1

2

Moore’s Law

$3B

$4K

1999 20132005

Cost to

sequence

genome

Co

st

Pe

r G

en

om

eIn

form

atio

n V

alu

e

Genomic Sequencing: Unparalleled Productivity

3

San Diego is at the Heart of Genomics

4

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

• 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

8

9

Wrong drug Selected,Find out

6 months later

The Cost Of A Wrong Answer

Note: metastatic basal cell carcinoma

10

Oncology: Collision Course with Complexity

• 500+ compounds on the way

• Targeting more than 200 biomarkers

•Multiple Dx tests for each marker

11

Cancer characterization has shifted from anatomic to genomic

12

19th Century Personalized Medicine

13

20th Century Personalized Medicine

14

+ +

Changing Medicine Forever

Empiric Medicine

Evidence Based Medicine

Personalized (Sequencing)

Medicine

Real Personalized Medicine is here … TODAY

15

My Interests in the Evolving Ecosystem

Enabling Technologies

Better Diagnostics & Monitoring

Treatment Delivery Frameworks

Drug Discovery & Development

16

~$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…

17

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

18

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

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 $

20

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

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

22