Aaron

Aaron inquired about the payer mix in HAE (commercial vs. Medicaid), the timing of any Medicaid coverage in the event of approval, and the assumptions for the expense profile when stating that mid-single-digit market share could fully fund operations.

Answer

EVP and CFO Edward Dulac stated that roughly 70% of the HAE opportunity is with commercial payers. Regarding expenses, he noted that 2025 saw a restructuring to focus R&D and build commercialization capacity. He expects a reasonable net cash use around $400 million annually, with some increased investment in sales and marketing but not substantially higher overall expenses than today. This allows confidence that even mid-single-digit market share for lonvo-z could fund operations.

Aaron asked about the factors influencing the Shield guidance, specifically whether the Q4 sequential volume growth was an anomaly and the level of conservatism embedded. He also inquired about the timing and impact of the Quest and PathGroup collaborations.

Answer

AmirAli Talasaz, Co-CEO, acknowledged the strong Q4 performance but emphasized a thoughtful approach to guidance in the early stages of the launch. He noted that Quest and PathGroup collaborations are expected to provide minor contributions, primarily through EMR connectivity, with no volume contribution from Quest salespeople currently factored into the guidance, pending monitoring.

Aaron inquired about the growth of esoteric testing (almost double routine), how R&D investments are prioritized for these tests, and the commercialization strategy and reimbursement updates for Genoscopy's ColoSense.

Answer

Chairman and CEO Adam Schechter noted continued asymptotic increases in esoteric testing, which, while lower volume, are important for driving routine tests. Labcorp focuses R&D on high-growth specialty areas like oncology, women's health, neurology, and autoimmune diseases, expecting 2-3x market growth. He stated Labcorp is agnostic to internal development versus licensing/acquiring to bring the best tests to market quickly. Specific ColoSense commercialization or reimbursement details were not provided.