Core Insights - CareDx (CDNA) shares increased by 6.1% to close at $25.07, attributed to higher trading volume compared to typical sessions, with a 3.4% gain over the past four weeks [1] Financial Performance - CareDx is expected to report preliminary fourth-quarter 2024 revenues between $85 million and $86 million, reflecting a 30% year-over-year increase, surpassing the Zacks Consensus Estimate of 25.2% growth [2] - Testing service revenue is projected to rise nearly 35% year-over-year, driven by a 14% increase in volumes [2] - The company anticipates quarterly earnings of $0.07 per share, representing a year-over-year increase of 141.2%, with revenues expected to reach $82.12 million, up 25.2% from the previous year [3] Earnings Estimates and Stock Performance - The consensus EPS estimate for CareDx has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] - CareDx currently holds a Zacks Rank of 3 (Hold), while another company in the medical services industry, Avantor, Inc. (AVTR), has a Zacks Rank of 4 (Sell) [4]

Group 1 - The article discusses the process of identifying potential investment opportunities for the "Bioreactor" growth portfolio within the Compounding Healthcare Investing Group [1] - The focus is on innovative companies that are developing breakthrough therapies and pharmaceuticals, particularly those with catalysts for potential acquisitions [3] - The investing group offers several model healthcare portfolios, a weekly newsletter, a daily watchlist, and a platform for dialogue and questions among members [4] Group 2 - The author has a beneficial long position in the shares of TMO and BIO, indicating a personal investment interest in these companies [1] - The article encourages readers to explore the subscription marketplace service, Compounding Healthcare, for more insights into investment methods and opportunities [2]

Group 1 - CareDx (CDNA) is currently outperforming its Medical sector peers with a year-to-date return of approximately 113.7%, compared to the sector average of 2.1% [4] - The Zacks Rank for CareDx is 2 (Buy), indicating a positive outlook based on earnings estimates and revisions, with a 16.7% increase in the consensus estimate for full-year earnings over the past 90 days [3] - CareDx is part of the Medical Services industry, which has an average year-to-date loss of 5.4%, further highlighting CareDx's strong performance relative to its industry [5] Group 2 - Clover Health Investments, Corp. (CLOV) has also shown strong performance with a year-to-date return of 260.3%, and it holds a Zacks Rank of 2 (Buy) with a 7.7% increase in the consensus EPS estimate over the past three months [4][5] - The Medical sector consists of 1025 individual stocks and currently holds a Zacks Sector Rank of 3, indicating a moderate strength among its groups [2] - The Medical Services industry, which includes CareDx, ranks 138 in the Zacks Industry Rank, while the Medical Info Systems industry, which includes Clover Health, ranks 34 [5][6]

Core Viewpoint - CareDx (CDNA) shows potential for significant upside, with a mean price target of $34.67 indicating a 49.9% increase from the current price of $23.13 [1] Price Targets - The average price target consists of six estimates ranging from a low of $28 to a high of $40, with a standard deviation of $4.97, suggesting a consensus among analysts [2] - The lowest estimate indicates a 21.1% increase, while the highest suggests a 72.9% upside [2] Analyst Sentiment - Analysts exhibit strong agreement on CDNA's ability to report better earnings than previously predicted, which supports the expectation of stock upside [4] - Over the last 30 days, the Zacks Consensus Estimate for the current year has increased by 15.7%, with three estimates moving higher and no negative revisions [10] Zacks Rank - CDNA holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for near-term upside [11] Earnings Estimate Revisions - There is a strong correlation between trends in earnings estimate revisions and near-term stock price movements, suggesting that the positive revisions could lead to stock price increases [9]

CareDx (CDNA) has been on a downward spiral lately with significant selling pressure. After declining 12% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier.Guide to Identifying Oversold StocksWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is over ...

For those looking to find strong Medical stocks, it is prudent to search for companies in the group that are outperforming their peers. CareDx (CDNA) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Medical peers, we might be able to answer that question.CareDx is a member of the Medical sector. This group includes 1024 individual stocks and c ...

