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NTRA · Natera

36 filings

10-Q

NTRA 10-Q Quarterly Reports

Natera - 36 quarterly reports

Filing record · 2016–202610-K1110-Q348-K105

2026-Q2
Natera Quarterly Report for Q2 Ended Jun 30, 2026
Natera, Inc. reported a sharply larger top line for the second quarter and first half of 2026, with total revenues of $752.8 million for the three months ended June 30, 2026 (up from $546.6 million) and $1,449.4 million for the six months (up from $1,048.4 million). Product revenues drove the growth, and the filing attributes part of it to a $52.3 million change in estimate for tests delivered in prior periods during the quarter, versus $113.3 million for the six months. Net loss narrowed to $67.0 million for the quarter ($0.47 per share) from $100.9 million a year earlier, and to $152.1 million for the six months from $167.9 million. Stock-based compensation was $198.2 million for the six months, a large share of the operating loss. Research and development expense rose to $228.1 million for the quarter from $146.4 million, and selling, general and administrative expense rose to $327.2 million from $310.5 million. Gross margin on total revenues was 64.5% for the quarter and 64.6% for the six months, per the segment note. Operating cash flow was $95.0 million for the six months, while capital expenditures were $85.6 million. Cash, cash equivalents and restricted cash were $1.09 billion at June 30, 2026, against $80.3 million outstanding on the UBS Credit Line, with $20.0 million remaining available. Management states that existing cash should cover requirements for at least 12 months from the filing date. Litigation remains significant. The filing describes a $292.5 million jury verdict against the Company in favor of Guardant Health, which has been entered as final judgment and is being appealed to the Ninth Circuit, and a $57.0 million Ravgen damages verdict with a notice of appeal filed. The accrual for probable and estimable legal contingencies was $33.2 million at June 30, 2026. The Company also has contingent consideration of up to $175.0 million tied to the Foresight Diagnostics acquisition, with $120.5 million recognized at fair value.
Aug 7, 2026
2026-Q1
Natera Quarterly Report for Q1 Ended Mar 31, 2026
Natera, Inc. reported a first-quarter 2026 net loss of $85.1 million on total revenues of $696.6 million, up from $501.8 million in the prior-year quarter (an increase of $194.8 million, or 38.8%). Product revenues were $693.9 million. Loss from operations was $93.5 million, compared with $79.2 million a year earlier. Stock-based compensation was $95.1 million for the quarter, and the company's accumulated deficit reached $2.9 billion as of March 31, 2026. Management attributes revenue growth to higher test volumes and average selling price improvements, with oncology units rising to approximately 258,900 from 167,700. Gross margin was 64.7%, compared with 63.1% in the prior-year period. The filing also notes that the revenue figure includes a net $61.0 million increase from changes in estimates for tests delivered in prior periods. The balance sheet shows cash, cash equivalents and restricted cash of $1.09 billion at quarter-end, against $80.3 million drawn on the UBS Credit Line, with $20.0 million remaining available. Operating cash flow was positive at $40.2 million for the quarter, supported by a $98.2 million increase in accrued compensation, while accounts receivable rose by $121.1 million. Management states that existing cash should be sufficient to meet anticipated requirements for at least 12 months, while also noting that the company expects to keep incurring net losses and may need to raise additional capital. The filing also covers the Foresight Diagnostics acquisition completed in December 2025 for total consideration of $424.5 million, including up to $175.0 million in contingent consideration, of which $125.6 million was recorded as a liability at March 31, 2026. Ongoing litigation includes a $292.5 million jury verdict against Guardant Health that the company plans to appeal, and an accrual of approximately $33.0 million for probable and estimable legal contingencies.
May 8, 2026
2025-Q3
Natera Quarterly Report for Q3 Ended Sep 30, 2025
Natera, Inc. reported third-quarter 2025 results in this Form 10-Q, with total revenues of $592.2 million for the three months ended September 30, 2025, up 34.7% from $439.8 million a year earlier. Product revenues were $590.2 million, and gross margin was 64.9% versus 61.8% in the prior-year quarter. Net loss widened to $87.5 million from $31.6 million, driven by higher research and development ($173.4 million vs. $96.9 million) and selling, general and administrative expenses ($308.5 million vs. $214.2 million). For the nine months, revenues were $1.64 billion and the net loss was $255.4 million, including $261.8 million of stock-based compensation. The balance sheet remained liquid, with $1.04 billion in cash, cash equivalents and restricted cash and $1.0 million in marketable securities at September 30, 2025. The company had $80.3 million outstanding on its UBS Credit Line, with $20.0 million still available, and it must maintain at least $150.0 million in its UBS accounts as collateral. Management states that existing cash and marketable securities are sufficient to meet anticipated cash requirements for at least 12 months, while also noting it will need to generate additional revenue to reach profitability and may need to raise capital. Operating cash flow was positive at $141.4 million for the nine months, while investing outflows of $60.6 million reflected $70.1 million of property and equipment purchases. The filing also details extensive litigation. The company recorded accruals of approximately $40.8 million for probable and estimable legal contingencies, up from $12.6 million at year-end 2024. Notable matters include a $292.5 million jury verdict in favor of Natera against Guardant Health for false advertising, which the court largely upheld in a July 2025 post-trial order, with no final judgment yet entered, and a $57.0 million damages verdict in the Ravgen case against Natera, for which judgment has not been entered. The company also settled its case with Labcorp in September 2025 and received a final judgment in favor of NeoGenomics in its RaDaR-related litigation.
Nov 7, 2025
2025-Q2
Natera Quarterly Report for Q2 Ended Jun 30, 2025
Natera, Inc. reported a 10-Q for the quarter ended June 30, 2025. Total revenues were $546.6 million for the three months ended June 30, 2025, up from $413.4 million a year earlier, and $1.048 billion for the six months, up from $781.1 million. Product revenues drove the increase, which the filing attributes to test volume growth and average selling price improvements. Net loss widened to $100.9 million for the quarter (from $37.5 million) and $167.9 million for the six months (from $105.1 million). Research and development and selling, general and administrative expenses both rose sharply, and stock-based compensation was $171.2 million for the six months. At June 30, 2025, the company held $1.00 billion in cash, cash equivalents and restricted cash and $16.0 million in marketable securities, against $80.3 million outstanding on its UBS Credit Line, with $20.0 million still available. Management states these resources should be sufficient for at least 12 months after August 7, 2025. Operating cash flow was positive at $82.0 million for the six months. The company's accumulated deficit reached $2.7 billion. The filing also details extensive litigation. A jury verdict in Guardant Health's favor carried damages of $292.5 million, and a final order largely upholding it was entered July 28, 2025, with an appeal planned. Other matters include the Ravgen case with a $57 million jury damages finding (judgment not yet entered) and the ArcherDX and CareDx patent cases. The company accrued approximately $40.6 million for probable and reasonably estimable legal contingencies as of June 30, 2025, up from $12.6 million at December 31, 2024.
