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Gerry Higgins, Ph.D., M.D.
Vice President, Pharmacogenomic Science
AssureRx Health, Inc.

AssureRx Health, Inc.                     CONFIDENTIAL   1
» The Human Genome
» Explosive Growth in Sequence Data
» The ‘Big Data’ Problem
» The ‘Diminishing Discovery’ Problem
» Human Genome Variation and Pharmacogenomics
» Evolution of next generation sequencing (NGS)
  technology
» Future Trends

 AssureRx Health, Inc.                      CONFIDENTIAL   2
AssureRx Health, Inc.   CONFIDENTIAL   3
The Human Genome

                           • ~3.2 billion base pairs1


                           • 22,500 ± 2,000 genes2 (= ~1.3% 0f genome)



                           • 100,000 – 500,000 proteins, depending on
                             tissue3
1InternationalHuman Genome Sequencing Consortium. Finishing the euchromatic sequence of the human genome.
Nature 2004, 431, 931-945.
2Pertea  M and Salzberg SL. Between a chicken and a grape: estimating the number of human genes. Genome Biology
2010, 11:206.
3RamsköldD et al. An abundance of ubiquitously expressed genes revealed by tissue transcriptome sequence data.
PLoS Computational Biology 2009 5(12).

   AssureRx Health, Inc.                                                               CONFIDENTIAL       4
The Human Genome - Regulation




AssureRx Health, Inc.                         CONFIDENTIAL   5
The Human Genome - Regulation
                  Example: Alternative splicing of mRNAS
                          Mechanisms                        Percentage of alternatively-spliced genes1


                                                                                                = 48%



                                        = 16%                                                   = 16%


1Yeo   g et al. Variation in alternative splicing across human tissues. Genome Biology 2004, 5:R74.

  AssureRx Health, Inc.                                                                          CONFIDENTIAL   6
The Human Genome - Regulation
               Example: Brain-specific methylation patterns1
• As determined by Methylated DNA immunoprecipitation (MeDIP)
   – genome-wide methylation analysis
• CpG Islands (CGI) tend to be the most highly methylated regions of the genome –
   GC-rich promoters of genes tend to be the most hypo-methylated GC sequences
• The most methylated regions of the genome are related to genes involved in brain
  development – BDNF, CACNA1A and CACNA1F (calcium-channel genes involved in
  neuronal growth and development and controlling the release of neurotransmitters),
  and GRIK5 (a receptor for the excitatory neurotransmitter glutamate).
          Unsupervised hierarchal cluster analysis (a statistical measure of the difference between values)

          Cerebral cortex                                                  Cerebellum            Blood




1Davies M et al. Functional annotation of the human brain methylome identifies tissue-specific epigenetic variation
across brain and blood. Genome Biology 2012, 13:R43.
   AssureRx Health, Inc.                                                                  CONFIDENTIAL        7
The Human Genome - Regulation
     Example: Interactome – Variants in Genes in the Same Pathway
                   Predict Susceptibility to Disease1,2
                                                                         Major Depressive Disorder:
                                                                           GENE               SNP
                                                                           PDE6C              rs7903947
                                                                           BDNF               rs7927728
                                                                           GHRHR              rs2228078
                                                                           PSMD9              rs1168658
                                                                           HSD3B1             rs2208382




1Wong  M-L et al. Prediction of susceptibility to major depression by a model of interactions of multiple functional
genetic variants and environmental factors. Molecular Psychiatry, 2012 17:624-633.
2 Barrenas F et al. Highly interconnected genes in disease-specific networks are enriched for disease-associated

polymorphisms. Genome Biology 2012, 13:R46.

   AssureRx Health, Inc.                                                                   CONFIDENTIAL        8
AssureRx Health, Inc.   CONFIDENTIAL   9
Explosive Growth in Sequence Data




           As the cost of DNA sequencing falls,
 the growth of human genome data becomes exponential

AssureRx Health, Inc.                           CONFIDENTIAL   10
The ‘Big Data’ Problem




                                           Lee Hood, IOM February 27, 2012
AssureRx Health, Inc.                               CONFIDENTIAL      11
The ‘Big Data’ Problem
                                     “The world is shifting to an
                                  innovation economy and nobody
                                    does innovation better than
                                             America.”
                                    —President Obama, 12/6/2011


                                  Pillers of Bioeconomy R&D:
                                        1) Synthetic Biology
                                        2) Proteomics
                                        3) Information Technology—
                                               Bioinformatics &
                                            Computational Biology


AssureRx Health, Inc.                               CONFIDENTIAL   12
The ‘Diminishing Discovery’ Problem




AssureRx Health, Inc.                            CONFIDENTIAL   13
The ‘Diminishing Discovery’ Problem
  FDA’s Solution: Adaptation in the Pre-Competitive Space
SCREENING TRIAL                              Achieve surrogate
Investigational drugs                       end point predictive             Promising drug candidate
                                             of clinical outcome
 & associated PGx markers                                                    & associated PGx marker


CONFIRMATORY TRIAL
                                                  Replicate                   Achieve clinical outcome
                                                surrogate end                 (regulatory standard for
Promising drug candidate
                                                    point                          FDA approval)
& associated PGx marker


FDA APPROVAL
                                 Accelerated drug approval with
                                                                                   Full drug approval
                                   approval of PGx biomarker


*Slide adapted , with permission, from Janet Woodcock and Issam Zineh, CDER, FDA

  AssureRx Health, Inc.                                                               CONFIDENTIAL   14
The ‘Diminishing Discovery’ Problem
        Pre-Competitive Collaboration: Solution for Pharma

