Slide 1: Natera, Inc. Second Quarter 2023 Earnings Call
Natera, Inc. Investor presentation Second Quarter 2023 Earnings Call August 3, 2023
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 opportunities, our
Slide 3: Recent highlights
Recent highlights Strong Q2’23 Financial Results Data Leadership Corporate Updates • ~32% YoY growth in revenues • ProActive study reinforces Prospera • Announced two favorable legal wins: (total revenues of $261M); ~8% as early indicator of kidney rejection (1) A jury's March 2022 findings growth a
Slide 4: Quarterly volumes demonstrate continued momentum
Quarterly volumes demonstrate continued momentum 700K Core Volume Drivers 617K • Serving large, 600K underpenetrated markets • Differentiated 500K 500K technology backed by strong evidence 400K 376K Strategic Volume Initiatives • NIPT growth in CA 300K • Market share gains due to 234K competitor car
Slide 5: Oncology continues to generate strong volume growth
Oncology continues to generate strong volume growth Signatera and Altera quarterly 95K unit volumes 85K 84K 75K 71K 65K 64K • >30% of US oncologists ordered Signatera in the quarter with 53K 55K continued increases in new accounts • Growth driven by both new patients 44K 45K and recurrence monitorin
Slide 6: Strong sequential revenue growth in Q2
Strong sequential revenue growth in Q2 Total revenues: year on year trend ($ in millions) 270M 261M 250M 242M 8% 230M • ~32% revenue growth 217M over Q2’22 211M 12% 210M 3% 194M 198M • Strong gross margin 7% 2% improvement 190M • Significant growth 170M in Signatera ASP 150M Q1'22 Q2'22 Q3'22 Q4'22
Slide 7: Highlights in Women's Health
Highlights in Women’s Health Fourth paper published from SMART study Support for clinical utility of carrier screening • Largest, prospective clinical validation of screening for sex • FDA recently approved the first gene therapy for treatment of chromosome aneuploidies with NIPT published in Geneti
Slide 8: ProActive study reinforces Prospera as early indicator of kidney transplant rejection
ProActive study reinforces Prospera as early indicator of kidney transplant rejection Trial background • Prospective, donor-derived cell-free DNA study in kidney transplant recipients. • Kidney transplant patients enrolled from 54 participating centers. • Publication expected end of 2023 / early 202
Slide 9: EMPower Lung-1: immunotherapy response monitoring in NSCLC
EMPower Lung-1: immunotherapy response monitoring in NSCLC ASCO 2023 Poster Discussion • Trial Background: Phase 3 registrational trial for Regeneron’s Estimated TAM Cemiplimab IO (n = 175 ctDNA cohort). Signatera used to >150K patients per year2 monitor ctDNA levels at baseline, week 3, and week 9.
Slide 10: INTERCEPT: clinical utility of routine surveillance in CRC
INTERCEPT: clinical utility of routine surveillance in CRC ASCO 2023 Poster1 Discussion Trial Background Results and Implications • MD Anderson’s independent program using • 184 patients were ctDNA+ during surveillance for Signatera testing in routine clinical care for disease recurrence. stage II-I
Slide 11: Completion of enrollment in randomized ALTAIR trial
Completion of enrollment in randomized ALTAIR trial Study objective Proving the utility of extended adjuvant therapy and treatment on molecular recurrence for ctDNA+ patients Estimated read-out Mid-2024 11
Slide 12: Prospective/randomized CRC study pipeline in progress
Prospective/randomized CRC study pipeline in progress 2023 2024 2025 2026 CRC commercial experience Est. submission for publication (H2 23) study(NR) Clinical experience of ~13,500 patients Est. presentation of GALAXY data (Q4 23) GALAXY 24-month follow up (NR) 24-month outcomes data on >2K CRC pati
Slide 13: Clinical roadmap in breast cancer across subtypes and settings
Clinical roadmap in breast cancer across subtypes and settings 2023 2024 2025 2026 2027 2028 EBLIS Expanded Cohort (Prospective/ All subtypes Retrospective Trial) PH III Prospective/Retrospective Trial ER+/HER2- PH III Prospective/Retrospective Trial ER+/HER2- PH III Prospective/Retrospective Trial
Slide 14: Q2 Financial Overview
Q2 23 Financial Overview ($ in millions, except for per share data) P&L Q2’23 Q2’22 Change Y/Y Product revenues $258.3 $194.6 $63.7 Licensing and other revenues $3.1 $3.6 ($0.5) Total revenues $261.4 $198.2 $63.2 Gross margin% 45.2% 44.9% 30 bps R&D $78.2 $82.6 ($4.4) SG&A $152.5 $149.5 $3.0 Net los
Slide 15: Cash burn reduction target on track
Cash burn reduction target on track • Expected cash burn reduction Quarterly cash burn1: year on year trend compared to 2022 of ~$150M on ($ in millions) continued revenue growth and reduction in operating expenses. ~$110M • Cash burn reductions will fluctuate quarter to quarter based on working cap
Slide 16: 2023 guidance
2023 guidance Guide ($ millions) Original Q1 23 Current Key drivers Continued volume growth, conservative Revenue $980 – $1,000 $995 – $1,015 $1,015 – $1,035 ASPs, strong oncology contribution Conservative ASP assumptions, strong Gross margin oncology growth, completing key COGS 41% – 44% 41% – 44%
Slide 17: ©2023 Natera, Inc. All Rights Reserved. Not for reproduction or further distribution.
® ©2023 Natera, Inc. All Rights Reserved. Not for reproduction or further distribution.