Q3 2021 Singular Genomics Systems, Inc. Earnings Conference Call
Greetings and welcome to the single agent on the third quarter results and business update call.
Time, all participants are in a listen only mode and this call is being recorded it is my pleasure to introduce your host Philip Taylor from Investor Relations you may begin.
Thank you operator, presenting today are singular genomics founder and Chief Executive Officer, Bruce Preventer, and head of finance tailwind meter earlier today singular genomics released financial results for the three months ended September 32021 copy of the press release is available on the company's website.
Before we begin I would like to inform you that comments and responses to your questions. During today's call reflect management's views as of today November nine 2021, only and will include forward looking statements and opinion statements, including predictions estimates plans expectations and other information.
Actual results may differ materially from those expressed or implied as a result of certain risks and uncertainties. These risks and uncertainties are more fully described in our press release issued earlier today and in our filings with the Securities and Exchange Commission or SEC filings can be found on our website or on the SEC's website.
Investors are cautioned not to place undue reliance on forward looking statements, we disclaim any obligation to update or revise these forward looking statements.
Please note that this conference call will be available for audio replay on our website at singular genomics dot com on the events page of our Investor Relations page.
With that I will turn the call over to CEO Bruce presenter.
Thank you trip and welcome everyone to singular genomics first quarterly conference call as a publicly traded company today I will discuss our recent accomplishments and progress as we approach our G. Four commercial launch the island will detail. Our financial results, then I will conclude and open up the call for question and answer session.
As you know we completed our initial public offering in early June listing on NASDAQ and raising approximately $258 million in gross proceeds.
I would like to thank our team of employees management and shareholders for their dedication to our mission and everyone who supported us from inception through IPO with the IPO complete single genomics is in a strong position to continue to develop manufacture and commercialize transformative life sciences tools that will empower research and clinical work.
And multi omics, we need better and more competitive solutions in the marketplace and singular as a company dedicated to filling this void.
To begin for those who are newer to our story I will provide an overview of our market opportunities and progress to date.
The mission that singular genomics is to accelerate genomics for the advancement of science and medicine. The first sequencing of the human genome occurred more than 20 years ago and has substantially improved our understanding of biology empowered the development of novel therapies and advanced clinical diagnostics. Since then genomic tools and technologies have gone through vast transformation increase.
<unk> and speed and power, while lowering costs and expanding access to the technology. We view this expanding market as two separate but related opportunities the existing <unk> market and a rapidly expanding multi omics market.
Currently genome, which provides a high resolution view of DNA and RNA and is used in areas such as reproductive health hereditary testing cancer detection treatment selection and monitoring immunology and infectious disease as a foundational technology and life Sciences sequencing is utilized throughout the entire sector and is it a dry.
Giving and is driving many of the life of the precision medicine.
Patient solutions across life Sciences.
As a result, we believe the current global NGL market represents an annual opex opportunity of $7 billion growing at a 16% CAGR.
I know mix towards our quickly expanding to offer insights into single cells and tissue and to look at DNA RNA and proteins in spatial context. This wide ranging multi almost approach will enable increased insights into the function of both cells and tissues, allowing for a better understanding of biology and disease right. Now. This next frontier represents a white space.
Brian to enable the next generation of scientific discovery is.
Market is estimated to be $2 billion today growing at a CAGR of 21%.
Despite the technological advancements driving market growth there remain real limitations, preventing incorporation of these tools in practice.
He was long analysis times labor intensive protocols complicated sample batching requirements and high cost to date, researchers and clinicians have largely been dependent on a very limited number of technology platforms for their sequencing needs. This is challenging for end users in terms of product choice flexibility cost and supply rely on.
Unlimited suppliers for key technology can be a big risk for all businesses and researchers that rely on sequencing.
We believe both the substantial and growing and yet multi omics markets are underserved by existing tools and technologies. We believe our technology offered through two distinct integrated solutions can address the major challenges in Ngls in the NGL market today and foster the next wave of cutting edge science and research in the markets of Tomorrow.
