Olink Holding AB (publ)

Good day, and welcome to the O-Link Proteomedics Second Quarter 2022 Earnings Conference Call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question-and-answer session. As a reminder, this call may be recorded. I would like to turn the call over to John Medina, Vice President, IR, and Capital Markets. You may begin.

Thanks, Michelle, and good morning, everyone. Thank you all for participating in today's conference call. On the call from O-Link, we have John Hymer, Chief Executive Officer, Carl Raymond, Chief Commercial Officer, and Oscar Helm, Chief Financial Officer. Earlier today, O-Link released financial results for the second quarter ended June 30th, 2022. A copy of the press release and an updated corporate presentation are available on the company's website. Before we begin, I'd like to remind you that management will make statements during this call that include forward-looking statements within the meaning of the U.S. Federal Securities which are made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. 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 the forward-looking statements due to a variety of factors. For a list and description of the risks and uncertainties associated with Olink's business, please refer to the risk factors section on Form 20F, Commission File Number 001-40277, filed with the U.S. Securities and Exchange Commission on March 17, 2022, and in our other filings with the SEC. We urge you to consider these factors, and you should be aware that these statements should be considered estimates only and are not a guarantee of future performance. Also in our remarks or responses to questions, management may mention some non-IFRS financial measures. Reconciliations of adjusted gross profit and EBITDA, constant currency revenue growth, and certain other non-IFRS financial measures to the most directly comparable IFRS measures are available in the recent earnings press release available on the company's website. This conference call contains time-sensitive information and is accurate only as of the live broadcast today. August 11, 2022. Olin 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, except as required by law. And with that, I will turn the call over to John. John?

