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CMD 2021
May 12, 2021
A warm welcome everyone to CellLink's 1st Digital Capital Markets Day. We're truly happy to host this virtual meeting and connecting with all of you around the globe. We look forward to sharing insights on our buyer convergence agenda and our road ahead. Here's the agenda for today. And as you can see, you will meet external speakers as well as members of TIM Cellink.
We will spend time on the future of medicine, product development, our results for the Q1 and our customers. You'll also get to know our business areas, biosciences, Bioprinting and Industrial Solutions. You can find the agenda and time slots on selling.com in the Investor section. Before we start, I'd like to highlight a couple of things. If you look to the right, you can see the control panel.
There you can adjust your audio settings and your screen size. If you have any technical questions, send them to the question box. And if we move on to the next slide. Our last session for today will be the Q and A session. Participate by sending your questions to the question box.
And by that, I think it's time to begin. Let's present the first speaker for today, Doctor. Robert Langer, MIT Co Founder of Moderna as Scientific Advisor to Cellink Scientific Advisory Board. Doctor. Langer is one of history's most prolific inventors in medicine.
He has received over 220 major awards, written over 1500 articles and filed for over 1400 patent applications worldwide, of which 900 have been granted. He will now present the future of medicine. Please go ahead, Doctor. Langer.
Well, thank you so much. I'm really delighted to be able to speak with you today. So I was asked to try to address 3 things. 1st, why I decided to join CellLink as a scientific advisor 2, what was just mentioned, some of the healthcare challenges of today. And 3, how CellLink, can play a role in that.
So first, so I've had actually a significant history with CellLink even when it was a much smaller company. Starting in 2017, Eric talked to me and we were doing a number of projects in what's called tissue engineering. That's actually an area That pretty much started in our lab and Jay Vacanti's lab, my collaborator, to make new tissues and organs. And one of the things that we were working on was creating, You know, that we were working on with Children's Hospital is creating new biomimetic heart valves. We were also working on artificial pancreas.
And these are problems that affect many, many patients, millions of patients around the world. And So what, what Cellink was kind enough to do was provide their bio printers to us. But what was even, also very, very important to me was they also provided student fellowships to support several of our students who were doing of masters and doctoral theses in these areas. And that really enabled us to make significant progress. We published A number of papers in this area, and we're moving forward on these to hopefully begin clinical trials.
I've also, have known, many of the other scientific advisers, on CellLink's, the Scientific Advisory Board for a number of years. In fact, Ali Khademaseni, who's one of the advisers, is one of my former PhD students. And David Williams, another one of their advisers, actually gave me a honorary degree when he was at the University of Liverpool from from Liverpool. So, so I've known them for a while. And then I've also done some advising to 1 of the subsidiary selling companies as well.
So, I was really delighted when Eric asked me to join their board. And I think when you look at what Accel Link's doing today, it's really pretty remarkable. I mean, they have technologies in Bioprinting, regenerative medicine, 3 d culture, drug discovery, diagnostics, cell omics, bioprocessing, biosensors, All kinds of things that are just very, very helpful to what we and others do. I thought I'd take a few minutes and tell you at least what I think is some of the future areas of medicine. 1, clearly to me, is genetic therapies.
As was mentioned in the introduction and on the slide is 1 of the companies I helped start was Moderna, which is leading, the charge, or one of the companies leading the charge in messenger RNA therapeutics. And that's been leading to vaccines for COVID all over the world. And actually, one of the swedish companies is helping on some of the manufacturing. Another company that I was on the Scientific Advisory Board on from the beginning is Alnylam, which is actually doing almost the opposite of what, Moderna is doing. Alnylam is creating a small siRNA, and that's a way of knocking genes down.
And they've also both those companies have been incredibly successful, and it's been a pleasure to work with them, too. I also think we're going to see more work on gene editing and New types of RNAs, new types of all kinds of gene editing approaches. The second area that I want to mention is nanotechnology. In fact, One of the key things that maybe a lot of people don't realize is nanotechnology is key to, genetic therapies. You put if you just injected messenger RNA by itself, into the body, it would just get destroyed.
It wouldn't get into cells. So you put them in nanoparticles, And that's been a key way of getting them to work. That's also been true for siRNA. And so I think we'll see delivery technologies like nanotechnology be very important. But not only is nanotechnology important for delivery of these molecules, these important molecules, it's also been very valuable for creating new technologies.
Another company I've been involved with is SEER, which just went public a few months ago, and they're using nanoparticles to determine the proteome. It's like a fingerprint Of a person's proteins in their body. And then there are companies like T2 Biosystems that are using nanotechnology for new diagnostics. The 3rd area that I want to mention are cell therapies. Cell therapies are not only a tissue engineering, which I mentioned before, where you might Take a cell, including a stem cell, and put it on a bioprinted or put it on a material scaffold to make virtually any tissue or organ, Not just heart valves or pancreases, but I mean, you know, we're looking at making skin, cartilage, bone, almost everything.
And then, of course, the other big area with cell technology are things like CAR T cells, which are really creating a revolution in cancer therapies. The 4th area I want to mention is digital medicine. There are companies now like Pear Therapeutics that are that have digital medicine systems that have actually been approved by FDA, for helping patients with opioid addiction. And there's other companies like Achilles that are creating video games that can, help children, overcome attention deficit disorder. And still others, like Illuminopia that are working with Sesame Street characters and Sesame Street To actually help, little children with lazy eye and correct their eye rather than wear a Band Aid over it for months, which they won't do.
They can actually now play video games to change that. And the final area I was going to mention is artificial intelligence. And there are a number of examples of this. In fact, you may know MIT just put in, with donors, dollars 1,000,000,000 to create a whole new College of Artificial Intelligence. And you have companies like Google with apps to confirm diseases like diabetic retinopathy remotely.
Now, how does CellLink, play into all this? Well, I think actually in almost every way, they will play into it. One of the things that, I've talked about, amongst others over the years is the area of convergence. In fact, the Nobel Laureate, Phil Sharp, who's my colleague at MIT and I wrote an article in, in Science, The Journal of Science in 2011, absolutely introducing this concept of convergence. And I thought I would just read you a little bit from it.
What we basically said There's been 3 biomedical revolutions. The first is molecular biology. The second is genomics. And the 3rd revolution is what we're calling convergence. And what we basically say is the 3rd revolution, Convergence's multidisciplinary thinking and analysis will permit the emergence of new scientific principles where engineers and physical scientists are equal partners And with biologists and clinicians in addressing many of the new medical challenges.
And I think that's exactly What, Cellink is doing. When you look at some of the slides that Eric will show you later, what you'll see is this whole area of bioconvergence It's exactly what they're doing. They're involved in artificial intelligence, medical science, gene therapy, You know, new biologics, chemical design and analyzing big data. And so 1 of Eric's slides, which I think epitomizes, and I didn't tell them this or vice versa, is where they call CellLink the bioconvergence company. And again, it goes back to what Phil and I wrote in that Science article.
There's probably about 20 different, technologies Listed on his slide, which he'll show you, on cell link being a bioconvergence company. And they include all the things that are really needed to practice all those five areas that I mentioned and many, many more. Things like bioprocessing, live cell imaging, microscopy, liquid handling, 3 d printing, biosensors. I could go on and on, but He'll do a better job. So those are some of the things that I think will augur incredibly well for a Celinc's future.
And I think what we're seeing is being able to do these things has got to be so important for advancing new therapies, advancing new technologies. It's been amazing what we've witnessed in the biotechnology area over the past few years With companies like Moderna and BioNTech and others, just totally changing the way medicine is practiced. And all these actually are startup companies for the most part, just like Cellink is and was. These are not the big companies. These Are the smaller companies that have been pioneering, these 2 tech these new technologies and really changing the world from it because they are willing to take risks.
And when you see the growth of these companies and what they're able to do, it's been remarkable. So I think what you'll see, and I believe you'll see is that that CellLink will play just a critical role in enabling all kinds of new technologies to happen. And the 5 areas I mentioned, I think will continue to grow and really change the world in remarkable ways by creating new therapies, New tools and so forth. Thank you very much for listening to me. It's really been an honor and a pleasure to speak to you And an honor and a pleasure for me to work with Sally.
Thank you so much.
Thank you, Doctor. Langer, for an inspiring presentation. Our next speaker, If we can move on to the next slide. We'll now present our buyer convergence agenda and our strategic focus areas. Here is our CEO and Co Founder of Cellink, Erik Gothenholt.
Thank you so much, Professor Langer. It was a wonderful start to this great event, and I want to, Of course, give everybody a very warm and exciting welcome to today's event. It's my absolute pleasure to present our strategic focus for the years to come. And I'd like to take a moment actually to start by thanking our excellent team, shareholders, investors and most importantly, of course, our customers around the world around the world for your loyalty to the selling group and the products that we offer. We're honored to have you with us and look forward to Creating the future of medicine together with you.
And I'd also, of course, like to take a little bit of time and give a special thanks to you, Our Head of IR for coordinating and arranging this entire event. It's a pleasure to, in the first time in our history, address all of our wonderful shareholders and investors And listeners around the world. We could not have done it without you. For those of you who don't know me, my name is Eric Gattenhall, Co Founder and CEO at Salink Group. My background is in business management from Virginia Tech University with a focus on entrepreneurship.
I also have an MBA from Gothenburg University. My passion in life is really commercialization of life sciences technologies that can disrupt industries and impact markets. And I believe the greatest impact I want to do in life is to leave this world a better place by providing technologies that can save lives. With that, I will present some great things that we are working on both strategically and operationally, and to ensure that we can of course continue to deliver on our customers' needs and on this wonderful mission of ours as a company. You can go to next slide.
So to understand our future, let me first tell you a little bit about our past. As a company, our vision and mission is to Create the future of medicine by providing technologies, products, and services for our customers to create, understand, and master biology. Our journey started on 27th January 2016, so just about 5 years ago, and we're very proud to briefly reflect over the accomplishments that we've Just over the last few years, we've transitioned essentially from being a single product or technology company To a bioconvergence company with more than, with about 700 team members, 2,000 plus users around the world, customers in more than 65 countries, and with more than 1700 notable publications describing the great use and the great purpose of our technologies in the market. We're addressing today a market potential of about $150,000,000,000 to $200,000,000,000 depending, of course, on the complementary technologies that can be provided in conjunction with our current portfolio. I'm very thankful for the great work our team has done, and of course to get us to this point, I also believe and I'm very excited about the future that we're going for together.
And I believe that the most important thing that has been the success factor for us Has really been the great culture that we've been able to establish at the company, where ambition is truly celebrated, And CellInc is a place where we can live our core values, which are namely passion, inspiration, and persistence. I believe that these will be the critical aspects that will take us to the next level. You can go to next slide. To further understand our future, we really need to look at the major challenges that we are tackling on a daily basis. Global health expenditures, they continue to rise dramatically And expected to reach about $10,000,000,000,000 over the next few years.
The main reason behind this is really the increased life expectancy that has led to an aging population alongside increased frequency for chronic diseases such as cancer, heart disease and diabetes. However, as we get older, we want to increase our quality of life in addition to that. We don't want to, of course, just live longer, we want to do more things with our lives as we age. And approximately 50% of the population in the U. S.
