Fulgent Genetics, Inc. · NASDAQ:FLGT
Fulgent Genetics — Q2 2021 Earnings Presentation
28 slides from Fulgent Genetics's earnings presentation, Aug 9, 2021
Slide 1: Fulgent Genetics
Founded in 2011 | Located in Los Angeles, CA | NASDAQ:FLGT 1 Exhibit 99.2
Slide 2: Disclaimer: Forward-Looking Statements and Market Data
Disclaimer Forward-Looking Statements and Market Data This presentation contains forward-looking statements, which are statements other than those of historical facts and which represent the estimates and expectations of Fulgent Genetics, Inc. (the “Company”) about future events based on current vie
Slide 3: Mission, Core Values, and Strategy
Mission, Core Values, and Strategy Mission Develop flexible and affordable genomic testing that improves the everyday lives of those around us Core Values Innovation Customer service and commitment Quality Efficiency Strategy Leverage our proprietary NGS platform for broad application Operational ex
Slide 4: Leadership Team
Leadership Team Esteemed background in molecular science and pathology Most recently Chief Medical Officer at NeoGenomics; prior senior role at Clarient. Chairman Emeritus of Pathology at City of Hope National Medical Center Brandon Perthuis Chief Commercial Officer Dr. Lawrence Weiss Chief Medical
Slide 5: History of Fulgent Genetics
Dr. Larry Weiss Ming Hsieh Paul Kim James Xie Dr. Harry Gao History of Fulgent Genetics Expansion with organic growth and strategic deployment of capital Strengthen positioning as holistic genetic testing platform Leverage expertise of seasoned leadership team with disciplined operational focus 2011
Slide 6: Fulgent is Positioned to Execute on Our Growth Strategy
Fulgent is well positioned to execute on a targeted growth strategy. Near term initiatives include: CSI Labs acquisition to expand capabilities Controlling interest in China JV to grow global presence Fulgent is Positioned to Execute on Our Growth Strategy Proprietary technology platform allows for
Slide 7: CSI Laboratories Acquisition
CSI Laboratories Acquisition Leading cancer testing and diagnostics laboratory acquired in August 2021 Headquarters & Main Laboratory 2580 Westside Pkwy. Alpharetta, GA 30004 South Florida Laboratory 2141 Alternate A1A, South Jupiter, FL 33477 Accelerates Fulgent’s goal of becoming a large player in
Slide 8: Helio Health Investment & Strategic Partnership
Fulgent Equity Investment: $20 Million Helio Health Investment & Strategic Partnership Emerging liquid biopsy company for early detection of cancer with proven management team USA Office 9950 Research Drive Irvine, CA 92618 China Office No. 1908, Building 10, Jianguo Rd Chaoyang District, Beijing, 1
Slide 9: Competitive Landscape
Competitive Landscape Cancer Diagnostics Reproductive Health Genes & Panels Known Mutation Genomic Testing Hereditary Cancer Tumor Profiling Newborn Genetics Carrier Screens Sequencing Service $18B market2 $80B market2 $7B market1 Market size sourced from Frost & Sullivan Market sizes sourced from W
Slide 10: What Sets Fulgent Apart?
What Sets Fulgent Apart? (1)Represents genes covered by single-gene tests. (2)For Q2 2021. Includes all tests available for sale (e.g., Whole Exome, Whole Genome, Large Panels, Small Panels, Comprehensive and Focus Cancer Panels and Single-Gene Tests, COVID-19 Tests, and vaccines). Also excludes sto
Slide 11: Proprietary Technology Platform
Proprietary Technology Platform Differentiated Technology... Engineered genetic biochemistry, including reagents and probes Data suppression and comparison algorithms Adaptive learning software Automated reporting …Provides a Multitude of Advantages Broadest test menu Ability to rapidly develop and
Slide 12: Commercialized COVID-19 Testing and NGS Opportunities
Commercialized COVID-19 Testing Commercialized COVID-19 Testing Specialized Oncology Testing Next Generation Sequencing Opportunities Specialized Oncology Testing Core NGS Recent Traction with: Hereditary Cancer Cardiovascular Genetics Reproductive Health Neurodegenerative Genetics Newly launched ph
Slide 13: Fulgent's Menu is Scalable and Affordable to Customers
Fulgent’s Menu is Scalable and Affordable to Customers Large Panel Small Panel Focus Panel Single-Gene / Custom Comprehensive Panel Average Sales Price / Test Whole Genome Whole Exome Q2 ’21 Average Sales Price / Test: ~$99 Q2 ’21 Average COGS / Test: ~$23(1) Clinical Exome GREATER OFFERINGS THAN CO
Slide 14: NGS Testing – Offerings
NGS Testing – Offerings Site-Specific Testing Known Mutation Focus (30 Genes) Comprehensive (127 Genes) Somatic Cancer Panels 19 Panels Repeat Expansion 18,400+ Genes Single Gene 900+ Panels Customizable Panels Disease Panels Clinical Exome (4,500+ Genes) Whole Exome Exome Tests
