Q1 2024 Nautilus Biotechnology Inc Earnings Call

April 30, 2024

Good day, and thank you for standing by.

Operator: Good day, and thank you for standing by. Welcome to the Nautilus Biotechnology Q1 2024 EARNINGS CONFERENCE. At this time, all participants are in a listen-only mode.

Nautilus Biotechnology Q1, 'twenty 'twenty four earnings conference call.

At this time all participants are in a listen only mode.

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After the speaker's presentation, there will be a question and answer session.

To ask a question during the session you will need to press star one on your telephone.

You will then hear an automated message advising your hand is race.

Operator: After all your questions, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jian Ye, Investor Relations. Please go ahead.

Draw. Your question. Please press star one again.

Please be advised that today's conference is being recorded.

Speaker Change: I would now like to hand, the conference over your speaker today.

Speaker Change: G O N E.

Investor Relations: E Investor Relations. Please go ahead.

Investor Relations: Thank you.

Jian Ye: Thank you. Earlier today, Nautilus released financial results for the quarter ended March 31, 2024. If you haven't received this news release, or if you'd like to be added to the company's distribution list, please send an email to InvestorRelations at Nautilus.bio. Joining me today from Nautilus are Sujal Patel, co-founder and CEO, Parag Mallick, co-founder and chief scientist, and Anna Mowry, chief financial officer. Before we begin, I'd like to remind you that management will make statements during this call that are forward-looking within the meaning of the federal security law. These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated.

Investor Relations: Earlier today Nautilus released financial results for the quarter ended March 31, 'twenty 'twenty four.

Investor Relations: If you haven't received this news release or if you'd like to be added to the Companys distribution list. Please send an email to investor relations at Nautilus stockpile.

Investor Relations: Joining me today from Nautilus are Suzhou Patel co founder and CEO per.

Investor Relations: <unk> Malik co founder and Chief scientist and Annemarie Chief Financial Officer.

Investor Relations: Before we begin I'd like to remind you that management will make statements. During this call that are forward looking within the meaning of the federal securities laws.

These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated.

Sujal M. Patel: Additional information regarding these risks and uncertainties appears in the section entitled Forelooking Statements in the Press Release Nautilus issued today. Except as required by law, Nautilus disclaims any intention or obligation to update or revise any financial or product pipeline projections or other forward-looking statements, whether because of new information, future events, or otherwise. This conference call contains time-sensitive information and is accurate only as of the live broadcast, April 30, 2024. With that, I'll turn the call over to Sujal.

Investor Relations: Additional information regarding these risks and uncertainties appears in the section entitled forward looking statements in the press release Nautilus issue today.

Investor Relations: Except as required by law Nautilus disclaims any intention or obligation to update or revise any financial our product pipeline projections or other forward looking statements, whether because of new information future events or otherwise.

Investor Relations: This conference call contains time sensitive information and is accurate only as of the live broadcast April 32024.

Investor Relations: With that I'll turn the call over to Susan.

Sujal M. Patel: Thanks, Gian, and welcome to everyone joining our Q1 2024 earnings. Q1 was a highly productive quarter for Nautilus as we continue to execute on our vision to establish a new gold standard for the creation and comprehensive analysis of high-value proteomes. In order to deliver a range of long-discussed and long-desired improvements in human health, biomedical research needs a dramatic acceleration in target identification and therapeutic development.

Susan: Thanks, John and welcome to everyone, joining our Q1 2024 earnings call.

Susan: Q1 was a highly productive quarter for <unk> as we continue to execute on our vision to establish a new gold standard for the creation and comprehensive analysis of high value proteomics data.

Susan: In order to deliver a range of long discussed and long desired improvements in human health Biomedical research needs, a dramatic acceleration and target identification therapeutic development.

Susan: But.

Sujal M. Patel: As they have for many years, researchers remain impeded by the lack of sensitivity, scale, and reproducibility of traditional protein analysis methods and of emerging affinity-based and peptide-based methods. We believe a fundamentally new approach is required to overcome these limitations and to unlock the potential value of the proteome, something we continue to view as one of the most significant untapped opportunities in biological medicine. We, and the Proteomics KOLs with whom we regularly speak, understand how important intact single-molecule protein analysis is, and the Nautilus platform could be to their explorations of the.

Susan: As they have for many years researchers remain impeded by the lack of sensitivity scale and reproducibility of traditional protein analysis methods and of emerging affinity based and peptide sequencing methods.

We believe a fundamentally new approach is required to overcome these limitations and unlock the potential value of the perennial something we continue to view as one of the most significant untapped opportunities in biological sciences today.

Susan: We and the proteomics kols with whom we regularly speak understand how important intact single molecule protein analysis, and the novelist platform could be to their exploration through the proteome.

Sujal M. Patel: They know that deeper, richer proteomic data could one day make it possible for researchers to more quickly identify the mechanisms of action of diseases ranging from cancer to Alzheimer's. Understanding those mechanisms will be key to identifying effective treatments. Interestingly, many of these KOLs maintain a heavy focus on the use of mass spectrometry.

Susan: They know that deeper richer proteomics data could one day make it possible for researchers to more quickly identify the mechanisms of action of diseases ranging from cancer to Alzheimers.

Susan: Understanding those mechanisms will be key to identifying effective treatment.

Yeah.

Susan: Interestingly many of these kols maintain a heavy focus on the use of mass spectrometry for proteomics.

Sujal M. Patel: The positive attention our platform continues to receive from them is a good sign for things to come with this critically important and influential buy-in. As you'll hear from Parag in a few moments, those KOLs are encouraged by the data we shared at the recent U.S. HUPO, and several of them have begun imagining specific initiatives against which they plan to apply our platform as part of our early action.

Susan: Positive attention our platform continues to receive from them is a good sign for things to come with this critically important influential buying audience.

Susan: As you'll hear from parag in a few moments those kols are encouraged by the data we shared at the recent U S. Hoopoe conference and several of them have begun imagining specific initiatives against which they plan to apply our platform as part of our early access program.

Sujal M. Patel: As we previously shared, the EAP will launch in the months leading up to commercial availability in 2025. Never intended to be a significant revenue driver, the program will serve as a high-value means by which to generate data to support both internally and externally generated scientific papers, customer grant proposals, and will get meaningful data into the hands of potential customers. We will keep you informed as we get closer to launching. I remain pleased with the progress that has been made in development activities surrounding each of the core components of the platform, including the core reagents, sample prep, affinity reagent probes, Chips, Plug Cells, the Instrument, and Software. For more on those and other R&D-related updates, let me now turn the call over to Parag. Parag?

Susan: As we've previously shared the EAP will launch in the months, leading up to commercial availability in 2025 never intended to be a significant revenue driver. The program will serve as a high value means by which to generate data to support both internally and externally generated scientific papers.

Susan: Grant proposals and we will get meaningful data into the hands of potential future customers.

Susan: We will keep you informed as we get closer to launching the EAP.

Okay.

I remain pleased with the progress that has been made in development activity surrounding each of the core components of the platform, including the core reagents sample prep.

Susan: <unk> probes chips flow cells, the instrument and software.

Susan: For more on those in other R&D related updates, let me now turn the call over to Brock.

Rod.

Brock: Overall, we continued to make solid progress against our core development goals in Q1.

Brock: We remain incredibly focused on increasing scale stability and reproducibility across our consumables assay and platform.

Brock: And continue to see meaningful gains along those dimensions.

Brock: This progress goes hand in hand, with advancing the reliability quality and customer readiness of our instrument and software.

Platform stability enhancements increased consumable scale and quality and increased instrument availability and capacity have allowed for a significant increase in the number of high cycle number protein, indicating experiments that we can initiate and complete successfully.

Brock: Fact, we completed nearly three times the number of experimental runs in Q1 as we did in Q4 of last year.

Parag Mallick: Thanks, Sujal. Overall, we continue to make solid progress against our core development goals in Q1. We remain incredibly focused on increasing scale, stability, and reproducibility across our consumables, assay, and platform, and continue to see meaningful gains along those dimensions. This progress goes hand in hand with advancing the reliability, quality, and customer readiness of our instrument amps. Platform stability enhancements, increased consumable scale and quality, and increased instrument availability and capacity have allowed for a significant increase in the number of high cycle number protein decoding experiments that we can initiate and complete successfully.

Brock: This increase in experimental scale is essential as we continue to optimize all aspects of our platform towards launch targets.

Brock: The increases in experimental scale and assay robustness have enabled us to increase the complexity of the model system that we're using for ecosystem wide optimization.

Brock: We are excited to be continually increasing the complexity of these model systems to include an increased diversity of proteins across a wider range of concentration.

Brock: We are also excited about an increasing focus on activities critical to our commercial launch such as pre verification studies, a key platform characteristics, such as reproducibility and sensitivity.

Brock: From the standpoint of sharing the foundational elements of our platform with the broader proteomics community. The highlight of Q1 was our participation in the annual conference of the U S Human Proteome organization.

Brock: Super.

Brock: U S. Hugo attracts many of the types of researchers in organizations that could be potential users of our platform.

Parag Mallick: In fact, we completed nearly three times the number of experimental runs in Q1 as we did in Q4 of last year. This increase in experimental scale is essential as we continue to optimize all aspects of our platform towards the launch target. The increases in experimental scale and assay robustness have enabled us to increase the complexity of the model systems that we are using for ecosystem-wide optimization.

Brock: It's exciting to see that this year's conference attracted approximately 600 attendees more than doubling the attendance of just two years ago.

Brock: This increase in participation points clearly to increased interest in the proteomics space overall.

Brock: From a standing room, only luncheon seminar term any posters and significant traffic at our booth <unk> provided an extraordinary opportunity to share with the community additional progress on the experimental implementation of prism further detail on our multifamily probe pipeline and on computational methods to estimate fault discovery right.

Parag Mallick: We are excited to be continually increasing the complexity of these model systems to include an increased diversity of proteins across wider ranges of concentrations. We are also excited about an increase in focus on activities critical to our commercial launch, such as pre-verification studies of key platform characteristics, such as reproducibility and sensitivity. From the standpoint of sharing the foundational elements of our platform with the broader proteomics community, a highlight of Q1 was our participation in the annual conference of the U.S. Human Proteome Organization, U.S.HUPO.

Brock: In addition to continuing to educate the community about how our platform works. Our goal. This year was to begin introducing experimental data from our pre verification studies that demonstrate the key performance characteristics of the platform.

This new data on both broad scale and pretty farm analysis generated a great deal of interest and questions from attendees.

Brock: Specifically, we shared data showing ultra sensitive and repeatable single molecule quantification of the protein transparent.

One of the key Differentiators of our platform is its incredible sensitivity.

Brock: This is critical for finding diagnostic and prognostic biomarkers that can be indicative of diseases at the earliest and most ratable stages.