Aug 8, 2025
2025-Q1
Natera Quarterly Report for Q1 Ended Mar 31, 2025
Natera, Inc. reported a first-quarter 2025 net loss of $66.9 million on total revenues of $501.8 million, up from $367.7 million in the prior-year quarter, according to the Form 10-Q for the period ended March 31, 2025. Product revenues were $500.0 million, and loss from operations was $79.2 million. Stock-based compensation was $77.8 million in the quarter, and the company reported an accumulated deficit of $2.6 billion. Gross margin was 63.1%, compared with 56.7% a year earlier, per the segment note. At March 31, 2025, the company held $973.8 million in cash, cash equivalents and restricted cash and $17.8 million in marketable securities. It had $80.3 million outstanding on its UBS Credit Line, with $20.0 million remaining available. Management states that existing cash and marketable securities are sufficient to meet anticipated cash requirements for at least 12 months after May 8, 2025. Cash provided by operating activities was $44.5 million in the quarter. The filing also details extensive litigation. A jury awarded Natera $96.3 million in lost profits and royalties against CareDx, but in February 2025 the court granted CareDx's motion for judgment as a matter of law and invalidated both asserted patents, and Natera has appealed. Conversely, a jury found Natera liable for false advertising in a suit brought by Guardant and awarded $292.5 million in damages, with no final judgment entered yet. The company accrued approximately $22.6 million for probable and reasonably estimable legal contingencies, and it states it cannot predict the ultimate outcome of these matters.
May 9, 2025
2024-Q3
Natera Quarterly Report for Q3 Ended Sep 30, 2024
Natera, Inc. reported a substantially improved third quarter and nine months of 2024 in this Form 10-Q filed November 12, 2024. Total revenues were $439.8 million for the three months ended September 30, 2024, up from $268.3 million a year earlier, and $1.22 billion for the nine months, compared with $771.5 million. Product revenues were $1.21 billion for the nine months. The company's net loss narrowed to $31.6 million for the quarter from $109.0 million, and to $136.7 million for the nine months from $356.8 million. Stock-based compensation was $202.5 million for the nine months. The filing notes that the quarterly results include $34.5 million of cash receipts for tests delivered in prior periods, which increased revenue, and the company's loss per share for the quarter was $0.26. The balance sheet shows cash, cash equivalents and restricted cash of $892.8 million and marketable securities of $29.5 million at September 30, 2024, against an $80.4 million Credit Line balance and $287.5 million of 2.25% Convertible Senior Notes principal. Operating cash flow was positive at $82.8 million for the nine months, compared with an outflow of $189.4 million a year earlier. The company stated that existing cash and marketable securities are expected to be sufficient for at least 12 months after November 12, 2024. It also announced in July 2024 the redemption of all outstanding Convertible Notes, completed October 11, 2024, with $287.4 million converted into approximately 7.5 million common shares. The filing also details ongoing litigation, including a $96.3 million jury award to the company against CareDx, a $57 million damages verdict against the company in the Ravgen case, and multiple securities and false advertising suits. The company states it does not believe these matters will have a material effect on its financial condition, though outcomes are uncertain.
Nov 12, 2024
2024-Q2
Natera Quarterly Report for Q2 Ended Jun 30, 2024
Natera, Inc. reported a sharp improvement in its second-quarter 2024 results. Total revenues were $413.4 million for the three months ended June 30, 2024, up from $261.4 million a year earlier, and $781.1 million for the six months, up from $503.2 million. Product revenues were $411.4 million for the quarter. Loss from operations narrowed to $43.9 million from $112.4 million, and the net loss narrowed to $37.5 million from $110.8 million. For the six months, the net loss was $105.1 million versus $247.7 million a year earlier. Stock-based compensation was $131.9 million for the six months, and the company cited its accumulated deficit of $2.5 billion. Liquidity is described as adequate for at least 12 months after August 8, 2024. At June 30, 2024 the company held $796.8 million in cash, cash equivalents and restricted cash and $90.3 million in short-term investments. Debt consisted of $80.4 million drawn on a UBS Credit Line, with $20.0 million remaining available, and $287.5 million of 2.25% Convertible Senior Notes due 2027. On July 19, 2024, Natera elected to redeem all of those notes on October 11, 2024, and stated it expects substantially all to convert into common stock, which would involve roughly 7.5 million shares. The company said it does not expect a material effect on liquidity from this decision. The filing also details significant litigation. Natera won a January 2024 jury verdict against CareDx that awarded $96.3 million in lost profits and royalties. It faces a $57 million jury damages finding in the Ravgen case, which it intends to appeal, and a number of securities and false advertising matters remain pending. The filing states the company does not believe any pending matters will have a material effect on its financial condition.
Aug 9, 2024
2024-Q1
Natera Quarterly Report for Q1 Ended Mar 31, 2024
Natera, Inc. reported a net loss of $67.6 million for the three months ended March 31, 2024, compared with a net loss of $136.9 million in the same period of 2023. Total revenues rose to $367.7 million from $241.8 million, with product revenues of $364.7 million, up from $237.8 million. Loss from operations narrowed to $74.3 million from $138.3 million, while selling, general and administrative expenses increased to $194.3 million. The filing states that the company processed approximately 735,800 tests in the quarter, up from approximately 626,200, driven by growth in Signatera, Panorama and Horizon. The company also noted that the Company increased revenue by a net $33.7 million from collections on tests delivered in prior periods, which contributed $0.28 to the improvement in loss per share. The balance sheet remained solid, with cash, cash equivalents and restricted cash of $813.8 million and $69.1 million in short-term investments as of March 31, 2024. Against this, the company carried $80.4 million outstanding on its UBS Credit Line, with $20.0 million remaining available, and $287.5 million of 2.25% Convertible Senior Notes due 2027. Management stated that existing cash and marketable securities are expected to be sufficient to meet cash requirements for at least 12 months after May 9, 2024. Cash provided by operating activities was $27.0 million, compared with cash used of $81.1 million a year earlier. The filing also details significant litigation. In January 2024, a jury found in the company's favor in its patent case against CareDx and awarded $96.3 million, while a jury verdict against the company in the Ravgen patent case set damages at $57 million, which the company intends to appeal. Other matters include a $19.35 million ArcherDX damages award, a pending Guardant trial scheduled for August 2024, and several securities and shareholder suits. The company's stock-based compensation expense was $64.4 million for the quarter, a significant contributor to its operating loss.
May 10, 2024
2023-Q3
Natera Quarterly Report for Q3 Ended Sep 30, 2023
Natera, Inc. reported its third-quarter 2023 results in this Form 10-Q for the period ended September 30, 2023. Total revenues were $268.3 million for the three months, up 27.4% from $210.6 million a year earlier, and $771.5 million for the nine months, up from $603.0 million. Product revenues drove growth, rising to $265.2 million in the quarter, while licensing and other revenues fell to $3.1 million. Net loss narrowed to $109.0 million for the quarter from $121.5 million, but widened to $356.8 million for the nine months compared with $405.2 million a year earlier; the nine-month figure is lower than the prior year, and the quarterly loss also decreased. Stock-based compensation was $142.9 million for the nine months. Liquidity improved after a September 2023 public offering of 4,550,000 shares at $55 per share, which generated net proceeds of approximately $235.8 million. At quarter end, the company held $668.7 million in cash, cash equivalents and restricted cash and $267.8 million in short-term investments. Debt consisted of an $80.4 million drawn balance on a UBS credit line and $287.5 million of 2.25% convertible senior notes due 2027. Management states that existing cash and marketable securities are sufficient for at least 12 months after November 8, 2023, while noting that the company expects continued losses and may need additional financing. The filing also details a substantial litigation docket, including patent suits with CareDx, ArcherDX, Ravgen, Inivata, Invitae and Guardant, a false advertising judgment against Natera that was partly set aside in July 2023 and is on appeal, and several securities and consumer class actions. An independent committee concluded that allegations in a March 2022 short seller report were unfounded.
