Q1 2024 MaxCyte Inc Earnings Call

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Operator: Good day, and thank you for standing by. Welcome to the MaxCyte First Quarter 2024 Earnings Conference Call.

Good day and thank you for standing by welcome to the Mack site first quarter 'twenty 'twenty four earnings conference call. At this time all participants are in listen only mode. After the speaker's presentation. There will be a question answer session to.

Operator: At this time, all participants are in 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 11 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Eric Abdaal, Investor Relations. Please go ahead.

Operator: To ask a question on the session you will need to press star one wanting a telephone you will then hear an automated message advising your hand is raised.

Operator: Your question. Please press star one again please.

Eric Abdaal: Please be advised that today's conference is being recorded.

Eric Abdaal: I'd now like to hand, the conference over to your Speaker today, Eric Abdel Investor Relations.

Eric Abdaal: Please go ahead.

Eric Abdaal: Good afternoon, everyone. Thank you for participating in today's conference call. On the call from MaxCyte, we have Maher Masoud, President and Chief Executive Officer, and Douglas Swirsky, Chief Financial Officer. Earlier today, MaxCyte released financial results for the first quarter ended March 31, 2024.

Eric Abdaal: Good afternoon, everyone. Thank you for participating in today's conference call on the Gulf of Mexico, We Havent, the hemispheres, President and Chief Executive Officer, and Douglas Swirsky, Chief Financial Officer.

Eric Abdaal: Earlier today <unk> released financial results for the first quarter ended March 31, 2020 for a copy of the press release is available on the company's website before.

Eric Abdaal: A copy of the press release is available on the company's website. Before we begin, I need to read you the following statement. Statements or comments made during this call may be forward-looking statements within the meaning of federal securities laws. For example, any statements contained in this call that relate to expectations or predictions of future events, results, or performance are forward-looking statements. Actual results may differ materially from those expressed or implied in any forward-looking statement due to a variety of factors which are discussed in detail in our SOC file. The company has no obligation to publicly update any forward-looking statements, whether because of new information, future events, or otherwise. And with that, I will turn the call over to Maher.

Eric Abdaal: Before we begin I need to read the following statement statements or comments made during this call maybe forward looking statements within the meaning of federal Securities law.

Eric Abdaal: Any statements contained in this call that relate to expectations or predictions of future events results or performance are forward looking statements actual results may differ materially from those expressed or implied in any forward. Looking statements. You are a variety of factors, which are discussed in detail on our SEC filings.

Maher: The company has no obligation to publicly update any forward looking statements, whether because of new information future events or otherwise.

Maher: That I will turn the call over to him or her.

Maher Masoud: Thank you, Eric. Good afternoon, everyone, and thank you for joining MaxCyte's first quarter 2024 earnings goal. MaxCyte reported $11.3 million of total revenue in the first quarter, including core revenue of $8.2 million and $3.2 million of SPL program-related revenue. We were pleased with the results in our core business, which delivered in line with our plan, along with SPL program-related revenue, which came in above our expectations. We're also thrilled with our progress in signing new SPLs, with four already signed in 2024, including D. Biopharma most recently.

Maher: Thank you Eric and good afternoon, everyone and thank you for joining <unk> first quarter twice way for our earnings call.

Maher Masoud: <unk> reported $1 three.

Maher Masoud: $3 million of coal revenue as first quarter and growing core revenue of $8 2 million and $3 2 million of SPL program related revenue.

Maher Masoud: We were pleased with the results in our core business, which delivered in line with our plan along with SPL program related revenue, which came in above our expectations. We're also thrilled with our progress in signing new Spl's with four already signed in 2024 and Couldnt be Biopharma most recently.

Maher Masoud: Following the first quarter, we remain on track to meet our financial projections for the year and are confident in the trajectory of the overall business. The operating environment for our customers remains largely unchanged from our last earnings call.

Maher Masoud: Following the first quarter, we remain on track to meet our financial projections for the year and are confident in the trajectory of the overall business.

Maher Masoud: The operating environment for our customers remain largely unchanged from our last earnings call. We believe the funding environment has improved as evidenced by the capital markets activity. During the first quarter, we have seen several existing and prospective SPL partners raised capital in recent months.

Maher Masoud: We believe the funding environment has improved, as evidenced by the capital markets activity during the first quarter. We have seen several existing and prospective SPL partners raise capital in recent months. Over the past couple of years, we saw cell therapy companies prioritize their lead programs and deprioritize other programs, resulting in variable levels of demand for instruments and PAs in 2023. Though there are fewer new self-help programs throughout the industry today due to program repriorization, we believe this has resulted in an industry focus on assets that are further along in their development or have a higher probability of making it to the clinic.

Maher Masoud: Over the past couple of years, we saw cell therapy companies prioritize our lead programs and prioritize other programs, resulting in variable levels of demand for our instruments NPA as a 2023.

Maher Masoud: Though there are fewer new cell therapy programs throughout the industry today due to program re prioritization. We believe this has resulted in an industry focus on assets that are further along.

Maher Masoud: Development or have a higher probability of making it to the clinic.

Maher Masoud: Additionally, MaxCyte's late-stage preclinical and early-stage clinical customers, who have re-evaluated their programs over the past couple of years, continue to utilize our platform for their lead programs. We are becoming increasingly optimistic about the market outlook for cell therapy developers and continue to assess industry demand levels based on direct conversations with our existing and prospective customers. The time frame from when a customer secures funding to when they make research and clinical spending decisions can take time, and our business is not directly correlated with the level of funding in any given quarter.

Maher Masoud: Additionally, <unk> late stage preclinical and early stage clinical customers, who have reevaluate their programs over the past couple of years continue to utilize our platform for their lead programs. We are becoming increasingly optimistic on the market outlook for cell therapy developers continue to assess industry demand levels based on direct conversations with our existing and prospective cut.

Maher Masoud: <unk>.

Maher Masoud: The timeframe from when a customer secured funding to when they make research and clinical spending decisions can take time and our business is not directly correlated with the level of funding in any given quarter.

Maher Masoud: General trends in the non-viral cell therapy market continue to bode well for the use of our expert platform. Companies continue to pursue more complex cell therapies across a variety of different indications with multiple engineering steps, which MaxCyte's electropressure technology is well equipped to deliver.

Maher Masoud: General trends in the non viral cell therapy market continue to bode well for the use of our extra platform companies continue to pursue more complex cell therapies across a variety of different indications with multiple engineering steps, which maximizes electric pressure technology is well equipped to deliver.

Maher Masoud: Looking specifically at the quarter, the core business performed as expected across cell therapy and drug discovery. We saw a return to growth in our cell therapy business compared to last year's first quarter, and we were relatively flat in drug discovery revenue compared to last year. Doug will cover that in more detail, but I will point out that our installed base of instruments expanded to 708 as of March 31st, 2024.

