IsoPlexis Corporation

Good day and thank you for standing by. Welcome to the ISO Plexus third quarter 2021 earnings conference call. At this time, all participants are in listen only mode. After the presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star then one on your telephone keypad. Please be advised today's conference may be recorded. If you require any operator assistance during the call, please press star then zero. I'd now like to hand the conference over to your host today, Keri Mendeville, Investor Relations.

Thank you. Earlier today, Isoplexis released financial results for the quarter ended September 30, 2021. If you have not received this news release, or if you'd like to be added to the company's distribution list, please send an email to investors at isoplexis.com. Joining me today from Isoplexis are Sean McKay, Chief Executive Officer, and John Straley, Chief Financial Officer. Before we begin, I'd like to remind you that management will make statements during this call that are forward-looking statements within the meaning of federal securities laws. These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated. Additional information regarding these risks and uncertainties appears in the section entitled Forward-Looking Statements in the Press Release Isoplexis Issue today. For a more complete list and description, please see the Risk Factors section of the Perspectives filed on October 12, 2021, and in the other filings with the Securities and Exchange Commission. The company intends to file its quarterly report on Form 10-Q for the quarter ended September 30, 2021, later this week. Except as required by law, ISO Plexus disclaims any intention or obligation to update or revise any financial projections or forward-looking statements, whether because of new information, future events, or otherwise. This conference call contains time-sensitive information and is accurate only as of the live broadcast, November 10th, 2021. With that, I'd like to turn the call over to Sean.

Thanks, Carrie. Good morning, and thank you for joining our third quarter 2021 earnings call, our first as a public company. We completed our initial public offering in mid-October, raising approximately $111 million in net proceeds. This brings our total capital raise in the last year to more than $245 million, strengthening our balance sheet to capitalize on opportunities in single cell proteomics and single cell multiomics. Before we get started, I'd like to express my sincere thanks to the strong team we have assembled at IsoPlexus. Our progress is truly a testament to their collective dedication and passion. At IsoPlexus, we are focused on capturing powerful biology to accelerate advanced curative medicines. Over the last five years, modern medicine has changed substantially through an accelerating stream of innovation across proteomics, single-cell biology, and functional multiomics. Cell and gene therapy has revolutionized medicine. Vaccines are now driven by RNA, and two of the largest-selling oncology drugs in the world are cancer immunotherapies. With this innovation, there is a tremendous opportunity to leverage human biology to cure disease. However, in order to do that, we need a better understanding of in vivo biology to create personalized medicines faster. At IsoPlexus, we have developed a unique technology platform, which is bringing together proteomics, single-cell biology, and functional multiomics to reveal a higher fidelity picture of in vivo biology. At its core, our platform is able to capture the critical proteins from single cells that drive disease response and therapeutic impact. A new wave of bulk proteomics is identifying a series of complex disease and therapeutic drivers that genomics misses, unlocking a new era of understanding in biology. We at IsoPlexus are able to uniquely capture proteomics at the single cell level to reveal the earliest sources of therapeutic response and disease activity, in ways that both proteomics alone and genomics miss. We focus our platform with a lens towards predicting in vivo biology, and in particular, the long-term responses that are driving these novel, advanced, curative medicines. For example, our single-cell proteomics platform has revealed highly active supercells in our immune system that have proven key to creating an optimal response against various cancers, In addition, single-cell multiomics via our new offering, Duomic, is paving a path to find the genetic drivers of these supercells, which can allow us to synthetically reproduce these pathways and cells into more curative medicines. Our unique single-cell proteomics products have driven our growth to date, and our new single-cell multiomics products in development represent a large opportunity ahead. We have made great strides demonstrating the utility of our platform in single-cell proteomics through extensive clinically relevant published studies and data. Single-cell proteomics is unlocking significant discovery and advanced medicine understanding in various preclinical trials where we shed light on the most potent biology and in clinical studies where we identify early signals and response in patients. Our platform is available in two Benchop instruments, the IsoLite and the IsoSpark. With similar functionality and ease of use, both instruments are proteomic hubs with the higher throughput IsoLite built for core labs and the IsoSpark catering to personalized labs. Based on our growing leadership position in clinically relevant publications, we continue to expand our installed base and usage. We are now in the majority of National Cancer Institute-designated comprehensive