Slide 1: Natera, Inc. Q4 and Full Year 2023 Earnings Call
Natera, Inc. Investor presentation Q4 and Full Year 2023 Earnings Call February 28, 2024
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 a
Slide 3: FY 2023 and recent strategic highlights
FY 2023 and recent strategic highlights Strong financial performance Strategic highlights & key updates • Q4 2023 total revenue of $311M vs $300M preannouncement, representing 43% year-over-year growth. Full-year 2023 total • Acquisition of Invitae’s reproductive health assets; expansion revenue of
Slide 4: Q4 revenues ~$11M above Jan. preannouncement
Q4 revenues ~$11M above Jan. preannouncement Total revenues: year on year trend ($ in millions) ~$311M • Strong growth across all $217M business units $173M • Signatera continues to ramp $112M • Significant ASP momentum $83M $67M Q4'18 Q4'19 Q4'20 Q4'21 Q4'22 Q4'23 4 Not for reproduction or further
Slide 5: Continued volume momentum in FY2023
Continued volume momentum in FY2023 ~6K units ahead of Jan. preannouncement Tests processed: year-on-year trend 3,000K 2,496K 2,500K 2,066K • Robust volume growth across 2,000K all business areas 1,570K 1,500K • Strong momentum heading 1,027K into 2024 1,000K 804K 668K • Focus on sustainable growth
Slide 6: Signatera continues to ramp
Signatera continues to ramp Total oncology unit volumes 120K 100K 98K 80K • 9K+ clinical unit growth 64K in Q4 2023 over Q3 2023 60K • ~40% of US oncologists ordered Signatera in the 40K 28K quarter with continued increases in new accounts 20K 6K 3K • $1,000 ASP target met in Q4 K Q4'19 Q4'20 Q4'21
Slide 7: ASPs and COGS execution driving organic gross margin gains
ASPs and COGS execution driving organic gross margin gains ~2% one-time Gross margins quarterly trend benefit 51% One-time benefits Organic: ASP, COGS lifting margin trends ahead of plan 49% organic • Significant sequential step margin: Volume-based initiatives ASP growth, up in Signatera ASPs impac
Slide 8: Reduced annual cash burn by ~$200M in 2023
Reduced annual cash burn by ~$200M in 2023 • Executing the strategy: cash burn Quarterly cash burn trend reduction driven by continued revenue ($ in millions) growth, improving gross margins, 1 and stable operating expenses $162 Includes2 ~$27M of prepaid lab • Q4 cash burn of approximately $61 equi
Slide 9: IP litigation update
IP litigation update INVITAE NEOGENOMICS RAVGEN CAREDX Dec. 2023 Dec. 2023 Jan. 2024 Jan. 2024 Permanent injunction Preliminary injunction Jury verdict Jury verdict Enjoining Invitae from using Enjoining NeoGenomics In favor of Ravgen; jury In favor of Natera; awarded its personalized cancer from us
Slide 10: Acquisition of NIPT & carrier screening assets from Invitae
Acquisition of NIPT & carrier screening assets from Invitae Key transaction terms: • $10 million upfront payment made to Invitae in January 2024. • Up to $42.5 million in potential milestone payments including cash and litigation-related credits. Account transitions to PanoramaTM and HorizonTM progr
Slide 11: Panorama screening for 22q is highly differentiated
Panorama screening for 22q is highly differentiated Natera test performance for 22q11.2 del • Sensitivity 83.3% (10/12), with incidence of ~1/1,500 in average risk population • The only test with validated clinical sensitivity based upon diagnostic confirmation • PPV 52.6% overall (10/19) • PPV 100%
Slide 12: No. 1 ordered NGS-based carrier screen with new broad panel screening options
No. 1 ordered NGS-based carrier screen1 with new broad panel screening options New launches Key advantages for Horizon • Includes all ACMG-recommended genes, incl. technically Horizon 613 challenging genes such as RPGR, AFF2, F8 and FXN Pan-ethnic comprehensive, including all 113 ACMG genes • ~99% d
