| Issuer Free Writing Prospectus Filed pursuant to Rule 433 Registration No. 333-189117 July 29, 2013 |
CANCER GENETICS
Empowering Personalized Cancer Treatment
EMPOWERING
PERSONALIZED
CANCER
TREATMENT
July 29, 2013
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Forward-Looking Statement
All statements pertaining to future financial and/or operating results, future growth in research, technology, clinical development, and potential opportunities for Cancer Genetics, Inc. (The Company) products and services, along with other statements about the future expectations, beliefs, goals, plans, or prospects expressed by management constitute forward-looking statements.
Any statements that are not historical fact (including, but not limited, to statements that contain words such as “will,” “believes,” “plans,” “anticipates,” “expects,” “estimates”) should also be considered to be forward-looking statements.
Forward-looking statements involve risks and uncertainties, including, without limitation, risks inherent in the development and/or commercialization of potential products, uncertainty in the results of clinical trials or regulatory approvals, need and ability to obtain future capital, and maintenance of intellectual property rights and other risks discussed in the Company’s registration statement on Form S-1 and other reports filed with the Securities and Exchange Commission which is available for review at www.sec.gov.
Actual results may differ materially from the results anticipated in these forward-looking statements and as such should be evaluated together with the many uncertainties that affect the Company’s business.
The Company disclaims any intent or obligation to update these forward-looking statements.
2013 Cancer Genetics, Inc. | OTCQB: CGIX | 2
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Free Writing Prospectus Statement
This presentation highlights basic information about us and the offering. Because it is a summary, it does not contain all of the information that you should consider before investing.
We have filed a registration statement (including a preliminary prospectus) with the SEC for the offering to which this presentation relates. The registration statement has not yet become effective. Before you invest, you should read the preliminary prospectus in the registration statement (including the risk factors described therein) and other documents we have filed with the SEC for more complete information about us and the offering.
You may get these documents for free by visiting EDGAR on the SEC Web site at http://sec.gov. The preliminary prospectus, dated July 25, 2013, is available on the SEC Web site at http://www.sec.gov. Alternatively, we or any underwriter participating in the offering will arrange to send you the prospectus if you contact Aegis Capital Corp., Prospectus Department, 810 Seventh Avenue, 18th Floor, New York, NY 10019, telephone: 212-813-1010, e-mail: prospectus@aegiscap.com.
2013 Cancer Genetics, Inc. | OTCQB: CGIX | 3
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Offering Summary
Issuer Cancer Genetics, Inc. (CGIX)
Exchange OTCQB / CGIX — applying to NASDAQ concurrent with offering
Offering Size $15,000,000
Over-Allotment 15%
Fully Diluted Shares Outstanding* 6,750,778 (includes 2.4 million outstanding warrants and options)
Use of Proceeds Sales and Marketing Expansion
Mayo Clinic Joint Venture
Product Commercialization
Retire Mezzanine Financing
Continued R&D
General Working Capital
Sole Book-Runner Aegis Capital Corp
Lead Co-Manager Feltl & Company
* Share numbers are post offering and reflect 507,610 options outstanding with an average exercise price of $7.61 and 1,926,477 warrants with an average exercise price of $12.15. Calculation assumes offering share price of $11.60.
2013 Cancer Genetics, Inc. | OTCQB: CGIX | 4
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Growth-Stage, Oncology-Focused, Personalized-Diagnostics Company
Established multi-year track record of top-line growth with improving margins
Hybrid business model providing proprietary genomic products, clinical cancer testing and clinical trial services for biotechs and pharmas
Portfolio of commercially available, IP-protected, revenue-creating products: microarrays, DNA panels and probes
~50% revenue growth first half 2013 over first half 2012
Experienced management team, active board of directors, and committed, industry-leading scientific advisors
Category continues to experience significant price-to-sales multiples and premium acquisition valuations
Established collaborations and partnerships with world-class institutions including J.V. with Mayo Clinic: OncoSpire Genomics
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Molecular Diagnostics are Changing our Understanding of Cancer While Providing New Tools to Diagnose & Treat Patients
Our unique focus & approach supports the entire cancer care continuum
DIAGNOSIS PROGNOSIS THERANOSIS
Use genomics to provide an accurate and definitive typing of the cancer
Do I have cancer and what type?
