10X Genomics (TXG) Morgan Stanley 22nd Annual Global Healthcare Conference summary

Key accomplishments and product launches

• Major product launches across all three platforms in Q1, including Visium HD, Xenium 5K, and GEM-X architecture upgrades.

• Strong customer reception and initial traction for new products, especially GEM-X, which impacts a significant portion of revenue.

• Overcoming initial order delays in Q1 with increasing momentum and customer transitions in Q2.

• Leadership transitions, including a new Chief Commercial Officer and CFO, and a significant sales force reorganization to drive future growth.

Market environment and operational challenges

• Macro environment worsened through Q1 and Q2, tightening customer CapEx budgets and elongating sales cycles, especially for high-value instruments.

• Instrument sales, particularly Xenium, were affected by stricter budget approvals and longer decision timelines.

• The company is confident that current sales softness is macro-driven, not due to waning interest in spatial biology.

Portfolio strategy and product accessibility

• Launched Chromium Xo to lower CapEx barriers and democratize single-cell sequencing, targeting new and episodic users.

• Chromium Xo supports GEM-X assays and is easily upgradable, encouraging customer progression to higher-end products.

• Focus on total cost of ownership and workflow efficiency to maintain competitive advantage despite emerging instrument-free approaches.