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Nanostring (NSTG)

Participants
Brad Gray President and CEO
Tom Bailey CFO
Doug Farrell VP, IR and Corporate Communications
Casey Woodring JPMorgan
Catherine Ramsey Robert W. Baird
Dan Brennan UBS
Dan Arias Stifel
Chris Lin Cowen and Company
Call transcript
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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the NanoString First Quarter 2020 Operating Results Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions]. Please be advised that today’s conference is being recorded. Instructions]. [Operator

ahead. like Mr. conference Investor Doug you, Please now speaker to Relations. hand sir. today, for Farrell, go to would over the your Thank I VP of

Doug Farrell

Thank you Catherine. very much,

call today Tom XXXX. our fiscal and CFO. operating Joining me for our on is Gray, first and Bailey, we our afternoon, this year the Brad Earlier results CEO; President released of the quarter

product pandemic, we for impact related including call, this COVID-XX and statements and of status anticipated may the offerings. our financial projections, factors, penetrating the that future forward-looking, During collaborations, and objectives markets, make success are about and the focus planned business expanding existing future trends recent and of strategic development addressable statements growth, and prospects and

subject many beyond uncertainties, are statements time-to-time of risks uncertainties and risks control, our our described to are in and from the including filings. which SEC Forward-looking

and update Our those differ no projected, from undertake statements. to results materially forward-looking we obligation may the

Tom compare our call prepared in be recent to to believe a release, adjusted make we that GAAP, non-GAAP measures financial our results. and with it and our will most supplemental selected Later interpret results. as according have Consistent our we to financial earnings the today, results easier reviewing

regarding be such for well financial all GAAP, as press a rationale release nearest Throughout of afternoon’s measures, will as measure, and non-GAAP definition non-GAAP measures. noted. reconciliation limitations using these discussion This unless of includes this the details measures GAAP calculation and the the measures comparable non-GAAP to otherwise call, of

XXXX, page includes for other well XXXX. and the exhibit as first adjusted non-GAAP of our models, analysts a we’ve year In on presentation the as each the building select an that in of Relations tab Information aid their full and data addition to Investor Financial quarter quarter financial under and investors measures posted

next two everybody, with you of like to forward and weeks I’d the speaking to remind at Bank and in many we’ll America healthcare UBS virtual participating conferences look over addition, be of In the then.

the Brad. call with let So over turn me to that,

Brad Gray

Thanks, hope has healthy Doug. COVID-XX am productive times. you to how and team NanoString joining face for remains uncertain in everyone I the today. these I afternoon crisis. the and rallied thank proud Good us of that

the maintained launch by our challenges have momentum in We the near-term GeoMx business. despite our nCounter faced

been While the staff to been majority restructuring able months, and home have over any implementing our furloughs. research of we few on-site our the from has last measures effectively working activities, or continue and avoided manufacturing we’ve

adapted from customers with online quickly they using that our remain and engagement well too capture demand return believe are We their our to when focused strategic our as to channels and current the objectives labs. to digital we customers to deepen work environment home. positioned We on

challenges outlining will start on will update our and our over faced customers we current financials will today the before research you color are providing progress the outlook. to how cover recent the by the call objectives our environment. turning XXXX adapting I then towards the strategic on to Tom, I who and call by current

DSP nCounter with bookings a the slowed into North despite caused of In the short our COVID-XX. by temporary GeoMx beginning revenue pace and strong delivered revenue research and America contrast, transitioning majority as work-from-home we expectations QX, During in Europe across of mid-March, customers of growth customers fell disruptions the mode.

receive early consumable instrument shipments. through market five operational. pandemic independent and The in than customers institutions, X,XXX by fewer slowdown ability in research of as an both research April, According more impacted widening orders sales customers fully themselves described one to for a COVID-XX and than study reduced to

which the by work. XXXX of will researchers be revenue at determined resume Our largely balance over the pace their

the a is will business believe manage we leading us help that tracking indicators uncertainty. dashboard of team through Our this

surveys of for lab volume longitudinal include helpline sales operational consumable calls status, requests customer into quotes. we researcher tracking and of our customer Metrics the sentiment, own coming customer are

our While term, a business near COVID-XX has term. in we over the disrupted expect the full long recovery

for demand GeoMx ever. remains and in remain sales healthy nCounter instrument higher than indicators and interest Our funnel other

this with We poised challenges are position an navigating eye the on current a emerging in situation from growth. for strong and

of mind, an that like laid in With at I’d on the strategic the we provide out objectives to four update that year. beginning the

by human accelerate strategic biomarkers. the and where and to the research, disease of search translational being is study for analysis objective adoption demand first spatial is DSP of GeoMx Our for the driven