Assist in patient outcome and disease management
What are my survival prospects?
Personalize therapeutic plan and treatment options
What drug(s) to give, how much, and when?
Integrated Molecular Diagnostic Testing Brings Benefits Across the Entire Oncology Ecosystem
PATIENTS Receive faster and more accurate diagnoses, as well as more personalized oncology care
PHYSICIANS Gain newer, more accurate tools to assess a patient’s cancer and develop an informed treatment plan
PAYORS Benefit from cost-savings when oncologists receive the right information the first time, and from increased treatment effectiveness
PHARMA See high value in personalized medicine – and targeted therapeutics require companion diagnostic tests
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CGI’s Mission is to Personalize and Improve the
Success Rate in Cancer Treatment
Traditional Approach Our Approach: Personalized Medicine
Traditional Approach
Phenotypic & Physical Examination
Morphologic & Pathological Analysis
Large & Multiple Specimens Required
Significant Delays to Treatment
25%
Success Rate
Our Approach: Personalized Medicine
Biomarkers and Companion Diagnostics
Genomic Analysis & Proprietary Algorithms
Reduced Size and Number of Specimens
Improved Diagnoses & Treatment Plans
100%
Target Success Rate
Situation Today Target For Tomorrow
Source: Clinical Trends in Molecular Medicine, Vol. 7, Issue 5
Integrating & Delivering Genomic Information About a Patient’s Cancer Can
Improve Care & Reduce Cost
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Unique, Scalable and Multifaceted Business Model
PROPRIETARY PRODUCTS
Proprietary molecular diagnostics & FISH probes Clinically validated IP-protected Sold globally Probe manufacturing leverages low-cost, high scale facility in India
CLINICAL SERVICES
Differentiated and complete disease-focused solutions Superior turnaround times World-class expertise in genomics and cytogenetics Serving community hospitals and labs through unique Expand Dx™ program
BIOPHARMA PARTNERSHIPS
Biomarker and companion diagnostic development World-class genomics and bioinformatics Drug-specific and cancer-specific assays Comprehensive focus in hematologic and urogenital cancers
Suite of Products and Services Provides Multiple Growth Drivers and Value to Multiple Parties: Clinical Community, Biopharma & Medtech
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Our Target Markets in Oncology Testing Comprise Over 610,000 New Lives Annually in the U.S.
Hematological:
Lymphoma, Leukemia, M. Myeloma
149,990
2013 Estimated New Cases
(U.S.)
Death Rate
36%
Urogenital:
Kidney, Bladder & Prostate
376,310
2013 Estimated New Cases
(U.S.)
Death Rate
16%
Gynecological:
Cervical, Endometrial & Ovarian
84,140
2013 Estimated New Cases
(U.S.)
Death Rate
31%
Source: American Cancer Society
*Does not include routine pap smear testing
5 Products Launched in Target Segments
Ability to Impact Over 610,000 New Lives Annually in the U.S.
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5 Proprietary Diagnostic Products
Commercially Launched & In Market
Research & Clinical Commercial Launch &
Clinical Collaboration &
Discovery Development Development Market Entry Validation Partners
MatBA®—Chronic & Small Lymphocytic Leukemia MatBA®—Diffuse Large B-Cell Lymphoma MatBA®—Mantle Cell Lymphoma
MatBA®—FL
MatBA®—MM
UroGenRA™—Kidney
UroGenRA™—Bladder
UroGenRA™-Prostate
FHACT™—Cervical*
FHACT™- Head *—Launched Outside U.S. As A Product
&Neck UGenRA™—Cervical UGenRA™—Endometrial UGenRA™—Ovarian
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Despite Improved Cancer Care, Case Numbers for Hematologic Cancers are Still Rising
Identified Leukemia & Lymphoma Subtypes Incidence & Survival Rates for NHLs
(US Only, per 100,000)
20.5 21.2
20.0 19.7
89 18.5
15.5
12.6
11.1
7.9 8.7 8.2
12 7.1 6.9 7.3
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5.6 6.2 |
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2 |
100 80 60 30 2 1975 1985 1995 2005
Number of Years Ago Incidence Rate Survival Rate
Source: Genzyme & Nature Source: National Cancer Institute, National Center for Health Statistics, SEER Dataset of Incidence & Mortality, FDA
Genomics-Based Tests like MatBA® are Critical and Improve the Management and Cost of Hematologic Cancers
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MatBA®-CLL/SLL Array-CGH Improves Risk Stratification & Outcome Prediction
Impact on therapy selection & FISH clinical management of CLL
(Current Method) (CGI Method) patients.