Nov 9, 2023
2023-Q2
Natera Quarterly Report for Q2 Ended Jun 30, 2023
Natera, Inc.'s Form 10-Q for the quarter ended June 30, 2023 reports total revenues of $261.4 million for the three months ended June 30, 2023, up from $198.2 million a year earlier, and $503.2 million for the six months, up from $392.3 million. Product revenues were $258.3 million for the quarter and $496.1 million for the six months. The company's net loss narrowed to $110.8 million for the quarter from $145.2 million, and to $247.7 million for the six months from $283.7 million. Loss from operations for the six months was $250.7 million, compared with $280.2 million a year earlier. The filing notes that stock-based compensation was $85.2 million for the six months ended June 30, 2023. Liquidity is a central focus. As of June 30, 2023, the company held $381.1 million in cash, cash equivalents and restricted cash and $354.8 million in short-term investments. It had $287.5 million of 2.25% Convertible Senior Notes due 2027 outstanding and an $80.4 million balance on its UBS Credit Line, with $20.0 million remaining available after the line was reduced from $150.0 million to $100.0 million in June 2023. Management states that existing cash and marketable securities are expected to be sufficient for at least 12 months after August 3, 2023. The filing also states that the company will need to generate additional revenue to achieve future profitability and may need to raise additional equity or debt financing. The filing describes multiple pending legal matters, including patent litigation against CareDx, ArcherDX and Invitae, and securities class actions. It states that a jury awarded the company $19.35 million in damages in its ArcherDX case, and that in July 2023 the court set aside portions of an adverse CareDx jury verdict on false advertising. The company's disclosure controls were concluded to be effective as of June 30, 2023.
Aug 4, 2023
2023-Q1
Natera Quarterly Report for Q1 Ended Mar 31, 2023
Natera, Inc. reported a first-quarter 2023 net loss of $136.9 million on total revenues of $241.8 million, up from $194.1 million in the prior-year quarter. Product revenues were $237.8 million, and total cost and expenses rose to $380.1 million. The company's accumulated deficit reached $2.1 billion as of March 31, 2023. Management stated that the company will need to generate additional revenues to achieve profitability and may need to raise additional equity or debt financing, while believing existing cash and marketable securities will be sufficient for at least 12 months after May 9, 2023. Liquidity at March 31, 2023 included $403.2 million in cash, cash equivalents and restricted cash and $408.9 million in short-term investments. Debt consisted of $80.4 million drawn on a UBS Credit Line (with $70.0 million remaining available) and $287.5 million of 2.25% Convertible Senior Notes due 2027. Cash used in operating activities was $80.9 million for the quarter, compared with $137.3 million a year earlier. Stock-based compensation was $40.7 million. The filing also reports that the company reduced product revenue by a net $9.2 million for tests delivered in prior periods, and that the company's legal matters include a pending patent and false-advertising litigation portfolio, a pending securities class action, and a pending motion regarding a CareDx jury verdict of $44.9 million. An independent board committee concluded that allegations in a March 2022 short seller report were unfounded.
May 10, 2023
2022-Q3
Natera Quarterly Report for Q3 Ended Sep 30, 2022
Natera, Inc. reported a net loss of $405.2 million for the nine months ended September 30, 2022, compared to $331.2 million in the prior-year period, and an accumulated deficit of $1.8 billion. Total revenues for the nine months were $603.0 million, up 33.3% from $452.5 million, with product revenues of $584.4 million rising 41.2%. Revenue growth was driven by continued volume growth in Panorama and Horizon (HCS), while licensing and other revenues declined 51.8% due to a $28.6 million Qiagen-related recognition in the prior year. Stock-based compensation was $116.4 million for the nine months, and cash used in operating activities was $350.4 million. At September 30, 2022, the company held $57.1 million in cash, cash equivalents and restricted cash and $464.1 million in short-term investments, against $287.5 million of 2.25% Convertible Senior Notes due 2027 and $50.1 million outstanding on its UBS Credit Line. In November 2022, the company drew $30.0 million from the $100.0 million then available on the Credit Line. Management states that existing cash and marketable securities will be sufficient to meet anticipated cash requirements for at least 12 months after November 8, 2022, but notes it will need additional revenue and may need to raise equity or debt financing to achieve future profitability. On November 4, 2022, the company effected an organizational update reducing headcount by approximately 3.8%, with estimated expenses of about $4.7 million, substantially all cash and equity-award vesting costs through Q1 2023. The filing also discloses numerous pending legal matters, including a jury verdict against the company in a CareDx false advertising case with damages of $44.9 million, which management does not consider a probable and estimable loss, and securities class actions filed in 2022.
Nov 9, 2022
2022-Q2
Natera Quarterly Report for Q2 Ended Jun 30, 2022
Natera, Inc. reported a six-month net loss of $283.7 million for the period ended June 30, 2022, compared with $179.9 million in the prior-year period, as total revenues rose to $392.3 million from $294.3 million. Product revenues were $384.6 million, driven by Panorama and Horizon test volume growth, while licensing and other revenues fell to $7.7 million from $34.3 million, largely because the prior year included $28.6 million of Qiagen deferred revenue recognized after a settlement. Operating expenses grew faster than revenue: research and development rose 73.5% to $163.0 million and selling, general and administrative expenses rose 26.0% to $297.1 million, with stock-based compensation of $76.1 million for the six months. The balance sheet shows $91.4 million in cash and cash equivalents, $547.4 million in short-term investments, and $287.5 million of 2.25% Convertible Senior Notes due 2027, plus $50.1 million drawn on a UBS credit line. Stockholders' equity fell to $444.6 million from $653.3 million at year-end 2021, and the accumulated deficit reached $1.7 billion. Operating cash outflow was $248.1 million for the six months. Management states that existing cash and marketable securities are sufficient to meet anticipated requirements for at least 12 months after August 4, 2022, but notes that future profitability will require additional revenue and that it may need to raise equity or debt financing. The filing also details significant litigation, including a jury verdict in March 2022 finding Natera liable to CareDx for $44.9 million, which the company has challenged through a pending motion for judgment as a matter of law, and several class actions and securities suits. The company does not consider a loss from the CareDx matter probable and estimable at this time.
Aug 5, 2022
2022-Q1
Natera Quarterly Report for Q1 Ended Mar 31, 2022
Natera, Inc. reported a first-quarter 2022 net loss of $138.6 million on total revenues of $194.1 million, up from $152.3 million in the prior-year quarter. Product revenues rose to $190.0 million, while licensing and other revenues fell to $4.1 million from $31.9 million, mainly because the prior-year period included $28.6 million recognized from the Qiagen settlement. Total cost and expenses reached $331.3 million, with research and development at $80.4 million and selling, general and administrative expenses at $147.6 million. Stock-based compensation was $35.1 million for the quarter. At March 31, 2022, the company held $158.5 million in cash, cash equivalents and restricted cash and $593.7 million in short-term investments, against $287.5 million of 2.25% convertible senior notes due 2027 and $50.1 million outstanding on its UBS credit line. Management states that existing cash and marketable securities are sufficient to meet anticipated requirements for at least 12 months after May 6, 2022, but notes that the company will need to generate additional revenue to reach profitability and may need to raise additional equity or debt financing. Stockholders' equity declined to $542.3 million from $653.3 million at year-end 2021. The filing discloses a growing litigation docket, including a March 2022 jury verdict finding Natera liable to CareDx for $44.9 million, which the company is contesting through a pending motion for judgment as a matter of law, and several securities and consumer class actions filed in March and April 2022 relating to the Panorama test and company operations.