XX consumables. from XXX research translational GeoMx million and QX, QX, generated vast which orders to in shipment system about systems. than the of instruments $XXX,XXX orders than generated new in more of bringing the We majority included more $X.X During cumulative GeoMx revenue, XX

GeoMx The translational in with remaining with experienced saw were what XXXX, consistent we application. QX largely in research primary patterns ordering we that the oncology

demand We market of are momentum several closely continue. tracking suggest leading that indicators important that will this

which indicator Technology insights send Access our providing processing drive Seattle in mechanism purchasing allows spatial first and customers interest powerful our samples to before to biology the instrument. a for an TAP, experience customers The of is for Program, or lab, test in GeoMx

Of roughly our a one-third a leading GeoMx of order been cumulative by TAP GeoMx indicator project, TAP systems orders nice have preceded volume demand. of sold instrument making to date,

TAP customers. orders quarter, date, XXX TAP projects the XX first we XXX than more about during have booked new completed approximately nearly QX projects of unique for To double We XXXX. the

The that GeoMx is steady indicator the productivity second illustrate and system. of of stream the the publications power peer-reviewed

systems of customers to GeoMx their need gain As TAP. to the order grows, expect publications to own samples through body confidence run without the we

that seen at the with years nCounter system pace of achieved the about there as of single-cell new during genomics date, appearing a peer-reviewed the and the ago. explosion similar to GeoMx To publications developed launch field have been doubled beginning publications, rate has about that XX five papers

are publications Yale Rimm new of his second the I’d in tremendous papers system. In these two Dr. at laboratory David the that colleagues It’s recent months, weeks, third the have highlight. at last important of noting the indicating peer-reviewed GeoMx publications like just Rimm nine GeoMx, Yale several and on been from productivity there Dr. the and including that GeoMx to from

journal have demonstrated testing the to Laboratory PD-LX each that The quantitative comparable these to one Dr. Rimm’s to Investigation, appears quantitatively DSP authors be for the future. assay Nature in companion for and a In diagnostic PD-LX. measurement compared FDA-approved laboratory-developed in for concluded measure to technology test. to potential Dr. DSP team PD-LX this a Rimm’s system possible immunohistochemistry GeoMx it’s used team assays potential and GeoMx by measurements as the that protein study

in from tissue additional checkpoint these in blockade. with suggest Research, outcomes of a In compartments in Confirmation agent types. Cancer Clinical Dr. protein the measuring identified team single paper, PD-X of diagnostic benefit separate companion journal XX the specific Rimm’s cell immunotherapy findings markers published on that or particular may would require focusing studies future predict tests spatially, markers located markers to associated

GeoMx yet CAR-T translational in Carl June’s is that FFPE suited diagnostic simple a productivity published exciting with research demonstrations and of of not is to tumors. peer-reviewed GeoMx more workflow, the DSP solid by example utilizing this One noted samples for translational and literature. GeoMx use efficacy relatively cellular study tumor DSP author in been have The of well use. Many positive therapy pioneer

join. further to June’s XX you NanoString sponsored from feel It event translational research and We use With and scheduled have of and X,XXX we of virtual secure. cancer to scientific use already within registered to will participants GeoMx in by the in plan the remains and that to the research all leadership Science, attend oncology. commercial for conference May we XX. is Dr. promote Advancing encourage be all and a featured free momentum, confident GeoMx

we with of for adoption for estimate quarter. begin NGS-enabled GeoMx the twentyfold. our market expand an by expand third with Cancer the to addressable readout, community that and midyear instruments, expected we to next-generation Transcriptome along is capability. plus shipments first with sequencing into new objective the track readout on opening researchers strategic by represent enabling genomics Atlas readout remain discovery will up of second of midyear, us, GeoMx a launch X,XXX Our gene during research NGS NGS Discovery our exciting customers We approximately

These throughout and hard from pay more on than digital spatial Summit. presentations had as leads. enormous Since generating from leveraging and researchers such are X,XXX been April, events this Spatial educating has dampened genomics. online work our focused interest beginning aggressively work interest and discovery have is Genomics customer in market in and home, while We’ve the COVID-XX we new AGBT the sales that developing other COVID-XX February indicating content webinars the in driving in participate researchers is March We’re no off. meeting they in way our that to held pandemic, events

the our model, TAP of GeoMx the events, NGS-related opportunities now as first of as for that one-third well of result opportunities successful received a the we about sales quarter. instrument on during As these orders one-third account

