Hello, everyone, and welcome to the Guardant Health Second Quarter 2023 Earnings Call. My name is Emily, and I'll be coordinating your call today. [Operator Instructions]. I'll now turn the call over to Investor Relations. Please go ahead. Thank you.

Earlier today, Guardant Health released financial results for the quarter ended June 30, 2023. Joining me today from Garden are Helmy Eltoukhy, Co-CEO; and AmirAli Talasaz, Co-CEO; and Mike Bell, Chief Financial Officer. Before we begin, I'd like to remind you that during this call, management will make 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. This call will also include a discussion of non-GAAP financial measures, which are adjusted to exclude certain specified items. Additional information regarding material risks and uncertainties as well as reconciliation to most directly comparable GAAP financial measures are available in the press release Guardant issued today as well as in our Form 10-K and other filings with the SEC. Guardant disclaims any intention or obligation to update or revise financial projections and forward-looking statements, whether because of no information, future events or otherwise. The information in this conference call is accurate only as of the live broadcast. With that, I'd like to turn the call over to Helmy.

Thanks, Carrie. Good afternoon, and thank you for joining our second quarter 2023 earnings I will start off our call today with our top line results for the second quarter and go into more detail on our progress in therapy selection and MRD. I will then turn the call over to AmirAli for an update on end finally, Mike will provide a more detailed look at our financials and outlook for the remainder of 2023. Starting on Slide 3. At Guardant, we are singularly focused on our mission to help patients across all stages of cancer live longer and healthier lives with the data provided from our powerful blood tests. In line with this priority, we will start our call up by sharing patient story. In September 2021, a 56-year-old woman had a colonoscopy that revealed colon cancer. She then had curative intent surgery, which removed 32 lymph nodes. Pathology indicated a diagnosis of stage 2 colorectal cancer with no evidence of disease in the removed lymph nodes as well as negative margins on the reception. With this information, her oncologist determined there was a low risk of recurrence and chose not to administer adjuvant chemotherapy. At a checkup 3 months post surgery, a CEA test was drawn and showed normal results. At our next 3-month check-in, her CEA doubled, but was still within normal limits. The patient requested that her oncologists order a Guardant reveal test. The results were positive for cTDNA and as a result, her oncologists put her back on chemotherapy. Since then, she has had 2 consecutive follow-up reveal tests showing here to be ctDNA negative. And today, she is fortunately showing no evidence of disease. This story highlights the power of our test to provide meaningful decision support to oncologists and patients earlier in the…

Thanks, Helmy. Turning to Slide 9. We are continuing to make advancements in our screening business as we spread had a new patient preferred category in the screening market with our shale blood tests. We are making steady progress with the FDA review of our PMA package for Shell, and we are pleased with the recent successful preapproval inspection by the agency. We continue to expect FDA approval and the launch of SHIELD IVD in 2024. Turning to Slide 10. We continue to believe that SHIELD will transform CRC screening and result in more life --. We have developed and validated a discrete event simulation model, integrating real-world magnitudinal adherence rates evaluate the effectiveness of SHIELD relative to existing screening modalities. At the conference in late June, we presented the initial results from our health outcome modeling. This model examining the simulation of average risk U.S. adults receiving a SHIELD screening test every 3 years. On the left, we see the health outcomes over a lifetime horizon when assuming real-world adherence to different screening modalities. LifeHear's gain for SHIELD was 217 with 820 total colonoscopies while the life years gain for other modalities was in the range of 126 to 255 with 126 to 1,996 total colonoscopies. This initial data shows for SHIELD, the life years gained versus the number of colonoscopy is in range, even favorable compared with other guideline recommended tests. At Guardant, it is in our DNA to stay at the forefront of innovation. With Guardant360, we launched the best-in-class liquid biopsy and have maintained our market leadership continued performance enhancements. We are taking the same approach with SHIELD. We are confident that the performance of current version of SHIELD exceeds the bar for approval guideline inclusion and reimbursement, but this is just the beginning for what…

