Molecular Diagnostics –Wall Street Perspective Diagnostic Companies –A Growing Industry Public Companies ARCA, Celera, Clarient, deCODE, Diagnocure, Gen-Probe, Genzyme, Genomic

Molecular Diagnostics – Wall Street Perspective

0

Molecular Diagnostics – Wall Street Perspective

Charles Duncan, Ph.D.Managing Director, Senior Biotechnology Analyst

JMP Securities LLC

JMP Securities LLC

� 47 investment bankers focused on:

� Conflict-free advice

� Long-term relationships

� Since 2001:

� 308 securities offerings for $37.0 billion

� 110 completed strategic advisory assignmentsfor $9.0 billion

� Publicly traded company (NYSE: JMP) with 225 professionals located in San Francisco, New York, Boston and Chicago

� Services provided: capital raising and M&A advisory, equity research, and institutional brokerage and asset management

� Client focus: public and private growth companies and their institutional investor base

Investment BankingFirm Highlights

A Diversified, Stable Platform

1

their institutional investor base

Equity Research

� 24 publishing research analysts

� 300+ stocks under coverage

� Research universe with medianmarket cap of $1.1 billion

� Proprietary investment themes

� Anticipation of change

� Action-oriented reports

Sales & Trading

� 24 salespeople

� 22 traders

� 550+ institutional relationships

� Active in 700+ stocks

� Corporate and venture services

Asset Management

� Harvest Capital Strategies

� $1.1 billion in assets under management

� Seven distinct hedge fund strategies

JMP Securities - Charles C. Duncan, Ph.D.

� Charles Duncan is a Managing Director and senior research analyst covering

the biotechnology industry.

� Prior to joining JMP, Charles served as Director of U.S. Equity Research and as

a biotechnology analyst at Dresdner Kleinwort Wasserstein Securities since July

2001. Charles previously spent a year at Prudential Vector Healthcare Group

and its predecessor, Vector Securities International, as a Senior Vice President

following biotechnology and genomics. Charles began his equity research career

at Tucker Anthony Cleary Gull, where he covered drug development and

therapeutics from March 1997 through May 2000.

� Coverage Universe:

� ACADIA Pharmaceuticals (ACAD)

� Allos Therapeutics (ALTH)

� Alexza Pharmaceuticals (ALXA)

� BioCryst Pharmaceuticals (BCRX)

� Cadence Pharmaceuticals (CADX)

� Celgene Corp. (CELG)

� Cephalon (CEPH)

� Corcept Therapeutics (CORT)

� Celera Corp (CRA)

2

� Charles is a member of the Association for Investment Management Research,

the Denver Society of Security Analysts, was #2 stockpicker for Worldwide

Biotechnology in the 2007 Financial Times analyst ranking, has numerous

Starmine Star Analyst achievements for different covered stocks, and is quoted

broadly in the financial press.

� Charles holds a PhD in pharmaceutical sciences from the University of Colorado

and a BS in zoology/molecular biology from the University of Wisconsin,

Madison. Additionally, Charles carriers Series 7, 24, 63, 86, & 86 licenses, and

has passed the CFA level 1 exam.

� Celera Corp (CRA)

� Cytokinetics (CYTK)

� Genomic Health (GHDX)

� Myriad Genetics (MYGN)

� Oncothyreon (ONTY)

� Orexigen Therapeutics (OREX)

� Osiris Therapeutics (OSIR)

� PDL Biopharma (PDLI)

� Rockwell Medical Technologies (RMTI)

� Sangamo BioSciences (SGMO)

� ZIOPARM Oncology (ZIOP)

JMP’s Biotech and MDx Franchise - IPOs

JMP’s Healthcare Group has been Supporting High Quality IPOs since 2004

Selected IPO ClientsSelected IPO Clients� JMP’s healthcare group is an active underwriter of life sciences IPOs with

13 completed transactions representing nearly $700 million in gross

proceeds

� Currently working on two biotech IPOs targeting 1H:10 pricings

� We specialize in building long-term relationships with high quality

companies and sound financial backers

� As a result, most of the companies we have helped bring to the market

have performed well and we continue to work with them on a regular basis

2007

� Acquired for $720 million

� $550 million market cap

� $300 million market cap� Positive Phase III data

2010

� Phase III trial to be initiated in 2010

3

JMP’s Approach to Life Sciences IPOsJMP’s Approach to Life Sciences IPOs

� We have built JMP’s healthcare group by providing clients with high quality

advice from senior professionals in each division of the firm: banking,

research, capital markets, sales and trading

� JMP has a track record of remaining committed to the life sciences

companies we take public, through positive and negative news

� Our standard advice to potential IPO clients:

