cgix presentation 20150902
TRANSCRIPT
THE ONCOLOGY DIAGNOSTICS PARTNER FROM BENCH TO BEDSIDE
September 2015
Investor Presentation NASDAQ: CGIX
INVESTOR PRESENTATION | 2015 CANCER GENETICS, INC. | WWW.CANCERGENETICS.COM | @CANCER_GENETICS 2
This presentation contains forward-looking statements within the meaning of the Private Securities LitigationReform Act of 1995. All statements pertaining to future financial and/or operating results, future growth in research,technology, clinical development and potential opportunities for Cancer Genetics, Inc. products and services, alongwith other statements about the future expectations, beliefs, goals, plans, or prospects expressed by managementconstitute 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 beconsidered 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, risks ofcancellation of customer contracts or discontinuance of trials, risks that anticipated benefits from acquisitions willnot be realized, uncertainty in the results of clinical trials or regulatory approvals, need and ability to obtain futurecapital, maintenance of intellectual property rights and other risks discussed in the Cancer Genetics, Inc. Forms 10-K for the year ended December 31, 2014 and 10-Q for the quarter ended June 30, 2015 along with other filings withthe Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof.Cancer Genetics, Inc. disclaims any obligation to update these forward-looking statements.
FORWARD-LOOKING STATEMENT
INVESTOR PRESENTATION | 2015 CANCER GENETICS, INC. | WWW.CANCERGENETICS.COM | @CANCER_GENETICS 3
CANCER GENETICS, INC. INVESTOR HIGHLIGHTSUniquely Positioned to Address Global Market Opportunities in Oncology
3 ACQUISITIONS
$458B GLOBAL ONCOLOGY SPENT BY 2030
Unique &Proprietary Portfolioof GenomicTests & Panels
8 PATENTS
9 TESTS LAUNCHED
Strong & GrowingRelationships withLeading Biotech &Pharma Partners
+650%BIOPHARMACONTRACTS2012-2015
18 RESEARCHCOLLABORATIONS
Innovation &Expertise Drivenby KeyCollaborations
100+ CUMULATIVE YEARSOF EXPERIENCE
World-ClassManagementTeam & ScientificAdvisory Board
55% AAGR
Diversified &High GrowthRevenueStreams
INVESTOR PRESENTATION | 2015 CANCER GENETICS, INC. | WWW.CANCERGENETICS.COM | @CANCER_GENETICS 4
OUR MISSION IS TO BE THE ONCOLOGY DIAGNOSTICS PARTNER OF CHOICE FROM
PARTNERING WITH LEADING RESEARCH INSTITUTIONS TO DEVELOP NEW INSIGHTS & INNOVATIONS
PROVIDING EXPERTISE & EXECUTION TO BIOPHARMA COMPANIES FOR IMPROVED OUTCOMES
RESEARCHCLINICALTRIALS
PATIENTCARE
DELIVERING CRITICALGENOMIC INSIGHTS FOR MEDICAL PROFESSIONALS TO PERSONALIZE PATIENT TREATMENTS
INVESTOR PRESENTATION | 2015 CANCER GENETICS, INC. | WWW.CANCERGENETICS.COM | @CANCER_GENETICS 5
UNIQUELY POSITIONED TO ADDRESS THE MACRO-TRENDSIN TODAY’S ONCOLOGY MARKET ENVIRONMENT
Increasing global need for improved oncologydiagnosis & management1
Committed to a global footprint focused on innovation and state-of-the-art infrastructure and people
Growing awareness and adoption ofgenomic testing by both clinicians and patients2 Highly developed and trained sales
force of 20+ that is uniformly focused on educating and serving clinicians
Majority of cancer clinical trials nowincorporate biomarkers and genomic tests3 Fastest growing area of our business is
focused on incorporating biomarkers into trials for game-changing oncology drugs
Test costs continue to decrease withnewer technologies and improved analytics4
Our focus is the disease and on patient outcomes and are platform agnostic –which makes us uniquely flexible
Industry consolidation seeks to leverageeconomies of scale and expand marketing reach5
Consolidation in our industry is critical to achieving scale, creating a durable business and impacting more patients
INVESTOR PRESENTATION | 2015 CANCER GENETICS, INC. | WWW.CANCERGENETICS.COM | @CANCER_GENETICS 6
OUR MARKET OPPORTUNITY IS GLOBAL & GROWING
CLINICAL$6B$2.5B BIOPHARMA
UNITED STATES
$1B CLINICAL
$0.4B BIOPHARMA
INDIA
$1B BIOPHARMA
CHINA
NEW CANCER PATIENTS DIAGNOSED
GLOBALLY
14.1MIN THE USA:
1.6M50% CAN BE
IMPACTED BYCGI’S PORTFOLIO
IN INDIA:
1M47% CAN BE
IMPACTED BYCGI’S PORTFOLIO
PROJECTED COST OFCANCER CARE BY 2030
$458BAVERAGE COST OF THERAPY
PER CANCER PATIENT
$135K
2015 COST OF CANCER CARE
R&D EXPENDITURE IN BIOPHARMA
GLOBALLY
$115BSPENT IN THE USA
$49BSPENT GLOBALLY
IN ONCOLOGY
$26B
Data from CGI 2014 Annual Report: http://content.stockpr.com/cancergenetics/media/eb1e21488c08d043081d6607733a26f0.pdf
INVESTOR PRESENTATION | 2015 CANCER GENETICS, INC. | WWW.CANCERGENETICS.COM | @CANCER_GENETICS 7
OUR MARKET SEGMENTS & STRATEGY
COMMERCIALIZATION STRATEGYTARGET MARKET SEGMENTS MARKET OPPORTUNITY
Community HospitalsRegional Cancer CentersOncologists & Pathologists
Continue growing sales force that calls on hospitals & regional labs
Partner with key regional cancer centers and hospitals Focus on both education and collaboration to
differentiate against the “cookie-cutter” labs
Pharmaceutical & Biotechnology Companies
Leverage clinical infrastructure and proprietary product portfolio for testing services that support clinical trials
Expanding the ales emphasis of disease-focused program
Universities &Research Centers
Collaborate to create/validate unique genomic panels and proprietary tests
Accelerate launch of large scale studies to support test adaption & validation (data)
Oncospire Genomics Joint Venture with Mayo Clinic
Emerging MarketsIndia | China
Partner with leading local cancer care providers and hospitals to provide Focus::Hotspot™ and FHACT® in India
Invest in unique sales team and infrastructure to serve markets where nearly a 1/3 of new cancer cases are developing
Partner with select Biopharma clients that need market access
4K+ U.S. HOSPITALS
28K+ ONCOLOGISTS & PATHOLOGISTS
3K+ U.S. CLINICALTRIALS FOR ALLCANCER TYPES
200+ RESEARCHCENTERSIN THE U.S.
