Next Generation Sequencing is an exciting new technology for diagnostics companies. But is it right for all products and for all companies? This presentation was delivered via Webinar for a IVD audience for Q1 Productions, March 25, 2014.
2. Outline
Asking the right questions: a stair-step approach to product
development and selecting the right technical platform
Focus on novel diagnostics
Key components for success
Case studies
The role of clinical operations
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4. Next Generation Sequencing (NGS)
2013
4Lyssa Friedman3/25/14
Nho, K. et al. Whole-exome sequencing and imaging
genetics identify functional variants for rate of change
in hippocampal volume in mild cognitive impairment
Braggio E, et al. Lessons from next-
generation sequencing analysis in
hematological malignancies
Mille FA, et al. Testing personalized
medicine: patient and physician
expectations of next-generation genomic
sequencing in late-stage cancer care
5. NGS in the news
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Lyssa Friedman
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Mar 17 2014
Mar 18 2014
Jan 14 2014 (Regeneron)
Mar 8 2012 (Complete Genomics)
Jan 26 2014
Oct 24 2013
6. NGS in the regulatory landscape
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First high-throughput DNA sequencing analyzer
to receive U.S. Food and Drug Administration
(FDA) premarket clearance
MiSeqDx
Nov 2013
http://www.illumina.com
7. NGS in the clinic
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• Indication: thyroid cancer
• ThyroSeq – 12 genes
• Ion AmpliSeq™
• Cystic fibrosis (CF), two products:
• CF 139-Variant Assay – 139 variants
• CF Clinical Sequencing Assay – additional variants
• Prenatal testing: verifitest – 7 fetal chromosomal abnormalities
• MiSeqDx
• Two products/indications:
• NeoTYPE MDS/CMML Profile – 16 genes, myelodysplastic
syndrome/chronic myelomonocytic leukemia (MDS/CMML)
• Solid tumor profile – 48 driver genes, multiple tumor types
• 7 common KRAS mutations, multiple cancer types
+ Laboratory Developed Tests (LDTs)
+ New platform for existing clinical indication
± Lower cost of goods sold (COGS)
8. Back to basics:
What is the right tool for the job?
Honda Civic Jaguar XJ
Does the job for the price ✚ ✚
Safe and compliant ✚ ✚
Sexy and stylish ✚
The next best thing ✚
Because I can afford it ✚
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Other
technologies
NGS
✖
Choose the technical platform that suits the
business, clinical and performance needs
9. The tail wagging the dog
Broad clinical question
Target biomarkers
Selected platform
Business case
Clinical need
Reimbursement
strategy
Commercial
strategy
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Avoid retrofitting the business, clinical, reimbursement and
commercial strategies to an early platform or assay decision
10. Instead, follow a stair-step approach
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Business case
Clinical assessment
Biomarker
discovery
Risk assessment
•Technical
•Regulatory
Technical platform
and assay selection
Product
development
Product
launch
11. Setting the stage for successful product
development and launch
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Define
• Market
• Unmet clinical need
• Gold standard
Conduct early discussions
• Regulatory strategy
• Commercial strategy
• Reimbursement strategy
Stay focused
• Clinical indication
• Discovery or in-licensing plan
Remain agnostic regarding technical platform and assay requirements –
choose based on
• Clinical and market needs
• Test performance requirements
• Regulatory risks
• Technical risks
• COGS
Allow the chosen technical platform and assay to serve the clinical,
business, commercial and reimbursement case
12. Consider these key components early
Gold standard
Regulatory strategy
Study design
Publication strategy
Reimbursement strategy
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13. LDT vs FDA
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LDT FDA
Companion diagnostics
✔
Kit for distribution
✔
Sole-source CLIA lab
✔ ✔
14. Define the gold standard
• How do key stakeholders define the gold standard?
