Guardant Health, Inc. · NASDAQ:GH
Guardant Health — William Blair 44th Annual Growth Stock Conference (June 2024)
30 slides from Guardant Health's conference presentation, Jun 4, 2024
Slide 1: Transforming Cancer Care
Transforming Cancer Care William Blair Growth Conference June 4, 2024
Slide 2: Safe harbor
Safe harbor Certain statements in this presentation and the accompanying oral commentary are forward-looking important factors may cause actual results, performance or achievements to differ materially from those statements within the meaning of federal securities laws. These statements relate to fu
Slide 3: Guardant Health was founded with the mission to give us all more time free from cancer
Guardant Health was founded with the mission to give us all more time free from cancer
Slide 4: Transforming patient lives across the continuum of cancer care
Transforming patient lives across the continuum of cancer care Planned IVD launch in 2024 Screening Minimal Residual Disease Therapy Selection Early Disease Detection Recurrence Detection & Surveillance Advanced Cancer Care 4
Slide 5: Strong record of execution
Strong record of execution 550,000+ Cumulative clinical + 40% $675-685M1 tests ordered2 $564M CAGR $374M $450M 170+ Biopharma partnerships2 $287M $214M $91M Cash flow positive 2018 2019 2020 2021 2022 2023 2024 in Therapy Selection2 1. FY 2024 Revenue guidance of $675M - $685M updated May 9, 2024 2.
Slide 6: Robust topline growth in Q1 2024 driven by precision oncology revenue
Robust topline growth in Q1 2024 driven by precision oncology revenue Total Revenue 31% Precision Oncology Revenue 38% $168M YoY Growth $156M YoY Growth $129M $113M Q1 2023 Q1 2024 Q1 2023 Q1 2024 6
Slide 7: Revised full year 2024 guidance improved across all metrics
Revised full year 2024 guidance improved across all metrics Revenue excluding Screening $675M - $685M 20% - 21% y/y growth Non-GAAP Gross Margin 61% - 63% excluding Screening Non-GAAP Operating Expenses $720M - $730M 1% decrease – flat y/y including Screening Free Cash Flow $(275M) - $(285M) Reduced
Slide 8: Leading in liquid biopsy for Therapy Selection
Leading in 700K liquid biopsy Total U.S. Advanced Cancer Patients for Therapy Selection $10B Total U.S. Addressable Market Sources: Therapy selection TAM is Stage IV patients., Data from internal modeling that sources information from US Cancer Statistics; SEER, CancerMPact®, NODA data, Treatment Ar
Slide 9: Comprehensive Therapy Selection portfolio with broad payer coverage
Comprehensive Therapy Selection portfolio with broad payer coverage 1st FDA-Approved Next-Generation 1st Blood-Only Next-Generation Comprehensive Liquid Biopsy Liquid Biopsy to Tissue Assay Liquid Biopsy Assay Monitor Tx Response Upgraded to 498 Gene Panel Reimbursed by Medicare 9
Slide 10: Guardant360 has been the primary volume growth driver
173K 125K 63K 88K 43% Clinical Testing 50K 29K Volume CAGR Guardant360 has been the primary 2018 2019 2020 2021 2022 2023 volume growth driver 26K 30K 25% 21K 19K 16K 10K Biopharma Testing Volume CAGR 2018 2019 2020 2021 2022 2023 10
Slide 11: Guardant360 ASP benefiting from multiple tailwinds
Guardant360 ASP benefiting from multiple tailwinds Guardant360 ASP Guardant360 LDT Medicare reimbursement increased to $5,000 effective January 1, 2024 ~$2,900-$2,950 Additional ASP tailwinds due to improved ~$2,750 commercial reimbursement ~$2,700 ~$2,650 FY 2024 Guardant360 ASP expected to be $2,9
Slide 12: Demonstrating first-of-its-kind capabilities powered by our Smart Liquid Biopsy Platform
Demonstrating first-of-its-kind capabilities powered by our Smart Liquid Biopsy Platform Adverse event prediction Histologic subtyping Disease monitoring Prognostic assessment Highlights the potential for greater insights from Smart Liquid Biopsy beyond genotyping and therapy monitoring 12
Slide 13: Therapy Selection has multiple near-term growth drivers
Therapy Selection has multiple near-term growth drivers Portfolio ASP Transition to EMR integration & increases Smart Liquid Biopsy key partnerships International Biopharma partnerships TissueNext & expansion & CDx approvals Response uptake 13
Slide 14: Paving the way for tissue-free MRD
15M Total U.S. Patients Paving the way for 12M U.S. Patients >5 Years tissue-free Out From Surgery MRD $20B Total U.S. Sources: ACS Cancer Treatment & SurvivorshipFacts & Figures 2019-2021 2 Guardant assessment based on tissue Addressable Market availability post diagnosis. The ACS Cancer Treatment
Slide 15: Clinically available tissue-free MRD test
Launched Smart Liquid Biopsy to achieve even higher performance for MRD Clinically available tissue-free MRD test Methylome-wide panel enables hypersensitive MRD detection across 100s of features per patient, without tissue Precise epigenomic-based tumor fraction quantification for disease monitorin
