1、EXACT SCIENCES1We aim to help eradicate cancer by preventing it,detecting it earlier,and guiding personalized treatment.J.P.Morgan Health Care Conference 2024January 8,2024EXACT SCIENCES2#1cause of death under age 85Source:Centers for Disease Control and PreventionEXACT SCIENCESOur values3IntegrityW

2、e do whats rightTeamworkHealthy teams fuel our cultureAccountabilityWe do what we sayQualityIf its worth doing,its worth doing wellInnovationWe turn creativity into reality3Our PurposeWe aim to help eradicate cancer by preventing it,detecting it earlier,and guiding personalized treatment.3This prese

3、ntation contains forward-looking statements concerning our expectations,anticipations,intentions,beliefs or strategies regarding the future.These forward-looking statements are based on assumptions that we have made as of the date hereof and are subject to known and unknown risks and uncertainties t

4、hat could cause actual results,conditions and events to differ materially from those anticipated.Therefore,you should not place undue reliance on forward-looking statements.Examples of forward-looking statements include,among others,statements we make regarding expected future operating results;expe

5、ctations for development of new or improved products and services and their impact on patients;our strategies,positioning,resources,capabilities and expectations for future events or performance;and the anticipated benefits of our acquisitions,including estimated synergies and other financial impact

6、s.Risks and uncertainties that could adversely affect the Companys business and prospects,and otherwise cause actual results to differ materially from those anticipated,include without limitation,those described in the filings made by the company with the SEC,including its most recent Annual Report

7、on Form 10-K and Quarterly Report on Form 10-Q.The company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements presented herein to reflect any change in expectations or any change in events,conditions or circumstances on which any suc

8、h statements are based.In addition to the companys financial results determined in accordance with U.S.GAAP,the company provides non-GAAP measures that it determines to be useful in evaluating its operating performance and liquidity.Management believes that presentation of operating results using no

9、n-GAAP financial measures provides useful supplemental information to investors and facilitates the analysis of the Companys core operating results and comparison of operating results across reporting periods.Management uses non-GAAP financial measures to establish budgets,manage the Companys busine

10、ss,and set incentive and compensation arrangements.The company presents EBITDA,adjusted EBITDA,non-GAAP gross margin,non-GAAP gross profit,core revenue,and free cash flow.Please refer to the appendix accompanying this presentation for discussion of non-GAAP financial measures and reconciliations to

11、GAAP financial measures included in this presentation.Safe harbor and non-GAAP disclosures4EXACT SCIENCESEXACT SCIENCES5 5PattySr.Customer Care SpecialistEXACT SCIENCESEXACT SCIENCES1,200person commercial team6,500team members dedicated to defeating cancer500person research&development team4M+tests

12、delivered in 2023800+in-network agreements400K+global network of ordering providers300+electronic connectionswith health systemsSource:Exact Sciences internal data;note:2023 revenue represents midpoint of preliminary,unaudited range provided on Jan.7,20246$2.5Btotal revenue in 2023,an increase of 20

13、%Y/Y EXACT SCIENCESCancer is a disease of the DNA7EXACT SCIENCESEXACT SCIENCES8PRECISION ONCOLOGYExact Sciences helps detect cancer earlier and provide smarter answers at every stepSCREENINGcolorectal cancer testinghereditary cancer testingmulti-cancer testingearly-stage therapy testing recurrence t

14、estingtherapy selection(tissue)therapy selection(blood)colorectal cancer testingIncludes tests in development,which are not available for sale or approved by FDAOur unrivaled technology platform provides valuable information to our customersExact laboratoriesHealthcare professionals9EXACT SCIENCESPa

15、tientsHealth systemsPharmaPayorsPowerful benefitsEfficient claims processing&billingEMR integrationElectronic test ordering&resultingAutomated prior authorizationsPopulation health managementDigital patient/customer supportSource:Exact Sciences internal datatechnology hubEXACT SCIENCES10Easy to useN

16、on-invasive24/7 supportNo sedationNo time off workNo preparationCologuard is the only FDA-approved,at-home colorectal cancer screening testEXACT SCIENCES$1.865B2000212022 2023EScreening revenue14M+tests delivered since launch89%Cologuard brand awareness11Leading the way in colo

17、rectal cancer screeningSource:Exact Sciences internal data Note:2023 Screening revenue represents midpoint of preliminary,unaudited range provided on Jan.7,2024$1.865B2023 Screening revenue33%5-year CAGREXACT SCIENCES23K33K42K45K50K30K36K39K39K-10.0-5.00.05.010.015.020.025.030.035.040.00200004000060

