MXCT - Earnings call transcript Q1 2022

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Operator

Good day and thanks for standing by.

Operator

Good day and thank you for standing by. Welcome tot he MaxCyte First Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers presentation, there will be a question-and-answer-session [Operator Instructions] I will now like to hand the conference over to speaker today, Sean Menarguez, Director of Investor Relations. ahead. Go Please,

Sean Menarguez

My Director everyone. you Sean and Menarguez for Good Investor name Relations the call. conference of in Thank here I'm participating afternoon, today's is at all MaxCyte.

company's of Officer, available have call the President Executive XXXX. Interim website. MaxCyte Earlier from XXst, Financial we released on for copy and On quarter Doug financial ended Holtz, Ron March the results MaxCyte, and is Doerfler, Chief Officer. the press today, release Chief Officer the A first

obligation I forward-looking begin, the federal statement. from expressed that, Actual to due statements. the company or we expectations in in forward-looking turn or our or contained read SEC are Before need this with information, otherwise. forward-looking future differ of predictions may to following a the events, results new will relate variety no publicly statements of any implied The or Statements results, to performance during discussed those to in factors of which made statements, Doug. are whether call meaning that over detail to And events, materially this securities Any statements filings. forward-looking or call statements comments because I laws. may update call be any in of within future undertakes

Doug Doerfler

the I'll during you, with headline the everyone. good joining our financial and And call. and review afternoon, Quarter a Sean. detailed operational earning begin [Indiscernible]. And MaxCyte discussion Thank thank follow you First from for business that, of quarter

open questions. call for then will the We

the start to We are XXXX. with very pleased

of -announced measured at resources to to the more which call, performance and partners. of of cell-base in These but in strong the press capabilities very pre hand, ensure plan. year-over-year. sooner in a details cell-engineering on later as the will significant and seek to people as forecasted, financial our healthy in with additional all last month cell-engineering rate our yielding internal growing and technology MaxCyte in we revenue With revenue we we robust the a quarter the enabling program results XX% as anchored running our deliver invest today. core SPL but objectives our Ron related was development success our our that I As timing We to our provide continue than in premier team therapeutics. outlined business, ExPERT quarter. continues in published know generated growth platform results the continue our set advanced are be on strong generated first-quarter strategic up XXXX little plant the release year-over-year

As you challenge know, year. program related we for it's limited progress. visibility as revenue And expectations of into have partners clinical for provide precise timing information to such, general very us the regarding beyond the our

PA quarter sales. million, growth up drug XXXX Growth revenue very both record $XX.X instrument therapy was was with revenue to quarter customers over and to the by core year-over-year. First and business. growth XX% strong a driven a customers of in first XX% was XX% year-over-year was in Cell primarily discovery therapy cell the

of to continues encouraged expansion customer strengthen global and traction development We stages at pipeline. by are seeing across stage, our of therapy all cell SPL our robust base which with our early customers development

$X recognized the million milestone During quarter, we clinical revenues. in

SPL or progress, answering confidential to any our so specific partners, As clinical and their their indicated, respective programs. development questions partnership relating we not are we previously will strictly have agreements our be

the our However, have in we partners making remain the excited about clinic. progress been

by see including suggesting our and are SPL portfolio early partners see new as strength SPL be trials. we the revenues studies to predict. sales of and this trials it SPL pivotal signs of into growth we strong we hard team to is lumpy programs. seen of new prepared seen revenue them smooth additional progress sign as programs and SPL and expect to have leased may commercial program enter instruments, recognition demand; remain timing progress Further, customer portfolio business PA our Overall, and SPL can instruments robust first our partner's growing lumpiness XXXX. for product stage, execution existing core and continue those related from a We PA clinical commercial commercialization later of And well as individual leases would as partners of enough to clinical broad our customer clinical pivotal that until purchases out the in sales. and as The strong

highlight products and to we any our demand wanted support customers. from seen weakness not Given in strong the our associated that we have our performance, for

expert We and of MaxCyte’s platform partners aspect is development strategy. customers have their our strong a core relationships therapeutic believe and with

