NTRA - Earnings call transcript Q1 2020

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Operator

Ladies and gentlemen, thank you for joining us for the Natera, Inc.

First Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions]

to call like to now would turn over the Mr. I Chief Financial Brophy, Officer. Michael please Thank ahead, you, go and sir.

Michael Brophy

our Also Good Chief Paul joining Chapman, Solomon to of Moshkevich, our operator. our Medical conference quarter Thanks, afternoon. Chief of call Officer. discuss Thank CEO; Bob General the Operating is Manager the Billings, line on you Schueren, for first Steve XXXX. Officer; results and Oncology;

broadcast live via Today’s call is being conference webcast.

to presentation will investor.natera.com. replay investor.natera.com. be posted referring has We also at A slide the available that will a call of been to be

operations, the we and statements During the course such financial make of future that anticipated assumptions call, this as events of will and outlook, size future and our pandemic results. operational impact and and on conference outlook, future COVID-XX products, regarding on operating performance, clinical studies, our and expectations forward-looking various our release business for expected related coverage the capabilities, partnerships, market dates, current opportunities for and reimbursement effects including and and strategies financial our our product

from XX-K from materially by and to factors differ with that other in We Form documents Form X-K our statements could best factors Those risks on important results forward-looking filed contained differ or based to or the the recent us reflect Please actual XX-Q known and or release. caution the may most identify with today’s statements. documents press those to materially. SEC, refer actual such suggested including judgment currently and file results time our we that that time you to events the our cause

to If presented are reviewed or replayed or revise forward-looking call call not during after information. contain any made today. statements. any today, during Forward-looking being is made obligation information disclaims the or Natera as accurate may update current the the call statements this of

in a unless but provide so public guidance our on provide the will during quarter, today’s any will not we We performance further on call, guidance do updates or form.

otherwise a such our We represents pages year-on-year or we a quote noted, each of number numeric growth as unless reference discuss will And performance. financial comparison.

the like And turn now, to over I’d to call Steve.

Steve Chapman

Good quarter, on you for going the and and impacts and Mike. joining of summarize from to progress Thanks, update us. business we’re commercial the the give transplant review afternoon, and our highlights in on COVID-XX Great. clinical Today, an our you our oncology. response and thank everyone,

and range highlights. quarter the quarter, On posted the far million $XX and of in in XX% sequential by had which growth in to QX We the million COVID-XX. we’ve million from revenues best history, a gross to the preannounced. unit $XX the quarter-on-quarter March margin despite significantly is above the a company $XX ever company’s disruption the as largest in was we

we time lab, unit in accessioned ASP positive spend volumes and another call. in quarter goods of Revenues later on the close level, XXXX, average grew very were target. our by achieve COGS prices. long-term $XXX both driven will the I $XXX QX strong and set We unit had as per more XX% the for cost also of sold per to a to very selling pleased over a

by from the also top In XX We space. timeframe, transplant a transplant volume. very launch successful the in top of saw kidney we XX% of a our and Prospera witnessed test very orders short of early XXX XX% centers the

test. registry significant these think patients. in indicate enrolling trial, We results more exceptional accurate donor-derived We XX cell-free XXX top the DNA also for initial a ProActive activated interest centers

record new at which with to demand the very well ordering has for COVID-XX capabilities our outbreak. to high scale able key April. We early responded to and levels continued capacity we this disruptions. to remote our our were were service implement in a as running And in employees we’ve seen very also safety no March for lab, We protocols

patients of help this The utility maintain from facilities expands monitoring they the our of need medical to clinical during of patients tests crisis. away get ability high-quality suite to the care

that expanded additional to NIPT XX risk during more from pleased continue that NIPT for also by coverage case covering additional We’ve the women. an for been not this already time has and see this average million all positive payers make seen are change to large we were yet will We reimbursement lives. to

