From:
`To:
`Subject:
`Date:
`Attachments:
`
`John West
`Richard Chen; Carol Tillis; Christian Haudenschild
`Draft Board slides for your comments
`Monday, June 11, 2012 10:20:24 PM
`CEO Overview 12Jun2012 v1.ppt
`
`Rich, Carol, Christian,
`
`I am attaching my Board slides as a draft. Please look through them if you get a chance,
`particularly the ones related to Complete Genomics.
`
`Thanks,
`
`John
`
`Personalis EX2063
`
`
`To:
`Subject:
`Date:
`Attachments:
`
`John West
`Richard Chen; Carol Tillis; Christian Haudenschild
`Draft Board slides for your comments
`Monday, June 11, 2012 10:20:24 PM
`CEO Overview 12Jun2012 v1.ppt
`
`Rich, Carol, Christian,
`
`I am attaching my Board slides as a draft. Please look through them if you get a chance,
`particularly the ones related to Complete Genomics.
`
`Thanks,
`
`John
`
`Personalis EX2063
`
`
`
`Personalis, Inc.
`
`CEO Overview
`Board of Directors Meeting
`June 12, 2012
`
`Personalis Confidential June 12, 2012
`
`1
`
`Personalis EX2063
`
`
`
`CEO Overview
`
`• Company retains focus on product for 1st revenue in 2012
`– Rich to present R&D planning & progress
`5/31 ending cash above budget (Carol to review financials)
`•
`• Started move to new office & temporary lab (Carol to review)
`• Completed IRB approval & contract with Stanford for Super-centenarian
`project, a model for future collaborations (Rich to review)
`• Two new hires for June:
`– 1 Stanford bioinformaticist
`– 1 Illumina molecular biologist
`• Publications & public presentations
`• Personalis laboratory strategy (Capital Equipment purchase to approve)
`– Christian to present plans for Operations group
`– Includes development of CLIA / CAP, in parallel with RUO
`• Strategy option re: Complete Genomics
`
`Personalis Confidential June 12, 2012
`
`2
`
`Personalis EX2063
`
`
`
`Publications & Upcoming Presentations
`
`•
`
`•
`
`JW invited to speak at CHI “The Clinical Genome” meeting
`– June 13, San Francisco
`
`JW invited to speak at Institute of Medicine meeting
`– Washington, DC, July 17
`
`Published with
`Univ. Texas,
`Southwest
`Medical Center.
`Based on work
`prior to joining
`Personalis.
`
`Personalis Confidential June 12, 2012
`
`3
`
`Personalis EX2063
`
`
`
`CEPH 1463 Pedigree
`
`Dr. Craig
`Venter
`
`Personalis Gold Standard
`Genomes Project
`
`CEPH1463 3-generation pedigree
`with 17 people, already sequenced
`by Complete Genomics
`
`Genome of Craig Venter, only “gold
`standard” (Sanger) genome ever
`
`DNA received & transferred to
`anonymizing containers in
`Personalis temporary lab space
`
`Illumina turn around 12 weeks, DNA
`has passed their incoming QC
`
`Complete Genomics turn around
`time initially 16 weeks, potentially
`declining since their downsizing
`announcement
`
`Personalis Confidential June 12, 2012
`
`4
`
`Personalis EX2063
`
`
`
`Illumina’s service offering is less
`flexible than originally thought:
`
`Whole genome only (no exome)
`Only 2 x 100 reads on 300 base
`fragments
`30x, 60x or 90x
`
`Long term they could decide to be
`more flexible, but they just shut down
`their Hayward lab, which
`accommodated some semi-
`customization
`
`This provides more near-term
`opportunity to offer improvements,
`initially based on straightforward
`operational parameters, then
`increasingly based on Personalis
`proprietary content
`
`Personalis Confidential June 12, 2012
`
`5
`
`Personalis EX2063
`
`
`
`Potential structure for Personalis’
`Clinical Genome Sequencing (RUO)
`• Competitive offerings (ILMN, GNOM) are based on single insert-length
`paired end sequencing, just with 2x more coverage (e.g. 60-80x vs 30-40x)
`• Potential Personalis offering, 3 “Layers”:
`– Outsourced base:
`•
`30x at standard (300bp) paired-end insert lengths (2 x 100-150)
`•
`Provides sufficient coverage for most SNP detection, at low cost
`– Mid-tier, in house:
`•
`3-10x each at 600 & 1200 bp paired-end lengths
`•
`Key for addressing alignment degeneracy
`• May be optimized by content-driven pullout
`– Top tier, in house:
`•
