10x Genomics at Bank of America 2025 Healthcare Conference: Navigating Growth Amidst Challenges

On Tuesday, 13 May 2025, 10x Genomics (NASDAQ:TXG) participated in the Bank of America 2025 Healthcare Conference, discussing its strategic initiatives and market challenges. While macroeconomic pressures and policy changes have impacted customer funding, particularly in the US academic and government sectors, 10x Genomics remains optimistic about its long-term growth, driven by innovations in the biopharma sector.

Key Takeaways

• 10x Genomics suspended its full-year guidance, shifting focus to quarterly forecasts due to funding uncertainties.
• Q1 saw a 22% growth in China, with strong demand for Chromium and spatial consumables.
• Structural and strategic changes include a dedicated biopharma sales team and an 8% reduction in company breadth, affecting R&D the most.
• The company is optimistic about future growth, particularly in biopharma, aiming for parity with its academic market presence.
• Customer loyalty is strong, with positive feedback on product quality and service.

Financial Results

• The company discussed Q1 results without specific revenue figures but guided a 1% sequential increase for Q2.
• China experienced a 22% growth in Q1, indicating strong market presence.
• Despite a flat top line for consumables, robust volume growth in Chromium consumables and spatial utilization were highlighted.
• Full-year guidance was suspended due to macroeconomic uncertainties, with a shift to quarterly guidance.

Operational Updates

• A fully staffed Xenium selling team is in place, generating leads and supporting market expansion.
• A new team focuses on biopharma accounts, reflecting strategic market shifts.
• An 8% reduction in company breadth was implemented, with R&D most affected.
• The European business faced timing challenges in Q1 and Q2, but is now on a stronger trajectory.

Future Outlook

• The company expects to drive volume growth with current product pricing and configurations while exploring market expansion opportunities.
• There is optimism about achieving significant growth, with ambitions to match biopharma business size to academic presence.
• Continued robust volume growth is anticipated, leveraging new products and commercial infrastructure.

Q&A Highlights

• Spending attenuation among customers was observed from February to March.
• Changes to the sales force and a dedicated biopharma team were reiterated.
• The Visium HD platform showed significant demand, highlighting product superiority.
• Midway through the previous year, notable changes were made to vertical innovation.

For a detailed understanding, readers are encouraged to refer to the full transcript below.

Full transcript - Bank of America 2025 Healthcare Conference:

Mike, Host: And I’m excited to host 10x Genomics for our next fireside chat. I’m excited to be joined by Serge Saxonov, co founder and CEO and Adam Ketch, our Chief Financial Officer. Gentlemen, thanks for being here.

Adam Ketch, Chief Financial Officer, 10x Genomics: Thank you, Mike.

Mike, Host: Maybe just to kick things off, you reported 1Q results five days ago, two weeks ago, recently, relatively recently. Just give us a quick summary of how the quarter played out relative to expectations, sort of what you saw that developed over the Board that surprised you. Obviously, there’s been a lot of policy nuances. So just give us a recap to your start of the year.

Serge Saxonov, Co-founder and CEO, 10x Genomics: Yes. Maybe I mean, on the policy side, think it was more of the nuances, right, that transpired over the course of the past two point five months. So I will say like the first of all, there’s sort of two elements to the quarter, and I think it’s important to keep them distinct and appreciate sort of in turn, first of all, in terms of the obviously, the macroeconomic situation has changed pretty dramatically as we proceeded through the quarter. And I would emphasize that it’s both in terms of sort of the pressure on the funding that our customers have had and have felt and just sort of the procedures of like them getting the money and being able to spend the money, but also the uncertainty of what’s going to be happening going forward because the policy landscape has been is like rapidly changing also not articulated in terms of what to expect. And so that has been kind of a big story this quarter.