We development continue to to for exceed and and customers’ a continue new support. business pipeline. our expectations we growing meet scientific supply have And

the quarter, comparable XX first pipeline on both the clinical aggregate XX SPL programs signed prior with additional for this partners and In growing than economics We that in partners Bioscience, as, -clinical hopefully, to we we and at to of well their as commercialization meaningful which Our XX SPL have agreement months of remains XX% next XX In therapeutics from to progress, strong clinic. pre entered announcements going revenue development highlighted research and partnerships. which and call. optimistic more more last have the our over Intima beyond. near the now bring year continue are than SPL the we months an about we generate partner to term, potential are our partnership expect the to SPL

with excited most and investments the sales important investment of in-house particularly revenue development bioprocessing marketing, as growth XXXX and expanding results. and of our cell we're commercial Ron? right applications new process our Ron to of of as investments partners continued we drive success, the strategic expanding have management. upbeat financial now in to and We in market come the in cell on development These growth therapy continue strong into in these investments headcount and These quarter investments products. we will take ability the advance going support of emergence and goals. manufacturing, developing forward, call investing will teams, in support across and the including be in our our excellent over particularly getting about R&D for investments and making growth markets, turn about business. toward are today beyond. will In advantage therapy continue are to our our including and across and had making we they and I the programs support commercial in-house of therapeutic We're therapeutic we first opportunity organization, XXXX partners growth, labs. delivered and our our our financial as execute move alliance future companies, kinds and launch the to value to discuss This an potential making to closing, to have areas

Ron Holtz

Thanks, Doug. Hello, everyone.

from XX% million, We business instrument As revenue particular partners. discovery therapy $X.X quarter from was Doug business program growing SPL XX% growth compared mentioned, in a assembly in million to cell across year's progress of the during $X.X the saw of compared cell year-over-year. business strength of SPL sales in drug quarter. of the quarter XXXX, and with and program clinical related in quarter million revenue we $X broad related through of while customers customers million our and processing We both first in based $X.X our growing realized of’XX. year-over-year, recognize the the was revenue therapy prior drug core $XX.X to million QX in by first the revenue million cell immaterial in the first delivered $X.X in the XXXX. to quarter million compared on of in and $X.X includes record discovery therapy revenue milestones Core This quarter in both XXXX sales strong performance first revenue

XX% Moving the XX% in down margin was SPL of the related increase higher program quarter The P&L, versus driven in the was margin first quarter by the year the gross prior. revenues. in gross

XXXX QX, of expenses to from down $XX.X first revenue, was quarter CARMA included unchanged. $XX.X of were million SPL that that investments XXXX XXXX. first in our compared platform. expense operating million million margin recall winding Excluding Total the quarter the in gross for $X.X And of relatively

[Indiscernible] lab occur field to quarter higher field company related expense manufacturing, to science, until period sales compensation expenses as our to in to of of did mentioned, organic driven our investments third compared stock-based and in growth NASDAQ the also XXXX. over the make ago a years. across by year advantage support the increase opportunities primarily operating to strategy Doug take business meaningful continue coming to overall to increased accelerate growth As The listing of current the Growth see is the level teams. in same was contributed not headcount the expenses and we and

of cash $XX healthy of new first We our expected in see balance cash QX end headquarters short-term at and equivalents million debt. total facility. have be we and is first began a as to no of investments in XXXX. quarter, the investments construction in in investments of and Note that year our Total cash million this the very new the with to portion sheet approximately $XXX

strong XXXX at We compared and our disposables increasing business, now revenue. cell discovery sales quarter business core in leases therapy grow first the instruments and of We from and to which about for to our drug include momentum balance cautiously are XXXX. saw and expect of XXXX. outlook We business optimistic revenue XX% sales core of to customers the remain least

is where Turning expect visibility. related we expected SPL calls, as previous of account of the our program than SPL earlier revenues into regulatory QX our revenue on we have $X to Doug? and milestone to approximately in discussed continue revenue, economics, clinical the customers’ we've limited progress, million. SPL XXXX Taking program timing predicated

Doug Doerfler

In the technology not as the for platform development Well, remain therapeutics cell-engineering Ron. patients may summary, advanced supporting that to excited have treatment opportunity thank about the options. the industry you, cell-based otherwise lead premier of we forward

to we want Board, take As investors, thank suppliers, have that to industry of amazing serving. this the always, honor we the our and opportunity team,

positioned ahead. are MaxCyte first and We report the we very pleased for to are about strong remains opportunities excited results growth, quarter and well

now are up line for opening the We questions.