Maher Masoud: Looking specifically at the quarter the core business performed as expected across cell therapy and drug discovery, we saw return to growth in our cell therapy business compared to last year's first quarter and were relatively flat in drug discovery revenue compared to last year, Doug will cover that in more detail, but I will point out there our installed base of instruments expense of 708 as of March.

Maher Masoud: We executed well against our pipeline of instrument opportunities in the first quarter and are positioned as planned for the remainder of the year. For PAs, revenue is up from the comparable prior-year period and improved sequentially from the fourth quarter of 2023. The PA growth that we experienced was reflective of broad base demand across the customer base, and we were very encouraged to see an uptick in our PA revenue compared to 2020. The ACLs are dependent upon the activity level of each customer. Stages Development Programs, and Desired Inventory Levels at Customs, all of which can result in a man that can be lumpy from one quarter to another.

Maher Masoud: <unk> 2024, we executed well against our pipeline of instrument opportunities in the first quarter and our position as planned for the remainder of the year.

Maher Masoud: <unk> revenue was up from the comparable prior year period and improved sequentially from the fourth quarter of 2023.

Maher Masoud: The growth that we experienced was reflective of a broad based demand across our customer base and we were very encouraged to see an uptick in our <unk> revenue compared to 2023.

Maher Masoud: VA sales are dependent upon the activity level of customers stage of development programs and desired inventory levels at customers all of which can result in demand that can be lumpy from one quarter to another.

Maher Masoud: Turning to our SPLs, we recognized $3.2 million of SPL program-related revenue in the first quarter of 2020. This included a regulatory pivotal milestone that we did not originally forecast for 2024. We have raised our guidance for the SPL program-related revenue line to account for this milestone, which Doug will address in more detail. Accomplishment of this previously non-forecasted regulatory pivotal milestone underlies the strength of our business model. As our therapeutic development customers move further into the clinic, we are positioned to receive revenue from milestone achievements on occasion sooner than anticipated. So far in 2024, we have signed four SPLs, including B-BioPharma, Wusion, Imogene, and Lyme-CCR.

Maher Masoud: Turning to our Sps, we recognized $3 $2 million of SPL program related revenue in the first quarter of 2024.

Maher Masoud: This included a regulatory pivotal milestone that we did not originally forecast for 2024, we have raised our guidance for the SPL program related revenue line to account for this milestone, which Doug will address in more detail.

Maher Masoud: Accomplishment the previously non forecasted regulatory pivotal milestone underlines the strength of our business model as our therapeutic development customers move further into the clinic, we are positioned to receive revenue from milestone achievement on occasion sooner than anticipated.

Maher Masoud: So far in 2024, we have signed for SPL, there couldnt be Biopharma collusion imaging Alliance ECR.

Maher Masoud: Our most recently signed SPL that we announced in April, B-BioPharma, is developed in a proprietary class of engineered B-cell medicines, BCMs, designed to produce therapeutic proteins specific to a certain disease. MaxCyte's platform will support the development of bBio's BCM programs to address unmet needs of patients with genetic diseases, cancer, and more. The addition of bBioPharma brings the total number of SPLs in our portfolio to 27, which further showcases our position as a partner of choice with technology capability across multiple cell types for cell and gene innovators.

Maher Masoud: Most recently signed Spo that we announced in April <unk> Biopharma has developed a proprietary class of engineered T cell medicines BCS designed produced therapeutic protein specific to certain disease.

Maher Masoud: <unk> platform of support the development of <unk> bcm programs to address unmet needs of patients with genetic diseases cancer and more. The addition to <unk> Biopharma brings the total number of Sps on our portfolio to 27, which further showcases our position as the partner of choice for technology capability across multiple cell types to cell and gene innovators.

Maher Masoud: Moreover, we remain excited about the commercial opportunity of Cash Jevy. Cash Chevy has been approved for certain indications in the United States, Great Britain, the European Union, Saudi Arabia, and Bahrain, with a new drug submission that has been accepted for prior review by HealthCat.

Maher Masoud: Moreover, we remain excited about the commercial opportunity of cash JV.

Maher Masoud: Cash JV has been approved indications in the United States, Great Britain European Union, Saudi Arabia, and Bahrain with a new drug submission has been accepted for priority review by Health Canada.

Maher Masoud: As a reminder, and as stated on our last earnings call, MaxCyte will only recognize revenue once a patient has been effused, which can take a number of months from the time a patient enrolls in the therapy program. We do not have sufficient visibility into the timing of patient dosing and therefore continue to exclude any CAST-GEVI-related commercial milestone revenue in our updated 2024 Outlook for SPL program-related revenue. We will provide updates on CAST-GEVI as they come from birth.

Maher Masoud: As a reminder, and as stated on our last earnings call. Max I will only recognize revenue once a patient has been infused which can take a number of months from the time, a patient rolls into therapy program.

Maher Masoud: We do not have sufficient visibility to the timing of patient dosing and therefore continue to exclude any cash to every related commercial milestone revenue and our updates Raceway for outlook for SPL program related revenue, we will provide updates on cash savvy as they come from vertex.

Maher Masoud: The current and prospective client relationships that we have built and fostered are truly unique and reflective of our platform's value proposition. At MaxCyte, we pride ourselves not only on our proven electrification technology but on the differentiated support that we provide for our customers. We are present throughout the entirety of our customers' programs once they begin utilizing our platform. Our support system includes scientific customer service from our 36-plus trained field sales and application scientists who provide customer research and development support.

Maher Masoud: The current and prospective client relationships that we have built and fostered a truly unique and reflective of our platform's value proposition.

Maher Masoud: And Max that we pride ourselves not only on our proven electrification technology around differentiated support that we provide to our customers. We are present throughout the entirety of our customers' programs. Once they begin utilizing our platform. Our support system include scientific customer service from our 36, plus trained field sales and application scientists to provide customer research and development support.

Maher Masoud: As part of our SPL relationships, clients have access to our FDA Drug Master File, which can help with regulatory understanding of the manufacturing process required for approval and help de-risk one part of the manufacturing process for our SPL customers.

Maher Masoud: As part of our ESCO relationships clients have access to our FDA drug Master file, which can help with regulatory understanding of the manufacturing process required for approval and help derisk one part of the manufacturing process for SPL customers. The expert platform and service that we offer to our clients is truly an all encompassing end to end solution. We believe our value proposition is.

Maher Masoud: The expert platform and service that we offer to our clients is truly an end-to-end solution. We believe our value proposition has resonated well with existing customers and will drive substantial opportunity for MaxCyte over the long term. This quarter and over the course of 2024, we continue to deliberate evaluate and improve our business. We are focused on investing in our business to drive growth and to best support the programs of our current and future clients.

Maher Masoud: Well with existing customers and will drive substantial opportunity for <unk> over the long term.

Maher Masoud: This quarter and over the course of 2024, and we continue to deliberately evaluate and improve our business.

Maher Masoud: We are focused on investing in our business to drive growth and to best support the programs of our current and future clients, notably we are investing in additional customer support for our <unk> clients and are working towards ensuring we are working with customers earlier in their development.