� Process begins 1 – 2 years before the IPO: meet with institutional accounts early and

often so that they more easily reach a ‘yes’ decision when the time comes to invest

� Make the IPO a strategic decision, not a financial one: pad your balance sheet prior to

hitting the road to improve pricing leverage and safeguard against market uncertainties

2006

2005

2004

� $375 million market cap� Positive Phase III data

� $450 million market cap� Awaiting FDA approval

� NDA filed

� Acquired by Eli Lilly



� $395 million collaboration with Biovail

JMP’s Biotech and MDx Franchise – M&A

� Top 5 sell-side biotech/pharma M&A advisor in

2008 – 2009

� Senior level leadership and attention on every

deal throughout every stage in the deal

� Deal teams comprised of healthcare industry

M&A bankers – not generalists

� Ongoing proactive dialogue with the relevant

strategic buyers

� Experienced supporting team

JMP is a Leading Life Sciences M&A Advisor

June 2009

Sale to

Recent TransactionsRecent Transactions

October 2009

Merger with

September 2008

Sale to

November 2007

Sale to

December 2009

Merger with

January 2010

Merger with

4

� Experienced supporting team

2008 - 2009 Sell-Side Biotech/Pharma M&A Activity Transaction Values between $20M - $1B

2008 - 2009 Sell-Side Biotech/Pharma M&A Activity Transaction Values between $20M - $1B

Source: SDC PlatinumNote: Transaction timing determined by announcement date; analysis may include transactions announced, but not yet closed* JMP Transactions include: IDM/Takeda, Mirus/Roche, Neuromed/CombinatorX, Intradigm/Silence Therapeutics

3

3

4

4

4

5

Leerink Swann

Morgan Stanley

Lazard

Cowen & Co.

JMP Securities*

JPMorgan

Advisor Transactions

JP Morgan 5

JMP Securities* 4

Cowen & Co. 4

Lazard 4

Morgan Stanley 3

Leerink Swann 3

Top Biotech/Pharma Financial Advisors in 2008 - 2009

JMP’s Biotech and MDx Franchise – MDx

Research Coverage� Myriad Genetics – longest extent coverage on the street

� Genomic Health

� Celera Corp.

� Monogram Biosciences (acquired June 2009)

� Sequenom (dropped coverage October 2009)

IPOs/Follow-on transactions� Genomic Health

5

� Genomic Health

� Myriad Genetics

MDx Revolution driving the Future of Medicine

Molecular Technology� Allows higher sensitivity and specificity

� Analyzes fundamental regulatory molecules: DNA/RNA

Molecular Diagnostics Create Advantages� Prevention: Risk and earlier disease detection

� Profiling: Better interpretation of symptoms

� Personalized Healthcare: Efficient use of therapies

� Predisposition, Prognosis, and Personalization

6

� Predisposition, Prognosis, and Personalization

Trends in Personalized Medicine - 2010

Political - Effectiveness to Cost Effectiveness� WW acceptance: Money spent on healthcare is finite

� Increased emphasis on health technology assessment (HTA)Aim: Increase cost effectiveness of treatments

� Pharmaceutical companies are respondingTrend: Development of companion diagnostics (CDx)to increase cost effectiveness of drugs

Scientific - Therapies to Targeted Therapies� Advancement in understanding of disease processes lead to

target drugs, more closely to specific molecular targets

7

target drugs, more closely to specific molecular targets

� Increasing demand for diagnostic tools to identify patientswith specific disease sub-types, likely to respond to the therapy

Regulatory - Passive to Active Regulation� Regulatory Authorities realized benefits CDx can bring to patients

� Both EMEA and the FDA encouraging pharmaceutical companiesto explore the use of CDx during drug development

� Dx-Rx combination will become an obligate element ofNDA/BLA submission and product labeling

Molecular Diagnostic Companies – A Growing Industry

Public Companies� ARCA, Celera, Clarient, deCODE, Diagnocure, Gen-Probe, Genzyme, Genomic Health,

