What we’re trying to do internally and the global strategy of the company. It’s really exciting. And it’s one of those things that’s particularly right down the middle for making biology easier to engineer. So from like a mission standpoint, like I like getting better at selling just doesn’t feel as good as like when we really tune up the foundry. That feels like delivering on the mission a very practical way. So I’m excited about ’23.
Tejas Savant: Got it. Thanks, Jason.
Jason Kelly: Yeah.
Anna Marie Wagner: All right. Steve Mah from Cowen. Your line is open, if you want to unmute.
Steve Mah: Okay. Great. Thanks for taking the questions. Two-parter here on the biopharma business. So on the industry mix of active programs, it looks like Promote is about 35%. So do you expect that percentage mix to continue going forward? And then second part, we’ve heard from peers that in their partnership discussions, there’s a lot of partners that don’t want to pay a lot of money upfront because of cash conservation concerns. However, your 65% growth in cell engineering services in 2023 suggests you aren’t seeing that. Could you maybe help us reconcile that and maybe give us a bit more color on the trends you’re seeing on the weighting of upfront versus downturn value.
Jason Kelly: Yeah. I’ll comment on that. So in terms of like where we would like to go. I think we will — we want to — I think it will drive more in the direction of biopharma. That’s why I wanted to highlight it today. And the main reason, like I said in the talk, is it is just substantially more untapped market for us than industrials. Like again, companies don’t know us. They haven’t seen our capabilities. We hope to have these first meetings and then show some data, and there’s a lot of excitement. If there was that similar excitement for one of the large industrial companies, they would said it two years ago, right? I’m more waiting for them to have more breakthroughs on the product side and want to do more biotech, not that they that like we’re just — they just didn’t know about us being better than doing it themselves.
So like I do think you’ll see that increase for us if we’re doing our job right. In terms of people paying upfront and so on. This is the kind of the point I made on that first question coming in from Twitter. I think for the smaller companies, what you’re hearing from peers is right. Like there’s just not as much appetite to pay upfront and all that. For the larger companies — I mean, budget companies have budgets, right? And so I don’t — we don’t see that as much with the large biopharma, I would say.
Steve Mah: Okay. Got it. So the 65% growth you’re guiding to, that’s driven more by just new program adds or versus mix?
Jason Kelly: Mark, do you want to comment a little bit about…
Mark Dmytruk: Yeah. No, it’s new programs. It’s new customers. Keep in mind that in some cases, we will take equity as a form of consideration for the upfront service fee on a program as well. And so that’s — in some cases, that’s how we’ve handled the situation that you’re kind of referencing with companies that are to point conserving cash. So that’s all in the 65% growth.
Jason Kelly: Yeah, that can help with so for the smaller companies, taking equity in lieu of cash can actually help quite a lot. Yes. So we do some of that for the smaller guys.