The first path, we are planning to bring to the NGL market is our G. Four integrated solution. This bench top instrument is designed to leverage our novel sequencing engine comprised of unique and proprietary chemistry, including novel chemical compounds polymers and enzymes, coupled with advances in rapid imaging and fluid. If we design the G four to deliver a combination of.
Accuracy speed flexibility and scale unmatched by any other instrument available today we.
We will offer our G. Four instrument with standard people think kits that are plug and play with existing sample prep and library prep offerings. The G. Four instrument will provide data output files the industry standard digital format, enabling seamless integration with existing secondary analysis pipeline and bioinformatics workflows, we develop this front and backend compatibility with existing work for.
Lowe's to enable customers to easily drop a G. Four system into their current sequencing workflow with minimal changes.
We designed the G. Four instrument to provide unmatched speed flexibility and scale and I'll briefly touch on each of these first speed. The instrument is designed to enable run times ranging from 5% to 16 hours for typical NGL applications based on cycle time, there are two to three times faster than systems on the market today.
Second flexibility that significant point of differentiation from any other sequencer available today. The G. Four instrument contains four independent flow cells. Each with four independently addressable lanes. This allows for parallel runs reduced sample batching and enhanced scalability as researchers and clinical users can scale up or.
Down coupled with faster run times. This configuration allows labs to increased efficiency from both the time and cost perspective.
Currently labs much batch many samples together perform lengthy sample preparations, including sample input amounts of compatibility and may be required to wait days or weeks to initiate it run it in order to avoid wasting money on consumables. This can delay time to results, which can be disruptive to productivity and third scale.
Power and versatility of the <unk> unique consumable kits will be offered across the spectrum of lower and higher output in terms of number of reeds and cycles at the low end at G. For kit will provide speed and cost advantages for smaller runs ranging down to a few gigabases and tens of millions of reeds at the high end, we designed a single G four instrument running for flow.
Sales in parallel to be capable of sequencing for human genome and less in 16 hours. This capability surpasses any other commercially available desktop sequencer with targeted data output up to 600 Gigabases per day.
In addition to these core attributes of the <unk>. Four we're also focused on developing specialized application kits consisting of proprietary assays that will take full advantage of the cheap for its unique capabilities. We have talked about the development of two special application kits. So far the first is the technology and kit, formerly referred to as synthetic long read that we will now refer.
Two as extended rates sequencing or <unk>. This is a technology and kit for targeted sequencing of extended read lengths in the range of 400 to 3000 basis. This will provide high accuracy high efficiency information about unique areas of the genome where existing solutions are not well suited for example, current short read sequencing.
<unk> lack read length and traditional long read sequencing solutions are overkill and too costly and application of this as sequencing the diversity of human antibodies by reading out the full length of the V. D. J region, which is 450 to 500 bases in length.
The second specialized application kit, we referred to as H D. C. This technology is designed to drastically improve accuracy and efficiency in rare variant detection in cell free DNA. We are also developing additional specialty kits to leverage the instruments capabilities to further unlock the potential of sequencing.
We have been thoughtful with the development optimization and introduction of our initial G. Four system to the market. There are three phases of our commercial launch plan. We have successfully completed the first phase collaborating with select partners to conduct beta pilot programs. We are in progress with the second phase expanding collaborations with additional selected <unk>.
And an early access program, we will advance to the third phase a broader commercial launch where we plan to begin accepting orders by year end with the intention to ship instruments. During the first half of 2022 as mentioned, we have completed beta pilot test and validation activities for our G. Four at both the genomics research organization Sanford Burnham credit.
And a clinical stage Biopharma company fate therapeutics utilization at these sites provide the first external performance validation in the field.
In line with our plan, we are now executed executing our early access program with collaborators across our target markets, representing research centers and commercial companies G. Four instruments are placed at third party sites in their labs and run by their technical staff as would occur in the field for commercial use these uses of <unk>.
Based on their ability to demonstrate the power and utility of the <unk> system across a number of applications, such as immunology oncology and biomedical research and their ability to scale as a potential customer.
