Slide 1: Fourth Quarter 2022 Earnings Call
Natera, Inc. Investor presentation Fourth Quarter 2022 Earnings Call February 28, 2023
Slide 2: 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 our market opportunity, our p
Slide 3: Recent highlights
Recent highlights • FY22 total revenues of $820.2M; ~37% growth1 over 2021. • 2.07M total tests processed in FY22; ~32% growth vs. 2021. • Performed over 196K oncology tests in FY22, representing ~158% YoY growth, with 40 published peer-reviewed studies for Signatera to date. • Guiding 2023 total re
Slide 4: Strong volume growth at scale in 2022
Strong volume growth at scale in 2022 Total processed units 2.1M 32% 1.6M 53% 28% 1.0M 20% 0.8M 30% 0.7M 0.5M 2017 2018 2019 2020 2021 2022 4 Not for reproduction or further distribution.
Slide 5: Microdeletion guideline update by ACMG
Microdeletion guideline update by ACMG SMART publication1 ACMG guideline update – 22q11.2 syndrome2 Only 22q test validated in real-world, multi-site prospective study: • Robust validation with confirmed outcomes in >18,000 patients 22q results exceeded expectations: • High incidence 1/1,524 • Excel
Slide 6: Expanded Carrier Screening – NSGC guideline
Expanded Carrier Screening – NSGC guideline Updated NSGC Expanded Carrier Screening (ECS) Guidelines1 The National Society of Genetic Counselors (NSGC) published an evidence-based (ECS) practice guideline stating: Recommendation: “ECS is superior compared to ethnicity- “Based upon the current level
Slide 7: Prospera Heart – Updated ISHLT guideline for heart transplant
Prospera Heart – Updated ISHLT guideline for heart transplant includes the use of dd-cfDNA for surveillance Updated ISHLT Heart DTRT Study Transplant Guidelines1 for Prospera Heart • Recent guideline update by ISHLT includes the • Independent, academically-led, prospective, use of donor-derived cfDN
Slide 8: Renasight – Key study readout coming in H1 23
Renasight – Key study readout coming in H1 23 RenaCARE Study Key Metrics for for Renasight RenaCARE study • Real-world, prospective, multi-center study to assess clinical utility of the Renasight genetic testing panel for patients with chronic kidney • Diagnostic utility – focused on the number of d
Slide 9: Renasight clinical actionability in CKD – comparison with hereditary cancer market
Renasight clinical actionability in CKD – comparison with hereditary cancer market US Hereditary Cancer Market US CKD Market Clinical Actionability Clinical Actionability 13.3% of cancer ?% of CKD of patients have a pathogenic germline of patients have a pathogenic germline variant (PGV)1 variant 28
Slide 10: Oncology – Robust volume growth and commercial traction
Oncology – Robust volume growth and commercial traction • >30% of US oncologists ordered Signatera in the Total Oncology Unit Volumes quarter with continued growth in new accounts 196K • Growth driven by both new patients and 158% serial testing 76K • Increased utilization in CRC, bladder, breast, 1
Slide 11: Oncology commercial strengths
Oncology commercial strengths Commercial Team Market Access / Reimbursement Large, tenured pan-cancer sales Broad Medicare coverage with CRC, and medical affairs team, with bladder, breast, and pan-cancer multiple physicians on staff, calling IO monitoring on community and academia ADLT pricing >$3,
Slide 12: Building evidence for Signatera clinical validity and utility
Building evidence for Signatera clinical validity and utility Cumulative growth of Signatera Signatera published indications peer-reviewed publications 40 39 CRC Melanoma Breast Multiple Myeloma 22 Pan-cancer IO Gastric Bladder Head & Neck 7 Lung Pancreatic 4 1 1 Esophageal Ovarian 2017 2018 2019 20
Slide 13: CIRCULATE study published as lead article in Nature Medicine
CIRCULATE study published as lead article in Nature Medicine • Outcomes analysis of 1,039 patients with Stage II-IV CRC, enrolled into the prospective, multi-site, observational GALAXY arm of CIRCULATE-Japan, with median clinical follow-up of 16.7 months, was published in Nature Medicine • Pre-surgi
Slide 14: Signatera – Medicare coverage for Breast Cancer
Signatera – Medicare coverage for Breast Cancer Local Coverage Determination (LCD) MolDX: Minimal Residual Disease for Cancer • Received written confirmation from CMS MolDX for coverage of Signatera in breast cancer • Indications include adjuvant and recurrence monitoring in patients with stage IIb
Slide 15: Significant unmet need served by one technology platform and one commercial team
Significant unmet need served by one technology platform and one commercial team Current reimbursed indications Covered by Medicare 3.4M Tests per year (M) Source: Internal estimates 15 Not for reproduction or further distribution.
Slide 16: Signatera pan-cancer clinical pipeline
Signatera pan-cancer clinical pipeline Anticipated near term publications Longer term definitive trials Plasma Indication Description Patients Phase III CIRCULATE Phase III CIRCULATE time points Japan (CRC) US (CRC) Gastroesophageal1 Multi center 295 943 Anal2 Multi center 251 817 Phase III CDx Phas
Slide 17: FY22 financial overview
FY22 financial overview ($ in millions, except for per share data) P&L FY22 FY21 Change Product Revenues $797.3 $580.1 $217.2 Licensing and Other Revenues1 $22.9 $45.4 ($22.5) Total Revenues $820.2 $625.5 $194.7 Gross Margin%2 44.4% 49.1% (472 bps) R&D $316.4 $264.2 $52.2 SG&A $588.6 $511.0 $77.6 Ne
Slide 18: 2023 annual guidance
2023 annual guidance Guide $ (millions) Key drivers • Continued volume growth, conservative Women’s Health ASPs, Revenue $980 – $1,000 strong Oncology contribution Gross margin 41% – 44% • Conservative ASP assumptions, strong Oncology growth, completing key COGS % revenue improvement projects in 202
Slide 19: Continued revenue growth while reducing operating expenses
Continued revenue growth while reducing operating expenses $905M ($45M) 53% $860M1 • Expect cash burn reduction of ~$150M on continued $316 revenue growth and reduction $325 - 345 in operating expenses. • With the maturing buildout of our commercial infrastructure, we expect increasing productivity
Slide 20: ©2023 Natera, Inc. All Rights Reserved. Not for reproduction or further distribution.
® ©2023 Natera, Inc. All Rights Reserved. Not for reproduction or further distribution.