Good morning. Thank you for joining us this week at the J.P. Morgan Healthcare Conference. I'm Andrew Lang with JP Morgan, and with us here today to present is Roy Smythe, CEO of SomaLogic. Shaun Blakeman, CFO, will also join us for Q&A. With that, Roy, I'll turn it over to you. Thank you very much, gratitude to the J.P. Morgan team for inviting us to present. We're happy to be a part of the conference this year. I'll be making forward-looking statements during this presentation. Please refer to our SEC filings for more information. I'd like to start out by asking you what might've been different about the pandemic that we have just somewhat traversed if we had better tools to characterize and predict disease, if we had better ways to identify and minimize risks. How many hundreds of thousands or millions of lives might have been saved? The era of proteomics is absolutely here, but also absolutely needs to be accelerated in real time. The era of proteomics is here because we can now measure a sufficient amount of the proteome to glean important information, and we can use computing resources to interpret that information in ways that are meaningful for both biologic science, biopharma, as well as clinical practice. Genes are very informative, but they are static, and do not actually approach many disease areas with any breadth or depth. RNA is the bridge between genes and proteins, but RNA expression only correlates with biology about 50% of the time. Proteins, however, are the functional and structural molecules of life and can tell us compelling things about changes in human biology over time, and perhaps more importantly, important things about those changes and what they mean in real time. There are 5 things that make SomaLogic fundamentally different from others in our space. The first is that we have a platform and not just a technology. Having a technology to measure and identify proteins is table stakes in proteomics. We not only have a technology, we also have a database and a set of bioinformatics tools that are bespoke and unique. We've also been heavily validated, which is not true for all companies in our space, with more than 400 customers on the platform over the last 10 years, and a great deal of trust and significant relationships with both customers and collaborators. Our technology itself is unique and uniquely positioned. We can measure 2 times the number of proteins in the human body than any other approach, and there are some other benefits to our technology, including its synthetic nature that allow us to do a number of interesting things over time. We are the knowledge leader with hundreds of publications published on our platform, also the development of real-world applications using protein data that others do not presently have. Lastly, the fact that we do have synthetic biology is our driver for developing new reagents, and the fact that we use nucleic acid as our identification ligand in our approach, gives us a significant technology runway in which to do many new and interesting things. Again, just to revisit the platform, 3 components. Our technology, proprietary reagents that can measure 2 times the number of proteins than any other approach available. A database with more than 1 billion protein measurements and 15 million clinical data points. Then a bioinformatics group and tools that are bespoke and have been developed over the last decade. I'll start out with a few headlines before talking about our technology itself. Recent headlines of importance for us. We recently signed a deal with G42, a large conglomerate in the Middle East and North Africa that has both associations with Mubadala Health and its own bioscience initiatives. We recently extended our relationship with Novartis, one of our most important customers. It was already a great relationship, but we extended it into 2033. Expect this to continue to be important to us, both from the standpoint of technology development as well as top-line revenue generation. Lastly, as we had talked about over the last couple of quarters, we have right-sized the organization. We've taken a significant amount of operating expenses out of the company over the last few months, focusing the company primarily on life sciences efforts. As a result of that, we're exploring strategic options for our diagnostic predictive medicine assets, and I'll talk a bit more about that later. I'd like to give you a little bit of a primer on our foundational technology first. We use small pieces of DNA called aptamers that bind to proteins, a lot like antibodies, to identify proteins. It's a unique approach invented by our founder more than 20 years ago. They fold into three-dimensional shapes and bind to proteins much like antibodies do. We also are able to synthesize these, as I said earlier, and aren't reliant on living systems to develop new reagents. That's one of the reasons we've moved so quickly to the ability to measure 7,000 proteins and 10,000 proteins out of the canonical 20,000 in the human body by the end of this year. It also gives us a lot of optionality in our readout for this technology, since we're measuring pieces of DNA and not proteins directly, including arrays, NGS, and other approaches. Our technology is a market leader in technical specifications. We have market-leading sensitivity and specificity, and we are the most reproducible platform on the globe, with a coefficient of variation of only 4%-5%. This is important for two reasons. One is that if you have a small number of samples to elucidate insights from, you want to run them one time and not 10 times to get a result. The second is