Operator

Cowen. we Thank you. Masucci the stand-by while Q&A Please from first roster. Max compile Instructions] [Operator our question from comes And

Your now line open. is

Stephanie Yan

quarter. Yan and is the Thanks Masucci. congrats Hi. for Max This taking for great Stephanie on a questions,

SPL out? XXXX molecules your what's and the clinic frame, seeing? to cell If therapies therapies partners the the emerging XXXX of them types recent have you more Are look and any at call compare diversity the in during you trends you launched of supported to are broadly time the some to there

Doug Doerfler

and question the for Stephanie, thanks Good question.

We of XXXX. bit are seeing movements since a quite

a that We're seeing lot cells. of some one to gamma on and from being cells, T T CRISPR, deals of our cells subsets, Our done with continuing, delta B first now companies we're of we're sorts and focus seeing first and multiple move cells different edits cell seeing K T cells.

being the just populations edits increasing. the complex I quite seeing seeing are tools transpose of some for like again, -- mentioned. nucleases, zinc them transposase. We're been subsets Think have time, finger some different So used, around cell we're on more which

seeing We're stem tools - comfortable are movements lot we're new infectious [Indiscernible] [Indiscernible] auto-immune beginning And field with indication treatments. into with of as whole their We so to with in working disease. of manufacturing a explode engineering allogeneic some people we're customers cancer. also in this our stage in more just inherited autologous We're their and also principally and disease sickle-cell think in seeing these disease difference. disease neurodegenerative stems methods. And seeing cell areas, also really CRISPR T-cell is also some become earlier seeing Obviously, and much and program.

Stephanie Yan

or entertaining pullback a And changed of recent likely the you Are all? super it. transformational towards Got some more publicly asset later, That's and your some pullback in with bio you leaning value, complimentary towards helpful. M&A [Indiscernible] M&A peers has more degree manufacturing in traded approach deals? private at also are

Doug Doerfler

financings thinking Yes, reflective, financing the I some movement market. -- the private decrease few It's seeing we're public now. in behind in a in think the I'm months

our an exclamation put -- seeing we're any our partners. not to demand with just of -- think reduction for point products I

about expanding group. our So We've always that's corporate good. thought development

solve not our opportunities, deal they're it's the that big say cell a far where talked to do Our and that, looking if again, we're we moving to confidential, in field. opportunities having -- we but to think can too deals, very for staying be, are How I around think downstream, we for had our targets the customers if different going I open these knitting; problems think customers. space, to we therapy really that about close and fair close staying to upstream points pain solving do I cell-engineering but all are really we the engineering several do

Stephanie Yan

if And more. Super it. great. That's Got I in squeeze one could helpful.

you data. last provide product of were During any highlighted that on beta with detail the several share ExPERT call, beta you the Can VLx the application to progression the you launch more roadmap? or working on build on additional the VLx customers milestones some

Doug Doerfler

in investing refining we plan. Well, at sure. and release fourth in product of of a large think it's really interesting the the We and scale We is released in year, the strategic a disruptive technology marketplace this that focus XXXX. was in our We that point business much highly did the and this quarter bioprocessing. think very

that of that monoclonal there's it's too. term antibodies. a think process post development. of -- of one And take to with need movement. the move It's of in we again, a focused production the our VLx immediate with volumes. think our customers working a applications. that to our today, to the I scale with think broad It's investments, the is the in bit for of areas ExPERT the were this we're We from very We opportunity if all done and areas That's the electroporation us process. and way opportunity has be for through work excited in large, -- engineering have support the you to of STx, amount up and going doing we bit mid-scale, I is quite time rapid the there's the small is that follow about to to company. applications done STx partners ensure move which we're so the to marketplace. these So expansion that companies, on we're is the that's think pre partners, area build to for this ability opportunities support with to the And customers that our work data it's it's natural larger a progression significant And as their

Stephanie Yan

Got Really it. for much that color. Thanks so it. appreciate

Doug Doerfler

you. You bet. Thank

Operator

our question Matthew And Larew comes Thank next William from you. Blair. from

is now line Your open.