– Physician community
– Literature/guidelines
– FDA
– Payers
• Is local diagnosis sufficient or is “expert” diagnosis
needed? For expert diagnosis:
– Individual vs. panel
– Blinded vs. conference
– Expert name recognition
• Apply gold standard label early in the discovery
process – avoid waiting for development phase
– Risk that labels will change changes in performance
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16. Studies Publications Reimbursement
The ACCE Evaluation Process for Genetic Testing
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http://www.cdc.gov/genomics/gtesting/EGAPP/index.htm
http://www.cdc.gov/genomics/gtesting/ACCE/index.htm
• ACCE Model Project:
• Analytic validity
• Clinical validity
• Clinical utility
• Ethical/legal/social
• Publications in these areas
help build the reimbursement
case
Centers for Disease Control (CDC) Office of Public Health Genomics
Evaluation of Genomic Applications in Practice and Prevention (EGAPP™) Initiative
19. Cancer assays
Risk score (continuum)
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•Samples: formalin-fixed paraffin-embedded tissue
•Platform: Reverse transcription polymerase chain reaction (RT-PCR),
mRNA
•Gold standard: centralized pathology
•Regulatory: CLIA LDT
Breast cancer
Risk of
recurrence
21 genes
Colon cancer
Risk of
recurrence
12 genes
Prostate cancer
Disease risk
assessment
17 genes
Bast RC & Hortobagyi. N Engl J Med 2004
20. Genomic Health Company Timeline
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FFPE: formalin-fixed paraffin-embedded; RT-PCR: reverse transcription polymerase chain reaction; NSABP: National Surgical Adjuvant
Breast and Bowel Project; NCI: National Cancer Institute; ASCO: American Society of Clinical Oncology; SABCS: San Antonio Breast Cancer
Symposium; NEJM: New England Journal of Medicine; NCCN: National Comprehensive Cancer Network; DCIS: ductal carcinoma in situ
• Series A
• RNA extraction
protocol
• TaqMan (RT-PCR)
• Proof of concept
• Series B&C
• Commercial
strategy
• Series D
• ASCO,
SABCS
• Clinical
validation
• CLIA lab
• Breast assay
launch
• Clinical
validation
publication
(NEJM)
• Economic/cost
effectiveness
publication
• IPO
• Medicare
• Aetna
• Colon assay
development
• United
Healthcare
• NCCN
guidelines
• Colon assay
clinical
validation
• Breast assay
clinical utility
publications
• Colon assay
launch
• Social media
campaign
• Prostate
program
• Smartphone
app
• Breast NGS
data
• DCIS test
launch
• Prostate
clinical
validation
• NGS in
development
2000 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13
• Prostate
launch
http://www.genomichealth.com, http://www.oncotypedx.com
21. Suspicious thyroid neoplasm
Benign vs continued suspicious
result
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Thyroid neoplasm with
indeterminate cytopathology
142 genes
•Samples: RNA-preserved fine needle aspirate biopsy
•Platform: Custom microarray (Affymetrix), mRNA
•Gold standard: centralized pathology
•Regulatory: CLIA LDT on FDA-cleared microarray platform
Alexander EK, et al. N Engl J Med 2012
23. Fetal chromosomal abnormalities
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(Verinata)
Blood screen
7 fetal chromosomal abnormalities
•Samples: maternal blood
•Platform: massively parallel sequencing (MPS) of maternal plasma
cell-free DNA (cfDNA)
•Gold standard: previously existing and accepted prenatal aneuploidy
screening
•Regulatory: CLIA LDT on FDA-cleared DNA sequencing analyzer
Bianchi DW, et al. N Engl J Med 2014
24. Verinata Company Timeline
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• Stanford license
• Clinical validation
publication
• Clinical utility publication
• Name change (fr. Artemis
Health)
• Series C
• Launch
• Product expansion
• Cost effectiveness
publication
• Fundraising
• Series D
• Acquisition (Illimuna)
2009 2011 2012 2013 2014
• Clinical validation
publication (NEJM)
http://www.illumina.com, http://www.verifitest.com
25. Poised for success:
Stay laser-focused on goals
Take a stair-step approach
Novel diagnostics
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26. Goals
Staying on target is a continuous process
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Clearly define
•Success
•Milestones
•Timelines
•Risks
Stay
•Focused
•Flexible
•Nimble
Communicate with transparency
•Speedbumps
•Roadblocks
•Brick walls
Mitigate risk
Question assumptions (avoid drinking the Kool-Aid)
Learn quickly from failures
27. Successful companies choose the technical platform
that suits business, clinical and test performance needs
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Business case
Clinical assessment
Biomarker
discovery
Risk assessment
•Technical
•Regulatory
Technical platform
and assay selection
Product
development
Product
launch
While managing many of these processes
non-sequentially and simultaneously
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Business case
• Market
– Who are your key customers?
– What is the clinical indication?
– Where is your geographical target over the next 3 years? 5 years?
10 years?
– What is the payer landscape?
• Early consideration of risks
– Who are your investors?
– What return do your investors expect on their investment in 3 years?
5 years? 10 years?
– Who are your competitors?
– What is the regulatory landscape? Potential minefields?
– What is the technical landscape? Potential minefields?
29. • Performance requirements and gold standard
– What does the market need in order to trust the test
• Equipment and reagents
– How competitive is the space? FDA-cleared vs.
research use only (RUO)? How will this affect
• Supply agreements: cost, room to negotiate
• Reagents: cost, availability, stability, need for verification
• Software verification and validation (V&V)
– What capital purchases and internal resources are
needed?
– How will V&V affect time and cost?
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Business case, cont’d
30. • Unmet clinical need
– What is the unmet clinical need?
– What are the pain points? How can you ease your
physician customer’s pain?
– What is the current clinical workflow? How can you
minimize disruption of that workflow?
– What will it take to engender physician trust in your
test? Performance? Gold standard? Publications?
Guidelines? Influential KOLs? FDA-clearance?
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Clinical assessment
31. • Gold standard
– Is there label consistency from discovery through
development?
– Is there stakeholder buy-in for the gold standard?
• Physician community
• Literature/guidelines
• FDA
• Payers
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Clinical assessment, cont’d
32. • Target sample: lessons learned from prospective
sample collection
– How are they collected and handled?
– Where are they collected? Clinic, radiology, pathology?
– What is the impact on sample collection on the patient?
Special procedures, extra visits, discomfort, anesthesia?