Thanks, AmirAli. Turning to Slide 12 to review our financial results. Total revenue for the second quarter of 2023 grew 26% to $137.2 million compared to $109.1 million in the prior year quarter. Total precision oncology testing revenue for the second quarter was $125.2 million, increasing 36% compared to $92.1 million in the prior year quarter. As in previous quarters, this increase was driven by strong year-over-year growth in clinical and biopharma volumes. Precision oncology revenue from clinical tests in the second quarter totaled $100.2 million, up 42% from $70.5 million for the prior year quarter. Second quarter clinical test volume was 43,500, an increase of 49% from the same period of the prior year and an increase of 11% or 4,400 tests from Q1 2023. With Guardant360 continues to be the main revenue driver with continued strong growth in lung cancer and a significant uptick in breast cancer. We again saw very strong year-over-year volume growth in both Reveal and TissueNext both growing over 100%. Second quarter Guardant360 ASP continues to be at the upper end of our target range of $2,600 to $2,700. As Helmy mentioned, we had some big breakthroughs in coverage during the past quarter. While this additional coverage will provide tailwinds for our clinical business in the near term, we expect, however, that it will take some time for these upsides to flow through to our clinical ASP due to the length of time it takes to contract with insurers. Blended clinical ASP was approximately $2,300 in line with our expectations. As a reminder, lending clinical ASP will continue to be influenced by both the volume mix between Gardant360, TissueNext, Reveal and response as well as the mix of overall clinical volume between U.S. and international. Precision oncology revenue from biopharma tests in the second…

[Operator Instructions]. The first question today comes from the line of Jack Meehan with Nephron Research.

I wanted to ask about -- so the clinical volume really showed strong momentum this quarter. Is it possible to call out seeing high cancer indications like breast cancer with the CDx approval versus lung or others?

Yes, it's a great question, Jack. Yes, we're seeing, I think, really strong growth across multiple indications. And I would say that it's both lung and breast that are carrying the momentum we started from the beginning of the year. I think we're just seeing further consolidation behind our product, given the leading turnaround time and leading performance we have with lung, which really does have the product market is good. We see that we're probably testing more lung cancer patients in the United States in the metastatic setting with MGS and really any other modality, tissue or liquid. It's really a great place to be, and I think we're just seeing continued momentum there. And then obviously, with the breast [indiscernible] drug approval, we're continuing to see a nice volume lift. Breast has really taken sort of swing up. In terms of volumes, we're doing a very large percentage of metastatic breast cancer patients now in the United States. We've really been pleased by the progress we've made there, but the growth is just not limited to the indications we've seen it across the word.

Great. And then a follow-up for Mike. On the clinical ASP, I know you said the G360 towards the top end, 2,600, 2,700, I was wondering if there were -- we've heard one other lab that reported tonight talk about some claims issues with some Blues plans. I heard others talk about payment integrity I was wondering if maybe you're seeing incremental traction with some of the new coverage, but were there any headwinds that are kind of keeping it within the range versus above the top end?

Yes, Jack. No, there's no headwinds that we're seeing with payers, and we're not seeing any sort of negative traction with any payers. I think we definitely had tailwinds with respect to future ASPs. We've gained coverage now from these major payers in the last 3 months. And I think Yes, we've been at pains to sort of point out that even though we've got the coverage, it's just going to take time to see that coverage come through to ASPs because we need to go through the contracting phase, and then we need to start to see the sort of new rates come through from this pace. So we're confident that over time, ASPs will continue to track upwards and potentially beyond that range that we're currently in. But yes, it will just take time. We've not seen it now. And maybe just to add, for the remainder of the year, we're still sort of forecasting within this rates. So if things were to happen quicker than expected on the contract inside with the payers, we could have some upside there. But we are so far things are steady.

Our next question comes from the line of Puneet Souda with Leerink Partners.

So first 1 on Reveal. Wondering if you can provide any context around contribution in the quarter? What are you within the guide for the full year? And is there any update on upgrade of the assay because obviously, the upgrade of the assay then drives to the common MRD LTV that is out there. Maybe just if you could outline the sort of the time line on that? And then I have a follow-up on FDA primarily.

Take the first part of analysis.