18、00080000020002The longer providers order Cologuard,the more ingrained it becomes in their practice 14MSource:Exact Sciences internal dataTotal annualnew providersOrdering rate of2015 providersEXACT SCIENCES13Source:Fisher D et al.,ASCO Gastrointestinal Can

19、cers Symposium abstract(2022);Exact Sciences estimates based on 51%screening rate for ages 50-85,10-15%screening rate for ages 45-4960Mpeople unscreenedages 45-85There is an urgent need to get more people screenedEXACT SCIENCES14Cologuard will continue to close the screening gapSource:Exact Sciences

20、 estimates and internal data;IQVIA dataNote:4M Cologuard tests in 2023 is a rounded figure;14M assumes Cologuard reaches 40%market share,market size=110M average-risk Americans ages 45-85 5M6M5M5M5M5M3M4M5M5M1.7M1.7M2M3M4M2000202021202220236M14MFutureScreening colonoscopySource

21、:Imperiale TF et al.,ACG conference abstract(2023);Imperiale TF et al.,N Engl J Med(2014);treatable-stage cancer includes stages I-III;for specificity definition,please refer to next-generation Cologuard top-line results press release issued June 20,2023EXACT SCIENCESnextnext-generation generation 1

22、5BLUE-C(n=20,176)DeeP-C(n=9,989)Specificity including non-advanced findings91%87%Cancer sensitivity94%92%Treatable-stage cancer sensitivity93%93%Advanced precancer sensitivity43%42%nextnext-generationgeneration 30%fewer unnecessary colonoscopiesEXACT SCIENCES16Making colorectal cancer screening a pr

23、iority for allEXACT SCIENCES17Source:Sparano et al.,N Engl J Med(2018);Geyer et al.,NPJ Breast Cancer(2018)Using genomic information to personalize breast cancer treatment4%1%Range:0-100EXACT SCIENCES$629M2005200720092001720192021 2023EPrecision Oncology revenue3-year CAGR:13%18Oncotype D

24、X provides a platform for global growthSource:Exact Sciences estimates and internal data;Note:2023 Precision Oncology revenue represents midpoint of preliminary,unaudited range provided on Jan.7,2024Exact Sciences combined with Genomic Health in Nov.201998%of U.S.oncologists have ordered$629M2023 Pr

25、ecision Oncology revenue2Mpatients tested since launchEXACT SCIENCES19Provide a seamless experience for customersInvest in world-class talent dedicated to fighting cancerOffer tests that impact decision-makingIncrease access&drive adoptionGenerate rock-solid clinical evidenceDrive profitable revenue

26、The Exact Sciences platform enables sustainable revenue growth and profitability improvement over timeEXACT SCIENCES20Provide a seamless experience for customersNote:Epic and MyChart are registered trademarks of Epic Systems CorporationEXACT SCIENCES$143M$160M4Q224Q23E$404M$487M4Q224Q23E$547M$647M4Q

27、224Q23E+12%+18%+21%21Screening revenue Precision Oncology revenueNote:4Q23 revenue represents midpoint of preliminary,unaudited range provided on Jan.7,2024Total revenue(excluding COVID testing)Drive profitable revenueEXACT SCIENCES$454M$876M$1.49B$1.77B$2.08B$2.50B$2.83B2002120222023E202

28、4E2222Drive profitable revenue41%5-year CAGRNote:2023 revenue represents midpoint of preliminary,unaudited range provided on Jan.7,2024;CAGR calculated using GAAP figures from %non-GAAP gross margins(guidance provided Nov.1,2023)Total revenueEXACT SCIENCES$343Madj.EBITDA improvement in 20

29、23(guidance provided Nov.1,2023)23$(243)M$(143)M$200M202120222023E(guidance)23Drive profitable revenueNote:2023 adj.EBITDA represents midpoint of latest guidance provided on Nov.1,2023Adjusted EBITDAEXACT SCIENCES24$368M$402M$467M$272M$(16)M$(100)M202120222023ETotal revenue$growth(excluding COVID te

30、sting)Selling&marketing expense$growth24Drive profitable revenueNote:2023 revenue growth calculated using midpoint of preliminary,unaudited range provided on Jan.7,2024;2023 selling and marketing expense growth calculated based on latest Exact Sciences internal estimatesTotal revenue growth(excl.COV

31、ID testing)Selling&marketing expense growthEXACT SCIENCES25EXACT SCIENCESEXACT SCIENCES262024 focus areasMake Cologuard first-line screening test for allExpand impact of Oncotype DX globallyDeepen relationships with health systemsDeliver the highest quality customer careLaunch innovative future test

