Slide 1: Safe harbor statement
Safe harbor statement This presentation contains forward-looking statements under the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this presentation, including statements regarding the market opportunity, produ
Slide 2: Recent highlights
Processed 200,194 tests in Q1 2019, a 15% sequential increase from Q4 2018 Total revenues of $67M in Q1 2019, up 18% vs Q1 2018 1 Received a positive draft local coverage decision from Medicare for Prospera™ in kidney transplant rejection screening Announced clinical validation data for: breast canc
Slide 3: Rapid unit volume growth extends Natera's leadership
Rapid unit volume growth extends Natera’s leadership Net unit growth among fastest in company history 200,194 2016 2017 2018 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 4: Driving growth in core products
Driving growth in core products Processed Units Accessioned Units 115,000 113,000 115,000 120,000 137,000 - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 1Q18 2Q18 3Q18 4Q18 1Q19 42,000 42,000 44,000 46,000 54,000 1Q18 2Q18 3Q18 4Q18 1Q19
Slide 5: Blended COGS targets driving strong returns
Blended COGS targets driving strong returns ~$30 savings per unit X annualized Q1 tests accessioned = ~$23M in annual additional gross profit opportunity Q1 COGS savings driving gross profit growth opportunity Blended COGS trajectory * Target COGS estimate based on currently funded and active R&D pr
Slide 6: Oncology ctDNA market opportunity
Oncology ctDNA market opportunity Monitoring $15B Therapy selection $6B Early detection $21 billion Signatera + Plasma whole exome* * Based on internal company estimates Prognosis Therapy effectiveness Recurrence monitoring
Slide 7: Multiple SNVs maximize sensitivity at low VAFs
Multiple SNVs maximize sensitivity at low VAFs Fixed Panel (73 Genes) Signatera (Personalized) # Somatic Variants Per Patient (Median) NSCLC 31 16 Breast 32 16 Colon 33 16 73 gene fixed panel = 3 tumor mutations per patient Signatera personalized assay = 16 tumor mutations per patient Result: Maximi
Slide 8: Breast cancer clinical validation study published
Detection of Residual Breast Cancer Using Personalized Analysis of Circulating Tumor DNA Antedates Metastatic Recurrence Study overview Sample size 49 patients, 208 plasma samples Patient sub-types HER2-positive, hormone receptor-positive, and triple-negative Study design Prospectively collected ser
Slide 9: Bladder cancer clinical validation study published
Signatera is an effective tool for prognosis and detection of muscle-invasive bladder cancer (MIBC) recurrence, potentially benefitting the ~20K men and women who are diagnosed in the United States each year.1,2 Study overview Sample size 68 patients, 656 plasma samples Patient sub-types Diagnosed w
Slide 10: Colorectal cancer clinical validation study published
Analysis of Plasma Cell-Free DNA by Ultradeep Sequencing in Patients With Stages I to III Colorectal Cancer Signatera is an effective tool for risk stratification post-surgery and early detection of colorectal cancer recurrence, potentially benefitting the ~145,000 patients diagnosed with CRC annual
Slide 11: Signatera Colorectal Cancer – Medicare reimbursement pathway
Signatera Colorectal Cancer – Medicare reimbursement pathway 2019 Future Successful pre-submission meeting Obtained Z-code Published clinical validation CLIA launch Launch registry study Formal LCD submission Draft LCD release Establish pricing Final LCD published
Slide 12: Breakthrough Device designation for Signatera
Breakthrough Device designation for Signatera Enables expedited development and review in collaboration with FDA Validates path for pharma trials using Signatera for patient selection Supports 2019 goal of achieving $40-50M in cumulative contract value Breakthrough Device
Slide 13: Signatera and whole exome sequencing in a single blood draw
Signatera and whole exome sequencing (RUO) in a single blood draw Data shows high concordance between tissue and plasma whole exome data Leapfrog 20,000 gene panel extends capabilities in $21B market One tube Proprietary chemistry Multiple applications Signatera personalized MRD monitoring Plasma wh
Slide 14: Medicare draft LCD coverage statements favorable
Medicare draft LCD coverage statements favorable Prospera identifies both ABMR [antibody-mediated rejection] and TCMR [T-cell mediated rejection], and it is validated to detect subclinical AR [active rejection]. Prospera is an effective, non-invasive method of assessing kidney allograft status with
Slide 15: Transplant reimbursement pathway on track
Transplant reimbursement pathway on track 2018 Anticipated 2019 Completed analytical validation Completed clinical validation Successful pre-submission meeting Obtained Z-code Completed CLIA validation Formal LCD submission Draft LCD release Establish pricing Launch registry study Final LCD publishe
Slide 16: Issued or allowed patents
70 issued or allowed patents 12 patents issued or allowed in Q1 2019 Broad coverage of core technologies Extensive assay-specific IP covering reproductive health, transplant and oncology Broad IP portfolio covering core technology and applications
Slide 17: Q1 2019 financial overview
Q1 2019 financial overview Growth in Panorama and Horizon volumes is primary driver of change vs Q1 2018 ($ in millions, except for per share data) P&L Q1’19 Q1’18 Change Horizon Revenue $ 22.7 $ 18.3 $ 4.4 Panorama Revenue $ 37.2 $ 33.3 $ 3.9 Total Revenue $ 66.8 $ 62.3 $ 4.5 Gross Margin%1 35% 35%
Slide 18: 2019 annual guidance unchanged
2019 annual guidance unchanged ($ in millions) Revenue $275 – $302 Gross margin % revenue 35% – 41% SG&A $180 – $190 R&D $60 – $65 Cash burn $80 – $100
Slide 19: Natera: Conceive. Deliver. Thrive.
natera® Conceive. Deliver. Thrive. HorizonTM Advanced carrier screening Spectrum® Preimplantaion genetics Panorama® Next-generation NIPT Vistara Single-gene NIPT Anora® Miscarriage test (POC) Evercord® Newborn stem cell banking SignateraTM Research use only ProsperaTM Transplant assessment Constella
Slide 20: Vistara
Vistara Bnatera --—. oe Conceive. Deliver. Thrive. sevens tig Signatera Research use only Transplant assessment Constellation Technology licensing ©2019 Natera, Inc. Not for reproduction or further distribution. Presentation is designed for medical professionals and is not intended for a general aud