Q2 2021 Akoya Biosciences Inc Earnings Call
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Good day, and thank you for standing by.
Welcome to our courtyard Biosciences second quarter 2021, and earnings conference call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask the question. During the session you will need to press star 1 on your telephone.
If you require any further assistance. Please press star zero I would now like to hand, the conference over to your Speaker David Tackler.
Good afternoon, everyone. Thank you for participating via conference call.
On the call from the cornea, we have Brian Mcelligott, Chief Executive Officer, and Joe Driscoll Chief Financial Officer earlier today <unk> released financial results for the second quarter ended June 30 of 2021, a copy of the press release is available on the company's website.
Before we begin I'd like to remind you that management will make statements. During this call that include forward looking statements within the meaning of the federal Securities laws, which are made pursuant to the safe Harbor provisions of the private Securities Litigation Reform Act of 1990 Fives and.
Any statements contained in this call that relate to expectations or predictions of future events results or performance are forward looking statements actual results may differ materially from those expressed or implied in the forward looking statements due to a variety of factors for listing description of the risks and uncertainties associated with the coils business. Please refer to the risk factors section of our form S..1 filed with the securities.
And Exchange Commission on April 15, 2021, we urge you to consider these factors and you should be aware that these statements should be considered estimates only and are not a guarantee of future performance. This.
This conference call contains time sensitive information and is accurate only as of the live broadcast today August 10.2021.
<unk> disclaims any intention or obligation, except as required by law to update or revise any financial projections or forward looking statements, whether because of new information future events or otherwise and with that I will turn the call over to Brian.
Thank you David and good afternoon, everyone and thank you for joining <unk> second quarter earnings call.
Joe and I will start with prepared remarks, and then we'll take questions.
I am very excited to discuss our second quarter 2021 performance with you. This morning. This marks our second time reporting results as the public company following the IPO in April of <unk>.
During the quarter, we continued to deliver on our plan to be the spatial biology company and work towards our mission of delivering revolutionary class of new specialty dry biomarkers empowering life sciences, researchers to better understand disease, and helping clinicians improve patient outcomes. We're pleased to report strong second quarter.
The results with reported total revenue of $13.1 million.
Representing growth of 53% compared to the second quarter of 2020. This.
And this is ahead of our expectations of at least 45% growth provided on the last call.
We had a strong quarter of reuse of revenue revenue, indicating our customers are back to work and using the acuity of platforms and the significant way.
Joe will review, our financial performance and details shortly.
As we discussed and the prior call spatial biology solutions enable researchers to map the dispute distribution of cell types and biomarkers across whole tissue samples at single cell resolution.
Ill established technologies like next generation sequencing single cell analysis and flow cytometry destroy the tissue sample why analyzing it acquires of spatial biology platform keeps the tissue sample intact preserving the underlying tissue structure and enabling the tech the detection and measurement of cells and biomarkers within their tissue context.
And the output is a detailed computable map of the tissue sample, enabling much deeper understanding of the underlying biology cellular dynamics and interactions between key biomarkers.
<unk> biology is the next evolution of tissue analysis, and it is happening today across more than 600 decoy instruments already installed at leading academic institutions biopharmaceutical companies and contract research organizations.
<unk> has the largest installed base of any spatial biology platforms and in the industry. This is a true competitive advantage and 1 that we intend to fully leverage.
Most new technologies and the life Sciences market begin and the discovery market with the goal of eventually making their way to the clinic the truly impact patient care, what's unique and powerful about about the spatial biology market and of Korea's codecs and Phenolics platform. Specifically is that we are today simultaneously impacting.
Science across this entire continuum from discovery translational and clinical research.
Price at under $100 and able to integrate with our customer's existing microscopes are codex platform is the industry's most cost effective and complete spatial biology platform from the discovery market.
It is and end to end automated solution that makes ultra high multiplex and spatial biology accessible to all researchers are phenolics platform is designed to sit downstream of codecs, serving the translational and clinical research markets, where sample throughput requirements are and order of magnitude higher for example, or <unk> or from <unk> customers using <unk>.
This platform for clinical trial studies are routinely performing spatial analysis on 30 of more samples per day.
For the optic stands alone and the marketplace delivering unparalleled throughput and is a fully automated of complete end to end spatial biology solution.
With Codexis and optics <unk> is uniquely positioned to capture the full market opportunity for spatial biology to revolutionize not just discovery, but also clinical and translational research and ultimately patient care.