•       Share use cases/questions – gaps in current tools
•       Identify common solutions & options
•       Share development risk/costs
•       Build interoperability standards into platforms
•       Publicly share experiences - good & bad
•       PPP (public-private-partnership) infrastructure
•       Build portable talent base/experts across sites
•       Compile innovations from participating groups
•       Follow European model – share trial participants
•       Faster path for FDA drug approval

    AssureRx Health, Inc.                            CONFIDENTIAL   15
The ‘Diminishing Discovery’ Problem
        tranSMART: Bioinformatics & shared data analytics platform
   •    tranSMART is an open source             informatics software platform that allows
        pharmaceutical, diagnostic and medical device companies to share “pre-competitive”
        data and a set of common tools for analysis of data. The license protects the
        intellectual property of all stakeholders.
   •    Dr. Eric Perakslis, now CIO and Chief Scientist (Informatics) at the FDA, originally
        developed tranSMART when he served as a research scientist at Johnson &
        Johnson. tranSMART is based on the i2b2 informatics platform.
   •     tranSMART has been adopted more broadly in Europe than in the U.S. An example
         of a study where “pre-competitive” data were shared (KM: Knowledge
         Management):



           U-BIOPRED
           (Unbiased BIOmarkers in PREDiction
           of respiratory disease outcomes)1
1Bel EH et al. Diagnosis and definition of severe refractory
asthma: an international consensus statement from the
Innovative Medicine Initiative (IMI). Thorax. 2011 66(10):910

   AssureRx Health, Inc.                                                  CONFIDENTIAL   16
One Mind Integrative Informatics Platform
                        Genome        Proteome       Signaling      Phenome        Disease

                            Integrative Analyses Managed Thru Cloud-Based Portal




                                                                                                One Mind
                                                                                                 PortalTM
                                                                                               Builds off of
                                                                                               tranSMART
                                                                                             Data Knowledge
                                                                                              Management
                                                                                                 System




AssureRx Health, Inc.                                                              CONFIDENTIAL       17
AssureRx Health, Inc.   CONFIDENTIAL   18
Human Genome Variation as determined by NGS
“The ability of sequencing to detect a site that is segregating in the population is dominated by two
factors:
1. Whether the non-reference allele is present among the individuals chosen for sequencing, and;
2. The number of high quality and well mapped reads that overlap the variant site in individuals who
    carry it.
Simple models show that for a given total amount of sequencing, the number of variants discovered is
maximized by sequencing many samples at low coverage. This is because high coverage of a few
genomes, while providing the highest sensitivity and accuracy in genotyping a single individual, involves
considerable redundancy and misses variation not represented by those samples.”1


   Genome           variants      of       different Transposons
   types, determined by low coverage
   sequencing          of     individuals,      trios Duplications
   (e.g., mother, father and daughter) and
   exons. These data are derived from the 1000
                                                         Deletions                                        Known
   genomes project.1                                                                                      Novel
                                                        Insertions
   • Note that they did not attempt to resolve
       Copy Number Variants (CNVs) or Variable                SNPs
       Number          of     Tandem         Repeats
       (VNTRs), which convey inter-individual
       variation.                                                    0%          50%         100%
   • Note the large percentage
1Durbin et al. A map of human genomeof novel from population-scale sequencing. 2010. Nature 467: 1061-1073.
                                                SNPs
                                      variation
       that were discovered by NGS.
   AssureRx Health, Inc.                                                               CONFIDENTIAL      19
Genome Variation and Pharmacogenomics
Some important points about Single Nucleotide Polymorphisms (SNPs) :
•    All methods to determine human genome variation contain error.
•    So-called “common” SNPs, with a frequency of >0. 5%, have yielded modest effects in genome-
     wide association scans (GWAS) for determination in complex diseases.
•    Early results from pharmacogenomic GWAS appear to indicate a greater ability to discover SNPs
     with substantial effect size. Nevertheless, they do not explain the full extent of human genome
     variation and drug response. Pharmacogenomic GWAS are limited in power by small cohort sizes.1
•    Although each human genome may have ~3 M SNPs, only some of these variants are deleterious.
•    SNPs have been the easiest genomic variant to measure, but other variants, such as Copy Number
     Variants (CNVs), may be more important determinants of drug response.2
•    Most variants that impact individual drug response have not yet been identified.3*
1Guessous,  I., Gwinn, M. & Khoury, M.J. Genome-wide association studies in pharmacogenomics: untapped potential for
translation. Genome Med 1, 46 (2009); Group, S.C. et al. SLCO1B1 variants and statin-induced myopathy—a genome
wide study. N Engl J Med 359, 789-799 (2008). Sato, Y. et al. A new statistical screening approach for finding
pharmacokinetics related genes in genome-wide studies. Pharmacogenomics J 9, 137-146 (2009);
Crowley, J.J., Sullivan, P.F. & McLeod, H.L. Pharmacogenomic genome-wide association studies: lessons learned thus
far. Pharmacogenomics 10, 161-163 (2009).
2Rasmussen H B et al. Genome-wide identification of structural variants in genes encoding drug targets: possible

implications for individualized drug therapy. Pharmacogenetics and Genomics. July 2012. 22 (7): 471-483.
3Durbin et al. A map of human genome variation from population-scale sequencing. 2010. Nature 467: 1061-1073. *FDA.


    AssureRx Health, Inc.                                                                  CONFIDENTIAL       20
Genome Variation and Pharmacogenomics
Allele-Specific PCR cannot accurately detect SNPs1:


        Unknown SNP




                                          1Favis,
                                                R. Applying next generation sequencing to
                         Unknown SNP      pharmacogenomics studies in clinical trials.