Financial Data and Key Metrics Changes - CareDx reported revenue of $82.9 million for Q3 2024, representing a 23% year-over-year growth [9][36] - Adjusted EBITDA was positive at $6.9 million, an improvement from a loss of $10.9 million in the same quarter last year [10][38] - The company ended the quarter with $241 million in cash and cash equivalents, with no debt [10][38] Business Line Data and Key Metrics Changes - Testing Services revenue was $60.8 million, up 27% year-over-year, with approximately 44,600 tests delivered, a 16% increase from the prior year [11][36] - Patient and Digital Solutions revenue was approximately $12 million, reflecting a 20% year-over-year growth [20][37] - Lab Products revenue reached $10.2 million, marking a 7% year-over-year growth [23][37] Market Data and Key Metrics Changes - The company added four million commercial-covered lives in Q3, bringing the total to approximately 31 million covered lives nationwide [19][37] - The Centers for Medicare and Medicaid Services reaffirmed coverage for solid organ transplant monitoring, which is expected to positively impact testing volumes [14][19] Company Strategy and Development Direction - CareDx is executing a strategy to engage transplant centers with a synergistic portfolio of testing, digital, and lab products, aiming for long-term profitable growth [12][29] - The company has reorganized its go-to-market team and is expanding its sales and marketing workforce to capture growth opportunities [13][27] - A three-year growth strategy targets $500 million in revenue by 2027, with a focus on innovation in diagnostics [29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term profitable growth, citing strong execution and a solid balance sheet [10][51] - The company anticipates a gradual return of surveillance testing protocols at transplant centers over the next two to three quarters [14][62] - Management raised revenue guidance for fiscal year 2024 to $327 million to $331 million, reflecting a growth rate of approximately 17% year-over-year at the midpoint [32][46] Other Important Information - The Department of Justice closed its investigation into CareDx with no findings of wrongdoing, following a similar decision by the SEC [30] - A competitor has dropped patent infringement claims against CareDx, allowing the company to focus on its core business [31] Q&A Session Summary Question: Insights on Q4 guidance and trends - Management indicated that Q4 revenue is expected to be in line with Q3, primarily due to prior-period revenue items [54][56] Question: Surveillance testing recovery timeline - Management noted a modest shift in testing mix towards surveillance and anticipates a gradual return to pre-pandemic levels over the next two to three quarters [62] Question: Capital allocation strategy - The focus remains on growth and profitable growth long-term, with share buybacks considered after reinvestment in the core business [63] Question: Expansion of commercial payer lives in 2025 - Management expects significant growth in covered lives in 2025, particularly for AlloSure Heart and AlloSure Kidney [70] Question: Trends in transplant procedures for 2025 - Management anticipates mid-single-digit growth in the transplant market, with no immediate catalysts for increased procedures [80][81] Question: Framework for surveillance opportunity - The focus is on implementing surveillance testing protocols for newly transplanted patients, with potential for increased demand as new therapeutics emerge [85]

Financial Performance - Total revenue for Q3 2024 was $82.9 million, a 23% increase year-over-year[9] - Testing Services volume reached 44,600 tests, a 16% increase year-over-year[9] - The company achieved a GAAP net loss of $7.4 million, a non-GAAP net income of $8.0 million, and a positive adjusted EBITDA of $6.9 million[9] - The company's cash, cash equivalents, and marketable securities stand at approximately $241 million with no debt[9] - The company raised its annual revenue guidance to $327 to $331 million and adjusted EBITDA to a gain of $18 to $22 million[10] Business Updates - CMS reaffirmed Medicare coverage for AlloSure® and AlloMap® Testing[10] - The DOJ concluded its investigation into CareDx with no finding of wrongdoing[11] - QTYPE now features single bead antigen resolution for rapid deceased donor typing[12] - The company launched an Early Access Program with Dovetail Genomics, introducing innovative haplotyping technology to HLA labs[11] Future Targets - The company is targeting $500 million in revenue by 2027[18] - The company is targeting a 20% adjusted EBITDA by 2027[18]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________________________ FORM 10-Q __________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-365 ...