if you're going to drive applications, especially diagnostic applications, off of your foundational technology, the FDA and other similar regulatory agencies around the world like to see the underpinning technology with a very low coefficient of variation. This is also all done measuring 7,000 proteins from a tiny biologic sample. In addition to things like sensitivity, specificity, and variance, there are other considerations important for commercializing a technology, including cost, scalability, and speed. We also win on most of these points as well, compared to other current and emerging approaches around the world. I'd like to make a specific comment about specificity. Of course, if you're using ligands to bind proteins, you want to make sure that you are binding the protein that you think you are. Very important. We actually have used at least one method to validate specificity in every single reagent on our platform, and two-thirds of our reagents have been evaluated by more than one method. This is called orthogonal validation. This has never been done for other platforms, including antibodies. I believe sets us apart for this very important consideration. Finally, wrapping up this section before we talk about the life sciences business, we were excited to see our colleagues at the National Institutes of Health publish a paper back in October providing further validation for the technical capabilities and specifications for SomaScan. Now I'd like to talk about our life sciences business. This is, as I said earlier, what we're really focusing on now in the move forward plan for the company. Heavily validated, as I mentioned, more than 400 customers on the platform over the last decade. Significant growth in new active customers, which I'll show you a graphic momentarily for, significant pipeline growth as well. Heavily market-validated and trusted by an increasing number of customers around the world. Our key strategy for this business is to do two things. One is to expand the number of platforms on which our protein measurement identification technology can work, such as arrays and NGS and others, and to increase the options for customers to use both a service business as well as distributed solutions in the market. As a concrete example of our dedication to the first key strategy of expanding the platforms on which SomaScan can run, last year we announced our relationship with Illumina to develop a distributed NGS-based form of SomaScan as a kit. I'm happy to say that the work is going very well with Illumina and is on time for development. We anticipate this product being launched sometime in 2024. As concrete evidence of our dedication to expanding the options for customers for both a service-oriented business where samples are sent to us and also distributed solutions inside of service, our own array-based kits, we had a successful beta program that we initiated last year. We have initiated our general access program this month for customers around the world. We have a number of new sites anticipated this coming year, significant growth in our kits distribution and significant global growth in many regions around the world. Initially, this product will be our 7,000 protein measurement product. Whether you're sending samples to us or you're working in Abu Dhabi, you can measure all 7,000 proteins. As we have previously announced, we are well into the development of our 10,000 plex product, also being developed on time, and we anticipate this product being launched late this year. We have a robust product development pathway for life sciences. Added to the things I just mentioned, we have a modular sample prep solution that we've already begun to develop with outside partners. This should be available sometime during 2024. Our acquisition of Palamedrix, a global leader in DNA nanotechnology, should allow us to have a solid-state, chip-based, smaller plex solution and prototype by 2025. Our customer growth has doubled. Active customers on the platform have doubled over the past year. Customers actually running the assay either in the service orientation or in a distributed kits orientation. Obviously, this has significant knock-on effects for top-line revenue generation over the next couple of years. I'd like to talk just a bit about our diagnostics or preventive medicine applications, and to remind everyone that we are seeking strategic alternatives for this platform as we have taken out significant operational costs and realigned priorities in the company over the last few months. This is a significant asset, to say the least. I've already talked about the size of the database that we have access to develop tests internally, as well as developing tests for others outside that database from their own samples. There have been more than 140 publications published specifically in diagnostics. On our platform, we have around 250 patents issued or pending in the diagnostic space alone. 