Welcome to the J.P. Morgan Healthcare Conference. My name is Casey Woodring from the Life Science Tools and Diagnostics team here at JPM. I'm pleased to be joined today by the management team of Bio-Techne. So I'll turn it over here to Kim in a second for the corporate presentation, then we'll do a Q&A afterwards. So with that, Kim, take it away.
Thank you, Casey, and thank you for having us at the J.P. Morgan Healthcare Conference. It's always a great event, and I'm very excited giving you an update on our company. Before we get into the content, however, I want to draw your attention to the Safe Harbor Statement, which you can find on our website, biotechne.com, in the Investor Relations section.
To dive into the presentation, let's start off with the Bio-Techne's mission: "We improve the quality of life by catalyzing advances in science and in medicine." This statement is what drives us every day, it's what excites us, and it is what creates value for our customers and for our stakeholders. Coming couple of slides, I will talk through the status and where we are as a company, and the slides after that, I will talk through the strategy going forward. So who are we? Bio-Techne, headquartered in Minneapolis.
I have 3,100 colleagues globally that work from 34 sites. And yeah, we've been at it for 48 years, designing a very differentiated portfolio of protein-based core reagents that are serving high-growth markets. In the middle there, you see that we report in two segments: the Protein Sciences segment as well as the Spatial Biology segment. And in the Protein Sciences segment, you see that we have high-quality core reagents. We have 6,000 proteins, 400,000 antibodies. We have small molecules. They're so small you don't even see them on the slide here. And we have amino acids, a vast menu of amino acids. Those core reagents are instrumental to several of our growth factors. We have the proteomic analytical instrumentation, we have the cell and gene therapy business, and two growth factors of spatial biology and precision diagnostic tools. Those also use and benefit from those core reagents.
They also have their own core section, which is the diagnostic reagents and controls. Now, on the right-hand side, you see that we had in 2024 a revenue of about $1.2 billion. 80% of that related to selling consumables, 9% of that allocated to instruments, 9% related to services of those instruments, and 2% in royalties. Now, it's noteworthy to see that of the 80%, 11% are related to cartridges, etc., consumables directly related to our installed base. Now, with such a consumable-rich portfolio, you would expect a very high profitability profile for the company, and that's what we're very proud of. Now, on the next slide, I'll double-click on the revenues and the breakdown. As you can see on the outer circle on the left, we have 72% of our revenues coming from the protein science segment. It's our largest segment.
28% coming from the other segment, diagnostics and spatial biology, and last year in the presentation, you will see that that number used to be 26%, so that segment outgrew protein sciences, and therefore there's a little bit of a mix shift over the last year. A few highlights from the inner circle: we have the RUO reagents, which are the proteins, antibodies, and small molecules, 42% of our revenues. And again, those power several of these growth verticals. The first growth vertical there is cell and gene therapy. It's 6% of our revenues and very fast-growing. The protein analytical instrumentation, also optimal performance because of the core reagents, highly differentiated automation, and now 24% of our revenues. The core diagnostics, 12%, and 6% and 10% for the two growth verticals in total create then the 28% for the diagnostics segment.
As you would expect from a portfolio with very high quality and differentiated reagents, our end markets are skewed towards pharma/bio-pharma. 50% comes from there, and we're very proud of that position, but we are also very happy that we have 21% coming from academic markets. We deem those to be strategically important because technologies and scientists from the future come out of that segment, so we want to play an important role there. 17% of our revenue is from diagnostics, and then 12% from distributors, which mainly cover our Asia and China regions. From a geographic perspective, 60% comes from America, 25% from EMEA, and 50% from China APAC. In the next slide, I will summarize our foundations of our success to date and what made us where we are.
Over the decades, we created a durable and differentiated product portfolio, which gives us balanced exposure to established and emerging applications across high-growth end markets. We can play in those markets successfully because of our portfolio leverage from leading protein and antibody content and capabilities. This resulted in a strong reputation and loyal customer base, and we have an innovation machine to continue to bring new products to market, and then we have built, in the meantime, a lean, nimble, and diverse global organization that has a culture of ownership and accountability. Oh, sorry about that. Leadership accountability. Fortunately, I read that slide word for word, so that was, then this is a very impressive position to be in. I will talk you more through the strategy upcoming and how we're going to actually accelerate our growth going forward by a new, more crystallized strategy.