And I would say it like started roughly kind of February, starting in February, like sort of with the news of the IndiraCAP coming out and then subsequent sort of series of events. Now setting aside sort of the macro environment in especially U. S. Academic and government markets, the fundamentals of the business for us have actually performed quite well and like some really solid encouraging signs for us. And in particular, we’ve been talking for a long time about the single cell market and the inherent elasticity that we expect to see there.

And over the course of the past year, we’ve made actions through introductions of new products to drive lower price per reaction down. And as a consequence of that, in the first quarter, we saw a robust growth in reactions and volumes on the Chromium consumable side. So that was a that is a very encouraging great sign for us. And then on the spatial side, again, while the instruments were pressured to a large extent because of some of the macroeconomic issues, we had really, really nice signs on the consumable side, really great utilization. And there, like we’re seeing both in terms of the numbers on the revenue side, but also with our Xenium platform, we’re able to have great insight, be tracking our customers’ actual usage of consumables and that was often really encouraging.

And those, I would say, of that the volume growth on the Chromium side and the consumable usage utilization on the spatial side are the two arguably the most important KPIs for us going forward and those were very encouraged. Good.

Mike, Host: Maybe just sticking on that initial topic on terms of pressure on funding. We spoke mid February on your 4Q call, connected again at H EBT late February. So there are pretty regular updates throughout the quarter. You noticed any change in some of those utilization trends or sort of how your customers thought about funding as the quarter played out? Because a lot of it is tied to sentiment, right, and the uncertainty and the indirect cuts, the initial budget proposal, the back and forth.

So are you seeing any sort of stabilization or sort of return to normal or sort of like how would those A and G customers in The U. S. Responding more recently?

Serge Saxonov, Co-founder and CEO, 10x Genomics: Well, yes. So like as sort of these events started rolling out, February kind of getting into March, people we definitely saw kind of an attenuation of spend, right, among those customers. Again, I would say the instruments tend to get affected the most in the like higher CapEx items like Xenium, but others as well. People buy kind of initiation of new projects becomes more challenging for people. And yes, we definitely saw caution and people don’t stock up necessarily as much as they would have in the past, things of that nature.

And I would just emphasize that the environment is not just like I said, it’s not just like these specific things that maybe at the beginning kind of in our Q4 call, we’re talking about specific questions around the budget and questions around the indirect versus direct kind of allocation of the funds. The whole sort of ecosystem, the set of questions have become more systemic, like these research centers, universities are just not sure what is the shape of the funding situation going to be going forward. There’s a lot of procedural issues, procedural changes that are happening on a continuous basis. And so kind of putting people in a limbo kind of situation. And I hesitate to say that there has been sort of a stabilization.

I mean, we certainly the business continued, it’s continuing. I’ll believe that that’s at a lower rate. I don’t think anyone really knows in terms of like what is sort of where the new normal is going to be and how is it going to shake up.

Mike, Host: Maybe just expanding from that on that. One of the updates from the quarter is you pulled the fiscal year guide, now you’re focusing on a quarterly guidance. Just Adam, maybe for you, sort of like what’s the thought process that drove you to that? And I would say even on a quarterly guide, what gives you the visibility and the confidence to predict sixty, ninety days out given just how volatile and uncertain that markets are? Yes.

I mean,

Adam Ketch, Chief Financial Officer, 10x Genomics: I think for the second half, as we spend a lot of time with our customers, almost half of our business is U. S. Academic and government, so we’ve got large exposure to that customer segment. I think as Serge just mentioned, our customers just don’t have the visibility. There’s uncertainty certainly around budget, but then it’s these other procedural tools which are impacting their ability to actually get funds, you know, from US Treasury into into their accounts to be spent.

So we felt it was the most intellectually honest thing to do is to suspend guidance for the second We did, as you noted, put guidance in for the second quarter. What gives us confidence around that? We had a month in the bag by the time we provided guidance last Thursday. You know, it’s not pretty good trends there. And, you know, right now, we’ve got good visibility from a bookings perspective, good visibility in the implementation pipeline.