In the third quarter, we advanced our early access program with six partners. Two sites are now complete one site is ongoing and three more under contract. We are encouraged with these results of the program. Thus far and are excited to share more details now at Harvard Beth Israel Deaconess Medical Center and academic core lab.
<unk> integrated solution was used for spatial transcriptome. Its research they achieved an average of 136 million <unk> per flow cell with an accuracy of 99, 6% to 99, 7%.
At site two targeted sequencing panels required 150 cycle kits were run the G. Four achieved average rig counts of greater than 150 million per flow cell with an accuracy of 99, 6% to 99, 8% used.
<unk> phase III is currently ongoing and includes targeted panels as well as exome libraries, requiring 200 cycle kits.
Actual results appear to be meeting expectations with average rig counts above a $170 million per flow cell and accuracy at 99, 8%.
These results achieved at these EAP sites are demonstrating performance on par with existing commercial offerings across a diverse set of applications. We intend to further advance the performance for our commercial offering and are pleased with the consistent improvements demonstrated so far in <unk> rig count and accuracy and short.
These results are in line with our EAP objectives at this stage and position us well for our next step commercial launch.
Our commercial launch remains on track to be initiated by year end leveraging the success of our application lab beta pilots and early access program. We are prepared to launch in coming weeks at launch we will be accepting orders from thought leading organizations, who are positioned to demonstrate the capabilities of our solution and educate peers through data.
Publications, we will soon announce pricing and specs for the instrument and our initial consumables publish a technical report and provide datasets to prospective customers for their thorough evaluation to maximize the value offered through our transformative solution. We aim to provide a premium customer experience beyond that which has become standard in the.
Market place.
We believe this will help assure the success of early placements build customer loyalty and enhance our competitive position. This requires a team of quality professionals across sales technical support field applications field service and marketing we are actively building this team to scale and meet demand.
While we are incredibly excited about the upcoming launch of <unk>. We have a second platform that we are developing to transform the field of multi omics. This is our PX integrated solution.
Instrument Leverages. The same novel sequencing engine is the G four which means that much of our investment to date supports both systems.
<unk> instrument is an integrated system for high throughput analysis of RNA, DNA and proteins by direct sequencing readout from intact single cells isolated or in tissue. The high powered imaging system provides subset of the resolution, enabling cell morphology, as well as spatial context of cell markers and cells and tissue.
The PX has been designed to significantly reduce cost on single cell experiments by integrating the self prep and sequencing readout into a single instrument by adopting a novel well placed sequencing format in 96, well plate and profile 96 independent samples with 30000 to 100000 cells in.
Each well that is a single consumable capable of roughly three to 10 million cells.
Not only can this lower cost shorten the workflow and.
And increase the number of samples for RNA transcription, but we also plan to offer combinatorial assays, including cell protein expression in tissue cell sequencing and spectral and spatial context of single cell profiles in tissue. We believe RPX integrated solution will facilitate systems consolidation and streamline workflows, while lowering <unk>.
Cost and enabling new capabilities to help researchers achieved the vast potential of multi omics. We're currently in advanced development with the PFS and expect to begin an early access program in 2022 with a full commercial launch in 2023 through a targeted and phased commercial strategy somewhat similar to the strategy. We are employing for the G. Four integrated solution.
<unk>.
Now I'd like to provide a quick update on our manufacturing and operations to maintain the highest quality of production for both our instruments and consumables. We recently completed.
The build out of a state of the art manufacturing facility. We are now scaling up our manufacturing infrastructure and beginning assembly of our first production units manufacturing of both instruments and consumables is progressing according to plan and gives us confidence we will be able to ship the first commercial instruments and kits during the first half of 2022.
We're incredibly excited with our progress to date, and we look forward to providing more insights into our commercial launch over the coming quarters with that I will now turn the call over to Taylor to go over the details of our third quarter financial results.
Thank you drew we continue to invest across all areas of our business to scale and support the upcoming <unk> launch anticipated growth and progressed the PX integrated solution.
