Genedx Holdings Corp. · NASDAQ:WGS
Genedx — Q3 2023 Earnings Presentation
37 slides from Genedx's earnings presentation, Oct 30, 2023
Slide 1: GeneDx: One Test: Miss Less. Discover More.
Confidential and Proprietary; Do Not Distribute GeneDx NASDAQ: WGS One Test: Miss Less. Discover More. October 30, 2023 1
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements under the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that do not relate to historical facts and events and such statements and opinions pertaining to the future that, for
Slide 3: Our Mission
Our Mission: Deliver personalized and actionable health insights to inform diagnosis, direct treatment and improve drug discovery. 3
Slide 4: 3Q 2023 and Recent Highlights
3Q 2023 and Recent Highlights Grew whole exome and genome test volume by 71% year-over-year Delivered total revenue of $53M in Q3, which included 42% year-over-year whole exome and genome test revenue growth Expanded adjusted gross margins to 48% in the third quarter of 2023 Narrowed adjusted net lo
Slide 5: Test Mix Continues to Shift with Growth in WES/WGS Volume
Test Mix Continues to Shift with Growth in WES/WGS Volume WES/WGS tests grew to 13,216 +71% year-over year and +11% vs Q2 The unadjusted and adjusted results from continuing operations for the applicable quarters include the combination of results from the Legacy GeneDx diagnostic business with the
Slide 6: Revenue Growth Driven by WES/WGS
Revenue Growth Driven by WES/WGS $34M Q3 WES/WGS revenue +42% year-over year; +62% excluding a one-time benefit in Q3 2022 and +28% QoQ >60% exome adjusted gross margin The unadjusted and adjusted results from continuing operations for the applicable quarters include the combination of results from
Slide 7: Our Path to Profitability
Our Path to Profitability For illustrative purposes, not formal guidance Three drivers to sustainable profit Revenue Growth § Revenue growth driven by whole exome/genome testing $202M § Exome revenues, adjusted for a one-time benefit in Q3 2022, grew Revenue 62% year-over-year during Q3 2023 § Reven
Slide 8: 2023 Guidance
2023 Guidance Updated October 30, 2023 Revenues between $187-192 million for full year 2023 Expanded adjusted gross margin profile 2023 and beyond Expects to use $75 to $79 million of net cash for the second half of 2023, inclusive of servicing obligations of the previously exited business activitie
Slide 9: Appendix
Appendix 31 Confidential & Proprietary. Do Not Distribute.
Slide 10: Disclaimer
Disclaimer This presentation contains forward-looking statements under the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that do not relate to historical facts and events and such statements and opinions pertaining to the future that, for
Slide 11: Our mission: To deliver personalized and actionable health insights
Our mission: To deliver personalized and actionable health insights to inform diagnosis, direct treatment, and improve drug discovery
Slide 12: The problem: Diagnostic odyssey leads to suboptimal care
The problem: Diagnostic odyssey leads to suboptimal care Lack of genomic data and connectivity can cause a cycle of misdiagnosis Patient presents with symptoms Tests are ordered Missed diagnoses impact everyone More spending Patients/Caregivers Try new • Inappropriate treatments and delayed care doc
Slide 13: Rare disease is a misnomer: collectively, common
Rare disease is a misnomer: collectively, common A constellation of a multitude of disorders Oncology Rare Diseases >100 types of disease >7000 individual diseases 1 in 8 people will be diagnosed with breast cancer 1 in 10 people affected in the US during their lifetime 1,300+ therapies 700 medicine
Slide 14: Our Solution: Genomic Data + Clinical Insights = Better Health
Our Solution: Genomic Data + Clinical Insights = Better Health
Slide 15: GeneDx: Leaders in genomic interpretation and health insights
GeneDx: Leaders in genomic interpretation and health insights Best-in-class genomic Centrellis® Centrellis® expertise health intelligence platform 20+ years of genomic analysis and pioneering work in identification of new disease-causing genes 〉Higher diagnostic yields compared to multi-gene panels,
Slide 16: Genomics-based healthcare: the future of medicine
Genomics-based healthcare: the future of medicine Supported by scientific evidence, literature, clinical practice, and industry guidelines GeneDx is starting with a focus on rare disease and pediatrics and then expanding into larger markets Rare Disease Newborn Adults: $16B & Pediatrics: $3B Screeni
Slide 17: Enhanced focus on exome and genome sequencing is working (2022)
Enhanced focus on exome and genome sequencing is working High volume and revenue growth, expanding gross margins, and reduced cash burn 2022 Financial Results* | Excluding revenues and costs from exited business activities, GeneDx has: $171M >180,000 39% Revenue generated Test results volume Adjuste
Slide 18: Enhanced focus on exome and genome sequencing is working (Q2 2023)
Enhanced focus on exome and genome sequencing is working High volume and revenue growth, expanding gross margins, and reduced cash burn Q2 2023 Financial Results* | Excluding revenues and costs from exited business activities, GeneDx has: $45M ~55,000 37% Pro forma revenue generated Test results vol
