Q2 2022 Olink Holding AB (publ) Earnings Call
The conference will begin shortly to raise your hand during Q&A you can dial star one one.
[music].
Okay.
Yeah.
Good day and welcome to the Old Inc, probably prettier medics second quarter 2022 earnings conference call. At this time all participants are in a listen only mode. After the speaker's presentation there'll be a question answer session.
As a reminder, this call maybe recorded.
I'd like to turn the call over to John Medina, Vice President IR and capital markets you may begin.
Thanks, Michelle and good morning, everyone. Thank you all for participating in today's conference call on the call from I believe we have Jon <unk> Chief Executive Officer.
Carl Raymond Chief Commercial officer, and offer a young Chief Financial Officer.
Earlier today <unk> released financial results for the second quarter ended June 32022, a copy of the press release and an updated corporate presentation are 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 U S. Federal Securities laws, which are made pursuant to the safe Harbor provisions of the U S. Private Securities Litigation Reform Act of 90 95.
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.
Larry Lee from those expressed or implied in the forward looking statements due to a variety of factors for a list and description of the risks and uncertainties associated with our business. Please refer to the risk factor section on form 20-F Commission final number 001 dashboard <unk> seven filed with the U S Securities and Exchange Commission on March.
17th 2022.
And our other filings with the SEC.
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.
Also in our walk remarks or responses to questions management, maybe mentioned a non IRS financial measures reconciliations of adjusted gross profit and EBITDA constant currency revenue growth and certain other non <unk> financial measures to the most directly comparable <unk> measures are available on the <unk>.
<unk> earnings press release available on the company's website.
This conference call contains time sensitive information and is accurate only as of the live broadcast today August 11 2022.
Only disclaims any intention or obligation to update or revise any financial projections or forward looking statements, whether because of new information future events or otherwise except as required by law.
With that I will turn the call over to John John .
Thank you John Good morning, everyone and thank you for joining <unk> second quarter, two 2022 earnings call.
I'll begin with the quarter's highlights discuss a few areas where OLED, it's driving the size of proteomics, then I'll wrap things up by discussing our outlook for the remainder of 2020.
I will then turn the call over to Carl for more detail on our performance during the quarter.
It was a very strong <unk> benefiting from our industry, leading execution and building on our very positive start to the year.
We remain very confident that we had into the back half of 2022.
We are well positioned with customers and prospects within Biopharma and academia.
The impact of the pandemic environment, what's largely as we expected settling into a manageable workflow that remains conducive to strong growth for OLED.
Furthermore, as we completed a broad dynamic industry environment and macro cross currents openings execution remains strong and our customer base appears healthy with high interest in proteomics and project funding Remy solid.
We delivered quarterly revenue of 25 to 27 5 million U S dollars, 56% growth over the second quarter of 2021.
Growth from key and services was both strong and we remain confident in the continued shift of revenue towards kits with our 22 2020 outlook supported by the performance during the first half.
In Hyatt place, we've been very encouraged by the clear signals the robust customer demand and we believe that the opportunity with explore continues to show that it's more sizable than we originally anticipated.
Or recap in a very short period of time, driven proteomics to unprecedented scale quality and throughput, allowing for the first time ever the scientific community to add proceeds at a clear strategy to overcome the challenges we face in healthcare and drug development.
Protein data is proving to be an immensely valuable addition to the genomic data sets that we have developed over the last couple of decades driving invaluable insights on novel course of drug targets, clearly defining subgroups of patients more likely to respond to both new and existing drugs.
This is defining modern health care.
Putting up new opportunities both for the industry as well as health care providers and patients.
Another layer of our confidence is that we continue to expand our reach within the low and mid plex proteomics market with signature.
Which began deliveries to customers late last year.
The ability of OLED product platform to address multiple use cases within the same customer is increasingly clear with multiple multiple signature customers also being explored.
Also toward expanding our customer reach in June at the Hebt General meeting OLED mission to Democrat ties proteomics and enable explore broadly across the end yet landscape entered a new phase.
We announced collaborations with three and yes pioneered ultimate genomics element biosciences and things like genomics.
<unk> separately and yet are meant to provide customers with as many options as possible in taking the sequencing platform that is optimum for their needs.
