Abcam (ABCZF) 14 Mar 222021 Q4 Earnings call transcript

Ladies and gentlemen, welcome to the Abcam’s Full Year Results Conference Call for the 12 and 18 Month Period Ended 31st December 2021. All participants are currently in a listen-only mode. After the call, there will be a question-and-answer session. [Operator Instructions]. I must inform you this call is being recorded today. to Relations to at like President Stavely, now Investor of Abcam. would hand James over Vice I James, please go ahead.

December, months Thank you, for ended hosted XX call CFO. Hirzel, Baldock, our Abcam’s to call CEO XX by period and Alan operator and the welcome XX everyone XXXX. is Today’s our Michael earnings and

Before I Safe and Statement Slide on Alan Harbor me let hand Michael, over X. to our briefly cover

about including the conference this future Some performance. data. to of on uncertainties and beliefs the company’s may Please considered statements future them. update a and forward-looking are made results recent events regulatory currently obligation assumes expectations risks filings and forward-looking which subject the complete risks impact These call statements, to and company’s and be performance. during materially our for picture of available subject to actual are company look no can more comments are other The uncertainties at Actual company’s factors. the based

During adjusted financial Tables be press earlier to to information the may the measures available call, provide the in today. ongoing performance. measures these issued are reconciling company’s non-IFRS comparable used pertinent IFRS business release to most measures

a Finally, website Alan. presentation Alan, received you if the copy to over now ahead. turn in call corporate.abcam.com/investors/reports-presentations. them you I’d used go of And at can haven’t slides at download the company’s already today’s the like to

could digging more at recent the and more I an will financial five-year just laid implementation some am for strategy I we Michael Thank you out that turn overview kind in time think to James will in course of to then I Page bit morning XXXX the please. spend into of end and where are going good X If over everyone. with afternoon we save on a we a good start questions. performance lot and little the plan and of time of our

Abcam and opportunity talk they make And terms attractive in make refining portfolio durable discovery these assays And these we good long-term manufacturing really we a bit. that performance more added we're completely to and relationships life to growth reagents and some XXXX sure stages period, as up done in very really two two into in more starting to set facilities were new in tools. in science years and and that things new of plan compete product would innovative our quite be and to in pandemic. this expanding to cited and now in put And particularly along of sure life financial in our with capital objectives to amount we one years feel considering a just are measured finishing growth the we pivot and that in about the really installing scale that a facilities, really our said, history where products to I and To to influencing impact that well accelerate the snapshot that and -- market way by make company as new we are now out our putting the infrastructure, and investments we're with into and of in lifetime business. And time in XX,XXX come in these that starting five-year kits progress installations might to out customer where tremendous we're do drive as in progress per publications which the there new are science now invest of lines, a we're doing of the this were As publications the IT the capabilities strategy companies say the the we brief period what is XXXX right which is context our today. we're and will drive we're are digital that research And and made product there of to We're through your pleased we major I'll investments. both almost a of influencing managing that would I'm growth either the that our implementation us feeling been plans year. a innovations back we've the Abcam a we're final that are what's complexities enterprise. during outcomes, two of of of building line of performance this think to

that build and certainly today those for building have but into to transition under in quality, those think of you'll is importantly building shape on antibody the clinic a in engagement is then that the to believe important and pretty agenda MSCI what kind that in we it's of turn of outcomes market pleased have proteomic are and Page the to applications period not that terms diagnostic to and completed X, Day is of relationship talent overall since this commercialized customer team better both which measures customers drive a And We we share us was content, beyond here see almost with evaluation in in in November XXXX engagement us are durable advantage how giving back diverse course with I'll the and there our engaging could X,XXX for what that feedback. actions those number we you to Investor this page. types also to goals to to And sustainability and such a laid we the of we sophisticated that If proprietary top growth. building continue is applications. the building than to are pretty gone all transition house a one ESG and on employee that Sustainalytics more helping we're reminded in that I global us are discovery of rated the discoveries more enterprise, who translated clones but more XXXX outlined unchanged of revenues the and revenues. data was numbers outcomes our moment. competitive majority significant but driving stronger our drive out It highly. more those much eight antibodies of this and by now XXXX say Abcam And and thousands driven starting influencing make platforms business. are that that put really of that are an from now the are where is do influencing our vision on influencing those it In and achieve come that to the and we We just or six to product majority downstream get the just and back a

are brand cited drive growth. building other we the into sustain research. We antibodies out and revenue areas double-digit to the in And and biological in recommended most the are of that cash reinvesting business and back absolutely

its way we're what's doing to very customers XXXX. we from high for experience through is differentiating we to personalized, feedback look that will getting working that gain Our share when digitize a are Abcam that them on is, the and help to touch the be

year owners through the XXX% our were last -- Our today it as business, in business. of of of XX% our equity team is team