Matthew Larew

up seeing [Indiscernible] change, the good and change you it because curious -- from but any that Often all -prioritization topic no certainly it's afternoon. would programs but in earning X a been of loud that lead be X Hey, demand pipelines sense at per have just such customers and terms this customer clear to season. with if beyond or make assets. [Indiscernible] would reprioritization no assets, de there you're of secondary from customers

Doug Doerfler

not seeing this that Matt, we're it really point.

in they're -- But going that pretty pulling see back back, much on may programs. confidential the our the they some I aren't pretty partners on can would these vision think what's we be if of have lead is preclinical on. that pulling two to back far as focus with that's it's the again, that ability A pulling or -- you usually asset on see, work our those. like number company, -- And lot as we the typically on companies suggested.

is grown business a quite has The bit. that our other issue

core in We business quarter. growth strong have first the very

that's think evidence at to be moving I a rate. forward continue pretty So things good that

Matthew Larew

hiring, in And and out you're just if able at hire you're you've to there just Okay. then been terms curious, of pace what with expecting. what seeing

of sort what I schedule just it began I'm on -- the a think curious if felt front. in we that's little you've you've might efficiencies came bit of if light were all hiring any or thinking. [Indiscernible] in at that

Doug Doerfler

terms how I'll -- expanded a company. team hiring of in creative we're I we the very Well, side in building. work human think have our We're I'll also it, very active expense the talk talk people being in being group. Ron -- let We've of about but resources

you at as think, it's about And bring tools you changes that We're them you right seeing couple work we're need challenges. last they to and people. of of and of of them one? primary to the series think been Over a bringing pretty expense way the provide going to do the as would primarily years, virtual. find you, I I well. talk many know, of the first if great you you its all management own has still for people, that like leadership But virtually, that Ron, course, in in the

Ron Holtz

hiring want. we're that I people successful Yeah. being we the --

that I it that might competitive we what think means more for little seen take bit That it's years. ramping effect, be prior environment little people. a it's a competitive makes we've more headcount. bit don't material behind plan time I was in to find but a a think environment our

We hand, hiring have the want candidate than people they in that a more the successful we in seen we're people find being other past, we've are when winning want. we we often the but offers

that's I well. gone So think

Matthew Larew

be compared months Thanks, we heard in last was months you've Ron. or key you perhaps Okay. hearing newer just your been anything have on of launch to would you're or which ago about what you relative there couple that about as just even Last where device highlight and to one differentiators, space, technology? competitive just feedback maintained a been see had the launch? curious be what of two this there if Is out it

Doug Doerfler

not that to This Matt, obviously commercial for of not a [Indiscernible] is product not the in the of it's We're seeing bake-offs say role it -- customers we're a time. with to that. book some any meetings. quite playing going couple I'm it the it’s our showing I'll impact I'm the up they've the major They're seeing So so product up give -- talking showing not been competition. things, going [Indiscernible] to but give about, in

cGMP, our the and in on scale, thing I performance, flexibility, our supporting think cell-engineering is differentiates space. the that customers and I and and think us focus

a an more and area just lot company. to have pretty is think a of interesting it future that's So, our brings I we validation that benefit for going the this competition welcome

Matthew Larew

That makes sense. Thanks.

Doug Doerfler

Matt. Thanks,

Operator

Thank from our Dan comes you. And from Stifel. next Arias question

line is Your now open.

Daniel Arias

questions. of guys, arise just your into can that some words, of gotten as whether mentioned the for Doug, have with the lumpiness in curious events. prepared pushed stepped you well. is your or to of purchasing mindful stage new as with out something a scale or into respect be key is some think Opening finding that be a that milestone In consistent? have ahead stages, you to being milestone to how I'm and consistent the it there trial are more you a their and or maybe step-ups other around marks. then partners thanks about individual we up programs you've to Should down less comfortable the afterwards, later spending