We demonstrated lower limits of quantification in the high <unk> to Lowe's the optimal range.

Parag Mallick: USHUPO attracts many of the types of researchers and organizations that could be potential users of our platform. It was exciting to see that this year's conference attracted approximately 600 attendees, more than doubling the attendance of just two years ago.

This represents a more than five order of magnitude better sensitivity than typical mass spectrum metric methods.

Brock: We also shared how by exploiting the ability of our platform to iteratively probe individual molecules, we were able to quantify the abundances of 32 distinct tau protein forms.

Parag Mallick: This increase in participation points clearly to increased interest in the proteomic space overall. From our standing-room-only lunch and seminar to our many posters and significant traffic at our booth, HUPO provided an extraordinary opportunity to share with the community additional progress on the experimental implementation of PRISM, further detail on our multi-assinity probe pipeline, and on computational methods to estimate fault discovery rates. In addition to continuing to educate the community about how our platform works, our goal this year was to begin introducing experimental data from our pre-verification studies that demonstrate the key performance characteristics of the platform.

Brock: This measurement is not possible on both traditional and emerging peptide based platforms.

Brock: We showed the ability to also do measurements of Tau from complex samples such as enrich cell assays.

Brock: These results lay the foundation for future assays that enable more detailed investigation into molecular mechanisms of how opportunities like Alzheimer's disease, as well as potentially opening new frontiers for more specific diagnostics.

Brock: Beyond <unk>, we showed how the platform can be applied to measure Egfr protein forms. These.

Brock: These findings are the result of targeted pretty firm studies that we have been pursuing in partnership with Genentech and Amgen.

Brock: And the other not a lights and attendance since the significant shift in the depths of the questions. We received from attendees during the event clearly, indicating an increased understanding of an enthusiasm for the model this platform our.

Brock: Our booth was packed with researchers eager to understand at the platform might be well suited to addressing their specific research questions.

Brock: One of my most enjoyable conversations was with a researcher who presented work on a new Alzheimer's disease biomarker that he believes is the result of changes the abundance of a specific part of your form that is challenging to measure using traditional immunoassay.

Parag Mallick: This new data on both broad scale and proteoform analysis generated a great deal of interest and questions from attendees. Specifically, we shared data showing ultra-sensitive and repeatable single-molecule quantification of protein transference. One of the key differentiators of our platform is its incredible sensitivity, which is critical for finding diagnostic and prognostic biomarkers that can be indicative of diseases at their earliest and most treatable stage. We demonstrated lower limits of quantification in the high yocto to low zeptomole range.

Brock: It's exciting to see how the additional data we've shared from the Nautilus platform is encouraging researchers to expand their proteomics horizons.

Brock: With that I'll turn the call back to Suzhou.

Sujal M. Patel: Thanks for the update Brock I could not agree more with pronged takeaway from the event, having been there myself I heard so many things that can then be that momentum for the space and for Nautilus are building in lock step researcher.

Researchers are beginning to really focus on the role that next Gen technologies like Nautilus will play in creating advances and basic biological research, enabling them to make a substantial impact on the efficiency and cost effectiveness of biomarker discovery and drug development.

Our next significant opportunity to educate the community about the platform and our progression towards commercial availability will occur when nautilus participate at the top level sponsor of this year's Hoopoe World Congress October 'twenty through 'twenty four in Dresden, Germany.

Parag Mallick: This represents a more than five orders of magnitude better sensitivity than typical mass spectrometry. We also shared how, by exploiting the ability of our platform to iteratively probe individual molecules, we were able to quantify the abundances of 32 distinct tau proteoforms. This measurement is not possible on both traditional and emerging peptide-based platforms.

Sujal M. Patel: We look forward to that event as it aligns closely with the timing of when we anticipate having updates on both our scientific and business progress.

Sujal M. Patel: When it comes to educating the marketplace and bringing the community along on the Nautilus journey, you've heard Barack say many times, how committed we are to being as transparent and fulsome as we can in our communications to that end and as a means of sparking interesting conversations about proteomics and its future.

Sujal M. Patel: This quarter, we introduced the translating proteomics podcasts and video series.

Sujal M. Patel: Hosted by Parag and Dr. Andreas humor, a 20 year thermal electric and now our senior director of Scientific Affairs. The show is not a deep dive on the Nautilus platform rather it explores the scientific underpinnings of proteomics and challenges the audience to imagine what may be possible in the future where protein.

Parag Mallick: We showed the ability to also do measurements of tau from complex samples such as enriched cell life. These results lay the foundation for future assays that enable more detailed investigation into molecular mechanisms of tauopathies like Alzheimer's disease, as well as potentially opening new frontiers for more specific diagnostics. Beyond Tau, we showed how the platform can be applied to measure EGFR proteoforms. These findings are the result of the targeted proteoform studies that we have been pursuing in partnership with Genentech and Amgen.

Sujal M. Patel: MC data is more easily and cost effectively created.

Sujal M. Patel: We're heartened by the warm reception to the show's first few episodes and encourage anyone who wants a better and broader understanding of the space to subscribe and participate with suggestions for topics they'd like to see addressed.

For a look at our financials, let me now hand, the call over to Anna.

Sujal M. Patel: Anna.

Anna: Thanks, Joe.

Anna: Total operating expenses for the first quarter of 2024, or $21 6 million up $3 5 million compared to the first quarter of 2023 and $1 $6 million above last quarter. This 20% increase in operating expenses year over year was driven primarily by continued investment in personnel and their.

Parag Mallick: I and the other Nautilites in attendance sensed a significant shift in the depth of the questions we received from attendees during the event, clearly indicating an increased understanding of and enthusiasm for the Nautilus platform. Our booth was packed with researchers eager to understand that the platform might be well suited to addressing their specific research questions. One of my most enjoyable conversations was with a researcher who presented work on a new Alzheimer's disease biomarker that he believes is the result of changes to the abundance of a specific proteoform that is challenging to measure using traditional immunoassays.

Anna: <unk> towards the development of our platform.

Anna: Research and development expenses in the first quarter of 2024, or $12 9 million compared to $10 9 million in the prior year period.

Anna: General and administrative expenses were $8 7 million in the first quarter of 2024 compared to $7 2 million in the prior year period.

Anna: Overall net loss for the first quarter of 2024 was $18 7 million compared to $15 several million dollars in the prior year period.

Anna: Turning to the balance sheet, we ended the year with approximately $248 million in cash cash equivalents and investments compared to $264 million at the end of last quarter.

Anna: We continue to expect that our total operating expenses to grow by approximately 25% from 2023 level and growth has been to steadily increase as we prepare for our commercial launch we continue to anticipate our cash runway to extend into the second half of 2026.

Parag Mallick: It's exciting to see how the additional data we've shared from the Nautilus platform is encouraging researchers to expand their proteomics horizons. With that, I'll turn the call back to Parag. I could not agree more with Parag's takeaway from the event.

Anna: We remain focused on running a very capital efficient business with tight management of our expenses, while making the investments necessary to drive our scientific progress forward. Looking ahead. We are confident that we are strongly positioned to execute our strategy efficiently to launch our game changing proteome analysis platform.

Sujal M. Patel: Having been there myself, I heard so many things that convinced me that momentum for the space and for Nautilus are building in lockstep. Researchers are beginning to really focus on the role that next-gen technologies like Nautilus will play in creating advances in basic biology, enabling them to make a substantial impact on the efficiency and cost effectiveness of biomarker discovery. Our next significant opportunity to educate the community about the platform and our progression towards commercial availability will occur when Nautilus participates as a top-level sponsor of this year's Hoopoe World Congress.

With that I'll turn it back to Joe.

Thanks, Dana to wrap things up we continue to make solid progress against our development and business goals and for that I want to thank the entire networks team.

Joe: We're excited about what's to come and we look forward to providing additional updates on our next call with that I'm happy to open the call up for questions operator.

Joe: As a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one again please.

Joe: Please standby, while we compile the Q&A roster.

Joe: Our first question comes from <unk> <unk> with Morgan Stanley. Your line is open.

Joe: Hi, This is Madison on for you go in the morning.

Sujal M. Patel: October 20-24 in Dresden, PA. We look forward to that event as it aligns closely with the timing of when we anticipate having updates on both our scientific and business plans. When it comes to educating the marketplace and bringing the community along on the Nautilus, you've heard Parag say many times how committed we are to being as transparent and fulsome as we can in our community. To that end, and as a means of sparking interesting conversations about proteomics and its future, this quarter, we introduced the Translating Proteomics podcast and video. Hosted by Parag and Dr. Andreas Humer, a 20-year Thermo veteran and now our Senior Director of Scientific Affairs, the show is not a deep dive into the Nautilus platform.

Madison: Just maybe start off with sorry, if I missed this on the call, but just wanted to make sure.

Madison: So on the timeline you guys are still targeting 2025 expected launch.

Madison: Correct and then just any update updated thoughts on further.

Speaker Change: The timeline beyond 2025, and if theres like particular milestones that you think you need to achieve before we have any clarity on specific launch timing.

Speaker Change: And if there's any steps youre taking can carry.

Speaker Change: No more slippage.

Beyond 125.

Speaker Change: Yeah. So.

Speaker Change: The last time, we gave.

Speaker Change: Guidance was with on a previous call, which was our fiscal year 2023 call. We didn't make any updates at this type of things continue to progress on the timeline that we outlined earlier, we don't have any.

Anna Mowry: Rather, it explores the scientific underpinnings of proteomics and challenges the audience to imagine what may be possible in the future where proteomic data is more easily and cost-effective. We're heartened by the warm reception to the show's first few episodes and encourage anyone who wants a better and broader understanding of proteomics to subscribe and participate with suggestions for topics they'd like to see. For a look at our financials, let me now hand the call over to Anna. Okay?

Speaker Change: Greater specificity at this point, but one of the things.

Speaker Change: As I said, the Q&A and last call, which is still true is that as we get.

Speaker Change: As we get to the point, where we're able to measure a significant number of our teams whether it be 1000 or $2000.

Speaker Change: Or something in that range.

Speaker Change: From satellites, eight and do that in a reliable and reproducible way that'll be a key.

Speaker Change: Line for Us, where we will be able to likely project, a little bit with a little bit more specificity, what the remaining timeline looks like as well as it will be a good opportunity for us to walk through with the scientific community our potential customers in the street fee.

Final or near final specifications of the product and pricing.

Speaker Change: So stay tuned.

Speaker Change: Okay, that's good to hear.

Speaker Change: Sure.

Speaker Change: And then maybe turning to yes data.

Speaker Change: I know you've shared data that demonstrate the platform's ability to quantify mixtures.

