GeneDx (WGS) 2024 Wells Fargo Healthcare Conference summary

Business transformation and market focus

• Celebrating 25 years, with a legacy in rare disease diagnosis and pioneering whole exome and genome sequencing technologies.

• Focused on ending the lengthy diagnostic odyssey for rare diseases, aiming to deliver answers within weeks or days.

• Revenue has grown from $116M in 2021 to a projected $255M–$265M in 2023, with gross margins over 62%.

• Consistent reduction in cash burn over nine quarters, now approaching profitability.

• Completed shutdown of legacy Sema4 business, now focused on core, profitable growth.

Operational improvements and margin expansion

• Gross margins improved from 40% to over 60% in a year, driven by a mix shift to higher-margin exome/genome products.

• Exome and genome portfolio operates at ~70% gross margin; ongoing efforts to automate dry lab processes for further gains.

• Investments in automation, AI, and process efficiencies aim to scale volumes without linear labor increases.

• Focus on reducing turnaround time and unit costs to support top-line growth.

Commercial strategy and market expansion

• Commercial expansion and clinician education have driven exome volume from 270,000 to nearly 700,000 in three years.

• Targeting new clinician types, especially pediatric neurologists and behavioral specialists.

• Guidelines and payer shifts are supporting exome/genome as first-line tests for children with neurological symptoms.

• 29 states now cover exome in outpatient settings; 14 cover genome in inpatient settings.

• Sales team of 54, complemented by medical science liaisons, is considered right-sized for current growth.