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3 5 T H A N N U A L J P M O R G A N H E A LT H C A R E C O N F E R E N C ES A N F R A N C I S C O
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
INVITAE:Taking genetics from downstream to mainstream
© Invitae Corporation. All Rights Reserved. | CONFIDENTIAL | 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 its estimated financial results for 2016, including revenue levels, the cost of
goods sold, and the number of billable tests delivered; the number of genes in its test menu; the nature and extent of future reimbursement
coverage; the company’s expectations regarding continued growth in 2017 and to be cash flow positive by the end of 2018; the timing of any
new testing service releases and the benefits and attributes of any such services; potential market opportunities; and the AltaVoice
acquisition and its ability to accelerate the company’s genome network. 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 completion of the company’s fourth quarter and year-end 2016 financial
statements and audit and any adjustments that may result from that process, including auditor review; 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 privacy
laws and potential regulation by the Food and Drug Administration; risks associated with the company’s limited experience with respect to
acquisitions and its ability to integrate AltaVoice successfully into its existing 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 September 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 Corporation. All Rights Reserved. | CONFIDENTIAL | 3
Genetics: real progress is catching up with the exuberance
© Invitae Corporation. All Rights Reserved. | CONFIDENTIAL | 4
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 pricedgenetic 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
© Invitae Corporation. All Rights Reserved. | CONFIDENTIAL | 5
Best cost infrastructure continues to deliver
COGS per sample
Q1:15
$1100
Q3:15
$730
Q3:16
$450Q1:16
$600
Estimates.
E S T A B L I S H I N G L E A D E R S H I P I N T H E R A P I D L Y E V O L V I N G L A N D S C A P Eü Cost of Goods (COGS)
Steady reduction in COGS to ~$450 in Q3 2016
© Invitae Corporation. All Rights Reserved. | CONFIDENTIAL | 6
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.
E S T A B L I S H I N G L E A D E R S H I P I N T H E R A P I D L Y E V O L V I N G L A N D S C A P Eü Cost of Goods (COGS)
Steady reduction in COGS to ~$450 in Q3 2016
ü ContentExpanded to more than 1,100 genes in production and leap-frogged our 3,000 gene target to prepare 20,000 gene exome ready for release this quarter.
Content available
© Invitae Corporation. All Rights Reserved. | CONFIDENTIAL | 7
Tripled our volume year-over-year with a dramatically more efficient commercial model
Q1:16
9,700
Q4:16
20,000
Q2:16
12,000 Q3:16
15,200
Estimates.
E S T A B L I S H I N G L E A D E R S H I P I N T H E R A P I D L Y E V O L V I N G L A N D S C A P Eü Cost of Goods (COGS)
Steady reduction in COGS to ~$450 in Q3 2016
ü ContentExpanded to more than 1,100 genes in production and leap-frogged our 3,000 gene target to prepare 20,000 gene exome ready for release this quarter.
ü VolumeGrew our volume by ~200% year-over-year with targeted sales force speaking to highest quality (as good or better than competition based on head-to-head data) at affordable prices - and clinicians love our mission.
Volume by billable report
© Invitae Corporation. All Rights Reserved. | CONFIDENTIAL | 8
Oncology represents a rapidly growing opportunity, but is one of many disease areas we will address
00
Q1:16
1,500
Q4:16
4,200
Q2:16
2,500Q3:16
3,200
Estimates.
E S T A B L I S H I N G L E A D E R S H I P I N T H E R A P I D L Y E V O L V I N G L A N D S C A P Eü Cost of Goods (COGS)
Steady reduction in COGS to ~$450 in Q3 2016
ü ContentExpanded to more than 1,100 genes in production and leap-frogged our 3,000 gene target to prepare 20,000 gene exome ready for release this quarter.
ü VolumeGrew our volume by ~200% year-over-year with targeted sales force speaking to highest quality (as good or better than competition based on head-to-head data) at affordable prices - and clinicians love our mission.
Non-oncology volume
© Invitae Corporation. All Rights Reserved. | CONFIDENTIAL | 9
Unprecedented payer economics…rapidly evolving dynamics
Q1:16
5.5M
Q4:16
175M
Q2:16
41MQ3:16
95M
Estimates.
E S T A B L I S H I N G L E A D E R S H I P I N T H E R A P I D L Y E V O L V I N G L A N D S C A P Eü Cost of Goods (COGS)
Steady reduction in COGS to ~$450 in Q3 2016
ü ContentExpanded to more than 1,100 genes in production and leap-frogged our 3,000 gene target to prepare 20,000 gene exome ready for release this quarter.
ü VolumeGrew our volume by ~200% year-over-year with targeted sales force speaking to highest quality (as good or better than competition based on head-to-head data) at affordable prices - and clinicians love our mission.
ü ReimbursementSignificantly expanded in-network coverage to more than 175 million lives by contracting with Medicare and the largest private payers.
Covered lives network
© Invitae Corporation. All Rights Reserved. | CONFIDENTIAL | 10
Revenue growth set to outpace volume growth in 2017
Q1:16
4.0MQ2:16
5.6MQ3:16
6.4M
Estimates.