We are encouraged by the continued commercial success of our established on market solutions rapidly growing installed base strong financial performance and accelerating publication rate.
Following the IPO and as discussed on the prior call, we're making investments to build on and maintain our leadership position and the spatial biology market.
These investments include the ongoing and rapid expansion of our commercial organization and the expanded investment and research and development.
And the near future acquirer will deliver new and improved spatial biology solutions, including significant workflow improvements for our new and existing customers.
These new products and capabilities will be enabled by leveraging our full technology suites across codex, if and optics by internally developing new groundbreaking spatial biology solutions and by partnering with industry and academic thought leaders.
Our R&D teams focus is on delivering expanded multiplexing and throughput new applications for single cell whole flat analysis, and the continued advancement of our data analysis and visualization solutions.
The result will be a powerful continuum of products that drive expanded market access and increased system placements and growing platform utilization and reagent pull through.
And the coming months, we will begin to highlight some of these advancements so please stay tuned.
To continue to advance codecs as the most accessible and powerful spatial biology platform on market, we recently announced partnerships with leading microscopy companies, including Zeiss Nikon crest optics and Andrew the.
These partnerships enable robust technical integration of bidding between codecs and our partners microscopes.
And also enables ongoing workflow improvements application expansion and co promotional activities to drive further adoption of codecs.
These partners are also important enablers of our recent and the recently announced imaging innovators networks called the ice square and network.
With the ice squared network of coil is partnering with academic thought leaders to drive innovation and application development on kodak's, keeping us on the leading edge of new spatial biology solutions.
So, let's now pivot to our translational and clinical research efforts as we discussed and optics is the only spatial biology platform capable of meeting the high standards of translational and clinical research studies on the path the true clinical use.
Now this is particularly true and considering the accrued the requirements to support clinical trials. These core requirements include the following first of plateau must be high throughput and automated capable of analyzing 20% to 50 samples per day second the platform must have fully demonstrated reproducibility and robustness and third the.
The platform must deliver single cell resolution across the entire slide single cell whole slide of resolution across the entire tissue is fundamental.
For the Opex is the only plan from on the market that can meet these throughput robustness and sample resolution requirements.
A seminal publication released last months last month, and the journal for immunotherapy of cancer highlights that our phenom fixed platform meets these high performance standards and call. The Mitre study. This publication was was the result of a partnership with Johns Hopkins University Yale early trials Research Institute MD Anderson.
And the Bristol Myers Squibb.
And concluded that the <unk> platform delivers the throughput and analytical robustness needed for clinical trial and eventual clinical use this publication of central and among and accelerating body of peer reviewed publications that are evidence of our growing success and the translational and clinical markets.
And Q2, we also announced the launch of our advanced Biopharma solutions service lab out of our Marlborough facility.
This team is focused on serving our growing clinical trial partnerships with leading biopharmaceutical companies. We are working closely with biopharma companies to implement synoptics and their clinical trials to help them better understand and predict response to their novel therapies.
Our recently announced partnership with Astrazeneca is the signature example of the value of that Phenolics and the advanced Biopharma solutions group delivers.
<unk> immuno oncology Division has partnered with the Korea to leverage the <unk> platform and the services to discover predictive signatures of response to therapy to inform their clinical trial design.
Because of the established throughput and robustness and resolution of and Opex similar partnerships are ongoing with the number of other leading biopharma companies.
A key driver of the continued success of and optics is the discovery and publication of transformative spatial phenotyping signatures.
Standup publication and the June 11 issue of Science featured powerful discoveries from the team at Johns Hopkins University as part of our partnership with the Astral path initiative.
Astro path is a cutting edge interdisciplinary partnership with John Hopkins between their astrophysics Department and their cancer Center with our <unk> platform at the core.
And this paper and the team at Johns Hopkins discover a powerful biomarker signature to predict.
With a high degree of confidence response to immunotherapy and advanced melanoma patients.
Together, we now aim to leverage this and future groundbreaking discoveries with the Astral Pat team to provide even more powerful clinical trial solutions to our share of biopharmaceutical partners.
In addition to the Astro path publication of the accelerating rate of peer review publications on our platform continues.
There were 109 peer reviewed publications on our platform in 2020.
This is in the a 4 fold increase over 2019, and now and the first half of 2021 Theyre already of 138 publications more than all of the last year. That's nearly 250 publications and the last 18 months, our customers are clearly uncovering high valued scientific discoveries.
Through the use of a <unk> platform.
