Adaptive Biotechnologies (ADPT) 9 Nov 232023 Q3 Earnings call transcript

Thank you for standing by. At this time, I would like to welcome everyone to today's Adaptive Biotechnologies 2023 Third Quarter Earnings Call. [Operator Instructions] I'd now like to turn the call over to Karina Calzadilla, Head of Investor Relations. Karina, please go ahead.

Thank you, Brett, and good afternoon, everyone. welcome Call. Adaptive to XXXX Third like Conference Earnings would you Biotechnologies to Quarter I we a today, the Earlier issued third results Adaptive quarter for financial of XXXX. press release reporting is at release press The www.adaptivebiotech.com. available

referencing Investors a live has this will presentation We are our to to corporate webcast slide the conducting a posted in call of and be section been . that website.

in of results our future presentation. meaning projections financial of statements, in factors These management's the management today. business call, today's number forward-looking are other from which the events company. differ public forward-looking and filings as on and of of will this future a performance Actual make the securities the listed may statements with forth federal current within materially the During laws perspective set regarding the depending and statements reflect of SEC

will non-GAAP a to from non-GAAP financial addition, call, our the release. In can in and measures discussed reconciliation found earnings metrics be GAAP during be

Joining our Chief Chad the Peterson, and Officer. Robins, and Co=Founder call our Financial Tycho CEO today are

that, from With available members management turn to will Robins. for will call Q&A. Chad? be Chad the Additional over I

Good thank on third us XXXX and for joining our afternoon, earnings Karina. call. everybody, quarter you Thanks,

a in marks pivotal This quarter Adaptive's evolution. moment

full operating alternatives. shared, requirements, As review of of models are and each Immune and with at Sachs a compelling value we medicine. potential have to we investment hired businesses Goldman distinct previously To They with business, maturity disparate X have in strategic the maximize different assist MRD we stages have drivers. of

with will making heme established next well focused penetration moats this as commercial and business to early increased in position forward a Immune contrast, with clonoSEQ's discovery multiple profitability. major success current autoimmunity, the we in strong on execution indications the of require with momentum multiple fully in MRD. targets clarity solidify sclerosis. unlock ability decision target are Medicine operational by novel gold as pure-play discovery to focused new We its scale target additional autoimmune quarter on In is further validate path will continued drug and to investment provide as novel discovery this our approach path Why is diagnostic a and by drive a Its to in data the now? supporting supported indications. now the These standard achievement MRD in year.

differentiated of path a novel combination discovery first us drug with oncology the gives build autoimmune our in and to The clear platform discovery of therapeutics target business. broad and successfully Genentech a this

to the and process value to these best this are line to exclude can businesses from sight of and path strategic light and evolution model In a We in dedicated long-term to the Medicine business Medicine of will updating business. this Immune patients our with revenue potential. drug are their shareholders the revenue ongoing company deliver for maximize the value confident guidance of review creation, total forward we respective discovery into expect yield the year Immune that

of remainder will the you MRD Tyco, XXXX. you provide as will guidance from hear we with However, for

cash move continue cash healthy efficiencies maintain which with operational the completed we essential $XXX Importantly, position is the to about future we a improvement, lab sheet. this drive million We and organization. the margin throughout for in balance quarter, on

X. business, Let's at testing starting with our MRD now take closer a Slide clinical look on

testing clinical generate quarter-over-quarter. volumes record high to clonoSEQ continues

and and largest XX% respectively. year, XX% tests care driver. grew to came sequentially prior year volume myeloma as providers Ordering over accounts the indications versus ordering delivered. and grew the all prior contributor marketed XX% versus and growth main with multi Growth health This from quarter, XX,XXX XX%

XX% evidence indications segment year be at the XX% versus Blood-based XX% of sequentially, in new increased QX a tests. year in all this ClonoSEQ grew Community all contributing MRD quarter-over-quarter, among data of will testing ClonoSEQ testing the Business many highlighting demonstrating ago. presentations grew clonoSEQ in value contributing in ASH blood-based prognostic the myeloma. XX% volume Included XX% and of