Anna Mowry: Thanks, Sujal. Total operating expenses for the first quarter of 2024 were $21.6 million, up $3.5 million compared to the first quarter of 2023 and $1.6 million above the previous quarter. This 20% increase in operating expenses year over year was driven primarily by continued investment in personnel and their activities towards the development of our platform. Research and development expenses in the first quarter of 2024 were 12.9 million dollars compared to 10.9 million dollars in the prior year period.

Speaker Change: Proteoform. So you guys are talking about them.

Speaker Change: So stepping back I was just wondering why I shouldn't like biological questions and use cases, they can be answered.

Speaker Change: With disability I think you mentioned Alzheimer's on the call.

Speaker Change: And for context could you share how you go about power tracking Proteoform next year on the math back for example.

Sure I'll take that this is parag.

When we think about pretty farms generally we think about them as providing additional detail and specificity about the function of proteins such as Tau.

So for instance, the first level of regulation is just by whether towers present or absent the second being how much is present and then the third level of detail that we're really getting to you for the first time.

Anna Mowry: General and administrative expenses were $8.7 million in the first quarter of 2024, compared to $7.2 million in the prior year period. Overall net loss for the first quarter of 2024 was $18.7 million, compared to $15.0 million in the prior year.

Speaker Change: Is studying how Tao, it's modified and what the prevalence of the different model modified pretty farms are that may have for instance, three different phosphorylation sites that have been populated and an additional splice variant.

Speaker Change: The way that you would use this data is.

Speaker Change: Is really in two places the first is understanding the biology of the disease.

Anna Mowry: Turning to the balance sheet, we ended the year with approximately $248 million in cash, cash equivalents, and investments, compared to $264 million at the end of last quarter. We continue to expect our total operating expenses to grow by approximately 25% from 2023 levels and growth in spend to steadily increase as we prepare for our commercial launch. We continue to anticipate our cash runway to extend into the second half. We remain focused on running a very capital efficient business with tight management of our expenses while making the investments necessary to drive our scientific progress. Looking ahead, we are confident that we are strongly positioned to execute our strategy efficiently to launch our game-changing proteome analysis platform. With that, I'll turn it back to Sujal.

Speaker Change: Right now because this hasnt been.

Speaker Change: Our measure of all before.

Speaker Change: We really don't understand how these protean farms contribute to driving either the initial onset of diseases like Alzheimer's or their progression, but it's hypothesized that different people may have different distributions of these variants that may drive their disease to progress more quickly or more.

Speaker Change: Slowly. Additionally.

Speaker Change: Additionally, they may be used in the periphery as biomarkers to delineate where where the disease course is.

Speaker Change: To determine whether or not particular therapeutics might be effective.

Speaker Change: And so there is a tremendous amount of excitement about being able to provide that level of detail.

Speaker Change: Into the into the disease and its mechanisms and progression.

Speaker Change: Being a mass spectrometer.

Speaker Change: The traditional method of mass spectrometry, shotgun, proteomics, or which looks at peptides is unable to measure protein forms at all.

Sujal M. Patel: Thanks, Anna. To wrap things up, we continue to make solid progress on our development and business goals. And for that, I want to thank the entire Nautilus team. We're excited about what's to come, and we look forward to providing additional updates on our next. With that, I'm happy to open the call up for questions, Operator. As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 1 again.

Speaker Change: Another method, which has been pioneered by our collaborator Neil Kelleher is.

Speaker Change: Called top down mass spectrometry and that method as is.

Speaker Change: Able to generally identify the masses of different pretty forms and from those masses infer what pretty farms might be present. However.

Speaker Change: Our method is extremely direct as well as single molecule instead of looking at large ensembles molecules.

Speaker Change: Got it that's really helpful. Thanks.

Speaker Change: Thanks.

Speaker Change: Thank you one moment for our next question.

Speaker Change: Yeah.

Speaker Change: Our next question comes from Matt <unk> with Goldman Sachs. Your line is now open.

Operator: Please stand by while we compile the Q&A roster. Our first question comes from Yuko Oku with Morgan Stanley. Your line is open. Hi, this is Madison on behalf of Yuko.

Speaker Change: Hi, This is <unk> on for Matt Thanks for taking my questions.

So I know in the past you've mentioned the antibodies as being one of the final pieces needed to address before the launch can you give an update on how you're working through that and then any other areas of improvement thus far in the launch.

Madison: Good morning. Just want to maybe start off with, sorry if I missed this on the call, but just wanted to make sure that on the timeline, you guys are still targeting a 2025 launch, correct? And then just any updates, updated thoughts on further refined timelines beyond 2025, and if there's any particular milestones that you think you need to achieve before we have any clarity on specific launch timing. And if there's any steps you're taking to ensure, no, I mean, no more slippages beyond 2025.

Speaker Change: Are you going to tackle this one first and I'll add any color at the end.

Speaker Change: Sure.

Speaker Change: So as we've talked about in the past. Thank you for the question.

Speaker Change: Really there are a couple of carriers that we've been focused on the first is scale.

Speaker Change: And that applies to the reagents aspects of the consumables the chips and flow cells.

Speaker Change: Well as the instruments themselves.

Speaker Change: <unk> scale has two different pieces the first.

Speaker Change: The first is just are we able to manufacture and sufficient amounts of these consumables with sufficient quality and.

Speaker Change: To build a reproducible assay.

Sujal M. Patel: Yeah, so the last time we gave timeline guidance was on our previous call, which was our fiscal year 2023 call. We didn't make any updates at that time. Things continue to progress on the timeline that we outlined earlier. We don't have any greater specificity at this point. So, 1 of the things I think I said in Q and A and on the last call, which is still true, is that as we get to the point where we're able to measure a significant number of proteins, whether it be a 1000.

Speaker Change: The second aspect of scale.

Speaker Change: Has to do with the ability to execute successfully on large cycle experiments.

Speaker Change: Dozens hundreds of cycles.

Speaker Change: <unk>.

Speaker Change: And we've demonstrated it hoopoe data.

Speaker Change: Showing that the protein stay mobilized on the chip over 100 cycles that CE.

Speaker Change: We don't see.

Speaker Change: Gradation in substantial degradation in.

Speaker Change: In binding rates that might indicate damaged the proteins. We additionally demonstrated we don't see significant buildup on the surface of the chips. So those are the two key aspects of scale that we're continuing to be focused on.

Sujal M. Patel: Unknown Executive, Yuko Oku, Carrie Mendivil, Anna Mowry, Parag Mallick, Nautilus Biotech, the final or near final specifications of the product. Okay, that's good to hear. And then maybe just turn to YesHubo data. I know you've shared data that demonstrates the platform's ability to quantify mixtures of tau proteoforms that you guys were talking about. So stepping back, I was just wondering what are some like biological questions or use cases that could be answered with a disability.

Speaker Change: As well as robustness.

Speaker Change: Long side those development efforts, our traditional things like guard banding to understand what the specifications needs to be of each of the components of the system.

Speaker Change: When we talk about the regions themselves and the affinity reagents, what we're focused on there is really about the characterization of the affinity reagents to understand very specifically for.

Speaker Change: For each affinity region, what does it bind to how well does it bind.

Parag Mallick: I think you mentioned Alzheimer's on the call and, for context, could you share how you would go about characterizing proteoform mixtures on a mass spec, for example? Sure, I'll take that. This is Parag. When we think about proteoforms generally, we think about them as providing additional detail and specificity about the function of a protein such as tau. So, for instance, the first level of regulation is just whether tau is present or absent, the second being how much is present, and then the third level of detail that we're really getting to for the first time is studying how tau is modified and what the prevalence of the different modified proteoforms are that may have, for instance, three different phosphorylation sites that have been populated and an additional splice variant.

Speaker Change: What are its other biophysical characteristics is it a little sticky is it easy to produce so there are a number of aspects to the affinity reagents.

Speaker Change: That.

Speaker Change: That really get to understanding.

Speaker Change: The individual behavior of each reagent at a level of detail that is not typical for for for a standard affinity region workflows.

Speaker Change: Okay, Great that was Super helpful. And then how are you showing up their supply chain ahead of the launch sort of on the back of that question.

Speaker Change: And also balancing your cash runway through the second half of 2026.

Speaker Change: Yes, that's a good question, maybe I'll take that one this is <unk> from a supply chain perspective, we continue to on the.

Speaker Change: Let's start on the electronic side and electronic side, we continue to.

Speaker Change: Purchase ahead and manage inventory of some of the longer lead time parts in our in our instrument.

Parag Mallick: The way that you would use this data is really in two places. The first is understanding the biology of the disease; right now, because this hasn't been measurable before, we really don't understand how these proteoforms contribute to driving either the initial onset of diseases like Alzheimer's or their progression. But it's hypothesized that different people may have different distributions of these variants that may drive their disease to progress more quickly or more slowly.

Speaker Change: We continue to ramp up from our contract manufacturing perspective, our capabilities to build instrument outside of non west wall.

Speaker Change: And <unk>.

Speaker Change: Continue to build instruments, which were using internally for testing for.

Speaker Change: Verification validation studies and.

Speaker Change: We're working with our collaborators so that work that work continues and we don't foresee any.

Speaker Change: Particular issues on that side in terms of on the on the chips and the consumable side.

Speaker Change: Our gypsum flow cell, we continue to.

Parag Mallick: Additionally, they may be used in the periphery as biomarkers to delineate where the disease course is to determine whether or not particular therapeutics might be effective. And so there's a tremendous amount of excitement about being able to provide that level of detail into the disease and its mechanisms and progression. Using a mass spectrometer, the traditional method of mass spectrometry, shotgun proteomics, which looks at peptides, is unable to measure proteoforms at all.

Speaker Change: Mature our supply chain increase the capacity of that supply chain tightened the tolerance for error in our production.

Speaker Change: And we've made a number of small tweaks to the flow cell design in Q1 that are being implemented here through Q1 and into Q2 here.

Speaker Change: Right and that improving quality.

Speaker Change: Reagent side remember that.

Speaker Change: Our reagents are kind of consist of two categories of things one is bulk.

Speaker Change: Bulk buffers and those sorts of things and that stuff is pretty simple.

Speaker Change: We for the most part manufacturer that stuff.

Speaker Change: With partners outside of our walls for the antibody side and the probe side.

Operator: Another method, which has been pioneered by our collaborator Neil Kelleher, is called top-down mass spectrometry, and that method is able to generally identify the masses of different proteoforms and from those masses infer what proteoforms might be present. However, our method is extremely direct as well as single molecule instead of looking at large ensembles of molecules.

Speaker Change: Probe is basically antibody plus our proprietary label we have.

We've been building us 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 material as well so I don't I don't see any issues there.

Speaker Change: Getting to scale up here in the latter part of this year and next year.

Speaker Change: Okay, great. Thanks, so much.

Evian: That's really helpful. Thanks. Thank you. One moment for our next question. Our next question comes from Matt Sykes with Goldman Sachs. Your line is now open.

Speaker Change: Thank you.

Speaker Change: One moment for our next question.

