Bio-Techne Corporation (TECH) Earnings Call Transcript & Summary

Hi, everyone. This is Rachel Vatnsdal from the Life Science Tools and Diagnostics team here at JPMorgan. Today, I am joined by Jim Hippel from the Bio-Techne team. This will be a standard 40-minute presentation, 20 minutes of slides, followed by 20 minutes of Q&A. For those of you listening online via webcast, feel free to submit your questions via the Q&A function. And for those of you in the room, we will have mic runners. So if you have a question, feel free to raise your hand. With that, Jim?

Thank you. Good morning, everyone. Thanks for joining us this morning, and thank you to JPMorgan for having us for the conference. And unfortunately, Chuck fell ill, our CEO, Chuck Kummeth fell ill yesterday and was still recovering this morning. So I got the call to take his place. And in doing so, he reminded me that 9 years ago was the first time ever in the history of our 40-year company that we had presented at JPMorgan, and we were in some conference in the size of a closet that, I think in the attic or something like that, and there was like 12 people who showed up for our presentation. So he was really excited that we had graduated the Colonial Room after 9 years. And so now he's very disappointed that he can't participate in their graduation, but I'll do my best to not babble through this too much, given I got the call this morning and share with you the excitement that I know Chuck has for our company and I do as well. So with that, our tagline, where science intersects innovation. At our core really is about the science and not me and be it not else or not a nonscientist, I am amazed every day by our people, out of 3,000 employees, many, many, many of them, high percentage of them have PhDs or other very advanced degrees in science, and they're extremely passionate about the science. Many of them have worked with our products over the past 30 years themselves in the field, whether it was an academic or at other institutions as customers. And that engagement and that association with our products throughout their career, makes them ambassadors for our products with our customers and vice versa. And really -- it's really an amazing partnership between our customers and our employees with regards to helping together advance science to help save human lives. It really comes down to that. So it's something special. Of course, though, we can't proceed without all the safe harbor statement. It's out there on our website, of course. I do encourage you to read that following this presentation. All right. A quick overview of the company. I think of our company, I try to describe it, friends and family is we're the picks and shovels of the life science tools area, but not just any old picks and shovels. We're high-value picks and shovels. We're the necessary ingredients and analytic tools that are necessary for practically any research experiment to have success. At the core of our product portfolio, you see there on the right is proteins. And for the better part of the first 30 years of our company, we were known as a protein company. We -- as far as I can tell, pretty much it was, if not the first, one of the first companies to make proteins commercially available for researchers in life science. Our high-quality proteins, from them we make a vast menu of high-quality antibodies and those high-quality antibodies come together to make a very high-quality immunoassay. And again, for the better part of 30 years, those 3 components, proteins, antibodies and immunoassays was the essence of our company. Around roughly 9, 10 years ago when Chuck joined, and then I soon followed, we were -- we had the direction from the Board to try to take this company to the next level, use its amazing cash flow to expand into adjacent areas with perhaps more scale, more higher growth opportunity, but not get away from our core. Let's stay in our reins of technologies and applications that still leverage our core scientific knowledge of reagents and analytical assays, and so our first foray was actually in instrumentation and instruments that automate manual assays and make the lab productivity much greater. From there, we added on, what I'd call, Genomics assays, we leverage our assay experience in the genomic space by buying a company called ACD, and that area of genomic assay specifically is in spatial biology. And then continue to add on to our portfolio by going further downstream, but with much -- even much higher potential scale into molecular diagnostics and liquid biopsy, which we believe is the next generation of where diagnostics are going. And being a -- or a leader in immunoassay scientific knowledge for 30 years. At the end of the day, a diagnostic is nothing more than a clinical application of an assay. So it's not necessarily by any means, out of our scientific wheelhouse and a much bigger market to potentially grow into. Last but not least, we have our Diagnostics Reagents and controls calibrators business, nice healthy study business that leverages our reagents for diagnostic controls and other assay purposes for practically every diagnostic instrument maker in the world. And interestingly enough, this company was actually founded on diagnostic control, specifically hematology controls. So it was a very small part of the company early on, but it was the science and innovation that came out of the byproducts used in the manufacturing process for hematology controls that gave birth to our