invitae - s21.q4cdn.com · this presentation contains forward-looking statements within the meaning...

© 2016 Invitae Corporation. All Rights Reserved. 1

INVITAE: Bringing genetic information into mainstream medical practice I N V E S TO R P R E S E N TAT I O N A U G U S T 2 0 1 6


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 its plans for 2016, including revenue levels, the cost of goods sold, the number of billable tests delivered, the number

of genes in its test menu, and the nature and extent of future reimbursement coverage; the company’s expectations regarding continued growth in 2016;

potential market opportunities; the timing of any new testing service releases and the benefits and attributes of any such services; and the company’s plans for

long-term growth. 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 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;

risks associated with the company’s ability to use rapidly changing genetic data to interpret test results accurately and consistently; the company’s ability to

compete; laws and regulations applicable to the company’s business, including potential regulation by the Food and Drug Administration; 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, 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

Bringing genetics into mainstream medicine to help billions of people

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


~2-5% 1 in 20 to 1 in 50 healthy people has a gene mutation that puts them at risk for a medically actionable condition

~0.5-5% 1 in 20 to 1 in 200 people carry the Factor V Leiden variant that may increase risk for blood clotting

~5-10% 1 in 20 to 1 in 10 of all cancers are likely to have a hereditary basis

Genetic conditions affect everyone

“Rare” genetic conditions are actually common in the aggregate

1 in 250 people has a gene mutation that may lead to early onset cardiovascular disease

0.4%

~2% 1 in 50 new births result in a complication involving a genetic condition

0.3% 1 in 300 will have an epileptic seizure during their lifetime

~100%

Everyone is carrying mutations that can cause severe illness in a child if the child’s other parent provides a mutation in the same gene

~100% Virtually everyone is carrying mutations affecting drug response

Everyone carries mutations in their genome that cause disease, affect drug response or recessive genetic conditions that may affect their families


Unknown

Limited

Low Complexity of Diagnosis

High

Num

ber o

f Gen

es In

volv

ed Exomes/Genomes

Large gene panels

Small gene panels

Single Gene Testing

Variant testing

Sickle-cell anemia

High risk breast cancer

Hypertrophic cardiomyopathy

Diagnostic Odyssey

BRCA1

Historically, genetic testing was limited by cost


Exomes/Genomes

Large gene panels

Small gene panels

Single Gene Testing

Variant testing

Increasing number of genes

Cost

Cost of the first gene

Cost of increasing genes

Invitae’s business model innovation

-  Technology is improving quality and creating economy of scale

-  Invitae offers one price per indication regardless of the number of genes

-  Transforming a clinical laboratory report generation industry into a genetic information management industry


-  Make genetic testing more accessible than ever before

-  Consolidate and expand the market for genetic tests and related services

-  Create new markets for content (i.e. Preventive and Family Health)

-  Share genetic information on a global scale to advance healthcare and clinical outcomes

-  Monetize our network of patients, providers and payers for permission-based sharing of genetic information

-  Build infrastructure to manage genetic information for customers

-  Genome management creates value over the lifetime of a customer

A platform built for long term growth

Genetic Testing

Genome Management

Genome Network


200 500 1,100 1,800 2,200

4,500 5,100

7,000

9,700

12,100

Billable tests

Revenue ($k)

$118 $301 $310 $876 $1,200

$1,800 $2,200 $3,200

$4,000

$5,600

!  Expenses are incurred for tests in the period in which the test is conducted

!  Balance sheet cash, cash equivalents, and marketable securities of $90.2M as of June 30, 2016

Strong volume growth, with revenue following

(billable test numbers and revenues are approximate)


Q2 2016 Update

!  COGS improvement " drives content expansion " drives volume growth " drives reimbursement –  Invitae now has one of the lowest cost –highest content platforms in the industry –  ~ million dollar improvement in gross margin and the bottom line over Q1 –  Over 25% quarter over quarter growth

!  The payer dynamic has changed –  Two national payers now on board: Medicare and Aetna with more to come

!  The medical opportunity is expanding as genetics becomes less expensive –  Unlimited market growth opportunity for the foreseeable future

!  “Leapfrogging” to whole exome sequencing –  Over three thousand clinically relevant genes with deep coverage + all 20,000 genes for screening rare

undiagnosed conditions

!  Biopharma and advocacy are showing increasing interest in patient access across oncology, cardiology, and rare disease