May 6, 2022
2021-Q3
Natera Quarterly Report for Q3 Ended Sep 30, 2021
Natera, Inc. reported a sharp increase in revenue but a widening net loss for the quarter and nine months ended September 30, 2021. Total revenues were $158.1 million for the three months ended September 30, 2021, up from $98.1 million a year earlier, and $452.5 million for the nine months, up from $278.6 million. Product revenues, driven mainly by Panorama and Horizon tests, were $150.7 million for the quarter. Net loss was $151.3 million for the quarter and $331.2 million for the nine months, compared with $58.3 million and $153.3 million in the prior-year periods. Operating expenses rose sharply, with research and development of $98.5 million in the quarter, including a $35.6 million write-off of acquired in-process research and development, and selling, general and administrative expenses of $128.5 million. The balance sheet strengthened on financing. The company completed a July 2021 equity offering of 5,175,000 shares at $113 per share, with net proceeds of $551.2 million. At September 30, 2021, the company held $95.3 million in cash, cash equivalents and restricted cash and $928.6 million in short-term investments, against $287.5 million of 2.25% Convertible Senior Notes due 2027 and a $50.0 million UBS credit line. Management states that existing cash and marketable securities are sufficient to meet anticipated cash requirements for at least 12 months after November 4, 2021, but also states that the company expects continued losses and may need additional equity or debt financing. The accumulated deficit stood at $1.3 billion. The filing also discloses a May 2021 development and option agreement under which the company may elect to pay a third party an additional $290 million for designated assets, and pending patent litigation with several competitors, including CareDx, ArcherDX, Guardant and Invitae. A September 28, 2021 summary judgment in the CareDx case found three patents invalid, and CareDx and Stanford have appealed. A Progenity settlement was reached on August 3, 2021.
Nov 5, 2021
2021-Q2
Natera Quarterly Report for Q2 Ended Jun 30, 2021
Natera, Inc. (NTRA) reported its Form 10-Q for the quarter ended June 30, 2021. For the six months ended June 30, 2021, total revenues were $294.3 million, up from $180.5 million in the prior-year period, with product revenues of $255.6 million and licensing and other revenues of $38.7 million. The licensing increase reflects $28.6 million recognized from Qiagen previously held in deferred revenue. Net loss widened to $179.9 million from $95.0 million, driven by higher selling, general and administrative expenses ($235.8 million) and research and development expenses ($93.9 million), including stock-based compensation of $58.3 million. Net cash used in operating activities was $145.4 million. At June 30, 2021, the company held $63.0 million in cash, cash equivalents and restricted cash and $517.4 million in short-term investments, against $287.5 million of 2.25% Convertible Senior Notes due 2027 and $50.0 million outstanding under its UBS Credit Line. Stockholders' equity was $299.1 million, and the accumulated deficit was $1.1 billion. The filing states the company believes existing cash and marketable securities will be sufficient for at least 12 months after August 5, 2021, and it subsequently completed a July 2021 equity offering of 5,175,000 shares at $113 per share, with net proceeds of $551.2 million. The company also disclosed a May 2021 development and option agreement under which it paid a third party $10 million and may pay an additional $290 million to acquire that third party's assets. Ongoing patent and false advertising litigation includes suits against CareDx, ArcherDx, Progenity (settled August 3, 2021), Guardant and others. Management concluded disclosure controls were effective as of June 30, 2021.
Aug 6, 2021
2021-Q1
Natera Quarterly Report for Q1 Ended Mar 31, 2021
Natera, Inc. reported a first-quarter 2021 net loss of $63.9 million on total revenues of $152.3 million, up from $94.0 million in the prior-year quarter, a 62.0% increase. Product revenues rose to $118.4 million, while licensing and other revenues jumped to $33.9 million, which includes $28.6 million recognized from Qiagen after the termination and settlement of that agreement. Operating expenses grew sharply, with selling, general and administrative expenses at $108.3 million and research and development at $40.2 million. Stock-based compensation was $23.2 million for the quarter, compared with $7.4 million a year earlier, and the accumulated deficit reached $987.0 million. The company ended the quarter with $65.3 million in cash, cash equivalents and restricted cash and $588.4 million in short-term investments. Against this, it carried $287.5 million of 2.25% Convertible Senior Notes due 2027 and $50.1 million outstanding on its UBS Credit Line. Management states that existing cash and marketable securities are sufficient for at least 12 months after May 6, 2021, while also acknowledging the company will need additional revenue to reach profitability and may need to raise more equity or debt. Adoption of ASU 2020-06 removed the separate equity component of the convertible notes and reduced reported interest expense. The filing also describes ongoing patent and false-advertising litigation with CareDx, ArcherDX, Progenity, Inivata, Genosity, Ravgen and others, and states that the company has not recorded any accrual for these loss contingencies. Average selling prices declined year over year, while test volume grew, with 348,200 tests processed in the quarter compared with 235,500 a year earlier.
May 7, 2021
2020-Q3
Natera Quarterly Report for Q3 Ended Sep 30, 2020
Natera, Inc. filed this Form 10-Q for the quarter ended September 30, 2020. Total revenues for the nine months were $278.6 million, up from $219.1 million a year earlier, with product revenues of $260.7 million. Net loss widened to $153.3 million for the nine months (versus $89.6 million), and the accumulated deficit reached $852.9 million. Three-month revenue was $98.1 million and the three-month net loss was $58.3 million. Product revenue growth was driven by test volume growth in Panorama and Horizon, while licensing and other revenues declined 24.5% for the nine months, primarily due to the Evercord business sale in 2019. Liquidity improved substantially during 2020. The company issued $287.5 million of 2.25% Convertible Senior Notes due 2027 in April 2020 (net proceeds $278.3 million), used about $79.2 million to repay the OrbiMed 2017 Term Loan, and raised $270.7 million in a September 2020 equity offering. At September 30, 2020, cash, cash equivalents and restricted cash totaled $209.5 million and short-term investments were $600.2 million. Management states these resources are sufficient for at least 12 months after November 5, 2020, while acknowledging future profitability will require additional revenue and possibly more financing. The filing also highlights risks: COVID-19 effects on test volumes, reliance on Illumina as sole sequencer supplier and Streck as sole blood-tube supplier, limited third-party payer coverage for average-risk NIPT and microdeletion screening, multiple patent litigations (including with Illumina, CareDx, ArcherDX and Progenity), and a Qiagen agreement terminated in March 2020 with refund amounts still under discussion.
