Artisan Global Discovery Fund on 10x Genomics, Inc.
Thesis
10x Genomics supplies leading single-cell and spatial-analysis platforms for life sciences research. Results beat expectations, and management raised full-year guidance following strong early demand for Atera, its next-generation spatial platform. The manager sees Atera as a promising new product cycle and expects AI-enabled drug discovery to require increasingly large volumes of high-resolution experimental data. A small Garden position was initiated during the quarter while evidence of the profit cycle develops.
“We believe Atera represents a compelling new product cycle”
Key risks
- Early Atera demand may not translate into a sustained product cycle.
- The anticipated AI-enabled drug discovery tailwind depends on continued spending on high-resolution experimental biological data.
- The Garden-stage investment reflects that its profit cycle is not yet firmly established.