Telesis Bio Inc (TBIO) 2023 Q2 法說會逐字稿

Good day and thank you for standing by. Welcome to the Q2 2023 Telesis Bio earnings conference call. (Operator Instructions) Please be advised today's conference is being recorded. I would now like to turn the conference over to your speaker today, Jen Carroll, Vice President, Investor Relations.

美好的一天，感謝您的支持。歡迎參加 Telesis Bio 2023 年第二季財報電話會議。（操作員指示）請注意，今天的會議正在錄製中。現在我想將會議交給今天的發言人，投資者關係副總裁珍‧卡羅爾 (Jen Carroll)。

Thank you for joining us for Telesis Bio second quarter 2023 earnings call. With me on the call today are Telesis Bio Founder and Chief Executive Officer, Todd Nelson; and our President and Chief Operating Officer, Eric Esser. Our second quarter 2023 financial results press release is now available on the Investors section of our website.

感謝您參加 Telesis Bio 2023 年第二季財報電話會議。今天與我一起參加電話會議的是 Telesis Bio 創辦人兼執行長 Todd Nelson；以及我們的總裁兼營運長 Eric Esser。我們的 2023 年第二季財務業績新聞稿現已在我們網站的投資者部分發布。

Before we begin, I would like to inform you that certain statements we make during the call will make forward-looking statements that involve known and unknown risks and uncertainties that may cause actual results to differ materially from those expressed or implied. Such factors include those referenced in the Safe Harbor statement included in our earnings release and in our filings with the SEC. This conference call contains time-sensitive information and is accurate only as of the live broadcast on August 10, 2023. Finally, any percentage changes we discuss will be on a year-over-year basis unless otherwise noted.

在我們開始之前，我想通知您，我們在電話會議中所做的某些陳述將構成前瞻性陳述，這些陳述涉及已知和未知的風險和不確定性，可能導致實際結果與明示或暗示的結果存在重大差異。這些因素包括我們的收益發布和向美國證券交易委員會提交的文件中包含的安全港聲明中引用的因素。本次電話會議包含時效性訊息，僅截至 2023 年 8 月 10 日直播時準確。最後，除非另有說明，我們討論的任何百分比變化都將按年計算。

And with that, I will hand the call over to our CEO, Todd Nelson, and we can get started.

接下來，我會將電話轉交給我們的執行長托德·尼爾森，然後我們就可以開始了。

Thanks Jen. Welcome, everyone, and thanks for joining today's call.

謝謝珍。歡迎大家，感謝您參加今天的電話會議。

We're pleased with the progress the company is making in this challenging environment, and I want to highlight that this is the fourth consecutive quarter that we successfully reduced or maintained our operating expenses while growing revenue on a year-over-year basis.

我們對公司在這個充滿挑戰的環境中取得的進展感到高興，我想強調的是，這是我們連續第四個季度成功減少或維持營運費用，同時收入同比增長。

As you'll see in this quarter's results, we continue making progress with our strategic collaborations, grew both our revenue and installed base, delivered new BioXp kits to the market, secured additional financing, and strengthen the Board of Directors through the addition of Paul Meister, Former Chairman of ThermoFisher.

正如您將在本季度的業績中看到的那樣，我們的策略合作繼續取得進展，增加了我們的收入和安裝基礎，向市場提供了新的BioXp 套件，獲得了額外的融資，並透過Paul 的加入加強了董事會Meister，賽默飛世爾前董事長。

I'm also pleased to announce that during the second quarter, we achieved another technical milestone in our research collaboration with Pfizer, something that further validates SOLA, our enzymatic DNA synthesis platform. We remain encouraged by the progress we have made and look forward to continuing to validate this platform with our partner. SOLA remains a disruptive technology that will drive production of integrating workflows to the benchtop and will continue to accelerate discovery time lines for our customers through the ability to deliver on-demand gene synthesis mRNA, eventually protein synthesis products with unprecedented speed and accuracy.

我還很高興地宣布，在第二季度，我們與輝瑞的研究合作實現了另一個技術里程碑，這進一步驗證了我們的酶促 DNA 合成平台 SOLA。我們仍然對所取得的進展感到鼓舞，並期待與我們的合作夥伴繼續驗證平台。SOLA 仍然是一項顛覆性技術，它將推動將工作流程整合到桌上型的生產，並將透過提供按需基因合成mRNA 的能力，以及最終以前所未有的速度和準確性提供蛋白質合成產品的能力，繼續加快客戶的發現時間。

Customer adoption of our newly launched products remains encouraging. Moving forward, we intend to increasingly focus our efforts on maximizing the commercial impact of our differentiated workflow solutions based on our mRNA, cell-free DNA scale-up, and long-build BioXp DNA kits. We have a highly compelling offering at the benchtop for these solutions, which will catalyze further adoption of our products into our targeted workflows for antibody discovery, pathway engineering, precision medicine, and mRNA vaccine discovery.