We expect our efforts with each of these companies to be additive to our existing and very productive relationship with illumina.
Further to addressing our customer needs, we expect to continue to build out our library of antibodies.
Commensurate with the ambitious goals and clinical and diagnostic research and remain on track to expand to 4500 protein biomarker targets by year end.
Further beyond that.
Okay.
Toward advancing the science of Polyone, we are encouraged by the achievement of more than 940 carefully planned and executed research studies involving the use of our <unk> technology published in high impact peer reviewed publications to date.
Publication Count continues to accelerate from 2021 and the increase we saw in just the first half of 'twenty two exceeds the increase we saw during all of 2020.
Another milestone was the first study published that cited the use of OLED target 48 cytokines for researching COVID-19.
A reminder, target 48 has pushed proteomics and the mid plex space to new levels, using unparalleled multiplexing and providing the highest data quality with absolute quantification.
This is critical for studies in clinical settings generating more protein data points from the same sample.
For informing additional patient insights such as efficacy prediction stratification or safety assessment.
All these efforts represent activities by thousands of researchers across the globe cover eight age every major therapeutic category from research and discovery to the downstream clinical settings.
I'd like to focus on a couple of recent high impact publications that highlight the differentiated value of building product platform.
In June the UK Biobank pharma Proteomics project published early results from its groundbreaking proteomics research to the by archived preprint server.
Underpinned by more than 54000 participants the data are in open access population scale resource of unprecedented breadth and depth to help inform biological mechanism underlying general genomic genetic discovery.
The study also highlights the strength of OLED explore assay for PK tell detection.
Downstream biological discovery with a high proportion 82% of the proteins tested has ceased associations evidence of all links highly specific assays that measure their intended protein.
Measuring thousands of proteins as population scale can accelerate the development of novel Biomarkers and therapeutics and we are extraordinary grateful that OLED <unk> platform can be part of it tremendous journey.
We eagerly await the full data early to the scientific community expected by the end of this year.
It would be published using OLED unit of protein expression, MTX or normalized protein expression, providing a unique opportunity to shape. The language of next generation proteomics.
These data will also be available to researchers around the world put download.
We expect them to capitalize new thinking on procured genomics determining the role of new drug targets exploring causality.
A more homogeneous patient populations for clinical use predicting the likelihood of disease progression.
Identifying more relevant safety biomarkers.
As a reminder, the data published this year are from explore 15 36 and in 2022, we began rounding the expansion phase on the explore 30 72 platform.
In inflammatory bowel disease, a team led by Dr. Andrei Laura answer Retarder, Vice President Translational research in IBD ventures at the Crohns and Colitis Foundation Foundation recently around the study defined prognostic markers to determine if children with crohn's disease will develop serious complication like.
Fibrosis or fifth pillar.
We can find predict the market that determine whether they are likely to respond to more aggressive anti TNF therapy.
Using machine learning the team was able to identify a plasma protein signature that can predict diagnosed at the likelihood of a child with crohn's disease to develop complications within five years.
Beyond UK biobank, only gets parked or additional consortia exploring the role of protein Biomarkers. These include scallop for disorders like coronary artery disease, rheumatoid arthritis, bipolar disease heart failure dementia or metabolic syndrome.
Also coral for neurological conditions, and colorbreed for inflammatory bowel disease.
We believe that these efforts will be important contributors to the field of proteomics and provide meaningful new data points for drug discovery and development efforts.
Our considerable progress anchored is strong execution across our platform, including multiple product launches our robust revenue growth new collaborations and NDS, our partnership with octave in MFS.
Advancing the science of procurement would be impossible without the talent and dedication of the entire <unk>.
We remain steadfast in our goal to strengthen late already broad and deep talent pool and to further improve our lead in the proteomics seat.
We started the second quarter with 465 employees and reached 516 upon entering the third including 186 full time employees in the commercial team.
Turning to our expectations, we are reiterating our 2022 revenue guidance range of $138 four if I may.
As we previously discussed given the procurement and budgeting cycles of many of our customers. The majority of Olympics revenues secured during the second half of the calendar year.
We expect this trend to continue over the near term.