 AssureRx Health, Inc.                                            CONFIDENTIAL     21
Genome Variation and Pharmacogenomics
 High throughput genotyping platforms cannot accurately resolve
 allelic variants of the CYP2D6 superfamily1:
 Genome-wide arrays, some that are specifically configured to examine
 pharmacogene variants, were poor at discriminating CYP2D6 alleles:




1Gamazon  ER et al. The limits of genome-wide methods for pharmacogenomics testing. Pharmacogenetics and
Genomics. 2012. 22:261–272.;

  AssureRx Health, Inc.                                                          CONFIDENTIAL     22
Genome Variation and Pharmacogenomics
Some important points about Next Generation Sequencing (NGS):
•    All methods to determine human genome variation contain error.
•    All ‘short read’ NGS methods rely on the use of a “reference genome” as ground truth, when the
     various reference genomes have been shown to have unusual variation1.
•    Short read NGS technology is fraught with errors, and thus either requires 60-100 fold coverage
     for a single individual, or low coverage whole genome sequence data from a large popoulation2.
     The most accurate results have been obtained from sequencing the whole genomes of closely-
     related individuals, along with inclusion of other data related to family medical history1,3.
•    Short read NGS technology is especially poor at calling variants in GC-rich regions of the genome
     such as CpG islands.
•    The real value is provided by long read technology, which has been implemented by Complete
     Genomics, but they have a backlog of genomes to sequence under contract (~27,354 as of 6/12).
•    So-called ‘clinical’ or bench-top sequencers, such as Illumina’s MiSeq or Life Technologies Ion
     Torrent, manifest all the problems associated with short read technology, including extensive
     pre-processing of tissue samples and complex data analysis.
1Dewey   et al. Phased whole-genome genetic risk in a family quartet using a major allele reference sequence. PLoS
Genet. 2011 September; 7(9): e1002280.
2Durbin et al. A map of human genome variation from population-scale sequencing. 2010. Nature 467: 1061-1073.
3Patel C J et al. Data-driven integration of epidemiological and toxicological data to select candidate interacting genes

and environmental factors in association with disease. Bioinformatics. 2012 Jun 15;28(12):i121-i126.

    AssureRx Health, Inc.                                                                      CONFIDENTIAL        23
Genome Variation and Pharmacogenomics
 Whole genome sequencing & analysis has been able to resolve pharmacogene variation on a
 genome-wide level, including the various alleles of the CYP2D6 superfamily1:
 Allele     Effect on Metabolism       Allele     Effect on Metabolism         Allele   Effect on Metabolism
 *1         Fully functional           *14        Null                         *33      Fully functional
 *2         Fully functional           *14A       Null                         *35      Fully functional
 *3         Null                       *14B       Null                         *36      pseudogene
 *4         Null                       *15        Null                         *37      Reduced activity
 *5         Null                       *16        Null                         *38      Null
 *6         Null                       *17        Reduced activity             *39      pseudogene
 *7         Null                       *18        Null                         *40      Null
 *8         Null                       *19        Null                         *41      Reduced activity
 *9         Reduced activity           *20        Null                         *42      Null
 *10        Reduced activity           *25        pseudogene                   *43      pseudogene
 *10AB      Reduced activity           *26        pseudogene                   *44      Null
 *11        Reduced activity           *29        Reduced activity             *45      Reduced activity
 *12        Null                       *30        pseudogene                   *46      Reduced activity
 *13        Null                       *31        pseudogene                   *56      Reduced activity
1Black
     JL et al. Frequency of undetected CYP2D6 hybrid genes in clinical samples: Impact on phenotype prediction. Drug
Metab Dispos June 2012 40:1238; Patents: United States Patent Application 20120088247;
   AssureRx Health, Inc.                                                                   CONFIDENTIAL       24
AssureRx Health, Inc.   CONFIDENTIAL   25
Trends in Next Generation Sequencing
                                              2010                                         2013
Generation             2nd Generation NGS                                3rd Generation NGS
Fundamental technology SBS or degradation                                Direct physical inspection of the DNA molecule
                                                                         using nanopore, high speed camera and/or silicon
                                                                         chip technology
Resolution                 Averaged across many copies of the DNA        Single-molecule resolution
                           molecule being sequenced
Raw read accuracy          High, with >60-fold coverage                  High, missed variant calls: 1 in 500kb – 1M bases
Read length                Short - ~35 bases, generally much shorter     Long, 10,000 bp and longer
                           than Sanger sequencing
Throughput                 High                                          Highest
Current cost               Low cost per base                             Lowest cost per base
RNA-sequencing             cDNA sequencing                               Direct RNA sequencing and cDNA sequencing
Start-to-Finish            Days                                          One hour per whole genome
Sample preparation         Complex, library and PCR amplification        Very simple
                           required
Data analysis              Complex because of large data volumes and     Complex because of large data volumes– however
                           because short reads complicate assembly and   those can be solved by new high speed camera
                           alignment algorithms                          and chip technologies

Primary results            Base calls with quality values                Base calls with quality values, other base
                                                                         information such as kinetics, structural variants
                                                                         and phased haplotypes

   AssureRx Health, Inc.                                                                         CONFIDENTIAL        26
Trends in Next Generation Sequencing
2nd Generation NGS - Short read archive:
• Hardware and Service Companies – Market Share– Ilumina and Complete
  Genomics sequenced over 90% of all genomes as of 10/1/111
                              Percentage of Whole Human Genomes Sequenced

                                                                Illumina

                                                                Complete Genomics

                                                                Life Technologies

                                                                Others


• Concordance of variant calls – Illumina versus Complete Genomics short read1

  Concordance between platforms:                                           SNPs                Indels
  (One individual, 76-fold coverage, ~3.7M SNPs)
                                                                           88.1%               26.5%
1Lam   HL et al. Performance comparison of whole-genome sequencing platforms. Nature Biotech. 2012. 30: 78-82.


