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UNITED STATES
SECURITIES AND EXCHANGE
COMMISSION
WASHINGTON,
D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13
or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported):
January 13, 2025
Standard BioTools Inc.
(Exact Name of
Registrant as Specified in Charter)
Delaware |
|
001-34180 |
|
77-0513190 |
(State or Other Jurisdiction
of Incorporation) |
|
(Commission
File Number) |
|
(I.R.S. Employer
Identification No.) |
2 Tower Place, Suite 2000 |
South San Francisco, California 94080 |
(Address of Principal Executive Offices) (Zip Code) |
|
(650) 266-6000
(Registrant’s Telephone
Number, Including Area Code)
N/A
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K
filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see
General Instruction A.2. below):
¨ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|
|
¨ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
|
|
¨ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
|
|
¨ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of
the Act:
Title
of each class |
Trading
Symbol(s) |
Name
of each exchange on which registered |
Common stock, par value $0.001 per share |
LAB |
Nasdaq Global Select Market |
Indicate by check mark whether the
registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2
of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant
has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant
to Section 13(a) of the Exchange Act. ¨
| Item 2.02 | Results of Operations and Financial Condition. |
On January 13, 2025, Standard BioTools
Inc. (the “Company”) issued a press release and updated its investor presentation, as described further below, which
included information with respect to certain preliminary financial results of the Company for the three months and fiscal year ended
December 31, 2024. The press release and investor presentation are attached hereto as Exhibits 99.1 and 99.2, respectively, and
incorporated herein by reference. The Company’s preliminary financial results are unaudited and based on current expectations and may be adjusted as a result of,
among other things, completion of annual audit procedures. This financial information does not represent a comprehensive statement of
the Company’s financial results for the three months or fiscal year ended December 31, 2024 and remains subject to the completion
of financial closing procedures and internal reviews.
| Item 7.01 | Regulation FD Disclosure. |
On
January 13, 2025, the Company updated its investor presentation, which the Company expects to use in connection with general corporate
presentations and will be made available on the Company’s website or distributed by the Company in hardcopy or electronic form.
The investor presentation is attached hereto as Exhibit 99.2 and incorporated herein by reference. The investor presentation is current
as of January 13, 2025, and the Company disclaims any obligation to update the investor presentation after such date.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits
The information in this Current Report on Form 8-K, including
Exhibits 99.1 and 99.2 attached hereto, is being furnished and shall not be deemed “filed” for the purposes of Section 18
of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section and
shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended,
or the Exchange Act, except as otherwise expressly stated in such filing.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: January 13, 2025 |
STANDARD BIOTOOLS INC. |
|
|
|
|
By: |
/s/ Alex Kim |
|
Name: |
Alex Kim |
|
Title: |
Chief Financial Officer |
Exhibit 99.1
Standard BioTools Announces Preliminary Fourth
Quarter and Full Year 2024 Revenue
Preliminary, unaudited revenue for the full
year 2024 of approximately $174 million
Presenting at the 43rd Annual J.P.
Morgan Healthcare Conference on Thursday, January 16th, 2024, at 9:45 a.m. PT.
SOUTH SAN FRANCISCO, Calif., January 13, 2025 -- Standard
BioTools Inc. (NASDAQ: LAB) (“Standard BioTools” or the “Company”) today announced preliminary and unaudited
revenue results for the fourth quarter and full year 2024. Standard BioTools expects fourth quarter 2024 revenue of approximately $46.5
million and full year 2024 revenue of approximately $174 million.
"The team worked hard in a difficult environment to deliver on
the top end of our revised annual guidance forecast, adjusted in the second quarter to account for the ongoing and industry-wide headwinds”
said Michael Egholm, PhD, Chief Executive Officer of Standard BioTools. “We also made significant progress reducing our operating
expenses by implementing Standard BioTools Business Systems (“SBS”), but work remains and demands renewed commitment to discipline
and continuous improvement.”
Mr. Egholm continued, “Guided by SBS, 2025 will see us realize even more efficiencies from integration, including benefits to R&D as we move past the
technical debt inherited from both companies. Consolidations are difficult but our ability to acquire and integrate is clear. It is
also clear that now is the time for Standard BioTools to leverage this foundation, organically and inorganically, to scale and shift
revenues towards high-margin offerings and attractive end markets.”
“The train has now left the station, with a well-timed, well-capitalized
strategy, and a world-class team to deliver long-term value to shareholders and customers alike. The best part of the journey is ahead.
"
Standard BioTools plans to report its fourth quarter and full year
2024 financial results later this quarter, at which time the Company will discuss its 2024 financial results in more detail and provide
its outlook for 2025.
The Company’s unaudited, preliminary 2024 revenue results are
based on current expectations and may be adjusted as a result of, among other things, completion of annual audit procedures. This financial
information does not represent a comprehensive statement of the Company’s financial results for the fourth quarter or full year
2024 and remains subject to the completion of financial closing procedures and internal reviews.
About Standard BioTools Inc.