cancer centers in all 15 of the top 15 pharma companies. Now we will turn to Duomic, our new single-cell multi-omics product offering. We are well-positioned to leverage our core single-cell proteomics offering as we can now sequence the supercharged proteomic cells we detect. The ability to highly multiplex unique combinations of transcriptomics and proteomic targets will accelerate therapeutic discovery even faster. We do this by bridging the genomic cell atlas in the discovery realm with key proteomic analytes like cytokines and phosphoproteins for the first time, which is necessary to leverage the single-cell biology in the clinic. Our proteomics technology is applicable to a wide range of immune-based advanced medicines and serves a $12 billion addressable market opportunity across roughly 5,500 clinical programs. We believe this market will continue to grow driven by the massive interest in discovery across proteomics. The more proteomic targets that are identified, the more our customers are interested in identifying the cells creating those proteomic analytes, to identify the earliest signals of response and disease. In addition, Duomic provides us access to a separate discovery focus market, which represents an additional $12 billion total addressable opportunity. Our long-term growth will be driven by the expansion of our functional cell library, the growing number of high impact clinically relevant publications, showing the value of our technology, and providing customers with new innovations to expand our technology's capabilities. We have made tremendous progress this year across all three of these areas. First, we continue to expand our functional cell library for single-cell proteomics, which is the proteomic equivalent for the clinic that the cell atlas has been for human discovery in genomics. We now have a wide number of cell types, protocols, and workflows, which enables understandings of immunology, tumor biology, and more broadly, inflammation. Our goal is to comprehensively cover all proteomically driven cells in the human repertoire in the coming years. Second, we have seen a growing number of publications demonstrating the value of our technology. We believe customer publications will be a leading indicator of traction in key end markets. This data creates the unique use cases of our platform, such as developing optimized and more durable immunotherapies and delivering predictive potency for bioprocessing and cell therapy development. In addition, the clear clinical utility of developing early biomarkers from our most potent single cells is increasing for academic medical centers, biopharma, and biotech alike. To date, there have been 95 publications demonstrating the necessity of single-cell proteomics to drive the earlier signals of response in key high-growth markets like cell therapy and immuno-oncology. To that end, there are two recent sets of publications that really exemplify this value. starting with two Nature Medicine publications that were landmark studies in cell therapy against blood cancer and TILS therapies against solid tumor. Both publications illustrate our platform's strength in identifying early indicators of potency and durability in cell therapies against a wide variety of cancers. These predictive use cases are proving to be of high value in both developing cell therapies and developing bioprocess strategies for cell therapy. Additionally, a Journal of Clinical Oncology study highlighted isoplexis and single-cell proteomics as the biomarker identifying the long-term patient responders in a combination checkpoint inhibitor study in solid tumor. This publication is important for the field as it demonstrates the clear ability to detect early signals of long-term response in patients which were otherwise not possible with existing proteomic and genomic technologies. Our goal is to continue to leverage these proven use cases to generate increased market share in each of these critical cell therapy and immunotherapy areas. Third, we introduced our duomic platform, which ties our unique single-cell proteomic biology to the genetic drivers of those protein responses for the first time. This builds on not only years of development, but also on our recent acquisition of an extensive DNA and RNA sequencing portfolio earlier this year. Now, turning attention to our recent progress, I'd like to give an update by orienting around three key themes, customer adoption, operational execution, and product innovation. Starting with customer adoption, we are focused on growing our install base through our land and expand strategy. During the year, we continue to make progress adding new customers and placing more instruments within existing customer accounts. For example, this year we placed four units in a designated comprehensive cancer center, which are being used across multiple investigators. A key driver of this expansion is the ability to place the personalized lab system, the isospark, in individual research labs while placing the higher throughput isoide in core labs. The flexibility for each to act as a hub of various functional proteomic assays while maintaining an attractive price point creates the ability to have a large potential market for multiple units at each cancer center or biopharma. We are also seeing growing utilization within our expanding installed base. When we place an instrument, our instrument sales team, our consumable sales team, and our field application specialists partner with the customer to get the customer up and running quickly. By investing early, we were able to educate key users, drive consumable usage shortly after install, and