INVITAE: Genetics from downstream to mainstream U B S G L O B A L H E A LT H C A R E C O N F E R E N C E

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Nelson Gordon
6 years ago
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1 INVITAE: Genetics from downstream to mainstream U B S G L O B A L H E A LT H C A R E C O N F E R E N C E

2 Safe harbor statement This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the company's expectations regarding full-year 2017 revenue; the company s belief that it is winning the race to scale in its industry and opening up access for patients to address a wide spectrum of health issues, which is leading to increased utilization of its expanding platform; that being in-network with a majority of major payers and the rise in demand for its services in the first quarter will lead to significant revenue grow throughout the remainder of 2017; that additional payer contracts will be executed during the remainder of 2017; that exome testing can help clinicians make or confirm a diagnosis and develop an appropriate medical management plan; and that research continues to point to the broader utility of genetic information and precision of the company s services. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially, and reported results should not be considered as an indication of future performance. These risks and uncertainties include, but are not limited to: the company's history of losses; the company's ability to compete; the company's failure to manage growth effectively; the company's need to scale its infrastructure in advance of demand for its tests and to increase demand for its tests; the company's ability to develop and commercialize new tests and expand into new markets; the risk that the company may not obtain or maintain sufficient levels of reimbursement for its tests; the company's inability to raise additional capital on acceptable terms; risks associated with the company's ability to use rapidly changing genetic data to interpret test results accurately, consistently, and quickly; risks associated with the company's limited experience with respect to acquisitions; security breaches, loss of data and other disruptions; laws and regulations applicable to the company's business; and the other risks set forth in the company's filings with the Securities and Exchange Commission, including the risks set forth in the company's Annual Report on Form 10-K for the year ended December 31, These forward-looking statements speak only as of the date hereof, and Invitae Corporation disclaims any obligation to update these forward-looking statements. NOTE: Invitae and the Invitae logo are trademarks of Invitae Corporation. All other trademarks and service marks are the property of their respective owners. Invitae Corporation. All Rights Reserved. 2

It s a huge opportunity, everyone with a genome B R I N G I N G G E N E T I C S I N T O M A I N S T R E A M M E D I C I N E T O H E L P B I L L I O N S O F P E O P L E Everyone has a unique genome

5 It s a huge opportunity, everyone with a genome B R I N G I N G G E N E T I C S I N T O M A I N S T R E A M M E D I C I N E T O H E L P B I L L I O N S O F P E O P L E Everyone has a unique genome that has a significant impact on their health There are over 4,000 medically important genetic tests today most of which are over-priced and under-utilized High quality, low priced genetic testing will dramatically increase the total market to everyone with access to healthcare Invitae Corporation. All Rights Reserved. 5

6 A genetic information platform built for long term growth Genetic Testing Genome Network Genome Management - Consolidate and expand the market for genetic tests and related services - Accurately diagnose more patients and connect them to therapies earlier - Manage genetic information for customers throughout their lifetime Invitae Corporation. All Rights Reserved. 6

7 Strong Start to 2017 Well positioned to achieve 2017 goals of 110, ,000 samples accessioned and full-year revenue of between $55M and $65M Robust sample volume growth Continued improvement in COGS Steady progress with payers On-track to be cash-flow positive by the end of 2018 Invitae Corporation. All Rights Reserved. 7

8 14 th consecutive quarter of double digit sequential growth Accessioned volume Accessioned over 26K samples Strong year-over-year growth Expanded sales force now in the field Projecting K samples accessioned total in ,500 26,000 Q1:17 15,500 Q4:16 10,000 12,500 Q2:16 Q3:16 Q1:16 Invitae Corporation. All Rights Reserved. 8

9 Our cost structure sets us apart COGS per sample Average cost per sample of ~$360 More than 40% improvement yearover-year 10% improvement quarter-overquarter $ 600 Q1:16 $ 500 Expect to continue lowering COGS throughout 2017 Q2:16 $ 450 Q3:16 $ 400 Q4:16 $ 360 Q1:17 Invitae Corporation. All Rights Reserved. 9

10 A growing business increasing in value Value of billable reports Q1 billable report value of $27.6M $27.6M $22.6M Q1:17 $16.6M Q4:16 $11.8M $11.7M Q3:16 Q1:16 Q2:16 Invitae Corporation. All Rights Reserved. 10

11 Continued progress with payers, increasing access Lives Contracted 187 million lives contracted Operationalizing contracts with major payers 160M 175M 187M Contracting with state Medicaid programs Q4:16 Q1:17 Secured coverage for newly launched boosted exome 95M Q3:16 Q2:16 6M Q1:16 Invitae Corporation. All Rights Reserved. 11

