OraSure Technologies, Inc. (OSUR) Earnings Call Transcript & Summary

Good morning. This is Dan Brennan. I cover Diagnostics Tools and Pharma Services for UBS. And this is day 3 of the conference. Hopefully, you're enjoying it on the virtual conference, that is. Really pleased to be joined with me here on the virtual stage with the senior executive team from OraSure Technologies. With me on the phone is Steve Tang, President and CEO; and Roberto Cuca. Roberto, if I mispronounce your last name, I apologize, the Chief Financial Officer. I have a series of questions to go through, but please feel free to log into the webcast and send questions to me that way, and I'll try to get to those. And I think Steve and Roberto are going to go through a bit of a prepared presentation, which will direct you to the right spot. But -- with that, let me turn it over to them and say, again, welcome, guys.

Dan, thank you. On behalf of OraSure Technologies, Roberto and I are delighted to be here. And thanks for having us at the UBS Healthcare conference. I'm going to be referring to a 5 page deck, which hopefully, the audience has access and availability to right now. So just beginning with the title slide, #1, I'll give a brief overview of OraSure Technologies, and then happy to discuss more with Dan. Page 2 is our safe harbor statement. So please remember that our view of the future contains uncertainty and is subject to this forward-looking disclaimer. #3, OraSure and its subsidiaries are pioneering new paths to help in wellness on a global scale. Our innovative sampling tools, services and diagnostics unlock access to accurate essential information that advances global health and well-being. Our products and services help people understand what's in us, what's on us and what's around us. Page 4. They include molecular sampling kits for the genome and microbiome, cutting-edge technology to analyze the microbiome and rapid tests for infectious disease and substance abuse. Together with our subsidiaries listed here, we offer differentiated products with competitive profiles in attractive markets. Key to our future is our robust balance sheet. We have a strong cash position with $176 million on our balance sheet at the end of the first quarter and no debt. This facilitates our active business development program and enables us to weather the type of uncertainties presented by the COVID-19 pandemic, while still pursuing our innovation growth strategy. Page 5. I'm proud that OraSure is bringing its expertise with infectious disease diagnostics, sample collection and oral fluids to the battle against COVID-19. On the testing front, we are developing a pan-SARS-coronavirus antigen rapid in-home self-test that uses oral fluid samples and a coronavirus antibody, ELISA test for the detection of human anti-SARS-CoV-2 antibodies and oral fluid specimens. Our DNA Genotek subsidiary is working with laboratories and researchers to demonstrate the effectiveness of its sample collection technologies for coronavirus testing. We've been able to response how quickly to COVID-19 because we have proven, experienced developing tests, working with regulators like FDA, to get them approved and scaling up for global markets. We're fortunate to be extremely well positioned based on all those experiences. And with that, Dan, we're happy to take your questions and further discuss OraSure.

Terrific. Thank you. That was really helpful, brief introduction. Maybe I'll kick in with just a high level, if you don't mind. Since you took over as CEO, and Roberto you were CFO, the company has certainly taken on a new look. I mean a lot of the core assets, obviously, still in place, but you've done some acquisitions. I mean I think, there's been an emphasis on certain areas, maybe deemphasis on others. Maybe give us a little kind of view, if you will, about the strategy that you've deployed thus far and in terms of whether there is more M&A to come or if there is more repositioning, how do we think about the strategy going forward? I know you just gave us the snapshot, but I'm just wondering, if you can kind of dive back to where we were and where we are today.

Of course. You're right. There's a lot that's changed in the past 2 years since I became [ CEO ] and Roberto became CFO, in particular, over the past few months, since COVID-19. Our core commitments to improve global health and to implement our innovation growth strategy remain very strong. Outside of our work with COVID-19 that I just covered, we'll continue to expand in the global markets with our OraQuick HIV Self-Test. We see tremendous growth potential in new products and services focused on the microbiome and multiomics areas. And for those of you who are not familiar with those emerging areas, the microbiome refers to the trillions of bacteria in other microbiomes or microorganisms, excuse me, that live in or on our bodies. Unlike human DNA, which is stable, the microbiome changes frequently throughout life and scientists are studying how the microbiome influences human health in diseases like colitis, diabetes and cancer. Multiomics cast a new light on all questions that are predicting, diagnosing, treating and curing diseases and other conditions, such as diabetes and cancer, by looking at multiple omes, such as the genome, the microbiome, simultaneously. Our ability to provide customers with both genomic and microbiome products and services is an important foundation for OraSure to become a leading source of multiomics tools and analytics. Ultimately, we envision a company that drives access to multiple layers of information and data to understand health, wellness and disease states. To optimize our performance, we continue to invest in manufacturing capacity and improvement of production efficiency across our businesses. And as you mentioned, 1 of the key drivers of our future growth potential is our solid financial position. As I mentioned, we have approximately $176 million on our balance sheet at the end of the first quarter and no debt. And so active acquisition through our business development program remains key to our success.

