Pacific Biosciences of California, Inc. (NASDAQ:PACB) Q1 2023 Earnings Call Transcript

But they’re really a very small portion of all the runs that have hard failures at this point. So we launched the system in a very, very robust way. And with respect to max pull-through and early insights, the truth is there’s not enough run data out there to even glean those insights. The only data, so to speak, is the enthusiasm of the customer base and their — that they have been buying their consumables probably faster than I expected, which is good. And they are running their systems getting into, most of the time, for the higher-throughput labs, what they’ll do is they’ll run the systems in kind of development mode until they’ve really locked the workflow down and then they’ll really scale up. And so we’re seeing that happen with our higher-throughput customers, which is encouraging.

And people starting to set target dates on, hey, I’m going to start my full scale-up on this date or that date. So those are all pretty good. But we’re not going to really have any fundamental insights. The one thing I would say, as you kind of mentioned, the two-year time horizon to potentially get to kind of the optimal throughput or pull-through for a particular customer. First, I think that number is going to be highly variable amongst the customer base. But more importantly, I think that ramp will be much faster than two years. I think it’s — I think we should be thinking kind of in the — I don’t know, somewhere between 12 months and 18 months to where you’d start to see — you start to see that. So hopefully that gives you a little bit of color there.

And then lastly, on improving the process upfront for automation. We do — the system today is fully automated. We do have protocols. The Nanobind was the latest in improving irving workflow for high throughput, but we — the biggest bottlenecks are in shearing and in size selection. And we continue to innovate and work on new ways in which we can do that. The overall sequencing workflow isn’t much longer than short-read technologies and so it’s not really a major — the time is not really a major consideration. It’s really just making sure that it’s automated so that you have — you’re able to walk away, get high-quality libraries, put them on the sequencer. And with the way we designed Revio is you can load your next run at any time while the sequencer is running.

And so to really maximize the capability of the sequencer, you can load the sequencer every day and basically run the sequencer 24 hours a day, seven days a week. So that’s what we’re focused on continuing that. And then as I said, I guess I’ll go one step further. On the back end, we continue to launch lots of new tools to help drive sample throughput through the sequencer.

Operator: Thank you. And the next question will come from Sung Ji Nam from Scotiabank. Please go ahead.

Sung Ji Nam: Hi. Thanks for taking the question and congratulations on the quarter as well. I was curious, Christian, in terms of — it’s really nice to see the Revio installed base already up and running very well. Just curious if there are differences in terms of how quickly the customers are ramping up between the existing Sequel customers, HiFi users versus new to PacBio customers. And then including the customers achieving performance characteristics above your expectations, if there are any differences between new users versus existing users. And then also just on Onso, if you’re seeing kind of orders related to bundling with the Revio at this point. Thank you.