Operator: Thank you. Our next question or comment comes from the line of Kyle Mikson from Canaccord Genuity. Mr. Mikson, your line is now open.
Kyle Mikson: Yes. Hey, guys. Thanks for taking the questions. Congrats on the quarter. Brian, can you kind of talk about like — maybe update us on your push into the genomics market. Because as we think, I mean, I remember like asking a year ago or so like when we talk about RNA for the first time, how has that gone so far? And if are you going to really like pull back and really lean more into, I guess, proteomics still? I mean, just how are you thinking about this whole multi-omics strategy as we look ahead in 2024?
Brian McKelligon: Yes, I think longer term, Kyle, it’s still of absolute importance to have a multi-omics solution. I think for us is, as we talked earlier, I think we really look at RNA as an absolute complementary analyte. And just as an example that we alluded to in the opening comments, the recent publication in GEN Biotechnology and a lot of the discoveries that we are able to be realized with 100-plex multi-omics — I mean, 100-plex of spatial proteomic study on the PCF and the immense value that was gotten out of that. It really does highlight how much discovery you can get out of spatial proteomics. And we are seeing, I think, a growing realization of that. So as we look at RNA, it’s absolutely a complementary approach, where it’s used to either look at translational — transcriptional translational concordance or not.
But probably more importantly, leveraging it to look at analytes where protein might not be the most ideal methodology. So still at a high-level, Kyle, looking at it as a highly complementary approach, still committed to it. But as noted earlier, we are going to give a little bit more color on the RNA strategy in the coming months.
Kyle Mikson: Okay. And maybe just clarify what I was asking. A pretty noisy in that market today. Does it make sense just to pull back a bit, I guess, and just focus on your bread and butter?
Brian McKelligon: It’s — the way I would characterize it is our number one priority is to continue to be great at our workflow, to deliver on this — the continued workflow improvement, workflow simplification, throughput, flexing, et cetera. And then layering in RNA as complementary versus having RNA be the number top one priority. It’s amongst the priorities getting towards a multi-omics solution.
Kyle Mikson: Okay. That’s super helpful. Don’t mean to go into too much detail there, but that was great. Maybe, I think you guys mentioned you’re making efforts to achieve meaningful margin improvements for reagents. So that would be the time that we’ve been looking forward to for a while now if you like the pull-through, et cetera. Can you just kind of dive deeper into that and tell us what exactly you meant by that statement? And what do we expect in the next couple of quarters or a year or so that can really meaningfully improve margin as well as just consumables pull-through and kind of what underlying margins for that business as well?
Brian McKelligon: Yes. So the two parts that obviously are compounding and more than additive. Part one is enabling that higher throughput with the 2.0 releases, with the continued rollout of additional PhenoCode Panels, with the maturation and addition of additional software partners. So that time to answer becomes faster and easier. That’s sort of part one. And I think we sort of talked through all of the components of that. In fact, I just did. The second part is in terms of improving reagent gross margins. Some of this includes, rather than relying on external third parties and a chain of custody of third-party suppliers amongst all the reagent components and antibody conjugations and fulfillment, is beginning to take more control of that ourselves.
And so that time from build to customer shelf is shorten, and so is the amount of investment that we have to make both internally and externally to do that. So the overall cost of goods for an individual antibody or panel drops down, while we simplify and streamline that supply chain, that chain of custody. And take on more of that manufacturing internally rather than relying on third parties, which is why we have an ISO 13485 facility and why we have that capabilities.
Kyle Mikson: Awesome. If I could just squeeze another one for [indiscernible]. Maybe you could just talk about, either qualitatively or quantitatively, what percentage or what portion of the PhenoCycler kind of install basis is using standard or legacy microscopes rather than the Fusion today. I’d just be curious to hear that, given the tradition of the past couple of years.
Brian McKelligon: It’s a good question. It’s a little bit over 40% that are still on third-party. So if you look at the 330 so PhenoCyclers that are out there, about 190 of them — I’m rounding up a little bit. About 190 of them have a Fusion attached to it. So that’s about their proportion. And we see, as we go through next year, almost every cycle of it sold is going with the Fusion. So that’s sort of part one. And then part two, we’ll continue to upgrade those existing PhenoCycler third-party scopes throughout next year. So hopefully that gives you your answer.
Kyle Mikson: Yes, that was perfect. Thanks for the time, guys.
Operator: Thank you. Our next question or comment comes from the line of Timothy Chiang from Capital One. Mr. Chiang, your line is open.
Timothy Chiang: Thanks. Hey, Brian, just being at SITC last week, obviously you guys had a pretty big presence there. You had a pretty well attended perception as well. How do you sort of leverage a big rollout of the Fusion 2.0 post the SITC Conference? I mean, did you guys get a lot of positive responses.? Could you talk a little bit about that?
Brian McKelligon: Yes. I mean, there is huge positive response, not only at the booth, but also at some of the events that you might have been too, response to the poster publications. I think, simply the number one thing, Tim, that you get out of it is a high number of qualified leads amongst an audience that really is the most targeted customer base for our current platforms in the field of oncology/immuno-oncology. So the number one thing that you get out of it is high-quality leads. Obviously, the second benefit you get out of that given, not only the massive increase in the size of that conference, but just our large presence, we get a lot more visibility. And with the rollout of both the 2.0 on the PhenoCycler-Fusion and the HT 2.0, that visibility is across multiple market segments.