1M+ INDIA - CANCER CASES/YEAR
3.1M+ CHINA - CANCERCASES/YEAR
~30% OF TOTAL ANNUALGLOBAL CANCER CASES
INVESTOR PRESENTATION | 2015 CANCER GENETICS, INC. | WWW.CANCERGENETICS.COM | @CANCER_GENETICS 8
ACQUISITIONS
Response Genetics, Inc. (Pending 2015) Leading solid tumor testing franchise with critical clinical
content in Lung, Colorectal, Skin, and Brain cancers Strong commercial presence in Western & Southeast
U.S. with over 3,000 customers Only FDA approved and Medicare reimbursed test for
tumors of unknown origin – TOO™
Bioserve, India (August 2014) First company to provide DNA synthesis, DNA
sequencing, & related services in India Customers and clients include CCMB, ICMR, CSIR
institute, and several major biopharma companies ISO 9001:2015 (185417-205-AQ-IND-RvA)
Gentris, Inc. (July 2014) Global provider of pharmacogenomics, NGS, genotyping,
and biorepository services to Biopharma U.S. FDA-compliant laboratory in Zhanjiang Hi-Tech
Park, Shanghai, China
KEY M&A CRITERIA
Capabilities
Geographic Footprint
Customers & Clients
Unique Content in Cancer
Culture & Human Capital
GLOBAL FOOTPRINTUNITED STATES
RESPONSEGENETICS
NCNJ
INDIA
CHINA
ACTIVE ACQUISITION STRATEGY TO EXPAND GROWTH & ESTABLISH SIGNIFICANT MARKET SHARE GLOBALLY
18,000 sq. ft.
28,000 sq. ft.
14,000 sq. ft.
3,000 sq. ft.
TOTAL 90,000 sq. ft.
27,000 sq. ft.
INVESTOR PRESENTATION | 2015 CANCER GENETICS, INC. | WWW.CANCERGENETICS.COM | @CANCER_GENETICS 9
RESPONSE GENETICS, INC. ACQUISITION HIGHLIGHTS
$8-9MIN CLINICAL & HOSPITAL TESTING
NEW CLINICAL REVENUE
$2-3MEXPECTED FROMNCI’S ALCHEMIST TRIAL & BIOPHARMA CUSTOMERS
ADDITIONAL BIOPHARMA REVENUE & PARTNERS
GEOGRAPHIC REACHSTRONG COMMERCIALPRESENCE IN THEWESTERN & SOUTH EASTERNU.S.A.
SALES FORCE PRESENCEAPPROXIMATELY14 SALES PROFESSIONALS
COMPLEMENTARYONCOLOGY PORTFOLIO
8 of 10solid tumor types
TISSUE OF ORIGIN™: ONLYFDA-CLEARED TEST OF ITS TYPE, MEDICARE APPROVED
EXPERTISE INSOLID TUMORFOCUSED TESTS
$10-12MEXPECTED OVER NEXT 12 MONTHS
ADDITIONAL REVENUECONTRIBUTION
INVESTOR PRESENTATION | 2015 CANCER GENETICS, INC. | WWW.CANCERGENETICS.COM | @CANCER_GENETICS 10
IMPROVING ONCOLOGY CLINICAL TRIAL DEVELOPMENT WITH UNIQUE GENOMIC INSIGHT
CONTRACTS WITH
PHARMACEUTICALCOMPANIES INCLUDING
GILEAD, ASTRA ZENECA, & ROCHE
7 10OF THETOP
70+ CLINICALTRIALS
ACTIVELY PROVIDING TESTING, GENOMIC SERVICES, AND BIOMARKER SUPPORT FOR
$0
$10
$20
$30
+650%INCREASEIN SIGNEDCONTRACTS& POTENTIALREVENUES WITHBIOPHARMACUSTOMERS2012 TO 2015
Approximate expected future revenues under signed contracts with biotechnology & pharma customersfor testing & services to support currently planned clinical trials.