Maher Masoud: Notably, we have invested in additional customer support for our SPL clients and are working towards ensuring that we are working with customers early in their development and providing them with the best knowledge-based application in the process. In summary, we are very pleased with our first quarter results and believe that we remain in a strong position to deliver our 2024 plan. As the cell therapy industry continues to move towards non-viral cell engineering approaches, I'm very optimistic about the opportunity for MaxCyte, both in the near term and long term, as the premier cell engineering platform. With that, I'll now turn the call over to Doug to discuss our financial results. Doug

Doug: And providing them with the best application of that process.

Doug: In summary, we are very pleased with our first quarter results and believe that we remain in a strong position to deliver our 2024 plan.

Maher Masoud: As a cell therapy industry continues to move towards non viral cell engineering approaches I am very optimistic about the opportunity for Mac site. Both in the near term and long term at the Premier cell engineering platform with that I'll now turn the call over to Doug to discuss our <unk> results Doug.

Doug: Thanks, Maher. Total revenue in the first quarter of 2024 was $11.3 million compared to $8.6 million in the first quarter of 2023, representing an increase of 32%. We reported core revenue of $8.2 million compared to $7.8 million in the comparable prior quarter, representing an increase of 5%. This includes revenue from cell therapy customers of $6.4 million, which increased 7% year-over-year, and revenue from drug discovery customers of $1.8 million, relatively flat year-over-year.

Doug: Thanks, Bahir total revenue in the first quarter of 2024 was $11 3 million compared to $8 6 million in the first quarter of 2023, representing an increase of 32%.

Doug: We reported core revenue of $8 2 million compared to $7 $8 million in the comparable prior year quarter, representing an increase of 5%. This includes revenue from cell therapy customers of $6 4 million, which increased 7% year over year and revenue from drug discovery customers of $1 8 million relatively flat year over year.

Doug: Within core revenue, instrument revenue was $1.9 million compared to $2.2 million in the first quarter of 2023. Lease revenue was $2.6 million compared to $2.8 million in the first quarter of 2023, and processing assembly or PA revenue was $3.4 million compared to $2.6 million in the first quarter of 2023. We are pleased with the strong performance of PAs, which was a little better than planned, which we will continue to monitor as we move through the course of the year. Please note we have added an appendix slide to our corporate presentation with the new quarterly historical disclosure for these new metrics.

Doug: Within core revenue instrument revenue was $1 9 million compared to $2 2 million in the first quarter of 2023.

Doug: Lease revenue was $2 6 million compared to $2 8 million in the first quarter of 2023 and processing Assembly or <unk> revenue was $3 4 million compared to $2 6 million in the first quarter of 2023.

Doug: We are pleased with the strong performance of <unk>, which was a little better than planned which will continue to monitor as we move through the course of the year. Please note. We have added an appendix slide to our corporate presentation with the new quarterly historical disclosure or these new metrics.

Doug: We recognized 3.2 million of SPL program-related revenue in the first quarter of 2024 compared to 0.8 million of SPL program-related revenue in the first quarter of 2023. We exceeded our initial milestone expectations for the first quarter driven by a regulatory pivotal milestone that we had not forecasted or anticipated in 2024 due to a positive timing development at one of our SPL customers. Moving down the P&L, gross margin was 88 percent in the first quarter of 2024, which was comparable to 88 percent in the first quarter of the prior year. However, our margins came in lower than our historical levels over the past year when excluding SPL program-related revenue due to fixed overhead cost absorption.

Doug: We recognized $3 $2 million of SPL program related revenue in the first quarter of 2024 compared to <unk> $8 million of SPL program related revenue in the first quarter 2023.

Doug: We exceeded our initial milestone expectations for the first quarter driven by a regulatory pivotal milestone that we had not forecasted or anticipated in 2024 due to a positive timing development at one of our SPL customers.

Doug: Moving down the P&L gross margin was 88% in the first quarter of 2024, which was comparable to 88% in the first quarter of the prior year.

Doug: Margins came in lower than our historical levels over the past year, when excluding SPL program related revenue due to fixed overhead cost absorption, we believe that as we move closer towards previous revenue levels margins should improve.

Doug: We believe that as we move closer to previous revenue levels, margins should improve. Total operating expenses for the first quarter of 2024 were $22.2 million, compared to $20.8 million in the first quarter of 2023. The overall increase in operating expenses was primarily driven by growth in sales and marketing expenses, as well as R&D expenses with specific investments in product development and application know-how.

Doug: Total operating expenses for the first quarter of 2024 were $22 2 million compared to $20 8 million in the first quarter of 2023. The overall increase in operating expenses was primarily driven by growth in sales and marketing expenses as well as R&D expenses with specific investments in product development and application Knowhow.

Doug: Going forward, the company continues to be disciplined, making moderated and targeted investments to drive long-term growth, including in innovative product development and field application scientists and additional technological capabilities. We finished the first quarter with combined total cash, cash equivalents, and investments of $202.5 million and no debt. Moving to our full year 2024 guidance, we are reiterating our core revenue outlook and raising our initial SPL program related revenue guidance. Core revenue is expected to be flat to 5% growth compared to 2023.

Doug: Going forward the company continues to be disciplined, making moderated and targeted investments to drive long term growth, including an innovative product development and field application scientists and additional technological capabilities.

Doug: We finished the first quarter with combined total cash cash equivalents and investments of $202 5 million and no debt.

Doug: Moving to our full year 2024 guidance, we are reiterating our revenue outlook and raising our initial SPL program related revenue guidance.

Doug: Core revenue is expected to be flat to 5% growth compared to 2023.

Doug: As Maher discussed, our guidance assumes an operating environment for our customers that has remained largely unchanged from our prior earnings call. We now expect SPL program-related revenue to be approximately $5 million in 2024. The increase in our SPL program-related revenue outlook is a result of the unexpected regulatory pivotal milestone we achieved in the first quarter, which was previously not incorporated in our 2024 guidance. As a reminder, our 2024 outlook also does not include royalty revenue from TestJavi.

Doug: <unk> discussed our guidance assumes an operating environment, where our customers that has remained largely unchanged from our prior earnings call.

Doug: We now expect SPL program related revenue to be approximately $5 billion in 2024, the increase in our SPL program related revenue outlook is a result of the unexpected regulatory pivotal milestone we achieved in the first quarter, which was previously not incorporated in our 2020 for guidance.

Doug: As a reminder, our 2024 outlook also does not include royalty revenue forecast JV.

Doug: Finally, MaxCyte has maintained a strong financial position and continues to expect to end 2024 with at least $175 million in cash, cash equivalents, and investments, and no debt on our balance sheet. I would like to close by reiterating that we remain well-positioned to execute on our 2024 revenue outlook and remain laser-focused on managing our spend and balance sheet to deliver long-term growth. Now, I'll turn the call back over to Maher.

