10x Genomics, Inc.

Good morning, everyone.

Welcome to day three of the Morgan Stanley Global Healthcare Conference. My name is Edmund Tu, and I work on the Life Science Tools team here at Morgan Stanley. And it's my pleasure to be hosting 10X Genomics today. And representing the company, we have co-founder, CEO, Mr. Serge Seixonal. Thank you for joining us.

Thank you for having me.

Before we start, I'd just like to remind everyone in the audience, important disclosure information can be found on our research disclosure website at morganstanley.com forward slash research disclosures. If you have any questions, please reach out to your MS sales rep. And with that, maybe to kick things off, Serge, it's been a unique year with various policy and macro headwinds impacting your end market. Understanding things have changed meaningfully since the start of the year, how would you sum up the past nine months for 10X Genomics, and what would you say are your proudest achievements in this challenging market?

Yeah, it has certainly been a pretty eventful year. We started that with really good momentum and of course there has been a lot of news flow, a lot of changes in the macro environment. And I would say the high level, the things I would want to emphasize is just how proud I am of the team and their execution through all the things that kept hitting them and all the challenges and all the changes in the environment and that's across the board. the people in the field, the sales team dealing with the customers and all the issues and all the problems they're facing, the operations teams, R&D, G&A, across the whole company really coming together and navigating, persevering through this environment. In terms of the substantive achievements of the team, there's been a whole number. We finished our commercial restructuring, which again, is particularly impressive in light of all the challenges we faced. We made really incredible progress in product development, including some of the products we launched already this year. Another one that's about to launch soon, I'm really excited by, Flex V2 on the single cell side. And really importantly, especially in the current environment, but also more generally as we think to the future, a huge focus on cost management. And we came into the year with a strong balance sheet and we have strengthened it further through the through the actions and they just the relentless close discipline of the team and so uh overall you know we are puts us in a really good position to both navigate this environment and to come out stronger than ever on the outside of it great um before diving into your segments and products let's maybe touch upon your end markets really briefly and maybe studying with academic and market

Serge, I think you mentioned that the customers in the U.S. are somewhat more optimistic versus earlier in the year, yet they remain cautious given the uncertainty around next year's funding and the slow pace of fund disbursement. So I guess, has there been any changes in sentiment for customers in the Fed market over the past couple of weeks? I know this question gets asked all the time, but ultimately the question of when academic customers will likely to reopen their wallets remain a key focus for investors.

Yeah, definitely a fair question. Obviously a big focus for us. I would say at the highest level, there's not really been a change, any significant change since the time when we had our call in terms of the customer sentiment and those kinds of patterns. You know, obviously things were feeling really dire back in the kind of early in the year. People, you know, there was a continuous stream of news that kind of made things continuously worse or kind of more more dire, and that created a lot of uncertainty, increasing uncertainty. At some point, you know, the news flow kind of changed in the sense that the uncertainties maybe stopped increasing, but they're still there, and it has been to the extent that there's stability of uncertainty. It's still large, and it has been consistent until, you know, we see more clarity on what the budget is going to be next year around NIH until we see more clarity around the actual cash, like actual money making their way into the bank accounts from the grant. Maybe more clarity around sort of the direct versus indirect issues. You know, people are going to be the academic institutions, the PIs are all going to be similarly cautious around their spending patterns for sure. So we're still kind of in that same state. I would say You know, it hasn't gotten better, it hasn't gotten worse. Got it. And then how are your OUF academic customers standing? Yeah, I mean, certainly much better than in the U.S., right, the situation. I would say it's still, you know, the current environment is not, like, awesome, it's not amazing. Like, several years ago across the world there was a lot of investment in biomedical research. I don't think that's kind of the case anymore. So it's relatively subdued, and we're finding it's particularly subdued on the capital equipment side of things, where it's doing a fair bit of travel in Europe and in Asia, talking to customers. And yeah, there's just materially more scrutiny when it comes to instrument purchases, whereas in the past, you might have a PI just go ahead and buy an instrument, buy this sort of piece of equipment. Now the department comes over the top and asks them hard questions like, well, the instrument already exists at the uh you know another place in the institution like there's one at the core why don't you use that one for now instead of purchasing another one and so we're seeing that kind of pattern across the world just more pressure um now not universal obviously different geographies have all their own sort of pattern but i would say the high level uh the environment is somewhat subdued not nearly as bad as uh as what's in the us but also not sort of the high flying days of several years ago got it

That's super helpful. And maybe switching to the biopharma side, I know it's a smaller part of your business, but you guys have been very active in trying to further penetrate the fed market. So maybe you can share some color on what you're hearing from your biopharma customers and maybe some updates or progress on how the biopharma commercial team has been progressing so far.