Operating expenses for the third quarter of 2021 totaled $17 5 million compared.
Compared to $7 8 million for the third quarter of 2020.
These totals included noncash stock based compensation expense $2 9 million in Q3, 2021, and <unk> $3 million in Q3 2020 the.
The year over year increase in total operating expenses was driven primarily by our head count growth investments to support the G. Four commercial launch continued investment in the PX development in our R&D roadmap and the costs associated with being a public company.
Our third quarter expenses were slightly more favorable than planned due to the timing of certain investments shifting into the fourth quarter of 2021.
Net loss for the third quarter of 2021 was $17 6 million or 25 per share compared to $7 $9 million or <unk> 74 per share in the third quarter of 2020.
Ending cash cash equivalents and short term investments excluding restricted cash totaled $357 million as of September 32021, compared to $26 9 million as of December 31, 2020.
Our weighted average diluted share count for the quarter used to calculate net loss per share was approximately $71 7 million.
We expect share count to remain fairly consistent through the end of the year.
Looking ahead through Q4, we expect total operating expenses, including stock based compensation to continue to increase as we add head count invest in our operations and commercial infrastructure and buildup related support functions in anticipation of the <unk> commercial launch.
As a reminder, we do not expect to recognize any revenue until after we commenced shipping instruments and consumables, which is on track for the first half of next year is through previously discussed.
In summary, we are very well capitalized heading into 2020 too excited about the synergies and the resulting leverage between the G. Four <unk> systems and the commercial plan, we're putting in place to capture these large market opportunities. Thank you back to drew for closing remarks.
Don.
Health care and personalized medicine are at an inflection point largely driven by advances in science and research enabled by Ngls. We're excited not only to play a role in this transition but to help propel it forward by bringing superior solutions to market at singular, we're creating and developing unique and proprietary.
Chemistries, including novel chemical compounds polymers enzymes and other aspects of the molecular machinery of DNA sequencing, we believe that our engineering capabilities across optics mechanics, electronics, Fluidics physics software and bioinformatics, our unmatched for a company of our size and age.
Our ability to integrate and leverage this broad range of scientific and engineering disciplines is what sets us apart driving this technology engine is a unified focus and dedication to making products and solutions that will advance science and medicine, while serving customers. We are on track with our commercial plan or early access.
Graham is accomplishing its objectives. The <unk> instrument is delivering high performance for a diverse set of leading institutions interest levels from early discussions with customers are high and we're excited to take the next steps to bring <unk> to market. Joining me for Q&A, we have Eli Glazer, founder and CFO, Dale and meet our head of finance and.
Dave Daly, President and COO now, let's let's open it up to questions operator.
Yes, Sir at this time, we'll be conducting a question and answer session to ask a question press, Taiwan on your telephone again Thats Star one.
Ensure that everyone has an opportunity to participate we ask that you ask one question and one follow up question. Please.
Please stand by while we compile the Q&A roster.
Our first question comes from the line of Mr. Matt <unk> from Goldman Sachs. Your line is now open.
Hey, Al This is Nick on for Matt.
Thanks for the time.
So it looks like you guys are getting strong results from the early access program partner Labs. So just wondering how these early results are affecting the customer feedback loop and your potential to generate early demand uptake faster than you. Initially expected and then one follow up maybe for you tailwind I think our total expected Opex spend was right about in line with what you reported by our split.
It was weighted more heavily towards SG&A.
Versus the roughly 50 50 split you had this quarter. So any commentary on what to expect in terms of that split between sales and marketing versus research and development as.
As commercialization ramp up in 2022 thank you.
Thanks, Nick maybe I'll take the first part and have Dave weigh in on the question on commercial.
Very pleased with the results the early access partners are seeing.
The early access partners are really there to serve a few things. The most important is validation of our technology in third party hands and.
And so far the program is done exactly that and to provide a bit more color on what we mean by that our partners are preparing samples running the instrument and doing their own bioinformatics analysis. So it's really an end to end validation.
