What have these turkeys been up to.
Whilst the strategy is commendable there is very little time frames placed on these. Whilst I appreciate that validation and studies take time to stand up, a rough guide as to the time frame should be able to be provided.I have some questions regarding the lab throughput and the efficiency of the US sales team. The sales team was recently increased to 23 people, and there is a push to increase that to 40. The release speaks to the commercial tests totalling ~16,000. Ignoring that KP likely accounts for a large amount of these tests on average each sales person is returning~695 per year. Can you provide some additional information as to the sales teams KPI’s and metrics that would show this being Value for Money. Given the 25% increase in volumes from April, this results in ~100 tests per week, 5,200 tests per year which at best would result in an additional ~230 tests per sales staff (using 23 persons as a denominator)
Is KP fully integrated? Given the announcement in 2020 it would take some time. Using PEB assessment of the addressable market (330M/7M presenting = 2%, with approximately half being evaluated 3.4m people). Given KP has 12.5m members, once could judge the addressable market for KP alone is 125K people (1% of members). Can you explain if they are fully integrated why the total commercial throughput in the US is only 16,000 tests at best (assuming all USA throughput is KP)?
The operating costs increased ~$9M to achieve an increase in revenue of ~$4M. How much of these operating costs were a direct result of upgrades to the Dunedin lab in 2022. Given the low throughput of NZ and the low throughput in USA (18K tests of ~250K P.a. capacity = ~7%). Surely the costs to run and maintain labs at this stage does not make fiscal sense.Why is the tests not being licensed to independent labs?
What is the total capacity of the NZ lab?
Will you be considering releasing lab throughput data on a monthly or quarterly basis?
Finally, there is a large outstanding amount of invoiced tests that neglect to be updated – this was ~$20M and no update has been provided as to the outcome of these negotiations.
