Caredx, Inc. · NASDAQ:CDNA
Caredx — The 36th Annual Piper Sandler Healthcare Conference (December 2024)
23 slides from Caredx's conference presentation, Dec 4, 2024
Slide 1: The Transplant Solutions Company
The Transplant Solutions Company Click to edit Master title style Click to edit Master text styles •D E C E M B E R 4 , 2 0 2 4 Patrick G, Kidney Transplant Recipient
Slide 2: Safe Harbor Statement
Safe Harbor Statement These slides and the accompanying oral presentation contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of histor
Slide 3: Experienced Executive Leadership to Drive Profitable Growth
Experienced Executive Leadership to Drive Profitable Growth 650 CareDx Employees Globally 180 Commercial Employees John Hanna President & CEO Keith Kennedy Chief Operating Officer Jessica Meng Chief Commercial Officer Abhishek Jain Chief Financial Officer Headquartered in South Supporting our San Fr
Slide 4: CareDx is the Established Solutions Provider to Transplant Centers
CareDx is the Established Solutions Provider to Transplant Centers $50B Transplant Services Market ~1M Rejection Monitoring Tests Performed 70% Centers Use One Or More Software Products 46K Transplants Annually ~200K HLA Typing Kits Sold Annually 150K Rx Filled Annually by Transplant Pharmacy Source
Slide 5: CareDx Q3 2024 Financial Highlights
CareDx Q3 2024 Financial Highlights TESTING NON-GAAP ADJUSTED REVENUE CASH BALANCE VOLUME GROSS MARGIN1 EBITDA Q3 2024 $82.9 ~44,600 69% $6.9M $241 million positive million YEAR- 23% 16% +240 +$17.9M -$27.3 OVER-YEAR increase increase basis points million 1. GAAP Gross Margin in Q3 2024 was 67%, as
Slide 6: Achieved Fifth Consecutive Quarter of Testing Services Volume Growth Across All Organs
Achieved Fifth Consecutive Quarter of Testing Services Volume Growth Across All Organs +16% +2% +4% +6% +4% +2% 49.9k 43.7k 44.6k 39.9k 42.1k 37.5k 38.4k Q1 20231 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 1. Drop in Testing Services volume from Q1 2023 to Q2 2023 due to the impact of Billing A
Slide 7: Revised 2024 Guidance
Revised 2024 Guidance Guide Assumptions July 2024 November 2024 Total Revenue $320M - $328M $327M – $331M Testing Services Testing Services • Volume to grow high teens and revenue to grow in mid twenties • Volume to grow mid teens and implied revenue growth of 30% year- year-over-year in second half
Slide 8: Building Blocks of Growth
Building Blocks of Growth 4 PRODUCT PIPELINE 3 PATIENT ADHERENCE 2 CUSTOMER ADOPTION 1 TRANSPLANT VOLUME 8
Slide 9: Forces Driving Transplant Volume Growth
1 T R A N S P L A N T VO LU M E Forces Driving Transplant Volume Growth 11% Heart Transplant Annual Growth Growing government efforts are working to expand transplantation access 7% Kidney Transplant Annual Growth IOTA Model Increasing Organ Transplant Access Technological advances 12% are improving
Slide 10: Synergistic Portfolio Drives Customer Adoption
2 C U S TO M E R A D O P T I O N Synergistic Portfolio Drives Customer Adoption ORGAN MATCHING/WAIT LISTING CARE QUALITY/SYSTEM EFFICACY GRAFT HEALTH SOLUTIONS ACROSS PATIENT JOURNEY LAB PRODUCTS TRANSPLANT CENTER PATIENT DX & SOLUTIONS § HLA Typing § Transplant EMR § Remote Monitoring § Lab Managem
Slide 11: Multi-Solution Accounts Generate 2x Testing Services Revenue
2 C U S TO M E R A D O P T I O N Multi-Solution Accounts Generate 2x Testing Services Revenue < 3 S OLUTI ONS 29% $600K Average new transplant Average transplant center Accounts that have 3 or more patient acquisition for testing revenue from testing CareDx solutions have higher 3+ S OLUTI ONS 2x av
Slide 12: Opportunity to Improve Patient Adherence