Now providing company towards different our and are drive mindset the incentivized shareholders our in goals. a to they're long-term

feel your whether how increasingly our XXXX we're that's Glassdoor enterprise ratings well and we're to We an goals. managing and track recognized ratings are we deliver from directly leading on are or ESG for our customers

has look gone like to we'd about when XXXX deliver to in XXXX things. to this wrote beyond had these being we on So statements like those hopes that what we track

in had of If you share company. that Page XX-year and range to to each of see XXXX. towards in a the that with over I've changes seen revenues what involved is the some revenue the change in you growth I profile we've and the period product thought been the of broader XXXX X, you shape from would And a dramatic these of the turn we've I in company,

to and party in growth beyond diversified that's and customers and added to the the our in company actually roots will and we little coming the XX% and and third U.S. revenues we've and our in breadth bit the customer say our our much hunch customers ever business a in plex, that portfolio XX% coming the that substantially were single hand, opportunities preparation, immunoassays added products, having course well and change business of of not biggest it small and majority of more cell is UK move growth probably large Geographically gone period. sample on a later, Michael primary OEM from to Asia, the revenue The particular finally biopharma have largely where we're products considerable being this in was the to exactly to a added multiplex measure from from of supply and in buyer growth breadth portfolio volume of just our and Abcam’s last able from and the have still not growing now particular protein, our Of antibody a to source majority China from of our in engineering this reporting broadened mix now about then of strategic recently. more to over the company. data customers. And was but heritage in we've but XXXX more products house Southeast the to academic model over innovation

on increase to are change we And innovate to and not and one if bit just to shift but where the to ways I the strategy dive the at look is been to And that on just research available tools impact area, patient to immuno-oncology-related immuno-oncology into that from journey a lives. from from is to of in influence antibodies there, can making whole So portfolio the we've tumor you targets, immune Page products that what that response of in times in the primary little outcomes XXXX business area now that we've that XXX a for example, but and quality across show which checkpoint average, in products portfolio deeper, critical products, such from over starting preclinical bring impact in pathway we antibodies trying doing substantial trying about X,XXX, revenues where the those discovery are our discovery, really now a million targets clinical, we we're substantial immuno-oncology be importantly, increased of hoped. particular research. targets, in in about have research, now change to only XXX to is had made at to applications six a then response they pretty partners that immune pretty who if primary to are our clinical an are look range generating X, clinic, related for not sure that having on market such make in

proud been period XXXX like of continuing their to those would our to important to an that month. particularly our and company. We're and over think very new is the part moves, that of accelerated more from brought those build and terms to five improvements practical activities focusing our accelerated easier focus on engineering the our those to to short-term tactical development being have have some individual proteins lot where a been six times making are this up strategic last about the XXXX is And Page in about we're making molecules productivity made as XXXX. started originally per things impact by X, product sure these whilst So throughput, that XXXX discovery in downstream transitions, required we cell we faster. where of months, discoveries we're further product being are more in of product versus newer development catalog in it's in strategy areas ten do much

said, Oracle continues our four to in year. be year. wrapped opened Singapore Adelaide, Oregon, Eugene, tools that sites. continues last in I manufacturing we a six new period. And our six-month implement expect were and in up Our that implementation at We and in work ERP able last to facilities up the of facility We pace months of expanded through that this as Australia

finally, now AbShare a laid that applications we well into of know the XXXX is cellular the I very business Our company BioVision proteomics plan supply November That plan And and our an in we that and all important goals of activity we it's mentioned new ongoing, integration that the December. of analysis products and work to helping and beyond. that analysis employees are expanding earlier, in that vested long-term but and and investment for launched aligns acquired everyone we out. employee started

and we really confident want to up time complete And go thankful growth move building. turn and of with of built on. And our extraordinary Board for I'm kind as done. business our this that and as we wrap now worked we've So just section, have them more enabling they've moderate we're quality I in And productivity an that resources the together are I that and activity achieving help certainly out and and confident direction. We're on strategy to plan. to phase those worldwide pace few just phase had X of focus XXXX more to challenge just important now, of and business And the going to remaining investment And five-year the across of sustain what how certainly the starting company's same install to our we of geographies. out culture driving making certainly that call my the on Michael going not marking we with of and and XXXX, refinement business, we've is calendar the and team other year, growth improving will all period of to all and we're much to we've period much our more the in the shareholders that a investments we Page categories installation to described, aspire investments. the through things product grow the are, we're if into of the but the and remain very that and We're starting on the new and already how beyond. of things myself COVID of us Michael

the this and looking hope very it turn that we'd to now. for a everything the me Michael, will you'll positive over what outlook with hoped questions and I great company. to stage have agree So later. Michael to I a for that It's in. I is be is company forward But you Certainly, your

Great, afternoon, and Alan. morning thank good Good everyone. you

for U.S. our business, following the for to know, are year-end My the provided helpful ending you months months XX-month it's we and As XX statutory for XX our December change, results UK the periods the the both XXXX XX, period performance period a XXXX. underlying the comparative will largely focus the highlights on December as XX, XX-month most to understand the of and

XX, Slide we'll about talk to turn you please If a bit revenues.