Are considered chronically ill, and these patients account for about 85% of the total expenditure of healthcare services. You can go to next slide. So if we look at perhaps the most pressing challenge today and something that is of most relevant, I believe, And what everybody, of course, is talking about, the global pandemic that we're experiencing is really transforming the healthcare industry in the short term. In a matter of months, we've essentially gone from being very proactive in terms of how we target new diseases or New diseases, do research in critical areas to basically battling and fighting local pandemics or global pandemics and battling the effects of such pandemic. Of course, this going from a Fully functional global economy to a lockdown pandemic ridden world, has been quite unprecedented.
And a lot of Companies, researchers, many of our customers, for instance, they've had to make a transition in the short term to look at Essentially, how do we battle disease at perhaps an earlier stage? And I believe a major challenge for the global healthcare industry at this point Is to get to a point where we can discover or understand and detect disease at a much earlier stage. Because if we understand the underlying drivers behind these pandemics, I believe that we'd be able to tackle them a lot faster and more efficiently. You can go to next slide. In addition to disease detection and identification, I believe we're facing a major challenge when it comes to treatment development.
And if we just look at the cost of developing new pharmaceutical treatments, it can cost more than $2,000,000,000 and take About 12 years to develop one new pharmaceutical drug. And the fact is 9 out of 10 of these drugs, they fail in the clinical stages of the development, meaning that These pharma companies, they spend 1,000,000,000 of dollars to get these drugs through early stage toxicology testing, the discovery process, preclinical testing, And then in the final stage of the clinical trials, these compounds, they don't make it to the patient. And of course, the vast increase in expenditures associated with developing these new drugs is hampering the outcomes and the treatments. In fact, the increase in costs associated with the development of new drugs has shown no significant growth in the number of new drugs being released, And that's a very, very concerning statement. You can go to next slide.
Another important challenge, obviously, and one that is very close to us and our founding principles is that one life is lost essentially every single hour of the day from the lack of organ transplants. And in fact, with a 50% rejection rate, it makes the situation even more grave. We see that the shortage of supply In organs and tissues is going to be a major, major bottleneck for healthcare in the future. And as, again, with this Growing with this aging population, we need to find ways to address these challenges. You can go to next slide.
We believe, that the answer and the solution to these questions and these major challenges really lays in The combination of innovative modern technologies in the field of biology. And as Professor Langel Was mentioning and talking about was really this bioconvergence concept where a lot of new multidisciplinary Industries and technologies, they converge for the sake of improving the outcomes of biological research and biological treatments. These technologies that we're talking about are on the cutting edge, providing new ways and methods of approaching health challenges because they let us gather more and better data, And with that data, we can tackle health care challenges faster and even become more personalized in these treatments and approaches. You can go to the next slide, please. Worth mentioning is, of course, the different technologies that come into play in this.
And As we see here, we're looking at the lower start from the 20th century. We're coming in with a lot of data, especially on the big data side, A lot of computing, machine learning, AI, and a lot of ways that we work with the collection and deciphering of this data. And then of course, looking into the future, what we believe is going to be an important aspect, and also as what Professor Lange mentioned, really the gene genetic therapies, looking at Digitization of the biological data, the development and manufacturing of biologic drugs, and then of course, in addition to that, Looking into being more proactive through better diagnostics at earlier stages. And we see that All of these technologies advancements, they come together and this is really what creates the bioconvergence and the beauty of it. I will speak about this shortly as well, but to cure cancer or to solve these major healthcare challenges, we really have to Approach these from a very different perspective and no longer are single technology or single product the solution to these type of challenges.
You can go to next slide, please. Worth mentioning is, of course, the latest buyer evolution report that came out just a few days ago by McKinsey. And the report is defining a $2,000,000,000,000 to $4,000,000,000,000 market potential for the coming decades in terms of research in areas and application of biomolecules, biosystems, biomachine interface, and biocomputing. And I'm very proud and honored to say that Cellink is today not only present within all of these areas with some sort of technology or products, but we're actually leading much of the work and specifically the biosystems area. I highly recommend the report for all the participants.
It shines a light on the potential for the future medical applications And it's a wonderful description of what the potential for bioconvergence is for the next coming decades. You can go to next slide, please. So when looking at these areas more specifically, we see how Cellink is actually working today with Bio Convergence and in which areas we are currently approaching our customers with products and which areas we see ourselves growing in the future and that we need to add to our portfolio. And when we look at these areas, for instance, drug discovery, 3 d cell culturing, and regenerative medicine have been areas that we've been approaching for the last 5 years through our bioprinting business, but also through many of the acquisitions we've done, we've been able to open up more for biopharmaceuticals, Even approach markets with CRISPR technologies or gene editing. And now, of course, with the addition of Cyanion and Genolis.
We have been able to start approaching the diagnostics and the biological sensors market. And I know we will cover these areas in more detail in the coming presentations from our colleague Holger and Jonas. You can go to the next slide. So with that being said, our journey was really started based on the fact that we wanted to conquer the buyer printing market by being the 1st complete package solution provider. So when we entered the market a few years ago, we noticed that, first of all, there were no cost effective that could really penetrate the market and open up the field for researchers and scientists.
And second of all, there were no universal bioinks for reproducible materials that could be used for the bioprinting process. So what we did is we opened up that market by providing cost effective complete package solutions that would answer to a lot of immediate needs from customers in the bioprinting field. But what we also learned to do through many, many journeys and travels to our customer sites is that we started to understand the concept of a bigger picture and really start to map out the other things that our customers are asking for. And it's very important to mention this because the mapping of these technologies and products that our customers were Craven for, you know, they were either too difficult for them to acquire from someone else, or they were too expensive, or they were simply not available. So, with our brilliant engineers, researchers and product developers, we managed to essentially start developing some of these solutions and products That have now become a larger part of our product portfolio and our offering.
And what's worth mentioning, of course, here too Is all of this knowledge that we've learned and the need from our customer has really come from just listening to them and understanding them and the work that they're doing initially with the bioprinters, which led to the need for liquid handling. The liquid handling led for a need in better Reagents management, printing of cells, etcetera, etcetera, and led to a bigger picture. You can go to next slide, please. So, after several essentially successful product developments along with strategic Acquisition. And it's worth mentioning here, our agenda or strategy as a company is not to acquire companies per se, But our agenda and strategy is really to go after the technologies and areas that our customers are asking for.
So if our customers are saying Enough of our customers are saying, well, we want to see more products in 3 d imaging or we want to see more in live cell imaging, then it's our duty to serve these customers and serve their needs. And do that by providing the technologies that are needed, offer great customer care and support and offer application support that understands the language that our customers are saying. And that has been a critical part of our growth success. But if we're looking at these business areas, We essentially have had the opportunity to structure ourselves according to these 3 main business areas. And these business areas have, They really have to do with our vision and mission as a company.
So the first area is about Disease and Tissue Modeling. This is bioprinting where we work with novel technologies to create biological structures using cells, materials, and to use these materials or printed tissues for drug discovery purposes and future for therapies or for treatments. The second business area is biosciences, where we focus heavily on disease and tissue analysis, And essentially offer products and technologies that can improve the way that we analyze different cell structures or different cells and use for different assays or for understanding them in drug discovery processes or even for omics, both genomics, proteomics, and specifically on the sample preparation side. And the last business area that was added quite recently is industrial solutions where we work a lot with And in this business area, it's all about mastering biology because what we want to do is we want to provide technologies that can help us and our customers understand disease at an earlier stage, help Diagnose disease in patients at an earlier stage and that will of course lead to the solution, being brought to the market much faster. You can click on the next.
So more specifically, we're looking essentially at 4 main areas that together create about US50 $1,000,000,000 plus market opportunity. And the market opportunity is realistically up more towards $200,000,000,000 with complementary products that are being offered between these business areas. But let's start with these main four pillars that we offer. The first market is really the tissue engineering market that is expected to reach about $30,000,000,000 by 2027. It's a market growing at about 14%, And it's a market where we will continue to provide the latest products and technologies, and again, to provide these Products and technologies for tissue creation, and disease creation that can be used later then for different toxicology testing, and then hopefully in the future for therapies and treatments.
The second area, the second fundamental pillar in the market that we're approaching is really the selling development market. And this is a $12,000,000,000 market in 2027, also growing at a double digit rate. And also, of course, very interesting since many of the new pharmaceutical treatments and compounds coming out or being researched are going to be biologics. This is where we see many of our products being approached and provided to. The third one is single cell omics market, which is expected to reach about $6,500,000,000 by 2027.
Again, also a double digit growing market, very exciting one, and we see Our sales continue to provide excellent technology, especially on the sample preparation side with our great iDOT system, and even use some of our single cell sorting devices to approach this market. And lastly, of course, it's the massive diagnostics market of about $103,000,000,000 and grow 1 at a single digit rate, but nevertheless is an important market to approach. And you've seen how much that market and these technologies Products have made a difference in the last just 12 months. You can go to the next slide, please. Something worth mentioning here and something that is important to mention is, of course, while we have these wonderful three business areas operating With great technologies that can provide revolutionary, ways of doing research and develop new products and treatments.
It's also worth mentioning what's going on between these areas. And things are typically not as silos. You can't see things as being very, very locked in. So what we do at Scentia is we've created a lot of workflows and this is what we call the era of workflow where we can Truly build in ways of working with a wide range of technologies that can answer larger customer questions. So for instance, One of the bioconvergence workflows that we're working on is where a patient could be coming into a hospital, this patient would be Either carrying a digital diagnostic sensors that could read off their personal data through sweat or blood, and this data could potentially Show that something is a little bit off.
This patient will come to the hospital. The hospital will take a sample, a blood sample or do a lot of cell analysis. This cell analysis could potentially lead to, a diagnosis of cancer in a horrible case, of course, But then being able to harvest these cancer cells from a patient's tumor, bring them into a laboratory, sort these cells using our single cell isolation More sorting products, expand these cells using our CellSight X system, and see the growth and proliferation of these cells, Then take these cancer cells, put them into a bio ink, print those cancer tumors out. These are patient specific cancer tumors. Run these tumors through a high throughput screening method or a high throughput screening workflow And dispense either new compounds or very well known compounds to work on these types of cancer cells.
Continue with live cell imaging analysis and understand the efficacy, of these drugs that have been dispensed on these cancer tumors. Already there, we're providing a very, very new type of workflow that enables us to study the efficacy of drugs on patient specific cancer tumors. And then of course, if these are well known treatments, then we can move forward to provide a personalized plan for the patient, with the right dosage and with the right, of course, medicine. And if it's unknown treatments, well then this could lead to a new drug discovery. It could go through, of course, efficacy testing and the clinical trials and then provide these treatment for the patient.
You can go to the next slide, please. And something I think worth mentioning here is this work is ongoing and it's something that our customers are doing on a daily basis. Now I want to shine some light on research going on at this very well known university hospital in Milan. It's the San Rafael Hospital where our great colleague or our great customer, Professor Christina Ciel, so a leading researcher at As San Rafael has been working with 3 d bioprinting for a few years and actually recently published this very impressive paper on how she's working with patient specific Chronic lymphocytic leukemia cells. And these are the most common leukemia cells or leukemia cancer in the Western world, so it's a very, very relevant study.
But Professor Sialdzow was essentially running this workflow, taking patient specific cancer Tumors, printing these cancer tumors out, and then running through different analysis on these cancer tumors to understand what drives them. I think something very important to mention here is this will allow for a more reliable study of molecular and cellular interactions occurring in normal and neuroplastic to conditions that could be exploited for clinical purposes to test individual responses to different drugs. And that's something that is in the works and we're very proud to offer these types of technologies to our customers and it's something that we see ongoing all around the world. And I highly recommend you reading that study because it gives you great insight to what the bioconvergence technology is all about. You can go to next slide, please.