Doug: Finally, <unk> has maintained a strong financial position and continue to expect to end 2024 with at least $175 million in cash cash equivalents and investments and no debt on our balance sheet I.

Maher Masoud: I would like to close by reiterating that we remain well positioned to execute on our 2020 for revenue outlook and remain laser focused on managing our spend and balance sheet to deliver long term growth now I will turn the call back over to me here.

Maher Masoud: Thank you Doug.

Maher Masoud: Overall, we are very excited by our progress so far in 2020. We look forward to supporting our customers in their development stages as they progress through the clinic and remain committed to further expanding our SDEL platform. We believe that we continue to be the premier enabler of non-viral salt, and we would like to thank our MaxCyte team for their continued hard work.

Maher Masoud: Overall, we are very excited by our progress so far in 2024, we look forward to supporting our customers and their development stages as they progress through the clinic and remain committed to further expanding our NPL portfolio.

Maher Masoud: We believe that we continue to be the premier enabler of non viral cell therapies and we'd like to thank our <unk> team for their continued hard work with that I will turn the call back over to the operator for the Q&A operator.

Maher Masoud: With that, I'll turn the call back over to the operator for the Q&A. Operator? Thank you.

Operator: Thank you. As a reminder, to ask a question, please press star 1-1 on your telephone and wait for your name to be announced. To withdraw your question, press star 1 one again. Please stand by while we compile the Q&A. Our first question comes from the line of Dan Arias with Stiefel. Your line is now open.

Speaker Change: Thank you as a reminder to ask a question. Please press star one of your telephone and wait for your name to be announced to withdraw your question Press Star. One again, please standby, while we compile the Q&A roster.

Operator: Our first question comes from the line of Dan Arias with Stifel. Your line is now open.

Daniel Anthony Arias: Afternoon, guys. Thanks for the questions.

Daniel Anthony Arias: Afternoon, guys. Thanks for the questions here, maybe just talk about some of the components of the revenue.

Maher Masoud: Maher, maybe just to talk about some of the components of revenue. The revenue bullets for the quarter, PA revenues, up sequentially to your point. And so when we think about the rest of the year, and I hear you on your comments about there being lumpiness there, but it also seems like what you record there on the PA side is largely a function of activity and just project intensity, which I think you alluded to as well.

Daniel Anthony Arias: The revenue for the quarter PAA revenues up sequentially to your point and so when we think about the rest of the year and I hear you on your comments about there being lumpiness there, but it also seems like what you record there on the <unk> side is largely a function of activity and just project intensity, which I think you alluded to as well.

Maher Masoud: And so it feels like the funding environment is trending in the right direction. But is there a reason why PA revenues wouldn't continue to just push higher this year now that you're out of what is the choppiest quarter of the four?

Maher Masoud: So it feels like the funding environment is trending in the right direction is there a reason why revenue wouldn't continue to just push higher here across the year now that you're you're out of what is the choppiness quarter before.

Maher Masoud: Yeah, absolutely, Dan. So, you know, obviously, thank you for the question.

Maher Masoud: Yes, absolutely Dan. So obviously, thank you for the for the question, obviously, we're still holding steady in terms of our guidance for the year. We are still cautiously optimistic in terms of the rest of the year.

Maher Masoud: You know, obviously, we're still holding steady in terms of our guidance for the year. We're still cautiously optimistic about the rest of the year. But we're not pleasantly surprised.

Maher Masoud: We were not pleasantly surprised is what we expected coming out of last year. This is the ended last year. We saw some stabilization we're seeing it continue through the year.

Maher Masoud: That's what we expected coming out of last year. This is the end of last year. We saw some stabilization. We're seeing it continue through the year. It's a mix.

Maher Masoud: It's a mix it's broad based rates not just being related to necessarily one particular customer we see the that increase its across the customer base, we're seeing it.

Maher Masoud: It's broad-based, right? It's not just, you know, related to necessarily one particular customer where we see that increase. It's across the customer base. We're seeing it, but we're not ready just yet to, you know, in any way, increase revenues throughout the year. We're still, you know, seeing how the year plays out, but we're cautiously optimistic, Dan. Doug, anything else to add there?

Maher Masoud: But we're not ready just yet to any way increased revenues throughout the year, we're still seeing how the year plays out, but we're cautiously optimistic I mean, Doug anything else to add there.

Doug: No, I mean, we're, you know, I think we're pleased with how PA's were this quarter, but I think it's too soon to tell whether some of that's timing or whether we're going to have, you know, significantly higher, you know, PU revenue than we were expecting when we projected out the year. So we're holding our guidance constant at the levels we provided on the March call for revenue.

Doug: I think we're pleased with how <unk> were this quarter, but you think it's too soon to tell whether some of that is timing or whether we're going to have.

Doug: Higher revenue than we were expecting when we projected out the year. So we are holding our guidance constant alright at the levels. We provided on the March call for revenue.

Daniel Anthony Arias: Yep, okay, makes perfect sense. And then maybe at a higher level, Maher, can you just talk to the tone from customers that you're hearing right now?

Speaker Change: Yes, Okay makes perfect sense.

Daniel Anthony Arias: Then maybe just higher level can you just talk to the tone from customers are you hearing right now I mean, it does feel like there's a little bit of a cycle lease there just given where financing activities have gone over the last couple of months. So to your point on project prioritization are you starting to see things open up a little bit that maybe it felt like they were less likely to be worse.

Daniel Anthony Arias: Don.

Maher Masoud: A couple of months ago, or six to 12 months ago and can you just maybe talk about confidence that the industry is seeing what it needs in order to keep heading in this direction.

Maher Masoud: I mean, it does feel like there's a little bit of a side release there, just given where financing activities have gone in the last couple of months. So to your point on project prioritizations, are you starting to see things open up a little bit that maybe felt like they were less likely to be worked on a couple of months ago, or six to 12 months ago? And can you maybe talk about confidence that the industry is seeing what it needs in terms of increased activity, preclinical and commercial?

Maher Masoud: In terms of increased activity preclinical and commercial.

Maher Masoud: Yeah, I think you hit the nail on the head there: we are seeing activity start to come back. Confidence is coming back. I think that's evident slightly from, you know, we signed four SPLs to start the year, but also, if you look at the capital markets, a few of our partners raised a significant amount of money in the capital markets in Q1, and we're seeing that confidence come back in the market.

Maher Masoud: Yes, I think you hit it on the head there is that we are seeing the activity start come back the confidence is coming back I think thats evident slightly from we signed for SPL to start the year, but also if you look at the capital markets. A few of our partners have raised significant amount of money into capital markets in Q1, and we're seeing that confidence come back in the market.

Maher Masoud: You know, we think it's in the early stages of that. We're going to keep our eye on it to make sure that it's not just a small little bump. But I think, working with our customers, even though they're still rationalizing what programs are taking into the clinic and how many programs they take into the clinic, we feel fairly confident that, you know, we're cautious and optimistic, as we keep saying, but it's, you know, the quarter is kind of a prognosticator of where we are and where the market is right now and how it seems to be coming back slowly. Okay.