Favorable
38% of cases in our study have
Intermediate
38% a favorable prognosis falling Unfavorable under “watch & wait” approach.
Favorable/
Intermediate 85%
(no distinction) 39%
8% of cases with unfavorable 23% prognosis missed by FISH and 15% caught using MatBA®-CLL/SLL.
Genomic Aberrations Reported Genomic Aberrations Reported by FISH: by MatBA®-CLL/SLL:
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20 |
Validated in Collaboration w/ Dr. Kanti Rai & Dr. Nicholas Chiorazzi (NSLIJ); 2 Datasets, 322 specimens
Additional Validations being conducted w/ HUMC & Dana Farber; 2 Cohorts, 350+ specimens
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MatBA® Can Group Patients Into Risk Groups and Prognostication Classes
MatBA®- CLL / SLL is a diagnostic tool and Time to First Treatment (TTFT) prognostic indicator for patient stratification and improved patient management
Being actively used in clinical care, in clinical trials Free and in validation programs with Dana Farber, -MSKCC and HUMC
20 key genetic events/sites classify CLL patients as having the potential for Treatment P = 0.090
Poor outcome = High risk
Intermediate outcome = Intermediate risk P = 0.001 Good outcome = Low risk –
Proportion GOOD (n=74) – – INTERMED (n=107)
Detection of specific genomic imbalance in POOR (n=47)
CLL/SLL by MatBA®-CLL/SLL correlates Time (months) patient risk with time to first treatment Overall Survival (OS) (TTFT) and shorter overall survival (OS)
Patients classified as high risk showed a shorter time to first treatment (TTFT) compared to those classified as low or intermediate risk
Patients classified as high risk had significantly shorter overall survival (OS) times than those classified as low or intermediate risk
Provides additional risk stratification between low and intermediate risk patients, not currently available in other tests
Surviving P < 0.001
Proportion P = 0.010
– GOOD (n=74)
– INTERMED (n=107)
– POOR (n=47)
Time (months) 13
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UroGenRA™-Kidney Can Help Decide if Partial Kidney Removal Is Required and Guide Treatment Selection
PROBLEM
Men and women with renal masses often undergo unnecessary nephrectomy for accurate diagnosis and experience delay in treatment
SOLUTION
UroGenRA™ is designed to detect genomic aberrations in a single assay in percutaneous needle biopsies permitting accurate diagnosis and reduction in cost & time to treatment
Prospective ongoing percutaneous needle biopsy (n>50) MSKCC
Approaching 100% classification between benign and malignant lesions
Demonstrated ability to diagnose pathologically “unclassifiable” biopsies prior to surgical intervention
J. Coleman (MSKCC) & E. Klein (Cleveland Clinic)
Retrospective ongoing in-house FFPE validation (n>150) CCF
Test to distinguish benign from malignant subtype
In-silico validation (n>600)
Subtype Specificity
Tested to subtype ccRCC (n=489) 91%
pRCC (n=75) 97% chrRCC (n=65) 98%
Clinical Benefits Include Reduction in Number of Highly Invasive Procedures,
Time to Treatment Selection and Time to Treatment Initiation
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FHACT™—A New Genomic Aid In The Screening & Management Of Cervical Cancer
Cervical cancer effects nearly 500,000 women annually with nearly 80% in developing countries.
