Natera (NasdaqGS:NTRA) FY Conference November 19, 2025 10:00 AM ET Company ParticipantsMike Brophy - CFOConference Call ParticipantsDoug Shankle - AnalystDoug ShankleLast run of the day. I'm Doug Shankle. I lead Wolf's life science tools and diagnostics effort. It is my pleasure to have Mike Brophy of Natera with us. Mike, thanks for making the trip.Mike BrophyYeah, thanks for having me. Yeah.Doug ShankleWe really appreciate it.Natera is a leading diagnostic company focused on leveraging cell-free DNA techn ...

Financial Data and Key Metrics Changes - Total revenue grew 20% year over year to $851 million, exceeding guidance by $43 million [4][5] - Adjusted EBITDA increased by $37 million, or 37% year over year, reaching $135 million, with adjusted EBITDA margins expanding by 200 basis points to 16% [5][7] - Free cash flow for the quarter was $190 million, an increase of $77 million, with year-to-date free cash flow at $236 million, up 270% year over year [6] Business Line Data and Key Metrics Changes - Screening revenue increased 22% year over year to $666 million, driven by strong Cologuard growth [5] - Precision oncology revenue rose 12% year over year to $183 million, supported by Oncotype DX expansion [5] Market Data and Key Metrics Changes - Cologuard brand awareness is recognized by over 90% of consumers, contributing to increased adoption among the 55 million Americans not up to date with colorectal cancer screening [8][9] - The company signed contracts with Aetna and Highmark to enhance access to Cologuard Plus [9] Company Strategy and Development Direction - The company is focused on expanding access to Cologuard Plus and driving adoption of CancerGuard, a multi-cancer early detection test [4][12] - Plans to sunset Cologuard in favor of Cologuard Plus, which has superior test performance [36] - The company aims to achieve its 2027 financial targets and create long-term value through innovative diagnostics [7][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum building across the company, with expectations for continued growth in screening and precision oncology [7][20] - The company is optimistic about the impact of care gap programs and the potential for increased screening rates [26][45] Other Important Information - The company is investing in direct-to-consumer marketing for CancerGuard, leveraging its established brand [13][40] - The launch of CancerGuard is seen as a significant step in the mission to improve cancer detection rates [12][40] Q&A Session Summary Question: What drove the strong screening performance in Q3? - Management attributed the performance to improved relationships with health systems, targeted sales efforts, and the strong Cologuard brand [20] Question: What is the outlook for 2026? - Management indicated that guidance for 2026 will be provided in the next earnings call, but long-term growth remains a focus [22] Question: How will care gap strength impact margins? - Management noted that while care gap programs have lower gross margins, they are highly accretive to the overall bottom line [26] Question: What is the strategy for CancerGuard reimbursement? - Management emphasized a long-term approach to securing coverage across Medicare and commercial payers, focusing on the positive impact of screening [28] Question: What are the timelines for Freedom V2? - Management confirmed no changes to the timelines for Freedom V2, with data expected to be presented at a scientific conference soon [32] Question: How is the Cologuard Plus contributing to growth? - Management reported that Cologuard Plus contributed approximately 2-300 basis points to overall screening growth in Q3, with expectations for further contributions in Q4 [43] Question: What is the status of the $150 million cost savings program? - Management reported good progress on the cost savings program, expecting to deliver $150 million in savings by 2026 [54] Question: How will the CRC blood test be priced? - Management stated that pricing will be determined to ensure broad access while maintaining margins [50][66]

Core Viewpoint - Exact Sciences is experiencing an improving outlook with innovative products leading to a stock rebound, having increased by 41% over the past six months [1] Group 1: Company Performance - Exact Sciences is known for Cologuard, a stool-based test for early colorectal cancer detection, which has been used in over 20 million screenings since its launch in 2014 [2][3] - The company reported a 16% year-over-year revenue increase in Q2, reaching $811 million, with $628 million from screening revenue and $183 million from precision oncology [4] - Despite not being profitable, the company is showing improvement, with a net loss per share of $0.01 in Q2, better than the $0.09 loss per share in Q2 2024 [5] Group 2: Growth Opportunities - Exact Sciences launched Cologuard Plus in March, which is more accurate than its predecessor, and acquired rights to a blood-based CRC test from Freenome for $75 million [6] - There are over 55 million eligible patients in the U.S. aged 45 to 85 who have not been screened for CRC, indicating significant market potential [7] - The company also launched Oncodetect in April for testing recurrence across multiple cancers, and Cancerguard, a blood-based multicancer screening test, in September [8] Group 3: Market Potential - Exact Sciences estimates a total addressable market of nearly $60 billion across its services, with trailing-12-month revenue of $2.94 billion indicating room for growth [10] - The company has been growing revenue while reducing marketing costs as a percentage of sales, suggesting a strengthening reputation in the healthcare sector [11] - Cologuard Plus is 5% cheaper to manufacture, which could further enhance profitability [13]