32、sEXACT SCIENCES27EXACT SCIENCESWe aim to help eradicate cancer by preventing it,detecting it earlier,and guiding personalized treatment.EXACT SCIENCESIn addition to the companys financial results determined in accordance with U.S.GAAP,the company provided non-GAAP measures in this presentation that

33、it determined to be useful in evaluating its operating performance.The company presented EBITDA,adjusted EBITDA,non-GAAP gross margin,and non-GAAP gross profit.EBITDA and adjusted EBITDA consist of net income after adjustment for those items shown in the table below.The company defines non-GAAP gros

34、s profit and non-GAAP gross margin as GAAP gross profit and GAAP gross margin,respectively,excluding amortization of acquired intangible assets.The amortization of acquisition-related intangible assets used in the calculation of non-GAAP gross profit and non-GAAP gross margin pertain only to the amo

35、rtization associated with developed technology acquired and recorded through purchase accounting transactions.The amortization of these intangible assets will recur in future periods until such intangible assets have been fully amortized.Management believes that presentation of operating results usi

36、ng non-GAAP financial measures provides useful supplemental information to investors and facilitates the analysis of the companys core operating results and comparison of operating results across reporting periods.The company uses this non-GAAP financial information to establish budgets,manage the c

37、ompanys business,and set incentive and compensation arrangements.Non-GAAP financial information,when taken collectively,may be helpful to investors because it provides consistency and comparability with past financial performance.However,non-GAAP financial information is presented for supplemental i

38、nformation purposes only,has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with U.S.GAAP.For example,non-GAAP gross margin and non-GAAP gross profit exclude the amortization of acquired intangible asse

39、ts although such measures include the revenue associated with the acquisitions.Additionally,adjusted EBITDA excludes a number of expense items that are included in net loss.As a result,positive adjusted EBITDA may be achieved while a significant net loss persists.For a reconciliation of these non-GA

40、AP measures to GAAP,please see below tables.The company presents certain forward-looking statements about the companys future financial performance that include non-GAAP measures.These non-GAAP measures include adjustments like stock-based compensation,acquisition and integration costs including gai

41、ns and losses on contingent consideration that are difficult to predict for future periods,because the nature of the adjustments pertain to events that have not yet occurred.Additionally,management does not forecast many of the excluded items for internal use,and full preliminary GAAP net income inf

42、ormation is not yet available.Information reconciling forward-looking non-GAAP measures to U.S.GAAP measures including guided 2023 adjusted EBITDA and non-GAAP gross margin is therefore not available without unreasonable effort and is not provided.The occurrence,timing and amount of any of the items

43、 excluded from GAAP to calculate non-GAAP could significantly impact the Companys GAAP results.Appendix:Non-GAAP disclosureEXACT SCIENCES29EXACT SCIENCES CORPORATIONSelected Unaudited Financial InformationEBITDA and Adjusted EBITDA Reconciliations(Amounts in thousands)(1)Represents stock-based compe

44、nsation expense and 401(k)match expense as the Company matches a portion of Exact Sciences employees contributions annually in the form of the Companys common stock.(2)Represents acquisition and integration related costs incurred as a result of the Companys business combinations.This includes fees f

45、or professional services and the remeasurement of the contingent consideration liabilities in connection with business combinations.(3)Represents severance and legal fees incurred by the Company as a result of proactive measures the Company put in place to address the impact of the inflationary envi

46、ronment and other macroeconomic trends.(4)Represents the loss on the sale of the intellectual property and know-how related to the Companys Oncotype DX Genomic Prostate Score test to MDxHealth SA and related severance,accelerated stock-based compensation,legal,and other professional service fees rel

47、ated to the divestiture.(5)Represents impairment charges on the Companys long-lived assets including acquired developed technology and supply agreement intangible assets and building leases.(6)Represents initial settlement offer made to the United States Department of Justice(“DOJ”)concerning the DO

48、Js investigation of Genomic Healths compliance with the Medicare Date of Service billing regulations.Year Ended December 31,(In thousands)20222021Net income(loss)$(623,506)$(595,625)Interest expense19,63418,606Depreciation and amortization197,558180,346Income tax benefit(9,064)(246,881)EBITDA$(415,3

49、78)$(643,554)Stock-based compensation(1)239,092260,950Investment loss(income)19,425(31,778)Acquisition and integration costs(2)(53,297)140,645Reduction-in-force severance(3)33,499-Loss on sale of asset and divestiture related costs(4)17,309-Impairment of long-lived assets(5)15,96920,210Legal settlement(6)-10,064Adjusted EBITDA$(143,381)$(243,463)