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Marty Chilberg is a seasoned financial professional with over 30 years of executive leadership, board, consulting and advisory experience.  He began his career as a certified public accountant (CPA). He moved to Silicon Valley in 1981 to begin his career in the software industry, working for... More
  • PerkinsElmer (PKI) Q1-14 Call Comments Re NIPT 0 comments
    Apr 25, 2014 11:24 PM | about stocks: PKI

    PKI made several references related to NIPT and Reproductive health on their conference call. Here are a few though I suggest readers check the entire transcript.

    Opening Remarks

    Robert F. Friel - Chairman and CEO

    In detection we broadened our leading prenatal and neonatal diagnostics offerings, both in the U.S. and in China, including setting up additional lab in a lab testing for severe combined immunodeficiency syndrome where we embed a full-service operation and several PerkinElmer technicians directly into a customer's laboratory to screen new born samples using PerkinElmer's assets.

    We also recently signed an agreement with the National Health and Family Planning Commission in China to be the exclusive partner in a three-year newborns training project to cover more than 600 rural communities and train more than 3,000 doctors and lab technicians. This unique collaboration which employs PerkinElmer's detection technologies, knowledge and infrastructure will not only grow our market share, but more importantly help to save millions of lives.

    Additionally, we announced an exclusive partnership with Good Start Genetics to sell its GoodStart Select genetic carrier screen tests to our maternal fetal health customers in the United States. This partnership further expands our prenatal menu and enables us to leverage an already strong market for us.

    Frank A. Wilson - SVP and CFO

    Organic revenue growth from our diagnostics business increased high single digits during the first quarter, primarily driven by demand for our newborn screening and infectious disease solutions, with particular strength in emerging markets.

    Not only are birth rates beginning to rebound in China as evidenced by prenatal trends we saw in the first quarter, but thereafter greater access to newborn screening in rural areas is also increasing. Additionally, we continue to gain share in infectious disease testing in China having won over 30 new Sym-Bio customers during the quarter.

    Question-and-Answer Session

    Jonathan Groberg - Macquarie Capital

    Congratulations on a solid quarter. So, Rob, can I actually - over the last call it 12 months or so you obviously made a deal with Verinata, this quarter you did a deal with Good Start, I'm just curious, I mean you guys have your own genetics lab and sequencing lab, you have other capabilities, can you maybe just talk about how you evaluate some of these newer technologies and product offerings, when to be just a distributor for a test and why not just offer the test yourself?

    Robert F. Friel - Chairman and CEO

    I think there's obviously a number of factors that go into that. One is how quickly the market will ramp up and probably more specifically how quickly the reimbursement will ramp up. so there is a trade off there. With some of these cases there is intellectual property that's involved. I would say that's probably more the case in the non-invasive prenatal testing area

    I think we have talked to a fair amount about the Verinata and the non-invasive prenatal area, and I would say we continue to see a relatively slow ramp-up on the reimbursement. That sort of continues to be a challenging area. So we're not forecasting a significant impact for 2014 from that area.

    Tycho Peterson - JPMorgan

    A follow-up on the commentary on prenatal screening. I understand obviously some of the reimbursement [indiscernible] verified, because obviously you've been talking about that moving [low-risk] (ph), can you maybe just talk about your thoughts on the trajectory of that business as it moves into [indiscernible] and how you might be able to benefit there?

    Robert F. Friel - Chairman and CEO

    So I guess, so our point of view on that is, I mean we don't think that's going to happen in the short term, but we think for the foreseeable future that is going to stay in high-risk and that you're not going to see a low risk for I would say a number of years.

    Frank A. Wilson - SVP and CFO

    Our data would suggest that if you look over the last 12 months, the U.S. is, birth rates are expanding in sort of 1% to 1.5%. And the way I would think about that is it's single millions of dollars for revenue for us.

    Zarak Khursid - Wedbush Securities

    As we think about this Good Start strategy and in the event that NIPT starts to move into the average risk setting, I'm just curious how you would characterize or quantify your ability to drive adoption within those plain vanilla [OB] (ph) practices out there? I know there's quite a few of them.

    Robert F. Friel - Chairman and CEO

    As I said before, that sort of fits right into our sort of wheelhouse from a call point perspective. So we've got I think very good distribution into those doctors. And so I think that's the benefit of the collaboration. We feel good about their test and their capabilities and technology and we think it's a strong combination with our distribution capabilities. So before - well established medical policy, I think it's good reimbursement, so I think we're fairly optimistic on the adoption rate and to be a pretty good business for us.

    Themes: NIPT, Reproductive Health Stocks: PKI
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