QX, in where QX. lymphoma clonoSEQ's are contribute the versus published, pressure mantle overall quarter, we saw favorably shown already in PCR-based positive sets Actions well important new downward saw ASP factors. to data clonoSEQ to XX X, of where in QX to increases ASPs trends and prognostic understood growth these one we month-over-month power address X beginning Speaking X% ClonoSEQ have deep to the we consistent ALL, to our data, ASP pH+ and compared have one current we Last cell taken saw was by to monitoring driven sensitivity, standard. as on pressures was in

say, continuing are positive to the I'm happy fourth quarter. into These trends,

to focused contracted coverage ASP improve plan in on mix enhancements further optimize expansion, Our in improvement payer and is collections. lives, growth to operational

gaps. code policy to and contracts Specifically, the payer unique closed management, additional to dedicated our we have and payers claims transition resources invested new, the in majority commercial CPT ClonoSEQ of

We initiatives are and these accelerate years. the several for confident next planned ASP will growth other

Health we UC integration the we Epic launching addition, this first anticipate launched We progress. In have by continues end XXXX. of X and Davis quarter, more our to site, sites that

prior broader We versus the also XXXX. have accounts vetted macroeconomic a to due and declined XX factors. sites quarter of by interested in Revenue to integrated list the year XX anticipate of end X%

MRD on versus industry. in actually quarter X declined due the year the Slide economic I'm prior looking Pharma. X% biopharma factors macroeconomic -- at to impacting Revenue Now broader

studies an and updated in testing assay across submission the of business of in to upcoming from headwinds our research leverage overall DLBCL. version and the studies by for our by We assay seeing health while ctDNA partners of $XXX We our million our in other many and trials the updated is of specific for we peers, This and launched down are trials. anticipated re-prioritized portfolios or use clinical some year-end. and portfolio transitory sample resulted prospective these companies backlog for DLBCL over strong with pressure our it in slowing has in malignancies. heme pharma plan deploy assets. Despite pausing Like lower clinical FDA volume

new also essential pipeline. continue portfolio. measure for We agreement add announced the to Execution line In BeiGene drive this to is summary, by we to its drive improving translational XXXX. a while with efficiencies cost week, towards revenue partnerships across is to to MRD top setup meaningful our MRD growth solid. This business profitability

to X. Turning Slide on Medicine Immune

new mentioned a This MS target ability with disease. MS learning that identify to our the unique devastating accurately cell As that in discovery milestone established It discovery TCRs this be our discovery approach, AI discovery a accelerated a disease target novel capabilities. the validates may platform. This multiple existing accurately earlier, to target potentially of specific signatures cell on TCR our biology by which that light sheds sclerosis. built T druggable set target trigger we ability only patients. improved also discovered enabled our Microsoft, achieved in based models key in novel was which of found was drug our is are and T of machine we our by our identify to uses partner, combining This characterization on

applying prioritize. that additional discover targets and exact strategically novel We're same to we autoimmune disorders this approach

South successfully this our team early regulated Regarding built in conditions. San Genentech, development our process Francisco cell with workflow quarter, therapy out under has cancer our personalized partnership product

foundation building process. our clinical fully With place, blocks for readiness future in personalized end-to-end defines we're the key the now of that starting testing

we continue target drug summary, to in cancer and programs discovery and in our progress In great autoimmunity. make

discovery clinical and medicine pipeline. focused business additional immune wholly future our execute value that drug remains laser R&D key meaningful to drive owned on partnered Our points and for proof inflections

it pass now I'll over that, With to Tycho.

Chad. Thanks,

million, of decrease with performance. Turning Genetech been to The total same XX% by XQ overall our driven XX% clonoSEQ Medicine revenue discussed, in on financials growth primarily by quarter has was from MRD from was in a headwinds partially XX% decline the MRD high clinical and X. Immune we and strong, volume Immune ClonoSEQ. decline by representing Total The Pharma biopharma amortization services Pharma to XX% strong in Medicine, driven XX% offset from revenue previously and a due that the MRD Slide reduction in the a last year. business $XX.X period third

