No M&A contributed to sequential growth so organic growth came in down -0.8%. On a year-over-year basis, we estimate M&A delivered substantially all of the 56% reported Q3 growth. Organic growth this quarter we estimate at 3% year-over-year. As discussed in the SCD webinar, the company is still managing the transition of legacy work to high-value projects with large pharmaceutical clients. While this transition may mute revenue growth in the short term, management is confident customers working through this longer sales cycles will positively impact revenue growth in future quarters. As for margins, gross margins stayed above 50% as IPA increased high margin projects at its B-cell lab. IPA also reported $578,000 of one-time costs in Q3 to improve operational efficiency, integrate U-Protein and Modiquest, and establish a global structure for reporting and oversight. Adjusted EBITDA, which excludes these one-time costs, was positive, $116,000, for the first time since the company came public in November 2016. We now have a much better handle on the company’s breakeven point and it won’t take much revenue growth from here for IPA to start showing quarterly profits. Recent News: IPA increases its service offering Just this week, IPA announced the expansion of their offering with a new service called DeepDisplay. This service combines transgenic animal immunization with custom phage display antibody selection to discover rare, fully human antibodies. Remember antibody research is like finding a needle-in-a-haystack. Maybe even more like finding a needle in an ocean. Odds are extremely low, but the payoff is extraordinary. Fully mature pharmaceuticals like Humira sell over USD$1 billion per month. So any service or technology that can increase the odds of success even just a fraction of a percent is potentially worth millions to the client. And that’s exactly what IPA is offering here with a service offering now unmatched in the industry. They have decades of experience with hybridoma technologies, the conventional methods now mature in the industry. They successfully launched a B-cell screening service last year, something only a handful in the industry could offer. But now with phage display, they have an offering nobody else in the industry has. And this value is already being realized by big industry players as hinted in the press release: “ImmunoPrecise has launched, in response to a large-scale discovery program with an unnamed, US-based Pharma company, a powerful and unique platform for therapeutic antibody discovery proven to be successful in delivering a sequence-diverse human antibody panel with broad species cross-reactivity (e.g. mouse, primate, human). The combination of a transgenic animal immunization with phage display antibody selection used in DeepDisplay™ delivers the most therapeutically-relevant antibodies, in a shorter period of time, with the highest probability of success compared to conventional technologies.” We will continue to look for evidence new services like these are attracting business from marquee pharmaceutical clients. Recent News: IPA to build their own antibody portfolio Just today, IPA announced another major milestone: they will be pursuing in-house antibodies aimed at commercialization through a new subsidiary, Talem Therapeutics. With all the progress they have made building out a one-stop-shop CRO, it’s only natural to move up the antibody discovery value chain. This shift moves IPA from purely a service organization to potentially owning a piece of a blockbuster drug discovery. What’s the size of prize here? Well just last month, IPA’s partner, Ligand Pharmaceuticals (LGND:NASDAQ), announced they sold a royalty interest in one of their portfolio drugs, Promacta, to Novartis for US$827 million. And that was just for a royalty stream, not the entire asset. Any way you look at it, there is a large upside in owning a commercialized therapeutic. And with outcomes like these, it’s no surprise companies like Ligand are looking to put more capital to work in the space: “This transaction doubles our investable cash to over $1.4 billion while preserving what we view as our most valuable assets: our portfolio of partnered programs and our OmniAb technology platform. We have a promising horizon of business-development opportunities, and remain committed to obtaining potential royalties through internal development, acquisition and technology out-license to drive revenue growth.” Should IPA find success leveraging their technologies to build a portfolio of early-stage antibody therapeutics, they could find attractive investment partners from key industry players. Bottom Line IPA’s next set for financials are due out later this summer. We will continue to look for the inflection point – a jump in revenues and validation legacy contracts have fully converted into high-value programs with key clients. In the meantime, we will also note management has continued to increase their position in the company. We’ve had recent insider buying from both from Paul and Jennifer: | 