2012 2013 2014 2015 YTD
MIL
LIO
NS VALUE OF
BIOPHARMACONTRACTS
$32
$25
$8$4
INVESTOR PRESENTATION | 2015 CANCER GENETICS, INC. | WWW.CANCERGENETICS.COM | @CANCER_GENETICS 11
ICON PARTNERSHIP & STRATEGIC ALLIANCE
• Partnership w/ ICON offers comprehensive oncology lab testing & solutions for global biopharma• Tests and services offered by CGI through ICON will be branded as “Powered by CGI”• Complementary capabilities for cross and upselling to biotech and pharma customers• CGI capabilities address the needs of ICON’s 900+ oncology studies from Phase I-IV• Cross training of global sales forces & scientific affairs teams scheduled through 2015-16• CGI has already realized quick wins with both joint accounts and joint selling efforts
• CRO industry leader with $1.5B in net annual revenue & 11,000+ employees• Biopharma outsources ~45% of R&D, growing to ~50% by 2016• Top 6 CROs have 55% share, consolidating to ~60% share by 2015• ~30% of ICON revenue is from oncology, in line with industry R&D spend• >33% of drugs in clinical development use biomarkers in trials
UNLOCKING SIGNIFICANT BUSINESS SYNERGIES & ACCELERATING BIOPHARMA REVENUE
INVESTOR PRESENTATION | 2015 CANCER GENETICS, INC. | WWW.CANCERGENETICS.COM | @CANCER_GENETICS 12
OUR EXTENSIVE ONCOLOGY PORTFOLIO IS CENTERED ONFOUR MAJOR PRINCIPLES
III. INNOVATIVE
Focus on UnMet and Critical Disease States Chronic Lymphocytic
Leukemia Renal Cancer Lymphoid
Malignancies Cervical Cancer Lung Cancer Pharmacogenomics Germline & Somatic
I. COMPLETE
Comprehensive & Agnostic
Methodologies Next Generation
Sequencing (NGS) Array-CGH PCR/Sequencing FISH IHC Flow Cytometry
II. COLLABORATIVE
Developed with Though Leaders
Multiple Myeloma & Lung Cancer
OncoSpire Genomics >Mayo Clinic
Cervical CancerFHACT® >National Cancer Institute
Myeloid CancersFocus::Myeloid™ >Columbia University
IV. ACTIONABLE
Impacting Patient Care Community Hospitals Cancer Centers Oncologists Pathologists
Improving Clinical Trials
Pharmaceutical and Biotech companies
INVESTOR PRESENTATION | 2015 CANCER GENETICS, INC. | WWW.CANCERGENETICS.COM | @CANCER_GENETICS 13
UNIQUE, PROPRIETARY PORTFOLIO OF GENOMIC TESTS & PANELS
* Oncospire Genomics: a joint venture with Mayo Clinic
RESEARCH &DISCOVERY
CLINICALDEVELOPMENT
COMMERCIALDEVELOPMENT
MARKETENTRY
FOCUS::MYELOID™ (IN COLLABORATION WITH ILLUMINA)
FOCUS::LYMPHOID™
FOCUS::CLL™ (CLL/SLL)
MATBA® FOR B-CELL CANCERS (CLL, DLBCL, FL, MCL)
TEST IN MARKET
TEST IN MARKET
4 TESTS IN MARKETBLOODCANCERS
Late 2015
MULTIPLE MYELOMA
FOLLICULAR LYMPHOMA
LUNG CANCER
ONCOSPIREGENOMICS*
TBD
Late 2015
Late 2015
TISSUE OF ORIGIN™ (RESPONSE GENETICS) TEST IN MARKET
FOCUS::RENAL™
UROGENRA®-KIDNEY TEST IN MARKET
FHACT® CERVICAL TEST IN MARKET
FOCUS::CANCER HOTSPOT™ (RESEARCH INDIA, BIOPHARMA US) TEST IN MARKET
SOLIDTUMORS
Early 2016
HEREDITARY Late 2015
HEREDITARY CANCER PANEL
COMPREHENSIVE PHARMACOGENOMICS (PGX) PANEL
TBDFOCUSED ON WOMEN’S HEALTH
INVESTOR PRESENTATION | 2015 CANCER GENETICS, INC. | WWW.CANCERGENETICS.COM | @CANCER_GENETICS 14
MATBA® DRIVES IMPROVED INSIGHT & MANAGEMENT FOR CHRONIC LYMPHOCYTIC LEUKEMIA (CLL) PATIENTS
CGI SOLUTION
38% of cases are favorable falling under "watch & wait" approach
8% of unfavorable cases missed by FISH are detected by MatBA®-CLL/SLL
23%
39%
38%
Favorable
Intermediate
Unfavorable
MatBA®-CLL/SLL is CLIA & NYS licensed to stratify patients into 3 distinct risk groups using 20 biomarkers:
CLINICAL NEED
Standard FISH testing for CLL is based on 4 biomarkers & stratifies patients into 2 risk groups:
Favorable/ Intermediate(no distinction)
Unfavorable
FISHTesting
85%
15%
INVESTOR PRESENTATION | 2015 CANCER GENETICS, INC. | WWW.CANCERGENETICS.COM | @CANCER_GENETICS 15
UROGENRA®-KIDNEY GUIDES MANAGEMENT& APPROPRIATE TREATMENT SELECTION
• Patients with renal masses often undergo unnecessary nephrectomy for accurate diagnosis & experience delay in treatment
• Over 15% of needle biopsies of renal masses are rendered non-diagnostic
CLINICAL NEED
• UroGenRA®-Kidney assesses 16 biomarkers in a single assay
• Provides accurate diagnosis guiding appropriate clinical management and treatment strategies (benign vs malignant; malignant subtype)