As we've outlined we remain focused on driving revenue growth by investing and the business to expand our commercial infrastructure and accelerate research and development as of June 30, we have approximately 225 employees worldwide a significant increase from the December 31st total of about 170.
We are continuing our aggressive investment to add more talent in all parts of the business and are excited about the prospects ahead.
We recently and we recently announced the appointment of Mr. Scott <unk> and Dell to our board of directors.
<unk> brings 25 years of experience as 1 of the most accomplished executives and the diagnostic industry and a proven track record of transforming innovative technologies into clinical testing solutions.
We are confident that Scott will bring tremendous insights to acquire as we continued to advance the company and.
In summary, we're pleased with our second quarter performance, achieving great progress across a range of important metrics and we look forward to executing on our financial and strategic plans as we move forward through 2021 and beyond and I will now turn the call over to Joe to discuss our financial results Joe.
Thanks, Brian and Hello, everyone.
Brian mentioned earlier total revenue for the second quarter of 2021 was $13.1 million as compared to $8.6 million and the second quarter of 2020, which represents 53% growth. The prior year quarter was impacted by Covid related disruptions at many of our customers.
Product revenue was $10.7 million for the second quarter of 2021 compared to $6.2 million and the prior year quarter.
Services and other revenue totaled $2.4 million and the second quarter of 2021, as compared to $2.4 million and the prior year quarter.
Within product revenue <unk>.
Instrument revenue was $6.3 million and the second quarter of 2021 compared to $4.5 million and the prior year.
Reagent revenue was $4.3 million and the second quarter of 2021 versus 1.5 million and the prior year.
The increased reagent revenue was due to higher instrument count and return to work and labs and greater pull through per instrument than previously experienced.
Our annualized pull through on a year to date basis exceeds $30 per instrument for both the codex and Polaris.
And the Polaris and pull through is in line with our expectations the <unk>.
Codex pull through is significantly higher than our historical performance, which has been and the low $20000 range.
Reagent revenue is expected to be solid and the third quarter, but likely will be below the second quarter due to seasonality.
We monitor instruments sold and the installed base is key performance indicators for our business, which Brian discussed earlier.
To reiterate we had another strong quarter with 31 total instruments sold highlighted by 18 synoptics installations of which the majority of Polaris instruments.
The total installed base is now 618 instruments as of June 32021.
We did close several additional codex units near the end of the quarter, which will ship in Q3.
Additionally, there were some COVID-19 related disruptions and Japan, which resulted in several potential instrument purchases being pushed out of the second quarter.
Gross profit was $8.1 million and the second quarter of 2021 compared to $5.3 million and the prior year.
This resulted in gross profit margin of 62, 2% and increase from the 61, 6% and the prior year period.
The increase in gross margin was primarily driven by the positive mix of reagent revenue in the quarter.
Total operating expenses were $14.5 million and the second quarter of 2021, as compared to $9.1 million and the prior year quarter.
In line with our strategic plan and the increase was part of our plan to significantly invest in the business following our IPO.
We are aggressively hiring and all aspects of the business, including increasing our commercial spend to continue to drive market share growth.
And looking forward, we project Opex should be at least $16.5 million and the third quarter.
Net loss for the second quarter of 2021 was $5.6 million compared to net loss of $4.6 million and the second quarter of 2020 due to the increase the investment and operating expenses.
Our year to date revenue is $25.3 million, a 29% increase over the first 6 months of 2020.
This puts us right on track to achieve our targets for fiscal 2021.
We have $135.5 million of cash as of June 32021, common shares outstanding of $37.1 million as of June 30.
As highlighted earlier, we remain confident and our ability to deliver strong growth in 2021 and are anticipating third quarter revenue growth of approximately 28% to 30% over the prior year quarter.
We are refining our guidance for the full year 2021 from at least $52 million to between $52.5 million and $53 million.
And the second quarter results exceeded our guidance and we are focused on delivering consistently strong results each quarter.
Now I'll turn it back over to Brian.
Thank you Joe.
In summary, we remain excited about the impact of spatial biology on the discovery translational and clinical research markets and continue to see robust adoption and our Kodak and fun optics platforms. We're.
And we're pleased to report strong results and our second quarter as the public company.
We are thankful for the hard work of our fellow dedicated the clients and for the support of our customers and shareholders.
The <unk> remains well positioned for growth and we're excited about the opportunities ahead at this point, we will open up the call for questions operator.
