Hello and welcome to the Guardant Health Q3 2021 Earnings Call. My name is Alex and I will be coordinating the call today. [Operator Instructions] I will now hand over to your host Carrie Mendivil, Investor Relations to begin. Over to you, Carrie.

Thank you. Earlier today Guardant Health released financial results for the quarter ended September 30, 2021. If you have not received this news release or if you'd like to be added to the company's distribution list, please send an e-mail to investors@guardanthealth.com. Joining me today from Guardant are Helmy Eltoukhy, Co-CEO; AmirAli Talasaz, Co-CEO; and Mike Bell, Chief Financial Officer. Before we begin, I'd like to remind you that management will make statements during this call that are forward-looking statements within the meaning of federal securities laws. These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated. Additional information regarding these risks and uncertainties appears in the section entitled Forward-Looking Statements in the press release Guardant issued today. For a more complete list and description, please see the Risk Factors section of the company's Annual Report on Form 10-K for the year ended December 31, 2020, and in its other filings with the Securities and Exchange Commission. This call will also include a discussion of certain financial measures that are not calculated in accordance with Generally Accepted Accounting Principles. Reconciliations to most directly comparable GAAP financial measure may be found in today's earnings release submitted to the SEC. Except as required by law, Guardant disclaims any intention or obligation to update or revise any financial projections or forward-looking statements, whether because of new information future events or otherwise. This conference call contains time-sensitive information and is accurate only as of the live broadcast, November 4, 2021. With that, I'd like to turn the call over to Helmy.

Thanks, Carrie. Good afternoon and thank you for joining our third quarter 2021 earnings call. I'll start off today's call by highlighting our progress across oncology, as we continue to build on our strong foundation as a liquid biopsy leader. I will then turn the call over to AmirAli for an update on our screening program in colorectal cancer and our plans for expansion into multi-cancer screening. And finally, Mike will provide a more detailed look at our financials and our outlook for the remainder of 2021. Our mission at Guardant is to conquer cancer with data, fueled by a commitment to putting patients first. To this end, we are dedicated to bringing the absolute best products to market that will provide clinically actionable information to informed patient care. Before I provide an update on our progress, I would like to start the call off with a patient story. This past summer a 64-year-old woman was diagnosed with colorectal cancer. Her oncologist ordered a Guardant360 CDx test which identified her cancer as KRAS negative, indicating that she may respond to anti-EGFR therapy. With this information, she was enrolled in a clinical trial. As her treatment progressed she began to experience worsening symptoms that led to uncertainty about whether or not she was responding to treatment from the clinical trial. Her oncologist ordered a Guardant360 Response test which is the first commercially available blood-only liquid biopsy test that detects changes in circulating tumor DNA levels to provide an early indication of a patient's response to treatment. The test confirmed her cell-free tumor DNA levels were decreasing, meaning she was indeed responding to treatment and her symptoms are likely a side effect from the therapy. With this her oncologist had the information he needed to continue treatment through the trial and the…

Thanks, Helmy. At Guardant, we always believe that a blood-based screening test during wellness checkups has the potential to guard us against cancer. Blood-based screening is simple reduces the need for patients follow through. It's much easier to integrate into health system workflows, expand accessibility to underserved communities and would likely improve the compliance to screening tests. That said, the complexities of malignant disease, the imperfect nature of screening tests and the morbidity associated with follow-on diagnostics mean that early detection does not intrinsically confer positive net health benefit. The net health benefit of early detection versus potential harm from unnecessary screening and follow-on diagnostic procedures varies for different cancer types. For instance, a large study showed that while it was possible to find ovarian cancer early, the long-term outcome sadly were no different for cancers detected early versus later at least based on the current interventions. In some hematologic malignancies, such as chronic lymphocytic leukemia, early chemotherapy confers no survival benefit to patient diagnosed in the early stages and may introduce significant psychological and even financial distress for a condition in which no treatment is required. Some investigators have applied blood-based screening even low sensitivity test in a one-size-fits-all approach regardless of cancer type with the presumption that early detection is always positive. In contrast, at Guardant Health, our focus is to develop a highly accurate blood test to screen for cancer types where early detection can offer a clear net population health benefit. We started our screening program with CRC, where the patient compliance rate to screening remains stubbornly at 66% in a disease where screening reduces the risk of death by 62%. In addition, we believe that developing a highly sensitive blood test was visible and the regulatory approval and reimbursement pathways were clear. We launched ECLIPSE,…