  AssureRx Health, Inc.                                                                     CONFIDENTIAL         27
Next Generation Sequencing – Update 6/12
 Company                    Product(s)           Tech                  Problems                       Prognosis
                        •    HiSeq          2nd generation -   Too expensive;                    Will eventually be
                        •    MiSeq          Short read         Should have taken buyout          acquired at bargain
                             clinical                          from Roche; Dominate market       price, or merge – best
                             sequencer*                        – believe they can do the same    candidate for M&A is
                        *(FDA-approved                         in molecular diagnostics          BGI
                        Type III device)
                        Sequencing-as-a-    2nd generation -   Just laid off 55 employees –      Long read technology is
                        service             Short read (75%    restructuring so as to only       very accurate, but have
                                            of business);      focus on clinical markets – no    “over-committed”,
                                            3rd generation     more life sciences research.      including Mayo, ARUP,
                                            (25%)              Need to switch to long read       INOVA, Partners, etc.
                                                               technology ASAP – but can’t       Will survive …
                                                               because of sequence backlog.
                        •    Personal       2nd generation -   Tiny market share; already        Company is diversified
                             genome         Short read         pushed back dates on Ion          enough to subsidize
                        •    Exome                             Torrent Exome to 9/12             sequencing hardware
                             machine
                        •    Gridiron and   3rd generation –   No credibility; USB mini-pore     Long read technology is
                             Mini-Ion       long read –        can only sequence one             accurate, Company has
                                            licensed from      genome in closed system –         over $150M funding–
                                            Winters-Hilt       expensive.                        who knows?
                        Not named yet       3rd generation –   “Still working on the             Long read technology is
                                            long read –        chemistry”. CEO won’t discuss     very accurate,
                                            licensed from      status of company…                represents optimal
AssureRx Health, Inc.                       Winters-Hilt                                        CONFIDENTIAL survive.
                                                                                                 solution – will  28
NGS – Complete Genomics, Inc.




AssureRx Health, Inc.                           CONFIDENTIAL   29
NGS – Long Read Nanopore Solutions
             Complete Genomics          Their most recent technology involves
                                        combining a very high speed CCD (charge-
                                        coupled display) camera with each DNA
                                        base tagged with a fluorochrome coming
                                        through a nanopore.

                                        •They have achieved 500Kb read
                                        lengths, claim error rate is “I missed base
                                        call variant every 500Kb” – Lee Hood.
                                        •They have been able to resolve phased
                                        maternal and paternal chromosomes
1.     Extract and fragment DNA
                                        •They can resolve distributed repeats (e.g.
2.     Each base (A, C, G, T) tagged
                                        pseudogenes)
       with a different fluorochrome
3.     Multi-planar graphene array      •However, their in-house, pre- and post-
4.     High-speed CCD camera – can      processing steps are very complex and time-
                                        consuming, their turnaround time for a
       capture every base per pixel
                                        human genome with a coverage of 10-fold is
       with DNA traveling at ~10 base   72 days, and they now have a backlog of
       pairs per second.                25,000 genomes.
AssureRx Health, Inc.                                            CONFIDENTIAL   30
NGS – Long Read Nanopore Solutions
                         Ideal System1                   Rosenstein et al1 latest device can accurately
                                                         sequence 1 million base pairs of double-
                                                         stranded DNA without error.
                                             • Unlike most researchers interested in
                                               using nanopores to directly sequence
                                               DNA that have slowed the DNA velocity in
                                               the nanopore translocation stage through
                                               adding an enzyme ratchet such as Oxford
                                               Nanopore Technology to accommodate
                                               the low bandwidths available, these
1.      Extract DNA.                           researchers used complementary metal-
2.      Pass “naked” DNA through               oxide semiconductor (CMOS) processing
        graphene nanopore array.               and integrated circuits technology.
3.      High bandwidth CMOS pre-amplifier • They have been able to redesign their
                                               system to increase the bandwidth above
        positioned under every pore.           50MHz, with a very low signal-to-noise
4.      Solid state silicon nitride membrane   ratio to sequence an entire human
        chip mounted in the fluid cell.        genome with very little sample
                                               preparation in 20 minutes.
1RosensteinJK et al. Integrated nanopore sensing platform with sub-microsecond temporal resolution. Nature
Methods. 2012. 9 (5): 487-492.
     AssureRx Health, Inc.                                                               CONFIDENTIAL        31
WGA – Clinical Interpretation Software
   Whole Genome Analysis - “The $1,000 genome and the $1M interpretation.”