value flexibility used in frozen samples GeoMx is FFPE human GeoMx of of past, limited to collected One to the the of discovery In great sample. can to any from or the region proposition use the any discovery archived research. of been With DSP, discovery researchers open enormous researchers measure had as opportunities science samples. for up fresh target for hallmarks any patients fresh be its

compelling infectious in be presents work virus, the and In risk these must translational researchers. explosion pathogen research discovery working the tissues value with of to a on like sudden flexibility order formalin-fixed an illustration to COVID-XX of the reduce samples. performed A discovery of on

fixed by for. they challenged tissue significantly built are was methodologies profiling are samples, spatial other GeoMx While what

autopsy Over GeoMx secure that affiliated entire implemented can COVID-XX, the to centers used rapid research. a morbidity. weeks, of past into infection interested research gain so that may biology Most in samples early institutions be we’ve to applying from the with medical by COVID-XX approached to that insight dozen are have tissue they been programs

plan and COVID-XX. case samples patients data of include discovery insights to studies are brain, who written being as lung, succumbed key for biological tissue GeoMx are while These processing heart, that studies kidney at to Some via are These others ultra-rapid colon generating instruments up sites. TAP, from publication. their use multiple

on forward DSP matched genomics. ability discovery to in research all The paradigm of research FFPE speed, the nicely future. to more look many of COVID-XX work by the flexibility and precision examples samples, requires the GeoMx enabled discovery to We

third is consumable expanding base growing nCounter our our momentum Our portfolio and of of systems of is business. the to strategic our nCounter installed objective maintain driven products. primarily objective This by

XX% base compared In ago. a QX, an of to year increase systems, approximately nCounter our installed we grew XXX to

fell continuing increased to short While work. utilization sales resume are nCounter of of researchers to their QX when target, menu our expand consumable our panels feed we

introduced focuses play our in in immune we And neurodegeneration the complex example, by are development. in targeted that oncology cells role studying the that XXX currently months, for Panel disorders. that Glial neuroinflammatory For Panel Tumor recent Signaling pathways and therapeutics on

value demonstrated viral understanding COVID-XX host’s nCounter of have the publications in for the to infection multiple research. Recently, response

can that sets. assay rapidly specific a spike-in We’re used of developing COVID-XX with products and most panel code be custom expression gene our

providing ordered beta XX at kits this availability, scientists And no to than month customers in samples. more We’re assay enough research. to have X,XXX process almost the charge first of COVID doing

strategic We emerging commercial Hyb & partnerships the fourth our Seq. ongoing is and Hyb that with disease for support to can Our our engaged partners platform Seq objective for key applications applications potential identify for to & discussions pursue strategy. remain in infectious

for addition, may Seq applications to developments opportunities at unique Hyb on but I our updating you products. potential In future based we forward confidential, developed, the look provide researchers in then future. which have chemistry time & other sequencing this these we continue on explore remain to new for the

results review Tom operating the I’ll the call details first for of quarter. now turn to our the to over

Tom Bailey

Thanks, for today. Brad, us thanks all and joining

one-third first Prosigna service service was we effect for our XX%. a revenue completed with product growth XXXX, previous growth transaction, was XX%. and of Recall year-over-year $XX.X units now December pro the product Veracyte basis million, forma sold. representing of revenue the the transaction of quarter and year-over-year we this over about same the XXXX, For and recognize of revenue in On

TAP growth XXX,XXX revenue significantly GeoMx. more was was consumables. million was instrument XX% that impacted Total revenue by our strong In total over X.X service. shipments GeoMx with driven just and also Service driven was COVID. business nCounter GeoMx growth from Our derived legacy contrast, our and of X by at about GeoMx million, by revenue from

instrument XX.X compared forma was actual reported lower QX XX% inclusive over Prosigna. nCounter to revenue on on lower basis QX our as an consumables was a compared by and now 'XX. just XX% XX% And of consumables basis revenue 'XX. to is million, million, pro Recall, revenue X nCounter

Webpage numbers for one-time posted providing including exhibit remove to basis, margins or Relations and we Investor I’ll now of non-GAAP the adjusted Turning and the be impact adjusted prepared. descriptions EBITDA, expenses. our to our to stock-based items. depreciation refer our on measures, compensation, and a are of Please release press adjusted which certain how

basis forma XX%, margin last revenue Veracyte Adjusted year. consumable service than gross sales. and lower transaction, XXX points basis margin primarily the lower was product adjusted Pro nCounter on lower to was points approximately XXX gross for about due

expense an NGS investment by readout prior driven the quarter. million, research expected R&D spending Adjusted in in DSP the The X% increase XX.X are first over primarily to development was of was GeoMx of for increase year. heavier which and supplies, be the for

