Attached files
| file | filename |
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| EX-99.1 - EXHIBIT 99.1 - Vyant Bio, Inc. | a2016q3pressrelease.htm |
| 8-K - 8-K - Vyant Bio, Inc. | a2016q3pressrelease-form8xk.htm |
Q3 2016
EARNINGS CALL
Nov 10, 2016
Cancer Genetics, Inc. | NASDAQ: CGIX | Q3 2016 Earnings Call
Forward-Looking Statements
These slides may contain forward-looking statements within the meaning of the Private Securities Litigation Reform 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, along with other
statements about the future expectations, beliefs, goals, plans, or prospects expressed by management constitute
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 be considered 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 of cancellation of customer contracts or
discontinuance of trials, risks that anticipated benefits from acquisitions will not be realized, uncertainty in the results of
clinical trials or regulatory approvals, need and ability to obtain future capital, maintenance of intellectual property rights
and other risks discussed in the Cancer Genetics, Inc. Forms 10-K for the year ended December 31, 2015 and 10-Q for
the quarter ended September 30, 2016 along with other filings with the 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.
P.2
EVERYTHING WE DO IS FOCUSED
ON 1 KEY IDEA…
…DELIVER INNOVATION & PATIENT
VALUE BY PROVIDING THE MOST
COMPREHENSIVE CAPABILITIES IN
PRECISION MEDICINE FOR
ONCOLOGY DIAGNOSTICS.
Cancer Genetics, Inc. | NASDAQ: CGIX | Q3 2016 Earnings Call
Large, Global Market Opportunities $458B GLOBAL ONCOLOGY SPEND BY 2030
Global Footprint Created by Highly
Strategic M&A
3 TRANSFORMATIVE ACQUISITIONS IN 2014 & 2015
Strong & Growing Partnerships with Leading
BioPharma
CONTRACTS WITH 8 of 10 TOP BIOPHARMA
+650% INC. WITH BIOPHARMA(1) CUSTOMERS 2012-2015
Innovation Engine & Expertise Driven By
Key Collaborations
18 RESEARCH COLLABORATIONS
WITH LEADING INSTITUTIONS
Unique, Proprietary Portfolio of Genomic
Tests & Panels
14 COMMERCIALLY LAUNCHED TESTS
49 US PATENTS AND 95 FOREIGN PATENTS
Diversified & High Growth Revenue Streams 77% Revenue Growth 2014-2015 | 43% 4-YEAR CAGR
World-Class Management Team 100+ CUMULATIVE YEARS OF EXPERIENCE
Investor Highlights: Cancer Genetics Addresses
Key Trends in Oncology from Bench to Bedside
(1) In signed contracts & potential revenue
P.4
Cancer Genetics, Inc. | NASDAQ: CGIX | Q3 2016 Earnings Call
3rd Quarter 2016 Revenue Highlights
68% REVENUE GROWTHFROM Q3 2015
Q3 TOTAL REVENUE GREW FROM
$4.0M TO
2015 2016
$1.5
$4.0
$6.8
$0
$4
$7 3-Year
CAGR
65%
Q
3
2
0
1
4
Q3
2
0
1
5
Q
3
2
0
1
6
P.5
M
M
M
N
u
m
ber
s
in
$
m
illion
s
Year-over-year 3rd Quarter Revenue Growth
Cancer Genetics, Inc. | NASDAQ: CGIX | Q3 2016 Earnings Call
Revenues By Category
BIOPHARMA SERVICES
CLINICAL SERVICES
DISCOVERY SERVICES
65% 29%
6%
Q3
2015
$4.0 Mn
204% increase in clinical test volume over Q3
2015 due to enhanced portfolio in both
immuno-oncology testing and our solid tumor
center of excellence
Driven by support for translational research
and bioinformatics by research organizations
Launched 11 Immuno-Oncology clinical
trials and studies focused on Solid Tumor
and Blood Cancers
$3.8 Mn
$2.7 Mn
$0.3 Mn
56%
40%
4%
Q3
2016
$6.8 Mn
P.6
Cancer Genetics, Inc. | NASDAQ: CGIX | Q3 2016 Earnings Call
Q3 2016 Financial Highlights
Revenues were $6.8 million, a 68% increase over Q3 2015 revenues of
$4.0 million Q2 2016, with Biopharma services contributing $3.8 million,
Clinical services contributing $2.7 million and discovery services contributing
$0.3 million.
