Slide 1: Natera, Inc. First Quarter 2023 Earnings Call
Natera, Inc. Investor presentation First Quarter 2023 Earnings Call May 9, 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 opportunities, our
Slide 3: Recent highlights
Recent highlights Strong Q1’23 Financial Continued Data Reimbursement & Medical Results / 2023 Guidance Leadership Society Endorsements • ~25% growth in revenues YoY • Reinforced Panorama NIPT • Secured pan-cancer coverage (total revenues of $242M) differentiation and data leadership policy from Blu
Slide 4: Record Q1 volume of 626,000 units
Record Q1 23 volume of 626,000 units Core Volume Drivers 626K • Serving large, 560K underpenetrated markets 518K • Differentiated 489K 500K technology backed by 439K 407K strong evidence 376K 348K Strategic Volume Initiatives 295K • NIPT growth in CA 262K 235K 234K • Market share gains due to 200K 1
Slide 5: Strong sequential revenue growth in Q1
Strong sequential revenue growth in Q1 Total revenues: year on year trend ($ in millions) 242M 12% 217M 211M 3% 194M 198M 6% 2% • ~25% revenue growth 173M 12% over Q1’22 • ~12% revenue growth over Q4’22 • Strong volume growth • Significant growth in Signatera ASP Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23
Slide 6: Three new publications reinforce Panorama data leadership
Three new publications reinforce Panorama data leadership Maternal Findings1 Pregnancy Complications2 Sex Chromosomes3 Review of Panorama “suspected New SMART study publication on Largest, prospective clinical validation maternal malignancy” result type: Panorama’s ability to identify certain study
Slide 7: Medicare coverage for Prospera Heart
Medicare coverage for Prospera Heart MolDX Local Coverage Determination (LCD) • Confirmed coverage from CMS MolDX for Prospera Heart under local coverage determination #L38568 for solid organ transplant rejection • Prospera test now has Medicare coverage for both heart and kidney transplant patients
Slide 8: Endorsements of dd-cfDNA testing in transplantation
Endorsements of dd-cfDNA testing in transplantation American Society American Society European Society of Transplant Surgeons1 of Transplantation2 of Transplantation4 • “Currently, DSA and dd-cfDNA Kidney Transplants: used in combination may be Kidney Transplants: • Recommend use of dd-cfDNA the opt
Slide 9: Renasight – key study on track for H2 publication
Renasight – key study on track for H2 23 publication RenaCARE Study for Renasight CKD is a large and growing area of healthcare • Real-world, prospective, multi-center study to assess clinical utility of the Renasight that can be improved with genetic testing genetic testing panel for patients with
Slide 10: Oncology continues to generate strong volume growth
Oncology continues to generate strong volume growth Signatera and Altera quarterly unit volumes 71K • >30% of US oncologists have ordered 35K Signatera in the quarter with continued increases in new accounts • Growth driven by both new patients and recurrence monitoring 10K • Strong clinical volume
Slide 11: Major commercial carriers now covering Signatera
Major commercial carriers now covering Signatera • Blue Shield of California implemented new pan-cancer policy for Signatera • Effective 3/1/23, the policy covers adjuvant, recurrence monitoring, and treatment monitoring • Includes all solid tumors for stages I-IV cancer • BSCA serves 4.7M members •
Slide 12: Prospective/randomized CRC study pipeline in progress
Prospective/randomized CRC study pipeline in progress 2023 2024 2025 2026 CRC commercial experience Est. submission for publication (H2 23) study(NR) Clinical experience of ~13,500 patients Blinded RCT Biobank Est. publication of data (Q4 23) (not yet announced)(RCT) Predictive randomized CRC data E
Slide 13: New clinical evidence across multiple indications
New clinical evidence across multiple indications Journal Indication Description Patients, plasma time points Publication Status 295 patients JCO Precision Oncology Gastroesophageal1 Multi-center - RWE Dec 2022 943 plasma time points Anal squamous cell 251 patients The Oncologist Multi-center - RWE
Slide 14: I-SPY2: Signatera both prognostic and predictive in neoadjuvant setting
I-SPY2: Signatera both prognostic and predictive in neoadjuvant setting Neoadjuvant Therapy (NAC) Trends I-SPY 2 Results (Cancer Cell, 2023)2 Prognostic • ctDNA-positivity before, during, and after NAC was significantly associated with inferior distant recurrence-free survival (DRFS) (p=0.02 to p<0.
Slide 15: Extending Signatera data leadership at ASCO
Extending Signatera data leadership at ASCO 2 Oral & 12 poster presentations American Society of Clinical Oncology (ASCO) annual meeting in June 2023 • Indications: Colorectal cancer, pancreatic, esophageal, cholangiocarcinoma, non-small cell lung cancer (NSCLC), muscle-invasive bladder cancer, mela
Slide 16: Q1 Financial Overview
Q1 23 Financial Overview ($ in millions, except for per share data) P&L Q1’23 Q1’22 Change Y/Y Product revenues $237.8 $190.0 $47.8 Licensing and other revenues $4.0 $4.1 ($0.1) Total revenues $241.8 $194.1 $47.7 Gross margin% 38.7% 46.8% (810) bps R&D $82.3 $80.4 $1.9 SG&A $149.6 $147.6 $2.0 Net lo
Slide 17: Cash burn reduction target on track
Cash burn reduction target on track Quarterly cash burn1: year on year trend • Expect cash burn reduction of ($ in millions) ~$150M on continued revenue growth and reduction in operating $162M expenses • Cash burn reductions will fluctuate quarter to quarter based on working capital dynamics $86M •
Slide 18: Raising 2023 annual revenue guidance
Raising 2023 annual revenue guidance Guide ($ millions) Original Current Key drivers Continued volume growth, conservative ASPs, strong oncology Revenue $980 – $1,000 $995 – $1,015 contribution Gross margin Conservative ASP assumptions, strong oncology growth, completing 41% – 44% 41% – 44% % revenu
Slide 19: ©2023 Natera, Inc. All Rights Reserved. Not for reproduction or further distribution.
® ©2023 Natera, Inc. All Rights Reserved. Not for reproduction or further distribution.