• Reduction in number of highly invasive procedures & time to treatment initiation
CGI SOLUTION
PROPRIETARY DIAGNOSTIC ALGORITHM
>600 RCC MALIGNANTSUBTYPESin-silico: SNP
>100 MALIGNANT & BENIGNRENAL NEOPLASMSin-house: aCGH & FISH
RETROSPECTIVE IN-HOUSE FFPEVALIDATION (n>190)
100% DIAGNOSTICYIELD 97% DIAGNOSTIC
SENSITIVITYto distinguishbenign/malignant
93% SENSITIVITYto distinguishmalignant RCCsubtypes
PROSPECTIVE ONGOING PERCUTANEOUSCORE NEEDLE BIOPSY (n>190)
DEMONSTRATED ABILITY TO DIAGNOSE PATHOLOGICALLY “UNCLASSIFIABLE” BIOPSIES PRIOR TO SURGICAL INTERVENTION
INVESTOR PRESENTATION | 2015 CANCER GENETICS, INC. | WWW.CANCERGENETICS.COM | @CANCER_GENETICS 16
FHACT® FITS DIRECTLY INTO TODAY’S CERVICAL CANCER SCREENING WORKFLOW
55MPAP SMEARS
3.5MUNCLEAR/
ABNORMAL
2MBIOPSIES
13KCASES OFCANCER
• Today, all HPV+ women with abnormal Pap results are referred for colposcopy
• Several cervical cancer tests are available but the need for less invasive and better informed treatment exists
CLINCAL NEED
• FHACT® helps triage before colposcopy
• Non-invasive test performed on remnant liquid cytology – no resampling is necessary which means no additional doctor visit
• Fewer women referred for colposcopy reducing healthcare costs & patient anxiety
CGI SOLUTION
Today, all these women arereferred for colposcopy
PROGRESS to a higher grade andincreased risk for cancer within10-30 years of the infection
REGRESS within 2 years ofthe infection
Not referred for colposcopy
FHACT®
Results:Normal
Referred for colposcopy
FHACT®
Results:Abnormal
~90% ~10%
HPV+ women with abnormal or unclear liquid-based cytology
INVESTOR PRESENTATION | 2015 CANCER GENETICS, INC. | WWW.CANCERGENETICS.COM | @CANCER_GENETICS 17
ARCHITECTURE OF THE FOCUS::LYMPHOMA™ NGS PANEL
ABCB1 ABCC1 ABCG2 CYP1A1 CYP1A2 UGT1A6
CYP2A6 CYP2B6 CYP2C19 CYP2C8 CYP2C9 ABCB4
CYP2D6 CYP2E1 CYP3A4 CYP3A5 DPYD HNMT
GSTM1 GSTP1 NAT1 NAT2 SLC15A2 SLC28A3
SLC22A1 SLC22A2 SLC22A6 SLCO1B1 SLCO2B1 FMO2
SLCO1B3 TPMT UGT1A1 UGT2B15 UGT2B17 SLC10A2
UGT2B7 ABCC2 GSTT1 VKORC1 HLA-A CYP1B1
HLA-B G6PD UGT1A9 MTHFR F5 HNRNPD
SLCO1A2 COMT TYMS ERCC1 ERCC2 IKBKE
XRCC1 ABCC5 SLC19A1 SULT1A1 NCF4 ERBB2
SEC14L3 CYBA RAC2 POR SULT2B1 SLC28A1
FMO3 SPG7 ADH7 EPO LARP1B RRM1
ACTG1 SOX10 NR1I3 BCL2 AGXT CAPG
OPRM1 LRP2 NME1 SCN10A
ABCB1 ABCC1 ABCG2 CYP1A1 CYP1A2 UGT1A6
CYP2A6 CYP2B6 CYP2C19 CYP2C8 CYP2C9 ABCB4
CYP2D6 CYP2E1 CYP3A4 CYP3A5 DPYD HNMT
GSTM1 GSTP1 NAT1 NAT2 SLC15A2 SLC28A3
SLC22A1 SLC22A2 SLC22A6 SLCO1B1 SLCO2B1 FMO2
SLCO1B3 TPMT UGT1A1 UGT2B15 UGT2B17 SLC10A2
UGT2B7 ABCC2 GSTT1 VKORC1 HLA-A CYP1B1
HLA-B G6PD UGT1A9 MTHFR F5 HNRNPD
SLCO1A2 COMT TYMS ERCC1 ERCC2 IKBKE
XRCC1 ABCC5 SLC19A1 SULT1A1 NCF4 ERBB2
SEC14L3 CYBA RAC2 POR SULT2B1 SLC28A1
FMO3 SPG7 ADH7 EPO LARP1B RRM1
ACTG1 SOX10 NR1I3 BCL2 AGXT CAPG
OPRM1 LRP2 NME1 SCN10A
ABCB1 ABCC1 ABCG2 CYP1A1 CYP1A2 UGT1A6
CYP2A6 CYP2B6 CYP2C19 CYP2C8 CYP2C9 ABCB4
CYP2D6 CYP2E1 CYP3A4 CYP3A5 DPYD HNMT
GSTM1 GSTP1 NAT1 NAT2 SLC15A2 SLC28A3
SLC22A1 SLC22A2 SLC22A6 SLCO1B1 SLCO2B1 FMO2
SLCO1B3 TPMT UGT1A1 UGT2B15 UGT2B17 SLC10A2
UGT2B7 ABCC2 GSTT1 VKORC1 HLA-A CYP1B1
HLA-B G6PD UGT1A9 MTHFR F5 HNRNPD
SLCO1A2 COMT TYMS ERCC1 ERCC2 IKBKE
XRCC1 ABCC5 SLC19A1 SULT1A1 NCF4 ERBB2
SEC14L3 CYBA RAC2 POR SULT2B1 SLC28A1
FMO3 SPG7 ADH7 EPO LARP1B RRM1
ACTG1 SOX10 NR1I3 BCL2 AGXT CAPG
OPRM1 LRP2 NME1 SCN10A
ABCB1 ABCC1 ABCG2 CYP1A1 CYP1A2 UGT1A6
CYP2A6 CYP2B6 CYP2C19 CYP2C8 CYP2C9 ABCB4
CYP2D6 CYP2E1 CYP3A4 CYP3A5 DPYD HNMT
GSTM1 GSTP1 NAT1 NAT2 SLC15A2 SLC28A3
SLC22A1 SLC22A2 SLC22A6 SLCO1B1 SLCO2B1 FMO2
SLCO1B3 TPMT UGT1A1 UGT2B15 UGT2B17 SLC10A2
UGT2B7 ABCC2 GSTT1 VKORC1 HLA-A CYP1B1
HLA-B G6PD UGT1A9 MTHFR F5 HNRNPD
SLCO1A2 COMT TYMS ERCC1 ERCC2 IKBKE
XRCC1 ABCC5 SLC19A1 SULT1A1 NCF4 ERBB2
SEC14L3 CYBA RAC2 POR SULT2B1 SLC28A1
FMO3 SPG7 ADH7 EPO LARP1B RRM1
ACTG1 SOX10 NR1I3 BCL2 AGXT CAPG
OPRM1 LRP2 NME1 SCN10A
ABCB1 ABCC1 ABCG2 CYP1A1 CYP1A2 UGT1A6
CYP2A6 CYP2B6 CYP2C19 CYP2C8 CYP2C9 ABCB4
CYP2D6 CYP2E1 CYP3A4 CYP3A5 DPYD HNMT
GSTM1 GSTP1 NAT1 NAT2 SLC15A2 SLC28A3
SLC22A1 SLC22A2 SLC22A6 SLCO1B1 SLCO2B1 FMO2
SLCO1B3 TPMT UGT1A1 UGT2B15 UGT2B17 SLC10A2
UGT2B7 ABCC2 GSTT1 VKORC1 HLA-A CYP1B1
HLA-B G6PD UGT1A9 MTHFR F5 HNRNPD
SLCO1A2 COMT TYMS ERCC1 ERCC2 IKBKE
XRCC1 ABCC5 SLC19A1 SULT1A1 NCF4 ERBB2
SEC14L3 CYBA RAC2 POR SULT2B1 SLC28A1