Standard BioTools Inc. (Nasdaq:
LAB), has an established portfolio of essential, standardized next-generation technologies that help biomedical researchers develop medicines
faster and better. As a leading solutions provider, the company provides reliable and repeatable insights in health and disease using
its proprietary SomaScan, mass cytometry and microfluidics technologies, which help transform scientific discoveries into better patient
outcomes. Standard BioTools works with leading academic, government, pharmaceutical, biotechnology, plant and animal research and clinical
laboratories worldwide, focusing on the most pressing needs in translational and clinical research, including oncology, immunology and
immunotherapy. Learn more at standardbio.com or connect with us on X, Facebook®, LinkedIn,
and YouTube™.
For Research Use Only. Not for
use in diagnostic procedures.
Limited Use Label License and
other terms may apply: standardbio.com/legal/salesterms.
Patent and License Information:
standardbio.com/legal/notices.
Trademarks: standardbio.com/legal/trademarks. Any other trademarks are the sole property
of their respective owners. ©2024 Standard BioTools Inc. (f.k.a. Fluidigm Corporation). All rights reserved
Forward-Looking Statements
This press release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995, including, among others, statements regarding future financial and business performance,
including with respect to future revenue, net loss and adjusted EBITDA; operational and strategic plans; deployment of capital; market
and growth opportunity and potential; and the potential to realize the expected benefits and synergies of prior and potential future acquisitions,
including the potential for such transactions to drive long-term profitable growth. Forward-looking statements are subject to numerous
risks and uncertainties that could cause actual results to differ materially from currently anticipated results, including, but not limited
to, risks that the anticipated benefits and synergies of prior and potential future acquisitions and the integration of any such businesses,
including the potential for such transactions to drive long-term profitable growth, may not be fully realized or may take longer to realize
than expected; risks that the Company may not realize expected cost savings from such transactions; possible integration, restructuring
and transition-related disruption resulting from such transactions, including through the loss of customers, suppliers, and employees
and adverse impacts on the Company’s development activities and results of operation; integration and restructuring activities,
including customer and employee relations, management distraction, and reduced operating performance; risks that internal and external
costs required for ongoing and planned activities may be higher than expected, which may cause the Company to use cash more quickly than
it expects or change or curtail some of the Company’s plans, or both; risks that the Company’s expectations as to expenses,
cash usage, and cash needs may prove not to be correct for other reasons such as changes in plans or actual events being different than
our assumptions; changes in the Company’s business or external market conditions; challenges inherent in developing, manufacturing,
launching, marketing, and selling new products; interruptions or delays in the supply of components or materials for, or manufacturing
of, the Company’s products; reliance on sales of capital equipment for a significant proportion of revenues in each quarter;
seasonal variations in customer operations; unanticipated increases in costs or expenses; continued or sustained budgetary, inflationary,
or recessionary pressures; uncertainties in contractual relationships; reductions in research and development spending or changes in budget
priorities by customers; uncertainties relating to the Company’s research and development activities, and distribution plans and
capabilities; potential product performance and quality issues; risks associated with international operations; intellectual property
risks; and competition. For information regarding other related risks, see the “Risk Factors” section of the Company’s
annual report on Form 10-K filed with the SEC on March 1, 2024, and in the Company’s other filings with the SEC.
These forward-looking statements speak only as of the date hereof. The Company disclaims any obligation to update these forward-looking
statements except as may be required by law.
Investor Contact
David Holmes
Gilmartin Group LLC
ir@standardbio.com
Exhibit 99.2
| Setting Standards
Empowering Research
Building Shareholder Value
Investor Presentation
January 2025 |
| Legal Information
2
Forward-looking statements
This presentation contains forward-looking statements that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those referred to in the forward-looking statements. All statements other
than statements of historical fact (including statements containing the words “believes,” “plans,” “anticipates,” “expects,” “estimates”, “targets” and similar expressions) are statements that could be deemed forward-looking statements,
although not all forward-looking statements contain these identifying words. Readers should not place undue reliance on these forward-looking statements. Forward-looking statements may include statements regarding financial outlook and
business performance, including related to revenues, net loss and adjusted EBITDA, growth, margin and operating expenses; statements regarding future financial performance and expectations, operational and strategic plans, deployment of
capital, cash runway and sufficiency of cash resources, potential market and growth opportunities, and future potential M&A activity; the potential to realize the expected benefits of prior and potential future acquisitions, our 2025 and 2026
financial targets, including with respect to revenue, non-GAAP gross margin, non-GAAP gross profit, non-GAAP operating expenses, adjusted EBITDA, cash, and free cash flow; the competitive ability and position of the company, the success, cost
and timing of the company’s product development, sales and marketing, and research and development activities, the company’s ability to obtain and maintain regulatory approval for its products, the sufficiency of the company’s cash, cash
