Q4 2023 Quanterix Corp Earnings Call
Yeah.
Operator: Good day, and thank you for standing by. Welcome to the Quanterix Corporation Q4 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode.
Good day, and thank you for standing by welcome to the Quanta.
Corporation Q4, 2023 earnings conference call.
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 a question. During the session you will need to press star one on your telephone you will then hear an automated message nobody knew your hand is raised to withdraw your question. Please press star one again, please be advised today's conference is being.
Operator: After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising you that your hand is raised.
Operator: To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Vandana Sriram, CFO. Please go ahead. Thank you, and good afternoon.
Recorded I would now like to hand, the conference over to your speaker today.
Santana.
CFO. Please go ahead.
Thank you and good afternoon.
Vandana Sriram: With me on today's call is Masoud Toloue, President and CEO of Quantel. Before we begin, I would like to remind you of a few. This call will be recorded, and a replay will be available on the investor relations section of our website. Today's call will contain forward-looking statements within the meaning of U.S. private security's litigation reform. These forward-looking statements are based on management's beliefs and assumptions and on information available as of the date of this release. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements.
On today's call is my food.
President and CEO of <unk>.
Before we begin I would like to remind you of a few things.
This call will be recorded and a replay will be available on the Investor Relations section of our website.
Today's call will contain forward looking statements within the meaning of the U S Private Securities Litigation Reform Act.
These forward looking statements are based on management's beliefs and assumptions and on information available as of the date of this call.
You may not actually achieve the plans intentions or expectations disclosed.
In our forward looking statements.
Vandana Sriram: Forward-looking statements involve known and unknown risks, uncertainties, assumptions, and other factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statement. The risks and uncertainties that we face are described in our most recent filings with the Securities and Exchange Commission. To supplement the company's financial statements presented on a gap basis, the company has provided certain non-gap financial measures. Management uses these non-gap measures to evaluate operating performance in a manner that allows for meaningful period-to-period comparison and analysis of trends in its business.
Forward looking statements involve known and unknown risks uncertainties assumptions and other factors that may cause our actual results.
Our achievements to be materially different from any future results.
Or achievements expressed or implied by the forward looking statements.
The risks and uncertainties that these states are described in our most recent filings with the Securities and Exchange Commission.
To supplement the company's financial statements presented on a GAAP basis the company.
He has provided certain non-GAAP financial measures.
Management uses these non-GAAP measures.
Operating performance in a manner that allows for a meaningful period to period comparison and analysis of trends in its business.
Vandana Sriram: The company believes that such measures are important in comparing current results with previous period results and are useful in assessing the company's operating performance. The non-debt financial information presented here should be considered in conjunction with, and not as a substitute for, the financial information presented in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, set forth in the appendix of the presentation, posted on our website, and in the earnings release issued. I will now turn the call over to Thank you, Vandana.
The company believes such measures are important in comparing current with us with other periods of boats and are useful in assessing the company's operating performance.
non-GAAP financial information presented here should be considered in conjunction with and not as a substitute for the financial information presented in accordance with GAAP.
Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures set forth in the appendix of the presentation posted to our website and in the earnings release issued yesterday.
I will now turn the call over to Mike.
Thank you Brandon.
Masoud Toloue: Starting with Q4 of 2023, we hit record consumables production, delivering $17.5 million in revenue, contributing to 31 and a half million of total revenue. Nongap gross margins improved 515 basis points versus the fourth quarter of the previous year, and cash use was 6.4 million, leaving us with over 320 million of liquidity on our balance sheet and in a strong position to deploy capital for growth investment. As a reminder, we began a corporate transformation process six quarters ago with a focus on three core principles.
Starting with Q4 of 2023.
We hit record consumables production.
During 2017, and a half million dollars in revenue contributing to 31 and a half million of total revenue.
non-GAAP gross margins improved 515 basis points versus fourth quarter prior year.
Cash used was $6 4 million, leaving us with over 320 million of liquidity on our balance sheet and in a strong position to deploy capital for growth investment.
As a reminder, we began our corporate transformation process six quarters ago with a focus on three core principles quality innovation and positioning <unk> to unlock the value of the transactional markets.
Masoud Toloue: Quality, Innovation, and Positioning Quanterix to Unlock the Value of the Transitional Market. In 23 Improving margins and manufacturability. Testing capacity in our accelerator and manufacturing output improved by 50 and 300%, respectively, each with new capacity to grow threefold from where they are today. New assays rolling off production lines are now getting into the hands of our first customer. These accomplishments over six quarters are the result of our team's focus, determination, and strong operating discipline.
In 'twenty three we built newly formulated assays improve.
Improving margins and manufacturer ability.
Testing capacity in our accelerator and manufacturing output improved by 50 and 300% respectively.
Each with new capacity to grow threefold from where they are today.
New assay is rolling off production lines are now getting into the hands of our first customers.
These accomplishments over six quarters are the result of our team's focus determination and strong operating discipline.
Masoud Toloue: The efforts have positioned us for better quality, higher throughput, and faster innovation and are reflected in our financial performance for 23. With revenue growing 16%, non-gap gross margin improving over 1300 basis points, all while we reduce cash burn by $40 million in 2023 as compared to 2020.
These efforts have positioned us for better quality.
Higher throughput faster innovation and are reflected in our financial performance for 'twenty three.
With revenue growing 16% non-GAAP gross margin improving over 30, and 100 basis points, all while we reduced cash burn by $40 million and 23 as compared to 22.
Masoud Toloue: In 2024, our three strategic objectives are growth in menu, newinnovationintact.com, and Alzheimer's Disease Diagnostics. Starting with the first objective, we intend to leverage our newly built product development engine by introducing approximately 20 new assays by the end of this year. This is not a small feat.
In 2024, our three strategic objectives, our growth in menu.
New innovation and tech.
In Alzheimer's disease diagnostics.
Starting with the first objective, we intend to leverage our newly built product development engine by introducing approximately 20, new assays by the end of this year.
This is not a small feat.
Masoud Toloue: We're allocating resources to expand our technology platform. Well, Fortify Flex satisfies the vast majority of neuro programs today. Our goal is to have SOMOA not just in specialty neural labs, but Samoa in all that. We're working on multi-channel lossless resolution, which means no loss measurement of the lowest quantity of protein that can be distinguished from the absence of that protein across multiple channels.
We're allocating resources to expand our technology platform.