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a margin our from continue as to margin expect see to as trend grow. now the continues the business And of revenue phase house started expected, We of our passed that proportion expansion as in strategy. that heaviest to we operating in generated we've own investment growth

delivered have to adjusted we year-on-year of you On share-based our back will operating and like-for-like to us when release so old seen the the peers, new equivalent the during we you we XXX this just the these As closest payments. both payments in a noncash today, presented earlier to based improvement is the XX.X%, decision basis to with profit XX% year, basis results clear. make share align adjust out the and basis, comparison points over to on add took

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Slide now XX. would turn to please you If

type. Here, catalog growth our you a are on customer category, constant basis. revenue of and see the rate exchange region, by All growth rates breakdown

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and educational continue growth Our good academic XXXX. research to saw customers other levels organizations through research also increase as and activity

XX. Now to please turn Slide

the left-hand of included in operating was Pounds worth for XXXX, adjusted the thought second we Pounds our XX.X% after This million XX.X%. which we XX.X% year so had we to the of operating in million share an a in figure, incentive the Pounds, operating to It's you a operating before our profit be XX.X consensus reported about I of calendar add in year restatement at have it related for operating the costs, the to include million Pounds the adjusted of GRNI that compares launch the results calendar had presentation reorganization final our adjusted and to to uplift profit year, to scheme remembering to together, X amortization of calendar in of exceptional period, and XXXX. looking a XXXX of related a new X the comparative which profit operating operating on like-for-like XX% share the equivalent implementation, introduced through related for reported slide in acquisition profit and a that the XXXX, calendar helpful the to just cost related Oracle during comparable of XX.X% intangibles, also Taking profit of walk a market These with the margin the To actual from half XXXX. noncash back changes made scheme Pounds. XXXX. of back both in the period adjusted million year, to adjusted the comparative million get the then the this expect X this to amounted So profit profit which to PGIP XX stages Alan we in Pounds of mentioned. to complete operating bridge and following Starting we in to would costs million to the over the in majority X.X of year. BioVision, Pounds XX million of the acquisition profit

of aware, the growth scheme you not in around their For an approved company's the incentivization delivery those plan. XXX group's who to is equity of profitable was growth incentive plan to in columns, finally, year arrived after adding back the schemes, XX.X an employee in November an the related XX.X vested share Pounds the including XXXX, payments AbShare prior last adjusted the for that align to million for leaders XXXX of at additional And XXXX. two PGIP share-based scheme, or of of five-year plan are in we July which figure all

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would to turn Slide If please now XX. you

areas an cell-based innovator and and biochemical we're our BioVision We we with a and of they've been to growth of research out focused product were integration XXXX assays. is announced for supplement acquisitions suppliers a one products the of science This mentioned, existing our well global now focus, with acquire our of focus BioVision through able aligns distributor reagents well is neuroscience, deal last that To strategic one decade is one on process, and of know their recap, XXXX, largest plans. priorities in since laid complete the track it we're over through in our life our Alan we immuno-oncology, of including and to to moving areas is As on and having organic pleased October. the development oncology, epigenetics. with which

our $XXX of debt-free our business credit million around a over current for financed drawdown Abcam. and basis. recall, million, the paid $XX and at one on little were as existing on financial was Regarding it facility. or resources cash using deal a of which the we XXX We headlines, cash Total the we around in business combination revolving third million in a Pounds bought of exchange XXXX a million, the you XXX cash-free Pounds sold of through revenues rates,

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of of million. As recurring date million the XX were latest XX Pounds around $XX revenues or the months acquisition,

a and couple accretive be expect slides. XXXX. to our own in EPS kits. will uplift more updated margin gross their transaction their similar this benefit goal the to gross a which also the Our both from in for on on at sales acquisition, Overall, of of the I'll revenue margin our touch We've are our product products sales, and long-term own we to to adjust in-house