Nov 6, 2020
2020-Q2
Natera Quarterly Report for Q2 Ended Jun 30, 2020
Natera, Inc. reported a second quarter 2020 net loss of $59.6 million on total revenues of $86.5 million, up from $74.4 million a year earlier, with product revenues rising 23.5% to $80.4 million. Licensing and other revenues fell 34.6% to $6.1 million, mainly due to lower Strategic Partnership Agreement revenue and the sale of the Evercord business. Operating expenses grew faster than revenue: research and development rose 89.7% to $23.0 million and selling, general and administrative expenses rose 45% to $68.2 million, which the filing attributes largely to headcount growth and stock-based compensation. For the six months ended June 30, 2020, the net loss was $95.0 million on revenues of $180.5 million. In April 2020 the company issued $287.5 million of 2.25% Convertible Senior Notes due 2027 and used about $79.2 million of the net proceeds to repay its 2017 Term Loan with OrbiMed, recording a $5.8 million loss on debt extinguishment. Cash, cash equivalents and restricted cash were $77.4 million at June 30, 2020, with $493.9 million in short-term investments. Management believes existing cash and marketable securities are sufficient for at least 12 months after August 6, 2020, but the filing states the company will need additional revenue to reach profitability and may need to raise more equity or debt. The filing also highlights COVID-19 as a material uncertainty, noting that test volumes were flat from Q1 to Q2 2020 and that average selling prices declined slightly. It describes ongoing litigation with Illumina (settled May 8, 2020 as to NIPT and PGS/PGD claims), CareDx, ArcherDX and Progenity, and continued dependence on Panorama and Horizon for most revenue, with reimbursement for average-risk NIPT and microdeletions screening still limited.
Aug 7, 2020
2020-Q1
Natera Quarterly Report for Q1 Ended Mar 31, 2020
Natera, Inc. filed this Form 10-Q for the quarter ended March 31, 2020. Total revenues rose to $94.0 million from $66.8 million in the prior-year quarter, driven by product revenues of $87.0 million (up from $63.4 million) and licensing and other revenues of $7.0 million (up from $3.5 million). The company still posted a net loss of $35.4 million, compared with $34.1 million a year earlier, as selling, general and administrative expenses rose to $65.7 million and research and development to $18.2 million. Net cash used in operating activities was $35.1 million. The filing states that test volumes began to decline in the second half of March 2020 due to COVID-19 and that the company expects a material adverse impact on financial results for at least the next quarter and potentially the full year. As of March 31, 2020, the company held $74.1 million in cash and cash equivalents and $331.7 million in short-term investments, against $50.1 million outstanding on its Credit Line and $72.9 million net carrying amount on the 2017 Term Loan. In April 2020, Natera executed a purchase agreement for $287.5 million of 2.25% Convertible Senior Notes due 2027 and used part of the net proceeds of roughly $278.9 million to repay the 2017 Term Loan, with a payoff of $79.2 million. The company believes existing cash and marketable securities will be sufficient for at least 12 months after May 7, 2020. The filing also details ongoing litigation, including patent suits with Illumina, CareDX and ArcherDX, and a Qiagen agreement that Natera terminated in March 2020, with the refund of prepaid royalties still under discussion. Accumulated deficit reached $734.9 million at March 31, 2020.
May 8, 2020
2019-Q3
Natera Quarterly Report for Q3 Ended Sep 30, 2019
Natera, Inc. (NTRA) reported its third-quarter 2019 results in this Form 10-Q for the period ended September 30, 2019. Total revenues were $77.9 million for the quarter, up from $65.3 million a year earlier, and $219.1 million for the nine months, up from $190.7 million. Product revenues (Panorama NIPT and Horizon Carrier Screening) rose to $66.9 million for the quarter, while licensing and other revenues rose to $11.0 million, driven mainly by $6.9 million of BGI Genomics license revenue. Net loss narrowed to $23.1 million for the quarter from $29.6 million, helped by a $14.4 million gain on the September 2019 sale of the Evercord cord blood business. Net loss for the nine months was $89.6 million, compared with $96.3 million a year earlier, and the accumulated deficit reached $664.0 million. Liquidity improved during the period. Cash and cash equivalents were $51.7 million and short-term investments $186.7 million at September 30, 2019, against $50.1 million outstanding on the UBS Credit Line and $73.6 million net carrying amount of the 2017 Term Loan with OrbiMed. The company stated that the sale of 5.7 million shares at $35 in October 2019 generated net proceeds of $216.2 million after the filing's balance sheet date, and it believes existing cash and securities will be sufficient for at least 12 months after November 8, 2019. Operating cash outflow for the nine months was $48.4 million. The filing also flags material risks. Management describes ongoing patent litigation with Illumina over the Panorama test and with CareDx over transplant rejection testing, a false-advertising suit from CareDx, and several consumer and product-liability suits. It notes that reimbursement for average-risk Panorama testing and microdeletions screening remains limited, that the cloud-based Constellation licensing model has been slower to gain adoption than anticipated, and that the company depends on sole-source suppliers, notably Illumina for sequencers and Streck for blood collection tubes. The company also states that it will cease to be an emerging growth company as of December 31, 2019.
Nov 8, 2019
2019-Q2
Natera Quarterly Report for Q2 Ended Jun 30, 2019
Natera, Inc. reported a six-month net loss of $66.5 million for the period ended June 30, 2019, versus $66.7 million a year earlier, while total revenues rose to $141.2 million from $125.4 million. Product revenues were $128.5 million (Panorama NIPT $73.7 million, HCS $47.0 million), and licensing and other revenues were $12.7 million, including $5.0 million from the BGI Genomics license. Selling, general and administrative expenses rose 20.6% to $90.9 million, while research and development fell 10.1% to $23.6 million. The accumulated deficit reached $640.9 million at June 30, 2019. Liquidity improved during the quarter. In April 2019 the company completed an underwritten equity offering of 5,263,158 shares at $19 per share, plus an additional 789,473 shares from the underwriters' option, for net proceeds of $108.1 million. At June 30, 2019 the company held $30.0 million in cash and equivalents and $208.1 million in short-term investments, against a $50.1 million Credit Line balance and a $73.5 million net carrying amount on the 2017 Term Loan. Management states that existing cash and marketable securities are sufficient for at least 12 months after August 8, 2019, but also notes it will need additional revenue and may need to raise more capital. The filing highlights concentration and legal risk. Panorama remains the largest revenue source, and the filing notes reimbursement for average-risk pregnancies and microdeletions screening remains limited. The company is in litigation with Illumina over patents and with CareDX over patent infringement and false advertising claims. A securities class action related to the 2015 IPO remains on appeal after judgment was entered for the defendants.
Aug 9, 2019
2019-Q1
Natera Quarterly Report for Q1 Ended Mar 31, 2019
Natera, Inc. reported a first-quarter 2019 net loss of $34.1 million on total revenues of $66.8 million, up from $62.3 million in the first quarter of 2018. Product revenues rose to $63.4 million from $54.3 million, led by Panorama NIPT ($37.2 million) and Horizon Carrier Screening ($22.7 million), while licensing and other revenues fell to $3.5 million from $8.1 million, largely because the prior-year Qiagen technology license revenue of $5.5 million did not recur. Operating cash outflow was $31.8 million in the quarter, and cash and cash equivalents stood at $34.3 million at March 31, 2019, with $93.8 million in short-term investments. Total stockholders' equity fell to $5.0 million from $32.2 million at year-end 2018, and the accumulated deficit reached $608.5 million. The company stated that its existing cash and marketable securities will be sufficient for at least 12 months after May 9, 2019. Subsequent to quarter-end, on April 23 and April 26, 2019, Natera completed an underwritten equity offering of 6,052,631 shares at $19 per share, with net proceeds of $108.1 million after underwriting discount and before offering expenses of $0.6 million. The filing also discloses debt of $123.6 million including accrued interest at March 31, 2019, consisting of a $50.2 million UBS Credit Line and the $73.4 million net carrying amount of the 2017 Term Loan with OrbiMed. Legal matters include patent litigation with Illumina, two lawsuits filed by CareDX in March and April 2019, a Telephone Consumer Protection Act class action, and a securities class action whose judgment in favor of the defendants was appealed. The filing emphasizes continued dependence on Panorama and Horizon, a cloud-based Constellation licensing model that has been adopted more slowly than expected, reimbursement pressures including prior authorization requirements and low microdeletions reimbursement, and reliance on sole-source suppliers such as Illumina and Streck. The company states it expects continued losses and may need additional financing.