  3 major approaches:

• Filter data followed by complex analysis – Used by Cypher Genomics and Illumina

• Apply proprietary natural language processing algorithms against whole
  genome or whole exome data – Used by Silicon Valley Biosystems

• Genomic best linear unbiased prediction (GBLUP) method to evaluate
  predictive ability by cross-validation. GBLUP approaches take into account the
  covariance structure inferred from the genomic data. Best predictive
  accuracy1,2
1Ober Uet al. Using whole-genome sequence data to predict quantitative trait phenotypes in Drosophila melanogaster.
PLoS Genetics. May 2012. 8 (5): 1-14.
2Jones    B. Predicting phenotypes. Nature Reviews Genetics. 2012. 13. doi:10.1038/nrg3267

   AssureRx Health, Inc.                                                                   CONFIDENTIAL       32
WGA – Clinical Interpretation Software
Whole Genome Analysis - Example from Cypher Genomics




AssureRx Health, Inc.                                  CONFIDENTIAL   33
WGA – Clinical Interpretation Software
Whole Genome Analysis - Example from Cypher Genomics




AssureRx Health, Inc.                                  CONFIDENTIAL   34
AssureRx Health, Inc.   CONFIDENTIAL   35
AssureRx Health, Inc.   CONFIDENTIAL   36
Lab & Technology Operations

      Lab
      • Results delivered within one business day of
        receipt of a patient’s DNA sample
      • CLIA certified
      • CAP accredited
      • NY State Department of Health certified


      Technology
      •   Advanced bioinformatics
      •   World-class data center operations
      •   Secure Internet protocols
      •   HIPAA compliant architecture
      •   Data integration with Facility Health Information
          Management Systems



AssureRx Health, Inc.                                         CONFIDENTIAL   37

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Vice President Discusses Pharmacogenomics and Big Data