So beyond the early access program separately, we are seeing very strong demand and ill, let Dave talk a little bit about what he's seeing I will make a note as of yet and we're not sharing the confidential nature of the data from early access beyond but we are engaged with a number of customers and I'll, let Dave talk a little bit about the demand.
Yeah makes sense. Thanks drew we're really confident in the demand I think the feedback from the early access partners and in fact, if you go beyond that our early target customer engagements are confirming a real strong desire for alternatives.
And so we're focusing on building out our commercial infrastructure and David will touch a little bit on some of the financial components of Nick relative to the question yes.
But really the focus here given that demand and head.
Is to really create a differentiated customer experience and what our early access partners are indicating to US is the importance of providing best in class service and support so we're building partnerships, rather standing how to execute those partnerships and thats really where our commercial buildout emphasis is at.
This point in time daily that I was going to come in a couple of financial components, Yeah, Hey, Nick. Thanks for the question in regards to the split of Opex between R&D and SG&A going forward and how to think about that.
The bulk of our expenses.
Right now on the R&D side are personnel related.
The total head count at the end of the quarter was 200.
Yes, I think we filed our 10-Q and there we talk about the R&D head count totaled being about 116.
I think going forward we'll.
We'll be growing the R&D.
Team.
To keep up with the <unk>.
<unk> development and the product roadmap that I think you can expect us to see us growing the commercial team and the operations team.
A little bit more aggressively here going into the first part of the year as we near.
Launch and first customer ship.
Got it thanks that's helpful.
Our next question comes from the line of Mr. Michael in Michigan from Bank of America. Your line is now open.
Great. Thanks for taking the question guys.
I Wanna.
Just ask for a little bit more clarity on <unk>.
And if we can get for the next couple of quarters. You indicated you plan to start accepting orders all weighed in for Q.
When should we anticipate initial shipments after that is that about a quarter delay just sort of talk me through the getting the initial boxes out the door as you ramp up manufacturing how much time until it gets hard working through those and also are you going to recognize revenues on an instrument is shipped or when it's installed and brought on line by the customer.
Thanks, Yes, so for timing, we're talking about a commercial launch later this year and what that means is we're going to provide specs pricing and initial kit offerings right now we're looking at orders consistent with what we've communicated so far first half likely in Q2.
And we'll also be working on additional upgrades and additional kit offerings over time, so consistent with kind of what you have.
And the progress so far and matching marching up.
The kpis in terms of accuracy.
Number of Reed, we plan to continue to improve on this ongoing so we will launch.
With a set of spec.
Specs and kits, but we will also guide to additional kit that will be released over time as well to really see the full capabilities of the <unk> and I'll, let Dale talk about revenue recognition.
Hi, Mike.
Regards to revenue recognition I think longer term the.
The revenue recognition policy is going to follow the terms and conditions of the specific order with the customer I think as we develop a history of.
Instruments in the field and running at.
<unk> targeted specs.
We would recognize revenue upon shipment.
Yes.
In the initial quarter of launch and ship I think there is likely going to be some conservatism baked into our approach there and we'll make sure that we're <unk>.
<unk> customer acceptance.
Prior to recognizing revenue.
Got it and a follow up question on sort of the early access.
Program any learnings you can take from that in terms of what.
What exactly those potential customers are looking for in terms of the kids you mentioned.
The longer read and some of the other the HTC or whether its particular customer class that you're.
Targeting sort of anything you can take back in terms of how they're using the instruments and how that might tweak your commercial launch.
One of the big pieces of feedback we've gotten that these customers love. The fact that on our system, you're essentially paying a much different price point more in line with a mid market system or you will be.
And that's a huge advantage so it's really being able to scale up and down initially we thought we just need to be able to scale upscale up provide more reads lower cost per gigabases, but surprisingly, there's a tremendous amount of interest in at the lower end doing singles sample experiments and individual lane. So that's kind of changed our thinking of <unk>.
Little bit in terms of product roadmap potentially and it's also kind of changed our thinking a little bit in terms of who the target market is I think there's.
Of the 8000 or so might seeks out there there's probably a good subset of those that would actually really benefit and you. The G four system.
