When the question is genetics, the answer is Invitae. L A D E N B U R G T H A L M A N N 2 0 1 8 H E A LT H C A R E C O N F E R E N C E S E A N G E O R G E, C H I E F E X E C U T I V E O F F I C E R 2018 Invitae Corporation. All Rights Reserved. 1
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 future financial performance and estimated guidance for 2018; its plans and prospects; its plans to integrate and manage businesses it acquires; the timing of the transfer of its Cambridge facility to San Francisco; the focus of its business strategy; that evidence is growing to expand the use of genetic information; and the company s belief that eventually everyone can benefit from genetic information. 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 risk that the company may not obtain or maintain sufficient levels of reimbursement for its tests; the company s failure to successfully integrate or fully realize the anticipated benefits of acquired businesses; the company s ability to use rapidly changing genetic data to interpret test results accurately and consistently; 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 Quarterly Report on Form 10-Q for the quarter ended June 30, 2018. These forward-looking statements speak only as of the date hereof, and Invitae Corporation disclaims any obligation to update these forward-looking statements. 2018 Invitae Corporation. All Rights Reserved. 2
Bring comprehensive genetic information into mainstream medical practice to improve the quality of healthcare for billions of people Driving down the cost of genetic information will increase its personal and clinical utility Healthcare professionals are fundamental in ordering and interpreting genetic information People should own and control their own genetic information Genetic information is more valuable when shared 2018 Invitae Corporation. All Rights Reserved. 3
Momentum building across all key indicators Q U A R T E R LY S U C C E S S L E A D S T O R E V E N U E G U I D A N C E I N C R E A S E Accessioned volume Revenue Gross profit 73,000 $37.3M $16.9M 64,000 53,000 $25.4M $27.7M $8.3M $9.6M 40,000 $18.1M $5.0M 30,500 $14.3M $3.8M Q2:17 Q3:17 Q4:17 Q1:18 Q2:18 Q2:17 Q3:17 Q4:17 Q1:18 Q2:18 Q2:17 Q3:17 Q4:17 Q1:18 Q2:18 2018 Invitae Corporation. All Rights Reserved. 4
Again increased annual revenue guidance R E A L - T I M E I N D I C A T O R Volume T R A I L I N G I N D I C A T O R Revenue Between $135 $140 million in 2018 More than 275,000 samples expected in 2018 T R E N D T R E N D T R E N D T R E N D Reimbursement Gross Profit COGS Operating Leverage Strong execution on all key indicators Began receiving payment from Medicare for deletion and duplication analysis (CPT code 81433) On track to drive down cash burn by 40-50% compared to Q1 levels exiting 2018 2018 Invitae Corporation. All Rights Reserved. 5
Strategy to reach billions of people Lower prices Lower costs Expand content Attract Partners Growth Improve customer experience Drive Volume 2018 Invitae Corporation. All Rights Reserved. 6
How the market works today Invitae has found that more than 16% of healthy adults carry a serious healthrelated genetic risk. 1 Carrier screening Fertility & perinatal health PGT Prenatal Neonatal Pediatric Adult inherited Testing remains largely event based with patients accessing the market through discreet entry points Report generally remains isolated from patient s broader healthcare and long-term health decisions 1 Haverfield E. Multigene panel screening for hereditary disease risk in healthy individuals. Poster presented at: ACMG Annual Meeting; April 12, 2018; Charlotte, NC. 2018 Invitae Corporation. All Rights Reserved. 7
A large, fragmented and inefficient market Carrier screening Fertility & perinatal health PGT Prenatal Neonatal Pediatric Proactive Adult inherited 10,000 s of tests (~12) (>30) Somatic cancer PGx (~12) 2018 Invitae Corporation. All Rights Reserved. 8 (>20)
How the market will work in the future Carrier screening Fertility & perinatal health PGT Prenatal Neonatal Pediatric Adult inherited A large portion of the population in modernized healthcare systems will have their genetic information managed on their behalf to improve health outcomes for themselves and their families Proactive Access to comprehensive genetic information services at all major market entry points Individuals can access comprehensive genetic information to inform healthcare decisions throughout their lives 2018 Invitae Corporation. All Rights Reserved. 9
Building a best-in-class platform B R E A D T H D E P T H A N D S C A L E I S E S S E N T I A L T O L E A D Carrier screening Fertility & perinatal health PGT Prenatal Neonatal Pediatric Adult inherited Proactive Depth and breadth have been a key component of our commercial success to date Enhanced content feeds a virtuous cycle of scale, pulling forward value inflection point for our business 2018 Invitae Corporation. All Rights Reserved. 10
Leading with unparalleled depth at unmatched price N O T A L L C A N C E R T E S T I N G C R E AT E D E Q U A L 134 Most comprehensive at the lowest price ~70 67 More genotypic and phenotypic data generated per individual 30 28 Multiplies growth and value of network data relative to potential competitors 2018 Invitae Corporation. All Rights Reserved. 11