And how do we think about maybe building on that and building on your side overview. How do we think about -- this is the ex COVID, obviously, because there's some real opportunities and obviously facing some pretty significant short-term headwinds. How do you think about what the growth profile is now of OraSure? Maybe if you want to give us a flavor for the infectious disease business versus the molecular collection business? And how does that roll together to kind of into a total growth rate for the company?

Roberto, do you like to take that?

Sure. We'll do. Thanks, Dan. So as we've been describing, even before the COVID-19 epidemic, our goal is to grow at double digits across our franchises, both through organic growth and acquisition. For 2020, excluding COVID-19, we've been expecting high-teens growth for our global HIV franchise. Strong growth from global HCV, stability in our risk assessment testing business ahead of seeking regulatory approval of a next-generation product next year in 2021. And then in the molecular collection side of the business, we've been expecting triple-digit growth from the microbiome services business in 2020. And then outside of the largest customer and the royalty payer in our genomics business, we've been expecting double-digit growth from molecular collection products. One of the pieces of expectations that we described in our fourth quarter call was that, our largest customer, we had renegotiated their minimum contract purchases with them. And we expect them to be buying at that minimum this year, which is about half of what they purchased last year. So overall, excluding COVID-19, continued expectations for strong growth in both sides of the business with infectious disease having a standout year, this year with the HIV business and molecular collections showing some visibility, despite some disruptions that we experienced in 2019.

Great. And then more on like the COVID tactical kind of headwind issue. Maybe just speak to in terms of what kind of color you've given about customer impact as of the 1Q call? And has that changed at all in terms of customer's ability to be actually doing business? So maybe just walking through, what was kind of quantified then? And kind of how has that evolved, as we sit here now on May 20?

Sure. Dan, it's an interesting landscape with COVID-19. So let me share some thoughts on that. COVID-19 has had a mix impact on our business. But it's important to note that, any negative impact from COVID-19 in the first quarter was largely offset by additional product uptake in response to the pandemic. COVID-19 impacts on our first quarter infectious disease business was muted. The international infectious disease business was not impacted. Some parts of our domestic business began to see some impact in March. However, that was offset by strength in our in-home testing business. That being said, we're seeing a more fulsome impact on our domestic business, starting in the second quarter, and we expect that will continue to the remaining quarters of 2020, as the professional HIV and HCV businesses experienced delays or cancellation of testing programs. We do expect those to come back after the pandemic, I should emphasize. We expect our international business to further stabilize as countries are beginning to open up to our HIV Self-Test business as it plays an important role during the COVID-19 crisis. Sales of our In-Home HIV Test are rising as public health HIV testing programs in the U.S. are increasingly using our over-the-counter product as they adjust testing strategies in response to the pandemic. We're also seeing increased sales of our existing molecular saliva collection kits and oral swabs, as some customers moved from blood to saliva collection, due to difficulties collecting blood samples under the current circumstances. On the molecular side, revenues in our molecular sales to the academic market were impacted in the first quarter as molecular research programs have been delayed or terminated because of COVID-19. In our services business, revenue were also impacted as customers could have access samples, housing academic or medical facilities that was -- were to be sent to our microbiome services lab for processing. We see these trends continuing with likely bigger impact in future quarters. But importantly, we anticipate that these revenues will return to more normal levels, once COVID-19 resolves. Assuming we're successful in developing in our development and -- regulatory efforts, we anticipate that the new coronavirus testing products that we're working on and the expanded use of some existing molecular collections products, could make significant contributions later this year, especially as the need for COVID-19 testing increases. As I mentioned in the outset, there's a potential for our work in COVID-19 to continue to offset some of the downturn in revenues in the other business areas. So overall, we are net positive on the effect of COVID-19, in spite of some of the headwinds. There are many tailwinds that we think we can tap into.