Thanks AmirAli. Total revenue for the third quarter of 2021, was $94.8 million, up 27% from $74.6 million in the prior year quarter. This increase was primarily driven by strong growth in both clinical and biopharma sample volumes. Total precision oncology testing revenue for the third quarter was a record high of $79.3 million, with a growth of 31% compared to $60.4 million in the prior year quarter. Precision oncology revenue from clinical tests in the third quarter was $61.3 million or 27% from $48.3 million for the prior year quarter. Third-party clinical test volume was 22,806 which is an increase of 35% from the prior year quarter. Blended clinical ASP for the third quarter of 2021 was $2,689 which was above our estimate due to an improvement in ASP for Guardant360 CDx, where the team has done an excellent job ensuring payers were well prepared for the new ADLT code and efficiently process claims. We are seeing solid traction for our new clinical products Reveal TissueNext and Response and we expect their volumes to continue to increase with time. However, we don't expect these new products to significantly contribute to revenue until, we receive Medicare and private payer reimbursement. Therefore, whilst we expect Guardant360 LDT and CDx ASPs to continue at similar levels, we expect the blended clinical ASP will be impacted as we make reimbursement of the new products. Precision oncology revenue from biopharma samples in the third quarter totaled $17.9 million, up 49% from $12.0 million for the prior year quarter. Biopharma volume was strong with third quarter samples totaling 4,839 up 58% from the prior year quarter. We are very pleased with the healthy rebound and we are still on track for low double-digit volume growth for 2021. Biopharma sample ASP was approximately $3,700 down 5%…

Thank you [Operator Instructions] Our first question today comes from Puneet Souda from SVB Leerink. Puneet, your line is now open.

Hi Helmy. AmirAli thanks for taking the questions. So first one on ECLIPSE. I just wanted to clarify in terms of enrollment versus completion or collection of the samples and also the completion of colonoscopy here. You said you'll finish enrollment here in the next few weeks is there any reason you would need to increase the enrollment of the trial at this stage? And really I mean asking that because there are now two CRC screening trials in the space where they have to increase enrollment to over 20,000 patients and extend their trial timing. So I just want to clarify in terms of completion of samples and collection samples and colonoscopies, I just want to make sure that there is no reason to expand from the -- from what you're seeing currently. And also your enrollment is going to stay intact at 13,000 in the event -- given the events rate that you're seeing so far?

Yes. Thank you, Puneet for your questions. So as you may know actually these studies are powered based on the number of CRC that basically we need to identify in this prospective registrational studies. And as we elaborated in our last earnings call when we increased the target enrollment from 10,000 to about 13,000 that was based on some of the intermediate readouts of the CRC incidents that we've seen so far for a patient that they have finished their colonoscopy and we have the colonoscopy reports and their CRC were confirmed. And based on all the data that we've seen we felt comfortable that actually we need to increase enrollment target from 10,000 to 13,000. And since then still our prevalence in CRC incidents remain the same. So we believe based on all the information we have right now we feel very comfortable that 13,000 is the right target enrollment for us. I cannot obviously comment about other companies' trials, but probably actually maybe what's getting experienced is maybe how well the sites have been selected for the trials what's the expected prevalence of CRC in different locations, different geo. I think there are a bunch of factors there that potentially help Guardant. As you may remember during early days of COVID in fact we doubled down on our screening study instead of slowing it down. And during those days in fact we went and we secured some additional high throughput high prevalence kind of sites into our study. But I know well our data that we are seeing at Guardant and definitely I cannot comment about other trials out there.