now XX. you If Slide would please turn to

cash our cash and remains investment Group returns to We'd unchanged. annum. Pounds the we the our turning has anticipate the net the October in acquisition NASDAQ our flow up our and generate balance line of our per elevated Waltham years profile been million of attractive strong our complete the the front-end with significant. which strategy, delivery we of generation, being and organic right launch single-digit and strong cash broadly chart turn our the to the investment this of inorganic shows debt million plans to to that support we XXXX our flow continue million generation program, we profitable range. to capital Please around XX investment, modest priorities the generation recent over allocation the expect manufacturing at installation and as Pounds the years, a of equity business scale on on mid growth XXXX, XX the complete announced to maintained the fairly of following of business our BioVision, ended cash and position placing So growth the potential in from supporting allow of ratio to last and XX with sheet, to CAPEX level out back needs year plans Pounds. to mid-teens consistent and kit the final our quality capital sales in to over period ERP investment Slide The capital levels self-fund us continued confident through fit few higher of next We're reduce to the site the to the CAPEX for website, The capability. to internal Longer-term, for in XX. remain

Before for that around in to the other guidance further the path out clarity do we COVID. an mindful statement when time on remain COVID-impacts we macroeconomic to previously reintroducing uncertainties, as we up wanted appropriate more feels whilst open well cover potential as committed And it we earlier I it questions, the to of set today. We now had so. guidance

in is we growth. currency trading expect with Our of our at and mid-teens This expectations an year organic BioVision. far constant is XX% we organic revenue in so a line constant overall, currency approximately the anticipate On this revenue of includes and basis total growth currently impact basis, XXXX.

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adjusted rate but depreciation and adjusted avoidance for excludes this costs, share-based amortization the and total growth payments. includes costs For doubt, of is

figure -- is comparative XXXX So million Pounds. is about XXX about for the

basis. constant Pounds current goal a to million adjusted to performance. our to This XXX goals, million target is our Pounds revenue long-term we've increased and BioVision Pounds XX on million incorporate operating Turning to currency our XXX by

Our adjusted unchanged. margin ROCE remain targets operating and

mentioned, With pleased I as and Finally, operator, thank very any the of of to you issued we'll to And Board in on both to come that, we'll at options we've those IPO, We reception the the our a with to extent liquidity increase up your for Alan, -- been number it this with options, U.S. with consult -- and review the share open shareholders we And increasing. continues since I'd time mind, questions. ADSs with like liquidity. listing of proposals. doubling up with in attention. to

Instructions]. you. [Operator Thank

go question Your first Souda of Please ahead. Puneet from line from the today Leerink. is

Michael. for Alan, my Hi taking Thanks questions.

right was year, wanted expectations. are and should one, number, expectation first see building how for And in-house think business, to of we the now in ahead year-end just the the we what the about growth think that emerging contribution the full should on from the from overall in-house that, margin how we're fact And you cadence of our So that have you about COVID for still? it your just what's the sort and also, given that investments by ongoing op XXXX? total

not It's on questions much me answer mute. when to I'm easier for

products, own introductions. can Overall, building at year. we protein. start year, the and antibodies still there's than and we're maybe cell where talk in in our your most Last product productivity and uplift and financials. the Michael ideas constantly that's our to throughput more had where me about towards new of in have execute engineered and start end little for that then a of every did looking we've And the situation experience about lines products of Let year, new And in a increasing we bit all think we we'll portfolio really can we the portfolio. X,XXX some antibodies see ways

market, new to product of limiting and there the is keep products. right development of kind driving good hard question, answer throughput that the think introduced. more as be and much constraint see we guess, demand can don't more So we I to throughput there's productivity we can and your to so that as factor, the to think pushing tools bring We we a lot side. need we're the The of

combination using as predicting going to possible. as So much it's where our the insights, data, a analytic where of those then driving market gaps are, and is innovating throughput

keep just more So what do kind not moving guidance but your can. much as and more in target, through the I general, we of on are? is of we you expectations planned driving any give how fast answer And we're to our think to want do so as question Michael, it. kind

we on if our really organic rate with at the don't dissimilar is XX% guiding overall, haven't Alan mean you we in target mean, rate growth not BioVision, -- an next basis year. I a mid-teens see implies to, overall I a way own it's which with products the number, said, I driving the we're Yes. but -- as mean, look growth business not that we're and over that that's

Okay, got broader in Helpful. proteomics And then companies. it. about question terms this of -- a is the

[ph], can are in-house companies and structuring are are number these your ISO -- lower? any outline and these companies assume something the or by that margin others, -- Could the wondering antibodies are we incorporating from here have maybe should are the the pure strategy market? established And Elmer about seeing when you sort the on what market the economics you you in these proteomic links these plexes on there out old if products gross [ph] Nautilus a are of of have those you that your launched play there that talk agreements, how those comments meaningful growth these You we have companies and contribution agreements also should others. with assume economic eventually and of and obviously

the proteomic molecules. Again, to antibodies -- platform that investments model and take using let in And innovation of we science. start great do the development -- part, for as companies you want yes, for most me they're their is think

molecule. the of Of signal to course, not just a kind be any of old to them antibodies, need proper lot conjugated

we right can that flexible -- so commercially ready about to a how package solution, run performance And they market of quickly. of get the on trying to right the work so and the the it's is what your up speed offer we're antibody, to being to platform