– How disruptive will collection and handling be to current
workflow?
– Will special training be needed?
– Will special storage facilities be needed?
– How many specialties will need to be involved? Clinic
physician, radiology, pathology?
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Clinical assessment, cont’d
33. • KOLs – how are they selected and engaged?
– Protocol development
– Development of key clinical questions
– Publications
– Guideline committees
– Influence: US/ex-US
– Study participation
• Non-KOL investigators
– Peer influence
– Early adopters
– Patient population
– Clinic access - workflow
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Clinical assessment, cont’d
35. Disease
Test Present Absent Total
Positive
True positive
A
False positive
B
A + B
Negative
False negative
C
True negative
D
C + D
Total A + C B + D A + B + C + D
Sensitivity
A
A+C
Probability test positive when disease present
Specificity
D
B+D
Probability test negative when disease not present
Positive predictive value
PPV
A
A+B
Probability disease present when test positive
Negative predictive value
NPV
D
C+D
Probability disease absent when test negative
Prevalence
A+C
A+B+C+D
Performance requirements: what type of test?
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36. Performance requirements: things to
think about
• Will the test performance lead to actionable
patient results?
– What difference does the test make?
• What performance will the community
accept?
– What are the barriers to uptake? How much
education will the community need in order to
understand test performance?
• How well does the gold standard perform?
– The test cannot outperform the gold standard
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37. Publication and reimbursement strategy
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Publications
Protocol
Clinical validation study
Recognized gold standard
Independent test set
Clinical
validity
Analytic
validity
Clinical
utility
Clinical
guidelines
Positive
coverage
decisions
39. • Use same gold standard from discovery through
development
– Changes can affect test performance
• Continue other activities in parallel
– Stability and kit testing
– Planning: validation, product development,
reimbursement, publication and commercial
strategies
• Ongoing and continuous risk assessment with
focused and aggressive timelines
– Building the bicycle while riding it (downhill at 60
mph!)
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Biomarker discovery
40. • Will platform change from discovery to
product development? If so, anticipate
changes, with associated delays, to
– Gene set
– Equipment and reagents
– Algorithm development
– Test performance
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Technical risk assessment
41. • LDT vs FDA clearance
– LDT
• CLIA lab: buy or build?
• Equipment
• Documentation
• Staffing
– FDA
• Documentation – design control
• Early meetings with agency
• Kit and partnership strategies
• Equipment and reagents
– FDA-cleared vs RUO
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Regulatory risk assessment
42. • Clearer platform decision at this stage with
a stair-step approach
– FDA-cleared vs. RUO
– Reagents
– Cost of goods
– Regulatory pathway
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Technical platform and assay
selection
43. Technical platform: you get what you
pay for
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Data
Development
costs
44. What assay and technical
platform?
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RT-PCR: reverse transcriptase polymerase chain reaction; FISH: fluorescent in
situ hybridization; SKI; spectral karyotype imaging; cDNA: complementary DNA
Genomic information Indications
PCR
Multiple copies of targeted DNA
sequence
Large DNA targets
RT-PCR Amplified RNA
RNA viruses
mRNA or large DNA translocations
qPCR Real-time PCR
Real-time quantification of multiple
copies
FISH
Oligonucleotide probes attached to
cDNA target
Oncogene amplification, translocations
Microarrays Thousands of transcripts and probes
Gene expression “fingerprints”
Single nucleotide polymorphisms
(SNPs)
Sequencing Precise order of nucleotides within DNA
Molecular biology, evolutionary biology,
metagenomiccosts
Netto GJ, et al. Proc (Bayl Univ Med Cent) 2003
45. NGS: things to think about
• Equipment is costly – can it be leveraged
across projects in lab?
• Computational challenges
– Sequencing produces raw data requiring
assembly into longer sequences
– Sequences may not be assigned to specific
chromosomes
• When transferring existing assay to new
platform full validation is needed – technology
transfer not sufficient
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46. • Transfer assay from R&D – conduct studies
on platform to be used commercially
• LDT: conduct studies in CLIA lab by approved
personnel
– Stability – collection, handling transport
– Analytic sensitivity – input, dilution
– Analytic specificity – interfering substances
– Assay robustness
– Reproducibility
– Limits of detection
– Quality control
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Product development
47. • Clinical sites = early adopters
• Partner with commercial group for
knowledge transfer
– Customer pain points and workflow
– Nuances of patient population and physician
specialty
– Key contact people at customer sites
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Product launch
49. Clinical operations: not just for accruing
samples…
Sample accrual
Pristine annotation
Gold standard labels
Thorough data management and data auditing
Prospective protocols conducted according to Good Clinical
Practices
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50. …We are the first ear to the voice of the
customer and thus a key to success
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• Articulate the clinical question
– Unmet need
– Pain points
– Workflow challenges
• Define the gold standard
• Grow influential KOL relationship, which are critical to
– Publications
– Physician uptake
– Guideline acceptance
• Cultivate PI/site relationships: early commercial adopters
• Develop critical protocols
• Assess and mitigate risk
• Define clinical utility
• Publish abstracts and manuscripts that drive guideline and
physician uptake and reimbursement