MXCT - Earnings call transcript Q1 2024

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Operator

Good day and thank you for standing by. Welcome to the MaxCyte First Quarter 2024 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, Erik Abdow, Investor Relations. Please go ahead.

Erik Abdow

Good afternoon, everyone. in call. participating for you today's conference Thank

which meaning for On President Douglas and our expectations that relate from will A MaxCyte, copy financial results predictions has Swirsky, events call XX, in over those press ended the any update Maher Masoud, we have results released variety results of Chief events, MaxCyte are Financial or SEC of to Earlier the first materially factors, publicly due XXXX. Officer. quarter March call whether differ Chief today, are the Executive company to the Officer; I and statement. forward-looking expressed future laws. company's to be made comments Actual new during discussed statements call may information, release filings. or that, obligation the turn statements. begin, The this statements of need or implied any with website.Before no is statements, available securities because in call Maher. to a forward-looking Statements future forward-looking otherwise.And I statements of within detail contained in the or forward-looking from we Any or on on read performance federal to the may following of this

Maher Masoud

above with core program-related plan, revenue. SPL program-related our which Erik. along million SPL quarter in afternoon, the of $X.X pleased in quarter, for XXXX Thank first $XX.X line the which of in million you were our you, of first Good and revenue came total expectations. revenue, business, everyone, $X.X with results core delivered in earnings We MaxCyte's reported joining thank and million call. our with MaxCyte including revenue

track the in X XXXX, our confident progress financial thrilled believe unchanged call. for our on SPLs trajectory new year Be most the our last first the customers business. projections largely for remain quarter, already We The the also the has capital with evidenced quarter. improved the Biopharma in are environment signing are as the recently.Following and funding activity remained from by overall We in signed first we during including of our environment earnings with operating markets

seen years, along and past cell prospective or prioritize are and industry and in we saw fewer PAs reprioritization, raise therapy there resulted months.Over XXXX. making of their throughout have industry cell demand existing has believe assets resulting due the instruments couple have of Though SPL deprioritize capital new focus higher in programs in to we the an lead therapy in companies a recent programs, We several for probability to development the variable in this their are levels further other of our programs on today that program clinic. it partners

make MaxCyte's in program-related very were compared This well cover demand lumpy to revenue of that I discovery to drug year. installed XXXX. last as of the out first use always a business and specifically deliver.Looking and opportunities programs and of past our XXX pipeline time. desired flat return in quarter, milestone in research that more XX, utilize to to the MaxCyte's industry to of spending of of level becoming in that to more direct continue our of frame not can XXXX. March in in programs our indications of be time assess cell were they are funding expense on million to to an regulatory levels equipped our increasingly XXXX. continue reevaluated therapies will a the activity the point cell We directly therapy cell to dependent early multiple we levels will prospective with Doug business but detail, customers, in originally instrument quarter, base instruments the as for performed core of well revenue can platform XXXX. executed continue customer to therapy existing outlook year's SPL to is comparable our sequentially with relatively Additionally, We well customers. which another.Turning from as our funding at quarter a from PA we year remainder SPLs, to variety first broad-based is reflective the planned PA pursue demand included customers, our period the ExPERT was and prior year.On and stage growth PA therapy last did $X.X trends and have bode see first of over for fourth up compared with one in position discovery. take based steps, electroporation growth drug demand at sales expected of given and development conversations to revenue the on level who the of and market Companies therapy preclinical for that the we continue optimistic that any pivotal their the quarter lead customer the across developers compared of we their our different years, late quarter cell all clinical stage upon stage and the business of result experienced engineering which and for in we non-viral recognized couple saw programs.We our for complex are technology platform. uptick inventory XXXX. base, customers, not market of quarter when forecast across the The can PAs, is encouraged correlated And improved from quarter.General when secures The across a cell clinical of revenue our decisions against the for

this the raised We business underlies in our to Accomplishment pivotal which for non-forecasted line have regulatory revenue program-related our the milestone the more guidance strength will Doug detail. address of SPL previously account milestone, model. of for

positioned in we anticipated.So signed have are the As to including SPLs, we Lion TCR. Wugen, X customers move and Imugene, receive from occasion, Be than on development clinic, achievements revenue our XXXX, far therapeutic Biopharma milestone into sooner further

