Q4 & Full Year 2017 Earnings Report & Company Updates

Transcription

1 webcast link: Q4 & Full Year 2017 Earnings Reprt & Cmpany Updates Mnday April 2, :30pm Eastern

2 Frward-Lking Statements These slides may cntain frward-lking statements within the meaning f the Private Securities Litigatin Refrm Act f All statements pertaining t future financial and/r perating results, future grwth in revenues, margins, research, technlgy, clinical develpment and ptential pprtunities fr Cancer Genetics, Inc. tests and services, alng with ther statements abut the future expectatins, beliefs, gals, plans, r prspects expressed by management cnstitute frward-lking statements. Any statements that are nt histrical fact (including, but nt limited t, statements that cntain wrds such as "will," "believes," "plans," "anticipates," "expects," "estimates") shuld als be cnsidered t be frward-lking statements. Frward-lking statements invlve risks and uncertainties, including, withut limitatin, risks inherent in the develpment and/r cmmercializatin f ptential prducts, risks f cancellatin f custmer cntracts r discntinuance f trials, risks that anticipated benefits frm acquisitins will nt be realized, uncertainty in the results f clinical trials r regulatry apprvals, need and ability t btain future capital, reimbursement risks fr new tests, maintenance f intellectual prperty rights and ther risks discussed in the Cancer Genetics, Inc. Frm 10-K fr the year ended December 31, 2017 alng with ther filings with the Securities and Exchange Cmmissin. These frwardlking statements speak nly as f the date heref. Cancer Genetics, Inc. disclaims any bligatin t update these frward-lking statements.

3 EVERYTHING WE DO IS FOCUSED ON 1 KEY IDEA.. DELIVER INNOVATION & PATIENT VALUE BY PROVIDING THE MOST COMPREHENSIVE CAPABILITIES FOR PRECISION ONCOLOGY DEVELOPMENT.

4 Revenue & Grwth Highlights Q4 REVENUE Amunts in $ millins 4-Year CAGR 17 % $5.5M $7.2M $7.5M FULL YEAR REVENUE Amunts in $ millins 4-Year CAGR 30 % $18.0M $27.0M $29.0M $4.0M $10.2M Q Q Q Q

5 Revenues by Market & Custmer Categry 50 % 37 % FY 2017 $ 29.1M 13 % $ 14.6M $ 10.8M $ 3.7M BIOPHARMA SERVICES Supprts 224 clinical trials and studies fcused n Slid Tumr and Bld Cancers, including 59 fr immun-nclgy indicatins. CLINICAL SERVICES 9.6% increase in test cunt year ver year, t ver 31 thusand tests perfrmed driven by cmprehensive test prtfli including immun-nclgy and liquid bipsies. DISCOVERY SERVICES Supprting hundreds f clinical trials in 2017, driving supprt fr mlecular testing and biinfrmatics fr pre-clinical initiatives and therapeutic discvery.

6 2017 Accmplishments Integratin f vivpharm GITR IHC Validatin Liquid Bipsy fr Lung Cancer Launch FxP3 IHC Validatin AntigenID fr Immun-Onclgy Launch VENTANA anti-alk (D5F3) IHC Validatin Fcus::Myelma NGS Panel Validatin [May] PD-L2 IHC Validatin NAPRT Methylatin Assay Validatin LAG3 IHC Validatin Validatin f multiple Receptr Occupancy by Flw Cytmetry Tests MDSC detectin by Flw Cytmetry Assay Validatin Multiplex IHC Assay Optimizatins New CD138+ Plasma cell Enrichment Assay EGFR FISH Validatin

7 Full Year 2017 Financial Highlights FY 2017 revenues were $ 29.1 millin, as cmpared t FY 2016 revenues f $ 27.0 millin. Cmbined revenue frm Bipharma Services and Discvery Services represented 63 % f ttal revenue in Ttal perating expenses were increased apprximately $ 3 millin t $ 29.7 millin fr full year 2017, impacted by $5.3 millin in bad debt expense. Grss margin percentage imprved t 37.9 % cmpared t 36.8 % in the same perid last year, an imprvement f 1.1 percentage pints. Sales and Marketing expenses increased by 6 % t $ 5.0 millin frm $ 4.7 millin. Net lss fr the year was $ 20.9 millin, r $ 1.01 per share, cmpared t a net lss f $ 15.8 millin, r $ 1.00 per share, in Cash and cash equivalents was $ 9.5 millin, net f $ 0.4 millin in restricted cash, as f December 31, Cancer Genetics, Inc. NASDAQ: CGIX Q4 & FY 2016 Earnings Call