Investment Rating - The report maintains an "Overweight" rating for the in vitro diagnostics (IVD) industry [8][9]. Core Views - The IVD market is undergoing a transformative period characterized by complexity and uncertainty, influenced by post-pandemic adjustments and ongoing healthcare reforms. Despite short-term pressures from cost control measures and centralized procurement, the long-term outlook for the IVD industry remains positive, with expectations of a turning point as centralized procurement becomes established [6][9]. - The collaboration between Samsung and Grail in the multi-cancer early detection field is expected to enhance the development of cancer screening technologies, improving accuracy and efficiency, thereby increasing patient survival rates [5][52]. Summary by Sections Industry Performance - The pharmaceutical and biological sector fell by 2.48%, ranking 16th among 31 primary industries, while the IVD sector specifically decreased by 0.43% [2][11]. - The IVD sector's current PE ratio is 36.21X, with a one-year maximum of 39.25X and a minimum of 20.96X. The current PB ratio is 1.82X, with a one-year maximum of 2.01X and a minimum of 1.53X [4][32]. Company Performance - Notable performers in the medical services sector include Tuo Jing Life (+22.9%), Rejing Bio (+12.5%), and Hao Ou Bo (+7.2%). Conversely, companies like Botuo Bio (-6.8%) and Pumen Technology (-6.8%) underperformed [3][27]. Investment Recommendations - The report suggests focusing on the growth potential within the IVD sector, particularly in immunodiagnostics, molecular diagnostics (PCR), and continuous glucose monitoring (CGM). Companies such as San Nu Biotech, Shengxiang Bio, and Yahui Long are highlighted as key areas of interest [9][53].

Core Insights - MIRXES-B (02629) has entered into a joint venture agreement with Xeraya Opportunities Fund PCC Limited to establish MYRNA DIAGNOSTICS SDN.BHD, with Mirxes holding 40% and Xeraya 60% of the equity [1] - The joint venture aims to address the urgent need for early cancer detection and other nucleic acid-based testing in Malaysia, a country facing a significant cancer burden [1][2] Company Strategy - The joint venture will leverage Xeraya's regional expertise in life sciences and healthcare to create a leading cancer omics platform in Malaysia, focusing on advanced miRNA-based multi-omics technology and validated blood cancer early detection [3] - The company plans to establish a localized omics testing business to enhance turnaround time and cost-effectiveness for existing clinical operations, while expanding into new market segments, including public healthcare institutions [3] - The strategy includes utilizing Malaysia's thriving biotech ecosystem to accelerate the development of clinical pipelines for colorectal, breast, liver, and multi-cancer types [3] - The joint venture aims to integrate R&D and clinical operations across Singapore, China, and Malaysia to expedite regulatory approvals for in vitro diagnostics (IVDs) and laboratory-developed tests (LDTs) [3] - The company envisions establishing a scalable regional platform in Malaysia as a springboard for expansion into neighboring ASEAN countries and other Asian markets with similar epidemiological characteristics and unmet screening needs [3] Industry Context - Malaysia, with a population exceeding 35 million, is facing a rising cancer burden, with over 51,650 new cancer cases and 31,633 cancer deaths reported in 2022 [2] - More than 60% of cancer cases in Malaysia are diagnosed at advanced stages (Stage III or IV), which severely limits patient survival outcomes and places a heavy burden on the healthcare system [2] - The cancer incidence rate in Malaysia is projected to increase by over 70% by 2050, highlighting the critical unmet need for early detection, particularly for high-incidence cancers such as lung, colorectal, breast, liver, and stomach cancers, which together account for nearly 50% of total cases [2]

Core Insights - MIRXES-B has entered into a joint venture agreement with Xeraya Opportunities Fund to establish MYRNA DIAGNOSTICS SDN. BHD., focusing on cancer early detection and nucleic acid-based testing in Malaysia [1] Company Summary - The joint venture will be owned 40% by Mirxes International Holding Limited and 60% by Xeraya, with a total capital injection of approximately $5 million [1] - The establishment of the joint venture aligns with the company's mission to make early disease detection solutions accessible globally, starting with addressing critical healthcare gaps in Malaysia [4] Industry Summary - Malaysia faces a significant cancer burden, with over 51,650 new cases and 31,633 deaths reported in 2022, and more than 60% of cases diagnosed at advanced stages [2] - The cancer incidence rate in Malaysia is projected to increase by over 70% by 2050, highlighting the urgent need for early detection, particularly for prevalent cancers such as lung, colorectal, breast, liver, and stomach cancers [2] - The joint venture aims to leverage Malaysia's strong life sciences and healthcare expertise to establish a leading cancer omics platform and enhance localized testing services [3] - The initiative will also integrate R&D and clinical operations across Singapore, China, and Malaysia to expedite regulatory approvals and innovation in diagnostic testing [3]

