in control to get payers to cover PreTRM.

A: Quality peer-reviewed PRIME publication and economic modeling (Elevance modeling, own cost models) are key levers; post-PRIME publication, expect payers to start considering coverage.