Great. Maybe just 1 quick follow-up there, and then what's to think about your opportunities with the 2 tests that you outlined. And so there's a lot of excitement over that. But just on the academic labs, I mean, what are you -- what's kind of your base assumption there in terms of how those lab, how those customers come back online?

Yes, sure. So sales to our academic customers, as I said, were negatively impacted by the pandemic. That's because those customers experienced delays in research activities, which are not associated with COVID-19 testing. That affected sales of our genomics, microbiome and urine collection kits in the academic market. We also saw some delays in lab services as some of the academic customers had limited access, as I mentioned, to the microbiome samples due to the pandemic restrictions. So looking ahead, we see meaningful impact to our academic revenues in the second quarter, with most research activities not associated with the response to COVID-19 testings continuing to be delayed or on hold. But we remain confident that both our genomics business and the disease risk management submarket and the microbiome market will return to double-digit annual growth rates after the pandemic.

Okay. So then maybe staying on the COVID for a bit. Obviously, 2 exciting opportunities with some arguably differentiated offerings, although certainly, a lot of global companies in this space going after. Maybe just starting with, I guess, the antigen rapid in-home self-test, kind of walk us through a little bit about what you think the opportunity for that test is? And how you think it will be positioned? And then we can get into a little bit on the timing for it.

Certainly. So there's no question that there's a need for more overall testing capacity, whether those tests are PCR-based or, as you mentioned, antigen based. We currently run on the diagnostics side, 10 million tests since the COVID crisis started in the U.S., but most, like how the experts say, we should be in a position to process millions of tests per day to identifying those are infectious. So we look at that as an opportunity for our base platform, the OraQuick rapid test platform, which in itself is fairly disruptive to the current testing environment. And we believe that will help fill a gap and help open the country safely and quickly. So that's the area that our rapid antigen in-home self-test can play. I want to emphasize, Dan, we have great experience in meeting the needs of those types of demands, as we shared in our earnings call a couple of weeks ago. In the first quarter 2020, we shipped 2 million HIV Self-Tests. And in the fourth quarter of 2019, we shared that we shipped 2.9 million HIV Self-Test. That's just an indication scale that we operate in. It's not an indication that we would take volume from HIV Self-Test. We hope, we don't have to do that. Beyond that, in our internal manufacturing capacity, we're exploring a number of options, including public, private firm product partnerships, contract manufacturing and out-licensing the technology to meet what we believe to be high-demand for large scale. And by the way, I should mention, unrelated to the antigen In-Home Self-Test under development. The same goes for our molecular collection sample kits, which we project could be in high demand because they're used as alternatives to the nasopharyngeal and oropharyngeal swabs that are currently used and have experienced at some level, some supply chain issues. So overall, we're looking at what could be massive increases in capacity across the corporation, certainly, in preparation for the launch of the antigen in-home self-test in September. And then, on an ongoing basis, the molecular sampling kits, which feed the PCR tests.

Got it. And in terms of -- when we think about that this test, what would you expect to be the accuracy using saliva? We've heard mixed things, I've read a couple of papers saying that saliva could be more accurate. I spoke to some other experts who think saliva is less accurate like, is there any trade-off, use saliva for this particular virus?

Well, of course, we've been in the saliva game virtually for our entire corporate existence. And originally, we had to prove equivalency between the use of blood versus the use of saliva and oral fluids for HIV testing. And I think we were able to rise to that challenge and prove that they were -- that saliva and oral fluids provided tremendous accuracy in our OraQuick HIV platform. We have always been a company that is focused on quality and accuracy. So high specificity and high sensitivity have been part of our overall brand. And while we don't have the numbers yet developed for the antigen in-home self-test, we believe that we can get a highly sensitive and highly specific test in the marketplace that's not available today. The issue with, I think, the accuracy with different types of analyte has a lot to do with how it sampled initially. So there is variability in nasopharyngeal and oropharyngeal swabs. We've seen that. There are variabilities in some of the other nasal swabs that don't go quite as deep and enable cavity. And I think those are all the things that need to be accounted for. The benefits of saliva and oral fluids is that, they're easy to collect. They are easily done by self collection, reliably by self collection as we've proven from our work in the genomic area. So we are very optimistic of our chances to again, demonstrate that saliva and oral fluids are worthy analytes for COVID-19.

Got it. And what will be the turnaround time for tests like this?

We believe it will be similar to our OraQuick HIV platform and our OraQuick Ebola platform, which we launched in 2015, '16. And that is, as the individual can get a result in under an hour, for those 2 tests that I mentioned, it's closer to 30 minutes. So it's a self-test like -- for which an individual can determine their results in under an hour.