ago, revenue to same Pharma from quarter. in X,XXX biopharma. last X% the was XX% lower Immune period decline. Immune tests milestones the Genentech year recognized the to declined was driving million. a driver experienced volume, no with Clinical versus of pressure $XX.X Medicine XX% test year saw with grew XX,XXX from MRD from prior amortization main downward revenue and XX% including Services, in a a the XX% tests which down delivered year were XX% the increasing also year. $XX.X MRD decline ago Pharma clonoSEQ from million, international, Medicine

amortization no onetime driven lab the margin year of The versus second gross from XXX% reduced the down the margin for margin Versus move. mix move. lab was costs by addition of the to realized attributable pharma we to Genentech from largely and P&L milestones mainly quarter, lower compared the in X. decline the completion incremental incremental Slide which quarter to decline upfront, Total prior contribution the gross product is services Genentech on costs quarter the the was to XX%. in last tied milestone and was Moving

of further We of includes labor reduce This the the overhead us will which productivity enhance LIMS operations ecosystem optimizing margins. and focus a direct continue allow on mid-XXXX, increase implementation by in the to lab. to to new

to technical a next switching NovaSeq addition, NextSeq year. feasibility completing be after In we'll review, sequencers from

significant savings costs bring in in XXXX. material expect by We late completion XXXX,

Importantly, organization. on to across revenue leverage XX% the versus be declined as other prior OpEx, and we cost XX% the quarter versus the driving operating continue and year excluding of prior efficiencies laser-focused

the $X.X Interest of quarter other expense was in to equivalents Net ended offset cash, and million, with last by $X.X marketable We from million million. quarter securities. with $XX.X approximately was our the and for loss compared $XX.X million year. financing million OrbiMed which was agreement royalty $XXX interest income

turning X. on Now updated guidance to Slide

updating guidance XXXX As Medicine revenue the Immune we revenue. total Chad ongoing mentioned, are exclude company to review, given strategic for

a want forward. accordingly, value. revenue Medicine will biotech will providing not drug discovery trade Going forward, long-term we to for revenues business more and short-term not traditional that resemble ensure that do for off be And we we guidance model Immune going

expect continue grow we versus for quarter digits test MRD, fourth in to volumes grow mid-single year sequentially. XX% the to ASPs over are to the full XXXX. For clonoSEQ expected

Putting be experiencing the $XXX to MRD MRD it expect range digits. in Pharma biopharma quarter, Services milestones the of revenue from expect the industry together, low pressure total spending to in continue downward for fourth we million. $XXX to be to We single are expected in XXXX million and

full important drive last anticipated our continue due we year operating expected to decrease to approximately back $XXX had be year. As and than company from a QX third was of strategic of $XX burn but OpEx we XQ the Cash prudently million I'll million, normalized lower to total cost on while focused our revenues, execution year burn including pharma at for to and remain the around million. in target, driving turn the over efficiencies, complete quarter is higher both around revenue, managing the close and more call X% achievements businesses, service expect now Chad. the we to be $XX spending review. as we

confident open and over serve look our and shareholders. operator up Thanks, Tycho. to and patients value that our I that, call optimal am an to business in outcome in potential Immune forward like Medicine, the questions. back With best MRD maximizes to we for turn each then driving and I'd the the of to

question today Mark with line our the BTIG. And from Massaro first of Instructions] [Operator comes

the synergies I is or about I just, businesses. X guess, now? X think why first of discussion been there's lack thereof The some

curious conducting this about synergies And just time? formal the not Just comments just parallel X between review we strategic have any there should why you maybe into businesses? this that are two? And read at the you're this

been gold But have the a execution. diagnostic both it's options They Really, that to of standard I have ASPs. got for business on about it's months clonoSEQ, X MRD value a XX distinct last in also business. we businesses, a maturity. -- the that different they to evaluating of are is talking the at if we it's with about And different value mean we And our at all Mark. you business, requirements. stage Thanks, MRD. maximize Goldman look have different investment commercial top distinct there fact drive have volumes, line, drivers opportunities. And all having partners and the business and are X It's Yes. increase we stages Sachs businesses.

