Noah Colby's questions to CareDx Inc (CDNA) leadership • Q4 2024
Question
Noah Colby from Jefferies asked about the path forward on litigation following the recent patent reversal, the company's capital allocation priorities given its cash position, and the expected ramp-up time for new sales hires.
Answer
CEO John Hanna stated that while an appeal in the litigation is likely, the company believes the patent invalidation is significant. He reiterated the capital allocation strategy: first, reinvest in the business for growth; second, seek strategic M&A; and third, use share buybacks. Hanna also noted that new sales hires typically take about six months to become fully effective.