Business Overview and History Incorporated in California in May 1999 as Mycometrix Corporation, the company changed its name to Fluidigm Corporation in April 2001 and reincorporated in Delaware in July 2007. The company was founded with the goal of developing and commercializing microfluidic technology for life science applications. In the early 2000s, Standard BioTools introduced its first integrated fluidic circuit (IFC) product, which enabled precise control and measurement of minute fluid volumes. This technology formed the foundation for the company's development of advanced instruments for applications such as single-cell analysis, genomics, and proteomics.
In 2014, the company made a significant move by acquiring DVS Sciences, Inc., a pioneer in mass cytometry technology, which expanded its portfolio into proteomics. This acquisition helped strengthen the company's position in the life sciences research tools market. However, Standard BioTools also faced periods of financial difficulties, leading to restructuring efforts and changes in leadership.
The company's journey took a pivotal turn in 2024 with the transformative merger with SomaLogic, a leader in proprietary affinity-based proteomics. This strategic combination has allowed Standard BioTools to further strengthen its position in the rapidly growing proteomics market, which is poised to become the next billion-dollar opportunity in scientific research.
Standard BioTools is committed to setting the new standard in the life science tools industry through strategic consolidation, best-in-class operations, and a world-class management team. The company offers a diverse range of instrumentation, consumables, and services that generate high-quality data across early discovery, translational and clinical research. Key technology platforms include SomaScan for proteomics, CyTOF for single-cell analysis, Hyperion for spatial biology, and Biomark for genomics.
In November 2024, Standard BioTools acquired Sengenics, a functional proteomics company, to add KREX precision antibody profiling services and kits to its SomaScan suite of solutions. The company is focused on driving commercial execution, market diversification, expanding its customer base, and pursuing strategic M&A to accelerate growth.
Financial Overview As of the end of fiscal year 2024, Standard BioTools reported total revenue of $174.43 million, a 64% increase compared to the previous year's $106.34 million. This growth was primarily driven by the integration of SomaLogic's business, which contributed $82.30 million in revenue for the partial year of 2024 following the merger completion on January 5, 2024.
On the profitability front, the company reported a net loss of $138.88 million for the full year 2024, compared to a net loss of $74.66 million in the prior year. The increased net loss was largely attributable to merger-related expenses, including transaction costs and integration efforts, as well as ongoing investment in research and development to drive future growth.
However, the company has made significant strides in improving its operational efficiency and cost structure. In 2024, Standard BioTools operationalized $80 million in cost synergies from the SomaLogic merger, a full year ahead of its initial target. Additionally, the company implemented an additional $10 million in cost reductions, primarily in research and development, bringing the total operationalized synergies to $90 million over the past 12 months.
These cost optimization initiatives, coupled with the company's focus on driving revenue growth through its expanded product portfolio and customer base, have resulted in a 33% improvement in adjusted EBITDA for the full year 2024 compared to 2023. This progress reinforces Standard BioTools' commitment to achieving adjusted EBITDA breakeven in 2026, despite the challenging macroeconomic environment.
For the most recent quarter (Q4 2024), Standard BioTools reported revenue of $46.72 million and a net loss of $34.07 million. Year-over-year, revenue declined 9%, and net income declined from -$18.42 million in Q4 2023. The revenue decline was primarily due to continued softness in Instrument and Services revenue as capital spending constraints and cautious spending in biopharma and academia offset strong growth in Consumables revenue.
Geographic Performance During the last three years, a significant portion of revenue was generated outside of the United States. Total revenue received from customers outside the United States was $84.5 million, or 48% of total revenue, in 2024, compared to $62.2 million, or 59% of total revenue in 2023, and $56.9 million, or 58% of total revenue in 2022. The majority of revenue came from the Americas region, accounting for 52% of total revenue in 2024. China represented 7% of total revenue in 2024, down from 15% in 2023 and 11% in 2022.
Segment Performance Standard BioTools operates in two reportable segments: proteomics and genomics. The Proteomics segment includes the company's instruments, consumables, software, and services based on technologies used in the identification of proteins. This segment has been the primary driver of the company's growth. Proteomics revenue grew 113% year-over-year to $135.79 million, representing 78% of total revenue. The increase was primarily driven by the impact of the merger with SomaLogic, which expanded the company's proteomics capabilities, products, and services. The Proteomics segment reported a loss from operations of $61.90 million.
The Genomics segment includes the company's instruments, consumables, software, and services based on technologies used in the identification of genes, DNA, RNA, and their functions. Genomics revenue decreased 9% year-over-year to $38.64 million, representing 22% of total revenue. The continued decline in the Genomics segment was anticipated, and the company is focused on growing the OEM business and managing this segment to potentially sustainable positive contribution margin in the near-term. The Genomics segment reported income from operations of $3.20 million.
Liquidity As of December 31, 2024, Standard BioTools reported a debt-to-equity ratio of 0.07. The company held $292.9 million in cash, cash equivalents, restricted cash, and short-term investments. The current ratio stood at 5.70, while the quick ratio was 5.09, indicating a strong liquidity position.