While fortified plex satisfied the vast majority of neuro programs today.
Our goal is to have some our not just in specialty neuro labs.
But some Hawaii and all labs.
We're working and multichannel lossless resolution, which means no loss measurements of the lowest quantity of protein that can be distinguished from the absence of that protein.
Across multiple channels.
Masoud Toloue: Developing this would be a significant breakthrough. Expanding Plex, maintaining sensitivity, improving footprint, and reducing costs will enable research and clinical work in immunology and oncology laboratories. I expect we'll discuss more toward the end of the year. Finally, on diagnostics. Our stated goal is to build the global testing infrastructure for Alzheimer's disease. Identifying patients by invasive methods, including PET and lumbar puncture, is not scalable and limits access to newly available treatments for Alzheimer's disease.
Developing this would be a significant breakthrough.
Expanding plex, maintaining sensitivity improving footprint and reducing cost will enable our research and clinical work in immunology and oncology laboratories.
I expect we'll discuss more towards the end of the year.
Finally on diagnostics.
Our stated goal is to build the global testing infrastructure for Alzheimer's disease.
Identifying patients by invasive methods, including patent lumbar puncture is not scalable and limit access to newly available Alzheimer's disease modifying therapies.
Masoud Toloue: There is now abundant evidence showing non-invasive testing methods using blood-based biomarkers are equal to or better than invasive methods, and we believe they'll be the best solution for broadening access to therapies to patients. It has also become clear that identifying patients early in a disease cascade results in better patient outcomes, and this is where we believe Samoa technology will play a critical role. I want to make an important point here. Samoa digitally interrogates proteins in femtoliter wells, providing exquisite signal-to-noise separation and amplitudes a couple orders of magnitude beyond the noise floor where other technologies reside.
There is now abundant evidence showing noninvasive testing methods using blood based biomarkers are equal to or better than invasive methods and we believe there'll be the best solution for broadening access to therapies to patients.
It has also become clear that identifying patients early in the disease Cascade results in better patient outcomes.
And this is where we believe similar technology will play a critical role.
I want to make an important point here.
More digitally interrogates proteins, and Femto leader wells, providing exquisite signal to noise separation and amplitudes a couple of orders of magnitude beyond noise floor, where their technology is reside.
Masoud Toloue: The combination of ultra sensitivity and precision enabled much lower limits of detection and quantitation than other technologies. So, as part of a diagnostic follow-up, if a Samoa P-Tau 217 test is used throughout the diagnostic workup, a physician can track a patient's levels if symptoms progress or if they undergo treatment. Other tech may not have the sensitivity or precision to do this across the full range of Ptau 217 concentrations that are diagnostically relevant. Precision at the very low concentration levels that p-tau 217 is present in blood allows some assays to provide high diagnostic accuracy, given the need to resolve small changes around cutoffs corresponding to the low and high likelihood of amyloid pathology.
The combination of ultra sensitivity and precision enabled much lower limits of detection and quantitative than other technology.
So as part of our diagnostic follow up if a similar PTR 217 test is used throughout the diagnostic workup of physician contracted patients levels symptoms progress or if they undergo treatment.
Other tech may not have the sensitivity or precision to do this across the full range of <unk> to 17 concentrations that are diagnostics irrelevant.
Precision at the very low concentration levels that Pete how 2017 is present in blood allows thermo assays to provide high diagnostic accuracy.
Given the need to resolve small changes around cutoffs corresponding to low and high likelihood of amyloid pathology.
Masoud Toloue: Our test uses a two-cutoff design as recommended by the NIAAA and other expert groups providing a high confidence result extending to both ruling in and ruling out amyloid pathology. This has the potential to reduce approximately 70 to 80% of PET scans and lumbar punctures during the Alzheimer's diagnostic process. Over the next two years, we will allocate $20 million of capital to advance the access of our diagnostic test. We will also focus our clinical studies for diagnostics in two main areas. One, the development and validation of a multi-marker blood test, and Prospective Studies with health systems to establish blood-based biomarkers as part of a routine Alzheimer's diagnosis entry. For the multi-marker test development and validation, we're wrapping up the first two phases of two important studies. Bayou Hermes, and Kentate.
Our test uses a two cutoff design as recommended by the NIH.
And other expert groups, providing high confidence result, extending to both ruling in and ruling out amyloid pathology.
This has the potential to reduce approximately 70% to 80% of pet scans and number of pump shares during the Alzheimers diagnostic process.
Over the next two years, we will allocate $20 million of capital to advance the access.
Our diagnostic tests.
We will also focus our clinical studies for diagnostics in two main areas, one development and validation of a multi marker blood test.
And prospective studies with health systems to establish blood based biomarkers as part of our routine Alzheimer's diagnosis and treatment.
For the multi marker test development and validation, we're wrapping up the first two phases.
Two important studies.
Bio Hermes and can today.
Masoud Toloue: Bioharmies is a prospective study that enrolled individuals from 17 sites across the U.S., including significant numbers of underrepresented populations, and collected blood samples as well as pet images. Phase one of the study is now complete, and publications are expected later this year. Kentade is our ongoing collaboration with research researchers at the Amsterdam Medical Center, where blood is being collected as well as CSF with corresponding biomarker measurements to assess amyloid. We expect to announce results from Phase 1 of these studies later this year. Quanterix is also sponsoring and taking part in several new studies to establish blood biomarkers as part of routine Alzheimer's diagnosis and treatment. In addition to helping expand the adoption of laboratory-developed tests based on Samoa technology, such as Plasma 217 and our planned future multi-marker test offering, these studies are expected to provide clinical validation data to support an FDA submission for an Alzheimer's blood biomarker diagnosis.
Bio Hermes is a prospective study that enrolled individuals' from 17 sites across the U S, including significant numbers of underrepresented populations.
Collected blood samples as well as pet images.
One of the study is now complete.
And with publications expected later this year.
Cantata is our ongoing collaboration research researchers at the Amsterdam Medical Center, where blood is being collected as well as CSF with corresponding biomarker measurements to assess amyloid.
We expect to announce results from phase one of these studies later this year.
Contacted also sponsoring and taking part in several new studies to establish blood biomarkers.
As part of routine Alzheimer's diagnosis and treatment.
In addition to helping expand the adoption of laboratory developed tests based on some of our technology, such as plasma 2017, and our planned future multi marker test offering. These studies are expected to provide clinical validation data support an FDA submission for an Alzheimer's blood biomarker diagnostic.