With a heavier weighting towards the fourth quarter, we expect our seasonality to become less pronounced over time as we continue to broaden our customer activity there.
Also expect continued progress this year toward our goal of increasing our sales mix towards kits.
Overall, all inks business broadly.
Business broadly across our product platform high to low plex and customer base remains very strong as we enter the second half of 2022.
Beyond this year, we remain optimistic about the strategic and financial outlook, our path to return to profitability.
And prospects for continued strong growth.
I will now turn the call over to Karl to provide a few more details on the quarter Carl.
Great. Thank you John .
It was a strong second quarter for OLED.
I'd like to thank the entire commercial team for their incredible work during the first half of the year overall growth was driven by buying activity across our customer base. Each revenue segment performed quite well and within our plan setting up a healthy trajectory for the second half of the year.
Second quarter 2022 revenue grew 56% on a yearly basis to 27 5 million led by our services business, which was largely in line with our expectations given deliveries to the U K PPP.
Revenue was comprised of seven 1 million and kits revenue $17 9 million and analysis services revenue and $2 5 million in other.
Q2, chip mix improves sequentially, reaching 26% of total revenue and growing 42% year over year, while analysis services revenue grew 51% other revenue tripled on a yearly basis largely due to signature sale.
Looking at explore total explore revenue of $18 5 million with 67% of our total revenue in Q2 2022 versus 53% in the year prior and on a trailing 12 month basis explore represented 68% of total revenue.
We expect to explore to continue performing strongly benefiting from robust pull through at existing sites and a significant expansion of externalization in in the second half.
On explorer externalization cumulative installations during the second quarter reached 29 for a total sample volume potential of roughly 640000 samples per year total sample volume potential is the metric we have discussed in the past and is defined as the number of samples are.
Our entire installed base of explorer site numbering 29 as of the end of Q2 could theoretically run over the course of a year.
Explore poultry at external sites has surpassed our initial expectations from last year and we believe this metric better represents the market that OLED could serve with its cumulative explore external limitations as well as the tremendous headroom for growth that remains.
<unk> delivered 14 signature instruments to customers for a total of 51 by the end of Q2, we are really encouraged by the adoption of signature our strength in the mid and low plex segment and uptake by new and existing customers. We believe our execution with signature really speaks to our ability to identify.
<unk> successfully addressing new opportunity with a new product and to do so in a relatively short period of time.
Looking broadly from OLED perspective customer buying behavior remains strong across our major geographies and from idled low plex with continued appetite for proteomics projects from new and existing customers recent data featuring the online platform are being well received by the community driving more interest to our <unk>.
And strengthening our competitive position.
The drive for new insights to improve human health is stronger than ever and we believe modern proteomics and all link NPS data, specifically will be one of the key enabling technologies to unleash a new era of biological understanding I'll now turn the call over to Oscar to provide additional financial details.
Thanks, Karl and Hello, everyone second quarter revenue continued to grow very well up 56% on a yearly basis, even with FX headwinds driven.
Driven by continued investment in alignment with our strategic plan adjusted EBITDA was negative $7 9 million for the second quarter as compared to negative $6 3 million for the second quarter of 2021.
As Carl mentioned at the end of Q2, we had 29 externally placed revenue generating explore installations.
This installed base achieved about $700000 in average customer pull through during the 12 months ended June 32022.
During our early experience with explore we've seen average annual proved through range from 500 to $750000 with individuals spend ranging from less than $100000 to multimillion dollar orders.
We continue to expect variability quarter to quarter put through.
Could be further impacted by our customer spending seasonality, but overall expect a continued strong growth.
<unk> revenue for the second quarter of 2022 grew 42% to $7 1 million as compared to $5 million for the second quarter of 2021.
Target was a bigger contributor to <unk> revenue growth during Q2, and we are really excited about the strength of the mid Plex segment.
Analysis services revenue in Q2 grew 51% to $17 9 million as compared to $11 8 million for Q2 of 2021.
Mix of kits versus analysis services revenue improved sequentially and was in line with our expectations.
<unk> continues to expect progress throughout the remainder of 2022 and beyond increasing the mix towards kits.
