SOPHiA GENETICS (SOPH) Morgan Stanley 22nd Annual Global Healthcare Conference summary

Business evolution and market performance

• U.S. market bookings up 40% in Q1, with strong momentum expected to continue or accelerate.

• Biopharma segment faced challenges in 2024 after a strong 2023, prompting leadership changes and a more diversified pipeline.

• Data and diagnostics efforts in biopharma are now split, with new leaders focusing on each area.

• Diagnostics strategy is established, while the data business is newer and requires more go-to-market focus.

• EMEA saw temporary revenue slowdowns, but bookings and pipeline are accelerating, with growth expected to normalize in Q4 and next year.

Competitive landscape and technology differentiation

• Cloud-centric platform delivers high sensitivity, specificity, and accuracy at scale and low cost.

• Platform is compatible with all major sequencing hardware, including new entrants and established players.

• Breadth and complexity of genetic data per patient are increasing, favoring scalable, multimodal solutions.

• Software and analytics are expected to grow as a share of total precision medicine costs, potentially reaching 30–45%.

• Platform’s ability to integrate diverse data modalities and support decentralized analytics is a key differentiator.

Data security, compliance, and customer trust

• Adheres to GDPR principles, never owning customer data and acting as a disciplined handler of de-identified data.

• Platform is viewed as a trusted partner, enabling secure data exchange and collaboration without monetizing raw data.

• Top institutions, even in data-sensitive regions like Germany, are adopting the platform.

• Data security is ensured through architectural design and partnerships with providers like Microsoft.