And -- I was just taking off from mute. And in terms of -- you mentioned working with, I believe, public and private partnership. Is this -- maybe can you speak to a little bit about planned capacity? You talked about the capacity you did in Q1 and kind of Q4 on HIV side. But related to that, you said you're looking to real significant capacity. So assuming this goes as planned and you're ready to go by September, what kind of capacity would you have in place? And are you building out capacity now, given you want to accommodate your existing business? And how does this public, private partnership come into play?

Well, I think that there are aspects of the public, private partnership, which have proven that we can develop scale for testing, for other pandemics, like the global eradication of HIV. And so the players who are addressing the global pandemic due to COVID-19 have all proven together that they can work closely together for HIV. So they maybe the same players there. In terms of capacity, this is a unique situation where we are doing product development and scale up simultaneously, in the hopes that we will build capacity for the product launch, which is targeted for Emergency Use Authorization from the FDA in the September timeframe. So we haven't disclosed yet the specific internal capacity that we're looking at. But we hope that to be significant, and we'll disclose that, I think, at the appropriate time. But we're also looking at the outside. Contract manufacturers, manufacturing partnerships and possibly, even licensing our technology for massive scale up. So there are a lot of discussions and plans and -- that going on as we speak right now to address what we believe there will be significant demand for that product.

And any sense on how you would think about the market to play out? Like, there's a lot of -- obviously, tremendous convenience and -- with this approach as opposed to having or rely upon going to a hospital or even as the rapid test rollout, even a mini clinic. Is there any predicates, whether it be for HIV or for flu and things like that, where you could speak to, how significant this potential opportunity would be in the grand scheme of the overall testing? I don't know if you have any kind of insight on that, that you could share?

Sure, Dan. So as a reminder, our OraSure, OraQuick HIV In-Home Test is the only infectious disease test that's FDA-approved, to be sold in the U.S. without a prescription. So you can buy it at retail pharmacies, you can buy it online. In our aiming point for the COVID-19 antigen in-home self-test is a test that could be widely available without prescription, which is not to say that it won't be used by medical professionals, I believe it will be as well. But the concept here is to have a test that can be as widely available as possible to reach as many people as quickly as possible. And so that's why our aiming point is this in-home self-test concept. I think if you look at what will be required to reopen states and large parts of the countries, to large parts of the world, the requirement will be to be able to test a lot of people quickly, determine whether they are currently infectious. And that is whether or not they are symptomatic or nonsymptomatic. And I think, a lot of the pandemic has been spread because of asymptomatic transmission. So how do you do that? Well, it would be great, if you could have a way that didn't rely on instrumentation and the waiting time for lab tests to be able to test people even before they enter your facility, whether your facility is a factory or an office place, some place where the employer needs to ensure the safety and wellbeing of those coming in and out of the building, whether it's schools, K through 12th, community colleges, universities, anywhere, where they're large gatherings of people. And then there's a public health component as well, to be able to link this with contact tracing and to -- for people in the public arena to be able to determine, whether there are new outbreaks or second wave that's been projected, et cetera. All of these things will be necessary, even with what we hope are quick developments on the vaccine side. So I think the way we see the market opportunities is that hopefully, a vaccine will be with us sooner rather than later. But even so, the ability to scale up the vaccine for large portions of the population will still, in the interim, require lots of testing. And we believe that this antigen in-home self-test as BARDA said when they awarded us the contract last month, could be a game changer. So we fortunately have experience along all those channels, a self-test that can be purchased by the individual at retail pharmacies and online, all the way through public health, hospitals, physicians and global public health, where we sell our HIV Self-Test to Ministries of Health and individual countries, particularly low and middle-income countries. And so I think few companies have the experience that OraSure has in rapidly deploying a test for widespread use in a pandemic. And so those are the skills and capabilities we bring to this COVID-19 antigen in-home self-test opportunity.

That was really helpful. Maybe just 1 follow-up. I was reading something online about another saliva approach. Would there be an expectation that whether with, say, like a negative test that there needs to be a confirmatory kind of real-time PCR test on? Or would you expect your test to be just kind of want and done, whether it's positive or negative?

Well, ultimately, we would hope that an antigen test would be highly specific and highly sensitive, so that you didn't need a confirmation test, but that does remain a possibility. So it will all be determined, I think, by the specificity and sensitivity of our test. And once we announced that, I think we'll be able to better speak to what the testing regimes could do.