Beyond that I'll turn it over to Ely on on any of the specific learning since he's directly involved with these EAP partners.
Yeah. Thanks for the.
Question.
I think it's been.
Really useful experience for us in terms of both validation and refining and what we're going to have in the product.
When you are asking about what are the customers looking for all the.
Performance number reads accuracy.
And so on and equally important is the ability to tie into their existing library.
So that's something to.
Demonstrated in there on hand that they can use their established methods.
Simple resident sequencer, and then put it through their specific buying dramatic pipeline, that's been very useful for us to go through that in in terms of applications and we really.
Are covered in broad spectrum, we mentioned.
Biology at the first sight, you mentioned oncology immunology at the other site so.
The full range of our kids and as you noticed also.
And the numbers that drew provided kind of working our way up too.
Longer read demonstrations as part of the EAP.
Great. Thanks, so much if I could if I could squeeze him when follow up just because you mentioned it sort of the price component I'm curious with only.
A handful of customers so far in the ADP program How're you, arriving at a price point, both for the instrument, but more importantly for the consumables sort of like what are the input that go into your into your calculations on.
Price sensitivity and bureaucracy of demand, especially given we know where the competitors are.
Yeah, absolutely I think your last point is available and we know where the competitors are so it's actually.
Very easy for us to look at the various offerings and look at essentially what you are getting in terms of.
Throughput or number of Reed and what that translates to in terms of cost. What we've said consistently from from from onset is we want to be cost competitive we don't want to reach the bottom on costs, we think there'll be a number of ways that people see huge cost savings through the flexibility of the instrument.
What we what were how we're thinking about cost again, if we look at our system. We have a lot of ways consider it for next season, a single box with the four flows cells each one of those.
Depending on which could you using is essentially a mid throughput sequencer itself and if we look at the way. The next week prices at the high end their high teens.
At the low end very low throughput.
Kits and 100 cycle kiss their up into the 40 to $50 per Giga base. So we're kind of thinking about that range in terms of the consumable pricing and then.
Talked about allowing people to scale up either with multiple G. Four there was a four by four and if people are going to scale up in the system and higher volume environments, we're thinking about where the Nova sic prices and if you look at the <unk>, one or even the <unk> to your into mid to low teams in high single digits, if you're if you're if you're doing super high volume.
So we're definitely thinking about making sure we can provide a solution that meets.
A cost of cost point that makes sense and ads and flexibility speed modularity and other benefits and then from an instrument price point again, I think we don't want to change any by behavior by kicking into a different bucket from a purchasing decision. So again, we were thinking about this is that amid throughput sequencer and we will probably play for the flight premium to that.
Given that the.
Superior capabilities of the Benchtop sequencer.
Really helpful really appreciate the colored strength.
Our next question comes from the lineup May take Tom Susan Some calling your line is now often.
Hi, Thanks for taking my question.
So I want to focus more on the manufacturer scale out.
So my first question is how do you guys feel about the readiness to X cure for commercial launch out 22, and 23 and are there any.
Hiccups you see in the old kind of manufacturing process.
Unlike.
What's your confidence and be able to meet your sales finalize your kind of on poppies.
Are you, calling the capacity constrained if you have a bumpy and and 23.
Obviously beautiful thank you.
Awesome, So I'll get kind of the debris fast and then I'll, let you talk about manufacturing Dave sales.
The high level answer is right now we're right where we expected to do you are on plan.
And that feels that feels very good.
In terms of specific manufacturing readiness and scale up maybe I'll be like talk a little bit about kind of where we are in his comfort with being able to stay on plan.
Yeah. So.
New product introductions their heart and their particularly hard when it's your first product.
This complex of a field and so we're not just approaching this from scratch, we went through multiple around the design revision throughout the ages through beta stages take you through the early access programme. So all of these measures give us confidence in the platform that we're building both the instruments and the reagents.
And so now we've been scaling up to be ready for.
<unk>.
And that's doing very well.
This timeline, but we feel that realistic and we're also looking far enough ahead in terms of.