March. we aware, single-digit The senior rate. We and maturity which you coupon. had a secured credit put a it we order proceeds price million a debt $XX when of of seven-year pay financing debt was about our many place share completed roughly are had the in a used and facility, the already down X.XX% notes to the As $XXX in interest convertible have in XX% million

we’ve our deal million we think, position. balance sheet improved $XXX cash with further bolster cash also and So to about the that in added

The next performance slide shows the more of quarter. details in our

carrier sequential history. NIPT we and largest NIPT, the screening the performed. We now as leader growth and market believe growth is volume volume Horizon both with by X more in than tests unit continue Panorama commercial delivered Natera to clear see testing, company We across million

on more other cases NIPT published than significantly company. any have We

by We competitors. have have product, a now and highly are differentiated multiple unique technically features unmatched clinical our that we

extreme this product margins working of seen improvement our a COVID-XX, in and impact channel well. on due Our the highly with record, experience, and differentiated volume also to very is through and were is focus the growth largely user Despite we’ve strategy to a commercial trained ASPs. combine revenues direct our distributed an gross

position. of long-term are strong Prospera last the out four in of growth. so. a drive that in we the new of to horizon. ASP We quarters or been well Signatera The next set improvements driven products, revenue positioned feel contributions and revenue to able like in come trajectory We’ve the and we other from crisis our in acceleration slide historical us, meaningful by longer With ahead volume in very clearly shows goal oncology still COVID-XX our side revenue acceleration, a a over long-term transplant time had

slide well. of continuity the to able summarizes demand mobile outbreak. next operations think, lab fulfill weathering in ordering in many our COVID-XX our the kept been our we to industry, and draw We’ve blood to Compared response and this for capability. record we’ve we are The mobile disruption

transplant patients, For test to pregnant Patients remotely. blood physicians will mobile a platform women, doctor we offer completely the and by qualified be that a then that the a care cancer phlebotomists schedule draw then blood their web-based performed order like normal. our patients is for house visit, and lab their allows sent the to at can

XXXX. application we as this years, on roughly blood XX,XXX working been handled mobile for draws We’ve in

orders still coming reproductive usual the health how in the pleased through smoothly with been we’ve increase been office has channel, our Although are demand majority handled. really of this

not for the the we XX% when we the a weekly As experienced about the from first weeks drop preliminary Jersey was our channel. across quarter, Part we discussed, average compared this two drop in-vitro our The of of Board. March. York quarter, weeks results last in volume of and from and like volumes New XX% to between were the fertilization volumes announced XX hotspots the New outbreak

determined initiating prevented effectively these IVF new very are – but presented customers. patients, from clinics were

clinics So again. a fully can our we rebound reopen expect when

the patient of care. access In American fact, for just importance of fertility timely Society to paving reaffirmed the resumption relevant treatment, society, way a essential the professional of Reproductive Medicine, the recently, gradual

the hard in that for starting obviously that, March, late There of a lockdown on as these withdrew lot see our Having year, April, to are because the volume in patients is to we around all confusion was guide is orders and make we doctors get and recovery already adjustments. the and cadence back of recovering schedule said forecast. the specifically

As COVID additional for policy we cover some lieu women. in testing ultrasound practice Medicine the physicians outbreak, well tests. consider increase risk the think using and NIPT response Society in NIPT at updated did to all Maternal-Fetal cell-free I coverage posted top on later, the updated Days the for of moves average mentioned the noting a as these future. lives, DNA for call, the significant the in for to In front. suggestions, of coverage adoption bode significant that continued see could we of temporarily women of standard their care represents a all covered This movement Aetna

penetration the do large profit, we be coverage have gross from NIPTs a on profit. full we coverage we would getting We very and full that today. very risk a market. can deeper include basis average our before, the the impact volume alone, meaningful large not estimate the ongoing into million today $XX mentioned Hitting of in an average are average perform not risk we from worth, volume paid in does gross on significant uptick As portion risk on figure roughly