On this slide, and I call it the pyramid slide, I'll talk you through a couple of the dynamics. First off, we have on the left-hand side of this slide the phases that a normal development project goes through. So you start off with research and discovery, you roll into a translational and a development phase, and eventually you progress into a diagnostic and/or a treatment. Now, those phases are heavily influenced by what we call megatrends, megatrends that we have identified that we feel we need to keep an eye on. And you see those in the middle of the pyramid. And it starts with multi-omic insight generation. We feel that multi-omics is going to be super important and that our customers deserve real good multi-omic tools for multi-omic interrogation.
Proteomics interrogation will happen at scale, and we do believe that it will happen in the research phase as well as in translational, and eventually, not yet, but eventually also in the clinic. AI-enabled innovation will be broadly applicable. We have novel therapeutics that are popping up and that are already making huge progress, such as Cell and Gene Therapy. Precision medicine is here to stay. We know that every individual is biologically different, so it's important, and then the pinnacle, healthy aging. We know that we have an aging population globally, and we know and we want that aging happens as healthy as possible, and everybody is probably aligned with that statement. Now, we are playing a very important role across these megatrends, and of course, we want to help our customers progress through those phases.
Therefore, we have defined three growth factors on the right-hand side of this pyramid where we want to focus as a company. The first one is the discovery of novel biological insights. We have the development and manufacturing of advanced therapeutics, and of course, enable precision diagnostics. That would then enable early diagnosis and, of course, the ability to pick the right treatment once you get diagnosed. This is an amazing position to be in, and our growth factors truly capitalize on those megatrends. Now, on the next slide, I do show you how our differentiated portfolio actually maps to those growth verticals. On the left-hand side, you see our portfolio like you've seen it many times before and earlier in the deck.
On the right-hand side, you see those three growth verticals that I just identified in the pyramid slide and how our portfolio maps to those growth verticals. Now, for example, in the first growth vertical, the discovery of novel biological insights, here you see that our core reagents, our spatial biology, and our proteomic instrumentation play a key role. Now, I want to give you some examples in there. So recombinant proteins and small molecules are very important in all kinds of cell-based work, including organoids. The large menu of antibodies that we have powers novel proteomic platforms. The spatial biology solution we provide is one of the few that truly gives you multi-omic insights, which is very important for neurology as well as for immuno-oncology and other end markets. Now, in the instrumentation side, we have the automated ELISA and Western blot, which are really enabling proteomic research applications.
So you see how relevant we are in that first vector. And the second vector, not much different. There we have a leading portfolio of GMP reagents and media. And if you combine that with the Wilson Wolf G-Rex, a company that we own a portion of and we will fully own in 2027, that's a bioreactor where you grow your cells in a very efficient way. And then together with our reagents, you have a closed system that truly allows for a very cost-effective but very high-yielding, scalable workflow in cell therapies. The exceptional quality of our proteins and antibodies are truly appreciated in the early process development all the way through to high-volume GMP manufacturing.
On the instrument side, all three of our platforms, whether it is the ELISA or the automated Simple Western or the biologics, are playing a very important role in the development and manufacturing of the therapeutics. First off, very important for process development. Secondly, our spec in for QC and lot release of various therapies, and that's including cell therapy, including gene therapy, RNA therapy, and even protein-based therapies like ADCs and others, so if you then look at the spatial solution, there you have the spatial reagents that we have combined with the automated platform COMET, very important for biodistribution, and that, again, is very important to determine whether your cell and gene therapy is effective, so also there, tremendous positioning in this growth factor that I mentioned. Number three is the enablement of precision diagnostics. Our know-how and our large offerings in proteomics really allows for diagnostic applications.
We have diagnostics, reagents, and controls. This is a very sticky business where we sell into most, if not all, the large IVD companies, and therefore something fundamental for our segment. Then the molecular diagnostic kits. A few years ago, we've been so lucky to combine the Asuragen kitting capabilities and the ability to create kits for genetics as well as oncology testing. We already own the Exosome Diagnostics platform, which gives you the ability to fish out exosomes, which are great vesicles to interrogate with high-quality information. You combine those two, you really have an opportunity to have a distributed model of very high-quality tests where you can fish out hard-to-find genes and you can read hard-to-read genes. With that, come up with a real nice precision diagnostics position that can be run on widely available qPCR instrumentation. A real differentiated position.
Last but not least, our spatial biology business in the clinic. Fortunately, we worked really hard on getting all the right regulations and quality systems in place, and now we have over 10% of our reagents in this business coming from the clinical space, and it's growing faster than the rest of that spatial biology platform, sorry, not platform, reagents, so we're very excited about that position in the space as well, and that's exactly how we play in those three growth factors, and we're very, very happy to see that we are so successful there, and we are planning to be even more successful there by continuing our innovation machine. We had various R&D milestones over 2024, and I want to highlight a couple. First off, we launched our Leo instrument. It's a next-generation high-throughput, fully automated Western blot system. It's very unique.