entire protein business. So some people ask, why do you even have that? Well, we wouldn't be here without it, quite honestly. In the left-hand side of this slide or the middle of the part of the slide, you see the revenue streams and where they come from, from a business model perspective. Roughly 90% of our revenues are recurring in nature in the form of consumables largely, but also in services and royalties. A little over 10% is derived from instruments. But I think even more important is the recurring revenue that is derived directly from those instruments, about 10% of our recurring revenue as a company is derived directly from those instruments. So there's a nice consumable tail associated with those placements. With regards to geography and end customer, roughly half of our customers now are biopharma. If we go back 10 years ago, it was much more of a 50-50 split between biopharma and academic. We've been growing in both, but we've been growing much faster in the biopharma and a lot of our assays and end markets have been more purposeful geared towards that biopharma market because it tends to be more well-funded than academic, right? OEM makes up -- I'm sorry, academic now makes up a little over 20% of the company today, still a very important piece because so much of the discovery innovation still starts with academic before ever gets into biopharma. OEM is roughly 15%. That pretty much mirrors in line with our diagnostic reagents business, which again is mostly an OEM business. And then finally, distributors make up roughly 15%. And again, that mirrors very closely to our Asia business, which is mostly transacted through distributors. On the geography side, Americas make up roughly 60%. Europe is roughly 1/4 of our business. And Asia is approaching 20% and more than half of that now is China. Like you hear from many of our peers, Asia is by far the fastest growing geography for us in China in particular despite the current hiccups and political hiccups that happened for now and from that time of time, it's amazing innovation comes out of China. They want to be a world leader in health care in the next decade and the governments are putting their money where their mouth is. And so it's been growing 20% plus for us the last 10 years, and we don't see that slowing down anytime soon. I give you another perspective on that. China 10 years ago, I think it was around $20 million of business for us, and now it's well over $100 million. So that's the kind of growth we've been seeing out of the China item. It's still really small at only $100 million compared to the rest of our geographies. So that's why we think there's a lot of growth remaining there. In terms of our kind of overarching strategies for growth, these have kind of formed over time, not dramatically different, but as we grow as a company and expand on horizons, we tweak them from time to time. But it's still pretty much the key strategies of core product innovation. I mean with the scientific community we have working for us, the innovation is amazing, and it's channeling that innovation that can be the challenge sometimes, but we produce well -- hundreds of new products every year, and you need to, to be able to stay on the forefront of where biology is going. Geographic expansion, we already talked about that, particularly as it pertains to Asia. And of course, the bolt-on M&A is how we have become the multifaceted company we are today versus just the reagent and ELISA business that we were 10 years ago. And then this is something we've added recently. It's not something which we added, it's always been part of our strategy. I think we're just making it much more visible externally, and that's our world-class customer service or customer journey. I've told you already about the close association our employees already have with our customer. But it really is amazing, and it's quite humbling when I'm out with our sales reps or our customer care group, and they are much more consultants than they are salespeople, and give another example, we've had instances where customers have called their customer care group. They can't get a certain antibody to work for an experiment they're working on, and our customer care group will call the scientists that made that antibody and have them get on the phone and walk them through the experiment. So that's the kind of I call white glove service we try to give our customers, and it's something that I think we probably make that a differentiator from any of our competition. And then last but not definitely not least, none of this matters if you don't have the people and you don't have the passion of the people and you don't have the culture to allow that passion to turn into something -- to turn into innovation and something meaningful. And that's something we worked really hard on as a leadership team in the past 8, 9 years is to -- given that we're less than 1/3 of our company, more like 1/4 of our company is only the original company from 9 or 10 years ago. And much of it has now come from many different other companies. I think there's like 17 or 18 acquisitions altogether. We kind of felt we needed to create a new culture where everyone felt like they were included. And frankly, the old culture was old. It was a bit stale. And maybe not so enlightening for our employees, in particular. So we've done a lot of work to build a culture, and it takes often decades to do that. I think we've done a really good job doing that in less than a decade. We