equivalents and short-term investments to fund operations, and any assumptions underlying any of the foregoing. Statements regarding future events are based on the parties’ current expectations and are necessarily subject to associated risks
and uncertainties related to, among other things, the outcome of any legal proceedings related to the merger; risks that the anticipated benefits of the merger or other commercial opportunities may otherwise not be fully realized or may take
longer to realize than expected; risks that we may not realize expected cost savings from our restructuring plans, including the anticipated decrease in operational expenses, at the levels we expect; possible restructuring and transition-related
disruption, including through the loss of customers, suppliers, and employees and adverse impacts on our development activities and results of operation; restructuring activities, including our subleasing plans, customer and employee
relations, management distraction, and reduced operating performance; risks that internal and external costs required for ongoing and planned activities may be higher than expected, which may cause us to use cash more quickly than we
expect or change or curtail some of our plans, or both; risks that our expectations as to expenses, cash usage, and cash needs may prove not to be correct for other reasons such as changes in plans or actual events being different than our
assumptions; our ability to achieve future financial targets; changes in our business or external market conditions; challenges inherent in developing, manufacturing, launching, marketing, and selling new products; interruptions or delays in the
supply of components or materials for, or manufacturing of, our products; reliance on sales of capital equipment for a significant proportion of revenues in each quarter; seasonal variations in customer operations; unanticipated increases in
costs or expenses; continued or sustained budgetary, inflationary, or recessionary pressures; uncertainties in contractual relationships; reductions in research and development spending or changes in budget priorities by customers;
uncertainties relating to our research and development activities, and distribution plans and capabilities; potential product performance and quality issues; risks associated with international operations; intellectual property risks; and
competition. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. For information regarding other related risks, see the “Risk Factors” section of our most recent annual report
on Form 10-K filed with the SEC on March 1, 2024. We undertake no obligation to revise or update any forward-looking statements for any reason.
Non-GAAP financial information
Standard BioTools has presented certain financial information in accordance with U.S. GAAP and also on a non-GAAP basis. The non-GAAP financial measures included in this presentation are non-GAAP gross margin, non-GAAP gross profit, non-GAAP operating expenses, and adjusted EBITDA. Management uses these non-GAAP financial measures, in addition to GAAP financial measures, as a measure of operating performance because the non-GAAP financial measures do not include
the impact of items that management does not consider indicative of the Company’s core operating performance. Management believes that non-GAAP financial measures, taken in conjunction with GAAP financial measures, provide useful
information for both management and investors by excluding certain non-cash and other expenses that are not indicative of the Company’s core operating results. Management uses non-GAAP measures to compare the Company’s performance
relative to forecasts and strategic plans and to benchmark the company’s performance externally against competitors. Non-GAAP information is not prepared under a comprehensive set of accounting rules and should only be used to
supplement an understanding of the company’s operating results as reported under U.S. GAAP. Standard BioTools encourages investors to carefully consider its results under GAAP, as well as its supplemental non-GAAP information and the
reconciliations between these presentations, to more fully understand its business. Reconciliations between GAAP and non-GAAP operating results are presented in the accompanying tables of this presentation.
Trademarks
Standard BioTools, the Standard BioTools logo, Biomark, CyTOF, CyTOF XT, EP1, Helios, Hyperion, Hyperion+ and SomaScan are trademarks and/or registered trademarks of Standard BioTools Inc. (f.k.a. Fluidigm Corporation)or its affiliates in
the United States and/or other countries. All other trademarks are the sole property of their respective owners.
Standard BioTools products are provided for Research Use Only. Not for use in diagnostic procedures. |
| Standard BioTools 3
OUR APPROACH
Operate as OWNERS, act like INVESTORS
“Increase ROI, Diversify Risk & Generate Returns”
Focus on EFFICENCY to grow PROFITS
“Without Margin, there is no Mission”
Offer SOLUTIONS that enable
“We are a business not a technology or 'omics application” |
| Strategy: Attract, Consolidate, Operate
Amass Talent, Build a Diversified Solutions Leader, Deliver Operational Excellence
Consolidate: High-Value Products & Solutions
targeting High-Growth, High-Margin, End- Markets
Talent recruited from all the leading Life
Science Companies + ~200 yrs of experience
Two acquisitions, $174M FY '24 revenue
and $311M Q3’24 net-cash to target new M&A1,2
Leverage: Standard BioTools Systems (SBS) to Drive
Business Execution, Efficiency, and Profitability
$100M in operationalized cost reduction
across the two acquisitions3
, targeting
adjusted EBITDA positive in 2026
4
Assemble: Team of World Class Leaders focused on
Delivering Shareholder Return
1Net cash as of Q3 '24; Cash net of convertible debt that was paid off on November 29, 2024
2The unaudited, preliminary 2024 financial results presented above, including revenue, gross margin for FY 2024 and cash and cash equivalents as of December 31, 2024, are based on current expectations and may be adjusted as a result of, among other things,
completion of annual audit procedures. This financial information does not represent a comprehensive statement of the Company’s financial results for Q4 or FY 2024 and remains subject to the completion of financial closing procedures and internal reviews.