Yeah.
Masoud Toloue: In 2024, we will focus our efforts on building out our commercial capabilities to support the diagnosis of Alzheimer's disease and what we would expect to be a corresponding uptick in the adoption of new therapy. We've already onboarded a dedicated commercial team, and they've hit the ground running. We're pleased to announce that we're now working with five leading health networks in the U.S. An important step as we build out the infrastructure that supports testing for this disease. Each will have access to the Lucent AD test at our CLIA-certified lab or our instruments and assays to develop and validate their own laboratory-developed tests.
In 2024, we will focus our efforts on building out our commercial capabilities to support diagnosis of Alzheimer's disease.
We would expect to be a corresponding uptick in the adoption of new therapies.
We are already on boarded a dedicated commercial team and they've hit the ground running we're pleased to announce that we're now working with five leading health networks in the U S.
An important step.
We build out the infrastructure that supports testing for this disease.
Each will have access to the loosened 80 test at our CLIA certified lab or our instruments and assays to develop and validate their own laboratory developed tests.
Vandana Sriram: These networks will provide reach to over 140 hospitals caring for approximately 21 million patients. I will now turn the call over to Vandana to cover our financial results. Thank you, Matthew.
These networks will provide reach to over 140 hospitals carrying for approximately 21 million patients.
I will now turn the call over to bundle not to cover our financial results.
Thank you.
Vandana Sriram: I will now cover additional details of our fourth quarter and full year performance and will provide guidance for 2020. As Masoud mentioned, the 2023 year-end capped our corporate transformation, and we've made significant execution progress over the fixed quarter program. Our total revenue for the fourth quarter of 2023 was $31.5 million, an increase of 22% from the fourth quarter of 2020. Our consumables revenue increased to $17.5 million, or 56%, compared to the fourth quarter of 2020. This was a record quarter, and we noted continued strong demand for our consumables offerings, coming from high interest in supporting New Orleans. However, instrument revenue was $3.3 million, a decline of 39% over the fourth quarter of 2022.
I will now cover additional details of our fourth quarter and full year performance and will provide guidance for 2024.
As we've mentioned the 2023 and kept our corporate transformation.
Made significant execution progress over the six quarter program.
Our total revenue for the fourth quarter 2023 was 31 5 million an increase of 22% from the fourth quarter of 2022.
Our consumables revenue increased to $17 5 million or 56% compared to the fourth quarter of last year.
This was a record quarter and we noted continued strong demand for our consumables offering coming from high interest in supporting neurology.
Instrument revenue was $3 3 million a decline of 39% over the fourth quarter of 2022 similar.
Vandana Sriram: Similar to other tool companies and continuing the trends we saw in the second half of 2019, we added net 20 instruments to our installed base in the fourth quarter of 2020. Fourth quarter revenue from our Accelerator Lab was $5.6 million, an increase of 71% over the fourth quarter of 2020. We continue to observe strong demand for our accelerator services, and this has been especially valuable to us in the current environment where tools have been capital consumed. We're unique in our industry in that CapEx pressure has not limited customer access to our simulated. When the budget environment changes to be more favorable to capital purchases, we expect some rebalancing of instruments and services.
Similar to other tools companies and continuing the trends we saw in the second half of 2023.
The added net 20 instruments to our installed base in the fourth quarter of 2023.
Fourth quarter revenue from our accelerator lab was $5 6 million, an increase of 71% over the fourth quarter of 2022.
We continue to observe strong demand for our excellent range of services and this has been especially valuable to us in the current environment with tools have been capital constrained.
A unique in our industry and that Capex pressure has not limited customer access to our similar technology.
When the budget environment changes to be more painful to capital purchases.
Expect some rebalancing of instrument and service mix.
Vandana Sriram: Moving on to gross margin for the quarter, our GAAP gross profit and margin were $16.8 million and 53.2% respectively for the fourth quarter of 2023, compared to 12.6 million and 48.8% respectively in the fourth quarter of 2020. Non-GAAP gross profit and margin were $14.7 million and 46.5% respectively in the fourth quarter as compared to $10.7 million and 41.3% respectively in the fourth quarter of last year.
Moving onto gross margin for the quarter.
Our GAAP gross profit and margin was $16 8 million and 53, 2% respectively for the fourth quarter of 2023.
Compared to $12 6 million and 28, 8%, respectively in the fourth quarter of 2022.
non-GAAP gross profit and margin was $14 7 million and 46, 5%, respectively in the fourth quarter as compared to $10 7 million and 41, 3% respectively in the fourth quarter of last year.
Vandana Sriram: The year-over-year margin expansion reflects the impact of our transformation efforts and favorable mix from increased sales of higher-margin consumables and accelerator services. Our fourth quarter 2023 gap operating expenses were $33.7 million compared to $34.5 million in the fourth quarter of 2020. The fourth quarter of 2023 included one-time impairment and restructuring charges of $1.6 million, primarily from a lease impairment, as compared with similar charges of $9 million in the corresponding prior period, excluding the impact of impairment. Gap operating expenses increased $6.6 million, and non-gap operating expenses increased $6.4 million due to higher R&D and personnel related costs. Our operating loss declined from $22 million in the fourth quarter of 2022 to $17 million in the fourth quarter of 2023 due to higher consumables and accelerator sales and improved gross market.
The year over year margin expansion reflects the impact of our transformation efforts and favorable mix from increased sales of higher margin consumables and accelerated services.
Our fourth quarter 2023, GAAP operating expenses were $33 7 million compared to $34 5 million in the fourth quarter of 2022.
The fourth quarter of 2023 included onetime impairment and restructuring charges of $1 6 million, primarily from a lease impairment as compared with similar charges of $9 million in the corresponding prior period.
Excluding the impact of impairments GAAP operating expenses increased $6 6 million and non-GAAP operating expenses increased $6 4 million due to higher R&D and personnel related costs.
Our operating loss declined from $22 million in the fourth quarter of 2000 $22 million to $17 million in the fourth quarter of 2023, due to higher consumables and accelerated sales and improved gross margins.
Vandana Sriram: For the full year, these results bring up to $122.4 million of revenue, delivering 16% growth. Now, I will provide some additional context on the full year rhythm. 62% of our revenue came from North America, 26% from Europe, and 12% from Asia Pacific, with mid-teens growth across all geographies. Over 80% of our revenue came from neurology, where we continue to have a highly differentiated product. Moving on to liquidity, we ended the fourth quarter with $323.9 million in total cash, cash equivalents, marketable securities, and restricted cash, a net usage of $6.4 million during the quarter, For the full year, our cash usage was $17.4 million, a reduction in cash usage of $40.3 million.