That's great. No, they're very helpful. And for my follow-up I know it's still early to talk about the reimbursement in the -- for the SHIELD trial or the SHIELD assay when it emerges out of the trial. But could you maybe just talk about where potentially how are you thinking about sort of the pricing of this assay? And what is the regulatory pathway here and the guideline inclusion pathway that you need in order to get this screening test onto the market? Thank you.

Yes. On the lung screening side that's been something that we very well studied during the last couple of years. Always the criteria that we use for selecting our next end indication is multifactor units really biology technology, but also reimbursement pathway and regulatory pathway. As such we believe lung in fact is a great second candidate for us, obviously not the only candidate but a great one. As we make more progress towards this program and initiatives definitely we would keep you posted. But based on conversations that we had and research that we have done, we believe we know actually what we have to do to really take such device through hopefully a successful FDA review and also for Medicare review. So -- but as we make more progress definitely we'll keep you guys posted.

Great. Thank you.

Thank you, Puneet. Our next question comes from Brian Weinstein from William Blair. Brian, your line is now open.

Great. Thank you so much and thanks for taking the questions, guys. Good afternoon. AmirAli you've kind of talked about this in the past but given the recent data a couple of weeks ago from ESG I just wanted to go back into the concept of the representation of sensitivity in that trial versus what we should be thinking about relative to your bar for ECLIPSE not the bar for the FDA, but kind of where you think things are going to come in relative to thinking about degradation in the pivotal versus the case control. So how representative do you think that case control study really was when thinking about what we should be thinking about relative to ECLIPSE? Hopefully that made sense.

Yeah. Absolutely, so let me start with saying that the ECLIPSE is like one kind of study and other kind of analysis biomarker studies could really completely show that the performance that we are going to see in ECLIPSE. We don't need to do this prospective two-year study of sample collection of ECLIPSE and run it. Having said that, throughout the years actually since 2019, we tried to derisk the technology on our assay in the cohorts that can mimic as closely to the screening population that we are going to get in ECLIPSE. I think the closest -- although it's not exactly the same. The closest are these asymptomatic patients with early-stage CRC that we are basically seeing the performance of our assay. We talked about the limitation of those data. That's why we are very excited and actually thrilled with the performance of our assay. And we are kind of very optimistic of what we are going to see in ECLIPSE. But according to the comments I always mentioned, ECLIPSE is ECLIPSE. So you have to just wait. And we are just very few months away from really getting this data from ECLIPSE. All the signs that we are seeing so far in general gives us a lot of confidence. But we have to see what ECLIPSE is going to have for us at the end when we run that cohort.

Okay. Great. And then, as a follow-up we've been monitoring the job posting sites and you guys are clearly building organization in advance of the launch of that product as an LDT next year. Can you just give us any idea about the type of sales force that you're looking to have here? Be it size, be it qualifications, where you're going to be getting people from? Any kind of information on that I think would be helpful. Thank you.

Yeah. Absolutely, so we are very excited about actually 2022. It's going to be a year for us that, we're kind of go after a bunch of market shaping activities. Really our goal is to do the right investment that once we have FDA approval in 2023, we can maximize the market adoption at that time. And we are building sales channel accordingly to meet the objectives that we have in this market-shaping phase of our commercial base. It ranges from engagement with a bunch of high-value stakeholders that can basically help set the right framework for blood-based screening to be used in proper way in health system and also a bunch of early adopters on the PCP side. Also we are going to engage heavily with a bunch of health system and try to get a bunch of engagements when we are really on the post LDT validation of our tests to really intake rates the blood-based screening assay into procedures, workflows and systems that these health care systems have. So that would be our activity in 2022. And we are kind of to appropriate investments through our sizable commercial channel to really go after those opportunities for us.

Okay. Thank you, Brian. Our next question is from Derik De Bruin from Bank of America. Derik, your line is now open.