E S T A B L I S H I N G L E A D E R S H I P I N T H E R A P I D L Y E V O L V I N G L A N D S C A P Eü Cost of Goods (COGS)
Steady reduction in COGS to ~$450 in Q3 2016
ü ContentExpanded to more than 1,100 genes in production and leap-frogged our 3,000 gene target to prepare 20,000 gene exome ready for release this quarter.
ü VolumeGrew our volume by ~200% year-over-year with targeted sales force speaking to highest quality (as good or better than competition based on head-to-head data) at affordable prices - and clinicians love our mission.
ü ReimbursementSignificantly expanded in-network coverage to more than 175 million lives by contracting with Medicare and the largest private payers.
ü RevenueIncreasingly predictable throughout 2017
Revenue
© Invitae Corporation. All Rights Reserved. | CONFIDENTIAL | 11
Building the foundation for long-term growth
ü Cost of Goods (COGS)Steady reduction in COGS to ~$450 in Q3 2016
ü ContentExpanded to more than 1,100 genes in production and leap-frogged our 3,000 gene target to prepare 20,000 gene exome ready for release this quarter.
ü VolumeGrew our volume by ~200% year-over-year with targeted sales force speaking to highest quality (as good or better than competition based on head-to-head data) at affordable prices - and clinicians love our mission.
ü ReimbursementSignificantly expanded in-network coverage to more than 175 million lives by contracting with Medicare and the largest private payers.
ü RevenueIncreasingly predictable throughout 2017
ü Business ModelGuiding to positive cash flow by end of 2018, demonstrating operating leverage to build a dynamic industry leader with 50%GM, 20% S&M, etc.
00
Q1:16
-$209
Q4:16
Q2:16
-$74
Q3:16
-$64
E S T A B L I S H I N G L E A D E R S H I P I N T H E R A P I D L Y E V O L V I N G L A N D S C A P E
Estimates.
Gross margin positive
© Invitae Corporation. All Rights Reserved. | CONFIDENTIAL | 12
Invitae is no longer a concept story – but a company with what we believe is the
fastest growing market share in the genetic testing industry, on a clear path to lead in
bringing genetics from downstream to mainstream medicine
© Invitae Corporation. All Rights Reserved. | CONFIDENTIAL | 13
Expand content
Improve customer
experience
Drive Volume
Attract Partners
Growth
Lowercosts
Lower prices
A simple yet powerful strategy to improve healthcare
© Invitae Corporation. All Rights Reserved. | CONFIDENTIAL | 14
Expand content
Improve customer
experience
Drive Volume
Attract Partners
Growth
Lowercosts
Lower prices
Partners contribute to the acceleration of our mission
© Invitae Corporation. All Rights Reserved. | CONFIDENTIAL | 15
Patient advocacy groups represent influential voices in facilitating diagnosis and treatment
§ Serve as influential custodians of patient and clinician relationships
§ Help drive awareness of a proper diagnosis and potential treatments
§ Identify large populations withdemand for genetic informationto aid in maintenance, treatmentand biopharma discovery
© Invitae Corporation. All Rights Reserved. | CONFIDENTIAL | 16
Commercial partnerships benefitting from a developing win/win/win ecosystem
& others
§ Driving the market toward comprehensive, high qualityvalue-based genetic information management
§ Leverage our infrastructure for medical interpretation at scale into newly developing markets
§ Address lower cost screening markets with best-in-class offering
© Invitae Corporation. All Rights Reserved. | CONFIDENTIAL | 17
Pipeline of personalized medicines expands markets, drives volume
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
§ Upload Medical Records
§ ImportClinical Data
§ Disease Education
§ Learn from Other Patients
§ Take Surveys
§ Get Reminders
§ Adhere to Protocols
§ Get Screened for Clinical Trials
§ A patient-centered data company optimizing the search for better treatments § Builds and hosts Patient Insights Networks (PINs), which collect, curate and share
patient and clinician reported health data§ Shares Invitae’s core principles that i) patients own and control their data and that
ii) genetic and clinical information is more valuable when shared
An acquisition that accelerates the Invitaegenome network
Easy and engaging patient experience
§ >75,000 patients
§ 80+ registry programs
§ 400+ diseases
§ 100+ advocacy organizations
§ Industry sponsors
§ 9 PCORI PPRN programs
§ 2 NIH programs
§ International presence
Reach Partners
An acquisition that accelerates the Invitae genome network
© Invitae Corporation. All Rights Reserved. | CONFIDENTIAL | 21
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
© Invitae Corporation. All Rights Reserved. | CONFIDENTIAL | 22
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
Preventative health
Newborn screening
Genetics will inform medicine over the course of apatient’s lifetime
© Invitae Corporation. All Rights Reserved. | CONFIDENTIAL | 23
Expand content
Improve customer
experience
Drive Volume
Attract Partners
Growth
Lowercosts
Lower prices
The flywheel is in motion…
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© Invitae Corporation. All Rights Reserved. | CONFIDENTIAL | 24