[Introduction](index=1&type=section&id=Introduction) This section provides an overview of the presentation's forward-looking statements and the use of non-GAAP financial measures [Safe Harbor Statement](index=1&type=section&id=Safe%20Harbor%20Statement) This section outlines forward-looking statements, subject to risks detailed in SEC filings, with no obligation to update - The presentation contains forward-looking statements regarding CareDx's future financial position, targets, business strategy, and objectives, which are subject to risks, uncertainties, and assumptions detailed in SEC filings (Form 10-K for FY2023, Form 10-Q for Q1 and Q2 2024)[2](index=2&type=chunk)[3](index=3&type=chunk) [Non-GAAP Financial Measures & Data Sources](index=2&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Data%20Sources) CareDx clarifies non-GAAP measures are supplementary to GAAP and external data is unverified - Non-GAAP financial measures are provided to assist in understanding the business and performance, and should be considered only as a supplement to, not superior to, GAAP measures[4](index=4&type=chunk) - Certain data in the presentation was obtained from external sources and has not been independently verified by the Company or its affiliates[4](index=4&type=chunk) [Establishing CareDx as the Most Innovative Company in Diagnostics](index=3&type=section&id=Establishing%20CareDx%20as%20the%20Most%20Innovative%20Company%20in%20Diagnostics) CareDx positions itself as a leader in diagnostics, driven by a strong leadership team, a focused market approach, and innovative product offerings [Leadership Team](index=3&type=section&id=Leadership%20Team) Introduces CareDx's core leadership team, responsible for strategy, innovation, commercial, and financial management - Key leadership includes John Hanna (President & CEO), Robert Woodward (Chief Scientific Officer), Jessica Meng (Chief Commercial Officer), Keith Kennedy (Chief Operating Officer), Abhishek Jain (Chief Financial Officer), and Marica Grskovic (Chief Strategy Officer)[6](index=6&type=chunk)[7](index=7&type=chunk)[8](index=8&type=chunk)[9](index=9&type=chunk)[10](index=10&type=chunk)[11](index=11&type=chunk)[12](index=12&type=chunk) [Company Overview: Team, Market, Products](index=5&type=section&id=Company%20Overview%3A%20Team%2C%20Market%2C%20Products) CareDx showcases its global team, $50B transplant market presence, and leading solutions provider status with widespread product adoption - CareDx has **650 employees globally**, including **110 scientists & researchers** and **80 software programmers**, demonstrating a strong focus on innovation and digital solutions[15](index=15&type=chunk) Transplant Market Metrics | Metric | Value | | :----- | :---- | | US Transplant Centers | 250 | | Transplant Services Market | $50B | | Transplants Annually | 46K | | Annual Growth in Transplants | 6% | Product Adoption Metrics | Metric | Value | | :----- | :---- | | Rejection Monitoring Tests Performed | 1M | | HLA Typing Kits Sold Annually | 200K | | Centers Use One Or More Software Products | 70% | | Rx Filled Annually by Transplant Pharmacists | 20K | [Preliminary Q3 2024 Results](index=9&type=section&id=Preliminary%20Q3%202024%20Results) CareDx reports strong preliminary Q3 2024 results with significant year-over-year revenue growth and a healthy cash balance Preliminary Q3 2024 Financials | Metric | Value | YoY Change | | :----- | :---- | :--------- | | Total Revenue | $82M to $83M | ~23% increase | | Testing Services Revenue | $60M to $61M | ~26% increase | | Testing Services Volume | 44.6K | ~16% increase | | Digital & Patient Solutions Revenue | $11.9M | 20% increase | | Products Revenue | $10.2M | 7% increase | | Cash, cash equivalents, and marketable securities | ~$240M | N/A (no debt) | [Guiding Principles & Unique Market Position](index=10&type=section&id=Guiding%20Principles%20%26%20Unique%20Market%20Position) CareDx's principles emphasize execution, customer focus, and innovation, leveraging its unique market position for profitable growth - Guiding principles for growth include strong execution with a strong team, putting the product and customer at