We made it exactly as the pharma/bio-pharma high-power volume users wanted it, very flexible. You can run anywhere between 25 to 100 samples within three hours. And we have a very strong pipeline. And I have to be very proud of the team because we promised that we would start shipping it in calendar Q1, but we have been so fortunate to already ship the first systems in the back end of our previous quarter. After 48 years of being a leader in proteomics, we amassed a fantastic proprietary database in proteins and antibodies. We know how to characterize them, so we do have a vast database. And of course, you would be missing out if you wouldn't have AI help you use that data to then come up with AI-generated, hyperactive, patentable proteins and antibodies that are just unique in how they perform. We're very excited about that.
We have six proteins now on market. We sent out a press release about our six ones, so you can read all about which ones we have on market. We will continue to crank out about nine or so of these designer proteins per year. On the multi-omics spatial biology platform, there we launched our RNAscope and our protein capabilities, and that you can use for visualization of tissue on the COMET system, so you can now look at the same time on the same slide at 12 RNA targets, and these RNA targets come out of a catalog of about 50,000 RNA probes that we have, and we can make any custom probe for you, 24 protein targets, and you can pick any antibody you want to use, but we happen to have 400,000, so we're glad if you pick one of ours.
And then on a fully automated machine, this machine is produced in Switzerland, very high quality, very consistent. It can run four slides at the same time, and it's truly enabling fully automation of multi-omics. Now, on the second vector, the cell and gene therapy vector, we have launched the ProPacs. These are little bags of precise quantities of GMP proteins in the right dilution, and that will really allow for closed manufacturing together with the Wilson Wolf G-Rex bioreactor. And that will then result in even better yields, even fewer mistakes, and a much easier scale-up, and there with a very differentiated offering. The enablement of precision diagnostics, there you've seen the announcement of us launching an ESR1 Kit. And this is the first child of the two parents of combining Exosome with Asuragen.
This is an exosome-based kit in an Asuragen style, so it's distributable, and it is for the detection of 11 different ESR1 mutations in breast cancer. And if you do that monitoring correctly using this test, you'll be able to double the life expectancy of the patients and therewith truly enable precision diagnostics. Now, the next slide, we talk about our financial performance, which is, of course, related to this very differentiated portfolio. As we all know, part of fiscal year 2023, and certainly all of 2024, there were macroeconomic challenges. Biotech funding, large pharma spend, Chinese economy, we've heard a lot about these headwinds. But despite this dynamic, we're one of the few life science tools companies that continue to be in the black. So you see before and during and after COVID, we had a 12% CAGR in our growth here in the bottom left.
And then the fiscal year 2024, we've been able to eke out small growth of 1%. But mind you that the Q1 of the year after, we already accelerated to 4% growth, and we're very comfortable with the forecast that we've kind of laid out and the dynamics of the markets that we've talked about over the last two earnings calls. And I think that's a testament to our portfolio as well as to our strategy, how we are continuing to outperform the market there. Operating income, you can see that we had a healthy CAGR of 14%, a down year in 2024, and that's driven by two things that we feel are temporal in nature. One is that we had a full year of our early-stage Lunaphore acquisition, where we had to build, of course, invest in R&D and build manufacturing capabilities and commercial capabilities.
We had, what I mentioned earlier, a little bit of a product mix shift between the two segments. You combine those two numbers, and you're still sitting at a 9% CAGR, which is actually pretty healthy. Now, operating cash flow, there's a long story there, but last but not least, 18% growth over fiscal year 2024. That's really a testament to the Bio-Techne team. We really delivered on organizational efficiencies. We had product portfolio efficiencies where we pruned the portfolio, and of course, operational efficiencies. That really resulted in a very healthy financial year, and that, of course, helps our financial position. So what do you do with a healthy financial position? That is continue to focus on our M&A funnel. M&A remains the top priority for capital deployment. It's important for our go-forward strategy.
And of course, we are now with these three growth factors talked about. Of course, more focus on the three growth factors I talked about. And here in the middle there, you can see our M&A priorities directly linked to those growth factors. You see most of these priorities in the discovery of novel biological insight. And of course, as a second priority, we have the development of manufacturing of advanced therapeutics. Now, we could be opportunistic in growth factor three, as well as in creating a whole new attractive market, but we do believe that we have plenty of M&A runway in the two growth factors I just mentioned as the first two priorities. Now, let me look at what that means for our overall portfolio and the market sizes. As I mentioned, our portfolio serves critical applications, and we address about $28 billion in addressable markets.