Maher Masoud: We think it's at the early stages of that.

Maher Masoud: We're going to keep our eye on to make sure that it's not just a small little bump I think.

Maher Masoud: Working with our customers, even though we're still rationalizing what programs are taking into the clinic and how many programs.

Maher Masoud: Taken to the clinic, we feel fairly confident that we're in we're cautiously optimistic as we keep saying, but the quarter is kind of a prognosticator of where we are and where the market is.

Maher Masoud: Is right now and how it seems to be coming back slowly.

Daniel Anthony Arias: Okay, if I could just sneak one more nuance into that last point. Obviously, well, maybe not obviously, but I assume you're looking at who's raising money and who's not raising money. Is it fair to say that those that have maybe not had a public raise are showing signs of improvement as well, or does the line really get drawn down, you know, down the middle where you have some that are financed and, therefore, in a better position? Those are the companies that are starting to open up the spigot a little bit. Those that haven't done so haven't really changed that dynamic.

Daniel Anthony Arias: Okay, if I could just sneak one more nuance to that last point.

Daniel Anthony Arias: Obviously, maybe not obviously, but I assume youre looking at who is raising money and who is not raising money is it fair to say that those that have maybe not had a public waves.

Daniel Anthony Arias: Are showing signs of improvement as well or does the line really get drawn.

Daniel Anthony Arias: Down down the middle where you have some better debt financed and therefore are in a better position, but those are the companies that are starting to open up the spigot a little bit because it hasn't done that haven't really changes that dynamic.

Maher Masoud: Thank you bunch.

Doug: I mean, yeah, I think, first off, you know, on PAs, I think, you know, you don't need to see things snap back to, you know, strong levels for folks to start making investments and moving their programs forward. I think where the timing of capital raises is going to impact things maybe on when an instrument purchase takes place. So I think those capital acquisitions are going to be more tied to the fundraising than certainly the PA utilization is going to be.

Speaker Change: Thanks, a bunch.

Doug: Yes, I think first off on <unk> I think you don't need to see the.

Doug: Things snap back to.

Doug: His strong levels for folks to start making investments and moving their programs forward I think where the timing of capital raise.

Doug: Impac things maybe on when an instrument purchase takes place. So I think there is.

Doug: Capital acquisitions are going to be.

Doug: More tied to.

Doug: The fund raising then certainly the PAA utilization is going to be.

Daniel Anthony Arias: Okay, very good. Thank you.

Speaker Change: Okay very good thank you.

Speaker Change: Thank you Dan.

Operator: Thank you. Our next question comes from the line of Matt Larew with William Blair. Your line is now open.

Daniel Anthony Arias: Thank you. Our next question comes from the line of Matt Larew with William Blair. Your line is now open.

Matthew Richard Larew: Good afternoon. Just maybe following up on that last point, you know, acknowledging that it takes some time for the flow through from perhaps a successful capital raise to the release of that into the budget. On the instrument side, you know, what are you starting to hear from customers on a budget perspective? What does the, perhaps, instrument pipeline look like relative to maybe the end of last year? Just because, obviously, while PAs were strong, instruments are still a little bit softer.

Matthew Richard Larew: Good afternoon, just following up on that last point.

Matthew Richard Larew: Analogy. It takes some time for flow through perhaps in a successful capital raise to release of that.

Matthew Richard Larew: Right.

Matthew Richard Larew: On the instrument side, what are you starting to hear about our customers on a budget perspective, what does that perhaps the instrument pipeline look like relative to maybe the end of last year, just because obviously about P&G for strong instrument sale, a little bit softer in the quarter.

Maher Masoud: Yeah, Matt, let me answer that. And then I'll let Doug also weigh in.

Speaker Change: Yes, Matt let me answer that and then I'll, let Doug also win so what we're seeing in terms of instrument side really is the prognosticator for that is what we're seeing on the VA side right Thats, usually where you start to see the recoveries that normally npa's because the capex spend is far less than we do for instrument side for an instrument purchase.

Maher Masoud: So what we're seeing in terms of the instrument side really is the prognosticator for that is what we're seeing on the PA side, right? That's usually where you start to see the recoveries in PAs because the CapEx spend is far less than you would do for an instrument purchase. So we're hopeful and optimistic that what we're seeing on the PAs will lead later in the year to potentially where customers are willing to make purchases that maybe last year they were not willing to make.

Maher Masoud: So we're hopeful and we're optimistic that what we're seeing on the Tas will lead later in the year to potentially.

Maher Masoud: Now customers are willing to make purchases than maybe last year, there were not willing to make but again.

Maher Masoud: But again, it's just that the lean indicator is the PAs. I'm not so sure we want to, at this point, indicate that it's going to lead to future instrument sales just because the PAs have increased. Doug, anything else?

Speaker Change: Leading indicators is the <unk>.

Speaker Change: And I'm not so sure we went out at this point indicate that it's going to lead to future instrument sales just because the pace of increase Doug any debt. It's a good question and I think it's a good opportunity to remind everybody what makes up core revenue right. There is the leases, which I think we've got good visibility and it is very stable.

Doug: I mean, it's a good question, and I think it's a good opportunity to remind everybody what makes up core revenue, right? There are the leases, which I think we've got good visibility on. It's very stable.

Doug: We saw some growth there. And then there's the PAs, which are a lot tougher to project. And then instrument sales. Instrument sales really is, we build up our forecast based on very detailed information that comes from the commercial team on each opportunity that they're looking at. And so when we think about the year, certainly, instrument revenue wasn't as strong as PAs were this quarter, but we still feel very good about the guidance we provided when we're looking specifically at the book of business that they're working through now on instrument sales.

Doug: We saw some growth there and then there's the <unk>, which are a lot tougher to project and then insurance sales instrument sales really is we build up our forecast based on <unk>.

Doug: Very detailed.

Doug: Information that comes from the commercial team on each opportunity that theyre looking at and so when we think about the year.

Doug: Certainly instrument revenue wasn't as strong as <unk> was this quarter, but we still feel very good about the guidance. We provided when were looking specifically at the book of business that they're working through now on the instrument sales side.

Matthew Richard Larew: Okay, understood. Mahir, you referenced in the prepared remarks, I think, adding additional SPL support for clients and starting to work with them earlier. I'm curious if this is sort of a step function change or new for you, or if there are particular services or capabilities that you're adding in terms of how you interact with clients that are different from before. And whether this is something that's sort of been an ask from clients or more of a push from you, either from a competitive or service standpoint. Yeah, absolutely. Great question. Actually, it's more of a push from...

Speaker Change: Okay understood.

Matthew Richard Larew: Here you referenced in the prepared remarks.

Matthew Richard Larew: Adding additional SPL support for clients and starting to work with them earlier.

Matthew Richard Larew: I'm curious if this is sort.

Matthew Richard Larew: Sure.