Thank you and I'm, Sorry reminder, to ask a question simply press star 1 on your telephone to withdraw your question Christa.
And our hash key again, if you have a question simply press star 1.
1 moment, while we compile the Q&A roster.
Our first question is from Tejas Savant with Morgan Stanley.
Hey, guys. Thanks for taking the questions.
This is edmund on potatoes.
Just to just to start off I wanted a clarification the.
Quarter over quarter step down and on instrument placements was driven by the Covid headwinds that we've seen in Japan and is that correct.
And.
Yes.
Yes versus Q1 Youre talking about.
Yes, yes. So we closed we closed the couple of additional codecs units right near the end of the quarter that are going to ship in Q3, and then there are several more units and basically in Japan that got pushed out of.
Q2, due to COVID-19 related issues.
Got it so I guess on that note aside.
Aside from Japan over the last couple of weeks have you seen any pockets of weakness develops and certain regions zone.
The resurgence of Covid starts moving.
And what do you see in terms of like yes.
And I appreciate the question.
Oh I'm sorry go ahead.
Okay, I was asking what youre seeing in terms of ordering trends of our instruments and reagents.
Yes. It is.
Pretty dynamic as you've likely heard.
And the ongoing challenges and Asia Pacific continue.
Customer access and areas like UK has been and ongoing problem and in the U S again, it's pretty dynamic.
In terms of the access to customers.
This point, though as we look forward and we're still confident that the.
And the opportunities on the instruments and reagent side or in line with our expectations, but it is pretty volatile.
Got it that's very helpful and then turning into turning to you the ice squared and network.
On your vice collaboration can you provide any incremental updates the I'm, assuming there's not much you can say in terms of the technical products side, but in terms of mapping of the co marketing agreement have you guys made any progress and then for the 3 new collaborations and I mentioned.
Would they be similar types of collaboration.
The all of humans.
Yes, maybe in reverse order of the all floor arrangements are structurally similar.
And where the benefits really are ensuring tight technical integration just to continue to streamline the user experience and adopt new workflow was increase acquisition speed.
Dry per depot resolutions of structurally the same.
Both technically and the co marketing side I would say to your first question of the co marketing activities are really just beginning to 2.
To be put in place now so.
So nothing more detailed the offer on size or any of the other 3 specifically at this point.
Got it and then 1 final 1 from me.
In terms of launching advanced Biopharma solutions as the rollout of new strategic clinical research program initiative.
Can you remind us if you highlighted any other projects that might be coming up in this clinical research program initiatives.
So.
So we announced the advanced Biopharma solutions grew.
To reiterate and as part of our partnership with key Biopharma like Astrazeneca to work and the clinical trial space.
In terms of partnerships.
Similar partnership with UCSF.
The San Francisco working on the I spy, 2 trial, which is focused on breast cancer.
The other partnership within the zone optics portfolio that we announced on top of the publications that we that we talked about in the opening remarks.
Got it thank you very much.
Our next question comes from Steven Mah with Piper Sandler.
Hi, guys, congratulations and thanks for taking the questions.
Sure.
Thanks Ian.
Yes, so maybe just to stay on the advanced Biopharma solutions.
I know you are the <unk>.
<unk> lab is undergoing CLIA certification.
To help out of your partners do a clinical trial patient stratification, and you'll get an update on that timing.
And.
And should we expect once you guys get CLIA lab certification and that's going to accelerate the signing of of.
And the new partners.
Yes.
The the timing and Theres, a little bit of reliance on the regulatory bodies, giving the final stamp. So we expect it to likely be within this quarter.
And I think similar to what we have discussed before.
And to your question about kind of the ABS.
Business flow, yes to answer your question, yes, with that CLIA certification of that opens up additional.
Business with existing and new partners for example to contemplate the <unk>.
Use of our services for actual enrollment studies.
Okay, Great that's helpful color.
And then I had a question on the on the publication side. So.
Can you give us a sense of.
And what proportion of those 135, new publications, where we're for translational and clinical study and is versus maybe like discovery work.
Yes, that's the good question I would say that the majority of those are on the <unk> portfolio.
The 135 I would guess the overwhelming majority is spin off of its just because of its longer standing and the market since the launch of and optics to point out at the end of 2018 and with codecs coming out throughout 2019, and those are starting to roll in and within the <unk> portfolio of the overwhelming majority of those.
Our really translational studies.
And like like we talked about earlier on the the Astro Pat Science publication.