With growth driven primarily by signatures tier 100 instruments. Other revenue was $2 5 million for the second quarter of 2022 as compared to <unk> 8 million for the second quarter of 2021.
By geography revenue during the second quarter of 2022 was $12 5 million in Americas 12 six.
$12 $6 million in EMEA, and $2 4 million in China and rest of the world.
Consolidated adjusted gross profit was $17 $90 million or 65% of revenue in the second quarter of 2022.
Versus $12 5 million or 71% in the second quarter of 2021.
Adjusted gross profit for kits was 91% in Q2 of 2022 as compared to 90% in Q2 of 2021.
Q2, 2022, adjusted gross profit margin for analysis services was 58% as compared to 64% in Q2 of 2021. The decline in the analysis service margin was primarily driven by deliveries to the UK biobank and our continued buildout of lab capacity.
We continue to expect service margins to revert to normalized levels. We've served historically in the second half of this year.
As we consider total Cogs, we expect our strategy on increasing kit revenue as a percent of total revenue.
A positive impact on gross margin over the long term and quarter to quarter variation should be expected given the seasonality of our business and our ongoing product losses.
Furthermore, the continued adoption of exploring 37th to sue to provide support for margin expansion over time, leveraging our internally built antibody library.
Adjusted gross profit margin for other was 45% in Q2.
As compared to 44% for Q2 of 2021.
Total operating expenses for the second quarter of 2020 to $31 7 million as compared to $23 3 million for the second quarter of 2021 the.
The increase was largely due to continued and accelerated investment into OLED commercial organization research and development and driven by cost of the public company as well.
Operating expenses are broken out as follows.
Selling expenses for Q2 of 2021 or $10 6 million versus 7 million for Q2 of 2021.
Administrative expenses for Q2, 'twenty, two where 14 million versus $12 2 million for Q2 of 2021, and R&D totaled $7 3 million and 5 million for Q2 2002 in Q2, 2021 respectively.
Other operating income was $239000 in the quarter as compared to $8 68000 in Q2 of 2021.
Net loss for the second quarter of 2022, it was $4 8 million as compared to a net loss of $10 6 million for the second quarter of 2021.
Net loss per share for the second quarter I'll toss it to enter two plus <unk> based on an average number of outstanding shares of 119 million 101120 shares as compared to a net loss per share of <unk> <unk> in the second quarter of 2021 based on an average number of outstanding shares of $119 million.
7062 shares we ended the quarter with a strong balance of $100 million in cash and cash equivalents with a strong cash position shows our ability to responsibly balanced investment needs with efficient use of capital and consequently, we believe OLED remains sufficiently capitalized to achieve our return to profitability.
And to fund our existing strategic plan.
Moving to our outlook for 2022 <unk> strong performance to date has continued according to plan offsetting.
FX headwinds successfully so we're reiterating our revenue guidance of $138 million to $145 million and anticipated fourth quarter seasonality in 'twenty two to be slightly improved over.
Q4 of 2021, when considering the midpoint of the range.
This guidance also anticipates, a pandemic environment similar to what we've experienced to date.
The impact of the geopolitical environment remains non material or below as we consider 2023, we believe we remain very well positioned to return to profitability and continued strong growth as well.
Now I'll turn the call back to John for his concluding remarks.
Great. Thank you Oscar and thank you Carl.
It was a great first half of 2022 growing our leadership position in proteomics is seen even greater recognition and the company is benefiting from robust adoption across our entire portfolio of products and services.
Selling into abroad diversified.
Growing customer base across most take both proteomics use cases.
At this point, we'll open up the call for questions operator.
As a reminder to ask a question. Please press star one one.
Yeah.
Our first question comes from Matt <unk> with Goldman Sachs. Your line is open.
Hi, good morning.
John Carlin and Oscar Thanks for taking my questions, maybe my first question.
Just given.
The back half of the year and you expect to see improvement there just wondering if you could help us maybe with any additional color on Q3, just given the biobank revenues rolling off.
Maybe some view as to what imply growth or kind of some of the metrics for Q3 might look like so we can help with modeling.
Yeah, good morning, and thanks, Matt.
Yes, no Super excited of course coming.
Out of the first half very strongly.