Matthew Richard Larew: That function change or new for you or if there are particular.

Mahir: Services or capabilities that you're adding.

Mahir: How you interact with clients that are different from before.

Speaker Change: Sorry, if I didn't ask.

Mahir: Clients are more of a push from you.

Matthew Richard Larew: Either from a competitor F our servicing standpoint.

Maher Masoud: Yeah, absolutely. Great question. Actually, it's more of a push from internal rather than being asked from clients, you know, per se. We've always, if you look at what we do, we do a complete end-to-end solution, right? We provide support to our customers from the time they first work with us all the way through the clinic. We want to make sure, I think I said on the last call as well, that we're doubling down on that support.

Mahir: Yes, absolutely great question actually it's more of a push from internal rather than being asked from clients per se. We've always if you look at what we do we do a complete end to end solution right. We provide support to our customers where the time to first work with US all the way through the clinic, we want to make sure I think I said on the last call as well that we're doubling down that support so we're staying ahead.

Maher Masoud: So we're staying ahead of the competition, and we're providing support now with better communication, both electronic communication as well as face-to-face communication. So we're building out systems to ensure that the support that we provide to our SGL partners, whether it's regulatory or quality or any potential issues that they have while they're in clinical development, or even potential commercial development, we stay ahead of them, and the turnaround time is even faster than before.

Maher Masoud: Of the competition and we're providing support now with better communication, both electronic communication as well as face to face communications. So we're building our systems to ensure that the support that we provide to our SPL partners.

Maher Masoud: It's regulatory or quality or any potential.

Maher Masoud: Issues that they have whether they are clinical development either potential commercial development. We stay ahead of it and the turnaround time is even faster than before so we're ensuring that was done in the past we're doing even more so of it and really coming of age with with where the industry is going where we want to make sure.

Maher Masoud: So we're ensuring that what we've done in the past, we're doing even more of it, and really coming of age with where the industry is going, where we want to make sure, you know, as these therapies need to make it to the clinic faster and make it to patients faster, we de-risk that step where they're working with us. So we're investing extra resources and really, you know, capabilities in that area to make sure we stay ahead of the competition and keep up with and align our interests with our partners.

Maher Masoud: As these therapies need to make it to the clinic faster and make it to patients faster that we derisked that step where they're working with us. So we are investing extra resources and really capabilities.

Maher Masoud: Capabilities and.

Maher Masoud: In that area to make sure. We stay ahead of the competition and keep up and align our interest with our with our partners.

Speaker Change: Alright, thank you.

Maher Masoud: Absolutely.

Speaker Change: Thank you.

Operator: Our next question comes from the line of Jacob Johnson with Stevens. Your line is now open.

Maher Masoud: Our next question comes from the line of Jacob Johnson with Stephens. Your line is now open.

Jacob K. Johnson: Hey, thanks. Good afternoon.

Jacob K. Johnson: Hey, Thanks, good afternoon, congrats on the quarter.

Jacob K. Johnson: You guys called out kind of a pivotal trial surprised in the quarter.

Jacob K. Johnson: Congratulations on the quarter. You guys called out kind of a pivotal trial surprise in the quarter. I'm just curious if this relates to a new or an existing therapy. I think program revenues don't include cash chevy, so I'm curious if it's a new customer, and maybe I'll dovetail that into, you know, looking at your chart on potential commercial approvals. It looks like you're not really expecting anything until 2026. I'm just curious if this kind of surprise pivot changes your thinking about that. Thank you.

Jacob K. Johnson: I'm just curious if this relates to new or existing therapy. I think program rapidly revenues don't include cash <unk> carry.

Jacob K. Johnson: If it's a new customer and maybe I'll dovetail that into looking at your chart on potential commercial approval. It looks like youre not really expecting anything until 2020. So I'm just curious if this kind of surprise if at all changes your thinking about that thank you.

Maher Masoud: Yeah, Jacob, thanks for that. I'll take that. It doesn't quite change our thinking on that. Obviously, we can't comment in terms of what customer it is or why it happened sooner than it should have for confidentiality reasons with our partners. However, as I mentioned, it does speak to our business model in the sense that there are going to be times where some of our current partners that have signed licenses with us are going to reach milestones sooner than they even anticipated or that we anticipated, and we'll get the benefit of that.

Speaker Change: Yes, Jacob Thanks for I'll take that it doesn't quite change our thinking on that obviously, we can't comment in terms of what customer it is or why it happened sooner than it should be.

Maher Masoud: For confidentiality reasons with our partners. However.

Maher Masoud: As I mentioned it does speak to our business model in the sense of Theyre, arguing with times, where some of our current partners to have signed licenses with us are going to are going to reach milestones sooner than they even anticipated or that we anticipated and we will get the benefit of that and that's what happened here.

Maher Masoud: And that's what happened here. I wouldn't change the 26 or 27 timeline for next generating events for us. We're still, that's what you see. We're confident with that. But this is positive. This speaks to exactly why we have these licenses, and why we provide the support. And as I've mentioned in the past, these are not like antibody therapies. There is a higher potential that you're going to have potential clinical efficacy earlier than anticipated by our partners, which will benefit us and benefit patients and our partners as well.

Maher Masoud: Wouldn't change the 26 or 'twenty seven.

Maher Masoud: Online for next generating events for us we're still.

Maher Masoud: That's where you see that we're confident with that.

Maher Masoud: This is a positive this speaks to exactly why we have these licenses why provide the support and what I've mentioned in the past, which is these are not like antibody therapies.

Maher Masoud: Hi, <unk> higher potential that youre going to have potential clinical efficacy earlier than anticipated by our partners, which will benefit us and benefit patients and our partners as well.

Speaker Change: To answer your questions.

Jacob K. Johnson: Yeah, yeah, that's helpful. Thanks for being here.

Maher Masoud: Yes, yes.

Speaker Change: It's helpful. Thanks Tahira.

Speaker Change: And maybe Dan asked me about.

Speaker Change: Customer spending money received funding versus maybe that you had and I'm just curious maybe lucky dicing. It a different way just curious if there's any difference in demand.

Jacob K. Johnson: May be more skewed to customers in the clinic or if you did have some maybe preclinical earlier.

Jacob K. Johnson: Demand from preclinical or earlier stage customers as well.

Jacob K. Johnson: And Dan asked me about, you know, customers spending money who received funding versus maybe those who hadn't. I'm just curious, maybe looking at it another way. Just curious if there's any difference in PA demand, if it's maybe more skewed to customers in the clinic, or if you did have some maybe preclinical or earlier demand from preclinical or earlier stage customers as well.

Speaker Change: Yes, I'll answer then if Doug wants to weigh in.

Maher Masoud: Yeah, I'll answer that if Doug wants to weigh in. I think it's spread across. It's not just clinical. It's clinical and preclinical demand, as well as research. We're seeing that across the board, which is what we want to see. We want to see healthy business, both for the SPLs and the non-SPL customers. And that's what we saw sequentially from this quarter to last quarter. So there is healthy demand across the board, Jacob.