FMO3 SPG7 ADH7 EPO LARP1B RRM1
ACTG1 SOX10 NR1I3 BCL2 AGXT CAPG
OPRM1 LRP2 NME1 SCN10A
ABCA13 BIRC3 CDKN2B EPHA7 HIST1H1C JAK2 NFKBIB PIK3CG RAF1 SYK
ABCA3 BLK CIITA ERBB3 HIST1H1E KDM6B NLGN2 PIK3R1 RAPGEF1 SYNJ2
ABCC4 BLNK CNOT6L ETS1 HIST1H2BC KDR NLK PIK3R2 RB1 TBL1XR1
ABCC9 BRAF COL16A1 EZH2 HIST1H3B KIT NOTCH1 PIKFYVE RGS4 TCF4
ABL1 BRD4 CREBBP FAS HIST1H4I KLHL6 NOTCH2 PIM1 RHOA TEC
ACTB BTG1 CSMD3 FAT2 HIST2H2BE KRAS NOX4 PLCB1 ROBO2 TET2
ACTN1 BTG2 CSNK1D FAT4 HRAS LRP1 NR3C1 PLCB4 ROCK2 TLR2
ADAM10 BTK CTBP2 FBXO11 ID3 LRP6 NRAS PLCD1 ROS1 TMEM30A
AHR CARD10 CTNNA2 FGFR1 IGSF1 LRRC7 NTRK1 PLCD3 RRAGC TNF
AKT CARD11 DCC FLT1 IKBKB LYST TENM4 PLCE1 S1PR2 TNFAIP3
APC CARM1 DCP1B FOXO1 IKZF1 MALT1 OGDHL PLCG2 SALL3 TNFRSF11A
APC2 CCND1 DDX21 FOXP1 IKZF3 MAP2K1 P2RX5 PLCZ1 SEMA6C TNFRSF14
AQR CCND3 DGKZ FYN INPP5B MED12 P2RY8 POT1 SF3B1 TNIK
ARID1A CD22 DHDH GCC2 IRF4 MEF2B PARP1 POU2AF1 SGK1 TNRC6B
ATM CD36 DLC1 GNA13 IRF8 MLL2 PDCD1 POU2F2 SI TP53
ATP11C CD58 DSEL GNAI2 ITGB3 MLL3 PDGFRA PRDM1 SLC17A6 TRAF2
ATP6AP1 CD70 DTX1 GPR112 ITPK1 MLLT6 PDK1 PRKCA SLC30A4 TRIM8
B2M CD79A DUSP2 GRB2 ITPKB MRGPRF PIK3AP1 PRKCB SMARCA4 UBR5
BAP1 CD79B DUSP27 GRIN2A ITPR1 MTOR PIK3C2A PRKDC SOCS1 VAV1
BCL10 CDIPT EBF1 GSK3B ITPR1 MYC PIK3C2G PTEN SP140 WHSC1
BCL2 CDK4 EIF2AK4 HCK ITPR2 MYD88 PIK3C3 PTPN13 STAT3 XPO1
BCL6 CDKN2A EP300 HIST1H1B JAK1 NFKBIA PIK3CD PYHIN1 STAT6 ZMYM3
Outcome/Cell of OriginClinical TargetsAssociated with
BCR/PI3K/WNT pathwayLocated within aberration
(DLBCL only)
In total, 220 genes were selected based on frequency of mutation, theranostic, diagnostic, and prognostic associations as well as their potential to interact with known dysregulated pathways in B-cell lymphoma
INVESTOR PRESENTATION | 2015 CANCER GENETICS, INC. | WWW.CANCERGENETICS.COM | @CANCER_GENETICS 18
FOCUS::LYMPHOMA™ – TARGETED, DISEASE-FOCUSED PANEL
DLBCL
MCLFL
31 MARKERS
25 MARKERS 11 MARKERS
89 1825
1
FOCUS::LYMPHOMA™
220 genes of interest for lymphomasLYMPHOMA PANEL COMPARISONFocus::Lymphoma™ vs. FoundationOne Heme
110110 MARKERS 296 MARKERS
Focus::Lymphoma™
PanelFoundationOne
Heme Panel
• Only 110 of the 220 Focus::Lymphoma™ panel genes are included in the FoundationOne Heme panel
• Many important sets of genes are missing from FoundationOne Heme including:
• BCR Signaling genes (x4)• PI3K Pathway genes (7)
INVESTOR PRESENTATION | 2015 CANCER GENETICS, INC. | WWW.CANCERGENETICS.COM | @CANCER_GENETICS 19
ONCOSPIRE GENOMICS JOINT VENTURE BETWEEN CANCER GENETICS & MAYO CLINIC
• Joint venture based in Rochester, MN
• Goal: to develop tests that will become the gold standard in diagnosing and managing patients with selected disease targets
• Diseases with known clinical dilemmas were selected and informed by clinicians in the Mayo Clinic network
• OncoSpire has the rights to druggable targets that are discovered
SELECTED PROJECTS PIPELINE:
200,000 NEW CASESPER YEAR MULTIPLE MYELOMA
LUNG CANCER
FOLLICULAR LYMPHOMA
1.6M NEW CASESPER YEAR
RESEARCH & DISCOVERY CLINICAL DEVELOPMENT COMMERCIAL DEVELOPMENT LAUNCH & MARKET ENTRY
Q4 2015 Expected Launch
20,920 NEW CASESPER YEAR
INVESTOR PRESENTATION | 2015 CANCER GENETICS, INC. | WWW.CANCERGENETICS.COM | @CANCER_GENETICS 20
Disease Target Collaboration Highlights
Beth Israel Deaconess Medical Ctr DLBCL Biomarker-based outcome prediction
Cleveland Clinic Kidney Cancer Genomic marker validation
Columbia University AML, MDS, and Myeloid Cancers NGS panel development
Dana-Farber Cancer Institute CLL CLL outcome scheme validation
Georgia Regents University DLBCL Diagnosis, prognosis & management
Hackensack University Medical Ctr CLL Further validation of MatBA®-CLL regions
Kamineni Hospital, India Cervical Cancer FHACT® evaluation
Keck Medicine of USC DLBCL Genomic panel evaluation & optimization
Memorial Sloan-Kettering Cancer Ctr CLL, DLBCL, FL, MCL, Kidney Multiple collaborations
Moffitt Cancer Center CINV and PGx Prediction of Side Effects Associated With Chemo
National Cancer Institute Cervical Cancer FHACT® development
North Shore LIJ Health System CLL/SLL CLL/SLL validation & BTK inhibitor resistance
Stanford University DLBCL Risk stratification
University of Alabama Central Nervous System Lymphoma Biomarker investigation