call it our EPIC culture, and EPIC is a -- it stands for empowerment, passion, innovation and collaboration. And we take that very seriously. We evaluate all of our employees on those key 4 behavioral attributes, both how they interact internally, but also how they interact with customers. Our employees when you ask them, our frontline employees and our scientists, what are you most proud of about being part of Bio-Techne is that they'll often tell you they're most proud that they actually enable saving lives. They really feel like they're enabling their customers and are part of that solution, saving lives. And so with that kind of aura over the whole thinking and mantra of how our employees think about what they do every day, that trickles down into all aspects of sustainability. And I can go on and on about the individual and group events that go on to help out the community, help out our environment. As a management team, we take very seriously, of course, the diversity of our workforce. But I'll be honest with you, that was something that Chuck and I didn't have to change. It was already -- that piece of it was already well embedded within our culture even 10 years ago, and of course, the governance of our Board. So if you haven't already, I recommend we did our very first fairly extensive ESG report that went on, I think, this last fall. It's posted on our website. And I think it will give you some really good colors to how we think about this. It's not just a metric. It's not just the flavor of the day. It's actually something we've always, as a culture kind of felt strongly about. And I think it's great that the investment committee in particular is starting to hold companies more accountable for this. And so we are in the process of coming up with the baseline and quantitative metrics so that we can be more quantitative about our efforts in this area as opposed to just qualitative and go to the next level of holding ourselves accountable. So look for more on that in the future. All these pillars and strategies mean a lot to our customers. They mean a lot to our employees. But I get it, they won't mean much to our other important stakeholder, you in this room, unless it comes with some sort of financial -- strong financial performance. And we're a firm believer that you take care of those 2 stakeholders and focus on that, the output is the shareholder stakeholder will come right along with the ride. And that's what has occurred in the past 9 years. You can see our organic growth rates have increased practically every year. Over the past 9 years, you got that wicked COVID blip that occurred when that it first hit. But when you normalize for that, it's kind of the same trajectory that we've had before. And what we're also proud of financially, I know I'm proud of financially is -- and those who research our company, all you'll see this is the very strong profitability of our company. We don't grow for growth's sake. We grow -- I shouldn't say we grow to make money. I think the fact that we're so profitable is because of our belief that we're -- we only want to add solid value and have highly differentiated products, meaningful added value to our customers. And by definition, when you have that, you tend to have higher profitability than average. And our profitability has since consistently been in the mid-30s. It's been range bound from low 30s to high 30s throughout that last 10 years depending on when we do acquisitions and then they ramp back up again. But I'd say mid-30s has been a pretty good overall average over this time period, which is, I believe, higher than average for sure for our space. And you can see the ramp on operating income that's occurred with that revenue because of those op margins. And I think it's important also to see that the cash flow from operations practically mirrors our adjusted operating income. So our quality of earnings is also very, very good. All right. I'm going to dive a little deeper now into some of the product categories. We're divided in the 2 operating segments. The largest segment is our Protein Sciences segment, and this is where our legacy businesses reside, our proteomic research reagents, so our proteins and our antibodies. And that's where our proteomic analytic tools products portfolio resides, which includes our legacy immunoassays and all of our instrumentation platforms. Down below, you see the key brands. R&D Systems was -- it was and is the key brand for our company. It was the only brand practically for the company 10 years ago. Our customers call it a gold standard brand. So we tend to do that too, probably a little bit egotistically, but our customers actually tell us where the gold standard R&D Systems. And then within instruments, ProteinSimple is the key brand there, simplifying the work of our customers and their assays. Diving a little bit deeper on proteins. So you heard me talk a little bit about the quality of our proteins. What does that mean? I guess in my layman simplistic terms, a quality protein is highly bioactive which means, in my again, layman terms, it's very much alive. You can make proteins all day long that are essentially dead and don't do anything for you in your experiment. We take pride in making sure our proteins are highly bioactive or they don't leave our facility. And that way, even though our reagents may cost more, our customers may get 10x to 25x more research use out of any given protein, perhaps compared to the nearest competitor. Also, a