Thank you, Jan. Good morning, everyone, and thank you for joining Olin's second quarter 2022 earnings call. I'll begin with the quarter's highlights, discuss a few areas where O-Link is driving the science of proteomics. Then I'll wrap things up by discussing our outlook for the remainder of 2022. I will then turn the call over to Carl for more details on our performance during the quarter. It was a very strong 2Q for O-Link, benefiting from our industry-leading execution and building on our very positive start to the year. We remain very confident that we head into the back half of 2022 and are well positioned with customers and prospects within biopharma and academia. The impact of the pandemic environment was largely as we expected, settling into a manageable workflow that remains conducive to strong growth for Olins. Furthermore, as we consider the broad dynamic industry environment and macro crosscurrent, only execution remains strong and our customer base appears healthy with high interest in proteomics and project funding remains solid. We delivered quarterly revenue of 27.5 million US dollars, 56% growth over the second quarter of 2021. Growth from kits and services was both strong and we remain confident in the continued shift of revenue towards kits with our 22 2022 outlook supported by the performance during the first half. In HyFlex, we've been very encouraged by the clear signals of robust customer demand, and we believe that the opportunity with Explore continues to show that it's more sizable than we originally anticipated. All in all, in a very short period of time, driven proteomics to unprecedented scale, quality and throughput, allowing for the first time ever the scientific community to add proteins as a clear strategy to overcome the challenges we face in healthcare and drug development. Protein data is proving to be an immensely valuable addition to the genomic data sets that we have developed over the last couple of decades, driving invaluable insights on novel causal drug targets, clearly defining subgroups of patients more likely to respond to both new and existing drugs. This is defining modern healthcare and opening up new opportunities, both for the industry as well as healthcare providers and patients. Another layer of our confidence is that we continue to expand our reach within the low and mid-plex proteomics markets with Signature, which began deliveries to customers late last year. The ability of Oling's product platform to address multiple use cases within the same customer is increasingly clear, with multiple signature customers also being explored customers. Also toward expanding our customer reach. In June, at the HGVT general meeting, Oling's mission to democratize proteomics and enable explore broadly across the NGS landscape entered a new phase. We announced collaborations with three NGS pioneers, Ultima Genomics, Element Biosciences, and Singular Genomics. All these efforts in MGS are meant to provide customers with as many options as possible in picking the sequencing platform that is optimal for their needs. We expect our efforts with each of these companies to be additive to our existing and very productive relationship with Illumina. Further to addressing our customer needs, we expect to continue to build out our library of antibodies. commensurate with the ambitious goals in clinical and diagnostic research and remain on track to expand to 4,500 protein biomarker targets by year end and further beyond that. Forward advancing the science of proteomics, we're encouraged by the achievements of more than 940 carefully planned and executed research studies involving the use of our PEA technology published in high impact peer reviewed publications today. Publication count continues to accelerate from 2021, and the increase we saw in just the first half of 22 exceeds the increase we saw during all of 2020. Another milestone was the first study published that cited the use of O-link target 48 cytokines for research in COVID-19. As a reminder, target 48 has pushed proteomics in the mid-plex space to new levels using unparalleled multiplexing and providing the highest data quality with absolute quantification. This is critical for studies in clinical settings generating more protein data points from the same sample and for informing additional patient insights such as efficacy prediction, stratification, or safety assessment. All these efforts represent activities by thousands of researchers across the globe covering every major therapeutic category, from research and discovery to the downstream clinical settings. I'd like to focus on a couple recent high-impact publications that highlight the differentiated value of the Olin product platform. In June, the UK Biobank Pharma Proteomics Project published early results from its groundbreaking proteomics research to the BioRxiv preprint server. Underpinned by more than 54,000 participants, the data are an open-access, population-scale resource of unprecedented breadth and depth to help inform biological mechanisms underlying genetic discoveries. The study also highlights the strength of O-Link's EXPLORE assay for PKTL detection and downstream biological discovery. With a high proportion, 82% of the proteins tested have cis-associations, evidence of O-Link's highly specific assays that measure their intended proteins. Measuring thousands of proteins at population scale can accelerate the development of novel biomarkers and therapeutics. And we are extraordinarily grateful that O-Link's Explore platform can be part of this tremendous journey. We eagerly await the full data release to the scientific community, expected by the end of this year. It will be published using O-Link's unit of protein expression, NPX, or normalized protein expression, providing a unique opportunity to shape the language of next-generation proteomics. These data will also be available to researchers around the world for downloads, where we expect them to catalyze new thinking on proteogenomics, determining the role of new drug targets, and exploring causality. defining more homogeneous patient populations for clinical use, predicting the likelihood of disease progression, and identifying more relevant safety biomarkers. As a reminder, the data published this year are from Explore 1536, and in 2022, we began running the expansion phase on the Explore 3072 platform. In inflammatory bowel disease, a team led by Dr. Andre Lorenzo Hurtado, Vice President Translational Research and IBD Ventures at the Crohn's and Colitis Foundation, recently ran a study to find prognostic markers to determine if children with Crohn's disease develop serious complications like fibrosis or fistulas, and to find predictive markers that determine whether they are likely to respond to more aggressive anti-TNF therapy. Using machine learning, the team was able to identify a plasma protein signature that can predict at diagnosis the likelihood of a child with Crohn's disease to develop complications within five years. Beyond UK Biobank, Olink is part of additional consortia exploring the role of protein biomarkers. These include Scallop for disorders like coronary artery disease, rheumatoid arthritis, bipolar disease, heart failure, dementia, or metabolic syndrome. Also, CORAL for neurological conditions and COLIBRI for inflammatory bowel disease. We believe that these efforts will be important contributors to the field of proteomics and provide meaningful new data points for drug discovery and development efforts. Our considerable progress anchored in strong execution across our platform, including multiple product launches, our robust revenue growth, new collaborations in NGS, our partnership with Octave in MS, and advancing the science of proteomics would be impossible without the talent and dedication of the entire O-Link team. We remain steadfast in our goal to strengthen this already broad and deep talent pool and to further improve our lead in the proteomics team. We started the second quarter with 465 employees and reached 516 upon entering the third, including 186 full-time employees in the commercial team. Turning to our expectations, we are reiterating our 2022 revenue guidance range of 138 to 145 million. As we previously discussed, Given the procurement and budgeting cycles of many of our customers, the majority of O-Link's revenues occurred during the second half of the calendar year. We expect this trend to continue over the near term, with the heaviest weighting towards the fourth quarter. We expect our seasonality to become less pronounced over time as we continue to broaden our customer activity. We also expect continued progress this year toward our goal of increasing our sales mix towards kits. Overall, all links to business broadly across our product platform, high to low click, and customer base remain very strong as we enter the second half of 2022. Beyond this year, we remain optimistic about our strategic and financial outlooks, our path to return to profitability, and prospects for continued strong growth. I will now turn the call over to Carl to provide a few more details on the quarter. Carl?