客戶對我們新推出的產品的採用仍然令人鼓舞。展望未來，我們打算更加集中精力，最大限度地提高基於 mRNA、無細胞 DNA 放大和長期構建 BioXp DNA 試劑盒的差異化工作流程解決方案的商業影響。我們在這些解決方案的基礎上提供了非常引人注目的產品，這將促進我們的產品進一步採用到我們的抗體發現、通路工程、精準醫學和 mRNA 疫苗發現的目標工作流程中。

Now moving on to our second quarter financial results. Our detailed financial results for the second quarter included in today's press release. During the quarter, our total revenue grew at 53% despite continued macroeconomic headwinds that impacted our product revenue results. While we saw solid revenue growth of 36% in our instrument business and our overall product revenue increased year over year by 14%. Our BioXp kit revenue was down 16% during the quarter against a very tough comp in 2022. We note that for the first half of 2023, the BioXp kit growth is greater than 10%, and we anticipate that this rate will accelerate in the end of the year with new product launches.

現在轉向我們的第二季財務業績。我們第二季的詳細財務業績包含在今天的新聞稿中。儘管宏觀經濟逆風持續影響了我們的產品收入結果，但本季我們的總收入仍成長了 53%。我們的儀器業務收入穩健成長 36%，整體產品營收年增 14%。與 2022 年非常艱難的競爭相比，我們的 BioXp 試劑盒收入在本季度下降了 16%。我們注意到，2023 年上半年，BioXp 試劑盒的成長超過 10%，我們預計隨著新產品的推出，這一速度將在年底加快。

Revenue for the first half of 2023 was $15 million, an increase of 33% from the $11.3 million in the prior period. Gross margins came in at 65.8% for the second quarter and compared to 48% for the same period in the prior year and were 61.5% for the first half of 2023 as compared to 48.6% in the prior period of 2022. Strong contributors to this continue to expansion include collaboration milestones, but also reflect positive mix shift in revenue from recently launched products within our growing biopsy portfolio and our efforts to vertically integrate reagent and instrument manufacturing.

2023年上半年營收為1,500萬美元，較上期的1,130萬美元成長33%。第二季的毛利率為 65.8%，去年同期為 48%；2023 年上半年毛利率為 61.5%，而 2022 年上半年為 48.6%。這項持續擴張的重要貢獻者包括合作里程碑，但也反映了我們不斷增長的活檢產品組合中最近推出的產品帶來的收入的積極組合轉變，以及我們垂直整合試劑和儀器製造的努力。

Operating expenses for the quarter of $13.7 million for the second quarter 2023 were down 20% as compared to $17.2 million for the same period in the prior year. This decrease primarily as a result of ongoing cost cutting efforts, including a reduction in force during the current quarter that was intended to focus at the team our most profitable and near term revenue opportunities. And operating expenses for the first half were down 14% to $28.1 million compared to $32.8 million for the same period in 2022.

2023 年第二季的營運支出為 1,370 萬美元，比去年同期的 1,720 萬美元下降了 20%。這一下降主要是由於持續的成本削減努力所致，包括本季的人員減少，旨在將我們最有利可圖和近期收入機會集中在團隊上。上半年營運費用下降 14%，至 2,810 萬美元，而 2022 年同期營運費用為 3,280 萬美元。

Total net loss of $8.3 million reflects a decrease of 44% compared to $14.8 million in the same period in the prior year. And net loss per share was $0.28 for the second quarter of 2023 compared to $0.5 for the corresponding prior year period. The corresponding net loss for the first half of 2023 was $19.4 million compared to net loss of $28 million for the same period in 2022, representing a 30% decrease. Cash, cash equivalents, restricted cash, and short-term investments were $47.5 million as of June 30, 2023.

淨虧損總額為 830 萬美元，比去年同期的 1,480 萬美元減少了 44%。2023 年第二季每股淨虧損為 0.28 美元，去年同期為 0.5 美元。2023年上半年相應的淨虧損為1,940萬美元，相較於2022年同期的淨虧損2,800萬美元，減少了30%。截至 2023 年 6 月 30 日，現金、現金等價物、限制性現金及短期投資為 4,750 萬美元。

And with that, I'll move on to provide a brief update on our product development and commercial status. During Q2, we accomplished several important product development initiatives, including the on-time launch of three new BioXp kits, bringing our total offering to 12 kits across both the 3250 and 9600 systems.