Genoptix, Interleukin Genetics, LabCorp, Luminex, Myriad, Novartis MDx, PGx Health (CLDA), Qiagen, Response Genetics, Roche, Rosetta

Private Companies� Agendia, Almac, Artemis Health, AssureRx, Aureon, Axial Bio, BG Medicine, Biodesix,

BioMerieux, CardioDx, Crescendo, Diadexus, Endocyte, GeneDx, Glycominds, HistoRx, HX Diagnostix, Interleukin, Liposcience, MolecularMD, Navigenics, Nodality, OncoMethylome, On-Q-ity, Paragon, Precision Therapeutics, Prognomix, Prometheus, Proventys, Rules Based Medicine, Saladex, Somalogic, Tethys, Transgenomic, Veracyte, VitaPath Gen, XDx

Industry Organizations

8

Industry Organizations� Personalized Medicine Coalition� 21st Century Medicine Coalition

Molecular Diagnostics – Current Public Valuations

� Big Range, not all revenue and earnings are created equal� JMP Securities currently makes a market in MYGN, GHDX and CRA shares

Price Market Cap EV CAGR

($MM) ($MM) FY1E FY2E FY3E FY1E FY2E FY3E FY1E FY2E FY3E (FY1-FY3)

Clarient Inc. CLRT $3.43 $301 $291 $114 $137 $160 2.6 2.2 1.9 2.6 2.1 1.8 19%

Cepheid CPHD $18.53 $1,107 $788 $205 $246 $292 5.4 4.5 3.8 3.8 3.2 2.7 19%

Celera Corp. CRA $6.74 $553 $232 $138 $158 $187 4.0 3.5 3.0 1.7 1.5 1.2 17%

Genomic Health Inc. GHDX $13.46 $388 $326 $176 $208 $260 2.2 1.9 1.5 1.8 1.6 1.3 21%

Gen-Probe Inc. GPRO $48.75 $2,373 $1,909 $557 $601 $659 4.3 3.9 3.6 3.4 3.2 2.9 9%

Genoptix Inc. GXDX $14.53 $255 $115 $193 $198 $213 1.3 1.3 1.2 0.6 0.6 0.5 5%

Hologic Inc. HOLX $16.12 $4,178 $5,115 $1,671 $1,750 $1,828 2.5 2.4 2.3 3.1 2.9 2.8 5%

Illumina Inc. ILMN $49.09 $6,101 $5,316 $855 $1,037 $1,199 7.1 5.9 5.1 6.2 5.1 4.4 18%

Luminex Corp. LMNX $16.07 $680 $583 $143 $174 $210 4.8 3.9 3.2 4.1 3.4 2.8 21%

Myriad Genetics Inc. MYGN $16.49 $1,551 $1,063 $393 $433 $497 3.9 3.6 3.1 2.7 2.5 2.1 12%

Mean 3.8 3.3 2.9 3.0 2.6 2.3 15%

Meadian 4.0 3.5 3.0 2.9 2.7 2.4 17%

Revenues Price/Revenue EV/Revenue

Price Market Cap EV CAGR


EBIT Price/EBIT EV/EBIT

9


Clarient Inc. CLRT $3.43 $301 $291 $4 $12 $23 77.5 24.2 12.9 75.0 23.4 12.4 146%Cepheid CPHD $18.53 $1,107 $788 ($11) $12 $38 (103.3) 93.8 28.9 (73.6) 66.8 20.6 NACelera Corp. CRA $6.74 $553 $230 ($32) ($18) ($5) (17.1) (31.5) (119.3) (7.1) (13.1) (49.6) NAGenomic Health Inc. GHDX $13.46 $388 $326 $0 $11 $27 5,878.1 36.4 14.1 4,940.4 30.6 11.9 1940%

Gen-Probe Inc. GPRO $48.75 $2,373 $1,909 $151 $173 $199 15.7 13.7 11.9 12.7 11.0 9.6 15%Genoptix Inc. GXDX $14.53 $255 $115 $35 $35 $41 7.3 7.4 6.3 3.3 3.3 2.8 8%Hologic Inc. HOLX $16.12 $4,178 $5,115 $532 $571 $620 7.8 7.3 6.7 9.6 9.0 8.2 8%Illumina Inc. ILMN $49.09 $6,101 $5,316 $193 $265 $326 31.6 23.0 18.7 27.6 20.1 16.3 30%Luminex Corp. LMNX $16.07 $680 $583 $16 $31 $47 42.2 21.8 14.3 36.2 18.7 12.3 71%Myriad Genetics Inc. MYGN $16.49 $1,551 $1,148 $149 $170 $205 10.4 9.2 7.6 7.7 6.8 5.6 17%