Mirxes Holding Company Limited （ 於 開 曼 群 島 註 冊 成 立 的 有 限 責 任 公 司 ） （股份代號：2629） 自願性公告 成立合營企業 本公告乃由Mirxes Holding Company Limited（「本公司」，連同其附屬公司統稱「本 集團」）自願刊發，旨在知會本公司股東及潛在投資者有關本集團的最新業務 發展。 成立合營企業 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因 依賴該等內容而引致的任何損失承擔任何責任。 – 2 – (i) 建立馬來西亞領先的癌症組學平台，以本公司先進且以miRNA為中心的多 組學技術平台及經驗證的血液癌症早期檢測為基礎，解決馬來西亞在癌 症早期檢測及精準醫學方面未被滿足的關鍵臨床需求； (ii) 在馬來西亞建立強大且具在地化的專業組學檢測業務， a. 透過在地化檢測服務擴展現有臨床業務的規模，為現有客戶改善週 轉時間及成本效益； b. 加速拓展業務合作並涉足包括公立醫療機構等新市場領域； (iii) 善用馬來西 ...

Group 1: Financial Performance - In the first half of 2025, the company achieved revenue of $10.47 million, representing a year-on-year growth of 9.4% [1] - The gross profit for the same period was $7.1 million, up from $4.7 million in the previous year, marking a 51.1% increase [1] - The loss attributable to equity shareholders narrowed to $28.35 million from $44.45 million in 2024, indicating improved operational efficiency and cost control [1] Group 2: Business Segments - The growth in revenue was primarily driven by the early detection and precision multi-omics business, which saw a 50% increase in revenue to $10.47 million [1] - The gross profit for the early detection and precision multi-omics segment reached $7.1 million, reflecting a 102.9% year-on-year growth [1] - The sales gross margin improved from 49% to 67.6% due to high-margin product sales and effective cost management [1] Group 3: Product Development and Market Expansion - The company, founded in 2014, focuses on miRNA technology for disease screening solutions in key Asian markets, including Singapore and China [2] - The core product, GASTROClear, is a blood-based miRNA test for gastric cancer screening, which received regulatory approval in Singapore in May 2019 [2] - GASTROClear has been approved for sale in Singapore and Thailand, with LDT services launched in Japan, and a clinical trial registration completed in China [2] Group 4: Market Recognition - Mirxes was listed on the Hong Kong Stock Exchange on May 23, 2023, and was included in the Hang Seng Composite Index as of August 22, 2023 [3] - The inclusion in the index, just three months after its listing, reflects strong market recognition of the company's potential in early cancer detection technology [3]

Core Viewpoint - MIRXES-B (02629) has seen a significant increase in stock price, reaching a new high of 47.8 HKD, driven by a strategic partnership with PT DIASTIKA BIOTEKINDO for cancer diagnostics in Indonesia [1][2] Group 1: Partnership and Market Expansion - The company has signed a memorandum of understanding with PT DIASTIKA BIOTEKINDO to collaborate on molecular diagnostic testing and related instruments for early detection and diagnosis of high-incidence and high-mortality cancers in Indonesia [1][2] - This partnership allows the company to leverage PT DIASTIKA BIOTEKINDO's existing channels to enter the Indonesian market with blood-based microRNA or multi-omics cancer detection devices [2] - The collaboration aims to utilize local policies in Indonesia, such as tax incentives for local content, and regulatory flexibility under ASEAN medical device frameworks to facilitate market entry [2] Group 2: Regional and Global Strategy - Indonesia is positioned as a pilot region for the company's operations, with plans to replicate the business model in Southeast Asia, the Middle East, North Africa, and other regions that share similar cancer profiles and healthcare structures [2]

Core Viewpoint - MIRXES-B has seen a significant increase in stock price, reaching a new high following the announcement of a collaboration with PT DIASTIKA BIOTEKINDO for cancer diagnostics in Indonesia [1][2] Group 1: Company Developments - On August 15, MIRXES-B announced a memorandum of understanding with PT DIASTIKA BIOTEKINDO to collaborate on molecular diagnostic testing and related instruments for early detection and diagnosis of high-incidence and high-mortality cancers in Indonesia [1] - The memorandum is valid for 12 months from the date of signing [1] Group 2: Market Expansion Strategy - Through the partnership with PT DIASTIKA BIOTEKINDO, the company aims to enter the Indonesian market by deploying blood-based microRNA or multi-omics cancer detection devices for prevalent cancers such as gastric and lung cancer [2] - The collaboration will leverage local policies in Indonesia, such as tax incentives for local content, and regulatory flexibility under ASEAN-centered medical device frameworks [2] - Indonesia is viewed as a pilot region for expanding operations to Southeast Asia, the Middle East, North Africa, and other areas with similar cancer profiles and healthcare structures [2]