NAUT - Earnings call 3 2023 | Nautilus Biotechnology, Inc.

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Operator

Thank you for standing by, and welcome to the Nautilus Third Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Carrie Mendivil, Investor Relations. Please go ahead.

Carrie Mendivil

Thank you. financial the released XX, ended Nautilus XXXX. today, results quarter for September Earlier

received or please news to you nautilus.bio. this If haven't release to relations to company's e-mail be the if distribution an list, send investor at added like you'd

Nautilus today Patel, Sujal Co-Founder from Parag Mowry, Chief Co-Founder and Chief Scientist; Joining Anna CEO; Financial Mallick, are me and and Officer.

laws. to that These will make of this call are Before and within could management federal involve uncertainties we materially statements cause or statements that from securities begin, material risks actual remind you those anticipated. I'd events meaning forward-looking like differ the that during to results

other projections law, live I'll or call uncertainties statements obligation call or disclaims Sujal. update information these release This conference any forward-looking or because today. Except press to future only Additional or over financial turn revise the information, by section issued appears of in whether information accurate risks events product Nautilus or XXXX. With of the to that, entitled pipeline forward-looking otherwise. October and is XX, intention Nautilus as time-sensitive regarding statements, contains any required the new and broadcast, the in as

Sujal Patel

the and over QX at not we've made envisioned. roles today. in little X has continued Thanks, activities the begun activities. the the development and He's with to match and quarter decades, organization the development to, That now results the ] Subra the senior significantly Subra benefit to efficiency and we'd instrument last under held a scientific Unifying by has scientific we for the with reaching productivity thank efforts and for it's us as Kerry. the needs I'm goals maintaining Nautilites Illumina, we've where the many right and from been On our consumable commercial strategic notably deep related change, X customer progress Development. SVP Subra of elements has been brief verification Based various activities. preparing development our mid-September, experience, against our R&D these ways involvement gains excited report provide to sequencers Product only issues while business, our our making Subra. With Solexa years. broad he already our see our it you Good a to and been development and integration, his is products. successful outward-facing product update led extensive reports being now R&D enabling the over in the month his next-generation for we're [ share Though time scale-up almost this day-to-day our unite made person platform of beginning experience, R&D Subra's plan efforts our by since progress Sankar, into of launch. to of and for a for on joining result efforts especially, expand adapt under all morning, across stage, done and we'll pleased change. communities direct also parts scientific both and Parag the in additional product the us call, third great and financial the that on XXX-plus of organization. I'm work of limited but the entirely recent

and Martin Dr. team development. excited of Joining our cell just Subra's Huber we're flow Biochemistry as yesterday, VP to welcome

and our will of team's chemistry the but in leadership our direct not broaden years, at His single-molecule Quantapore, scientist ultimately, pioneering DNA Co-founder, past Martin was protein massively paralleled company Prior of CTO, a Nanosphere. XX and and to that, For depth bench. only R&D tools. also Torrent positions engineering Ion set, expertise skill held analytical devoted the he to and senior a deep CEO nano increase

the laid increasing flourish. focus for their been massive take scientific era proteins. proteomics the foundation biology the proteomics investments proteomic the on offerings me root related to has of to and in that clear companies life of and an medicine international expand moves by major With study community, sciences It's by to and

proteomics continue KOLs in underscores opportunity in and educate and broader to the of committed While a to high-throughput build the could white one-on-one platform This buying continue a range trust that research next the Nautilus, which significant across believe of will what available we and the insight recent the exciting biological we it millions into platforms exists the posters more other HOPA is to focus benefits. We of that to how webinars continues to areas advances share World meaningful believe year, improve briefings, just and health works the world. In our research. our to that to and Korea revolutionize being opportunities of early transparency is great match that near-term philosophy contributing believe for conducted, we event, about proteomics Congress others and proteo potential community. One fundamentally mid-September methods that our a provided scientific type emerge the ways possible advance like through us, the credibility of of with potential papers, easy-to-use its are for audiences proteomics. member our than South platform human in in will manifest and all presentations, broadly hold making discovery way the improvements potential platform scale of opportunity and change Busan, our

For over on progress, an turn and more update call Parag. on R&D our that I'll now to the