`Specialty assays including:
`•
`Longer reads (e.g. 2 x 250-400)
`•
`Very long insert paired-ends
`• Target positioning:
`– Higher accuracy, even before the data interpretation
`– Priced at a premium but not in the stratosphere
`– BMW, not Lamborghini
`
`Personalis Confidential June 12, 2012
`
`6
`
`Personalis EX2063
`
`
`
`600-700 G-bases / run at 2x100
`5 genomes at 30x for $20k reagents
`Approx $30 / G-base
`11-12 days / run
`Should reach 1T-base/run by YE 2012
`
`6-7 G-bases / run at 2 x 250
`1-2 days / run
`Approx $170 / G-base
`$600-$1,200 reagents / run
`
`Personalis uses:
`
`Personalis uses:
`
`Larger, semi-custom runs
`e.g. 10x on 1,200base paired-end inserts
`
`Specialty focused assays & the
`longest read lengths
`
`Starting customer projects faster
`
`Screening libraries for the HiSeq
`
`
`Our Feb 2012 CapEx budget called for just the MiSeq (at $200k), since HiSeq was $750k.
`Illumina is now proposing both for $620k. This would be a good combination for us,
`accelerating the start of our “full-service” business. Requires Board approval.
`
`Personalis Confidential June 12, 2012
`
`7
`
`Personalis EX2063
`
`
`
`Complete Genomics
`
`Started June 2005 (late, relative to competitors 454, Solexa & SOLiD)
`•
`• CEO & much of management had little prior experience in life sciences (wireless)
`• Novel technology best suited to very large-scale, so focused on whole human
`genomes (currently < 5% of the DNA seq market, though projected to grow)
`• Complexity (esp sample prep & informatics) and late market entry, led to decision to
`offer only a service (traditionally < 5% channel for platform companies)
`Venture financed, 5 rounds, $147M
`•
`• Nasdaq IPO (GNOM) at $9 / share, after 1st significant revenue (Q3 2010, $4.2M)
`Follow-on private placement June 2011 at $12.50 / share
`•
`•
`APIC 3/31/2012 $295.8M
`• Undercut market leader Illumina: Prices dropped 70% in 15 months
`• Revenue peaked mid-2010, still 30x smaller than Illumina
`•
`Sample prep problems in factory closed lab in late 2010, now open but still struggling
`•
`Stock dropped 90% from mid-2010 peak
`• Cash graph extrapolates to zero at end of 2012.
`•
`Last week: Jeffries & Co (investment bankers) hired to identify “strategic alternatives”
`•
`Shareholder meeting June 22nd
`
`Personalis Confidential June 12, 2012
`
`8
`
`Personalis EX2063
`
`
`
`Key Competitor Comparison : Illumina
`Q1 2012 Revenue: $270M (> 65x larger)
`Gross margins > 66%
`
`Personalis Confidential June 12, 2012
`
`9
`
`Personalis EX2063
`
`
`
`IPO at
`$9.00
`Nov
`2010
`
`Q1 ‘10
`revenue
`peaks at
`$6.8M
`
`Private
`offering
`$12.50
`/share
`
`Peak
`stock
`price
`> $18.20
`
`Revenue
`drop &
`lab
`closed
`
`Bankers
`hired for
`strategic
`alternatives
`
`Close
`6/11/12
`$1.82
`/share
`
`Complete Genomics share price history (19 months, IPO to Present)
`
`Personalis Confidential June 12, 2012
`
`10
`
`Personalis EX2063
`
`
`
`Complete Genomics Assets of Potential
`Interest to Personalis
`• Experience sequencing (and access to the data of) > 4,000 human
`genomes, to high coverage
`• Experience with cancer genomes (a gap at Personalis)
`• Computing facility: 7,500 cores, 4 Petabytes ($10M investment)
`• Relatively advanced bioinformatics pipeline
`•
`IP : DNA nanoballs on a semiconductor grid, might be used with Solexa /
`Illumina biochemistry
`$27M backlog (some expected to evaporate, but probably not all)
`•
`• Tax-loss carry-forward: $231M
`• Nasdaq listing
`• Some commercial infrastructure
`• After laying off 55 last week, about 200 employees in Mountain View
`• Anticipate CLIA certification in 2012
`
`Personalis Confidential June 12, 2012
`
`11
`
`Personalis EX2063
`
`
`
`Personalis Assets of Potential Interest to
`Complete Genomics Shareholders
`• Far ahead regarding interpretation of human genome sequences
`• Personalis CEO :
`– Ran the DNA sequencing platform business which became #1
`– Raised $100M in Solexa public financings & has good relationships with numerous public