Okay. unit On economics, our ASPs now COGS. to details the and of

and to consider carefully key for Natera these measure progress execution. the might break-even along that you volume calls, of track health revenue reproductive those these and be to our cash with towards for we measuring growth, metrics we business our earnings new our metrics For flow

We to you and good are quarter, the ASPs see both really as news COGS can pleased this on page. have on

the that this ASPs were with On ASPs, revenues modestly initially assumption year. guided to that XXXX decline recall going we

largely conservatism, with to reimburse QX. ASPs largely to in higher drive continue REIT This said we As in to is payers we’ve out March, their improving this time fraction due of of the was but us. pleased been contracted

QX. soon I volume plus because the R&D supply to efficiencies, meaningfully in relatively described think stable, was risk not ASPs to average can XXXX, long in into stable, the chain effect The rapid also drop and increase initiatives the remains we we enough underlying experienced executed especially impact lab due quarter. As the COGS and payer environment in coverage remain come did as in expanded

job us COGS the in have you done lean the who report of higher Those volumes. get QX, often that to lower extra in when years, with faced runs for lab the unit because we have know term per immediate followed

per the that measures fixed unit be have than affect partly higher we will to implemented COVID-XX-specific lower volumes some level Hazard QX, Pay we over employees and expect expect for We COGS. base because like COGS in this temporarily be to same

the numbers did COGS shows these time. with XXXX we threshold launch said performance, Having we we that that, months, push being over over XX intend the next during project, previously to the think, not $XXX that the projects described. the I QX number launched COGS include beyond coupled QX this And can

Okay.

organ transplant. to on Now

unique product Program, seen Access the including transplant for rejection ability the significant time Early top identify mediated seen. offering, best-in-class which negative would transplant that sensitivity welcomed important long interest our be our the During we’ve values, We’ve exactly predictive the centers. said as a has That’s to seen for what T-cell and alternative a from we’ve community.

we’ve response now is for by indicates centers and shows incredible volume of thus need The in we’ve ours place place potential seen seen order, test really the orders this roughly our the XXX This XX% XX% top and the ability of to like market. short of strong very the top long-term In far, centers the XX market. penetrate orders. a

are enrollment seeing also in strong ProActive our We trial.

examine X,XXX expectations. many In ProActive soon, a leading kidney coming over identify As five-year centers, a to XX exciting organ patients. reminder, and and short very with to time, activated three we’ve period already the utility of follow This is the we’ve Prospera patients rejection. enrolled to has will accurately our of transplant online a more XXX outpaced

pandemic a seeing our about transplant significant obviously we’re COVID-XX growth And space. over building in volume remote interest the an in Although, due again, within the we’re part, ramp, long-term, monitoring. business to impacted excited

toward time. just scale before that in milestone and are on Noridian presentation a we of validation data. early phase have shown, the volume is start slide Medicare. next billing LCD The announced the hit since we we’ve chart commercial demonstrated our can access awaiting launch can that think We’ve we We the our we same every just the

program, coverage and guidance MolDx Noridian the reminder, positive Noridian’s a coverage decision the to in polished already expect soon. As where final a come of received we’ve we

updated our Now, hand on the over in progress an call Solomon I oncology. would for like to to update –

Solomon?

Solomon Moshkevich

Steve. Thanks,

clients On work both front, year. development engagement And programs with continues Medicine. from under and our the partnerships, partnership this both in pharmaceutical Foundation we BGI our initial expect

retrospective trials, the described Access centers. clinical top business, to continue previously, In having good terms direct reps very sales In momentum hired well we late direct first majority institutions, we with NCCN last for now as using see Early future clinical in of we’ve Signatera top bank with year samples. the studies academic the contracted revenues, and including pharma started of as worked business, an of as prospective our Program the phase we a