Parag Mallick

Sujal. Thanks,

biologically terrific most event fireside ETH mentioned, that to integrated what's and needs Bernd chat community the standard easy reimagine agree suggested update who did Sujal meaningful conducted a a we us need of the encourage the easier to button" that to proteomics. provided some for a for we proteomics. researchers our in Bernd great HUPO to vehicle attendees necessary job for At a on generate on of with "red field very and are well-attended and of to year articulating effective this workflows make Zürich. proteomics progress challenges platform Wollscheid possible proteomics booth, data As us Professor again is effectively and what workflows a facing mainly biggest to that today, consistently was

seminar, of kidney use a Their the to also Dr. Institute We dramatic injury. for Bons lunch to Birgit discussed platform which and Schilling work demonstrated has proteome long-standing hosted Research from during and changes challenge Post to kidney winners Aging, Access Buck upon Joanna Docs her First Jordan study how injury. Burton, plan the our Nautilus on the

relationship measurement impacted a into diverse that the the it Burton applications of will other HUPO Schilling cycles library our view to This throughout hugely proteome to also discovery are from initiatives. In our presented use and of stability at Bons, the preparation protein spinal applications into and proteome looking We're new mass we to of identification. I enables examining doctor the rate to understanding of of about a that they platform, by complementary subcellular increase on platform work envisions as believe dynamic the and and number research therapeutics. diseases estimate workflows. developed to process, of hearing large perform that at molecules single in planning of we our and shedding always extensive the have to and are Now approach enjoy our with get effective time intact fluid the this they posters, found the scientific characterization platform. their range single to false hearing that we protein be how them excited we for confidence in conversations existing the development and diverse reagents, the rigorous molecule HUPO, protein research measured the cerebral molecule heard interested number community Nautilus to when community dynamism the most neurodegenerative ranging the disease affinity between platform new the spectrometry-based was in

routinely parameters, of anticipated series measurements. A important those instruments molecule learning-based to targets. machine commercial fixing proteins, deposition, nanoparticles to reagents chips, for buffers fabricated As to labels to a proteome, to capable a fully demand a I all that critically which software in more manufacturing single doing a both detail and progress of market recent reliably assay measurements important cost performing a chips quantities to to a for have calls, in including we for like comprehensively binding from update platform continue reported you those I'd we fronts, prepare molecule is probing work single and number engage the of during identities we're and Nano and protein and of good and bring quantify fixed across the area for with development protein and platform on meet make determining to to scale protein the their on external design partners affinity

On transfer. actively selected the the manufacturer on instrument front, we with our engaged are design contract

in built early completed initial We quarter expect instruments fully this next part of this year. with to the validated the be in externally

terms locked we vendor flow the In that our the we'll this process quarter. The fabrication process chemistry have assembly of flow completed further fabrication at development to nano have cell, from cell be and nano validating surface to end-to-end ready. and processes of been are selected production

and to actively processes downstream and year. We of end have on surface with chemistry cell suppliers by vendors flow this the expect are working those our qualified

access production of upcoming and We very with made anticipated resources current in continue processes production made We're production QX our external reagents. I'm support up the processes. Overall, have with and to the internal combination process scaling ability to and our our meet a in have needs manufacture volumes to development and pleased our early in production the year. progress great we production utilize of confidence existing to throughout

Sujal. increase of back next continue that, launch the we robustness for to scale teams to platform hand internal ready call With I'll the Our platform as the and year. the

Sujal Patel

too, specs activities our target Anna over I, launch We the a will and a to QX has look fronts that this number Thanks, accelerated financials. proposition value anticipated Based our Parag, remain our distinct confident towards core market. next am completely on we to and continue year With the Nautilus' I'll drive with the I we launch deliver of our development that, pleased VX Nautilus as for made Anna? hand XXXX key continue for at our of year advantages and on that, platform. progress important to and very commercial agree. the readiness. call

Anna Mowry

quarter quarter above up head to in increase of Sujal. expenses an operating third of third the Thanks, were compared XXXX $XX.X quarter of $X.X to operating year-over-year $X.X XXXX $XX.X million by period. Overall, for year of period. million XXXX year were quarter. increase $X.X XXXX support to $XX.X XXXX million, of the driven administrative $X.X prior of in year for in and million compared the million third development modest development and million last $X.X Research third General net compared was in This expenses count were the to prior loss quarter products. expenses the million the the in quarter compared ongoing million and was expenses primarily Total million to the third $XX.X period. prior the in our in

Turning $XXX million to to the balance burned million We of $XX and equivalents beginning at in Since last year, the cash, cash approximately ended million compared quarter. we of our the with sheet. approximately the of have investments quarter $XXX end cash.