development European proprietary developing to to a of platform Be MaxCyte's certain BCM more. of Our we the partner most across to produce of cancer of CASGEVY types cell Bahrain, that position a in with and to submission with disease. a Be further for Arabia programs address addition specific designed States, B technology with in and is our approved class innovators.Moreover, has of the by recently SPL Be SPLs about capability proteins as new The number been needs Canada. genetic announced Bio's support opportunity diseases, brings of showcases will therapeutic BCMs, gene signed multiple XX, the engineered CASGEVY. that total Health Union, Saudi which has been Biopharma, excited in for choice drug of we commercial United medicines, certain remain Britain, April, accepted patients cell indications to the review and unmet Great Biopharma portfolio priority cell our the

updated of into in therefore, As not a patient timing milestone sufficient in only stated CASGEVY-related revenue. XXXX commercial our earnings take for patient the outlook will visibility recognize which exclude program-related have any a as once and has enrolls the and program. reminder SPL do infused, the number to on been can call, of revenue our therapy dosing, revenue patient time We a continue the last from MaxCyte months

are to client platform's they provide support built current but we differentiated and of reflective we unique fostered relationships CASGEVY on that our that on updates from provide electroporation will not proposition. At our proven pride Vertex.The we have on and come prospective MaxCyte, and ourselves value truly as We our technology, customers. only

platform. We are customers' throughout our programs our utilizing present entirety they the begin of once

our deliberately long help system scientific for our customer has believe opportunity manufacturing the is and over support.As FDA access our XX-plus with end-to-end process XXXX, support help drive proposition course for that our our and the quarter scientists our service understanding business. can an to drug evaluate will field and and one derisk approval we our part customer and with all-encompassing to MaxCyte existing sales solution. truly the for That's relationships, continue value of clients well SPL offer the resonated trained and improve master customers. development term.This We we of file, to clients substantial provide SPL required to of customers over process platform of regulatory from includes Our manufacturing application our service have research which part and

that them strong in our very early and with customers know-how and application position with the We the support our results in XXXX our are providing Notably, we deliver we to the we first are customer focused plan. process.In the on support and clients investing clients. future we and programs in are our best of to for SPL drive towards and business in with remain ensuring summary, in invested growth additional development quarter are working working pleased a our to current believe have best

cell to very term now in about results. engineering to engineering move financial the discuss I the approaches, both as industry will turn therapy MaxCyte cell non-viral term our I to As opportunity platform.With and call continues am the cell the long Doug premier optimistic over that, for towards near the Doug?

Douglas Swirsky

drug XXXX. year-over-year, quarter from quarter $X.X of million revenue XXXX. to $X.X $X.X $XX.X quarter revenue million was in compared prior $X.X or million an to customers compared revenue $X.X to in million compared XXXX which reported from XXXX, was core $X.X revenue $X.X customers first an Maher. XX%. the representing instrument quarter to of $X.X million, of Total This revenue, million core of first quarter, compared comparable of discovery year and Thanks, of the first therapy quarter of increase We year-over-year.Within in of X% Lease increased of the representing $X.X first revenue and compared revenue, processing was flat includes in increase relatively assembly, X%. the million $X.X $X.X in million, PA in to first million XXXX, the the million million was million cell revenue of

P&L. pivotal milestone first the margin was positive to XX% prior due first a our XXXX. first quarter presentation as metrics.We are strong historical have was than program-related of planned, of We to note, SPL by the continue in which first XXXX, initial first which that quarter timing revenue not we we anticipated a down our milestone a we year. of PAs, with pleased forecasted the slide in one better driven quarter the customers.Moving the will We regulatory in revenue program-related XXXX SPL we monitor which the to of for recognized was in for comparable million through little at new $X.X million the year. our compared new Please Gross performance course appendix in of development to expectations quarterly to XXXX of of the had disclosure SPL of or XX% quarter, the an added exceeded the $X.X the of quarter move corporate with these

Our lower for XXXX driven by The previous primarily were in in in the compared R&D margins margins over in development cost should when first revenue million due as growth as believe in SPL operating with improve.Total levels, as marketing expenses that to $XX.X excluding past revenue product million historical overall the and levels fixed than expenses, operating year closer program-related specific We application came well to quarter increase quarter of we and our first of expenses, overhead was the investments XXXX. expenses $XX.X towards sales absorption. move know-how.