Got it. But there's certainly a reasonable expectation or potential that, it's given what you just said in terms of the history working with your other tests that this test could be kind of absolute in terms of its measurement, you're not going to need to confirm that, certainly a reasonable, plausible outcome.

Yes. We have a history of setting the bar high in terms of quality, performance and accuracy. So that's the tradition we hope to bring to this antigen in-home self-test.

Got it. And September is -- I mean, is that -- is there a cushion in September? Is there a probability or potentially you can come out -- I mean, I'm sure you'd love to be there tomorrow, so it's not that far away, but it still is 4 months away. I'm just wondering, if there's a potential for that to come faster?

Right now, we're on schedule for September, and we have not made any announcement that changes that. But if that happens, we certainly will let everyone know. But right now, it is looking like September.

Got it. And just -- and then maybe 1 more, back to the capacity issue. So while you said that when you have information, is there any way at least to give us any flavor on capacity? I mean could we look at what you're doing with your HIV Self-Test and say that's like a reasonable starting point, I mean, you even pick yourself, and I don't know if all understood that the market -- so far, only a small amount of testing has been done, it's ramping, but there could just be a significant amount more of testing that needs to get done. So are there -- have you given any color at all or guideposts about kind of a range of outcomes?

We haven't yet, Dan. And at the appropriate time, we certainly can, if provided we have the data. But we're a company that operates in terms of tens of millions of tests per year based on our OraQuick platform. So that's our starting point. I think few companies have that as a starting point to begin to look at planning. But then we're looking at -- the conceivably numbers that are several order magnitude above that as well, which is why the focus not only on our internal capacity, but contract manufacturing and manufacturing partnerships as well.

Got it. And then, just on the ELISA test and, so that you expect -- EUA expected to summer -- initial product sales, like how do you characterize the opportunity -- actually, maybe 1 more back on the antigen test, what would be expect for pricing there?

Yes. We haven't yet announced what pricing will be, but that process, I think, is something we have experienced with, of course, the number of channels I mentioned before. Everything from the over-the-counter test, to global public health. So I think our experience with HIV across the world in the U.S. and abroad will be very instructive. We have a unique set of experiences on pricing because, as I said, we have both professional and over-the-counter products sold in the U.S. as well as products designed for global public health as a self-test. So we're going to put all that together into our pricing model, but we're not ready to announce that as yet.

Got it. Okay. Okay. Fine. And then in terms of the ELISA test...

Yes.

You created volume testing...

Yes. So the oral fluid based ELISA tests, which we have targeted for debut with an EUA in early summer is based on our platform for oral fluid collection and microtiter plate, rapid throughput lab tests. That's the same platform we use for our substance abuse testing business. And in fact, the demand for this COVID-19 antibody test has really come from those customers. So this would be, I believe, the first oral fluid based antibody test that would debut in the marketplace. And the collection devices we use for that are called our OraSure Collection Device. And we believe it has some unique characteristics to be able to stabilize antibodies in the oral fluid for analysis. So that in itself would be a breakthrough. And then the microtiter plate ELISA test that we're working on, would be designed to show the spectrum of immunity. We're looking at not only IgM and IgA, but excuse me, not only IgM and IgG as the fractions for the antibodies, but also IgA, and there's been some recent scientific information about the use of mucosal IgA in determining early immunity towards COVID-19. So that's an area that links well with our oral fluid collection device capabilities. So this could also be a breakthrough type of assay in the antibody area.

Got it. And that, in terms of -- there's a lot more discrepancy or uncertainty, I think on just the level of performance maybe of serology tests and you just alluded to with the different antibodies that are being targeted, and then, kind of where, what antigen is being targeted, I guess. So can you speak to -- so you're saying expected initial product sales in the EUA expected December. So, I'm sorry, your filing or you expect the approval by this summer? Sorry about that, A. And then B, any color about when you're competing with the Roche and the Beckman's, these extremely large companies running big trials, how would you expect that the performance of your test is compared to some of these bigger lab-based players?