For the full year. These results bring us to $122 4 million of revenue delivering 16% growth.
Now I will provide some additional context on full year revenue.
62% of our revenue came from North America, 26% from Europe, and 12% from Asia Pacific with mid teens growth across all geographies.
Over 80% of our revenue came from neurology, where we continue to have a highly differentiated position.
Moving on to liquidity, we ended the quarter with $323 9 million in total cash cash equivalents marketable securities and restricted cash a net usage of $6 4 million during the quarter as compared to cash usage of $5 million in the <unk>.
Fourth quarter of 2022.
For the full year, our cash usage was $17 4 million a reduction in cash usage of $43 million.
Vandana Sriram: We continue to have a strong balance sheet with ample cash to fund growth. Let's turn to guidance for 2020. We expect full-year revenue in 2024 to be in the range of $139 to $144 million. This guide is for our research-only business and does not include revenues from diagnostics testing, which to date have not materialized. Diagnostics is a nascent area closely correlated to therapy adoption, and at this time, it is premature to provide. However, with the commercial team that is now in regular contact with neurology centers and hospital systems, we are in a unique position to measure blood testing uptake, and we will provide quarterly updates on our progress. For the full year, we expect gap gross margin to be in the 57 to 61% range and non-gap gross margin to be approximately 51 to 55%.
We continue to have a strong balance sheet with ample cash to fund growth.
Let's turn to guidance for 2024.
We expect full year revenue in 2024 to be in the range of $139 million to $144 million.
This guide is part of our research on the business and does not include revenues from diagnostics testing, which to date has not been material.
Diagnostics is a nascent area closely correlated to therapy adoption.
And at this time it is premature to provide guidance. However that the commercial team that is now in regular contact with neurology centers and hospital systems. We are in a unique position to measure blood testing uptake and we will provide quarterly updates on our progress.
For the full year, we expect GAAP gross margin to be in the 57% to 61% range and non-GAAP gross margin to be approximately 51% to 35%.
Vandana Sriram: As with revenue, this guide excludes margins from diagnosis. Lastly, on to capital allocation and cash use. We expect our cash usage for the full year to be in the range of $25 to $30 million, and an increase in cash usage of approximately 10 million at the midpoint. As Masoud mentioned, our priorities in 2024 will be growth in menu, innovation in tech, and ramping up diagnostics. We will spend approximately $5 to $10 million on the first two initiatives and approximately $10 to $15 million on diagnostics, with additional spend on diagnostics expected in 2020. This approximately $20 million investment in our strategic initiatives will be offset by approximately $10 million of reduced cash burn from revenue and margin. We will continue to drive our RUO business to reduce cash burns and still expect to achieve cash flow break-even on this business at approximately $170 to $190 million of revenue.
As with revenue this guide excludes margins from diagnostics testing.
Lastly onto capital allocation and cash usage.
We expect our cash usage for the full year to be in the range of $25 million to $30 million.
An increase in cash usage of approximately $10 million at the midpoint.
As much as we'd mentioned our priorities in 2024 will be growth in menu innovation and tech and ramping up diagnostics.
We will spend approximately $5 million to $10 million on the first two initiatives and approximately $10 million to $15 million on diagnostics with additional spend on diagnostics expected in 2025.
This approximately $20 million investment in our strategic initiatives will be offset by approximately $10 million of reduced cash burn from revenue and margin growth.
We will continue to drive our audio business to reduce cash burn.
We still expect to achieve cash flow breakeven on this business at approximately $170 million to $190 million.
Vandana Sriram: This guide includes the incremental investment in menu and innovation. At the same time, we will invest capital to grow diagnostics, and, consistent with our comments on revenue, it is premature to provide a cash flow break-even point for diagnostics. In summary, we are aligning our capital allocation priorities to our areas of opportunity, and we will put our capital to work to drive growth in these exciting areas. I will now turn it back over to Masoud before we take it.
This guidance includes the incremental investment in menu and innovation.
At the same time, we will invest capital to grow diagnostics and consistent with our comments on revenue. It is premature to provide a cash flow breakeven point for diagnostics.
In summary, we are aligning our capital allocation priorities to our areas of opportunity and we will put our capital to work to drive growth in these exciting events.
I will now turn it back over to MS will before we take your questions.
Masoud Toloue: Thank you, Vandana. You know, I want to say we're very proud of the talent density at Quanterix. It's the super team that has made difficult and painful changes in the company. This would not have been started or completed if we did not believe in the output of work.
Thank you Brandon.
I want to say, we're very proud of the talent density at <unk>.
The Super team, who have made difficult and painful changes in the company.
This would not have been started or completed if we did not believe in the output of work.
Operator: Our mission is to provide the tools to enable discovery and improve patient outcomes. This is not just a statement that goes on a webpage or wall; it is very real and tangible, and our team is in active delivery mode. Now, we can take ask some questions. Thank you. As a reminder, to ask a question, please press star one on your telephone and wait for your name to be announced. To withdraw your question, please press star one again.
Our mission is to provide the tools to enable discovery and improve patient outcomes.
This is not just a statement that goes on a webpage or wall is very real and tangible and our team is in active delivery mode.
Now we can take some questions.
Thank you as a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one again, one moment, while we compile our Q&A roster.
Operator: One moment while we compile our Q&A roster. And our first question is going to come from the line of Matt Sykes with Goldman Sachs. Your line is open. Please go ahead. Good afternoon.
And our first question is going to come from the line of Matt <unk> with Goldman Sachs. Your line is open. Please go ahead.
Matthew Carlisle Sykes: Thanks for taking my questions and congrats on the Q4. Maybe just starting out, I want to go back to the announcement you guys made on Monday about the health, and there are a couple things. One, you know, is that included in the guide?
Hi, good afternoon, Thanks for taking my questions and congrats on the Q4.
Maybe just starting out I want to go back to the announcement you guys made on on Monday about the health systems and.
Just a couple of things one is that included in the guide Im assuming thats. The diagnostics portion that you are not including and two how do you think about one sort of the timing of that revenue coming through.