University of Iowa Cancer Center Cervical Cancer, DLBCL FHACT® evaluation & MatBA®-DLBCL validation
Westchester Medical Center Central Nervous System Lymphoma Genomic biomarker identification using UroGenRA®
COLLABORATIONS WITH PREMIER CANCER RESEARCH INSTITUTIONS
INVESTOR PRESENTATION | 2015 CANCER GENETICS, INC. | WWW.CANCERGENETICS.COM | @CANCER_GENETICS 21
CGI’S DISEASE-FOCUSED PATENT PORTFOLIO
Gynecological Cancers & Precancers
Chromosomal Analysis Using FISH
Gene Expression
Renal Cortical Neoplasms
Tissue of Origin
Mature B-Cell Neoplasms
HPV-Associated Cancers
2 US Patents | EU | India | CanadaMature B-Cell Neoplasms
3 US PatentsTissue of Origin*
2 US Patents | EURenal Cortical Neoplasms
13 US Patents | PCT | AU | CA | China | JapanGene Expression*
2 US Patents | CanadaChromosomal Analysis Using FISH
2 US Applications Filed | PCTGynecological Cancers & Precancers
2 US Patents | PCTHPV-Associated Cancers
* Acquired from Response Genetics. Transaction Pending
Through 2031
Through 2030
Through 2029
Through 2027
Through 2023
Through 2022
2 Patents
2 Patents
3 Patents
2 Patents
13 Patents
2 Patents
2 Filed
INVESTOR PRESENTATION | 2015 CANCER GENETICS, INC. | WWW.CANCERGENETICS.COM | @CANCER_GENETICS 22
DIVERSIFIED AND GROWING REVENUE BASE
55% 43%
2%
Full Year2014
$10.2M
70% 25%
5%
1H2015
$8.6M
CGI’s business is not over-dependent on third partyreimbursement. In 1H 2015, Medicare represented 6%and other insurers represented 6% of consolidatedrevenue.
• Entered into partnership with ICON to offer access to ICON Laboratory Services combined with Cancer Genetics' Focus::CLL™ chosen for global clinical trial by leading biotechnology company
BIOPHARMA GLOBAL BIOTECH ANDPHARMACEUTICAL COMPANIES
• Launched new NGS panels, including Focus::Myeloid™ • Entered into preliminary agreement to acquire
Response Genetics (OTCQB:RGDX)
CLINICAL CANCER CENTERS, HOSPITALS, REGIONAL LABS, AND CLINICIANS
• New research studies with leading cancer centers and academic institutions
• Selected by regenerative medicine company, ReproCELL, Inc., to provide (NGS) services
DISCOVERY PRECLINICAL RESEARCH GROUPS AT ACADEMIC,GOVERNMENT & COMMERCIAL ORGANIZATIONS
INVESTOR PRESENTATION | 2015 CANCER GENETICS, INC. | WWW.CANCERGENETICS.COM | @CANCER_GENETICS 23
STRONG RECORD OF CONTINUOUS GROWTH
2011
2012
2013
2014
0
5
10$10.2
$6.6
$4.3
$3.0
$10M
$5M112%BIOPHARMA REVENUE GROWTH FROM 2013 to 2014
TOTAL REVENUE GREW FROM
$6.6M TO $10.2M
54% REVENUE GROWTHFROM 2013 TO 2014
2013 2014
$0M
REVENUE GROWTH BY YEAR
INVESTOR PRESENTATION | 2015 CANCER GENETICS, INC. | WWW.CANCERGENETICS.COM | @CANCER_GENETICS 24
1H 2012
1H 2013
1H 2014
1H 2015
0
$8.6
$2.9$3.1
$2.0
STRONG RECORD OF CONTINUOUS GROWTH
567%BIOPHARMA REVENUE GROWTH FROM 1H 2014
1H TOTAL REVENUE GREW FROM
$2.9M TO $8.6M
191% REVENUE GROWTHFROM 1H 2014
2014 2015
$8M
$4M
$0M
FIRST HALF (1H) 2015 REVENUE GROWTH
INVESTOR PRESENTATION | 2015 CANCER GENETICS, INC. | WWW.CANCERGENETICS.COM | @CANCER_GENETICS 25
PROFORMA REVENUE WITH PROPOSED ACQUISITION
$5.2M ~$38M
ADDITIONAL REVENUE BACKLOG FROMBIOPHARMA TRIALS
1H TOTAL REVENUE WOULD INCREASE$8.6M TO $16.3M
$34M to $40MANNUAL REVENUE RUN RATE
1H 2015 1H 2015 (Proforma)
2013 THRU FIRST HALF (1H) 2015 REVENUE
CGIX RESPONSE
0
5
10
15
20
25
30
FY13 FY14 1H -2015
$26.4MTotal
$26.9MTotal
$16.3M1st Half
$19.8M $16.7M
$7.7M
$6.6M$10.2M $8.6M
INVESTOR PRESENTATION | 2015 CANCER GENETICS, INC. | WWW.CANCERGENETICS.COM | @CANCER_GENETICS 26
STANDALONE SUMMARY STATEMENT OF OPERATIONS SUMMARIZED INCOME STATEMENTS (dollars in thousands)
SUMMARIZED BALANCE SHEET (dollars in thousands)
1H, 2014 1H, 2015REVENUE $2,942 8,555Gross Profit 149 2,316Gross Margin (%) 5% 27%Research & Development 1,703 2,533Sales & Marketing 1,667 2,300General & Administrative 5,127 6,049OPERATING PROFIT (Loss) ($8,348) ($8,566)NET INCOME (Loss) ($6,673) ($9,258)NON CASH ADJUSTMENTS $1,637 $2,812NET INCOME (Loss) EXCLUDING NON CASH ITEMS + ($5,036) ($6,446)
Actual 06/30/15
ALL CASH* $23,744
STOCKHOLDERS’ EQUITY $26,772* All cash includes $6,300 of restricted cash. * $6,000 of that is now unrestricted as of May 7, 2015.* (Cancer Genetics, Inc. 2014 YE 10Q, page 77)
+ This is non GAAP+ measure – see slide 29+ for computation
