Genetic Technologies Limited · ASX:GTG
Genetic Technologies — J.P. Morgan Annual Healthcare Conference 2011
30 slides from Genetic Technologies's conference presentation, Jan 10, 2011
Slide 1: ASX Announcement: US investor presentation
For personal use only ASX ANNOUNCEMENT January 10th, 2011 ___________________________________________________________________________________ US investor presentation Genetic Technologies Limited (ASX: GTG; NASDAQ: GENE) is pleased to release the attached investor presentation that will be presented
Slide 2: Genetic Technologies Limited, January 2011
For personal use only GENETIC TECHNOLOGIES LIMITED (NASDAQ: GENE, ASX:GTG) January 2011
Slide 3: Forward Looking Statements
For personal use only Forward Looking Statements This presentation may contain forward‐looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934 with respect to the financial condition, results and business ach
Slide 4: Genetic Technologies Ltd highlights
For personal use only Genetic Technologies Ltd (NASDAQ:GENE, ASX:GTG) Substantial near‐term global growth opportunities in cancer diagnostics Existing annuities & growing revenues from non‐coding DNA IP out‐licensing Increasing substantially through US IP assertion suit Successes in Europe a
Slide 5: Investment Snapshot
For personal use only Investment Snapshot GTG to soon launch world’s first validated test for non‐ familial breast cancer globally: BREVAGen™ has attractive CoGS and rapid payback Purchased all key assets from Perlegen Inc. incl. BREVAGen™ for less than $1.5m during financial crisis, Perlegen
Slide 6: BREVAGen – Launch This Quarter
For personal use only BREVAGen™ – Launch This Quarter Novel, validated non‐familial breast cancer risk test: • Preparing for US launch Q1 2011 • Oct10 JNCI validation study • High profile KOLs engaged • Large validation populations • Substantial global opportunity • US reimbursement strategy in plac
Slide 7: BREVAGen – What it Means Clinically
For personal use only BREVAGen™ – What it Means Clinically Genetic breast cancer prognostic test Test combines population risk factors (Gail Score) with genetic risk factors (7 SNP biomarkers) to give integrated individual breast cancer risk assessment BREVAGen™ is first fully peer reviewed va
Slide 8: BREVAGen Fits Into Existing ASCO and ACS Guidelines
BREVAGen™ – Fits Into Existing ASCO and ACS For personal use only Breast Cancer Guidelines Gail Score 1.6m breast biopsy patients pa (USA) Æ1m patients at indeterminate risk on histopathology BREVAGen re-classifies ~25% of these & thus enables preventive SERM therapy SERMs 69% effective at preventin
Slide 9: Published Validation Paper
For personal use only Published Validation Paper Published, Journal of the National Cancer Institute Oct 2010 First SNP panel prognostic test to secure a pivotal paper in a top tier journal “Combining validated common genetic risk factors with clinical risk factors resulted in modest improvement
Slide 10: Qualified Market Opportunity
For personal use only Qualified Market Opportunity US market for existing breast cancer molecular diagnostics ~$690m* in 2006 & grown ~18% CAGR since Referenced by BRACAnalysis (Myriad Inc) sales ~$260m OncotypeDx (Genomics Health) ~$160m Other players (Genzyme◊, Clarient ◊, etc) made up t
Slide 11: BREVAGen SNP Panel: Discovery & Validation Data Sets
BREVAGen™ SNP Panel For personal use only Large Discovery & Validation Data Sets SNP Discovery Prospective Independent Validation Stage 1: Genotyped 266,722 SNPs in 440 “High‐Risk” Cohort/ # Pts SNPs Studied Association Breast Cancer Cases and 400 Controls Sponsor WHI/ FGFR2, TNRC9, MAP3K1, 3,328 BC
Slide 12: Compelling Pharmacoeconomics
Compelling Pharmacoeconomics For personal use only Presented as a poster ASCO 2010 (Chicago), Archimedes Group + GTG Cost per Quality Intervention Woman’s Age Cost per Life Year Adjusted Life Year BREVAGenTM vs. Gail Alone* 40‐49 $14,300 $3,900** BREVAGenTM vs. Gail Alone* 50‐59 $17,600 $3,800 BREVA
Slide 13: Genetics of Breast Cancer Risk
For personal use only Genetics of Breast Cancer Risk Genes can either be detected as Mutations (BRCA1 & BRCA2) or Single nucleotide polymorphisms, indicating a higher with cancer risk Non‐familial To date; BRCA testing has 80% Hereditary 5% been well utilized yet BRCA 1 the vast majority of
Slide 14: Target Patient Groups
For personal use only Target Patient Groups Three target markets have been identified: 1. BRCA negative patients 80‐90% of BRCA results are negative 2. Breast Biopsy patients ADH/ Patients undergoing are known ALH/ LCIS to have increased breast cancer risk 3. Women over 35 who have a family hi
Slide 15: Stages of Sales Channel Growth