Masoud Toloue: I'm assuming that's the diagnostics portion that you're not... And two, how do you think about, one, sort of the timing of that revenue coming through, and the other point is... In terms of the mix, I know you had said it could be instruments and assays. Accelerator Lab, how are you thinking about the potential mix of that partnership over there, and I've got a follow-up. Hey, Matt.
The other point is.
In terms of the mix I know you had said it could be instruments assays.
The accelerator lab.
How are you thinking about the potential mix of that partnership over time.
And I've got a follow up.
Hey, Matt.
Masoud Toloue: So, yeah, I think the partnership announcements we had a couple days ago were super exciting. And, you know, it did two things. One, note the versatility of our offering is twofold. First, we're able to offer the platform and the testing, the 217 test, and enable hospitals to do their own testing. But at the same time, we're also enabling access to our accelerator lab, where hospitals or physicians can send samples to the LUCENT lab, and we're able to offer services there. So it's a really unique offering, and we're able to keep in touch with neurologists and really stay up to date on the latest in what's happening. You're right in that this is diagnostic revenue that's not imputed in the guide or not put into the guide. Right now, we're not including guidance for diagnostics. And then from a, I mean, mixed perspective.
So yes, I think the partnership announcements, we had a couple of days ago with Super <unk>.
Sighting and.
Is it two things one.
No.
The versatility of our offering is twofold first.
We're able to offer the platform and.
Testing 217 tests and enable hospitals to do their own testing, but at the same time, we're also enabling access to our accelerator lab, where hospitals or physicians concerned examples too.
The.
Lucent lab, and we're able to offer services there. So it's a really unique offering.
And we're able to keep in touch with neurologists and really stay up to date on the latest of what's happening.
And that this is diagnostics.
Revenue, that's not imputed in the guide or not put into the guide.
Right now, we're not including guidance for our diagnostics.
And then from a mix perspective.
Masoud Toloue: Are you referring to the mix of Test Standout versus EnableBlinds or some other? Yeah, that mix, but sort of, you know, how many do you expect to buy instruments, do it themselves, how many do you think we'll send out to you? Where do you think the bulk of the revenues could come from for the... Yeah, that's a good question. I mean, the five that we listed, there are different, you know
Are you referring to the mix on test send out versus <unk>.
Enable brands or some other yeah.
Yes, yes.
That mix, but sort of.
How many do you expect to buy instruments do it themselves. How many do you think it will send out to you.
Or do you think the bulk of the revenues could come from for this partnership.
Yeah. That's a good question I mean, the five that we.
Lifted.
Theres different.
Masoud Toloue: So some of them are going to start sending out tests as they're putting together a platform and getting their test up and ready at their own laboratory. And then, you know, some want to offer testing right off the bat with our platform. So it's a little bit of a mix.
It ranges. So some of them are going to start as test send out as they're putting together a platform and getting their test.
Up and ready in their own laboratory and then some.
Ill for testing right off the bat with our platform. So it's a little bit of mix.
Vandana Sriram: Still early to get a good sense of how that's going to shake up for the year. Got it. Vandana, maybe some color on the balance of sort of consumer versus instrument versus lab services within that 2024 guide. How do you see that kind of shaking?
Still early to get a good sense of how that's going to shake out for the year.
Got it and then.
Vincent I would just.
Maybe some color on the balance of sort of consumable versus instrument versus lab services within that 2024 guide how do you see that kind of shake out I know you made some comments on the capital equipment environment, which are all very well aware of but just any any color on what you perceive to be that mix shift over the course of the year.
Vandana Sriram: I know you made some comments and the Capital Equipment Environment, which we're all very well aware of, but just any color on what you perceive to be that makeshift over the course of the year. Yeah, so at this point, we're really looking at 2024, you know, at least in the first half, being very similar to the mix that we saw in 2023. So still expecting to start the year with some amount of constraints on the instrument side. But again, we're seeing really, really good demand on the accelerator side. We have a lot of interest and a lot of, I'd say, quoting activity going on right now for accelerators. So we continue to see accelerators be really strong, and consumables also coming out pretty strong.
Yes. So at this point, we're really looking at 2020 for at least the first half being very similar to the mix that you saw in 2023, so still expecting to start the year with some amount of constraints on the instrument side, but again really really good demand on the accelerated side, we have a lot of interest in.
A lot of quoting activity going on right now so accelerators. So we continue to see explorations be really strong and consumables also come out pretty strong now consumables. The initial part of the year will be all about converting customers to the new assays.
Vandana Sriram: Now, consumables, you know, the initial part of the year will be all about converting customers to the new assets. So we expect there to be some transition period there where we will have to support customers on the older ad sales and then eventually bring them on to the new ad sales. So there might be some amount of sloppiness in that first quarter as we get through that, but from that point onwards, we expect consumables growth to be really slow.
So we expect there to be some transition period, there, where we will have to support customers on the older assets and then eventually bring them onto the new assays. So there might be some amount of choppiness in that first quarter as we get through that but from that point onward, we expect our consumable growth should remain steady.
Matthew Carlisle Sykes: Thank you very much. Thank you. And one moment as we move on to our next question, and our next question is going to come from the line of Puneet Souda with Lerink Partners. Your line is open.
Got it thank you very much.
Thank you and one moment as we move on to our next question.
And our next question is going to come from the line of Puneet <unk> with Leerink partners. Your line is open. Please go ahead.
Puneet Souda: Please go ahead. Yeah, hi Masoud, thanks for taking the question. So a couple of questions here, maybe first on, you know, just FDA submission, what does that look like? And the timing of approval for P-Tau 217, what sort of traction you're seeing there? And should we assume that that will be as one of the standalone tests, or would it be a multi-marker test that comes out of, you know, FDA? I recognize it's 217 at the LBP already. So just want to understand sort of how you're contemplating FDA approval for the product, and then I have a follow-up. Yeah, hey Puneet, thanks for the question. 2.17. As you said, it's already in LDT.
Yes, hi.
Thanks for taking the question.
So a couple of questions here, maybe first on.
Just FDA submission.
What does that look like and the timing of approval.
Two to 17, what sort of traction you're seeing there.
And should we assume that that will be.
One of the Standalone test or it would be a multi marker test that comes out of.
FDA I recognize its 2017 at the LPT already so just wanted to understand sort of.
How are you contemplating.
FDA.
<unk> for the product and then follow ups.
Yes.
Thanks for the question so.
217, as you said, it's already in the LDP, we've committed to submitting the <unk> biomarker to the FDA.