And as QX. pandemic. COVID-XX, pleased due with was of trajectory are received ramp we’ve We our the in also impacted early help significant a in to mitigate although, interest using the way effects the to Signatera

volumes April. seeing again, start now to are in We grow,

by disrupted coronavirus significantly outbreak. the has care Cancer been

As immune cancer looking patients are which reevaluating are of remote many have Doctors many exposure, are solutions the risk monitoring weaken the benefit surveillance standard for been system. CT risk from at and elevated canceled. chemotherapy, and visits can adjuvant scans

oncology We last can An called new be specifically, COVID-XX month the adjuvant slide treatment environment. an published as our colorectal article these and think help out and summarized II draw in early-stage in actually pandemic colorectal cancer practice Signatera and remote blood really adjusted where Stage surveillance JAMA example as especially the programs this scenarios, III can in adjuvant about our cancer with with during of on capability. for

previously, clinical of per has tests gives the oncology year, which we’re X million indication unlock. to a the size these described believe beginning translate this we’ve to of As we markets, sense to you just opportunity over

was Institute, Harvard Oncology, from peer-reviewed University yet III cancer, and old technology’s Cancer report, of cancer, GI XX-year a with Precision in recently radiographic demonstrating cancer. highlighted imaging. type in published in another recurrence days followed This Dana-Farber was recurrent the esophageal whose esophageal detected Signatera published which of utility XXX before Stage this by and a JCO new man, capabilities the The co-authors study, case time was

a showing multiple that undergoing was patient’s scan, part working. liver, tissue later designed, exactly standard the the the FoundationOne PET of case ordered to this revealed way escalated off in the assay been had of partnership removed. already physicians his patient’s test based surgically envisioned a care, After we that scans, the of as a Furthermore, bespoke no nodule signs was in cancer, which CT four-centimeter

We’re about our with demonstration Medicine. of the principle very technology for on proof our the Foundation pleased of of potential and collaboration this

We data position also continue with in applications. leadership to expand our validation MRD testing

our were ASCO, we meeting and oral this For and the in data, virtual cancer. a three is presenting other an ASCO with colorectal expanded to data presentation we at an year, time, look posters. collaborators early-stage awarded this first along forward holding set with accepted

coming this posters presentation oral XXXX. an up at conferences later at have ESMO GI, in also We multiple year and

we Neoadjuvant front, publication currently data the in that a Breast have set four On we in study of ISPY-X to papers with treated in published, the the already patients, Cancer. and five immunotherapy the INSPIRE addition papers submission, including have pan-cancer in

data five This Meanwhile, we growth future studies our currently will to have unlock flow of types, pharma new cancer least range different cohorts across indications cancer from and help our in undergoing plan many use where at which additional laboratory, publications. different we of analysis drive the types. to new business, clinical support

Some this in of with clients. our the data expect presented year collaboration some will actually be pharma of

CIRCULATE-IDEA both this in trials. trial here patients is forward this the year, but find of prospective that on CRC the go moving key we’re of cancer, And to our of all in update the we still The from our own the All in first trial. addition scheduled all details is remarks second investors of for BESPOKE quarter announced studies, enroll the into and new events to on website. trials, previously our can that I’m still not these again, past these on we going prepared to are in colorectal Japan

final second-half LCD. for Medicare in generally Finally, the comment to we’re year, ended XX-month The which smoothly track year, we’ve the would went window this period still final on decision of receive publish in discussed there’s Medicare and in QX coverage which last previously. of a as public the

look also We’re details coverage to that Medicare the in with more on and active future. for forward indications, on I new discussions in sharing

hand Mike Now, review I’m financials. to going over call to the the to Mike?

