00:00Let's start off with the guidance going forward. You raised it ever so slightly but clearly investors were pleased with
00:05that. What gives you the confidence that you're going to meet those numbers. Yeah. Well first thank you for inviting
00:11me here to the show and I'm definitely pleased with the quarter. We had a strong beat in the quarter.
00:15We raised the second half of the year. So I think that's what you see that our investors have been
00:20pleased with. We have had a fantastic performance over the last six months where our stock is up almost 50
00:25percent. But it really speaks to that the strategy is working.
00:29The strategy of becoming the infrastructure behind genomic medicine and really providing sequences, reagents and of course also compute and
00:41software into many laboratories around the world where they can take that and take the biological sample and translate that
00:49into deep insights. That goes both for researchers, pharma but more importantly also into clinical labs. Clinical labs are really
00:58adopting sequences
00:59sequencing DNA sequencing now to help really ensure that their patients can get a good profiling of their diseases. Oncology
01:07is a big one. Yeah. And we are seeing a lot of momentum in that space. Well as somebody who
01:11has some personal experience with that talk to me a little bit more about the clinical side of the business.
01:15How much of a growth story that can be but also the efficacy of the information that is being that
01:20is being produced on the spot there.
01:23Yeah. I mean clinical is now more than 65 percent of our consumers business and it's really the growth engine
01:29for the company. We are growing in the teens right now and we think that is a doable growth. We
01:34think there's a lot of opportunity here. And the reason for that is that genomic sequencing it is the DNA
01:39is the blueprint of biology and it's very important for many different specific diseases to understand the genomic profiling especially
01:47in for cancers that is that disease of the genome.
01:50But today it's still not a part of standard of care. So bringing it up to standard of care is
01:55going to be essential for really helping patients to be successful in their fight against the different diseases. Oncology we
02:02are starting to do that.
02:03We are doing that for selecting the right therapy for people. So our customers are doing that in the laboratories.
02:09But you can also go into monitoring when you have gone into remission of cancer. You can use genomic profiling
02:15to monitor the disease and ensure you can pick up any signal that will show that the cancer is coming
02:19back.
02:20That's a tremendous growth opportunity there. And that is the power of Illumina and that's where we see a lot
02:26of opportunities in the in the future.
02:28Jacob what about the tools business. How is that going for you guys. And is it still affected by the
02:34attempted Trump admin cutbacks to life sciences funding.
02:38Yeah. So you think about the the business that we are delivering and we are providing tools across many different
02:44parts of many different segments and clinical is a big one.
02:47But we also are supporting the academic research space. The genomic sequencing is being used to really helping to advance
02:56our understanding on biology advance understanding of diseases.
02:59But it's not only on the DNA level anymore. Now we are shifting to be also looking at both DNA
03:04but also all the way up to to protea to on proteins to proteomics.
03:08And and so yeah we have been impacted with some of the challenges that's been happening in the in the
03:14funding environment. But I think this will come back.
03:18And especially the space that we are in on what we call multiomics is one of the areas that will
03:22be that will be invested in in the future.
03:25But right now it's it's something that we see as an upside to our numbers. So I think that will
03:30really fuel more more growth when that comes back that market.
03:33What about the new AI life sciences business bio insight. Do you think there's going to be more partnerships like
03:39that with pharma.
03:42Yeah. So if you look at at the opportunity here is that the genomic sequencing is very very data intensive
03:47in in each of ourselves we have the genome consists of 3 billion letters.
03:54So we have to read that or the biology we have to read that every time. There's a tremendous amount
03:59of of of data.
04:01So we've used AI for a long time to really understand what the what the genome actually looks like. But
04:07it's highly complicated to combine the genomic information with proteomics information and so on.
04:13And you need AI insights to really translate into early signals.
04:18So we are starting to sequence and create big data sets that provides deep insight that pharma can now use
04:24to really have better predictability in that drug discovery.
04:28This is the future. We're just getting started. And I can I'm very convinced that this will change our understanding
04:33of biology.
04:34It will revolutionize drug discovery. It will revolutionize how we think about health care going forward.
04:40And Illumina is going to be a center of that. So I'm very excited about that business.
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