MaxCyte, Inc.

Ladies and gentlemen, thank you for standing by. Welcome to MaxSight's second quarter earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would like now to turn the conference over to Scott Feinberg, Finance and Investor Relations Associate. Please go ahead.

Good afternoon, everyone. My name is Scott Feinberg, and I'm responsible for investor relations here at MacSite. Thank you for participating in today's conference call. Joining me on the call from MacSite, we have Maher Masood, President and Chief Executive Officer and Doug Swierski, Chief Financial Officer. Earlier today, MaxSight released financial results for the second quarter and to June 30th, 2024. 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 has 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 Maher.

Thank you, Scott. Good afternoon, everyone, and thank you for joining MaxSight's second quarter 2024 earnings call. MaxSight reported $10.4 million of total revenue in the second quarter, including core revenue of $7.6 million and SPL program-related revenue of $2.9 million. We are excited with the progress that we have made so far in 2024, afforded by our commercial execution, the continued demand for our expert exploration platform, and the efforts we have made to continue to provide differentiated end-to-end support to our customers. We're also encouraged by the five new SPLs that we have signed this year, which includes the most recently signed Legend Biotech. Our core business performance was solid in the second quarter, with results in cell therapy and drug discovery that were in line with our expectations. Our performance remains tied to the funding environment for cell therapy developers, which remains stable in the second quarter, but has not significantly changed or improved since the first quarter or the time at which we provide initial guidance for 2024. Amidst this current backdrop, we continue to see our customers operate with a cautious capital spending mindset. Despite this, the overall market optimism in cell therapy and general scientific evolution in the space leaves us incredibly optimistic about MaxSight's long-term opportunities. We continue to believe cell therapy will change the paradigm of medicine over the years, and we are in the early stages of the future growth of cell therapy. The non-viral cell therapy market continues to move towards engineering approaches that involve more complex therapies across an expanding variety of cell and disease types. This bodes well for MaxSight, given that our technology can support the complexity of new cell therapies to be developed by current and prospective STL customers in autologous and allogeneic settings. We remain in a strong position to meet our outlook for 2024 and are very optimistic about the future of our business and the cell therapy industry as a whole. Provide some context on our core revenue performance in the second quarter, which Doug will cover in more detail. We grew our instrument install base to 723 as of June 30th. Instrument revenue continues to be impacted by customer caution on capital equipment purchases. However, we were pleased with PA revenue of $3 million and lease revenue of $2.6 million. Both declined slightly year over year, but remained stable from the first quarter of 2024. 51% of our core revenue in the second quarter of 2024 was derived from SBL clients, speaking to contribution from both early-stage customers and customers in the clinic. As I mentioned before, we reported $2.9 million of SPL program-related revenue in the second quarter, putting us at $6 million in the first half of the year. We are encouraged by SPL clients' continued progress through the clinic, resulting in maximum revenue from accident. We are also continuing to expand our SPL portfolio, as evidenced by two new SPLs signed in the second quarter, Bee Biopharma and Legend Biotech, bringing our total signed SPL so far in 2024 to five. Our most recently signed SPL that we announced in May, Legend Biotech, is a global leader in the cell therapy industry, developing new cell therapies to target life-threatening diseases. They currently have one commercial asset and eight pipeline programs, with revenue from marketed products, partnerships, and licensing. MagSight's platform provides Legend Biotech with technical, scientific, and regulatory expertise to support the development of the company's therapies across a variety of cell types and modalities. The addition of Legend Biotech brings our total number of signed SPLs in our portfolio to 28, It is important to remember these SPL relationships provide us with the opportunity to participate in the success of our customers' programs. With unparalleled access to our electrification technology, trained field sales and application scientist support, and our FDA master file and regulatory know-how, we firmly believe that Maxstar remains the platform of choice within our industry. We have strong relationships with our current SPL clients and our robust pipeline of prospective SPL clients, all of which are working vigorously to develop innovative cell and gene therapies for patients in need. As you likely know, MaxSight supports SPL customer Vertex and the FDA approval of Cashevi, the first non-viral cell therapy approved in the U.S. Now, midway through 2024, we are confident the commercial opportunity for Cashevi remains strong. With approval in the United States, Great Britain, European Union, Saudi Arabia, and Bahrain, Cashevi has the capability to enable life-changing treatment to patients worldwide. We are encouraged by the recently presented long-term data for Cashevi from global clinical trials for over 100 patients with transfusion-dependent beta thalassemia. The efficacy demonstrated consistency with primary and secondary endpoints from prior exocell studies. Vertex recently reported they continue to see a growing number of patients begin the treatment journey, and approximately 20 patients have already had cells collected, with patients initiating the treatment journey in every region where Caschevy is approved, the US, Europe, and the Middle East. There are now 35 activated centers, and Vertex continues to expect to activate approximately 75 total centers globally, with the view that Cashevery represents a multibillion-dollar opportunity. Currently, and as previously communicated, we do not have visibility into the timing of patient dosing or completion of infusion, given the lengthy process associated once patient enrollment begins. As such, we continue to exclude Cashevery-related commercial milestone revenue from our 2024 outlook, and plans provide you with updates as they come from Vertex. We remain very excited by the potential of Cashevery to benefit patients as the first and only approved CRISPR gene editing therapy. Over the near, medium, and long term, we see significant revenue opportunity from our SPL clients as they progress through the clinic and reach commercialization. The next wave of potential commercial opportunities includes approximately five programs across five SPLs with launch potential in 2027. These therapies have the potential to address solid tumors, lymphoma, leukemia, sickle cell disease, and beta thalassemia. Beyond this, we see opportunity for 10 approved programs across additional indications of multiple myeloma, and autoimmune disease between 2028 and 2030. As we continue to sign new SPLs and our existing SPLs grow and expand, the basket of commercial opportunities in the future grows larger. For the remainder of 2024, we'll remain focused on investing in areas of high growth that align with MaxSight's core competency, advancing cell therapy innovations. Over the first half of this year, we have reviewed our portfolio of opportunities and investments and reallocated resources towards high-impact projects that promise the best return on investment and long-term growth. Commensurate with our realignment, we are reducing our investment in and moderating our expectations for the VLX. We will maximize the investments previously made in the VLX, continuing to work with early adopters and future customers. Our portfolio realignment focuses on prioritizing operational efficiencies and sales and marketing reach in cell therapy, which continues to be a large and sustainable growth opportunity for MaxLight. To wrap up, we are pleased with our solid second quarter results and believe that we remain on track to deliver on our goals for 2024. MaxSight's value proposition and the support that we provide to our customers and clients is truly differentiated. And I continue to believe that we are the premier cell engineering platform of choice within the cell and gene therapy industry. With that, I will now turn the call over to Doug to discuss our financial results. Doug?