Slide 1: Safe Harbor
Safe Harbor This presentation contains forward-looking statements. All statements other than statements of historical facts contained in this presentation, including statements regarding the market opportunity, products, commercial partners, user experience, clinical trials, financial performance, s
Slide 2: Natera's strategic vision coming to fruition
Natera’s strategic vision coming to fruition Return to growth Record volumes in Q1 25%+ y/y revenue growth Promising outlook from new products Oncology franchise ramping Exceptional data, 10+ pharma partners signed, more in pipeline Realizing IVD strategy Emerging licensing / royalty model, $50M dea
Slide 3: Recent highlights
Recent highlights Processed 164,355 tests in Q1 2018, 36% growth vs. Q1 2017 and 19% growth vs. Q4 2017 Panorama®: approximately 115,000 tests processed, 29% growth YoY and 18% vs. Q4 2017 HorizonTM: approximately 41,535 tests accessioned, 54% growth YoY and 21% vs Q4 2017 Total revenues of $62.3M i
Slide 4: Driving growth in core products
Driving growth in core products Processed Units Accessioned Units 4 88,793 89,351 91,247 97,000 114,672 50,000 60,000 70,000 80,000 90,000 100,000 110,000 120,000 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 26,899 30,705 32,758 34,442 41,535 - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,00
Slide 5: Signatera (RUO) highly predictive of relapse across tumor types
% Relapse-free survival SignateraTM (RUO) highly predictive of relapse across tumor types Time post surgery (n=10) (n=39) (n=14) (n=9) (n=45) (n=13) HR 19.8 p < 0.005 HR 34.5 p < 0.001 HR 31.8 p < 0.0001 RFS post treatment. Abbosh C, et al. Nature. 2017 Apr 26;545(7655):446-451. RFS post cystectomy.
Slide 6: First ctDNA platform custom built for monitoring and MRD
First ctDNA platform custom built for monitoring and MRD Signatera™(RUO) Other Liquid Biopsy Clinical purpose Staging at diagnosis MRD assessment Treatment monitoring Recurrence monitoring Genomic profiling Selection of targeted therapies Analog Imaging Tissue biopsy Report type Presence/absence of
Slide 7: Average selling prices stable
Average selling prices stable Multi-year, fixed price payer contracts Increasing average risk NIPT coverage Increasing coverage for microdeletions Broader Medicaid coverage Shift from procedure code to NIPT Code In-Network shift Shift from procedure code to Microdeletions code Total revenues / tests
Slide 8: Natera's path to cash flow breakeven
Natera’s path to cash flow breakeven Steady volume growth Stable pricing Continued momentum in COGS reductions Stable operating expenses as revenues grow 8
Slide 9: R&D investments driving strong returns
R&D investments driving strong returns Blended COGS Trajectory $124 savings per unit X 615,000 tests / year = $76MM annual savings ~72% ROIC on all R&D spend since Q1 2015 ~ 9 $388 $283 $264 $200 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 Q1 2015 Q4 2017 Q1 2018 Funded projects
Slide 10: Q1 2018 financial overview
Q1 2018 financial overview Growth in Panorama and Horizon volumes is primary driver of change vs Q1 2017 P&L Q1’18 Q1’17 Change Horizon Revenue $ 18.3 $ 13.0 $ 5.3 Panorama Revenue $ 33.3 $ 32.6 $ 0.7 Total Revenue $ 62.3 $ 49.4 $ 12.9 Gross Margin% 1 35% 32% 300 bps R&D $ 14.3 $ 12.6 $ 1.7 SG&A $ 3
Slide 11: 2018 guidance unchanged
2018 guidance unchanged ($ in millions) Revenue $250 - $275 Gross Margin % revenue 35% - 40% SG&A $140 - $150 R&D $50 - $55 Cash Burn $40 - $60 11
Slide 12: 2018 guidance unchanged
2018 guidance unchanged Revenue $250- $275 Gross Margin % revenue 35% - 40% SG&A $140- $150 R&D $50- $55 Cash Burn $40- $60 @natera’ Notfor further reproduction oruse
Slide 13: natera
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