接下來，我將簡要介紹我們的產品開發和商業狀態。在第二季度，我們完成了多項重要的產品開發計劃，包括按時推出三個新的 BioXp 套件，使我們在 3250 和 9600 系統上提供的套件總數達到 12 個。

Of note, we completed the first commercial shipment of our BioXp Select DNA cloning kit, which enables an on-demand and automated benchtop assembly of DNA fragments via our own proprietary Gibson Assembly method or Golden Gate assembly beginning from the customer's existing linear DNA. This product launch broadens our appeal to customers that have used Golden Gate cloning methods in their workflows and by doing so, Telesis Bio customers are now able to perform automated cloning at the benchtop for the two most commonly used cloning methodologies. And these kits are now available on both the 3250 and 9600. systems.

值得注意的是，我們完成了BioXp Select DNA 克隆試劑盒的首次商業發貨，該試劑盒能夠通過我們自己的專有Gibson 組裝方法或Golden Gate 組裝從客戶現有的線性DNA 開始，實現DNA 片段的按需自動化桌上型組裝。該產品的推出擴大了我們對在工作流程中使用 Golden Gate 克隆方法的客戶的吸引力，透過這樣做，Telesis Bio 客戶現在能夠在台式上對兩種最常用的克隆方法執行自動克隆。這些套件現已在 3250 和 9600 系統上提供。

Second, we launched our proprietary BioXp NGS Library Prep kit for plasmid sequencing, which enables on-demand and automated library preparation of plasmid DNA for use in next-gen sequencing applications. This kit represents a major milestone in the evolution of the BioXp system and now provides customers with a more complete solution across many synthetic biology and genomics workflows.

其次，我們推出了用於質粒定序的專有 BioXp NGS 文庫製備試劑盒，該試劑盒能夠按需自動製備質粒 DNA 文庫，以用於下一代定序應用。該試劑盒代表了 BioXp 系統發展的一個重要里程碑，現在為客戶提供了許多合成生物學和基因組學工作流程的更完整的解決方案。

And third, we introduced the long fragment kits on the 9600 system. With this launch, customers are now able to build 96 high-fidelity genes of up to 7.5 kb in a single, fully automated overnight run. This is a key advancement and DNA synthesis automation for longer genes, and we're pleased with the initial product launch numbers, which are being driven by adoption by customers for rapid mRNA template synthesis and precision medicine in vaccine discovery.

第三，我們在 9600 系統上引進了長片段套件。透過此次發布，客戶現在能夠在一次完全自動化的過夜運行中建立 96 個高達 7.5 kb 的高保真基因。這是較長基因的關鍵進步和 DNA 合成自動化，我們對最初的產品發布數量感到滿意，這些產品的推出是由於客戶在疫苗發現中採用快速 mRNA 模板合成和精準醫學而推動的。

The team here at Telesis remains focused on delivering an expanded range of differentiated products that enable researchers to optimize and accelerate discovery through push-button automation of complex molecular biology at the benchtop. We remain in the early stages of adoption in our targeted workflows and expect growth to accelerate as we move deeper into these workflows where we have disruptive technology in differentiated products that will serve to increase the value proposition of the BioXp platform.

Telesis 的團隊仍然專注於提供廣泛的差異化產品，使研究人員能夠透過在桌上型複雜分子生物學的按鈕自動化來優化和加速發現。我們的目標工作流程仍處於採用的早期階段，隨著我們深入這些工作流程，我們預計成長將會加速，我們在差異化產品中擁有顛覆性技術，這將有助於提高 BioXp 平台的價值主張。

Moving on to gross margin, which continues to expand. Gross margins continue to expand as a result of mix shift to higher margin products like the 9600 system, mRNA kits, long fragment builds, and a suite of Select kits for the BioXp. We briefly mentioned a few minutes ago that we anticipate gross margins will continue to improve as we complete the vertical integration of oligo manufacturing with commitment to substantially offset our existing external supply by the end of 2023.

接下來是繼續擴大的毛利率。由於混合轉向利潤率更高的產品，如 9600 系統、mRNA 試劑盒、長片段構建和 BioXp 的一套精選試劑盒，毛利率繼續擴大。幾分鐘前我們簡單提到，隨著我們完成寡核苷酸製造的垂直整合，並承諾在 2023 年底前大幅抵消現有的外部供應，我們預計毛利率將繼續提高。

This, when combined with our initiative to likewise vertically integrate the manufacturing activities related to the BioXp instruments, should accrete to gross margin with the full year effect of these three initiatives taking place in 2024.

