Annual Meeting of Shareholders - Amazon Web...

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Annual Meeting of Shareholders Thursday 24 th August 2017 Addresses by Chairman & CEO

Transcript of Annual Meeting of Shareholders - Amazon Web...

AnnualMeetingofShareholders

Thursday24thAugust2017

AddressesbyChairman&CEO

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CONTENTS

Welcome................................................................................................................................................3

BoardofDirectors..................................................................................................................................3

MeetingAgenda.....................................................................................................................................3

Chairman’sSpeech.................................................................................................................................4

TargetingLargeScaleMarkets...............................................................................................................4

USRevenueRecognition........................................................................................................................5

CommercialTraction..............................................................................................................................6

CEO’sPresentation.................................................................................................................................6

OurPurposeandStrategicProgress.................................................................................................6

HaematuriaandUrothelialCancer....................................................................................................7

CxbladderSpanstheClinicalPathway..............................................................................................7

FY17Milestones................................................................................................................................7

ClinicalDecisionMakingUsingCxbladder.........................................................................................8

FY17Financials..................................................................................................................................8

TransformationalCustomers............................................................................................................9

OtherMarkets.................................................................................................................................10

RevenueOutlookandDrivers.........................................................................................................10

Markets.................................................................................................................................10

Products................................................................................................................................11

Customers.............................................................................................................................11

SalesChannels......................................................................................................................11

Conclusion.............................................................................................................................11

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WELCOMEGoodafternoonandwelcometothePacificEdge2017AnnualMeetingandIthankyouallforbeingheretoday.Forthosewhodon’tknowme,IamChrisGallaher,ChairmanofthePacificEdgeBoardofDirectors.WelcometoallofyouwhoarewithushereinDunedinandalsotothosewhoarejoiningthemeetingonline.

BOARDOFDIRECTORSIwouldliketostartbyintroducingmyfellowDirectors.DavidBand,BryanWilliams,DavidLevison,AnatoleMasfenandDavidDarlingwhoisalsoourChiefExecutiveOfficer.BothDavidDarlingandBryanWilliamshaveretiredbyrotationandarestandingforre-electionbyShareholderstoday.YourBoardfullysupportstheirre-election.

MEETINGAGENDAWe’llstarttodaywithpresentationsfrommyselfandfromDaveDarling.FollowingthesewewillbehappytotakequestionsfromShareholdersonthepresentations.We’llthenmovetotheformalbusinessofthemeetingandtheresolutionscontainedintheNoticeofMeeting.Therewillbeanopportunityforyoutoaskquestionsoneachresolutionbeforeitisputtothevote.Followingthevotingonresolutions,wewillbehappytotakeanygeneralquestionsyoumayhaveinrelationtoourCompanyanditsoperations.Followingthecloseofthemeeting,IinviteyoualltostayandsharesomelightrefreshmentswiththePacificEdgeteamandyourBoard.Acopyofthespeechesandslidepresentationfromtoday’smeetingwillbeavailableonourwebsite.Ideclarethataquorumispresentandthemeetinghasbeendulyconvened.TheNoticeofMeeting,whichincludestheexplanatorynotes,hasbeencirculatedtoallShareholdersandIintendtotakeitasread.Theauditedfinancialstatementsfortheyearended31stMarch2017werereleasedonthe24thMayandaresetoutintheCompany’sAnnualReportwhichwasmadeavailabletoShareholdersonthe30thJune.Theminutes of the 2016Annual ShareholdersMeeting havebeen approvedbyDirectors and areavailableforinspection.

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CHAIRMAN’SSPEECHIthasnowbeenayearsinceIjoinedthePacificEdgeBoardandIwouldliketotakeafewminutestoreflectonthelastyear.ThefirstreflectionthatIhaveistonotetherealandgenuinepassionthatourstakeholdershavefortheCompany,itsproductsanditsfuture.FromouremployeesthroughtotheBoardandourShareholders,thispassiontocreateandbeapartofsomethingspecialiswhatwillgetustowhereweaspiretobe.ThesecondmatterIwanttoreflectonisthatofourkeyobjective-whyweexistandwhywedowhatwedo.Rightfromthebeginningofourjourney,theCompanyhassoughttoestablishCxbladderastheworld’sleadingmoleculardiagnostictechnologyforthedetectionandmanagementofbladdercancerandtomaximisethevalueofourtechnologyforthebenefitofourShareholders.Nothinghaschanged;thisremainsourkeyobjective.

