CareDx FY Conference Summary Company Overview - **Company**: CareDx (NasdaqGM:CDNA) - **Date of Conference**: December 03, 2025 - **Key Speakers**: CEO John Hanna, COO Keith Kennedy Key Points Industry and Company Performance - CareDx reported strong growth across all business segments in Q3 2025 - **Testing Services**: Up nearly 19% year-over-year - **Patient and Digital Services**: Grew by 30% - **Lab Products**: Increased by 22% - The company's strategy focuses on solution selling, enhancing efficiency for transplant centers, and post-transplant monitoring [2][4][5] Product Launches and Innovations - Launched **AlloSure Heart** for pediatric patients and validated it for simultaneous pancreas and kidney transplants [4] - Introduced **HistoMap** and **AlloSure Plus**, enhancing monitoring capabilities for clinicians [5][6] - Evidence generation from studies like **AlloSure 2** and **AlloSure 3** supports product adoption and demonstrates the effectiveness of their tests [6][21][22] Revenue Cycle Management - Achieved record cash collections in Q3, with over 120% of revenue collected in cash [9][10] - Focus on operational excellence and automation in revenue cycle management [9][10] - Targeting a blended revenue per test of $1,000, with a 10% increase anticipated [10] Capital Allocation Strategy - Generated $35 million in cash last quarter, with $75 million used for share repurchases [16][18] - Aiming for a 20% EBITDA margin and a disciplined approach to capital allocation [18][20] - Preference for share buybacks due to perceived undervaluation of stock [20] Regulatory and Market Dynamics - Draft LCD proposal from Medicare includes coverage for surveillance testing, with potential revenue impacts discussed [38][39] - Two scenarios outlined regarding the finalization of the LCD, with a focus on increasing testing frequency for better patient outcomes [40][41] Future Clinical Studies and Product Pipeline - Plans for additional publications on **AlloSure** and **HeartCare** in 2026 [27] - Ongoing trials for **AlloSure Lung** and **Acrobat** for stem cell transplantation, with results expected in 2026 [27][43] - Anticipated launch of **HistoMap Kidney** in early 2026, enhancing diagnostic capabilities for rejection types [49] Competitive Positioning - CareDx differentiates itself by offering a comprehensive solution set, including software products and services tailored to transplant centers [31][32] - The company emphasizes its role as a leader in the transplant space, focusing on clinician and patient support [35][36] Conclusion - CareDx is positioned for continued growth with a strong product pipeline, effective revenue management, and a clear strategy for capital allocation and market expansion [2][4][9][16][18]

CareDx FY Conference Summary Company Overview - **Company**: CareDx (NasdaqGM:CDNA) - **Date of Conference**: November 20, 2025 - **Key Speakers**: John Hanna (CEO), Keith Kennedy (COO) Key Points Financial Performance - **Q3 Highlights**: - 21% top-line revenue growth - 13% growth in testing services volume - Approximately 15% adjusted EBITDA - 10% of stock repurchased year-to-date - $200 million in cash on the balance sheet with no debt [5][5][5] Market Dynamics - **Organ Transplant Market**: - Transplant growth is at a 5% CAGR over five years, expected to return to this trend in the next two years - Over 100,000 patients on the transplant waitlist in the U.S. - Surgeons are competitive, with a noted increase in transplant activity moving into Q4 [6][6][6] Testing Services - **Kidney Protocol Adoption**: - Strong growth in protocol adoption, with 60 programs now documented - Average testing frequency is 3.5 to 4 tests per year per patient [10][10][14] - **Impact of Draft LCD**: - No disruption in testing volumes due to the draft LCD; growth in tests per patient continues [13][13][13] Product Innovations - **HistoMap Launch**: - Expected to enhance diagnostic capabilities by providing gene expression profiling of biopsy tissues - Aims to improve understanding of rejection types and support product development [21][22][22] - **Digital Services**: - Strong growth driven by solution selling and product innovation, including new assays and integration of blood typing into existing products [66][66][66] Revenue Cycle Management (RCM) - **Improvements in RCM**: - Significant progress in cash collections, with the highest collections in company history reported in October - Focus on automating billing processes and improving appeal rates for denied claims [28][29][34] Coverage and Reimbursement - **Insurance Coverage**: - Expanded coverage for AlloMap Heart and AlloSure, with ongoing discussions with top payers - Challenges remain with Medicare Advantage contracts and reimbursement processes [33][37][41] - **CPT Code Acquisition**: - Obtained a CPT code for AlloSure, which is expected to facilitate better reimbursement outcomes [38][38][39] Future Outlook - **Growth Opportunities**: - Anticipated growth in kidney volumes due to reimbursement impacts - Plans to expand into cell therapy, leveraging existing relationships with transplant centers [9][71][71] - **Market Positioning**: - CareDx is positioned as an innovative leader in diagnostics, with a focus on comprehensive solutions that integrate testing, software, and pharmacy services [72][72][72] Risks and Challenges - **Draft LCD Scenarios**: - Two potential scenarios regarding the impact of the draft LCD on testing volumes, with a $15 million headwind anticipated if implemented as written [54][55][56] - **Market Perception**: - The company believes its growth story is underappreciated, with significant potential for future expansion in diagnostics and cell therapy [72][72][72] Conclusion CareDx is experiencing strong financial growth and is well-positioned in the organ transplant and diagnostics market. The company is focused on expanding its product offerings, improving reimbursement processes, and leveraging its innovative approach to enhance patient outcomes.