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Theranos Original Pitchdeck 2006


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Theranos Original Pitchdeck 2006

  1. 1. June 1, 2006 A Presentation For Investors
  2. 2. 2Confidential & Proprietary Theranos, Inc. Our immediate goal is to become the standard for improving the efficacy and risk/benefit and safety profile of every therapy. Initial Market: Phase IV Clinical trials Product Platform: System: Cartridges, Readers, Informatics Service Founded 2003 Menlo Park, CA 50 Employees
  3. 3. 3Confidential & Proprietary Theranos Today 6 Deals, 5 companies: $6-12M for validation phase 6 Phase IVs: $20-$50M each $120 - $300M revenue in next 1.5 years 10 companies and 1 government agency: 15 additional deals $21-52M for validation $300-$750M for phase IVs Existing deals: $120M - $1.5Bn in revenue Improve label, validate efficacy and preempt liabilities
  4. 4. 4Confidential & Proprietary Management Elizabeth Holmes, President and CEO Left Stanford Chemical and Electrical Engineering to found Theranos, also Genencor, Genome Institute Singapore Howard Bailey, CFO Former CFO who took QED and Photon Dynamics public, also CFO Occam, C-Cube, and Controller, Intel Diane Parks, CCO Former Senior Vice President, Biotherapeutics and Managed Care, Genentech, also Vice President, Marketing, Aventis John Howard, Senior VP, Products Former President, Panasonic Semiconductor, also President, IBM Microelectronics Division Dr. Ian Gibbons, Senior Director Assay Development Former Senior Director, Syva, ACLARA, Biotrack, AmCell, First Medical Tim Kemp, Senior Director Informatics Systems Former lead systems engineer, IBM, Embedded Systems Board of Directors: Donald L. Lucas, Chairman of the Board 46-year veteran of the venture capital business Elizabeth Holmes CEO, Theranos Peter Thomas Founder and Managing Director, ATA Ventures; General Partner, Institutional Venture Partners Channing Robertson Stanford Senior Associate Dean of Engineering
  5. 5. 5Confidential & Proprietary What is our system? 0 2E-11 4E-11 6E-11 8E-11 1E-10 1.2E-10 1.00E-12 1.00E-11 1.00E-10 1.00E-09 1.00E-08 Concentration (M) BoundLabel(M) Competitive Two Step
  6. 6. 6Confidential & Proprietary Technology Theranos Products Reagents Motion Control Vacuum Pump Wash 1 Amp Wash 2 Label 1 Label 2 Push Sample Port Test Sites Metering Mixing Separator Vacuum Sensor Sample Vent Valve Multiplex Vent Valve Waste Valves Waste 1 Waste 2 Cartridge Reader Informatics
  7. 7. 7Confidential & Proprietary Theranos ABCS™: Ambulatory BioInformatics Communications System Effective narrow range therapy through post-prescription monitoring of the total available patient base. Telecommunications Videoconferencing
  8. 8. 8Confidential & Proprietary Product Features Use: Simultaneous quantitative measurement of drugs and treatment-related biomarkers Sample Size: 5-10µL of blood Time: Multiplex assays complete in < 30 minutes Calibration/Control: On board with each measurement Operating Principle: Chemiluminescent/Immunoassay Dynamic Range: Low picogram/mL – high microgram/mL Accuracy: Results comparable to “gold standards” Precision: Average total 5-7% Coefficient of Variation or better Data Reporting: Immediate upload from secured server Attractiveness: New assays can be developed and implemented within about three months and can be fully developed at ISO 9000 standards within about six months.