milestone and showing XXXX. high It's much on what now our bringing it's business. driver. valued discovery generating It's achieved get biotech a the goods developing takes in trials at other clear really that It's driven. of nice really natural It's that very is the really assets has MS And therapeutics at on really achieving we've traditional potential, The been isn't going a points profitability a the different kind side, -- additional a and where proof clinical kind it's we had has of breakthrough by the very look about autoimmune and it's It's to or it's through become sold point scale about scale. cost it of is and each same And platform really MRD business to going -- to apply very time, cost business disorders. that but multiple consider catalyst a revenue business And its more we to the increasingly think are present akin as separation is, to in about IM down business to more But model. data. about business. high time. different at

So we're now and ready time, the to go. is

Great. Okay.

capital obviously, why I you But for from reason. a choosing business the guess, investment. you're require for can the and as So peel to I Immune they bit that your as different onion withdraw needs back little Medicine maybe understand guidance,

different constraints, really which think long-term the maximize creation. kind potential forced away make some we don't at A value the do immune give mortgage if could in do a kind of that for under kind we're of that off MRD, to do, known or shareholders. to Yes. the kind right value pressures in are in the of -- certain What sure to that you context to value it where we sense, and to to want of of of our a long-term has don't we want is would trade very deals of it's for lot of There medicine trajectory. business. And the like that number would doing being a I deals because inure want which time we short term kind look really story

But for one versus MRD Okay. pharma? clinical have between walk Great. you can And about pharma but missed just you having your clinical last just the But for year. me. from split certainly might the it, how maintained any through the some volume thinking Obviously, on additional I for revenue talked -- pharma headwinds. XX% versus maybe clarity the and guide you're you breakout. about

Yes.

or the what expecting So breakout in I third mean fourth asking just for you're the for the on -- we're quarter? quarter

I'll but great, take be would Fourth either. .

sequential look, we kind didn't It's mean, overall. you it's kind this split so clinical And fourth the there, milestones If look any Yes. the -- volumes business, I the sequentially of be about little if down split. have kind for a the mentioned versus nice similar a right? clonoSEQ, right clinical of of between kind was quarter. looked quarter bit math and Clinical it a you XX-XX We of at pharma step-up. for U.S. quarter, had second XX-XX should then pharma.

TD And from your Dan Brennan line next with question of comes the Cowen.

a lot trade publicly? Immune review. that business, the just both one, as table. around potential business Could just Medicine on the businesses to the I'm Looks obviously, get think there is sell of out look strategic the idea like Is press on discusses through, that. come sold? table. stand-alone the release business to Or and that the strategic that options, the things trying first options a Maybe you'll there's a

that permeation the are are what Just being considered?

Dan. Yes. Thanks,

that with with look it's We I Obviously, we comment real if we clear category-leading options think on a we say any can M&A at are mean, all All are differentiated can time. at a position on value. the strategic can't value. evaluating MRD, all this you business table maximize --

The options we've Business. now. provides pursue. be to a are stand-alone companies. the all right Medicine table But on think thing some well stand-alone are could same We very do Immune And those of range targets as viable and traded got the differentiated And us options very and moving that so again, on forward. publicly businesses

know -- you'd medicine would you businesses. terms good immune side differently to want of the in terms want there you profitability, [indiscernible] on operating aggressive, balance in Are that I the but in how without get sheet like don't get maybe own? to want add the what of things scale, shape. you MRD is you'd do its more you maybe think own on when maybe more other to its about that does MRD strategically, to want business be on in look guys

each peel use little It's term, back question. the bit that doing businesses. kind you -- great on actually, of if reasons Yes. focus a is we kind the that's of to to a your have of one we're this the one really main dedicated really onion of And

So there's Competition months last found competition of kind is for so we of good over competition for resources, example. a of the kind for mindshare, resources, of of kind is or been what cetera. software kind -- XX there's et

ways at top the to that are additional of by kind and we MRD. on accelerate business. that kind something achieve in operating there there we look are model, have of So the that stand-alone ways a time, can I we certainly could think same at leverage line looking as potentially in these is would the And

sneak in. Maybe I'll one more

clonoSEQ you pricing you're to and of could discussed the terms with a initiatives there. all the of where us head in Just benefits side? Could just pricing sense making give on you the that

highest I we're on touch ended it see hand September the quarter this trends that in month prepared to the mentioned then we can going increase based mid-single-digit third I confident we $X,XXX. can But just the quarter on over. October, in just of north up say, I'll is and comments. fourth maybe was

do that touch you Susan, implemented want that on initiatives are little more? the But a to working. So we've maybe