  • 1. Gerry Higgins, Ph.D., M.D. Vice President, Pharmacogenomic Science AssureRx Health, Inc. AssureRx Health, Inc. CONFIDENTIAL 1
  • 2. » The Human Genome » Explosive Growth in Sequence Data » The ‘Big Data’ Problem » The ‘Diminishing Discovery’ Problem » Human Genome Variation and Pharmacogenomics » Evolution of next generation sequencing (NGS) technology » Future Trends AssureRx Health, Inc. CONFIDENTIAL 2
  • 3. AssureRx Health, Inc. CONFIDENTIAL 3
  • 4. The Human Genome • ~3.2 billion base pairs1 • 22,500 ± 2,000 genes2 (= ~1.3% 0f genome) • 100,000 – 500,000 proteins, depending on tissue3 1InternationalHuman Genome Sequencing Consortium. Finishing the euchromatic sequence of the human genome. Nature 2004, 431, 931-945. 2Pertea M and Salzberg SL. Between a chicken and a grape: estimating the number of human genes. Genome Biology 2010, 11:206. 3RamsköldD et al. An abundance of ubiquitously expressed genes revealed by tissue transcriptome sequence data. PLoS Computational Biology 2009 5(12). AssureRx Health, Inc. CONFIDENTIAL 4
  • 5. The Human Genome - Regulation AssureRx Health, Inc. CONFIDENTIAL 5
  • 6. The Human Genome - Regulation Example: Alternative splicing of mRNAS Mechanisms Percentage of alternatively-spliced genes1 = 48% = 16% = 16% 1Yeo g et al. Variation in alternative splicing across human tissues. Genome Biology 2004, 5:R74. AssureRx Health, Inc. CONFIDENTIAL 6
  • 7. The Human Genome - Regulation Example: Brain-specific methylation patterns1 • As determined by Methylated DNA immunoprecipitation (MeDIP) – genome-wide methylation analysis • CpG Islands (CGI) tend to be the most highly methylated regions of the genome – GC-rich promoters of genes tend to be the most hypo-methylated GC sequences • The most methylated regions of the genome are related to genes involved in brain development – BDNF, CACNA1A and CACNA1F (calcium-channel genes involved in neuronal growth and development and controlling the release of neurotransmitters), and GRIK5 (a receptor for the excitatory neurotransmitter glutamate). Unsupervised hierarchal cluster analysis (a statistical measure of the difference between values) Cerebral cortex Cerebellum Blood 1Davies M et al. Functional annotation of the human brain methylome identifies tissue-specific epigenetic variation across brain and blood. Genome Biology 2012, 13:R43. AssureRx Health, Inc. CONFIDENTIAL 7
  • 8. The Human Genome - Regulation Example: Interactome – Variants in Genes in the Same Pathway Predict Susceptibility to Disease1,2 Major Depressive Disorder: GENE SNP PDE6C rs7903947 BDNF rs7927728 GHRHR rs2228078 PSMD9 rs1168658 HSD3B1 rs2208382 1Wong M-L et al. Prediction of susceptibility to major depression by a model of interactions of multiple functional genetic variants and environmental factors. Molecular Psychiatry, 2012 17:624-633. 2 Barrenas F et al. Highly interconnected genes in disease-specific networks are enriched for disease-associated polymorphisms. Genome Biology 2012, 13:R46. AssureRx Health, Inc. CONFIDENTIAL 8
  • 9. AssureRx Health, Inc. CONFIDENTIAL 9
  • 10. Explosive Growth in Sequence Data As the cost of DNA sequencing falls, the growth of human genome data becomes exponential AssureRx Health, Inc. CONFIDENTIAL 10
  • 11. The ‘Big Data’ Problem Lee Hood, IOM February 27, 2012 AssureRx Health, Inc. CONFIDENTIAL 11
  • 12. The ‘Big Data’ Problem “The world is shifting to an innovation economy and nobody does innovation better than America.” —President Obama, 12/6/2011  Pillers of Bioeconomy R&D: 1) Synthetic Biology 2) Proteomics 3) Information Technology— Bioinformatics & Computational Biology AssureRx Health, Inc. CONFIDENTIAL 12
  • 13. The ‘Diminishing Discovery’ Problem AssureRx Health, Inc. CONFIDENTIAL 13
  • 14. The ‘Diminishing Discovery’ Problem FDA’s Solution: Adaptation in the Pre-Competitive Space SCREENING TRIAL Achieve surrogate Investigational drugs end point predictive Promising drug candidate of clinical outcome & associated PGx markers & associated PGx marker CONFIRMATORY TRIAL Replicate Achieve clinical outcome surrogate end (regulatory standard for Promising drug candidate point FDA approval) & associated PGx marker FDA APPROVAL Accelerated drug approval with Full drug approval approval of PGx biomarker *Slide adapted , with permission, from Janet Woodcock and Issam Zineh, CDER, FDA AssureRx Health, Inc. CONFIDENTIAL 14
  • 15. The ‘Diminishing Discovery’ Problem Pre-Competitive Collaboration: Solution for Pharma • Share use cases/questions – gaps in current tools • Identify common solutions & options • Share development risk/costs • Build interoperability standards into platforms • Publicly share experiences - good & bad • PPP (public-private-partnership) infrastructure • Build portable talent base/experts across sites • Compile innovations from participating groups • Follow European model – share trial participants • Faster path for FDA drug approval AssureRx Health, Inc. CONFIDENTIAL 15
  • 16. The ‘Diminishing Discovery’ Problem tranSMART: Bioinformatics & shared data analytics platform • tranSMART is an open source informatics software platform that allows pharmaceutical, diagnostic and medical device companies to share “pre-competitive” data and a set of common tools for analysis of data. The license protects the intellectual property of all stakeholders. • Dr. Eric Perakslis, now CIO and Chief Scientist (Informatics) at the FDA, originally developed tranSMART when he served as a research scientist at Johnson & Johnson. tranSMART is based on the i2b2 informatics platform. • tranSMART has been adopted more broadly in Europe than in the U.S. An example of a study where “pre-competitive” data were shared (KM: Knowledge Management): U-BIOPRED (Unbiased BIOmarkers in PREDiction of respiratory disease outcomes)1 1Bel EH et al. Diagnosis and definition of severe refractory asthma: an international consensus statement from the Innovative Medicine Initiative (IMI). Thorax. 2011 66(10):910 AssureRx Health, Inc. CONFIDENTIAL 16
  • 17. One Mind Integrative Informatics Platform Genome Proteome Signaling Phenome Disease Integrative Analyses Managed Thru Cloud-Based Portal One Mind PortalTM Builds off of tranSMART Data Knowledge Management System AssureRx Health, Inc. CONFIDENTIAL 17
  • 18. AssureRx Health, Inc. CONFIDENTIAL 18
