Natera Inc at UBS Global Healthcare Conference Transcript

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

Question: Daniel Leonard - UBS - Analyst : So you just reported Q3 results. I thought the best way to begin the discussion would be if you could share some highlights from that report?

Question: Daniel Leonard - UBS - Analyst : You gave some framing thoughts on 2025 as well. Could you revisit those?

Question: Daniel Leonard - UBS - Analyst : Okay. And I'm glad to clarify that because I wasn't clear from the call, whether I'm supposed to back out that or not. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 14, 2024 / 4:00PM, NTRA.OQ - Natera Inc at UBS Global Healthcare Conference

Question: Daniel Leonard - UBS - Analyst : But the way you framed it, the volume or unit opportunity in aggregate was that the aggregate unit growth in '25 would be comparable to the aggregate unit growth in '24 --

Question: Daniel Leonard - UBS - Analyst : And can you remind me the figure you're attributing to that, the unit number?

Question: Daniel Leonard - UBS - Analyst : And then I think you mentioned that growth is being accomplished with a largely stable number of frontline sales reps, is that right?

Question: Daniel Leonard - UBS - Analyst : And so you're assuming greater productivity per rep?

Question: Daniel Leonard - UBS - Analyst : Understood. And remind me of the comments you made around ASP for 2025?

Question: Daniel Leonard - UBS - Analyst : Okay. And so for Signatera, you would expect the ASP improvement to be back half loaded? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 14, 2024 / 4:00PM, NTRA.OQ - Natera Inc at UBS Global Healthcare Conference

Question: Daniel Leonard - UBS - Analyst : And why isn't Medicare Advantage coverage more straightforward?

Question: Daniel Leonard - UBS - Analyst : And why would the benefits from state biomarker bills not accrue until the second half of the year? I think some of these have been established well earlier.

Question: Daniel Leonard - UBS - Analyst : Okay. What's your Signatera ASP when you're getting paid?

Question: Daniel Leonard - UBS - Analyst : Okay. And then the true-ups have been a pretty consistent feature of your performance in 2024. What are your thoughts on that going forward?

Question: Daniel Leonard - UBS - Analyst : It does.

Question: Daniel Leonard - UBS - Analyst : So you're changing your accrual assumption over time?

Question: Daniel Leonard - UBS - Analyst : Okay. Makes sense. Well, let's pivot a bit to talk about some of the data readouts you mentioned for 2025 on Signatera. I guess, first off, what is the cumulative number of interventional trials you're reading out in 2025?

Question: Daniel Leonard - UBS - Analyst : Got it. I counted five and I wonder if I'm undershooting the mark? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 14, 2024 / 4:00PM, NTRA.OQ - Natera Inc at UBS Global Healthcare Conference

Question: Daniel Leonard - UBS - Analyst : Okay. And in terms of the ones you're talking about right now, it's [702], it's all ALTAIR, it's is that right?

Question: Daniel Leonard - UBS - Analyst : And would you rank order within those three? Is one of them more important than the other or are they all equal...

Question: Daniel Leonard - UBS - Analyst : And I think Steven mentioned on the call that you also have additional you've submitted additional data to MolDx for some potential new reimbursed indications in 2025. Any way you could frame that opportunity?

Question: Daniel Leonard - UBS - Analyst : So any new indications could lead to incremental volume in addition to potential incremental ASP?

Question: Daniel Leonard - UBS - Analyst : Okay. All right. I hope I don't run off the clock here. CRC screening. Could you remind me, what is the goal? What do you hope to present? I didn't get the impression from your discussion on cash flow on the call that you really had the appetite to the green light, a big $100 million clinical trial. So please correct me if I'm wrong and help me better understand and frame what your aspirations are in CRC screening?

Question: Daniel Leonard - UBS - Analyst : Okay. You've given frameworks before about what your P&L will ultimately look like once you're more scaled. I think the last communication was around $2 billion in revenue, you could do 25% EBIT margin, 70% gross margin. Almost a victim of your own success. As the company keeps growing, you're getting closer and closer to that $2 billion revenue figure, is that P&L you proposed before is that still valid?

Question: Daniel Leonard - UBS - Analyst : Okay. I get asked about the competitive moat for Signatera all the time. I don't know if you would care to comment?

Question: Daniel Leonard - UBS - Analyst : Okay. We've only got a couple of minutes left. And I know just a very targeted question on your reproductive health business is all we'll have time for. I know you're not reliant and you aim to be successful there. Guidelines or no guidelines when it comes to microdeletions and expanded carrier screening. But could you remind us like what is the way to frame the impact of any guideline update in those two product offerings?

Question: Daniel Leonard - UBS - Analyst : Okay. Well, we'll leave it there. Thanks, Mike. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 14, 2024 / 4:00PM, NTRA.OQ - Natera Inc at UBS Global Healthcare Conference