Nautilus Biotechnology, Inc. (NASDAQ:NAUT) Q3 2023 Earnings Call Transcript

Sujal Patel: Yes. So I’m happy to talk about supply chain a little bit. And I totally understand the question, because there have been a number of bumps with other DX and tools companies. Supply chain is something that we pay a lot of attention to. My supply chain organization and manufacturing organization is run by Mary Godwin, who I have worked with now for, gosh, something more than 15 years, and she has four decades of experience doing this. In terms of what our strategies are, first and foremost, our strategies are to make sure that the design of the system is resilient that it has validated QCs, making sure that we have the ability to use multiple suppliers wherever we can. We’ve got very good relationships with all of the key suppliers within our system.

On the electronic side, meaning the instrumentation side, we use a well-known California-based contract manufacturer to do the build of those instruments. Even at this early stage of our life, our contract manufacturer is doing the builds for our internal use. And so that’s something that bodes really well for us to be able to fully transfer all of those builds to that contract manufacturer and start scaling for next year. And then on the reagent side, if you think about our reagent kits and our consumable kits, they have a number of components. One is a flow cell, which is essentially an assembly of fused glass and silicon chip. And our partners on the flow cell and chip are really partners that we work very, very closely with on what the procedure is to build that assembly.

What the QCs are, we’re comfortable with both of the key suppliers that are responsible for those two components. The next is really the bulk reagents, which are not all that complicated. They’re things like buffers and our plastics and those sorts of things. And that’s an area where we’ve built a robust supply chain. And then the third is really antibodies and really our probes. And those are something that we paid a lot of attention to, building a robust supply chain. So we have multiple external vendors which do antibody manufacturing for us. We do some of that internally as well. And then, we have a reagent manufacturing group inside of our organization, which is responsible for taking the antibodies, turning them into our full consumable kit, then going in and getting them married up with the instrument so that we can run analyses.

Operator: Thank you. This does conclude the question-and-answer session as well as today’s program. Thank you, ladies and gentlemen for your participation. You may now disconnect. Good day.