Brian McKelligon: So the — in terms of the pull-through, I think, are you saying how do we get to 40% reagent growth?
Kyle Mikson: Yeah.
Brian McKelligon: Is that…
Kyle Mikson: Is a predict based on — yeah, is a predict based on the 30,000 or does it have to expand to some other higher level?
Brian McKelligon: It would have to expand, but not a tremendous amount. So instead of the sort of the mid-30 range, mid $30,000 range per instrument, you’re talking about kind of low $40,000 range per instrument. That combined with the increase in the number of instruments out there, that will get you — that will get the reagent numbers that we’re talking about. So it’s not like it has to go from mid-30,000s to 50,000 in 2023 to generate that kind of number as long as the instrument number hangs in there.
Kyle Mikson: Okay. And then, Brian, just on my first part of the question, but that was about kind of like what’s preventing customers from really cranking up the usage of the boxes. I know you have these new products coming out that should increase pull-through going forward. But I mean, to-date, though, like what’s been some of the…
Brian McKelligon: If you just — if you look back historically on sort of an annual basis, Kyle. And Joe can keep me honest on the numbers here and granted these are somewhat contaminated by COVID. I think if you go back around 2019, 2020, the pull-through for the PhenoCycler on third-party scopes went from like 20 or so up to 30. And now we’re starting to see that amongst the PhenoCycler users customers go beyond 30. So we’re already seeing that trend. It’s just a matter, Kyle, as you look across the 254 PhenoCycler that are out there. A minority have the Fusion attached to it. So that’s already starting to impact the overall pull-through number into the mid-30,000s for the PhenoCycler. So we’re starting to see that impact begin to happen already for the FUSION, coupled to what we’ve seen historically that pull-through climb in a more gradual manner up to the 30,000 or so where it was that we articulated on our last Q call. And just one other
Kyle Mikson: Thank.
Brian McKelligon: One other quick
Kyle Mikson: Yeah.
Brian McKelligon: point, the COVID lockdowns in China did hit our reagent revenue in 2022 and that’s part of the pull-through calculation is total reagent revenue. So if that didn’t happen, our reagent revenue would have obviously been $1 million plus higher in 2022.
Kyle Mikson: Okay. No Thanks, guys. I will ask just one follow-up here. Bigger picture, a very kind of top question, obviously. You did a great — you had a great quarter with placements, I think, at least 70 or so and I think nothing — doesn’t look like anything slow down in terms of customers getting kind of distracted by the Imager is kind of like launch at the end of the fourth quarter. But what are you seeing kind of recently, I guess, these products are fresh in the market. I’m aware of a few folks that are obviously buying these Imagers. Is that impacting your ability to kind of get in front of customers and potentially close deals?
Brian McKelligon: Yeah. It’s a good question. So with the launch of the competing Imager products, the Cosmic, the Zenium , it really hasn’t impacted our pipeline and our instrument performance at all. The COSMIC is not a new event, because they’ve been reselling that throughout the year and Zenium is fairly new. I still think, Kyle, that’s largely within the genomics discovery segment and given where we compete in discovery, but all the way through to the translational and clinical side, we’re still really not feeling any competitive impacts from them. Now as we launch our RNA and we start participating more and more in that genomic segment, I think, we might have more color on that, because I think we’ll be more directly competing.
