INVITAE - s21.q4cdn.com · 2017 >20,000 genes 2014 >200 genes >600 genes >1,000 genes Estimates....

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 0 1 7

INVITAE:

Genetics from downstreamto mainstream

© Invitae Corporation. All Rights Reserved. | 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, 2016. 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 is a dynamic, rapidly growing

company that is unlocking the power of

genetics to change healthcare for the better


Genetics: real progress is catching up with the exuberance


It’s a huge opportunity, everyone with a genome

▪ 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

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


- 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

A genetic information platform built for long term growth

Genetic

Testing

Genome

Management

Genome

Network


Strong Start to 2017

▪ Well positioned to achieve 2017 goals of 110,000-

120,000 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


Accessioned volume

Q1:16

10,000

Q1:17

26,000

Q4:16

20,500

14th consecutive quarter of double digit sequential growth

▪ Accessioned over 26K samples

▪ Strong year-over-year growth

▪ Expanded sales force now in the field

▪ Projecting 110–120K samples

accessioned total in 2017

Q3:16

15,500

Q2:16

12,500


COGS per sample

Our cost structure sets us apart

▪ Average cost per sample of ~$360

▪ More than 40% improvement year-

over-year

▪ 10% improvement quarter-over-

quarter

▪ Expect to continue lowering COGS

throughout 2017

Q1:16

$600

Q2:16

Q1:17

$360

Q3:16

$450

$500

Q4:16

$400


A growing business increasing in value

▪ Q1 billable report value of $27.6M

Q1:16

$11.8M

Q1:17

$27.6M

Q2:16

$11.7MQ3:16

Value of billable reports

$16.6M

Q4:16

$22.6M


Lives Contracted

Q1:16

6M

Q1:17

187M

Q2:16

95M

Q3:16

160M

Continued progress with payers, increasing access

▪ 187 million lives contracted

▪ Operationalizing contracts with

major payers

▪ Contracting with state Medicaid programs

▪ Secured coverage for newly launched

boosted exome

Q4:16

175M


Continued double digit sequential revenue growth

▪ $10.3M in Q1 revenue

▪ More than 150% year-over-year

growth

▪ Nearly 12% sequential growth

▪ Expect 2017 revenue from $55–65M

Revenue

Q1:16

$4.0M

Q1:17

$10.3M

Q2:16

$5.6M

Q3:16

$6.3M

Q4:16

$9.2M


Gross margin positive

Best-in-class cost infrastructure sustains gross margin positivity

▪ $15 average gross margin per report

during high volume quarter

Q1:16

($209)

Q2:16

($74)

Q3:16

($64)Q1:17

$15

Q4:16

$47


Maintaining leverage from operating expenses

▪ Q1 operating expenses of $28.3M

▪ $5.6M in non-cash expenses

Q1:16

$23.5M

Q2:16

$23.9M

Q3:16

$23.9M

Volume

Q1:17

$28.3M

10,000samples

26,000samples

12,500samples

15,500samples

20,500samples

Q4:16

$26.0M

OpEx


Funded to cash flow positive in 2018

▪ Ended Q1 with $101.5M in cash

– Completed $40M debt financing

• Extinguished $12.1M in previously

outstanding debt

– Additional $20M available in 2018

▪ $22.0M cash used in operating activities

in Q1 as compared to $24.0M in Q1 2016

▪ Cash flow positive by the end of 2018

Q1:16 Q2:16 Q3:16

Cash

Q4:16

0Cash

($23.1M)

($18.5M) ($18.8M)

($21.2M)

Q1:16 Q2:16 Q3:16 Q1:17Q4:16

0

($24.0)

($18.4M)($16.9)

($22.0M)

($17.0M)

10,000samples

26,000samples

$23.5M

$28.3M

Volume

OpEx

Cash


- 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

A platform built for long term growth

Genetic

Testing

Genome

Management

Genome

Network

▪ Upload

Medical Records

▪ Import

Clinical Data

▪ Disease

Education

▪ Learn from

Other Patients

▪ Take Surveys

▪ Get Reminders

▪ Adhere to

Protocols

▪ Get Screened

for Clinical Trials

▪ 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

Genome Network: insights to drive care and innovation


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


Continued aggregation of the world’s genetic tests into a single, high quality, affordable platform

20152016

2017

>20,000genes

2014

>200genes

>600genes

>1,000genes

Estimates.

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


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


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…

MEDICAL CONDITION

MEDICATIONS

HAVING KIDS

INJURIES OR

SURGERIES

HEALTH ISSUES

AGING GRACEFULLY

NEONATAL

Clinical diagnostics

PGx screening

Carrier testing

Bleeding disorders

Focused clinical trials

Proactive health

Newborn screening

Genetics will inform medicine over the course of a

patient’s lifetime


Expand

content

Improve

customer

experience

Drive

Volume

Attract

PartnersGrowth

Lower

costs

Lower

prices

Simple model disrupting an industry

INVITAE - s21.q4cdn.com · 2017 >20,000 genes 2014 >200 genes >600 genes >1,000 genes Estimates....

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