the center, and investing in product and business innovation to deliver breakthrough growth[18](index=18&type=chunk) - CareDx holds a unique position in molecular diagnostics by concentrating on the transplant market, which allows for lower customer acquisition costs and cross-selling products and services, leading to profitable growth[18](index=18&type=chunk)[19](index=19&type=chunk) [Strategic Priorities](index=13&type=section&id=Strategic%20Priorities) CareDx defines four strategic priorities: profitable growth, operational excellence, Transplant+ expansion, and performance culture - CareDx's strategic priorities are **Profitable Growth**, **Operational Excellence**, **Define Transplant+**, and **Elevate Performance Culture**[20](index=20&type=chunk) [Unlocking Building Blocks of Growth](index=14&type=section&id=Unlocking%20Building%20Blocks%20of%20Growth) CareDx's growth strategy focuses on expanding its market presence and product offerings within the transplant sector and beyond [Transplant Market Total Addressable Market (TAM)](index=14&type=section&id=Transplant%20Market%20Total%20Addressable%20Market%20%28TAM%29) CareDx identifies an over $8 billion transplant TAM, impacting a large patient population across testing, digital, and lab products - The total addressable market (TAM) for transplant solutions is estimated at **over $8 billion**, covering testing services, digital solutions, and lab products[22](index=22&type=chunk) - There are **280,000 organ transplant patients** in the U.S. and **100,000 patients on the transplant waitlist**, highlighting a significant patient impact opportunity[21](index=21&type=chunk)[22](index=22&type=chunk) [Four Building Blocks of Growth](index=17&type=section&id=Four%20Building%20Blocks%20of%20Growth) CareDx's growth strategy is built on increasing transplant volume, customer adoption, patient adherence, and product pipeline expansion - The four building blocks of growth are **Transplant Volume**, **Customer Adoption**, **Patient Adherence**, and **Product Pipeline**[23](index=23&type=chunk) [Transplant Volume Growth](index=18&type=section&id=Transplant%20Volume%20Growth) Transplant volume growth is driven by government initiatives expanding access and technological advancements improving organ viability - Transplant volume growth is driven by growing government efforts to expand transplantation access (e.g., IOTA Model, Biden Administration overhaul) and technological advances improving organ viability (e.g., hypothermic oxygenated perfusion, Felzartamab trial)[23](index=23&type=chunk) [Customer Adoption](index=19&type=section&id=Customer%20Adoption) CareDx's synergistic portfolio drives customer adoption, with multi-solution accounts generating twice the testing services revenue - CareDx offers a synergistic portfolio of solutions across the patient journey, including Lab Products (HLA Typing, Lab Management Software), Transplant Center solutions (EMR, Quality Reporting), and Patient DX & Solutions (Remote Monitoring, Graft Health Assessment)[24](index=24&type=chunk) - Accounts that have **3 or more CareDx solutions** demonstrate higher average new transplant patient acquisition (**44% vs 29%**) and generate **2x the average transplant center revenue** from testing (**$1.2M vs $600K**)[25](index=25&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk)[28](index=28&type=chunk) [Patient Adherence](index=22&type=section&id=Patient%20Adherence) CareDx aims to improve patient adherence to post-transplant testing protocols using digital solutions to bridge current testing gaps Patient Adherence to Testing Protocols | Organ | Product | Center Protocol (tests in first 3 years) | Current Tests (in first 3 years) | | :---- | :------ | :--------------------------------------- | :------------------------------- | | Kidney | AlloSure® | 15 | 7 | | Heart | HeartCare® | 38 | 24 | | Lungs | AlloSure® | 20 | 10 | - CareDx plans to leverage digital solutions like MedActionPlan® and TransplantPharmacy* to improve patient adherence to testing protocols for AlloSure® (Kidney, Lungs) and HeartCare®[30](index=30&type=chunk)[31](index=31&type=chunk) [Product