Hi. Good afternoon. Just the first question, I think is on the OUS expansion. I mean, you're making some big pushes into Spain the U.K. And obviously there's the JV purchase. How should we think about, the -- particularly in the Spain and the U.K. situations what were sort of the volumes what liquid biopsy we're doing now with LUNAR-2 there? And how do you sort of think these changes in the utilization going forward? And when do you see the OUS revenues becoming material?

I think Derik thanks for the question. I think a lot of what you're seeing is we're laying the groundwork for what we believe is the -- are the critical inflection points for OUS volume which is specifically public reimbursement in each country, in each respective country. And we believe that the approach that we're taking where we partner with some of the leading institutions and thought leaders in each region is an approach that can accelerate that progress towards that goal. And so we're seeing a fantastic, I think traction with the studies that we're doing, with the volumes that we're doing in key academic centers in the EU-five and lot of Latin America and certainly with our joint venture in Japan and many other countries in the region. But I think you're going to see more of that as we really turn our focus from being a largely US clinical volume-driven company to one that really has a global leadership in this space.

And speaking of clinical volumes, can you discuss what the contribution was from Reveal this quarter?

Yeah, it's Mike here. We're not breaking out the volumes between the different products now. And as we get more products, there's going to be more impact from those new large products. But, I think we've been really pleased with Reveal from the start of the launch back in February. So it's going as well as better than we expected. So we're really pleased with that. But yes we're not breaking out those volumes at the moment.

Thank you.

Thank you, Derik. Our next question is from Jack Meehan from Nephron. Jack, your line is now open.

Thank you. Good afternoon. I wanted to dig in a little bit more on the recent data at ACG. Just comparing that versus the data set that was presented at ASCO and I think it was similar group. The sensitivity improved from 91% to 95%. Just curious if you could just elaborate on what drove the performance improvement? Was it just related to the incremental samples that were included? Have you made any performance improvements to the test? Again, just trying to think about how this translates to the prospective data.

Yes, sure. Actually the cohort that got presented at ACG by our partners in Samsung Medical Center where they expanded cohort that some of the earlier data got submitted earlier in the year and was presented in ASCO as a single biggest cohort data that basically data got published so far by one of our partners. In terms of what are the factors that went into the performance improvements, I look at all these numbers are basically in the same ballpark from my perspective. Definitely the cohort size was expanded. And one thing that we have in our assay although our assay is the same on the algorithm side everything is based on training and learning. So definitely over time when we generate more and more data an historical data just softer performance is going to get improved over time just that's the nature of learning-based systems. But all those kind of improvements would be really at best marginal. So I don't expect like even from now until at the time we run ECLIPSE, we're going to see a significant jump in the performance. But over time, as more data gets generated and get fit into our algorithm site definitely the training is based on more kind of samples representation of all kind of smaller cell population. In theory, you can expect maybe performance gets up better slightly but very marginally from my perspective.

Got it. And as a follow-up there were some headlines in the quarter around M&A. I was curious if you could just weigh in on your thoughts around continuing to forge ahead with the organic strategy versus maybe the benefits of doing something in terms of more of a big deal?

Yeah. No thanks for the question. We have an extensive team we've built around corporate development. We obviously have a lot of cash in the bank. And I think we'd like to use it for something that makes sense potentially. But as you mentioned our bar is very high. We're very excited about the organic opportunities we have about our pipeline about the progress we're making. We've launched a whole host of products over the last 12 months into the market and have obviously some pretty breakthrough products planned for the coming quarters and years. And so the bar is understandably very high. But at the same time we're open to anything that can enhance our technology platform, that can enhance our commercial channel, that can enhance our data offerings. And we're always going to be focused on those things that make sense for the long-term that continuing to really bolster and enhance our growth prospects and so we're not really going to compromise on that.

Thank you.

Thank you, Jack. Our next question comes from Matt Sykes from Goldman Sachs. Matt, your line is now open.

