Natera, Inc. · NASDAQ:NTRA

Natera — 38th Annual J.P. Morgan Healthcare Conference (January 2020)

21 slides from Natera's conference presentation, Jan 15, 2020

  1. Slide 1: Natera, Inc. Investor presentation January 2020

    Natera, Inc. Investor presentation January 2020 1 Not for reproduction or further distribution.

  2. Slide 2: Well positioned for a strong 2020

    Well positioned for a strong 2020 ● ~800,000 tests processed in 2019: 20% growth vs 2018, very strong Q4 ● Outperformed 2019 pharma contracted value goal: $55 million in TCV vs. 2019 goal of $40 - $50 million ● Received final Local Coverage Decision for Prospera; final pricing expected in mid-Q1 ● E

  3. Slide 3: Natera's technology designed to analyze cell-free DNA

    Natera’s technology designed to analyze cell-free DNA ● 10+ years of Novel experience with molecular Powerful cell-free DNA bioinformatics method ● >2 million tests performed Reproductive health Oncology Organ transplant ● Single molecule sensitivity in a tube of blood 3 Not for reproduction or furt

  4. Slide 4: Leadership position in reproductive health

    Leadership position in reproductive health ~ 800K Test volumes – reproductive health products 669K 515K 447K 317K 218K 88K 2013 2014 2015 2016 2017 2018 2019 4 Not for reproduction or further distribution.

  5. Slide 5: Average selling prices and COGS momentum

    Average selling prices and COGS momentum ASP: Total revenues/tests reported1 Blended COGS trajectory $450 $384 $393 $395 $400 $388 $350 $300 $270 $250 $234 $200 $200 $150 $100 $50 $0 Q1 2019 Q2 2019 Q3 2019 Q1 2015 Q3 2018 Q3 2019 Target* 1. ASP calculation excludes revenue recognition from Qiagen,

  6. Slide 6: Average risk NIPT adoption opportunity

    Average risk NIPT adoption opportunity 4.2 million pregnancies in U.S. SMART trial reading out in 2020 • Largest NIPT prospective trial of 20,000 patients with full clinical follow-up • Expected publication in a leading journal • Extends Natera’s clinical evidence leadership Source: Natera internal

  7. Slide 7: Panorama's technical leadership continues to grow

    Panorama’s technical leadership continues to grow Number of peer reviewed publications (NIPT)* # patients studied Natera Natera 20 1,210,873 Roche Roche 14 25,963 Illumina Illumina 13 232,504 SQNM/LC SQNM/LC 12 347,765 Myriad Myriad 3 145,360 Invitae Invitae 0 - Progenity Progenity 0 - *Peer-reviewe

  8. Slide 8: Oncology MRD market opportunity

    Oncology MRD market opportunity ctDNA / Liquid biopsy Early Monitoring Therapy detection $15B selection Based on internal company estimates 8 Not for reproduction or further distribution.

  9. Slide 9: Signatera validated across multiple tumor types

    Signatera validated across multiple tumor types JAMA JAMA Clinical Cancer Clinical Cancer Nature Journal of Journal of Oncology Research Nature Clinical Oncology Research Clinical Oncology Oncology Colon1 Breast2 Lung3 Bladder4 88% sensitivity to relapse 89% sensitivity to relapse 92% sensitivity to

  10. Slide 10: Signatera also validated to assess treatment response

    Signatera also validated to assess treatment response Immunotherapy response Neoadjuvant response Accurately predicted by Signatera Accurately predicted by Signatera after just 6 weeks of treatment (INSPIRE)1 even before surgery (ISPY-2)2 6-month Progression-free survival 54.5% Distant Recurrence-fr

  11. Slide 11: Key commercial channels

    Key commercial channels Direct channel Clinical Direct channel Pharma 100K+ clinical 1 million+ Presence patients/yr Hiring oncology Pharma BD reps genetic tests in 50+ active pharma field force 2018 in China partners Near-term goal Biopharma Final LCD for Grow contracted Launch in 2020 Launch in 20

  12. Slide 12: 2019 pharma total contracted value goal achieved

    2019 pharma total contracted value goal achieved • >50 Pharma deals signed to date Cumulative value of signed contracts • Multiple prospective studies in CRC, $55M NSCLC, pancreatic $40M - $50M • Two key benefits for pharma: 1. Study enrichment: treating only MRD-positive patients, for higher drug e

  13. Slide 13: Commercial launch in colorectal cancer

    Commercial launch in colorectal cancer Serial testing to detect relapse4 98%* 88% 69% 64% ● Est. opportunity ~1 million tests annually ● Over 85% of relapses caught too late for curative surgery1,2 Sensitivity Specificity Signatera CEA *Patient-level specificity 98%; test-level specificity 99.7%3 1.

  14. Slide 14: Leadership in CRC data and clinical development

    Leadership in CRC data and clinical development Clinical validation study: JAMA Oncology (Reinert et al, 2019) 130 patients, 829 plasma samples. Relapse detected up to 16.5 months earlier (avg 8.7 months earlier) than standard imaging and CEA BESPOKE CRC trial CIRCULATE-IDEA trial Japan COLUMBIA-2 t

  15. Slide 15: Refined workflow for high performance results

    Refined workflow for high performance results 15 Not for reproduction or further distribution.

  16. Slide 16: Experience translates to superior analytical performance

    Experience translates to superior analytical performance Other Natera1 Commercial Assay2 More SNPs targeted & analyzed1 ~ 13,000 266 Precision within run 5x better1 Coefficient of Variation 1.85% 9.2% Precision across runs 2.3x better1 1.9% 4.5% ● Up to 2.3x less variability across runs than Coeffic

  17. Slide 17: Core technology drives clinical performance

    Core technology drives clinical performance Other Natera1 Commercial Assay2 Largest published renal transplant dd-cfDNA 217 107 validation study2 Highest reported overall sensitivity2 89% 59% ABMR and TCMR Highest reported ● More sensitive and specific than serum performance to assess T-cell mediate

  18. Slide 18: Second prospective trial launching for Prospera

    Second prospective trial launching for Prospera ● Clinical study with Dr. Phil Halloran, One Lambda, and a network of leading transplant centers ● A prospective, multi-center trial (approx. 15 sites) that will study Prospera, Molecular Microscope, and DSA ● Will generate key insights into the benefi

  19. Slide 19: Transplant: Final local coverage decision received

    Transplant: Final local coverage decision received ● Final pricing expected mid Q1 ● Full Commercial launch expected mid Q1 ● Strong transplant – focused commercial team in place 19 Not for reproduction or further distribution.

  20. Slide 20: Near term investments to enable rapid growth

    Near term investments to enable rapid growth Reproductive health Oncology Organ transplant • Commercial leadership • Build direct commercial • Direct sales and position channel to launch marketing channel • Product enhancements colorectal cancer test • Product line extensions • COGS reductions: • Su

  21. Slide 21: ©2020 Natera, Inc. All Rights Reserved. Not for reproduction or further distribution.

    ©2020 Natera, Inc. All Rights Reserved. Not for reproduction or further distribution.

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