INVESTOR PRESENTATION | 2015 CANCER GENETICS, INC. | WWW.CANCERGENETICS.COM | @CANCER_GENETICS 27
HISTORICAL CLINICAL REIMBURSEMENT MIX & PAYER COVERAGE
COVERED LIVES REPRESENTED BY RECENT AGREEMENTS WITH NATIONAL INTEGRATED NETWORKS• America’s Choice Provider• Blue Cross Blue Shield of California• Blue Cross Blue Shield of Illinois• Blue Cross Blue Shield of North Carolina• Credentialing Organizations (NCQA, CAQH)• Encore Health Network• Harvard Pilgrim Health Plan • Market-specific Medicaid plans (IL, CA, TX, FL, NY, NJ)• Medicare Railroad• MultiPlan• TRICARE military plan
36%
29%
REGIONALAND NATIONAL
PAYERS
MEDICARE
COMMERCIALPAYERS
CGI PAYMENT HISTORY(CLINICAL REVENUES ONLY)
35%
DIRECT BILL
MORE THAN
50M
INVESTOR PRESENTATION | 2015 CANCER GENETICS, INC. | WWW.CANCERGENETICS.COM | @CANCER_GENETICS 28
EXPERIENCED LEADERSHIP TEAM
Mandar Kulkarni, PhDChief Technology Officer, India
Randy Goodman, PhDDirector, Reimbursement & Clinical Revenue Cycle Management 20+ years of health economics, reimbursement, payer relations experience Healthcare Mgmt Solutions, Scientia Advisors, ImpediMed White House Healthcare Reform Policy Consultant to Presidents Clinton & Obama
Scott Clark, PhDVP, Global QA & Biopharma Development 16+ years at pharma and clinical research companies CAP Biorepository Director and oversees China operations Gentris Corporation founding management team
Rob Fannon, MBA, MPHVP, Biopharma Operations 10+ years operations, client mgmt, and molecular test & panel dev. 5 years in life science and pharmaceutical equity research Roche Molecular Diagnostics, BioServe Biotechnologies, Ltd.
Steve HepburnEVP, Market Development, Biopharma Services 30+ years in the molecular diagnostics & clinical research arena PPD, Omnicare Clinical Research, VivoMetrics, Quintiles Launched Multiplexed ICE COLD-PCR(liquid biopsy platform)
Panna SharmaChief Executive Officer & President, Board Member 15+ years as advisor to global life science & healthcare companies TSG Partners, iXL Enterprises, Interactive Solutions, Putnam Investment
Edward J. Sitar, CPAChief Financial Officer & Treasurer
Rita Shaknovich, MD, PhDGroup Medical Director & VP, Hematopathology Services
Jane Houldsworth, PhDVP, Research & Development 25+ years in translational oncology research MSKCC, CALTECH Principal investigator of multiple Phases & Independent Investigator Award
Greg AshVP, Clinical Market Development 16+ years in the healthcare sector Go Path Laboratories, Response Genetics, Eisai Oncology Launched Halavan (treating metastatic breast cancer) & Marketing for Dacogen (MDS)
30+ years in finance & deal making in the healthcare industry ActiveHealth Management (Aetna), Cadent, MIM Corp, Coopers & Lybrand (PWC) 10 transactions raising $150+ million, 12+ acquisition transactions
5+ years in both clinical (M/Z Dx) and genomic (Sandor LS) development NIH grantee and two Young investigator awards Scientific collaborations, business development, strategic alliances
15+ years in both clinical and research capacities Weill Cornell Medial College, Mount Sinai Hospital, Columbia Presbyterian Hospital,
Albert Einstein Hospital Head of Laboratory at Weill Cornell Medical College Heme Onc. Division
INVESTOR PRESENTATION | 2015 CANCER GENETICS, INC. | WWW.CANCERGENETICS.COM | @CANCER_GENETICS 29
COMPANY FACTS & BOARD OF DIRECTORS
SCIENTIFIC ADVISORYBOARD
Andrea Califano, PhDTimothy Chan, MD, PhDAhmet Dogan, MD, PhDRiccardo Dalla-Favera, MDHoward McLeod, PharmDVundavalli Murty, PhDHans-Guido Wendel, MD
Panna Sharma Michael J. Welsh, MD c, g• Investigator at the Howard Hughes Medical Inst.• Roy J. Carver Biomed Research Chair in Internal
Medicine & Molecular Physiology & Biophysics• Director of Univ. of Iowa Inst. for Biomed Discovery
• CEO & president of Cancer Genetics• General Manager of OncoSpire Genomics• Previously managing partner/founder of TSG Partners• 70+ buy & sell-side transactions (healthcare companies)
Howard McLeod, PharmD g Franklyn Prendergast, MD, PhD a, c, g• Director of Mayo Clinic for Individualized Medicine• Currently on boards of: Translational Genomics
Research Inst.; Infectious Disease Research Inst.;DemeRx, Inc.; Ativa; Eli Lilly & Co.