revenue. were SG&A prior XX.X XX.X higher as Adjusted loss of X% million, modest year. expense expense and primarily Sarbanes-Oxley was lower by Adjusted our audit due approximately increase was year, compliance reflecting activities. driven an QX prior over than nCounter to fees, million, SG&A was to which the The the related growth compared EBITDA anticipated flat

short-term million balance we completed On offering the million. is notes premium XX% and and with about share a price notes carry XXX reflects the raised the investments, and convertible position a ended X, We sheet about which company’s in equivalents of an underlying of history. cash, conversion strongest cash coupon, effective the X.X% $XX. March quarter The XXX of

facility, raised the launch to The growth term proceeds used proceeds will repay senior GeoMx XX.X% of in an the loan interest XX transaction fees used rate be to carried were expenses. the other of which million Approximately and of of and initiatives. support balance our

Transitioning now to guidance.

suspension reminder, X April a we our on As guidance. financial XXXX announced the of

how some guidance QX. we we’re like While providing color I’d not be to will about thinking today, on share

receive revenue to QX GeoMx site nCounter for and funnels instrument negatively and be Instrument in compared flat about impacted event indicate unable orders instrument customers that closures. First, as should to QX. be that QX shipments are the recognition our in could to due healthy are

install work. to new GeoMx GeoMx time, flat to of negatively QX. teams service we shipments new event train compared our revenue we expect eager recognized instruments to to also are out might and systems this approximately revenue customers impacted back customers’ to to be their that and allow slow remain in get the to sites put as At

Like Turning impact to in QX we greater other than in COVID consumables. QX. expect companies be our in space, the will

early, have of not return seen While to customer usual levels a activity. it’s still relatively yet we

the as trend During April, for of same QX. nCounter consumable this to hold ago. the year to orders XX% as were down And we period approximately that of compared planning date, a through balance are

compared our nCounter to reduce lower margins, gross will Regarding consumables revenue QX. gross margins as

of we’ve For expenses flow cash operating and steps range scenarios prepared already and a taken of manage expense have expenses, to our uncertainty. during this period

QX. do so development QX expect research as to recovers. total we With compared investments time well this parts business, We to that to our be including critical said, GeoMx, and the as activities our most we of activity at expenses commercial product on will positioned intend decline can maintain related

drive resources GeoMx in and use growth than have stronger history. confident XXXX business course to NanoString’s is the point we more while sheet than launch. balance profitability through to we of planned, sustain the the our are reach we Our any in may And originally cash eventually

our the turn for I’ll back to over comments. closing call Now Brad

Brad Gray

focused compelling translational market Thanks, Tom. has conclusion, the strong quarter. research grows position NanoString that a on us. momentum opportunities leadership remains The before GeoMx In each with capturing in DSP

The entry start, of and interest. to customer the discovery market into the is a research intact with GeoMx launch substantial off timelines great

the as their capture weather for healthy to researchers explosion to is and storm laboratories. the sheet COVID-XX us Our balance spatial current allows profiling that expected to demand in return

for I’d questions. line With open the that, to like up your

Operator

Instructions]. [Operator

first from line the of with Your comes Woodring JPMorgan. Casey question

Casey Woodring

terms if regarding Let’s My academic of the forward shut Tycho. first you biopharma saw down? question color trends give what labs there in moving Casey start some revenue, could on in and there. you for quarter being us versus is It’s

Brad Gray

Sure.

Thanks, Okay. Casey.

were academic approximately research So both demand. down, activity to respect impacted last both quarter. academic biopharma as from academic just strong demand and first largely during nCounter impact biopharma slowed and With biopharma the and we saw saw weeks of customers With of to which was people’s customers. instruments, we consumables weaker disruptive couple equal respect relatively

have we’re over are research research ongoing month really we than indicate industrial the Multiple surveys research market more especially that for expect QX. been academic that that’s of what being efforts April, the academic seeing customers. and impacted During a across customers slowdown, And laboratories. April

Casey Woodring

talk reduce mentioned And OpEx you you – then to taking? terms And can taking costs. what Can that maybe just the about maybe of Okay. you’re that line? steps into go will specifically, in you’re you R&D affect steps

Tom Bailey

I I address Yes, that. think can

Obviously, pace our time workers. seen other full are in significant that that, you’ve steps what reductions companies. for slowed we’ve the are taking travel addition temporary both of from And We’re similar expenses. and in hiring there to to

yet. haven’t in of QX. open, the those to process but entirely our have quarters growth critical We’ve and expenses hiring we We positions slowed will reduce pace frozen And effect plans. all in hiring of as to the our be of got certain our cumulative expansion coming compared

of natural of for Some a and is years. in same both also expense tends that that prior had expense – in just than reduction, higher a QX number SG&A phasing reasons subsequent be we’ve and to R&D pattern a a quarter quarters effect. Casey,

So and quarters QX, lighter we’ve including the effect the in compared that of to cause those be should R&D. coming steps expenses to in taken as of some

Casey Woodring

Okay. Thank you.