The guide that we provided is 1% up sequentially from Q1 to Q2. So 01/1938 to 01/1942 is the range, and we’ve got sufficient visibility to provide that at this time.

Mike, Host: Yes. I was going to ask on that quarter over quarter growth. I know there’s usually some seasonality as you go through the year, sales ramp, but just given some of the uncertainty, as Serge was saying, it really developed in March in February and March, like later through the quarter. You still think there’s enough of a buffer that you’ll still be able to grow quarter over quarter given that now you’re going

Adam Ketch, Chief Financial Officer, 10x Genomics: have a full quarter of U. S. And ANGI weakness? Yes. A couple of things that I would note.

I mean, we’ve got we’re off to a really strong start in Q1 in China. And it’s of doubt, when we grew 22% in China. The quarter, we’re off to another strong start in our business there. The team is doing a fantastic job even navigating some of the varieties of uncertainties. And most of the product that we’re shipping into China and selling into China is actually manufactured in Singapore, right?

So we’ve got good capabilities there that help us at least in these sort of uncertain times as it relates to tariffs. Our business in Europe is impacted really just from timing in Q1 Q2. So we feel pretty good about where that team is. It was an adequate quarter in Q1, but off to a stronger start. And we’ve got a fully staffed Xenium selling team now.

And so while it is a compressed needed CapEx environment more broadly, having that dedicated effort team doing a tremendous job getting leads, progressing those leads through the funnel. Obviously, it’s tougher to close in this environment, and we’ve got enough visibility to give us some confidence in that sort of one percent sequential step up quarter over quarter. Okay.

Mike, Host: And you just touched on ZM instruments, so maybe I’ll go there. Can you talk about placements in the first quarter? Obviously, there’s the macro impact.

Adam Ketch, Chief Financial Officer, 10x Genomics: Do you feel like

Mike, Host: have this visibility, do you feel like that excluding the macro impact, you would still be seeing really nice ramp in ZDN placements? Obviously, as dollars of revenues, it’s not

Serge Saxonov, Co-founder and CEO, 10x Genomics: the most important thing in

Mike, Host: the world, but from an installed base, the consumables pull through, you kind of need to sustain that placement engine to generate revenue the second half next year. So talk about what you see there, how that plays out for the rest of the year?

Serge Saxonov, Co-founder and CEO, 10x Genomics: Yes. Well, I would say like if you set aside the macro kind of issues and think about the underlying demand, like it is all indicators are there. And like Adam kind of mentioned, we have a healthy funnel that’s been developing. We do have a team in place now to fully prosecute on opportunity. It is a new team, especially for example, India just sort of fell in place this past quarter, AMR more a little bit early, but still kind of very fresh.

And it’s executing well and we feel quite optimistic about what it can deliver. And we do feel going back to the point I made about consumables, that is a good indicator as well. We have customers that keep well, old customers ramping up their usage. We have quite a few customers that are kind of heavy earlier users that keep bumping up against sort of the constraints of their existing fleet and kind of looking to expand. So that’s a great sign as well.

And we’re seeing a lot of new kind of opportunities emerging as well kind of across the ecosystem. So yes, like we do feel absent the sort of the macro environment and giving a bit of time to the team to kind of really gel in place, I think we should have a really good shot of driving more and more placements.

Mike, Host: Okay. And thinking about Xenium versus Visium, what you saw in the quarter and sort of something you talked about in the second half of last year as well is just can you talk about how those various platforms are ramping from a customer use case perspective? I know where I’m going with this is sort of the cannibalization question. We talked about this in the past where they’re not directly cannibalizing each other, but from an application perspective and also from a dollar perspective, there is some overlap there. So just give us an update on how you’re thinking about that.