HPV+
90% Regress 10% Progress
Abnormal to Normal Grade Cervical to Higher Grade Decreased Risk for Cancer Lesions Increased Risk for Cancer
Provides critical information which reduces unnecessary and costly colposcopy
Predicts the progression and associated risk of cervical cancer progression
Genomic Amplification By Disease Category
Global Validation Partners
National Cancer Institute Georgia Health Science Univ. University of Iowa Kamineni Hospital
Source: Luhn et al., IPV Poster, 2012 www.cmdrc.com
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* - Launched Outside U.S. As A Product
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IP Position and Detailed Global Strategy
Panel for the Detection and Differentiation of Renal
Cortical Neoplasms
US 11/932,422
Europe 08844570.5
Methods of Analyzing Chromosomal Translocations
Using Fluorescence In Situ Hybridization (FISH)
US Issued Patent 7,585,964
US Issued Patent 7,964,345
Canada 2,447,320
Methods and Tools for the Diagnosis of Female
Gynecological Cancers and Precancers
Tool for Diagnosis and Prognosis of Mature B-Cell
Neoplasms
?US 12/980,480
?US 13/475,034
?Europe 10803548.6
?India 6657/DELNP/2012
?Canada 2,785,656
Methods for Detecting Human Papilloma Virus-
Associated Cancers
?US 13/227,027
?US 13/474,111
?PCT/US2011/050681
Strong and growing portfolio in molecular-focused patents for disease identification and stratification
IP-based on unique algorithms across a broad group of chromosomal regions
Validation of specific clinical endpoints that are associated with particular disease outcomes or decisions
Filing and maintenance of trademark portfolio
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Large, Targeted Market Opportunities with Extensive Value Creation for Key Markets
Target Markets
Universities and Research Centers
Community Hospitals
Regional Cancer Centers
Oncologists and Pathologists
Biotechnology Companies
Pharmaceutical Companies
Emerging Markets
Commercialization Strategy
Collaborate to create and validate microarrays and other proprietary products
Accelerate launch of large scale studies
Continue to growing sales force that calls on hospitals and regional laboratories
Plan development of national footprint through Expand Dx™
Leverage clinical infrastructure and proprietary product portfolio for testing services that support clinical trials
Expand sales emphasis of Select One™
Enhance distributor base in select emerging economies
Partner with leading local cancer care providers and hospitals to provide probes, arrays and clinical services
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Unique Service Offering Developed to Enable Community Hospitals to Improve Cancer Outcomes & Treat Patients Locally
Expanding & Developing Cancer Care is a Top Priority for Hospital CEOs & CFOs
4,000 to 5,000 Community Hospitals & Laboratories in the U.S.
85% Of All U.S. Cancer Patients are Initially Diagnosed in Community Hospitals & Laboratories
$600,000—$800,000 USD in Testing Opportunity on Average per Hospital
Source: American Hospital Association
Delivers better outcomes to community hospitals and laboratories
Enables community hospitals to bring “state-of-the-art” genomic testing to patients
Brings personalized medicine to the community hospital vs. just at academic and teaching hospitals
Allows community hospitals to keep patients and treat them locally
Improving care and quality is critical to maintaining reimbursement for community hospitals
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Clinical Trial Services Showing Strong Growth and Robust Pipeline
ONCOLOGY DRUGS ASSOCIATED GROWTH IN CGI’s DIRECT BILL
WITH BIOMARKER(S) CLIENTS ($000) $1,738 55%
$684 21% $221
2011 2016 1H, 2011 1H, 2012 1H, 2013
Source: Company Analysis and Management Estimates
Well-Positioned for Use in Clinical Trials & Companion Diagnostic Programs
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Gilead is Currently Using a Comprehensive Panel of CGI Services & Proprietary Products in National & International Trials for Hematologic Cancers
Highlights