12 Continued double digit sequential revenue growth Revenue $10.3M in Q1 revenue More than 150% year-over-year growth Nearly 12% sequential growth Expect 2017 revenue from $55 65M $9.2M Q4:16 $10.3M Q1:17 $6.3M $5.6M Q3:16 $4.0M Q2:16 Q1:16 Invitae Corporation. All Rights Reserved. 12

13 Best-in-class cost infrastructure sustains gross margin positivity Gross margin positive $15 average gross margin per report during high volume quarter $47 Q4:16 $15 ($74) ($64) Q1:17 Q2:16 Q3:16 ($209) Q1:16 Invitae Corporation. All Rights Reserved. 13

14 Maintaining leverage from operating expenses Volume Q1 operating expenses of $28.3M 26,000 samples $5.6M in non-cash expenses 10,000 samples 12,500 samples 15,500 samples 20,500 samples $23.5M $23.9M $23.9M $26.0M $28.3M OpEx Q1:16 Q2:16 Q3:16 Q4:16 Q1:17 Invitae Corporation. All Rights Reserved. 14

15 Funded to cash flow positive in 2018 Ended Q1 with $101.5M in cash Completed $40M debt financing Volume Cash 26,000 samples Extinguished $12.1M in previously outstanding debt Additional $20M available in ,000 samples $22.0M cash used in operating activities in Q1 as compared to $24.0M in Q Cash flow positive by the end of 2018 $23.5M 0 Cash Cash ($24.0) ($23.1M) OpEx ($16.9) ($17.0M) ($18.4M) ($18.5M) ($18.8M) $28.3M ($22.0M) ($21.2M) Q1:16 Q2:16 Q2:16 Q3:16 Q3:16 Q4:16 Q4:16 Q1:17 Invitae Corporation. All Rights Reserved. 15

16 A platform built for long term growth Genetic Testing Genome Network Genome Management - Consolidate and expand the market for genetic tests and related services - Accurately diagnose more patients and connect them to therapies earlier - Manage genetic information for customers throughout their lifetime Invitae Corporation. All Rights Reserved. 16

Genome Network: insights to drive care and innovation A patient-centered data

to collect, curate and share patient and clinician reported health data

treatment and biopharma discovery Clinical trial screening, sponsored testing

treatment research Disease Education Learn from Other Patients Take Surveys Get

17 Genome Network: insights to drive care and innovation A patient-centered data platform optimizing the search for better treatments Permission-based network to collect, curate and share patient and clinician reported health data Identify large populations with demand for genetic information to aid in treatment and biopharma discovery Clinical trial screening, sponsored testing programs, physician/patient identification and outreach Hereditary disease treatment research Disease Education Learn from Other Patients Take Surveys Get Reminders Upload Medical Records Import Clinical Data Adhere to Protocols Get Screened for Clinical Trials

18 Diagnosing more patients correctly, bringing therapies to market faster R E P R E S E N TAT I V E H E R E D I TA R Y D I S E A S E C O M PA N I E S Clinical trial screening Sponsored testing programs Physician/patient identification and outreach Hereditary disease treatment research Invitae Corporation. All Rights Reserved. 18

19 Continued aggregation of the world s genetic tests into a single, high quality, affordable platform Content available Expanded to more than 1,100 genes in production and leap-frogged our 3,000 gene target to prepare 20,000 gene exome >20,000 genes 2017 >200 genes >600 genes >1,000 genes Estimates. Invitae Corporation. All Rights Reserved. 19

Moving the market away from figuring out what question to ask to asking

20 Exome lays the groundwork for genome management The same comprehensive quality, speed and pricing clients have come to expect from Invitae Moving the market away from figuring out what question to ask to asking a question and getting the answer Invitae Corporation. All Rights Reserved. 20

21 Genetics will inform medicine over the course of a patient s lifetime NEONATAL MEDICAL CONDITION MEDICATIONS HAVING KIDS INJURIES OR SURGERIES HEALTH ISSUES AGING GRACEFULLY Newborn screening Clinical diagnostics PGx screening Carrier testing Bleeding disorders Focused clinical trials Proactive health Genome Management services on behalf of the individual, partnering with Provider networks Payers and governments Family members Advocacy organizations Testing and monitoring partners Biopharmaceutical developers Other Invitae Corporation. All Rights Reserved. 21

JEFFERIES 2015 GLOBAL HEALTHCARE CONFERENCE JUNE 3, 2015 NACHUM HOMI SHAMIR PRESIDENT AND CHIEF EXECUTIVE OFFICER

JEFFERIES 2015 GLOBAL HEALTHCARE CONFERENCE JUNE 3, 2015 NACHUM HOMI SHAMIR PRESIDENT AND CHIEF EXECUTIVE OFFICER SAFE HARBOR STATEMENT Certain statements made during the course of this presentation may