Serge Saxonov, Co-founder and CEO, 10x Genomics: Yeah. So going back to, if you remind sort of a Glock of years back when we like were making started making this concerted investments in all three of our platforms, Chromium, Visium and Xenium, there are overarching premise here is like what single cell and spatial fundamentally are the future, this is how you can measure biology. There is a like fundamentally kind of a fundamental uncertainty around which applications and which technology approaches are going to be best for particular use cases, but the sum total of those really should cover kind of the range for us. And we kind of approach it with this epistemic in our field, like we know that it’s going to be uncertain for some other time and want to provide the full complement of solutions. And there were big questions.

No one really knew customers themselves. It’s new science, it’s new technology. And I think it was a big point of discussion, like when I think about a year ago with all the new product introductions we were making, how it was all kind of shaping up. I think we have substantially more clarity now, like as the year is progressing. We need to give it more time.

There’s a little bit it’s hard to do like totally fair year over year comparisons because a year ago was the kind of Q1 of last year was the one quarter for Visium HD, which was a huge, there was lots of huge pent up demand. So it was a big, big product right out of the gate. And so we have to get past those year over year compares. But when I talk to customers like recently, what I hear sort of two dynamics. First of all, they’re like, you know what, we were thinking maybe spatial would just complete over the next single cell, but now like clearly complementarity is like kind of the driving thinking, and there’s a place for both.

In fact, you kind of want to use both. And it’s more and more clear to us that sort of even face facial is resonating. Like Xenium is resonating in a particularly promising way with customers, and we see that that platform is as opposed to kind of over the sequencing based approach for approaches, which for sure have their place and a lot of building application. But we’re seeing kind of a lot of momentum behind Xenium and that approach, And especially kind of as complement with single cell, that is definitely emerging as kind of the way that people are looking to the science. Okay.

Mike, Host: You mentioned Visium HD, and you’ve had other you sort of had a very healthy spate of new product introductions over the last couple of quarters. Can you call out just sort of where you’ve seen the most incremental uptake and sort of what’s resonated with your customers? And then you just talked about Xenium and the benefits, maybe you can expand on that.

Serge Saxonov, Co-founder and CEO, 10x Genomics: Yes. So Xenium the Xenium platform itself was very powerful. Like you get to see biology the way that you could just not even imagine seeing. It’s like single molecule resolution with individual cells and tissues, very high plex. What we’re finding is that people are like with the launch of the five ks multiplexing panel last year, so capability of being able to 5,000 units plus also being able to customize some of those, some part of that is has resonated really well.

And in fact, a lot of people have been using the platform for discovery, kind of broad based discovery, as well as kind of targeted analysis. And so there’s sort of like a broad spectrum of applications that Xenium is now enabling. So that is definitely resonating. And it’s also kind of enabling a lot more interest on the translational side as well. I touched on this on the earnings call when people are looking at kind of the types of therapies of drugs and kind of thinking about what are the mechanisms of actions of particular drugs and figuring out why they especially in context of oncology, why they work, why they don’t for kind of thinking towards potential for therapy selection, definitely a lot of kind of areas like that opening up.

So there’s this little excitement about the Xenium platform. We also had a number of launches on Chromium last year, and those have come back with like really great feedback. GemX, the new kind of microfluidic approach technology that we launched, that has been resonating, great feedback in terms of quality of data, robustness, cost, everything is kind of doing well. And then FLEX, this is our chemistry on chromium as well that allows you to do things that you couldn’t imagine doing a single cell before being able to work with fixed tissues, in particular with EPYCD and being able to scale to really, really massive numbers of cells, enabling all kinds of new applications. So great feedback and kind of opening up these big AI models for biology, being able to work with translational samples for translational studies, things like that.

So those are like I would definitely point to those. Of course, there’s a lot more that we’ve launched in the course of last year.

