Nautilus Biotechnology(NAUT) - 2025 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Total operating expenses for Q1 2025 were $18.8 million, a 13% decrease from $21.6 million in Q1 2024, reflecting a focus on cost efficiency [28] - Research and development expenses decreased to $11.5 million from $12.9 million year-over-year [28] - General and administrative expenses were $7.3 million in Q1 2025 compared to $8.7 million in the prior year [29] - Overall net loss for Q1 2025 was $16.6 million, down from $18.7 million in the prior year [29] - Cash, cash equivalents, and investments at the end of the quarter totaled approximately $193 million, compared to $206 million at the end of 2024 [30] Business Line Data and Key Metrics Changes - The company is advancing its tau proteoform assay and broad scale proteome assay, with significant progress reported in transitioning these assays towards readiness for larger scale applications [11][12] - The tau proteoform assay exceeded expectations in reproducibility and accuracy, with a median percent error of approximately 10% and a median coefficient of variation of 1.5% [15][16] - The platform demonstrated a dynamic range exceeding four orders of magnitude, significantly better than current methods [19] Market Data and Key Metrics Changes - There is significant interest from customers and partners in the company's tau capabilities and targeted proteoform detection, with ongoing discussions with large pharma companies and academic institutions [9][10] - The company conducted in-depth interviews with over 30 proteomics researchers to understand customer segments and drivers of adoption, confirming strong interest in both targeted proteoform and broad scale discovery capabilities [8][9] Company Strategy and Development Direction - The company aims to unlock the full potential of the proteome, focusing on both targeted proteoform analysis and broad scale discovery as significant untapped opportunities in biology [27] - The anticipated launch of the platform is planned for late 2026, with a focus on ensuring cash runway extends well beyond that point [29][30] - The company is prioritizing partnerships that demonstrate the capabilities of measuring complete intact protein proteoforms at single molecule resolution [46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the progress made towards the launch of the platform and the positive feedback received from potential customers and partners [10][32] - The company is monitoring supply chain exposure closely, particularly regarding tariffs, but has not yet seen any significant impact on sourcing materials [40][41] - Management emphasized the importance of customer research and understanding market requirements to ensure a successful commercial launch [60][61] Other Important Information - The company reduced its headcount by approximately 16% to extend its cash runway and focus resources on key development milestones [29] - The verification and validation process for the tau assay was crucial for building confidence in the entire platform, as it shares core components with the broad scale proteome assay [58] Q&A Session Summary Question: Update on tau-related partnerships - Management confirmed ongoing discussions with partners in both pharma and academic sectors, expecting to sign an initial partnership in the first half of 2025 [36] Question: Supply chain exposure to tariffs - Management stated that they are monitoring the situation closely and have not yet seen any effects on sourcing materials or prices [40] Question: Economics of targeted protein proteoform partnerships - Management indicated that they are exploring a range of business models for partnerships, focusing on demonstrating the technology's capabilities rather than immediate revenue [44][46] Question: Milestones for converting partnership interests - Management explained that the initial phase involves educating potential partners about the technology, with excitement noted across all customer segments [52] Question: Potential blind spots impacting commercial launch - Management expressed confidence in their understanding of the work ahead and the importance of product reliability and market positioning for a successful launch [56][59]