3This refers to the Fluidgm and Somalogic acquisitions |
| Michael Egholm, PhD
Chief Executive Officer
Experience:
• Danaher
• Pall
• Roche
Alex Kim
Chief Financial Officer
Experience:
• Danaher
• Pall
• Milliken
Sean Mackay
Chief Business Officer
Experience:
• IsoPlexis
• PhenomeX
• Lazard
Agnieszka Gallagher
SVP, Chief Legal Officer
Experience:
• Sandoz
• Alnylam
• GSK
Betsy Jensen
Chief H.R. Officer
Experience:
• Danaher
• Gibraltar
• ITW
Stephen Williams, MD PhD
Chief Medical Officer
Experience:
• Somalogic
• Pfizer
• NIH
Leadership: Bring Operational Experience to Business of Science
David King, PhD
SVP, Global R&D
Experience:
• IntegenX
• Affymetrix
• Guava
Mona Abou-Sayed
SVP, SBS
Experience:
• Mitel
• Danaher
• Tektronix
Anders Davas
SVP, Global Operations
Experience:
• Danaher
• Mölnlycke
• Telair
5 |
| CONSUMABLES
INSTRUMENTS
SERVICES
Tactics: Climb the Value PYRAMID, Expand the Customer PIE
ACADEMIC
$13B1
BIOPHARMA
$27B1
CURRENT (Q3 YTD) PRODUCT MIX
CONSUMABLES
INSTRUMENTS
SERVICES
FUTURE PRODUCT MIX2
53%*
Q3 YTD
GROSS
MARGINS
65%
TARGET
GROSS
MARGINS
CURRENT END MARKETS
1Management estimate 2Anticipated
BIOPRODUCTION
$22B1
APPLIED & INDUSTRIAL
$10B1
PHARMA
ACADEMIC & & BIOTECH
GOVERNMENT
$27B1
$13B1
FUTURE END MARKETS
CLINICAL
$40B1
35%*
16%*
49%*,**
APPLIED &
INDUSTRIAL
$10B1
• APPLYING M&A to add products,
customers, and end-markets
• TARGETING consumables with higher
margins at top of pyramid
• FOCUSING on instruments with high
pull through relative to ASP
• EXPANDING service offerings to
increase technology adoption
CLIMB UP TOWARDS MARGIN
EXPAND FOR TAM & GROWTH
6
*Non-GAAP gross margin excludes amortization of developing technology, non-cash stock-based compensation, and depreciation and amortization. Refer to Appendix for a reconciliation between GAAP and non-GAAP gross margin
**Includes 2% of other revenue |
| Environment Needing a Partner Like Standard BioTools
Emerging Life Science Tools & Biopharma Markets Difficulties Create Consolidation Opportunity
$0
$10
$20
$30
$40
$50
$60
Jan '22 Jan '23 Jan '24 Jan '25
Avg. Share Price
Valuation & Sales Decreases in LS Tools1
1Average share price of 13 emerging life sciences companies
7% revenue
decrease in '23,
and 9% decrease
through Q3 '24
80%
decrease in
valuation
Private Tools Financing Activity Down3 Public Tools Equity Financing Dried Up2
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
2021 2022 2023 2024
$-
$5
$10
$15
0
10
20
30
40
50
2021 2022 2023 2024
# IPOs # FOs # RDs Total ($B)
‘24 equity issuance
($) down 93%
compared to ‘21
$14B
$1B $1B
$1B
Venture investment
activity down 53%
compared to ‘21
Standard BioTools has the platform to consolidate life science tools companies facing these challenges, under one channel, to
create broader value to customers and return to shareholders.
2Cowen
$ in billions
7
3HSBC |
| M&A Pipeline: Disciplined Criteria and Filling Funnel
8
Consumables Instrument
Services
DIVERSIFIES PRODUCT MIX & END MARKET
• High margin recurring consumables
• Diversified product mix
• Growth in pharma and new end markets
DE-RISKED TECHNOLOGY
• Science fully understood
• Deployable product
PATH TO COMMERCIALIZATION
• Clear unmet need & product market fit
• Rigorously validated
• Systematic VOC work
SBS SYNERGIES
• Accelerate Sales/Adoption
• Leverage global scale
• Ops and Manufacturing
Academic
Pharma
Applied/Ag/Industrial
PRIMARY END MARKET
Bioprocessing
Clinical
M&A FOCUS & CRITERIA |
| • 32% improvement in adjusted EBITDA YTD Q3 2024
• 98% on time delivery Q4 2024 vs 78% Q4 2022
• 4+ fold Reduction in complaints FY 2024 vs FY 2022
APPLYING SBS TO DRIVE IMPROVEMENT
Acquire Smartly, Consolidate Quickly, Leverage SBS to Deliver Value
TARGETING ASSETS WITHROI
• Identify high-value solutions capable of lifting off from prior
years of costly R&D investments
• Leverage Standard BioTools Business Systems (SBS), and
its Lean Practices and Continuous improvement (Kaizen) to
improve reliability and profitability
• Deliver quality improvement & cost saving opportunities to
drive better customer outcomes post-acquisition
9
SBS FLYWHEEL
New Asset
LEAN TRANSFORMATION:
Realizing value through reduction in
cost-per-unit
KAIZEN
Continuously
Improve on margin &
customer delivery
CUSTOMER CENTRICITY
Deliver service and quality systems
on demand to customers
Value |
| 10
Fluidigm Case Study: Improving KEY Operational and Financial Metrics
STRATEGIC RATIONALE
• Company had spent ~$900M of cash prior to acquisition, and despite 20+ years of
operations, declining sales and extensive operating losses.