You'll probably see and realize from the narrative here that.
The oil mix is increasingly getting higher and higher on the strategic agenda on the global research community.
In particular, all in proteomics MPA is becoming a very important tool for all of the three search ad.
Adding to the genomic data sets that we have generated over the past few decades.
On top of that.
You also realize that or recognized with the how we designed our product portfolio covering all of the various use cases from high to mid to low plex.
Explore target and of course the signature platform.
<unk>.
So with all that said OLED.
Sort of in a sweet spot on where the research community.
Focusing their attention at this point in time.
So as we look into the second half and with our externalization strategy, which is being very well received.
We see a very healthy pipeline looking into Q3 and beyond that so yeah.
Yes in my years as CEO is with already company.
I actually havent seen as being in any better situations. So we are super excited to leave in the first half of the year moving into the second half and yes look very healthy.
Two everything what we've communicated.
Over the past few quarters.
Got it. Thank you and then maybe a higher level question.
You've shown is probably stronger than expected growth leasing in our view in terms of low and mid plex, particularly in the collection target.
Maybe.
Could you just maybe help us out a little bit with customer behavior customer activity.
In mid and low plex relative to high Plex, just given what our expectations were I think many low it's grown a lot faster than we expected high plex, maybe not grown from an installation standpoint as fast as we expected. So maybe help us out in terms of what your customers are saying and the level of activity in each of those areas to kind of help us understand.
That dynamic.
Sure thing thanks for teeing that up Matt.
Yes. So we've worked together now for roughly 18 months I guess some I guess you also saw you'll start to recognize the strength and value of the <unk> technology and also all links.
Our capacity to sort of understand customer workflow and how these processes development processes are executed.
No.
Hi, Plex.
Part of our script you heard that it represents 6% to 7% of the business, which is quite remarkable is the only sort of 18 months we've had explore.
It's a product on the market.
But you this.
This research as they scale their research historic thoughts sort of casting that broad net and sooner than that.
Biased our hypothesis on the hypothesis driven and then everyone is hoping for a Goldman biomarker week of policy that you find rather a signature of proteins and then you want to advance your research we adults.
Our technology is truly unique with its scalability.
But we've been honestly sort of hampered on the mid to low plex market.
Based on the Readouts. That's why we were so excited we invested in the signature.
Product or renal platform and as we launched that last year now you're starting to see that it not only in the high flex that if the research market is becoming to appreciate them value the uniqueness op.
In unparalleled multiplexing with unparalleled high quality, we can cross every data point. This is now seeming into the mid Plex segment, the well with a <unk>.
Very competitive cost effective signature Q PCR readout so.
And bit of a long winded answer, perhaps but I wanted to give you the full sort of scope.
It's very early days for signature is seeing good progress there and this is just our starting point. So we are super excited as we mentioned across high mid and low plex.
Got it and maybe one last follow up if I can I will get back in the queue. Just Oscar just I know you said in the past that.
As a target and focus relative to explore the margins are relatively similar I just want to make sure that.
If we continue to see strong growth in mid to low <unk>.
That the margin.
Uplift that we could see from that mix shift going more into kits is still intact.
Those are sort of the mid and low plex are some of the drivers of the kit growth.
Yes.
That's really good question so.
That sort of correctly sort of summarize that if we look across sort of at a high level across explore on targets kits. The margin profile is very similar so sort of either either protocol.
Up and down in sort of relative contribution is not going to materially impact our gross margins.
Thank you.
Okay.
Our next question comes from Tejas Savant with Morgan Stanley . Your line is open.
Hey, guys good morning, and thanks for the time here.
Jonathan I'll start maybe maybe to kick things off on the analysis services piece picking up on.
An earlier question they are.
Outside of U K biobank, it sounds like gross was essentially flattish quarter over quarter and so what I'm wondering is as you think about.
The overall business, you've talked about being an increasingly important part of the mix on a go forward basis. So is that mix shift something youre envisioning sort of really kicks into high gear in the second half.
And is that a risk.
Service revenue might sort of tail off a little bit and then I have a couple of follow ups as well.
Sure good morning.
Thanks for the question.
Well.
Yeah.
Well as I sort of alluded to.
