1. 1

2. 2

3. Moore’s Law
$3B
$4K
1999 20132005
Cost to
sequence
genome
CostPerGenome
InformationValue
Genomic Sequencing: Unparalleled Productivity
3

4. San Diego is at the Heart of Genomics
4

5. Health Horizons Program. Institute for the Future. Top Ten Impediments to Better Health & Health Care in the United States. May 2005.
Error Rates in Healthcare Higher than Other Industries
5

6. • The total addressable Genomics 2.0 app market is made up of both existing markets
that could adopt new technologies as well as a number of new and emerging markets
Genomics 2.0 Potentially a US$23bn TAM
6

7. 7

8. 8

9. 9

10. Wrong drug
Selected,
Find out
6 months later
The Cost Of A Wrong Answer
Note: metastatic basal cell carcinoma
10

11. Oncology: Collision Course with Complexity
• 500+ compounds on the way
• Targeting more than 200 biomarkers
•Multiple Dx tests for each marker
11

12. Cancer characterization has shifted from
anatomic to genomic
12

13. 19th Century Personalized Medicine
13

14. 20th Century Personalized Medicine
14

15. + +
Changing Medicine Forever
Empiric
Medicine
Evidence Based
Medicine
Personalized
(Sequencing)
Medicine
Real Personalized Medicine is here … TODAY
15

16. My Interests in the Evolving Ecosystem
 Enabling Technologies
 Better Diagnostics & Monitoring
 Treatment Delivery Frameworks
 Drug Discovery & Development
16

17. ~$6M Saving Over 4 Years
in Compute, Overhead, Networking & Storage costs for each HiSeq X Ten
To Analyze the Data Generated by One HiSeq X Ten
Takes Over 50 High End Compute Servers…
Or Just Accelerator Card1
analyzes a whole human genome in 18 min
(A high end server takes 24 hours to do this!)
That is because…
Which provides…
17

18. Epic Sciences – Technical Strengths and Applications
+CK-/CD45- (EMT cells)
Traditional
CTC Process
Patient
Sample
Epic
Process
Epithelial CTCs
Epithelial CTCs
Apoptotic CTCs
Small CTCs
• Unbiased approach, no enrichment
• See all CTC subtypes
• Subtypes confirmed by genomics
Recurrence
Detection
Therapy
Monitoring
Therapy
Selection
ScreeningPhase I Phase II Phase III
CLINICAL TRIALS Patient Care
• Diagnostic assays
for observational
trials
• Diagnostic assays
for patient
selection in
interventional
trials
• On label, marketed
CDx for therapy
selection
• Novel independent
diagnostics for
therapy selection
• Real-time
monitoring for drug
resistance
“No Cell Left Behind” Application Areas
18

19. RainTree – Creating Gold Standard Oncology Network
19
GPO /
Distribution
Data
(core analytics)
Care
Management
Regional
ACO’s
 Orals, injectable, infusion
 Pharmacy network
 Pharma portal
 Outcome analytics
 Protocols
 Best practices
 Risk bearing
Multi-Billion Opportunity

20. Source: NIH Office of the Director, Office of Budget
officeofbudget.od.nih.gov
NIH Appropriations in
Current and Constant Dollars
Pivoting to translational research and
partnerships to close NIH funding gap
• Implement 10-year strategic
vision to ensure financial
stability
• Leverage human biology and
drug discovery expertise to
accelerate therapeutics
discovery
• Form clinical partnerships to
advance patient-oriented
research
• Partner with top-tier pharma/
biotech to diversify revenue
$0
$5,000,000,000
$10,000,000,000
$15,000,000,000
$20,000,000,000
$25,000,000,000
$30,000,000,000
$35,000,000,000
1995
1998
2001
2004
2007
2010
2013
Constant $ (1995)
Current $
20

21. Building a Life Sciences Powerhouse
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
• 50 transaction
• 5000 patents
• $1.3 billion EBITDA
$3.96B
21
22%
CAGR
$680M

22. A few thoughts on investing
• Look for ‘T’ Shaped Leaders
• The ‘weather’ is important, but so is the ‘climate’
• Get ahead of big ideas, but have the staying power
to capture the value
• Have someone look over your shoulder to double-
check your thesis
• Venture investing is full contact sport – you need to
be in the huddle with the management team
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