Genedx Holdings Corp. · NASDAQ:WGS
Genedx — Q3 2024 Earnings Presentation
34 slides from Genedx's earnings presentation, Oct 29, 2024
Slide 1: 3Q 2024 Earnings Presentation
One test. Big picture. Brighter futures. GeneDx (Nasdaq: WGS) 3Q 2024 Earnings Presentation October 29, 2024
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements under the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that do not relate to historical facts and events and such statements and opinions pertaining to the future that, for
Slide 3: WGS Q3 2024 Results
WGS Q3 2024 Results Third quarter 2024 revenue from continuing operations1 of $76.6M with 77% year-over- year revenue growth for exome and genome test revenue Expanded third quarter 2024 adjusted gross margin1,2 to 64% Achieved profitability milestone with third quarter adjusted net income1,2 of $1.
Slide 4: Revenue – strong growth driven by high value whole exome and genome
Revenue – strong growth driven by high value whole exome and genome Revenue1 Q3 2024 Increase in 3Q24 exome/genome Revenue from continuing operations $76.6M 77% revenue year-over-year; Growth year-over-year 52% +18% sequentially Growth sequentially 11% Increase in 3Q24 exome/genome Exome and genome
Slide 5: Gross profit – expansion driven by mix shift, cost per test reductions and improved reimbursement
Gross profit – expansion driven by mix shift, cost per test reductions and improved reimbursement Exome/genome can be the best test for patients. They are also best for our business. Adjusted gross margins1 from 33% Exome/genome test result volume 64% continuing operations in 3Q24, up from 48% in 3Q
Slide 6: Cash – balance sheet bolstered to execute growth strategy
Cash – balance sheet bolstered to execute growth strategy 1 Cash, cash equivalents, marketable securities and $117M restricted cash on hand at September 30, 2024 $5M 88% 10 Net use of cash for the Improvement in total company net Consecutive quarters of total company in Q3 cash burn rate year-over-y
Slide 7: 2024 Guidance Update
2024 Guidance Update Drive full year 2024 revenues1 between $284 to $290 million (previous guidance was between $255 to $265 million) Expand full year 2024 adjusted gross margin2 profile to at least 62% (previous guidance was at least 60%) Use between $60 to $65 million of net cash for full year 202
Slide 8: Appendix
Appendix Genek
Slide 9: GeneDx is a leader in improving health outcomes through genomic insights
GeneDx is a leader in improving health outcomes through genomic insights.
Slide 10: We address the costly and prolonged path to diagnosis
We address the costly and prolonged path to diagnosis The diagnostic odyssey: Endless specialist visits, ongoing mismanagement of undiagnosed disease, and expensive, ineffective and often invasive diagnostic testing Outcomes Years of avoidable expenses and still no diagnosis 1. Pre-exome standard of
Slide 11: Exome sequencing can break the cycle of misdiagnosis and uncertainty
Exome sequencing can break the cycle of misdiagnosis and uncertainty Expedited Diagnoses Improved Outcomes Reduced Costs Starting with the most vulnerable patients $30,000 per case average savings1* Rapid results Patient retention ✓ ✓ Patient Tests ordered $6,800 savings Patients connected Healthier
Slide 12: Exome sequencing is a cost-effective solution to avoid the diagnostic odyssey
Exome sequencing is a cost-effective solution to avoid the diagnostic odyssey A look at the average diagnostic odyssey 3 misdiagnoses1 5 uninformative tests3 years to an in additional 6+ >$10k accurate diagnosis2 healthcare costs3 >70% have a change in management with a genetic diagnosis4 1. Genetic
Slide 13: GeneDx offers leading exome and genome products
GeneDx offers leading exome and genome products Translating complex genomic data into definitive diagnoses for patients • Genome sequencing – Analyzes the entirety of an individual’s DNA, which is known as the genome. The genome includes ~20,000 genes. • Exome sequencing – Analyzes the protein codin
Slide 14: Changing the perception of exome and genome sequencing
Changing the perception of exome and genome sequencing GeneDx has spent over a decade solving for limitations of the past and differentiating our products Then GeneDx Now “These tests take months to get results” “I can get results in days to weeks” Turnaround time “These tests are wildly expensive”
Slide 15: Patients we serve today are difficult to diagnose and have complex needs
Patients we serve today are difficult to diagnose and have complex needs Patients typically have 2+ of the indications below o Congenital abnormalities (birth defects) o Significant Intellectual disability o Global developmental delay o Seizures/epilepsy o Failure to thrive or other growth concerns
Slide 16: Exome sequencing offers greater diagnostic yields vs. other technologies
Exome sequencing offers greater diagnostic yields vs. other technologies 1. Savatt JM et al. Front Pediatr. 2021;9:526779. 2. Srivastava S et al. Genet Med. 2019;21(11):2413–2421. 3. Pekeles H et al. Pediatr Neurol. 2019;92:32-36. 4. Stefanski A et al. Epilepsia. 2021;62(1):143-151. 5. Mellone S et
Slide 17: GeneDx is positioned to enable a data-informed future for healthcare
GeneDx is positioned to enable a data-informed future for healthcare.