In the middle here, you see our core products. They're very essential. It took us decades to build, and we continue to expand that offering, and of course, that offering we go directly to market with, but we also power our growth verticals. Proteomic analytics instrumentation, where we're pushing forward with more and more applications, specifically in cell and gene therapy. Cell and gene therapy itself in the lower left is a business unit that we are driving. It's growing very, very fast, and we have a portfolio of state-of-the-art GMP reagents, and combined that with the G-Rex, we have basically a very unique, efficient, and scalable cell therapy solution. In the top right, spatial biology, there we can combine the 50,000 probes and the great position that ACD brought us in spatial biology.
We have a state-of-the-art platform from Lunaphore, the COMET, and then, of course, a vast portfolio in antibodies, truly enabling a full translational multi-omics solution, which is fully automated. Fantastic business. Precision diagnostics, there we have the market-leading genetic and oncology portfolio that we are so proud of from Asuragen. Combine that with the exosome detection capabilities, and now you're looking at a really differentiated precision diagnostics offering where you can find hard-to-find genes, and you can read hard-to-read genes on a very distributed platform. And so that is really how our portfolio is positioned for sustainable above market growth. And sustainable is an important word for us. We are committed to a sustainable future, and we continue to make progress.
Here you can see that we published our fourth corporate sustainability report, and in there you can read all about our people and how we build a diverse and inclusive workplace. You can read about how we are advancing science and how we launched 800 new line items in 2024. We have the environment as a priority, and even though Bio-Techne is an environmentally friendly type of business, we continue to reduce our footprint by looking at and prioritizing sustainable packaging projects and many others. Now, last but not least, our management is supported by a very sophisticated board with deep scientific experience and business experience, and they help us overlooking the sustainability council so that we keep sustainability high on our radar.
Now, to my last slide, with the key takeaways, the mega trends that I showed you in the pyramid slide create a flywheel for all three of our strategic vectors. Over the last 48 years, Bio-Techne built a proteomic core portfolio, which provides leverage across all these three vectors. We have a strong innovation organically and M&A pipeline for inorganic growth and innovation. And we enjoy a durable position in critical applications across $28 billion of market opportunity. And this enables us to have sustainable and above-market financial performance. And how do we define above-market? Well, for us, that means that we want to continue to grow 500-1,000 basis points faster than the market. We want to have industry-leading operating margin of 35%-40%. And of course, we're looking at a high teens CAGR for our EPS.
We are committed to deliver this financial performance while we unlock the possibilities of science. Thank you very much for your interest in Bio-Techne.
That was a very helpful overview. Maybe just to start on the macro here, biopharma demand has been choppy for the industry over the last year or so. What's your outlook for the remainder of fiscal 2025 for that end market?
Yeah, thanks for the question. I almost had a breather here. Thanks for the question. Listen, so we all talked about how this last fiscal year, last calendar year, has been influenced by positive growth if it comes to the funding levels. We had 40% growth of funding increases over 2023, but we all know that 2023 was kind of a subdued year. So we tend to look back to 2019, the pre-COVID year, and the funding levels are actually 20% higher than that as well. So we do believe there is a healthier funding environment. We all talked about that it will take a while for it to trickle through. Jim had a very thoughtful kind of rollout of how we feel our year would roll out.
And we mentioned that our Q1 would be very similar as the previous year, and we actually accelerated a little bit to 4% growth, and that we would see a return to healthy spend in biopharma in Q2. And actually, we already started seeing that a little bit at the back end of Q1. And all the way up until our earnings call at the end of the first month of Q2, we still saw a healthy acceleration there. So I think we called that end market pretty right on.
That's helpful. There have been some recent concerns over the potential impact of the new administration on life science tools, including NIH budgets and the potential impact on tariffs. How do you view the potential impact there on your business?
Yeah, I think from a political point of view, you hear it from several of our peers as well. We do believe that it's a more business-friendly environment, which will come with the new president. There are talks about reduced corporate taxes and a more friendly M&A environment. So I think that that's all overall very healthy. NIH, under the previous time that this administration was in place, grew 6% and 8% in 2017 and 2018. But for us, it's really, really important how the use of proceeds is. So the absolute level, of course, is beneficial if it goes up for the NIH funding. But in the meantime, for us, it's very important where it gets spent. We traditionally have not aligned our company with infectious diseases.