Masoud Toloue: We've committed to submitting the 2.17 biomarker to the FDA this year. We've begun some discussions. All of our clinical trials, all the prospective trials that we're running are designed to get additional data and validation for an IBD submission on 2.17. And that's something we're going to do this year.
This year, we began some discussions all of our clinical trials are the prospective trials that we're running are.
Designed to get additional data and validation for IBD submission until 2017, and that's something we're going to do this year and from a multi marker standpoints. We've also said that in 'twenty four would release a multi marker ODT.
Masoud Toloue: And from a multi-marker standpoint, we've also said that in 24, we'd release a multi-marker LDT, as well as then, in the future, do something on IBD for a multi-marker. But from a sequencing standpoint, we have the 2.17 LDT today, FDA IBD submission, multi-marker LDT, and then subsequent submission for that. And so the BioHermes, the Kentade, and then a couple of the... New collaborations we're working with now all provide clinical evidence development for not just IVD but reimbursement in the future. Okay, that's helpful. And then maybe, you know, a bigger question here is, based on the feedback that you're getting in from the field already, can you talk a little bit about, you know, how you see the adoption for the 217 LDT? I know you have commercial folks out there already and collaborations with some of the larger centers.
As well as then in the future.
Do something on IBD for multi marker, but from a sequencing standpoint, we have the 217 LDC today.
FDA IBD submission multi marker LPT and then subsequent submission for that and so the bio Hermes.
And then a couple of.
New collaborations we're working with now all provide clinical evidence development for not just IBD, but reimbursement in the future.
Okay. That's helpful and then maybe.
Bigger question here is.
Based on the feedback that you're getting from the field already.
Can you talk a little bit about.
How do you see the adoption of <unk> for the 217, LDP I know you're a commercial.
The folks out there already in collaborations with some of the larger centers.
Masoud Toloue: I think the bigger question here is, you know, with Likimbi and non-MMAB expectations for the street have come down, they have settled, but I'm just trying to get a view as to what you're hearing versus whether we should look to drug adoption to see how things trend. Yeah, I think drug adoption is, it's hard to say exactly how this correlates, but I think drug adoption is probably a decent proxy for just testing patients. Now, that being said, when we are speaking to neurologists and these hospitals, one of the main things that comes up is just the demand and need for additional tools. And there, it's incredibly clear that, I mean, the data speaks for itself that the 217 test is superior to any other biomarkers out there. And if you're doing a study and you want to look at a patient at the very early stages and monitor them over a period of time, you need a solution that's going to be able to look at levels that are fairly low and require high sensitivity all the way through the life cycle as blood levels of this 217 increase.
I think the bigger question here is.
It can be done and that expectations for the street.
Have come down that settled.
But should.
Trying to get a view as to what Youre hearing versus.
Should we look to the drug or the option to see.
How things trend.
Yes, I think drug adoption is.
It's hard to say exactly how this correlates, but I think drug adoption is probably a decent proxy for.
We're just testing patients now that being said.
There is.
We are speaking to neurologists.
And these hospitals one of the.
Main things that comes across is just the demand and need for additional tools and they're incredibly clear that the data speaks for itself that the 217 tests the superior.
Any other other biomarkers out there.
And we're doing a study and you wanted to look at a patient at the very early stages and monitor them over a period of time you.
Need a solution that's going to be able to look at levels that are fairly low and they're very high sensitivity.
All the way and the lifecycle is blood levels of this 2017 increase and so that's clear and that's what we're hearing.
Masoud Toloue: And so that's clear, and that's what we're hearing. There's also, recall that a good part of our business is clinical trials. You know, doing additional, having additional efforts with pharma companies that are looking at combinatorial therapies, other Alzheimer's therapies, and we expect that to have a research tailwind, as well as more and more clinical trials. So from a patient measurement perspective, I think drugs are a decent proxy. We'll follow that, and we'll have more information as the year goes on, but we think that with these new therapies, it's just the start for Alzheimer's.
There is also.
Recall that a good part of our business is clinical trial work.
Doing additional having additional efforts with pharma companies that are looking at a company <unk> therapies other.
<unk> therapies, and we expect that to have a research tailwind.
Well.
More and more clinical trials, so from a patient measurement perspective, I think drugs are a decent proxy will fall that and we'll have more information as the year goes, but we think that.
With these new therapies is just the start for Alzheimer's.
Masoud Toloue: And then just my last one on the REO technology that you talked about the multi-channel lossless resolution, can you just remind us what Plex you're targeting for that? Yeah, you know, we, I would say mid to low plex. I mean, one of the key guiding principles of Quanterix is that we're very translational. So we're involved in identifying these markers, translating them, and supporting these markers for therapies and then eventually testing and diagnostics. And so, you know, you look at what or how you do that. It's usually anywhere from where we are today, you know, one to four or fiveplex to, you know, Unknown Speaker 2-3 times more than that. And anything more than that really becomes a discovery application, and we're more on the translation side.
Got it and then can you.
And my last one on.
The RVO technology that you talked about the multichannel lots less resolution.
Can you just remind us what flex you're targeting for that.
Yes.
I would say mid to low plex, I mean, one of the key.
Key.
Cutting principles.
Eric.
We're very translational so we're involved in identifying these markers.
And.
The translation of them support of these markers for therapies, and then eventually testing and diagnostics and so when you look at.
What are how you do that its usually anywhere from where we are today.
For <unk> <unk> two.
Two to three times more than that.
Anything more than that really becomes a discovery application in.
Masoud Toloue: So that's where we're focused when we look at Future Technology. Okay, I'll hop back into the queue. Thanks Puneet. Thank you, and one moment for our next question, please. And our next question is going to come from the line of Kyle Mikson with Canaccord Genuity. Your line is open; please go ahead.
We're more on the translation side, so that's where we're focusing.
When we look.
At.
Future technology.
Okay helpful I'll hop back into queue. Thanks.
Thanks, Bonnie Thank you and one moment for our next question. Please.
And our next question is going to come from the line of Mike <unk> with Canaccord Genuity. Your line is open. Please go ahead.
Kyle Alexander Mikson: Hey, thanks for the questions. Congratulations on the year. I want to ask a longer-term question for you, Masoud.
Hey, thanks for the questions and congrats on the year.
Ask a longer term question for you Masoud.
