Telesis Bio, Inc. (NASDAQ:TBIO) Q4 2022 Earnings Call Transcript

Harrison Schrage: Got it. Okay. That’s helpful. And then again on the guide, I think we understand the systems outlook here pretty well, but it seems like your kits are certainly starting to gain some traction. And so if you could just kind of quantify what you’re expecting in terms of kit revenue or kit growth in ’23. And then maybe directionally, how we should be thinking about kits into ’24 and beyond, and then same with the services business as well?

Todd Nelson: Yes. So let me handle the products first in the order that you’ve asked on the BioXp kit side. And just by way of review, we’ve got, right now, everything that we’ve done at the company has been built around de novo gene synthesis and 8 or so kits that do that. We’re now adding beginning in the first quarter of this year to that, the Select kits, which will allow customers to use their own DNA as a starting point, including NGS, and we expect to launch about 11 kits during the course of this year, that being 2023. I believe revenue for kits grew at approximately 64% to 67% for a year-on-year period. We’d expect that category to continue to grow, being the de novo gene synthesis category at about that same rate or higher and would layer on top of that the additional revenue from the Select kits.

So overall revenue guide of $45 million, I think you can back into a product number that’s kind of in the — you can get there by backing out the Pfizer milestones and the royalties. And then on services, that business, the plan for the Eton business is to grow that business in the Sanger sequencing business this year. And then with excess capacity that we have for oligo production off of our proprietary systems to give those systems then and any excess capacity to Eton to enter into the oligo market, and that will happen in 2024.

Harrison Schrage: Got it. Okay. And then last one for me, just on the instruments and new systems outlook. I think you guys have previously talked about the BioXp oligo printer as well as the DBC platforms and possibly delaying them in light of the cost-cutting measures. Could you just kind of refresh the timing and outlook of new systems to be released?

Todd Nelson: Sure. Happy to. So as far as systems go in 2023, we’re looking at a third quarter launch of a proprietary 9600-based, purpose-built system for NGS library prep. In the fourth quarter, we pivoted our larger DBC program to CRISPR guide RNAs to get something onto the market but with a limited scope, and that would be in the fourth quarter. That product will have on board SOLA chemistry. So that will enable same-day turnaround of CRISPR guides. So two systems this year, 1 in the third quarter for NGS, 1 for CRISPR guide based upon DBC technology and SOLA reagents in the fourth quarter.

Harrison Schrage: Got it. And then, Todd, I’m so sorry, if I could just sneak one more in. On those new systems, I mean, would we expect that 9600 system in the third quarter to generally have a similar ASP to the regular 9600 that you launched during this last year as well as consumable pull-through? I mean, how should we think of ASPs and on these?

Todd Nelson: You’re talking about the system that we just called on the launch for NGS? I think we’re working through price discovery there and the business model around that. So we’ve got placeholders in there that I think are generally — I don’t want to misspeak actually, Harrison. I may have to get back to you on that, but I think they’re generally in line with the current price of the 9600 to maintain market continuity.

Operator: And our next question comes from Steven Mah from Cowen.