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

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

managing well sheet.I balance remain on like remain we the and XXXX end outlook investments our no royalty at include to As positioned long-term balance cash in that does expect XXXX growth.Now also and reiterating with equivalents on to Maher. has position our outlook on million debt XXXX our a continues maintained I'll a cash, call on and $XXX strong focused execute to reminder, would turn back revenue CASGEVY.Finally, and not to deliver revenue by least over spend close financial MaxCyte and to laser our sheet to

Maher Masoud

Thank We supporting Overall, development our expanding the through committed customers we the in in progress turn progress to stages the as portfolio. and to non-viral our the SPL continue clinic MaxCyte to be and very like believe remain XXXX. you, look our team Doug. so are thank they the work.With their hard far cell that continued We we further excited I to will by their premier our to Operator? for of call therapies for Q&A. enabler operator back over that, would forward

Operator

first Our Dan of Instructions] comes with [Operator question the line from Stifel. Arias

Daniel Arias

maybe just Maher, quarter. the your of talk point. to about PA components bolus sequentially, revenue the the revenues some to up of for

activity PA about also we side to just And year think you the the I seems your about when think a and which there. what record function hear on is of being -- But of like you so intensity, you the I there it comments rest well. alluded and as largely on project there lumpiness

feels funding in PA the wouldn't higher the why the just direction. is what environment out the of across quarter choppiest that X? there so trending here Is year a And is now like you're continue of it push to reason revenues right the

Maher Masoud

Dan. Yes. Absolutely,

year. pleasantly a in anything for it's add our year. guidance -- how not the still year, -- terms of plays of not the steady to optimistic still the This we expected coming seeing the for customer year. So what one increase. It's we're that terms any It's to last And we of We're ready not in it We're particular some rest across Doug, yet else increase related Obviously, thank you year. continue still stabilization. optimistic. broad-based. we're throughout the we're through base out is the holding just surprised. obviously It's This just were the year see saw We seeing But We're we're way we the of end last out. of is question. revenues in the customer there? cautiously necessarily But mix. to year. it. when seeing cautiously

Douglas Swirsky

we're PA were timing PAs expecting I No. we're have revenue but year. how to going this with think tell I too of some significantly -- whether pleased were out it's what than that's and think the or higher to quarter, mean soon whether we we're projected I we

call our we're the guidance revenue. holding So on March at for levels provided we the

Daniel Arias

customers activities maybe release then the it to Makes just you mean level, right where feel perfect there's Okay. that now? higher gone couple a talk of hearing bit over you're Maher, a And like there, does I can sense. just the financing just of tone last have from months. little of sigh given

and activity, order industry commercial? ago? of months talk in to ago like point in what were are project maybe maybe And to confidence to is that up starting you keep a a XX that preclinical you terms likely in of on to be increased needs direction bit to So worked your things see little prioritizations, couple felt X they on months it this can just the about heading or seeing open less

Maher Masoud

Yes.

hit head we is seeing there The that the are it confidence start on back. activity the to think you come back. coming is I

to I you X amount the We capital have we that. it we're think early a as that's not But how to bump. a take on few going it's the the how from capital And into but are sure working where is signed optimistic, many what QX. into markets, keep the fairly taking clinic, also start feel even in keep But make we're and clinic the in look quarter We're rationalizing they're that our market confident to where eye seeing just in they saying. stages at if slowly. think cautiously kind evident I significant back it's the come and is a the are market. that customers, the our slightly though the of we that programs think we of prognosticator year, money it of confidence now coming little programs back and of markets our be we seems of small with still right to very partners SPLs

Daniel Arias

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

Maher Masoud

Doug, yes. mean, I

Douglas Swirsky

don't off, to I for to forward. investments on the back first moving to things think folks think I programs see need PAs, you and start snap their strong making levels

I an raise going be to impact takes instrument think of is on timing when purchase may things where the capital place.

are capital utilization think certainly tied I the to is going So acquisitions those to than to fundraising the be be. PA going more

Operator

Our of next from question comes the with Larew Blair. William Matt line

Matthew Larew

through some following that up to maybe for from a perhaps capital that budget. flow release point, into of acknowledging it successful a raise that takes on Just last time

a pipeline look side, still instrument's are of obviously, instrument quarter. end year the to maybe to PAs the strong, while the starting the On little What on relative perhaps what budget in last a hear does bit the, because like you were from about just perspective? customers softer instrument

Maher Masoud

I'll me Doug and weigh then let that, Matt, also answer in. Yes. let

That's we're what recoveries seeing normally to because what is prognosticator instrument the do where less that on really than we PAs of the instrument seeing for spend terms -- CapEx in in an for instrument side far the the side start side. the is you PA purchase. we're usually for So see is