16 LDT tests that have been developed, thousands of which have been delivered into a demonstration market over the last year and a half. More than 32 tests in development and more than 60 in the pipeline. We are working with health systems for an ongoing clinical validation project, which I'll discuss momentarily. This is our test portfolio. These are protein pattern recognition tests, between 16 and 250 proteins using machine learning to create that can either characterize, identify, or predict disease and bin those characterizations or predictions into risk categories. A lot of our efforts over the last few years have been in the cardiometabolic space. You can see that several of the tests are either cardiovascular or metabolic related, but we have recently expanded into neurologic with dementia, renal, liver. We have tests being developed in cancer, and in prenatal conditions as well. The second test down on the left-hand side at the top, the Residual cardiovascular risk model, which predicts your risk of an MI or stroke in the next 4 years if you're a diabetic over age 65 or have had a previous event. There was a publication in Science Translational Medicine about 5 months ago, where this test was run on more than 45,000 human samples around the world. The editor always puts a little comment on those papers that are published in that journal, and the editor said that if you're not evaluating this as a surrogate endpoint for clinical trials and for clinical use, then you're behind the times. Recent new business for the diagnostics and predictive medicine component of our enterprise. We have new users of our tests at Mubadala, Cleveland Clinic - Abu Dhabi, and at UCLA. We have new development partners where we're developing tests with one of our customers, with OncoHost, G42 and a large biopharma customer whose name I can't mention in a public forum, but you'll be hearing more about moving forward in time. The business model for diagnostics is clinical use of these diagnostics, licensing of some of the assets that we plan not to take forward ourselves, and then perhaps most importantly, over time, the ability to be a development engine for others. There will be thousands of predictive medicine tests developed using protein pattern recognition over the next decade. A clinical validation for the diagnostics part of the business includes our proteomics precision medicine initiative. Three health systems have finished enrolling patients for this. We're harvesting the data now to determine whether or not our secondary cardiovascular risk test changes the ability of physicians to risk stratify and to provide adequate, appropriate treatment for those patients. We've completed a virtual study that proved just those two things. That using a SomaSignal test versus traditional comprehensive measures of determining risk in patients with cardiovascular disease allows clinicians to better stratify risk in patients and to more appropriately and accurately prescribe medications. It could be life-saving. We believe SomaLogic has an exceedingly strong trajectory and promising future. We have a uniquely strong balance sheet in our sector, important in these market times, which provide us a great deal of flexibility and strategic optionality to grow the business. Our revenue trajectory over the last several years has been strong. Obviously, the most important thing, in regards to having a promising future for a company are the people that are working there. I like to tell my employees that, companies are nothing more than the people that constitute them and the things they agree to do. We have a very strong management team, lots of experience across multiple sectors, and it's been a pleasure to work with them over the last few years, and a privilege as well. Again, I'd like to thank JP Morgan for the opportunity to present, and Shaun and I would be more than happy to entertain questions. Great. Thank you very much for the presentation. At this time, we'll open it up to everyone for any questions. Maybe if none right this moment. We got one floor. I was a little bit confused by the strategic move forward. Are you guys, in addition to the platform you provide to others to develop diagnostic tests gonna do your own specialty diagnostic tests to? Yeah. The. Let me back up a little bit and maybe just talk about what seeking strategic alternatives means for our diagnostics platform. We've decided to focus the core business at SomaLogic on our life sciences products and customers, and to evaluate other options to push the diagnostics business forward more quickly to accelerate success. We're evaluating an array of opportunities such as spin out, partnership and acquisition. All those conversations are ongoing now. Obviously, this is an incredibly strong set of assets, so thankfully, there's been a fair bit of interest initially in those discussions. The business model for diagnostics has three components. A small number of tests we will push forward ourselves and commercialize, likely cardiometabolic. That's the current strategy. Some of those test models we will license to others because it's difficult to develop, six different disease channels when you're starting a new endeavor. Then the third component, which was evidenced by OncoHost and G42 and that large biopharma customer that I mentioned that's looking for complementary and companion diagnostics, is to be the development engine for others that want to use test models. That third component is structured as an upfront set of fees for getting started, and then once a test is developed, access for the diagnostics company to downstream royalties. Thank you. One question we received from the webcast is, could you talk about what grew the 70% growth in 2022 and how we can think about growth drivers in 2023? Looks like the street is negative growth slash flat, so wondering what is happening in 2023 estimates. Yeah, sure. I mean, I guess looking at the numbers, I mean, I think that, as, some people in here may recall from our Q3 earnings call, we did have quite a bit of licensing revenue from our partner, NEB, that hit Q3. Again, the way it was recognized, it actually accelerated future commitments in terms of the cash payments they're gonna be making. That did. You know, although, those are again, that's, those are the