venture summit 2014, greg lucier

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Moore’s Law

$3B

$4K

1999 20132005

Cost to

sequence

genome

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form

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Genomic Sequencing: Unparalleled Productivity

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San Diego is at the Heart of Genomics

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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

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• 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

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Wrong drug Selected,Find out

6 months later

The Cost Of A Wrong Answer

Note: metastatic basal cell carcinoma

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Oncology: Collision Course with Complexity

• 500+ compounds on the way

• Targeting more than 200 biomarkers

•Multiple Dx tests for each marker

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Cancer characterization has shifted from anatomic to genomic

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19th Century Personalized Medicine

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20th Century Personalized Medicine

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+ +

Changing Medicine Forever

Empiric Medicine

Evidence Based Medicine

Personalized (Sequencing)

Medicine

Real Personalized Medicine is here … TODAY

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My Interests in the Evolving Ecosystem

Enabling Technologies

Better Diagnostics & Monitoring

Treatment Delivery Frameworks

Drug Discovery & Development

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~$6M Saving Over 4 Yearsin 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 Card1analyzes a whole human genome in 18 min

(A high end server takes 24 hours to do this!)

That is because…

Which provides…

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Epic Sciences – Technical Strengths and Applications

+CK-/CD45- (EMT cells)

Traditional CTC Process

Patient Sample

EpicProcess

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

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RainTree – Creating Gold Standard Oncology Network

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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

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

19951998

20012004

20072010

2013Constant $ (1995)Current $

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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

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22% CAGR

$680M

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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