Doug: It's spread across it's not just clinical as clinical and preclinical demand as well as research we're seeing that across the board, which is which is what we want to see when we see the healthy business both for the Sps and the non SPL customers and Thats, what we saw sequentially from this quarter to last quarter.

Maher Masoud: So it's a healthy demand across the board Jacob.

Jacob K. Johnson: Got it. Thanks for taking the questions, Hannah. Okay, thank you. Thank you. Our next question comes from the line of Matt Hewitt with Craig Hallam Capital.

Speaker Change: Got it thanks for taking our questions guys.

Matthew Gregory Hewitt: Okay. Thank you chip.

Operator: Thank you. Our next question comes from the line of Matt Hewitt with Craig Hallam Capital Group. Your line is now open.

Matthew Gregory Hewitt: Thank you.

Operator: Our next question comes from the line of Matt Hewitt with Craig Hallum Capital Group. Your line is now open.

Operator: Hey, guys. This is Jack on for Matt Congrats on a good readout. We just have one question. So I feel like a flurry of new agreements. We started the year could you just give us an update on that pipeline and what do you expect additional agreements this year. Thanks.

Matthew Gregory Hewitt: Thanks, Jack. I can speak to that, and then Doug, feel free to speak to that as well. Obviously, a very healthy start to the year. We're still, as we've mentioned in the past, comfortable with the three to five per year. The funnel and the pipeline itself for future SPLs is healthy, and we're confident that we can continue to have those three to five. I won't comment on whether we're going to sign another one this year just yet.

Matthew Gregory Hewitt: Thanks, Jack I can speak to that and then Doug feel free at this because we are obviously very healthy start to the year. We're still what we've mentioned in the past we are comfortable with the three to five.

Matthew Gregory Hewitt: Per year.

Matthew Gregory Hewitt: The funnel and the pipeline itself for future SPL is healthy.

Matthew Gregory Hewitt: We are confident that we can continue to have those three to five I won't comment on whether we're going to sign another one this year just yet.

Matthew Gregory Hewitt: Obviously, for obvious reasons, as I mentioned last time, sometimes you see a bolus of SPLs signed at any one particular time. The reason is that we're oftentimes working in research, working with these customers, really having interventions with them, supporting them. And then from there, it ends up being a negotiation a little bit thereafter where now we're negotiating licenses where they're about to enter the clinic. So sometimes it might happen where you have three or four lined up at the same time we've been working with in the past 12 months, 18 months that are about to sign licenses.

Matthew Gregory Hewitt: Obviously for obvious reasons as I mentioned last time, sometimes you see a bolus of of SPL assigned to a particular time. The reason being is where oftentimes working in research working with these customers really indicate.

Matthew Gregory Hewitt: In debentures with them supporting them and then from there it ends up being a negotiation a little bit thereafter, where now we're negotiating licenses where they're about to enter into the clinic. So sometimes you might have and we have three or four line at the same time with the working within the past 12 months 18 months that are about to sign licenses.

Matthew Gregory Hewitt: So that's why you see a bolus. But we're completely confident at three to five moving forward. I won't speculate as to whether we'll sign another one. And then the funnel itself is healthy. And that's why we're confident at three to five moving forward as well. Doc, did that answer your question?

Matthew Gregory Hewitt: So thats why you see a bolus, but we're completely confident that three to five moving forward won't speculate as to whether they'll sign another one and then the funnel itself is healthy and that's why we are confident that three to five moving forward as well.

Matthew Gregory Hewitt: Did that answer your question.

Doc: Yes, that's helpful. Thank you.

Matthew Gregory Hewitt: Absolutely.

Operator: Thank you. Our next question comes from the line of Mark Massaro with BTIG. Your line is now open.

Speaker Change: Thank you.

Operator: Our next question comes from the line of Mark Massaro with BPI J. Your line is now open.

Vivian: Hey guys, this is Vivian on to Mark. Thanks for taking the questions. So just a quick one on VLX adoption. It sounds like that might be more of a lagging indicator relative to PAs, but just any new appetite or early feedback to report there.

Mark Anthony Massaro: We will now.

Speaker Change: So Mike Thanks for taking the question.

Vivian: So quick one on <unk> adoption.

Vivian: That might be more of a lagging indicator.

Vivian: But just any new applicator early feedback to your point there.

Maher Masoud: Yeah, thanks for the question. On the VLX in terms of terms, as I mentioned last time, we're still working with early adopters. We're taking a step back to ensure that we do this, where we understand the true application needs for the VLX. I won't, you know, mention, for confidentiality reasons, the name of those early adopters, but it's just to ensure that we understand the space that we're entering into, where it's different than cell therapy, where we're really trying to disrupt the industry here.

Speaker Change: Yes. Thanks for the question on the <unk> in terms of as I mentioned last time, we're still working with early adopters.

Maher Masoud: We're taking a step back to ensure that we do this where we understand the true application needs for the <unk>.

Maher Masoud: <unk> mentioned for confidential reasons the name of those early adopters, but it's just to ensure that we understand the space that we're entering into where it's different as cell therapy, we're really trying to disrupt the industry here.

Maher Masoud: And not just with <unk>, but just in terms of production of proteins in a transient manner that is at a scale that's ever been done before.

Maher Masoud: And not just from the VLX, but just in terms of, you know, production of proteins in a transient manner that has at a scale that's never been done before. You know, so in terms of the PA usage for that, we haven't disclosed that; in terms of instrument sales, we haven't disclosed that. But we're still working with early adopters to truly understand the space and then, you know, launch in a manner that allows us to have true market adoption for the VLX and applications around the VLX. But we have not disclosed anything specifically.

Maher Masoud: So in terms of the pay usage for that we haven't disclosed that in terms of instrument sales, we can disclose that but we're still working with early adopters to truly understand the space and then.

Maher Masoud: Launched launch in a manner that allows us to have true market adoption for the <unk> and the applications around the <unk> as well, but we have not disclosed anything specifically there.

Vivian: Perfect, understood. And then just one follow-up question: you guys have a pretty healthy balance sheet; any tuck-in acquisitions or tech that you might look to evaluate, particularly for upstream or downstream steps, you know, kind of like sell enrichment or harvesting, just any conversations going on there. Thanks.

Maher Masoud: Perfect.

Speaker Change: And then just one follow up on just a pretty healthy balance sheet.

Speaker Change: Any acquisition that you might look to evaluate.

Speaker Change: Particularly for upstream or downstream.

Speaker Change: Kind of like selling Richmond, our harvest.

Speaker Change: Please go ahead.