kinds of, deals that you can, go after with our technology, and it is real money. You know, the way it was recognized is, creating a comp that makes it look like going forward, that you're not repeating that $27 million, which you're not. If you look at the actual core business, although we certainly did see in Q4 and expect discovery budgets to continue to be somewhat constrained, we are still growing our business. The drivers of that are gonna be, first and foremost, the commercial team continues to grow. We have a lot more feet in the street than we had at the beginning of the year. That is something that we're still investing in. Just, you know, that's, where the focus is going as we continue to commercialize, in particular, our life sciences tools projects. You know, we have confidence in that continued build-out and what that means for the business, as well as the distributed model. I mean, kits, we've got a handful of kits out there now, and we have a good pipeline going forward. You know, these things, are gonna take time to get out there, but it's gonna be a huge lever for us. You know, at the end of the day, we are still primarily a service business. A service business is, a little bit less, predictable in terms of recurring revenue, and the timing of it. We are gonna grow that service business. We're gonna, know, especially double down on getting kits out into the field. I would agree. I would start out by saying that continued top line growth is inevitable. You double your customers over the last year. You finish your commercial build. We started this, we're starting this year from what I would estimate, we're about a little more than half built out on the commercial capability side and feet on the street. You know, capitalizing on new customers, capitalizing on a larger sales force, capitalizing on getting a new product into the market, these distributed kits. Remember, some of these distributed kit sites will be redistributors themselves. All the foundational elements for continued growth are in place. We just have this little bump in revenue in 2022 from this large licensing deal that makes it look a little less linear. We're extremely confident about growth in 2023 and even more confident in the out years as the Illumina product comes online, and we, develop other products and put them into the market as well. Great. Thank you. Are there any other questions from the audience at this time? Maybe I'll ask one question. Maybe could you just outline the top priorities and upcoming milestones for the company in 2023? Talk a little bit about that. I'm sure I'll get started. I think Shaun can certainly fill in. Obviously completing our commercial team growth is probably the number one goal in 2023. Included in that is geographic expansion. We were fortunate enough to hire leaders in both EMEA and APAC last year. We think that recruiting in those two regions where there's a lot of proteomics business will accelerate. The second is efficiently and effectively getting kits out into the market this next year, also very important. Continuing to manage our spend might be number three on my mind in this market to make sure that we're on track for cash flow positive in a reasonable period of time. We started that project in the second half of 2022, taking out operational costs that we felt like we could we could manage otherwise, and have been successful so far. Shaun, anything to add to those three priorities? The only thing I would add is 10K. Yeah. Rolling out 10K, is another, a fourth pillar there. Yeah Of this year that's hugely important. I agree. I've already decided that's gonna happen. That's correct. Great. Thank you. Could you elaborate a little bit about the geographical expansion, especially in Japan? I understand you have a relationship with NEC in Japan, alliance. Could you share your strategy for Japanese market? Sure. We think Japan is a fantastic market, in the greater Asian market, for both our life sciences tools and our clinical activities. We work with NEC as both a redistributor of our SomaScan solutions for, for biopharma and academic customers, they've also spun out a company out of NEC called FoundaLife, which is working with us as a co-developer and distributor of our diagnostic products in Japan. It's an important relationship, and we're excited about that market as well as other places in APAC as well. Maybe I'll ask another question. I know in your presentation you talked about the work SomaLogic is doing to validate the specificity of your SOMAmer. Can you explain why this is important, how it helps differentiate you from other measurement tools? Sure. Well, it's just one of the technical specifications that obviously the market isn't, really wanting us to bear down on. Sensitivity, specificity, reproducibility are all very important if you're measuring and identifying things. There's been some noise in the market about the difference in platforms around the world and how specific they are or not. Again, we just think it's important for us to share that we have done unusual work in this regard compared to other platforms to prove that not only are our reagents specific, but they're specific when they're tested across multiple ways to determine that. It's just one of the important technical specifications that not only, your biopharma and academic customers look at, but also, again, regulatory agencies, when you start to develop applications on top of a technology like this, also are wanting to make sure that those things are in line. Thank you. Any other questions from the audience? Maybe one other one. I guess maybe if you guys could both