Comprehensive, biomarker-based patient profiling will help risk stratification and response monitoring Improved patient profiling will result in improved trial efficacy for Gilead
Testing will occur across several methodologies, including flow cytometry, FISH, sequencing and mutation assays, and MatBA® microarrays
CGI provides biomarker driven insight regarding patient targeting and potential outcomes Trials cover both national and international locations with all patient specimens being processed in Rutherford, New Jersey
The Gilead Relationship Exemplifies the Significant Upside Potential of
CGI’s Select One™ Offering
CGIX Press Release: Cancer Genetics, Inc. Selected By Gilead Sciences, Inc. to Provide Clinical Trial Services for International Trials in Chronic Lymphocytic Leukemia
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Collaborations with Premier Cancer Research Institutions
Leading Differentiated Research & Driving Product Adoption
Research Collaboration/ Clinical Partnership Licensing Services Highlights
Renal Cancer, DLBCL, MCL & FL
Joint Venture Focused on Oncology & Next Generation Sequencing Cervical Cancer
DLBCL
CLL
Cervical Cancer & DLBCL
Cervical Cancer
Kidney Cancer
DLBCL, Head & Neck Cancers
CLL
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Well-Positioned and Growing Internationally Including in Emerging Economies
International revenue comes from sale of oncology products (DNA-FISH probes, arrays) and services to emerging economies
Expect exposure to increase to emerging economies through strong partnerships with Kamineni Life Sciences (India), Roche (Central America & Caribbean), and DASA (Brasil)
We focus our efforts through partnerships to ensure compliance with local regulations and distribution issues
Expanded distribution network with 4 new distributors covering 7 countries
Continued focus on increasing international partnerships in 2013 and 2014
2013 Cancer Genetics, Inc. | OTCQB: CGIX | 22
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Roche Partnership
Expanding Market Presence Internationally
CGI will be providing genomic and biomarker testing services to 14 countries in Central America and The Caribbean.
Highlights
CGI won a global RFP to help a strategic personalized medicine initiative for Roche Servicios (Latin America) Roche sends all patient samples to the Rutherford facility where they are catalogued and processed CGI interacts with both Roche and the hospital staff (pathologists, oncologists and nurses) and supports delivery of reports through an online HIPAA compliant portal Plans are in development to expand the relationship
“Since the beginning, CGI understood our needs and requirements and most importantly, consistently delivered the service we required…allowing us to offer high quality results and in a very short time to our patients. This commitment with Roche vision and values to offer to patients the best service to improve their lives, has made CGI a true business partner.”
Alvaro Soto, Roche Servicios | Central America & Caribbean General Manager
CGIX Press Release: Cancer Genetics, Inc. selected by Roche Servicios S.A. to provide services for the diagnosis and personalization of oncology treatment
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Mayo Clinic Joint Venture
Investing in the Future – OncoSpire Genomics
Next Generation Sequencing in Oncology
Highlights
JV to develop clinical diagnostic products and services on NGS platform(s) for select cancers Select three initial projects in key oncology categories by the SRC (Scientific Review Committee) CGI commits upto $6 M over initial three year period (2013 to 2015-16 expected)
Mayo commits to “in-kind” services and support, use of facilities, NGS capabilities and patient samples Joint Venture is exclusive in the project areas selected by CGI & Mayo
The Value and Focus of Next Generation Sequencing is Moving from Platforms to Clinically Relevant, Disease-Specific Applications
CGIX Press Release: Mayo Clinic Forms Joint Venture with Cancer Genetics