Yes. We're -- I think the color on Reveal, and we're not breaking out those volumes, we've consistently not done that. But I think we said in the prepared remarks, in the quarter, revealed volume grew over 100%. So we're really pleased with the continued traction that we're getting there. And I think previously, we've talked about Reveal revenue in sort of low double-digit millions. And so yes, we're still on track for that. So yes, overall, review is going really well and as well as we would hope but that's probably as much color as we're giving in the numbers.

Yes. No. I mean I think the smart liquid biopsy transition we're on track and will continue to happen this year. Obviously, we've been really digging in, in terms of the capabilities of this new platform. And it's just frankly, amazing us every single day in terms of the increased capabilities that we can have just I think it's not only going to make the performance of our tests so much better in terms of sensitivities, but just a little to do with it. But just the capabilities that will offer the fields are frankly groundbreaking, not just the field of oncology, but even to our understanding of the science of disease progression. And so we were very, I think, hopeful that we can present some of that data at our Investor Day well. But it's going better than [indiscernible].

Look forward to that. And then just on FDA for Amer. Wondering if you can provide us an updated the Shield 2.0 or the next-generation improvements that you're doing in the assay. Is there a way to submit that as a supplement into the current FDA filing? And then also wondering, do you think FDA is going to put weight on the adherence aspect of this assay? Just wondering your thoughts on those 2 points.

Yes. Thank you, Puneet. As I mentioned, we are making steady progress with AMC. And in terms of B2, we are also excited insight that we are getting on and we see actually what happened in terms of the regulatory pathway for 2, our current assumption right now, our judgment is hopefully, we get 31 approved and is the fact that B2 is just optimize the algorithm on the chemistry, all the workflows are the same, effectively, it would be just a supplemental PMA review by the agency that we are planning to submit right after we get approval for first version. So that's our operating assumption at business. In terms of adherence, our rig agency actually acknowledge location for us that they acknowledge the value of blood-based testing for this field. So we believe actually is on the top of the mind that blood has some kind of unique value for this field and based on the experience that they have. So we will see.

Our next question comes from Tejas Savant with Morgan Stanley.

This is Yuko on for Tejas. I was wondering when can we see the next-gen Shield validation data? And could that come as soon as year end? And if so, what the new should we be looking out for?

Yes. So actually, we are expecting to share actually more information and data actually later this year. So please stay tuned.

Great. And I also have a follow-up. Generation of lot will see time, but when should we expect the next larger cohort data on a super naive approach? And then separately, how do you go about getting mind share propositions who are already using a tumor-informed approach. Can you give us a sense of what proportion of current customer accounts are using competing MRD assays versus just a tumor-naive approach?

Yes, it's a great question. We've made really great progress in terms of clinical validation core service we have clinical utility studies that have been running for some time. So we are going to present likely more data later this year in breast and colorectal cancers. I think that data, hopefully, it's positive, we'll published sometime next year and will allow us expand reimbursement. But yes, we're very confident that in terms of the performance of this platform can do much better than almost any sort of issue informed approach is because of the science and the sort of ability to detect more features for we're pleased we're looking forward to presenting more of the background around the technology, how it works and why it works and some of the data at our Investor Day. And yes, we're seeing great traction. I mean, we have a test that is much faster, doesn't require tissue. There's a broader market that undeniable. We saw this with tissue biopsies and liquid biopsies with Guardant360 lung cancer, people asked us, why would someone use a book test instead of a tissue biopsy or tissue biopsy is the gold standard. Now there are way more patients in the U.S. getting NGS from Guardant360 liquid biopsy than tissue biopsy tests today. So once you have product market fit, that becomes the gold standard in the north star by which everyone will have to follow up Yes, we win are on the right path. But it will take some time to get there and ramp things up. But we're very pleased with the progress at this time.

Our next question comes from Dan Brennan with Cohen.

It's John for Dan. I believe the previous guidance range is based on clinical volume growth of about 35% year-over-year. With 1H tracking well ahead here. Is there enough number you're looking for, for the year?

Sorry, is there is an updated what? What was the question again?

Clinical volume growth number. I think the last guidance is based on 35% year-over-year, you're tracking pretty far ahead of that in 1H.