Comprehensive solution for partners A L I F E T I M E O F D ATA A C R O S S T H E S P E C T R U M O F H E A LT H C A R E Adult inherited Pediatric Patient Communities Research Neonatal Prenatal PGT + Comprehensive phenotypic/ Family health history data Clinical Trials Therapeutics Fertility & perinatal health Carrier screening Devices Providers 2018 Invitae Corporation. All Rights Reserved. 12
A technology fueled business model F R O M S A M P L E T O A N S W E R : C U S T O M A U T O M AT I O N Moore s Law The cost of DNA sequencing is decreasing rapidly Metcalfe s Law The Internet of genetics is emerging Law of Finite Genomes Understanding the genetic basis of disease is like a finite puzzle it s a reverse engineering problem! Scalable, custom, machinelearning software tools enable clinical analysis costs to decline even as assay and panel size increase Capabilities are difficult to retrofit into large incumbent operations Technology integration is tough to justify at smaller scale 2018 Invitae Corporation. All Rights Reserved. 13
Executed in the most exacting of industries A P P LY I N G W O R L D - C L A S S C L I N I C A L E X P E R T I S E T O R E S U LT S T H AT I N F O R M C R I T I C A L H E A LT H C A R E D E C I S I O N S Many companies deploying technology to lower costs remain naïve about the complexity of biology 2018 Invitae Corporation. All Rights Reserved. 14
Invitae continues to lead in clinical excellence D E L I V E R I N G C O M P R E H E N S I V E A N S W E R S T O S E R I O U S, C O M P L E X Q U E S T I O N S Percent Positive Reports with CNVs 50 Pediatrics 45 40 35 30 25 20 15 10 5 0 Neurology Oncology Cardiology Prevalence and properties of intragenic copy-number variation in Mendelian disease genes. Truty R, Paul J, Kennemer M, Lincoln SE, Olivares E, Nussbaum RL, Aradhya S. Genetics in Medicine. Published online June 12, 2018. doi:10.1038/s41436-018-0033-5. 2018 Invitae Corporation. All Rights Reserved. 15
Evidence growing to expand use of genetic information N E A R LY T H E S A M E N U M B E R O F W O M E N AT R I S K W H E T H E R I N O R O U T O F C R I T E R I A Patient Group (#) Breast/GYN Cancer Management Genes (% Positive) Large Hereditary Breast and Ovarian Cancer Panel (% Positive) In-Criteria Patients (3549) 8.4 % 10.5 % Not a significant difference Out-of-Criteria Patients (647) 6.2 % 9.0 % Not a significant difference Underdiagnosis of hereditary breast and ovarian cancer in Medicare patients: Genetic criteria miss the mark. Yang S, Axilbund JE, O Leary E, Michalski ST, Evans R, Lincoln SE, Esplin ED, Nussbaum RL. Annals of Surgical Oncology. Published online July 11, 2018. doi:10.1245/s10434-018-6621-4. 2018 Invitae Corporation. All Rights Reserved. 16
Healthy individuals benefit from proactive M O R E T H A N 1 6 % P R E S E N T E D W I T H A M E D I C A L LY A C T I O N A B L E G E N E T I C C O N D I T I O N T H E Y W E R E N O T A W A R E T H E Y H A D Genetics in mainstream medicine: Finally within grasp to influence healthcare globally. Aradhya S, Nussbaum RL. Molecular Genetics and Genomic Medicine. Published online May 28, 2018. doi:110.1002/mgg3.415. 2018 Invitae Corporation. All Rights Reserved. 17
Eventually everyone can benefit from genetic information A N S W E R I N G S O M E O F L I F E S M O S T S E R I O U S A N D C O M P L E X Q U E S T I O N S Informing my health? Carrier screening Fertility & perinatal health Starting a family? Proactive PGT Adult inherited Prenatal Pediatric Neonatal Diagnosing a disease? 2018 Invitae Corporation. All Rights Reserved. 18
Uniquely capable of serving growing demand Inherited disease Cancer market estimated to grow to ~2 million tests per year 1.2-1.3 million women in the US with breast and ovarian cancer who qualify for genetic didn t receive it ~1.7 million newly diagnosed cancers per year Cardio, Neuro, Peds estimated to grow over the coming years >90 million Americans living with cardiovascular disease or after-effects of stroke Family health Family health market is already larger than cancer with 4 million live births per year in the US Combined carrier, products of conception, cytogenetics, cancer screening into one NGS platform Aggregate market is enormous for family health Proactive Proactive Health market estimated to grow to over 10 million per year >16% of healthy adults carry a serious health-related genetic risk ~330 million US population is the total addressable market 2018 Invitae Corporation. All Rights Reserved. 19
Emergence of new industry Genetic Testing Genome Management Genome Network Provide genetic information services that inform healthcare throughout life Share genetic information on a global scale to diagnose more patients correctly and bring therapies to market faster Make acquisitions that expand test menu content and services to open new markets Comprehensive genetic health information service to lead new era of healthcare Build partnerships with industry peers to increase utilization of genetic Make genetic more affordable and more accessible 2018 Invitae Corporation. All Rights Reserved. 20
Early value of a growing network effect Data per person x People served x Connections per person per data point Carrier screening Fertility & perinatal health PGS/D Prenatal Neonatal Pediatric Adult inherited Payers Partners Research Therapies Devices Advocacy 2018 Invitae Corporation. All Rights Reserved. 21
Q&A: General discussion