TARGETINGLARGESCALEMARKETSThekeymarkettodeliverthisobjectiveistheUS;theworld’slargesthealthcaremarket,andsincelisting,substantialinvestmenthasbeenmadeinestablishingourpresenceandfacilitiesinthismarket.OuractivitiesintheUShavebeenwellsupportedbyourbusinessinNewZealandandwearealsodevelopingbusinessesinAustraliaandSingapore.Buttobeveryclear,theCompany’sprimarystrategicobjectiveistowinintheUSmarket.We do get a number of questions on the US healthcaremarket - how it works and howwe areprogressingwithourtargetedcustomers.Itisauniquemarket;verydifferentfromthemarketsthatwearemostfamiliarwith,andwearenowusing our twice yearly Investor Updates and our annual and half year reports to provide moreinformationandknowledgeforourShareholders.Wehopeyou’refindingtheseupdatesinformativeandofbenefit.DaveDarlingwillprovidemoredetailinhispresentationbutinoverview;TheUS is the largest andmost significant healthcaremarket in theworld and is oneof themostchallenging.Webelievethatthereisintheorderof3milliontestopportunitiespotentiallyavailableforus,intheUSmarketacrossthedifferentstagesoftheclinicalpathwaysthatwenowcoverwithourtests.Asacomparable,thereare11,700urologistsintheUScomparedto300inAustralasia.Thatisthescaleoftheopportunityforusandwhyourkeyfocusandinvestmenthasbeentargetedatthismarket.

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Bringingnewmedicalproductstomarket,whichseektodisruptdecadesofstandardclinicalpathways,takestime,investment,andyoumusthavethecorrectbuildingblocksinplace.WehavebuiltastrongfoundationintheUSwithallofthenecessarypiecesinplacetosucceedinthismarket.Wearemakinggoodprogressandhaveabigfirstmoveradvantage.AfterourannouncementofaverysuccessfuluserstudywithKaiserPermanentelatelastyear,Iknowmanyofyouwillbe interested inourprogress. DaveDarlingwillgo intomoredetailbut frommyperspective,wearemaking verygoodprogress in achievinga commercialoutcomewith this veryimportantcustomer.Wehopetobeinapositiontoannounceacommercialoutcomeinthenearfuture,thetimingofwhichdependsonKaiserPermanente’scontractualprocesseswhichwedon’tcontrol.DaveDarlingwillspeakfurtheronprogresswiththeotherkeyUStransformationalcustomersinhispresentation.AsignificantmilestonewasreachedlatelastyearwhenPacificEdgebecametheonlycompanyintheworld to offer a suite of four products comprehensively addressing themultiple clinical needs ofUrologists.Itisourgoalandchallengenowtoconvertthisopportunityintorevenue.YouwillhaveseentherecentannouncementwithanotherofNewZealand’slargepublichealthcareproviderssigningup touse the full suiteofCxbladderproducts in their standardofcare;wehavesigned our first major hospital in South Australia; and User Programmes have commenced inSingapore.

USREVENUERECOGNITIONTheBoard isveryawareoftherateofrevenuegeneration,cashflowandthecapitalneedsoftheCompanyandcontinuestomonitorthemclosely.Ourspendwillbeincreasinglyoffsetandeventuallysurpassedbynewrevenue,aswegainaccessandtractionwiththelargescalecustomerswearetargeting.The rate at which this occurs will depend on the rate at which we are able to scale up theseorganisationsandissomethingthatisverydifficulttoforecast.TheBoardandmanagementaredoingallintheircontroltobringtheseopportunitiestoconclusion,however,weareinthehandsoftheinternalprocessesoftheselargecustomers.Ourfinancialresultthisyearwasareportedlossof$21.04million.Thiswasbelowourplanandalthoughanimprovementonlastyearinoperatingterms,wasimpactedbythedecisionbytheBoardworkingwithourAuditorstotakeaconservativepositiontowriteoffsomelongstandingreceivables.These arose from revenues we have invoiced for tests that we conducted but had not yet beenreimbursedforbytheCentresforMedicareandMedicaidintheUS.