And our next question.

Speaker Change: Comes from Matt <unk> with Jefferies. Your line is open.

Matt: Okay. Thanks.

Parag Mallick: Hi, this is Evian for Matt. Thanks for taking my questions. So I know in the past, you've mentioned antibodies as being one of the final pieces needed to address before the launch. Can you give an update on how you're working through that and then any other areas of improvement before the launch? And I'll add some color at the end.

Matt: You guys discussed in the prepared remarks, but it sounds like the experimental runs continue to make good progress. If you go back to last quarter I think you talked about order of magnitude improvement.

Matt: Three times better sequentially in <unk> as well just given how important this is for for scaling the platform I guess, how much more of an improvement.

Matt: Do you need or should we expect to see or are you getting closer to kind of where these models and systems need to be.

Parag Mallick: So as we've talked about in the past, thank you for the question. Really, there are a couple of challenges that we've been focused on. The first is scale. And that applies to the reagent aspect of the consumables, the chips and flow cells, as well as the instruments themselves. And scale has two different pieces.

Speaker Change: Yeah, I'll take that one as a starting point.

Speaker Change: When we think about our launch targets.

Speaker Change: We typically have expected to want to be able to execute on hundreds of.

Speaker Change: On measurements using hundreds of probes.

Speaker Change: Expect it to be in two colors, so somewhere in the 150 to 200 cycles are what we're targeting for having before for our launch targets.

Sujal M. Patel: The first and the most important is, is it possible to manufacture sufficient amounts of these consumables with sufficient quality to build a reproducible asset? The second aspect of scale has to do with the ability to execute successfully on large cycle experiments, dozens, hundreds of cycles, and we've demonstrated at HUPO data showing that the proteins stay immobilized on the chip over 100 cycles, and we don't see any degradation in, substantial degradation in binding rates that might indicate damage to the proteins.

Speaker Change: And so accordingly.

Speaker Change: You should.

Speaker Change: <unk> see us advancing towards that improving towards that.

Speaker Change: Further increasing the reproducibility and stability across hundreds of cycles.

Speaker Change: As is where we're aiming to be in terms of reliability and reproducibility. Some of the other areas that we're continuing to push on our.

Speaker Change: And to end assay reproducibility as well rather than components reproducibility for example in the.

Sujal M. Patel: We additionally demonstrated that we don't see significant buildup on the surface of the chip. So those are two key aspects of scale that we're continuing to be focused on, as well as robustness. Alongside those development efforts are traditional things like guard banding to understand what the specifications need to be of each of the components in the system. When we talk about the reagents themselves and the affinity reagents, what we're focused on there is really the characterization of the affinity reagents to understand very specifically for each affinity reagent what it binds to and how well it binds. What are its other biophysical characteristics? Is it a little sticky?

Speaker Change: Limit of detection studies that we presented at <unk>.

Speaker Change: One of the things that we did with repeat those measurements several times across different instruments across different operators across different days.

Speaker Change: And so those are the kinds of things that we're going to continue pushing towards as we move towards releasing in alright.

Speaker Change: Our instrument.

Speaker Change: And platform.

Speaker Change: Thanks, and then maybe one for Suzhou it sounds like a lot of.

Speaker Change: Positive momentum coming out of Hooper would love to just hear a little more on some of the learnings from the recent event here in the U S. And then you know what.

Sujal M. Patel: What youll 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 scientific and investment community. So just would love your thoughts on kind of building on the recent momentum.

Sujal M. Patel: Is it easy to produce? So there are a number of aspects to the affinity reagents that really get to understanding the individual behavior of each reagent at a level of detail that is not typical for for standard affinity reagent workflows. Okay, great. That was super helpful. And then how are you shoring up your supply chain ahead of the launch, sort of on the back of that question, and also balancing your cash runway through the second half of 2026? Yeah, that's a good question, Evie, and I'll take that one. This is Sujal.

Speaker Change: Capitalizing on the next event here in October thanks.

Speaker Change: Yes, why don't I start and then I'll, let Brock maybe delve in a little bit more detail I think that.

Brock: The U S. Hooper event was one where I think that we continue.

Brock: To see a lot of momentum both for the proteomics space, but for <unk>, specifically as well I was down there importantly, Ams and had the opportunity to walk around and see all of the posters and the boots.

Brock: I have a number of conversations with many of the Kols and.

Brock: And scientists in the proteomics space and there certainly was a lot of excitement around the data that we're showing and the Nautilus method.

Sujal M. Patel: You know, from a supply chain perspective, we continue to on the electronic side. On the electronic side, we continue to purchase ahead and manage inventory of some of the longer lead time parts in our instrument. We continue to ramp up from a contract manufacturer. On the chips and consumable side, for chips and flow cells, we continue to mature our supply chain, increase the capacity of that supply chain, and tighten the tolerances for error in our production.

Brock: Our booth traffic was excellent we have la.

Brock: Lot of people, who are well known proteomics scientists not just stopping by stopping by and spending extended amount of time talking to our.

Brock: <unk> staff, having a conversation with barack or myself or with Nick Nelson, Our chief business officer, and really engaging in any way that I think.

Brock: Was gratifying 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.

Nick Nelson: Great one of the other highlights I was down there doing.

Brock: One of Prague's talks bronchi multiple talks at the <unk> conference and once it starts was really one that is an updated version of the talk that he's given before which really describes the.

Sujal M. Patel: And we made a number of small tweaks to the flow cell design in Q1 that are being implemented here, you know, through Q1 and into Q2 here that are improving quality. On the reagent side, remember that our reagents consist of two categories of things. One is bulk buffers and those sorts of things, and that stuff is pretty simple.

Brock: The Genesis of the Nautilus scientific method, our technology have the assay works and what our end goals are as well as updated data and parag session was absolutely packed we were turning down our competitors at the door. We're trying to get at every seat with full with potential customers and scientists looking to learn more.

Speaker Change: Sure. 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.

Sujal M. Patel: We, for the most part, manufacture that stuff with partners outside of our walls. For the antibody side and the probe side, you know, the probe is basically an antibody plus our proprietary label. We have a, 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. Parts that go into those externally, and we're managing the supply of input material as well. So I don't I don't see any issues there.

Speaker Change: A really successful show and just.

Speaker Change: The second half of your question head on and then I'll, let <unk> add any detail if he wants to add but.

Speaker Change: Certainly.

Speaker Change: <unk> coming up we are 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.

Speaker Change: We're not committed to exactly that on the call to exactly what we have as we headed to royalty procure but we're hopeful that we can we can start showing.

Speaker Change: Much more data than just being able to detail transplant for example, which is what we showed at usu about it. So we're working hard our heads are down and the entire team is focused on that.

Sujal M. Patel: Okay, great. Thanks so much. Thank you. One moment for our next question. And our next question comes from Matt Stanton with Jefferies. Your line is open.

Speaker Change: Probably anything to add there in terms of some detail and you.

Speaker Change: <unk>.

Speaker Change: Yes, I think one of the.

Speaker Change: One of the largest as CJ mentioned one of the largest changes that we saw was a transition.

Matthew Carlisle Sykes: Hey, thanks. You guys discussed it in prior remarks, but it sounds like the experimental runs continue to make good progress. If we go back to last quarter, I think you talked about an order of magnitude improvement, you know, 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?

Speaker Change: And keeping the leaders and other scientists asking to understand how the platform works towards a transition towards could I use it for my specific application.

Speaker Change: And those applications were incredibly wide ranging they ranged from.

Speaker Change: Very detailed mechanistic studies or biological time courses, our biomarker studies.

Speaker Change: Got it.

Speaker Change: It <unk>.

Speaker Change: Spanned a wide range of substrates from CLSA, its two blood to CSS and.

Speaker Change: Seeing researchers get into that level of detail.

Matthew Carlisle Sykes: Are you getting closer to kind of where these models and systems need to be? Thanks. Yeah, I'll take that one as a starting point. When we think about our launch targets, we typically have expected to want to execute on hundreds of measurements using hundreds of probes expected to be in two colors.

Speaker Change: <unk> really thinking through how our platform might apply to the research questions that they're asking showed.

Speaker Change: Should that they've gotten beyond understanding the way that it works and we're really excited about how it might expand their proteomics horizons.

Speaker Change: Super Thank you.

Speaker Change: Thank you.

Parag Mallick: So somewhere in the 150 to 200 cycles is 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, and further increasing the reproducibility and stability across hundreds of cycles, as well as where we're aiming to be in terms of reliability and reproducibility.

Speaker Change: As a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced again that is star one to ask a question.

Speaker Change: I'm showing no further questions at this time. This concludes today's conference call. Thank.

Speaker Change: Thank you for participating you may now disconnect.

Speaker Change: Okay.

Speaker Change: [music].

Parag Mallick: Some of the other areas that we're continuing to push on our end-to-end assay reproducibility as well, rather than components. For example, in the limit of detection studies that we presented at USHPO, 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 our, our, our instrument and platform. Thanks. And then maybe one for Sujal.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: [music].

Speaker Change: Sure.

Speaker Change: [music].

Sujal M. Patel: Sounds like a lot of positive momentum coming out of HOOPA. I would love to hear a little more on some of the learnings from the recent event here in the U.S. and then, you know, 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 for the scientific and investment communities. So just would love your thoughts on kind of building on the recent momentum and capitalizing on the next event here in October. Thanks.

Speaker Change: Sure.

Speaker Change: Yes.

Speaker Change: [music].

Speaker Change: Hum.

Speaker Change: [music].

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: Okay.

Sujal M. Patel: Why don't I start that, and then I'll let Parag maybe delve in a little bit more detail. You know, the U.S. Hoopoe 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.

Speaker Change: [music].

Speaker Change: Okay.

Speaker Change: [music].

Sujal M. Patel: You know, I had a number of conversations with many of the KOLs and scientists in the proteomic space, and there certainly was a lot of excitement around the data that we were showing and the Nautilus method. Our booth traffic was excellent. We had a lot of people who are well-known proteomic scientists not just stopping by, but 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 gratifying to see, but also, I would say is a little bit different and improved from what we've seen in years So I think that was great.

Sujal M. Patel: One of the other highlights, I was down there during one of Parag's talks. Parag had multiple talks at the U.S. HIPPO conference, and one of his talks was really one that was an updated version of the talk that he'd 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 Parag's session was absolutely packed. We were turning down our competitors at the door who were trying to get in. Every seat was full of potential customers and scientists looking to learn more. The aisles were full of people.

Sujal M. Patel: Really great to see, and lots of good questions were asked there. So from that regard, I think it was a really successful show. And, you know, just to address the second half of your question head-on, and then I'll let Parag add any detail if he wants. You know, certainly, for WorldHippo coming up, we're working very hard to take the data that we have now and take it one step closer to having a product that's out the door, right?