Mean 19.2 17.9 13.5 16.2 15.4 11.1 25%

Meadian 13.1 17.7 12.9 11.1 14.8 11.9 16%

Price Market Cap EV CAGR FCF FCF Yield FCF Margin

($MM) ($MM) FY1E FY2E FY3E FY1E FY2E FY3E (FY1-FY3) LTM LTM LTM

Clarient Inc. CLRT $3.43 $301 $291 $0.03 $0.10 $0.19 103.0 32.9 18.5 136% $2 NA NA

Cepheid CPHD $18.53 $1,107 $788 ($0.20) $0.10 $0.48 (90.5) 177.3 39.0 NA ($3) NA NACelera Corp. CRA $6.74 $553 $232 ($0.28) ($0.09) $0.05 (24.0) (77.5) 143.4 NA ($1) NA NAGenomic Health Inc. GHDX $13.46 $388 $326 ($0.02) $0.29 $0.75 (874.0) 46.3 17.9 NA $5 1.3% 3.1%

Gen-Probe Inc. GPRO $48.75 $2,373 $1,909 $2.17 $2.46 $2.81 22.4 19.8 17.3 14% $111 4.7% 20.7%Genoptix Inc. GXDX $14.53 $255 $115 $1.07 $1.05 $1.11 13.5 13.8 13.1 2% $11 4.4% 5.7%Hologic Inc. HOLX $16.12 $4,178 $5,115 $1.17 $1.28 $1.39 13.7 12.6 11.6 9% $443 10.6% 26.8%

Illumina Inc. ILMN $49.09 $6,101 $5,316 $0.99 $1.33 $1.66 49.8 37.0 29.6 30% $161 2.6% 21.7%Luminex Corp. LMNX $16.07 $680 $583 $0.19 $0.40 $0.69 84.3 40.0 23.2 91% $12 1.8% 9.0%Myriad Genetics Inc. MYGN $16.49 $1,551 $1,148 $1.04 $1.14 $1.28 15.9 14.5 12.9 11% $147 9.5% 40.6%

Mean 33.3 27.1 20.3 26% 5% 18%

Meadian 19.2 26.3 17.9 12% 4% 21%

EPS Price/Earnings

MDx Company Multiples Have Contracted

9.5x

10.3x

8.8x

7.1x 7.3x

5.5x 5.5x

4.1x3.6x 3.5x 3.4x

8.2x

3.4x

9.5x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x

LTM

Rev

enue

Mul

tiple

s(1)

9.5x

10.3x

8.8x

7.1x 7.3x

5.5x 5.5x

4.1x3.6x 3.5x 3.4x

8.2x

3.4x

9.5x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x

LTM

Rev

enue

Mul

tiple

s(1)

10

3.6x 3.5x 3.4x2.6x

3.4x

0.0x

2.0x

4.0x

1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 Today

GPRO MYGN CPHD CRA GHDX GXDX Average

3.6x 3.5x 3.4x2.6x

3.4x

0.0x

2.0x

4.0x

1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 Today

GPRO MYGN CPHD CRA GHDX GXDX Average

(1) Revenue multiples = Average company enterprise values during the quarter / LTM revenue

Source: SEC Filings and Capital IQ

MDx Company Multiples Have Contracted (cont.)