So we are targeting early summer for both approval and initial sales. So that's 1 answer to your questions. We do not yet know what the performance profile will be for our product, but we are targeting high sensitivity and high specificity. I think a lot of the issues with serology and antibody testing revolves more around rapid tests than do about the lab-based test. The microtiter plate tests tend to be highly accurate. How they will compare to other tests in the marketplace remains to be seen. But I would, again, emphasize that the analyte for our antibody test is oral fluids, which I think is an area that's not being actively pursued by a lot of the big players right now. If those players are interested in oral fluids rather than blood as the analyte, our OraSure Collection Device, I think, could be an easy drop in solution for them. And in fact, we're investigating capacity increases for that product line as well in response to what might be high demand for that antibody test and other antibody tests as well.

This test as well would be shipped directly? I mean how would consumers get the serology test?

Right. So this would be a lab-based test. And so they would have to have the lab-based test ordered right now by a physician.

Got it. And do you have a big presence in labs today? Like, what's your kind of installed base on this microtiter? I'm just not familiar with. I always view OraSure to be like direct-to-consumer largely. So what's your current position with this type of approach?

Yes. We don't talk about it as much as we probably should, but we are 1 of the leaders in substance abuse testing using oral fluids. And so that's the installed base that we look at for these tests. These labs primarily do business for either employers or insurance companies, who are testing individuals to make sure that they don't have traces of drugs of abuse in their system, either when they start their job or whether they're looking to be insured for any particular purpose. And I think we announced in previous quarters that we're pursuing for that segment of our business, additional revenue opportunities because SAMHSA, which is the governing body for drug testing, last year approved the use of oral fluids as well as urine for drugs of abuse. And so, this area of oral fluid testing for drugs of abuse is a pivot point into oral fluid testing for antibodies. And so we have a fairly large presence in that area, even though we're primarily known as you said, as a rapid test on the infectious disease side.

And here, I know like the competitors have announced tens and hundreds of millions of capacity of tests, so which is, absolutely massive, what they've discussed, some of these big, big players up to that much, obviously. Any -- like how significant level of capacity would you be able to achieve, you think, with this?

Well, we are very well aware that antibody testing is -- will be a high throughput business. And so, while we haven't quantified it, we are looking at significantly high numbers to produce the OraSure Collection Device, which could be coupled to any of those tests in addition to ours. So that with other capacity we haven't detailed, but we certainly can and will at the appropriate time.

Right. Okay. So it's not hard for cost, it's not hard to take an existing ELISA instrument from 1 of these big players and switch the matrix from blood to saliva, like that is not a difficult adoption?

Well, that's something that each test manufacturer will have to assess. But it's something that I think that they are -- that they would want to explore quickly. So we are seeing interest in that area.

Got it. Okay. I know we spent the majority of the time. We opened up with your positioning. Obviously, we spent almost the entire time kind of on COVID. We didn't kind of dig in any other expertise. Maybe if I can ask you a question on kind of molecular collections. I mean you talked about your largest customer, which was a real boon for you back in the day, and now it's kind of hopefully normalizing here. But kind of what can you say about the genealogy market now? So it sounds like the volume in 2020 is expected to be half of what it was in 2019 based on that 1 customer. Just maybe speak about that customer and then more broadly, that business being kind of ex COVID, if you will?

Certainly. So I think because our molecular collection kits for saliva and oral fluids preserve RNA and DNA so well and remember that these kits were used to preserve DNA at room temperature for several years. So it's that type of stability, which has made it attractive for COVID-19. But beyond COVID-19, the use of these collection kits in the genomics area, we still will be -- believe will be double-digit potential as we focus on what we call the disease risk management part of the market. And that's in contrast to what we call the ancestry -- little ancestry segment of the market, which is simply looking at your genealogy. So in the serious -- more serious medical application areas, which typically provides need -- has a need for a medical professional to intervene, either a doctor or a genetic counselor, these are the more serious parts of medical applications, which look at genetic disposition to diseases like cancer. And so our kits have been used by customers in that area, either in specific individual cases or in population studies. So that area, we project to grow beyond the current size of the ancestry market in about 3 to 5 years from now, factoring the delay from the pandemic. So our prospects, I think, on the molecular collection side, plus our microbiome and microbiome services area, makes the molecular part of our business, extremely healthy and resilient after COVID-19.

Great. Well, I think with that, Steve, we're running out of time. Roberto, thanks with the question and thanks for participating in the conference. Really appreciate it. Good luck with, obviously, everything you're doing in particular on the COVID testing. It sounds like it could be really exciting and really impactful. So thanks again for being here.

Thank you, Dan. We appreciate it.

Thank you.

Thanks for having us on the conference.

Okay, take care.

Take care.