Slide 1: Natera, Inc. Second Quarter 2022 Earnings Call
Natera, Inc. Investor presentation Second Quarter 2022 Earnings Call August 4, 2022
Slide 2: Forward-looking statements
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 proposed products and
Slide 3: Recent highlights
• Total revenues of $198.2M; ~40% growth over Q2 21 • ~ 500K total tests processed in Q2 22; ~33% growth vs. Q2 21 • 2022 revenue guidance raised to $805 million – $825 million • Selected to participate in U HC ’s Preferred Laboratory Network after a rigorous review process • Publi cation of the Tri
Slide 4: Record Q2 volume of 500,000 units
Record Q2 22 v olume of 500,000 u nits • ~33% volume growth over Q2 21 • Strong market share gains in Women’s Health • Continued momentum in Organ Health and Oncology • Overcame normal Q1 to Q2 sequential seasonality 200K 195K 200K 209K 235K 234K 262K 295K 348K 376K 407K 439K 489K 500K Q1 19 Q2 19 Q
Slide 5: Revenues accelerating with volume growth
$63 $74 $86 $142 $198 Q2 18 Q2 19 Q2 20 Q2 21 Q2 22 Revenues a ccelerating with v olume g rowth Total revenues: year on year trend ($ in millions) • ~40% revenue growth over Q2 21 • Steady NIPT ASP growth • Strong sequential ASP growth in Oncology: ⎻ Medicare mix improving ⎻ Volume shift to recurren
Slide 6: Selected for United Healthcare's Preferred Lab Network
Selected for United Healthcare’s Preferred Lab Network • Rigorous review process of contracted laboratory care providers who have met higher standards for access, cost, data, quality, and service • Shared commitment toward driving affordability, outcomes, and patient experience • One of only 12 part
Slide 7: Women's Health TAM: average risk NIPT
ACOG/SMFM support High risk pregnancies Average risk pregnancies Current market adoption ~3.6M ~0.8M Women’s Health TAM: A verage risk NIPT will help millions of patients per year ~4.4M pregnancies in U.S. 1 7 Not for reproduction or further distribution. 1. CDC, National Vital Statistics Reports Vo
Slide 8: Landmark SMART study published in AJOG
Landmark SMART study published in AJOG 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, excellent sensitivity and specificity • High PPV of 53% (>10X b
Slide 9: Prospera Kidney Trifecta Study published in Transplantation
Prospera Kidney with Quantification Prospera Kidney – Trifecta Study published in Transplantation Source: Halloran PF, Reeve J, Madill - Thomsen KS, et al. Combining Donor - derived Cell - free DNA Fraction and Quantity to Detect Kidney Transplant Rejection Using Molecular Diagnoses and Histology as
Slide 10: Renasight completes enrollment in RenaCARE study
Renasight – completes enrollment in RenaCARE study 10 • Real - world, prospective, multi - center study to assess clinical utility of the Renasight genetic testing panel • Enrollment completed in July – more than 1,7 00 patients across 3 0+ US sites • Expected to submit study for publication in late
Slide 11: Signatera Medicare coverage for Muscle Invasive Bladder Cancer
Signatera – Medicare c overage f or Muscle Invasive Bladder Cancer • Early - stage colorectal cancer – September 2020 • Oligometastatic colorectal cancer (Stage IV) – July 2021 • Pan - cancer immunotherapy response monitoring – November 2021 • Muscle invasive bladder cancer – July 2022 Medicare Loca
Slide 12: MIBC estimated market size of ~400K MRD tests per year
58K Non muscle - invasive 23K Muscle - invasive ~35K MIBC patients per year MIBC estimated market size of ~400K MRD tests per year 12 81K 1 Bladder cancer new diagnoses per year (6 th most common) 22% (12K) will progress from NMIBC to MIBC 2 • Median age of dx = 73 • Heavy Medicare mix with ~75% > a
Slide 13: Signatera addresses major clinical challenges in MIBC
Signatera addresses major clinical challenges in MIBC 13 TURBT 1 Dx Neoadj uvant Chemo Cystectomy Adjuvant Surveillance Neoadjuvant Chemo : Is the patient responding to treatment, can they proceed to radical cystectomy? • 60% patients don’t respond to NAC 2 • Lack of biomarkers to assess response, d
Slide 14: Published evidence supports Signatera use in neoadjuvant, adjuvant and surveillance
Published evidence supports Signatera use in neoadjuvant, adjuvant and surveillance settings Christensen et al, Journal of Clinical Oncology 2019 1 Powles et al, Nature 2021 2 1. Christensen E, Birkenkamp - Demtröder K, Sethi H, et al. Early Detection of Metastatic Relapse and Monitoring of Therapeu
Slide 15: Pan-cancer platform positioned to scale
Pan - cancer platform positioned to scale • One commercial team, one technology, many indications unlocked over time Current reimbursed population for Signatera Medicare reimbursed indications Tests per year (M) 0 1 2 3 0 . 8 M 0 .4M Stage II - III CRC Stage IV / Oligo CRC IO response monitoring MIB
Slide 16: Signatera pan-cancer clinical pipeline
Signatera pan - cancer clinical pipeline Near term publications Longer term prospective trials Indication Description Patients Plasma time points CRC CIRCULATE GALAXY with 18m followup >1,000 >7,000 CRC Multi center >300 >1,300 Gastroesophageal Multi center >275 >900 Pancreatic Multi center >175 ~50
Slide 17: Signatera coverage roadmap
Signatera c overage r oadmap x Colorectal cancer x Immunotherapy response monitoring, pan - cancer x ADLT status from CMS MRD leadership with data from >3,500 patients >15 peer - reviewed publications 100+ clinical studies in pipeline to drive coverage and change in practice guidelines x Medicare Co
Slide 18: Q2 financial overview
Q2 f inancial overview 1. Gross margin is calculated as gross profit divided by GAAP total revenues. Gross profit is calculated as GAAP total revenues less GAAP cost of revenues. 2. Cash and investments also include cash equivalents and restricted cash. 3. This balance reflects net carrying value fo
Slide 19: Natera Today
Natera Today • Established products with clear market leadership position • Addressing large unmet clinical needs • Volumes, revenues continuing to ramp quickly • Multi - year lead in published data in women’s health, oncology • Commercial teams fully built to support increased future adoption Well
Slide 20: Raising 2022 annual guidance
Raising 2022 a nnual g uidance Guide $ (millions) Original Q1 22 Q2 22 Key drivers Revenue $770 - $790 $790 - $810 $805 - $825 • Volume outperformance • Increasing ASPs Gross margin % revenue 46% – 48% 46% – 48% 46% – 48% • Improving ASP trends SG&A $560 – $590 $560 – $590 $560 – $590 • Commercial t
Slide 21: ©202 Natera, Inc. All Rights Reserved.
©202 2 Natera, Inc. All Rights Reserved. Not for reproduction or further distribution.