  • 19. Human Genome Variation as determined by NGS “The ability of sequencing to detect a site that is segregating in the population is dominated by two factors: 1. Whether the non-reference allele is present among the individuals chosen for sequencing, and; 2. The number of high quality and well mapped reads that overlap the variant site in individuals who carry it. Simple models show that for a given total amount of sequencing, the number of variants discovered is maximized by sequencing many samples at low coverage. This is because high coverage of a few genomes, while providing the highest sensitivity and accuracy in genotyping a single individual, involves considerable redundancy and misses variation not represented by those samples.”1 Genome variants of different Transposons types, determined by low coverage sequencing of individuals, trios Duplications (e.g., mother, father and daughter) and exons. These data are derived from the 1000 Deletions Known genomes project.1 Novel Insertions • Note that they did not attempt to resolve Copy Number Variants (CNVs) or Variable SNPs Number of Tandem Repeats (VNTRs), which convey inter-individual variation. 0% 50% 100% • Note the large percentage 1Durbin et al. A map of human genomeof novel from population-scale sequencing. 2010. Nature 467: 1061-1073. SNPs variation that were discovered by NGS. AssureRx Health, Inc. CONFIDENTIAL 19
  • 20. Genome Variation and Pharmacogenomics Some important points about Single Nucleotide Polymorphisms (SNPs) : • All methods to determine human genome variation contain error. • So-called “common” SNPs, with a frequency of >0. 5%, have yielded modest effects in genome- wide association scans (GWAS) for determination in complex diseases. • Early results from pharmacogenomic GWAS appear to indicate a greater ability to discover SNPs with substantial effect size. Nevertheless, they do not explain the full extent of human genome variation and drug response. Pharmacogenomic GWAS are limited in power by small cohort sizes.1 • Although each human genome may have ~3 M SNPs, only some of these variants are deleterious. • SNPs have been the easiest genomic variant to measure, but other variants, such as Copy Number Variants (CNVs), may be more important determinants of drug response.2 • Most variants that impact individual drug response have not yet been identified.3* 1Guessous, I., Gwinn, M. & Khoury, M.J. Genome-wide association studies in pharmacogenomics: untapped potential for translation. Genome Med 1, 46 (2009); Group, S.C. et al. SLCO1B1 variants and statin-induced myopathy—a genome wide study. N Engl J Med 359, 789-799 (2008). Sato, Y. et al. A new statistical screening approach for finding pharmacokinetics related genes in genome-wide studies. Pharmacogenomics J 9, 137-146 (2009); Crowley, J.J., Sullivan, P.F. & McLeod, H.L. Pharmacogenomic genome-wide association studies: lessons learned thus far. Pharmacogenomics 10, 161-163 (2009). 2Rasmussen H B et al. Genome-wide identification of structural variants in genes encoding drug targets: possible implications for individualized drug therapy. Pharmacogenetics and Genomics. July 2012. 22 (7): 471-483. 3Durbin et al. A map of human genome variation from population-scale sequencing. 2010. Nature 467: 1061-1073. *FDA. AssureRx Health, Inc. CONFIDENTIAL 20
  • 21. Genome Variation and Pharmacogenomics Allele-Specific PCR cannot accurately detect SNPs1: Unknown SNP 1Favis, R. Applying next generation sequencing to Unknown SNP pharmacogenomics studies in clinical trials. AssureRx Health, Inc. CONFIDENTIAL 21
  • 22. Genome Variation and Pharmacogenomics High throughput genotyping platforms cannot accurately resolve allelic variants of the CYP2D6 superfamily1: Genome-wide arrays, some that are specifically configured to examine pharmacogene variants, were poor at discriminating CYP2D6 alleles: 1Gamazon ER et al. The limits of genome-wide methods for pharmacogenomics testing. Pharmacogenetics and Genomics. 2012. 22:261–272.; AssureRx Health, Inc. CONFIDENTIAL 22
  • 23. Genome Variation and Pharmacogenomics Some important points about Next Generation Sequencing (NGS): • All methods to determine human genome variation contain error. • All ‘short read’ NGS methods rely on the use of a “reference genome” as ground truth, when the various reference genomes have been shown to have unusual variation1. • Short read NGS technology is fraught with errors, and thus either requires 60-100 fold coverage for a single individual, or low coverage whole genome sequence data from a large popoulation2. The most accurate results have been obtained from sequencing the whole genomes of closely- related individuals, along with inclusion of other data related to family medical history1,3. • Short read NGS technology is especially poor at calling variants in GC-rich regions of the genome such as CpG islands. • The real value is provided by long read technology, which has been implemented by Complete Genomics, but they have a backlog of genomes to sequence under contract (~27,354 as of 6/12). • So-called ‘clinical’ or bench-top sequencers, such as Illumina’s MiSeq or Life Technologies Ion Torrent, manifest all the problems associated with short read technology, including extensive pre-processing of tissue samples and complex data analysis. 1Dewey et al. Phased whole-genome genetic risk in a family quartet using a major allele reference sequence. PLoS Genet. 2011 September; 7(9): e1002280. 2Durbin et al. A map of human genome variation from population-scale sequencing. 2010. Nature 467: 1061-1073. 3Patel C J et al. Data-driven integration of epidemiological and toxicological data to select candidate interacting genes and environmental factors in association with disease. Bioinformatics. 2012 Jun 15;28(12):i121-i126. AssureRx Health, Inc. CONFIDENTIAL 23
  • 24. Genome Variation and Pharmacogenomics Whole genome sequencing & analysis has been able to resolve pharmacogene variation on a genome-wide level, including the various alleles of the CYP2D6 superfamily1: Allele Effect on Metabolism Allele Effect on Metabolism Allele Effect on Metabolism *1 Fully functional *14 Null *33 Fully functional *2 Fully functional *14A Null *35 Fully functional *3 Null *14B Null *36 pseudogene *4 Null *15 Null *37 Reduced activity *5 Null *16 Null *38 Null *6 Null *17 Reduced activity *39 pseudogene *7 Null *18 Null *40 Null *8 Null *19 Null *41 Reduced activity *9 Reduced activity *20 Null *42 Null *10 Reduced activity *25 pseudogene *43 pseudogene *10AB Reduced activity *26 pseudogene *44 Null *11 Reduced activity *29 Reduced activity *45 Reduced activity *12 Null *30 pseudogene *46 Reduced activity *13 Null *31 pseudogene *56 Reduced activity 1Black JL et al. Frequency of undetected CYP2D6 hybrid genes in clinical samples: Impact on phenotype prediction. Drug Metab Dispos June 2012 40:1238; Patents: United States Patent Application 20120088247; AssureRx Health, Inc. CONFIDENTIAL 24
  • 25. AssureRx Health, Inc. CONFIDENTIAL 25