� Reimbursement and regulatory issues have continued to be overhangs for the MDx industry

� Currently, there is not a clear regulatory pathway for MDx and other genetic tests

� Visibility regarding the long-term effects of gene patent litigation is limited

� Concerns regarding the prospects for substantial future growth from the pipeline of MDx

Several industry and company-specific events have caused a gradual contraction in MDx company multiples over the last few years

11

� Concerns regarding the prospects for substantial future growth from the pipeline of MDx companies

� Concerns regarding the delay for selected companies to achieve profitability

Too Many High Profile “Train Wrecks” in last 24 months

Sequenom� Evolving technology platform� Large validation study needed� Fraud

Myriad Genetics� Declining growth� Discretionary products� Reimbursement challenges� Communication failure

Genoptix

12

Genoptix� Revenue decline� Competitive pricing pressure� Discretionary Products

Molecular Diagnostics – The Opportunities

� Focus is on important clinical concern� Robust clinical exist to address the concern� Pharmacoeconomic value created is compelling� Reimbursement/Adoption drivers are clear� Franchise is protectable� Commercialization can drive profitability

Despite the multiple issues currently facing the MDx industry, we believe that MDx companies are attractive to investors, if:

13

Attractive business models may include:� Hybrids consisting of proprietary tests as well as quality laboratory services (CLIA)� Capital equipment/high value analyte model may be acceptable in monogenic, distributed clinical indications

The “Paradigm Setter”

Genomic Heath� High medical utility products� Impacts treatment paradigms� Informs therapeutic outcomes

25

30

140

160

180

14

0

5

10

15

20

4Q05 1Q06 2Q063Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q082Q08 3Q08 4Q08 1Q09 2Q09 3Q094Q09 1Q10 2Q10

Price ($)

0

20

40

60

80

100

120

Sales ($MMs)

Price Sales

Broad Institutional Ownership

Total

Institution(1)

GPRO MYGN CPHD CRA GHDX QDEL CLRT GXDX Exposure

1. Fidelity Management & Research � � � � � � � $387.7

2. BlackRock Fund Advisors � � � � � � � � 330.7

3. Vanguard Group, Inc. � � � � � � � � 261.0

4. Morgan Stanley Investment Management, Inc. � � � � � 233.0

5. Manning & Napier Advisors, Inc. � � 173.3

6. State Street Global Advisors � � � � � � � � 146.8

7. BAMCO, Inc. � � 126.9

8. Columbia Wanger Asset Management LP � � 123.3

9. BlackRock Advisors LLC � � � � � � � � 107.0

10. Champlain Investment Partners LLC � � � 88.9

11. Parnassus Investments � � 85.8

12. OppenheimerFunds, Inc. � � � � � � 83.6

13. Royce & Associates LLC � � � � � 79.6

14. Janus Capital Management LLC � � 72.3

15. Columbia Management Investment Advisers LLC � � � � � � � � 69.3

15

15. Columbia Management Investment Advisers LLC � � � � � � � � 69.3

16. Calamos Advisors LLC � � 58.0

17. Northern Trust Investments � � � � � � � � 57.4

18. Wellington Management Co. LLP � � � � � � 56.1

19. Dimensional Fund Advisors, Inc. � � � � � � � � 52.2

20. AllianceBernstein LP � � � � � � � � 49.7

21. Brown Capital Management, Inc. � � 48.4

22. Perkins Investment Management LLC � � 48.1

23. TimesSquare Capital Management LLC � � � 46.2

24. D. E. Shaw & Co., Inc. � � � � 40.8

25. T. Rowe Price Associates, Inc. � � � � � 39.4

26. Invesco Advisers, Inc. � � � � � � 39.3

27. TIAA-CREF Asset Management LLC � � � � � � � � 37.2

28. American Century Investment Management, Inc. � � � � 33.7

29. Norges Bank Investment Management � � � � � � � 33.6

30. Lord Abbett & Co. LLC � � � 33.2

� Indicates holdings < $10.0 million Total: $3,042.3

� Indicates holdings ≥ $10.0 million

($ in millions)(1) Includes institutions that own two or more of the selected companiesSource: FactSet Systems

Selected Molecular Diagnostics Private Placements

3rd 06/11/10 Predictive Biosciences Develops diagnostic products for informed cancer management. It

specializes in proteomics, diagnostics, oncology, and tumor

biomarkers

ProQuest Investments, Flybridge Capital,

Highland Capital, Kaiser Permanente, New

Enterprise Associates

N/A N/A N/A $25.4 N/A Marketed

3rd 06/04/10 Veracyte Develops diagnostics for thyroid and non-small cell lung cancer Domain Associates, Kleiner Perkins Caufield &