Yes. I think Yes. Clinical volumes obviously growing very strongly and 49% in this quarter was, I'd say, ahead of our expectations. Yes, I think as we look out for the guidance and the increase that we've seen, the increase that we've just had in our guidance, yes, I told in on the clinical volume side. So I would say, yes, now our expectation is probably trend into the high 30s, low 40% growth on the clinical volume. So yes, we're able to have an increase from the previous 35%.

Got it. And then back on ASP, I guess it will take some time for the coverage rate to flow through your pricing, but is there some range that you see blended clinical ASPs going for the rates are locked in and the increase are fully realized.

Yes. I mean it's easier to talk about the Guardant360 ASP. And I think, yes, today, it's at the higher end of that 2600 to 2,700 range. I think if we get sort of full coverage from all of these major payers, and we can contract with those payers, then over time, we think the ASP can get north of 3,000. So potentially a significant increase, but it is going to take time. It's harder on the blended ASP. It's primarily -- obviously, it's due to the mix and the mix between Guardant360 Reveal, Tissue and Response. And so how that mix changes over time, it's very difficult to sort of forecast. And then -- but as each of those products get incremental reimbursement over time and we've got pathways for each of that to happen than I think overall for each product, though going to increase. But it's about to really forecast, say, beyond the end of this year, by that blend ASP is going to look, it is very digital. I'd say our assumption for the remainder of this year is that the blended ASP is going to stay around this sort of 2,300 level.

Our next question comes from Derik De Bruin with Bank of America.

This is John on for Derek. So I appreciate the color on the market landscape in Japan and the pricing and whatnot. I wanted to ask what you see to be the contribution from that market over the next couple of years? If you could talk about the ramp, that would be great.

Yes, it's Mike. I can take that. Yes. I mean for Japan, we were really pleased to get reimbursement coverage this quarter. And in fact, we've just sort of processed our first patient sample in Japan. So really positive news. In our guide for the remainder of this year for Japan, we've got very minimal revenue in there. And then I think, we're hoping and expecting in 2024 that revenue starts to become material. I think when we look at Japan as an overall market, it's a very large market. It's probably overall half the size of the U.S. So we think this can be, over time, a significant for us. But at the moment, I think it's a bit too early for us to be really pointing out any specific guidance for 2024 or specific years. And on the China side, Yes, that's really going to help power our biopharma business. The lab partnership. We've got there enables us to have global offerings to our biopharma partners. And so we're very excited to hopefully soon have that lab go live and start to offer products in China. And again, it's going to be very incremental to our biopharma business.

Appreciate that. And in terms of the OpEx guide, you've talked about the sales and marketing spend and the research spend and that makes sense. Just really specifically the G&A was sequentially up this quarter. How is that tracking for the rest of the year for that line specifically?

Yes. That line is probably in the second half of the year will be maybe a little bit lower than what we saw in the first half. We saw a bit of an uptick in this most recent quarter from a legal litigation expense perspective. And we've just finalized the Illumina litigation that we had, we made press release on that yesterday or the day before. And so we're hopeful that, that expense can drop off in the second half of the year and G&A should stabilize going forward.

Our next question comes from Patrick Donnelly with Citi.

Maybe just one on the biopharma segment, just given overall concerns on budgets of funding there. Can you guys just pull back to kurt a little bit what you're seeing there? What we should expect on the volume side that segment for you?

I think it's sort of in line with sort of what we highlighted at the beginning of the year that there is a little bit of sort of rejiggering in much of the pipeline some companies have some layoffs. They're sort of deciding what areas in the therapeutic areas and the snacks. But that was all kind of factored in at the beginning of the year. So I think we've been pleased that we continue diversify our customer base, continue to grow volumes in this sort of challenged environment. But we also see this as an opportunity. We're having a great conversation on growth pharma company that early looking for new areas by which to really expand some of their pipeline, and we have a very unique platform. So it's I think this is a future year is going to be a very strong growth at.

Okay. That's helpful. And then maybe just on the MRD side. Thinking about the spend levels, again, you guys have been pretty clear on the screening piece. But just on MRD, can you just talk about your expectations around the spend there, thoughts on data generation versus kind of driving increased market penetration just how we should think about the level of investment around that segment is a nice growth area for you guys.