Operator

line Baird. next with of Catherine question from comes Your Ramsey the

Catherine Ramsey

be impact on just versus guess comment and a have nice seen instrument having would quarter what you any of orders? kind seems first as COVID But pretty Tom’s quantify ex-COVID, interpret first this I pretty to holding well. way flat here to should orders to on acceleration is in that we

Brad Gray

laboratory ever go or at those COVID moving been. uncertainty think actually creating researchers from this the I equipment, urgency the close the who transactions effective aren’t purchasing and at our published acquire officers What’s ahead do less DSP nCounter pace working both are instruments being on can on that have they’ve Catherine, Obviously, to for COVID is Brad. who are by – impacted we new in home funnels is strongest Yes. are less and orders. which forward.

So on and that which strength customer a those of pace sequential DSP orders QX COVID-XX in I seen the overall we think research to the disruption simply all given we’re we growth in our relative seeing expected disruption, given but absence nCounter would have the in close taking QX, of at funnels, in both cautious the we’re what we’re community. seeing approach of orders in the

Catherine Ramsey

Okay, do as environment closer research year? we get about extensions feel that grants non-COVID-related you sense. the customers to in makes the on your getting the half current about new funding their having delays funding Are for how getting And back of released? concerned or

Brad Gray

funding from heard We date. customers concerns about this at have our not

Some of contributing immunology, suggest seen the of the important COVID-XX whether toward XX% from are I’ve the that remain et those between survey in, to areas they contribute about on temporarily that results – cetera. or of researchers that shifting XX% research maybe be towards vast research. cancer researchers academic majority But focused people and broad

made in of in most work-from-home of begin on back academic the importance into they’ll back While get overall funding yet funding lab drug at development. May renewed the of that think funding like the long productive tailwind for by again. the that the of it and In research term, and May, NIH interest will to lab in I start, optimistic things in seem and this of were bioscience they orders another many researchers become point to early back research the as end have don’t are them to

now and year the be for I So provide that big and who activity those years when will expect I out us believe good support now, that of think for two tools that it. look a from the hero science I research is overall we or

Catherine Ramsey

from one last And me. Okay.

color remain when & discussions Any to we details potential you on mentioned some You Seq for Hyb could expect those? hear more in partnerships. on

Brad Gray

on not really in timing detail No, in much offer position to I’m a way the of there.

possible the to that type are I literature, partners long peer-reviewed in sensitivity the a identification. might and of can’t make to think for specific platform. that, a disease which in on the a contributed that timeframe partnership & provide committed focused last Seq Hyb And continue who antibiotic list that be research high-profile infectious described pathogen companies to likely including there’s of be But I papers over two year has or announced. you

Catherine Ramsey

All Thank right, great. you.

Operator

from comes Dan the next UBS. with line Your question of Brennan

Dan Brennan

be taking you QX? say GeoMx the year? be for for Thanks you and shortfall gave Did guys. instruments I orders on any in think negatively guess, first in do half impacted. there’s was said questions. color you for Was occur back that placements can up question would Hi, the in instrument to that? I QX the make an the service. nCounter. in expectation of in Maybe ability the guess what whatever know And question would you be, there I the those the

Brad Gray

to Yes, – respect I’d with you I think refer to orders. prepared Tom’s remarks back

need be think disrupted due expected GeoMx there’s about as train. said down a install shipments event receive the the be and orders downside – risk less to ability we or are customers due of things to instrument we flat. side sort I that their to to in on could slow revenue Revenue are to to

fourth but second to think not toughest quarter work-from-home be respect labs most, year, in providing partially With formal of X are believe what if that’s where a quarter. or the us is closed. to the we’re the that’s year the improve of scenario half the looks many third that quarter of That’s that as the going many, kind and not outlook quarter completely of to the likely like. back I start something in academic May on the we So guidance,

time. early But do demand too over be those at to just it’s the I full periods. expectation expect about be quantitative So see to can what this year improve

Dan Brennan

the throughout force? for placements on delighting the think focused sales year? say of have been tenants having do any have I and make Let’s there. appropriate QX these the in guess up know half capacity? shortfalls you’ve capacity? expect been the you to you be customers the Because I your QX ideally you you to you in short But customers have back Would in Right. Would able

