Natera, Inc. · NASDAQ:NTRA
Natera — Q4 2020 Earnings Presentation
16 slides from Natera's earnings presentation, Feb 25, 2021
Slide 1: Natera, Inc. Investor presentation Q4 2020 earnings call
Natera, Inc. Investor presentation February 2021 Q4 2020 earnings call
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 • Processed 295,000 Q4 tests, 41% YoY unit growth versus Q4 2019 • Total revenues of ~$112M, exceeding previous guide. Product revenue up 43% vs Q4 2019 • Strong momentum in average risk NIPT coverage and exceeded expectations in SMART trial • Signatera pharma business accelerating
Slide 4: Q4 volume: Fastest net unit growth in Natera history
Q4 volume: Fastest net unit growth in Natera history Total processed units (in thousands) 295K • Strong market 262K share gains in Women’s 236K 234K Health 209K 200K 194K 200K • Continued 174K progress in 164K 163K 167K Transplant and Oncology Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2018 2018 2018
Slide 5: Q4 revenues exceed previous guide
Q4 revenues exceed previous guide Total revenues Product revenues1 ($ in millions) ($ in millions) • Volume-out 35% $112 performance 43% $106 combined with 24% $83 improving 24% $74 ASPs $67 $54 • New products gaining momentum Q4 2017 Q4 2018 Q4 2019 Q4 2020 Q4 2019 Q4 2020 1. Excludes licensing and
Slide 6: SMART trial results exceed expectations
SMART trial results exceed expectations Study results Future impact NIPT: Drive market share: • Largest prospective trial ever conducted • Best in class performance • 99% sensitivity / 99.97% specificity in Trisomy 21 • Most extensively validated • Panorama AI algorithm reduces no calls to 1.46% • H
Slide 7: Well positioned to serve >4.5 million pregnancies
Well positioned to serve >4.5 million pregnancies • 2M+ tests performed • 1.3M+ patients studied • 23 peer reviewed publications • 9 points of clinical differentiation Source: Natera internal company data 7 Not for reproduction or further distribution.
Slide 8: Expanding Oncology TAM opportunity
Expanding Oncology TAM opportunity ctDNA / liquid biopsy Early Monitoring/MRD Therapy selection detection $15B $6B Source: internal company estimates 8 Not for reproduction or further distribution.
Slide 9: Launch of Altera CGP for therapy selection
Launch of Altera CGP for therapy selection Altera key features Seamless integration with Signatera Tumor WES Custom assay design ctDNA analysis • Comprehensive genomic profile (CGP) identifying mutations across full exome, with boosted >500x NGS coverage in top 400+ clinically relevant genes • RNAse
Slide 10: Signatera IO monitoring with Altera
Signatera IO monitoring with Altera Regimen A Regimen B CT #1 CT #2 CT #3 ● > 200,000 patients treated with immunotherapy (IO) annually, mostly with advanced disease SignateraTM ● IO eligibility often depends on CGP analysis, to identify therapeutically actionable mutations, TMB, MSI ● Clinically in
Slide 11: Acceleration in Pharma business, ~$120M signed to date
Acceleration in Pharma business, ~$120M signed to date Value of new signed contracts Average deal size getting larger, including >$65M multiple phase 3 trials with patient volume and development fees Two key benefits for pharma: $46M 1. Study enrichment: treating only MRD-positive patients, for high
Slide 12: Phase IMvigor study proved that Signatera is predictive of treatment benefit
Phase 3 IMvigor study proved that Signatera is predictive of treatment benefit in the adjuvant setting Background: Overall survival in MIBC patients treated with adjuvant atezolizumab vs. observation1 • GNE-sponsored, PhIII randomized controlled trial of atezo vs. obs in adjuvant bladder cancer. Pre
Slide 13: Extending our industry leadership in MRD
Extending our industry leadership in MRD 2K patients studied with leading pan-tumor sensitivity and specificity 8 clinical studies published 50+ studies in pipeline >$65M 1. CRC – Reinert et al (JAMA Oncology) • Breast • Colorectal 2. IO pan-cancer – Bratman et al (Nature Cancer) • Melanoma • Lung 3
Slide 14: Q4 Financial overview
Q4 Financial overview ($ in millions, except for per share data) P&L Q4’20 Q4’19 Change Product Revenues $106.5 $74.5 $32.0 Licensing and Other Revenues $5.9 $8.7 ($2.8) Total Revenues $112.4 $83.2 $29.2 Gross Margin% 1 47% 47% 13 bps R&D $32.4 $15.0 $17.4 SG&A $94.1 $58.6 $35.5 Net Loss Per Diluted
Slide 15: 2021 Annual guidance
2021 Annual guidance Guide $ (millions) Key drivers Continued volume growth, conservative ASPs, growing Revenue $500 – $525 contribution from new products Conservative ASP assumptions, COGS improvement, Gross margin % revenue 47% – 52% product revenues higher proportion of revenue mix vs. 2020 SG&A
Slide 16: Not for reproduction or further distribution. Natera, Inc. Inc.
©2020 Natera, Inc.Inc. All Rights Reserved. NotNot for reproduction or further distribution. 16 Not for reproduction or further distribution. ©2021 Natera, All Rights Reserved. for reproduction or further distribution.