I'll start and I'll let Mike sort of fill in some of the financial pieces. It's an area that requires a heavy amount of clinical validation and clinical studies is something that we've been building up for the last 4 or 5 years, and we have a very nice pipeline of studies across multiple indications and we're planning to essentially process and run and have these collaborations going forward and hope we can share some more of that in the months. And that being said, we're going to be very judicious about how much we invest, how we pace those investments and how much we invest in terms of market share. So we're continuing to grow really nicely, 100% year-over-year. But we're engineering the demand, as we said in the beginning of the year. So the -- we're not letting essentially the burn sort of get ahead of us too much. We really see no competition from a tissue degree in view. We think -- this is a product category of its own product category that is going to be the ultimate winner in this MRD market. So we're in a very good spot right now.

Yes. I mean maybe just to reiterate that we would be a very sort of judicious on the investments we make. That's investments as well as the market development and technical development but also on just processing the samples running those samples prior to getting reimbursement. So we're managing that very, very closely. We've got our stated goals on cash burn this year and going forward. and on operating expenses this year. So we're just -- we're closely managing that investment within those parameters that we have set.

Our next question comes from Dave Delahunt with Goldman Sachs.

Any additional color you could give us on MRD trends. I think I heard you say to Pat's question, you're seeing market share grow 100% year-over-year. Is there any qualitative color you could give us around what are the main selling points have resonated the most with docs? And what are the main questions they've had?

I would say it's really the fact that it's simple blood to get the results really quickly, much faster than tissue-informed approaches and really just, I think, customer service that we have, the quality of the team, the strength of our commercial team, I mean there's really very few apologies if any that haven't ordered a test from us. And so really sort of being integrated with their offices and having that unified experience, I think, is another big piece. And then obviously, as we sort of continue to evolve the platform towards smart liquid bias really going to just change the game in terms of what MRD even means, what MRD has to provide to position. So we're very confident in terms of where things are going to market and where we are right now. But yes, we see really no sort of product out there that as the same probe market as we do, especially in the coming quarters as we continue to upgrade the capabilities of the device.

Great. And on the screening side, you guys have been super successful in the past with leading the field for liquid biopsy. What do you think is a mix of PCPs who understand the value of blood screening versus the share that would still benefit from more physician education?

So what we are seeing in the marketplace with Shield LDT right now is, I mean, obviously, for almost everybody, the fact that you can do colorectal cancer screening with blood is it new concept, but what they are very well aware of, and in fact, is helping the brand and acceptance of this offering is how unpleasant and inconvenience other modalities are? And again, like we are just promoting this test for onscreen patient population or have not done any kind of screenings or haven't been compliant to other solutions. And these doctors know those patients. They know their patients that they have ordered other modalities that they did not complete the test. So that is on the top of the mind. Completion is not there. unpleasant experience is there, and that's really helping the brand in terms of acceptance of this new modality.

Our next question comes from Mark Massaro with BTIG.

This is [indiscernible] for Mark. I was wondering when TissueNext and Guardant Response will start to become more material to volumes. Is reimbursement a key gatekeeping item there? Or is it more about marketing and maybe some additional data development. So any color you can share there.

Mike mentioned that especially the growing year-over-year. It's been a very good contributor to our business. I think approaching over 200 million covered lives. We obviously have Medicare coverage there. very good franchise for strong growth. I think very smartly growing ASPs and it's something that I think is going to be a big driver for us here already becoming business and response, we just received Medicare coverage there a few months ago, and that's also going to be a very strong component [indiscernible] both aspects of our portfolio.

Okay. just take in a little bit prior question on screening. So I know you've conducted your own PPP survey work. We recently commissioned a survey that showed about 3 to the primary care are looking to order a simple blood test, and over half of docs want to order for all or most of their patients. So I'm just curious if you think our data is in a similar ballpark to our thinking around order and interest for yield. Thanks.

