Slide 1: Natera, Inc. First quarter 2020 Earnings presentation
Natera, Inc. First quarter 2020 Earnings presentation 1 May 6, 2020 Not for reproduction or further distribution.
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 the market opportunity, produ
Slide 3: Recent highlights
Recent highlights ● Total revenues of $94M in Q1 2020, up 41% vs. Q1 2019 on strong volume growth, growing ASPs, partnership revenue ● Achieved $202 in COGS per unit: close to our long-term target of $200 ● Successful early access program for Prospera: ~45% of top 50 centers have ordered and first 1
Slide 4: Extending market leadership in Q1
Extending market leadership in Q1 • Largest sequential Q1 total processed units Q1 Revenues 250K (in thousands) ($ in millions) quarterly unit 236 $100 $94 240K growth in 18% $90 41% 230K company history $80 220K $70 $67 • Revenues driven 210K $60 200 $50 200K by volume growth, $40 190K continued AS
Slide 5: Revenue growth timeline
Revenue growth timeline Volume and ASP growth has led to acceleration in revenue Revenues ($ in millions) 94 83 78 74 67 67 62 63 65 56 49 52 52 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 5 Not for reproduction or further distribution.
Slide 6: COVID-19 update
COVID-19 update Impact of COVID-19 COVID-19 initiatives • End of March total test volume • Implemented key lab and off ~15%1 from peak Q1 2020 employee safety protocols levels, weekly volumes • Nationwide mobile blood draw consistent with Q4 2019 performed in-home (10K average draws in 2019) • New Y
Slide 7: Average risk NIPT coverage recently expanded >20M Lives
Average risk NIPT coverage recently expanded >20M Lives 7 Not for reproduction or further distribution.
Slide 8: Average selling prices and COGS momentum
Average selling prices and COGS momentum ASP: Total revenues/tests reported1 Blended COGS trajectory2 $440 $450 $416 $400 $388 $420 $404 $350 $400 $393 $395 $384 $300 $264 $380 $250 $232 $202 $200 $360 $200 $150 $340 $100 $320 $50 $300 $0 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q1 2015 Q1 2018 Q1 20
Slide 9: Transplant: Strong momentum in early access phase
Transplant: Strong momentum in early access phase Patients enrolled Accounts engaging 145 patients enrolled in ~45% of top 50 Natera’s ProActive transplant centers study: a prospective registry study for kidney by volume have transplant recipients ordered Prospera Source: Natera, Inc. internal compa
Slide 10: Prospera reimbursement pathway on track
Prospera reimbursement pathway on track ✓ Completed analytical validation ✓ Completed clinical validation ✓ Successful pre-submission meeting ✓ Obtained Z-code 2018 / 2019 ✓ Completed CLIA validation ✓ Formal LCD submission ✓ Draft LCD release ✓ Launch registry study ✓ Final MolDx LCD published 2019
Slide 11: Oncology: progress across commercial channels intact
Oncology: progress across commercial channels intact Direct channel Clinical Direct channel Pharma 100K+ clinical 1 million+ Presence patients/yr Hiring oncology Pharma BD reps genetic tests in 50+ active pharma field force 2018 in China partners Near-term goal Biopharma Final LCD for Grow contracte
Slide 12: Medicare draft LCD in colorectal cancer
Medicare draft LCD in colorectal cancer ● Est. opportunity ~1 million tests annually ● Over 85% of relapses caught too late for curative surgery1,2 Adjuvant MRD Program Surveillance Program Use Signatera after surgery to Use Signatera alongside evaluate the need for adjuvant CEA to detect recurrence
Slide 13: JCO Precision Oncology peer reviewed study published
JCO Precision Oncology peer reviewed study published “Assessment of Molecular Remission in Oligometastatic Esophageal Cancer with a Personalized ctDNA Assay” • Signatera technology used to longitudinally quantify levels of ctDNA in a patient with recurrent oligometastatic esophageal cancer • Persona
Slide 14: Extending our data leadership in MRD
Extending our data leadership in MRD Scientific Congresses Peer-reviewed publications • ASCO: 1 oral presentation on • 5 papers published expanded CRC cohort • Submitted: pan-cancer (Abstract #4009), 3 posters response prediction with • ESMO GI: 1 oral, 1 poster immunotherapy (INSPIRE) • ESMO: submi
Slide 15: CRC data and clinical development plan intact
CRC data and clinical development plan intact Clinical validation study: JAMA Oncology (Reinert et al, 2019) 130 patients, 829 plasma samples. Relapse detected up to 16.5 months earlier (avg 8.7 months earlier) than standard imaging and CEA COLUMBIA-2 trial CIRCULATE-IDEA trial Japan BESPOKE CRC tri
Slide 16: Signatera colorectal cancer – Medicare reimbursement pathway on track
Signatera colorectal cancer – Medicare reimbursement pathway on track ✓ Successful pre-submission meeting ✓ Obtained Z-code ✓ Completed clinical validation ✓ CLIA soft launch 2019 ✓ Formal LCD submission ✓ Draft LCD release ✓ Launch registry trial • Final LCD published 2020 • Final pricing 16 Not fo
Slide 17: Financial overview
Financial overview ($ in millions, except for per share data) P&L Q1’20 Q1’19 Change Product Revenues $87.0 $63.3 $23.7 Licensing and Other Revenues $7.0 $3.5 $3.5 Total Revenues $94.0 $66.8 $27.2 Gross Margin% 1 52% 35% 1,700 bps R&D $18.2 $11.4 $6.8 SG&A $65.7 $43.8 $21.9 Net Loss Per Diluted Shar
Slide 18: Conceive. Deliver. Thrive.
Conceive. Deliver. Thrive.