Castle Biosciences (CSTL) investor relations material

Portfolio overview and recent developments

• Offers diagnostic tests for melanoma, squamous cell carcinoma, uveal melanoma, and Barrett’s esophagus, with a focus on risk stratification and prognostics.

• Launched new collaborations, including with Cybase for atopic dermatitis flare prediction and acquired ESOPredict via Previse to expand GI offerings.

• Maintains strong adjusted gross margins and ended the year with $275 million in cash, supporting ongoing operations and future acquisitions.

• Expanded TissueCypher sales team to target 12,000–14,000 clinicians, now with about 65 area managers.

• Aggressively invests in R&D for both pipeline and existing tests to drive physician adoption and payer reimbursement.

Market penetration and growth outlook

• Melanoma test currently reaches 30–31% of suitable patients, with 55–60% of eligible clinicians having used a derm test in the past year.

• Physician conversion is slowing as the market matures, but new ordering physicians are still being added annually.

• High single-digit volume growth is expected for the melanoma test in the near term, with seasonality impacting quarterly results.

• Sales force now focused on melanoma while awaiting reimbursement clarity for the squamous cell carcinoma test.

Reimbursement and payer coverage

• Both reconsideration requests for squamous cell carcinoma test coverage accepted by Medicare contractors (MOLDX and Novitas).

• Significant new data and publications support the test’s clinical and economic value, including potential $1 billion Medicare savings.

• Additional data developed since the original comment period is expected to strengthen the case for coverage.