3 PAT I E N T A D H E R E N C E Opportunity to Improve Patient Adherence Number of tests/patient per Current number of tests/patient center protocol in first 3 years in first 3 years 15 7 KIDNEYS 38 24 HEART 20 10 LUNGS Sources: Protocol calculations based on: Heart HARTS protocol is 11, 4, 4; Kidne
Slide 13: Pipeline Fuels Additional Growth
4 PRODUCT PIPELINE Pipeline Fuels Additional Growth 2025 2026 Expanded Indications AlloSure SPK AlloSure Heart PEDS Launch New Dx AlloMap Kidney HistoMap UroMap 13
Slide 14: Evidence Strategy Drives Coverage Growth
Evidence Strategy Drives Coverage Growth B C B S F E D E R A L E M P L OY E E S ~90% AlloMap Heart ~40% AlloSure Heart POLICY: Positive coverage for AlloSure Heart Covered Lives Covered Lives STUDY: HeartCare SHORE data, J Heart Lung Launched 2006 / Medicare Coverage 2006 Launched 2018 / Medicare Co
Slide 15: Continuing to Build Evidence for Transplant Monitoring Assays
Continuing to Build Evidence for Transplant Monitoring Assays GENERATING EVIDENCE PRIMARY STUDY STUDY COMPOSITION § Pediatrics Validation § >2,700 patients § 5-year Survival SHORE § 5-year follow-up HEART § Directing Therapeutic Treatment § 67 sites, HARTS protocol § Procedure Decision Making KOAR §
Slide 16: Charting a Path to Profitable Growth and Strategic Capital Allocation
Charting a Path to Profitable Growth and Strategic Capital Allocation 2027 Financial Targets PROFITABLE GROWTH PROFITS AND CASH CAPITAL ALLOCATION § M&A $500M 20% § Invest in Core 2027 Revenue Target 2027 Adjusted Business EBITDA Target § Share Buyback 15% +$100M 3-Year Revenue CAGR Target 3-Year In
Slide 17: Extending Beyond Solid Organ Transplant Monitoring
Extending Beyond Solid Organ Transplant Monitoring 5,600 Autologous and allogeneic cell therapy 70% Cancer (Blood and Solid Tumors) 10% Autoimmune Disorders registered clinical trials globally 20% Other (e.g., Diabetes, Viral) 220 Hematopoietic and bone marrow transplant Cell Transplant: Hematopoiet
Slide 18: Two Products Addressing Critical Unmet Need
Two Products Addressing Critical Unmet Need ALLOCELL MONITORS IMMUNE CELL THERAPY ALLOHEME DETECTS CANCER RELAPSE POST-CELL TRANSPLANT PHARMACOKINETICS Analyzes cells in blood Contraction Standard of Care SOC Relapse Detection Number of Cancer Cells % Cell Product Expansion Persistence Infusion 2 we
Slide 19: Activating Our Strategy
Activating Our Strategy PUT IN PLACE THE RIGHT TEAM IDENTIFIED THE MARKET OPPORTUNITIES LAUNCHING INNOVATIVE SOLUTIONS TO RESOLVE UNMET MEDICAL NEEDS 19
Slide 20: The Transplant Solutions Company
The Transplant Solutions Company C O N TA C T U S INVESTOR RELATIONS CORPORATE HQ Greg Chodaczek 8000 Marina Blvd, investor@caredx.com Brisbane, CA 94005 Click to edit Master title style MEDIA RELATIONS Click to edit Master text styles Anna Czene aczene@caredx.com Kristin J, Stem Cell and Double Lun
Slide 21: Appendix
Appendix » §CareDx an
Slide 22: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA in millions USD Q3 Q4 Q1 Q2 Q3 2023 2023 2024 2024 2024 GAAP Net Loss (23.5) (118.1) (16.7) (1.4) (7.4) Stock-based compensation expense 12.7 10.0 13.3 13.2 13.7 Unrealized loss (gain) on investments 0.3 - - - - Realized gain on investments - (1.5) - - - Acquisition
Slide 23: Reconciliation of Non-GAAP Gross Margin
Reconciliation of Non-GAAP Gross Margin Q3 Q4 Q1 Q2 Q3 in millions USD (except %) 2023 2023 2024 2024 2024 Revenue 67.2 65.6 72.0 92.3 82.9 GAAP Cost of Revenue 24.5 25.8 25.9 28.0 27.6 GAAP Gross Profit 42.7 39.8 46.1 64.3 55.3 GAAP Gross Margin % 64% 61% 64% 70% 67% Non-GAAP Expense: Stock-based c
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