  • 26. Trends in Next Generation Sequencing 2010 2013 Generation 2nd Generation NGS 3rd Generation NGS Fundamental technology SBS or degradation Direct physical inspection of the DNA molecule using nanopore, high speed camera and/or silicon chip technology Resolution Averaged across many copies of the DNA Single-molecule resolution molecule being sequenced Raw read accuracy High, with >60-fold coverage High, missed variant calls: 1 in 500kb – 1M bases Read length Short - ~35 bases, generally much shorter Long, 10,000 bp and longer than Sanger sequencing Throughput High Highest Current cost Low cost per base Lowest cost per base RNA-sequencing cDNA sequencing Direct RNA sequencing and cDNA sequencing Start-to-Finish Days One hour per whole genome Sample preparation Complex, library and PCR amplification Very simple required Data analysis Complex because of large data volumes and Complex because of large data volumes– however because short reads complicate assembly and those can be solved by new high speed camera alignment algorithms and chip technologies Primary results Base calls with quality values Base calls with quality values, other base information such as kinetics, structural variants and phased haplotypes AssureRx Health, Inc. CONFIDENTIAL 26
  • 27. Trends in Next Generation Sequencing 2nd Generation NGS - Short read archive: • Hardware and Service Companies – Market Share– Ilumina and Complete Genomics sequenced over 90% of all genomes as of 10/1/111 Percentage of Whole Human Genomes Sequenced Illumina Complete Genomics Life Technologies Others • Concordance of variant calls – Illumina versus Complete Genomics short read1 Concordance between platforms: SNPs Indels (One individual, 76-fold coverage, ~3.7M SNPs) 88.1% 26.5% 1Lam HL et al. Performance comparison of whole-genome sequencing platforms. Nature Biotech. 2012. 30: 78-82. AssureRx Health, Inc. CONFIDENTIAL 27
  • 28. Next Generation Sequencing – Update 6/12 Company Product(s) Tech Problems Prognosis • HiSeq 2nd generation - Too expensive; Will eventually be • MiSeq Short read Should have taken buyout acquired at bargain clinical from Roche; Dominate market price, or merge – best sequencer* – believe they can do the same candidate for M&A is *(FDA-approved in molecular diagnostics BGI Type III device) Sequencing-as-a- 2nd generation - Just laid off 55 employees – Long read technology is service Short read (75% restructuring so as to only very accurate, but have of business); focus on clinical markets – no “over-committed”, 3rd generation more life sciences research. including Mayo, ARUP, (25%) Need to switch to long read INOVA, Partners, etc. technology ASAP – but can’t Will survive … because of sequence backlog. • Personal 2nd generation - Tiny market share; already Company is diversified genome Short read pushed back dates on Ion enough to subsidize • Exome Torrent Exome to 9/12 sequencing hardware machine • Gridiron and 3rd generation – No credibility; USB mini-pore Long read technology is Mini-Ion long read – can only sequence one accurate, Company has licensed from genome in closed system – over $150M funding– Winters-Hilt expensive. who knows? Not named yet 3rd generation – “Still working on the Long read technology is long read – chemistry”. CEO won’t discuss very accurate, licensed from status of company… represents optimal AssureRx Health, Inc. Winters-Hilt CONFIDENTIAL survive. solution – will 28
  • 29. NGS – Complete Genomics, Inc. AssureRx Health, Inc. CONFIDENTIAL 29
  • 30. NGS – Long Read Nanopore Solutions Complete Genomics Their most recent technology involves combining a very high speed CCD (charge- coupled display) camera with each DNA base tagged with a fluorochrome coming through a nanopore. •They have achieved 500Kb read lengths, claim error rate is “I missed base call variant every 500Kb” – Lee Hood. •They have been able to resolve phased maternal and paternal chromosomes 1. Extract and fragment DNA •They can resolve distributed repeats (e.g. 2. Each base (A, C, G, T) tagged pseudogenes) with a different fluorochrome 3. Multi-planar graphene array •However, their in-house, pre- and post- 4. High-speed CCD camera – can processing steps are very complex and time- consuming, their turnaround time for a capture every base per pixel human genome with a coverage of 10-fold is with DNA traveling at ~10 base 72 days, and they now have a backlog of pairs per second. 25,000 genomes. AssureRx Health, Inc. CONFIDENTIAL 30
  • 31. NGS – Long Read Nanopore Solutions Ideal System1 Rosenstein et al1 latest device can accurately sequence 1 million base pairs of double- stranded DNA without error. • Unlike most researchers interested in using nanopores to directly sequence DNA that have slowed the DNA velocity in the nanopore translocation stage through adding an enzyme ratchet such as Oxford Nanopore Technology to accommodate the low bandwidths available, these 1. Extract DNA. researchers used complementary metal- 2. Pass “naked” DNA through oxide semiconductor (CMOS) processing graphene nanopore array. and integrated circuits technology. 3. High bandwidth CMOS pre-amplifier • They have been able to redesign their system to increase the bandwidth above positioned under every pore. 50MHz, with a very low signal-to-noise 4. Solid state silicon nitride membrane ratio to sequence an entire human chip mounted in the fluid cell. genome with very little sample preparation in 20 minutes. 1RosensteinJK et al. Integrated nanopore sensing platform with sub-microsecond temporal resolution. Nature Methods. 2012. 9 (5): 487-492. AssureRx Health, Inc. CONFIDENTIAL 31
  • 32. WGA – Clinical Interpretation Software Whole Genome Analysis - “The $1,000 genome and the $1M interpretation.” 3 major approaches: • Filter data followed by complex analysis – Used by Cypher Genomics and Illumina • Apply proprietary natural language processing algorithms against whole genome or whole exome data – Used by Silicon Valley Biosystems • Genomic best linear unbiased prediction (GBLUP) method to evaluate predictive ability by cross-validation. GBLUP approaches take into account the covariance structure inferred from the genomic data. Best predictive accuracy1,2 1Ober Uet al. Using whole-genome sequence data to predict quantitative trait phenotypes in Drosophila melanogaster. PLoS Genetics. May 2012. 8 (5): 1-14. 2Jones B. Predicting phenotypes. Nature Reviews Genetics. 2012. 13. doi:10.1038/nrg3267 AssureRx Health, Inc. CONFIDENTIAL 32
  • 33. WGA – Clinical Interpretation Software Whole Genome Analysis - Example from Cypher Genomics AssureRx Health, Inc. CONFIDENTIAL 33
  • 34. WGA – Clinical Interpretation Software Whole Genome Analysis - Example from Cypher Genomics AssureRx Health, Inc. CONFIDENTIAL 34
  • 35. AssureRx Health, Inc. CONFIDENTIAL 35
  • 36. AssureRx Health, Inc. CONFIDENTIAL 36
  • 37. Lab & Technology Operations Lab • Results delivered within one business day of receipt of a patient’s DNA sample • CLIA certified • CAP accredited • NY State Department of Health certified Technology • Advanced bioinformatics • World-class data center operations • Secure Internet protocols • HIPAA compliant architecture • Data integration with Facility Health Information Management Systems AssureRx Health, Inc. CONFIDENTIAL 37

Editor's Notes

  1. methods based on single experiments and gene properties alone not enough for multifactorial diseases. Information for a disease involvement encoded by multiple platforms