• Attractive jumping off point and an instrument sales chassis for growth
• Operating discipline was required to drive quality & profitability and improve
customers experience
• Embedded within the company is leading proteomics OEM within microfluidics
(Olink partnership) and pioneer of spatial proteomics (IMC)
PROGRESS HIGHLIGHTS
• Rationalized portfolio, streamlined organization, invested in quality
• 9% top-line growth yoy, with 900bp non-GAAP gross margin expansion YoY (2022-23)
• 17% reduction in non-GAAP OpEx YoY (2022-23) & 53% improvement in operating
cash use
• Managed Gx business to contribution margin setting up for profitable growth
• Mass Cytometry business on path to profitability and growth
Revenue Gross Profit1
Operating
Expense1
Operating
Cash Use1
FY22 FY23 FY22 FY23
$98
mm
$106
mm
$50
mm
$64
mm
$119
mm
$99
mm
$90
mm
$42
mm
Stabilized topline margin expansion,
and reduced spend
TRANSFORMATION ACHIEVED
OVER 18 MONTHS
+8% YOY +28% YOY -17% YOY -53% YOY
FY22 FY23 FY22 FY23
1Non-GAAP |
| 11
SomaLogic Merger: Improving Key Metrics, 12 Months In
STRATEGIC RATIONALE
• Company had spent ~$800M of cash prior to acquisition; similar to Fluidigm,
required operating discipline to drive to profitability
• Cash position of $425M+ pre merger. Enabled further restructuring activities,
investment in competitive studies, & reduction of technical debt
• Underlying proteomic aptamer technology uniquely positioned as the only
scalable serum proteomics offering; required reducing technical debt
PROGRESS HIGHLIGHTS
• Accelerated timeline of achievement cost synergies, with $80M in total cost
savings operationalized to date, targeting profitability in 2026
• In collaboration with Illumina in Q1’24, rolled out early access program of
SomaScan assays leveraging >2,000 Illumina instrument installations to drive
higher margin consumable revenue
• Combined company net cash of $311M1 as of Q3 24, enabling further growth-oriented M&A moving forward
TRANSFORMATION ACHIEVED:
FIRST 12 MONTHS
$80M
Synergies
1H’23 Ann. FY '26
Targeting
EBITDA+
$250M
FY’24
Proforma OpEx reduction
1Net cash as of Q3 '24; Cash net of convertible debt that was paid off on November 29, 2024 |
| 12
Executing Our M&A Strategy: Two Transformative Acquisitions
FY22
$98M
FY24 FY 25 - 26
$106M
FY23
$174M
M&A
SBS FLYWHEEL M&A STRATEGY DRIVING REVENUE GROWTH
New Asset
LEAN TRANSFORMATION:
Realizing value through
reduction in cost-per-unit
KAIZEN
Continuously
Improve on margin &
customer delivery
CUSTOMER CENTRICITY
Deliver service and quality systems
on demand to customers
Value |
| Standard Biotools CONFIDENTIAL 13
Merged Two Businesses: Turned around two
technology focused cash burning situations to $174
million in revenue with path to 2026 profitability
Leveraged SBS and lean systems on cost & quality:
Delivered $100million+ in overall cost savings to two
acquisitions, while driving down customer complaints
4 fold, and increasing on time delivery by 20%
PHASE 1: 2022 TO 2024
Shift Product Portfolio Mix up Value Pyramid:
Continued evolution into consumables and kits
business, as Illumina partnership matures, SOMAmer
reagent launch, & focused M&A across industry.
PHASE 2: 2025 TO 2026
Moving up pyramid to higher GM businesses:
Transitioned to 80% consumable and services mix.
Path to further consumables growth with Illumina
proteomics partnership
Close 4-6 growth driving acquisitions:
Current end markets and capital markets
creating large funnel to execute on
Deliver Profitable, Lean Enterprise with SBS:
Complete cost take out & GM improvement to
ensure profitable growth, while continuously
improving customer & quality metrics
13
Next Inning for Standard BioTools
Building a Diversified Life Science Tools Industry Leader |
| Product Portfolio & Opportunity
14 |
| Proteomics: A Large Opportunity, Entering Transformative Era
15
1 Biospace 2024.
Transformative Era
Impacting Large Areas of Human Health
Cardiometabolic (i.e. GLP-1),
cardiovascular, Alzheimer's, and
immunological disease
Targeted Oncology
& Gene Variant Diseases
Limited / Targeted
Populations
Large, Growing
Populations
Genomic Driven Proteomic Driven
Standard BioTools' DNA based SOMAmers are Positioned to Capitalize on Large Opportunity Ahead
$32 Billion
Proteomics TAM1
Large + High CAGR
2023 2032
$110 Billion
14.9%
CAGR |
| SOMASCAN
PLASMA
PROTEOME
KREX
ANTIBODY
PROFILING
OMICS AS A SERVICE
SINGLE CELL PROTEOMICS
SPATIAL PROTEOMICS
SERVICES & CONSUMABLES
Portfolio Capitalizing on Transition from Genomics to Proteomics
16
Reflects combined historical information with certain adjustments, assuming the merger closed on January 1, 2023.
