Natera Inc at Canaccord Genuity Growth Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Kyle Alexander Mikson - Canaccord Genuity Corp., Research Division - Analyst : Awesome. So you reported the second quarter results last Thursday, I believe. Great results, I think, almost $200 billion of revenue, solid results across the board. Can you talk about the performance for volume and maybe even ASV across given kind of segments?

Question: Kyle Alexander Mikson - Canaccord Genuity Corp., Research Division - Analyst : And then maybe, Steve, talk about the market share for prenatal. I know it's like 50%. I think what you said, I mean, it's pretty amazing. And where does that stand in like the overall penetration of NIPT?

Question: Kyle Alexander Mikson - Canaccord Genuity Corp., Research Division - Analyst : Okay. Just wanted to kind of touch on that because it's important for like the quarter work where you're going to stand, I guess, but going to oncology though. So there's a lot kind of going on with Signatera. There's a lot of reimbursement tailwinds that you should have a from. Maybe talk about starting (inaudible) kind of data and like the guideline potentially? Like what are we expecting now for guidelines, [NGCN], et cetera, maybe in the next few months?

Question: Kyle Alexander Mikson - Canaccord Genuity Corp., Research Division - Analyst : Okay. That was great. And then maybe on reimbursement. So right now reimbursed for CRC stages 1 to 4 basically as well as immunotherapy monitoring. And then this new one, MIBC, which is muscle invasive bladder cancer. So exciting, all that's exciting. Why is MIBC meaningful? If you like, it's the newest one, we're not really like SES2 hearing about it (inaudible). REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 10, 2022 / 3:30PM, NTRA.OQ - Natera Inc at Canaccord Genuity Growth Conference

Question: Kyle Alexander Mikson - Canaccord Genuity Corp., Research Division - Analyst : And then what's the goal this year with new reimbursed indications? What do you have to do there? I think at least 4 is the goal, right?

Question: Kyle Alexander Mikson - Canaccord Genuity Corp., Research Division - Analyst : Awesome. Okay. And then Mike talk about the ASPs and basically, like how these reimbursement -- this rate flows through to ASP and help the P&L more or less. And then when can we really see that like occur?

Question: Kyle Alexander Mikson - Canaccord Genuity Corp., Research Division - Analyst : And obviously right now, clinical ASPs are 700, there's the biopharma aspect, too, which kind of, I guess, will inflate maybe overall APSs. But where could clinical ASPs get to over time that can we expect like 1,500 or something like that maybe kind of average out.

Question: Kyle Alexander Mikson - Canaccord Genuity Corp., Research Division - Analyst : All right. And then last 1 for you on these economics of Signatera. So the COGS, the CAG we decreased COGS over time. Well, tell us about the front the upfront SMC within that?

Question: Kyle Alexander Mikson - Canaccord Genuity Corp., Research Division - Analyst : Great. And Steve on just saying with Signatera. So talk about like what the mix is right now between the test and the current sponsoring setting versus the agreement window because obviously, it has those price implications, ASP implications and got more chance there as well or so for stating that.

Question: Kyle Alexander Mikson - Canaccord Genuity Corp., Research Division - Analyst : And is that the case throughout all the indications, even though with all reimbursed right now?

Question: Kyle Alexander Mikson - Canaccord Genuity Corp., Research Division - Analyst : Got you. Okay. So let's stop there for oncology or (inaudible), maybe. So there's been increased talk about regulating LDTs. Can you maybe talk about how that could -- how do you see that kind of progressing going forward? How that affects Natera overall?

Question: Kyle Alexander Mikson - Canaccord Genuity Corp., Research Division - Analyst : And do you have to like the broadest portfolio of data across all the NIPT providers?

Question: Kyle Alexander Mikson - Canaccord Genuity Corp., Research Division - Analyst : Got you. No, I would agree. So on microdels, what's next there, right? We talked about guidelines for those as well that really help adoption. I guess just reimbursement in general because there are dynamics that are at play. Maybe talk about what's next with microdels from the kind of a standpoint. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 10, 2022 / 3:30PM, NTRA.OQ - Natera Inc at Canaccord Genuity Growth Conference

Question: Kyle Alexander Mikson - Canaccord Genuity Corp., Research Division - Analyst : Any like timing, I guess?

Question: Kyle Alexander Mikson - Canaccord Genuity Corp., Research Division - Analyst : Got you. Okay. And then, Mike, just talk about the economics there because this touched on before, but it's important because I think like we sized it to a few hundred million revenue possibly were used additionally. So talk about that.

Question: Kyle Alexander Mikson - Canaccord Genuity Corp., Research Division - Analyst : Okay. But I think it's like for every NIPT test, there's like actually -- maybe 80% of the time you'll get like a microdels well test -- and there's a rate of like 800 or so, I think there's something around there. So...

Question: Kyle Alexander Mikson - Canaccord Genuity Corp., Research Division - Analyst : Got you. So we're kind of nearing the end with time here. Talk about maybe, Steve, what's next in organ health and why should we be excited for that segment? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 10, 2022 / 3:30PM, NTRA.OQ - Natera Inc at Canaccord Genuity Growth Conference

Question: Kyle Alexander Mikson - Canaccord Genuity Corp., Research Division - Analyst : All that was great. But how do you feel like [coherently] speaking about your (inaudible) test versus other?

Question: Kyle Alexander Mikson - Canaccord Genuity Corp., Research Division - Analyst : Awesome. Maybe last question on screening. So you have this Aarhus' partnership basically 40,000 biobank CRC samples. What's -- I think can you update us on what's going on that? Like what's the update there? What could we expect in the next 12 months or so?

Question: Kyle Alexander Mikson - Canaccord Genuity Corp., Research Division - Analyst : Awesome. Okay. I guess we'll leave there. Thanks, Steve. Thanks Mike so much.