Slide 1: Safe harbor statement
Safe harbor statement 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 perf
Slide 2: Three Goals
Three Goals 1. Expand leadership position in reproductive health ~$200 gross margin per test target for cash flow breakeven in reproductive health 2. Establish Signatera™ as the new standard for cancer care Rapid revenue growth in oncology 3. Change patient care for transplant recipients Commercial
Slide 3: Recent highlights
Processed 174,245 tests in Q4 2018, full year volume growth of 30% Total revenues of $67M in Q4 2018, up 29% from Q4 2017 Signed $50M agreement with Beijing Genomics Co., Ltd. to commercialize Signatera in China Announced $9.1M in contracted revenues for SignateraTM (RUO) with leading pharmaceutical
Slide 4: Extending market leadership with doubled growth in 2018
Extending market leadership with doubled growth in 2018 Total tests processed 15% 30% Not for further reproduction or use. 448,000 515,000 669,000 2016 2017 2018
Slide 5: Average risk coverage drives ASP upside
Average risk coverage drives ASP upside Momentum and opportunity 4 additional BCBS and 5 states’ Medicaid programs now covering average risk Estimated ~$60M annual revenue and cash flow opportunity from existing volumes alone 1. 2018 pricing excludes one-time revenue recognition of $5.8M from Qiagen
Slide 6: $50M oncology-focused partnership with BGI
$50M oncology-focused partnership with BGI $35 million upfront1 $15 million milestones2 Ongoing royalties on sales Benefits to Natera 1. $35 million upfront to Natera. $6 million prepayment to BGI for sequencing services 2. Delivered upon achievement of key milestones Signatera™ distribution in Chin
Slide 7: Targeting $40M - $50M pharma total contracted value
Targeting $40M - $50M pharma total contracted value $250K $630K $4.3M $40M - $50M Pharma deals signed with >20 partners and >30 studies or trials $9.1M Pilot studies Larger trials Not for further reproduction or use. Q1 2018 Q2 2018 Q3 2018 Q4 2018 2019E Q1 2018 Q2 2018 Q3 2018 Q4 2018 current 2019E
Slide 8: One Lambda to co-promote transplant test in U.S.
One Lambda to co-promote transplant test in U.S. Pioneer in transplant diagnostics Novel test augments One Lambda’s existing transplant offerings Access to transplant centers nationwide Accelerates entry into new market Complements Natera’s U.S. sales force Leading commercial position in transplant
Slide 9: Proven core technology drives clinical performance
Largest dd-cfDNA validation study2 Highest overall accuracy (AUC) T-cell mediated rejection cases2 (about 1/3 of cases4) Subclinical rejection2 (20-25% of cases5) Core SNP-based technology > 1.5 million cell-free DNA tests performed Precision within run 5x better1 SNPs targeted Natera Competition 13
Slide 10: Transplant reimbursement pathway on track
Transplant reimbursement pathway on track 2018 / 2019 2019 Completed analytical validation Completed clinical validation Successful pre-submission meeting Obtained Z-code Completed CLIA validation Formal LCD submission Draft LCD release Establish coding and pricing Launch registry study Final LCD pu
Slide 11: Pathway to significant transplant revenues
Pathway to significant transplant revenues Revenue sensitivity ($ in millions) Not for further reproduction or use. $2B market < 5% penetrated < 5% Total Total tests Greenfield Market penetration $42 $56 $70 $84 $98 3% 4% 5% 6% 7%
Slide 12: Q4 2018 financial overview
Not for further reproduction or use. Q4 2018 financial overview Growth in Panorama and Horizon volumes is primary driver of change vs Q4 2017 ($ in millions, except for per share data) P&L Q4’18 Q4’17 Change Horizon Revenue $ 23.9 $ 16.1 $ 7.8 Panorama Revenue $ 36.0 $ 30.9 $ 5.1 Total Revenue $ 67.
Slide 13: 2019 annual guidance
2019 annual guidance ($ in millions) Revenue $275 – $302 Gross margin % revenue 35% – 41% SG&A $180 – $190 R&D $60 – $65 Cash Burn $80 – $100 Not for further reproduction or use.
Slide 14: 2019 operating expenses supporting rapid growth
2019 operating expenses supporting rapid growth Commercial leadership position COGS reductions: Carrier workflow Algorithm improvements Automation Alternative sequencing platforms Launch CLIA assay Expanding pharma sales effort Clinical trials in indications with high unmet need, clear reimbursement
Slide 15: 2019 operating expenses supporting rapid growth
2019 operating expenses supporting rapid growth $182M © Commercial leadership position MSGRA MRED “© COGS reductions: ~ Carrier workflow ~ Algorithm improvements ~ Automation ~ Alternative sequencing platforms © Launch CLIAassay © Expanding pharma sales effort $47™M © Clinical trials in indications
Slide 16: Natera product portfolio
3 Horizon” 3 Advanced carrier screening «@ Spectrum’ Preimplantation genetics Panorama’ Next-generation NIPT @natera ~° @ Anora Conceive. Deliver. Thrive. Miscarriage test (POC) 3% Evercord™ “Newborn stem cell banking Wf Signatera” Reseach use only +- Constellation” (62019 natera, nc Not for reprodu