kind of share, like, what you're most excited about for this upcoming year. Shaun, you wanna start, or you want me to? I mean, yeah, we've kinda, mentioned it, I think, in terms of the milestones we're looking for. I mean, I'm excited about a lot of things. I mean, I really do, think that, kind of doubling down on the focus in this business because it is just, it really is truly an outstanding platform. While commercialization, is never an easy thing, I think sometimes it gets lost that that's, really where we are, and we didn't really have much of a commercial team. I think really going in, since I've been here, this is the first year where I feel like there's a very large kind of, you know. I'm sorry, a larger nexus, if you will, of, what I'll call a professional, not that it wasn't professional before, but just like, enough feet in the street to actually kinda consider it almost a worldwide commercial team. I just, really feel good about what that portends for the future. That's, I think just doubling down on that work and, going out there and executing, I think, it's gonna yield a lot of good benefits this year, and that's getting me to wake up at most mornings now. Anything to add? Yeah, I would say that, we're obviously excited to continue to work with Illumina and to wrap that project up towards the end of the year, to launch our 10K product. I mean, there's a lot of things to be excited about, geographic expansion. In general, what I'm most excited about is, I feel like that over the last year or so, the market has finally begun to turn its attention to proteomics in a real way and recognize that these tools are going to frankly eclipse what's been done in other areas of omics research in the past. You know, we're recapitulating what happened in genomics here, where you went from measuring a few things to measuring many things, to measuring all things. Along the way, applications were built out that were important for humankind and for, both financial and human value creation. I'm excited because I feel like the market is going to accelerate this next year. My assumption is that only about 1% to 2% of the addressable market for proteomics has been captured. We aren't competing with other companies. We're competing with people that haven't decided to do proteomics yet. I believe that's gonna rapidly accelerate over the next year, based on signals we're getting from customers and new customers, new customers on the platform, and, we're at this game to leverage proteomics as a value creator, not just, for those that are interested in the top-line revenue, but more importantly as a value creator for humankind. The faster this gets adopted, the more likely we are to have a bigger impact on, drug development, diagnostics, and human health, and that's what gets me out of bed every morning. Could you talk about what you're seeing in the current environment and perhaps some of the pushes and pulls as you look to 2023? I know you're not gonna you haven't guided yet, but maybe you can just talk qualitatively. Yeah. I think the biggest pull, or the biggest push has been the market, right? I think that, maybe it's astonishing that the proteomics market has grown like it has over the last year, because many of our customers have, have experienced their own cost reduction exercises or their own project contraction over the last year. You know, thousands of people have been laid off in biopharma, for example. I think the biggest push has been, just the market itself and its impact on our customers. Despite that, we've grown and others have grown during this time period. I think that, obviously there's been an impact of the market on the valuation of small and mid-cap companies in our space as well, almost exclusive of performance. The hammer's effective, but it's very blunt and very broad. I'd say those have been the biggest pushes. I think the pull is just what I mentioned. It's the increasing realization that, for example, while genomics has been an incredibly important advance in human history and in medicine and in science, proteomics has a much broader vista of applications in the future, and people are beginning to glom onto that. We're, beginning to see the pull. One more question. In terms of the diagnostics business that you're talking about seeking strategic alternatives, can you just frame up, is there any revenue that's associated with that business now, and what's the costs that you're spending on that business? Yeah. I mean, we certainly haven't talked about the cost overtly. As you might imagine, if we're entertaining spinoffs and partnerships and acquirers, we have a pretty good idea what the run rate for that business is, or that part of our business is. There's a lot of synergistic revenue for our life sciences business. Whatever we do, we plan to keep this tied strategically back to the parent. For example, every time somebody runs a diagnostic test, they're gonna be using SomaScan. If you're a SomaScan certified site and you're using that to run diagnostic tests, the parent benefits. It's, a few million dollars of direct revenue this year, a lot more than that in synergistic. We haven't invested much in the commercial side of diagnostics at all. again, trying to be thoughtful this year about managing our finances to focus primarily on life sciences success. it'll be interesting to see what happens to that business once we truly commercialize it. Are there any other questions at this time? If not, I think we can give everyone back a few minutes. Thank you all for attending, and thank you, Roy and Shaun, for joining. Great. Thank you. Thank you so much. Thanks.