Diagnostics: June Jobs Data and Key Takeaways for BLLN, WGS and GH

Research evidence excerpt

Diagnostics: June Jobs Data and Key Takeaways for BLLN, WGS and GH

competitor innovation (i.e., NTRA's Fetal Focus, Source: Company filings, LinkUp, Jefferies estimate

MYGN's FirstGene).

Exhibit 3 - GH: ADLs Down 68% y/y, Bucking

the Hiring Seasonality Trend

1,500%GeneDx (WGS, Buy). Continuing trends from 1Q, ADLs moved lower in 2Q, troughing at eight in April 60%

1,300%

50%

1,100%before rebounding to ten and sixteen in May and June (overall -17% y/y for the quarter). We think 40% 900%

Growth 30% 700% Growth

Listingsthis is a reflection of the company's refined focus on the core business (rather than TAM expanders Sales 20% 500%300%

100%

(100%)like general pediatrics) for the time being, with small batches of new hires stemming from recent 10%0% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26

Sales Growth Average Daily Listings Growthcommercial unlocks (i.e., taking California rep count from five to fifteen following Medi-Cal). .

Source: Company filings, LinkUp, Jefferies estimate

Guardant Health (GH, Buy). S&M ADLs fell from 111 in 1Q to 44 in 2Q, a contrast from years prior

when 2Q was a stronger quarter for listings (average = 66 ADLs in five years prior), as 1H average

listings of 78 were relatively in line with our estimate of 75 (here). That said, we think it makes sense

for this perceived slowdown in hiring given the recency of the Quest distribution partnership for

Shield, which raises other unknown variables beyond GH's internal rep productivity. Furthermore,

we view many of the recent catalysts (FDA approval for G360 Liquid/paving the way for ADLT in

'27, Shield ACS guidelines, Shield's commercial coverage by UnitedHealth Group) as drivers to the

upside that do not necessitate incremental hires.