high-quality protein has strong lot-to-lot consistency. What does that mean? That means when you make a beaker of proteins here that might last for a year or so. And then the next year, you make another beaker, are they the same proteins? And we're making reagents that are essentially alive, right? And so making it exactly the same is an extremely difficult thing to do, but extremely important so that researchers can have the same results time and time again, using the same reagents. And that's something that we also work very hard at. And it's very difficult to replicate. That's why taking our PhDs 40 years of cumulative experience to be able to perfect this and it's why we believe we're ahead of any of the competition in that area. We make over 6,000 proteins, so it's a very large catalog. Not any -- you're not going to make a business in this business if you only make 1 or 2 proteins. You have to have a very vast catalog as research could go in all kinds of different directions. Very highly bioactive quality proteins make high-quality antibodies. So therefore, we have also have -- we're also known for our high-quality antibodies. And we also have a very vast catalog of antibodies. We believe we're at top 5 supplier of antibodies in terms of SKUs with over 400,000 antibodies available in our catalog for customers. Switching over to our proteomic analytics tools. So we have our immunoassays here, and mentioned before, good quality antibody makes a quality immunoassay, and immunoassays are made from antibody pairs. So if you pair up 2 very high-quality antibodies, you're going to get a very high-quality immunoassay, and our ELISA, immunoassays, again, our customers say this refers to as a gold standard immunoassays in terms of their ability to identify a target with extreme accuracy. The automation tools that we now have in our portfolio, we have Simple Western, which is a tool that automates the Western blot process within a lab. It's a very manual, kind of messy, lengthy process that can take up to 2 days to do. We have the only fully automated solution that takes that process down to 3 hours at a push of a button. This became extremely -- this flew off our shelves as you would say, when COVID first hit and our customers couldn't get in their labs or maybe could only get in their labs once or twice a week. All of a sudden, they really understood the value of this instrument where they couldn't spend 2 days doing the Western blot at that time. We have a biologics portfolio. This is the one instrument where we actually play outside of just pure research, but actually are in the QC line within the biologic manufacturing, and that those instruments are used to measure protein purity, charge and identity. Simple Plex on the lower left, just like Simple Western automates the Western blot process. Simple Plex automates essentially the manual ELISA process and can do plexing of those manuals ELISAs on multi-targets. Where a single manual ELISA might take 6 hours for a single target, Simple Plex can do multiple at the same level or even better, perhaps, I can't use the right terminology, but I call it accuracy for lack of a better word, at the push of a button in 1 hour. And then our newest addition to the family of instruments is Namocell. We acquired this technology in the start of this fiscal year. And this is a single cell sorting and dispensing instrument. And what differentiates it from the competition is that it can do it very fast and very accurate, I should say, very fast, very accurate but without damaging the cells. There are instruments out there that can do it fast, but they have a low yield because they damage the cells in the process. And there are processes you can do it without damaging the cells, but they're more manual and very slow. So we're really excited about the opportunity for this and has a large opportunity within the cell and gene therapy space as well. So this slide -- this just to kind of show you that I just kind of walk through the key applications for these various instruments at a very simplistic level. And just those key applications by themselves are very large markets, and we're still -- you'll see in a moment, we're still at very low share and penetration in those markets. But what's exciting for all of us at Bio-Techne is that both our internal application teams, but even our customers come to us and share with us new applications they're using our instruments for that weren't necessarily intended at the time they were designed and launched. And as an example, all 3 of these platforms you see here are being used in various aspects of the cell and gene therapy manufacturing process as QC tools and different steps of that process that was never envisioned years ago when these instruments were launched. As specifically, on Biologics, it's being used for fractionization as a front end for mass photometry, something we never envisioned, but it's becoming a nice market for us. And the other one, I'll mention here is -- I'll mention Simple Western. It's being used even for quantitative immunoassays. It was intended for Western blot, but customers and our own application teams are finding ways to use it in -- for various quantitative immunoassays. And of course, our Simple Plex because it's simplicity to use, it's a very quick turnaround time and it's high accuracy has the potential to be a diagnostic tool in the future, and we're going through the process of ISO 1345 certification right now so we can try to make inroads