Thanks for taking my questions everybody. I just have one question and a follow-up. I'll do it all in one go. But just on OpEx maybe for you Mike, obviously, a step up year-over-year and sequentially. And you guys talked about where some of that is going in terms of the commercial capabilities. I'm just wondering in terms of trends that you can kind of call out in terms of what we should expect as an elevated level of CapEx. I know Mike you said it will likely continue through this year. But as we enter into this year was anything pulled forward or accelerated in that aspect? And then secondarily on that can you kind of talk about labor cost component as a portion of that OpEx increase if that's material if at all? Thanks.

Yes. I would say first of all, Matt, I mean nothing has really been brought forward. I think everything that we've done in our OpEx through the year has been well-planned out. And throughout the year we plan to increase the size of the commercial team on the oncology and we mentioned that that's now at over 250 people. So, that's more than doubled in the last 12 months. And as we come in towards the back end of the year and into next year, we start to build up our commercial team on the screening side, getting ready for the LDT launch. So, yes, commercially that's been really the driver of our OpEx increase this year and it will do going into next year. On the research and development side because that's also been a big driver of the increase on OpEx. Obviously we've got ongoing studies with ECLIPSE. We announced here now the ORACLE study and the SHIELD study that are commencing. So they'll come into a factor next year. And then we continue to innovate and develop new products. And again we launched three new products this year. So, we're continuing on that spend. So we expect research and development spend also just to continue to drive those initiatives next year. On the personnel piece, without breaking that out specifically on the percentage, yes, I mean we've obviously seen that increase. And again I mentioned that the additional people in the -- on the commercial on both oncology and screening. So, that's becoming a grower for us and we're investing in people and growing the size of the organization. We're also building out the infrastructure of the business as well. So, yes, that's also a driving force for our OpEx increase.

Great. Thanks very much. I'll hop back in queue.

Thank you, Matt. Our next question comes from Patrick Donnelly from Citi. Patrick, your line is now open.

Helmy maybe one for you just on the volume side. It sounds like September and October recovered pretty nicely from August. I think you're talking about 40% volume increase in 4Q. Can you just talk about the cadence as we went through the quarter? And even in October your confidence level things are stable to obviously pointing up here as we enter into 2022? Just trying to get comfortable with the volume piece. It sounds like you guys are a little more confident relative to last quarter certainly.

Yes. No, thanks for the question. Yes, I think the good news was some of the early learning sign we saw, I think, in the last call kind of dissipated or at least stabilized and it seems like there's been a sort of new normal out there with Delta, obviously is still a concern but not really causing any kind of increased closures or increases of restricted access. It's sort of still restricted still not like it was pre-COVID. But the good news is it's not getting worse. And we just have seen a great traction with our sales teams with our products and so on. So we are hopeful, this means good momentum going into 2022.

Okay. That's helpful. And then on SHIELD might be one for Mike. I apologize if I missed it but do you guys break out what you think the study will cost? I know you talked about 10,000 patients maybe three years enrollment. But if you could just talk about the cost side would be helpful. Thank you.

Yes. No we don't break out the cost of individual studies. But obviously, this is a multiyear study large number of patients. And so it will be a sizable amount over the – spread over the next few years and in similar level to ECLIPSE. But yes, we're not sort of breaking out each individual study and giving those costs.

Understood. Thank you.

Thank you, Patrick. Our next question is from Julia Qin from JPMorgan. Julia, your line is now open.

Hi, good afternoon. Just a follow-up on Reveal. I know you're not ready to quantify the volume contribution in a quarter. But just qualitatively is Reveal uptake so far mainly within biopharma users, or are you seeing equal traction for clinical customers? And are you still expecting LCD coverage by year-end?

Yes, Helmy do the last piece. Yes I think we're – that's still our expectation as it pertains to reimbursement. I would say for volume we're seeing good traction on both sides. We're seeing clinical volumes really grow nicely. And on the same thing on the biopharma side we're seeing really the platform and the tests really, I think resonates with a lot of our pharma customers. And obviously, as we continue to grow our user base and customer base on the biopharma side, we see ample opportunities ahead for good traction for all of our products including Reveal.

