Guardant Health (GH) Canaccord Genuity 44th Annual Growth Conference & Private Company Showcase 2024 summary

Financial performance and growth drivers

• Achieved 29% year-over-year revenue growth, driven by strong clinical and biopharma volume increases.

• Launched upgraded Guardant360 Smart Liquid Biopsy and tissue test, generating significant clinician excitement.

• Received FDA approval and Medicare coverage for Shield, a first-line blood-based CRC screening test.

• Biopharma segment shows sustained upward trend, supported by transition to epigenetic profiling.

• 2028 revenue target set at $500 million, with positive gross margins expected in 2025.

Product innovation and competitive landscape

• Shield is the first FDA-approved, NGS-based blood test for CRC screening, covering 45 million Medicare lives.

• The test represents a 15 million test per year opportunity, with a first-mover advantage over competitors.

• Ongoing development of V2 for improved performance, with a material update expected in 2025.

• Plans to expand Shield's coverage to additional cancers and functionalities in the near future.

• Comprehensive portfolio includes Smart Liquid Biopsy, MRD, and tissue-based products, with continued investment in upgrades.

Pricing, reimbursement, and profitability

• Applied for gap fill rate; focus is on achieving ADLT rate of $1,495 in 2025.

• ASPs projected at $500+ in 2025, with cost per test at or below $500, enabling positive gross margins.

• Cash pay price increased to $1,495, justified by health economic value and sustainability.

• Pathway to cash flow breakeven based on Shield ASP of $500 and disciplined sales and marketing investment.

• Maximum annual cash burn for Shield capped at $200 million, with sales force expansion tied to key milestones.