Mike, Host: So you talked about GemX and some of the improvements on Chromium. Earlier you commented on lower price per reaction as being sort of a major catalyst in something you’ve seen in the quarter. That’s another big debate for a long time, sort of the benefits of that and how the price elasticity in this market and how there’s certainly been feedback from a lot of customers over time that the expense of single cell experiments is what’s holding them back. How do you feel you’re making progress in addressing that concern with your customers? And is that, you know, it’s a fine needle to thread, right?

Because if you take it down too much, you’re going to essentially cannibalize your own market and just reduce the TAM opportunity. So, you know, are you finding that sweet spot where you’re to deliver more value while still keeping some of economics yourself?

Serge Saxonov, Co-founder and CEO, 10x Genomics: Yes. So that’s one of the reasons why Q1 results were encouraging to us in a pretty fundamental way, because you’re right, there has been a kind of a debate out there in terms of how much elasticity and opportunity is there with single cell. We have heard from the beginning always price as being like a critical bottleneck to greater adoption. I also believe from first principles that the cell is the fundamental unit of biology. This is how we should be measuring samples.

This is how we should be measuring the running experiments. And the opportunity has got to be much, much greater than what has been uncovered so far, and price is a critical unlock here. So from first principles, also our industry has lots and lots of examples of elasticity fundamentally driving greater and greater demand. And you’re right, it is the kind of thing that you need to be deliberate in terms of how you deliver that sort of elasticity. And we like to do it through the introduction of new products, and that’s what we did last year, sort of the GemIc introduction across the board, which kind of delivered much lower cost per cell and somewhat lower cost per sample.

Then towards the end of the year, we launched a new version of the Flex product that kind of lowered both cost per cell and per sample significantly. And also on chip multiplexing, which is a product that delivered a substantially lower cost per sample. And we’re seeing kind of precisely what you would expect, like these new products unlocking larger scale studies that were previously not really doable and clearly opening up new applications. And we’re seeing kind of on the lower side, new customers kind of coming in and adopting new products at a lower price per sample that were previously sitting on the sidelines or having experiments that would not run on single cell before. So still like early times, but the delta return are definitely showing up kind of everything is going in the right direction.

Now at this stage, so far, we talked about robust growth in reactions, is being kind of matched by the sort of the decline in average price per reaction. And so like we’re seeing roughly kind of flat in terms of overall consumable top line. But underneath that is a very robust growth in volume, which we expect to continue.

Mike, Host: And do you think you’re getting close to a point where that growth in volume will be sustainable without further reductions in price per reaction? Is there a sweet spot where you need

Adam Ketch, Chief Financial Officer, 10x Genomics: to dial that back further?

Serge Saxonov, Co-founder and CEO, 10x Genomics: I think for a while, I mean, there’s multiple dynamics going on here. I think there are definitely reasons for optimism going forward that we can keep driving volume at these prices with these configurations of products. Not to say that there is not a great opportunity going forward to keep expanding the market as well. Okay.

Mike, Host: Maybe tying together what you just said about single cell price per reaction as with underlying customer demand and then on the Xenion feedback, I want to talk about competition, increasing competition either in the market now or talking about product launches later in 2025 and 2026 from a myriad of players both in single cell and spatial. So increasing the kind of marketplace, how do you feel about the positioning of your portfolio as it stands today? Where do you see your best position? Where are you sort of paying the most attention to potential competitive threats? And sort of how do you stay ahead of that?

Serge Saxonov, Co-founder and CEO, 10x Genomics: Yes. Well, so first, would point out that actually, like our spaces have always been quite competitive. Different years, different times, it kind of waxes and wanes a little bit. But overall, when we first entered single cell, there was lots and lots of players there as well. We won ultimately by virtue of having great products.

And our kind of obsession with improving those products over the years. I feel like at this stage, when we look at the single cell landscape, yes, there’s been a number of players over the past several years that have been coming in. And there’s been a similar kind of dynamic where customers they try to other companies try to go and use kind of price as a wedge. Customers try them for that reason, but just about invariably, they come back to us for reasons of just much higher performance, better data quality, better workflow, much broader set of applications and much better customer service support and experience. And in fact, I would say given the launches that we had last year and all the sort of both improvements in terms of the product capabilities and us resolving a lot of the price issues that people have had, If anything, the tide has been turning much more in our favor based on the feedback that I’ve been hearing over the last couple of quarters from customers.

