Earnings call transcript Q4 2022

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Operator

Good day and thank you for standing by and welcome to MaxCyte’s Fourth Quarter Earnings Conference Call. [Operator Instructions] Please be advised that today’s conference is being recorded. I would now like to hand the conference over to your speaker today, Sean Menarguez of Investor Relations.

You may begin.

Sean Menarguez

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

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

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

to that, turn will with call the Now over I Doug.

Doug Doerfler

detailed evening, Sean operational highlights XXXX quarter during the everyone Thank and review of followed MaxCyte’s and Ron. business financial will a discussion from our call. thank afternoon and begin joining you, I and you for good earnings and year good fourth full with by a quarter

We open will for then call the questions.

revenue call in more revenue, MaxCyte a the regarding business discovery representing company. revenue cell in including growth in from from total in first of as grew our XXXX. in drug therapy year during by driven revenue of XX% a NASDAQ-listed XX% financial and customers year exciting excellently growth year-over-year growth $XX.X X% full results, Core million XXXX year-over-year, customers. revenue XX% for provide full will an and our our was performed team strong XXXX Ron year details

quarter, of discovery fourth revenues from to fourth compared to quarter and the drug growing For X% customers the X% revenue with therapy core XXXX, at X% increased cell year-over-year.

driven growth offset Fourth expectations to primarily year. by prior below in the was as instrument quarter and continued compared by PA was sales sales strength

clinic million are lumpiness revenue $X overall. our purchasing for growth million commercialization, in partners in milestone business XXXX, revenue the and the We experiencing sales approach our over some the We million. the approximately saw in patterns. generated XXXX, we confidence through progress the PA PA year $X.X exceeding in of XXXX trajectory during As guidance supporting $X.X of of revenue milestone year fourth full quarter of in full milestone and strong our

exa-cel programs currently the exciting several partners continue which to with through we commercially entering the to approved see approval. first seeking and/or partnered clinic with product a progress marketing regulatory path Our and a toward make progressing is continue program,

experiencing Overall, that our I across development sector and programs. therapy a stages is growing cell out global point the clinical diseases. base customer is of want of to expanding do delays all variety in across

alleviate to in However, of or developers many that little new disease patients this and due development. for to program rationalize assets pipeline and continue companies internal challenging lead constraints, focusing their as but to a funding in we industry year their investing see believe the the maybe on We have be endeavoring alternatives. modalities burden the is development expected XXXX to of therapeutic for no

clinical with positions and/or are partners our asset, As second program well. us lead year, discussed typically working last we which

we modalities cell across of developers which comparison novel more new in Additionally, we work a approaches, of therapies. formation engineered and generation more are continuing targets. crowded the This next well novel the and types, in on data cells to heightened cell to clinical complex crowded positions as company will us novel therapeutic result areas financing regarding focus variety through especially to rationalization and see in to engineered clinic. disease bring see Furthermore, in enable

supporting is a assets the the disease advanced modalities. as numerous across most modalities sector with also focuses MaxCyte promising to good is positioned needs. programs therapeutic investment clinical of variety cell programs well and Rationalization of clinical patients types areas, and unmet medical on forward target clinical therapeutic

the We sold particularly now at academic the XXX therapy just of with end compared with over or encouraged are centers. including XXX globe XXXX. than leased our traction We stage by early to customers instruments greater leading translation the customers, have cell development around of instruments as clinical

and partners The across XXXX. prospects the potential approaches and partners, but continues a they we number, Additionally, are and the our and autoimmune partners of Both wide for conducting begin disease our in partners new greater partnership expand only to we pipeline of individual not at solid specific as of their to partners work indications, confidentiality to and late-stage current that Note cell related therapeutic partnership indications. existing answer than their array clinical our progress diseases, or programs. tumors. new questions across not were development due today remains neurodegenerative development able are and breadth preclinical including the ago rare our agreements, year stage to pipeline robust clinical types, are of modalities any respective

one three far In added in partnerships thus and have signed XXXX, XXXX. we

program States regulatory a Vertex seeking established currently the of following for in and which beta-thalassemia. approval Europe transfer disease and cell exa-cel marketing CRISPR sickle is the with partnership from We the also United

add our The with CRISPR partnerships immunooncology. of partnerships and of supporting we XX Therapeutics our in retained rate addition, In today at expect CRISPR/CASX-based historic XXXX. at stands therapies as total in number partnership we to

