Quest Diagnostics Incorporated · NYSE:DGX
Quest Diagnostics — Investor Day (March 2023)
15 slides from Quest Diagnostics's investor day presentation, Mar 16, 2023
Slide 1: Molecular Genomics and Oncology
Molecular Genomics and Oncology Mark Gardner Senior Vice President, Molecular Genomics & Oncology
Slide 2: Safe Harbor Disclosure
SAFE HARBOR DISCLOSURE The statements in the following presentations which are not historical facts may be forward looking statements. Readers are cautioned not to place undue reliance on forward looking statements, which speak only as of the date that they are made and which reflect management’s cu
Slide 3: Key highlights
Advancements in Next Generation Sequencing (NGS) are changing the genomics market, favoring those with scale Key highlights Our clinical expertise, combined with our infrastructure, position us to compete in genomics and oncology We generate $1B+ in oncology revenue and will strengthen our position
Slide 4: Rapid technology change and broader adoption will drive large market expansion
Rapid technology change and broader adoption will drive large market expansion PROJECTED GERMLINE AND SOMATIC TESTING MARKET ~$30B ~10% CAGR $11B Key drivers: ~$15B • Lower cost of sequencing Germline $4B • More favorable $19B reimbursement Somatic • Synergy with (cancer) $11B precision therapeutics
Slide 5: Today, most testing is performed on gene panels; we expect the market will shift to whole genome sequencing
Today, most testing is performed on gene panels; we expect the market will shift to whole genome sequencing Single Gene Gene Panels Whole Exome Whole Genome ~1,000-10,000 ~100,000-1M 20,000 Genes 20,000 Genes Base pairs Base pairs ~40M Base pairs ~3B Base pairs Germline - Inherited BRCA Hereditary c
Slide 6: The $100 genome is a tipping point for those with scale
The $100 genome is a tipping point for those with scale Cost of testing by NGS methodology by year COST IN 2022 COST IN 2024 $1,200 $1,200 $1,000 $1,000 $800 $800 $600 $600 $400 $400 $200 $200 $0 $0 100 Gene Panel Whole Exome Whole Genome 100 Gene Panel Whole Exome Whole Genome Sample Acquisition Sa
Slide 7: Investments in clinical expertise and genomics, combined with our infrastructure, will support growth
Investments in clinical expertise and genomics, combined with our infrastructure, will support growth for Quest and external partners GENOMIC SEQUENCING SERVICES Hardware Platforms Software Platforms Collection Automation Analytics Workflow Mgmt User / Customer Extraction Biobank Sequencing Data Exp
Slide 8: We've built a team of industry leaders in genomics
We’ve built a team of industry leaders in genomics… …who joined us from: Ancestry.com Jim Tina Sarah Ray Jussi Godsey, Ph.D. Hambuch-Hawks, Ph.D. South, Ph.D. Veeraraghavan, Ph.D. Paananen, Ph.D. Broad Institute Vice President, Medical Director, Exec Director, Exec Director, Advanced Exec Director,
Slide 9: We generate $1B+ in oncology revenue and will leverage our leadership in pathology
We generate $1B+ in oncology revenue and will leverage our leadership in pathology to win in therapy selection and liquid biopsy Revenue ~1-2% CAGR ~$9.5B 20%+ ~1-2% 12-16% 6-8% ~1-2% ~$1.5B ~$1.5B 20%+ ~$1.4B ~$1.3B ~$1.2B ~$0.8B Genetic GenericRisk CRC/MCED CRC/MCED OtherOther Screening Diagnosis/
Slide 10: Digital pathology requires traditional tissue preparation, but enables significant changes in network operations
Digital pathology requires traditional tissue preparation, but enables significant changes in network operations COMPARISON BETWEEN MANUAL AND DIGITAL PATHOLOGY Traditional Pathology Workflow Tissue preparation Transport glass slide Analyze slide in lab Patient diagnosis Digital Pathology Workflow C
Slide 11: Technology unlocks incremental value in the tissue block
Technology unlocks incremental value in the tissue block Digital pathology and AI strengthen our leadership position in anatomic pathology WORKFLOW COMPUTATIONAL DIAGNOSIS PROGNOSTICS BIOMARKER SUPPORT PATHOLOGY DISCOVERY Triage, prioritization, Identification and Utilization of FDA Breast prognosti
Slide 12: Precision medicine depends heavily on genomic sequencing and fast turnaround time (TAT)
Precision medicine depends heavily on genomic sequencing and fast turnaround time (TAT) RETROSPECTIVE STUDY OF 525 NEWLY DIAGNOSED STAGE IV NSCLC THE PATIENTS ARE WAITING PATIENTS HARBORING ACTIONAL ONCOGENIC DRIVERS1,2 FROM TO Genomic sequence DAYS DAYS plus targeted therapy Quest drove TAT to 15.8
Slide 13: We have multiple options for entering new categories like therapy selection and MRD testing
We have multiple options for entering new categories like therapy selection and MRD testing License and create Develop organic Acquire new Leverage suppliers’ Offer other test innovation from innovations via capabilities to innovations send out options third party IP internal R&D extend portfolio Ex
Slide 14: Why MRD companies want to work with us
Why MRD companies want to work with us Sample Physician Physician Tissue sample Blood sample analysis & Test result Test awareness/ orders collected & collected result reported reimbursement education MRD test processed generated Quest Synergies Infrastructure (e.g., tissue National Payer Commercial
Slide 15: Key takeaways
Advancements in Next Generation Sequencing (NGS) are changing the genomics market, favoring those with scale Key takeaways Our clinical expertise, combined with our infrastructure, position us to compete in genomics and oncology We generate $1B+ in oncology revenue and will strengthen our position b