  9. 9. 9Confidential & Proprietary Value Proposition Increase pharmaceutical sales by improving the label of a compound Remove black boxes Safely sell to total available patient base Introduce existing compounds to market (rather than relying heavily on gene sequencing and new discoveries) Increase the number of patients enrolling in trials and reduce drop- outs Increase compliance
  10. 10. 10Confidential & Proprietary First course of infusion chemotherapy with Theranos monitoring First course of treatment (Drug level too high) 0.0 0.5 1.0 1.5 2.0 2.5 3.0 -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 Time, hours Parameter First course dose First course drug level Drug level target Standard dose rate; patient is not eliminating drug rapidly and drug concentration increases over the target level to a toxic level.
  11. 11. 11Confidential & Proprietary Second course of infusion chemotherapy with Theranos monitoring Second course (Drug dose reduced) 0.0 0.5 1.0 1.5 2.0 2.5 3.0 -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 Time, hours Parameter Second course dose Second course drug level Drug level target Same patient, second course of therapy; dose is lowered based on Theranos results >> drug level is at target.
  12. 12. 12Confidential & Proprietary Dose Customization Drug dose adjusted in course 0.0 0.5 1.0 1.5 2.0 2.5 3.0 -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 Time, hours Parameter First course, drug dose corrected in course Drug level Drug level target Same patient but in the first course rapid (within one hour) feedback from Theranos monitor leads to a decision to stop the infusion. Drug level drops from toxic to target.
  13. 13. 13Confidential & Proprietary Real-time PK/PD Monitoring Scenario: Drug effective; Toxicity observed; Dosage reduced; Toxicity resuced to accepatable level 0 0.2 0.4 0.6 0.8 1 1.2 1.4 -10.0 0.0 10.0 20.0 30.0 40.0 50.0 Time, days ParameterValue Drug Dose Drug Level Effect marker Toxicity marker Tox. Alert Level reduced to acceptable level
  14. 14. 14Confidential & Proprietary Total Available Market: Phase IV Clinical Trials Phase IV Clinical Market = $39 Billion per year Number of ongoing trials per year = 600 to 800 Average Theranos Revenue per trial = $50M $7,500 “Information Fee” per patient for every four months Average: 2,000 to 10,000 patients per trial
  15. 15. 15Confidential & Proprietary Total Available Market: Pharmaceutical preclinical market Pre-clinical Market = $10 billion per year $5M annual revenue per research group 133 groups per pharmaceutical company 15 companies of this size Note: These numbers exclude sales to one of the largest preclinical market segments: academic institutions.
  16. 16. 16Confidential & Proprietary Theranos Value Proposition Revenue: Information fee includes use of Readers Cartridges ABCS informatics, patient diary and data integration service 70% margins Requisite solution for improving labels or preempting liabilities Cost to pharmaceutical companies is 20-30% less than current costs of equivalent testing through clinicians office
  17. 17. 17Confidential & Proprietary Pains In The Existing Marketplace Adverse Drug Reactions reduce sales and keep some drugs off the market Pharmacogenomic tests (diagnostics) do not eliminate adverse drug reactions And screen some patients who could safely benefit from a drug No mechanism to measure the effect of environmental factors on drug efficacy No continuous monitoring to determine the correct dosage Current testing procedures too expensive or impossible for some drugs
  18. 18. 18Confidential & Proprietary Theranos Solution Monitoring can take place anywhere and can be done by anyone Monitoring can be as frequent as needed with little increase in cost Results compare to / beat those obtained by a blood lab Results are available in minutes Warning to doctor can be sent within minutes of a test Effectiveness of dose can be monitored in real time Drug-drug combinations can be monitored to improve the label Drugs can be prescribed with monitoring devices to prevent ADRs Instant analysis and availability of related data improve speed and effectiveness of trials Consumer WWW increases value of therapy: Informs patients, drives compliance and increases patient adherence to given drug