–  Three partnerships inked in the first half of the year –  The network effects are just beginning

!  The health and wellness markets are in their infancy –  Genome management is still a ways off but approaching rapidly with the application of our adult prevention panel


Executing on four key early metrics

Content on assays

Volume by Billable Reports

COGS per sample

2014

>200 genes

2016

>1000 genes

2015

>600 genes

Q2:16

$5.6M

Q1:15

$1.2M

Q2:15

$1.8M Q4:15

$3.2M

Q3:15

$2.2M

Q1:15

$1,250

Q3:15

$750

Q4:15

$700

Q2:16

$500 Q2:15

$850

Q1:15

2200

Q2:15

4500 Q4:15

9700

Q2:16

12,100

Q3:15

5100 Q1:16

7000

$4.0M

Q1:16

$600

Q1:16


Now with national major payer contracts, including more regional plans

Content on assays

Volume by Billable Reports

COGS per sample

2014

>200 genes

2016

>1000 genes

2015

>600 genes

Q1:15

$1,250

Q3:15

$750

Q4:15

$700

Q2:16

$500 Q2:15

$850

Q1:15

2200

Q2:15

4500 Q4:15

9700

Q2:16

12,100

Q3:15

5100 Q1:16

7000

$600

Q1:16

!  Aetna !  Medicare !  >100 Institutional

contracts !  BCBS in 5 states

!  BCBS Federal Employee Program

!  Tufts Health Plan !  OSU Health Plan !  SelectHealth !  Others


Covered lives by quarter: now at 95 million

Q1:14

0.0M

Q2:14

0.0M

Q3:14

0.1M

Q4:14

4.5M

Q1:15

4.5M

Q2:15

4.5M

Q3:15

5.5M

Q4:15

5.5M

Q1:16

95M

Q2:16 0

5.5M

100 million

50 million


Improving our gross margins G

ross

mar

gin

per b

illab

le re

port

($100)

($300)

$0

-$465

-$82

-$342 -$335

-$209

Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q2 2015

($500)

NOTE: Estimated numbers may have been used. Actual totals might vary slightly.


Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q2 2015 Q1 2015

Operating efficiency: growing volume while holding costs steady

% R

even

ue

100

300

500

0

700

NOTE: Estimated numbers may have been used. Actual totals might vary slightly.

$0.0

$2.0

$6.0

$4.0 Rev

enue

($M

)

R&D Commercial G&A Revenue

$5.6M


Accelerating menu releases

Driving down COGS

Measuring our success in 2016: leapfrogging 3,000 genes and accelerating a medical exome of 20,000 genes

Medicare and top major private insurers

in network >200 genes

>600 genes

>20,000 genes

Q4:2016

< $500 2014

$1,500

Q3:2015

$750

Billable reports delivered

3.6K reports

19K reports

50K-70K reports


0.3%

~0.5-5%

~2-5% Evaluating risk for medically actionable disorders in healthy adults

~5-10%

Genetic conditions affect everyone

0.4%

~2%

~100% Testing genes for recessive variants in individuals interested in pre-conception and family risk assessment

~100% Testing specific genetic variants linked to drug efficacy

Expanding the diagnostic testing menu moving into 2017

✓

✓

✓

✓

✓

✓

✓

✓


Early market testing in health and wellness

Simple facts about the size of our healthcare economy where preventive genetics could help

1 billion Doctor visits per year

50 million Surgeries per year

1.6 million New cancers per year

Heart attacks per year 1.5 million

4 million Births per year

3 million New disabling neurological disorders per year

1 million First time parents per year

4 billion Prescriptions written per year


Expand content

Improve customer

experience

Drive Volume

Attract Partners

Growth

Lower costs

Lower prices

Beginning to attract partners to our network


Patients own and control their own genetic information

STORE Simply store your genetic information

LEARN Understand more about your genome

SHARE Family members, physician, networks, no-one

PARTICIPATE Research, development, clinical trials, marketing

DONATE Medical research, genomic philanthropy

MEDICAL CONDITION

MEDICATIONS

HAVING KIDS

INJURIES OR SURGERIES

HEALTH ISSUES

AGING GRACEFULLY

NEONATAL

Genome Management

Clinical diagnostics

PGx screening

Carrier testing

Bleeding disorder screening

Focused clinical trials

Preventative health

Newborn screening

Building a customer for life

Genomics-informed medicine over the course of a patient’s lifetime

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