Slide 19: Driving growth and expanding markets
Driving growth and expanding markets
Slide 20: Changing the perception of exome and genome sequencing
Changing the perception of exome and genome sequencing GeneDx has spent over a decade solving for limitations of the past Then GeneDx Now “These tests take months to get results” “I can get results in days to weeks” Turnaround time “These tests are wildly expensive” “Tests are affordable and widely
Slide 21: The inherent value of exome sequencing diagnostics
The inherent value of exome sequencing diagnostics Expedited diagnoses Improved outcomes Reduced costs Starting with the most vulnerable patients $30,000 per case average savings1* Rapid results Patient retention ✓ ✓ Patient Tests ordered $6,800 savings Patients connected Healthier patients per diag
Slide 22: Medical practice guidelines recommend exome and genome sequencing
Medical practice guidelines recommend exome and genome sequencing for patients ACMG Practice Guideline1: “Strong recommendation based on the available evidence to support the use of ES/GS as either a first- (or second-) line test in patients …. ES/ GS demonstrates clinical utility for the patients a
Slide 23: Growing commercial payer and Medicaid coverage
An ever-growing number of commercial payers and Medicaid programs are adopting favorable coverage1 Commercial coverage Medicaid coverage for exome and genome of genomic sequencing 〉70% offer coverage 〉28 states cover when criteria are met exome sequencing 〉UnitedHealthcare® and 〉8 states cover Cigna
Slide 24: Decades of earned trust with geneticists to develop physician relationships
GeneDx leverages decades of earned trust with geneticists to develop relationships with physicians Neonatologist Pediatrician Hospital Lab Geneticist Director Neurologist Cardiologist We currently have relationships with >500 major health systems *LIMS, final reported test volume and # of new orderi
Slide 25: Interpretation platform powered by 500,000 exomes
Unparalleled GeneDx interpretation platform powered by 500,000 exomes delivers fewer uncertain findings uncertain 6.1% • Fewer uncertain findings benign lead to improved clarity 18.7% for clinicians and patients • More expertly curated disease-causing variants ClassifyCNV GeneDx benign vs public dat
Slide 26: Rate of Inconclusive Results
Delivering greater certainty is critical for expanding utilization Higher Diagnostic Yields1 Fewer Inconclusive Results1 • Use of genomic sequencing tests 25% P<0.001 40% P<0.0001 reduced the inconclusive rate and improved Rate of Inconclusive Results 32.6% 20% diagnostic yield 17.5% 30% Diagnostic
Slide 27: Panels leave patients behind. Exome and genome do not.
Panels leave patients behind. Exome and genome do not. Exome analysis provides higher diagnostic rates and shorter diagnostic wait times than traditional testing strategies An evaluation of almost 19,000 individuals with autism spectrum disorder revealed: Shortcomings of prior genetic testing Advanc
Slide 28: Exploring innovative methods to enhance diagnostic capabilities
Exploring innovative methods to enhance diagnostic capabilities and open a new chapter in precision care Established research collaboration to study the capabilities of HiFi long-read whole genome sequencing to increase diagnostic rates in pediatric patients Study is first of its kind to compare dia
Slide 29: We transform the standard of care
We transform the standard of care to meet the standards of the evolving world SeqFirst is studying the use of rapid whole genome sequencing toSeqFirst improve is studying care the use ofofrapid and outcomes whole children genome in the sequencing intensive care to improve care and outcomes of units
Slide 30: Building the future of healthcare
Building the future of healthcare
Slide 31: Building the future of healthcare with our comprehensive tools
Building the future of healthcare with our comprehensive tools + Centrellis® = Sequence once Combine clinical + genomic data Expand the use of and deliver best in Generation of class whole exome/genome analysis & Match structured clinical and genomic data and genomic insights over time interpretatio
Slide 32: Sequence at birth; analyze when needed; deliver actionable information
Sequence at birth; analyze when needed; deliver actionable information across the lifespan Patient’s lifetime Birth Seizure Autism PGx/Depression Carrier Screening Cancer Alzheimer's Disease Return Analyze results variants Sequence once at birth Interpretation engine Improve Interpretation Analyze E
Slide 33: Untapped partners: Biopharma
Untapped partners: Biopharma In 2020 alone, more than half (55%) of novel new drug and biological approvals were orphan drugs for rare diseases. 25
Slide 34: Data strategy leverages Centrellis for biopharma partners
Data strategy leverages Centrellis as a solutions provider to biopharma partners Combining clinical and genomic data from patients unlocks upside as platform expands DRUG DISCOVERY PATIENT REAL WORLD & EXPANSION IDENTIFICATION INSIGHTS Advance genetically prioritized & OUTREACH Make commercial targe
Slide 35: Building an ecosystem of partners
Building an ecosystem of partners 27
Slide 36: One test. There's no one better.
One test. There's no one better.
Slide 37: GeneDx
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