Slide 18: New market expansion enables us to serve more patients
New market expansion enables us to serve more patients GeneDx is starting with a focus on rare disease and pediatrics and then expanding into larger markets Rare Disease Newborn Adults: $16B & Pediatrics: $3B Screening: $10B Rapidly growing patient Currently participating in Expanding into adult mar
Slide 19: We're focused on the Rare Disease & Pediatrics market today
We're focused on the Rare Disease & Pediatrics market today Outpatient Inpatient Target Clinicians: o Geneticists Target Clinicians: o Pediatric Neurologists o Geneticists o Developmental Pediatricians o Neonatologists o Pediatricians (long-term) Products: Products: o Primarily rapid whole o Prima
Slide 20: Payor coverage for exome and genome sequencing is expanding
Payor coverage for exome and genome sequencing is expanding 〉 GeneDx is contracted with over 80% of covered lives, including all large national commercial payers 〉 Medicaid and commercial insurance coverage continues to grow for exome and genome o 30 states cover exome or genome sequencing • In Q3,
Slide 21: Medicaid programs across the country are expanding access
Medicaid programs across the country are expanding access Current Medicaid Coverage Landscape Whole Exome or Whole Genome Sequencing Rapid Genome Sequencing Both No Coverage New or Enhanced Coverage 21 Data through October 2024.
Slide 22: Medical practice guidelines recommend exome and genome sequencing for patients
Medical practice guidelines recommend exome and genome sequencing for patients ACMG Practice Guideline1: “Strong recommendation based on the available evidence to support the use of ES/GS as either a first- (or second-) line test in patients …. ES/ GS demonstrates clinical utility for the patients a
Slide 23: Pay-it-forward data strategy
Additional Additional ore answ ers patients patients for patients tested providers tested Pay-it-forward mproved igher interpretation data strategy diagnostic yield platform fewer S For every patient that we test, our ore underlying interpretation platform answ ers for patients gets smarter, and we
Slide 24: Data is at the center of our business
Data is at the center of our business Our huge dataset and intelligent interpretation platform set us apart and fuel innovation Advanced interpretation platform Simplifies complex genomic data >700K sequenced exomes Significant clinical and Reduces variants of genomic data unknown significance Fuels
Slide 25: Common diseases are in fact a constellation of genetic diagnoses
Common diseases are in fact a constellation of genetic diagnoses One example is epilepsy. At least 768 different genes are related to seizures. Only 43% are tested on many commercial epilepsy panels 25 Butler L. et al. Exome-based testing for patients with seizures: Advantages over panel-based testi
Slide 26: Common diseases are in fact a constellation of genetic diagnoses
Common diseases are in fact a constellation of genetic diagnoses One example is epilepsy. At least 768 different genes are related to seizures. Only 43% are tested on many commercial epilepsy panels Exome sequencing checks all 768 genes 26 Butler L. et al. Exome-based testing for patients with seizu
Slide 27: We are translating our leadership in exome and investing in a genome future
We are translating our leadership in exome and investing in a genome future We've improved solutions for our providers to deliver the best patient care Integrating with Epic Aura (2025) Improving WGS products Expanding access by integrating into existing Adding repeat expansions to increase diagnost
Slide 28: 1 in 3 babies in the NICU is likely to have a genetic condition
1 in 3 babies in the NICU is likely to have a genetic condition that could be diagnosed with rWGS1 Cost associated with NICU/PICU care for these babies with genetic disease is over 50% of the US pediatric inpatient health spend 2,3 We are demonstrating the clinical and economic utility of rWGS throu
Slide 29: Today, we shorten the diagnostic journey. Tomorrow, we hope to prevent it.
Today, we shorten the diagnostic journey. Tomorrow, we hope to prevent it.
Slide 30: The GUARDIAN study is proving we can implement genomic newborn screening at scale
The GUARDIAN study is proving we can – and should – implement genomic newborn screening at scale GUARDIAN is using GeneDx genome sequencing to screen 100,000 newborns for 400+ actionable genetic conditions not currently included in traditional newborn screening Published in JAMA, the Journal of the
Slide 31: GeneDx's data-driven solutions help advance new therapies across the drug development pipeline
GeneDx’s data-driven solutions help to advance new therapies across the drug development pipeline – quickly and more cost-effectively Optimize clinical trials Accelerate drug discovery process Quickly identify and recruit patients, stratify study Quickly discover new biomarkers and drug targets for
Slide 32: One test. Big picture. Brighter futures.
One test. Big picture. Brighter futures. 32
Slide 33: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Adjusted Gross Profit and Adjusted Gross Margin Three months ended September 30, Three months ended June 30, 2024 2023 2024 Legacy Legacy Legacy GeneDx Total GeneDx Total GeneDx Total Sema4 Sema4 Sema4 Revenue $ 76,622 $ 252 $ 76,874 $ 50,350 $ 2,953 $ 5
Slide 34: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Adjusted Net Income Three months ended September 30, 2024 Net loss $ (8,312) Reconciliations: Depreciation and amortization expense 5,929 Stock-based compensation expense 3,636 Restructuring costs 369 Change in fair value of financial liabilities 880 Oth