Kyle Alexander Mikson: And that is the path to reimbursement for the neurology test portfolio. I guess this is a multi-part question. So what's the current plan, you know, the plan to this point, including the CPT that's expected this year? Second, there are other companies with protein-based tests with Medicare coverage, but how does the recent Moldy X proteomics LCD kind of impact Quanterix possibly? And third, and finally, you know, you're not trying to get approval for Lucent AD PTEL 181.
And that is the path to reimbursement for the neurology test portfolio.
This is a multi part question. So what's the current plan the plan at this point, including the CPT that's expected in this year.
Second there is other companies with protein based tests with Medicare coverage, but how does the recent multi X proteomics youll see the kind of impact on terex, possibly.
And third and finally you.
Youre not trying to get Youre, not trying to get approval forward loosen ADP, Taiwan anyone but are you still trying to get reimbursement for that test like how it all this work for that particularly because that's more of a near term thing.
Masoud Toloue: But are you still trying to get reimbursement for that test? Like how would all this work for that, particularly because that's more of a near-term thing? Thanks. Thanks, Kyle.
Thanks.
Masoud Toloue: Yeah, so from a reimbursement standpoint, as you stated, we're going to, we're seeking a CPT for our Alzheimer's blood biomarker, specifically the 217 protein. It's now really abundantly clear that 217 is the superior marker versus 181. So a lot of our focus has shifted to 217 when it comes to testing. That being said, 181 is still available in the LDT, and there's a lot of interest in clinical trial work for 181, so that's still there. But from a reimbursement standpoint, we've put some of our focus on 217. Now, that's the first step.
Thanks, Kyle yes, so from a reimbursement standpoint, as you stated we're going to we're seeking a CPT.
For our Alzheimer's blood biomarker, specifically the 217 protein, it's now really abundantly clear that 2017, and the superior marker versus 181, so a lot of our focus has shifted.
On 2017, when it comes to testing that being said when everyone is still available at the LDC.
There is a lot of interest in clinical trials.
For <unk>, one and so that's still there but from a reimbursement standpoint, we've put some of our focus.
On 2017 now.
Masoud Toloue: And then, you know, as we do all this work with this prospective study and our collaboration with BUMC and Kantare, and the goal there is a multi-marker algorithm. So, several markers together that could provide a differential diagnosis and maybe potentially sensitivities that could be greater than any single biomarker. And then that's its own reimbursement schedule. Okay, and from from, yep, from your question, all the X, we like that. We were super pleased that these multi-marker algorithms were picked up. Multi x is obviously well respected. And that read through was very important.
The first step and then.
We're doing all this work with <unk>.
Perspective study in collaboration with UMC on Kentucky.
There is a multi marker algorithm. So several markers together that could provide a differential diagnosis.
And maybe potentially sensitivities.
It could be greater than any single biomarker and then that's the tone.
Reimbursement schedule.
Okay. That's helpful.
Yes.
Question <unk>.
That was.
We were super pleased that these multi marker.
Algorithms are picked up multi exited obviously well respected.
Pat.
Read through was very important and we think it's important for the field and validates.
Kyle Alexander Mikson: We think it's important for the field and validates that background. Perfect. Thanks a bunch. Um, just actually another one on, I guess, I guess diagnostics, just confirm first, just confirm, please, if the 217 test has enough data for the approval and for reimbursement. I know you got the cantata and Hermann's. Um, is that that could be enough? Do you think?
Validates that path Rob.
Perfect. Thanks, a bunch.
Another one on I guess I guess diabetics just confer first just confirm please if the Q17 test has enough data for.
For the approval for reimbursement and I know you got the cantata by Hermes does that that could be enough to Iraq and one for Joe and then.
Masoud Toloue: And one for Vandana? We are very confident with the 217 results we've published a white paper with a lot of some results that we have on biohermes and the Amsterdam cohort together. And so when you combine those two cohorts, we looked at something over 850 patients, and, you know, we had sense and spec above 90% across the board with accuracy that rounded up to around 91%. So we think the data for 2017 is solid. Great. And the final one for Vandana. I think that I think the guidance is something like maybe 10 to 15 or so million for assume for diagnostic spending for investment in 24. That means, I think it's about 5 million for 25.
All right.
Very confident with the $2 17 results, we've published a white paper with a lot of.
Some interest with some results that we have by Hermes that asked.
I am cohort together and so when you combine those two cohorts we've looked at something over 850 patients.
We had some since back above 90% across the board with accuracy that rounded up to around 91%. So we think the data for 2017 itself.
Great and final one for London.
I think that back into the guidance is something like maybe 10 to 15 or so million for assumed for diagnostics spending for investment and 24 that means I think its about $5 million for 25, if you could just walk through how you.
Vandana Sriram: If you could just walk through, you know, how you're allocating diagnostic investment specifically, that would be interesting to hear for the next, I guess, two years. And then, secondly, you know, if you got, just hypothetically, if you got any diagnostic revenue this year, would that come in at a negative gross margin? Thanks. Yeah, so on diagnostics, we had signaled earlier that we would spend a total of approximately 20 million between 24 and 25. For 2024, most of that spend is on the commercial side.
Youre allocating diagnostic investments specifically that would be interesting to hear for the next two years and then secondly, if you.
Just hypothetically if you get any diagnostic revenue this year with that coming out of the negative gross margin.
Yeah. So on diagnostics, we had signaled earlier, but that could be with spend a total of approximately $20 million between 2425 for 2020 for most of that spend it on the commercial side. So it won't be a quantity onboarding team that happened.
Vandana Sriram: So we've already onboarded our team that happened last year, so we have a full year of costs for that team, as well as everything that's needed to really get the message out and to get the right traction around the company. There will be some amount of infrastructure costs, you know, to get billing ready and all those kinds of things, but it's primarily, you know, getting feet on the street and getting that going. And then, you know, similarly for 2025, we expect the cost to be along those lines, really more to support what it takes to get the reach of the test out. We think we have enough capacity accelerators. We don't think they're much more needed from a footprint perspective.
We have a clear path for that team as well as everything that's needed to get the message out and to get the right traction.
Traction is on the capacity.
Some amount of infrastructure cost to get billing ready and all those kinds of things, but primarily getting feet on the street and getting.
That quake.
And then similarly for 2025, we expect the cost will be along those lines relate more to support what it takes.
To get the reach of the desktop we think we have enough capacity accelerators. We don't think that's much more needed from a footprint perspective.