XXXX, of our which million pre-commercial compares of the programs, active increase payments. total in as year revenue now the potential think for billion As pre-commercial more programs an of billion, programs allowed The over $X.XX XX our for XXXX, programs clinic end is to $X.XX $XXX of clinic. in December greater potential which partnerships partnership the drugs, milestones covering from XXX SPL XXXX. partnerships end active This were of XX XX XX than than were XX, XX up of of at in

diseases, with a a their biotech and cell fourth partnership treat At that we region end proprietary using partnership our Korean intractable quarter, in Duchenne to cell the and Curamys, we profile. This are the encouraged second partnership and of therapy fusion develops gene Asia-Pacific technology muscular of the dystrophy signed the signed expansion South the our ALS. including is rare by company geographic

Boston-based in signed biotechnology Additionally, cancer a cell partnership therapies cell carcinoma, XXXX, early we this solid renal developing cancer. of including off-the-shelf treat with company CAR breast Bio, tumors, novel and Catamaran year a to NK a variety gastric

focus exa-cel per important as recent in therapy X following non-viral If will modality engineered our MaxCyte’s therapy less to XXXX. the patients. cell most approved, XXXX XXXX to see beginning product new a we and solidifying be therapy therapy new premier the cell believe progress year compared in cell positions on an to the end position recognizing and gene engineered it first from concept in the X cell market, PDUFA non-viral years to encouraged also and than are funded therapies FDA of the We cell gene will non-viral cells prior therapeutic of establish legislation XXX commercialized and enabler as in FDA in average X approvals

These the support and of capabilities in invest partners’ science, of engineering organization. multiple our investments our areas toward and as quality and development, as field We alliance we progression people commercial support expansion the launch. commercial investments process markets assurance, teams progress our made of internal supply global included clinic growing to support XXXX, to for to teams. through in and applications, end well intend sales, important in and marketing In and capabilities our customers the regulatory, across continue to our preparation

Rockville, new in of XXXX. with We the in also manufacturing expanded Maryland headquarters in-house our capabilities opening our

focused We Large during of STX. XXXX the many access platforms, the for expands applications manufacturing such the launch currently of spans current programs MaxCyte expanded and across a launched case ExPERT into instrument September preclinical smaller offering bioprocessing use a capacity capabilities platform and and positions customers, future programs This early development our shorten as and support broader greater partners of potential partner current in on of System and our scale existing of and integration ExPERT VLx as workflow Our VLx including and stage early-stage to clinical The and are broad us are enable transient range Transfection Scale The key several scale later to our development trials. VLx instrument users on grow commercialization. applications, flexibility. whom is customers of scale the to production focused large-scale development capability protein timelines, manufacturing. have

enhancing our to commercial in our investments continuing support are development investments financial customers ongoing and include expanding capabilities we and and make product as our as development. XXXX, including growth success manufacturing capability, automation, future MaxCyte’s internal teams, to partner These success. well growing investing process In

well funded of our to sheet positions support well strong $XXX and the to next-generation cell continue investments make continue a momentum of continued we team and to therapies. over our in to us base We believe in applications targeted investments customer market success finished year across We in enable addition, business the long-term. XXXX rapidly for expected balance and XXXX have our our growing million In the growth.

the Finally, we summary, results, very our as be MaxCyte to cell to for deep well of Patrick’s generation Board with appointment an our to will are over in XXXX year on we execute asset our we’re in Balthrop discovery, and life commercialization. positioned pleased we invaluable In long-term. strategic team next objectives through continue pleased Directors the and the sciences and therapy full announce December, advance Patrick experience believe began XXXX of of the we development financial

the I’d to hard cell-based close call enables driving MaxCyte and our turn the next at I which discuss now thanking will the our of to their in generation for success team like dedicated financial Ron? over therapies. Ron results. to work, commitment by

