Drew Spaventa: Pricing is always part of the equation, but I think the important thing is to sell on the actual performance and the attributes of the system. And the differentiation that G4 has is going to be throughput on a benchtop instrument, it’s going to be speed and it’s going to be flexibility given the four flow cells and each flow cell has different configurations, you can scale up or scale down. And then each flow cell is four lanes, which is really nice for customers that don’t want to mix the bar code samples. So those differentiating factors are really the basis of what’s getting customers interested. On the pricing side, if you look at a NextSeq, which is still the predominant choice out there for a bench top sequencer and really what we are selling or selling against 99% of the time, it’s a $335,000 box and it ranges from about $15 a gig up to maybe $40 to $50 depending on new specifics.
And we are pricing quite favorably compared to that. The box is about the same at 350 list. But again, it’s almost equivalent to three NexSeqs in a single box given the power output in the four flow cells. And then on a cost per gig standpoint, we are ranging from about $8 on the low end if you’re doing through cycles into the low 20s. So you’re really going to see massive cost savings versus the NextSeq, and you’re going to see faster run times, more flexibility. And then with Max Reads, that’s where it really becomes competitive for single cell applications. And the average customer, I think, right now for a single cell application is probably spending $600 to $800 on sequencing costs to read out a single 10x experiment. And with Max Reads, we are going to get down to $200 or so.
So that’s going to be a huge driver for us. So again, I think when we think about selling — it’s selling on the actual competitive advantage of the system. And then when people turn to price, they’re usually very, very pleasantly surprised based on where prices versus the NextSeq.
Daniel Brennan: Great. Okay. Thanks, guys.
Operator: Thank you. Our next question is from Michael Ryskin with Bank of America. Please post your question.
Unidentified Analyst: Good afternoon. This is Peter on for Mike. Thanks for taking the question. Definitely understand again here, it’s early days, but — I mean, assuming supply chain doesn’t flare back up, do you have like a rough idea of maybe the production scaling process, when that would be reaching more of an equilibrium with demand?
Drew Spaventa: It’s hard to say. I think, again, if we look at the year in totality and we put those error bars kind of on average systems per month, we’re definitely expecting to be able to achieve that this year. I think it’s just important that we make sure we get the system into customers’ hands and meeting expectations. And I don’t think we are looking to rush systems out for near-term numbers, if we’re not 100% sure that it’s going to meet expectations. One of those areas is the F3 flow cell. We want to get the F3 flow cell broadly available, and a lot of customers are interested in having that. And that’s something that’s coming available beyond early access very shortly. So I don’t think we have much more color to provide other than we are learning, applying those improvements and we are kind of right where we want to be looking at the funnel and looking at our ability to kind of scale up through the first half of this year and really hit strides in the second half.