So looking at our strategic focus areas for 2021, something which is important for us to position ourselves as a business, Of course, we continue to lead the way forward as a bioconvergence company, is to structure and focus on this Very aggressive tech development R and D agenda with a tool of M and A, or being able to acquire companies when needed for strategic purposes. We will, of course, continue to deliver on our financial targets, which are going to be Which is essentially a strong growth agenda where we're it's all about providing more technologies and equipment and products, reagents to our customers so that they can do their job better, continue to focus on our customers and being able to deliver the best products and services. And of course, in addition to that, we have 2 exciting areas that I will talk about in just a few minutes. You can go to the next slide, please. So if we're looking at the first three areas here, really, as I mentioned from the beginning, our Agenda is not to acquire companies, but our agenda is to provide technologies that solve our customers' questions and needs, and we do that typically In in house development, very aggressive R and D.
But if we can acquire something faster and enter a new market and also at the same time, of course, provide Our customers are asking for, that's the way that we'll go. And we've very successfully acquired a few companies in the last 18 to 24 months, And I think that's something that we'll continue to do moving forward if that will help solve our customers' questions. We will, of course, also continue to grow with about 35% organically for the next year and 2. And of course, do that by showing a positive EBITDA. And I know Guston, our colleague here on group level, will tell you a little bit more about how this will be achieved.
And lastly, of course, focus heavily on our customers by providing the greatest customer care in the industry, by providing products that are extremely user friendly, and implement things in the centralized manner where we can both save ourselves time and money, but also save a lot of pain for our customers. You can go to next slide, please. What's worth mentioning is, of course, the customer segments and the wonderful users that we have around the world. And if we're looking at, for instance, The academic industry or the academic market, that used to be about 80%, 90% of our customer base just a few years ago. But over the last couple of years, we've worked Heavier with building up a strong customer base with pharmaceutical and biotech customers around the world.
And I would like to say We're very proud of seeing all of these great names out there and we look forward to supporting them over the next coming years. You can go to the next slide, please. Something that is, of course, also going to be extremely important for us moving forward are the partnerships and collaborations that we have established with, for instance, companies like AstraZeneca or Lonza. These partnerships are essential because we're learning more about what our customers or what potential other pharma companies or cell expert companies need to be able to operate more efficiently or to be able to penetrate new markets and provide these patients with better solutions. So I would say, probably the relationship and the collaboration with Oster has been a critical point for us over the last couple of years and how we can improve our product offering and, and of course, improve products that help them develop better treatments to be used by patients.
You can go to next slide, please. Then of course, the last two points in our strategic focus areas are really the people and sustainability. And I would say The people are the most important resource that we have at the company. We're very proud and honored to have all of these great colleagues working with us around the world. I say we have the greatest engineers, the greatest scientists, and of course, the greatest salespeople and marketeers that can provide these products and technologies around the world.
But something is important is, of course, also bringing new companies on board and making sure that we can integrate these wonderful people and ensure that they feel part of the great family. One of our great successes has always been the culture and we continue to ensure that that will be the case for the coming years. Lastly, worth mentioning is, of course, the establishment of a sustainability agenda. And we're working now for 2021 2022 to establish this first sustainability agenda for the group, establish sustainability targets. The targets that you see below are the, or the UN Sustainability Development Goals that we have selected are relevant for our specific business.
And we look forward of course to establish a report that we can report back to you in the coming months quarters. So with that, I'd like to thank you so much for your time. I look Forward to, following the day and I look forward to, your continued confidence in me and the company to grow the greatest bioconvergence company in the
world. Thank you, Erik, for explaining such passionate way, Ward, bioconvergence is all about. We will now focus on the interim report released early today as well as our customer centric M and A agenda. Here with Group CFO and Co Founder of Cellink, Gustafsson Danielson.
Thank you for that, Isabelle, and thank you for the introduction. And we'll jump straight into the financial targets as Erik briefly mentioned here during his talk. Our focus is really to grow as rapidly as possible. We established these financial targets just about over a year ago with the idea of giving our shareholders in the market understanding of what we're focusing on for the next 3 years here. So we have another one and a half years before these targets will be updated.
What we say is that we want to grow with at least 35% organically year on year. And really here the way to look at this and the balance is that We want to grow as fast as possible, preferably a lot faster than 35% year on year, but we want to do this while maintaining a positive EBITDA margin. So really what you will see and continue to see our focus being is trying to maximize that growth organically. We will continue to grow through on top of that, but really balance this with not losing money on a yearly basis on EBITDA level. And looking at the outcome for 2020, we grew faster than the target and we just achieved the EBITDA target, which is exactly what we were planning on and trying to achieve.
So this is something that will be our focus for the next year here as well. So with that you have a little bit of an understanding on what where our focus lies. Here to the next slide. So during Q1, we saw a continued strong underlying demand for all our privacy cost debt portfolio. And we saw that demand are continuing to pick up for products all across the 2 business areas and segments we're reporting in.
A couple of products are performing a lot better than others, but we see underlying organic growth or growth in all these segments. In the quarter, we saw net sales amounted to about SEK 129.5 million, which corresponds to growth of about 2 41%. And out of that, about 62% was organic growth. We closed the quarter this time with a slightly Significantly higher backlog than we've had previously. Usually, our orders in the laboratory solutions are Coming in quite late in the quarter and what we see there is that, when these orders come in late in the quarter, sometimes you can get a little bit of a bottleneck in our Supply chain being able to get everything out of the door.
And in this case, we saw that we weren't able to get everything out of the door, which is typically the case in laboratory solutions. If If you're looking in the Industrial Solutions, we have a lot longer lead times for big customer projects where we make specialized production lines for these customers. And Here we can see lead times up to 12 months on these systems. What this means is that we have a quite good outlook on how this will perform over the next 12 months and so on. And we also have then a quite significant backlog in industrial solutions that we've worked to deliver.
So the sales pipeline doesn't necessarily or the sales in the quarter doesn't necessarily correspond to the order intake as we see more in the laboratory solutions. In the quarter, we see that compared with, for instance, Q5, our revenue is quite a bit lower than in Q5. One of the main reasons here is, of course, that Q5, which was a special quarter, extended it was 4 months rather than 3 months. And this of course is are the answer. The other part is the seasonality of our business, especially looking into the Investor solutions segment of our business where we see a very strong seasonal effect where the second half year and especially the last quarter of the year is a lot stronger than the first half year.
And this is really what you see here in net sales, especially on the non organic side compared with Q5. If going to the profitability of the business, we saw the EBITDA amounted to about CHF 34.9 million corresponding to negative 26.9 percent. And this operating profit was affected by a couple of One of the biggest one was, of course, the active M and A agenda we saw during Q1, where it required Genolis as well as Matic. You would also see that our acquisition costs are slightly higher than normal for this transaction. The main reason here is that Genolis is a Finnish company And it generates a transaction tax that are typical for Finnish transactions.
So basically here about half of this GBP 28,500,000 are a direct effect from this transaction tax rather than M and A or transaction Cost that we usually have in these processes. I think a more typical way of looking at transaction costs is about SEK 5,000,000 for this average looking or average sized transactions that we are pursuing or doing at this stage. And the other aspects of the profitability that I'll just address quickly as well is when we have significantly higher volumes in the second half of the year, Especially in the Industrial Solutions segment, of course, this renders a higher profitability in that end of the year. And this is really what we see during the Q1 that The somewhat weaker or the clearly weaker beginning of the year shows lower profitability. This is according to our plans.
This is what we were expecting, but we do see that the with volume is really where our profitability comes and this is built into the business model with a very scalable business with high gross margins in the products and somewhat higher fixed costs in relation to the business. And This bridges us quite fast, good into looking at the gross margin of our business. In the first We saw quite significant improvement in gross margins. I'll go in a little bit more to the details over the next couple of slides here as well as We'll look at the services and consumers, what is driving this improvement in gross margins. We can go to the next slide.
So looking at this quarter, strongly organically, about 62% organically during the year, but we also add revenue through this value adding M and A activities that we've done, especially in the end of last with Cyanion creating this Industrial Solutions segment. We also see during the quarter that we add Genolis, which is included 1 month of this quarter. Meanwhile, Mabtech is not included in our P and L at all during the quarter on the outcome balances from the quarter. Including Genolis and Mabtec for the full quarter would have increased our net sales roughly GBP58 million. And looking at these two businesses a little bit more in closer, we see that And MATIC is a very stable business in terms of seasonality.
We see a more even revenue over the year, which Corresponds a little bit more with what we see in laboratory solutions. MATIC is also part of the bioprinting application areas and in this laboratory solutions segment. Meanwhile, Genolis, which is included in the Industrial Solutions segment, has more seasonality to it and also Similar to what we see in Siamia, where the second half of the year typically is stronger and when we have longer lead time for the products. Meanwhile, Matti generally have a few days to get these products out as it's more of a consumable that they are selling. Now we can go to next slide.
Before just addressing this gross profit, what we see then on an LTM basis is that we reached about SEK457 1,000,000 in revenues along the last 12 months here. Breaking down the gross margin development here, we see that for the past 2 quarters here, we've changed the trend of our gross margin development and improved this quite significantly over the past two quarters. There's a couple of underlying reasons to this, where the main ones are the product mix, where we see that we're selling Higher ticket items with in relation to our total sales, meaning that we have a few products out there that are An average higher price with better margins than some of our lower priced products. We also see that our Pricing power has increased over the past half year or so where we see that some of our most sold products such as the BioX, Which is somewhat of a leading star in the group, of course, in terms of sales and number of units. We see that we have better pricing position there where we're selling them for higher average price.
We also see that we're including more and more long term consumable and service deals with these And these things have a long term positive impact on our gross margin. What we also see is that The development of the in the currency market affects our gross margin quite significantly from quarter to quarter. During last year, you could see this, especially where we had a higher gross margin in the beginning of the year with higher, the Stronger dollar, stronger euro versus Swedish krona. Meanwhile, later in the year as the Swedish krona weakened to the dollar and strengthened to dollar and euro, We saw a decrease in gross margin. One of the reasons we see this is, of course, that we price all our products in U.
S. Dollars and euros And therefore, this drives, of course, the total profitability of these products in relation to the cost base. The other part here is we had a quite significant inventory, of course, which has been increasing quite significantly during the quarter. The reason for this is the build up and being able to respond to the increasing demand that we're foreseeing. And what this also generates is that when we revalue the inventory to the current market price, we see that this has a positive impact on our gross margin, which is positive margin contribution in the quarter.
However, overall, we do see a positive trend for our gross margin due to the product mix. This will continue to to fluctuate up and down with currencies, but underlying we are making more per product and we see that the product mix is helping here. So So this is the reason why we have over 80% or over 81% gross margin in the Laboratory Solutions and over 74% gross margin in Industrial where we also see similar trends to the laboratory solutions segment. And we're here to go to next slide. Something that I've touched upon a little bit is the product mix and what we're actually selling.
One thing that we're selling more of, which is Large reason for this is due to Cyanion's contribution to the group, which is a more service revenue heavy Business than the laboratory solution is. What this has done is driving the part of our revenue stemming from services quite a lot from where we saw it over a year ago. And we also see this across the product portfolio where we sell more services to with our products. We see that products is being placed for a year, they're coming back, getting more and more warranties. And this is something that we can continue Becoming better at and a large portion of service.