Operational Highlights and Strategic Initiatives One of the key drivers of Standard BioTools' success has been its relentless pursuit of innovation. The company's flagship SomaScan platform, which it acquired through the SomaLogic merger, has emerged as a game-changer in the proteomics space. This proprietary technology enables the simultaneous measurement of up to 10,000 proteins, providing researchers with unparalleled insights into the complex interplay of biological systems.
The integration of SomaScan with Illumina's industry-leading next-generation sequencing (NGS) technology has been a strategic priority for Standard BioTools. This collaboration has resulted in the development of a co-branded solution that is poised to democratize access to high-throughput proteomics, unlocking new possibilities for disease research and drug development.
In addition to its proteomics offerings, Standard BioTools' product portfolio includes other cutting-edge technologies, such as the CyTOF mass cytometry platform and the Hyperion spatial biology solution. These versatile platforms have found widespread adoption across various fields, including immunology, oncology, and neuroscience, further solidifying the company's position as a trusted partner in the life sciences ecosystem.
The company's SomaScan platform is a key offering within the Proteomics segment, enabling researchers to measure thousands of proteins simultaneously with high specificity and sensitivity. The SomaScan Assay profiles 10,000 unique human proteins from minimal sample volumes, providing deep insights into biological processes and disease mechanisms. The company also offers targeted SomaScan Assay panels, the KREX Assay for autoantibody profiling, and SomaSignal tests for clinical applications.
In the Genomics segment, the company's Biomark X9 system redefines high-throughput genomics by delivering exceptional efficiency, precision, and scalability for qPCR applications, enabling the simultaneous analysis of thousands of reactions in a single run.
Navigating Macroeconomic Challenges Like many companies in the life sciences industry, Standard BioTools has faced its share of macroeconomic headwinds in recent years. The COVID-19 pandemic, fluctuations in government funding, and ongoing trade tensions have all contributed to a challenging operating environment.
However, the company has demonstrated resilience and agility in addressing these challenges. During the height of the pandemic, Standard BioTools quickly adapted its operations, implemented cost-saving measures, and maintained strong customer relationships, allowing it to weather the storm and emerge stronger.
Looking ahead, the company is closely monitoring the potential impact of factors such as changes in NIH funding, evolving trade policies, and inflationary pressures. While these external factors can present complexities, Standard BioTools has taken proactive steps to mitigate risks and maintain financial discipline, including the implementation of additional cost reductions and a focus on diversifying its customer base and revenue streams.
Future Outlook and Growth Opportunities As the life sciences industry continues to evolve, Standard BioTools is well-positioned to capitalize on the growing demand for advanced proteomics solutions. The company's strategic focus on expanding its product portfolio, enhancing its commercial capabilities, and pursuing strategic acquisitions has laid the foundation for sustainable long-term growth.
The successful integration of SomaLogic has not only strengthened Standard BioTools' technological capabilities but has also opened up new avenues for collaboration and market expansion. The company's partnership with Illumina, for instance, is expected to drive broader adoption of high-throughput proteomics, aligning with the industry's shift towards a deeper understanding of the human proteome.
Furthermore, the company's disciplined approach to capital allocation and cost management, as evidenced by the realization of $90 million in merger synergies, positions Standard BioTools to navigate the current macroeconomic landscape and emerge as a stronger, more agile organization. With a robust balance sheet and a clear strategic roadmap, the company is poised to capitalize on the significant opportunities in the life sciences market and deliver long-term value for its shareholders.
The life science tools market is estimated to have a CAGR of over 7% from 2023 to 2028, driven by increasing investment in R&D, growing demand for proteomics and genomics technologies, and rising adoption of personalized medicine. Standard BioTools is well-positioned to benefit from these industry trends.
Guidance and Future Plans For 2025, Standard BioTools is guiding for organic revenue between $165 million and $175 million, which represents a 3% decline at the midpoint of the range. This guidance accounts for a mid-teens percentage decline in Americas academic revenue, equating to a high single-digit million dollar impact. The company expects no impact from the recent U.S. export control rule on their CyTOF products at the midpoint of their guide. If Standard BioTools were to absorb potential new import tariffs, they estimate a low single-digit million dollar impact to gross margin and adjusted EBITDA.
Despite these challenges, Standard BioTools remains on a path to adjusted EBITDA breakeven in 2026. The company has a robust pipeline of 4-6 strategic M&A transactions targeted over the next 2 years, which could potentially accelerate growth and expand their market presence.
Standard BioTools continues to invest significantly in research and development to enhance its existing platforms and develop new solutions to drive innovation and accelerate the pace of drug development for its customers across the proteomics and genomics markets.
Conclusion Standard BioTools' transformation from Fluidigm Corporation to a leading player in the proteomics revolution has been nothing short of remarkable. Through strategic mergers, relentless innovation, and a steadfast commitment to empowering researchers, the company has solidified its position as a trusted partner in the quest to unlock the mysteries of human health and disease.
As the life sciences industry continues to evolve, Standard BioTools' diversified product portfolio, strong financial position, and unwavering focus on operational excellence position it for sustained growth and success. With a clear vision, a talented team, and a deep understanding of its customers' needs, this dynamic company is poised to power the next wave of biomedical breakthroughs.