Proteomics is getting higher and higher on the strategic agenda proteomics is for the first time ever at scale and quality driven by <unk> and.
We are getting a lot of new customers as well our analysis service is a great first step in opening the door to new customers. So that's also why we see a lot of new activity new customers and it's a great onboard it's a first step for them to get acquainted to proteomics to our technology.
The MTX data et cetera.
And I could actually kick. This question also over to Carl and he may be can elaborate a bit on what we see a very healthy pipeline in terms of the kit business in the second half of the year and I actually believe that we already in Q3 you have.
More realization than we did in the second quarter. So I don't know Carl if you want to elaborate.
Yeah sure. Thanks, John Yes.
Yes for sure I think we're seeing actually sort of broad success across the portfolio from you.
You mentioned earlier from explore all the way down to the mid and low Plex and I alluded to it in my comments, we have a strong pipeline for explorer externalization in the second half so I think reiterating.
Guidance, we provided earlier, we can we'll continue to.
Shift the mix more toward kits certainly in the second half of the year.
And as you saw what they were having good success with the signature instruments, the low plex mid and low plex space as well.
As Matt was asking about as well you can see we're doing quite well on the kit revenue there. So.
We feel like we're executing our strategy.
Exceptionally well at this point to sort of push the technology out into the World and then as John said to continue.
To support our customers who.
Who rely on the service part of our business as well. So we'll continue to meet that demand, but the mix will continue to shift as projected.
Got it that's helpful color and actually Thats, a great segue into my follow up here.
So what does that mean.
Are you sensing any sort of delays or longer decision timelines as far as these get externalized patients go.
Two units was a little bit below where we were and then.
Is it still entirely <unk> or are you seeing next seeks.
Activated as well Im curious as to any commentary on any early traction with customers using non illumina instruments at this stage.
Yeah sure so.
Yes, the externalization.
It has been going well it is non linear.
A good way to describe it.
It's sort of in line with our expectations in that metric I mentioned around total market capacity. We think is an awfully good way to look at it that.
That 640000 sample capacity that I mentioned would sort of exceed the capacity needed to meet our targets for.
For now so we feel good about that and as I mentioned again, we have a very strong pipeline in the second half for externalization. So we expect that trend to continue a very positive way John mentioned in the second half, we're already sort of exceeding that early here.
As far as <unk> next seek mix.
Yes, we're continuing to see Nova being the dominant platform.
But we do have some legacy customers as well so.
There is a mix there, but it's definitely predominantly no boutique and then for the non Illumina sequencer as John mentioned, we're still collaborating and it's still to be determined.
In terms of what future volumes and throughput et cetera will come from.
These next Nextgen sequencing.
Sequencing platforms. So that is to be determined but again, we are quite optimistic about that potential and again sort of reaching our customers no matter, which platform they choose to use.
Got it that's very helpful.
And one final follow ups for Oskar here.
It looks like you burned about $20 million in cash in the first.
In the second quarter you are.
And obviously cash burn is on everyone's radar is given the market environment can you just walk us through any internal plans your four extending out your cash runway, a little bit and how youre thinking about sort of investments at this stage.
Yes, great Great question touch us. Thank you so I think first of all.
Alluded now for a couple of quarters I mean, we are really sort of reverting back to profitability and we see sort of 'twenty two.
Three years of being a key year and there was not that long ago that we ran out of high margin cash generative business. So I think in terms of sort of cash runway.
We're comfortable that the cash we have at hand today, we'll sort of take us through this plan.
A return to profitability next year.
Cash flow breakeven EBITDA.
And clearly we are.
Prioritizing sort of investments, but I think we've always been.
Sponsor Bowl in how we spend our cash where we invest.
But I think as we grow both the heart so today from both column from John .
Sort of the opportunity here in front of us is big.
Got it I appreciate the time guys. Thank you.
Thank you.
Our next question comes from Puneet <unk> with SBB Securities.
Your line is open.
Yes, Hi, guys, John Oscar Karl Thanks for taking the question. So first one just wanted to clarify the contribution in the quarter for U K Biobank and what's left to go at this point just to be clear, what what sort of contribution we should be expecting there in the third quarter, obviously, a big project for you and them.