This is where we will get and see our profitability in the future coming from where we have a higher portion of service revenue Coming from our products that are placed in the field, we have more efficient service business as the volumes increases and This is something we're working as I have one of our focus areas actually for 2021 in. What we see now is that the consumable sales in relation to our Total sales has also increased during the year, during the start of the year here. We still see this hampered by the pandemic where In particular in Europe and Asia, we see very low usage on a lot of systems, meaning that we don't sell as much consumables as we'd like to. We see similar things in the U. S, but they are somewhat ahead where we see more orders coming in.
We are also seeing higher order intake of these consumables in relation to when they call off these orders. And this is, of course, that they have plans of starting the projects, but they get delayed due to pandemic and so on. We're very pleased to see increased service revenue, increased consumable revenue both especially in the absolute terms but also in relative terms to our business. Next slide, please. What we see during the quarter is that our revenue growth Comes a lot from the North American markets as we've seen over the past couple of quarters.
We had a 92% organic growth in North American market year on year. That's corresponds to about 43% of our total sales in the Q1. Meanwhile, in Europe and Asia, we see somewhat of a lagging effect where the pandemic has, especially in Europe, hampered a lot of our activities and a lot of our customers' activities in particular. Next slide. So during the quarter, we issued about we raised capital.
We raised about SEK3 1,000,000,000 of capital on the 12th March. We did this through a convertible issue as well as an issue of selling these shares. The reasoning behind this was that we wanted to raise as much capital as we need for the plan that we're from the plans we have moving forward, meanwhile not causing too much of a dilution for our current shareholders. Therefore, we saw a great opportunity to tap both The debt linked instrumentation such as the convertible bond has a direct share issue. As we know there was a great demand for investing into our business.
Looking a little bit on the details, the convertible issue, what this happens with is the decreasing dilution in relation to direct share issues. So we have about 4.8% dilution if these are fully converted compared with about a 7% dilution for the directed share issue for the same amount of money that we're raising. However, of course, this runs with Interest, we have a coupon of about 2.9% and stayed on the same annual basis and the conversion price was about 42.5% above The issue price, which corresponds to R558.50. The last thing I want to address here is in conjunction with the convertible issue, what you typically do is that you offer a delta placing, which means that the convertible investors The opportunity to through the banks in conjunction with the share issue, short the selling share. So we placed about 1,000,000 shares, shorting helping them to short the selling shares.
And the reason for this is that some of the convertible owners wants to have the opportunity of being long to convert and then hedge their market risk in the selling share. So these investors who are typical hedge funds and so on are typically have typically market neutral slightly positive exposure to selling in total, but they will show up as if they have shorted the selling share blank in the market. We can go to the next slide. Albert mentioned our M and A agenda briefly here. As most of you know, we are very customer centric focused on our M and A agenda.
This is what drives the different Initiatives we take in the group, we'll look at the needs of our customers, we try to address them. If we can't be the fastest or best there, We will go out and pursue acquisitions and this is something we will continue doing moving forward. And I'll show a little bit on what we've done on the next slide. So looking at the 5 transactions we've done now over the past basically 30 months or so that we've Started our M and A agenda. We have acquired 5 companies, on an average somewhere around 4x sales multiple.
The multiple we're buying on isn't as important for us as what we see, what we can achieve over the next few years post transaction. We're very long term on these. We look at about 5 years basis on what we see these businesses would be traded on in our hands and so on. And what we've seen is the spendings that we hold have owned for just about 2 years has gone from 11 times sales multiple to sub 1,000,000 subonex sales multiple. And this trend we've seen all across the acquisitions we've done with Satina Have almost half their sales multiple since we acquired them.
Same thing, we're decreasing with Xandium and we hope to see the same trends with The other acquisitions we perform. The reason behind this is that our focus is cross commercial synergies, meaning The group and the acquired entities need to be benefited by the transaction and this is our focus on foreign transactions as well.
Next slide, please.
So with that said, I just want to round off with saying that our focus from a financial perspective here is We want to continue to deliver on our financial targets, meaning showing a positive EBITDA on a yearly basis, continued organic growth and growth through acquisitions and identify these first off commercial synergies in the group and over the long period of time, we of course look at operational efficiencies and synergies that we can realize all across product portfolio. And with that said, I thank you and I think that it's up for one of my brilliant colleagues
in the
business areas to follow-up.
Thank you for your summary of the past quarter from a financial perspective. From figures and numbers to biosciences. Here to present is Business Area Manager Jonas Schandu. He is also the co founder of CITENA. Please go ahead, Jonas.
Thank you, Isabelle. Welcome also from my side. For those of you who don't know me, I'm Jonas Sundu. I studied engineering at ETH Zurich and Stanford. And after my PhD, I Co Founder, Saitina, now at selling and lead the business area of bioscience.
I'm very thankful for the opportunity today to tell you a little bit about the business area of BioScience. As you see an overview on the slide here, we're mostly active in The market's cell line development, live cell imaging, single cell omics and liquid handling, and that is distributed over 3 companies in the business area, that is Citina and Disbendix in Germany and Satina Bioprocess Solutions in Taiwan. In those market segments, we typically sell to of biopharma and biotech companies, but we're also proud to name some of the most prestigious research institutions amongst our customers. We have a total addressable market of more than US10 $1,000,000,000 annually with some double digit growth. So we're not alone.
There are other companies out there, companies like Berkeley Lights, Beckman Coulter, Sartorius, Abbect and Dickinson are our peers. In the whole business area, we have a series of products that I'll speak about in detail in some of the later slides, but generally, we follow the business model of selling instrumentation at an attractive margin and then offering proprietary consumables, reagents and services to our customers for our continuous recurring revenue streams. And we anticipate those recurring revenues to that Portion to increase over time, but as of today, we're very much in the phase of increasing our global installed base with The market position differs slightly from different market segments. For example, in cell line development, we have some of the earliest products for single cell cloning in the portfolio. And here, we have most of the major pharmaceutical companies as our customers and we continue to work with them.
In other segments, We were challengers in or very fast growing challenges of traditional solutions. Now on the next slide here, I want to talk a little bit about some of the major trends that we see in the industry today. Firstly, biosimilars and bio betters. These are basically generic drugs to biologics and biopharma drugs or biologic have been around for quite some time. So now there are some block Postbusters that come off patent.
And what happens if they come off patent is that there are multiple companies for each individual drug that try to come up with a biosimilar or bio better. And that in turn means that there's a lot more companies in need of cell line development. And that's a phenomenon that we see across the globe from U. S. To Europe to China.
And We see that cell line development is really becoming mainstream these days. Secondly, cell and gene therapy as Doctor. Langer has introduced as well in his introductory talk, it is a very, very dynamic market. And that is something that we've Only tapped into recently and it's a huge opportunity for us. The cell and gene therapy space or CGT space is becoming more and more mature.
It holds the offering for unheard of therapies and people in this industry are looking desperately for tools to manufacture their drugs. Thirdly, software and automation. In the past month, we've heavily intensified our activities in software development and automation. The life science industry has always been lagging a little bit behind some of the other But the pandemic seemed to have broken that barrier. People have realized that it is Essential to have the ability to run your crucial processes with limited staff.
So we see
a lot of
requests from customers for semi or fully automated solutions. And together with our most recent sister companies, Cinion and Genolis, We're ideally positioned to offer best in class solutions here. When it comes to software development, we've built up Very strong core expertise in biophysical image analysis and we can leverage some of the Very exciting and recent advances the field has made in machine learning and artificial intelligence. Lastly, number 4, there is single cell omics and analysis at omics and we've seen continuously accelerating trend towards analyzing samples on a single cell level. Traditionally, people have been looking at, Say a patient sample in bulk and now more and more researchers want to get Single cell data from these samples because it gives them a myriad of data and allows them to draw better conclusions.
We have some really nice tools for these people, especially in sample prep. So on This slide here, you see some of the main applications. So in general, we have a bunch of products in the offering And we cater to many different customers in the life science industry. But in general, you can summarize our applications areas into Biopharma Cell and Development, where we sell to customers in the biologics, monoclonal on antibody or cell and gene therapy space, liquid handling where we offer some unique technology for volume reduction, Live cell imaging, where we offer some great microscopes and analysis software and single cell analysis or single cell omics. And in the background of this beautiful slide here, you see some of our beautiful products.
And we're strong believers that our product design should always reflect the quality and ease of use of our products. In the top left corner here, You see our main product for cell line development, the upside. And the upside is part of the workflow that I want to talk into more detail on the next slide. So, there are 3 workflows in total I want to speak today about. First one is cell line development and cell line development is really a key process in getting a biopharma drug or biologic to the market.
Most of the best selling drugs today are those biopharma drugs and they are produced in such cell lines. These cell lines have to be derived from a single individual cell in the beginning as is required by regulatory bodies such as the FDA. Traditionally, cell line development is a very complex and expensive process, as you can see on the top half of this slide here. I'm not going to go into very much detail. We can spend more time on this in the question section later.
But I want to illustrate how complex this workflow is and this workflow is on the critical path for any such drug to hit the market. That means on average, any week you save in this process allows you to get your drug earlier on the market. And remember, there are multiple multibillion dollar biologics on the markets today and that might only have 10 years or so left on the path protection when they launch on the market. Now on the bottom end of this slide, you see Our workflow offering including the upside. The upside is a recently launched product that Combines multiple instruments into 1 and combined with the Seabird system that we offer at Sartina BioCryst solution, It allows you to save up to 13 weeks in cell and development.
Now assuming you're a biopharma company And you have a US1 $1,000,000,000 annually selling drug out there or want to get it out on the market. Saving 13 weeks, that's roughly a quarter of the year, allows you or gives you the
Jonas, we cannot hear you at the moment.
I'm not sure if everybody sees the video now. I can't see it here on my end. Okay. So I hear that everybody else is seeing the video. If you've seen the video, it shows the upside really nicely in action with our double assurance of clonality and It shows nicely how we dispense individual cells into each well of such a micro well plate, how they're used in Cell line development and the upside allows you to generate hundreds of such clones for our end document, the clonality of these cell lines for the FDA or other regulatory bodies.
So now on The next slide here, you see our beautiful workflow for next generation sequencing library prep and that's the go to method for analyzing genes. So, There's 2 ways of implementing this workflow. You can do it for single cell sequencing, but it is also used heavily around the world to ramp up sequencing capabilities for finding COVID variants. In the case of single cell sequencing, the user starts by sorting single cells with one of our single sales orders. The full workflow then continues with our sequel reagents, The iDOT for nanometer dispensing of reagents and the seawash systems for DNA purification before these samples go into the sequencer.
The iDoc product is one of our fastest products and It allows you to really precisely and really fastly dispense very small droplets, nanolitre droplets in very, very flexible manner and is currently rolling over the marketplace. The seawater system is also something that we launched recently late last year And in this setting, it allows you to save up to 3,000 pipette tips per next generation sequencing library prep. And it's a whole bag of plastic tips that A, doesn't need to be purchased and B, doesn't need to be thrown into waste. So on the next slide, you see our workflow for High content screening with cell based assays. And every time you start a drug development process, You test your compounds or your candidates for the drugs on cells.