Brad Gray

Yes.

you install and we to to prepare phase, you’re how and on referring if our and about to If been capacity thinking very carefully will, our training. catch-up installation a train, have expand ability for

definitely just whether speak will what really lab, too at these lab difference to but our we or make going labs visitors it’s just be the We to training back to may on what restrictions would receive some a of to constraint. social can the we impose to once et stage, training constraint. would the more and customers’ too this know installing early at cetera. capacity early be to up we don’t when kind not It’s exactly We our full a of to But and instruments own because be those people receive in clip labs things. are faster reopen, say expect the capacity primary are of expect distancing important to be sort

Dan Brennan

And TAP, of like Like things then you projects. you in color like and launching, it. any quarter. gave Got obviously there are about TAP terms guys lot including you the said, the So a more give that can completed to is XX you you funnel, referred funnel? another measurement of Brad, this the quantitative record

about the funnel? Any I sequentially. on color think other it’s flat

Brad Gray

instrument the TAP, can that year. over plan funnel the not how the for on we sorry, the the develop say TAP built GeoMx We TAP think we for – plan I the how funnel, Yes, to we wanted built wanted to pardon me. the funnel see see we the

We are plan. that of ahead

AGBT indicator also orders the that leading we’ve total funnel a and have. entry begin is NGS getting, TAP we’re fraction instruments say year at only through which which that February on than promoting of NGS of – actually larger in for instruments the expected I’m NGS as to We program The begun our we readout. begun very something in we the late had we to third about our that funnel I’d twice comes is pleased have TAP the only readout, we’ve focus last by those expected what are way discovery to the tied a got around more that meeting. rate

strong a disruptions – our I’d So those COVID-XX tracking been then our all are is that where year GeoMx to along to the also extremely focus healthy. the remarkably say we indicators was expected would original be on And our funnel But right funnel. we for think But on have nCounter I guidance. customers, we the for too.

Dan Brennan

testing, some three, important nine capabilities a across up might Is back that maybe COVID then GeoMx from nCounter. XXXX, of are notable use one with months opportunity have kind there we at and just been be both opportunities And on directly to could COVID to if just here some now brought you’re why or six, any they nice achieve. results, customers notable it. look products? benefit there’s of like research as the we could – and that back revenue NanoString’s obviously I’m been had we’ve growth. just your on they the other Because these more to in providing you the possibly half involved companies Got create are since add might and get want to driver material other wondering tools, COVID some a they’ve able to

Brad Gray

that contribution. research year. think driver primary be don’t of growth a great for want We I make a us this will COVID-XX to

It our and sets health some a a develop COVID-specific But very on contribution side, the GeoMx really at demand working, think of to and great assays. the the with COVID-XX partners, it a on need contribution may will And public cancer, the secondary I to Bio-Techne like reagent consumables to growth will it capabilities for focus Abcam drive both very GeoMx it primary neurology. along especially I margin, important a we understanding be that and partners’ traditionally we areas But immunology incremental the will main some nCounter for that instrument and the the comes demonstration with can are That that and that with become and GeoMx ACD make GeoMx respect do that urgency area being for the system. driver and ground FFPE and capabilities showcase said, think our not rapid disease. for both nCounter tissue and us. that rapid is on results of the placements.

Dan Brennan

one. maybe one final it. Got And more

You XX. said down

I You sense the next a better the taking continues quarter taken case, the guess improvement that assume that weeks goes? think front. May, now? stance in X, conservative assume whatever, for are So Like six or May than it’s it base you’re right just guess we’ll we presumably see hopefully weeks. that a and six But I any the just why where prior on

Brad Gray

up remain June. reagent closed than that think our with impact purchase is COVID-XX perhaps customer because more fully labs were of course leading appearing And to about of from very watching, own the I first patterns pretty instruments, week modest can’t of into to our people XX% calls to up pick and surveys changed XX% say, hope, change. into back of they in we this been back their steady starting closed, the if partially our own stats. and to will of we’re of Yes, that stage. helpline, this – for actual optimism at coming get which labs a decline, get being very is remain yet reagents. see all some the recovery But they’re on not it said, be of I a us are own indicators, we that We May, realized a color our of series the numbers work. has be in XX% to where mentioned, Coding we another see April I first open base that’s industry some leading off. completely labs volume be that of of only left labs And and indicators that academic to at being in do According quickly. and indicate surveys not tracking, some the April not not seem we’ve in we June how across been steep for that some back Things customers that. customer would that there people lab are bit that to and don’t When stage. can say lab week when as that throughout little in laboratories very don’t look research could indicators from, the using volumes were of at instruments, kind we starting are stage we have And people there’s we coming May. saw look right. that’s surveys share April. about of including glimmer NanoString, in of among a the surveyed, just hope, XX% this we’ve of suggests better and want of glimmer better our When optimism could in meaning suggest the and using if know know be that of a May to actually their to

that. expect which and trends that encourage the throughout consumable we So I’d than downside, not planning drop the you continue would revenue, to on are but in there’s to a second April, upside ahead quarter. get to in of for I more too myself we’d is that XX% say far estimate

Dan Brennan

Thanks, Brad. appreciate I it. Got it.