XXXX payer Chad that plan the increases acceleration see certainly ASP beyond. already opportunity The We've in ASP in operational with expansion, and of ASP continued planned we alluded beyond. of mix shift number January and frankly, lives, coverage and in launch a growth initiatives We and -- our to have collections. is aligned contracted more in the on growth a to focused improve again and Yes. in those few for for categories, quite enhancements undertaken to

And but on for growth that, acceleration XXXX. see beyond ASP potential see specific we the in an providing to certainly rate guidance, improvements. through expect we're of we continued do not And that,

early so in, I'll pharma's look, Maybe any mean, one final 'XX, for sorry. I sneak a MRD uncertain.

called You near it maybe out, here. have others it out, but hopefully bottom we're called

about business? early to side think MRD 'XX on any way Just the of the

Yes. -- yet do of not 'XX. though, We're not to XXXX. continue in we year that our business clinical another alluded providing expect Tycho standpoint, guidance terms but I specific you and from for from growth the only can I tell growth to we just grow, continue and Susan great the volume do ASP volumes to, see in

Pharma, It had significant also million. might $XXX worth be MRD backlog we mentioning, in a

health So that for well business. bodes of the future the

And of from our line Rachel comes with the next question Vatnsdal JPMorgan.

for This is Noah on Rachel.

spots. reframing a sense a here bit the Can the some protecting quarter some the you little strengthening business. here It Just you're the bright us I specifically. on refocusing you sheet. more and of topics give the MRD continue like on seems pull balance can possibly touched had understand of to decent you've levers

the here be to a it from completion, For you've example, could XQ lab, at excluding cost move costs is meaningful NovaSeq gross were the XX% the ongoing, NextSeq versus margins noted then switch saver. the project that that in also, And XX%. some X conferences onetime in

So updated any quantitative next then we're your manage follow-ups. burn? Orbimed sense business? that just could protect additional your into to and sort want as deal margins year, cash much Heading and could us any and looking these of you into mechanisms MRD us cost-saving of some And loop how at you thoughts assuming of remind to if . how play could that the in give have

Noah. to hear Sure. Good from you.

this So any XXX%. a a milestones have big quarter. on factor. quarter. didn't It's couple margins this are thoughts We of coming Milestones

some bit us. cost onetime impacted and amortization did weigh little in also quarter. lab did have importantly, lower had on a that finalized we margins. that So the the But We Genetech move,

costs, move gross were If margins you exclude the closer XX%. to lab

looking saw pharma milestone There third on it than sequentially, milestone Again, quarter quarter. no was in second And product at little some margin. that's the mix expected. a just Genentech services the impact, $X.X discussed So the lower as is bit we in higher the we was call, million.

XXXX. about. Going mentioned got margin XX-plus of There is the percent forward, CLIA efficiencies we've We've contributing in labor be for us a you back that workforce really on NovaSeq. really kind but at Like the think doable that. of would a part on of number the That switch is We'll easily implement scale comfortable businesses, fairly our latter business. that at XXXX. got XX-plus overhaul other to business about LIMS benefit we're of will in that, initiatives. talked a XXXX, and business will it overall. I And we percent scale lab

Yes.

kind The at thing we ways other one estate look we is we're provide at of to leverage. move labs additional from we continue as and which to -- buildings another, to offload building portfolio, the our of will kind well, one looking of as real

the We -- follow-up. Noah, MRD just X think business

be specifically, that You asked on we can profitable in XXXX. business MRD, think

was question. That next my

the you like like if growth MRD to XXXX about breakeven MRD or have think just So in -- would XXXX EBITDA the the you last . just like XXXX hitting yes, do margin thinking revenue I of just the business, business? CAGR like XX at And to to -- core breakeven in XX flow looking on I cash rates the of then of core talk the one. or one XXXX so was we're potential sort

high factor volume in numbers comfortable lot a terms double but very you we're in should to be the around we're of this be And further and as get XXXX. XX% of Yes. out, digits it obviously I larger you volume increasing growth the a then profitable components in how can of again, to start that growth about this over overall. ASPs kind sustainable, mean, thinking think we MRD be given continue in We've will year. number