disciplined our focused management We flexibility commercial ensure in the we of operational launch. on ahead strategically cost continue that investing to business, have to maximum while be

operational to year, Over R&D, this our while improve on important taking of continue in pipelines have our throughput time, progress, we and the development leadership Even particularly the production on making additional we facilities. past new and efficiency. hired increase

by may XX% than our recall operating year-over-year. expect XX% we to growth reduced our forecast With XXXX. laser XXXX quarter, expenses XXXX to compared You our focus, and team's expense slightly of have improved continued our efficiency now increase last annual that more to further we

enter strong continue to runway into XXXX lower XXXX. and expect extending we rate a our burn Importantly, cash balance, to with cash a

platform organization build-out confident positioned commercial our balance that, our strongly execute it in initial capital, and Sujal. launch that of to Our range a account a robust launching takes on are we into date and on XXXX the hand back include proteomics. scenarios. disciplined remain we I'll With sheet of goal transformational expectations runway product With of to of our management

Sujal Patel

a to to area running pleased business this very as Needless take a Anna. bringing in critical market. focus Thanks, the say, with to our want our to efficiently I'm her our moment the team XXXX. as platform continued possible diligent Nautilus' their through thank way to of is on investing of for launch continued I to in maximizes rest while our the our cash and managing for finances Anna senior resources commitment year planned leadership stewardship and next runway into that

very proteomics clear. makes KOLs one potential with and conversations thing and frequent customers Our continued other

Now that measurement great world to to for hungry we proteins platform and a a is the of biological company breakthrough the a is and it. new time standard of supplies be of capable research proteoform. The establishing gold intend the pioneering be fully in

against along year continue updating I'll and the our look we platform turn next towards We continue way to you to call make good and beyond. our the the as progress back that, to commercialization With goals forward operator. of

Operator

And of Tejas the [Operator Stanley. line Instructions] first our comes Morgan from from question Savant

Yuko Oku

should on ASHG. some Could from Yuko I presenting? brief the saw that at out looking for Tejas. is us overview for? be And This you posters give you'll of Nautilus what we a data be

Sujal Patel

me This add. Let Sujal. is

to but question think ASHG? and I'll I to the -- Parag this me around to really really expect Let low, the answer. The go is pass was over question to at was volume what

Parag Mallick

a Absolutely. great It's question.

to the of and are to slightly part both that. to and our will for our market the reagents community. false accomplish the affinity computational developed educate The focused discuss in specific large particularly the newer as to We'll goal of well around data array we'll the community community we're platform a how and identifying also of our share ASHG Our this very and the substantial going involve protein stability platform. aspects context we molecule how single characterizing also across proteomics platform, as runs continue and and infrastructure on analysis the cycle discovery rates multiomic of as data characterized, introduce discuss is to is fundamentals with that genetics

Yuko Oku

just versus head that follow-up separate growth launch we Great. you're target was you question. Could thinking spend in And than OpEx date in frame closer now more XX% XX% slightly guided lower starting last year-over-year quarter. 'XX to 'XX? a about as then how

Anna Mowry

innovative staff cost, very solving Let just, we that. forecast really don't been spend, we development they're temper I our with XXXX, continue for we'll way. to manage comments our problems give on to we at year. creative me we for our driving out a that in solutions more specific commercial targeted think can there hiring for room make mentioned, how figuring so of would the but OpEx continue be as folks being will them. you at have and our to a has supports handful but will The make I'll of reduced that in what's a tell bit how And growth teams, color lower very and tight a to often is be comments which the team Sujal would on invest XXXX. what the very as side couple I on able any and that the is I diligent start call in do start that of by at

Operator

Daniel question comes next the Brennan line our from of And from Cowen.

Daniel Brennan

year-end, one, 'XX Maybe still QX mid about and by data targeting launch? is some to change then first set access of level the like thinking in the still launch, just all at a things, the to aspects there kind of key early any placements

Sujal Patel

for This Yes, Sujal. question. Dan, the is thanks

would calls. changes you we I say highlighted I QX and the are to said is earnings plan. what But -- don't think there call, that the it's I in quite now no QX is So call, for the last our what just what exactly you're on same that

of our launching period or that's software. middle any continue of is of access consumables launch. X So approximately revenue the platform The that next we the meaningful of instrumented launch period roughly -- months our to inflection point what from And where product X begins. the early said we've ahead that XXXX target really, a is for has the of means middle year, that

be XXXX. that early we'll anticipate doing in any don't access we that so And

to can we the submitted as importantly, can so but about early before us much X interest with charge the it's around goal and samples can should with get start X of of so XXXX, customers we we analyzing I generating months head that's into as we instrument signing some And papers get we'll a reminder, the look that will that grant customers, for about to availability, potential this is and And as and well modest early a next value stepping roughly make our for mean, publications an or announcement money marketing go launch those the set program platform you preorders more that proposals really customers, in to get of that for our not customers. begin so period use as then amount our or collaborators stone will access after -- it's and then analyze access with the we up samples.