Speaker Change: [music].

Sujal M. Patel: And we're not committed to exactly what we have as we headed to WorldHippo here, but we're, we're hopeful that we can start showing much more data than just being able to decode transparency, for example.

Parag Mallick: And so we're working hard, our heads are down, and the entire team's focused on, anything to add there in terms of some detail? And yeah, I think one of the biggest changes that we saw was a transition among Kepinian leaders and other scientists asking to understand how the platform works towards a transition towards, could I use it for my specific application? And those applications were incredibly wide-ranging. They ranged from very detailed mechanistic studies or biological time courses or biomarker studies, but they covered a wide range of substrates from cell lysates to blood to CSF.

Sujal M. Patel: Thank you. Thank you. As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced. Again, that is star 11 to ask a question.

Operator: Showing no further questions at this time, this concludes today's conference. Thank you for participating. You may now disconnect.

Operator: David Delahunt, Sujal Patel, Anna Mowry, Parag Mallick, Nautilus Biotech, Elizabeth Koslosky, David Delahunt, Sujal Patel, Anna Mowry, Parag Mallick, Nautilus Biotech, Nautilus Biotech, Thank you for watching! ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? Lt. Col. David Brennan, Tejas Savant, Matthew Sykes, David Delahunt, Sujal Patel, Elizabeth Koslosky, Anna Mowry, Parag Mallick, Nautilus Biotech, Nautilus Biotech, ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? [inaudible] www.mehr-als-rohkost.de My name is Susan C. Brennan.

Operator: www.mehr-als-rohkost.de My name is Susan C. Brennan. www.mehr-als-rohkost.de My name is Susan C. Brennan. www.mehr-als-rohkost.de My name is Susan C. Brennan. www.mehr-als-rohkost.de www.mehr-als-rohkost.de My name is Susan C. Brennan. www.mehr-als-rohkost.de My name is Susan C. Brennan. www.mehr-als-rohkost.de, Good day, and thank you for standing by.

Jian Ye: Welcome to the Nautilus Biotechnology Q1 2024 Earnings Conference. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is, For all your questions, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today. Jian Ye, Investor Relations. Please go ahead.

Jian Ye: Thank you. Earlier today, Nautilus released financial results for the quarter ended March 31, 2024. If you haven't received this news release or if you'd like to be added to the company's distribution list, please send an email to InvestorRelations at Nautilus.bio. Joining me today from Nautilus are Sujal Patel, co-founder and CEO, Parag Mallick, co-founder and chief scientist, and Anna Mowry, chief financial officer. Before we begin, I'd like to remind you that management will make statements during this call that are forward-looking within the meaning of the federal security law. These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated.

Speaker Change: [music].

Jian Ye: Additional information regarding these risks and uncertainties appears in the section entitled Forward-Looking Statements in the Press Release Nautilus issued today. Except as required by law, Nautilus disclaims any intention or obligation to update or revise any financial or product pipeline projections or other forward-looking statements, whether because of new information, future events, or otherwise. This conference call contains time-sensitive information and is accurate only as of the live broadcast, April 30, 2024. With that, I'll turn the call over to Sujal.

Sujal M. Patel: Thanks, Jian, and welcome to everyone joining our Q1 2024 earnings call. Q1 was a highly productive quarter for Nautilus as we continue to execute on our vision to establish a new gold standard for the creation and comprehensive analysis of high-value proteomics. However, in order to deliver a range of long-discussed and long-desired improvements in human health, biomedical research needs a dramatic acceleration in target identification and therapeutic development.

Sujal M. Patel: As they have for many years, researchers remain impeded by the lack of sensitivity, scale, and reproducibility of traditional protein analysis methods and of emerging affinity-based and peptide methods. We believe a fundamentally new approach is required to overcome these limitations and to unlock the potential value of the proteome, something we continue to view as one of the most significant untapped opportunities in biological medicine. We, and the Proteomics KOLs with whom we regularly speak, understand how important intact single-molecule protein analysis is, and the Nautilus platform could be to their explorations of the.

Sujal M. Patel: The positive attention our platform continues to receive from them is a good sign for things to come with this critically important and influential group. As you'll hear from Parag in a few moments, those KOLs are encouraged by the data we shared at the recent U.S. HUPO, and several of them have begun imagining specific initiatives against which they plan to apply our platform as part of our early action. As we previously shared, EAP will launch in the months leading up to commercial availability in 2025.

Sujal M. Patel: Never intended to be a significant revenue driver, the program will serve as a high-value means by which to generate data to support both internally and externally generated scientific papers, customer grant proposals, and will get meaningful data into the hands of potential customers. We will keep you informed as we get closer to launching the platform. I remain pleased with the progress that has been made in development activities surrounding each of the core components of the platform, including the core reagents, sample For more on those and other R&D related updates, let me now turn the call over to Parag. Parag?

Speaker Change: [music].

Speaker Change: Good day, and thank you for standing by and welcome to the Nautilus Biotechnology Q1, 'twenty 'twenty four earnings conference call.

Parag Mallick: Thanks, Sujal. Overall, we continued to make solid progress against our core development goals in Q1. We remain incredibly focused on increasing scale, stability, and reproducibility across our consumables, assay, and platform, and continue to see meaningful gains along those dimensions. This progress goes hand-in-hand with advancing the reliability, quality, and customer readiness of our instrument and software. Platform stability enhancements, increased consumable scale and quality, and increased instrument availability and capacity have allowed for a significant increase in the number of high-cycle number protein decoding experiments that we can initiate and complete successfully.

Speaker Change: At this time all participants are in a listen only mode.

Speaker Change: After the speaker's presentation, there will be a question and answer session.

Speaker Change: To ask a question during the session you will need to press star one on your telephone.

Speaker Change: You will then hear an automated message advising your hands raised.

Speaker Change: Your question. Please press star one again.

Speaker Change: Please be advised that today's conference is being recorded.

Speaker Change: I would now like to hand, the conference over to your speaker today.

Speaker Change: G O N E.

Investor Relations: E Investor Relations. Please go ahead.

Investor Relations: Thank you.

Investor Relations: Earlier today Nautilus released financial results for the quarter ended March 31 2024.

Investor Relations: If you haven't received this news release or if you'd like to be added to the Companys distribution list. Please send an email to investor relation with that and all the stockpile.

Parag Mallick: In fact, we completed nearly three times the number of experimental runs in Q1 as we did in Q4 of last year. This increase in experimental scale is essential as we continue to optimize all aspects of our platform towards launch targets. The increases in experimental scale and assay robustness have enabled us to increase the complexity of the model systems that we are using for ecosystem-wide optimization.

Investor Relations: Joining me today from Nautilus are Suzhou Patel co founder and CEO per.

Investor Relations: <unk> Malik co founder and Chief scientist and Annemarie Chief Financial Officer.

Investor Relations: Before we begin I'd like to remind you that management will make statements. During this call that are forward looking within the meaning of the federal securities laws.

Investor Relations: These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated.

Investor Relations: Additional information regarding these risks and uncertainties appears in the section entitled forward looking statements in the press release Nautilus issued today.

Investor Relations: Except as required by law Nautilus disclaims any intention or obligation to update or revise any financial or product pipeline projections were out of their forward looking statements, whether because of new information future events or otherwise.

Investor Relations: This conference call contains time sensitive information and is accurate only as of the live broadcast April 32024.

Investor Relations: With that I'll turn the call over to Suzhou.

Sujal M. Patel: Thanks, John and welcome to everyone. Joining our Q1 2024 earnings call Q1 was a highly productive quarter for Nautilus as we continue to execute on our vision to establish a new gold standard for the creation and comprehensive analysis of high value proteomics data.

Parag Mallick: This increase in participation points clearly to increased interest in the proteomic space overall. From our standing room only lunch and seminar, to our many posters, and significant traffic at our booth, HUPO provided an extraordinary opportunity to share with the community additional progress on the experimental implementation of PRISM, further detail on our multi-affinity probe pipeline, and on computational methods to estimate fault discovery rates. In addition to continuing to educate the community about how our platform works, our goal this year was to begin introducing experimental data from our pre-verification studies that demonstrate the key performance characteristics of the platform.

Sujal M. Patel: In order to deliver a range of long discussed and long desired improvements in human health Biomedical research needs, a dramatic acceleration and target identification and therapeutic development.

Sujal M. Patel: But I.

Sujal M. Patel: As they have for many years researchers remain impeded by the lack of sensitivity scale and reproducibility of traditional protein analysis methods and emerging affinity based and peptide sequencing methods.

Sujal M. Patel: We believe a fundamentally new approach is required to overcome these limitations and unlock the potential value of the proteome something we continue to view as one of the most significant untapped opportunities in biological sciences today.

Sujal M. Patel: We and the proteomics kols with whom we regularly speak understand how important intact single molecule protein analysis, and the novelist platform could be to their exploration through the proteome.

Sujal M. Patel: They know that deeper richer proteomics data could one day make it possible for researchers to more quickly identify the mechanisms of action of diseases ranging from cancer to Alzheimers.

Sujal M. Patel: Understanding those mechanisms will be key to identifying effective treatment.

Sujal M. Patel: Interestingly many of these kols maintain a heavy focus on the use of mass spectrometry for proteomics.

Sujal M. Patel: Positive attention our platform continues to receive from them is a good sign for things to come with this critically important and influential buying audience.

Sujal M. Patel: As you'll hear from parag in a few moments those kols are encouraged by the data we shared at the recent U S. Hoopoe conference and several of them have begun imagining specific initiatives against which they plan to apply our platform as part of our early access program.

Sujal M. Patel: As we've previously shared the EAP will launch in the months, leading up to commercial availability in 2025 never intended to be a significant revenue driver. The program will serve as a high value means by which to generate data to support both internally and externally generated scientific papers customer grant proposals.

Sujal M. Patel: And we will get meaningful data into the hands of potential future customers.

Sujal M. Patel: We will keep you informed as we get closer to launching the EAP.

Sujal M. Patel: Okay.

Sujal M. Patel: I remain pleased with the progress that has been made in development activities surrounding each of the core components of the platform, including the core reagents sample prep <unk> probes chips flow cells, the instrument and software.

Sujal M. Patel: For more on those in other R&D related updates, let me now turn the call over to Barak Barak.

Barak: Thanks, Sudan overall, we continued to make solid progress against our core development goals in Q1.

Barak Barak: We remain incredibly focused on increasing scale stability and reproducibility across our consumables assay and platform.

Barak Barak: And continue to see meaningful gains along those dimensions.

Barak Barak: This progress goes hand in hand, with advancing the reliability quality and customer readiness of our instrument and software.

Barak Barak: Platform stability enhancements increased consumable scale and quality and increased instrument availability and capacity have allowed for a significant increase in the number of high cycle number protein, indicating experiments that we can initiate and complete successfully and <unk>.