Awesome.

you about or MRD Okay. then can move closest like that large adjacencies could in those pull that, talk the the investment the about thought overall you've potential your of part areas adjacencies areas maybe as could as some of story, easy officially thing, sort any some but considered to law numbers long-term maybe growth in term story into TAM think forward drivers to core you be we like growth related portfolio going if you're that of of you that refreshing definitively near of not And be about the here. into, maybe as

Susan, take do that? you to want

Sure.

number first in not We in non-Hodgkin's at foremost, so securing commercialization, have payers of have the reimbursement Medicare have and the looked ones obvious with move a And forward lymphoid including from of plans and particular. years. next we indications private we other in most couple to I place do over the adjacencies. mean, are which additional lymphoma malignancies commercialized assay,

Additionally, some myeloid no technologies very adjacencies this particular the in opportunities and At understand are opportunity. time. time, there in the to space, of the stages are the the perhaps but space, done we And tumor we solid have malignancies and at review early other myeloid have plans in exploring tumors. this feasibility then in

question Savant. the And from Tejas of our line next comes

terms talked about touch Tejas. these inflection some of at have what for But just integration. guys I far volume wanted Epic inflecting in really know upon pilot of you XXXX. on the your EMR I now have sites you seen sites? volume contributions in to live, so Edmund With

feedback to orders, well are setting, as of volumes. and the question, HCP Edmund. that have time, place scope have And since the not quite users can as live as X experience in to that limited that Sure. with features including both that growth the integration Thanks months today they've to that But X positive in go expand in only site the and new added site. outpatient live. seen which account expanding We we in potential short to them initial for what I previously of standing is led site additionally, of has now say the inpatient

more by X scheduled of go live have this sites end We year. to the

I our So evidence to many we'll start more expect of end to getting and be XXXX Epic 'XX, albeit as we companies But able positioned lift And have think well beyond. comment we to on growth point, understanding robust, more lagged eager support how a who to by more anecdotal we'll at be still do to seen from in contribute further may little have other be sites of expect and the growth when XX have lift comment implemented which we'll we as likely again, opportunities. Epic, evidence. have to Epic

and trial That about commented that was you million business. pharma on helpful. backlog think wanted mix What just prospective to and you have clarify, are Got the mix. it. expectations then I and And guys just side the year-end $XXX anticipate trial super in of SMIDs between the your by and between for backlog between retrospective

and pharma between said what? you So

]. small cap biotech mid firms [ caps,

it. Got

that can't to and you are I studies, have studies case... majority that prospective comment [indiscernible], a of to we the book the continue we be that new Well, majority Sorry. when expect

majority of, it, call but and SMIDs, would also small profile you XX% not I of, have majority large will though do say of don't certainly the mix, but We large SMIDs pharma we have I kind the kind is of kind of Yes. a traditionally our of to and classify client cap XX% pharma. capital, that say, would are kind kind

the presentations or we watching for? just some then the around should in key out ASH that points December, And be it. . with are data publications, conference corner Got there

by of the be excited going some our data to that's are investigators particular, In use indeed. we University from Yes, Chicago of assay on about presented in blood.

that marrow therapy that points in response used criteria. So bone during in multiple first-line myeloma in early and at blood both markers this commonly and assess serum study, used biochemical part are to the of to traditional myeloma particular assessment was time clonoSEQ to response assessment compare

is insight strongly MRD-positive this of gained blood the greater insights intensification the been treatment useful that that provides The study authors now the is than work from inform suggested to future the could is outcomes that have blood-based validated myeloma in available traditional be will publicly, markers. And in patients. clonoSEQ have prognostic show and in abstract, which in

to the with use that So marrow by help versus to the leverage myeloma our you blood biomarkers prognostic blood-based to serum of comparison testing guide favorable showcasing complement testing when we data early as clonoSEQ it interim to and advance blood-based of a blood. in in measure adoption in expect response using by

[Operator Goldman comes question the Instructions] Salveen from with next line of our Richter And Sachs.