And to do this in a consistent manner, What you typically do is you grow your cells and you stain them or you add a certain reagent and then you need to wash these And that is something that you can very, very fast and consistently do with the C Watch system and then take those cells and image them in our cell site microscope that allows you to image these cells in a time lapse live cell imaging manner in the incubator. The results can then be read out with the CellCite Studio software. And yes, that's the exact same seawater instruments that can be used in this application as well. Ease of use is something that is very, very close to our hearts. And on the next slide, you'll see some snapshots from the beautiful sell side studio, which is unbelievably easy to use.
And here on this video, you see how easy the system is set up. It allows you to See live images and analysis in the same view. You can basically run up to 600 experiments in parallel. It offers 3 color fluorescent imaging for very, very sophisticated studies. And We offer an AI based analysis package that trains on individual customer sales.
So You can train specific applications for your questions at hand. And this AI package will become Even more important in the future and more future load. So we believe this system is really democratizing Some of the science that has been very, very complex and expensive to do in the past and we're very, very excited about to sell more of these systems. So, looking forward 2021 and we're really focusing here in the business area, biosciences. There are 3 focus areas.
1 is growth, Then there is applications and workflows and software development. Regarding growth, we are already today on an exciting growth trajectory and we want to accelerate our growth, especially when it comes to recurring revenue streams such as consumables and reagents. And we want to do this whilst showing profitability. We continue with our customer obsession, especially in focus area 2, applications and workflows, where we focus on the applications, such as Cell and development, we have already most of the big pharma customers as loyal partners. We have Single cell omics where we're offering a suit of exciting sample prep products and high throughput screening or high content screening where we offer unique nanoliter dispensing, high throughput cell washing system and live cell imaging microscopes.
And we want to always go to the customer and offer a broader offering in a workflow. We don't have a full workflow in all of these applications as of today, But we're filling the gaps very, very rapidly and we see huge value add by going to a customer and being able to offer an entire workflow end to end. So lastly, we've heavily intensified our recruiting efforts in software development and we've been able to grow themes here in selling bioscience by 50% in this year, only in the 1st couple of months of this year. We believe there's Significant value to be added in our existing hardware just by adding more features in the software and that is Meaning systems that are out there with customers already and more systems that we will bring out in the future or sell in the future. So software products will be a main value driver for us in the future.
With that being said, thank you very, very much for your attention and the opportunity to speak here. It's been an honor to present some of the stuff that we do at on Biosciences and I'm very much looking forward to the Q and A that we will have later in this session. Thank you very much.
Thank you, Jonas, for sharing your insights about biosciences. We will now have a 5 minute break. See you soon. Welcome back. This time you will meet 2 members from team Cellink, presenting Business Area Bioprinting.
It's Arthur Era, Business Area Manager and Cecilia Iadebaugh, Managing Director for Cellink's Bioprinting Business. Over to you, Arthur and Cecilia.
Thank you very much. So hello and welcome. My name is Arthur Reil. I've been in the company for more than 3 years. 1st in the Board and from 1st January this year fully operational.
I'm going to take you through the business area of bioprinting that I'm responsible for. And 3 d printing was the beginning of the selling journey and its success. Next slide, please. So the business area of bioprinting has now 2 companies, selling bioprinting and Mapek, which is our latest acquisitions. We are the market leading company in our area, and we offer solutions and services for creating and enabling advanced three d models for drug screening, Regenerative medicine, medical devices, organ and human ownership applications.
As a near term driver, I can mention that there are around 11,000 academic institutions, which represents a value of around $500,000,000 and around 4,000 cosmetic operations with a value of $900,000,000 Selling currently serves more than 1,000 sites of those 10% penetration and selling has around 1,000 systems in the field. And the long term driver, the pharma clinical market is around $50,000,000,000 big. The 3 d printing market is expected to reach 1.4 $1,000,000,000 to $4,000,000,000 by 20.24 with a CAG of 20% to 35% annually. Our market segments are mainly research, for example, regenerative medicine, through the cell culture, drug development and the clinical and medical, for example, blood vessels, Bone, cartilage, skin, pills, tissues, implants, prosthetics, skin applications, microfluidics, etcetera. Our customers are within a wide range of segments as Pharma, in cosmetic and industrial food companies and also in the metric industry, in academia and research organizations.
And to have a sustainable long term business model, we offer complete solutions with instruments, Regent Consumables and Services. Next slide, please. The 4 major trends that will drive the future of bioprinting are the following. If we start with the first one, which is the bioprinting itself and its Technology. For users' perspective, for example, there is a need of proof of concept, rapid prototyping.
It can be a study of cells and organoids and treat complex environments, etcetera. And also maybe also to understand how the cells work in these conditions that lead to develop new in vitro models of tissue and organ engineering. And in production perspective, this provides, for example, Shorter lead times, scalable production, food and culture printed or additive manufacturing. Number 2 is tissue models. The possibility to increase the accuracy of in vitro models mimicking the human body, which reduces the need of animal models, and this is applicable for drug discovery and toxicology.
The third one is the microfluidics. For example, applications within human and organ on a ship, Human and systemic to get more reliable in vitro models than mimic the human body. Or it can also be vascularization, Vascular Regeneration, for example, artificial vessels, neural regeneration, etcetera. And number 4 is personalized medicine from one treatment fits all to personalized medicine and treatments based on individual patient data. Next slide, please.
This is our offering. We have the widest Our most complete offer in the market with light and laser based bioprinting. We have a solution based bioprinting, bioinks, so what we call consumables or agents and tissues. And of course, we offer services as well. Cecilia will address this more in detail in the coming presentation.
So When someone says cell culture, most of the time they are talking about 2 dimensional or 2 d cell culture. This is when cells are cultured in a petri dish or well plate in 1 or single layer on a completely flat surface. The problem with this is that humans are not flat. Tissues are three-dimensional objects and Studies have shown that cells that make up these tissues depend on the proper geometry and function. Now 2 d cell culture has been the best model for the cell and molecular biology since the early 1900s.
But now with the 3 d cell culture techniques, we have adopted those decades of research to develop more accurate models with the right geometries. Today, we can culture cells in 3 d either by using the native ability to self assemble the scaffold free approach or by providing and extra material that they can attach to interact with or a scaffold base. The 3 d bioprinting techniques We have developed our examples of the scaffold based approach, but we also have products in our portfolio to support the scaffold free cell culture. These 3 d cell models offer researchers a way to get more accurate results that will lead to more effective pharmaceuticals much faster. And eventually, these 3 d cell models will become transplantable And we will have created a new market for 3 d printing therapeutics.
Next slide, please. So as far as scaffold free approach are concerned, The most common application are spheroids and organoid development. These are small bunches of cells from a specific tissue that's self assembled into spurs to unstaff mimic the tissue that it comes from. Researchers have come up with many different ways to create this experience, as you can see here. And this is especially beneficial for cancer research.
For example, if you think about a tumor, In essence, it is all a ball of cells that grows uncontrollably. But in 2 d, you are not able to mimic the geometry. This often leads to inaccurate results for drug discovery research with cost pharmaceutical companies both time and money. Creating a tumor model in 3 d allows cells to behave as they would in the body, making drug testing more accurate. The same is true for scaffold based approaches.
When cells are mixed with materials that make it easy for them to self assemble, Researchers can create more functional models faster. And when these cells, lab and materials are 3 d printed into the correct geometry, Then researchers can leverage the combined benefits of the biomaterial and the architecture to create a model that more accurate mimics in the in vivo environment. Next slide, please. So to explain you this picture, if we look at the trajectory of the In terms of its physiological relevance, we have Traditional 2 d cell culture, it has been the workhorse of cell and molecular biology for decades. Then the Scaffold free models, which offer the benefits of in vivo geometry, are now our Scaffold based bioprinting methods, which offer both enhanced functionality and topological benefits.
Our products are designed to support the development of these scaffold based technologies for our customers. Together, we will move to the next paradigm in Biotech and Pharmaceutical Discovery. Our customers right now are much focused at the beginning of this paradigm shift. The models they developed with our technology are already replaced in animal studies. And as these models became more complex Our clinical relevant, those new ways of creating implantable tissues and eventually organs will constitute a new normal in Pharmaceutical Testing and Drug Development.
Our customers I'm working in tissue engineering, basic cell biology, drug discovery and even soft robotics. But what they have in common is that their work is unique and recognizable. The value of a bioprinting Technology to them lies in the flexibility of our bio printers to create complex structures, of a high throughput and the ability of our bio inks and biomaterials to offer unparalleled quality on functional relevance. Next, please. But not all Researchers are interested in developing the models themselves.
For researchers who are more interested solely in drug discovery or toxicology, We have also developed ready made humanized tissue models that are ready for testing. This technology not only limits The need of animal testing but also provides a model using human cells. As beneficial as animal testing has been for drug development, now it's time to do better and be more sustainable and generate results that can be applied directly from the bench to the bedside. Our goal is to provide the technologies that for the development of the right therapy for the right disease and for the right individual. Next slide, please.
This goal is even shared with regulatory organizations as a new mandate from the U. S. House of Representatives and saw that the reduction of animal testing and drug prices in the pharmaceutical industry. The only way to meet this goal is to develop Relevant humanized models. Perhaps the representatives are primarily concerned with ethical concerns, But we know that this initiative will also foster more effective data generation, increase profit margins and even capital gains and serve as the foundation for a better way of the pharmaceutical development.
Next, please. One of the examples we have among our tissue models is the Milano DERM model. This is probably the most fascinating model to me. Anyway, this model is ideal for the assortment of the skin lightening agents and formulations. Melanoderm is used by dermatology scientists worldwide, replacing animal models as well as reducing the time and costs associated with clinical testing by screening compounds and formulations in Mapex Melanodon 3 d tissue model.
This model contains primary human melanocytes embedded into the epidermis, similar that of in vivo. This model, you can see in the image, when treated with water Or untreated over the course of 6 to 14 days. The model actually pigments in the dish, and so it's really fascinating to watch it happen. Looking at, obviously, the effects of the toxicity on the skin models from the creams or formulations of raw materials, and we'll also look at the pigmentation or the level of lightning that the active ingredients do cause. Next slide, please, Cecilia.
You are welcome to present.
Thank you, Arthur. My name is Cecilia Ebero. I am Managing Director of the Bioprinting Business. As Erik shared with you earlier, selling started by creating the world's first universal bio ink. And in order to democratize the industry, selling also developed affordable and user friendly bioprinters.
3 d bioprinting today represents approximately 6% of the 3 d printing market, where of extrusion based is about 1 third and light based is about 10% to 15%. The Incredible system, which you can see in this picture on the bottom left, was the 1st extrusion based printer made at Cellink. Based on customer feedback, the Incredible was created with a lean, open design, exceptional functionality at an affordable price. It also comes with our patented clean chamber technology, which uses UV lights to create a clean environment inside the printing chamber. Then came the Bio X, which is our flagship bioprinter as Guston mentioned earlier.
You can see it on top meadow. With this instrument, we introduced a truly market disrupting touchscreen display. It comes with 3 slots, As you can see, for our patented exchangeable print technology and has temperature control for both the print head and the print bed. This instrument is 2 times winner of the Red Dot Award. The Bio X6, which is just below the BioX in the picture here, offers the same standards of quality and functionality as our flagship BioX, while also offering an unparalleled flexibility and user experience with 6 printheads, allowing researchers of advanced applications greater complexity in creating multilateral structures.
Also this system is a winner of the both the Gold and the Red Dot Awards. The Luminex, which you see on the top right, is a digital light printer. It is actually the first to DLP bioprinter in the market. This printer works by projecting light in a specific pattern onto a photosensitive material, 1 layer, 1 entire layer by layer. When the light is turned on, the material hardens everywhere where the light touches.
