Slide 1: Safe harbor
Safe harbor This presentation contains forward-looking statements. All statements other than statements of historical facts contained in this presentation, including statements regarding the market opportunity, products, commercial partners, user experience, clinical trials, financial performance, s
Slide 2: Recent highlights
Enrolled 20,000 patients in SMART trial for microdeletions Trial designed to drive reimbursement for high-volume microdeletions offering Recent highlights Processed 167,172 tests in Q3 2018, 28% growth vs. Q3 2017 Panorama®: approximately 115,000 tests processed, 26% growth YoY HorizonTM: approximat
Slide 3: Core technology driving $18 billion opportunity
Core technology driving $18 billion opportunity validated with NYS, CAP, CLIA and published in 46 peer reviewed publications* PRENATAL $4 Billion ONCOLOGY $12 Billion TRANSPLANT $2 Billion NOVEL MOLECULAR METHOD POWERFUL BIOINFORMATICS *peer reviewed product and method publications 4
Slide 4: 2018 volume growth accelerating
2018 volume growth accelerating 5 Total tests processed Year-on-year growth 15% 28% 113,517 130,381 167,172 Q3 2016 Q3 2017 Q3 2018 121,335 125,731 130,381 137,773 164,355 162,807 167,172 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Slide 5: Study shows stronger performance in a larger cohort
Study shows stronger performance in a larger cohort 1 Based on SNP-based dd-cfDNA analyses described here (292 plasma specimens from 193 unique kidney transplant recipients) 2 Bloom RD, et al. J Am Soc Nephrol. 2017;28(7):2221-2232 LARGER SAMPLE SIZE STRONGER PERFORMANCE Natera study1 Bloom et al2 N
Slide 6: Transplant reimbursement pathway
Transplant reimbursement pathway Completed analytical validation Submitted clinical validation Successful pre-submission meeting Obtain Z-code Complete CLIA validation Formal LCD submission Draft LCD release Establish coding and pricing Launch registry study Final LCD published 2018 / 2019 2019 7
Slide 7: Signatera Near-term milestones
SignateraTM Near-term milestones 8 Data development update: CRC podium presentation at ESMO Breast cancer podium presentation at SABCS: Leicester, ISPY-2 data RCC study with Fox Chase CLIA launch 1H 2019 Prospective observational studies in colon, lung and breast Continued growth in pharma pipeline:
Slide 8: Phase 2 lung cancer trial with Bristol-Myers Squibb
Phase 2 lung cancer trial with Bristol-Myers Squibb Signatera results used for treatment decision-making prior to randomization in early stage NSCLC, to assess the benefit of adding Opdivo to standard of care Addressable patient population up to 75,000 per year in the U.S. De-risk pharma strategy of
Slide 9: Collaboration with Neon Therapeutics
Collaboration with Neon Therapeutics Phase I study that utilizes NEO-PV-01 + Keytruda + chemo in untreated NSCLC patients Correlate Signatera data with treatment response First time a patient-specific therapeutic has been combined with a patient-specific diagnostic in the clinical setting 10
Slide 10: Average selling prices stable as expected
Average selling prices stable as expected Multi-year, fixed price payer contracts Increasing average risk NIPT coverage Increasing coverage for microdeletions Broader Medicaid coverage Total revenues / tests reported* Pricing drivers going forward 11 *Q1 2018 pricing excludes one-time revenue recogn
Slide 11: Blended COGS targets driving strong returns
Blended COGS targets driving strong returns Blended COGS Trajectory $122 savings per unit X 626,000 tests / year = $76M annual savings ~59% ROIC on all R&D spend since 2015 ~ 12 $388 $282 $266 $200 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 Q1 2015 Q3 2017 Q3 2018 Funded projects
Slide 12: Q3 2018 financial overview
Q3 2018 financial overview Growth in Panorama and Horizon volumes is primary driver of change vs Q3 2017 P&L Q3’18 Q3’17 Change Horizon Revenue $ 23.5 $ 17.9 $ 5.6 Panorama Revenue $ 36.0 $ 33.9 $ 2.1 Total Revenue $ 65.3 $ 55.9 $ 9.4 Gross Margin% 1 36% 38% (200) bps R&D $ 12.4 $ 12.6 $ (0.2) SG&A
Slide 13: 2018 guidance update
2018 guidance update ($ in millions) Revenue $250 – $260 Gross Margin % revenue 33% – 36% SG&A $150 – $155 R&D $50 – $55 Cash Burn $65 – $75 14
Slide 14: 2018 guidance update
2018 guidance update simmons) Revenue $250 - $260 Gross Margin % revenue 33% — 36% SG&A $150 - $155 R&D $50 - $55 Cash Burn $65 - $75 @natera Not for futher repeducon or use us
Slide 15: es natera’
es natera’ jonceive. Deliver.