Ron Holtz

currency immaterial or that and held by Thank of question few the have a account represent recent events. you, Valley foreign want did amount mind its capital past company Silicon due at top risk of may to material start events the addressing assets. Bank. a small MaxCyte to I no transactions to account an of That days expect Doug. be I the

quarter. cell X% Turning fourth revenue although in includes XXXX growth. XXXX somewhat year $XX.X $XX.X of of year $XX.X therapy growth, and fourth was million, million we revenue in million total million, representing offset compared X% to discovery was fourth from growth the In quarter quarter $XX.X sales, to from XXXX Core to $X our was million XX% XX% by the Total the growing quarter, to fourth revenue up compared continued or compared results. of revenue reported the customers core in as financial for revenue strength Full of of by or quarter $XX.X revenue million, the million PA of sales over XXXX. the $X.X timing fourth quarter of this driven year-over-year instrument drug X% in year-over-year. of prior growth

year. As PCLs Doug in late some explained, saw the we in lumpiness

growth However, that business XXXX, a sales driver overall. our was confidence the overall, PA trajectory key of in in revenue the supports

million We XXXX or For in of revenue growing customers the in year-over-year quarter revenue progress clinical fourth quarter million core revenue in to as XX% full cell XX% $X.X XXXX revenue recognized growth. partner year the program-related we SPL to XXXX. million of discovery strong of X%. immaterial fourth from growing of compared milestone therapy XXXX, compared and revenue the on reported includes $XX.X drug $XX.X This

of exceeding For our compared to million last million as revenues $X forecasted $X.X the recognized we guidance year, the in in year, $X.X million. milestone milestone prior approximately full

of scientists Moving cash margin increased were into and Total in partners in to line the December operating our was both field operating sales, and of $XX.X the and position of commercial investments as debt. and healthy believe lab in XXXX our growth as down XX, strategy in Heading made million investments have field expenses and with teams. the in quarter they quarter equivalents expenses XX% XXXX. of through manufacturing of million, fourth and support the XXXX. P&L, us our for XXXX fourth balance we application we XXXX, staffing sheet $XX.X $XXX gross and million stages. cash, invested quarter compared We of into customers course, combined the of long-term The no short-term well clinics to XXXX fourth the with a as engineering and XXXX, into progress was

our Moving for outlook on to XXXX.

and SPL XX% expect XXXX, core of XX% of between of including approximately business full and revenue total between XX% We XX% revenue growth million. growth over and year program-related $X

challenging factors, we and As we somewhat years. to other and in for believe Doug forecast continued which our positioned strong environment macroeconomic well are discussed, incorporates guidance the than broader some XXXX XXXX, for more make conservatism growth past

and the is clinical we predict discussed regulatory in and to progress of customers’ core in more revenue our As difficult it’s timing revenues. fundamentally have previously, therefore, partnership predicated

As that I ‘XX, progress. that’s our in XX risk-adjusted point announced under And initial to revenue is and our million. milestone noted, want partnerships clinical potential a forecast of approximately a expectations variety is for $X achievable outcomes out that, their planned across

I’d XXXX, worth purchase can later-stage in TA’s, and And partners stage those a to expect annual later effects second half, as we’ve as outcomes to quarterly instruments and and more lumpy, those and important commercialization, seasonality be it to XX%, patterns normal we’re approach XX% and it’s Recall first with context, – as in XXXX. highlight on that return impacting in first brief historical like magnitude that an seasonality but of second comment seen that later of near and seasonality approach to XX-XX half will SBL what the versus split, with add that XXXX seeing grow enter milestones bit grow half we we first grow year confident from expected split stage was are continue revenues partner commercialization. partners partners strongly XXXX. XXXX. of revenue our And by driven we commercialization. the anomaly a noting to partnerships see – XXXX, dynamics in of deliver that of total the through as can for half the In XX approaching a very development roughly revenue one

expect our are strong investments position our we year XXXX short-term cash debt. as of and to approximately cash, Finally, and end Overall, this year with with financial we million to note $XXX I equivalents want no performance. full pleased

that we debt-free cash burn We’re modest future sheet profitable growth. for confident support will in believe and outlook, and our plans XXXX our our balance

I’ll to Doug. you, turn Now back it

Doug Doerfler

Rob. Thanks

our opportunities are we XXXX year growth our in and beyond. summary, remain in achievements about So and by full encouraged optimistic

as technology We’re the the of patients premier have excited advanced engineering lead opportunity cell about therapeutics for to development cell-based platform industry the otherwise may options. the forward who supporting treatment

of aware success. challenges industry We the enable working our to fully hard industry’s and are in and support the are

industry of we our for amazing As enable partners families. and team our suppliers, the well that MaxCyte investors, honor and Board, of have to patients therapies always, as the as serving commercialization their we think development the and

the our operator will Q&A. call back turn the I over With that, to Operator? for

Operator

from our Simmonds And Instructions] [Operator Julie comes first question Gordon. from Panmure

open. now is line Your

Julie Simmonds

Thank you. set a results, And good of congratulations guys. on

just looking question, new required mind end of as potentially has this you more of year a that that part In Does it are suppose with regulatory as and I sort sort process one to mean moved into up assuming are site terms I’m perspective, because by to your of whole? is the what the having this particularly you comfortable there year. from potentially one product of – of for process your speed risk first of that’s the on at my point the this obviously commercial is that your part

