Grail, Inc. · NASDAQ:GRAL
Grail — Investor Presentation (January 2016)
17 slides from Grail's investor presentation, January 2016
Slide 1: GRAIL: A Revolution in Early Cancer Detection
GRAIL A Revolution in Early Cancer Detection 1
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This communication contains, and our officers and representatives may make, "forward- looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to known and unknown r
Slide 3: Cancer Is a Leading Cause of Death Worldwide
CANCER IS A LEADING CAUSE OF DEATH WORLDWIDE 14M NEW CASES PER YEAR INCIDENCE INCREASING BY 70% AT LEAST HALF OF US CANCERS 8M DEATHS ANNUALLY OVER NEXT 20 YEARS DIAGNOSED AT STAGE III AND IV SCREENING EXISTS FOR BREAST, SCREENING HAS BEEN SHOWN TO PROSTATE, COLON, LUNG, CERVICAL STAGE-SHIFT CANCER
Slide 4: GRAIL: A new company tackling early cancer detection
GRAIL A new company tackling the early detection of cancer on a global scale MISSION: Enable the VISION: Massively early detection of decrease global cancer cancer in asymptomatic mortality by detection individuals through a at a curable stage blood screen GRAIL IS UNIQUELY POSITIONED TO PIONEER THI
Slide 5: The Early Detection ctDNA Hypothesis
THE EARLY DETECTION CTDNA HYPOTHESIS Very deep sequencing will unlock the ability to screen asymptomatic individuals • ctDNA is a direct measurement of cancer DNA, rather than an indirect measure of the effects of cancer; as a result, it most likely will be superior to other biomarkers • Tumors shed
Slide 6: Deep Sequencing Drives Performance
Deep Sequencing Drives Performance Improves signal-to-noise, making small amounts of ctDNA detectable EXAMPLE: SEQUENCING OF MET AMPLIFICATION ~1% MET ~6600 bp 150X 1,500X 15,000X Relative Sequencing Depth 6 CONFIDENTIAL
Slide 7: Deep Sequencing Enables Detection of Cancer Mutations at Low Levels in Blood
DEEP SEQUENCING ENABLES DETECTION OF CANCER MUTATIONS AT LOW LEVELS IN BLOOD Deep Sequencing Increases the Number of Improved Test Sensitivity When Detectable Mutations Multiple Mutations Are Detectable Lung Breast PAN-12 1000 100% Mutations Detectable Per Patient 80% Test Sensitivity2,3 100 (Median
Slide 8: ctDNA Lung Cancer Research
CTDNA LUNG CANCER RESEARCH Compelling breadth of findings from a single ctDNA assay Oncogenic Driver EGFR KRAS ERBB2 BRAF MET ALK ROS1 Total Alteration detected 45/51 23/23 12/16 3/3 1/1 2/2 3/4 1/2 (n/n) (88%) • 37 gene panel was developed to detect oncogenic driver alterations • No false positives
Slide 9: Vast Market Opportunity for Asymptomatic Screening
VAST MARKET OPPORTUNITY FOR ASYMPTOMATIC SCREENING Base Case Bull Case ctDNA screening ctNA becomes the appropriate for high risk definitive analyte of a individuals biologically significant Assumptions cancer AND defines Most cancers origin of the tumor detectable at stage 2 and later Cance
Slide 10: Vast Market Opportunity for Asymptomatic Screening
VAST MARKET OPPORTUNITY FOR ASYMPTOMATIC SCREENING Base Case Bull Case (All risk levels) Population High-risk patients All-risk patients # Individuals > 70M 387M Test Price $500–$1000 $500–$1000 Test Frequency • Once every 2 years Once every 2 years 10 CONFIDENTIAL
Slide 11: Secured Funding to Drive GRAIL Forward
SECURED FUNDING TO DRIVE GRAIL FORWARD • >$100M Series A • $40M initial investment by Illumina • >50% Illumina ownership • Long-term supply agreement • Significant royalty to Illumina • Illumina owns intellectual property outside of asymptomatic screening 11 CONFIDENTIAL
Slide 12: Features of GRAIL's Products
FEATURES OF GRAIL’S PRODUCTS Universal blood tests with de minimis false positives Free from radiation exposure and invasive procedures No limitation to frequency of screen Potential for rapid global scale Uniquely set up to solve the challenge of early detection, but will not pursue other applicati
Slide 13: GRAIL Financial Impact
GRAIL FINANCIAL IMPACT • $0.15 dilutive to 2016 non- GAAP EPS attributable to Illumina shareholders • 4-year investment • Consolidated into Illumina P&L 13 CONFIDENTIAL
Slide 14: Q4'15 Preliminary Results
Q4’15 Preliminary Results 18% 7% 15% YoY sequential YoY constant growth growth currency ~$590* $539 $539 $550 $512 $481 $448 $421 $M Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 * Q4-15 Revenue results are management’s current estimate and are unaudited 14
Slide 15: Fiscal 2015 Preliminary Revenue
Fiscal 2015 Preliminary Revenue 23% 19% YoY YoY constant growth currency ~$2,218* $1,861 $1,421 $M $1,148 $1,056 $903 2010 2011 2012 2013 2014 2015 * 2015 Revenue results are management’s current estimate and are unaudited 15
Slide 16: 2016 Financial Guidance
2016 Financial Guidance 2016 Revenue1 Assumptions +16% YoY1 GM%2: ~73% NCI4: $30M EPS3 Shares: 149M $3.55 – $3.65 1. Revenue guidance assumes constant currency rates from January 8, 2016; a 1% headwind from currency is included in total company revenue guidance 2. Adjusted non-GAAP excluding stock b
Slide 17: Investing for Long-Term Growth
Investing for Long-Term Growth ~1%2 36%2 ~2%2 $0.10 33%2 $0.15 $3.80 – $3.90 $3.55 – $3.65 FY'16 non-GAAP EPS GRAIL Helix FY-16 non-GAAP EPS Guidance 1 Guidance Core ILMN 1 1. Non-GAAP EPS attributable to Illumina shareholders 2. Adjusted non-GAAP operating margin implied at the mid-point of guidanc