I heard you right, like 3/4 of the doctors are interested are very at like of course, not even opted 50% of their patient population. So I think in general, it's in line with what we are experiencing in our survey shows. I think the fact that, again, still are of these patients who are unscreened in the field and also the whole kind of a patient like $120 million. And then the fact that, again, this unpleasant experience and lack of completion is unknown. Future of this market for the PCPs, like these kind of numbers make sense. I'm not surprised with your surveys.

Our next question comes Dan Leonard with Credit Suisse.

A question for you, Helmy. You mentioned the EMR integration in your prepared remarks and that's underway. Possibly you can quantify the volume lift you're seeing at accounts that are -- that you've initially integrated and how you'd frame the benefit from broader integration?

Yes. I mean I think that historically, rule of thumb is you get a sort of 50% to 100% volume lift that it comes when integration happens, and we're seeing that really play out in a number of accounts that we've integrated with. So yes, we're hopeful that as we continue to make progress there, it will be a strong growth driver is just so on of friction they have to go into another portal or sell out of paper here best acquisition form or EDS. And so being able to just be in an account system order the test from that same system that they're using for everything else is each part of removing friction, and that's a lot of what we're doing in the coming quarters and years is really building up that customer experience that it really is a seamless as possible to [indiscernible].

Understood. And then for my follow-up, Helmy, could you elaborate further on the import of Galaxy I don't recall that being a primary point in your talk track prior.

Yes. It's sort of got kicked off with our partnership with Lunit. They're a leader in AI, power digital pathology to really thinking about sort of the spatial genomics and special biomarker analysis space and using AI to sort of read those images. And the first application that we launched was PD-L1 -- using AI to read that. And so it's pretty powerful, even though it's a relatively straightforward application, being able to find 20% of patients that might have been negative with manual it's positive for PD-L1 as a very important therapeutic implication. So that's really resonating with a lot of physicians helping to drive our growth in tissue, but it's just the beginning in terms of what's going to be possible as we sort of tie that in to our other tissue testing on the liquid side. So stay tuned.

Our next question comes from Andrew Brackmann with William Blair.

Maybe a couple for me. First, on the upcoming NCIE on readout, can you maybe just sort of level set us on your performance expectations there? Just sort of what constitutes success? And then as a follow-up on Steel CRC, I know it's been asked in the past, but any update to your expectation on whether that goes to an advisory panel or not? Just sort of remind us on how you're thinking about that potential?

Yes. So for the long, actually, we've shown a bunch of case control studies. This entry is going to be actually the first data that even we are going to see, which is a good indication of the performance of our testing screening relevant patient population, really in a mini screening kind of study. So we are waiting to see actually what that data is going to show. In terms of the bar, I mean when you look at this space of mine cancer, that the 15 million people at high risk, as I mentioned in the prepared remarks, they have the adherence rate of less than 15%. Now that we are doing this study even we are seeing really the real world standard of care that even people are getting diagnosed with some relatively high-risk nodules, but again, just due to risk factor associated with biopsy, that biopsy is not getting done, that's sometimes getting delayed till another imaging confirm still that even at that large iris modules contain to grow. When you look at the reality of standard of care, it gives us a lot of excitement about the opportunity that blood faced screening and put on the table. If I got your second part of the question, right, about the ad an advisory for SHIELD CRC, we haven't heard from agency that they want to call any an advisory Board so far. So probably if they like to do that, we should have cared already, but we'll see like United agents choice of what they want to do. And -- but so far, we haven't got any indication at that.

The next question comes from Sung Ji Nam with Scotiabank.

Just a couple of quick ones for me or Ali. Maybe with the remind me again whether the clip peer-reviewed publication, is that an important milestone in terms of receiving the FDA approval?

FDA approval, no. Like FDA independently, they are looking at all the data and the details of data in their own hand, so not that period publication. Less it's important for us for USPS review cycle reps. They do data reviews by a majority of cases when the evidence is published in care review ship that box and we are on track. We've done our part and we will see, but we should be able to have that [indiscernible].

Got it. And then for lung cancer screening, you talked about realized it's slightly 15% screening. Is that largely driven by the primary care market today. Just kind of curious what the educational process might entail with a new modality of testing and whether you might need to involve the pulmonologist?