Pipeline](index=23&type=section&id=Product%20Pipeline) CareDx's product pipeline fuels growth through expanded indications for existing tests and the launch of new diagnostics - The product pipeline includes expanded indications for **AlloSure SPK** (simultaneous pancreas and kidney transplantation) and **AlloSure Heart PEDS** (validated for patients <15 years old)[32](index=32&type=chunk) - New diagnostic launches include **AlloMap Kidney** (gene-expression profiling complementing AlloSure Kidney) and **UroMap** (urine-based test for patients with high BKV viremia)[32](index=32&type=chunk) [Securing Coverage & Adoption Through Evidence](index=26&type=section&id=Securing%20Coverage%20%26%20Adoption%20Through%20Evidence) CareDx strategically generates robust clinical evidence to secure broader coverage and drive physician adoption of its diagnostic solutions [Evidence Generation Strategy](index=26&type=section&id=Evidence%20Generation%20Strategy) CareDx employs a robust evidence strategy, including meta-analyses and clinical utility studies, to boost coverage and physician adoption - CareDx's evidence generation strategy focuses on increasing coverage and adoption through clinical utility, decision impact, physician adoption, and clinical validation, supported by meta-analysis of clinical studies and outcomes[33](index=33&type=chunk) [Clinical Evidence Highlights](index=28&type=section&id=Clinical%20Evidence%20Highlights) Key clinical studies demonstrate CareDx's non-invasive tests accurately detect rejection, improve outcomes, and reduce biopsy needs - SHORE results demonstrate the value of HeartCare, showing that dual positive HeartCare results are associated with the highest incidence of Acute Cellular Rejection (ACR) and that HeartCare outperforms dd-cfDNA alone in detecting rejection[35](index=35&type=chunk)[36](index=36&type=chunk) - A landmark Nature Medicine publication highlights the utility of AlloSure Kidney, demonstrating its independent prediction of allograft rejection, detection of subclinical rejection in stable patients, and that dd-cfDNA levels elevate prior to rejection and decline in response to treatment[37](index=37&type=chunk) [Coverage Growth & Unmet Needs](index=30&type=section&id=Coverage%20Growth%20%26%20Unmet%20Needs) CareDx's evidence generation has led to growing Medicare and commercial coverage, addressing unmet needs through primary studies - Intentional evidence generation has led to growing coverage, including Medicare coverage for **AlloSure Kidney** (launched 2017/covered 2017), **AlloSure Heart** (launched 2018/covered 2020), and **AlloSure Lung** (launched 2021/covered 2023)[38](index=38&type=chunk) Primary Studies for Unmet Needs | Organ | Generating Evidence Focus | Primary Study | Study Composition | | :---- | :------------------------ | :------------ | :---------------- | | Heart | Pediatrics Validation, 5-year Survival, Directing Therapeutic Treatment | SHORE | >2,700 patients, 5-year follow-up, 67 sites, HARTS protocol | | Kidney | Procedure Decision Making, Treating Subclinical Rejection, 3-year Survival | KOAR, OKRA | >3,600 patients, 3-year follow-up, 56 sites, ARTS protocol | | Lung | Surveillance Outcomes, Subclinical Rejection, All Transplant Coverage | ALAMO | 500 patients, 5-year follow-up, 19 sites, ALRTS protocol | [Driving Operational Leverage](index=32&type=section&id=Driving%20Operational%20Leverage) CareDx focuses on operational leverage through volume acceleration, scalable operations, technology utilization, and profitability improvements to ensure predictable margins [Principles of Operational Leverage](index=32&type=section&id=Principles%20of%20Operational%20Leverage) CareDx's operational leverage focuses on accelerating volume, scaling operations, leveraging technology, and improving profitability - Operational leverage is driven by accelerating volume, scaling operations, leveraging technology, and improving profitability to ensure long-term predictability of margins[40](index=40&type=chunk) [Strategies for Operational Leverage](index=34&type=section&id=Strategies%20for%20Operational%20Leverage) CareDx employs strategies to drive volume, scale operations, leverage