Renalytix Plc

For the third quarter of fiscal 2024, revenue was $535,000 versus $724,000 in the prior-year quarter. Operating expenses were $6.5 million, down 40% from $11 million a year ago, and net loss was $7.7 million, or $0.08 per share, compared with about $12.1 million, or $0.14 per share, last year. The company processed 806 tests in the quarter, 82% of which were billable; tests outside Mount Sinai were nearly half of total tests, up from about 30% 18 months ago. Management said cash was about $4.7 million at March 31, excluding about $6.4 million net proceeds from the second tranche of the March PIPE and $1.5 million from a registered direct placement, and said aggregate gross proceeds from those financings were $13.5 million. Forward-lookingly, management expects the final LCD to be issued in the near term and said it could come sooner than September; it also expects the FDA-authorized version to onboard with other health system providers during calendar 2024, with continued focus on sales growth and further cost control.

James McCullough framed the quarter around regulatory de-risking and commercial setup rather than near-term scale. He emphasized the draft LCD, KDIGO guideline inclusion, FDA authorization, and the launch of KidneyIntelX.dkd as evidence the product has crossed major validation hurdles, and he argued these steps make it more likely to achieve broad payer coverage and adoption. His tone was confident and forceful, repeatedly saying the product is now positioned as a preventive precision-medicine tool with high barriers to entry.

James Sterling focused on the improving cost structure and the modest current revenue base. He cited $535,000 of revenue, $6.5 million of operating expenses, and a net loss of $7.7 million, or $0.08 per share, noting that OpEx was down 40% year over year and cash burn was below $5 million per quarter, about 40% lower than the second fiscal quarter and half a year ago. He also pointed out the company’s $4.7 million cash balance at March 31, plus $6.4 million net proceeds from the March PIPE tranche and $1.5 million from the registered direct, while saying payment from National Government Services continued on a consistent basis.

Analysts focused heavily on whether the draft LCD and guideline inclusion would translate into higher test volumes and broader payer coverage. Management said payer feedback has been good, that the company expects comprehensive U.S. coverage once the LCD is finalized, and that the final LCD would let KidneyIntelX be billed for Medicare beneficiaries nationwide when samples are processed in its New York lab. Questions also probed the salesforce rebuild and conversion rates; management said the team is now 10 people, PCP-driven business was about 40% of billable tests, patient identification remains the biggest adoption bottleneck, and it is too early to give detailed conversion metrics.