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ForacompanytobereimbursedbytheCMS,itmusthaveaLocalCoverageDeterminationoranLCDforshort.GainingourLCDhasbeenalongandprotractedprocessandpleasingly,wearewellprogressedinthis.WearefortunatetohaveDavidLevisononourBoardwhohasachievedLCDstatusinhisUShealthcarebusinessandheispleasedwiththepaceofourprogressinachievingourLCD.Whilewe arewaiting for our LCD,we are still obligated to provide and invoice for tests used bypatientscoveredbyCMSanditisworthyofnotingthatwewillcontinuetoseekrecoveryofthosedebtsthatwehavewrittenoffinouraccountsinFY17.

COMMERCIALTRACTIONOurCompanyisinalonggame,theopportunitybeforeusisverysignificantandwearestill intheearlystagesofourlifecycle.WeareonthecuspofrealisingthispotentialforthebenefitofourShareholders.Wesincerelyappreciateyoursupport,particularlythosewhohavebeenwithussincetheearlydays.WehavebeentalkingaboutourstrategyandourfocusontheselargescalecustomersforawhileandIknowmanyofyouarewaitingeagerlyforourrevenuetoscaleup.Whilethishastakenuslongerthanweanticipated,weareachievingimportantstrategicmilestonesandthesearetakinguscloserandclosertowardsachievingourimmediategoaltobecomeacashflowpositivecompany.BeforehandingovertoDaveDarling;IwouldliketosincerelythanktheBoardfortheircommitmentandwise counselover the last year and toDaveandhismanagement team for theirpassionandcommitmenttodeliveringonthepotentialofourCompany.I’llnowpassyouovertoDaveDarlingtotalkmoreabouttheCompany’sperformanceandourneartermgoals.

CEO’sPRESENTATIONHelloeveryoneandthankyouforjoiningusthisafternoon.

OURPURPOSEANDSTRATEGICPROGRESSOur aspirations have not changed and our goal remains the same – to establish Pacific Edge andCxbladderastheworld’sleadingmoleculardiagnostictechnologyforthedetectionandmanagementofurothelialcancer,andmaximisethevalueofourtechnologyforthebenefitofourShareholders.We’remakinggoodprogressandgaining traction inallourmarkets,with increasingadoptionandcoveragefromhealthcareorganisationsandinsurers.TheUnitedStatesremainsourlargestopportunityandourmainfocusandwearetargetinganumberof large scale healthcare providers. These are very large organisations with many people andprocessesthatweneedtointeractwith,noneofwhichwecancontrol,andgettingourproductsintocommercialusecanbealongandprotractedprocess.However,weareworkingashardaswecanonthethingswecancontrol,tosignuptheselargecustomersasquicklyaspossible.Wearenowonthe

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cuspofastepchange,withanumberofhighlyrespected,healthcareorganisations,whowesignedupin2016,startingtoadoptourproducts.WearealsocontinuingtobuildourpresenceinNewZealand,AustraliaandSingapore.Youwillhaveseenourmostrecentannouncementsconcerningthelargepublichealthcareprovidersin New Zealand who have adopted Cxbladder and written it into their standard of care, a hugeoutcomeandonethatwearenowleveragingintoourothermarkets.Weareinvestinginourfutureandthecreationandgrowthofastrongglobalcompany,andIwouldliketothankallofourShareholdersandotherstakeholdersforyourcontinuedsupport.

HAEMATURIAANDUROTHELIALCANCERTherearethreemajorcomponentstothecommercialopportunityforourCompany.Firstly;haematuria,bloodintheurine,isamajorsymptomofbladdercancerandthesepatientswhopresent to theclinic forevaluationare thekey targets forsomeofourproducts.The incidenceofhaematuriaisveryhigh-upto7millionpeoplepresenttoaclinicwithhaematuriaeachyearintheUSaloneand1.5millionofthesehaveanextensivework-up,eachcostingseveralthousanddollars,identifyingapproximately79,000patientswithdisease.Mostofthisverylargeinvestmentinthosepatientswho don’t have cancer is unnecessary, iswasted and generates poor compliance by thepatientwiththeirtreatmentandmanagementregime.Secondly;bladdercanceristhemostcommonformofurothelialcancer.It’stheninthmostcommoncancerintheworldandthefifthmostcommonintheUS.Duetoitshighrecurrencerate,ithasthehighest total medical costs of any cancer, approaching US$240 thousand dollars over a patient’slifetime;andthirdbutnotleast;theclinicalguidelinesrequirebladdercancerpatientstoadheretoaregimeofcontinualmonitoringandchecks,sometimesuptofivetimesperyearforfiveyearswheretheyarealsorequiredtoundergoanexpensiveandinvasiveregimeoftests.Witha70%recurrencerateforbladdercancer,somepatientswillbemonitoredfortherestoftheirlife.IntheUSalonethiscangiverisetoapprox.820,000patientsreturningtotheclinicseveraltimesperyear,givingrisetoapproximately2.4milliontestopportunities.