May 10, 2019
2018-Q1-A
Natera Quarterly Report (Amendment) for Q1 Ended Mar 31, 2018
Natera, Inc. (NTRA) filed this Amendment No. 1 on Form 10-Q/A on February 6, 2019, to amend its Quarterly Report on Form 10-Q for the quarter ended March 31, 2018, originally filed May 10, 2018. The filing states that the amendment is an exhibit-only filing made in response to SEC staff comments on the company's confidential treatment request for Exhibit 10.1. It refiles Exhibit 10.1 without redaction to certain sections. The filing states that no revisions are being made to the company's financial statements or any other disclosure in the original Quarterly Report, and that the amendment speaks as of the original filing date. The filing identifies the company as an accelerated filer and an emerging growth company, and reports 54,512,645 shares of common stock outstanding as of May 3, 2018. The only substantive exhibit referenced is Exhibit 10.1, a License, Development and Distribution Agreement dated March 9, 2018, between Natera, Inc. and QIAGEN LLC, portions of which were omitted under a confidential treatment request. The exhibit list also references previously filed certifications and XBRL documents, along with corporate charter documents incorporated by reference from a July 9, 2015 Form 8-K. For investors, the principal takeaway is that this filing contains no new financial results or operating updates. Its significance lies in the unredacted disclosure of the QIAGEN licensing and distribution terms, which the filing describes only by title, date, and parties. The signatures are dated February 5, 2019, and are signed by Chief Executive Officer Steven Chapman and Chief Financial Officer Michael Brophy.
Feb 6, 2019
2018-Q3
Natera Quarterly Report for Q3 Ended Sep 30, 2018
Natera, Inc. (NTRA) reported its quarterly results for the period ended September 30, 2018 in this Form 10-Q filed November 9, 2018. Revenues for the three months ended September 30, 2018 were $65.3 million, up from $55.9 million (as revised) a year earlier, and net loss was $29.6 million, compared with $27.9 million. For the nine months, total revenues were $190.7 million and net loss was $96.3 million, with cash used in operating activities of $57.8 million. The filing states that the company adopted ASC 606 using the full retrospective approach, which resulted in a $41.6 million cumulative-effect adjustment to the opening accumulated deficit as of January 1, 2016, and that prior periods are presented as revised. Liquidity improved during the period. In July 2018 the company completed an equity offering of 4.5 million shares at $20 per share, with the underwriters exercising an option for 675,000 more shares, and received proceeds of $97.3 million before offering expenses. At September 30, 2018 the company held $34.5 million in cash and cash equivalents and $130.9 million in short-term investments, against $50.1 million outstanding on its Credit Line and a $73.3 million net carrying amount on its 2017 Term Loan. Management states that existing cash and marketable securities are expected to be sufficient to meet anticipated cash requirements for at least 12 months after November 8, 2018. The filing highlights concentration and legal risk. Panorama accounted for 55% of revenues for the nine months ended September 30, 2018, and HCS for 33%. Illumina filed a patent infringement suit on March 16, 2018 alleging that Panorama infringes a U.S. patent, and Natera filed its own suit against Illumina on August 16, 2018. A securities class action was dismissed on August 7, 2018 and the plaintiffs filed a notice of appeal. The company also settled a qui tam matter with the Department of Justice for approximately $11.4 million.
Nov 9, 2018
2018-Q2
Natera Quarterly Report for Q2 Ended Jun 30, 2018
Natera, Inc. filed this Form 10-Q for the quarter ended June 30, 2018. For the six months ended June 30, 2018, total revenues were $125.4 million, up from $101.7 million (as revised) a year earlier, with product revenues of $114.6 million and licensing and other revenues of $10.8 million, which includes $5.6 million recognized from the Qiagen agreement. The net loss widened slightly to $66.7 million from $62.5 million, and the accumulated deficit reached $513.1 million. Panorama NIPT generated $69.0 million, or 55%, of revenues for the six months, and HCS generated $39.7 million, or 32%. The company adopted ASC 606 on a full retrospective basis effective January 1, 2018, which increased the opening accumulated deficit adjustment by $41.6 million. Liquidity was tight at June 30, 2018, with $12.3 million in cash and cash equivalents, $70.9 million in short-term investments, $50.1 million drawn on the UBS Credit Line, and $73.2 million net carrying amount of the 2017 Term Loan with OrbiMed. Stockholders' equity was a deficit of $22.0 million. Subsequent to quarter end, on July 12, 2018, the company agreed to sell 4,500,000 shares at $20 per share, plus 675,000 option shares, and received net proceeds of $96.6 million at closing on July 16, 2018. Management believes existing cash and marketable securities will be sufficient for at least 12 months after August 9, 2018. The filing also discloses material risks: Illumina filed a patent infringement lawsuit over the Panorama test, a securities class action in San Mateo Superior Court received a judgment in defendants' favor on August 7, 2018 (plaintiffs may seek appellate review), and the company settled a Department of Justice qui tam matter for approximately $11.4 million. Management notes that prior authorization requirements from insurers have reduced collections, and that reimbursement for average-risk NIPT and microdeletions screening remains limited.
Aug 9, 2018
2018-Q1
Natera Quarterly Report for Q1 Ended Mar 31, 2018
Natera, Inc. reported a net loss of $32.9 million for the three months ended March 31, 2018, compared with $33.5 million (as revised) a year earlier, on total revenues of $62.3 million, up from $49.4 million (as revised). Product revenues were $54.3 million, and licensing and other revenues were $8.1 million, which included $5.5 million recognized from the Qiagen agreement. The company adopted ASC 606 on a full retrospective basis, which restated prior periods and produced a cumulative-effect adjustment of $41.6 million to the opening accumulated deficit. Accumulated deficit stood at $479.2 million at March 31, 2018, and total stockholders' deficit was $3.9 million, compared with equity of $25.4 million at December 31, 2017. At March 31, 2018, the company had $33.7 million in cash and cash equivalents and $80.0 million in short-term investments. It carried $50.1 million under its UBS Credit Line and $73.1 million net carrying amount under the 2017 Term Loan with OrbiMed. Operating cash flow was positive at $1.0 million for the quarter, and management stated that existing cash and marketable securities should be sufficient for at least 12 months after May 10, 2018. Legal matters include a patent infringement lawsuit filed by Illumina on March 16, 2018 over the Panorama test, a settled Department of Justice qui tam matter with an $11.4 million payment, and a pending securities class action in San Mateo Superior Court tied to the 2015 IPO. The filing also notes that the Panorama test is most reimbursed in-network, that many payers do not cover average-risk screening or microdeletions, and that the Constellation licensing model had 23 licensee agreements.