One in terms of publication and significance was also wondering if that.
Benefited you in sort of new customer additions.
Or folks researchers who.
Looked at the impact of.
This publication.
Thanks, Tony and.
And good morning, Yes, I love to lead with the science right.
I'll start by asking the question there and it's amazing the feedback that we're receiving on the Prestea genomic approach and in particular by the value of our link in NPS.
The root of that is basically that you are customers here that participant in this fantastic project and you can buy a bank is now being able to either confirm.
Hit from genomics or actually rule out targets.
It's crucial information, providing immensely valuable and increasing interest in what we do so fantastic.
The to go into more tactics I mean first of all I can take this opportunity to congratulate our team at the analysis service who actually.
Just past week delivered.
The last and.
QC data from the running of the complete expansion part of the project. So we have now executed the full.
<unk> 72 on all samples in the UK Biobank, an amazing milestone and achievement from the analysis service team at the holding so huge.
<unk> to them for that and in terms of as you know we have not been sort of communicating the.
The exact financials around this based on our agreement with the consortium so.
But you know that it's been quite aggressive pricing from our perspective. This is also a very important project.
In raising awareness and importance and significance of both proteomics and OLED.
So, but it's great that this project is behind us as Oscar alluded to and you would see our service margins going back to more historical levels as we move forward.
Got it that's helpful.
And then on explore Oscar mentioned the average pull through is around 700000 and sort of how should we think about that trending as you add more explore im assuming there is going to be meaning.
Meaningful more additions into this into the second half obviously you had only two in the last two quarters.
Back to back so just wanted to understand how should we think about that.
<unk> trending as new accounts come online and explore.
Sure Carl I don't know menu closer to that if you want to comment yes sure sure.
Yes, I think that last 12 month metric as it could wanted to look at it just just for the reason you mentioned.
As I stated earlier, it's a bit non linear.
So as we add again, we have a strong pipeline in the second half as we add more.
Youre going to change the math, there a little bit so.
I'd keep an eye on that last 12 month metric, so I think that will be.
That will be telling but.
But yes, the pull through as mentioned earlier, the exceeded expectations and we're doing quite well at.
At our sites and the adoption has been robust we have had sites expanding their capabilities so increasing throughput.
During the quarter as well so I think these are all.
And again very sort of positive trends for the continued growth and success of the explore business and yet the externalization of it.
Okay.
That's helpful and then just.
Maybe this is for John .
On the antibody.
<unk> side I mean.
Talked about the $4 five K launching at the end of year end I mean, how should we think about the productivity on the new antibody development and internalization of that and sort of maybe a question for Oscar to and Theyre sort of as you continue to develop those how should we think about the gross margin.
Trend line as you bring those more of those antibodies internally. So just help me through that thanks, so much.
Great. Thank you.
And thanks for teeing that went up as well I can take the opportunity to I'm not sure if we have any.
Colleagues on here from promoting for the <unk> team that we acquired a couple of years back.
Huge shout out to them as well.
We have as I have communicated over quarters as well continue to improve the processes of success throughout the workflow in from antigenic immunization to harvest to purification and eventually PAA development, So and we are actually.
Doing extremely well and it's ahead of our internal carbon so of course that we are in very good shape.
To hit the targets and milestones that we set out so extremely good work by all the fantastic scientist.
We didn't know link in achieving that and Oscar on the gross margin side. It's also a good news yes, absolutely.
As we expand our own library, we will expect the sort of the.
The explorer kits margin to expand up.
A couple of.
Percentage points.
When we sort of approach the sort of four and a half day product sales that will sort of you know it takes time as sort of the mix, we'll develop within the explore segment, but its definitely sort of.
A tailwind for the for the gross margin.
Got it guys. Thank you.
Thanks, Nick.
As a reminder to ask a question. Please press star one one.
There are no further questions I'd like to turn the call back over to John Hymer for any closing remarks.
Thank you very much and thanks for joining us today and for your continued interest in <unk>. We look forward to keeping you updated on our progress and wish everyone. A great day. Thank you so much.
This concludes the program you may now disconnect.
The conference will begin shortly to raise your hand during Q&A you can dial star one one.
[music].