into that market. This chart here is an example of kind of the role proteomics make from discovery to clinic or from discovery to therapy or from discovery to diagnostic. And this is kind of just a working example here of where we play along all avenues of that road map. Discovery in itself starts usually with a whole bunch of samples as you're screening a bunch of proteins but you're only looking at it -- you're only doing that with a few samples at a time. And as an example we show here is our antibodies are used in just about every high-plex proteomic technology that's out there today doing this. Our antibodies are the juice that makes many of those assays and scanning -- screening technology to actually work. As you go down further downstream, you get into the verification and validation, call it translational work, where you get to select few targets to figure out where you want to narrow down next, as many of you probably know, Luminex is a tool, it's very popular in this -- for this purpose. Again, we make the juice that goes into almost all the Luminex assays that juice being our antibodies. And we have our own line of Luminex assays high-quality assays that are growing very, very nicely. And then finally, you get down to the actual target that's going to become the therapeutic or become the diagnostic. So it's a very low number of proteins you're looking at but a lot of samples. And depending on what it is, you'll be using our ELISA for something very specific or as a control. And then you can go to our simple -- our Ella, our Simple Plex, Ella is the name of the instrument to speed that process up and do many at a time where you need that really precise validation. Okay. Now I'm going to move on to the Diagnostics and I'm going up so I'm getting out of time. I'm just trying to watch the clock. Diagnostics in general, so try speed this up. Segment. So this is where our Spatial Biology franchise resides, our Molecular Diagnostics. And then our -- we talked about Diagnostics Reagents and controls. I would think of this kind of our Spatial Biology is our foray into tissue diagnostics. Our Molecular Diagnostics is kind of our for way in the liquid diagnostics or liquid biopsy. That's kind of the way we think about it broadly. Start with facial biology here a little bit and dive into that. It's -- our key technology is we call RNAscope and DNAscope. It's a novel in-situ hybridization, ISH assay. In my layman terms, it's a genomic version of IHC. And IHC uses antibodies and looking for a protein in a sample where it resides spatially in the tissue that gives you a lot more information just is it in there or is it not in there. Problem with IHC and antibodies is it doesn't always work. So the idea is you can start looking for the antibody or instead of looking for the protein using antibodies, you can look for the RNA that essentially made the protein. And if you can't find the RNA, DNA, then you can stop looking for the protein essentially. And our technology enables to do that with an extremely high level of accuracy where you can have confidence, that's the case. And now there's a whole field, as you know, of Spatial Biology research interested not only understanding the proteomic side of -- in the tissue and where it resides, but also genomics. And the 2 together can be very powerful for research. And we're working on ways to actually combine those 2 technologies into one assay as well. Again, similar to the proteomics workflow, genomics works the same way, spatial works the same way. You start out with discovery, screening a lot of targets, high level of plexing, and that hopefully resides the output that hopefully comes into a few select targets that you want to do some serious work on to see if you can come up with a therapeutic or diagnostic target. We call that translational research. And then if you're really lucky with that, that hopefully then turns into something that truly becomes -- goes to the clinic and becomes a diagnostic or becomes a therapy. Where our RNAscope technology plays is in that -- right now it's right in that translational space. And our goal is for it to become the tool of choice also in the clinical space as these -- as this starts to form as a market and more success comes out of translational in the clinical. The likes of our friends, NanoString, Tenaxis and the like, we actually have some partnerships with them from a co-marketing perspective, and we see them as partners in a sense because we want them to keep on doing a ton of discovery because that brings downstream more translational work for our technology. All right, liquid biopsy. So quickly, I want to explain to those who may not be familiar, the core backbone technology or I should say, source of biological information that our platform uses for liquid biopsy and how it's different from the most common one that's used out there today, which is now cell-free DNA. The advantages that our scientists and we believe are that exosomes have as a source over cell-free DNA, start with the abundance of exosomes. So exosomes I think of them, there's a diagram there, but I think of them as like a bubble. A bubble that gets excreted from cells and then within that bubble is DNA and RNA that came from that originating cell. And they're excreted from cells into the blood stream into urine, spinal fluid, all your fluids of your body constantly. And the abundance of exosomes are like -- it's like 10x, 20x, whatever more than the amount of cell-free DNA that gets