The places where normal light is present stay liquid, which enables development of vascular models. The Holographic which is bottom right is a laser based bioprinting technology. This system uses a similar mechanism as the Luminex, but instead of projecting light on an entire layer at once, This system projects light point by point. In this way, much smaller constructs and much higher resolutions can be achieved and much faster. The Holographic can print up to 150,000 points of lights per second.
Our mission is to secure all types of applications of 3 d bioprinting, offering customers complete solutions with high quality instruments and bioinks. This is how we will continue to outperform the market. Please let's see an example of what we can do.
Bioprinting unlocks the potential of creating in vitro organs. By taking medical scans that are translated into codes, which are used to create 3 d models, researchers and clinicians are able To recreate rare conditions, like defects in aortic arches, to study, plan, and execute personalized treatments.
Thank you, Cecilia. So summarizing, Focus for 2021. The first one, we will continue with strategic acquisitions and capitalize on the synergies in the group. We will focus on technologies that will fill the gaps in our products offering and as well to broaden our portfolio of regions and consumables. Number 2, We will continue our mission to contribute to decrease the animal testing by providing market leading solutions.
And number 3, we will explore the commercialization opportunities in personalized medicine, microfluidics, on vascularization and the regeneration of organs. Thank you very much.
Thank you for your presentations. We will stay in the wonderful world of bioprinting. Product development is the backbone of the CellLink Group. Here to present the BioMDX series, and the first time ever technology is converging from different parts of the group. Doctor.
Hector Martinez, CTO and Co Founder of Cellink and once again Cecilia Iadebo, Managing Director for Cellink's Bioprinting Business. Please go ahead.
Thank you for welcoming me again. Thank you, Isabelle. And it's truly an honor for me to present a truly customer engineered technology, which will take 3 d bioprinting to an industrialized level. As I told earlier, selling started by supplying benchtop 3 d bioprinter to democratize the industry by making it affordable and user friendly. We then listen to our customers and develop the award winning BioX system as I told you about earlier.
This is today the world's most sold 3 d Bayer printer. We have now listened again and we are now presenting really the next generation of bio printers based on our customers' feedback. The BioMD X series is the first of its kind. It is optimized for high throughput biofabrication combined with high precision dispensing and quality control as well as a unique modularity of technical combinations. This unique medical device crossover has been enabled by combining technologies from the companies within the group.
The BioMDX technology, as I said, enables both high throughput as well as high precision and quality control. This is truly key for key R and D labs and companies engaged in drug development, to perform disease modeling, drug efficacy testing and toxicology testing. This is enabled through high through batch production of smaller constructs or in well plates, followed by analysis. This technology is also key for R and D Labs and companies engaged in production of smaller implants such as cartilage, in skin, cornea, tissue patches, etcetera. This technology is also key for companies engaging cosmetics, as Arthur mentioned earlier, but also personal hygiene and wound care developments.
Our vision with the MDx technology is to enable these companies to filled their missions. We at Cellin continue on the journey to create the future of medicine, a future of superior insights and free of animal testing, thanks to more physiological relevant models. We believe this is a true win win win.
We are witnessing a paradigm shift in cell biology. Researchers are trained to 3 d models in order to better replicate an in vivo model in order bring us one step closer to the world of personalized medicine. At the center of this revolution are bioprinters. At Cellink, we work closely with our customers to provide them with the technology that enables them to create the future of medicine. As their research advances, We get to work innovating and developing the industry leading bio printers.
The BioMDX is the first of its kind, Optimized for high throughput biofabrication, combined with high precision dispensing and quality control, as well as modularity Technical combinations that allow scaling up of your research and the production of bio constructs with the utmost efficiency, allowing companies engaged in drug development, regenerative medicine, production of 3 d implants, as well as cosmetics and wound care development to fulfill their missions. Together, we continue on this journey to create the future of medicine, a future free of animal testing and superior insights,
Hi, everyone. My name is Hector Martinez. I'm CTO and Co Founder at Cellink and CTO for the Cellink Group. Welcome everyone to the world of 3 d bioprinting and thank you Cecilia for the wonderful talk. It is my pleasure to introduce you to the latest product development that simply enables self friendly precise and user friendly bioprinting at unprecedented speed and high throughput.
I'm going to show you a few features why the BioMDX is the first of its kind and Has has been established as the medical device crossover enabling biomedical researchers to transform their biomedical innovations into medical applications and is truly opening the future of personalized medicine. So how do we at Cellink enable this you may ask? By converging over 25 years of R and D in a wide range of cell printing technologies, high precision robotics, software development, machine learning, UX design And most importantly, biology. That's how we enable this. We're also building on the patented clean chamber technology.
The BioMDx offers uncompromised sterility and with HEPA filters and uvc germicidal lights And also we're offering the largest printing area of any other system in the market, 82 by 36 square centimeters. To put this into perspective, our customers can now print more than 30 large size medical devices in one run compared to 1 by competitors. Also, if you can go to the next slide, Also our unique and patented technologies in microliter, Nanoliter and ultra high picoliter printing resolution, we're enabling unique applications for bioprinting microtissues at single cell resolution to single sphere of resolution and all the way to printing microtissues with multiple cell types and more complex vascular features and multi scale features. The BioX has up to 6 print heads and can also be equipped with up to 6 dispensing channels allowing our customers to leverage multiple biofabrication modalities in one system. Also to demonstrate our strong commitment to the bioprinting community, The BioMDx users now have access to the unique SidorP technology through the acquisition of Cyanion.
This now enables them to place multiple cell types and spheroids in an arrangement which makes more sense from the biology perspective. So for example the Sizer of PICO can be used for patterning cells or biological gradients at the cell level while the Cytron Nano can be used for patreon biological gradients directly on the bioprinted filaments. These are really innovative and fascinating technologies. Also, now today with the BioMDx users can Appreciate what precise control, temperature control really means when working with temperature sensitive materials such as collagen and cells. The BioMDX can print the widest selection of materials in the market And this is basically due to the dynamic range of temperature control in the printheads, print bed and printing chamber.
We have converged all of these advanced technologies into one product and it's coming from one purpose in mind where we envision a world where patients and doctors have access to personalized living implants to repair damaged tissues. Next slide, please. Here in this slide, you can see the BioMDX workflow for batch product for batch bioprinting of personalized medical devices. In the first step you have the researcher mixing the desired human cells with tissue specific bioinks in initiating the bioprinting protocol. At that point the automated bioprinting starts Then during the bioprinting process we can, the user can utilize the SIDRUP technology to precisely pattern cells and biological gradients such as growth factors at the micro and macro tissue levels.
And this is to stimulate the tissue development. At the end of the bioprinting process, The tissue's 3 d structure is stabilized by exposing the tissue to light or temperature changes. Then the BioMDX is also equipped with computer vision systems to be to inspect and quality assure these 3 d tissues with the help of machine learning algorithms. The researcher Then puts the quality assured bio printed tissues inside an incubator over a period of time for maturation. During the maturation period the research can also do a number of widely available analysis that we also support.
This include qPCR, single cellomics and high content live cell imaging. This is to determine the maturation of the tissue tissue, The human tissues. What's also amazing about this workflow is that it can also support the drug screening process. Francis Collins, NIH Director said in 1 in a TEDMED talk, we test drugs on animals and it's not reliable. Ultimately, the ability to develop and test medicines will be you on a chip.
He said this while describing the challenges with animal models and the new developments in 3 d tissue models. This is the market most advanced bioprinting workflow that our customers will leverage to push the limits of science and we stand behind it. Day after day our passionate and persistent team empowers biomedical researchers with the tools they need to bioprint human tissues. We find our customers truly inspiring and we share their vision. This is why when our talented teams make the impossible possible, the result is another award winning product that customers love.
I invite you to follow our journey as we continue to serve the thousands of biomedical researchers which are part of selling bioprinting community, which is also the largest in the world and as we continue to provide them with the latest bioprinting technologies in the market. Thank you for your time.
Thank you for presenting in detail about the BioMDX series. With our next session, we would like to highlight how we work and interact with our customers and collaborators. This will be hosted by Ittidal Namro Redwan, CSO for Cellink Bioprinting and Marianna Andragi, Head of Customer Success.
Hello and welcome everyone to Cellink's 1st Capital Markets Day. We are, of course, very excited to be part of it and, of course, very honored to have gotten the responsibility to present our customer session today as well. Our first customer today is Ajay Melet from Roanoke. He is the CEO, President and Co Founder.
Thank you for joining us today, Ajay. Could you please just start and tell us a little bit about how to get to know Cellink?
Sure. And thank you for the invitation today. I'm excited to be here. Our journey with CellInc started several years ago when Cellink was actually just starting and we were looking at 3 d printers on the market. And at that point in time, Cellink was offering the incredible.
And as I got to know the founders and the team, what really impressed me And why I ultimately decided to purchase an incredible had to do with the customer support. And from there, Over the years, we've had a wonderful relationship that has just evolved.
Great. And what problems have you bought so far?
So far since Roanoke has spun out from our former university, we have acquired the BioX, multiple Luminex's and the also Forgive me, the Cyto microscope.
Yes, that's right. Yes. And how do you use these products in your business today?
So today, we actually use both the Luminex and the BioX in tandem for different things. The Bio X is our main workhorse bio for prototyping new designs and new hydrogel scaffolds. We use the Luminex actually for production and we make our primary product using the Luminex and then we use the CytoSight to actually do a lot of our QC work and looking at how cells perform in our hydrogel scaffolds.
Right. That's great to hear. Thank you for sharing your story with us today, Ajay. We really appreciate your time.
My pleasure. Thank you.
Our next collaborator is Doctor. Richard Hohner. Is Associate Principal Scientist in the Respiratory and Immunology Group at AstraZeneca.
Hey, Dan.
Hey, good morning, Richard. What a pleasure to have you part of this discussion here with us today. So can you tell us what the partnership between us is about?
Yeah, I think we've been partners for 2 or 3 years, maybe 3 years now. It's been we have a Full time self in person on-site to help us implement some of the technology. We have 3 or 4 of the bioprinters at our location. We have the Bio X, the Luminex, the new imaging machine, the Cyt X. And, yeah, I think it's helping us develop models for drug discovery.
We're trying to do fluidic devices, Incorporate the new technology into our work stream for drug discovery.
Thank you. Thanks for sharing. And what questions are you trying to solve with our technology?
Yeah. We're trying to develop new models. I guess, right now, we're trying to get ex vivo better than 2 d culture. We're trying to make These fluidic models of different tissues, things like gut, liver, lung modeling. We're also People are interested in some implantable devices and these kind of things.
So there's a lot of different things going on. But I think it's just more getting the technology to develop. I think it's new technology. We've got to get into the pipeline. So it takes a little bit of Nudging to get these things up and going.
So I think it's been very helpful at CellLink to have these Technologies and help the assistance in developing these technologies.
I'm very glad to hear that. And we know that you have a rock Star helping you out in AstraZeneca, Gaithersburg. But how is it to work with the selling team when they are on-site and helping you really solving Yes.
That's great. I mean, that's super helpful. I mean, Chris has on-site. He needs to see anything we think anything from designing a new model, he helps You can look in the background and if he doesn't have an idea, you can contact the CELINK team and all the knowledge that you guys have from the bioprinting. You can share anything non public kind of models and different aspects of gel design and incorporating cells into these models.