Vandana Sriram: Having said that, you know, one thing I do want to add is that we're somewhat fortunate that we have a strong balance sheet. So we're going to pace the diagnostics opportunity as it develops. You know, if it moves faster and it's worthwhile to spend more money on it, we'll move a lever. If it's moving slower and we need to pull back, we can do that as well.
<unk> said that the one thing I do want to add.
We're somewhat fortunate that we have a strong balance sheet. So we're going to pace the diagnostics opportunity as demand if.
If it moves faster and it's worthwhile to spend more money on it.
If it is moving forward and we need to pull back.
Kyle Alexander Mikson: So we'll continue to pace this, but this is kind of a broad framework for now. And then, to your question on margin and diagnostics, we don't expect margin at this stage to be negative or overly dilutive to our portfolio, but we just don't know enough about it right now. So, as we gather more information, and as we start to see more come back in, we'll have a better sense of what. OK, that's awesome. Thanks guys. Thanks, Carol.
So we continue to face this but this is kind of a broad framework for now.
And then to your question on margin on diagnostics, we don't expect the margin at this stage to be native large overly dilutive to our portfolio, but we just don't have enough about it right now so as we gather more information as we start to see more so I'll come back and you have a better sense of partnership.
Sure.
Okay. Okay. That's awesome thanks, guys.
Operator: Thank you, and one moment as we move on to our next question. And our next question is going to come from the line of Sungjee Nam with Scotiabank. Your line is open.
Thanks Kyle.
And one moment as we move on to our next question.
And our next question is going to come from the line sung <unk> Nam with Scotiabank. Your line is open. Please go ahead.
Sungjee Nam: Please go ahead. Hi, thanks for taking the questions. So just on the Kintate and Bioharmy studies, you touched on a little bit, but could you kind of elaborate on what are the endpoints being measured? Or what questions are being asked for the phase one of the trial? And then what are the next steps for both trials? Hey, Sanjay.
Alright, thanks for taking the questions.
So just on the the Kentucky and bio Hermes studies, you touched on it a little bit but could you kind of elaborate on what are the endpoints being measured or what what questions are being asked for.
For the phase one of the trial and then.
What's the what are the next steps for both first trials.
Masoud Toloue: So the, you know, clinical sample sets that we look at include patients with MCI and AD dementia. And that's, you know, through the Amsterdam Dementia Cohort. And then we recruited, there was recruitment of individuals with MCI and mild AD in the Biohermes trial. So the ADC or the Amsterdam Cohort, you know, our memory clinics, where they looked at CSF, and then the Biohermes, they had PET for am
Hey, Sanjay so the clinical sample sets that we look at include patients with Mci and 80 dementia and Thats.
To the Amsterdam debenture cohort and then we recruited.
Recruitment of individuals with Mci and mild 80% and the buyer Hermes trial. So.
The ADC or the Amsterdam cohort are memory clinics, where they looked at CSF and then the bio Hermes.
He had pets for amyloid status so each of those patients received.
Masoud Toloue: So each of those patients received CSF, and pets, and they were compared to our test from a diagnostic standpoint. Unknown Speaker Then, using those, we established clinical thresholds and came up with the specifications of our platform for our test. And so that's phase one. And then what we're doing in the second phase for Qantare, we're enrolling patients for memory centers, prospective patients for memory centers to be able to look at this in a multi-marker setting. So that, you know, going beyond just a single marker but testing four markers or five markers at once.
Yes separate pets and they were compared.
<unk>, our test from a diagnostic standpoint.
And then using those we established clinical thresholds.
Came up with the specs of.
Our platform of our test and so that's.
Is one and then.
What we're doing is on the second phase before Kentucky, where.
Enrolling patients.
Four.
At memory centers prospective patient for memory centers.
To be able to look at this on a multi marker setting.
Going beyond just single marker, but.
Testing.
For Marcus <unk>.
Masoud Toloue: Gotcha, thank you. And then, just to be curious, I mentioned in the press release that Eli Lilly was launching their PTOS 217 blood-based diagnostics on the Quanterix platform. Are they using other platforms as well? Or are they pretty much just solely using the Simoa platform for now? Yeah, we're only aware of the Samoa platform for their 217 diagnostic tests, and I published some very interesting data at the last conference. It was a Nike poster presentation that they had.
<unk> markers at once.
Gotcha. Thank you.
Then.
Just was curious you mentioned in the press release that Eli Lilly launching their detailed 2017 blood based diagnostics on the.
<unk> platform are they using other platforms as well or are they pretty much just solely using the similar platform for now.
Yes, we are only aware of some old platform for their 2017 diagnostic test.
Published some very interesting data at the lost contracts.
Poster presentation that they have.
Masoud Toloue: So that's, that's all we're aware of. Got it. And then, just lastly, on the new platform under development, the increases in plex, plexity, is that based on the simola platform or the planar array platform? Or is it something totally different?
So that's all we're aware of.
Got it and then just lastly on the new platform under development.
The increase is a flex park city.
Is that based on the similar platform or the planar array platform or is it something totally different.
Masoud Toloue: Yes, it's based on the Samoa technology and the Samoa platform. So it has single-molecule resolution but, you know, lossless sensitivity across multiple channels. So typically, when people look at things and you start to multiplex, you lose resolution as you add plexes. And so our goal with high sensitivity and precision for these, you know, key body markers is to make it lossless. And so it's based on that platform, which involved, you know, the original technology which was invented in the Walt lab.
Yes.
Based on.
On the similar technology and similar platform. So it's the.
Single molecule resolution.
But lossless.
Sensitivity across multiple channels. So typically when people look at things then you start to multiplex you lose resolution as you add.
And so our goal with high sensitivity.
In precision for these key biomarkers.
To make it lossless and so it's based on that.
Platform involves.
The original technology, which was invented.
Masoud Toloue: Got it. Thank you so much. Thanks, Benji. Thank you. And as a reminder, if you would like to ask a question at this time, please press star 11 on your telephone. One moment.
The wealth lab.
Got it thank you so much.
Thanks Sanjay.
Thank you.
<unk>, if you would like to ask a question at this time. Please press star one on your telephone.
Matt.
Operator: I'm showing no further questions. This is going to conclude today's question and answer session. This is also going to conclude today's conference call. Thank you for watching!
Im showing no further questions. This does going to conclude today's question and answer session.
This is also going to conclude today's conference call.
Yes.
Okay.
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Okay.
Okay.
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