Doug Doerfler

I lumpiness clinic, I the we the of is point don't I that the only know we those, know have because around number. mathematician, XX I'm have larger of we some not that at how a in actually number bringing know the to really get but ANDA number milestones themselves, so think you we out. think a smoothed

seeing still and been preclinical, development. I with products as call think they're their experimentation clinical call us, once don't a some obviously, clinic. non-clinical well. on quite it's because We're these preclinical bit work doing to -- seeing of new of they don't actually companies being in going into that's so the that's non-clinical alongside product ramp-ups, we're these I mean, they

on think of of don't because what like. So looks a -- small really the good handle programs, have we're relatively I number demand we

to of manufacturers. reasons elected the that's more one we've doing think why start I in-house

will of that. in and obviously, a customers. Hopefully, a of of couple couple these these -- the And We years. of flexibility of commercial questions moving -- your more that these of things the to that of we have start next the products with answered some once we one support launch into

Daniel Arias

coming within guys I Yeah, Maybe talking different naturally just, on another was like account it, like it the it like discussion, of which markets the delivery us new able you've right how it's call what And kind Are like and mentioned that potential. non-viral wins. business you there here. felt If topic, about had you share it were your put to months at or and was months some ago year X update clinical a conversion from it happens so. that that way, go it the think was a just on that look back the development of new had then XX% and I in -- was to time on listing, TBD and XX% chunk when to XX you're we seems of you the ago? as good it converted business business

Doug Doerfler

forming say our in to medical can a begun -- more many within to stage I our can't have and meeting spawned that's we're focused are update bit [Indiscernible] around They're the sales where you technology. academic get into we're from. business the we've academics these and of even day, once at converting the have a setting. and marketing to it also they coming an goals because all end that companies someone's effort in these We're quantitatively, into And manufacturing clinic, winning we've company the centers, qualitatively much working cGMP where -- and them. early of an translational of but the I effort the lab that suite invested clinic a in companies of or a out

get future. feed that early think so going for the that just to embedded pipeline -- technology we And that's enough, SPL if our we can that in

Daniel Arias

Okay. since here. the we one feels I Maybe if it in could here just have like more time sneak

if so, can least where more in you therapy out or organic of strategic for? move the or inorganic the do VLx, you alluded this an and part side? in that how year evaluating that we it, plan or upstream of this would I should be effort I at you do were an were you on, trying you what think, but that that. Is had the think on with to to touching downstream On into was today are eye something And keep comments year your cell

Doug Doerfler

again we where We've around, said group. that the call, in Yeah. We're I steps. development solid play. -- first corporate strategy think another spending and around [Indiscernible] building around time like we a want win generic And been on can lot I of to

to that believe build do. need able be we where are of Some consistency, ways of marketplace real can has may to techniques area, of that an product more going become organic being looking opportunities a what control we in in to basic think we've potency, likely already become for identified some product be which the product more in. there's issue. analytical the we into the And more that these [Indiscernible]. opportunities not and some we will in most We be characterization, manufacturing there's early These do

So I that. think want think our we're team we've on we're stay were that there, in focus proprietary got enablement. and you up a -- company, up high-value really if manufacturing quadrant to our the about on We sector in

can a bioprocessing investments and so that be is been level like they we've And a quite achieve want that Because and in as as by difficult companies a about in quite isn't and a if -- -- number are months we were hard industries execution successfully. marketplace are of think nine Technologies products used there's maybe make bit and to risk. opportunity or to certain -- whether there's investment, today's boards be smaller in going I I also or sales [Indiscernible] And those of being it capital six very other not able aren't quite they -- in that markets make to there. take of be technologies capital being going are as there's think And over. ancillary have or environment, want developed that to ago, companies they marketing. to think that smaller that to XX where decision make thinking robust there's

Daniel Arias

Helpful, Okay. you. Doug. Thank

Doug Doerfler

Dan. Thanks, Thanks.

Operator

And next Jacob you. question from Stephens. comes from our Johnson Thank

is now Your line open.

Mark Belford

Jacob. for on Mac is This Hi.

