Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Nautilus Biotechnology Inc (NASDAQ:NAUT) has made significant progress in developing its proteome analysis platform, with advancements in reagent production, instrument capabilities, and software for data processing.
• The company has developed a large number of probes that successfully bind to epitopes spanning the human proteome, demonstrating the potential for broad-scale proteomics applications.
• Nautilus Biotechnology Inc (NASDAQ:NAUT) has shown promising results in tau proteoform analysis, which could have implications for Alzheimer's disease research and potential partnerships.
• The company has maintained flat operating expenses year-over-year, demonstrating effective cost management despite increased R&D and administrative expenses.
• Nautilus Biotechnology Inc (NASDAQ:NAUT) has a strong cash position with approximately $206 million in cash equivalents and investments, extending its cash runway through 2027.

Negative Points

• The launch of Nautilus Biotechnology Inc (NASDAQ:NAUT)'s proteome analysis platform has been delayed to late 2026, impacting the timeline for commercialization.
• The company had to reduce its headcount by approximately 16% to align resources with its extended development timeline and cash runway.
• Nautilus Biotechnology Inc (NASDAQ:NAUT) reported a net loss of $70.8 million for fiscal year 2024, an increase of 11% compared to the previous year.
• There are ongoing challenges in optimizing assay configuration and surface chemistry, which have contributed to the delay in platform launch.
• The company faces technical risks in achieving high yield and performance from its probe candidates, which are critical for the success of its proteome analysis platform.

Q & A Highlights

• Warning! GuruFocus has detected 1 Warning Sign with NAUT.

Q: Could you further elaborate on your plans to modify the assay configuration and surface chemistry? What are the specific issues you're currently facing that these changes would address? A: The key aspect of the assay involves driving the specific binding of our affinity reagents to proteins with an epitope of interest and differentiating non-specific binding. Factors like how probes are labeled with a fluorophore and surface chemistry can influence this. Optimizing these elements will enhance the assay's performance. (Answered by Unidentified_4)

Q: Does the plan changes to the assay configuration or the surface chemistry change how you're thinking about the cost structure of the platform or consumables? A: The changes have no negative impact on cost and may even positively affect consumable costs. We anticipate that our pricing remains roughly correct, with an instrument deal around $1 million and sample costs starting at a few thousand dollars per sample. (Answered by Unidentified_3)

Q: Shouldn't surface chemistry be uniform for all proteins? And if tau worked so well, why does that require optimization for different proteins? A: The immobilization of proteins via nanoparticles to the surface is identical across assays. However, different labeling strategies and buffers can affect non-specific binding. Optimization ensures specific binding across various proteins. (Answered by Unidentified_4)

Q: Could you review the key milestones and timing over 2025 and 2026? A: For proteoform detection, we aim to provide platform capabilities for tau-related studies in the first half of 2025 and sign a tau-related partnership. For broad-scale discovery, decoding a significant number of proteins from complex samples is a major milestone. We will share data and updates at scientific conferences. (Answered by Unidentified_3)

Q: How does your platform's performance compare to other tau protein platforms? A: Our platform uniquely measures proteoforms in high throughput and sensitivity from complex samples, revealing detailed isoform and phosphorylation patterns. This capability is crucial for understanding Alzheimer's disease progression and therapeutic responses. (Answered by Unidentified_4)

Q: Is the late 2026 launch for both the broad-scale discovery and the more targeted platform, or are those timelines different? A: The broad-scale discovery platform is set for a commercial launch in late 2026. The proteoform platform will be introduced through partnerships and collaborations, focusing initially on tau proteoforms. (Answered by Unidentified_3)

Q: Does the launch date impact your expectations for the early access program on the broad-scale side? A: The early access period, starting 6 to 9 months before the commercial launch, allows customers to see data from their samples. This period aims to generate excitement and secure orders for the instrument. (Answered by Unidentified_3)

For the complete transcript of the earnings call, please refer to the full earnings call transcript.