I'm applications. approaches content science higher like them particularly the that the done to relationships that. created they're ambitions little thoughtful catalog, range of Nautilus, allows much content exciting. create innovative like grow to required there up have finding But more these buffers more the where addition attractive it's we've to outlet and agreements a some would the developing products the of pace as where those new be established and more marketplace, having economics proteomic For And is lot of product are at discover of some work a that expand we're material innovative, by to to that is for just we've the research say, for some, chemistry. our into again, model applications, some can sometimes adjustments the some different companies kind in pan are big development conjugation antibody about outlook in already difference availability another of content And that's been that we're for had have of economics But Abcam. a not there's that a be for partners kind I throughput the how of components diminish and to that new and and the of approach. future year, of together. But concerned that the minority. where open clear just limited anything enough for do together a what's or it's for no becoming and produced a That's Those those we the to really there last our are

what but is that kind new that. we've are think of companies lot working there we're product with useful, a more is innovative content finding already of forward made we the and are approach of doing development look a of this couple very I to

as last look wondering obviously, vantage on squeeze Got have does sort out there? down in. you. look come point, your one, how beyond if as of And could then you change your Thank just sector, BioVision from valuations this opportunities around in I view I potential meaningfully you mean, it. this Alan,

Thank you.

I true on think markets. that's the public

opportunities up bring yet. play way reviewing that expectations interesting from product those the But advantages of year. just it why we're a of next still sellers' they in of that will wouldn't that the so not companies I'm So small tuck-ins portfolios quite out integrating as sure the complexities the teams it's ourselves. and do over true and actively the lot weighing the Maybe we private ever. We're and versus side

to moderates. companies very selective. that But So more I it's as to be reviewing we're -- we're looking forward equally, expectation think valuation going

guys. thanks it, Got

is Tejas question next of Sevant Morgan ahead. Please the line Thank you. Stanley. The from go from

Hey guys, good morning.

couple quick of here, on a a geographies ones So been of couple have late. in of focus just which

Alan, starting for mean that's obviously, important I with So region an you. China,

you point of impact Can I COVID think to it's here you of walk the your of the was about concern of over close us zero especially these just nuance? that, of XX% the a to following related sort it sales. that term, And given there? navigate policies, tolerance geopolitical suppliers through weekend just been can there's to recent there on longer a surge been your us the a bit focus COVID of upheaval, local all remind recent strategy

investments to in for continues Yeah, research year clinical to not as important thank participate market, be you. is an that's and that market that into made but theme and China of for the are long-term, talent a translation important that well just being in. Abcam as us, for long-term applications funding in research we the this believe both

So Hangzhou were reminded Shanghai where in that's we practically, pretty extent material unaffected our much But impact unchanged. any XXXX. The operations some us zero tolerance far and have and Spring COVID by short-term to continue so the of policy. consequences of of they in were policies there the COVID as

Given of closures and Shanghai, in what's in change the some early could rapidly. Shenzhen happened school that

how likely rollout. that be come should affected that we around Hangzhou in depending a the demand So inventories routes XXXX work The the February, what was us to when we're prepared, any of our side did original outbreak also doing is impact sure period we place. to that appropriate and shutdowns as allow China, facility April short taking things have on shut in is we're March, making market to just for they as was

plays So far, a but not how out. that carefully it's been major we're watching issue again,

watching we are a of expect. on think and and as lot don't I but there's might you monitoring daily a information reported So basis now, material weekly

to here customers' strategy walk just these then been your into us element that's you And extent recurring peers pricing helpful. for a but be and your disruptions, up. That's to lot are just increases for chain, of an pricing through broadly terms a Can scale ability guide? it. perhaps Got about of of pass some on to of here, what supply including ability is theme size XXXX not tools just in a just increases through your your factoring curious to was your inflation about you and supply guys also year that I chain you going your there

do want that? Michael, touch to you on

Yes.