Doug Doerfler

is anticipating in making years. the reasons that hopeful thanks are, and of last several one And quality for been investments the Julie. this we’ve Well, the I the we mean, now something systems. we’ve why question, been for It’s

our Our new manufacturing and the in is we closely of their how our regulatory line we’re chains And terms operate ensure expectations customers. to board. with control Vice with expectations and our we that work on supply President of very to partners agency’s in all and

going at we’re be this one to them commercialization. regulatory final to that through and confident into very product’s we’re So path continue final to least able support –

and comfortable our very with we’re investments position. So our

Julie Simmonds

you. Thank

Operator

Arias And And Dan our Stifel. question from comes thank Instructions] next you. [Operator from

is line open. Your now

Dan Arias

across the just the specifically Doug, more that feel market. sensing good for Can or pretty business, Thanks. am the the extent just mentioned out in talk the It outlook. I bit of a the on you your to or Thanks and increased just the seems I on related but view things customers appreciate you you’re industry comment which about the guys. the some cautiousness dynamics about window like are the you the questions. some the afternoon, Good that landscape? seeing to

Doug Doerfler

mean a hiccup we a it’s Dan, general – than week. of – bit a obviously, had hiccup a this last I more thought. is

that’s going look on – harder that are think take think going it’s to I at to value our the assets to a to partners. expenses Focus next I everyone the year. encourage bringing company,

that typically many or said we’ve As times, we their working are lead with asset. second

We’ve that So on on. I with think called part, that couple there programs rationalization to going a large that’s in have of the we also some not know going sickle weeks. impact But cell some in last us. of the negative is

to is I allogeneic probably to that start view the we of going with – programs. other think my are you’re going also seeing some

of sense our clinical developing partners these going lead some my others we to are developing start sense show assets are that and And is is remarkable As our that – that, happen. are data. pretty some developing, rationalization to

having end to programs. up going culling You’re some of

personally, my involved this – of number stage forget, I So early going think to sense, what and development to some a we’re with, involved have we’re is assets, still stage not with that’s early again, be let’s there therapeutic of very part rationalization. with

it’s So overall more an of view.

being been ability our to build of a think that effective a the recently, cautious, partner have more I market in to be and with global we cover more but to our We’re more effective supplier. investment also and able

Dan Arias

much. very thanks Okay,

Operator

thank And Blair. William Matt [Operator question you. And next Instructions] comes our from from Larew

Your line now is open.

Matt Larew

thanks and questions. Hey, good taking afternoon my for

more clinic to of a to that just pipeline be rationalization bit of progress, the a to in – have area the clinic. where Sort partnership that terms to the with I size nature assumed programs, closer programs your I getting in in and two-parter an the up has programs, see guess number continue assets of wouldn’t would by XXX numbers went thought growth XX the XX have the of not on you might over that from moved and

of case, these just of part of within always or being million $XXX paused rationalized? was into end of there part And or signed that partnerships of And bucket those be, function timing? programs into are the second progressing? that been So the a has maybe Are perhaps are would all at that the that year. the programs actively fit then SPL that this

Doug Doerfler

don’t part in has get programs coming with to are answer there data. But decision. first out people that been your the programs in on – We our your has based been some question, of programs some involved there or partners. strategy So, of Most and out them and dropping of the in. –

So, the in the said an in to develop company. and that the our programs be revenues increase commercial XX – net affecting effect of has payments we been And clinics. right number And now. would I milestone those XX for the eventually ability directly think

assume it’s in going So, a that XX for be Of of let’s the named for typically a deal, just could deal, let’s those had are within direction. targeted that say, we minute, a they indication. target it’s that views, good other a named few actually deal. Many and programs an a XXX, programs

they programs what the be be within of other some field would would And views. unnamed a of general

of we got a I clinic. being those number mentioned them clinic. have XXX, are in XX early-stage Some But the in pre-clinically on worked of

along Does and question, that handful options on. than a So, clinic pre-clinically. XX are in that moving Matt? then answer are are your there they some more have – a there And the is