May 10, 2018
2017-Q3-A
Natera Quarterly Report (Amendment) for Q3 Ended Sep 30, 2017
Natera, Inc. filed Amendment No. 1 on Form 10-Q/A on March 22, 2018 (signed March 21, 2018) to amend its Quarterly Report on Form 10-Q for the quarter ended September 30, 2017, originally filed November 9, 2017. The amendment is an exhibit-only filing made to refile Exhibit 10.1, the Credit Agreement dated August 8, 2017 with Orbimed Royalty Opportunities II, LP, without certain redactions, in response to SEC staff comments on the company's confidential treatment request. The filing states that no revisions are being made to the company's financial statements or any other disclosure in the original Quarterly Report, and it speaks as of the original filing date. The filing reports 53,768,979 shares of common stock outstanding as of October 31, 2017. The company identifies itself as an emerging growth company and an accelerated filer, and it is not a shell company. Certifications from the CEO and CFO are included, along with XBRL exhibits. For investors, the substantive new content is limited to the unredacted credit agreement and related pledge, security and guarantee agreements with Orbimed, which are the company's financing arrangements with that lender. The filing itself does not provide financial results, loan amounts, or other terms beyond the exhibit titles and dates.
Mar 22, 2018
2017-Q3
Natera Quarterly Report for Q3 Ended Sep 30, 2017
Natera, Inc. (NTRA) reported a net loss of $90.8 million for the nine months ended September 30, 2017, compared with $57.9 million in the same period of 2016, and an accumulated deficit of $436.7 million. Total revenues declined 6.3% to $157.2 million for the nine months, driven by lower Panorama revenues, while licensing and other revenues rose to $3.7 million. The company cited lower average selling prices from in-network payers, low microdeletions collections under a new CPT code, and the termination of its Bio-Reference distribution agreement. For the three months ended September 30, 2017, revenues rose 5.1% to $56.7 million, with the net loss of $27.1 million. Liquidity tightened during the period. Cash and cash equivalents were $11.2 million and short-term investments were $135.0 million at September 30, 2017, against $50.1 million outstanding on the UBS Credit Line and a $73.2 million net carrying amount on the 2017 Term Loan with OrbiMed. The company drew $75.0 million on the OrbiMed loan in August 2017, which carries interest at 8.75% plus the higher of 1.00% or LIBOR and matures in August 2024, with an additional $25.0 million available through December 31, 2018. Net cash used in operating activities was $68.6 million for the nine months. Management stated that existing cash and marketable securities are sufficient for at least 12 months after November 8, 2017, but noted that the company will need to generate additional revenue and may need to raise more capital. The filing also details significant legal and regulatory exposure. Securities class actions tied to the July 2015 IPO are pending in San Mateo Superior Court, a patient lawsuit over a carrier screening test is set for trial in March 2018, and the company is responding to a Department of Justice civil investigative demand related to a qui tam action. Three third-party payers have demanded recoupment of alleged overpayments. The company also reported new product launches during 2017, including Evercord, Vistara, and Signatera (research use only), and stated that it expects reduced reimbursement for microdeletions testing in the near term.
Nov 9, 2017
2017-Q2
Natera Quarterly Report for Q2 Ended Jun 30, 2017
Natera, Inc. (NTRA) reported a net loss of $63.7 million for the six months ended June 30, 2017, compared with $31.8 million in the prior-year period, as total revenues declined to $100.5 million from $113.9 million. Product revenues fell to $98.2 million from $112.4 million, driven by lower average selling prices as insurance carriers moved from out-of-network to in-network contracts, while licensing and other revenues rose to $2.3 million. Loss from operations widened to $64.1 million, with selling, general and administrative expenses of $71.9 million and research and development of $24.4 million. Panorama, the company's non-invasive prenatal test, accounted for $64.3 million, or 64%, of six-month revenues. Liquidity is tight. At June 30, 2017, Natera held $7.1 million in cash and cash equivalents and $95.0 million in short-term investments, against $50.0 million drawn on a UBS credit line. Stockholders' equity fell to $50.9 million from $106.5 million at year-end 2016, and the accumulated deficit reached $409.5 million. Net cash used in operating activities was $38.1 million for the six months. Management states that existing cash and marketable securities will be sufficient for at least 12 months after August 9, 2017. Subsequent to the quarter, on August 8, 2017, the company entered into a senior secured term loan facility with an institutional investor. The facility has a maximum borrowing capacity of $100.0 million, with $75.0 million available at closing and $25.0 million available at the company's option through December 31, 2018, subject to a minimum net revenue condition. Interest accrues at 8.75% plus the higher of 1.00% or LIBOR, with interest-only payments and maturity in August 2024. The company will also issue 300,000 shares of common stock to the lender as a fee.
Aug 9, 2017
2017-Q1
Natera Quarterly Report for Q1 Ended Mar 31, 2017
Natera, Inc. reported a first-quarter 2017 net loss of $36.0 million on total revenues of $46.9 million, down from $61.9 million in the prior-year quarter. Management attributed the revenue decline primarily to lower average selling prices per test as insurance carriers transitioned from out-of-network to in-network contracts. Product revenues fell 24.9% to $45.9 million, Panorama revenues declined $7.2 million, and HCS revenues declined $7.2 million, while operating expenses rose, with research and development up 44.4% and selling, general and administrative expenses up 23.6%. Loss from operations widened to $37.0 million from $9.6 million. The balance sheet shows $9.1 million in cash and cash equivalents and $106.7 million in short-term investments at March 31, 2017, against $49.8 million of outstanding debt with accrued interest under a UBS credit line. Stockholders' equity declined to $73.7 million from $106.5 million at year-end 2016, and the accumulated deficit reached $381.8 million. Operating cash outflow was $24.3 million for the quarter. The company states that its existing cash and marketable securities will be sufficient to meet anticipated cash requirements for at least 12 months after May 9, 2017, while noting it may raise additional equity or debt financing. The filing highlights continuing dependence on Panorama, which accounted for 67% of revenues, and on reimbursement for average-risk pregnancies and microdeletions screening, where the company reports low reimbursement rates under a new CPT code. Other risk areas include sole-source suppliers (Illumina and Streck), a Department of Justice civil investigative demand related to a qui tam action, and securities class action lawsuits tied to the IPO.
May 10, 2017
2016-Q3
Natera Quarterly Report for Q3 Ended Sep 30, 2016
Natera, Inc. reported a net loss of $26.0 million for the three months ended September 30, 2016 (versus $17.6 million a year earlier) and $57.9 million for the nine months (versus $47.3 million). Total revenues were $53.9 million for the quarter, up from $44.9 million, and $167.8 million for the nine months, up from $137.4 million. Panorama, the company's non-invasive prenatal test, accounted for $108.7 million, or 65%, of nine-month revenues. The company accessioned more than 318,000 tests in the nine months, including more than 247,000 Panorama tests, and cites a rising share of revenue from its U.S. direct sales force. The balance sheet shows cash and cash equivalents of $25.3 million and short-term investments of $157.7 million at September 30, 2016, against $49.5 million of short-term debt drawn on a UBS credit line. Stockholders' equity fell to $140.3 million from $184.8 million at year-end 2015, and the accumulated deficit reached $307.9 million. Management states that existing cash and marketable securities should be sufficient for at least the next 12 months, while acknowledging that it may raise additional equity. The filing also highlights several risks: reimbursement for Panorama in the average-risk population and for microdeletions screening remains limited, a new microdeletions CPT code effective January 1, 2017 may reduce reimbursement, sole-source dependence on Illumina and Streck, a potential FDA regulatory shift for laboratory-developed tests, and pending securities class actions tied to the July 2015 IPO. The company also disclosed a new lease for approximately 48,000 square feet of office space in California, with a base rent of $60,730 per month for the first phase.