Some of these publications are really foundational and establishing the analytical robustness now and 1 could argue that those of the translational, but those are really the predicate platform requirements that you need.
To establish the robustness as we talked about earlier for a clinical study so some of them of our translational and even within some of those are really on the platform assessments like the Mitre study, we talked about Stephen.
Yes.
No that's helpful and maybe just.
Yes, I mean I appreciate that a lot of the publication of the were an optics and the translation.
Of your square that away with the codex pull through being being higher than.
And synoptics and the quarter.
It's just 1 of the public publications, usually take a year and a half to come out.
So of Kodak's kind of launching throughout 2019, the wet blanket for Covid 2020, we're starting to see a lot more codecs publications.
And this probably I'm going to say of the 135 and this is the complete estimate is probably 20 or so are on the codex front and the book.
And the pull through is happening.
I think just because people are really starting to get value.
And accelerate the use of the platform.
We just didn't have a lot of visibility Steven.
The.
Of the pull through throughout 2020, just because of the such a unique year I don't know Joe if you want to add any color to that.
Yes, I think.
The codex is really just starting to hit its stride now so we launched in 2019 people were getting used to using it in 2019.
And then 2020 came in and I was kind of a strange year and I think people are now back in their labs.
And and really seeing the value of the of the codex instruments. So I think it's really just starting to hit its stride right now.
Okay, No that's great that's great color and then.
Joe maybe.
My question for you and and also Brian.
As you guys say youre going to continue to.
And that's and the business aggressively hiring on the sales and marketing side.
Do you see any higher spend and need any specific geographies or is it sort of balanced across the <unk>.
Around the globe.
Thank you.
Yes, I think generally it's balanced I think we are having an opportunity to get some really.
Stellar talent, just because of how far we advanced I think we're just more broadly recognized but I don't I don't think theres any surprises in terms of the cost basis per Joe I'll, let you add color.
Yes.
We're adding commercial people throughout the world So.
That's happening in every geography, right now we would be adding more people in the U S. Just because of areas like research and development and some areas that are just purely U S based functions.
<unk> functions, but but on the commercial side, we are adding sales and marketing talent all over the world.
Okay, great. Thank you.
Okay.
Thank you. Our next question comes from Kyle <unk> with Canaccord Genuity.
Thanks, Brian.
And Brian and thanks for taking the questions. Congrats on a great quarter I wanted to thank you for the guidance as well, yes sure.
So the fourth quarter implies.
15% of year over year of growth.
And which is below the street I mean, it's the third quarters of this trip I was just wondering what level of conservatism or maybe tempered expectations that you're kind of baking in there and then.
And kind of jumping off of that and also piggybacking on the prior question I was wondering of the third quarter instrument placements would be like abnormally higher just given the Japan delays I guess and some of the installation of sell out of <unk>.
And as well, yeah, and I might say I think we're dealing with Kyle.
And I'll, let the I'll, let Joe dig into the details obviously, what we're dealing with here in terms of the.
And the prior years quarter of quarterly growth of of the prior years is kind of an awkward like everybody is facing and awkward predicated and the prior year. So.
The percentage of growth Lumpiness will continue yes, we do expect to be sort of in line with our expectations on instrument placements.
For Q3 and through the rest of the year, but Joe I'll, let you add a little bit more color.
I think Q3 is going to be a normal quarter I don't think its going to be a big pop from.
From anything that carried over from Q2, So I think youre looking at.
<unk>.
The more instruments being placed in Q3, then and in Q2 and really just our guidance for the year, we're trying to take a conservative posture right now.
And it really just wanted to kind of deliver.
Deliver quarter after quarter and.
If we have another solid Q3, we'll certainly take a look at updating our Q4 guidance, but right. Now. We're just we're just trying to stay conservative make sure. We we made everyone's expectations and like I said, we can easily updated after after next quarter.
And if things continue to trend and the right direction.
Okay. I appreciate that guys. Thank you for that and I was and what sort of wondering about the competitive landscape, obviously of competitor with the spatial kind of of.
And that's per platform Watson and assay with the F&B capability and recently, obviously, there is differences between and lights and multi cell and Lasalle horse slide et cetera, I'm. Just wondering if you noticed any change in the landscape with the entrant of that product and then do you think it's too early like what type of impact do you think it could have over time of the <unk> platform, I guess, right and honestly and any of that and I know you've been looking.
Salary and any product development and your and just based off of what's happening in the face.
Yes, I think I think the way we look at the competitive environment is that this market and still rapidly growing.