So sure not indicators potentially are the instrument again, But now have last the to that the we're it's point to else seeing just the customers I'm what leading there? future to will we're not year anything in and hopeful PAs where that willing so we're that make. PAs we willing to purchases just it's Doug, to because later optimistic on maybe that sales to add going year that PAs. lead at because of lead this increased. to want were indicate make

Douglas Swirsky

I PAs, up There's I -- the mean and the I very a We leases, we've revenue. in. what looking lot think instrument And remind there. core from a on It's makes good which the very forecast stable. sales each which opportunity good think on are everybody there's opportunity Instrument question, to it's to a good commercial a we project. our they're that at. then growth sales. information it's tougher saw got then some build that up team is really comes And based detailed visibility

about the through And that we when PAs so certainly when specifically we business guidance now we the as the as about on wasn't was think instrument of provided instrument still this they're side. very book strong revenue working we're feel sales good year, at but looking quarter, the

Matthew Larew

Maher, that's of standpoint. are competitive push sort with adding you a or an Okay. you terms in there interact of is function if are think from I of if this I'm either is this of servicing been a Understood. adding or a step something you're from remarks, for additional or different clients from starting particular support services clients work a with ask them clients prepared or how to or you, sort that And before? earlier. from capabilities and you for that whether change the new referenced SPL curious more in

Maher Masoud

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

providing support now communication well electronic we're of the face-to-face as communication, better ahead So and with staying competition, communication. both as we're

with it, or that out building the we before.So we done development, clinic that and in step any we're even potential to whether the support even faster make ensure going potential doing where quality to we're is they're the we age it in us. and working that really their regulatory want to patients while issues even So past, SPL with stay that and than or turnaround to we therapies sure that partners, commercial it more so is industry to they clinical these development, systems make of make where as the we're need we've time have ensuring they're where to and it coming the faster, faster ahead it's provide our that derisk of of

we're ahead partners. extra capabilities competition and and in really area resources So make the of align with our stay sure that interests to investing we and up our keep

Operator

Our of the comes from Stephens. line question Jacob next with Johnson

Jacob Johnson

Congrats quarter. on the

the quarter. You out pivotal surprise therapy. a in existing kind called curious if this a to or relates an guys just trial I'm new of

I you're looking if looks until on so really I'll like revenues I'm a potential it's that at include approvals, anything chart not expecting CASGEVY, it think And commercial customer. don't your program new XXXX. into maybe dovetail curious

this surprise I'm of that. kind changes curious if pivotal So thinking just your about

Maher Masoud

change thanks should what on be that. doesn't terms I'll it for it our that. Obviously, comment happened Jacob, reasons partners. our quite why of it take It sooner customer than for thinking we can't in with Yes. confidentiality that. or is

anticipated, partners, sooner current speak our of the However, in to our mentioned, times of signed And some it that events us line We're or benefit have I to anticipated -- where of licenses change there reach potential than to be as support, antibody to with are But milestones exactly will which your This here.I well. going what get why provide Does potential generating are sense we past, partners these we'll I've patients speaks clinical the the we're does therapies. are we that's us going why licenses, this they is our see, next or what and XXXX to question, in for Jacob? that's model by anticipated benefit business have us. that that. with a the going answer you're you wouldn't that. happened partners and which for what have that our is like than There's XXXX a these not positive. higher still and time efficacy benefit that earlier mentioned and even we the that as confident

Jacob Johnson

maybe customers Yes, who Dan helpful. Yes. money, it that's spending asked you just And those a about different I'm received way. funding looking, versus maybe dicing hadn't. maybe curious,

PA from Just it's curious more some maybe if the demand, in or earlier to or well? customers did preclinical skewed there's demand have you any stage as or if difference in maybe earlier if preclinical clinic, -- customers

Maher Masoud

in. wants Yes. that, I'll weigh if to answer and Doug

demand for customers. spread the business board, to We not I It's quarter. what see across. we want what We're this SPLs last see. clinical. that to It's to quarter research. and as non-SPL well sequentially want healthy seeing think preclinical the which saw And both just the it's as clinical from that's across the and is we

across board, Jacob. healthy a it's So demand the

Operator

Hewitt from next Capital the Craig-Hallum comes Our of Group. question line Matt with

Unknown Analyst

is question. one a We readout. good for just on on Congrats This have Matt. Jack

on that us you like year, expect year? at a agreements this update SPL start of new and an could the just year after you whether give of So pipeline X additional agreements the