Michael Brophy

Solomon. Thanks,

quarter on results summary see slide. the can for the You the

earlier for we additional April. the above $XX in receipts the in preannounce which preannouncement revenue for the periods. that The call, tests cash quarter, reported gave for was additional driver at the in we we As mentioned key above million Steve is in came the prior out

to our As for periods has we’ve approach past, exceed continue to accruals the are revenue XXXX about cash in for those to conservative we see XXXX collections expectations. quarters talked to in to be proven pleased and

and revenue QX described, progress Steve on XXXX. driven that ASPs slightly strong and revenue primarily growth volume SMI, to of was revenue by lower and and QX the improvement in both performance made margin COGS. the BGI but recognition and was that As partnership quarter, versus with continued We gross contributed both

lab the up, as safe low expand that we the capacity. are deal we related next and move we this are year far with through that to cautiously our We mentioned, We few to additional this year. balance Steve productive ensuring reimbursement level from has as this do of so pleased and the optimistic COGS can as stable in quarters, performance and the is environment remained maintain the expenses expect we

demonstrates quarter the per up $XXX volumes. to this over time, reproductive health cost the of blended sold majority makes can think, currently below I particularly our we unit which for But get goods vast business,

expected, clinical increases both the On Expenses business saw transplant we volumes ramp over stable, the the continue trial last expenses as in even health to year, front, operating as in and we as commercial remains reproductive ramp. and oncology. effort

us part to world break-even achievable So little to that the back the resume cash a when path gets our and that more to volumes. normal is that in demonstrates we flow growing can business of

COVID-XX the we through know, on you around situation, being and some the impacted. the where, guide are specifically, for year, gave Steve color we given went As the unknowns

encouraging, to forecast data weekly growing preliminary to return in can we for the units While it looks when early on we volumes. April is too precisely received early and think May us

this everything year, today. based certainly we we on So to expect that know happen

and strong on be done despite and feel execute overbed this plans the retired, note we COVID-XX very cash now a position, disruption. we’ll deal our to in convert able the With we are

the operator to for hand that, With me over questions. let call the Operator?

Operator

with comes from of Our line [Operator Doug Cowen. first Schenkel the Instructions] question

Your line is open.

Doug Schenkel

guys. afternoon, good Hey,

about weeks earlier, your you consistent levels saw last talked in with what a the quarter, drop of the weekly around mentioned in remarks, two versus QX as you you of XX%. prepared So

seeing since talked about improvement then. You’ve some

just more. than is have little lot XX of typically QX. QX, weren’t lower to unpack So volume but than QX expected for If part. it a still QX? momentum try the to that to had weeks first through you the a lower That’s QX would of bit COVID, you volume be first

population how Second versus QX? the XX% tried volume was this drop And in much more, likely is, better hindsight, you’ve of a as bit the function part since of And concentration then to fact in dissect little third has your of been part your a up, the trends just have a not the density is, but new the is end improvement, function market maybe as presumably certain don’t have you much exposure? since that the hotspots? popped and response, also hotspots as

Steve Chapman

Yes. Doug. Steve. is This Thanks,

just in the we I’ll the weeks XX from So clarify. about is said two first last remarks average the What were prepared XX% March the in weeks down the quarter. of of

record you of first period period As of that was for sort know, blowout time a XX-week us.

is and drop roughly QX of in the weekly that roughly it line XX% So sort was average. our volume from of with

actually We region which segment you’re in But looking it on somewhat, quite the looking and of which varies business April. you’re at have recover the nicely seen depending business at.

the So although, we’re as as like seen appointments positive, some outlook this in, statement hit that harder loosened we’ve see still example, to come for get ASRM rescheduled. is we from the mentioned, new come that waiting bit, the little out a areas of they’ve guidelines as IVF,

in levels now the were actually business we’ve levels. certain the peak of back peak areas or exceeded to Other actually segments, previous

about and April. the the trajectory recovery in about good we’re feeling So good

I the do impacted close has and go new ability think, somewhat. customers out to raw

think, of of have we pushed that while business close lost, I and new that so think, general, the of a pipeline we we do out to customers will the closing lot we’re able is slightly. getting I be business back in sort seen occur. do certain And