For personal use only Stages of Sales Channel Growth Initial target market Year 1‐3 MD’s with high numbers of BRCA patient tests 80‐90% of BRCA results are negative 1,521 High Value MD/OBGYN’s identified Second target market Year 2‐4 MD’s in Breast Biopsy procedures 1m indeterminate bi
Slide 16: Sales and Marketing Deployment
For personal use only Sales and Marketing Deployment Sales Sales Training Training Class II RM Offers Class I Extended Q4 ‘10 Q1 ‘11 Q2 ‘11 Q3 ‘11 Q4 ‘11 Oct Nov Dec Jan Feb Feb Mar Mar Apr Apr May May Jun Jun Jul Jul Aug Aug Sep Sep Oct Oct Nov Nov Dec Dec Date Month # -3 -2 -1 0 1 1 2 2 33 44 55 6
Slide 17: Business Overview – Licensing
For personal use only Business Overview – Licensing Non‐coding DNA patent estate is one of GTG’s core assets $60m+ licensing revenue received to date Ongoing annuity stream of $9.2m to end of ‘762 patent in 2015 Foundational patent families protecting the use of non‐coding DNA ‘179, “Intro
Slide 18: Licensees
For personal use only Licensees 50+ licensees across range of industries ‐ Many have delivered synergistic business opportunities Agriculture Medical Instruments Research 17
Slide 19: Patent Assertion Program
For personal use only Patent Assertion Program Parties joined suit #1: Partnership with Sheridan Ross PC, a full 9 Beckman Coulter service intellectual property law firm based in 9 Gen‐Probe Colorado 9 Interleukin Genetics IP assertion program activated & first suit 9 Molecular Pathology Laborat
Slide 20: Regulatory & Reimbursement
For personal use only Regulatory & Reimbursement CLIA dossiers submitted – first Australian facilities to service US market Test validation complete with new substrate platform Premier Source (San Mateo, CA) engaged to provide payer management services & reimbursement strategy support : commen
Slide 21: Prominent KOLs Involved
For personal use only Prominent KOLs Involved Kevin S Hughes, M.D., FACS Melanie Bone, MD Surgical Director, Breast Screening Key Opinion Leaders 550 South Quadrille Blvd Ste 201 Co‐Director, Avon Comprehensive West Palm Beach, FL 33401 (KOLs) crucial to Breast Evaluation Center Massachusetts Jona
Slide 22: Infrastructure
For personal use only Infrastructure Genetic Technologies Ltd Fitzroy VIC Australia Technical & corporate support , and globally accredited efficient sample processing. CLIA Cert pending. Phenogen Sciences Inc Charlotte NC USA Sales & marketing, customer support, reimbursement mgt and sample accessi
Slide 23: Competitors
For personal use only Competitors DeCode (Iceland) Launched in October 2008 by deCODE Genetics, no validation deCODE Breast Cancer test assesses a woman’s risk based on 7 common SNPs, ordered only via MDs. Price = $1,650 Emerged from Chapter 11 in April 2010 as a private company (Saga Invest
Slide 24: Oncology Focus
For personal use only Oncology Focus New technologies driving targeted interventions & extending lives Molecular diagnosis of cancer is most attractive segment of the Dx industry Focused market & efficient sales process Strong accelerating growth forecast next 4 years Historical PacRim foc
Slide 25: Cancer Management Strategy
For personal use only Cancer Management Strategy 2005 launch Nov ’09 launch Planned Q1 2011 launch Feb ’10 launch May ’10 launch ‐ Unique portfolio approach ‐ Assembling best in class cancer management tools for PacRim deployment ‐ Developing &/or acquiring products with global protection, applicati
Slide 26: Pacific Rim Business
For personal use only Pacific Rim Business Contracted provider to NSW Police Force for volume crime forensic testing 50+% market share Aust/NZ paternity testing Underwrites Exclusive provider genetic revenues in the testing most PacRim canine short to medium breed clubs term Leading contract
Slide 27: Financial Trends (by quarter)
For personal use only Financial Trends (by quarter) Rising revenues Better cost control Trend to positive cash flows Unaudited forecasts 26
Slide 28: Financial Snapshot Dec 2010
For personal use only Financial Snapshot Dec 2010 Financials (year to Dec31) Share Register (AUD millions) 2010 2009 Shares outstanding 404.6m Operations revenue 5.23 5.38 Top 20 shareholders 76% Licensing revenue 13.62 6.01 Total shareholders 2,850 Net income / (loss) (2.32) (7.85) Options outs
Slide 29: Summary
For personal use only Summary GTG to soon launch first validated test for non‐familial breast cancer globally BREVAGen™ has attractive CoGS, ROI & rapid payback Target market is global, characterized and large Launch in US first quarter 2011 GTG has a sound established business with reliab
Slide 30: Contact Details
For personal use only Contact Details Dr Paul D R MacLeman CEO Genetic Technologies Limited Direct Phone +61 3 8412 7025 Cell +61 419 401 445 (Aust.) (980) 253 4340 (US) Email paul.macleman@gtglabs.com 29
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