Brad Gray

Sure.

Operator

with Arias Dan of line the from comes Stifel. question next Your

Dan Arias

which of in Transcriptome you’ve lab other the to just the of sort the pull-through that Thanks. back down rate prior, coming Brad, the model to this go of you in of which on how on that it point XXX $XXX maybe that to particularly way and track in about an about on you challenge the premium? resuming that exit think Whole year. as maybe close like it’s equation, something like about kind as experiment of we of But will Can at was number GeoMx you I don’t that up I meaningful into closures. context the seems do baked some talk two if side a initially? – another on year, on the round the samples or a on product at one the feel at And feel on wanted price were okay the per of And penciled year half then road, of to average, the there. year that’s it the can with looks being per mentioned in be set going that’s inputs kind dig the XXXX up assumption of you the this be roll back

Brad Gray

the for Yes. Dan. questions, Thanks

on over then so the and pull-through sort to let far, about I’ll talk how roadmap. in the that, So our new of about we’re the based about feeling time how evolve and me actuals, assays experience talk it’s going

our was customers, So run samples about to XXX $XXX readout in nCounter a that into going expect guidance about the launch would we year at the sample.

format So our using of protein on are to that estimated far, we’re sample customers that content is that had a modular side our happy we’ve they probably buy extra about. where a out $XXX, beyond developed realized It which we assay up the would. north price little per turns little

a a So good That’s term. thing. long thing good that’s

per early what just of said, rate – system we’re hits. growth to only just base too our you have the to also just system our it’s in the be. of their trained it’s understand to but likely help, by As run use of per it’s but many are doesn’t beginning when year not samples that it’s COVID-XX also just COVID-XX, installed disrupted COVID-XX very become and true sites

early validate change that really that us But change for way nothing year. number it’s any XXX too me So per point. this would samples to or have at really there’s that in

change. higher as You’re readout modality with the NGS per move the very as that could go assays, pull-through and sample into we up. flex the number market, much research easily that will Certainly, cost discovery right

sample, nCounter expected be the more Cancer was Transcriptome per meeting, So our readout. average the described at is price at Xx $X,XXX Atlas so to be to the which we AGBT what priced assay, than for going

early described people of for pull-through I little a to previously per too pull-through speculate of be assay So run could our system samples, the to if samples similar It’s us. high samples large very think a volume that but a run, number for there’s numbers of upside on we or that us estimates.

expected As Dan, to to priced That we assay Whole drive out and Transcriptome you true launch the when XXXX. at pointed that will even Cancer be similarly Atlas assay the would your premium to a in more Transcriptome be in question, become pull-through upward.

say So some worried those per guidance more reasons are that provided is there to could nothing a per that believe we’ve far in so about in at conclusion, NGS-enabled into installed move to XXXX, $XX,XXX makes as there that base year. There to we’ve seen system the estimates. I $XX,XXX us be we would upside that

Dan Arias

to commentary. point Okay, that Transcriptome helpful work. is really on your And some the

TAP the taking on we projects AGBT. some a there product had that obviously customers themselves? the publications see launches? work On cancer chance for assay of the And on, you’re that or there some the either You Transcriptome new Whole launches good at are around you the is ahead doing Transcriptome data

be are Just what wondering look point like about these Thanks. flow, to customers? get publication as do the like the going where that you to going could to

Brad Gray

Yes.

So cancer on XXX-plus accounted XX QX, of our is includes probably one-third gene Atlas, for to which holders genes, XX orders. system so those the immune the that about and Cancer that Transcriptome in XX assay of TAP

So we’ll we begin papers and they’ll to peer-reviewed next results give maybe or delivering and year certainly those year. rise beginning shortly, that late hope now as this

assay. sorry, – assay. work we our some their work in some in have the we peer-reviewed leveraging Atlas expect to presented customers also Whole late the XXXX. program. We that COVID-XX our literature. presented do expect out say, We’re Transcriptome last – them Transcriptome not Atlas had But Whole come begin of last February. is offering of work AGBT, run the would that of we to I TAP under And we Several our will as currently at Whole year assay Atlas Transcriptome

to are that fight. it imagine, As collaborators that every to in technology it’s we we’re bear solution looking we commercial in or whether you have, full prototype can looking help for our bring form – to form and

that so And well. a come some that possibility data could of as there’s forth

Dan Arias

Okay. I it. Thank appreciate you, guys.