So I feel really good about our position in single cell for sure, like certainly not resting in our laurels and keep investing in customer success and very excited about the latest slate of products, and we have more coming later in this year to drive more scale, more incremental kind of flexibility and capabilities. And then on the spatial side, it is also like when we entered, especially kind of with the Xenium platform, it was a very crowded landscape. I think at this point, we feel really good about the resonance of the platform with customers, the feedback we’ve been getting. And it’s being recognized more and more pretty much in the work right now, just the superiority of this new platform out there. So when we go on there, we don’t really I think our while competition is there, like we don’t really lose deals to them.

We feel and if anything, the tide is continues to go strongly in our direction in terms of and on North Star delivering great value, great product performance, workflow and customer experience, I think is what keeps us ahead is going to keep us ahead. We fully intend to win going forward.

Mike, Host: Yeah. Just a comment there on on your your sentiment that the the tide is turning in your favor. I was going to ask. Do you comment on especially in single cell competition often going from a price angle In the current macro environment, with budgets under pressure, with a lot

Adam Ketch, Chief Financial Officer, 10x Genomics: of uncertainty, is price becoming more of a factor?

Mike, Host: Or has that not really happened?

Serge Saxonov, Co-founder and CEO, 10x Genomics: Well, so certainly the budget’s a title, right? But you have to be cognizant of that. We have but what’s been helping us, the new products that we have that which are allowing us to deliver the price that the customers need and as good as any of the pricing that our competition is trying to get in there. So I don’t think we are any longer disadvantaged when it comes to that. We also have like a great sales force and especially after the changes we made last year, And we have given them sort of the imperative and the philosophy is to be partners to our customers and accommodate them in this time, which allows us to keep driving, keep winning in the marketplace for sure.

Also, I mean, there’s also an effect when you’re sort of in these kinds of times when your budget is uncertain. People also, they like to go with a brand that they know, that they trust, and no one knows single cell and spatial better than us. Yes.

Mike, Host: Maybe on the Adam, I’ll pivot to you on the topic of Salesforce and some of the the reorganizations there. Could you just talk about, you know, how that’s evolved? You know, what stage of that you’re in? Yeah. When you should start seeing the benefit of that?

And I also want to tie that into the, 8% breadth that was announced in the quarter. Just how do you balance those two factors? How do you make sure that you’re not cutting too much in

Adam Ketch, Chief Financial Officer, 10x Genomics: the current environment? Yes. Well, I’ll take the first part of question, and I’ll bring you on the second. Yes, we made significant changes about midway through last year to the vertical innovation. And most importantly, we added a dedicated team selling the biopharma accounts.

We also had a dedicated team that have now a team selling Xenium instruments. And prior to that, essentially everyone was selling everything, right? So having this kind of segmentation, particularly given, you know, the complexities of selling into biopharma accounts, you know, it’s critical, and then obviously bringing in some new agencies and CapEx specialists has been very helpful. Obviously, market’s not doing them or us any favors right now as it relates to CapEx, you know, and pressures, particularly kind of that xenium type price points, but it’s been fantastic having them on board. The teams are effectively fully staffed at this point, you know, so we’re actually full confident.

Some of them filled a little bit, you know, slower than others, right? So the GMAT and the media, for instance, really just got sort of full here in Q1. So there’s a fair bit of training ramp time, those types of things, but yeah, really confident and more confident than ever than the right decision that we made midway through last year. Serge, maybe on the

Serge Saxonov, Co-founder and CEO, 10x Genomics: Yes. So on further reductions that we had. We did obviously, in this kind of environment, given them predictability becomes particularly important to be really careful with the spend. And we took a really, really tight look at all aspects of our P and L. And we’re working really hard about prioritizing the capabilities and where we could make adjustments.