Yeah. So I would say, like, first of all, very, very happy to have the biopharma focus team in place. both because it gives us much more clear visibility into kind of what's happening there, and also levers, much more sort of concentrated levers in terms of like kind of managing that business. So really good to have that, like really glad we did that in New York last year, so we're ready for this environment. Now in terms of like what is actually happening sort of with the macro economic environment, we kind of have our biopharma businesses sort of composed of roughly half of biotech and half of larger pharma. And biotech has been in a sort of recession slash depression for the past several years. And I would say still kind of is in that mode where, you know, companies are really struggling for funding and are really trying to figure out how to kind of make their cash last longer and so on. And so it's been certainly challenging from that perspective. Not to say that there aren't new companies coming aboard or like you know you do see you hear about these very large funding rounds and there's quite a few of them who are basing their sort of research programs or their development programs in large part on on single-celled spatial foundations and we certainly get revenue from those but by and large on average the environment within biotech has been has been very challenging for the past several years and that has not really changed yet On the big pharma side of things, one thing to keep in mind is that we tend to be indexed more toward the early development, discovery kind of stage of the pipeline. And this year so far, again, we saw kind of like really nice momentum at the end of last year, early this year, but then since sort of, again, a lot of news flow in the environment, they've been more cautious. A lot of that is just not having... necessarily certainty around how things are going to look in the future in terms of pricing, in terms of tariffs, MFN, things like that. Make some cautious right now investing in early stage discovery and so on. And so there's kind of what we've seen so far this year is that reticence while they're waiting for things to shake out on a policy front.

Got it. Super helpful. And then I was just Thinking about all the pressures that your markets are seeing today, are you seeing any sort of preference shifts for your customers in terms of either doing a single-cell project or a spatial project?

Yeah, it's kind of an interesting question. I would say, like, I can't really say that that has been the case, right? Again, the current environment is definitely, so relatively speaking, there's a preference for consumable kind of purchases as opposed to instruments and big capital equipment. But in terms of the sort of the applications and sort of these modalities, single cell and spatial, I wouldn't say that there's like relative sort of preference one or the other. If you look at what people are actually interested in investing in, where they see their research programs going, where there's particular interest and enthusiasm, I think both single cell and spatial actually figure very, very prominently. I would argue probably at the top of the list. Like if you look at like what are the big areas of growth in tools, You know spatial is probably the most promising kind of still early emerging franchise and single cell is probably the most promising relatively mature kind of like segment and and the cool thing too is now a single cell we're seeing kind of almost reemergence like these new applications that are kind of accelerating the interest and the intensity of interest in single cell so both are I think are doing well at least from the interest perspective. Yeah, I guess the dollars are somewhat more constrained these days.

Got it. And then maybe looking at your product portfolios, starting with the Chromium franchise, you mentioned Flex V2 earlier, your plate-based product. Tell us more about this, and I'm not sure if you've disclosed this, but timing for the launch.

Yeah, we haven't given more sort of concrete timing. We talked about it at the beginning of the year that it's coming. It's still scheduled for for later this year. The team has been making great progress. We're really excited. The product is doing really well. We've been relatively cautious in terms of promoting it just yet, but we've engaged with a lot of early access customers, and the feedback has been just phenomenal. I'm personally really excited about it, and I think it's going to be a major a major event for single-cell analysis fundamentally. It opens up whole new sets of workflows, so that is really exciting, and especially in the context of running very large-scale perturbation screens, there's kind of this new wave of interest and efforts that are coalescing around building large-scale AI models of biology and we see Flex V2 as being the foundational technology for enabling that. In fact, we've heard that from our customers. So there's this huge potential there. But then also just to step back, just the benefits of Flex in general that are going to be amplified with this product introduction are really exciting to me too. Fundamentally, it has really, really great sensitivity and allows you to really get the expression of even the lowest expressed genes which oftentimes are the most important ones, like transcription factors and things like that. So it has really great, it's incredibly robust by virtue of its fixation, and so, which makes it particularly amenable for broader adoption for people who are kind of new to the world of single cell, and it's a lot more forgiving of kind of various sort of workflow deviations, maybe. It works with fig samples, and in particular works with FFP, and we've know over the past couple of years have further kind of refined those capabilities and which makes it kind of uniquely um amenable for uh translational and clinical applications now um and uh and it also is uh like incredibly flexible in terms of uh how many samples like now would be two how many samples or how many cells you uh you want to run for your single cell experiment so It's going to be a pretty big deal, and we're very excited about it as we're heading toward launch.