Organic revenue growth was 19% when excluding tests and services
performed at the Solid Tumor Center of Excellence, formerly Response
Genetics, Inc.
Q3 2016 Clinical services test volumes increased by 204% to 7,334 over
Q3 2015, driven by an increase in immuno-oncology testing, companion
diagnostic testing for PD-L1 and solid tumor profiling.
P.7
Cancer Genetics, Inc. | NASDAQ: CGIX | Q3 2016 Earnings Call
Q3 2016 Financial Highlights, continued
Gross profit margins improved by $1.4 million or 12%, to $2.3 million or
34% as compared to only $0.9 million or 22% during the 3rd quarter of 2015.
Operating expenses continue to decrease, with an improvement of 6%
over sequential quarters, from Q2 to Q3 of 2016, or $0.4 million, from $6.7
million to $6.3 million.
Operating expenses have decreased 20% over the past 3 quarters, as the
Company progresses towards being profitable.
Total expenses for Q3 2016 were $10.8 million, which includes non-cash
items of $1.1 million and were down 2% from $11.0 million during Q2 and
down 5% from $11.3 million during Q1 of 2016.
Total cash at the end of the quarter was $10.7 million.
P.8
Cancer Genetics, Inc. | NASDAQ: CGIX | Q3 2016 Earnings Call
Path Towards Profitability: Key Trends
3.0
4.0
5.0
6.0
7.0
8.0
Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016
Last 5 Quarters - Revenue and
Operating Expenses*
Revenue Operating Expenses
4.0
5.5
6.1
7.0
6.8
6.5
7.9
7.2
6.7
6.3
* Amounts in $ millions
Post Response
Acquisition
Revenues were $6.8 million, a 68% increase over
Q3 2015 revenues of $4.0 million.
Q3 2016 Operating Expenses were 3% lower than
the standalone expenses in Q3 2015 prior to the
Company’s acquisition of Response Genetics, Inc. in
October 2015.
Response Genetics, Inc. has been fully integrated
into the Company’s operations.
Continued optimization of labor costs across the
enterprise, positively impacting cost of revenue and
G&A expenses through process improvement
initiatives and leveraging India operations.
Negotiating improved purchasing terms for
supplies, reagents and service providers.
Pre-Response
Acquisition
P.9
Cancer Genetics, Inc. | NASDAQ: CGIX | Q3 2016 Earnings Call
Q3 2016 Financial Highlights:
Expenses and Cost Control
Continued optimization of headcount after the
acquisition of Response Genetics, Inc. with a reduction
of 50 full time employee equivalents since Q4 2015.
Headcount reduction resulted in a decrease in
annualized salary expenses of $3.2 million.
The Company continues functional consolidation of
roles and realignment of its sales and laboratory
operations.
Continuing to support and emphasize a collaborative
corporate culture, thru strong employee engagement
and a focus on cross-site projects and activities.
128
191
168
156
141
Q3
2015
Q4
2015
Q1
2016
Q2
2016
Q3
2016
P.10
Full Time Employees and
Equivalents (US)
Response
Acquisition
Cancer Genetics, Inc. | NASDAQ: CGIX | Q3 2016 Earnings Call
Q3 2016 Corporate Highlights
Launched a proprietary comprehensive NGS panel for kidney cancer,
FOCUS::Renal™ with CLIA validation to apply in both clinical care and trials by
biotech and pharmaceutical companies.
FOCUS::Myeloid™ NGS panel for improved diagnosis, risk stratification and therapy
selection in myeloid cancers received New York State Approval for clinical testing.
Announced the acceptance of a presentation at the Companion Diagnostics
Symposium highlighting patient stratification and diagnosis for immunotherapy trials.
