Nautilus Biotechnology, Inc. (NASDAQ:NAUT) Q1 2024 Earnings Call Transcript

And we made a number small tweaks to the flow cell design in Q1 that are being implemented here through Q1 and into Q2 here that are aimed at improving quality on the reagent side. Remember that our reagents are kind of consist of two separate categories of things one is bulk buffers and those sorts of things. And that stuff is pretty simple. And we for the most part manufacture that stuff with partners outside of our walls for the antibody side and the probe side, and the probe is basically antibody plus our proprietary label. We’ve been building this for quite some time. We have a robust supply chain that includes building some of that stuff internally as well as some of the constituent parts that go into those externally. And we’re managing the supply of the input materials well.

So I don’t see any issues there as we begin to scale up here in the latter part of this year and next year.

Unidentified Analyst: Okay, great. Thanks so much.

Operator: Thank you. One moment for our next question. And our next question comes from Matt Steyn with Jefferies. Your line is open.

Unidentified Analyst: Thanks. You guys discussed and improved our margin per ton, but the experimental runs continue to make good progress. If you go back to last quarter, I think you talked about order of magnitude improvement three times better sequentially in 1Q as well just given how important this is for scaling the platform I guess, how much more of an improvement do you need, or should we expect to see? Are you getting closer to where these models and systems need to be? Thanks.

Parag Mallick: I’ll take that one as a starting point. When we think about our launch targets, we typically have expected to want to be able to execute on hundreds of — on measurements using hundreds of probes, expect it to be in two colors. So somewhere in the 150 to 200 cycles are what we’re targeting for having for our launch targets. And so accordingly you should continue to see us advancing towards that, improving towards that further increasing the reproducibility and stability across hundreds of cycles as where we’re aiming to be. In terms of reliability and reproducibility, some of the other areas that we’re continuing to push on are end-to-end assay reproducibility as well rather than components reproducibility. For example, in the limit of detection studies that we presented at US HUPO, one of the things that we did was repeat those measurements several times, across different instruments, across different operators, across different days.

And so those are the kinds of things that we’re going to continue pushing towards as we move towards releasing and our instruments and platform.

Unidentified Analyst: Thanks. And then maybe one for Sujal. Sounds like a lot of positive momentum coming out of HUPO, would love to just hear a little more on some of the learnings from the recent event here in the US, and then what you’ll look to build upon ahead of the event this fall in Germany. It sounds like there’s a lot of interest you might have a bit more of an update both for the scientific and investment community. So just would love your thoughts on building on the recent momentum and capitalizing on the next event here in October? Thanks.

Sujal Patel: Yeah. Why don’t I start that and then I’ll let Parag maybe delve in a little bit more detail. I think that the US HUPO event was one where I think that we continue to see a lot of momentum both for the proteomics space, but for Nautilus specifically as well. I was down there in Portland and had the opportunity to walk around and see all the posters and the booths. I had a number of conversations with many of the KOLs and scientists in the proteomics space. And there certainly was a lot of excitement around the data that we were showing and anomalous method. Our booth traffic was excellent. We have a lot of people who are well known proteomics scientists, not just stopping by, that stopping by and spending extended amounts of time talking to our booth staff, having a conversation with Parag or myself or with Nick Nelson, our Chief Business Officer and really engaging in a way that I think was gratified to see.

But as well, I would say is a little bit different and improved from what we’ve — what we’ve seen in years past. So I think that was great. One of the other highlights, I was — I was down there during one of folk talks — one and multiple talks at the US HUPO Conference and what his talks was really one, that is an updated version of the talk that you’ve given before which really describes the genesis of the Nautilus Scientific Method, our technology, how the assay works, and what our end goals are as well as updated data. And progress session was absolutely packed. We were turning down our competitors at the door. We’re trying to get at every seat was full with potential customers and scientists looking to learn more. The aisles were full of people, really great to see, and lots of good questions and engagement as well.

So from that regard, I think it was it was a really successful show. And just to address, the second half of your question head on. And then, I’ll let Parag, add any detail that he wants to add. But certainly you know US HUPO coming up we’re working very hard to take the data that we have now and take it to one step closer to having a product that’s out the door right. And we’re not committed to exactly how to think about on the call exactly what we have as we head into US HUPO here. But we’re we are hopeful that we can — we can start showing them much more data than just being able to decode transplant for example which is what we showed at US HUPO. So we’re working hard. Our heads are down and the entire team is focused on that, Parag, anything to add there in terms of some detail on our US HUPO.