Slide 13: Ongoing growth in organ health data generation
Ongoing growth in organ health data generation Cumulative published/accepted papers 39 40 35 34 Total number of publications 39 peer-reviewed papers 30 25 24 20 since 2019 15 11 10 5 4 0 2019-2020 2021 2022 2023 JAN-FEB 2024 Kidney Heart Lung Renasight 13 Not for reproduction or further distribution
Slide 14: Clinical data pipeline – Prospera Heart
Clinical data pipeline – Prospera Heart DEDUCE1 DTRT-22 TRIFECTA Heart3 Study Description Prospective Validation External, Prospective Longitudinal Prospective Biopsy Matched Patients 223 160 70 AR Reference Standard Histopathology Histopathology MMDx Overall AUC 0.86 0.82 0.90 • The first randomize
Slide 15: Clinical data pipeline – Prospera Kidney
Clinical data pipeline – Prospera Kidney • 1,613 patients | 54 participating centers |18 months follow up • Largest, multi-site prospective dd-cfDNA registry in kidney ProActive • 1st paper accepted for publication, shows Prospera is a leading indicator of rejection, with up to 4 months lead time ah
Slide 16: Significant first mover advantages
Significant first mover advantages Innovation & Market access & Laboratory & Clinical data Intellectual Property reimbursement customer experience • Cutting-edge test • 70 peer-reviewed • Broad Medicare • Fast TAT, mobile phleb, performance publications to date, coverage with portals, EMR, tissue ac
Slide 17: Extending data leadership in CRC
Extending data leadership in CRC BESPOKE-CRC ALTAIR INTERCEPT Patient reported outcomes Upcoming readout MDACC prospective study • 73% reported Signatera • March 2023: last • 1,140 patients results reduced anxiety patient randomized observational study • 5.6 mos median DFS • 92% would continue • Q3
Slide 18: Bladder cancer: two large scale phase 3 studies now underway
Bladder cancer: two large scale phase 3 studies now underway ~1,000 patient MODERN study now open, IMvigor011 readout anticipated Q1 2025 ahead of schedule IMvigor011 Trial MODERN Study Schema • Largest study of its kind in MIBC with COHORT A COHORT B both escalation and de-escalation arms Signatera
Slide 19: New Medicare coverage in ovarian and neoadjuvant breast cancer
New Medicare coverage in ovarian and neoadjuvant breast cancer Ovarian cancer (stage II-IV) Breast cancer (stage II-IV) adjuvant and surveillance neoadjuvant therapy monitoring • ~20K new diagnoses per year1 • Up to 50% of newly diagnosed breast cancer patients receive neoadjuvant therapy3 • Signate
Slide 20: FY23 Q4 financial overview
FY23 Q4 financial overview ($ in millions, except for per share data) P&L FY23 Q4 FY22 Q4 Change Y/Y Product revenues $307.3 $212.9 $94.4 Licensing and other revenues $3.8 $4.4 ($0.6) Total revenues $311.1 $217.3 $93.8 Gross margin% 51.4% 41.4% 998 bps R&D $83.0 $87.9 ($4.9) SG&A $161.4 $143.8 $17.6
Slide 21: 2024 annual guidance
2024 annual guidance $ (millions except Guide Key drivers gross margins) Continued volume growth across all business units, conservative women’s Revenue $1,320 – $1,350 health ASPs, strong oncology contribution Gross margin % Conservative ASP assumptions, strong oncology growth, completing key 50% –
Slide 22: Upside potential with future catalysts in 2024
Upside potential with future catalysts in 2024 Continued execution on ASPs, COGS, volumes Guideline inclusion of women’s health products ALTAIR top-line results in Q3 Additional MolDx coverage for Signatera Potential Catalysts Potential uplift from biomarker states Product launches in women’s health
Slide 23: ©2024 Natera, Inc. All Rights Reserved. Not for reproduction or further distribution.
® ©2024 Natera, Inc. All Rights Reserved. Not for reproduction or further distribution.