Presentation at College of American Pathologists Meeting 2016 on Tissue of Origin.
Three poster presentations at Association for Molecular Pathology Annual Meeting.
P.11
Cancer Genetics, Inc. | NASDAQ: CGIX | Q3 2016 Earnings Call
Q3 2016 Collaboration / Partnership Highlights
Personalized medicine company, ApoCell, Inc., partnered with
CGI to collaborate on transforming cancer profiling and therapy
selection leveraging ApoCell’s proprietary, high-performance
liquid biopsy platform for rare cell capture and detection.
CGI and BARC Global Central Laboratory entered into a
collaboration to offer comprehensive clinical trial and
companion diagnostic solutions for the oncology industry.
Finalizing plans to extend M3P for patient management under
CLIA, a targeted NGS panel for patient stratification and drug
development in multiple myeloma through OncoSpire Genomics,
the Company’s joint venture with Mayo Clinic.
P.12
Cancer Genetics, Inc. | NASDAQ: CGIX | Q3 2016 Earnings Call
Summary Statement of Operations
Income Statement Item
($ in Thousands)
Q3 2015 Q2 2016 Q3 2016
Revenue $4,001 $7,000 $6,750
Gross Profit 898 2,716 2,306
Gross Margin (%) 22% 39% 34%
Research & Development (R&D) 1,802 1,680 1,594
Sales & Marketing (S&M) 1,243 1,379 1,054
General & Administrative (G&A) 3,487 3,658 3,701
Operating Profit (Loss) (5,634) (4,001) (4,043)
Net Income (Loss) (5,212) (4,028) (3,745)
Balance Sheet Information ($ in Thousands) Actual 09/30/16
Cash $10,716
Stockholders’ Equity 27,847
P.13
Cancer Genetics, Inc. | NASDAQ: CGIX | Q3 2016 Earnings Call
Our Three Pillars of Innovation
I. UNIQUE CONTENT
VIA PARTNERSHIPS
& COLLABORATIONS
II. IMMUNO-ONCOLOGY
CAPABILITIES THAT
ARE INDUSTRY LEADING
III. LIQUID BIOPSY
HIGH SENSITIVITY
ANALYSIS CELL-FREE
CTCS AND EXOSOME
• Mayo Clinic
Oncospire Genomics joint venture targeting hematological cancers
• Columbia University
Genomic signatures for myelodysplastic syndromes and AML
• Huntsman Cancer Center & University of Paris
Patient response to kidney cancer frontline therapies
• HTG Collaboration
Expression of genes implicated in patient immune responses to tumors
• Dako / Ventana CDx
Dako 22C3 and Ventana SP263 CDx test for KEYTRUDA®
• Unique Immuno-Oncology Panel via Flow
Commercialization of Comprehensive IO Panel via FLOW Cytometry
• Portfolio Updates
Anticipated launch of focused, multi-gene liquid biopsy tests for lung and
renal cancer in upcoming quarters
• Omcomine™Lung cfDNA Assay
Detection levels down to 0.1% with 90% sensitivity and >98% specificity
for point mutations and indels using only a single blood sample
P.14
WWW.CGIX.COM
WWW.CANCERGENETICS.COM
CGI Headquarters
201 Route 17 North
Rutherford, NJ 07070
Phone: +1 201-528-9200
RUTHERFORD, NJ
Research Triangle Park
133 Southcenter Court
Morrisville, NC 27569
Phone: +1 919-465-0100
RALEIGH, NC LOS ANGELES, CA
1640 Marengo Street
Fourth Floor
Los Angeles, CA 90033
Phone: +1 323-224-3900
#3-1-135/1A CNR Complex
Mallapur Main Road, R.R. Dst.
Hyderabad – 500 076, Telangana
Toll-free: +91 040-2717-8178
HYDERABAD, INDIA
781 Cai Lun Road, Room 803
Shanghai 201203
P.R. China
Toll-free: +91 040-2717-8178
SHANGHAI, CHINA