Great.

Chromium consumables. Last quarter, revenue was down, but reaction was up year over year and quarter over quarter. Where do you stand today in terms of the Gen X transition? I know you pointed to expectations for it to be completed by around year end, but you also said some customers... mentioned that they would probably not switch to Gemex because of certain features. Could you elaborate more on this, and are you ultimately expecting a certain percentage of customers to stay on Next Gem?

Yeah, so first of all, there's not really any real reason for people to stick with Next Gem. It's more the fact that people have studies that are ongoing, and they don't want to switch in the middle of a study, in the middle of experiments. And then there's sort of a general kind of So, Norton, if you're used to running a particular assay, and it works well for you, which in a lot of cases it works really well, right? Like you don't want to switch. But in substance, GemEx is just monotonically better along every dimension than NextGen. At this stage, the vast majority of our customers have switched. Not everyone. There's definitely kind of a minority that's still sort of that tail of... running NextGen. We have announced publicly that we're going to be end-of-lifing NextGen, and we're expecting that to now kind of accelerate the last wave of conversion as we're heading towards sort of the end of this year and early next year.

Got it. And I guess the million-dollar question everyone wants to know is, what gives you confidence in the long-term elasticity in the single-cell market, and when can we expect to see crony income symbols return to growth?

Yeah. I mean, there's two different questions here, the fundamental premise and the timing. I would say the fundamental premise here, like why elasticity, first of all, I'll just go back to the first principles. When we first launched single cell, it was always very clear to me, look, this is a foundational capability. It's a general purpose kind of technology that applies to Just about every area of biology anytime you're starting analysis you starting with tissue yourself, you really need to be looking at the cell by cell. Level that's the basis of biology and you know i've never heard we've not seen any content like argument to the contrary, but fundamentally for anything that has become much like. universally represented that's the right way to look at biology at the same time, we knew from the beginning. If you're charging $1,500 a sample plus more of a sequencing, if you're in the thousands of dollars per sample, that cannot be kind of a universal technology. And we knew that over time, you need to get into more like hundreds of dollars to drive to that universal ubiquitous adoption. And so that gives you kind of, again, from first principles kind of a view that there's got to be elasticity. There's huge amounts of money that's not, that should be being spent on single cells, but currently it's not being spent. We also had a fair amount of empirical evidence along the way that we've gathered when we did experiments either with particular products when we first launched Flex and seeing kind of the adoption curve of customers once they kind of get to a lower price per sample, what happens to their volume, what happens to their dollars, and those increase. Not immediately, but give it something like three quarters and the total revenue you make from that particular customer kind of increases. and the reaction growth overwhelms the decline in ASP. We've done some experiments geographically, and we also have predicates from other technologies that have gone through this as well at similar price points and so on. So that gives us a lot of conviction that there is elasticity. And in fact, I think there's massive amounts of elasticity And, you know, and also kind of going back to, you know, the point I made earlier, you can see now, like, as we've been communicating these lower price points, there's new applications that are opening up. We're seeing new use cases. We're seeing new customers taking interest. So at a high level, it's going, it's all kind of going in that direction. And we're seeing now increase in reaction volumes, pretty significant, pretty consistent. Of course, it's on the background of ASP declines as well. And I would say that, you know, like I think in an environment where that was more normalized, we'd probably see even more like growth, higher growth in reaction. And so to some extent, the point at which sort of you see true elasticity on the reaction growth leads to revenue increases also function of what's happening in the microenvironment, right? And so we kind of have to see how that evolves. optimistic that we're very much on the right path here and we're set up for a much larger growth going forward.

Got it. And then your recent scale acquisition announcement, this has also generated a lot of buzz in the investment community. Can you help us better understand the strategic rationale here? I mean, from a tech perspective, I think researchers have shown that if you incorporate one round of barcoding ahead of encapsulation, you can run a lot more sales through Chromium. So is that the idea here?

