STIFEL 2026 HEALTHCARE CONFERENCE - MAXCYTE INC

Explicit Guidance:

• Revenue Growth: Expects to grow revenue in 2027 (full year), with Q2 2026 guidance previously targeting low single-digit growth (though actual 2026 Q2 guidance is 15% growth, implying a strong acceleration from the start of the year).
• Cash Burn: Expects full-year 2026 cash burn to remain at ~$17 million (legacy MaxCyte baseline).
• 2027 Cash Flow: Projects full-year 2027 cash burn to fall below $10 million as Akron's revenue contributes alongside organic MaxCyte growth.
• Synergies/Cost Savings: Anticipates $3 million to $4 million in OpEx synergies by the second half of 2027, driven by consolidation of corporate functions and G&A.
• Akron Revenue Growth: Forecasts Akron to maintain a 13% year-over-year growth rate in 2027, aligning with its historical CAGR, before potentially accelerating in later years as commercial programs ramp.
• Gross Margins: Anticipates the combined entity to report gross margins in the early 70% range immediately; expects further margin expansion over time as commercial revenues scale.
• Cassetti Revenue: Expects continued revenue growth from the Cassetti partnership in 2027, benefiting from label expansion and improving reimbursement.

Business-Segment Outlook:

• Akron Bio Integration: Following the $150M acquisition, Akron (generating $28M revenue, EBITDA positive) will be integrated to broaden the portfolio in the ex vivo non-viral space.
• Sales Synergies: Leverages MaxCyte's robust European and Asia-Pacific teams to drive Akron's ex-U.S. growth; U.S. teams will cross-sell to complement rather than replace each other.
• Therapeutic Shift: Notes that >90% of commercial and late-stage clinical assets remain ex vivo, while in vivo therapies (currently <10% of clinical programs) are largely pre-clinical and face safety/regulatory hurdles.
• Instrument Funnel: Sees a "very broad-based" instrument pipeline across research, GMP manufacturing, and GTX/DTX platforms, with expected "double-digit growth" in instrument placements excluding one-off large deals.
• Consumables: Expects "pull-through" and consumables revenue to grow in the mid-single digits on an annualized basis in 2027, driven by stabilized customer inventories and pipeline growth.
• Commercial Partnerships (SPL): Maintains a healthy pipeline of 3–5 SPL (Single Program License) deals in late-stage negotiation; expects signing timing to vary between late 2026 and early 2027.
• Large Pharma Model: Expects to replicate the "Genentech model" (upfront purchase, no backend royalty) with other large pharma players, targeting "every year from here on out" despite a smaller total addressable pool of large pharma compared to biotechs.

Market and Competitive Outlook:

• Funding Environment: Observes stability in life sciences funding, estimating $3.5 billion funded in 2025 vs. $3 billion in 2024, with a trend toward funding later-stage/commercial programs rather than early discovery.
• Program Rationalization: Believes the "culling" of programs seen in 2025 is largely behind, expecting the number of active clinical programs supported by the company to stabilize or rise in 2026/2027.
• Customer Mix: Adjusted exposure to small "baby biotechs" to <25-30% of revenue; majority of revenue now derived from large pharma, mid-tier biotechs, and well-funded clients.
• Competitive Positioning: Highlights differentiation in reagents (closed liquid format, refrigerant stability, high quality) and electroporation systems, positioning the combined entity as a consolidator with "best-in-class" offerings.

Macro / Industry Outlook:

• Market Stability: Projects 2026 funding levels to mirror 2025 stability, avoiding the high volatility seen in prior years.
• In Vivo vs. Ex Vivo: Anticipates no significant structural shift from ex vivo to in vivo in the near term due to in vivo's complexity and safety concerns observed in clinical trials.
• Industry Consolidation: Views the current environment as an opportunity to act as a consolidator, leveraging the combined scale of MaxCyte and Akron to serve cell therapy developers better than fragmented competitors.

Strategic Initiatives:

• Akron Bio Acquisition: Completed acquisition of Akron Bio for $150 million; integration is described as "slow" and "complementary," with no disruption to Akron's leadership team or operations.
• Sales Force Expansion: Recent hiring of senior leadership from Sartorius, Stem Cell Therapeutics, Thermo, and GE Healthcare across US, Europe, and Asia-Pacific to support the broader commercial strategy.
• Capacity & Operations: No immediate operational integration planned for the first year; gross margin improvements and cost synergies expected to materialize over a multi-year horizon.
• M&A Strategy: Positions MaxCyte as a consolidator, using cash flow stability to acquire businesses that fill portfolio gaps (e.g., reagents) and expand TAM.

Risks and Headwinds to Outlook:

• Program Cancellations: While rationalization is believed to have bottomed, "one or two" biotech programs may still fail, impacting revenue.
• Integration Timing: Acknowledges that synergies and higher growth rates for Akron are contingent on the ramp-up of their commercial programs; immediate growth is capped at historical rates.
• Customer Concentration: Largest single customer represents ~27% of revenue; exposure to small biotech funding remains a potential risk if market conditions deteriorate.
• In Vivo Uncertainty: Potential future disruption from in vivo therapies remains a risk, though currently deemed low probability for clinical impact in the next 5 years.
• Lumpiness: Recognizes inherent lumpy revenue patterns, particularly with large instrument placements, which may affect quarterly visibility.

Management Tone on the Future:

• Confidence Level: Cautiously optimistic; management explicitly states they do not want to "get ahead of their skis" regarding 2027 guidance, preferring to guide on Q4 2026 and full-year 2026 before committing to 2027.
• Strategic Clarity: Tone reflects high confidence in the "hand-in-glove" fit of the Akron deal and the stability of the funding environment.
• Operational Focus: Emphasizes execution, stability, and the transition from a "cash burn" mindset to a "self-sustaining growth" model by 2027.

Miscellaneous:

• Genentech Deal: An 18-month negotiation resulted in a "proof of concept" where Genentech switched from a competing system to MaxCyte for a Phase 1 trial; deals of this nature (large pharma, upfront purchase) are expected to increase.
• Akron Leadership: Akron retains its existing leadership (CEO Ezekiel Zilberberg, CCO Dave Smith) to maintain continuity.
• Cash Flow Trajectory: Demonstrates a consistent reduction in cash burn over the past few years (reduced by >50%), positioning the company to achieve <10% burn in 2027.