`investors
`– Reversed into a Nasdaq listed but troubled DNA sequencing company (Lynx) and made it
`part of the Solexa success (dropping Lynx sequencing chemistry but leveraging other Lynx
`experience & IP)
`– Sold Solexa at a major gain to shareholders (including Lynx’s)
`– Relationship with Illumina management
`• Personalis academic Founders & several ex-Stanford employees:
`– Have good working relationships with Complete
`– Could bring additional scientific & medical genomics credibility
`Investors with the potential to support a plan, if solid
`•
`• Personalis could be a real “strategic alternative” (vs the usual investment
`banking meaning of this phrase)
`
`Personalis Confidential June 12, 2012
`
`12
`
`Personalis EX2063
`
`
`
`Potential Business Approach
`
`• Reverse Personalis into Complete to become a Nasdaq-listed company
`• Structure to maintain (most of ?) the tax loss carry forward
`• Replace much of Complete’s management, including CEO, but retain key
`customer interfaces with deep life sciences background
`• Negotiate an end to IP litigation with Illumina, potentially including an
`investment by Illumina and some cross licensing
`• Discontinue use of Complete’s sequencing biochemistry, but look at use of
`Illumina biochemistry on Complete’s DNA nanoballs (“hybrid”) and/or just
`move to HiSeq’s
`• Stop development of sequencing instruments, biochemistry and related
`informatics at Complete. Cut other costs, including office space excess
`• Convert backlog to Illumina platform or the Illumina / Complete “hybrid”
`• Focus the company on medical genome sequencing, combining Personalis
`non-cancer expertise with Complete’s cancer genome experience & deep
`genome data set. Position for premium pricing.
`• Finance the company & achieve liquidity for Personalis investors
`
`Personalis Confidential June 12, 2012
`
`13
`
`Personalis EX2063
`
`
`
`Personalis Confidential June 12, 2012
`
`14
`
`Personalis EX2063
`
`
`
`Next : VP Finance report
`
`Personalis Confidential June 12, 2012
`
`15
`
`Personalis EX2063
`
`
Accessing this document will incur an additional charge of $.
After purchase, you can access this document again without charge.
Accept $ Charge
Still Working On It
This document is taking longer than usual to download. This can happen if we need to contact the court directly to obtain the document and their servers are running slowly.
Give it another minute or two to complete, and then try the refresh button.
A few More Minutes ... Still Working
It can take up to 5 minutes for us to download a document if the court servers are running slowly.
Thank you for your continued patience.
This document could not be displayed.
We could not find this document within its docket. Please go back to the docket page and check the link. If that does not work, go back to the docket and refresh it to pull the newest information.
Your account does not support viewing this document.
You need a Paid Account to view this document. Click here to change your account type.
Your account does not support viewing this document.
Set your membership
status to view this document.
With a Docket Alarm membership, you'll
get a whole lot more, including:
- Up-to-date information for this case.
- Email alerts whenever there is an update.
- Full text search for other cases.
- Get email alerts whenever a new case matches your search.
One Moment Please
The filing “” is large (MB) and is being downloaded.
Please refresh this page in a few minutes to see if the filing has been downloaded. The filing will also be emailed to you when the download completes.
Your document is on its way!
If you do not receive the document in five minutes, contact support at support@docketalarm.com.
Sealed Document
We are unable to display this document, it may be under a court ordered seal.
If you have proper credentials to access the file, you may proceed directly to the court's system using your government issued username and password.
Access Government Site