technology, and accelerate profitability for long-term margin predictability - To Drive Volume, CareDx focuses on integrating commercial strategy, maximizing EMR integrations (Epic, Cerner), and integrating proprietary portals from acquired companies[40](index=40&type=chunk)[41](index=41&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk)[44](index=44&type=chunk) - To Scale Operations, strategies include unlocking efficiencies through the supply chain, automating lab workflows, streamlining testing platforms, and assessing geographic opportunities to improve cost and turn-around times[40](index=40&type=chunk)[41](index=41&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk)[44](index=44&type=chunk) - To Leverage Technology, CareDx plans to deploy low-key automation across workflows and integrate lab information systems (LIMS) with enterprise data warehouse and Business Intelligence (BI) tools[40](index=40&type=chunk)[41](index=41&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk)[44](index=44&type=chunk) - To Accelerate Profitability, strategies include delivering value on cover contracting, improving eligibility, prior authorizations, and appeal processes, and improving margin on a per-test basis[40](index=40&type=chunk)[41](index=41&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk)[44](index=44&type=chunk) [Driving Shareholder Value Through KPIs](index=39&type=section&id=Driving%20Shareholder%20Value%20Through%20KPIs) CareDx aligns operational strategies with KPIs to increase volume, revenue, gross margin, and EBITDA while reducing OpEx for shareholder value Key Performance Indicators for Shareholder Value | KPIs | Drive Volume | Scale Operations | Leverage Technology | Accelerate Profitability | | :--- | :----------- | :--------------- | :------------------ | :----------------------- | | Volume | ▲ | ▲ | ▲ | | | Revenue | ▲ | ▲ | | ▲ | | Gross Margin | | ▲ | ▲ | ▲ | | OpEx | | ▼ | ▼ | ▼ | | EBITDA | ▲ | ▲ | ▲ | ▲ | [Charting a Clear Path to Profitable Growth](index=40&type=section&id=Charting%20a%20Clear%20Path%20to%20Profitable%20Growth) CareDx outlines its strategy for achieving profitable growth through financial targets and a disciplined capital allocation framework [Profitable Growth & Capital Allocation Framework](index=40&type=section&id=Profitable%20Growth%20%26%20Capital%20Allocation%20Framework) CareDx outlines a framework for profitable growth focusing on CAGR, Adjusted EBITDA, and cash generation, supported by strategic capital allocation - CareDx's path to profitable growth involves focusing on **Compounded Annual Growth Rate (CAGR)**, **Adjusted EBITDA**, and **Cash Generation**, supported by strategic capital allocation including M&A and investment in the core business[46](index=46&type=chunk) [Financial Targets](index=43&type=section&id=Financial%20Targets) CareDx targets 2027 financial goals: 15% 3-year revenue CAGR, >70% gross margin, 20% adjusted EBITDA, and +$100 million incremental cash 2027 Financial Targets | Metric | Target | Timeline | | :----- | :----- | :------- | | 3-Year Revenue CAGR | 15% | N/A (based on 2024 guidance) | | 2027 Gross Margin | >70% | 2027 | | 2027 Adjusted EBITDA | 20% | 2027 | | 3-Year Incremental Cash | +$100M | N/A | [Strategic Capital Allocation](index=45&type=section&id=Strategic%20Capital%20Allocation) CareDx prioritizes capital allocation for business development, M&A, core business investment, and share buybacks - Strategic capital allocation priorities include business development and M&A, investment in the core business, and share buybacks[49](index=49&type=chunk) [Expanding Our Footprint Beyond $8B TAM](index=46&type=section&id=Expanding%20Our%20Footprint%20Beyond%20%248B%20TAM) CareDx aims to expand its market beyond the current $8 billion TAM by exploring new biomarker indications, extending monitoring, and leveraging data assets [Strategy to Expand TAM](index=46&type=section&id=Strategy%20to%20Expand%20TAM) CareDx's strategy to expand beyond its $8 billion TAM involves new biomarker indications, extended monitoring, and leveraging multidimensional data - CareDx's strategy to expand beyond the **$8 billion TAM** includes