CXBLADDERSPANSTHECLINICALPATHWAYWearetheonlycompanyintheworldtohavefourmoleculardiagnosticteststhatspantheclinicalpathwayforurothelialcancer.ThisisahugeachievementforourCompany.Eachofourproductshasaspecificroleintheclinicalpathway,andallofthemofferamoreeffective,accurateandnon-invasivediagnosticoptionforpatientsandclinicians.

FY17MILESTONESWearegainingmomentumintheexecutionofourcommercialstrategyascanbemeasuredbythemanyachievementsduringtheFY17year.Westrengthenedour foundations furtherwith newproductofferings,newproduct launchesandpeerreviewedscientificpublications,allofwhichunderpinoursalesandrevenuegoingforward.

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OurcommercialfocusremainsonbuildingadoptionandsalesofourCxbladderproducts,particularlyintheUnitedStates.Inparticular,wehavemadesignificantprogresswiththelargescaleorganisationswearetargeting,whichhavethepotentialtobetransformationalforourCompany.Wehaveseenincreasingadoptionbyhealthcareprovidersandinsurers,helpedinpartbymultipleclinicalandutilitystudiesproducedandpublishedduringtheyear,allofwhichvalidatethesuperiorperformanceofourproducts.

CLINICALDECISIONMAKINGUSINGCXBLADDERPublished,peerreviewedclinicalpapersareakeyelementofourmarketentryandproductadoption.They are the trading-currency needed for reimbursement and are essential for validating theperformance and clinical utility of our products with major healthcare providers and funders,particularlyintheUS,aswellasencouragingadoptionandchangestotheStandardofCare.Sowhatdowemeanwhenwerefertoclinicalutility?It’sthereferencetothechangeinbehaviourthatUrologistsundergowhentheyadoptourCxbladdertechnology.Inastudypublishedduringthe lastyear, theuseofCxbladderTriageandCxbladderDetect ledtocompelling changes in Urologists’ decision making, leading to fewer total tests and less invasiveprocedures.Thisimpliesareductioninhealthcarecostsandanimprovedexperienceandoutcomeforpatients.Asyoucanseeonthenextslide,it’sacompellingoutcome.

FY17FINANCIALSOurpositivetractionisreflectedinourgrowingsales,withFY17operatingrevenueup62%ontheprioryearto$8.1million.Thisexcludesanycontributionfromtransformationalcustomerswhichhaveyettoimpactsignificantlyonourrevenueline.Laboratorythroughput,whichincludesproductsalesandUserProgrammes,increasedby35%tomorethan11,000tests.Wecontinuetoinvestinthefoundationsofourbusiness:newproducts;clinicalstudiesthatleadtopeer reviewed publications which as we have said are the trading-currency of the US healthcaresystem;people,particularlyoursalesteamintheUS;IntellectualPropertyandMarketExpansion.Ouroperatingcostswerecomparabletothepreviousyearand,overall,wereporteda$14.9millionoperatingloss,down4%onlastyear.Thisexcludestwonon-cash,one-offcoststotalling$6.2million- the first relating to thewindup of the Employee Incentive Scheme; and the second due to theconservativepositiontakentowriteoffbaddebtsandaprovisionfordoubtfuldebt;revenuethatisinvoicedtotheCMSbutnotyetrecovered,fortheirpatientsthatwehavebeentesting.Oursalesactivityisgainingmomentumandourrevenueisbeginningtooff-setagrowingproportionofourcosts.Ouraimistobecomeacashflowpositivecompanyasquicklyaspossible.