Got it. And then on M&A front just dovetailing on a previous question. I know you didn't really rule out the potential to grow your sales channel inorganically. But just thinking about your priorities like how important is it for you guys to acquire a channel in the community oncology setting at this point in time versus building it out organically during this time period where you're waiting for guidelines and reimbursement to fall in place?

I mean I think we broke out our growth in the community setting, I think in this – in the prepared remarks. We're growing faster in the community than we are in academic. That's really the area of most success for us. And it's something we're very, very confident about. You can see the great performance we had in Q3. And heading into Q4 we believe on the clinical side. So we're very confident about that. Like I said, I think in the previous question, when we think about different M&A opportunities potentially, it's not about the short-term or what's happening in the business now but or what it means for the business three to five years from now. But yes, right now we're very confident with both the mix of products we have our offering and the success we're having in our commercial channel

Thank you, Julia. Our next question comes from Tejas Savant from Morgan Stanley. Tejas, your line is now open.

Hi, guys. This is Edmund [ph] on for Tejas. Thank you for taking my question. I guess a couple on biopharma volume from me. The volume trends appear to be looking very strong but I was wondering if you guys could benchmark what you're seeing in terms of sample volumes relative to pre-pandemic levels? And what is your backlog of work looking like heading into 2022?

Yes, it's Mike here. Yes I think we're sort of recovering now from the depths of the pandemic impact. And I think we're back to levels where we were before that. And as we forecast going out towards the end of the year, I think we just see that rebound getting stronger and stronger. So now that's very positive for us. And I think volume back above the pre-pandemic levels. Q –Unidentified Analyst: And in terms of backlog of work heading into next year can you give some color on what that looks like?

Backlog of work. I mean we don't generally break out a dollar value of backlog of work. But I think on the biopharma side there's definitely a backlog. And we look at the pipeline and we look at going into 2022. So, I think we look at that as being a continued strong volume coming out of Q4 into Q1. But specifically breaking out that and giving a number we don't generally to do that. Q –Unidentified Analyst: No that's helpful. And then a follow-up for you Mike. On the mix skew you saw in terms of volume shifting away from OMNI. I'm not sure if you explained this but what drove that? It seems to be normalizing. But just trying to understand what happened here and if it's going to be something we should be looking out for in the future?

Could you repeat the question from the start? I missed the first please. Q –Unidentified Analyst: Sorry about that on the volume mix skewing away from OMNI in the second quarter that seems to have normalized a bit this quarter but I was just wondering what was the underlying driver for that?

No. I mean that generally that sort of changes every quarter. And if you look at our ASP on the biopharma side, it does fluctuate quarter-to-quarter. And obviously it just depends on what's been sort of processed and what samples we receive for that quarter. So yes we had a shift this quarter versus last to towards -- more towards OMNI. But there's no sort of definitive driver that's changing that. And there's no real trend to look at. I think it just fluctuates on a quarterly basis. Q –Unidentified Analyst: Got it. Thank you very much.

Thank you Tejas. Our next question comes from David Westenberg from Guggenheim Securities. David, your line is now open.

Hi, thank you for taking the question. So I wanted to focus on the community oncologists. You highlighted the growth there. Are there any initiatives there that you want to highlight? And then as we look to the next three to five years what do you think the magnitude of growth is going to be in the community oncologists versus the academic setting? And that's all the questions I have.

