Caredx, Inc. · NASDAQ:CDNA
Caredx — Investor Presentation (January 2023)
28 slides from Caredx's investor presentation, Jan 9, 2023
Slide 1: Corporate Presentation: January 2023
Focused on improving care across the entire transplant patient journey The Transplant Company™ Corporate Presentation: January 2023 Exhibit 99.2
Slide 2: Safe Harbor Statement
Safe Harbor Statement These slides and the accompanying oral presentation contain forward-looking statements. All statements other than statements of historical fact contained in this presentation, including statements regarding the future financial position of CareDx®, Inc. (together with its subsi
Slide 3: Our Mission and Vision
Our Mission We are committed to improving long-term outcomes by providing innovative solutions throughout the entire transplant patient journey Our Vision The leading partner for the transplant ecosystem Your Partner in Transplant Care
Slide 4: Vision: The Leading Partner Across Transplant Centers
Vision: The Leading Partner Across Transplant Centers Example: US Centers Clinical Partnerships** Deep Center Penetration* Leadership Indicators** KIDNEY 70+ KOAR/OKRA Centers 75%+ Centers Using AlloSure 1 in 3 Newly Transplanted Patients HEART 60+ SHORE Centers 90%+ Centers Using HeartCare > 1 in 2
Slide 5: Mission: Connecting the Transplant Patient Journey
Mission: Connecting the Transplant Patient Journey Example: Kidney Patient Pre-Transplant Dialysis Referral / Waitlist for Tx High Resolution HLA matching Digital Products Peri-Tx Products Post-Transplant Surveillance “Liquid Biopsy” dd-cfDNA “AI” Risk Prediction Gene Expression Profiling (GEP) In D
Slide 6: Strategy 1: Build Deep Ecosystem Moat Around Transplant Centers
Strategy 1: Build Deep Ecosystem Moat Around Transplant Centers TRANSPLANT CENTERS TRANSPLANT ECOSYSTEM RemoTraC® Phlebotomy Field Lab Service Team (FLSR) 3 Community Nephrology Team Transplant Account Specialists (TAS) 2 “We are 100% Transplant Focused. Always. ” Transplant Coordinator Assistants P
Slide 7: Strategy 2: Build Leadership in the Ecosystem
Post Transplant Biomarkers1 Strategy 2: Build Leadership in the Ecosystem Building Blocks Leadership across the patient journey Electronic Medical Records6 Quality & Analytics3 Transplant focused App4 Medication Discharge2 CareDx is #1 CareDx is #1 CareDx is #1 CareDx is #2 CareDx is #2 Over 100,000
Slide 8: Strategy 3: Build Across Multiple Transplants TAMs
Grow Testing Services Business $4B+ (Kidney, Heart), $1B+ (Liver, Lung) ~$5B+ TAM* Expand Testing Products Business AlloSeq (cfDNA, Tx17, HCT) franchise ~$1B+ TAM* Establish the Digital Business AlloCare®, MedActionPlan®, Ottr®, XynQAPI®, XynCare®, TransChart®, Tx Access™, TxHero ~$1B+ TAM* $12B+ TA
Slide 9: Overall Strategic Roadmap: Be All Things Transplant
Grow Beyond AlloMap Be All Things Transplant Develop Multiple Innovation Platforms Solid Organ Stem Cell Cell Transplant Therapy 2016 - 2020 2021 - 2025 2026 - Beyond CareDx’s Overall Strategic Roadmap: Be All Things Transplant Expand from the Center Advance Next Wave of Innovations Build other busi
Slide 10: COVID Impacted Recent Market Volume Trends
COVID Impacted Recent Market Volume Trends Source: UNOS Monthly Extended time for Recovery
Slide 11: Kidney Transplant Recovery Driven by Deceased Donors
Kidney Transplant Recovery Driven by Deceased Donors Source: UNOS Weekly Pre-COVID up to Q1, 2020 COVID no Vaccines (Vx) Vx to Omicron Early Recovery Stages
Slide 12: Transplant Volume Expected to Double in 5-10 Years
Potential for Transplant Volume Expected to Double in 5-10 Years* Drivers of Market Growth in 5 years+ Return to historical high single digit growth post COVID Incremental drivers Increase use of high risk and marginal organs Increase organs with perfusion and improved transport and tracking Increas
Slide 13: Q4, 2022 Financial and Operational Highlights
Q4, 2022 Financial and Operational Highlights Common stock buy back started Up to $50M approved over 2 years Financial Strength 47,700 Tests Up 3% sequentially and 14% y/y Volume Growth $81.9-82.2M Up ~4% y/y Collections improving Revenues and collections ISHLT Guidelines published Support for AlloM
Slide 14: Continued Focus on Gross Margin Improvement