excreted from these same cells. So bottom line is you have a higher likelihood of finding what you're looking for because there's more of them. Secondly, once you find them, and you extract the DNA and RNA from them. They're very easy to read because they're completely unmolested. They're in perfect form because that bubble, that membrane protects them in the bodily fluids and therefore, enzymes and other things can't get at it and degrade it like it can cell-free DNA. Third, once you find what you're looking for from a biomarker perspective, exosomes can tell you where in the body or what tissue it came from because that membrane bubble is made of the same protein as the originating cell. Cell-free DNA by definition, doesn't have any protein to give you any origination information. And last but not least, we believe exosomes are the superior source for liquid biopsy information, is earlier detection. Why? Because exosomes are excreted from the cells throughout the entire life cycle. The cells born, through its life and as it dies. Cell-free DNA is excreted most -- really when the cell dies. So by definition, you can get earlier detection using exosomes than you can cell-free DNA. So I want to just kind of try to explain why we are -- why we believe this is the technology of the future for liquid biopsy. Quickly, we currently have a key prostate -- a key test in the market. It's prostate test, we nick name it EPI. And it's essentially used as a rule out test for high-grade prostate cancer. Before EPI, there really was no tool other than PSA. Oh, you got your PSA as rising, let's do a biopsy and make sure it's not high-grade cancer. Well, there's a lot of reasons why your PSA can increase. And therefore, there are a lot of unnecessary biopsies, so this test was developed to rule out that you have a high-grade cancer and, therefore, don't mess with an unneeded biopsy that has its own risk associated with it. And this test is doing very well[indiscernible]. Unfortunately, it launched pre-COVID. And as you know, the diagnostics, no one was going to see their doctors. So it was a tough road for a couple of years. But this business now in the last 6, 7 quarters, have been growing 100% a quarter. And to give you an idea of how much more it can grow. Right now, we only have penetration roughly in about 15% of all urologists. And I say penetration, meaning that 15% of all urologists have actually used our test at least once in their workflow. When we go back and look at the early adopters of our -- I'm sorry, so it's 15%. I mean 85% don't even know about it yet, right? So there's a huge market to go after there. But I think as importantly or more importantly, that 15% of doctors who now use it in their workflow, the doctors who have been using the workflow for 2 or 3 years, they're averaging over 50 tests per quarter. Our overall average of doctors is only 5 tests per quarter. So there's a magnitude opportunity of growth by just bringing up our new doctors up to the same rate of usage as our doctors who've been with us for a longer period of time. We also have an extra 2 kidney rejection -- transplant rejection test, a liquid base as well, urine. And we went different angle with this commercially where we partnered up with, in this case, Thermo Fisher, where they paid us a very nice upfront fee for that and a very nice royalty stream once they go through the final stage of the commercialization and launch it. And this is a model that we will use likely again, depending on the test we go after because our intention is not to build out a complete sales force for every single possible test or diagnosis that could be. It would be very, very expensive. So we'll do a combination of our own and a combination of partnering with others. And this is just a snapshot of some of the things that are on the horizon. We're going to continue to expand our prostate cancer portfolio. We're working on a rule-in test as opposed to just a rule-out test, which we think will speed up adoption of the test. We're looking at opportunities of synergies with our surgeon acquisition and using their hospital channel to put more tests through that channel on a kit basis using the exosome technology. And then we're also in the early stages of getting good data on our colorectal test, how this differentiates to what's in the market today is that our desire for this test is to be able to detect early precancerous polyps, not just tell you whether you have cancer or not. The reason you go have a colonoscopy is -- I can tell you firsthand was to see if there was any polyps that could become cancerous and get them out of there. Tests that are out there today for the most part can just tell you whether you have cancer. We're trying to design a test that's less invasive that can help prevent cancer. And then we have our molecular products. This is our Asuragen acquisition. The surgeon at the end of the day, they're now managing our entire diagnostics platform, including Exosome and doing an absolute fantastic job with it. But in their own right, we liked their product portfolio. They're in the prescreening market. They've got 14 products out there. They do hard to do genes, and that's what differentiates them in their model. And this business by itself, although small, has grown at a 20% clip all on its own. So we're very excited to have the Asuragen team with us. And then, of course, Diagnostic Reagents and Controls, I think we talked about this one already. And the thing I'll add here is