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Strong History of Growth
CGI Revenue & Clinical Volume Trends (2009 – 2013 thru 6 mos)
Total Revenue ($Mn)
Clinical Volume (Tests Processed)
6,610
$4.30
5,115
$3.02 $3.00
$2.52 3,622 3,146
$1.67 2,321
2009 2010 2011 2012 1H-2013* 2009 2010 2011 2012 1H-2013*
* Estimated
Trailing 12 Months Revenue $5. Mn*
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Strong History of Growth—Revenue & Clinical Volume Trends
(Quarterly Comparison 2012 vs. 2013)
Total Revenue ($000)
Clinical Volume (Tests Processed)
$1,750 3,204
52%
97% 46% 19%
$1,219 $1,148
1,911
1,610 1,623 $835
Grants** Grants**
2012 2013 2012 2013* 2012 2013 2012 2013* 1st Quarter 2nd Quarter 1st Quarter 2nd Quarter
* Estimated Note: Approx. 80% Growth
** Grants Q1,2012: $10K 2nd Quarter 2013 vs. 2012,
Grants Q2,2012: $185K Excluding Grants
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Summary Statement of Operations
(2009-2013 thru 6 mos)
Income Statement Item 2009 2010 2011 2012 1H-2013*
Revenue $1,666 $2,522 $3,019 $4,302 $3,000 Gross Profit (866) (995) (98) 373 700 Gross Margin (%) (52%) (39%) (3%) 9% 23%
Research & Development (R&D) 1,336 1,167 2,074 2,112 —
Sales & Marketing (S&M) 239 716 1,574 1,399 —
General & Administrative (G&A) 1,845 3,446 4,439 4,503 —
Operating Profit (Loss) (4,286) (6,323) (8,185) (7,641) (4,200) Net Income (Loss) (7,328) (8,407) (19,887) (6,666) —
$ in thousands
2009—2012 audited
* Estimated
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Summary Statement of Operations
(Quarterly & First Half Comparisons 2012 vs. 2013)
Income Statement Item Q2 2012 Q2 2013 ?% 1H 2012 1H 2013* ?%*
Revenue $1,148 $1,750 52% $1,983 $3,000 51% Gross Profit 63 550 +100% 75 700 +100% Gross Margin (%) 5% 31% +100% 4% 23% +100%
Research & Development (R&D) 527 — 1,050 —Sales & Marketing (S&M) 376 — 716 —General & Administrative (G&A) 1,394 — 2,330 —Loss From Operations (2,234) (1,950) 13% (4,021) (4,200) (4%)
* Estimated $ in thousands
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Consistent Focus on Gross Profit Improvements
Additional Efforts Focused Operationally in US & India
Gross Profit Margin
800
Thousands 600 23% in 400 $
9%
200
0
(52%) (3%) 2012 1H-2013*
(39%)
(200) 2011
(400)
(600)
(800)
2009
(1,000)
2010
Highlights of Initiatives
Manufacturing in India (Probes)
Increased automation
Process improvement and innovation
Capacity utilization
Leveraging cloud for scale in IT, data storage and clinical operations
Developing innovative model for doing remote genetic analysis in India
* Estimated
2009-2012 audited
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Multiple Customer Types Provide Diversified Revenue Mix With Covered Lives Already in Place
Payor Revenue Mix 2013 (Q1, 2013) Selected Payors
4%
21%
57 million covered lives through multiple payors:
42% Q1, 2013
Direct Bill Customer Types
33%
Academic Biotechs Cancer Facilities
Reimbursement Based Direct Bill / Pay Based
Community &
Insurance Companies Companies, Hospitals Pharmas
Regional Labs
& Care Facilities
Medicare Grants, Royalty & Other
2013 Cancer Genetics, Inc. | OTCQB: CGIX | 30
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Experienced and Focused Management and Boards
Board of Directors
Raju Chaganti, Ph.D. | Keith Brownlie | John Pappajohn | Franklyn Prendergast, M.D., Ph.D. Panna Sharma | Edmund Cannon | Andrew Pecora, M.D. | The Honorable Tommy G. Thompson
Officers & Management Team
Raju Chaganti, Ph.D., FACMG Founder & Chairman
35 years in cancer research; 37 at MSKCC
Major discoveries in cancer genomics
Published 350+ articles, 4 patents
Panna Sharma President & CEO
15+ years as advisor to global life science & healthcare cos.
Founded TSG Partners
Chief Strategy Officer, iXL (IIXL)
Elizabeth Czerepak Chief Financial Officer
9 yrs as biotech VC; 18 yrs in pharma finance & deal making
JPMorgan, Bear Stearns Health Innoventures, BASF, Roche, Merck
Jane Houldsworth, Ph.D. Vice President of R&D
25 years in translational oncology research
Published 50+ articles, 4 patents
NIH grantee
Scientific Advisory Board
Andrea Califano, Ph.D.
