Financial Data and Key Metrics Changes - Total revenue for the third quarter of 2025 was $6.8 million, down from $8.2 million in the same quarter of 2024, with core revenue at $6.4 million compared to $8.1 million in the prior year [18][19] - Gross margin improved to 77% in Q3 2025 from 76% in Q3 2024, while non-GAAP adjusted gross margin decreased to 81% from 85% [21][22] - Total operating expenses were $19.4 million, a decrease from $20.3 million in Q3 2024, including $3.1 million in restructuring charges [22][23] Business Line Data and Key Metrics Changes - Instrument revenue was $1.4 million in Q3 2025, down from $1.8 million in Q3 2024, while license revenue fell to $1.8 million from $2.5 million [19] - Processing assembly (PA) revenue decreased to $2.6 million from $3.4 million in the same period [19] - Program-related revenue from SPLs was $0.4 million in Q3 2025 [19] Market Data and Key Metrics Changes - 53% of core revenue in Q3 2025 was derived from SPL customers, consistent with the prior year [19] - The company reported a total of 165 patients globally who have completed cell collection, with 39 patients receiving infusions of CASGEVY [20] Company Strategy and Development Direction - The company is focused on transforming into an end-to-end platform for cell and gene therapy, with plans for organic and inorganic growth [16][17] - A restructuring initiative was implemented, resulting in a 34% reduction in workforce, aimed at maximizing cash for investments and aligning operating expenses with the current environment [10][12] - The company anticipates annualized savings of $17 million to $19 million from the restructuring, with a focus on maintaining innovation through its Field Application Scientist team [12][13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging operating environment but expressed optimism about stabilization in biotech funding and customer confidence [28][31] - The company expects to see a ramp-up in SecureDX services and a new product launch in early 2026, which could contribute to future growth [36][37] - Management remains confident in the long-term potential of cell and gene therapy and the role of the company in this space [16][17] Other Important Information - The company reiterated its guidance for 2025, expecting core revenue to be flat to a 10% decline compared to 2024 [24] - The company ended Q3 2025 with $158 million in cash equivalents and investments, with no debt [23] Q&A Session Summary Question: What is the current operating environment for the company and its customers? - Management noted that while the environment has been challenging, there are signs of stabilization in biotech funding and customer confidence [28][31] Question: How does the recent FDA leadership change affect customer confidence? - Management indicated that there have been no reported delays in customer programs due to FDA changes, and the focus on curative therapies aligns with the company's offerings [32][43] Question: What are the expectations for SecureDX and the new product launch? - Management expressed optimism about the ramp-up of SecureDX services and the potential impact of the new product launch in early 2026 [36][37] Question: Can you provide insights on M&A activities? - The company is actively looking for M&A opportunities that align with its end-to-end platform strategy, focusing on best-in-class assets that do not impact financial health [51][52] Question: What is the outlook for CASGEVY and its contribution to revenue? - Management is encouraged by the recent acceleration in patient cell collections and expects corresponding royalty contributions to grow as more SPL partners advance their programs [56][57]