Matt Larew

that but curious was Yes, think taken I Thank go them read think helps. you. I I and notes again, to so. back

Operator

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

now open. is line Your

Jacob Johnson

Thanks. comments assumed you largely cell just on evening. It back the to related then could or Good if for rationalization the this side this FY circling like Hey. as programs to kind relates was process of assemblies. what’s Doug, the Is Thanks. comment of guide on in sounds lumpiness? just things. ‘XX around consumable And it maybe in of Maybe, therapy. just

Doug Doerfler

Jacob, let question. me – thanks for the

Ron. it me over turn Let to

Ron Holtz

Yes.

many has preparations for is year happening years. The towards into So, commercialization. thing key the partner that’s moves last consistent commercialization pull-through quite across as generally late-stage a and been

long-term into expect, As of commercial you larger a stage. customer of from growth would that’s moving the clinical and stage gets part their purchasing

And on quite growth. Closer lumpy. quarterly so strong in, big is looking the you picture are basis, that’s a if

large fourth And child why which that a in and year, so, associated happen is we up part of in those approaching quarter. split sales, later-stage ended companies poster XX-XX saw we strong customer, that’s with is the what particularly when of PA and for the with lighter sort of And PAs can you most early have a commercialization.

Jacob Johnson

that for Okay. Got Thanks Ron. it.

Ron Holtz

Thank you.

Operator

our Thank Massaro you. one for comes And question our question. moment Mark from And from BTIG. next next

now open. line Your is

Vidyun Bais

question. Hi is Thanks for on the This taking Mark. Vidyun for guys.

FDA Just to partnerships clarifying SPL just on XXXX one, as regulatory with quick agencies? from to confirm, are material a excluding such the approvals, any guide, the you other respect economics or

Ron Holtz

That’s Yes. question. a good very

program-related do have It has that confident for us number can potential that that We look And number $X clinic. looking we risk-adjusted a approval number. would on the programs a feel to to but you and multiple scenario revenues, saying may our by the analysis, as achieve. allow what all if that broad in and there to milestone that So, can they we milestones some based partners that we guide were at SPL get company looking scenarios the come that about does been for analysis include numbers the million at that the all doing revenues. XXXX their come progress for in occur

same here. we predictable really position very back where not wasn’t how – I there look that and because number. in was you achieve was If have think $X many if ask we started ways told to to that we was were when would would are we confident me we January there you XXXX, are I of – that guided hit in would I you it. at something And that million, the And it get

are million get a multiple to $X ways We There for there. have us guide.

up expectations large analysis. what achieving is small approval that is of dollar of our way a a that is with communicate coming that you expect challenge some We scenario and involved have here part million And our $X of milestone the to number straightforward revenue events that a number.

Vidyun Bais

taking Thanks for questions. the

Operator

[Operator from Max Instructions] from question. moment our And question next Masucci one next comes our And for Cowen.

now Your line open. is

Unidentified Analyst

Thanks Hi. agreements. color your those Stephanie Did a revenues to early you the around contracts material This VLx, structure are early from your on access my for And Max. great on taking for you great year. contracts It would get and and access realize questions those some assuming VLx revenues for congrats be QX? what in of in guide? is

Ron Holtz

Yes.

we with There launch are VLx So, early revenue this just in that November. VLx grow XXXX, in the was year. with and we to expect

We in model we are the we short that on pleased took with very in how been approach the the with pipeline Developing similar taking something that a that’s the revenue. SPL we time has developed place. is and are business are focused

when was. we in customer a that clear them us. – about SPL, And down modified We believe first as customers what needed shared more we sat to did suit learn still customers. need value with what that understanding structure together that we came approach of So, delivered we that with a our the and would we then that value

We have suits particular approach offering. that for market are from we them customers that, and process will, as if through massaging learn going about in what of now, the an this we more you

Unidentified Analyst

Got taking it. for my Thanks That’s helpful. question.

Doug Doerfler

Thanks Stephanie.

Operator

to the to back showing I call And you. no for like over closing I remarks. further am would Doerfler turn Thank questions. Doug now

Doug Doerfler

to forward to and the for forward later spring. joining Thank subsequent much. very discussions. Well, thank Look thanks you first you, look providing for update us on We an everyone this call. our quarter operator today earnings

Operator

participating. This conference concludes Thank today’s call. for you

may now You disconnect.

MaxCyte (MXCT) 15 Mar 232022 Q4 Earnings call transcript