Still, we are kind of learning about a bunch of details of that market as we speak. But at a high level, just modality of screening that needs significant patient commitment and follow through. The multiround of imaging, biopsies, still a large fraction of biopsies would not indicate patients as cancer adverse events or ship we build biopsy. He's a journey, which is very hectic long and it's a lot of commitment. So in fact, we are not very surprised that the adherence rate is much lower than CRC. But we are continuing to learn more details about the market dynamics.

Our next question comes from [indiscernible] with UBS.

Great. I just wanted to circle back on response. I know, obviously, kind of one of the assays. But I think last quarter, you had kind of indicated maybe like a low single-digit contribution revenue contribute what to think about. And I was wondering, I know clinical volume trends have just been doing pretty well if that was the right way to think about this assay still. And just with another quarter kind of under your belt, if you had any clinician feedback, just given that maybe other assays kind of work a little differently in the treatment monitoring space and what you're hearing there. And then a follow-up.

Yes. Makis, I'll take the financial piece. I think, yes, maybe on the last earnings call, when asked about what contribution will respond deliver now this year because we received Medicare reimbursement. Yes, it's very early days since Medicare reimbursement. And I think we mentioned you had very low single-digit million revenue that would come from response. And so yes, that's still the case. I think on the second part of the question.

Yes, I think the view of it is that right now, the sort of leading product and therapy selection, liquid biopsy with Guardant360. It's the fact that they work in conjunction with 1 another is a huge advantage that we have and really works in a pretty straightforward fashion in terms of nothing to over monetatively. So it's Yes. No, it's a product that I think resonates well, one that we're continuing to promote much more aggressively now that we have reimbursement behind those, the Medicare side. We think it should be a very important growth driver coming years.

Great. And then just one last one on the EMR integration. I think you -- on a prior question, you cited some pretty big increase in utilization from oncologists ordering when EMR integration happens. And obviously, you -- I think you mentioned integration with 2/3 of oncology practices just finished. So I was wondering if that happened in this quarter. So to kind of think of 2Q is like that kind of happening or if you could just provide some context around kind of that increase in ordering and kind of how that happens or some kind of time line that 100% figure, would be great to kind of dig into that a little bit more.

Just to be clear, we're just starting the integration. We've done a lot of the work in terms of being able to integrate with those vendors that comprise about 2/3 of the market, but there's still work to do on the account side where we have to turn them on one by one, many of them. So we're in the early innings of that. We're very pleased with initial progress and a handful of accounts that we've integrated with. But it's a multiyear journey [indiscernible].

Our final question today comes from [indiscernible] with JPMorgan.

Great. This is Casey, we're doing on for Rachel and squeezing it then. So I guess just two quick ones for you. On the CDx side, can you talk about what's the next pipeline in terms of maybe other indications or areas you're targeting for approval and time lines around some of those? And when you'd expect you'd expect similar volume ramps to I think last quarter, you said breast volume picked up 40% right after that approval. And then my second question is just on the biopharma business. I think last quarter, you talked about plans to expand into China? Is that still on the table this year, the companies that we've heard from so far that have been reporting, it flagged material weakness in China. So table this year and thoughts around that.

Yes, I mean we have a list at CDxs that were either negotiations where they have signed on a bunch of other ESR1, but other indications as well. And I think that's the opportunity ahead of us in terms of being able to partner with new classes of therapeutics biomarkers and other indications. We see hopefully a similar volume uplift in other indications in the future. In terms of China, we're starting at zero right now. There's a to upside at this point. But yes, we're very pleased with the progress we've been making strong partnership with Adicon over there. We should be up and running by end of this year, and there's a very strong pipeline in terms of biopharma partners that want to be able to sample in China. There's a vacuum right now in terms of sort of global companies that have the scale that we do that can operate in we see maybe that weakness that maybe others are facing there is a spring for us, and we are moving very nicely in terms of progress there.

We have no further questions. So I'll turn the call back to the management team for any closing remarks.

Well, thank you.

Thank you, everyone, for joining us today. This concludes our call, and you may now disconnect your lines.