I mean, that's pretty perceptive, I would say. Overall, this acquisition, this is a technology acquisition. The scale team, the founding team is incredibly inventive, incredibly creative, and they developed a number of technologies that were, I mean, they're both really foundational and fundamental and really clever, and we're really looking forward to integrating them into our product lineup. If you think about it, like the general notion, like what does it take at the highest level to do single cell analysis? What is the key enables? You need to be able to separate cells. You need to be able to deliver barcodes within the individual partitions. And then you need to be able to do, to make massive numbers of barcodes, huge diversity scale, right? And, you know, scale presents like a really powerful approach for doing that, for kind of pushing the thought vector of scale. And yeah, we expect to incorporate that into our Chromium product line. It gives us tons and tons of headroom to keep scaling the experiments and to deliver kind of on the roadmap and all the things that our customers are excited for the future.

Got it. And how big of a lift could that be? And when can we expect to hear something along the lines of a first product that incorporates the technology?

Yeah, I mean, we haven't talked about our protocol, not beyond the current era, but conceptually, kind of as you mentioned, these are very nicely complementary kinds of things, and it's not a huge lift at all to combine what we have with fundamental scale technology. Got it.

and then to the extent that you're comfortable and can talk about this, are you able to provide us with an update on where the SCALE and PARSE litigation currently stands?

Yeah, so SCALE brought a patent infringement suit against PARSE several years ago, and it's scheduled to go to trial in October, and that's still the timing and proceeding forward. Got it.

And then what are your views on the single-cell competitive landscape today? And in addition to, I guess, commercialized competitors, I know the preprint of the stamp method last year generated a lot of buzz, and I think it was officially published in Cell recently. So what have customers been saying about using spatial images for single-cell transcriptomics?

Yeah, I mean, so first of all, in terms of just like single-cell competition more broadly, obviously the last few years there has been a number of new entrants. And the dynamic has been largely the same. You know, our products have just like really, there's a huge gap in terms of the capabilities of our products relative to what exists out there with competition. Customers invariably, you know, go and try all these products. And there's definitely a lot of traveling going on that has been for the past several years, but also just about invariably they come back to us because, again, much superior data quality, much better sensitivity, much better robustness, the range of applications, customer support, all of these things that we've built out over the years to just make our products that much better and much better for customer experience. And to the extent that in the past there was sort of a question of cost and pricing, where that was kind of the wedge that people were driving through. That has also been, I would say, in many ways addressed by virtually product introductions we had last year with L&C Multiplexing, with what Flex is able to do, and now with Scale being our portfolio as well. So that kind of gives us a really nice breadth of coverage on the cost side as well. Generally, we're feeling really good about our position in single-cell. As far as the stamp approach is concerned, it is very exciting. There's definitely quite a bit of interest, at least conceptually, in this approach. To be clear, this is something that we have been excited for a long time, since we first started thinking about spatial. it was like, it's very natural to things like, hey, you can take the dissociated cells and put them on a flow cell and do the analysis. So that was always kind of part of our thinking. In fact, a lot of the very early customers of Xenium did precisely that. They would just put individual cells on a flow cell and run these experiments. The fact is it's still quite early, and there's not really a commercial solution for that that's that's really sure might. I mean, there's still a whole lot of trade-offs that you're making and will likely be making for quite some time to come relative to actually doing proper single-cell analysis. Like, the depth of information you get from individual cells when you're using chromium is just, like, far and above what you can currently do with the imaging approaches. But, you know, it is a really exciting area. And, like, in principle, it can certainly drive down the cost per cell really far. For some applications, it is very compelling, not really the same applications that Chromium is used for. And so for that reason, for us, it's all good news. Just use more, right?

Got it. And then I guess speaking of Xenium, your protein code detection capabilities were launched recently. Just wondering what early traction in customer feedback or reception is sounding like. I think based on our channel checks earlier this year, it seems like a lot of researchers have gravitated towards a separate spatial transcriptomics imager and a spatial proteomics imager. So just wondering what the research community is thinking about a co-detection on one platform nowadays.