pursuing new indications for transplant biomarkers, extending beyond solid organ transplant monitoring, and capitalizing on its expansive multidimensional transplant data[47](index=47&type=chunk) [New Indications for Transplant Biomarkers](index=48&type=section&id=New%20Indications%20for%20Transplant%20Biomarkers) CareDx explores new transplant biomarker indications in organ perfusion, xenotransplantation, and immunosuppression drug monitoring - New indications for transplant biomarkers include organ perfusion, xenotransplantation/bioengineered organs, and immunosuppression drugs[48](index=48&type=chunk) [Extending Beyond Solid Organ Transplant Monitoring](index=49&type=section&id=Extending%20Beyond%20Solid%20Organ%20Transplant%20Monitoring) CareDx expands monitoring beyond solid organ transplants to blood cancer, solid cancer, and autoimmune disorders, showing promise in early clinical data - CareDx is extending its monitoring capabilities beyond solid organ transplant to include blood cancer, solid cancer, and autoimmune disorders[50](index=50&type=chunk)[51](index=51&type=chunk)[52](index=52&type=chunk)[53](index=53&type=chunk) - **AlloCell surveillance**, a universal assay based on DNA differences, has demonstrated clinical performance in CAR-T cell therapy patient monitoring in early clinical data[54](index=54&type=chunk) - **AlloHeme** detects cancer relapse post-stem cell transplant, with early clinical data showing correlation with relapse risk in blood cancer patients and earlier relapse prediction compared to standard of care[55](index=55&type=chunk) [Capitalizing on Multidimensional Transplant Data](index=52&type=section&id=Capitalizing%20on%20Multidimensional%20Transplant%20Data) CareDx leverages its extensive multidimensional transplant data with AI for outcome prediction, clinical trials, and treatment effectiveness assessment Multidimensional Transplant Data Repository | Phase | Patients | Records | | :---- | :------- | :------ | | Pre-Transplant/Wait List | 185K | >9M | | Peri-Transplant/Quality | 735K | >220M | | Post-Transplant/DX Testing | 150K | >920M | | Post-Transplant/Medication Management | 130K | >20M | | Post-Transplant/Remote Monitoring | 1K | >1M | - CareDx plans to apply AI to its expansive multidimensional data-set for outcome prediction, clinical trials, and evaluating treatment effectiveness[57](index=57&type=chunk)[58](index=58&type=chunk) [Activating Our Strategy](index=55&type=section&id=Activating%20Our%20Strategy) CareDx implements its strategic priorities and growth building blocks to achieve financial targets and become a leading diagnostics innovator [Strategic Priorities & Growth Building Blocks](index=55&type=section&id=Strategic%20Priorities%20%26%20Growth%20Building%20Blocks) CareDx reaffirms strategic priorities and growth building blocks as foundational to achieving objectives, reporting $324 million net revenue in 2024 - CareDx's strategic priorities are **Profitable Growth**, **Operational Excellence**, **Define Transplant+**, and **Elevate Performance Culture**[56](index=56&type=chunk) - The building blocks for growth—**Transplant Volume**, **Customer Adoption**, **Product Pipeline**, and **Patient Adherence**—contributed to a **2024 net revenue of $324 million**[57](index=57&type=chunk) [2027 Financial Targets](index=58&type=section&id=2027%20Financial%20Targets) CareDx reiterates 2027 financial targets: $500 million revenue, 20% adjusted EBITDA, and $100 million 3-year incremental cash 2027 Financial Targets Summary | Metric | Target | | :----- | :----- | | 2027 Revenue | $500M | | 2027 Adjusted EBITDA | 20% | | 3-Year Incremental Cash | $100M | [Conclusion](index=59&type=section&id=Conclusion) CareDx implements its strategy with a strong team, market opportunities, and innovative solutions to become the most innovative diagnostics company - CareDx is activating its strategy by putting in place the right team, identifying market opportunities, and launching innovative solutions to resolve unmet medical needs[59](index=59&type=chunk) - The company's overarching vision is to be recognized as the most innovative company in diagnostics[60](index=60&type=chunk)