Singular Genomics Systems, Inc. (NASDAQ:OMIC) Q4 2022 Earnings Call Transcript

Drew Spaventa: Yes. I mean those are qualified leads. And when we think about a qualified lead, we are thinking about a criteria that means it’s a real opportunity. There’s four things that we think about: Does the customer have a need? Do they have the budget? Are we speaking with the right person who has authority to make a purchase? And then what does the timing look like? So I mean you can throw funnel numbers around and — but unless they’re qualified and you understand the likeliness or how real those opportunities are we haven’t been willing to talk to them yet. So that well into the100s is meeting all four of those criteria, meaning we think it’s a real opportunity, and we have a chance to convert it this year.

Daniel Brennan: And then sorry, Dalen, or do you guys talked about maybe slower demand trends at private labs or private customers? I think you said, so we’ve heard this throughout 2022, Agilent talked about it a little bit earlier this week. But this is — just so I’m clear, like this is clinical labs that are kind of just dealing with maybe tighter capital constraints, so they are being more cautious? Or just maybe a little clarity there.

Drew Spaventa: This is more private companies. So I mean, we are not really selling into clinical labs yet. We are starting to have conversations with them. But like we talked about on the prior question, really having our sequencer and clinical workflow doing patient sample, that’s probably something that we will be ready for at the end of this year into next year. With the new technology, the early adopters are really more on the academic side or private companies that want to try a new technology. In general, private companies, similar to ourselves, people are belt tightening, they’re thinking about extension of runway or getting to profitability. And it’s just a little bit different of a buying environment than, say, it was 12 or 18 months ago. So that’s all.

Daniel Brennan: And on the PX, you said that you saw in the first tech assessment, just wondering like what like — does that mean a box is at a customer, or that customer is sending you samples? And then any more color just about timing for the PX. And just kind of remind us, I mean the PX domain differential is like — I mean that’s high a lot, but much, much better throughput than what’s on the market today. So maybe you can give us a little more color on the PX.

Drew Spaventa: Yes. So to answer the first part of the question, it’s a technology access program. And the agreement that was signed essentially outlines the scope of work, and we will physically receive samples and conduct experiments with those samples on the PX and provide them back to that academic partner. We plan to do a few of those this year. So that’s not an external placement of the system, that sample is coming in. I would say just the very high-level, the PX is taking a lot of the technology we already developed in the G4, the optical system and all of the chemistry and then supplying it to sequencing inside of cells and in tissue. So we are actually using sequencing in situ at the readout. And there’s two really powerful things about that.

One, you’re using sequencing as the readout, so you have the ability to multiplex or determine a lot of information due to the sequencing nature of the readout. And the second is the throughput. We are working in 96 and 384 well plate. So the sample plexing is just very high, 96 samples or 384 samples at a time.

Daniel Brennan: Got it. And then maybe final one would just be pricing. So like just remind us where are you today in the market like on a price per gig since I guess, I mean, I know it’s coming down your elements, obviously, stepping on the gas. I don’t know what is doing. Just kind of where is pricing is at? And is that a topic of discussion with customers or no?