Nov 14, 2016
2016-Q2
Natera Quarterly Report for Q2 Ended Jun 30, 2016
Natera, Inc. (NTRA) reported a net loss of $31.8 million for the six months ended June 30, 2016, compared with $29.7 million in the prior-year period, on total revenues of $113.9 million, up from $92.5 million. For the three months ended June 30, 2016, total revenues were $52.0 million against a net loss of $23.2 million. Panorama, the company's non-invasive prenatal test, accounted for $70.7 million, or 62%, of six-month revenues, down from 76% a year earlier, while Horizon carrier screening revenue grew $21.7 million over the period. Cost of product revenues rose to 55.6% of total revenues for the six months, and the company says it expects further reductions in average reimbursement per test as it moves in-network with payers. As of June 30, 2016, Natera held $16.6 million in cash and cash equivalents and $198.6 million in short-term investments, against $49.3 million of short-term debt under a UBS credit line, which was secured by its investment account. Management states that existing cash and marketable securities are sufficient for at least the next 12 months, but it may raise additional equity. The accumulated deficit reached $281.9 million, and stockholders' equity declined to $163.8 million from $184.8 million at December 31, 2015. The filing also highlights litigation and regulatory exposure. Securities class actions tied to the July 2015 IPO remain pending in state court and have been removed to federal court, and a Sequenom patent dispute ended when the Supreme Court denied certiorari on June 27, 2016. The company notes that most third-party payers have negative coverage for average-risk pregnancies, that its FDA regulatory status for Constellation software remains under discussion, and that its sole sequencer supplier is Illumina, which also owns competitor Verinata.
Aug 11, 2016
2016-Q1
Natera Quarterly Report for Q1 Ended Mar 31, 2016
Natera, Inc. reported a net loss of $8.7 million for the three months ended March 31, 2016, compared with a net loss of $10.0 million in the same period of 2015. Total revenues rose to $61.9 million from $47.4 million, a 30.5% increase. Product revenues were $61.1 million, and Panorama accounted for $38.6 million, or 62%, of revenues. Growth was driven mainly by higher Panorama and Horizon carrier screening volumes. Operating expenses grew, with selling, general and administrative expenses at $30.4 million and cost of product revenues at $32.3 million. Accumulated deficit reached $258.8 million at March 31, 2016. The balance sheet showed $34.0 million of cash and cash equivalents and $196.6 million of short-term investments at quarter end. Against these, the company carried $42.2 million of short-term debt under a $50.0 million UBS credit line. Operating cash flow was slightly positive at $0.5 million for the quarter. Management stated that existing cash and marketable securities should be sufficient to meet requirements for at least the next 12 months, while noting that additional capital may be sought. The filing also highlights material risks. Most third-party payers currently have negative coverage determinations for Panorama in the average-risk pregnancy population, and reimbursement for microdeletions screening is limited. The company faces several lawsuits, including four purported securities class actions related to its July 2015 IPO, and an ongoing patent dispute with Sequenom. Illumina is the sole supplier of sequencers and reagents for Panorama. The company also has ongoing FDA discussions regarding the regulatory status of its Constellation software.
May 13, 2016
2015-Q3
Natera Quarterly Report for Q3 Ended Sep 30, 2015
Natera, Inc. filed this Form 10-Q for the quarter ended September 30, 2015, its first quarterly report after its July 2015 IPO. The company reported total revenues of $44.9 million for the three months and $137.4 million for the nine months ended September 30, 2015, versus $46.3 million and $109.4 million a year earlier. Product revenue for the quarter was $44.4 million, down 3.0% year over year, which the company attributed mainly to new CPT codes effective January 2015 that reduced the average selling price of Panorama. Net loss widened to $17.6 million for the quarter and $47.3 million for the nine months, compared with net income of $3.7 million and a net loss of $6.4 million a year earlier. Cost of product revenues rose to 67.8% of total revenues in the quarter, from 45.0% a year earlier, and selling, general and administrative expense increased 71.0%. The balance sheet strengthened substantially. Cash and cash equivalents rose to $196.2 million at September 30, 2015, from $87.2 million at year-end 2014, and total stockholders' equity moved to $206.1 million from a deficit of $171.3 million. The IPO sold 10.9 million shares at $18.00, raising $178.5 million net, and about 31.4 million preferred shares converted to common stock. The company also repaid its equipment financing facility in September 2015 and, after the quarter, borrowed $32.0 million under a new $50.0 million UBS credit line to prepay its $20.0 million senior secured term loan with ROS Acquisition LP. Management stated that existing cash and expected operating cash flow should be sufficient for at least the next 12 months. The filing identifies Panorama, the company's non-invasive prenatal test, as the source of most revenue, with Panorama accounting for 76% of revenue in the quarter. Risk disclosures highlight dependence on Panorama, the loss of two large laboratory partners in 2014, reimbursement limited mainly to high-risk pregnancies, sole-source supply from Illumina for sequencers, and ongoing patent litigation with Sequenom. The company also discloses a pending FDA review of laboratory-developed tests and a shift toward a cloud-based distribution model that management expects to lower revenue per test.
Nov 13, 2015
2015-Q2
Natera Quarterly Report for Q2 Ended Jun 30, 2015
Natera, Inc. filed this Form 10-Q for the quarter ended June 30, 2015, covering its first quarter-end report after its July 2015 IPO. For the six months ended June 30, 2015, total revenues were $92.5 million, up from $63.1 million a year earlier, driven mainly by Panorama, its non-invasive prenatal test, which accounted for $70.3 million, or 76% of revenues. Net loss widened to $29.7 million from $10.1 million, reflecting higher selling, general and administrative expenses ($51.3 million vs. $28.3 million), a $3.9 million warrant fair value loss, and a $2.1 million term loan fair value charge. Cash fell to $62.2 million at June 30, 2015 from $87.2 million at December 31, 2014, with $15.9 million used in operating activities during the six months. Stockholders' deficit stood at $197.8 million, with convertible preferred stock of $240.6 million that converted to common stock at the IPO. The filing states that the IPO of 10,900,000 shares at $18.00 per share raised approximately $178.5 million in net proceeds after underwriting discounts and offering expenses, with the over-allotment exercised in August 2015. The company describes a transition toward a direct U.S. sales force, which accounted for 78% of revenues for the six months ended June 30, 2015, up from 43% a year earlier, while U.S. laboratory partner revenue fell to 8% from 42%. Management states that existing cash and anticipated operating cash flows are sufficient for at least the next 12 months. Key risks highlighted include reliance on Panorama, sole-source dependence on Illumina for sequencers under a supply agreement expiring in August 2016, pending patent litigation with Sequenom (with the Federal Circuit affirming invalidity of certain claims on June 12, 2015), a payer overpayment claim of $1.88 million settled for $1.18 million, and uncertainty around FDA regulation of laboratory-developed tests.
Aug 13, 2015