Slide 16: The future of MRD is tissue-free
The future of MRD is tissue-free Faster Easier Powerful Decreased initial turnaround No need for tissue access Ability to inform clinicians time to inform adjuvant for patients in the with precision, detection of decision making or to start neoadjuvant, adjuvant heterogeneous cancers, initial survei
Slide 17: Deep Reveal clinical data pipeline supporting efforts for additional reimbursement
Deep Reveal clinical data pipeline supporting efforts for additional reimbursement Indication Specific Studies 1H 2024 2H 2024 1H 2025 2H 2025 CRC Surveillance COSMOS Breast Multiple Lung SMC Pancreatic COSMOS Gastric COSMOS Longer term Phase II Phase III Phase III prospective trials PEGASUS TRACC P
Slide 18: Key near-term inflection opportunities for MRD in 2025
Key near-term inflection opportunities for MRD in 2025 CRC surveillance COGS Volume reimbursement reduction acceleration ASP Gross margin Cash burn improvement inflection point reduction 18
Slide 19: Pioneering a new category of cancer screening
Pioneering a 120M Average-risk U.S. new category Individuals of cancer screening $50B Total Addressable U.S. Market 19 Sources: AACR Study, Cancer Prev Res (2020)
Slide 20: Blood-based screening will change the cancer screening landscape
Blood-based screening will change the cancer screening landscape Metastatic 14% Survival Local Statistics from 26 different cancers comprising 87% of all cancers in U.S. 90% Survival Pleasant Consumer Regional Experience High Performance MCED Test 65% Survival Sources: SEER.cancer.gov. . Siegel, et
Slide 21: Publication of ECLIPSE study validates strength and quality of clinical data
Publication of ECLIPSE study validates strength and quality of clinical data • Publication in the New England Journal of Medicine, the world’s leading medical journal • Endorsement of the clinical data and study quality • Data meets the benchmark to be the first FDA approved, Medicare reimbursed, CR
Slide 22: Shield effectively detects CRC, in range with non-invasive CRC screening modalities
Shield effectively detects CRC, in range with non-invasive CRC screening modalities mt-sDNA 92% Shield 83% CRC Sensitivity FIT 74% HSgFOBT 68% mt-sDNA 87% Shield 90% Advanced Neoplasia Specificity FIT 95% HSgFOBT 97% Primary screening options Shield proposed as primary screening option 22 PMA P13001
Slide 23: Studies shows improvement in CRC screening rates with added choice of Shield test
Studies shows improvement in CRC screening rates with added choice of Shield test 1.8-Fold 2.4-Fold Increase Increase 31 305 17 130 Usual Care Intervention Usual Care Intervention N = 178 N = 181 N = 1,003 N = 1,001 Liang, 20231 Colonoscopy or FIT Coronado, 20242 Shield 23 1. Liang et al. Clinical G
Slide 24: FDA Advisory Committee panel strongly recommended approval as a primary non-invasive screening option
FDA Advisory Committee panel strongly recommended approval as a primary non-invasive screening option Shield Proposed Intended Use Shield is safe The Shield test is a qualitative in vitro diagnostic test intended to detect colorectal cancer derived alterations in cell-free DNA from blood collected i
Slide 25: Medicare coverage expected immediately after FDA approval
Medicare coverage expected immediately after FDA approval 25 https://www.cms.gov/medicare-coverage-database/view/ncd.aspx?NCDId=281
Slide 26: Shield is well-positioned to convert unscreened individuals
Shield is well-positioned to convert unscreened individuals 120M Average-risk individuals (Ages 45 – 84)1 Patients >50 years old that visited doctors for any reason in the last 12 months1 87% 50M Unscreened individuals 2 Patients >45 years old that had blood draw in the last 12 months2 91% 75% Of CR
Slide 27: Preparing to launch Shield IVD following expected FDA approval
Preparing to launch Shield IVD following expected FDA approval 2024 2025 2026 • ECLIPSE Journal • ADLT Status • USPSTF Guidelines Publication • Improved Medicare • Expanded Market • Advisory Panel Pricing Opportunity • FDA Approval & Medicare • ACS Guidelines Coverage • Positive Gross Margin • Shiel
Slide 28: Pathway to reimbursable multi-cancer test starts with CRC
Pathway to reimbursable multi-cancer test starts with CRC Multi-Cancer … CRC 28
Slide 29: Transforming patient lives across the continuum of cancer care
Transforming patient lives across the continuum of cancer care Therapy Selection MRD Screening Profitable core business Data publications for Shield FDA approval CRC and Breast Increased G360 ASP Shield Medicare MolDX submissions reimbursement Launch of Smart Liquid Biopsy for G360 Volume growth Shi
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