Nautilus Biotechnology(NAUT) - 2021 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Total operating expenses for Q4 2021 were $16.8 million, up from $5.3 million in Q4 2020, primarily due to scaling the team to a headcount of 113, roughly doubling year-over-year [31] - Research and development expenses for Q4 2021 were $9.9 million compared to $3.9 million in Q4 2020, driven by increased personnel costs and development pipeline scaling [31] - Net loss for Q4 2021 was $16.7 million, compared to $5.4 million in Q4 2020 [32] - The company ended the year with approximately $362 million in cash, cash equivalents, and investments [33] Business Line Data and Key Metrics Changes - The company is focused on developing its proteomics platform, which aims to democratize access to proteomics and improve drug discovery and diagnostics [10][12] - Significant progress has been made in R&D, with a focus on consumables and instruments, including a reduction in reagent creation time by a factor of 10 and an increase in yield by a factor of 2 [15] Market Data and Key Metrics Changes - The proteomics market is estimated to be approximately $25 billion, growing at a 12% CAGR [9] - The company anticipates reaching comprehensive coverage of the human proteome by mid-2023 and a commercial launch by the end of 2023 [22] Company Strategy and Development Direction - The company aims to revolutionize biological science by providing accessible proteomics technologies that can accelerate target identification and drug development [10][12] - Nautilus is building strategic partnerships to diversify its supply chain and enhance its probe development capabilities [17][27] - The company is focused on expanding its intellectual property portfolio, having recently been awarded its fourth U.S. patent [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving commercial launch timelines despite some delays in probe development and characterization processes [49][50] - The company is optimistic about the market's excitement for single molecule protein analysis methods and believes it can outperform existing methods [20][29] - Management highlighted the competitive landscape, noting that Nautilus offers significant advantages in sensitivity and dynamic range compared to mass spectrometry and peptide sequencing methods [61][64] Other Important Information - The company plans to host its inaugural Analyst Day in late September to discuss its pricing model and market analysis [35] - The management team emphasized the importance of early customer engagement and the need for ongoing investments in R&D and commercial activities [33][36] Q&A Session Summary Question: What is the current headcount compared to Q3 and any key roles still looking to add? - The company ended the year at 113, doubling year-over-year, and plans to continue investing in R&D and commercial teams [38][39] Question: Clarification on the Genentech collaboration update? - The company will present work from the Genentech collaboration at the US HUPO meeting [41] Question: Updates on MD Anderson-Amgen partnerships? - The agreements were recently signed, and the company is in the early stages of understanding the biological questions to address [42] Question: Details on agreements with three new partners? - The new partners are focused on increasing probe development strategies and complementing existing agreements [44] Question: Drivers of the compressed probe schedule? - The company is behind schedule but remains confident in achieving its milestones due to scaled-up internal and external efforts [48][49] Question: Value addition in the clinical diagnostics market? - The company sees the need for research use partners to lay the foundation for downstream clinical applications, particularly in orphan diseases [58] Question: Positioning versus competitors in protein sequencing? - Nautilus provides significant advantages in coverage, sensitivity, and dynamic range compared to mass spectrometry and peptide sequencing methods [60][61] Question: Impact of wage and cost input inflation? - The company is experiencing competitive labor costs and supply chain challenges but is prioritizing spending to meet objectives [65]