Byers, TPG Growth, Versant Venture

N/A N/A N/A 28.4 N/A Product development

9th 05/25/10 Precision Therapeutics Develops predictive drug response tests that quantifies a cancer

patient's probable tumor response to various chemotherapeutic and

biologic agents

Bain Capital, Adams Capital , Birchmere, Draper

Triangle, Hillman, Longitude, Quaker BioVentures,

TVM

N/A N/A N/A 35.0 N/A Shipping product

4th 05/06/10 CardioDx Focuses on serving cardiologists by offering genomic diagnostics GE Healthcare, Duff Ackerman & Goodrich, KPCB,

Mohr Davidow Ventures, Pappas Ventures, TPG

Growth


2nd 04/08/10 Biocartis Develops diagnostics technology platform for multiplexed detection of

bio-analytes. It focuses on integrated molecular and

immunodiagnostics based on its micro-technology platform

Advent Venture, Aescap Venture, Johnson &

Johnson Development


3rd 03/22/10 Nodality Discovers and develops personal diagnostics characterizing cell

signaling pathways in defined cellular sub-populations of malignant

and normal cells from individual patients

Lab Corp, Pfizer Venture, Kleiner Perkins

Caufield & Byers, Maverick Capital, TPG Ventures


Post $

ValueStage of Development

Prior

Round

Post $

Value

Pre $

Value

Round

Step-upRaisedRound Name Description Round Investor(s)

(1)Close Date

16

(1) Lead investors in boldSource: VentureSource and Company press releases

and normal cells from individual patients

1st 01/20/10 CancerGuide Diagnostics Develops and commercializes genomic-based clinical and

pharmaceutical cancer tests and services

Hatteras Venture Partners, Intersouth

Partners, Lab Corp


2nd 12/31/09 Molecular Biometrics Develops non-invasive clinical tools for use in personalized medicine

to evaluate normal biologic function in health and in disease, and for

drug discovery through pharmacodiagnostics

Oxford Bioscience Partners, Safeguard

Scientifics

$18.8 $21.0 1.1x 12.5 $33.5 Product development

2nd 12/15/09 Molecular Partners Engages in the discovery and development of Designed Ankyrin

Repeat Proteins (DARPins) for therapeutic, diagnostic, and

biotechnological applications

Essex Woodlands Health Ventures, BB Biotech,

Endeavour Vision, Index Ventures, Johnson &

Johnson Development


2nd 12/03/09 Curetis Develops and commercializes tools for diagnosing infectious diseases Aeris Capital, BioMedPartners, KfW

Mittelstandsbank, Life Sciences Partners BV


3rd 11/30/09 Crescendo Bioscience Develops quantitative and objective diagnostic tools to provide

rheumatologists with clinical insights for patients with autoimmune and

inflammatory diseases

Kleiner Perkins Caufield & Byers, Mohr Davidow

Ventures


2nd 11/03/09 On-Q-ity Develops diagnostics tools for the treatment of cancer patients at

various stages of the treatment cycle

Atlas Venture, Bessemer Venture, Mohr Davidow

Ventures, Northgate Capital, Physic Ventures


3rd 11/09/09 Tethys Bioscience Develops novel tests for chronic diseases such as diabetes; offers

PreDx to measure diabetes risk

Aeris Capital, Intel Capital, Kleiner Perkins Caufield

& Byers, Mohr Davidow Ventures, Wasatch

Advisors


2nd 10/27/09 Biodesix Develops and commercializes mass spectrometry-based clinical

diagnostic products to analyze protein content in biological samples

Crabtree Ventures, Individual Investors N/A N/A N/A 10.0 N/A Product development

1st 10/16/09 Integrated Diagnostics Develops diagnostic products that enable physicians and patients to

manage cancer, diabetes, and Alzheimer's through blood tests

InterWest Partners, Wellcome Trust N/A N/A N/A 30.0 N/A Startup

4th 10/5/2009 mtm laboratories Develops and manufactures in-vitro diagnostics systems for the

detection and diagnosis of cervical and cancers

Glide Healthcare Partners, HBM BioVentures,

Heidelberg Innovation, LBBW Venture, Wellington

Partners

N/A N/A N/A $53.5 N/A Shipping product

5th 9/22/2009 Agendia Develops tests that assist healthcare professionals to determine the