Doug Schenkel

new challenging in more Okay. terms think front be just it’s openings, that right a would in now, practices. helpful. And given practice to I get That’s would of of little harder

about kind now, should be but if And we trajectory? second-half new same most we maybe growth think volumes? not volume So most something of that is as stores for cognizant of your versus of so, that right is of, your QX,

Steve Chapman

example, seen Yes. in new close environment, customers up some have set signs for very of oncology and phlebotomy I we’ve and into in for that go to transplant, many put mobile slick Well, and have, into we others helpful can certain I those this areas, I we’ve office. lot think, organ like activities mean, not very do a the we digital look, And patients it’s capability. definitely have think, this to effort

they’re some mobile interested, patients So we the are capabilities particularly monitor the remotely. or new seeing accounts on, where in to ability come

I customers want same-store same the get sales. think, and our accounts the up service. that access go goal – to new And look back time the build was first out may to then and existing for at

think comparing new COVID back. occur, both seen if base offices steam be closing ahead, not – the it were no day. the to going customers certainly as reps the where of there’s to an would walking we’ve and I coming full pandemic, So be customers environment, into ramp we close new it business But do every is same,

and business can you seen pace we at but same are, close the not going otherwise. to be it’s have new that So would we

want would you anything Yes. Mike, Mike, Solomon, to to to add? anything that? add also

Michael Brophy

No.

covered it. you think I

Doug Schenkel

average temporarily suggest permanent? then risk one And the these some NIPT would Any decisions into could patients moved payers to with have discussion coverage that for of expand be that made last me.

Steve Chapman

do you want to Mike, Yes. that? take

Michael Brophy

for the limited – explicit had coverage The mean in so thanks them policies and have duration. them, questions. they’re their that coronavirus seen addendums out we’ve outbreak I to come to time Yes. the linking

got So for it’s document we’ve tell just see. going period an you to there’s that on extended time. the to of nothing in would that go But

practice additional think, right societies. from I instructive the to heels that I policies the mean, and expansion come professional seem the recommendations on coverage of it’s

the think, I those know, that would policies society would don’t so kind think, we And professional expect we coverage while recommendations. I follow of

that possible it’s it could continue. So

Doug Schenkel

Thanks a right. All Okay. lot.

Operator

the our comes from line Thank Peterson question And you. of next Tycho JPMorgan. with

open. line Your is

Eleni Apostolatos

for Tycho. taking questions. Thanks on this Eleni Hey, for is our

can opportunity. firstly, help I wondering, was you frame the Aetna if So

gross risk you’re about unreimbursed $XX from average seeing million today, volumes. that in profit mentioned You

that the if Aetna? Aetna piece was Just much how or of what of includes remainder, And is United? that wondering,

Steve Chapman

Yes. you that? Mike, why don’t take

Michael Brophy

Yes. Sure.

as covered background, XX – the remaining, lives the circa XX million million covered United is About lives risk the a lives. about So NIPT. range million covered those covering States. lives of count of to XXX lives plans. on And policy XXX just already United average their in they’re had And there’s commercial million million, depending how is XX Aetna in XX bigger, million some of ancillary more you covered

think So if a the that’s on they’re a of commercial percentage lives, of as approximation reasonably total commercial Aetna covered their our you in lives think, the about circa And XX% I of the States. impact good United business.

in it’s – us. a certainly enormous it’s it’s ASP but It’s trajectory, for So an certainly, our a not a tailwind contributor. change

The biggest the I covered average one, maybe plans, mean, long and et into Humana, for lives tail. loose got kind commercial then it really you’ve is cetera. risk of assortment a gets next of the balance of the an

not good it’s a and majority. the it’s So contributor

a remarks quite my is United bit obviously from bigger. see can that You

Eleni Apostolatos

over we whether scheduled in you. for policy, is, with conversations whether helpful. what the May released? That’s wondering, could any I X? temporary was had policy review could plan, of And terms of the for you’ve could permanent the be temporary see them after precursor whether next believe, comment was which of question Thank Aetna’s come out a a And I on policy also you then, Aetna’s