Yeah. So first of all, very early. I mean, we just started shipping the product and the initial feedback has been quite positive. But it's too early to talk with a whole lot of substance yet on that. I think your general question around... people kind of converging more toward having separate platforms. I mean, I think that's probably true kind of in the current sort of environment, but I think that's more of a function of the technologies that are available as opposed to necessarily customer interest. I think what customers would ideally want is a single platform that can do from the same section, actually do kind of both modalities or more than that. We've seen that fairly consistently. Remember, Xenium can actually do also low-plex protein, which it has been since just about the beginning. You can take your section, do the RNA analysis, and then do immunofluorescence afterwards in the same section. And people do this all the time. And so we do expect that there is a fundamental customer need to do both. The issue is that there hasn't yet been a technology that did it in a way that wasn't compromising things on both sides. In the absence of that, for sure, I think what we've seen in the market is that people then get two different platforms and do separate analysis. But I don't think that's necessarily what the ultimate future is going to hold.

Got it. And can you talk about your approach here? It seems like you guys are using small panels with the option of combining all of them for detecting 20 proteins, along with around 500 RNA. What is the thinking behind the strategy here? And when can we expect to see protein co-detection with 5K prime?

Yeah, so again, I haven't talked about more details of the roadmap and when the different things are going to be coming and in what sequence. I would say, I mean, maybe I just emphasize a couple of points. First of all, there is a lot of, you know, when you talk to customers around how many proteins they really want and need, and obviously it's the first order, the more the better, right? Like that's what everyone wants. But then, you know, when you press really like what is the, what is the real number that you need, given that you can get a pretty comprehensive overview of your sort of biology from RNA, you know, sort of something like one over 20 is like really where there's sort of like, particularly kind of where the need really coalesces, right? So beyond that, it's better to have more, but it starts getting more marginal. So there's sort of one part of the equation. And the other thing to just consider is that it's not that the platform itself is like limited to those numbers, right? Like with Xenium, with this approach, you can do a lot more proteins for sure. But like where the challenge is usually in these things is actually content where you've got, you know, put together the right set of antibodies that work really well together in concert and, you know, getting the appropriate validation. And, you know, this is the kind of thing where we're, We're showing the capability. The first panel is very compelling on its merits for immuno-oncology for a number of applications. We've heard that from customers, but we're also giving the means for customers to kind of evolve and build their own as well over time. And so we'll see kind of how that goes, but we do expect that over time both the Plex level and diversity of panels will increase as we go forward. Got it. Great.

And then on the topic of 5K Prime, how has the traction been there? And are you starting to see any indications for customers that prefer smaller size panels given some of the ongoing budgetary pressures?

You know, it's kind of interesting. The panel has been more like it's been consistent in that people like 5K and it's been trending that way. So if you compare you know, like right out of the gate kind of exceeded our expectations. And then if you look at kind of year over year, people are, the relative sort of utilization has been favoring, has been trending more toward 5K versus kind of the smaller panels.

Got it. And then I guess one of the interesting things last time on the 2Q call was you talked about the Zunion utilization ramp. and it was coming from both early adopters and new users. So I was wondering if you could share some metrics on how this is progressing and what's really driving this increase.

Yeah, we haven't shared the specific metrics. I can say qualitatively it's been very encouraging to see the patterns, and it's got multiple vectors here that are encouraging for us. You know, the average utilization is the number of runs people are, you know, kind of scaling up, and that's across both, like, people who are just kind of ramping up early, which you would expect them to increase their usage as they're learning the system, as they're building their necessary panels, but also people kind of in the middle of their lifecycle, and also kind of our earliest users are still ramping up as well, which is, again, kind of an encouraging sign. And then also, you know, there's the number of runs across the user base, but then also kind of how much they're spending per run has also been increasing by virtue of people doing more 5K, relatively speaking. So all those trends are all kind of pointing in the right direction with utilization, which makes us fundamentally really excited about the future of the platform. Because again, in the current environment, when instruments are really pressured, it's a little hard to tell from the instrument sales. but utilization is all pointing in a really encouraging direction. That's great.

In terms of union placements, I know in the past before all of this stuff happened in the market, you guys have pointed to a range of about 50 to 70 units placed per quarter. I was just wondering once the market recovers, is that something you guys would still expect going forward?

Yeah, I mean, for now, we've been in the past few quarters, we've been sort of in that range, low 30s, and we hesitate to make predictions until there's more clarity on the macro and so on. But, you know, first principles, like, again, or like the signals that we're seeing there from the market, there's a lot of interest in Xenium, and certainly once the environment is more amenable, we do expect it to, for things to improve going forward. And, again, fundamentally, just have strong, really, really strong conviction in this platform and the utility that we're seeing with the customers.