Daniel Brennan

makes sense. protein do I Were discussed small you other those remain well, changes maybe commercial of targeted of the the believe, on by of making intact? Got That Are and stand kind green with last track ] kind made on [ kind the where today? it. terms to you of 'XX? as quarter adjustments coverage, just adjustments know dynamic still I some middle just there specs of in any specs

Sujal Patel

good Yes, that's question. a

intact those market, those a competitive consumable not of specifications. so didn't that call, the as launch our our to for into specifications we face], then in few they're and as are are continue marketplace, specifications considering scaling and that said pragmatically In Obviously, lots and would full below product where slightly in over changes the phase we full but validation our the we market-leading. time [ parts. were we steps reagents. change areas we year. QX verification, those of specifications to specifications adjusting But There QX, initial we in take of at to just head end so could specifications moving of our through launching really As preserve are we time believe we reminder, the specifications, here our the up our any still the of general, the move our initial on ramping that a

Daniel Brennan

then of we it. a can you we what the papers can tech Got with at And early looks -- some kind ASHG from can customers awareness, in papers, like remind kind access like -- it education -- we What what more in? just expect terms could before like understanding the down there. obviously, of you'll of be really kicks for more us

Parag Mallick

Parag. I'll take that one. is This

from of our anticipate think to. X that The I you falling our general, speak follow I won't publications, think X in timing But is strategy generally, what you paper categories. publication it phases. really as can publications about will should into

The are foundational manuscripts. technology, really first

So PrISM for be the similar things our there'll questions nanoparticle like nanoparticle well next of we'll our publication that some algorithm demonstrations also really with as sorts the partners examining approach. instance, third a series conjugation prior, using that biological And approach and of around then then publications are platform have as to publications of really the capabilities. And speak platform. we publications area papers anticipate our deposition

Daniel Brennan

just Great. of happening. kind explosive kind and Maybe you growth and alluded to a that, think obviously, final the the of of that's Thermo on Olink, I some proteomics excitement one

from the the thoughts on any of wondering just super -- just in that. kind on differentiated, standpoint? Olink, think either Just of think buying validating you've kind really technology about, Just company again, I a tools competitive positioned you how wake just the of is you that, do or how like competitive largest your color about environment. know but

Sujal Patel

Olink, going important Yes, the announcement as I acquire world. validates think, the really validates in new tremendously that space that to think proteomics and Fisher are I proteomics is Dan, approaches Thermo well that the

of proteomics say acquisition, in Fisher. new the so in I at taking look would Thermo If what the you kind in it's of the market far, entrants putting leader hand is, successful most really

next think there's are that besides approaches from to current climate, is is spectrometry think the precision exciting and I generation of that it's admission gold for clearly proteomics looking fact that unlock mass in market a couple and so And discoveries of achieved accelerate standard that the community really deliver the that Fisher think, of personalized important price Thermo the indicative are standpoint. One base. to customer scientific I that to and is development my things a today's to point drug And other the incredibly I of really important the medicine. who's

standpoint, think great. from it's So I that really

being a more comment is decades, you in the my One of in of the around sort I will someone startups of were broader that Olink, entrant company been to when a but how competitive. They you large who's change young nimble the experience that things buys become -- for competitiveness might an the this marketplace, alluding like innovation get that in slows. a couple marketplace don't technologies

of other that of sequencing pretty And is like sample so Olink from the out are marketplace executed best set like a proteomics well entrants some spectrum that approaches. on that's the for and exciting I my peptide the prep not is discovery standpoint, more of because of it's as approaches end the company new other focused less the think those the or

at we've technology think Our of [ that focused view, that a door. and the being out well getting down on development the what complete of and of look our because next nature the the why building, complex we're to for in, the heads intended swing winner as ] on we're specifications got year, product we've going the value and when getting hands. that's all the our developed we And I moat proposition, completed

