Caredx, Inc. · NASDAQ:CDNA
Caredx — Investor Presentation (January 2024)
42 slides from Caredx's investor presentation, Jan 9, 2024
Slide 1: The Transplant Company Corporate Presentation
Exhibit 99.2 ™ The Transplant Company Focused on improving care across the entire transplant patient journey Corporate Presentation January 9, 2024 Patrick G. Kidney Transplant Recipient
Slide 2: Safe Harbor Statement
Safe Harbor Statement These slides and the accompanying oral presentation contain forward-looking statements. All statements other than statements of historical fact contained in this presentation, including statements regarding the future financial position of CareDx®, Inc. (together with its subsi
Slide 3: Office of the Chief Executive Officer Update
Office of the Chief Executive Officer Update Michael Goldberg, Board Chairperson
Slide 4: Office of the Chief Executive Officer Update
Office of the Chief Executive Officer Update Michael Goldberg Abhishek Jain Alex Johnson Board Chairperson Chief Financial Officer President of Patient & Testing Services • Confidence in leadership and bench strength • Strong business performance in Q3 and Q4 2023 • Search underway for new Chief Exe
Slide 5: CareDx Leadership
CareDx Leadership Office of the Chief Executive Officer Michael D. Goldberg Abhishek Jain Alexander L. Johnson BOARD CHAIRPERSON CHIEF FINANCIAL OFFICER PRESIDENT OF PATIENT & TESTING SERVICES Executive Leadership Robert N. Woodward, PhD Marica Grskovic, PhD Kashif Rathore GS Jha Stacey Follon Jeffr
Slide 6: Transplant Vision and Growth Strategy
Transplant Vision and Growth Strategy Alex Johnson, President of Patient & Testing Services, Office of the Chief Executive Officer
Slide 7: Our Vision and Mission
Our Vision The leading partner for the transplant ecosystem Our Mission We are committed to improving long-term outcomes by providing innovative solutions throughout the entire transplant patient journey Patrick G. Kidney Transplant Recipient 7
Slide 8: CareDx Key Highlights
CareDx Key Highlights We are in early stages of a $6B+ market opportunity in transplant care, serving some of the 1 highest need patients in the US healthcare system Our strategy is to develop and provide best in class, reimbursed high value clinical solutions 2 to patients to extend allograft survi
Slide 9: Serving High-Cost Patient Population with Large Unmet Need
Serving High-Cost Patient Population with Large Unmet Need Delivering Clinical Solutions to Help Extend Allograft Survival Transplant Patients Need Opportunity to Improve Care Along Better Care Transplant Patient Journey • Among highest need patients in US healthcare system • Created market standard
Slide 10: CareDx Leading with Innovation for Years
CareDx Leading with Innovation for 25 Year FIRST FIRST FIRST FIRST FIRST FIRST FIRST Gene Expression Validated Transplant Validated CareDx GEP and dd- Medicare Profiling for dd-cfDNA Center Multi-Modality AI Enabled cfDNA for Coverage for Transplant for Kidney EMR in Heart Tools Xeno Multimodality T
Slide 11: CareDx Focused on $6B TAM Opportunity in Transplant
CareDx Focused on $6B TAM Opportunity in Transplant TESTING SERVICES PRODUCTS DIGITAL U.S. Global Global 1.5M+ Users ~400,000 Patients 1.5M+ Patients >1,000 Top 150 Centers perform >1,000 majority of all transplants Labs & Centers Centers & Ecosystem Robust TAM continues Post EMR & Patient Engagemen
Slide 12: A Growing Transplant Market with Potential to Double in 5-10 Years
1 A Growing Transplant Market with Potential to Double in 5-10 Years 1 Longer Term Trends Near Term Upsides Perfusion Growth Tailwinds Today Mid-single digit CMS /Kidney Care Recovery in annualized growth Choices (KCC) living donors 40K transplants of transplant incentives 2 4 annually in US market
Slide 13: CareDx Testing Services Strategy
CareDx Testing Services Strategy Bring next Be the generation of partner of innovation to choice for the transplant transplant clinic centers Increase Grow adoption of reimbursement AlloMap and and coverage AlloSure through clinical data and evidence 13
Slide 14: CareDx Testing Services Strategy
CareDx Testing Services Strategy Integrated, sticky offerings across care journey Be the Bring next Scale coverage of all partner of generation of major transplant centers choice for innovation to transplant the transplant centers Next-gen collaborations clinic for research & innovation Increase Gro
Slide 15: Testing Services Strategy – Increase Patient Uptake and Adoption