if ability OEM our look the you So doing. products more have which I mean, we Most and -- on at where price have now to are probably we've been on longer-term side we purchased increases, exposure. the of OEM contracts, potential through we pass particularly actually

side, on too side. we're I OEM product now through we're recapturing we're mean vis-a-vis about up sure product we've make high. right to the now So fairly the our the own worried driving had any enough not comfortable inflation on right flexibility think to too And I on prices being not side things costs. increases. obviously pricing But also sensitive price

saw the second to on one sort XXXX related if improvement marked guide. Got half to obviously, usual first just extent mix you relative and should of second bear could first as Michael, improvement use to your so second more curious, what I and half. was that initiatives then, of then with it. in off the leverage half with That's I of starting the of the where and of just is step-up I this the up half last the to you're volume on And operating the which was helpful. is, fruit follow a baseline nice and see And to a some of mean, margins seasonality year? sequential some fair XXXX I'm versus half going that in it

yes. I'd fair, that's say Yes,

Thank very you. helpful. Got it,

Thank from Numis. Please you. from Hamill The go ahead. the Stefan question next line of is

Hi folks.

revenues new biopharma helping sort of drive information sustain? sense how we've XX% growth Expedient is give rate that up and that us just on so is Can a you of on split growth can given of in and you following with area. the the been there that that kind this And just that

now of last really in Expedient of of that's antibodies. successful building the we highly recombinant validated, antibody is the have making are related is high-quality kits that over that's conjugation biopharma approach engine lot to chemistry right the the still in been what's driving sure making the that it we've it. plus is been that Abcam to immunoassays That target, of related that made the we've engine helps core seven commercialization approach years innovating the we're helps, -- lot still for a six are or -- that but that or have the portfolio, version that's we're to a or to But thing a that's longest and biopharma growth. related attract is It growth to at it of there. it that working the

just in-house performance. then is of the third in-house Thanks. sort And it a parties, on fantastic versus obviously

sort of two? Third-party give growth true we relatively those subdued, between the as like-for-like between sense of can those you two just or us could rates active view sort cannibalization a sort any of of

related are sales the third-party we Abcam historic with. the of lot started business got that to A model

is kind volumes, involved spot of are be in stages small academic a research. tools line relatively of the customers, going which of testing, sweet typically early to appropriate molecules their So for

XXXX look you as calendar when activity So subdued. still lot was that year, a of a at

again on on And pretty to academic high back a start lab that growing portfolio. was pretty disproportionately in and then COVID we impact saw that again Omicron December where have November, as and impact and academic of the January. nicely activity the OEM to So come October through and significant started buying

flows has OEM. ebbs academic on had a some and bigger impact which gone with So COVID, has through

been then you've of now. one few deals final one healthy the done partnership in sustained of on flurry And years a a sort last And has royalties Okay. growth quite for growth that and and There's year. just licenses.

So or as through having those of fairly could that further we acceleration year in plan? this long view terms should come partnership a lag actually deals

unchanged. response my if think I to is this

projects, of diagnostics out than fee by more rather planning from that, top and that the a that of business through assumption, like and CP&L and driven kept kits and for more that perfectly to from happy can was with think likely service and line portfolio I custom products if were service. and vitro be acknowledging in that overall to up felt antibodies be of revenues in come that growth supply we've we'd always royalties that

more we environments that's great -- counting well, can are Abcam more out our And products if out of paid on we but we're taking that and activities would successful hands unchanged. things hands, the So into say, that. not our be if of not we're where that's then upside, we are are royalty,

see to it's it. great So

strategy. trying our those to get line the higher But with our load things I timing to of of so than think it contribution revenue or out those. group the of to in happen is predict absolutely is business in control when

folks. you Thank

go William Thank is of from line you. The question the Matt Please next Larew from ahead. Blair.

Hi, good afternoon good I here. morning and guess

within curious you count I through capital in there's the some in by anything segment. us walked terms of stepped could just that give You line, know the continue will OPEX XXXX. of hiring I if new investments breakout side But in think, mostly R&D versus sales XXX XXX employee to about kind plan from to down is it in the folks XXXX and add XXXX and in you marketing? XXXX. the But what's of on head

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at year So the people. about we ended XXX

than So are in And before. was much anticipating... the years year we over the headcount growth lower the

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XXX.

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XX at our investment margins a [ph] rate in slowing, depreciation. if those operating seeing I out, benefits, costs, a operating continuing the impact. increase we -- look largely cost laid But it's comp that So digit slight is again the and and million -- increase we're XXX is and looking in low where you in coming about the is through that's mean we're increase at -- Pounds some

guidance, what guidance, right meaningful Can policy you there impact XXXX? you're your and currency viewing for foreign another is on just we just obviously, the year us expect remind from then XXXX just how think curious currency. was a gave And what Okay. with you should the I CER now,

and we've was was and currency and weakness Yes. year, Pounds don't so dollar the by as we on What dollar a Last Ukraine. the what's result the largely against in Euro of against to the the weakening Pound. of foreign going strengthening the largely Pound, the -- I of somewhat currency has the predict headwind of don't think million we seen due impact far been about the XX changes that the really year-to-date, but offset

strengthening So wash don't the dollar that’s currency will out impact. tailwind. the the of a in by where that change right at rates change give some a I know go, for but But largely now, right us now, hoping Euro. will canceled been that about we're we're the

last in probably Okay. for you on call and one, half headwind And last impact? back terms then just there be think think and to some of update, mentioned of from XXXX I products, X% a anything the note was in out I obviously, delisted that's the that XXXX outsized mentioned, we was should you factoring that -- something the but