再加上我們同樣垂直整合與 BioXp 儀器相關的製造活動的舉措，這三項舉措在 2024 年的全年影響應該會增加毛利率。

And finally, a brief comment on the status of our base cost structure. As mentioned earlier in the call, we are pleased with the progress the company is making in this challenging environment. And I want to highlight again that this is the fourth consecutive quarter we have successfully reduced or maintained operating expenses while growing revenue on a year-over-year basis, as such we continue to remain confident that our path to profitability estimated to be the end of 2024 remains on track.

最後，對我們基本成本結構的現狀進行簡要評論。正如先前在電話會議中提到的，我們對公司在這個充滿挑戰的環境中取得的進展感到高興。我想再次強調，這是我們連續第四個季度成功減少或維持營運費用，同時收入同比增長，因此我們仍然相信我們的盈利之路預計將結束2024 年仍按計劃進行。

In closing, I want to share that our team is very experienced operationally, strong strategically, and that we remain focused on achieving near-term commercial goals, furthering new and existing partnerships, controlling costs, launching new products, and improving profit margins.

最後，我想分享的是，我們的團隊在營運方面經驗豐富，戰略能力強大，我們仍然專注於實現近期商業目標，進一步發展新的和現有的合作夥伴關係，控製成本，推出新產品，並提高利潤率。

And with that, I'll ask the operator to open the call for questions. Thank you.

然後，我將要求接線員開始提問。謝謝。

(Operator Instructions) Brandon Couillard, Jefferies.

（操作員說明）Brandon Couillard，Jefferies。

Hey, thanks. Good afternoon, Todd. Maybe just big picture. Obviously, the capital equipment demand backdrop has gotten tougher based on what we've heard from most of the other tools company in the quarter. Have you seen a change in demand backdrop from your point of view, any elongation of sales cycles, longer capital approval times, or a shift in budgets.

嘿，謝謝。下午好，托德。也許只是大局觀。顯然，根據我們本季從大多數其他工具公司聽到的情況，資本設備需求背景變得更加嚴峻。從您的角度來看，您是否看到了需求背景的變化、銷售週期的延長、資本審批時間的延長或預算的變化。

Secondarily, could you just recap what instrument growth did on a year-over-year basis in 2Q [on this side]? Thanks.

其次，您能否回顧一下第二季（這一邊）金融工具的年成長情況？謝謝。

Yeah. Hi, Brandon, thanks for the question. So for BioXp platform, instrument growth was up 36%. We sold 17 instruments. The mix is about 15, 3250 is 9600. So you can see from that and mix that the 9600, which is also the more expensive of our two systems, is a little bit less than what we had anticipated. We've made up for that with more 3250 systems. So overall, I feel good about that.

是的。嗨，布蘭登，謝謝你的提問。因此，對於 BioXp 平台，儀器成長了 36%。我們賣出了 17 台樂器。混合大概是15個，3250就是9600。因此，您可以從中看到並混合 9600，它也是我們兩個系統中更昂貴的一個，它比我們的預期要少一些。我們用更多的 3250 系統彌補了這一點。總的來說，我對此感覺良好。

But the mix does reflect extended sales cycles. Had more signatures to get things through extended amounts of time for the sales team to get things from a lead opportunities through a customer. So sales cycles have extended. We've seen some CapEx pressure in the 9600. And we've pivoted in a sense when we go to the customer to make that up with 3250. So we're happy with the 17 overall. But I think we'll begin to see an uptick in the 9600 as this macroeconomic condition, at some point, resolves.

但這種組合確實反映出銷售週期的延長。擁有更多的簽名，可以讓銷售團隊花很長的時間從客戶的潛在機會中獲得東西。因此銷售週期延長了。我們已經看到 9600 存在一些資本支出壓力。當我們向客戶提供 3250 來彌補這一點時，我們在某種意義上已經發生了轉變。所以我們對 17 個整體感到滿意。但我認為，隨著這種宏觀經濟狀況在某個時候得到解決，我們將開始看到 9600 點的上漲。

Yeah. That's helpful. And then can you quantify the Pfizer milestone you booked in 2Q and remind us, are there two more that you anticipate in the back half? And how big are those?

是的。這很有幫助。然後您能否量化您在第二季度預訂的輝瑞里程碑並提醒我們，您預計下半年還會有兩個里程碑嗎？那些有多大？

Yeah. So we signed that agreement in 2021. We've successfully achieved two of the four milestones. The cadence is generally Brandon that it takes about a quarter to achieve the milestone. And so we did just achieve one in Q2. So Q3, we'll be working to achieve the next milestone. So I'd anticipate one more milestone in 2023. And then there's one more milestone in 2024, and you could anticipate that happening at the same cadence in 2024.