Q 3 ' 2 4 R E V E N U E M I X
CONSUMABLES
INSTRUMENTS
LAB SERVICES
FIELD SERVICES
OTHER
31%
12%
41%
14%
CYTOF
SINGLE CELL
PROTEOMICS
HYPERION
SPATIAL
PROTEOMICS
BIOMARK
FLUIDICS
WORKFLOW
INSTRUMENTS & CONSUMABLES |
| Proteomics Era Unlocked with DNA-Based SOMAmers
17
Population
Genomics
Population
Proteomics
Detect
ATCG
Distinct Capture
of 10K+ proteins
DNA Based SOMAmers:
Scale in ways Antibodies Cannot
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
0 2000 4000 6000 8000 10000 12000
# protein measurements
Precision on duplicates (1-CV %)
1.1k 5k 11k
SOMASCAN ASSAY SCALING
LEADING HIGH PLEX
ANTIBODY BASED COMPETITOR
5k
3k
96
7k
k=1,000s
Limited by
Antibodies
to Date
Straightforward,
Led by
Illumina
Rooney et al. Plasma proteomic comparisons change as coverage expands for SomaLogic and Olink. MedRxiv Preprint. 2024
ATCG |
| SomaScan: Leading Platform, Data, & Therapeutic Partners
18
1,000+
Proteomics publications
SBI's Leading SOMAmer Solution
Positioned at '25 Tipping Point Published January 03, '25 by Novo Nordisk
Measuring ~6,400 human proteins in
nearly 2,000 participants, uncovered key
insights into semaglutide (i.e. GLP-1),
including cardiovascular benefits |
| Transformative Opportunity
19
Integration of SOMAmers with Illumina's Leading NGS Platform
Transformative Era for Proteomics:
Opportunity over the next decade
+
Multiple '24 Studies:
Aptamers are Only
Scalable Solution on
the Market Today
Key ’24/’25 Data:
Leading Population
Biomarker Studies1
2000+
Installed base of
NovaSeq
Instruments
+
Standard Bio hosting its Aptamer Scientific
Round Table in Q1: Information to follow
1Maretty et al. Nature Medicine. 2025;Western et al. Nature Genetics. 2024; Shen et al. Cell. 2024
DNA based SOMAmers + Illumina NGS
illumina |
| Standard BioTools 20
OUR APPROACH
Operate as OWNERS, act like INVESTORS
“Increase ROI, Diversify Risk & Generate Returns”
Focus on EFFICENCY to grow PROFITS
“Without Margin, there is no Mission”
Offer SOLUTIONS that enable
“We are a business not a technology or 'omics application” |
| Appendix: Financials
21 |
| Q3 2024 Revenue
Continued Focus on Diversifying Revenue Mix
Pro Forma Combined Q3 2024 YOY Q3 YTD 2024 YOY
Consumables $14M 13% $45M 21%
Instruments $6M (42%) $20M (28%)
Lab Services $18M 1% $41M (23%)
Field Services $6M (4%) $19M 0%
Collaboration and other $1M 10% $3M (19%)
TOTAL $45M (5%) $128M (9%)
The selected 2024 unaudited pro forma financial information combines the Company's financial results for the three and nine month periods ended September 30, 2024, and the historical results of
SomaLogic for the five-day period ended on January 5, 2024, the closing date of the merger between the Company and SomaLogic (the “Merger”). See “Unaudited Pro Forma Results” below for
discussion of the pro forma financial information. Numbers may not add, and percentages may not foot due to rounding.
• Consumables growth driven by kit sales to
authorized sites and Illumina early access
program
• Instrument revenue declined due to
continued capital spending constraints
• Services saw favorable timing from few
large customer projects alongside new
customer growth
22 |
| Q3 2024 Gross Margin (Non-GAAP)
Pro Forma Combined Q3 2024 YoY Q3 YTD
2024 YoY
Non-GAAP Gross Margin $ $26M $1M $68M ($5M)
Non-GAAP Gross Margin % 57% 520 bps 53% 110 bps
Executing Roadmap to Expanded Gross Margin Profile
• 520 bps positive impact in Q3
2024 over Q3 2023 from mix shift
driven by lower instrument sales,
as well as by improved yields,
lower scrap and lower warranty
costs due to SBS
Non-GAAP gross margin excludes amortization of developed technology, non-cash stock-based compensation, and depreciation and amortization. Refer to Appendix for a reconciliation between GAAP and non-GAAP gross margin.