Doug: We have an active corporate development effort. Clearly, you know, we're not in a position to talk about specific targets we're looking at. I think, you know, the types of things you mentioned are sort of in the realm of, you know, opportunities we would look at, but we've got, you know, healthy effort just to balance out our initiatives to target both, you know, inorganic and organic growth opportunities. So, this is one of the use of proceeds when we went public, so we're mindful that that's part of the reason why we have the healthy balance sheet that we do, and our goal is to, you know, look closely at things, but be very prudent, you know, and I think it's healthy that we're evaluating things, and it's also very good that we've been very disciplined and not pulling the trigger on things that either, you know, we didn't think, you know, were valued correctly or just weren't the right fit.

Doug: Yes.

Doug: We have an active corporate development effort clearly we're not in a position to talk about specific targets. We're looking at I think.

Doug: The types of things you mentioned are sort of in the realm of opportunities. We would look at but we've got healthy effort just to balance out our initiatives to target both inorganic and organic growth opportunities. So this is one of the use of proceeds when we went public. So we're mindful that thats part of the reason why we have the healthy balance sheet that we do and our goal is to.

Doug: Look closely at things, but be very prudent.

Doug: I think it's healthy that we're evaluating things is also very good that we've been very disciplined in not pulling the trigger on things that either.

Doug: We didn't think were.

Doug: Valued correctly or just weren't the right fit.

Vivian: Awesome, thanks for taking the questions.

Speaker Change: Hi, Thanks for taking my question.

Speaker Change: Thank you. Thank you.

Operator: Thank you. Our next question comes from the line of Jacqueline Kissa, with TD Cowan. Your line is now open.

Jack: Thank you. Our next question comes from the line of Jack willing cursor with TD Cowen. Your line is now open.

Jacqueline Kiesa: Hi, this is Jacqueline Kiesa on behalf of Stephen Ma. Thanks so much for taking the questions. Just to start off, with regard to your new and ongoing BD discussions for new SPLs, are you seeing these discussions weighted more towards emerging biotechs or large pharma? Is there like a noticeable mix or anything?

Operator: Hi, This is Jacqueline Keith on for Steven MA. Thanks, So much for taking the questions.

Jacqueline Kiesa: Just to start off with regards to your new and ongoing BD discussions for new Sdl's or you think these discussions weighted more towards emerging biotechs are large pharma is there like I noticed.

Jacqueline Kiesa: Noticeable mix or anything.

Maher Masoud: Yeah, hi Jacqueline, thank you for the question. I'll take that. It's more towards, it's not large pharma, it's more towards, I'd say, you know, smaller to mid-sized biotechs. And it's a mix of what we're seeing there. Obviously, as the industry keeps changing and evolving and as, you know, some therapies have greater adoption, we could see that mix begin to change as well, whether it's from early to mid-size to larger biotechs. But it's a good mix.

Speaker Change: Yes, Hi, Jacqueline and thank you for the question I'll take that it's more towards large formats more towards I'd say smaller to mid sized biotechs.

Maher Masoud: It's a mix of what we're seeing there obviously as the industry keeps changing and evolving in cell therapies.

Maher Masoud: Have greater adoption, we could see that mix began to change as well whether it's from early to mid size to larger biotechs.

Speaker Change: It's a good mix I mean, it's a good question I think youre seeing it across the board I wouldn't say large pharma, we don't have that.

Doug: I mean, it's a good question. I think you're seeing it across the board. I wouldn't say large pharma. We don't have, you know, that's not our focus, you know, right now. It's more on the support that's needed for smaller to mid- to even larger-sized biotechs.

Doug: Our focus right now it's more on the support that's needed for that smaller to mid to even larger size biotechs.

Jacqueline Kiesa: Right, great, thank you. And then, if you look across the clinical programs you're supporting, can you speak to the diversity of the cell types and molecules that your partners are using to, you know, create their cell-based therapies? And has this changed over the past 12 months? And if you're willing to call it any emerging trends with regard to that, that would be really cool, too.

Jacqueline Kiesa: Alright, great. Thank you and then if you look across the clinical programs, you're supporting can you speak to the diversity of the cell types of molecules that your partners are using.

Jacqueline Kiesa: Great their cell based therapies and has this has trended over the past 12 months and if youre willing to call. It any emerging trends with regards to that that would be really cold here.

Maher Masoud: Yeah, absolutely, Jack. So actually, that's the beauty of our support and what we do truly best, is it's emerging across cell therapies, whether it's T-cells and K-cells, whether it's TILs or TCRs. We're working with all of them. And obviously, for the indications, it's increasing, where you go from blood cancers to solid tumors, which is what we have a presence in. And then you're seeing the space really get more complex with the companies we're working with and truly begin to go into other indications.

Maher Masoud: Absolutely Jack so actually that's the beauty of our of our support and what we do truly best as it's emerging cross cell therapies, whether it's T cells or NK cells, whether it's <unk> or <unk>.

Maher Masoud: We're working with all of them.

Maher Masoud: Obviously for the indications, it's it's increasing where you went from blood cancers to solid tumors, which is where we are.

Maher Masoud: Having a presence in and then you've seen the space really get more complex.

Maher Masoud: You're seeing autoimmune diseases begin to really take shape here, and that's where it seems the space is lending itself. And we're working with a few of our partners on autoimmune disorders, cell therapies for autoimmune diseases, and rare diseases. So it's the entire breadth. And that's what we anticipate. We anticipate the field will continue to evolve, continue to mature, and really get more complex. And that's what we've built over the last 15, 20 years to ensure that we're ahead of competition and working with everyone, regardless of the cell type, regardless of the modality and indication. So I hope that answers your question, Jacqueline.

Maher Masoud: With the companies, we work with and truly begin to go into other indications you are seeing.

Maher Masoud: On immune diseases begin to really take shape here and Thats, where it seems the spaces is lending itself and we're working with a few of our partners on immune disorders.

Maher Masoud: Cell therapies for autoimmune diseases.

Maher Masoud: Rare diseases.

Maher Masoud: So it's the entire breadth and Thats, what we anticipate we anticipate the field continue to evolve continue to mature and really get more complex and that's what we've built the last 15 20 years to ensure that we're ahead of competition and working with everyone with regards to the cell type regardless of the modality and indication.

Maher Masoud: I hope that answers your question Jacqueline.

Jacqueline Kiesa: No, that's great. Thank you so much. I appreciate it.

Speaker Change: That's great. Thank you so much I appreciate it.

Operator: Thank you. And I'm currently showing no further questions at this time. I'd like to hand the call back over to Maher Masoud for closing remarks.

Speaker Change: Thank you.

Maher Masoud: Currently showing no further questions at this time I'd like to hand, the call back over to <unk> for closing remarks.

Maher Masoud: Yeah, thank you, operator. And thank you all for joining today's call. I look forward, and we look forward to speaking with all of you again on our next earnings call in a few months. Thank you.

Operator: This concludes today's conference call. Thank you for your participation. You may now disconnect.

Maher Masoud: Yes. Thank you operator, and thank you all for joined today's call I look forward and we look forward to speaking with all of you again on our next earnings call in a few months. Thank you.

Operator: This concludes today's conference call. Thank you for your participation you may now disconnect.

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