是的。所以我們在 2021 年簽署了該協議。我們已經成功實現了四個里程碑中的兩個。布蘭登的節奏通常是，大約需要四分之一的時間才能實現這一里程碑。所以我們確實在第二季實現了這個目標。因此，第三季度，我們將努力實現下一個里程碑。因此，我預計 2023 年還會有一個里程碑。2024 年還有一個里程碑，您可以預期 2024 年會以同樣的節奏發生。

Was that about $2.5 million, if I remember correctly?

如果我沒記錯的話，大約是 250 萬美元嗎？

Yeah, I think they are roughly that; that's publicly available. So I think it's $10 million in technology milestones that are divided up between four different milestones.

是的，我想他們大概就是這樣；這是公開的。因此，我認為 1000 萬美元的技術里程碑被分成四個不同的里程碑。

And then I would just remind you also that Pfizer following the conclusion of the research period has some amount of time to elect, to move forward or at which point should they choose to do that would trigger the cascade of additional clinical development and commercial milestones.

然後我還要提醒您，輝瑞在研究期結束後有一定的時間來選擇、前進，或者他們應該選擇在什麼時候這樣做，以觸發一系列額外的臨床開發和商業里程碑。

Got it. Very good. And then I guess, any chance you're willing to -- able to update the full year outlook in terms of revenue or installations?

知道了。非常好。然後我想，您是否願意 - 能夠更新全年的收入或安裝量展望？

And secondarily, where do you expect CapEx to trend in the second half and actually we are given some of the [four weeks cost cuts]?

其次，您預計下半年資本支出的趨勢如何，實際上我們得到了一些[四週的成本削減]？

Sorry, Brandon, just clarification. You mean CapEx spending on our end or are you speaking to what we released as far as the revenue expectations and things like that?

抱歉，布蘭登，只是澄清一下。您是指我們的資本支出，還是指我們發布的收入預期之類的內容？

Yeah. Just curious if you're willing to update revenue expectations for the year. And then secondarily, the OpEx, operating expenses in the second half given some of recent cost cuts?

是的。只是好奇您是否願意更新今年的收入預期。其次，考慮到最近的一些成本削減，下半年的營運支出、營運支出？

Yeah, no update from what we did at the end of May when we completed the financing. So we're targeting from an OpEx perspective, including non-cash and one-time charges for things to be around the $55 million mark, if not better; gross margins to be in the 57% region; and revenue to be in the $35 million region.

是的，我們在五月底完成融資時沒有更新任何資訊。因此，我們的目標是從營運支出的角度來看，包括非現金和一次性費用在 5,500 萬美元左右（如果不是更好的話）；毛利率在 57% 左右；收入將在 3500 萬美元左右。

Got it. Okay. I guess one more for me and I'll hop back in the queue. Paul Meister, obviously nice position moving forward, I find he's a big shot. Do you see ways for him to add value either operationally or strategically, what do you think he brings to the table?

知道了。好的。我想再給我一個，然後我會跳回隊列。保羅·梅斯特（Paul Meister），顯然向前推進的位置不錯，我發現他是個大人物。您是否認為他可以在營運或策略上增加價值？

Hey, Barndon. I mean, a lot because he's so much more experienced than me. I'm glad to have him on board. I think getting the former Chairman of ThermoFisher on board is a real testament to the company here, and he's managed his investment in the company alongside others, including myself. I think it shows a great fortitude and interest in the potential outcome.

嘿，巴恩登。我的意思是，很多，因為他比我更有經驗。我很高興他能加入。我認為 ThermoFisher 前董事長的加入是對這家公司的真正證明，他與包括我在內的其他人一起管理他在公司的投資。我認為這表現出了對潛在結果的巨大毅力和興趣。

I would say operationally -- it's a super fair question -- Paul is a very, very engaged, very smart business leader who's got direct experience in running businesses like this for as 35, 40 years. So I think that he has been a tremendously good add to the Board of Directors. And I expect to be able to learn some great things from him. So I think it's all good stuff.

我想說的是，在營運方面——這是一個非常公平的問題——保羅是一位非常、非常敬業、非常聰明的商業領袖，他在經營這樣的企業方面擁有35、40 年的直接經驗。因此，我認為他對董事會的任命非常出色。我希望能夠從他身上學到一些很棒的東西。所以我認為這都是好東西。

Very good. I'll jump back in queue. Thanks.

非常好。我會插回隊列。謝謝。

Thanks, Brandon.

謝謝，布蘭登。

Paul Knight, KeyBanc.

保羅奈特，KeyBanc。

Hey, Todd. Thanks for the time, the Eton acquisition obviously sets you up to do more internal oligo production and you're talking about gross margins, I think what, in full effect in 2024. What type and level of gross margin would you really think about with that kind of integration, I guess is the right word for it?