The selected 2024 unaudited pro forma financial information combines the Company's financial results for the three and nine month periods ended September 30, 2024, and the historical results of SomaLogic for the five-day period ended on January 5,
2024, the closing date of the Merger. Numbers may not add, and percentages may not foot due to rounding.
23 |
| Q3 2024 Operating Expenses (Non-GAAP)
Non-GAAP OpEx Reduction Showing up in Q3 Run Rate
• 24% and $13M reduction in Q3 2024 pro
forma combined non-GAAP Opex over
Q3 2023
• Ahead of plan on synergies with $80M
merger cost synergies operationalized;
preserving investments in growth
initiatives
Non-GAAP OpEx excludes stock-based compensation, depreciation and amortization. Refer to Appendix for a reconciliation between GAAP and non-GAAP OpEx.
The selected 2024 unaudited pro forma financial information combines the Company's financial results for the three and nine month periods ended September 30, 2024, and the historical results of SomaLogic for the five-day
period ended on January 5, 2024, the closing date of the Merger. Numbers may not add, and percentages may not foot due to rounding
24
Q3 YOY Non-GAAP Pro Forma Opex Reduction 24%
Pro Forma
Combined
Q3
2024
% of
Revenue
Q3
2023
% of
Revenue
R&D $11M 26% $13M 28%
SG&A $28M 63% $39M 83%
Total $40M 89% $53M 111% |
| Q3 2024 Adjusted EBITDA (Non-GAAP)
Maintain Vigilance and Focus on Bottom Line
Pro Forma
Combined
Q3
2024 YoY Q3 YTD
2024 YoY
Operating Loss $ ($32M) $16M ($147M) $6M
Net Loss $ ($27M) $14M ($135M) ($26M)
Adjusted EBITDA $ ($14M) $14M ($69M) $33M
• 50% and $14M improvement in
Q3 2024 pro forma combined
Adjusted EBITDA over Q3 2023
Adjusted EBITDA excludes purchase accounting items, restructuring charges, transaction and integration expenses, stock-based compensation, gain/loss on disposal of property and equipment, and other non-operating expenses. Refer to earnings
press release for a reconciliation between GAAP net loss and non-GAAP adjusted EBITDA.
The selected 2024 unaudited pro forma financial information combines the Company's financial results for the three and nine month periods ended September 30, 2024, and the historical results of SomaLogic for the five-day period ended on January 5, 2024, the
closing date of the Merger.. Numbers may not add, and percentages may not foot due to rounding.
25 |
| Q3 2024 Cash
Numbers in cash use table are non-GAAP and based on calculations derived from company’s financial books and records. Adjusted cash burn excludes transaction and integration-related, restructuring-related,
capex, and share repurchases. | Numbers may not add, and percentages may not foot due to rounding.
$367.6M
Q3 2024 improvement in
Adjusted Cash Burn
Runway to Execute Growth Strategy
29%
Balance sheet to support
continued growth
initiatives
Planned reduction in operating
burn through revenue growth,
gross margin expansion and
opex synergies
Cash runway to fund
business to cash flow
positive
A T 9 / 3 0 / 2 0 2 4
Cash & equivalents, restricted cash and short-term investments
Q3 2024 Q3 2023
Adjusted Cash Burn $21.3M $29.8M
Transaction and Integration-Related 2.0M -
Restructuring-Related 2.9M 2.5M
Capex 2.2M 1.3M
Share repurchases - 0.4M
Total Pro Forma Combined Cash Use $28.4M $34.0M
26 |
| Capitalization Table
(in millions, except per share data) Issued and
Outstanding(a) Fully Diluted
Common Shares 372M 372M
2019 Convertible Notes (b)
- 19M
Restricted Stock Units - 14M
Warrants(c)
- 12M
Stock Options (d)
- 40M
Total Shares 372M 457M
Market Capitalization (e) $718M
Cash and short-term investments at September 30, 2024 (f) $ 368M
Enterprise Value(f) $ 350M
(a) Capitalization table is reflective of common shares and equivalents reported as of September 30, 2024.
(b) Conversion rate is subject to adjustment upon occurrence of certain specified events.
(c) Warrants outstanding as of September 30, 2024 were 10.5 million, convertible to shares of Standard BioTools at an exchange ratio of 1.11. Warrants are reflected on a fully dilutive basis.
(d) Outstanding options have a weighted average exercise price of $4.26.
(e) Based on $1.93 closing price of common stock on September 30, 2024
(f) Reflects market capitalization less cash, cash equivalents, restricted cash, and short-term investments as of September 30, 2024.
27 |
| Non-GAAP Reconciliation
Gross Margin
Figures are derived from Condensed Consolidated Statements of Operations as reported in the Company’s Reports on Form 10-Q for the relevant periods. | Numbers may not add, and percentages may not foot due to rounding.