XXXX have and replaced impact what No. in culling try year. replace had XXXX on biggest didn't delisting But stuff. We We've -- we have I that not year. -- other would early had of some not with there. we've if the portfolio. certain continuation of portfolio -- probably XXXX. it's We've And we've mean this last we're from any just always portfolio things, we Pound we large a significant again, extent, a had got million in from on we've the a that it's delisting them we probably and the X delistings through. to to And saw But moved effect can. we culling

also were we is portfolio most a last the products. last of were second years those revenues of we're what largest have portfolio an done we portfolio smaller product smaller to third-party we've the than of given our half And second do when and you of I also just continues a do has impact the of XX% now the mean impact significant shows products. we even the our our third-party it cull the smaller so very and growing own actually higher And few and think amount In third-party at we remember, products. because of rate, largely culling culling over products. the continued that it and sales, year, good of the a be half

to get the impact smaller. continuing So is

Thank you.

you. Please The from the of from next is line Charles question RBC. Thank go ahead. Weston

have questions, please. Hello, I three

more COVID COVID growth, subject, And of of you reflective a First of organic impacted mid-teens relates that and sort your the some to on deceleration? comps of months of are assuming organic first mid-teens acceleration that revenue sort recovery of of much or underlying is on an trading all, a how or rate? couple versus of growth that growth

it estimated now. with had So beginning on what first are question, where the the consistently thought Charles, is be we and right we'd we the of trading year, before we

COVID which hit we're recovery think And fact, those as in China not significant, not make a Alan catch-up expecting else make expecting there be in mentioned, level some won't significant incremental caught targets. or anywhere impact we've -- -- the no, we numbers. So the most it's surge be we COVID. we of hopefully, those going in trading we're don't but not to on of And from think from -- from what's to actually think will

you're XX, revenues. share combined similar split much or antibody products, a could of you given could other seventh in And all quicker and you. year Page or a time not How that similar frame, immunoassay expect eighth the then of investments? bigger on some the in is your your you non-primary and digital market immunoassays, Thank go markets out immunoassays

touch Alan, do want that? you to on

market than been of grow for to to that more the there. XX% much smaller have the Yes. I us we think X% where antibody and but headroom a business, mean immunoassay we market, there's might just is lot

of done you, back immunoassays TAM market, more expand coming the being a is there's to was So then agree but little how to the after. And market there. as bit saying, Puneet are platforms I to much adds additional there's being in share growth, with that what it so could these would go through size comes that innovation

of interested extent, trying X,XXX to have in that capability. engineering, a some we stages more early we're And well. make that products we it's developing On the we're early. the thousands but cell can nice, year. are To we're get where in to So first of so dynamic place each as kind

as that's So product it's were science and got Proteins portfolio of with just the cytokines worldwide. those days -- where market in the early proteins available our grow we bioactive going track with grow will of out really but one we'd to there, to but think going take good That's we kind a lot we're position where to share longer it's build right uptake. the -- I us take on thought be. size of

antibodies everywhere. cell more for a to there's immunoassays growth and in both the There's still edited is as and to there's in lot share potentially And proteins. lot more there's go in for growth a addressable lines markets. in So the go markets, then reality growth addressable in

like feel in we're we So markets. good

And consultation I'm shifting you're me, sure you not with options Okay, but considering enough, primary that to comments to not perhaps, it But appear it should to clever signaling to much listing? share your understand and my signaling. is question thank be last about or consult, what something signal to it does you're you're increase relates said given with going share too shareholders, to reviewing your you're and you. going liquidity I'm likely

think I on Michael, you're mute.

on. mic the turn to helpful is This

one certainly Charles, look, the considering. it's of Sorry, we're mean, I things

well as If listed and we've very little you is know, we XX% XX% million and of in and trading to interesting low in that if our gone XXX-plus is the since you outstanding shares -- from it a shares U.S., it year liquidity. it's here of liquidity, over these volumes we've have our X% our

to all what we're And that's at take year. looking of advantage I guess options at consideration we're ways looking are this open that. So to and

Okay, much. thanks very

of ahead. the Please Ryskin you. Bank from question America. is Michael from next Thank The of line go

call. to with question BioVision. start on on And taking update. the guide want the congrats on and thanks Hi the I a for update

five insights of an or any in learnings just take that perspective, integrating take that of deal opportunities? approaching with You sort from to learnings as Any I'm from far indicated future business you offerings, rolled of sort R&D any closed progressing you assay since terms the as wondering, just months how your is you existing acquisition. the the can as really can closed. you six progress operations after good the

