Slide 1: Natera, Inc. Q2 2021 Earnings Call
Natera, Inc. Investor presentation Q2 2021 Earnings call
Slide 2: Forward-looking statements
2 Not for reproduction or further distribution. 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 our
Slide 3: Recent highlights
3 Not for reproduction or further distribution. Recent highlights ● Fastest year-on-year volume and revenue growth quarter since the IPO: – 376,000 tests processed in Q2, 61% growth vs Q2 2020 – Total revenues of $142M, 64% growth vs Q2 2020 – Product revenues of $137M, up 71% vs Q2 2020 ● Increasin
Slide 4: Record Q2 volume of 376,000 units
4 Not for reproduction or further distribution. ● ~ 61% volume growth over Q2 2020 ● Strong market share gains in Women’s Health ● Continued momentum in Transplant and Oncology Record Q2 volume of 376,000 units Total processed units (in thousands) 163K 167K 174K 200K 195K 200K 209K 236K 234K 262K 29
Slide 5: Accelerating revenues
5 Not for reproduction or further distribution. Accelerating revenues 1. Excludes licensing and other revenues $80 Q2 Q2 Product revenues1 ($ in millions) 2020 2021 71% $137 $54 $63 $74 $87 $142 Q2 2017 Q2 2018 Q2 2019 Q2 2020 Q2 2021 17% 17% 64% 18% Total revenues ($ in millions) ● Volume-out perfo
Slide 6: Head-to-head study in Transplantation
6 Not for reproduction or further distribution. Head-to-head study in Transplantation Reports Other dd- cfDNA test Prospera test Sensitivity 4 out of 6 5 out of 6 Antibody-mediated rejection 1 out of 1 1 out of 1 T cell-mediated rejection 3 out of 5 4 out of 5 Single center study at UCLA1 ● Compared
Slide 7: Multi-organ transplant rejection testing
7 Not for reproduction or further distribution. Multi-organ transplant rejection testing Simultaneous pancreas-kidney use case Data presented at ATC ● ~8% of kidney transplants are multi- organ transplants1 ● 15% of simultaneous pancreas-kidney recipients will experience a rejection of their kidney
Slide 8: Prospera pathway to multiple organs
8 Not for reproduction or further distribution. Prospera pathway to multiple organs ● LCD covers broad range of solid organ transplants for dd-cfDNA testing ● Creates accelerated pathway to reimbursement for Prospera test beyond kidney transplants
Slide 9: Oncology evidence generation advancing
9 Not for reproduction or further distribution. Oncology evidence generation advancing Disease-free survival Overall survival Sensitivity Specificity PPV/NPV Predictive of treatment benefit Prospective Outcomes Data Validation Data
Slide 10: CIRCULATE-IDEA – large prospective MRD study
10 Not for reproduction or further distribution. CIRCULATE-IDEA – large prospective MRD study1 Months after surgery DFS First prospective CRC study reporting disease free survival in a real-world setting 0 20 40 60 80 100 0 2 4 6 8 10 Negative Positive ctDNA HR =19.5 95% CI, 7.9 to 47.8; P < .001 Se
Slide 11: Post-operative Management of Stage III CRC Patients Using Signatera
11 Not for reproduction or further distribution. Post-operative Management of Stage III CRC Patients Using Signatera ● Today, almost all stage III CRC patients get adjuvant chemotherapy, despite ~50% cured by surgery alone1 − Current Signatera utility helps guide 3 vs 6 months ACT strategies ● CIRCU
Slide 12: Overall survival based on post-surgery MRD status
12 Not for reproduction or further distribution. 1. Loupakis et al. Detection of molecular residual disease using personalized circulating tumor DNA assay in patients with colorectal cancer undergoing resection of metastases. JCO Precision Oncology. 2021 MRD-negative MRD-positive HR, 16.0; 95% CI, 3
Slide 13: Prospective overall survival data in adjuvant MIBC
13 Not for reproduction or further distribution. Prospective overall survival data in adjuvant MIBC 1. Powles T, Assaf ZJ, Davarpanah N, et al. ctDNA guiding adjuvant immunotherapy in urothelial carcinoma. Nature. 2021. 2. https://clinicaltrials.gov/ct2/show/NCT04660344?term=imvigor+011&draw=2&rank=
Slide 14: ZEST Registrational Companion Diagnostic Trial
14 Not for reproduction or further distribution. ZEST Registrational Companion Diagnostic Trial1 1. https://clinicaltrials.gov/ct2/show/NCT04915755 About the ZEST trial ● Randomized phase III trial evaluating Niraparib (Zejula) in early-stage BC patients using Signatera as a companion diagnostic ● S
Slide 15: Breakthrough Device Designations and ADLT designation
15 Not for reproduction or further distribution. Breakthrough Device Designations Signatera awarded ADLT designation Ÿ Breakthrough helps clear regulatory pathway to support biopharma studies Breakthrough device designation by the FDA – 3 total Ÿ Finalized a local coverage determination (LCD) to pro
Slide 16: Oncology MRD market opportunity – tests per year
16 Not for reproduction or further distribution. Oncology MRD market opportunity – tests per year Stage II-III CRC IO response monitoring CRC oligomet Adjuvant MIBC Neo-adjuvant breast Ovarian Multiple myeloma Esophageal Total Indications in pipeline ~4M ~13M Total Source: internal estimates Tests p
Slide 17: Q2 Financial overview
17 Not for reproduction or further distribution. Q2 Financial overview ($ in millions, except for per share data) Balance sheet Pro Forma4 Jun 30, 2021 Mar 31, 2021 Change Q/Q Cash & Investments2 $1,131.5 $580.5 $653.7 ($73.2) UBS Line of Credit $50.0 $50.0 $50.1 ($0.1) Convertible Senior Notes3 $27
Slide 18: Raising 2021 annual guidance
18 Not for reproduction or further distribution. Raising 2021 annual guidance Guide $ (millions) Original Q1 Guide Current Key drivers Revenue $500 – $525 $550 – $575 $600 – $620 Volume acceleration Gross margin % revenue 47% – 52% 52% – 55% 52% – 55% Strong women’s health margins balanced by growth
Slide 19: All Rights Reserved. All Rights Reserved.
19 Not for reproduction or further distribution. ©2020 Natera, Inc. All Rights Reserved. Not for reproduction or further distribution. ©2021 Natera, Inc. All Rights Reserved. Not for reproduction or further distribution.