Slide 15: NGS Testing – Oncology Test Menu
NGS Testing – Oncology Test Menu Fulgent Focus Cancer Panels Fulgent Comprehensive Cancer Panels Customizable: Add additional cancer genes or panels at no charge Genes: 30 Methods: NGS & Del/Dup Coverage: 99% at 50x Del/Dup ≥ 1 Exon TAT: 2 – 3 Weeks Customizable: Add additional cancer genes or panel
Slide 16: Oncology Testing Platforms
FISH Oncology Testing Platforms Expansive heme and solid tumor menu Promyelocytic Leukemia/Retinoic Acid Receptor Alpha test: 4-hour turnaround time Genius Multiple Myeloma Assessment Protocol (using CD138 isolation marker) for plasma cell enrichment 4-6 Day turnaround time 225+ stains Platforms Ven
Slide 17: NGS Testing – Panel Deep Dive
The Focus Carrier screen is a pan-ethnic screen that looks for pathogenic mutations known to cause autosomal recessive and X-linked disorders Gene Count: 30 The Ashkenazi Jewish carrier screens for pathogenic carrier variants known to cause recessive genetic disorders Gene Count: 43 The ACOG/ACMG pa
Slide 18: NGS Testing – Women's Health: PGT-A
NGS Testing – Women’s Health: PGT-A Increased Chance of Pregnancy Embryos with a normal number of chromosomes have a better chance of resulting in successful pregnancy More Confidence in Transferring a Single Embryo Avoid health risks associated with twin or triplet pregnancies that can occur from m
Slide 19: NGS Testing – Rapid Whole Genome for Newborns
NGS Testing – Rapid Whole Genome for Newborns Screens for over 200 health conditions Identifies potential health risks before symptoms arise Early detection known to have a positive impact Simple cheek swab collection for your baby : No pricks, sticks, or tears necessary Newborn Genetic Screening Go
Slide 20: Consumer Initiated Tests – Picture Genetics
Parenting Carrier test that screens for genes associated with 30 genetic conditions Newborn Screens newborns for genes associated with various genetic conditions Wellness Screens adults for genetic variants that indicate disease risk PD Aware Assesses risk for Parkinson's Disease COVID-19 At-home co
Slide 21: China Strategy
China Strategy FF Gene Biotech Joint Venture Joint venture between Fulgent, Xi Long Scientific, and Fuzhou Jinqiang Investment Partnership (FJIP) Fulgent owns controlling interest Brings Fulgent’s NGS capabilities to the Chinese genetic testing market Fulgent will increase testing capacity and expan
Slide 22: Summary Financial Performance
Summary Financial Performance $64.7M LTM NGS Revenue as of Q2’21 $453M LTM Operating Cash Flow as of Q2’21 ~153,000 LTM NGS Tests as of Q2’21 96% growth year-over-year ~152% growth year-over-year (in thousands) NGS Revenue Growth LTM as of June 30 (in thousands) $25,100 Q2 2019 LTM $33,000 Q2 2020 L
Slide 23: Financial Performance: Revenue Profile
Financial Performance: Revenue Profile Total Revenue (in thousands) $17,265 Q2 2020 $101,716 Q3 2020 $294,978 Q4 2020 $359,429 Q1 2021 $153,616 Q2 2021 Total NGS Revenue (in thousands) $6,509 Q2 2020 $10,235 Q3 2020 $12,021 Q4 2020 $16,680 Q1 2021 $25,746 Q2 2021 Billable Tests (in thousands) 181 Q2
Slide 24: Financial Performance: Margin Profile
(1) Figure is not in accordance with GAAP because it does not include equity-based compensation Financial Performance: Margin Profile (1) (1) Adjusted Gross Margin (in thousands) 56.9% Q2 2020 74.6% Q3 2020 82.6% Q4 2020 79.6% Q1 2021 77.1% Q2 2021 Adjusted Operating Margin (in thousands) 21.5% Q2 2
Slide 25: 2021 Financial Guidance
2021 Financial Guidance FULL YEAR 2021 GUIDANCE Prior Guidance (May 2021) Current Guidance (Aug 2021) Change RT-PCR COVID-19 $730 M $690 M (~$40 M) NGS COVID-19 $30 M $15 M (~$15 M) Fulgent Core NGS (Incl. China JV) $70 M $80 M +$10 M CSI Contribution n/a $15 M +$15 M TOTAL $830 M + 97% y/y $800 M +
Slide 26: Balance Sheet
Balance Sheet (tn OOO's) Periods Ended December 31, 2020 June 30, 2021 Cash & cash equivalents $ 87,426 $ 100,461 Marketable investment securities Trade accounts recaivable, net of allowanca for cradit losses of $6,044 211,941 283,328 and $1,898 as of June 30, 2021 and December 31, 2020,respectively
Slide 27: Non-GAAP Financial Adjustments
Non-GAAP Financial Adjustments (rn OOO's) FY FY 2020 2021 Revenue $7,753 $17,265 $101,716 $294,978 $421,712 $359,429 $153,616 $513,045 Cost of revenue 4,057 7,717 26,261 51,772 89,807 74,075 35,858 109,933 Gross profit $3,696 $9,548 $75,455 $243,206 $331,905 $285,354 $117,758 $403,112 Gross margin 4
Slide 28: Founded in 2011 | Located in Los Angeles, CA |
Founded in 2011 | Located in Los Angeles, CA | NASDAQ:FLGT