Steve Chapman

Yes. that. on comment I’ll

flow limited. et don’t to public anything, companies, pretty mean, cetera. information when generally, give They keep the you they want the So discussions I have these away with plans,

large We the road get do to don’t long-term feel you map. tend of follow positive They generally with payers. exact professional societies. So these all

that We’ve said that from heard there’s positive something ACOG. before we coming

We continue to hear that.

in what it positive. it’s be exactly know but to recently to there again, drafted that and going know says don’t fact, that’s something there’s In more the we that, we’ve do don’t know that’s come near and the in background. when future, that’s released We heard we out, going

mentioned of SMART sort also all this study. of I backstopping the is

you Natera of the details years. XX,XXX remember a several the if studied period SMART patients, over of So prospectively study,

years data later expect roughly trial that year. the ago, started to we five published and be think, I this

we and very both opportunity that if think we a rest looking market we’re largest the and actually NIPT. chromosomal there been of has significant the And forward, will way the microdeletions study, ever And the at prospective aneuploidy not in of be that study done that’s the field move by to then. NIPT think

everything really Aetna what respect move are and going to we obviously, can plans and don’t others business say. engage and doing forward, them United to know but exactly the their to we specifically, With we’re with

expect them society guidelines. We to track the

Eleni Apostolatos

then And two the also delays terms in the Thanks. March. was I in lastly, wondering, of of you’ve weeks last seen

to could specific if NIPT? later, testing seven-week sooner of be it the those any we due wondering, postponed can to NIPT, can could how come other for Just much than dynamics And window back see about you there? patients talk and whether some rather

Steve Chapman

couple in prenatal business. And transplant a since whether how the low Yes. for last on a that the I sector manage worst period the or definitely think, of going March. pretty it’s recover two disruption in the or we out it of business, as figure where there’s last probably in weeks in period that to of of of time they were have the everyone time our oncology, we would see March. sort sort every of I way, And think, across that different meaningful volume whether products seen it’s weeks of

environment that and practice how out – in they’re then this going and to is pushing Now of play the some operate restarting. figuring is button

catch on going patients. then is in or is our mobile it and solutions, customers us up remote and closing new of of Some new some and enrolling that customers out

that back gone there patients out on seen don’t I significantly, come – haven’t things, in we’ve shift a meaningful the and a ages they at and anyway. bolus NIPT would gestational think average We of and looked gestational through catch-up we in very age big the were that But pushed front. haven’t be such seen

Eleni Apostolatos

helpful. That’s Thank Great. you.

Operator

of line Max the with from Masucci comes Genuity. question next Our Canaccord

Your is open. line

Max Masucci

report questions. in not we’ve And the I the volume sharp have certain seeing COVID-XX inundated expectations Are do that’s you labs share COVID-XX? to of NIPT, large you larger testing? gains taking any for sort any related seen with thanks testing are central evidence lab for of there? Hi, know, declines as competitors

Steve Chapman

been environment were in we’ve all know, think, I long Certainly, time. very I we a to a market. competitive fourth you NIPT the for mean, Yes. as

We’re now market leader. the

of come does lot from or our a So growth competitive volume gains wins.

it think, same they more offering. offering that type capabilities mobile already. sort box I going are smaller, of not the competitors laboratories sure, big are I’m they’re I’m targeted sure, same many not of we’re necessarily, way. after whether that if will, the the in

the for user on The quality services these advantage had But all that, and us, set up. entered unique to our was experience. period product of we’re focus already and on we remote this as the into significant win continuing we differentiators our

remote counseling. genetic So

We have patient can that in chat to various talk ways we that in-house. bots, built the

go didn’t them. built in We did We draws XXXX. We and more XX,XXX mobile those acquire capabilities. than just out

as we we step significant mobile lot in in requested without being able physicians, and service our ramp it saw of a that from operational accessibility So were challenges. to