嘿，托德。感謝您抽出時間，收購 Eton 顯然會讓您進行更多的內部寡核苷酸生產，而且您正在談論毛利率，我想，這將在 2024 年全面生效。對於這種整合，您真正會考慮什麼類型和水平的毛利率，我想這是正確的詞？

Yeah. So I'll take a high-level crack at that and then hand it over to Eric Esser to answer.

是的。因此，我將對此進行高級破解，然後將其交給 Eric Esser 來回答。

So you're right. We have now implemented a proprietary small scale synthesis oligo production facility. We've stated previously that our intent is to offset the vast majority of our external oligo supply by the end of the year, and we're on track to do that. So our target is 80% to 100% of that. And again, on track to do that. The impact of that initiative when combined with our other two initiatives, on our three-point plan to improve gross margins should be -- and I think we've disclosed previously -- about 1,000 basis points or 10 percentage points in total, the full effect in 2024.

所以你是對的。我們現在已經實施了專有的小規模合成寡核苷酸生產設施。我們之前曾表示，我們的目的是在今年年底前抵消絕大多數外部寡核苷酸供應，我們正在努力做到這一點。所以我們的目標是 80% 到 100%。再次，有望做到這一點。該舉措與我們的其他兩項舉措相結合，對我們提高毛利率的三點計劃的影響應該是——我想我們之前已經披露過——大約 1,000 個基點或總共 10 個百分點，全部2024年生效。

Yeah, I think that's right. Todd. [You covered it].

是的，我認為這是對的。托德。[你覆蓋了它]。

From a base level?

從基礎水平開始？

From a base level? I mean, I guess I can't, Paul, pull the incremental impact of the vertical integration of reagent manufacturing apart from the other two initiatives right now. Happy to have a follow-up call on that, but I think it's fair to say that from a product margin perspective, we would expect to see that much accretion on a year-over-year basis.

從基礎水平開始？我的意思是，保羅，我想我現在無法將試劑製造垂直整合的增量影響與其他兩項措施分開。很高興對此進行後續電話諮詢，但我認為可以公平地說，從產品利潤率的角度來看，我們預計會看到同比的大幅增長。

Okay. And then, could you refresh us on how the Pfizer collaboration rolls out the quarterly cadence on that?

好的。然後，您能否向我們介紹一下輝瑞合作如何推出季度節奏？

Sure. Happy to. So again, we signed that agreement in the fourth quarter of 2021. There's a two year research period and there was an $8 million upfront fee. The cadence of the four milestones is basically anticipated when we achieve them. We've achieved the second of four and the cadence should be another one in 2023, presumably toward the end of the year because we just achieved one. And then the final or fourth milestone in the first half of 2024. So two more to go and that ends the research period, at which point Pfizer, our collaborator can elect to move forward with the program at which point that would trigger the additional clinical development and commercial milestones.

當然。高興。我們再次在 2021 年第四季簽署了該協議。研究期間為兩年，預付費用為 800 萬美元。當我們實現這四個里程碑時，基本上就可以預期它們的節奏。我們已經實現了四個目標中的第二個，節奏應該是 2023 年的另一個目標，大概是在今年年底，因為我們剛剛實現了一個。然後是 2024 年上半年的最後一個或第四個里程碑。還有兩個項目需要完成，研究期就結束了，屆時我們的合作者輝瑞公司可以選擇繼續推進該項目，屆時將觸發額外的臨床開發和商業里程碑。

Okay. And then lastly, could you talk regarding that collaboration? How -- those milestones, has it -- you're pretty comfortable with the trend, I guess is the best way to ask it.

好的。最後，可以談談這次合作嗎？如何——那些里程碑，有——你對趨勢非常滿意，我想這是最好的提問方式。

Sorry, Paul, can you just repeat the question? You just want to know what triggers the milestones and how much they are?

抱歉，保羅，你能重複這個問題嗎？您只想知道什麼觸發了里程碑以及里程碑的數量是多少？

Yeah. The engineering specs -- it seems like it was more engineering specs in the past, those obviously getting met. How challenging do you think those milestones are? It seems like you've been kind of clicking away really well. Any thoughts on that change? Is it still running pretty smoothly is my impression?

是的。工程規格——過去似乎更多的是工程規格，那些顯然得到了滿足。您認為這些里程碑有多大挑戰性？看起來你的表現確實不錯。對這個改變有什麼想法嗎？我的印像中它仍然運行得相當流暢嗎？

Yeah, we're very happy with the relationship with Pfizer. I think it's going exceptionally well. We've achieved half of the milestones; we're working hard on the other half. And I believe the technology is viewed by them, as their CEO said publicly, as one of the four major strategic pillars that they're going to build their mRNA franchise around.