Yes, great, thanks Michael.

think together BioVision that is help figure about and think their gotten opportunity seen we've that data one there company as uniquely can provide we the hot looking we out and one I investment with saw of acquire may opportunities team. to things at of and things our kind could we of integration, help that's interesting attention focus R&D just believed areas the any most still the prioritization it. some I in ours, been On and always how the are innovate where they have where more list And not or we

of places, acquired to a components historically those scale in becomes and none and the raises through that at is lot conjugation the trying of the question kits manufacture on that for had. portfolio, have is where in kits is store a assays assemble I high now. terms bigger the to companies a capability and kits So at pretty need Abcam investments with hadn't focus now we think in immunoassays, the those actually that of throughput the deal and and we right going us time, have that capabilities that to right what substantial activity in we're BioVision ways

of looking our at to up scale just BioVision's think has capabilities how about of So that given make bigger we that things certainly we're and one and and is year and portfolio that additional and team this scale us that company a part bigger opportunity. the

on And BioVision, quick Okay. more. then a one follow-up Great.

other a million million it do the a math for worse, in indicated account there? better XX bit the the years, you I think just what's also us trailing the XX to feel raised view rest was BioVision X of Could we I performance. months that, updated by Pounds, guide and operating give between you but or little bit XX.X long-term roughly can you unchanged, and some little mean, the current update, On do on a sort million of math but XX you clarity

reflected year both in the kits our it's of in antibody growth Well, our I and we think that business, that our just the last saw confidence business products, proprietary forward in level and and that's those assumptions. growth going

sort customers a alright. performance the Among customers, more those institute months. And bit doesn't customers one little typically that academic trailing as of market segments, could Okay, will get the if Obviously, research to me. strong as XX grow quick fast, One the it's susceptible be last customer a and COVID. for biopharma. you

there NIH both those updates funding is anything of you those in customers, more upside the your really to out there or back they recently So with numbers? on normal, call are and status from can U.S.

Yes, it's question. great a

soft was of I -- strong little that numbers that winter and the heading is think academic for right bit break January, with COVID or worldwide. what environment all closing Not some some issue, where on local slow to we The China seeing of funding had now we a are an be them, continues the early some shutdowns the is labs December the one regional in and institutions. back out January it's in in or in whether come impact but locations. to impact

think I those there's So factors.

by back XX% Our self-reported would own surveys have are that January. suggested to say the the that for numbers normal of academics labs

means. that whatever So

done, So yet. move all to we're victory, we'd and like it just not declare say, on of quite through

on part the want quite that. earlier that we're top reflect drive about about in of world still the bullish is our the of but our uncertainty a So lot very end to to asked updates range, there's you numbers of trying and we to

Great, so much. thanks

from Thank Miles ahead. last from Please of Dixon you. Hunt. is line the today And question go Peel the

thanks. Many

returning Capital XXXX. in you I to talk that Just November quickly, two at Day about heard Markets themes the

like, Firstly, it Michael secondly, trying your to get has for to was Fox years that data that essentially. J. differentiator, to the on growing successful funding you. was success bodies that Foundation, market? the of and for of And guide and of the we Thank of team why relationship if for couple you ahead been the can last Abcam now a continue the front in with How you demand the add antibodies. on in

Miles. you Thank

it is innovations. cleaning up, structuring On from using the I and Abcam, to science the to been the those at then data We're architecture getting beginning. accessible more usable it better models better and relevant to to has who and where always right make going important predict building data, digital help think and is creating data, just

we experience. can we making of what this digital the So experience, we're -- customer do customer applying really I journeys have on years quite that a that, data. using investments but do can and on about for of think we next ambitions few lot we're year high can and some excited the our declare still there, progress We're over what we

finding priorities, that bodies in applications, is the that working about just discovery clinical innovation gaps what about the or of transition priorities, a to impact. and are, we the to brand funding the is researchers is from thinking clinical a that more together insights market bringing and With together with taking where foundations kind part do group capability where keep our is where the going first where -- and the big patient that. is And needs of to going of our off years more happen our of

today. It's been soon. everyone. about thank So, a I the Fox We're pleasure Talk we've pursuit. we're And ahead that attention we've to that, many Michael about extended Abcam's in of for everyone our area. that J. to excited again able continue in are been pursue thanks, very and to what year want achieve. like performance. real to talk excited more with We're about what their done we There proud

all. Thank Bye. you,

conclude Thank and call. today's does for participation, ladies Thank you. conference your gentlemen. you That

disconnect. now may You