Barak Barak: Fact, we completed nearly three times the number of experimental runs in Q1 as we did in Q4 of last year.

Barak Barak: This increase in experimental scale is essential as we continue to optimize all aspects of our platform towards launch targets.

Barak Barak: The increases in experimental scale and assay robustness have enabled us to increase the complexity of the model system that we're using for ecosystem wide optimization.

Barak Barak: We're excited to be continually increasing the complexity of these model systems to include an increased diversity of proteins across a wider range of concentration.

Barak Barak: We are also excited about an increase in focus on activities critical to our commercial launch such as pre verification studies, a key platform characteristics, such as reproducibility and sensitivity.

Barak Barak: Yeah.

Barak Barak: From the standpoint of sharing the foundational elements of our platform with the broader proteomics community. The highlight of Q1 was our participation in the annual conference for the U S Human Proteome organization.

Barak Barak: Super.

Barak Barak: U S. Hugo attracts many of the types of researchers in organizations that could be potential users of our platform. It was exciting to see that this year's conference attracted approximately 600 attendees more than doubling the attendance of just two years ago.

Barak Barak: This increase in participation points clearly to increased interest in the proteomics space overall.

Barak Barak: From a standing room, only luncheon seminar term any posters and significant traffic at our booth hoopoe provided an extraordinary opportunity to share with the community additional progress on the experimental implementation of prism.

Barak Barak: Further detail on our multi F&B probe pipeline and on computational methods to estimate vault discovery right.

Sujal M. Patel: October 20-24 in Dred. We look forward to that event as it aligns closely with the timing of when we anticipate having updates on both our scientific and business research. When it comes to educating the marketplace and bringing the community along on the Nautilus, you've heard Parag say many times how committed we are to being as transparent and fullsome as we can in our community, to that end, and as a means of sparking interesting conversations about proteomics and its future.

Barak Barak: In addition to continuing to educate the community about how our platform works. Our goal. This year was to begin introducing experimental data from our pre verification studies that demonstrate the key performance characteristics of the platform.

Barak Barak: This new data on both broad scale and Proteoform analysis generated a great deal of interest and questions from attendees.

Barak Barak: Specifically, we shared data showing ultra sensitive and repeatable single molecule quantification of the protein transparent.

Sujal M. Patel: This quarter, we introduce the Translating Proteomics podcast and videos. Hosted by Parag and Dr. Andreas Humer, a 20-year Thermo veteran and now our Senior Director of Scientific Affairs, the show is not a deep dive into the Nautilus platform.

Barak Barak: One of the key Differentiators of our platform is its incredible sensitivity.

Barak Barak: This is critical for finding diagnostic and prognostic biomarkers that can be indicative of diseases at the earliest and most treatable stages.

Sujal M. Patel: Rather, it explores the scientific underpinnings of proteomics and challenges the audience to imagine what may be possible in the future where proteomic data is more easily and cost-effectively used. We're heartened by the warm reception to the show's first few episodes and encourage anyone who wants a better and broader understanding of the to subscribe, and participate with suggestions for topics they'd like to see. For a look at our financials, let me now hand the call over to Anna. Okay?

Barak Barak: We demonstrated lower limits of quantification in the high <unk> to low as the optimal range.

Barak Barak: This represents a more than five order of magnitude better sensitivity and typical mass spectrum metric methods.

Barak Barak: We also shared how by exploiting the ability of our platform to iteratively probe individual molecules, we were able to quantify the abundances of 32 distinct Tau protein forms. This measurement is not possible on both traditional and emerging peptide based platforms.

Barak Barak: We showed the ability to also do measurements of tile from complex samples such as enriched <unk>.

Anna Mowry: Thanks, Sujal. Total operating expenses for the first quarter of 2024 were $21.6 million, up $3.5 million compared to the first quarter of 2023 and $1.6 million above the previous quarter. This 20% increase in operating expenses year over year was driven primarily by continued investment in personnel and their activities towards the development of our platform. Research and development expenses in the first quarter of 2024 were $12.9 million compared to $10.9 million in the prior year period.

Barak Barak: These results lay the foundation for future assays that enable more detailed investigation into molecular mechanisms of Tau apathy as like Alzheimer's disease, as well as potentially opening new frontiers for more specific diagnostics.

Barak Barak: Beyond <unk>, we showed how the platform can be applied to measure Egfr party of forms.

Barak Barak: These findings are the result of targeted <unk> Pharm studies that we have been pursuing in partnership with Genentech and Amgen.

Barak Barak: And the other not a lights and attendance since the significant shift in the depths of the questions. We received from attendees during the event clearly, indicating an increased understanding of an enthusiasm for the model of this platform.

Barak Barak: Our booth was packed with researchers eager to understand that the platform might be well suited to addressing their specific research questions.

Barak Barak: One of my most enjoyable conversations with a researcher who presented work on a new Alzheimer's disease biomarker that he believes is the result of changes the abundance of a specific party a form that is challenging to measure using traditional immunoassay.

Barak Barak: It's exciting to see how the additional data we've shared from the Nautilus platform is encouraging researchers to expand their proteomics horizons.

Barak Barak: With that I'll turn the call back to Sergio.

Sergio: Thanks for the update Brock I could not agree more with <unk> takeaway from the event, having been there myself I heard so many things that can then be that momentum for the space and for Nautilus are building in lockstep researcher.

Anna Mowry: Turning to the balance sheet, we ended the year with approximately $248 million in cash, cash equivalents, and investments, compared to $264 million at the end of last quarter. We continue to expect our total operating expenses to grow by approximately 25% from 2023 levels and growth in spend to steadily increase as we prepare for our commercial launch. We continue to anticipate our cash runway to extend into the second half. We remain focused on running a very capital efficient business with tight management of our expenses, while making the investments necessary to drive our scientific progress. Looking ahead, we are confident that we are strongly positioned to execute our strategy efficiently to launch our game-changing proteome analysis platform. With that, I'll turn it back to Sujal.

Sergio: Researchers are beginning to really focus on the role that Nextgen technologies like non lift will play in creating advances and basic biological research, enabling them to make a substantial impact on the efficiency and cost effectiveness of biomarker discovery and drug development.

Speaker Change: Our next significant opportunity to educate the community about the platform and our progression towards commercial availability will occur when nautilus participates as a top level sponsor of this year's Hoopoe World Congress October 'twenty through 'twenty four in Dresden, Germany.

Speaker Change: We look forward to that event as it aligns closely with the timing of when we anticipate having updates on both our scientific and business progress.

Speaker Change: When it comes to educating the marketplace and bringing the community along on the Nautilus journey, you've heard Barack state. Many times, how committed we are to being as transparent and folks to them as we can and our communications to that end and as a means of sparking interesting conversations about proteomics and its future.

Speaker Change: This quarter, we introduced the translating proteomics podcasts and video series.

Speaker Change: Hosted by Parag and Dr. Andreas humor, a 20 year thermo that trend and now our senior director of scientific Affairs. The show is not a deep dive on the Nautilus platform rather it explores the scientific underpinnings of proteomics and challenges the audience to imagine what may be possible in the future where protein.

Speaker Change: MC data is more easily and cost effectively created.

Speaker Change: We're heartened by the warm reception to the show's first few episodes and encourage anyone who wants a better and broader understanding of the space to subscribe and participate with suggestions for topics they'd like to see addressed.

Speaker Change: For a look at our financials, let me now hand, the call over to Anna.

Anna Mowry: Anna.

Sujal: Thanks Sunil.

Sujal M. Patel: Thanks, Anna. To wrap things up, we continue to make solid progress on our development and business goals. And for that, I want to thank the entire Nautilus team. We're excited about what's to come, and we look forward to providing additional updates on our next. With that, I'm happy to open the call up for questions. As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 1 again.

Anna: Total operating expenses for the first quarter of 2024 were $21 6 million up $3 5 million compared to the first quarter of 2023 and $1 $6 million above last quarter. This 20% increase in operating expenses year over year was driven primarily by continued investment in personnel and their.

Parag Mallick: <unk> towards the development of our platform.

Anna: Research and development expenses in the first quarter of 2024 were $12 9 million compared to $10 9 million in the prior year period.

Anna: General and administrative expenses were $8 7 million in the first quarter of 2024 compared to $7 2 million in the prior year period.

Sujal M. Patel: Overall net loss for the first quarter of 2024 was $18 7 million compared to $15.0 million in the prior year period.

Operator: Please stand by while we compile the Q&A roster. Our first question comes from Yuko Oku with Morgan Stanley. Your line is open. Hi, this is Madison on behalf of Yuko. Good morning.

Anna: Turning to the balance sheet, we ended the year with approximately $248 million in cash cash equivalents and investments compared to $264 million at the end of last quarter.

Anna: We continue to expect that our total operating expenses to grow by approximately 25% from 2023 level and growth has been to steadily increase as we prepare for a commercial launch we continue to anticipate our cash runway to extend into the second half of 2026.

Madison: Just want to maybe start off with, sorry if I missed this on the call, but just wanted to make sure that on the timeline, you guys are still targeting a 2025 launch, correct? And then any updates, updated thoughts on further refined timelines beyond 2025, and if there's any particular milestones that you think you need to achieve before we have any clarity on specific launch timing. And if there's any steps you're taking to ensure like, no, I mean, no more slippages beyond 2025. Yeah, so the last time we gave timeline guidance was on our previous call, which was our fiscal year 2023 call. We didn't make any updates at this time.

Madison: We remain focused on running a very capital efficient business with tight management of our expenses, while making the investments necessary to drive our scientific progress forward. Looking ahead. We are confident that we are strongly positioned to execute our strategy efficiently to launch our game changing proteome analysis platform.

Anna: With that I'll turn it back to Joe.

Speaker Change: Thanks, Dana to wrap things up we continue to make solid progress against our development and business goals and for that I want to thank the entire Nautilus team.

Speaker Change: We're excited about what's to come and we look forward to providing additional updates on our next call with that I'm happy to open the call up for questions operator.

Madison: As a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one one again please.

Sujal M. Patel: Things continue to progress on the timeline that we outlined earlier. We don't have any greater specificity at this point. One of the things that I think I said in Q and A on the last call, which is still true, is that as we get to the point where we're able to measure a significant number of proteins, whether it be a thousand or something in that range from cell lysate and do that in a reliable and reproducible way.

Speaker Change: Please standby, while we compile the Q&A roster.

Sujal M. Patel: Our first question comes from <unk> <unk> with Morgan Stanley. Your line is open.

Sujal M. Patel: Hi, This is Madison on for you go the morning.

Sujal M. Patel:

Speaker Change: Just maybe start off with sorry, if I missed this on the call, but just wanted to make sure.

Sujal M. Patel: So on the timeline you guys are still targeting 225 expected launch.

