Buried within Seer's Q1 2024 earnings call lies a subtle yet potentially seismic shift in their strategy: the launch of a European Seer Technology Access Center (STAC). While the company grapples with slower-than-expected commercial adoption of its Proteograph Product Suite, this seemingly minor expansion into Europe could be the key to unlocking a silent revolution in proteomics, one driven by data, accessibility, and strategic partnerships.

Seer's technology, which allows for deep, unbiased proteomics analysis at scale, holds immense promise for revolutionizing our understanding of disease, biomarker discovery, and drug development. However, the company has faced headwinds, primarily attributed to elongated sales cycles stemming from delayed customer publications and macroeconomic challenges. Seer's response? Double down on their European expansion.

The European STAC, slated to launch in Germany, mirrors Seer's existing US STAC, offering end-to-end proteomics services. Researchers can either run their own samples and have Seer handle the mass spectrometry analysis or opt for complete study services from sample preparation to data interpretation. This approach expertly tackles two critical barriers to widespread adoption: cost and expertise.

Firstly, by providing access to the Proteograph platform through a service model, Seer eliminates the need for upfront capital expenditure on instrumentation. This is particularly attractive to researchers facing budget constraints, particularly in the current economic climate. Secondly, the STAC addresses the expertise gap. Many researchers, especially those traditionally focused on genomics, lack the necessary expertise in mass spectrometry and proteomics data analysis. The STAC allows them to leverage Seer's in-house expertise, effectively democratizing access to complex proteomics insights.

"Given the success we've seen with the STAC in the US, we're excited to expand into Europe with the launch of this STAC lab in Germany next month. This will give researchers in Europe, the ability to unlock biological insight through comprehensive deep unbiased proteomics research. We look forward to continuing to address a major unmet need for researchers across the region. - Omid Farokhzad, CEO of Seer"

But the implications of the European STAC reach far beyond simple accessibility. The move signals a strategic shift towards data-driven market development. By prioritizing STAC projects for key strategic studies, even at lower price points, Seer is fostering a silent revolution. These studies, expected to lead to numerous publications and presentations, will serve as powerful testaments to the Proteograph's capabilities, generating invaluable third-party data to bolster the platform's credibility.

Furthermore, the European STAC creates fertile ground for strategic partnerships. By partnering with leading European research institutions and pharmaceutical companies, Seer can gain access to a wealth of samples, expertise, and research projects. This collaborative approach can accelerate the generation of high-impact publications, further driving market adoption.

Growth in Seer Technology Access Center (STAC) Revenue

The chart below shows the hypothetical growth in STAC revenue, based on the information from the Q4 2023 and Q1 2024 earnings calls. It highlights the potential for continued growth in this area, especially with the launch of the European STAC.

The numbers whisper an intriguing story. STAC revenue grew significantly quarter-over-quarter, and as of year-end 2023, 48 organizations were using the service, including large pharmaceutical companies. The demand for STAC services, with a current backlog, hints at a potential gold mine of untapped potential in Europe. While Seer is deliberately limiting the STAC's capacity, prioritizing market development over becoming a full-fledged service provider, the potential for revenue growth through consumable sales and collaborations with their Centers of Excellence is evident.

Here's where the hypothesis takes shape. Let's assume the European STAC achieves even half the customer base of its US counterpart within its first year of operation. That's 24 new organizations, potentially encompassing leading research institutions and pharmaceutical companies, generating a wealth of high-impact studies and publications. This, coupled with the expected surge in customer publications from existing Proteograph users, could significantly accelerate market adoption.

If each of these new European STAC customers conducts an average study size of 100 samples, that's a potential for 2,400 new samples analyzed within the year. This increase in sample throughput would translate into a substantial boost in consumable sales, even without factoring in the growth potential from existing customers.

The European STAC, therefore, represents more than just geographic expansion. It's a silent revolution, quietly building momentum through data, accessibility, and strategic partnerships. While the full impact may take time to materialize, the potential for a significant inflection point in Seer's revenue growth in the coming years is real and palpable.

"Fun Fact: Seer's name, while not an acronym, reflects the company's vision: to offer a deeper 'seeing' into the proteome, enabling researchers to 'see' what was previously invisible."