diagnosis, prognosis, and therapeutic responsiveness of cancers in

individual patients

Glide Healthcare Partners, Global Life Science

Ventures GmbH, ING Group, Van Herk Group

N/A $159.7 N/A 23.0 $182.7 Shipping product

6th 8/5/2009 XDx Develops and commercializes noninvasive gene expression-based

tests for the monitoring of transplant rejection and autoimmune

diseases

Bristol-Meyers Squibb, Burrill & Company, Duff

Ackerman & Goodrich, Integral Capital Partners,

Intel Capital

N/A N/A N/A 14.4 N/A Marketed

6th 7/31/2009 Pacific Biosciences Develops a transformative single-molecule (SMRT) DNA sequencing

platform, which enables the observation of natural DNA synthesis

Alliance Bernstein, Alloy Ventures, Blackstone

Cleantech, Duff Ackerman & Goodrich, Intel Capital,

Kleiner Perkins

$455.0 455.0 1.0x 68.0 523.0 Product development

2nd 7/1/2009 Helixis Develops advanced nucleic acid analysis tools for research and

clinical diagnostics application

Advanced Technology Ventures, Domain

Associates, Okapi Venture Capital, SVB Capital

N/A 20.0 N/A 10.0 30.0 Product development

5th 9/4/2008 Pelikan Technologies Engages in the development, manufacture, and marketing of hand-

held medical diagnostic and monitoring devices

Bio*One Capital, Clarus Ventures, Global Life

Science Ventures, HBM BioVentures, Mannheimer

Holdings


Round Name Description Round Investor(s)(1)Close Date

Post $

ValueStage of Development

Prior

Round

Post $

Value

Pre $

Value

Round

Step-upRaised

Selected Molecular Diagnostics Private Placements (cont’d)

17

Holdings

3rd 9/4/2008 Pathwork Diagnostics Develops and delivers molecular diagnostics for oncology Abingworth Management, Advent Venture

Partners, Novus, Prospect Venture, Venrock

Associates, Versant


4th 7/17/2008 BG Medicine Engages in the discovery, development, and commercialization of

molecular diagnostics based on biomarkers

Flagship Ventures, GE, Glide Healthcare, Humana

Ventures, Legg Mason, SMALLCAP World

43.0 177.7 4.1x 40.0 217.7 Marketed

2nd 6/30/2008 Crescendo Bioscience Develops quantitative and objective diagnostic tools to provide

rheumatologists with clinical insights for patients with autoimmune and

inflammatory diseases

Kleiner Perkins Caufield & Byers, Mohr

Davidow Ventures


2nd 11/1/2007 Asuragen A RNA-based therapeutic and diagnostics company Growth Capital Investors, PTV Sciences, Telegraph

Hill Partners, Individual Investors


3rd 2/8/2006 Accumetrics Develops and manufactures diagnostic instrumentation and test kits

for platelets function assessment

RiverVest Venture Partners, Essex Woodlands

Health Ventures, Fisher Healthcare, Kaiser

Ventures, KB Partners, PTV Sciences

N/A 35.8 N/A 8.3 44.0 Shipping product

2nd 5/30/2005 InterGenetics Develops molecular diagnostics and targeted therapies for cancer WilMac Health Partners, Swisher Family Trust,

Chisholm Private Capital, Individual Investors

7.5 31.0 4.1x 8.0 39.0 Product development

Later 2/28/2005 Perlegen Sciences Engages in the discovery of genetic variations that provide

physicians with information to improve the clinical decision-making

process

CSK Venture Capital, Affymetrix, BioFrontier

Partners, CMEA Capital, Maverick Capital, MPM

Capital

175.7 180.4 1.0x 74.0 254.4 Clinical Trials

3rd 1/15/2001 Cytocell Provides diagnostic solutions for disease management in oncology

and constitutional cytogenetics.

3i Group, Apax Partners, Gartmore Private Capital 23.5 25.1 1.1x 4.4 29.6 Marketed

Mean $120.6 $122.9 2.1x $26.1 $150.4

Median 33.3 35.8 1.1x 24.0 44.0

High 455.0 455.0 4.1x 74.0 523.0

Low 7.5 20.0 1.0x 4.4 29.6

(1) Lead investors in boldSource: VentureSource and Company press releases

Documents

Molecular Diagnostics –Wall Street Perspective Diagnostic Companies –A Growing Industry Public Companies ARCA, Celera, Clarient, deCODE, Diagnocure, Gen-Probe, Genzyme, Genomic