Sujal M. Patel: That will be a key line for us where we will likely be able to project a little bit with a little bit more specificity what the remaining timeline looks like as well as it'll be a good opportunity for us to walk through with the scientific community, our potential customers on the street, the final or near final specifications of the product. Okay, let's see here. And then maybe just turning to U.S. HUBO data.

Sujal M. Patel: And then just any update updated thoughts on further we'll find timelines beyond 2025, and if theres like particular milestones that you think you need to achieve before.

Sujal M. Patel: We have any clarity on specific launch timing.

Sujal M. Patel: And if there's any steps youre, taking to ensure no need.

Sujal M. Patel: No more slippage.

Sujal M. Patel: Beyond 125.

Speaker Change: Yes so.

Sujal M. Patel: The last time, we gave.

Sujal M. Patel: Guidance was with on a previous call, which was our fiscal year 2023 call. We didn't make any updates at this type of things continue to progress on the timeline that we outlined earlier, we don't have any.

Sujal M. Patel: I know you've shared data that demonstrates the platform's ability to quantify mixtures of tau proteoforms that you guys were talking about. So stepping back, I was just wondering what are some like biological questions or use cases that could be answered with disability.

Sujal M. Patel: Greater specificity at this point, but one of the things.

Sujal M. Patel: You guys said, the Q&A and last call, which is still true is that as we get.

Sujal M. Patel: As we get to the point, where we're able to measure a significant number of our teams whether it be 1000 or $2000.

Sujal M. Patel: Or something in that range.

Sujal M. Patel: From satellites, eight and do that in a reliable and reproducible way that'll be a key.

Sujal M. Patel: Mine for us, where we will be able to likely project, a little bit, but with a little bit more specificity, what the remaining timeline looks like as well as it will be a good opportunity for us to walk through with.

Parag Mallick: I think you mentioned Alzheimer's on the call. And for context, could you share how you would go about characterizing proteoform mixtures on a mass spec, for example? Sure, I'll take that.

Speaker Change: The scientific community our potential customers in the street fee.

Speaker Change: Final or near final specifications of the product and pricing.

Speaker Change: So stay tuned.

Speaker Change: Okay, that's good to hear.

Speaker Change: And then maybe turning to yes data.

Parag Mallick: This is Parag. When we think about proteoforms generally, we think about them as providing additional detail and specificity about the function of a protein such as tau. So, for instance, the first level of regulation is just whether tau is present or absent, the second being how much is present, and then the third level of detail that we're really getting to for the first time is studying how tau is modified and what the prevalence of the different modified proteoforms are.

Parag Mallick: No you've shared data that demonstrate the platform's ability to quantify mixtures of Tau protein forms that you guys are talking about.

Speaker Change: So stepping back I was just wondering why shouldn't like biological questions or use cases, they can be answered.

Parag Mallick: With disability I think you mentioned Alzheimer's on the call.

Speaker Change: And for context could you share how you would go about power tracking Proteoform next year on the math back for example.

Speaker Change: Sure I'll take that this is parag.

Parag Mallick: When we think about pretty farms generally we think about them as providing additional detail and specificity about the function of our proteins such as Tau.

Parag Mallick: It may have, for instance, three different phosphorylation sites that have been populated and an additional splice variant. The way that you would use this data is in really two places. The first step is understanding the biology of the disease; right now, because this hasn't been measurable before, we really don't understand how these proteoforms contribute to driving either the initial onset of diseases like Alzheimer's or their progression. But it's hypothesized that different people may have different distributions of these variants that may drive their disease to progress more quickly or more slowly.

Parag Mallick: So for instance, the first level of regulation is just whether towers present or absent the second being how much is present and then the third level of detail that we're really getting to you for the first time.

Parag Mallick: Is studying how Tao has modified and what the prevalence of the different model modified pretty farms are that may have for instance, three different phosphorylated <unk> sites that have been populated and an additional splice variant.

Parag Mallick: The way that you would use this data is.

Parag Mallick: Is really in two places the first is understanding the biology of the disease right now because this hasnt been.

Parag Mallick: Measure of all before.

Parag Mallick: We really don't understand how these protean farms contribute to driving either the initial onset of diseases like Alzheimer's or their progression but.

Parag Mallick: But it's hypothesized that different people may have different distributions of these variants that may drive their disease to progress more quickly or more slowly. Additionally.

Parag Mallick: Additionally, they may be used in the periphery as biomarkers to delineate where where the disease course is.

Parag Mallick: Another method, which has been pioneered by our collaborator Neil Kelleher, is called top-down mass spectrometry, and that method is able to generally identify the masses of different proteoforms and from those masses infer what proteoforms might be present. However, our method is extremely direct as well as single molecule instead of looking at large ensembles of molecules. That's really helpful. Thank you. One moment for our next question. Our next question comes from Matt Sykes with Goldman Sachs. Your line is now open.

Matthew Carlisle Sykes: To determine whether or not particular therapeutics might be effective.

Matthew Carlisle Sykes: And so there's a tremendous amount of excitement about being able to provide that level of detail.

Matthew Carlisle Sykes: Into the into the disease and its mechanisms and progression.

Matthew Carlisle Sykes: <unk> mass spectrometer.

Matthew Carlisle Sykes: The traditional method of master cometary, shotgun, proteomics, or which looks at peptides is unable to measure protein forms at all.

Matthew Carlisle Sykes: Another method, which has been pioneered by our collaborator Neil Kelleher is.

Matthew Carlisle Sykes: Top down mass spectrometry and that method as is.

Evian: Hi, this is Evian for Matt. Thanks for taking my questions. So I know in the past, you've mentioned antibodies as being one of the final pieces needed to address before the launch. Can you give an update on how you're working through that and then any other areas of improvement before the launch? And I'll add some color at the end.

Matthew Carlisle Sykes: Able to generally identify the masses of different protein forms and from those masses infer what protein farms might be present. However.

Evian: Our method is extremely direct as well as single molecule instead of looking at large ensembles of molecules.

Speaker Change: Got it that's really helpful. Thanks.

Speaker Change: Thank you one moment for our next question.

Speaker Change: Our next question comes from Matt <unk> with Goldman Sachs. Your line is now open.

Parag Mallick: So, as we've talked about in the past, thank you for the question. Really, there are a couple of key areas that we've been focused on. The first is scale. And that applies to the reagent aspect of the consumables, the chips and flow cells, as well as the instruments themselves. Scale has two different pieces.

Speaker Change: Hi, This is <unk> on for Matt Thanks for taking my questions.

Speaker Change: So I know in the past you have mentioned the antibodies as being one of the final pieces needed to address before the launch can you give an update on how you're working through that and then any other areas of improvement thus far in the launch.

Parag Mallick: Mark you want to tackle this one first and I'll add any color on yes sure.

Parag Mallick: So as we've talked about in the past. Thank you for the question.

Parag Mallick: Really there are a couple of carriers that we have been focused on the first is scale.

Parag Mallick: Scale.

Parag Mallick: And that applies to the reagents aspects of the consumables the chips and flow cells.

Parag Mallick: The first question, and the first is justifiable, is we able to manufacture sufficient amounts of these consumables with sufficient quality to build a reproducible asset? The second aspect of scale has to do with the ability to execute successfully on large cycle experiments, dozens, hundreds of cycles. And we've demonstrated at HUPO data showing that the proteins stay immobilized on the chip over 100 cycles, and we don't see substantial degradation in binding rates that might indicate damage to the proteins.

Parag Mallick: As well as the instruments themselves and scale has two different pieces the first.

Parag Mallick: The first is just are we able to manufacture and sufficient amounts of these consumables with sufficient quality.

Parag Mallick: To build a reproducible assay.

Parag Mallick: The second aspect of scale has to do with the ability to execute successfully on large cycle experiments.

Parag Mallick: Dozens hundreds of cycles and.

Parag Mallick: And we've demonstrated it hoopoe data.

Parag Mallick: Showing that the protein stay mobilized on the chip over 100 cycles that CE.

Parag Mallick: We don't see.

Parag Mallick: Degradation in substantial degradation in.

Parag Mallick: In binding right so that might indicate damaged the proteins. We additionally demonstrates we don't see significant buildup on the surface of the chips. So those are the two key aspects of scale that we're continuing to be focused on as well as robustness.

Parag Mallick: We additionally demonstrated that we don't see significant buildup on the surface of the chip. So those are two key aspects of scale that we're continuing to be focused on, as well as robustness. Alongside those development efforts are traditional things like guard banding to understand what the specifications need to be of each of the components in the system. When we talk about the reagents themselves and the affinity reagents, what we're focused on there is really the characterization of the affinity reagents to understand very specifically for each affinity reagent what it binds to and how well it binds. What are its other biophysical characteristics? Is it a little sticky?

Parag Mallick: Long side those development efforts, our traditional things like guard banding to understand what the specifications need to be of each of the components of the system.

Parag Mallick: When we talk about the regions themselves on the affinity reagents.

Parag Mallick: Focus on there is really about the characterization of the affinity reagents to understand very specifically for.

Parag Mallick: For each affinity region, what does it bind to how well does it bind.

Parag Mallick: It's other biophysical characteristics is it a little sticky is it easy to produce so there are a number of aspects to the affinity reagents.

Parag Mallick: Is it easy to produce? So there are a number of aspects to the affinity reagents that really get to understanding the individual behavior of each reagent at a level of detail that is not typical for for standard affinity reagent workflows. Okay, great. That was super helpful. And then how are you shoring up your supply chain ahead of the launch, sort of on the back of that question, and also balancing your cash runway through the second half of 2026? Yeah, that's a good question, Evian. I'll take that one. This is Sujal.

Parag Mallick: <unk>.

Sujal: That really get to understanding.

Sujal: The individual behavior of each reagent at the level of detail, but it is not typical for for for a standard if any region workflows.

Speaker Change: Okay, Great that was Super helpful. And then how are you showing up their supply chain ahead of the launch sort of on the back of that question.

Sujal: And also balancing your cash runway through the second half of 2026.

Sujal: Yes, that's a good question <unk> I'll take that one the substantial from a supply chain perspective, we continue to on the.

Sujal M. Patel: You know, from a supply chain perspective, we continue to on the electronic side. On the electronic side, we continue to purchase ahead and manage inventory of some of the longer lead time parts in our instrument. We continue to ramp up from a contract manufacturer of [inaudible] And we made a number of small tweaks to the flow cell design in Q1 that are being implemented here through Q1 and into Q2 here that are improving quality. On the reagent side, remember that our reagents consist of two categories of things. One is, you know, bulk buffers and those sorts of things. And that stuff is pretty simple.

Sujal M. Patel: Let's start on the electronics side on the electronic side, we continue to.

Sujal M. Patel: Purchase ahead and manage inventory some of the longer lead time parts in our in our instrument.

Sujal M. Patel: We continue to ramp up from our contract manufacturing perspective, our capabilities to build instrument outside of non list walls.