Livia on is for This Salveen.

have on Immune business. we So Medicine just X the

noted You been identified novel a has that in MS. target

just forward path the to program? are this steps what business monetization So for growth And is the what here? outlook broadly? for can discuss more the then you this next And

Sharon, over that. Yes. you turn answer I it will to to

the for Thanks question.

been excited, We've So building first and vivo we ultimately both novel where disease target. We're sclerosis targets identified program preclinical out package target. confirming identifying in we're MS auto in immunity is continuing multiple the to and in yes, vitro actively focusing that in and on model a drive to the we've validate as novel mentioned. lead and

in a therapies either other our And against proven MS, eventually approach includes these overall autoimmune in be targets that now And that's MS. our of clinic, our disorders. and So on into of able the we've course, in own partner. to unlocked or to with is, parallel, goal out this course, pipeline bring

the line of question with from And our Westenberg Sandler. David Piper comes next

business of on kind had? of [indiscernible] So any kinds kind be kind maybe they be of have a you've the just would that I like be conversations right inbound work of you've could know conversations strategic there considered some other customers strategic of interest of or inbound with, but that any certain is sensitive, that now? exclusivity in color any or done great. Immune Medicine could what question partners, desired but had had or Like on terms you've of

only further deal The thing is the showing kind doing assessing if from done ourselves. ways down a tremendous optimal rationale target, partner. MS confidentiality that this the under go kind not is partnership we've we're to of work part could review excitement is David. in of there under we had at amount short-term may the developing the kind I kind of discussions And said, going that route of of of kind of at we've asset and the what for we we look of versus strategic as on is time say kind the a a

And so and not more really non-exclusivity on time. at business, Immune whether comment I to specific broadly think deal this liberty the on can't just at exclusivity structures

Got you.

any it, I in I'm WiFi they I diagnostic quantitatively MS? Is and of of would we and what barometers kind there this of was know And kind there -- specificity? -- missed I've there like of look And connection. been any had sorry with we out be don't with like a phone is that if in the -- even connection data sensitivity terms guy. should

but you be tend anything to take data things says the way, So should exciting. is really really, this we going to that in look for that

that. us help in Just

if that, you of kind be take can Sharon, would that great.

absolutely. Yes,

about have which further of identified data So as we to lot are data, and generate gives validate a continuing in imagine, the can the us you We've preclinical including confidence target. that to setting.

on plan new to these is findings. Our publish

this in submitted applications normal we've that novel also approach includes cells focused system our patent autoimmunity. discovery, a protects informs possibly data how, differentiated this will, discovery uncovered cover on a attacks potential we've broadly new findings addition, of quarter case and immune on but healthy triggers in this of core the T in And biology disease. cell have revved-up the MS MS, Importantly, couple if you that and more also target in because of

data So a we are lot forthcoming appropriate. share excited and will of that when

comes Bruin our line from of And with Derik America. final today question De of the Bank

wanted for covered, lot's on John hear the to ask Derek. macro. but Great to is bookings. the Been This on on

continuing the there if like And second what's your And the do of you see expectation you around quarters? next 'XX. was pressure, half of see XQ? you budget a be terms some in do couple in flush think of that sort around wondering turning In there? would the of turning maybe in pharma that perhaps I Or

John. Thanks Yes. for question, the

the typically, we being industry as QX, backlog budgets. healthy very been we've out have and a big experience observing of lot a QX. haven't revenue That right seen a said, their we of softening you're importantly, canceled. significant studies don't year still lift pharma do anticipate this in and So of volumes we do bookings, said, we as given that and in But late, companies higher that flush

being grown, backlog has completed. our reprioritization of the So believe that we is and most

the fuel beyond. XX% XXXX expect do we've built, revenue higher we in last So and growth year, backlog that higher will than

then of ask long-term pieces ASP, moving about Got target that you. it. you've Appreciate but And the wanted to the -- XXXX, stand. is you, just the talked of $X,XXX in that does still

the making kind great strides Yes, of are we're and there. confirming to targets long-term get

any questions? Thank you. Operator, there are

talk would if help would unmuted. I Apologies it

Did any questions. there you have remarks, no are folks? closing further No,

for Thank you call. the joining

that call. everyone. Thank all you you a gentlemen, now for Have day, great today's disconnect. ladies you. joining, and concludes may And and Thank