Max Masucci

Thanks. an you that colon? about finalization expecting Great. are speak you might the be Signatera max, just And recently the existing any gotten And of have to then opinion on the for Noridian, maybe you pegged to around still timing you’re to and namely can disruption how color major your then any COVID-XX shaped seeing the monitoring market? test with new or pricing,

Steve Chapman

Yes.

with contact constant in we’re So program. MolDx the

a final need expect various to those we’ve a the lot additional we’ve issue oncology to they think, in coverage I that products. on point. excited mentioned, about, decision that’s there’s we have and other there’s time on products generally to As at which outlined. we’re focus line very and been oncology to we’re about which Certainly, within continuing timeline space, issue to By this the discussions max, done pre-submissions the

any there disruption. On direct and don’t makers this sort the point. colorectal very additional have any to other with of again, also the expect not we’re but at products we only don’t we the be pricing, in having decision continue to We about about key we’re be positive updates discussions And that feeling in test, discussions significant oncology.

final that goes expect We MolDx place. coverage to the after decision occur in

Max Masucci

for questions. Thanks taking Great the

Operator

line Alex you. Nowak And question the next from comes Thank with our of Craig-Hallum.

open. is line Your

William Fafinski

questions. the Thanks on Great. here. for Good actually afternoon, This Fafinski everyone. taking Alex is Will for

me, adoption recently is the sites. study, progress trial? doctors the published for is beyond enrolling transplants, being who the Prospera registry you study, showing for how weren’t on test the among How of Meaning registry there? enrollment one used the First ProActive

Steve Chapman

Yes.

announced we numbers about we talk the penetration. did there, So haven’t volume but

said have top by transplant XX% during XX the XX% by Program. volume we centers the and top think, centers volume product XXX of I transplant the Early Access of the used

ProActive. Some are ProActive are but of figure I of or are you can mean, ones the kind that that test. are run the out not, there’s outside in and of engaged using math which many those ProActive just

a really accounts. types different see we of of handful And

on. I patient that want think, specific donor-derived some they order have to testing cohorts

think, order very as some But want a care. market I to it only large of opportunity, believe today. this is routinely, patient penetrated that’s part overall, we about more their X%

year. competitive activity of monitored be – Despite the there’s in just on think, between others of need I that the run to the us amount when total all of per numbers you and patients an enormous greenfield the field, number opportunity

the it. from about physicians what in expectations, meets really excited gotten X%. feel and product. to second, really we than penetrate The and a both capability for they’re early this looking we’ve our in larger much make feedback And So that

William Fafinski

guidance fair you provided original sales Got the range you potential on during obviously that to gains monitoring share beginning keep Aetna, and the ability remote me. it. still I followed Natera COVID, time. suspended the year? appreciate hit UNH, the that coverage companies guys And Mike, at the still there. then is and for say of one guidance could at is But some this to track? just approach second temporary the Is other of the the color pipeline of with with it

Michael Brophy

the It’s historically, is starts. get are been certainly to to account rep just startups previously. new you And now in much obviously, in variables, sales of with remote started. possible. need a which new be the And touched one more had center account physician accommodating diagnostics, office on a key Steve the the they But physicians in or than to

forecast. for hard very us to just that’s it’s But –

we of it just over And points, to so right we the look it’s back And at would the like to and we in you as with this new August. to think, to honestly, get course more then monitor environment now, come summer, that. data wise

William Fafinski

taking questions. me. guys, it Got for it. Understood. the Thanks, for That’s

Operator

Thank you. showing I’m any questions. not further

Steve Chapman

joining. appreciate Take Well, you thank much. care. you We so Great.

Operator

program. Ladies and gentlemen, conclude this does the

You may now disconnect.

Natera (NTRA) 8 May 202020 Q1 Earnings call transcript