Amazon has invested $14.7 million in Nautilus Biotechnology, a Seattle-based company developing advanced proteome analysis technology, according to a regulatory filing released last week. The investment underscores Amazon's growing commitment to the healthcare sector and its potential applications in drug discovery and precision medicine.
Proteome Technology Platform
Nautilus has developed a prototype device designed to measure the human proteome - the complete set of proteins in the body that constantly changes based on factors like food consumption and other variables. Unlike the static nature of the genome, the proteome's dynamic characteristics make it particularly challenging to analyze comprehensively.
Current mass spectrometers produced by companies such as Thermo Fisher Scientific are expensive and can only detect a small percentage of proteins from a blood sample, according to Sujal Patel, co-founder and CEO of Nautilus. The company's technology aims to measure more than 95% of the proteome, representing a significant advancement over existing capabilities.
Commercial Applications and Partnerships
Organizations could utilize Nautilus's system for multiple applications including drug discovery, clinical diagnostics, and precision medicine. In 2020, Roche-owned Genentech agreed to use Nautilus's system, with both companies planning to publish their research findings.
Nautilus expects to generate its first revenue in 2022 and is targeting a long-term operating margin of 25% to 30%. The company plans to sell its instruments while providing cloud-based software solutions. Patel, who previously co-founded data-storage hardware company Isilon that EMC acquired for $2.3 billion in 2010, brings significant technology commercialization experience to the venture.
Healthcare Applications and COVID-19 Research
The proteome analysis technology could have significant medical applications, particularly in understanding severe disease manifestations. According to Parag Mallick, Nautilus's co-founder and chief scientist, studying the proteome could help researchers develop treatments for patients who develop severe lung damage after contracting COVID-19. The technology might also have demonstrated vaccine safety during the coronavirus vaccine approval process.
Amazon's Healthcare Strategy
This investment aligns with Amazon's broader healthcare initiatives. The company operates an online pharmacy following its $753 million acquisition of PillPack in 2018. In June, an Amazon executive indicated that other companies are showing interest in using the Amazon Care telehealth service.
Amazon's investment portfolio includes strategic stakes in companies it conducts business with. At the end of the second quarter, Amazon held $32 million in shares of egg distributor Vital Farms, which considers Amazon subsidiary Whole Foods Market a significant customer, and $335 million in shares of Air Transport Services Group, which handles part of Amazon's aviation logistics.
Market Response and Company Status
Following the disclosure of Amazon's investment, Nautilus shares were halted and rose as much as 50% when trading resumed, closing up 10% for the day. The biotechnology company went public through a merger with special-purpose acquisition company Arya Sciences Acquisition Corp III in June.
Nautilus had approximately 70 employees when it completed the SPAC merger. In addition to Amazon's corporate investment, Jeff Bezos's venture capital firm Bezos Expeditions also invested in the company.
The company currently generates no revenue but represents Amazon's continued exploration of healthcare technology investments with potential applications in drug development and diagnostic medicine.