So it's been very helpful in developing this technology a lot faster Than it would be on our own. And I think it's a great interaction. I have a postdoc working with Chris. And I think there's a lot of different groups have different ideas, and I think it's good to get These ideas developed and incorporate this stuff into the pipeline.
Thank you very much. Of course, we're looking forward to a continued amazing collaboration with you, your team and everyone else at AstraZeneca Gaithersburg. So last but not least, we have Doctor. Bernard Choi. He's principal scientist at the preclinical development department with expertise within quantitative bioanalysis and laboratory automation at Merck.
Yes, today. I would like to start by asking you a little bit about how long you have worked with Cellink and how has the relationship solved over time.
So we're relatively new customers to selling. We just purchased a few iDots, this past year. That said, we've always had an eye on your products for specifically iDOT for years. We were always interested in contactless dispensing capability, but the timing at the time A few years back was just not right. We were heavily invested on existing workflows using the traditional air displacement pipe bending liquid hangars.
But more, but now there's an increasing interest in miniaturizing our assays, having the capabilities to do Design of experiment and the mainstream availability of machine learning and data science capabilities is making Tools like the iDOT increasingly more important.
Nice. Can you describe a solid bit of your business, your current challenges and also what is your mission?
So part of my duties is to improve the overall efficiency for quantity of analytical workflows from discovery to the clinical Groups. We're always looking for faster, more efficient, more cost effective ways of doing our work. Traditional automation systems using air displacement tend
to be slower. They tend
to use larger volumes reagent, which tends to be costly. In addition, programming, the larger liquid handlers Can be quite complex and the IDAU provides a platform that can do a lot of those features in a more compact user friendly platform.
And how would you work nowadays with the selling products?
Well, we acquired a few iDOT products and we're closely evaluating them for support for discovery assays, PKPD, quantitative biologics and vaccine workflows and PCR. We're hoping, that a lot of functions performed that's traditionally performed on AD Displacement pipettes systems can be transferred to your platform. So we're heavily exploring that opportunity.
Great. A lot of good things happening. Thank you for your participation today, Doctor. Bernard. Well, Glad to have had the chance to share these customer stories with you all today.
And thank you, everyone, who's listening for being part of this event, and we're hoping that you enjoyed it as much as we have. And if you're interested in finding out more about all the amazing work that our customers are doing, Please do visit our customer spotlight page. Enjoy the rest of the event and, of course, the rest of the day.
Thank you, Tim Selig, and an extra warm thank you to Adrian Melot, Richard Nedhana and Bernard Choi. We will now take a break. See you in 5 minutes. Welcome back. In September 2020, Cellink acquired Cenion and Business Area Industrial Solution was born.
Holger Eichoff, Business Area Manager and Founder of Cinion, will now present Industrial Solutions.
Hello and welcome to the Industrial Solutions section of the Digital Markets Day. It's a pleasure to present this for you here. We have been part of It's a selling family now for a little bit more than half a year. And it has been we have had a very warm welcome. It has been a pleasure to work with the team in Gothenburg and it's really nice to see all the Synergies that we go for together.
And just as a remark because Professor Lang mentioned the Nanotechnology Sensei Great Future. I hope that after today's presentation you will appreciate What Sineon and Genolis and Selenium can do in a 1000 fold smaller format because we deal with Pico technology, so pico leaders. The business area of industrial solutions actually consists of 3 companies Well, we have Sinion as a precision dispensing company, Selenion, originally a spin off from Sinion as a Single cell, a precision handling company and Genolis that has been part of our business area Now for the last two and a half months, which are absolute experts in automation and We have great synergies with them, especially in the diagnostics and biosensors market segment. That's where we are Very active in and where we share the same customer base. And all companies in that Industrial Solutions business area, We enable our customers to automate processes with picoliter and nanoliter liquid handling.
And with this kind of very small amounts of precious, typically very precious reagents, we enable the generation of very, very affordable test because the cost of goods go down significantly. In our sales and business model, we sell instruments, consumables, services. And in contrast to all what is the main competition, we also sell contract manufacturing, meaning that customers that approaches us can opt for either an instrument or a service, which none of the competitors according to our knowledge does. The total addressable market for for diagnostics and biosensors is about SEK 40,000,000,000, it's estimated to be SEK 40,000,000,000, single cell analysis currently about SEK 2,000,000,000. Both are growing at a 2 digit rate and we are trying to address this market with our product offering where I've listed the names here, so CyFlex Arrays from SINION, CLFDA, PIXI, CECILIAs, Ginger Software are from Genolis, CellonOne, CellonOne, Fluorescence, Cellon Chip and Proteo Chip are products from Selenium and we as Sinion also sell readers and contract manufacturing.
The Customer base is mainly diagnostic companies, but also bioprocessing and pharma companies, research organization and academic institutes. And as a fundamental business concept, we try to accompany our customers from very early R and D to full scale manufacturing and by doing so, we have gotten quite good market position in the diagnostic space where We, especially on the pandemic times, a lot of the diagnostic players are SignOn and Genolis customers or selling customers now. And we assume we are the precision dispensing market leader. And we are very fast mover in the single cell, enormous and proteomics field. And also we entertain a lot of key accounts in drug delivery.
So what we see as a major market trends right now And the market drivers are molecular diagnostics and variables. So and without going into detail with that, We have a lot of customers in the human diagnostic space, but DNA is DNA and we also We really empower systems in veterinary diagnostics, food and feed and also in kind of chronic diseases like cancer or rheumatoid arthritis. We are very active in precision medicine where we provide the ultimate soup precision at a single cell level to our customers, especially also for COVID testing, there is probably more than 20 companies that utilize our technologies for nucleic acid testing and Antigen testing, PCR, LAMP, whatever we are in there, we propel early technologies forward. And what we have seen in the pandemic It's also that there's a lot of companies actually have moved back from low cost labor countries into back to their home basis because with the human labor, a lot of Mistakes got introduced into the products and that can be get rid of with kind of automation and appropriate software which we have and this kind of helps us moving forward. And Some of the products utilizing our technology are shown on the next slide.
Where from left to right, you see probably what many people We have seen over the past year or so a COVID lateral flow test. We are also very, very active in all kinds of Sensors and variable business starts with typically with some big applications like Diabetes and continuous glucose monitoring, but it's not limited to that. So we are active in programs with sweat sensors or breathalyzers. More to the right, you will find in the center of the page down Kind of medical device, which is a drug delivery device from a company called Tandem diabetes, it's an insulin pump called t:slim that's completely built utilizing selling technologies and we have also Other drug delivery systems, which are shown in the little bit greenish color, these are microneedles that at 200 micron high and that were originally developed as a vaccination tools for pain free delivery of a vaccine originally for flu. Maybe this was going to come back at a later stage, not only and there's other applications for that in the cosmetics area as well.
And we also offer single cell omics solutions, which have entered the scientific community and which is actually resulting in great papers from a number of with groups throughout the planet and how the technology works in detail is shown on the next slide. So we are a precision dispensing part of the business and we Combines the dosing of nanodetal amounts and of picodetal amounts of both Dead matter solutions containing DNA, proteins, antibodies and the like and living matter. And the color code for that is everything that we dose in that It's labeled in green and everything living is labeled in pink. So we call those products SyFlex Arrays, it's the left hand side and on the right hand side that's the Cell M1 technology that is utilized to dose single cells and all but also other particles like Spheroids and organoids and you might easily imagine with what Arthur and Jonas have mentioned before what that means in an automated process, which are the processes that we are after, which is scaling those technologies that are from an R and D perspective, as mentioned before. And the next slide shows you how those look like.
So we have a flagship product called the SyFlex Array S100, which is Fully scalable, automated and conveyor belt based system for precision dispensing onto any kind of substrate into any kind of cartridge. And What we have done to all those lines is that we have actually added a lot of quality control so that we know exactly now in contrast to many others in the field what goes on, where we have deposited something, what volumes were there. And again, Since we are delivering very, very small volumes, which can be as low as 10 picoliters, We are typically very, very sustainable, resource friendly and Allow Elke kind of a very, very inexpensive diagnostic product in the end. And one of the products that was really asked for in the last 12 months is shown on the next slide, which is a Product for lateral flow device manufacturing and this will be delivered over the course of the next years for cartridge making of all the rapid tests that many of us have seen and that we have probably used and Possibilities that you might have used a test that has been produced utilizing selling Technology for COVID testing is relatively high.
So we have those LFDA makers, which are actually the cartridge makers for any lateral flow test that can be as quick as 80 parts per minute per line. They have a standard footprint, but still very flexible in terms of kind of what Cartridge has to come in and get out. There is all the kind of intelligence software and QC in it. And what is very important for us is that this is a modular technology because with the modular technology we can add functionality to the systems and which enables us to meet all the upcoming requirements for future products. And a more integrated line is shown on the next slide, which is A complete medical device manufacturing line that is utilized for Making medical products and in order to To get this product, there's a lot of R and D results that have to be implemented into those modular systems.
And as you can see in detail, it involves surface treatment, so with kind of, for example, plasma spray coating, UV curing, Dispensing all the testing, marking for good parts or bad parts, cutting everything, Singularizing stuff, drying, bonding, ultrasonic welding, assembling everything together and Package everything, so really have an end to end solution for our customer. And we since we are Not only engineers, but also biologists in the company. We try to add more biology to Zol systems and this biology is shown on the next slide, which is the Cellin-one technology, which is a technology that allows to dose single cells living and we have outstanding data for recovery of all kinds of different cells. And beside all the applications that Jonas was mentioning earlier In cell line development and the OZ automation that comes along with this, we are very much after the markets in liquid biopsy and also getting a more consumable business with their tool and for this we will enter and have entered the single cell omics field and a very central To address those is shown in the next slide, which is the sell and ship. Isabel, if you could go one slide ahead.
Here we see the Sell and Chip, which is a platform where we have nano vessels in a plastic shape and where we can dose single cells and all reagents required to do either library for single cell sequencing or a proteomics workflow, which is a slightly different setup geometrically, but fundamentally what those tools offer is that we can actually image a cell and we can attach a sequence or a proteomics, a single cell proteomics signature to all the cells that we have imaged before. And we have released those technologies to key opinion leaders where in the single cell genomics world We have entered some very high ranking journals with groups from UCSF and UBC and also groups in Lyon. We have just done a single cell proteomics seminar that had about 4 50 participants and it seems that we are at the forefront of science there. And that's what we are very keen on and very proud of that we can offer this cutting edge science tools. And what this means for the bioconvergence concept is shown on the next slide.
So bioconvergence has many parts in it. And one central part is that the life Expected C is going up and according and because of that and all the chronic diseases, for example, cancer, heart disease or Diabetes. The health related expenditure is going to Go dramatically up over the next years. And about 50% of those are kind of chronic diseases or to a large extent, these chronic diseases that play a crucial role. And within the industrial Solutions area of selling, we can provide tools actually to monitor the disease and also to drug delivery tools to treat the diseases.
And this is also true for very early and efficient Testing and Intervention and on the slides there with the integrated devices is an all disposable film where we could print onto all kinds of drugs according to the Different states of an individual, be it male, female, thin, muscle thin and so on and so forth. We are working on combining semiconductor biosensors with optical sensing method and heat maps where you get And we are always in what heads where it is required to get Very affordable diagnostics in a lot of market segments. And as I've said, This is not only important for the point of care or lateral flow test, what most people have in mind. That's also true for the single cell business, which is on the next slide, where We all are part of the genomic revolution. There's more and more data coming and it needs to be connected with IT Systems.
