MaxCyte, Inc.

Good day, ladies and gentlemen, and welcome to the MaxSight Third Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time. If anyone should require assistance during the conference, please press star then zero on your touchtone telephone. As a reminder, this conference call is being recorded. I would now like to turn the conference over to your host, Mr. Shawn Minargis.

Good afternoon, everyone. My name is Shawn Minargis, and I'm an analyst on the MaxSight team. Thank you all for participating in today's conference call. On the call from MaxSight, we have Doug Dorfler, Chief Executive Officer, and Amanda Murphy, Chief Financial Officer. Earlier today, MaxSight released financial results for the third quarter ended September 30th, 2021. A copy of the press release is available on the company's website. Before we begin, I need to read the following statement. Statements or comments made during this call may be forward-looking statements within the meaning of federal securities laws. Any statements contained in this call that relate to expectations or predictions of future events, results, or performance are forward-looking statements. Actual results may differ materially from those expressed or implied in any forward-looking statements due to a variety of factors which are discussed in detail in our SEC filings. The company undertakes no obligation to publicly update any forward-looking statements, whether because of new information, future events, or otherwise. And with that, I will turn the call over to Doug.

Well, thank you, Sean, and good afternoon, everyone, and thank you for joining MagSight's third quarter earnings call. I will begin with a discussion of our business and operational highlights during the quarter, and then We'll follow with a detailed financial review from Miranda. We'll then open up the call for questions. I'm very excited with our performance in the third quarter of 2021, our second time reporting as a NASDAQ listed company. During the quarter, we continue to deliver on all financial and strategic aspects of our plan as the premier cell engineering platform technology, supporting the development of advanced cell-based therapeutics. Amanda will provide more details later in the call, but I note that we realized very strong third quarter results, as outlined in the press release published earlier today, driven by strong performance in our core cell engineering business, as well as substantial SPL, which is strategic platform license, program-related revenue recognized during the quarter. To summarize, total revenue was just over $10 million, representing a 50% growth compared to the same period in 2020. Our core instruments and disposables business grew 25% in the quarter, which lines up with our historic five-year CAGR of 25%. We also recognized $2 million in pre-commercial clinical milestone revenues from our strategic platform licensed commercial partners. This was well above our expectation for $1 million in SPL-related revenue for the remainder of the year, which we communicated last quarter. Revenue recognized from our SPL partners in the quarter was a result of multiple clinical milestones recognized in the quarter, some of which were recognized earlier than we initially anticipated as our partners achieved clinical development progress. So to preempt any specific questions about the specific drivers of milestone revenues during the Q&A session, and as we have previously indicated, to ensure the confidentiality of our partnership agreements, we will be unable to answer any questions related to the SPL partners and progression of their program specifically. We believe the key takeaway is that this quarter's performance shows the power of our business model and our ability to share in the economics of our partner's ongoing clinical success. Investment into and innovation in next-generation cell therapies has been explosive and continues at a high level throughout 2021. We have all seen the reality of regulatory uncertainty in the space, as developers navigate a new world of advancing novel cell therapy approaches through the clinic. But we have also seen powerful data updates and progression toward approvals for next-generation cell therapies, and consequently, this quarter's results show the potential for MaxSight to participate in that progress. While we expect our partners to evolve their broader pipelines over time, more importantly, we have not seen any change by our partners in their intentions to invest in cell therapies ex vivo cell therapies. To support this, we have seen continued growth in our SPL partner base, as we believe MaxSight's proprietary electroporation platform provides both scalability and high performance that is essential in supporting the development and manufacture of complex, next-generation engineered cell therapies in a CGMP-compliant environment. MaxSight's value continues to be further validated by our expanding customer base. including the ongoing success we have had in signing SPLs, with four of these arrangements signed year-to-date, as well as the value of our FDA master file and equivalent technical files outside the U.S. We now have signed 15 SPLs, signed after adding SANA biotechnology in the third quarter, and Encarta Therapeutics announced earlier this month. we continue to build a burgeoning pipeline of SPL partner opportunities across a variety of cell types, approaches, and indications in ex vivo cell therapy. From an investment and growth acceleration perspective, we're committed to investing in the business, and as such, I've focused on refreshing and refining our long-term strategic plan. We intend to ramp investments in our research and development and sales and marketing competencies to take advantage of opportunities we see in this space to provide added value to our customer base. This includes expanding our manufacturing footprint as our partners move closer to potential commercialization. We are moving into a 67,000 square foot facility in 2022 and are working to further insource key elements of our manufacturing process, particularly around processing assemblies. We're also making significant investments in our process development lab, which will benefit both our cell therapy and biomanufacturing markets, and customers. We are also focused on further developing our expert product portfolio. We're on track for release of our new VLX platform under the expert brand by the end of the year. While the market expansion opportunities for the VLX and the large-scale bioprocessing applications will take time to evolve, we're encouraged by the preliminary interest from initial customers. We are constantly evaluating potential market opportunities for the VLX, and look forward to updating investors on the evolution of the VLX product roadmap over time. We launched the R50x8 processing assembly in September 2021. This exciting portfolio expansion will allow scientists to do more transfections in less time and at a reduced cost per transfection, which will open up new applications for research on our platform and accelerate optimization. We believe this product can attract new customers to the technology and new applications at an earlier stage on their programs, helping us to establish relationships earlier and growing our customer base. We are also investing meaningfully in people and hiring at a fast pace. This year we have made key hires and announced important internal promotions discussed on the previous call. We have added resources to our alliance management team as a reflection of increased interest on the part of commercial cell therapy developers to work with us on a more strategic basis. As we look to the fourth quarter and into 2022, I continue to expect MaxSight to invest and grow headcount in all major areas of the organization. We have a bright future and are investing in the people who will help get us there. For example, our sales and marketing team is growing as we see opportunities to move into new applications and geographies. Investing and growing our sales and marketing team includes the hiring of James Lovegren as Senior Vice President of Global Marketing. James brings deep experience in cell therapy to the role, and we look forward to his efforts to grow adoption of an expert platform in cell-based research and next-generation drug development. In addition to Jim, we look forward to expanding the commercial team to support market development and customer engagement. We announced that our board of directors has appointed Richard Douglas as chair of the board. Richard Douglas has been a board member since February 2018, He succeeds J. Stark Thompson, who will remain as a consultant to MaxSight. I look forward to Richard's leadership in his new role, and thanks Stark for setting the global foundation as we built MaxSight. It's been a true honor to work with him, and we thank him for his dedication and perspective. In closing, we have had a strong third quarter as we continue to execute on our financial and strategic goals. We are very excited about our opportunity going forward, particularly in the cell therapy market, and believe we are making the right investments to drive growth across the business. I will now turn the call over to Amanda to discuss our Fancher results. Amanda?