in addition to controls. This business also does bulk antibodies, raw materials and different components and reagents for those same OEM customers. All right. Real quickly, we will discuss cell and gene therapy. So cell and gene therapy, a lot of words on this page. You can read them later. But the point of this page was to point out that cell and gene therapy -- and I'm not -- we're not the only ones up here saying this on the stage this week. We think is the future of next-generation therapeutics, particularly in oncology, but also in regenerative medicine. We do play in the gene therapy space, but that's mostly in our instrumentation on the QC basis. Within cell therapy, there's actually -- people think more of CAR-T and that workflow, but there's actually a market for us that's as big, if not bigger, and that's in the regenerative medicine side of cell therapy. Why these are both big for us is because they both require cells to grow and they need essentially food and juice to make those cells grow. And that's what we're king at is -- and that's proteins, by the way, is that juice. And that's what we're king of. So if we're going to be the gold standard and research use and the high-quality standard for research use proteins, shame on us if we're not the gold standard for GMP-grade proteins used in cell and gene therapy manufacturing. So we've built a factory dedicated to that. It has a capacity for over $200 million worth of proteins, and we're looking forward to fill that up over the course of the next 5 or 6 years. This chart here is just to outline when you get a chance to read it online. All the various steps within these 2 manufacturing processes. And what you see in blue is where all of our different product lines play in those various steps. So the point here being is that even though GMP protein is a very important part of our portfolio for this market. It actually elevates our entire portfolio. Yes. I don't know if we got the money chart away yet. Real quickly on this, you may have heard, if you read about our Wilson Wolf agreement. We've been close to Wilson for many, many years. We're in kind of in a commercial joint venture with them. Their product is this G-Rex, it's a bioreactor. It's differentiated in the sense that because of the technology it has on convection, the yield it produces in terms of growing cells is -- far outweighs other methods that are way more big, way larger and way more expensive. This is like the size of a laptop computer. They're already placed with 800 different biopharma cell and gene therapy customers, growing very nicely. And we've a strong relationship. It's a long story, but the bottom line is we want them to be part of our portfolio because we see a -- envision a closed system with our reagents as a media in their G-Rex in a closed system so that requires no manual intervention. We're working on that together right now, and we're hopeful to have a solution very soon on that. But if we ultimately want to own them, and we've struck a deal with them to buy initially 20% of the company once they achieve either $92 million of revenue or $55 million in EBITDA. Yes, that's $55 million of EBITDA, just $92 million of revenue. That's how profitable they are. And then that agreement then goes on further to say, after that first leg is hit by 20% we buy the remaining 80% when they achieve $226 million in revenue or $136 million of EBITDA. We expect that will happen within the next 5 years. But if it doesn't, there is a timeline at the end of 5 years, whatever the revenue is, we will buy that 4.4x revenue. It'll probably be 8x EBITDA. So it's a pretty sweet deal. So we're very excited about having this be part of our portfolio formally within a few years. This is a chart we just recently put together and it says, when we look at cell and gene therapy, we got to look even beyond 5 years. This is a market that's developing. It's going to be with us for decades. And looking 10 years out, we see a possibility where this could be $2 billion of our portfolio. You can see the biggest chunks of that being our GMP proteins and Wilson Wolf, but it elevates, like I said before, all aspects of our portfolio, which we put together are only $100 million of revenue today. Large addressable markets, not 10 years ago, it was just that very first line proteomic research reagents. And now we've added another 17 -- $13 billion to $17 billion of TAM to that potential through the acquisitions we've made. You can see on the far right, we are under-penetrated in all of our key markets, and we're growing faster than all of our key markets over the long term because of our differentiation. And then lastly here, you may have seen this before, we've laid this out about literally about a year and a half ago, our path to $2 billion within 5 years. Our core proteins and antibodies for research at a 7% CAGR, we've been doing better than that, but we're not going to promise more than that in the long term. Our instruments at 15%, our Spatial Biology in the mid- to high teens, that there alone gets you into the low teen growth that we've been at on a 2- to 3-year CAGR basis. It will be the liquid biopsy with Exosome and the cell and gene therapy as those ramp and hit a J curve later in the cycle, we see it could accelerate our kind of growth to the high teens 5, 6 years from now. So very -- we've come a long way, but we still feel like we're in the early days of this journey for our company. And thanks for taking the time to share it with me.