So what was really the focus of the NIH over the last couple of years, having that shift back to chronic diseases, like the narrative has it, that would be actually good for us. So we are actually positive about that. We'll have to see how it all rolls out, but overall, we feel that it's in good shape. The tariffs, fortunately, we produce most of all our products in the U.S. We have the Lunaphore COMET, it gets produced in Switzerland, and we have a little bit of the small molecule revenue coming out of the U.K. But we do really not have a supply chain constraint importing from China. So we are relatively independent from that, and therewith, our risk profile is also very, very low if it comes to the tariff debate.
Bio-Techne has been one of the more vocal companies on the potential impact of Chinese stimulus on your business starting in the calendar year 2025. So any updates you can share there?
I'm not sure we were vocal. We just got that question like each session that we were in. But nonetheless, China has been an important country for us. It had tremendous growth for a long time. We know that at some point, there was a reset with international business pulling out of China. It was a painful couple of quarters. Then we saw stabilization. And even though in the negative, the revenues from China have been accelerating. And then we called that in our Q3, which is basically calendar Q1, that we would see a normalization and that we would eke back into the black related to some of the stimulus discussions, which are long-term three-year plans. So we feel that will get us back in the black, and with that, it will be less of a detractor.
We're not saying this is going to go back immediately to its old glory. That might happen over time, but we're just calling it for the upcoming quarters, years to be back in the black.
Got it. I guess taking all those macro factors we just talked about into account, any updates on the fiscal 2025 outlook you provided during the Q1 earnings call?
Yeah, we report in two weeks, so we'll give you more color then. But overall, the layout, how we laid it out, and again, compliments to Jim and team, is very logical. And so far, all our indicators and the discussions we have with customers, but also the indicators internally, point into the direction that we were actually pretty much in the ballpark.
Okay. Shifting to some questions on your portfolio. Within cell and gene therapy, GMP proteins has been really strong for you guys, increasing over 60% last quarter. What drove this strength, and what is a realistic growth rate for that business moving forward?
Yeah, thanks for the question. Yeah, 60% we're very proud of. Obviously, you saw on the presentation how greatly that portfolio is positioned and how it's really enabling cell and gene therapy. Of course, there were some large orders, but we saw overall good strength in the business, so we have 400 customers, and we added a couple of customers at a good pace. In the meantime, these 400 customers are, of course, working on getting their programs through the different stages I talked to you about in the pyramid slide, and now we have 57 of these customers in phase one and a handful of those in phase two, and as you know, in phase two, the orders get much larger, and that's why we in Q1 talked about this could be a little lumpy going forward because these larger orders start playing in there.
And it's a $60 million run rate for the GMP proteins only. So that's still small base, and it could be a little lumpy. And that's why we said we will talk about 12-month trailing. And 12-month trailing said high teens, let's call it 20%. But that has several quarters of very suppressed markets in it. So that we give as a kind of a lower guardrail. And then the 60% we are really happy with. So I wouldn't say it's the upper, upper guardrail, but that's certainly another part of the guardrail that we want to give you guys to kind of estimate the healthy growth. So it's north of 20%, that's for sure.
Got it. One of the other future drivers of your cell and gene therapy business is Wilson Wolf. You mentioned it during the presentation. You own currently 20% of that company. How does this business fit strategically with your current offering and any updates there on that business?
Yeah, let me start with the last part of the question. They had a flattish year in our fiscal year 2024. Of course, saw the same dynamics in the end markets as we just described. However, their Q1 was very healthy, back to 30% growth. It's a good team selling a great innovation. It's a very valuable product. And if you don't think about that being the encasing, the bioreactor for your cell growth with very nifty patented stuff so that the oxygen can get in and you have optimal yields. But then think about our GMP portfolio with the best proteins and cytokines you can think of, small molecules to enable the cell growth. And it's a match made in heaven if you think about that. And therefore, we are very enthusiastic about the combination.
They are with about 800 customers and are in 45% of all the clinical trials globally, so it's a tremendous position, and it will be a tremendous once you have that position for us to be able to pull through our reagents, it's going to be a very, very interesting synergy.
Okay. Turning to your instrument business here, just as an overview, what are the primary platforms in that portfolio? How is your current offering differentiated versus competitors and maybe just walk through demand trends currently?
