Peter Cannito: Yes, it’s a very interesting market. In the past when I’ve talked about Redwire is having a blue chip foundation with venture optionality, the biotech segment of our business is certainly part of that venture optionality, which I think is very exciting and maybe not people who invest in the aerospace industry specifically, but certainly people who invest in the biotech industry can appreciate the value of that. It’s interesting. There’s a lot of opportunities there. We’ve obviously been working on this for a long time. So even though this is the inaugural launch of PIL-BOX, we have been working on crystallization, as I mentioned, all the way going back to space shuttle. There is some market information on there around crystallization done at Earth.
I don’t have the TAM figures at my fingertips right now. Perhaps that’s an item for follow-up in a future earnings call that we have where we can talk about that, but this is an existing market. The only thing that we’re bringing to the market is an innovation where we could potentially, if the experiments are successful, change that. But it’s pretty early days. I would say, the biggest step forward from a maturation perspective in my mind is the fact that we now have this partnership with Eli Lilly. So it’s not just NASA funded research for the sake of research. There are actual commercial organizations who are really interested in the potential here, very serious commercial organizations, mind you. So that’s encouraging. But again, we got to fly PIL-BOX, it’s got to work, we got to look at the results.
And I think as this progresses forward, we’ll learn more. The exciting thing about having a positioning where you have a blue chip foundation with venture optionality is the future where Redwire is not dependent on the success of that one singular mission. But if we do make great strides here along with — if we make great strides — obviously, we announced the 3D printing of our meniscus and we have a number of really exciting opportunities associated with the bio printing on orbit as well as with those and other biotech experiments that we’re conducting on orbit, if one of those takes off, as you can imagine, it would be exciting for us as a company. Jonathan, you want to add anything?
Jonathan Baliff: Just I want to remind you, Greg, that we do talk about in what we’ve disclosed is what we call our Redwire 101 that the explorer live and work in space for the benefit of humanity, which both of what Pete is talking about is for the benefit of us on Earth. It’s a $5 billion to $10 billion TAM over the next 5 years. That includes some level of biotech, but it scratches the surface. Publicly disclosed numbers that we know the bio research, right, that doesn’t include necessarily things associated with printing meniscuses, but just the pharma industry spends over $150 billion a year on research and development a year and this is the market that, just like they went to the Amazon 40 years ago, they’re going to go to space.
And so for us, we’re going to be talking more about that in the future, but as Pete said, let’s get our PIL-BOX successfully launched, but it’s already planned in getting up there, and so let’s talk about it later, Greg. But does give you some numbers here to allow you to see that we’re only scratching the surface.
Greg Konrad: I mean it’s the perfect name for the product, so good to ever name the product. And then maybe…
Peter Cannito: We will thank John, yes, [John Bellinger], you’re out there. He runs this part and has been doing it for decades and so he named it, in association with Eli Lilly also.
Greg Konrad: And then maybe just to dig into national security a little bit more, I mean in the prepared remarks you talked a little bit about SDA and tranches and that market is much more stable and you kind of have the drivers versus your commentary around some of the commercial near-term headwinds. I mean, what’s driving that growth? I mean, is there any way to think about SDA versus some of the other areas of national security that are lifting that business today?
Peter Cannito: So what’s driving the growth national security space spending in general is obviously what I talked about in the prepared remarks about the geopolitical dynamics associated with space now being a warfighting domain? SDA in the near-term has been a big part of that. Proliferated LEO is fairly new, and so there’s a fair amount of spending there. And as I mentioned, we’re participating in those procurements on multiple teams, multiple tranches and we’ll continue to do so. So that is obviously a big part of it, but there’s also the classified budgets, which obviously are less public, but there’s a lot of activity going on in there too through the intelligence community and other customers who operate against those budgets.
So that’s another, I think, critical aspect to the growth in national security. So again, without going into too much detail, there’s a lot of — with the idea that space is now considered a warfighting domain and the establishment of the Space Force, they really got their legs under them now as a service, and I think you’re starting to see spending grow in a number of different areas around their mission set.