Testing Services Strategy – Increase Patient Uptake and Adoption Bring next Be the generation of partner of innovation to choice for “Build back AlloSure the transplant transplant Kidney via new clinic centers transplant center “Billing Article” protocols Grow Increase Expand HeartCare reimbursement
Slide 16: Testing Services Strategy – Expand Coverage
Testing Services Strategy – Expand Coverage Bring next Be the generation of partner of innovation to choice for the transplant Add private payer Transplant clinic coverage for Centers AlloSure Kidney and HeartCare Increase Grow adoption of Publish surveillance reimbursement AlloMap and data via KOAR
Slide 17: Testing Services Strategy – Innovate in Our Core
Testing Services Strategy – Innovate in Our Core Continue to innovate at scale Bring next in core portfolio generation of Be the Expand multi- innovation to partner of modality with the transplant choice for new covered tests clinic transplant centers Scale AI and decision support Increase Grow tool
Slide 18: New Testing Services Volume Baseline Set in Second Half of 2023
New Testing Services Volume Baseline Set in Second Half of 2023 Created Platform for Growth Base Financial Model Now Assumes Continued Impact of Billing Article Billing Article successfully operationalized internally ü Systems and Ordering Updating: 90%+ Completed Q3'23 ü Center and Clinician Educat
Slide 19: CareDx Supporting Transplant Community
CareDx Supporting Transplant Community Advocating Against Medicare Rollbacks with CMS & Biden Administration Professional Society Engagement Patient Advocacy Senator Gillibrand (D-NY) speaking at Honor the Gift Press Conference held on Capitol Hill, December 5, 2023. Congressional Efforts National M
Slide 20: Clinical Studies and Pipeline Innovation
Clinical Studies and Pipeline Innovation Robert Woodward, PhD, Chief Scientific Officer
Slide 21: CareDx Continues to Build New Solutions and Key Evidence
CareDx Continues to Build New Solutions and Key Evidence 20+ years of unmatched evidence development for non-invasive 1 testing Multi-center study data demonstrate additional clinical scenarios 2 1,2 Society guidelines recommend use of CareDx testing services 3 Investments in multi-center studies to
Slide 22: Growing Evidence Supporting Clinical Utility and Adoption
Growing Evidence Supporting Clinical Utility and Adoption Products Goals 2024 Data Sources KOAR KIDNEY OKRA Surveillance not tied to Biopsy AlloSure Kidney National Expanded For-Cause Uses Databases HEART SHORE Utility of Multimodality AlloMap Heart Single-center HeartCare Utility > 1 year AlloSure
Slide 23: Guidelines and Evidence from Studies to Support Payer Coverage
Guidelines and Evidence from Studies to Support Payer Coverage In Progress: CareDx Sponsored Studies Types of Evidence to Support Coverage Name Area Centers Patients KOAR Kidney Transplant Outcomes >55 >1,700 - Improve immediate OKRA Kidney Transplant Outcomes >60 >1,900 outcomes SHORE Heart Transpl
Slide 24: Differentiation Through Complementary Multi-Modality Pipeline
Differentiation Through Complementary Multi-Modality Pipeline UroMap AlloMap Kidney HistoMap Product Urine Gene Expression Profiling Blood Gene Expression Profiling Biopsy Gene Expression Profiling − Early use − Gene Expression Profiling − BK differentiation (GEP) Added Mechanism − Quantified Method
Slide 25: Differentiation Through Digital Decision Support
Differentiation Through Digital Decision Support AiKidney: AlloView Heart: AiCAV Product AiKidney: iBox − Predictive Algorithm − Cardiac Allograft with Multiple Inputs Vasculopathy (CAV) − Prognostic Algorithm Differentiation to Further Educate Diagnosis from on Rejection Risk AI-Derived Algorithm −
Slide 26: Patient Journey Expansion and Moat
Patient Journey Expansion and Moat Kashif Rathore, Chief of Digital Health and Patient Solutions
Slide 27: Summary: Patient Journey Expansion and Digital Moat
Summary: Patient Journey Expansion and Digital Moat One Stop for Transplant Centers Significant interest from clinicians to improve patient management using intelligence 1 and data driven solutions Digital and Patient business grew 29% in FY'23 compared to FY'22, primarily driven by 2 success of acq
Slide 28: Growing Transplant Center Presence
Growing Transplant Center Presence Over 70% of Organ Transplant Centers Use One or More Digital Patient Journey Solutions* Patient Operational Lab Logistics Outcomes Management Support Management Support Quality Center 70% Penetration* Centers using 1 or more CareDx patient and digital solutions Dig