The foundation of our instrument portfolio is to automate clunky processes and/or manual processes. Of course, in a time where labor is not getting cheaper and where you want to get repeatable and fast results, this is a tremendous value proposition. We have an automated ELISA, Simple Plex, we call it. Product name is Ella, automated ELISA. We got a 13485 certification on it. It's being used broadly, but now we try to entice also more and more customers that want to get into a diagnostic to use our platform because it can make the journey along the regulatory hurdles. The second platform I want to talk about is the Simple Western, automated Simple Western. Customers have moved on from Simple Western because it's manual and clunky.
But now customers are coming back or stop doing their manual approach just because the automated version is just so neat and repeatable. Now we have a solution there. And then, as I mentioned, we just launched the Leo for power users where you can run up to 100 samples in parallel. Maurice Flex is our flagship biologic platform for protein characterization. And that instrument has as a capability fractionation where you can parse out a very specific part of your sample and then immediately inject it into a mass spec. And as you might have seen from some of the press releases, we have a co-marketing agreement with Waters in order to benefit from that capability. And these platforms are all doing really, really well. So we're really proud of the ProteinSimple portfolio.
Got it. Wanted to touch on M&A here. So Bio-Techne has historically been a very acquisitive company, completed almost 20 acquisitions since 2013. What's your appetite for potential additional M&A? And does the pending Wilson Wolf acquisition impact your ability to do deals in the near term?
Yeah, thanks for the question. Fortunately, in the presentation, I already talked about our areas of interest. We do feel that M&A is still one of the most important dynamics and growth factors going forward. And yeah, we're actually open, yet disciplined for public, private, small, and large deals. And if you think about the Wilson Wolf deal, that's in the back end of 2027. And we clearly have the financial health. We are less than one times leveraged. We have the financial health to be active much earlier in this upcoming window. And we do have the management team, the strategy in place, and we're actually pretty good integrators. So we're very comfortable with the process. But we will be disciplined. So we're not going to overpay and certainly not stray too far away from our strategy.
Got it. That's helpful. We have a couple of minutes left here. Just finally, Kim, you've been CEO for now about a year. What have been some of the key changes you've implemented since taking over the reins? And what are the key initiatives over the next 12 to 18 months in your view?
Yeah, I think the first 12 months, as a new CEO, you have to make sure that, first of all, you got a team in place that you really, really like. And we have a top-notch team absolutely worthy of the opportunity that we're looking at. We, of course, made sure and had to make sure that with a relatively subdued market, and of course, we talk about a slow recovery, we want to make sure that our cost position is behind the recovery rather than in front of the recovery. So we definitely made sure that our organization is fit for what we are looking at and what we want to achieve. So we right-sized certain parts of the organization, repruned the product portfolio, and divested a couple of things.
One of them, the Fetal Bovine Serum, which obviously is a product with lower margins, lower growth expectations, and there are better owners for it. And it didn't fit our portfolio as much. So we looked at efficiency in the portfolio. And then last but not least, we looked at our operational efficiencies. We have centers of excellence for production. We streamlined our supply chain. We had two distribution centers in Europe. We brought that to one bigger one. So we looked at the operational efficiencies as well. So having that all in place, then you want to make sure that you really crystallize your strategy so that as a team, you can focus your efforts, continue to grow, be mean and lean as an organization, have an R&D machine, and then being able to figure out which are the best acquisition and layer those on and integrate them well.
So I think that is really the phase we're in. And that's why I had the slides of this is how we got where we are, and this is where we're going. And that's basically exactly the cutoff of the one-year CEO stint.
Got it. Looks like we have time for one more question. Just, we didn't get to it, but on spatial, that's been a hot area. Some companies have had mixed results in that space. Can you just talk about your current offering and how you've been able to outpace the competition there?
Yeah, I'm actually very proud of our spatial offering in all dimensions, really. We've been able to create a multi-omics offering. And the charm is, of course, that our core reagents from the ACD RNA side are being used. And those have a tremendous reputation in the market. And it's a $110+ million run rate business and reagents only. The antibody speaks for themselves. We keep validating antibodies to then be able to use on the COMET instrument. Fully automated COMET instrument can run four slides at the same time. And it has a stainer as well as the microscope in it so that you get the results next morning. And with that, you can run 20 slides a week. And it's truly state of the art in the market.
Yeah, we have been focused on making sure that this is precise and repeatable enough so that customers can use it in different use cases all the way up into clinical settings. We're very proud of the offering and happy that the market is playing out as it is.
Got it. Well, it looks like we'll have to leave it there. Thank you guys for joining us today. Thank you, everybody, for coming. Have a great rest of your conference.
Thank you.