We have entered that stage and actually we have, I must say, yes, we collect data in the genomics And our customers do they collect data in the genomic space, but also we enable our customers to do this in the proteomics world. And of course there's gene therapy and CRISPR Cas methods that all require cell handling and so on and so forth. We have the tools to absolutely automate and industrialize this with affordable prices and that will keep us going developing new methods and tools and that brings me to my last slide, which will show the focus of 2021. So we are currently working on getting a combined offering together to our joint customer group that's The most low hanging fruit to get end to end complete solution for medical device diagnostics and drug delivery. We have launched some part of the sell and ship consumables and this will keep us busy for the remaining years and will result in a good consumable business and we'll be focusing on a unique cloud and bioinformatics offering for especially the single cell business.
Not to say that we need to go into a higher ISO certification and geographically we want to expand to Asia. And having that said, I would like to thank you for your attention, and I'm happy to answer any questions later.
Thank you, Holger, for presenting why diagnostics plays such an important role in society. We have reached the final session for today, the Q and A, which will now be hosted by Ulrik Tettner, Equity Research from Carnegie.
Thank you very much, Isabelle, and hopefully everyone will hear me all right. And as you mentioned, my name is Sol Treckner, research analyst at the Canadian Investment Bank, Covering among others, Cellink and I'm very happier to be part of this first Capital Markets Day that Cellink is hosting. You are able to ask questions through the portal and I will try to forward as many of those as possible And I'll start off with the ones I've received and I think this one relates to Doctor. Robert Langer's introductional speak on selling and the collaboration. And as mentioned through that presentation is Selling exposure or potential exposure to nanotechnology and if that is an area for further expansion or focus.
I think that's a great first Question and I can take the first dive at it. You know, nanotechnologies is an extremely exciting area, but it's also a very broad one. It's in relations to material science, it's in relations to creating better environments For cells, it's in relation to drug delivery, drug discovery. It's covering so many different areas, which makes You know, nanotechnology really is such a broad subject. And I think from our perspective, nanotechnology It is something that we work with and we provide technologies that can enable faster development within that area.
But by no means would I say that we are targeting nanotechnology as one of our main application areas for the futures to come. And I think one important point to mention, if you just listen to Holger's fantastic presentation on industrial solutions and Biosensors and a lot of the diagnostics world, nanotechnology is going to play an important role for those types of industries as well. So again, I think it's present in a lot of things that we do.
Great. Thank you very much. And the second question is as well from Rick Adan de Kranz from ABG. I think this is perhaps directed to you, Guston, that we're a combination of Eric and Guston. It's related to which areas or capabilities are prioritized in the near term M and A agenda.
So if you look a little
bit on the focus areas of the different business areas, these are the areas where we want to expand as much as possible and continue to cater for our customers. So looking at it from an M and A perspective where we have weaknesses or lack technologies in these areas Our areas where we're looking into technologies it could be anything from what Holger mentioned in bioinformatics to technologies helping us with analysis of these within these areas and I'd say that's analysis is something we're looking heavily
Great, thank you very much. And since we're on the topic of M and A and we have both Doctor. Sean Douba and Doctor. Eicoff with us today, newly integrated companies. It would be interesting perhaps if you've shown us that has been part of Cellink for the longest of these two companies.
Could you just talk to us about how you have changed your operation Since you've been integrated into Cellink, what has been what is different? What is similar? And what's your experience of being integrated into Cellink?
That's a very good question. Thanks, Ulrik. So I've been part of the selling group now, so for around about 1.5 years is slightly more than that. We were on a very good trajectory as Satina before, But being part and becoming part of selling has really propelled a lot of our activities forward. It was very synergistic to merge the commercial entities, and it has allowed us from being a small German startup before To have really global reach and be able to cater to more customers around the globe.
And that has Really had a very, very positive impact on the company in total, and we have used some of those opportunities to invest and be able to launch a lot more products in the past. So when Santina joined selling, We were a one product company and we've expanded this to now 3 product lines and that has been very, very cool For me as a person, but also for the entire team here to see and to grow with these opportunities within the Salen Group. Also, we've been able to structure the group into business areas, a couple of months or half a year ago or so. And that has allowed us to work very, very closely with some of our sister companies, where we have very interesting cross selling synergies. So We sell a lot of Santino products with, for example, Buspennix products, the iDOT.
And that's something that is Really nice for the customers because they can go to us and get a full package. We cannot offer attractive pricing. We can offer workflows and that's certainly a value add. So for us, it has been very exciting journey.
Great, thank you. And perhaps you could switch to Doctor. Eicoff. It's been not that long since you've been integrated, but Perhaps your initial thoughts on the integration process and being part of selling and obviously the recent integration Of Genolis as well and your impression on how it's been on integrating these into the group as a total?
Well, it has been an absolutely fantastic journey after the So the acquisition has released actually it was like releasing a break from our company before the acquisition and after because now within under the selling umbrella, we You can focus very much on our operative business. We were after Acquisitions for many years that we couldn't do, which we have actually executed now together with the team at selling and the integration was difficult because we had COVID and we still have And despite the pandemic being around, we actually I think we did do a very good job together where we kind of figured out what the West way of working together is. We have Great synergies, for example, in marketing. We learn from each other when it comes to automation. It's a great exchange with People in Freiburg and Stuttgart.
So I can't complain at all. And I would say that we have met actually we are signing as a company is 20 years old or young, Depends on how you look at it, but we are innovative and have met a very innovative team. And I think we share the same values at Sineon. We were always very passionate about things, which is the same at CELINK. But I think we are now a much quicker organization than we have been before where we adapted from The selling younger company speed concept.
Great, thank you both Doctor. Eicoff and Doctor. Schevelden. And if we could perhaps Go back to the fundamentals of selling and perhaps best to address this question would be Hector Martinez. And just To get our better understanding on a company like Cellink has been able to develop, Produce and launch competitive products at a competitive price compared to what's out there in the markets today.
Just walk us through how you differentiate yourself to the competitors and how you've been able to build Position in the certain areas that you have today. That would be part 1 of the question. And the second would be looking at the integration between the acquisition, Looking at IP transfer, what should we expect in the future between these companies because there seems to be quite a lot of technical overlaps and synergies as well on the technological side.
So what should
we just look out for?
Thank you very much, Elvira, for the great questions. So first of all, looking at the product development and how we even consider this new technology, new products, As Eric already mentioned it really starts with the customer in the center and talking to the customer really you know going a few levels deep into the into their pain points and analyzing what are they trying to achieve. That's the big question that we need to continuously ask, what is their ultimate goal? And from there, you know, once we Get to the to the bottom of their pain points and what is it that they really want to achieve then how do we position ourselves, how do we position our products, or How do we align our product development teams to be able to address those problems. So for example, when we look at Technologies that have been out there for many many years, you know right now the customer needs to do their own research, Their own, you know looking at let's say they're in a cell line development workflow or if they're in a Drug screening needs, they need to take each of those technologies, determine what is the best technology for each Part of the process and then try to do the integration themselves.
The way we see it is that okay, let's develop the best technologies as an integrated platform so that the customer can get a end to end solution and that's Exactly how we work across the group as well. Everyone has their business prioritizing of course the customers, prioritizing the products but at the same time we have a platform where we can collaborate and bring these amazing workflows that fulfill very specific needs for our customers and that generates a lot of value for our customers. On the second part of your question regarding IP, we have an aggressive patent strategy or a patent growth strategy where we are Working within the companies we have our targets of course for filing patents there's a lot of innovation in the field so we need to capture that We need to protect our ideas. So we have a target which is aggressive for each company, for each business area and for the group to be able to to be able or to make sure that we capture all of those innovations happening when we talk to the customer, when we go back and do our homework, spending 1,000,000 of dollars in these developments in capturing these nuggets each quarter.
When it comes to integrating this IP, of course, we have a specialized IP within each company, but also We have our CTOs, CSOs working together to make sure that we also catch the nuggets which are in between the business area. So we have the the process in place to and the platforms in place to be able to come together and capture those workflows that are solving very unique or providing very unique solutions to our customers.
Great, thank you very much Hector. And if we could move back perhaps to Jonas and Biosciences and you mentioned something quite interesting It's related to gene therapy and your ability to add benefits To that specific industry, could you just walk us through how your product would contribute into gene therapy development?
Very good question as well. So cell and gene therapy is obviously a fairly new field and there's a lot of Companies popping up and working on therapies in this space. A lot of the workflows and processes are not Standardized yet as we see it in other industries like biopharma or immunodial antibody manufacturing. So there's a lot of work going on between us as vendors for certain tools and the biotech and biopharma companies And trying to come up with better and better processes. So currently, already now, some of our existing process products are used to handle cells and to do live cell imaging on those Cells that people are editing, it's a lot of stem cell work there.
And we're continuously working with these customers to improve the processes specifically for this upcoming and very innovative industry. So we anticipate that A lot of R and D efforts in the coming years will be tailored
towards these applications as that is
a very attractive growth market.
Great. Thank you very much. I I think we'll have time for one last question. If we can have a short answer and this would be then addressed To Arthur and Cecilia within the field of bioprinting, just your high level thoughts on What is the current limitation in the industry of implementing 3 d dimensional both tissue and cell line development models currently? And what do you believe needs to be brought to the market in order for this to get higher adoption?
So would you like to take it, Cecilia?
You can start and I can continue and add in probably what I give us perspective.
Yes, of course. I think something that it's Very important and also a prerequisite is that even if we are enabling the market with solutions that A foundation for the prerequisites that they will use to be able to develop new methods and also the to replace the traditional cell capture. And as I mentioned in my presentation, I think to be able to jump into the next level, of course, is to apply these new technologies into Practical solutions that we are using in your lab. But this is, of course, Going quite fast, but it's something that we are driving together with our customers. But in the end, it's the customers that needs to drive these applications.
I mean, we are just creating the prerequisites to do that.
No, that is very true, Arthur. I think Well, we are still at a very early infancy stage. We are the market leaders, obviously. We have placed some 1,000 instruments out there. As Arthur mentioned earlier, we have about 11,000 just academia labs.
We haven't even touched into the more industrial level, bioprinting levels. So this market is still at a very early stage. The different technologies that I mentioned before are, I mean, extrusion being the dominant one today, but also light based and laser based. Those are very good at complementing each other and achieving all these different workflows and steps in the production. I think we are providing the technology and we're encouraging everyone to understand what it can do, but we are still there is a lot of growth to come and applications.
Great. Thank you very much, both Arthur and Cecilia. And Fortunately, the time for the Q and A session has run out. So I think this will conclude the Q and A session and I will leave it back to you, Isola. Thank you very
much. Thank you, Ulrik, and thank you for the questions. The slide deck is already available on selling.com, where we will also upload the recorded presentations from today. Our next interim report will be released on August 18. In the meantime, If you have any questions or would like to reach out to TIM Cellink, send us an email to ircellink.com.
We look forward to hearing from you. We hope that you have enjoyed the CMD, and thank you all for listening in. An extra warm thank you to our external speakers today, Doctor. Robert Langer, AG Melot, Richard Nedhana, Bernard Scheu and Ulrik Tathner for your contribution. On behalf of TIM Selling, I wish everyone a great Wednesday.
Thank you, and goodbye.