Natera, Inc. · NASDAQ:NTRA
Natera — Q3 2022 Earnings Presentation
18 slides from Natera's earnings presentation, Nov 8, 2022
Slide 1: Natera, Inc. Third Quarter 2022 Earnings Call
Natera, Inc. Investor presentation Third Quarter 2022 Earnings Call November 8, 2022
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 • Total revenues of $210.6M; ~33% growth over Q3 21 • 518K total tests processed in Q3 22; ~27% growth vs. Q3 21 • 2022 revenue guidance raised to $810 million – $830 million, up $40M vs. initial 2022 guidance • Performed 53,000 oncology tests in Q3 22, representing over 150% YoY g
Slide 4: Record Q3 22 volume of 518,000 units
Record Q3 22 volume of 518,000 units ~27% volume growth 518K over Q3 21 Continued 407K momentum in Women’s Health, Organ Health and Oncology 262K 200K Q3 19 Q3 20 Q3 21 Q3 22 4 Not for reproduction or further distribution.
Slide 5: Oncology - Robust volume growth
Oncology - Robust volume growth • ~25% of US oncologists Signatera and Altera quarterly unit volumes Signatera and Altera annual unit volumes have ordered Signatera in the quarter with continued >185K 53K growth in new accounts 44K • Growth driven by both new 35K patients and serial testing 28K 76K
Slide 6: Strong revenue growth driven by strong volumes
Strong revenue growth driven by strong volumes • ~33% revenue growth Total revenues: year on year trend $211 over Q3 21 ($ in millions) 33% • Strong volume growth $158 • Significant growth in 61% Signatera ASP $98 26% 19% $78 $65 Q3 18 Q3 19 Q3 20 Q3 21 Q3 22 6 Not for reproduction or further distri
Slide 7: Prospera Kidney – Trifecta study demonstrates
Prospera Kidney – Trifecta study demonstrates Prospera is superior to DSA in predicting AMR Prospera Kidney1 • Assessed 280 samples from kidney Predictor Variable(s) AUC transplant recipients matched to kidney biopsies evaluated by both RNA-based DSA 0.66 molecular pathology and histology %dd-cfDNA
Slide 8: 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 4 bladder, pan-cancer IO monitoring physicians on staff, calling on community and academia Premium pricing: ADLT at $3,920, IO
Slide 9: Building evidence for Signatera clinical validity and utility
Building evidence for Signatera clinical validity and utility Cumulative growth of Signatera peer-reviewed Signatera published indications publications 35 CRC Melanoma Breast Multiple Myeloma 22 Pan-cancer Gastrointestinal Bladder Head & Neck Lung Pancreatic 7 4 Esophageal Ovarian 1 1 Merkel cell 20
Slide 10: Highlights from recent data publications
Highlights from recent data publications Ovarian Cancer Study – Published1 Uveal Melanoma – Published2 • Multi-site study analyzed 163 plasma • Multi-center phase 2 study of tebentafusp in samples from 69 patients with Stage I-IV 127 patients with treatment-refractory epithelial ovarian cancer metas
Slide 11: Signatera pan-cancer clinical pipeline
Signatera pan-cancer clinical pipeline Anticipated near term publications Longer term prospective trials Plasma Indication Description Patients Phase III CIRCULATE Phase III CIRCULATE time points Japan (CRC) US (CRC) CIRCULATE GALAXY Accepted CRC >1,000 >7,000 Phase III CDx Phase III CDx study with
Slide 12: Recent MRD Guideline in CRC from the Japanese Society for Medical Oncology
Recent MRD Guideline in CRC from the Japanese Society for Medical Oncology Dated October 2022 Essential Principles Panel test for detecting minimal residual disease is performed on patients with resectable advanced recurrent *Includes all Stage I-III CRC colorectal cancer for treatment selection in
Slide 13: 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 Future indications Covered by Medicare 12 ~13M 9 Tests per year (M) 6 3 ~2.3M 0 Total Source: Internal estimates 13 Not for reproduction or further distribution.
Slide 14: Big bets in oncology
Big bets in oncology Pre-selling pan-cancer Signatera offering ahead of broad reimbursement Significant investment in clinical trials and data generation is important to expand our first-mover competitive advantage, gain coverage IVD development and global infrastructure to drive future internationa
Slide 15: Q3 financial overview
Q3 financial overview ($ in millions, except for per share data) P&L Q3’22 Q3’21 Change Product Revenues $199.8 $153.9 $45.9 Licensing and Other Revenues $10.8 $4.2 $6.6 Total Revenues $210.6 $158.1 $52.5 Gross Margin%1 44.7% 48.5% (385 bps) R&D $65.5 $98.5 ($33.0) SG&A $147.7 $128.5 $19.2 Net Loss
Slide 16: Well positioned for scale
Well positioned for scale Natera Today Near Future • Established products with strong • Multiple large potential catalysts: market positions • Microdeletions guideline inclusion • Signatera colorectal cancer NCCN guideline inclusion • Addressing large unmet clinical needs • Signatera commercial paye
Slide 17: Raising 2022 annual guidance
Raising 2022 annual guidance Guide $ (millions) Original Q1 22 Q2 22 Q3 22 Key drivers • Volume outperformance Revenue $770 – $790 $790 – $810 $805 – $825 $810 – $830 • Improving oncology ASPs Gross margin 46% – 48% 46% – 48% 46% – 48% 44% – 47% • Growing oncology volumes % revenue SG&A $560 – $590
Slide 18: ©2022 Natera, Inc. All Rights Reserved.
©2022 Natera, Inc. All Rights Reserved. Not for reproduction or further distribution.