Slide 29: Patient and Digital Solutions Moat In Transplant Center Ecosystem
Patient and Digital Solutions Moat In Transplant Center Ecosystem Integrated Patient Care Solutions From One Company, CareDx Transplant Account Manager Lab CLIA Team Patient Care Managers TRANSPLANT Medical Science Liaison Remote Care Navigators CENTERS Field Lab Services Team Transplant Coordinator
Slide 30: CareDx Pro Provides a Seamless Transplant Center Experience
CareDx Pro Provides a Seamless Transplant Center Experience Eases Access to Digital and Testing Services Offerings Before CareDx PRO With CareDx PRO Individual product interfaces, per center One interface, per center CENTER CENTER CENTER CENTER CENTER CENTER CENTER CENTER CENTER CENTER Deployed by C
Slide 31: CareDx PRO: How it Works
CareDx PRO: How it Works Once in place, any CareDx solution can be enabled by CareDx B CareDx PRO button is placed right within clinician A CareDx PRO EMR workflow This is the EMR i.e., Epic or Cerner D Selected CareDx Solution C Appears Here Digital solutions Clinicians can open right within naviga
Slide 32: Financial & Operational Highlights
Financial & Operational Highlights Abhishek Jain, Chief Financial Officer Office of the Chief Executive Officer
Slide 33: Preliminary Q4 and FY 2023 Financial Highlights
Preliminary Q4 and FY 2023 Financial Highlights Preliminary FY'23 revenue in the range of $279M to $280M; which is above the high end 1 of guidance for FY'23 Patient test services results grew for the second quarter in a row at approx. 39,900; an 2 increase of 4% as compared to Q3'23 Preliminary Tes
Slide 34: FY'23 Preliminary Revenue Above High End of Guidance
FY'23 Preliminary Revenue Above High End of Guidance Solid Growth in Products and Digital Solutions Businesses; Testing Services Impacted by Billing Article (in millions of dollars) FY'23 Preliminary Revenue Testing Services Impacted by Billing Article -13% 322 -21% ~279-280 264 ~209-210 Solid Growt
Slide 35: Billing Article Impacted Product Mix
Billing Article Impacted Product Mix Cardiothoracic Now Represents about 60% of Volume and over 50% in Revenues Volume Revenue 100% 100% 50% 50% 0% 0% Before After Before After Billing Article Billing Article Billing Article Billing Article Abdominal Cardiothoracic Abdominal Cardiothoracic Note: Abd
Slide 36: Testing Services Volumes Have Stabilized Post the Billing Article Impact
Testing Services Volumes Have Stabilized Post the Billing Article Impact and Are Now Growing 60,000 Billing Article Impact 40,000 20,000 0 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 36 Back to Growth
Slide 37: Focus on Significant Commercial Payors Coverage Opportunity
Focus on Significant Commercial Payors Coverage Opportunity PAYOR MIX 100% Large Opportunity on Non- Reimbursed Tests 50% • Focus on Commercial Coverage 30% • Purpose-designed studies and analysis to gain Medicare coverage 0% • Re-engineered test intake and billing appeals Volume Revenue process Com
Slide 38: Coverage Successes in FY'2023
Coverage Successes in FY'2023 Cardiothoracic Abdominal 7.5M 7.5M New Lives Added NA 31.5M Expanded Coverage Added in FY ’23 Added in FY ’23 • 4 Blues Plans • 1 National • 3 Large Regional • 2 Blues Plans Expansion • 1 Large National • National 38
Slide 39: Cash Collection Continues to Stay Strong
Cash Collection Continues to Stay Strong th Cash Collections Above Testing Services Revenue for 5 Consecutive Quarter Ratio of Cash Collections to Revenue 120% Collected ~$17M More in Cash as Compared to FY'23 Preliminary Revenue Scaled infrastructure 100% 80% 0% FY2021 FY2022 FY2023 Q1’23 Q2’23 Q3’
Slide 40: Billing Article Impact and Mitigating Actions
Billing Article Impact and Mitigating Actions Actions Taken in Q2/Q3: $50-$60M 1. Swift operational implementation of Billing Article requirements and stabilization of Testing Services volumes 2. Immediate cost reductions as announced in Q2'23 of $40-$50M BILLING ARTICLE IMPACT ON ADJUSTED EBITDA Q4
Slide 41: CareDx Leadership in Growing Transplant Market
CareDx Leadership in Growing Transplant Market with a Differentiated Financial Phenotype Large TAM & Strong Gross Strong Cash Path to Testing Services Opportunities Margins Position of Profitability Volume to Grow $235M and Positive Stabilized and Profitably GM Expansion Operating Growing Testing Se
Slide 42: CareDx: Your Partner in Transplant Care
é CareDx = Care Dx: Your Partner in Transplant Care™