Sujal M. Patel: And <unk>.

Sujal M. Patel: Continue to build instruments, which were using internally for testing for.

Sujal M. Patel: Verification validation studies and.

Sujal M. Patel: We're working with our collaborators so that work that work continues and we don't foresee any.

Sujal M. Patel: Particular issues on that side in terms of on the on the chips and the consumable side.

Sujal M. Patel: Chips and flow sale, we continue to.

Sujal M. Patel: Mature our supply chain increase the capacity of that supply chain tightened the tolerance for error in our production.

Sujal M. Patel: And we've made a number of small tweaks to the flow cell design in Q1 that are being implemented here through Q1 and into Q2 here.

Sujal M. Patel: We, for the most part, manufacture that stuff with partners outside of our walls. For the antibody side and the probe side, you know, the probe is basically an antibody plus our proprietary label. We have a, 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, and other parts that go into those externally, and we manage the supply of input material as well. So I don't I don't see any issues there, up here in the latter part of the room.

Sujal M. Patel: That are aimed at improving quality.

Sujal M. Patel: Reagent side remember that.

Sujal M. Patel: Our reagents are kind of consistent to certain categories of things one as well.

Sujal M. Patel: Bulk buffers and those sorts of things and that stuff is pretty simple.

Sujal M. Patel: We for the most part manufacturer that stuff.

Sujal M. Patel: With partners outside of our walls for the antibody side and the probe side.

Sujal M. Patel: Probe is basically antibody plus our proprietary label we have.

Sujal M. Patel: We've been building us 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 are managing the supply of the input material as well so I don't I don't see any issues there.

Sujal M. Patel: And to scale up here in the latter part of this year and next year.

Sujal M. Patel: Okay, great. Thanks so much. Thank you. One moment for our next question. And our next question comes from Matt Stanton with Jeffries. Your line is, Hey, thanks.

Speaker Change: Okay, great. Thanks, so much.

Matthew Carlisle Sykes: Thank you.

Matthew Carlisle Sykes: One moment for our next question.

Matthew Carlisle Sykes: And our next question.

Matthew Carlisle Sykes: Comes from Matt <unk> with Jefferies. Your line is open.

Matthew Carlisle Sykes: Hey, thanks.

Parag Mallick: You guys discussed it in prior remarks, but it sounds like the experimental runs continue to make good progress. If we go back to last quarter, I think you talked about an order of magnitude improvement, you know, 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? Or are you getting closer to kind of where these models and systems need to be?

Matthew Carlisle Sykes: You guys discussed in the prepared remarks, but sounds like the experimental runs continue to make good progress. If we go back to last quarter. I think you talked about order of magnitude improvement.

Parag Mallick: Three times better sequentially in <unk> as well just given how important this is for for scaling the platform I guess, how much more of an improvement.

Parag Mallick: Do you need or should we expect to see or are you getting closer to kind of where these models and systems need to be.

Parag Mallick: Thanks. Yeah, I'll take that one as a starting point. When we think about our launch targets, we typically expect to want to execute on hundreds of measurements using hundreds of probes expected to be in two colors.

Speaker Change: Yeah, I'll take that one as a starting point.

Speaker Change: When we think about our launch targets.

Speaker Change: We typically.

Speaker Change: Expected to want to be able to execute on hundreds of.

Speaker Change: On measurements using hundreds of probes.

Speaker Change: Expect it to be in two colors, so somewhere in the 150 to 200 cycles are what we're targeting for having before for our launch targets.

Parag Mallick: So somewhere in the 150 to 200 cycles is what we're targeting for our launch targets. And so accordingly, you should continue to see us advancing towards that, improving towards that, and further increasing the reproducibility and stability across hundreds of cycles, as well 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 our end-to-end assay reproducibility as well rather than components reproducibility. For example, in the limit of detection studies that we presented at USHUPO, one of the things that we did was repeat those measurements several times across different instruments across different operators across different days.

Parag Mallick: And so accordingly.

Parag Mallick: You should continue to see us advancing towards that improving towards that.

Parag Mallick: Further increasing the reproducibility and stability across hundreds of cycles.

Parag Mallick: As is where we're aiming to be in terms of reliability and reproducibility. Some of the other areas that we're continuing to push on our end.

Parag Mallick: To end assay reproducibility as well rather than components reproducibility for example in the.

Parag Mallick: Aluminum detection studies that we presented at U S hoopoe.

Parag Mallick: One of the things that we did with repeat those measurements several times across different instruments across different operators across different days.

Parag Mallick: And so those are the kinds of things that we're going to continue pushing towards as we move towards releasing our, our, our instrument and platform. Thanks. And then maybe one for Sujal.

Parag Mallick: And so those are the kinds of things that we're going to continue pushing towards as we move towards releasing in alright.

Speaker Change: Our instrument.

Sujal: And platform.

Sujal: Thanks, and then maybe one for Suzhou it sounds like a lot of.

Sujal M. Patel: Sounds like a lot of positive momentum coming out of HOOPA. Would love to hear a little more on some of the learnings from the recent event here in the U.S. and then, you know, 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 for the scientific and investment communities. So just would love your thoughts on kind of building on the recent momentum and capitalizing on the next event here in October. Thanks.

Sujal M. Patel: Positive momentum coming out of Hooper would love to just hear a little more on some of the learnings from the recent event here in the U S and then.

Sujal M. Patel: What youll look to build upon the head of the <unk>.

Sujal M. Patel: Ben This fall in Germany. It sounds like there's a lot of interest you might have a bit more of an update both for scientific and investment community. So just would love your thoughts on kind of building on the recent momentum.

Sujal M. Patel: Capitalizing on the next about here, but October thanks.

Speaker Change: Yes, why don't I start that and then I'll, let <unk>, maybe delve in a little bit more detail I think that.

Sujal M. 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, You know, the US Hoopoe 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.

Sujal M. Patel: The U S to folks is that was one where I think that we continue to see a lot of momentum both for the proteomics space, but for <unk>, specifically as well I was down there in Portland and had the opportunity to walk around and see all the posters.

Sujal M. Patel: I had a number of conversations with many of the KOLs and scientists in the proteomic space, and there certainly was a lot of excitement around the data that we were showing and the Nautilus method. Our booth traffic was excellent. We had a lot of people who are well-known proteomic scientists not just stopping by, but 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 gratifying to see, but also, I would say, is a little bit different and improved from what we've seen in years past. So I think that was great.

Sujal M. Patel: And the boots.

Sujal M. Patel: I have a number of conversations with many of the Kols and.

Sujal M. Patel: And scientists in the proteomics space and there certainly was a lot of excitement around the data that we were showing and the novelist method.

Sujal M. Patel: Our booth traffic was excellent.

Sujal M. Patel: Lot of people, who are well known proteomics scientists not just stopping by the stopping by and spending extended amount of time talking to our.

Sujal M. Patel: Our booth staff, having a conversation with parag or myself or with Nick Nelson, Our chief business officer, and really engaging in any way that I think.

Sujal M. Patel: Was gratifying 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.

Sujal M. Patel: Great one of the other highlight I was down there doing.

Sujal M. Patel: One of the other highlights, I was down there during one of Parag's talks. Parag had multiple talks at the U.S. HIPPO Conference, and one of his talks was really one that was an updated version of 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 Parag's session was absolutely packed. We were turning down our competitors at the door who were trying to get in. Every seat was full of potential customers and scientists looking to learn more. The aisles were full of people.

Sujal M. Patel: One of Prague's Tox bronchi multiple talks at the <unk> Conference and wanted his talks was really one that is an updated version of the talk that he's given before which really describes.

Sujal M. Patel: 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 parag session was absolutely packed we were turning down our competitors at the door. We're trying to get every seat with full with potential customers and scientists looking to learn more.

Sujal M. Patel: Sure. 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.

Sujal M. Patel: Really great to see, and lots of good questions were asked there. So from that regard, I think it was a really successful show. And, you know, just to address the second half of your question head-on, and then I'll let Parag add any detail if he wants. You know, certainly, for WorldHUPO coming up, we're working very hard to take the data that we have now and take it one step closer to having a product that's out the door, right?

Sujal M. Patel: A really successful show and just.

Parag Mallick: The second half of your question head on and then I'll, let <unk> add any detail if he wants to add but.

Sujal M. Patel: Certainly.

Sujal M. Patel: <unk> coming up we are 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.

Sujal M. Patel: And we're not committed to exactly 100% on the call to exactly what we have, as we headed to WorldHUPO here, but we're, we're hopeful that we can start showing much more data than just being able to decode transparent, for example, which is what we showed at USHUPO. We're working hard, our heads are down, and the entire team's focused on, anything to add there in terms of some detail? And, Yeah, I think one of the biggest changes that we saw was a transition among Kepinian leaders and other scientists asking to understand how the platform works towards a transition toward, could I use it for my specific application? And those applications were incredibly wide-ranging. They ranged from very detailed mechanistic studies or biological time courses or biomarker studies, but they covered a wide range of substrates from cell lysates to blood to CSF.

Sujal M. Patel: We're not committed to exactly that on the call is exactly what we have as we head into royalty procure but we're.

Speaker Change: We're hopeful that we can we can start showing.

Speaker Change: Much more data than just being able to detailed transplant for example, which is what we showed at usu about it. So we're working hard our heads are down and the entire team is focused on that.

Speaker Change: Probably anything to add there in terms of some detail on you.

Sujal M. Patel: <unk>.

Sujal M. Patel: Yes, I think.

Speaker Change: One of the largest as CJ mentioned one of the largest changes that we saw was a transition in and key opinion leaders and other scientists asking to understand how the platform works towards a transition towards could I use it for my specific application.

Sujal M. Patel: And those applications were incredibly wide ranging they ranged from.

Speaker Change: Very detailed mechanistic studies or biological time courses or biomarker studies, but.

Speaker Change: Spanned a wide range of substrates from <unk> to blood to CSS and.

Parag Mallick: And seeing researchers get into that level of detail of really thinking through how our platform might apply to the research questions that they're asking should they've gotten beyond understanding the way that it works. And we're really excited about how it might expand their proteomic horizons. Super. Thank you. Thank you. As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced. Again, that is star 11 to ask a question. I am showing no further questions at this time. This concludes today's conference. Thank you for participating.

Sujal M. Patel: Vaccine researchers get into that level of detail of really thinking through how our platform might apply to that research questions that they're asking.

Parag Mallick: Sure that they've gotten beyond understanding the way that it works and we're really excited about how it might expand their proteomics horizons.

Parag Mallick: Super Thank you.

Parag Mallick: Thank you.

Parag Mallick: As a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced again that is star one to ask a question.

Speaker Change: I'm showing no further questions at this time this concludes today's conference call.

Speaker Change: Thank you for participating you may now disconnect.

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