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TRANSFORMATIONALCUSTOMERSIntheUS,over90%ofpeoplehavehealthinsuranceandtheyaresometimescoveredbymorethanone type of insurance. Approx. 67% of people have private insurance, and 37% are covered byGovernment insurance, with around 5% of that being military cover through the VeteransAdministrationandTRICARE,withthebalanceofthe37%beingthroughtheCentresforMedicareandMedicaidServicesor(CMS)inshort.Wehavetargetedfourlargescalecustomersandwehavealreadystartedcommercialactivitywithtwoofthem.FortheVeteransAdministration;twooftheinitialfiveVAcentresweweretargetingarenowsendingintestsandwehaveexpandedourfocusto 14centres.OursalesforceareworkinghardtogrowadoptionandweexpectseveralmoreclinicstoincorporateCxbladderintotheirclinicalpracticeinthenearfuture.WewerealsoapprovedasaprovidertoTRICAREinOctober2016,openingthegateto9.4millionlivesincludingactivemilitarypersonnelandsomeveterans.ThelargescaleUserProgrammelastyearwithKaiserPermanentewasverysuccessful.Ithasbeenacomprehensiveprocessoverthelasttwoyears,workingwithKaisertoensurethatourCxbladdertestsworkwellintheirclinicalsetting.InNovemberlastyear,wesuccessfullycompletedthelastevaluationhurdleandarenownearingtheendofthenegotiationsonacommercialagreement.Howevernothingiscertainuntilwehavecompletednegotiationsandsignedtheagreement.Havingsaidthatitisalllooking very positive. We are contemporaneously working with Kaiser’s staff on the necessarybusinesselementstoensurethatthestart-upofcommercialtestscanoccurshortlyafterwehavebothhavesignedtheagreement.It’simportanttounderstandhowsignificantthisis–Kaiserisoneofthelargestintegratedhealthcareproviders in theUS.Whatwemeanwhenwe say this is, that they provide a ‘one-stop-shop’ forpatients, they have their own guidelines, their own hospitals, laboratories, clinics and their owninsurancecover.Theyare regarded,asarguably, the singlemost important,non-federally funded,validationorganisationintheUSandwhenKaiseradoptsanewtechnology,it’swatchedverycloselybytherestofthehealthcareindustry.Sowhenwe signupwith themand theyuseour tests in their clinical pathway, it is theultimatemeasureofclinicalutilityandahugecredibilityboostforuswhenwearecommercialisingwithotherorganisations,includinggovernmentfundersliketheCMS.WeseeanorganisationsuchasKaiserasbeingverysimilar incommercialcomplexity to the largepublichealthcareprovidersthatwehavehereinNewZealand.WhatwehaveseeninNewZealandisthattheselargepublicproviderscantakesometimetosignup,however,oncetheyhavecommittedandareunderway,theyareabletomoveatpacewithlittleinputfromPacificEdge.OurfourthtargetedorganisationistheCentresforMedicareandMedicaidotherwisereferredtoastheCMS.TheCMSisthefederallyfundedhealthcareprovidertoallpeopleovertheageof65years.Ithashighhurdles toclimbover.This includesvalidatedperformanceandtestimony from leadingUrologistsontheirreasoningforadoptionandchangesintheirclinicaldecisionsasaresultofusingCxbladder;andrequiresPacificEdgetohavebeenprovidingitstestsinmarketforsometime,oftenyears,inordertomeettheirneeds.WehavebeenworkingwiththeCMSforsometimenowandwe

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arewellprogressedintheprocesstogainaLocalCoverageDetermination(LCD)whichwillallowustogetreimbursementfromMedicareforourtests.In addition to these identified transformational customers, we are continuing to leverage UserProgrammes and target large urology groups, with sales now moving at pace and growing ourrevenueswiththeseandotherlargerorganisations,UserProgrammesremainanimportantpartofourstrategy.