Got it. And then in terms of your spatial consumer growth, I think it's primarily driven by Xenium. Maybe we can touch upon how Vizion and Vizion HD has been doing at late and maybe what the current mix is between standard versus HD.

Yeah. I mean, Vizion has been doing well as well. I don't want to kind of gainsay what's happening there. It's a nice set of applications, good resonance with customers and all that. I do think that there is, as we look forward, as we're seeing with customers, are planning to do, Xenium is getting more and more mindshare, and also in terms of the kind of technology development, there's a lot of, a lot more kind of headroom there as well, and fundamentally, so, you know, Xenium is strongly getting more and more sort of focused, but Peezing is doing, continues to be like a robust platform. You know, by and large now, people have switched over to HD, SD still kind of has a, Has a minority of kind of usage, but it's shrinking and more and more High definition Which is kind of what we expected got it and then in terms of the spatial competitive landscape with litigation Litigation headwinds now lifted for competitors vision and nanostream.

Are you seeing any shifts in the competitive landscape on the spatial side? I

No, not really. I would say the pattern has generally, it's sort of like, what do you think is rapid continuation of previous patterns? Like, people are increasingly recognizing just the superiority of Xenium relative to other platforms. The data quality, the sensitivity, the specificity, the robustness of the workflow, the consistency of the data, all these things are all like really, really strong resonance and feedback from customers. And I think that sort of through the awareness of that and recognition of that has been spreading and we feel really good where we are on the market. And I don't think there's been any real change to that sort of trajectory. Got it.

And then on the last call, a scaling up of large-scale studies on both your single-cell and spatial side. I think on the spatial side, you highlight the Genome Institute of Singapore in your project, the tissue map. Can you share some more color there and Xenium's role?

Yeah, no, it's like this is a real exciting project. I'm like, and it's a couple of reasons. First of all, the Genome Institute of Singapore is like they're very much a forefront of like really deep expertise on single cell and spatial and genomics research in general. some of the best people in the world. They also are really intimately integrated into the healthcare system in Singapore, which in itself is really, really great in terms of keeping track of all the clinical data and having it all be integrated. And so it's a really, really great place to do a large study of the kind that we've been excited to kind of set up the foundation for translational research and ultimately clinical applications. In this case, the study is of 2,500 FFP samples in cancer and autoimmunity. to discover biomarker signature for drug response, disease progression, and also finding drug targets. So I think it's a really great example of the kind of research that will happen, and we know there's a lot of efforts around the world along a similar direction. Again, scaling up and kind of pushing towards translational side. You also touched a little bit on the single cell side, and that's another huge way Both, there's on the translational side, we're like running these large-scale experiments. We just had a press release with a company called Klyceek out of Wiseman Institute in Israel to do this large clinical trial to basically to study bone, being able to diagnose kind of bone marrow diseases from blood roots instead of bone marrow taps. There's lots of other work like that. And also, I alluded, I mentioned this earlier, this whole big wave of building virtual cells, or really AI models of biology, which is necessitating running very, very large-scale experiments. And you're talking about billions, billions, you're talking about tens of billions, those kinds of cells. And that's a huge wave that we see coalescing around the world as well. Got it.

I realize we're close to time, but if... Let's give you another two minutes. In closing, what are some things that you want to highlight to investors just to make sure they focus on this amongst all the noise in the market today?

Yeah, I mean, it is true. There's certainly not a shortage of news and news flow and kind of macro environmental things one could try to track. But what I always do myself and encourage the team, kind of zoom out and think about the fundamentals, right? The fact is, the fundamentals of the business are incredibly strong. We are the single cell, like I've said before, the cell is the fundamental unit of biology. And single cell and spatial approaches are fundamental to measuring biology. And I see, ultimately, in the future, if you're starting with any kind of tissue, any kind of cell, you really need to be analyzing at those those approaches, which is why I say it's the future of biological research, ultimately the future of drug discovery and the future of diagnostics. And those are the technologies. That's why when you look, when you survey, do these customer surveys, where you look at where the sort of people are focusing and where the attention is going to be in research, single cell and spatial feature as probably the most promising franchises in all of tools. So from that perspective, and then when I think about from that perspective, given that we're probably in the best strategic position we've been as a company ever. We've got a great market position. We've got full complement of technologies now. We have an incredibly strong balance sheet and ability to deploy it and to use it to um to navigate both this current environment and invest for the future to take a full advantage of this obviously is a massive opportunity going forward