CHICAGO – Sophia Genetics said this week that a new product may increase its 2022 revenues beyond current expectations as it counts on another recent release to meet current expectations. The firm also provided updates on a number of ongoing partnerships and projects.
In connection with the release of its first quarter financial results on Tuesday, Sophia Genetics reiterated its previous 2022 revenue forecast, saying it "remains comfortable" with the low end of the predicted $51.5 million to $54.0 million range.
However, Sophia said that those estimates do not take into account potential revenue from the forthcoming CarePath product, a multimodal analysis module for its flagship Data Driven Medicine (DDM) platform that represents the firm's first foray into clinical decision support. Sophia introduced CarePath at the JP Morgan Healthcare Conference in January and is on track to implement it in the second half of the year.
"It's a pretty material upgrade for us," CFO Ross Muken said during a conference to discuss the financial results, adding that it makes the company into a true "data player."
Muken noted that the company follows a consumption model, only recognizing revenue when a customer uses its platform. "We are not a traditional [software-as-a-service] model," he said.
In its guidance, Sophia did consider potential revenues from a new deep learning-based application for detecting homologous recombination deficiency (HRD), a product that decentralizes HRD testing of tumor samples, enabling users to access Sophia's genomic analysis while retaining ownership of their data.
Sophia, which has twin headquarters in Saint-Sulpice, Switzerland and in Boston, unveiled the HRD product in February at the same time it announced a collaboration with AstraZeneca to help European laboratories and research institutions conduct in-house HRD testing for ovarian cancer.
Muken also said the company expects to see strong growth from central and specialty laboratories in the second half of the year. Sophia recently said that it signed a letter of intent with Ambry Genetics parent Realm IDx to codevelop novel genomic applications and commercialize multimodal applications to widen the use of next-generation sequencing for cancer care.
Sophia CEO and Cofounder Jurgi Camblong said that the firm is in talks with several other central labs now, particularly around the HRD product. Muken suggested that a series of announcements would come in the second half of this year and into 2023.
Camblong also said that the company extended its contract with Moffitt Cancer Center in Tampa, Florida, during Q1 and is "in the midst of signing an extension deal" with Brazilian clinical diagnostics giant Diagnosticos da America (DASA). Moffitt nearly tripled its volume of analytics use on the DDM platform in Q1, according to the company.
Sophia had announced last month that it had passed 1 million profiles analyzed on the DDM platform, half of those in the past two years.
Another project high on Sophia's priority list is DEEP-Lung IV, a multimodal study of metastatic non-small cell lung cancer that Sophia announced at the Radiological Society of North America conference late last year. The company is partnering with research institutions to conduct deep learning-based analysis of clinical, biological, genomic, and radiomic data to find and validate markers that might predict immunotherapy response.
Camblong said that Roswell Park Comprehensive Cancer Center in Buffalo, New York, and two other organizations he did not name recently joined DEEP-Lung IV, bringing the total number of participating sites to 19 in seven countries. Seventeen sites have been activated so far and the study has recruited nearly 500 participants. The goal is to follow 4,000 patients at 30 sites worldwide.
Sophia will provide an update on DEEP-Lung IV next month at the American Society for Clinical Oncology (ASCO) conference, Camblong said. The study is expected to continue through February 2024.
Also at ASCO, the company will have a joint presentation with GE Healthcare. Those firms formed an alliance last year to develop AI-driven analytics and workflow technologies for oncology, with an emphasis on matching treatments based on genomic profiles and cancer types.
Initially, they are integrating data between the DDM platform and GE's Edison. Later, the firms will be engaging hospitals to bring together imaging and genomics data and also looking to develop multimodal analytics applications that draw from both technology platforms.