Brad Gray

Dan. Thank you,

Operator

[Operator Instructions].

Cowen. with the line from comes question next Our of Doug Schenkel

Chris Lin

today. on for taking Doug Hi. my Thanks This Chris for is questions.

the expect there lack could of conversations anything utilization, one a should with utilization labs think customers? up consumable be of we should to in reopening lost? based with impact COVID-XX Is largely share current and start once bolus utilization there on is we starting of environment the a on your on Just or that you catch

Brad Gray

back. Yes, Systems when consumable they come of to only work not or people – seven expect occur on week utilization. I days a a do bolus catch-up five can

they move time of sure to forward I’m begin eager again. to order will But consumables a a design So execute and then just certain quickly. project amount project, it to be a takes

to So with that most should to of pull-through. that respect I for consumable time we be expect lost plan

Chris Lin

Okay.

Brad Gray

are instrument If different. we’re different, that saying instruments may quite purchases be

planning plan in can to by still year, up instrument make for and lost year. to the it later have in back there You that time later have coming I well, the I’m saying,

Let’s purchase. move forward the with

of consumable there instrument are a on think, will orders, So lost. necessarily catch-up orders. think instruments, do on more there be period I I then don’t be could but

Chris Lin

else the could opportunity that you’re mentioned Okay, how in TAP commercial an customers currently question, Maybe book for you. You’ve that’s GeoMx how to there you’re anything you from more adapting to share the hasn’t Thank in been your build helpful. know new share earlier you program. But off detour given can on strategies? same person. leads building you I generating order the customers?

Brad Gray

series novel very hungry and more they that the seminars had, their We at started than AGBT are researchers directly Yes, engaging educating seminar busy Many as a home call new themselves in of working continue replays the tools program say, developed aggressive from about like feel both through that to I’d nanoFLIX, spending be otherwise. of productive. engage purpose using kinds through and we begin seminars home, are of the activities is a thing in Zoom and who we’ve which we’ve leave and is happy of educational laboratory some would are to. researchers and we online that content for laboratory-based from normally found lives. to that One them working they to technologies, time

expected Web go far, with three Illumina on excited seminar I’m prepared my and about jointly most we’re geared May. we’ve we’re about talking a upcoming related then April On June, I’ve Carl of so soon. on and May he’s cell On therapy to unpublished of webinar explosion And XX will and study the cell Yale, talk to presenting coming solid we’re down and a and that GeoMx you to you doing host researcher through XX, who’s up had to spatial just them will a in be in genomic type named find the few toward we’ll remarks, jotted hosting right online And his are XX, David hosting pretty therapy There’s from at an demand. sort an actually papers almost taste. from GeoMx by May in now events that sequencing of these X,XXX done leader, pairing those a the peer-reviewed of tumors. GeoMx. many of York on to And we our If work in study that May On interacting. have now June platforms their said University have have Rimm O'Toole X, of and who XX, more some similar just things COVID-XX. got we ways in people a pathogen, I seminars, least UK on interaction the under about site GeoMx event CAR-T GeoMx. Peter concept as the participate use of use the day and of

energy great they’re outside the really with had And of a exciting that while of this trapped time. that we’ve and find engagement use time them this and laboratory, their find researchers dialogues – during and so it’s we

So it’s interesting. really

of I a here think wonderful digital the team commercial the use to at NanoString has done channels. adapting job

things some we long started we crisis continue that in programs And of be will term. probably the under here the

Chris Lin

for questions. hope And well. Great. stays my everyone taking Thanks

Brad Gray

you. Thank

Operator

this And Doug time. no the at like for questions to comments. there turn over remarks are closing I’d further back Farrell now to any call or

Doug Farrell

of Excellent. thanks of replay the Thank hours. the up couple everybody joining for will us be you. a today. call And next in There

conference XXXXXXX. that miss did is callers, XXX-XXX-XXXX. International today, same please call by dial of you If The ID dialing any the can conversation access you for the XXX-XXX-XXXX. portion

a So seeing with everybody operating day. great to off and we’ll into a forward back when routine. look get that, sign we Have normal

Operator

participation. conference for today's your concludes gentlemen, thank This you and call. Ladies

You may now disconnect.