Illumina, Inc. · NASDAQ:ILMN
Illumina — Merger or Acquisition (September 2020)
20 slides from Illumina's merger presentation, Sep 21, 2020
Slide 1: Illumina to Acquire GRAIL: Launching a New Era in Cancer Detection
Illu mina to Acquire GRAILLaunching a New Era in Cancer Detection September 21, 2020
Slide 2: Additional Information and Where to Find It
2 Additional Information and Where to Find ItIn connection with the proposed transaction, Illumina, Inc. (the “Company”) intends to file with the SEC a registration state ment on Form S-4 that will include a preliminary prospectus with respect to the Company’s common stock and contingent value right
Slide 3: Illumina to Acquire GRAIL | New Era in Cancer Detection
3 Illumina to Acquire GRAIL | New Era in Cancer Detection Expands Illumina’s role beyond technology innovator and application enabler, to healthcare diagnostics and testingEnables Illumina to participate more fully in high value clinical market (revenue tied to clinical value, not sequencing output)
Slide 4: Early Cancer Detection Saves Lives
4 Early Cancer Detection Saves Lives Distant Metastases 5-year cancer-specific mortality when diagnosed late 5-year cancer-specific mortality when diagnosed early Localized of cancer-related deaths are in cancers with no recommended screeningSource: SEER Program (www.seer.cancer.gov) *Stat Database:
Slide 5: Beating Cancer Starts with Finding It
Beating Cancer Starts with Finding It Expected LDT Launch 2021 5 1 Based on current trial status 1 Required blood draws 43% Positive Predictive Value (modeled) 44% Sensitivity For All Cancers (Stages 1-3)1 50 Cancers Detected 93% Tissue Of Origin Accuracy >99% Specificity Galleri Will Transform Canc
Slide 6: Blood Testing Can Detect More Cancers Earlier
6 Blood Testing Can Detect More Cancers Earlier 0% 20% 40% 60% with Galleri without Galleri % of Cancers Detected by Stage ~100,000Cancer-Related Deaths1 Stage I Stage II Stage III Stage IVSources: Modeled based on GRAIL’s recent data from ESMO 2019 and SEER cancer registry1Number of US cancer-relat
Slide 7: Galleri Detects More Cancer Types and More Cases
Galleri Detects More Cancer Types and More CasesSignificantly improves cancers types detected early to minimize unnecessary testing Source: GLOBOCAN Estimates; Clarke et al. Cancer Epidemiology, Biomarkers, & Prevention 20207 Increase in Cancer Detection Cancer Detection Cancers Types 5 CancersCurre
Slide 8: Meets Patient, Physician & Payor Needs
8 Meets Patient, Physician & Payor Needs Patients Physicians Payors 1 Diagnostic workup cost per cancer diagnosed could be reduced by 65% when combined with single cancer screening Identifies cancer location to inform next steps Improves outcomes Up to 65% reduction in cost1 Screens for 50+ cancers
Slide 9: NGS Oncology Testing Expected to Reach $75B Market by 2035
9 NGS Oncology Testing Expected to Reach $75B Market by 2035 1Source: Illumina Internal Analysis; Survey Data; Expert Interviews; Secondary Market Research (OECD, Decision Resources Group, GlobalData, IARC, United Nations) 40 10 20 30 50 60 70 2025 2030 2035 Screening Monitoring Therapy Selection 20
Slide 10: Galleri Launch Addresses Large Initial US Market
10 Initial Addressable Market1 Galleri Launch Addresses Large Initial US Market USScreening Market Integrated Health Systems Self-insured Employers Concierge Medicine Accessible prior to reimbursement 1US Census for men and women ages 50-79 Aligned incentives for early adoption Compelling value prop
Slide 11: Key Milestones for GRAIL
11 Key Milestones for GRAIL nd Multi-cancer early detection in asymptomatic people Launch LDTCCGA3 clinical resultsPATHFINDER resultsComplete SUMMIT enrollment Submission of PMAFDA approval DACDiagnostic Aid for Cancer Speed time to diagnosis when cancer is suspected Launch in 2H21 (patients indicat
Slide 12: Combination Accelerates GRAIL's Path to Adoption
12 Combination Accelerates GRAIL’s Path to Adoption GRAIL 2016-2020 GRAIL + Illumina 2021 on Singular focus on detecting cancer early >230 granted patents, >170 pending Preeminent team of data and computer scientists 145K+ clinical trial participants Leverage scale for global commercialization and a
Slide 13: Leveraging Illumina's Strengths to Scale More Quickly
Illumina Today Leveraging Illumina’s Strengths to Scale More Quickly Building on Global Commercial, Clinical, and Operational Capabilities 13 1Some revenue reflects clinical value from end-to-end solutions e.g. VeriSeq NIPT. Platform Technology EnablerClinical Lab Service and IVD PortfolioContinue t
Slide 14: Illumina Will Continue to Enable, Partner & Supply Customers
14 Illumina Will Continue to Enable, Partner & Supply Customers GRAIL will operate as a separate division Existing Illumina business will operate separately Continued access to innovation Support and enable the work of our clinical customers
Slide 15: Illumina to Acquire GRAIL
15 Illumina to Acquire GRAIL + Upfront cash and stock transaction valued at $8.0BGRAIL shareholders will also receive a tiered single digit % of certain product sales over 12 years Expands Illumina’s TAM by $60B+; expands role in clinical marketContributes to revenue growth from 2021 Expected to clo
Slide 16: Transaction Overview and Expected Ownership
16 Pro Forma Financial Outlook Expected Ownership1 1Includes a 15% symmetrical collar. Expected ownership is illustrative at the mid-point.Note: The number of shares issued will be based on the 20-trading day volume weighted average price of Illumina common stock 10 days prior to close. Transaction
Slide 17: From Moonshot Mission to Imminent Commercialization
17 From Moonshot Mission to Imminent Commercialization 2016-2020 employees GRAIL at Inception GRAIL Today invested
Slide 18: Acquiring GRAIL Brings Us Closer Towards Our Mission
18 Acquiring GRAIL Brings Us Closer Towards Our Mission 1998 2006 2013 2020 Microarrays Sequencing NIPT, Genetic Disease, and Oncology Therapy Selection Early CancerDetection
Slide 19: Launching a New Era in Cancer Detection, Together
19 Launching a New Era in Cancer Detection, Together +
Slide 20: Questions
© 2020 Illumina, Inc. All rights reserved. Questions Additional Information and Where to Find It In connection with the proposed transaction, the Company intends to file with the SEC a registration statement on Form S-4 that will include a preliminary prospectus with respect to the Company’s common