Nautilus Biotechnology, Inc. Q4 FY2024 earnings call

• In 2024, made progress on core platform with improvements in reagent production, instrument/assay for single molecule protein binding, and data processing software. Broadscale discovery: Developed probes binding human proteome epitopes, characterized probes, and demonstrated western blot success. Proteoform capabilities: Shared tau proteoform data at World HUPO, spurred partner conversations. • 2025 R&D priorities: Optimizing assay configuration, surface chemistry, labels, etc., to enhance probe performance. Delayed broadscale launch to late 2026 due to needed optimizations in assay setup. • In 2025, reduced headcount by ~16% to align resources and extend cash runway, with cash runway expected to extend through 2027.

No detailed breakdown of product segment financials with absolute terms and revenue contribution percentages provided. Operating expenses for Q4 2024 were $20.0 million, R&D expenses $12.8 million, G&A $7.2 million, net loss $17.6 million. For FY 2024, operating expenses were $81.5 million, R&D and G&A both increased 7%, net loss $70.8 million.

• Launch of proteome analysis platform now expected in late 2026 due to need for assay configuration and surface chemistry optimizations. • Anticipate cash runway extends through 2027 following headcount reduction. • Fiscal year 2025 operating expenses expected to be at or below 2024 levels.

• Technical risks related to assay configuration, surface chemistry, and probe labeling that could impact product performance and launch timeline. • Uncertainty around meeting future milestones and their impact on commercialization.

Q: Could you further elaborate on your plan to modify the assay configuration and surface chemistry? What are the specific issues you're currently facing that these changes would address? And with these planned changes, has anything changed in terms of how you're thinking about initial specs for the platform at launch or your plans to continue to improve those specs of subsequent kits?

A: Parag discussed factors like fluorophore labeling and surface chemistry influencing specific binding and differentiation of non-specific binding. Sujal noted the assay configuration change aims to get higher yield of probes for proteome decoding, and additional time allows further optimization of instrument/reagent specs.

Q: Shouldn't surface chemistry be uniform for all proteins? And if tau worked so well, why does that require optimization for different proteins? My understanding was you use the same surface chemistry. And why should labeling of fluorophore to the Fc region of antibody require optimization?

A: Parag explained that surface chemistry passivation and labeling strategies can impact specific binding. While surface chemistry basics are similar, small factors like fluorophore conjugation and buffer interactions affect differentiation. Fluorophore labeling optimization is needed to maintain repeated measurement balance.

Q: Could you just review what are the key milestones and timing over '25 and maybe into '26? Are there two or three checkpoints that the market will see, whether the customers or investors that we could kind of get a further update if you're meeting your expectations?

A: Key milestones include providing tau proteoform studies to researchers in first half of '25, publishing tau assay performance data, signing tau partnerships, decoding more proteins towards cell lysate, and sharing broadscale assay performance data. Progress on these will be indicators of track.

Q: Is that late 2026 launch for both the broadscale discovery and the more targeted platform, or are those timelines different?

A: Both modalities have different timelines. Broadscale discovery launch is late 2026. Proteoform side focuses on partnerships for tau studies initially, with additional biomarkers to be added over time. Early access period for broadscale starts ~6-9 months before commercial launch in late 2026.