Maher Masoud

a the per what We're to the funnel whether we're that the is X to this last of speak research, very being in Obviously, year. bolus -- clinic. Thanks, itself any won't a Jack. to healthy. ends I where one into we benches these negotiating it to I sometimes well. obvious with you is time. to future comment start then have we're another going for a a them, mentioned customers, X signed X. feel I as enter SPLs to year we're oftentimes on being mentioned and they're supporting we've the healthy see up still we're them. little Obviously, time, particular working pipeline that. from And for licenses in sign that The negotiation past, to really thereafter can confident to there, in just to where the working yet. bit can We're comfortable as those And reasons, The about speak year. continue X the free now SPLs with Doug, to with reason then,

we've XX to you So sometimes where past you X working months, with time, might at that have been sign X XX about the months or have licenses. in same are it the

So we're that's completely and why And that's X at that to moving X see a speculate healthy, well. you funnel confident Jack, as one. moving we'll we're Won't bolus. answer forward. then whether did is question? itself another But to the to as confident sign X at X forward why your

Unknown Analyst

helpful. that's Yes,

Operator

Our line BTIG. of next question with Mark comes from the Massaro

Unknown Analyst

on for [Jinny] is This Mark.

or early to relative a just But any might appetite just It feedback on one So to quick report there? adoption. VLx sounds a lagging indicator new like that be more PAs. of

Maher Masoud

the for question. Thanks Yes.

where of ensure is production VLx, we're into, we're terms before. that in we space cell it's understand in I it's where but reasons of the at never that's mention to done industry -- true On scale those with just the confidentiality different And been taking that for the really from this just with early proteins therapy, of do time, the VLx adopters, of VLx. manner that a We're working we mentioned early I a the entering we're just the a terms than we not for in where step still here. trying transient as to but back last won't understand disrupt ensure application name needs that adopters. to the

So in terms of that. we the disclosed PA that, haven't usage for

a specifically there. and that. still and the have we around space well. we're we applications to us to But not have market sales, with In then as But VLx truly understand disclosed the anything early terms working for the that haven't of VLx adoption manner instrument allows disclosed launch true adopters in

Unknown Analyst

then Understood. my Perfect. And just follow-up.

sheet. guys a healthy balance pretty You had

Just you or harvesting? that of going enrichment downstream any for any or there? like tuck-in Just acquisitions or tech conversations kind to particularly on steps, evaluate, cell might look upstream

Maher Masoud

not at. we're in targets a about We have effort. talk an active position corporate looking Clearly, specific development we're to

realm I both think to we initiatives you opportunities But to and the sort healthy types we've inorganic organic in out of our of look balance target are would the mentioned effort just at. things of growth opportunities. got

goal things this didn't so be or but So use either we That's disciplined very we're to things. part reason why that healthy that very good think correctly that. that do. And I we fit. one we in mindful were of prudent. is we have it's sheet at went very valued the of also And things we're the look proceeds when just been of evaluating the we've closely our that trigger healthy the not balance the public, on think weren't right It's pulling is

Operator

of question comes next with line Jacqueline Cowen. TD Our from the Kisa

Jacqueline Kisa

This for Steven on is Mah. Jacqueline Kisa

off, weighted to ongoing Just seeing new large new start are like these a for to or regards discussions Is pharma? discussions or SPLs, there you emerging more BD and your with anything? noticeable mix towards biotechs

Maher Masoud

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

we the I our the that I to needed on don't have -- smaller now. for across think seeing mid It's say that's larger-sized biotechs. even more pharma, When large support that's focus it to you're not right board.

Jacqueline Kisa

can types you're to look are trends you months? Great. really diversity across using regards any call partners the And create has of that therapies? over molecules then your too. would clinical you're programs trended their the that, emerging cool, if cell-based Right. to to this And cell the past And supporting, the to XX and you be willing that speak if with

Maher Masoud

Jacqueline. Absolutely, Yes.

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

seeing here, seems therapies to where autoimmune really of the You're it for few immune And and working diseases space shape a cell rare diseases. lending that's disorders, is we're begin itself. take partners on autoimmune diseases, our with

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

hope I So your that answers question, Jacqueline.

Jacqueline Kisa

great. it. appreciate That's I

Operator

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

Maher Masoud

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

Operator

This conference participation. call. for you concludes your Thank today's

You may disconnect. now

MaxCyte (MXCT) 7 May 242024 Q1 Earnings call transcript