Continued Focus on Gross Margin Improvement Target GAAP Gross Margin: FY21 = 67%, and YTD Q3, 2022 =65% Non-GAAP Gross Margin* FY21 = 70%, and YTD Q3, 2022 =68% ~70% FY 2021 ~68% YTD Q3, 2022 75%+ Testing Volume Lab Automation Private Payer Reimbursement Multi-modality Reimbursement Tx Pharmacy Acqu
Slide 15: 2023 Focus: Catalysts, Coverage, Collections
2023 Focus On The Three C’s - Catalysts, Coverage, Collections Drive Leadership into Solid Organ Transplants Pipeline Catalysts Leverage Best in Class Data and Clinical Utility and Guidelines Increasing Coverage Infrastructure built to address prior authorizations and denials/ appeals Improving Coll
Slide 16: Key Pipeline Catalysts
Key Pipeline Catalysts Proven stable platform Signature has to be changed since discovery and NEJM. Other unstable approaches need to modify algorithm to fit current data Differentiated utility Rejection + BK Nephropathy Robust validation Clinical validation in multiple publications with NEJM as cor
Slide 17: Artificial Intelligence Core Part of Pipeline Development
Artificial Intelligence (AI) Core Part of Pipeline Development AlloView Adds Another layer of Utility to AlloSure Surveillance Prognostic algorithm (integrated >10 centers) Predictive algorithm (Integrated >10 centers) Incorporates Source: Publications and data on file
Slide 18: 2023 Focus: Catalysts, Coverage, Collections
2023 Focus On The Three C’s - Catalysts, Coverage, Collections Drive Leadership into Solid Organ Transplants Pipeline Catalysts Leverage Best in Class Data and Clinical Utility and Guidelines Increasing Coverage Infrastructure built to address prior authorizations and denials/ appeals Improving Coll
Slide 19: Testing Services – ASP Has Not Changed on Reimbursed Tests
Testing Services – ASP has not changed on Reimbursed Tests FLAT
Slide 20: Testing Services Payor Strategy to Increase Reimbursement
Testing Services Payor Strategy to Increase Reimbursement Situation: Increasing mix of Commercial Patients from New Launches Strategy % Commercial Volume Increase in payer mix + CN expansion + AlloSure Lung (ASL) ASH MA 52% End 2020 62% End 2021 2023 Plan + AlloSure Heart (ASH) + Medicare Advantage
Slide 21: Opportunity from Increased Coverage with Non-Reimbursed Tests
Significant Opportunity from Increased Coverage with Non-Reimbursed Tests (of > $180M*) *potential opportunity based on ASP of $2500 on all unpaid tests; ** Estimated >$180M
Slide 22: Strong Payor Coverage is Core Part of the Business Model
Strong Payor Coverage is Core Part of the Business Model Patient Coverage Total Launch CMS Commercial (inc. MA) Current Coverage Strong Payor Coverage AlloMap Heart 2005 ~25% >50% >75% AlloSure Kidney 2017 ~60% >10% >70% Early in Coverage Cycle AlloSure Heart 2020 ~25% 1-5% ~25-30% AlloSure Lung 202
Slide 23: 2023 Focus: Catalysts, Coverage, Collections
2023 Focus On The Three C’s - Catalysts, Coverage, Collections Drive Leadership into Solid Organ Transplants Pipeline Catalysts Leverage Best in Class Data and Clinical Utility and Guidelines Increasing Coverage Infrastructure built to address prior authorizations and denials/ appeals Improving Coll
Slide 24: Record Cash Collection in Q4, 2022
Record Cash Collection in Q4,2022 Primarily driven by Commercial Payers H1, 2022 Investments in infrastructure scale are starting to show in the cash ramp collected esp. in Q4, 2022 2022 vs 2021 2022 Improving Qtr by Qtr Scaling infrastructure
Slide 25: 2023 Summary
2023 Summary Potential milestones Path to adjusted EBITDA profitability in H1 Ongoing adjusted EBITDA profitability in H2 Catalysts Potential launches: AlloMap Kidney and UroMap Coverage Lung: MolDx discussions Heart: Start ISHLT guidelines pull through (H1) and ramp in H2 Kidney: Work on Kidney Gui
Slide 26: CareDx: Your Partner in Transplant Care
é CareDx: Your Partner in Transplant Care™
Slide 27: Appendix
Appendix
Slide 28: Reconciliation of Non-GAAP Gross Margin
Reconciliation of Non-GAAP Gross Margin FY 2018 FY 2019 FY 2020 FY 2021 Q1 2022 Q2 2022 Q3 2022 Revenue 76.6 127.1 192.2 296.4 79.4 80.6 79.4 GAAP Cost of Revenue 33.0 45.5 63.1 97.4 26.9 27.5 28.3 GAAP Gross Profit 43.6 81.6 129.1 199.0 52.5 53.1 51.1 GAAP Gross Margin % 57% 64% 67% 67% 66% 66% 64%