8 Q Financial Highlights Revenues f $7.5 millin, 4% increase r $ 0.3 millin ver $ 7.2 millin in Q Bipharma Services revenue ttaled $ 3.5 millin cmpared t $ 4 millin during Q Clinical Services revenue ttaled $ 1.9 millin cmpared t $ 3 millin during Q Discvery Services revenue ttaled $ 2.1 millin cmpared t $ 0.3 millin during Q Ttal Operating expenses were $11.8 millin, an increase frm $6.5 millin during Q4 f 2016, and was largely driven by bad debt expenses f $4.4 millin in Q4. Net lss was $ 7.9 millin, r $ 0.35 per share fr Q4 2017, cmpared t a net lss f $ 2.8 millin r $ 0.15 per share fr Q4 2016, primarily impacted by the $ 1.6 millin in revenue reductin and additinal $ 4.4 millin in bad debt expense.

9 Summary Statement f Operatins Incme Statement Items ($ in Thusands) Q Q FY 2016 FY 2017 Revenue $7,230 $7,523 $27,049 $29,121 Grss Prfit $2,958 $2,284 $9,945 $11,051 Grss Margin (%) 41% 30% 37% 38% Research & Develpment (R&D) $1,161 $1,709 $5,967 $4,789 Sales & Marketing (S&M) $937 $1,553 $4,668 $4,990 General & Administrative (G&A) $4,357 $8,537 $16,034 $19,894 Operating (Lss) ($3,497) ($11,799) ($16,724) ($18,622) Net (Lss) ($2,776) ($7,901) ($15,803) ($20,880) Change in Fair Value f Derivative Securities $829 $2,035 ($1,677) $2,006 Adjusted Net (Lss) (nn GAAP)+ ($1,947) ($5,866) ($17,480) ($18,874) +This is nn GAAP measure. The abve table represents nn-gaap measures that management believes, given its magnitude, represents its earnings per share as unaffected by nn-perating valuatin adjustments t derivative instruments resulting frm the Cmpany s change in its share price, amng ther related factrs.

10 Bitech and Pharma Highlights: Strng Year ver Year & Quarterly Prgress TOTAL ACTIVE PROJECTS ACTIVE I/O PROJECTS BOOKINGS TO BILLING RATIO Q Q Q Q Q Q Q Q Q ANNUAL PROGRESS 137% increase in bipharma prjects frm 125 t 297 prjects Over 3-fld increase frm 18 t 88 immun-nclgy prjects Bipharma bkings t billing rati f 1.5 n $5.28M f Q bkings QUARTERLY PROGRESS 75% increase in bipharma prjects frm 170 t 297 prjects 72 additinal immun-nclgy prjects with bipharma partners, many with cmbinatin trials Recrd quarterly bipharma bkings f $5.28M, up 11% year ver year expected t drive future revenue CGI vivpharm

11 Industry Leading Capabilities in Expanding Field f Immun-Onclgy NEW SERVICE OFFERING Launched Neantigen Identificatin Service t Accelerate Immun-Onclgy Drug Identificatin, Develpment and Repurpsing Based n neantigen identificatin technlgy utilizing unique and cmprehensive sequencing cmbinatins and sphisticated biinfrmatics algrithms and cmputatinal wrkflws. Identificatin f the right set f neantigens that are ptent and generate a rbust respnse will significantly increase the effectiveness f IO therapies. Predict patient-specific immune therapy respnse, and help create persnalized immun-vaccines. Pathlgy Histlgy AntigenID NGS: Exme / Onclgy Panel Identify Smatic Mutatins TMB & MSI Cnfirm Expressed Smatic Mutatins NGS: Whle Transcriptme Cnfirm by Sanger HLA Type Epitpe Predictin Immune Repertire (PMBCs) KEY: DNA Analysis RNA Analysis Biinfrmatic Analysis Neantigen Validatin Immun-Onclgy Therapy & Drug Develpment Expected t Grw t Nearly $120 Billin by 2021 MarketsandMarkets Glbal Frecast t

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