`Carol Tillis
`Eliane Sousa; Richard Chen; Christian Haudenschild
`Board slides from John West, ready to print
`Thursday, November 1, 2012 7:32:01 AM
`CEO Overview 16x9 1Nov2012 v2.pptx
`
`From:
`To:
`Cc:
`Subject:
`Date:
`Attachments:
`
`Hi Carol,
`
`I have 11 slides, attached.
`They are ready to print. Hopefully that's not a problem with the 16x9 format.
`
`Thanks,
`
`John
`
`Personalis EX2099
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`
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`CEO Overview
`
`John West
`
`Personalis, Inc. Board Meeting
`November 1, 2012
`
`© Personalis Inc. All Rights Reserved. COMPANY CONFIDENTIAL.
`
`Personalis EX2099
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`
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`Agenda
`
`• Brief review of the company plan & where we are along it
`• Plans for commercial organization
`• Updates:
` Finance
` Expenditure approvals for recruitment & lab CapEx
` Operations
` Focus on early customers & pipeline
` R&D
`
`© Personalis Inc. All Rights Reserved. COMPANY CONFIDENTIAL.
`
`2
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`Personalis EX2099
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`Key Intellectual Property & IP Potential Behind the Company
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`• Licensed from Stanford:
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`•
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`IP Potential from Founders & Team:
`
` Databases (Source Lab) :
` PharmGKB
`(Russ Altman)
` VariMed
`(Atul Butte)
` MendelDB
`(Euan Ashley)
` Regulome
`(Mike Snyder)
`
` Patent Applications :
` Key accuracy IP - Improving allele
`choices in the human reference sequence
`
` Copyrights & Trademark :
` Aligned with the above
`
` Russ Altman - Pharmacogenomics
` Atul Butte
`- Complex diseases
` Euan Ashley - Mendelian diseases
` Mike Snyder - Gene regulation
`
`- Sequencing technology
`John West
`- Family sequencing
`- Sequencing accuracy
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`© Personalis Inc. All Rights Reserved. COMPANY CONFIDENTIAL.
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`3
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`Personalis EX2099
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`Two Complementary Target Markets
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`• Medical Research
`> 100k genomes / exomes / yr already
` Capacity growth: > 40% / year
`Total spending today on medically-
`related sequencing approx. $1B / year
`20-30% may be accessible with
`Personalis IP
` No regulatory or reimbursement barriers
`to market
`Technology needs refinement, validation
`& credibility from the research market,
`for clinical transition
`Build revenue & transition to profitability
`here first
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`• Clinical Diagnostics
`Long-term, a much larger market
`> 2,000 tests routinely reimbursed now,
`based on prior generation DNA
`sequencing technology
` Mendelian disease applications normal
`Pharmacogenomics building acceptance
`Pathologists press to “own” this wave
` Regulatory, reimbursement and
`adoption hurdles for new tests
`Potential for future diagnostics is a
`major motivator for current research
`funding
`Start early but spend modestly by
`leveraging work already being done for
`the research market
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`© Personalis Inc. All Rights Reserved. COMPANY CONFIDENTIAL.
`
`4
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`Personalis EX2099
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`Business Model Choice to Commercialize Our IP
`
`• Bioinformatics
` Competing with culture of free
`exchange, government subsidized
` Can’t fully address the issues of
`data accuracy
` Outsourced data generation
`currently very slow (3-9 months !)
` Doesn’t fit accepted clinical
`diagnostics model
`
`• Lab assay + Analysis
` Specialty sample preps implement our
`IP & link to algorithms
` Fully address the issue of sequencing
`accuracy
` Combination may offer patent
`protection advantages
` Control turnaround time
` Challenges in CapEx, margins,
`utilization, obsolescence, scalability
` This is our primary choice, though we
`will work with just data if the customer
`already has it or we can’t realistically
`generate it (large # whole genomes)
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`© Personalis Inc. All Rights Reserved. COMPANY CONFIDENTIAL.
`
`5
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`Personalis EX2099
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`Service vs Product Business Model Choice
`Typical factors are technical complexity & lumpiness vs IP concern with outsourcing
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`• Medical Research
`>60% of research sequencing is
`done by service organizations:
`Primarily internal core labs and
`Genome Centers
`Nominally non-profit
`Sometimes subsidized
` Next gen sequencing has sprouted
`service businesses in both
`sequencing and informatics
` Personalis initial research market
`offering is a service:
`
`From DNA to analysis
`
`• Clinical Diagnostics
` A centralized CLIA lab (service model)
`is the standard for “high-complexity”
`laboratory-developed clinical
`diagnostic tests (esp. genetics)
` CLIA is the only realistic regulatory
`path until sequencing instrument
`providers achieve FDA approval
` CLIA becoming a quality surrogate in
`research studies, esp pharma
` Personalis initial clinical strategy is a
`CLIA-lab diagnostic service:
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`From blood sample to
`report
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`© Personalis Inc. All Rights Reserved. COMPANY CONFIDENTIAL.
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`6
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`Personalis EX2099
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`Major steps planned in company development
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`• Research Market business:
` Establish operations (Hiring, office & labs, establish processes)
`Initial service products: “data analysis” with / without standard sequencing
`1st revenue
`Initial service products with IP leveraged as a lab assay
` Additional analysis products
` Revenue ramp to profitability
`• Clinical Diagnostic business
` CLIA / CAP accredited lab established (vanilla capabilities – a foundation)
`Initial clinical products, disease-area focused
` Comprehensive genome interpretation as a long-term goal
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`© Personalis Inc. All Rights Reserved. COMPANY CONFIDENTIAL.
`
`7
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`Personalis EX2099
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`Personalis at 12 months
`1st non-CEO full-time employee started Nov 1, 2011
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`• Research Market business:
` Establish operations (Hiring, office & labs, establish processes) Done
`Initial service products: “data analysis” with / without standard sequencing Beta
`1st revenue 2 customers, $870k, 1st “completion” by year-end
`Initial service products with IP leveraged as a lab assay In development
` Additional analysis products In development
` Revenue ramp to profitability 2013-2014
`• Clinical Diagnostic business
` CLIA / CAP accredited lab established (vanilla capabilities – a foundation) On track
`Initial clinical products, disease-area focused In definition
` Comprehensive genome interpretation as a long-term goal
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`© Personalis Inc. All Rights Reserved. COMPANY CONFIDENTIAL.
`
`8
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`Personalis EX2099
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`
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`Personalis at 12 months
`1st non-CEO full-time employee started Nov 1, 2011
`
`Approx. 1/3 of Series A has
`been spent; Series B is in
`planning for H1 2013
`
`• Research Market business:
` Establish operations (Hiring, office & labs, establish processes) Done
`Initial service products: “data analysis” with / without standard sequencing Beta
`1st revenue 2 customers, $870k, 1st “completion” by year-end
`Initial service products with IP leveraged as a lab assay In development
` Additional analysis products In development
` Revenue ramp to profitability 2013-2014
`• Clinical Diagnostic business
` CLIA / CAP accredited lab established (vanilla capabilities – a foundation) On track
`Initial clinical products, disease-area focused In definition
` Comprehensive genome interpretation as a long-term goal
`
`
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`© Personalis Inc. All Rights Reserved. COMPANY CONFIDENTIAL.
`
`9
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`Personalis EX2099
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`Draft Commercial Organization
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`© Personalis Inc. All Rights Reserved. COMPANY CONFIDENTIAL.
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`10
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`Personalis EX2099
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`Transition to Finance Update
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`© Personalis Inc. All Rights Reserved. COMPANY CONFIDENTIAL.
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`11
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`Personalis EX2099
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`