是的，我們對與輝瑞的關係非常滿意。我認為進展非常順利。我們已經實現了一半的里程碑；我們正在為另一半而努力。我相信，正如他們的執行長公開表示的那樣，他們將這項技術視為他們將圍繞其建立 mRNA 特許經營權的四大戰略支柱之一。

And so we're proud to work and with them to be their DNA template provider in that process. So I do think things are going well, but we have no idea what they'll end up doing. But I think again, from our perspective, we're working hard to achieve the goals, and we've been doing that and we anticipate we'll continue to do so.

因此，我們很自豪能與他們合作，並成為他們在過程中的 DNA 模板提供者。所以我確實認為事情進展順利，但我們不知道他們最終會做什麼。但我再次認為，從我們的角度來看，我們正在努力實現目標，我們一直在這樣做，我們預計我們將繼續這樣做。

Okay. Thanks.

好的。謝謝。

Yeah.

是的。

Steven Mah, TD Cowen.

史蒂文·馬，TD·考恩。

Great, thanks for the question. Lot of ground covered. So just have a couple of follow-ups. On the gross margin, Todd, I think you said it was a 10% gross margin impact in total in 2024. Could you give us some color on maybe separating the impact from Eton oligos and then also bringing in the in-house BioXp manufacturing?

太好了，謝謝你的提問。很多地面被覆蓋。所以只需進行一些後續行動即可。關於毛利率，托德，我想你說過 2024 年毛利率總共會受到 10% 的影響。您能否給我們一些解釋，也許可以將 Eton 寡核苷酸的影響分開，然後引入內部 BioXp 製造？

Hi Steve, thanks for the question. So I think the margin, as we said product margin, which we haven't really disclosed, I think that analyst can back into that. On a blended margin, it will be around 6%. And on our products, it will be about 10%. And so that accretion will result from executing against our three-point plan. That three-point plan again is to continue to focus more intensely on areas for the BioXp where we have a very competitive and highly differentiated offering, better pricing, better margins. That's point number one.

嗨，史蒂夫，謝謝你的提問。因此，我認為利潤率，正如我們所說的產品利潤率，我們尚未真正披露，我認為分析師可以對此進行討論。混合利潤率約 6%。在我們的產品上，這個比例約為 10%。因此，這種增長將透過執行我們的三點計劃而產生。這三點計畫再次是繼續更專注於 BioXp 領域，我們在這些領域擁有非常有競爭力和高度差異化的產品、更好的定價和更高的利潤。這是第一點。

Point number two is the vertical integration of reagent manufacturing, which is directly impacted by the oligo synthesis program that you're mentioning. And then point number three is the in-sourcing of our instrument manufacturing. So those three things together, we believe, will accrete between 600 and 1,000 basis points on a full year basis in 2024 to the ending gross margin in 2023.

第二點是試劑製造的垂直整合，它直接受到您提到的寡核苷酸合成計劃的影響。第三點是我們儀器製造的內包。因此，我們認為，這三件事加在一起，到 2024 年全年毛利率將增加 600 到 1,000 個基點，到 2023 年期末毛利率將增加 600 到 1,000 個基點。

Okay. I appreciate the color. And then pivoting over to the Select kits. Do you have like a pipeline of other kits you're going to rollout. Can you give us a sense for what might be next?

好的。我很欣賞它的顏色。然後轉向精選套件。您是否有一系列要推出的其他套件？您能給我們介紹一下接下來會發生什麼事嗎？

Yeah, happy to. And just to remind you, we've got 12 kids now launched on the 3250 and 9600 systems. There's a total of 21 kits, there's 12 on the 3250, and I guess that means 9 on the 9600. I'll hand it over to Eric to run through the rest of the year's product development plan so that you can answer to that.

是的，很高興。提醒您一下，我們現在在 3250 和 9600 系統上推出了 12 個孩子。總共有 21 個套件，3250 上有 12 個，我想這意味著 9600 上有 9 個。我將把它交給 Eric 來完成今年剩餘的產品開發計劃，以便您可以回答這個問題。

Yeah. Thanks, Todd. Hi, Stevens. So we do have some additional kits that we will be launching. We're launching three more kits in this quarter and two kits in Q4. So that will round out all of the additional product development that we're going to do for the year. Those are really spread across the Select lines, De novo line, and expansion of the NGS Library prep line that we've now launched this quarter.