No I think when you think about how the market is segmented it's often thought to be about 80% in the community. Our mix is well over I think 60% community now. So there's more growth to be had there. So, it's certainly an area of focus for us. I think there are a number of reasons why I think we're doing well there. I think it's -- you just need a critical mass to be able to address really the distributed nature of the community setting. So we've really expanded the commercial team over the last year and especially with the launch of Reveal. It's not just the commercial team, but it's also the medical affairs team that is very critical and really having that -- those genomic specialists and medical partners be able to help with interpretation of results and feedback on test reports. And so that's something that we invested in very early on and we continue to invest in as well. And then finally it's the service offering really being able to provide customer service experience a white glove service that really makes our portfolio and our company an extension of the offices that are out there and that's something we're very committed to. And as you can see as we continue to expand the types of products we offer I think the nature of the products we have they all start working together, we believe we'll be more and more sticky in the community setting especially where blood is really much, much simpler to be able to offer a best possible precision medicine and care without meaning really the logistical hassles that tissue represents in terms of working with a whole host of other medical professionals that may not be on site. And so, blood really does empower the community oncologists and helps keep patients close to home as they desire to do.

Thank you.

Thank you, David. Our next question comes from Lu Li from Wells Fargo. Lu, your line is now open.

Thank you for taking my question. And I think just one question. Can you please possible to frame like the early impact of the Guardant Response on the volumes over sell? And then also expectation for 2022?

Well, again, I think like for Reveal and TissueNext, all of the products that we launch this year, we're really pleased with how they've been received and how they've been utilized. And so again, the volume that we're seeing we're very pleased with and it's in line with our expectations. But again, we have this now multi-products on the clinical side and we're not breaking out the volumes. But obviously, the main growth driver for us continues to be Guardant360, LDT and CDx. And from a revenue perspective, the vast majority of our revenue is seen from those two sort of fully reimbursed products.

Got it. Makes sense. And just maybe just final questions on, how do you thinking about like the market share at this point, any impact from competition from other players? Just wanted to get a sense about how you're thinking about the market dynamic? Thank you.

Yes. That's a great question. In terms of all the metrics, we track we believe it's never really been in a better position than we have now. We continue to make great progress. We think we have great performance from a share of voice perspective. And we continue to invest not just in our products, but on our commercial offering and commercial channel as well. And we feel very good in all the areas that we compete today and we're going to continue to invest more as we have -- as we continue to have success.

Thank you.

Thank you, Lu. Our final question comes from Dan Arias from Stifel. Dan, your line is now open.

Hi, guys. This is Daniel Macek on for Dan Arias. First just a clarification primarily. I think, I heard the ECLIPSE readout is expected in the first half of the year. I just wanted to make sure I heard that right. And then if so I'm just curious if there's a possibility of that reading out sooner? And then for Mike on ASPs, the expected -- or you expected -- the blended average is lower with new products, but is your expectation that the issue with the private payers and that new ADLT code has largely worked through? I know you mentioned you said that your teams are working on that. So I'm just trying to get a feel for if maybe that's something that is less of an issue going forward? Thanks.

Okay. This is AmirAli. I'm starting our first question. So we expect to actually repeat our target enrollment for ECLIPSE in very next few weeks. We are just -- we're almost done. So it's going to be shortly. We're going to get our target enrollment. In terms of the data readouts, we expect it to be mid-2022. So middle of next year and then I'll give it to Mike.

Yes. And yes on the ASPs, I mean, yes firstly with LDT and CDx actually we had very, very strong ASPs this quarter. And I think we've guided to $2,600 and it was getting closer to $2,700. Basically made up blended ASP was $2,689, so really strong. And yes to the ADLT issues, I would say, they're pretty much push through now and the team has done a great job in actually getting payers prepared for that code. And so we've seen a lot less friction in the system than we thought that we would see. And so there was strong ASP. I think as we go into the end of the year and we sort of flagged that in the remarks earlier as our newer products start to gain traction, we'll see some impact on that overall blended ASP. So while we see LDT and CDx rates above the $2,600 level probably at the blended level we'll start to see that overall come down a little bit each quarter. And it will take time to get the full reimbursement from Medicare and private payers before we passing the uplift. But I think the message is for CDx and LDT those issues are pushed through very strong ASPs.

Okay. Appreciate it guys. Thanks.

Thank you, Dan. That concludes the Q&A session for today. Thank you for all joining today's call. You may now disconnect.