John West
`Carol Tillis
`Eliane Sousa; Richard Chen; Christian Haudenschild
`JW Board slides for printing
`Wednesday, July 18, 2012 11:54:46 AM
`CEO Overview JW 18July2012.ppt
`
`From:
`To:
`Cc:
`Subject:
`Date:
`Attachments:
`
`Hi Carol,
`
`My slides are attached. You will see I have focused on the model underlying the revenue of
`the budget, which should lead into your presentation.
`This version can be printed for the Board books.
`I will be leaving Cupertino in a few minutes and will see you soon.
`
`John West
`
`Personalis EX2071
`
`
`Carol Tillis
`Eliane Sousa; Richard Chen; Christian Haudenschild
`JW Board slides for printing
`Wednesday, July 18, 2012 11:54:46 AM
`CEO Overview JW 18July2012.ppt
`
`From:
`To:
`Cc:
`Subject:
`Date:
`Attachments:
`
`Hi Carol,
`
`My slides are attached. You will see I have focused on the model underlying the revenue of
`the budget, which should lead into your presentation.
`This version can be printed for the Board books.
`I will be leaving Cupertino in a few minutes and will see you soon.
`
`John West
`
`Personalis EX2071
`
`
`
`Personalis Board of Directors Meeting
`CEO Overview
`
`John West
`July 18, 2012
`
`Personalis Confidential 7/18/2012
`
`1
`
`Personalis EX2071
`
`
`
`Personalis Overview
`
`• Executing as planned, perhaps a little slower than we would like
`• Hiring competitive, but hires are almost to our “slow” budget of 2/month
`• Cash at 6/30 $400k above budget
`•
`Internal testing of Pipeline product : early but encouraging (Rich to discuss)
`• All staff moved to new office (great job by Carol):
`– New server room is a big help
`– New labs on schedule for end of July
`• Sequencers delivered (Hi-Seq & Mi-Seq)
`– Mi-Seq passed qualification run, starting to explore accuracy improvement assays
`– Hi-Seq install requires stable permanent location for optical alignment (Aug, in our new lab)
`Invited presentations :
`– Clinical Genomes meeting in San Francisco
`– Institute of Medicine in Washington DC
`– FDA rep requested our participation in an August meeting
`• Complete Genomics update (financing, long fragment read, staffing, IP)
`• ONT & Life / Ion Proton updates
`• Focus today on budget
`Personalis Confidential 7/18/2012
`
`•
`
`2
`
`Personalis EX2071
`
`
`
`Budget Guidance
`
`• Keep headcount growth to approx. “slow” plan of our Feb 2012 budget
`– Has been mostly R&D, now transition to 50% commercial & IP
`– Growth to continue in 2013, but most is contingent on revenue ramp
`
`• Market model revisited from July 26, 2011 (most recent version):
`– Worldwide capacity to sequence > 2x our mid-2011 estimate
`• Much faster adoption of Hi-Seq instrument
`• Significantly faster ramp in Hi-Seq data delivered per run
`• Much more sustained use of exomes
`• Cancer a larger share of whole genome than mid-2011 projection
`• Modest offset: Service business moderately below forecast & ILMN
`much higher market share
`• Focus on costs through 2012.