是的。謝謝，托德。嗨，史蒂文斯。因此，我們確實將推出一些額外的套件。我們將在本季再推出三款套件，並在第四季推出兩款套件。這將完善我們今年要做的所有額外產品開發。這些實際上分佈在 Select 系列、De novo 系列以及我們本季推出的 NGS 文庫製備系列的擴展中。

And I think our efforts there, Steve, are to when we get to the customer to be in parity from a workflow perspective on the 3250, 9600. So what you'll see by the end of 2023 is that both the 3250 and 9600 will essentially be running essentially kits.

史蒂夫，我認為我們的努力是當我們到達客戶時，從工作流程的角度來看，3250 和 9600 是平等的。因此，到 2023 年底，您將看到 3250 和 9600 基本上都將運行基本套件。

That's right.

這是正確的。

So one system is not disadvantaged or advantaged in a particular workflow. And that means to us, the adoption will likely be based upon needs related to throughput.

因此，一個系統在特定工作流程中並不處於劣勢或優勢。這對我們來說意味著，採用可能會基於與吞吐量相關的需求。

Okay. That's helpful. And then last one for me. Are you guys providing any updates on SOLO commercial launch timing?

好的。這很有幫助。然後是我的最後一張。你們有提供 SOLO 商業發佈時間的最新消息嗎？

So we still intend to launch some form of SOLO in the fourth quarter of this year, the reagent platform. And so that remains as of today on track. And we've been pleased with the development and we'll be launching that reagent platform into the CRISPR market. And so we're excited about that. And that work continues also in the gene synthesis area with Pfizer, as you know.

所以我們還是打算在今年第四季推出某種形式的SOLO試劑平台。因此，截至今天，一切仍步入正軌。我們對這一發展感到滿意，我們將將試劑平台推向 CRISPR 市場。所以我們對此感到興奮。如您所知，輝瑞在基因合成領域的這項工作也持續進行。

Yeah, that's it for me. Appreciate the questions.

是的，對我來說就是這樣。感謝您提出的問題。

Likewise. Thank you.

同樣地。謝謝。

Brandon Couillard, Jefferies.

布蘭登·庫亞爾，傑弗里斯。

Hey, thanks for taking the follow up. Todd, just in terms of kit utilization, I think you said revenues were down 16% year over year. Do they grow sequentially? And what's behind I guess that trend [moving forward]?

嘿，感謝您的跟進。托德，就套件利用率而言，我想您說過收入同比下降了 16%。它們是按順序生長的嗎？我猜這個趨勢背後是什麼[向前進]？

Yeah. Thanks for the question, Brandon. So the interesting thing is, ironically, we've seen, in this market, good sequential growth. So we saw about 10% sequential growth Q2 over Q1 in 2023. So it's not as if we're seeing a sequential down tick. When we look at Q2 performance on a revenue basis compared to Q2 in 2022 was a very tough comp. And sales in Q2 of 2022, lot of twos in there sorry, nearly doubled. So sales are up about 100% due to some very large one-time orders in Q2 of last year.

是的。謝謝你的提問，布蘭登。因此，有趣的是，諷刺的是，我們在這個市場上看到了良好的連續成長。因此，我們看到 2023 年第二季比第一季環比成長約 10%。因此，我們並沒有看到連續的下降。當我們以收入為基礎來看待第二季的表現時，與 2022 年第二季相比，這是一個非常艱難的比較。抱歉，2022 年第二季的銷售額幾乎翻了一番。由於去年第二季一些非常大的一次性訂單，銷售額成長了約 100%。

So that has the negative impact essentially this quarter being a very, very tough comp, but we are seeing sequential growth quarter on quarter, which I view as a good thing in this market. So we do see sequential growth. It's 10% or better, and that will only get better mathematically as we get into the second part of the year because the comps won't be as tough.

因此，這本質上對本季度產生了負面影響，這是一個非常非常艱難的競爭，但我們看到季度環比增長，我認為這在這個市場上是一件好事。所以我們確實看到了連續成長。它是 10% 或更好，而且當我們進入今年下半年時，從數學角度來看，這個數字只會變得更好，因為比賽不會那麼艱難。

So we are seeing sequential growth. There was a tough comp last year when sales grew at about 100% for the kits. They were up 62% in the first quarter of this year on a year-over-year basis and down 16% against a tough comp this quarter.

所以我們看到了連續成長。去年的競爭非常激烈，套件的銷售額成長了約 100%。今年第一季年增 62%，但在本季嚴峻的競爭情勢下下降了 16%。

Okay. That's very helpful. Much different message in that context. Okay, thank you.

好的。這非常有幫助。在這種情況下，傳達的訊息有很大不同。好的謝謝。

Thanks for asking.

謝謝你的詢問。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。