  19. 19. 19Confidential & Proprietary Drivers for Success First mover advantage Combination of several different technologies makes reproducing the solution difficult Innovation Pipeline: Next generation systems Strong Customer Base Speed to Market and Focus on Quality Patents Management and Culture
  20. 20. 20Confidential & Proprietary Offering Objective: Pre-IPO transaction to facilitate rapid scaling of Theranos production and manufacturing infrastructure and add to Theranos business development and sales force. CFP Offering: $30M Existing Investors: $15-20M New Investors: $10-15M
  21. 21. 21Confidential & Proprietary Existing Investors Lead investor profiles: Series A Chang,Chang, EsoomEsoom TaipeiTaipei: Multi-billion dollar distribution group; leading distributors of high technology devices in Asia with headquarters in China and in Taiwan. Continental Properties CompanyContinental Properties Company: Fund lead by John Schweitizer and Stephen Feinberg, director of MD Anderson, leading center in innovative cancer treatment, cutting-edge research and clinical trials. Draper FisherDraper Fisher JurvetsonJurvetson: Draper Fisher Jurvetson is a global network of affiliated venture funds with over $3 billion in capital commitments and offices in the major technology centers around the world. Jupiter PartnersJupiter Partners: Fund lead by John Bryan, limited partner in numerous venture capital and private equity funds and leading investor in companies ranging from Amgen to Hewlett Packard. PalmieriPalmieri TrustTrust: Fund lead by Victor Palmieri, business takeover financier; director of numerous high growth companies including Phillips Petroleum, the Pennsylvania Company, Arvida Corporation, Outlet Communications, the William Carter Company, Broadcasting Partners, and Mullin Consulting and a Trustee of The Rockefeller Foundation. Series B Donald L Lucas fund: Premier Silicon Valley venture capital veteran (note biography in board profile document) ATA Ventures (Early Stage Venture Capital) Larry Ellison, Tako Ventures Dixson Doll (Doll Capital Management) Ray Bingham, BJ Cassin, other private equity investors
  22. 22. 22Confidential & Proprietary 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 1 10 100 1000 10000 100000 Concentration of TxB2 (pg/mL) Normalizedresponse Theranos Assay Conventional Assay 0 10000 20000 30000 40000 50000 10 100 1000 10000 100000 Concentrationof TxB2 (pg/mL) Signal(RLU) Sample 4 Sample 5 Calibration 1.0 2.0 3.0 4.0 5.0 1.0 2.0 3.0 4.0 5.0 Spiked Concentration pg/mL (log scale) CalculatedConcentrationpg/mL(logscale) All data Subject 4 Subject 5 Linear (All data) Technology: Theranos System versus Today’s Lab 0.1 1 10 100 1000 10000 100000 0.1 1 10 100 1000 10000 100000 Actual (pg/mL, 4x) Measured(pg/mL,4x) 5N+1 5N-1 5A-1 5F-2 4N+2 4A-2 4N-3 4F-3 Luminometer correlation y = 0.9334x + 0.3992 R2 = 0.9915 R = 0.995 2.0E+00 2.5E+00 3.0E+00 3.5E+00 4.0E+00 4.5E+00 5.0E+00 5.5E+00 6.0E+00 6.5E+00 7.0E+00 2.0E+00 3.0E+00 4.0E+00 5.0E+00 6.0E+00 7.0E+00 Log MD response (counts/sec) LogTheranosResponse(Counts/sec) Luminometer correlation Linear (Luminometer correlation) Upper end of linear range Projected signal modulation of Theranos Chip- based assay in 5 uL volume On chip Chemiluminescence enables greater sensitivity than the clinical lab
  23. 23. 23Confidential & Proprietary 0 2000 4000 6000 8000 10000 12000 1 10 100 1000 10000 100000 Progesterone concentration in diluted sample (pg/ml) Signal Computation of results Measured signal (sent to Theranos server) Dose- response relationship (Factory calibration) Derived concentration Concentration in sample = Signal >> Derived conc. * Dilution factor (fixed) Computation performed at Theranos server Chemistry is calibrated through Theranos server by comparing results on cartridge to known results for calibration wells in database so as to preempt use of environmentally deteriorated cartridges