also expand usage to other departments or researchers that see the capabilities and value of our system. This customer centricity is contributing to increased utilization, which in turn drives more instrument sales within a larger academic center or biopharma as adjacent labs buy their own systems. A core focus of our commercial team has been to develop close relationships with the customer at each stage of our sales funnel. We have added an inside sales team to manage the increasingly large incoming interest in our platform while being responsive to requests and prospects. This team works closely throughout our global regions, inclusive of the Americas, EMEA, and APEC, In addition, our growing instrument sales team and leadership leverages our funnel management software systems to deliver sustained and predictable instrument growth. To bolster our international offerings, we have hired a larger support team in EMEA and have begun expansion into APAC, including the recent hiring of a general manager and securing our local business license. Finally, our close relationships with our customers allows us to know where the market is going next and stay at the edge of innovation. For example, one of our largest customer requests was to sequence our unique supercells. Through development and acquisition, we are delivering on that customer request with our Duomic product. Turning to operations, we are focused on scaling our business to meet demand now and over the next few years. for our high-growth single-cell proteomics business. To do this, we have significantly expanded our manufacturing and logistics team and footprint to include multiple equipped facilities, inclusive of clean rooms and automation, which have the capability to produce Isolite and Isospark instruments and our single-cell consumables at scale. We have built many of these capabilities internally so we can manage any variability in supply chain in the coming years. We have invested in a technology enabled procurement team and system to ensure we have multiple sources for our most critical components. We continue to leverage a high quality lean manufacturing methodology, while at the same time ensuring that our customer demand and top line revenue will not be impacted by any part shortages. To bolster that, we continue to acquire critical long shelf life inventory, especially on the computer chip and electrical technology side, to ensure our resilience. Finally, our logistics team has invested in a series of partnerships globally with our expansions into EMEA and APAC to ensure that our growth in those regions can be supported by a continuous source of instruments and chips, as well as the necessary onsite field support required. We will continue to stay focused operationally and take steps to support our current and future growth. Turning to our pipeline, we are investing heavily in our duomic platform, which addresses a large unmet gap in the multi-omic market, offering a new functional proteomic analyte class to single-cell sequencing and proteomic-connected biology. With our investment in focus, duomic is coming along faster than expected. We have already concluded a proof-of-concept demonstration with data released at AGBT Precision Health in September. The data demonstrated new access to deeper tumor biology, in particular the ability to connect genetic information directly to the phosphoproteins in each cell. For the first time, we were able to generate deeper data in CAR-T therapy by connecting genetic circuits to proteomic cytokine response as well. Duomic represents what we see as a discovery bridge between the genomically driven cell atlas and the proteomically driven clinical development process. The evolution into proteomics and the desire to leverage the cell atlas provides a unique opportunity for isoplexis via duomic to connect with two for the first time with functional proteomic analytes. The information Duomic provides has the potential to reveal the genetic drivers of the earliest proteomic responses to cancer and other diseases. It provides for the first time the ability to sequence the highly active polyfunctional supercells that orchestrate the immune response. Based on our data, we plan to offer our Duomic platform via early access and service in the second half of 2022 with a full Duomic product launch in the middle of 2023. Our team is the foundation of everything we do at IsoPlexus. People and culture are core to innovation, and we have continued to attract a world-class pool of talent and made significant additions to our leadership team over the past few months. We have strengthened our current position in the market and our prospects for scaling by adding seasoned leaders from various life sciences tools and omics companies to contribute to our operational excellence and global infrastructure this year and beyond. Additionally, we have continued to strengthen our board with seasoned operators in the life sciences tools and omics field, including Jason Myers, formerly CEO of ArcherDx, Siddhartha Kadia, formerly President of Life Sciences Division at Life Technologies, and Michael Egholm, formerly CTO of Danner Life Sciences and President of Paul Life Sciences. Their unique and complementary perspectives on technology expansion, healthcare innovation, and market development will be invaluable to IsoPlexus as we accelerate and expand our markets. Overall, we are excited about what is ahead for IsoPlexus and are confident that our technology platform enables our customers to capture powerful biology to accelerate advanced curative medicines, I will now turn the call over to John for more details on our financials.