As Reported Pro Forma
Q3 2024 Q3 2023 Q3 2024 Q3 2023
GAAP Gross Profit ($M) $23.3 $11.2 $23.3 $20.1
Add: Amortization of Acquired Intangible Assets 0.6 2.8 0.6 3.4
Add: Depreciation and Amortization in COGS 1.4 0.3 1.4 0.8
Add: Stock-Based Comp in COGS 0.4 0.2 0.4 0.3
Add: Cost of Sales Adjustment 0.0 0.0 0.0 0.0
Non-GAAP Gross Profit $25.6 $14.5 $25.6 $24.5
GAAP Gross Margin 51.7% 44.0% 51.7% 42.5%
Add: Amortization of Acquired Intangible Assets 1.2 11.0 1.2 7.1
Add: Depreciation and Amortization in COGS 3.2 1.3 3.2 1.6
Add: Stock-Based Comp in COGS 0.8 0.7 0.8 0.5
Add: Cost of Sales Adjustment 0.0 0.0 0.0 0.0
Non-GAAP Gross Margin 56.9% 57.0% 56.9% 51.7%
28 |
| Non-GAAP Reconciliation - YTD
Gross Margin
Figures are derived from Condensed Consolidated Statements of Operations as reported in the Company’s Reports on Form 10-Q for the relevant periods. | Numbers may not add, and percentages may not foot due to rounding.
As Reported Pro Forma
Q3 YTD
2024
Q3 YTD
2023
Q3 YTD
2024 Q3 YTD 2023
GAAP Gross Profit ($M) $62.4 $37.1 $60.9 $61.9
Add: Amortization of Acquired Intangible Assets 3.1 8.4 3.1 10.1
Add: Depreciation and Amortization in COGS 3.4 1.0 3.4 2.2
Add: Stock-Based Comp in COGS 0.9 0.6 0.9 0.8
Add: Cost of Sales Adjustment (1.8) 0.0 0.0 (1.3)
Non-GAAP Gross Profit $67.9 $47.1 $68.3 $73.6
GAAP Gross Margin 48.8% 47.5% 47.5% 43.9%
Add: Amortization of Acquired Intangible Assets 2.4 10.7 2.4 7.1
Add: Depreciation and Amortization in COGS 2.7 1.3 2.7 1.5
Add: Stock-Based Comp in COGS 0.7 0.8 0.7 0.6
Add: Cost of Sales Adjustment (1.4) 0.0 0.0 (0.9)
Non-GAAP Gross Margin 53.2% 60.3% 53.3% 52.2%
29 |
| Non-GAAP Reconciliation
Operating Expenses
Figures are derived from Condensed Consolidated Statements of Operations as reported in the Company’s Reports on Form 10-Q for the relevant periods. | Numbers may not add, and percentages may not foot due to rounding.
As Reported Pro Forma
In $M Q3 2024 Q3 2023 Q3 2024 Q3 2023
GAAP R&D $13.2 $6.4 $13.2 $14.8
Less: Stock-Based Comp in R&D 0.7 0.5 0.7 1.0
Less: Depreciation and Amortization in R&D 0.9 0.1 0.9 0.5
Non-GAAP R&D $11.5 $5.8 $11.5 $13.2
GAAP SG&A $34.4 $22.3 $34.4 $44.9
Less: Stock-Based Comp in SG&A 4.8 2.7 $4.8 3.7
Less: Amortization of Acquired Intangible Assets 0.2 0.0 0.2 0.2
Less: Depreciation and Amortization in SG&A 1.0 0.7 1.0 1.6
Less: Loss on Disposal of PP&E 0.0 0.0 0.0 0.0
Non-GAAP SG&A $28.3 $18.8 $28.3 $39.4
30 |
| Non-GAAP Reconciliation - YTD
Operating Expenses
Figures are derived from Condensed Consolidated Statements of Operations as reported in the Company’s Reports on Form 10-Q for the relevant periods. | Numbers may not add, and percentages may not foot due to rounding.
As Reported Pro Forma
In $M Q3 YTD 2024 Q3 YTD
2023 Q3 YTD 2024 Q3 YTD
2023
GAAP R&D $48.4 $19.0 $49.0 $47.5
Less: Stock-Based Comp in R&D 4.5 1.2 4.5 2.5
Less: Depreciation and Amortization in R&D 2.6 0.4 2.6 1.6
Non-GAAP R&D $41.3 $17.4 $41.9 $43.4
GAAP SG&A $119.0 $66.2 $111.6 $154.9
Less: Stock-Based Comp in SG&A 18.9 7.8 12.0 17.9
Less: Amortization of Acquired Intangible Assets 0.5 0.0 0.5 0.5
Less: Depreciation and Amortization in SG&A 3.3 1.5 3.3 4.2
Less: Loss on Disposal of PP&E 0.4 0.1 0.4 0.1
Non-GAAP SG&A $95.9 $56.9 $95.3 $132.2
31 |
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Standard BioTools (NASDAQ:LAB)
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