OTHERMARKETSWhiletheUSisourlargestscaleopportunity,wehavebeenmakinggreatstridesinNewZealandandaregainingtractioninAustraliaandSingapore.WeannouncedanewpartnershipwithTolmarinAustraliaearlylastyearandtheirurologysalesteamareleveragingtheirexistingrelationshipstomarketandsellourCxbladderproducts.Recently,TolmarhasstartedcommercialactivitywithalargehospitalinSouthAustralia.WehaveestablishedabaseinSingaporeandarecurrentlyrunningUserProgrammeswithtwolargehospitals.WeareintheprocessofsigningupmoreUserProgrammesaswebuildawarenessofourtestswithUrologistsandhealthcareproviders,tobeusedonpatientspresentingwithhaematuriaandmedicaltouristscomingforregularcheck-ups.NewZealandisasmallercommercialopportunityforusbutveryimportantanditservesasagoodtrialforsimilarexecutionsinothermarkets.Wehaveapprovedcoverbytwolargeprivatehealthcareinsurers and our products are in use by amajority of the DHBs with three of these large publichealthcareprovidersadoptingatscaleandwritingCxbladderintotheirstandardofcare.Thisisthe‘HolyGrail’foranycommercialhealthcareproducts.Inthelastfewweeks,MidCentralDHBsignedanagreementwhichextendsitsusetothefullsuiteofCxbladderproducts.TheywerethefirstDHBinNZtosignacommercialagreementandcommenceusingourproductsin2013,andit isawonderfulendorsementthattheyhavegrowntheiruseandunderstandingoftheCxbladderperformanceandarenowincorporatingourproductsinthestandardofcareacrossthebladdercancerpathwayfrominitialdiagnosistopost-treatmentsurveillance.There is nowa criticalmassof public health careproviderswhohave signedCxbladder into theirstandardofcare.

REVENUEOUTLOOKANDDRIVERSOurrevenuewillcontinueitsstronggrowthandwillbedrivenbyourcontinuingfocusonfourmainareas.MarketsWewillcontinuetofocusonourexistingtargetedmarkets,particularlythesignificantopportunityintheUSasthisdominatesourrevenueandoffersthefastestrevenuegrowth.NewZealandhasmadegreatstridesinthescaleadoptionofCxbladderbythelargepublicprovidersand,whilsttherevenueissmall,itwillcontinuetogrow.SouthEastAsiacouldpotentiallybeevenbiggerthantheUSoneday,andwenowhaveanestablishedbaseinSingaporeandhopetoinitiateourfirstcommercialcustomertherethisyear.

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ProductsOurproductshavebeendeveloped,validatedandarebeingrolledoutacrossourmarkets.Wearealreadyseeingthebenefitsofhavingasuiteofproductsthatcovertheclinicalpathway,withsomeofourcustomersnowutilisingtwoormoreofourtestsintheirclinicalpractices.Inlinewithourusuallaunchtimeline,ourmorerecentproductsarestillbeingrolledoutacrossourinternationalmarkets.WewilllooktolaunchCxbladderResolveintotheUSandAustraliathisyeartocoincidewiththepublicationoftheproductperformanceinapeerreviewedscientificpaper.2016sawuscommerciallylaunchCxbladderTriageandCxbladderMonitorintotheUS.It’sstillearlyfortheseproducts,however,themarkethasreactedstrongly,particularlywithregardtotheuseofCxbladderMonitor,inbothNewZealandandtheUS,formonitoringpatientsreturningtotheclinicforevaluationforrecurrenceoftheircancer.CustomersWe aremaking good progress in our sales strategy and converting an increasing number of UserProgrammesintocommercialcustomers.OurprimaryfocusisonestablishingcommercialagreementsandtractionwiththelargescaleorganisationswearetargetingintheUS–theVA,TRICARE,KaiserPermanenteandtheCMS.Inparticular,weanticipatebeingunderwaywiththesupplyofCxbladderteststoKaiserPermanenteshortly after signing off the agreement, although, as always, we are dependent on their internalprocesses.Wearecontinuingourdriveonbuildingcommercial relationshipswith thetargetedVAcentresandarefocusedongainingourLocalCoverageDeterminationenablingustorecoverrevenuefortestsforpatientscoveredbytheCMS.SalesChannelsWehaveidentifiedanumberofchannelswhichwillhelpbuildthecommercialuseofourproducts,ranging from increased marketing, relationship building with DHBs, the use of specialist andexperiencedsalesexecutivesandthetargetingofspecificlargescaleorganisations.AkeyfocusforusinFY18willbetogetmorerecognitioninthestandardsofcare.InConclusionWehavemaintainedaconsistentgrowthstrategyandaredeliveringonourplannedoutcomes.Movingforward,youcanexpecttoseemoreofthesameaswecontinuetofocusongainingtractionin theUSandourother targetedmarkets andweareexpectinga step-up in thenumberof testsprocessedandrevenue,oncewegetunderwaywithKaiserPermanente.WearemakingstrongcommercialprogressandexpecttoseesalescontinuetogrowinFY18astheselargescaleorganisationstransitionintocommercialcustomersandbuildsignificantsalesvolume.