Daniel Brennan

also and biotools obviously, And the standard Great. SomaLogic deals. the

So congrats there thanks strategic was moves feedback the within but the of for a certainly quarter. quarter, lot and for the

Operator

from next Matt comes Goldman question line our the And Instructions] Sachs. from of Sykes [Operator

Unknown Analyst

This is Matt. [indiscernible] for

your gotten thoughts companies are we've about first how one, feel move you other we as spend? The towards do on your And CapEx launch? pharma from price what on feedback

Sujal Patel

Yes.

thanks So the for question.

customers just particular, about introduce already I internationally. will that product, caps getting the we from reported lumpier because this a to are what's our company that's little spend CapEx have perspective, really, from pharma is still be of bit is the and their color in money help important 'XX I to -- diagnostics heard substantial to areas. that in we've What in many, budget And appears of are technologies a in space. specific a the But lot as and well spend, what small as very is dent on. many in a with think biomarker terms drug there make answer a that for spend that space CapEx going likely available are does conversations that in development know that in I discovery to So you pharma pharmaceutical question. more in that want large is

And our business really standpoint, see an so from capital I impact the our that's environment to with don't out there.

The second a half And customers' to point. very and of from the our feel front it, feel I market direct about your potential price from related good question was feedback And is good perspective. from a really the that I perspective on price answer point. both about

the field million top spectrometers the the proteomic the $X the side, the continued even which to of price Thermo mass XXXX the pushes with instrument. end of initial standard in release market saw the for point increase Orbitrap is of for sites today closer Astral, On price gold which the Fisher's

price good a customer feedback to price spot on with to we're pricing it makes price is a -- is the that specifications of we good then From in get which from of I to will that, includes continue we point, to the get good the very specification about launch. to our our that lot That initial warrant point on feel and marketplace. install where proteins, based pricing [ system. by the about instruments, a feedback this support the and like gotten we've we'll the hitting consumable to the sweet package whole consumables and point talk specifications the good product, price dynamic some really feel addition warranted is in appropriately roughly $X how and ], where we the going. So of rep be rate side, samples million, which And relative our high feel sensitivity, service sense many size, customers, what deal as other the that instrument the about and of of perspective, instrument we discuss customers closer products more that

Unknown Analyst

Could Okay. bumps chain more the for Great. you supply That's And way? external with super one looking process future risks and to manufacturers along general, just there's when what been through in me. you're helpful. working then is if you're going any for prevent how that talk

Sujal Patel

Yes.

of with to So I'm bit. bumps And chain lot this. Mary and with tools about understand other now who by chain DX totally supply talk is happy have been gosh, I to there chain number I companies. the doing X have we a The something supply because little attention XX and that than a worked question manufacturing a supply pay she and by experience decades years, organizations more has Godwin, something run organizations for of

make that multiple have wherever within the can. all relationships terms is we system. strategies are, key got foremost, our system what our ability We've to first suppliers making good that to it In of the use very design we the the and our resilient has sure strategies of is that of are sure -- balance with suppliers is a QC

light, California-based the a our doing On side, internal builds we well-known contract instrumentation the our use. our build the for do electronic this stage contract at instruments of is use those side, the even manufacturer of to meaning early manufacturer

the we cell of And what and chip so able chip a that an cell, on that's assembly of be partners reagents, silicon with that bulk about build for sorts the and to components. paid transfer essentially those our both our something and to There we number fully us robust comfortable those the manufacturer plastics you are really flow year. And is if suppliers assembly, and we've and are class One like is chain. a work well is our that they to third area kits, consumable a And on a to and fuse those chain. is the and partners are which very, The have really building is the of We're flow components. lot scaling where that and that complicated. of kits things. attention then with the next robust of really next those are that's the supply a probes. And buffers bodes which very for procedure builds reagent key that are reagent all for closely all our X think antibodies really then things start to And contract really side, QCs of on that not built are. responsible what our something supply an

the vendors, going We with getting our of multiple taking and have antibodies, can antibody do is inside And of then so a the or in we we them us. reagent which So instruments some internally kit manufacturing analysis. then responsible as which for -- external that we run them well. organization, full turning have consumable marrying manufacturing do into our up that group

Operator

This the well question-and-answer your session as gentlemen, for conclude you, participation. ladies today's Thank does as and program.

now disconnect. day. Good may You

Nautilus Biotechnology (NAUT) 31 Oct 232023 Q3 Earnings call transcript