And most of the system placements are a really greenfield placements and not necessarily head to head.
And I think I think what's unique about a lot of the spatial transcript almac solutions that are coming out is they do have a high degree of complementarity to what we're doing on the codec side.
There is there as of recent webinar that we did and doing some of these multiyear and the comparisons of extracting a lot of value out of it. So I think youre going to see a lot of customers leverage platforms like that and ours to Kirk and move their science forward.
And as we look forward to the future we will look at our capabilities as I alluded to earlier to expand our application suite as well.
Okay. Thanks for that.
And then just turning to the <unk> network.
I don't know if you disclosed this but how many partners have joined so far and.
And any like novel applications of come out of that yet and then also accounts the utilization kind of trending I guess or just how does the.
How does the acceleration kind of ramping up.
So I didn't hear the second part of your question, but the first part of we have not yet talked about the specific numbers and the number of memberships, we have and those yet we'll probably be talking about.
Who those partners are and what the application focus is going to be in the coming quarters and what was the second part of your question Kyle.
No I think Brian that kind of answers that I think I think I'm going to kind of that kind of answers both sides of the of the questions. That's good. There's 1 last question on the Astrazeneca partnership around and optics.
Was wondering if you can kind of tell us. What lies ahead and the collaboration of any like timelines or milestones and in the context of the broader work with Biopharma, how meaningful could that be for hertz to really align with drug development and the future.
Yes, so no specifics on Astrazeneca that I can reveal of obviously a lot of that's confidential in terms of the underlying details, but what's important not just with our partnership with them with other large biopharma partners. The these are these are multi project partners.
And partnerships and so I think youre correct as we look forward, we're investing more and more and the advanced Biopharma solutions group because it is of it is a really important vehicle to really embed ourselves within the clinical trial of the.
The clinical trial work of these key Io Biopharma and immuno oncology Biopharma and so that is that's an important avenue for us the ABS group to leverage as part of these partnerships.
Okay, great. Thanks, a lot for taking the questions and congrats again.
Thanks.
Thanks. Our next question is from Julianna <unk> with JP Morgan.
Hi, good afternoon, maybe just.
The following up on the consumables channel growth.
And I guess are there any time.
Thank you.
And we're a big partner projects, which it is great that that really contributed to strength.
We think about the second half.
And how should we think about the pulse and going forward and what are the chances that we can see consumable revenue above what youre guiding to.
Yes. So there is no there was no single event that drove the consumables I think it was generally.
A lot of unlocked demand for people that had not and it didn't have the ability to get and the lab and do a lot of work I think that was 1 of the big drivers, we sort of have of standard seasonality.
You see particularly on the consumable side that goes sort of Q4 Q2 Q3 Q1 in descending order. So that's the general seasonality that we that we the 1 sees with the consumables and ice.
Suspect that that's going to continue.
But but that said.
Year over year, we're seeing we're seeing pretty profound growth and aggregate year to date.
Got it.
And as we think about kind of the knowable.
On the call trial piece of that business, obviously, it's great to see the validation of the clinical trial that in essence the platform.
You monetize at this part of it.
Most of the flu is complete land or through your own avs.
Or perhaps Disney and sort of depend on the time horizon.
Yeah. So so the the way we monetize that is really through bowls and.
And through book so.
Again, we will use the astrazeneca because thats the women's publicly disclosed they have a number of systems internally as well they bought over the last couple of years.
So what we see is really both the acquisitions of the synoptics platform by our Biopharma customers by <unk>, who is an important customer base of us as.
And as well as growing business through our ABS services. So it's really both.
And then what also happens is the these projects are generally larger and size.
So it does help drive our consumables as well.
Got it and so how should we think about many of the revenue contribution of starting the second half of book and how it ramps from there.
And how much kind of benefit from the CLIA certification and is already embedded in your current guidance.
Yes, and I think.
Most of what we've talked about.
Today as part of our efforts and the translational and clinical research effort.
This has been part of our 2022 plan.
So I think we have a lot of this already contemplated in the model.
With both the work out of ABS, and the growing system placements and Biopharma and CRO.
Okay.
Thank you and this concludes our Q&A I would like to turn the call back to Brian Mcelligott and for his final remarks.
Well just to just to thank you to everyone for participating today, we really do appreciate your time and look forward. The following up again soon so thank you all.
And thank you for your participation in today's conference you May now disconnect have a wonderful day.
Okay.
Okay.
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