And mathematically, in terms of where the cuts came from, R and D got sort of was affected the most. We only we made sure minimize the impact on our direct sales force. We do feel really good about where it is and where it has gotten and the investments we’re making, and that it’s serving a great foundation for us to both get through this kind of time and also grow for a long time going forward. And like the fundamentally, again, outside of being particularly careful not to kind of undermine the efforts we just went through. On the sales side, it was kind of across the company.

Okay.

Mike, Host: We’ve got a couple of minutes left, so I want to kind of bring these things together, Serge. But you talked about earlier in terms of pivot into pharma and biotech and some of the translational and the opportunity there. I know it’s a topic that you and I have talked about for many, many years in terms of like the long term of where single cell and spatial could go, where some of these technologies could be and should be implemented. I remember IPO and pre IPO days, you can talk about the PCR market and thermal cycles and sort of the ubiquity of some of that and research and how do you get single cell and spatial there. So you know, 2025, if you look back at the progress you’ve made the last, you know, seven five, seven years and you look at the opportunity ahead, what needs to happen to take some of these technologies to the next level, sort of like bridges from where we are now, obviously, with a lot of the macro noise and like talk about the

Serge Saxonov, Co-founder and CEO, 10x Genomics: long term opportunity and what needs

Mike, Host: to happen to get these technologies to the next level.

Serge Saxonov, Co-founder and CEO, 10x Genomics: Yes. So I think one of the critical issues has been for us is that the technologies were fundamentally not were challenged in terms of working with the samples that you need to work with, like when you talk about translational pharma like you. Single cell in its initial conception and the initial technologies work on fresh tissue, fresh samples. And while you can collect those samples in the clinical context or the professional context, it’s a lot more challenging. So it sounds like kind of a simple, almost trivial kind of issue, but the fact is a whole bunch of our customers have tried to implement various workflows in a translational setting and it just becomes really like not really feasible.

And now over the last couple of years, we’ve released all of our spatial products are FFP optimized. And even on the single cell side, I mentioned with the flex technology we can do, we can analyze FFP samples, and that is resonating really well with our customers. So there is a certain amount of like kind of baseline product capability that was critical that is now in place. It is also, if you think about sort of the notion of routine use, pricing has to get better as well. And the way that these technology single cell was like for us, it was priced in a more sort of conventional workloads, it was like quite it was more like an appropriate technology that you use once in a while as opposed to routine use.

And now it definitely is at the point where you can use it routinely. And we are really encouraged in terms of where it can go. Then you also need in terms of opening up of applications, right now that we have those capabilities. And we are seeing like across the whole biopharma continue, drug development continue, there’s applications from target identification to drug discovery, to preclinical, to clinical trials. So that gives us a lot of optimism that there is a huge application space to kind of pull in these tools.

And then you need to have the right kind of commercial infrastructure, the channel to go after that. And that was something that we had made attempts at over the course of the previous five or so years, but never really leaned into sufficiently to kind of, in some sense, the band aid and actually be organized the whole organization to create the appropriate incentive, appropriate structure and appropriate like singular focus to go after. We have that in place now. So all of those kind of elements now kind of make me feel they’re converging and make me feel optimistic that we can go forward and have an outside growth. Now it’s not the kind of thing where you flip on a dime and the next quarter we have tons more business in biopharma.

Will take quarter after quarter of sustained progress to get there, but I am optimistic that in not too distant future, we can get to where this is at least an equal to our academic presence in size, the five parameters.

Mike, Host: Great. We are out of time. So thanks so much. Thanks everyone for joining us. That’s a great place to end it.

Serge Saxonov, Co-founder and CEO, 10x Genomics: Thank you, Serge. Thanks, Mike. Thanks, Great having you.

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