• Personalized Medicine Medical Director at Moffitt• Founding Director of the Univ. of NC Institute for
Pharmacogenomics (PGx) & Individualized Therapy• 475+ peer-reviewed papers (PGx, applied therapeutics)
Raju S.K. Chaganti, PhD Geoffrey Harris, CFA a• 30+ years experience as healthcare analyst &
portfolio manager for biotech/life sci companies• Portfolio manager/managing partner at c7 Advisors• Previously: Cantor Fitzgerald; Gleacher & Company
• Founded CGI & served as Chairman until 2014• Internat’ly recognized leader in molecular genetics• Co-discovered lymphoma & kidney cancer patents• Incumbent of the William Snee E. Chair at MSKCC
John Pappajohn Non-Executive Chairman Ted Cannon a, c• Founder & President of Clinical Research Center
of Cape Cod• Previously at Franey Medical Labs; Pharmacia
Diagnostics; Alletess
• Involved in 100+ start-up companies• Served as director of 40+ public companies• Currently on boards of: American CareSource
Holdings; ConMed Healthcare Mgmt; CNS Response
For complete bios, see web link below:cancergenetics.com/about-cgi/scientific-advisor/
NASDAQ: CGIX
MARKET CAP: 110.55 M
AUDITORS: McGladrey LLP
LEGAL: Lowenstein Sandler LLP
a: Audit Committee c: Compensation Committee g: Governance and Nominating Committee
INVESTOR PRESENTATION | 2015 CANCER GENETICS, INC. | WWW.CANCERGENETICS.COM | @CANCER_GENETICS 30
CONSISTENT ACHIEVEMENT OF MILESTONES EXPECTED IN COMING QUARTERS
REIMBURSEMENT & MARKET ADOPTION• Increasing covered lives market access through add’l payers & health care organizations• Additional international agreements for FHACT® distribution and co-marketing
partnerships in key geographies
NEXT GENERATION SEQUENCING PANELS• Launching multi-marker NGS panel for lymphoid malignancies• Multiple Myeloma NGS panel launch, Oncospire Second half of 2015
DATA TO SUPPORT PRODUCTS• Lymphoid, Myeloid and CLL Panels - Additional data and results to support clinical usage, patient value and payor coverage• FHACT® - Additional data from a study conducted in conjunction with NCI and more published papers focused on FHACT®,
including a health economic study
BIOPHARMA REVENUES & MARKET SHARE• Additional news on biopharma partners & relationships• Major collaborations with US & Asia biopharma companies
LATE PHASES OF FINALIZING SIGNIFICANT PARTNERSHIPS TO EXPAND BIOPHARMA BUSINESS
INVESTOR PRESENTATION | 2015 CANCER GENETICS, INC. | WWW.CANCERGENETICS.COM | @CANCER_GENETICS 31
CANCER GENETICS, INC. INVESTOR HIGHLIGHTS
Uniquely Positioned to Address Global Market Opportunities in Oncology
3 ACQUISITIONS
$458B GLOBAL ONCOLOGY SPENT BY 2030
Unique &Proprietary Portfolioof GenomicTests & Panels
8 PATENTS
9 TESTS LAUNCHED
Strong & GrowingRelationships withLeading Biotech &Pharma Partners
+650%BIOPHARMACONTRACTS2012-2015
18 RESEARCHCOLLABORATIONS
Innovation &Expertise Drivenby KeyCollaborations
100+ CUMULATIVE YEARSOF EXPERIENCE
World-ClassManagementTeam & ScientificAdvisory Board
55% AAGR
Diversified &High GrowthRevenueStreams
THE ONCOLOGY DIAGNOSTICS PARTNER FROM BENCH TO BEDSIDE
CGI Headquarters201 Route 17 North, 2nd Fl.Rutherford, NJ 07070
Phone: +1 201-528-9200Fax: +1 201-528-9235
RUTHERFORD, NJResearch Triangle Park133 Southcenter Court, S.400Morrisville, NC 27569
Phone: +1 919-465-0100Fax: +1 919-465-0554
RALEIGH, NC#3-1-135 / 1A CNR ComplexMallapur Main Road, R.R. Dst.Hyderabad – 500 076, Telangana
Toll-free: +91 040-2717-8178Fax: +91 040-2717-8176
HYDERABAD, INDIA781 Cai Lun Road, Room 803Shanghai 201203P.R. China
Toll-free: +91 040-2717-8178Fax: +91 040-2717-8176
SHANGHAI, CHINA
WWW.CGIX.COM
WWW.CANCERGENETICS.COM