Just of quick a from couple me. ones

much development focused And drug how side, growth On in think do marketing how much this sales R&D you investments of of talk are the segments? and side and in business? could about the accelerate the this the you can on

Doug Doerfler

Yes.

we're Some on couple to see I assemblies. benefits over the made years the new processing We've of think of consumer starting investments. the -- last

talking rather [Indiscernible] more to flat, have and accelerate the would discovery, think to a to we a that. We've up. customer the can wanted market's We'll got the on customer been, And first of -- that launch probably continue the So focus voice side, quarter happens, better -- the and minds, the the going robust try think I we The that more successful build our can we've to initial that therapy. launch that cell drug to we use slightly I includes off the we'll when antibody. business. bioprocessing be do in been which And is Because in VLx we I discovery. drug and reasonably bioprocessing, really cases drug we not is the to [Indiscernible] monoclonal focused voice in be that of in I scale over bit. of -- think and think growing we're it discovery that first include mid large about continue a able picking production year,

hopefully sector in you're to think the going a drug make see to growth I in of investments as we that quite continue side. So bit discovery

Mark Belford

are quarter for of the seeing you markets How European Pacific you? Asian interest opportunity commented last Thanks. that Also, outside an large the U.S. and on you're

Doug Doerfler

some there We've throughout be growth to the been for and strong quite in and time Europe continues UK. EU just

sales marketing So we're there. pretty basic in and operations

We've to So I into, of attention growth carrying in but think We're We're prudent That's think a some out the we've tough on. in. had investments success. that's successful particularly we're maintain sustainability I think tough to, it's some market to I of a level tough be China. there. -- think, focusing making will in best the market it's I don't what therapy that. be our certainly approaching and that a cell market get very seeing we're really way

had success of we've lot Korea. some extent, and, think a Japan in in I

the I continue Asia. Europe. see of of one interest I our Europe therapy. And cell backbones focusing So in now you think us mean, of course to in is

Mark Belford

right, Doug. thanks, All

Doug Doerfler

you. Sure. Thank

Operator

Thank question next you. BTIG. [Operator Instructions]. And our Mark from Massaro comes from

Your line is open. now

Vidyun Bais

for Hey, is the Vivian Mark. Thanks This for question. guys. taking Wohl

that later customers the can existing very at your present for in in detail your or on portfolio, any of are you Thanks. development. So share rough stage SPL the clinic split

Doug Doerfler

Yeah.

only partners and and I XXXX. So a XX% of with in what we're of last products out what partners that -- there by do is think supporting. bit analysts been terms year, are said partners, we are there's XX quite share other and end those then associated XX in the And programs I some we XX the And clinic. know views speculation of, the

disclosed joint which is the disease. we're obviously the have cell sickle that publicly We deploying CTXXXX, for

us we we've in been for some the deals, all think mentioned, these as less a are confidential. I bit because of programs, other

about So feel in comfortable talking we those setting. really don't any

Vidyun Bais

And Okay SPL panel. just got on you. can touch you

I three a think are four per sign about to discussed progressing? conversations you've SPLs any need there. and how just update And to this year previously the

Doug Doerfler

continues Yes. robust there into very signed first year. of the been The be We quarter just this as merger. pipeline has to

three We that think building development specifically. And out our to we're group. Management or four guide continue to, group, business I I Alliance [Indiscernible], can remember

a that that. amount think So we tremendous to there's of opportunity

our One of the our our sort being from negotiations, to them master in founders, actually and point where with it to That's has partners of technology, roll things. to besides -- progression the want does turning IND-enabling preclinical in our move have patents, the access our do of more studies. they

Vidyun Bais

for Thanks Great. question. answering you. Thank the

Doug Doerfler

Sure.

Operator

to Doerfler And further turn like questions I'm I'd this closing time. showing conference back Doug to remarks. you. Thank at the no over for

Doug Doerfler

a of out and and think well to we're And of confident the the and obviously, amazing and indeed portend we're in going sentiment in you your great in for we're the think investor for I therapy questions all to MaxCyte next and thank Well, and really that's XXXX industry. see some amazing been support I start It's -- your and over despite the MaxCyte. Great. the an very hopeful the interest cell clinical quite data general partners quarters to going particular. industry coming several then that XXXX, our

safe. be Be you again, So next the thank and all to certainly we if And Ron. we look forward subsequent this and support will have. you, for all any you. thank have days, ir@maxcyte.com. Sean. several thank questions, you for with as discussions Thank -- you, Thank you can and particular your call. meeting at any in the Operator investors you you us Thank Gigi, for contact But will

Sean Menarguez

care, Take everyone.

Operator

call. and may now participating concludes this you you for Ladies conference and gentlemen, today's disconnect. Thank

MaxCyte (MXCT) 10 May 222022 Q1 Earnings call transcript