Chairman of the Columbia Initiative for Systems Biology Associate Director for Bioinformatics, Herbert Irving Comprehensive Cancer Center
Timothy A. Chan, M.D., Ph.D.
Principal Investigator, Human Oncology and Pathogenesis Program at Memorial Sloan-Kettering Cancer Center
Riccardo Dalla-Favera, M.D.
Director, Institute for Cancer Genetics at Columbia University
Hans-Guido Wendel, M.D.
Principal Investigator, Cancer Genetics Laboratory at Memorial Sloan-Kettering Cancer Center
Vundavalli V. Murty, Ph.D.
Director, Cancer Cytogenetic Laboratory and Molecular Pathology at Columbia University
Andrew D. Zelenetz, M.D., Ph.D.
Chief of Lymphoma Service and Head of Molecular Hemo-Oncology Laboratory, Department of Medicine at MSKCC
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Strong, Commercially-Focused News Flow & Consistent Achievement of Milestones Expected in Coming Quarters
Recent Accomplishments
Accelerating market traction – over 50% quarter to quarter growth in 2013 and 60% over same quarter last year
Launched UroGenRA™ – Kidney, a unique microarray for kidney cancer diagnosis and treatment selection in collaboration with MSKCC
Launched FHACT™ outside the U.S. in collaboration with the National Cancer Institute research publication
Received CLIA Approval for MatBA® –
MCL (Mantle Cell Lymphoma)
Finalized Agreement with Multiplan which gave us access to 57 million covered lives
Launched Oncospire Genomics – A Next Generation Sequencing Joint Venture with Mayo Clinic
Upcoming Milestones & Value Drivers
Increasing covered lives market access through additional payers and health care organizations
Launching multi-marker NGS panel for leukemia and lymphomas
Additional international agreements with life science tools companies for DNA Probes and product distribution in key geographies
UroGenRA Kidney – Next phase of data and results from Cleveland Clinic collaboration
MatBA – Next phase of data and results from Dana Farber and HUMC studies to help support value and reimbursement
CE Approval for FHACT – Allows for IVDD use in E.U.
Additional news on biopharma partners and relationships
Announcing initial set of projects and launch plans for OncoSpire Genomics
2013 Cancer Genetics, Inc. | OTCQB: CGIX | 32
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CANCER GENETICS
Empowering Personalized Cancer Treatment
For further information, please contact us at ir@cancergenetics.com
Cancer Genetics, Inc.
Meadows Office Complex 201 Route 17 North Rutherford, NJ 07070 (201) 528-9200
www.cancergenetics.com
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Appendix
I. CGIX Capitalization Table
II. DNA Detection Methodologies Utilized By CGI
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I. Summary Capitalization Table
CGIX Cap Table As of 03/31/2013 (Pro Forma)
4,290,691
1,926,477
507,610
6,750,778
Common Stock
Warrants* – Average Exericse Price of $12.15
Options – Average Exercise Price of $7.61
Total – Fully Diluted Pre-Offering
Excludes 450,390:
440,390 options reserved for future issuance under equity incentive plans (Employee Option Plan)
10,000 shares issuable to The Mayo Clinic
* Some of the warrants have anti-dilution provisions, so that the numbers will vary with the actual offering price
2013 Cancer Genetics, Inc. | OTCQB: CGIX | 35
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Expanding Proprietary Capabilities Across Full Range of DNA Detection Methodologies
DNA-FISH Probe
Low Resolution (~1-2Mb)
Mid-High Market Maturity
Value: High in established markets and growing in emerging markets
Existing CGI Capabilities
DNA Microarray
High Resolution (~1-2kb)
Low-Mid Market Maturity
Value: Growing in established and more mature healthcare economies
Natural Extension of Technologies Used to Genomically Assess Cancer
Fragment & Hybridize to
DNA Next Generation Sequencing Microarray
Very High Resolution (1-2 nucleotides)
The Next
Emerging Market Sequence Step Value: High in research but clinical value still emerging. First mover Analyze advantage in application development is critical
2013 Cancer Genetics, Inc. | OTCQB: CGIX | 36