Securing part and making sure we have a good supply of components. So that we're not caught flat footed as we ran.
Of the manufacturing so I think that's actually paid off for US we had that strategy even before some of the supply chain issues came up and I think it has been particularly important in this time period.
Yes, Tom This is Dave I think now when the couple our preparedness from an operational perspective, one of the things that we really spent a lot of time on his as we develop and work our sales funnel.
Qualifying early on.
We're confident in our demand and at the same time, we're communicating that with our operations colleagues to ensure that we can flat and manage that demand as we created generated and bring it to fruition. So I think as we continue to move forward that cohesive Harmon.
The nation across both operations and commercial will allow us to manage that demand satisfy that demand and service set to that.
Great Great. Thank you and if I could ask one follow up on your on your longer read.
Do you have any plans to get that into I access partnerships. So is that does that so for inaction.
I think you're referring to.
What were you, calling now the extended range and formally.
Synthetic laundry. So we are developing it internally and we're also partnering with.
Academic groups right now too demonstrated in their specific application.
Great. Thanks, a whole back in the queue.
Our last question comes from the line is May take John Muir from UBS. Your line is now.
Taking my question, just maybe building on the lot.
Last question. There previously could you just talk a little bit more on the ramp it in the commercial team and what areas are there have been a focus on and any additional key hires to be made there or is it preparing for the G for lunch.
Sure. So I mean in terms of the commercial team most of our senior leadership is in place.
And now it's really a matter of.
Hiring skilled application scientists field support.
And sales.
And I can turn it over to Dave to talk about anything.
Additional in terms of the needs, but really.
That's the focus right now we have leadership in place we feel good about that leadership and now it's just building up the team Dave I don't know if you have anything to add notes and Jonathan.
We've mentioned a couple of times, we're really confident in the demand I think our focus really does need to be as do just described on building out our service and support infrastructure.
So that as we launch as we begin shifting we remain confident and creating a really differentiated customer experience. What we've learned early access and what we've learned through working our current funnel.
These partners have told us what's important to them and.
And as we intend on delivering a best in class Science and technology, we need to wrap that in an extraordinary service and support infrastructure. So do you described are focused state building out our field service team in our field applications team importantly, both of these groups are working alongside our development partners.
As part of the early access programme to both develop and refine our support program and a mayor that we really do believe it is going to create a differentiated customer experience. So our commercial emphasis is really on ensuring that as we satisfy the demand we're doing it the way that truly differentiate.
Got it fixed.
Maybe just a follow up on the the early access programme looks like there was steady improvement there and recounts and accuracy across the three sites are listed so you maybe just talk on any enhancements that you've made to the G. For her assistance difference and analysis that was at the free sites and just a clarification on that have any of the early.
Extra sites.
Actually committed to commercial launches yet are you able to share any information on that.
Yeah, maybe I'll take the second question first and that Eli talk about what he attributes to the the improvements.
We're not yet taking orders.
At this time, we will be soon.
So far the EAP feedback has been really strong and I think we're really looking forward to continued relationships with our partners in the supplier customer relationship, but we can't comment on anything beyond that at this point and then on the improvements Eli maybe you want to cover a little bit yeah.
Yes.
We're continuing to make improvements and we will stay on that path all the way through commercial launch and certainly beyond commercial lines as well. So the improvements have come from improvements in region formulations. So it's a complex system everything from clustering through the sequencing and we're continuing to find opportunities to optimize the performance.
As we continue our development efforts, we already feel good about where we are but we feel we can do even better in time for commercial launch.
Thanks for taking my questions.
Thank you.
This concludes a question and answer session I would like to turn to call back did you spend a fantastic closing remarks.
Yes, I want to thank everybody who's listening in for taking the time I want to thank the analysts for the Q&A.
Thank the Cingular team for a really strong quarter. We're really excited about what we have ahead of us and again. Thank you to everybody for tuning in and we really look forward to sharing more information as we progress down that down this journey.
That's all thank you.
This concludes today's conference call you May know just.
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