`• Revisit 2013, particularly revenue plan, in December for 2013 budget
`
`Personalis Confidential 7/18/2012
`
`3
`
`Personalis EX2071
`
`
`
`Revenue Plan
`Also vs 7/26/2011 Plan – Our most recent
`
`• Personalis plan changed to begin with Pipeline product vs comprehensive
`genome interpretation:
`– 100% research market, but accuracy a key requirement for clinical
`products
`– Headline application, Case / Control studies, inherently require larger
`#’s of genomes
`
`•
`
`Lab as an expanding part of our plan:
`– Direct relationship with the customer
`– Position towards whole-genome molecular diagnostics, vs “a
`bioinformatics company”
`– Opportunity to implement our IP in physical assays
`– Capture margin of the assay by leveraging our informatics
`
`Personalis Confidential 7/18/2012
`
`4
`
`Personalis EX2071
`
`
`
`Revenue Planning
`
`• Multiple assay scales:
`– Whole genome + Personalis “Exome-plus”
`– Just Personalis “Exome-plus”
`– Just a “standard” Exome
`– User provides data
`• Revenue Components:
`– Whole genome is 3rd party pass-through, so not in revenue or COGS
`– Base of in-house capacity to generate exomes with/without Personalis content &
`Personalis Pipeline analysis (linearly scalable with moderate CapEx)
`– Professional services overlay for Rare-Variant-Discovery-Service and Genome-
`Interpretation-Service products (Experience curve & automation are key to
`scalability)
`• Customer interaction model:
`– Pipeline : Case vs Control, chunks of 48 genomes, > $100k / transaction
`– RVDS & GIS : Genomes typically in trio or solo units, but customer relationship is
`to establish a flow, which we aggregate into 48-genome chunks internally
`
`Personalis Confidential 7/18/2012
`
`5
`
`Personalis EX2071
`
`
`
`Pricing Ranges of Components in Current Model
`
`• Whole genome sequencing (pass-through) :
`– 20 units, research only, 30x coverage : $3,400 mid-2012
`– Price of reagents alone to Personalis : $4,000 – Non-competitive
`– Multiple premium offerings seeking higher unit pricing:
`• 60x coverage : $6,100
`• CLIA single unit : $ 7,500 – 9,500
`• Rapid turn-around : $ 9,500
`• Exomes :
`– Not offered by Illumina or Complete Genomics
`– Multiple services, e.g. BGI : $1,800 – Prices firming
`– Personalis standard exome with Pipeline analysis : $2,500 / unit (Quantity 48)
`– Personalis “Exome-plus” with Pipeline analysis : $3,500 / unit (Quantity 48)
`• Professional services:
`– Unit = 8 hours genetic counselor + 1 hour MD : $3,500
`
`Personalis Confidential 7/18/2012
`
`6
`
`Personalis EX2071
`
`
`
`Example Pricing, Combining Components
`
`• Case / Control research service:
`– 24 cases + 24 controls
`– Personalis “Exome-Plus” with Pipeline Analysis only
`– 48 x $3,500 = $168k / project
`
`• Rare Variant Discovery Service:
`– Unit is for one trio (parents + child) but contract sought is for flow (N trios per time period)
`– 3 x “Exome-Plus” with 1 day RUO Professional Services
`– (3 x $3,500) + $3,500 = $14,000 (i.e. above Ambry)
`
`• Premium Genome Interpretation Service:
`– Unit is for one genome, but contract sought is for a flow
`– Pass-through Illumina 30x genome + Personalis “Exome-plus” + 2 days Professional
`Services
`– $ 3,400 + $3,500 + $7,000 = $13,900 ($10,500 is recognized as Personalis revenue)
`– Multiple price points with different combinations of components, to address differing customer
`needs & compete
`
`Personalis Confidential 7/18/2012
`
`7
`
`Personalis EX2071
`
`
`
`Top Level Revenue Breakdown by Product
`
`One product intro / quarter
`RVDS & GIS (35% of 2013 plan) could slip, depending on Pipeline feedback
`
`Personalis Confidential 7/18/2012
`
`8
`
`Personalis EX2071
`
`
`
`Personalis Confidential 7/18/2012
`
`9
`
`Personalis EX2071
`
`
`
`Comparison of Revenue Model vs 1 Year Ago:
`
`Approx. 3 month delay in getting the company started
`
`Pipeline as initial product vs full genome interpretation
`
`
`Larger individual projects (e.g. 24 cases & 24 controls)
`
`
`Initial linear ramp (capacity) vs exponential (experience curve)
`Company spending also slower (see next slide for comparison)
`Personalis Confidential 7/18/2012
`10
`
`Personalis EX2071
`
`
`
`Once the curves are normalized to cumulative cash used, they are fairly similar
`
`Personalis Confidential 7/18/2012
`
`11
`
`Personalis EX2071
`
`
`
`Discussion & Transition to Finance Presentation
`
`Personalis Confidential 7/18/2012
`
`12
`
`Personalis EX2071
`
`
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