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GENETIC TECHNOLOGIES LIMITED — Investor Presentation 2011
Oct 18, 2011
65022_rns_2011-10-18_3f5cacf8-f587-48d4-9ca7-f6d2c440b839.pdf
Investor Presentation
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ASX ANNOUNCEMENT October 19[th] , 2011
Presentation at AusBiotech 2011 National Conference
Genetic Technologies Limited (ASX: GTG; NASDAQ: GENE) advises that the Company is attending the AusBiotech 2011 National Conference in Adelaide, South Australia and that its Chief Executive Officer, Dr. Paul MacLeman, is presenting the attached presentation at the Conference this morning.
FOR FURTHER INFORMATION PLEASE CONTACT
Mr. Thomas G. Howitt Company Secretary Genetic Technologies Limited Phone: +61 3 8412 7000
Genetic Technologies Limited ABN 17 009 212 328 • Website : www.gtglabs.com • Email : [email protected] Registered Office • 60-66 Hanover Street Fitzroy Victoria 3065 Australia • Postal Address P.O. Box 115 Fitzroy Victoria 3065 Australia Phone +61 3 8412 7000 • Fax +61 3 8412 7040
GENETIC TECHNOLOGIES LIMITED (ASX:GTG; NASDAQ: GENE)
Highlights
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Established molecular diagnostics business with global reach
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1[st] US focused cancer diagnostic launched June 2011
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Supported by in‐house US sales and marketing capability
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Targeting accretive growth in cancer management field through M&A
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Underpinned by non‐dilutive IP estate and local genetic testing revenue base
Forward Looking Statements
This presentation may contain forward‐looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934 with respect to the financial condition, results and business achievements/performance of Genetic Technologies Limited and certain of the plans and objectives of its management. These statements are statements that are not historical facts. Words such as “should”, “expects”, “anticipates”, “estimates”, “believes” or similar expressions, as they relate to Genetic Technologies Limited, are intended to identify forward‐looking statements. By their nature, forward‐looking statements involve risk and uncertainty because they reflect Genetic Technologies’ current expectations and assumptions as to future events and circumstances that may not prove accurate. There is no guarantee that the expected events, trends or results will actually
Snapshot
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Profitable and cash flow positive financial year 2010/11
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$18.3M revenues, $900k profit, $2.2m positive cash
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Currently in the 2[nd] year of a 5 year strategy to build a global cancer diagnostics business
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BREVAGen™ is the first product in this expansion
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June 2011 USA launch of breast cancer risk test – cheek swab
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Attractive gross margins and est. $620m pa addressable US market
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Established Australian genetic testing business provides sustaining cash flows and operational base for expansion
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1[st] CLIA certification of Australia laboratory by CMS
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Growing licensing revenues from patent out‐licensing
Oncology Focus
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New technologies driving targeted interventions & extending lives
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Demography and healthcare costs driving growth
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Molecular diagnosis of cancer is most attractive segment of the Dx industry
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� Focused market & efficient sales process
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Strong accelerating growth forecast next 4 years
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US & EU export market
Portfolio Strategy
Colorectal / Uterine Cancer Launched 2006 2004 PacRim launch
June 2011 US launch Jun 2011 US launch
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Gen1 in validation
KRas
BRaf
EGFR
Gen2 in evaluation with pharma partner
KRas
BRaf
EGFR
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BREVAGen™
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Novel, validated test for non‐familial breast cancer risk, published JNCI Oct2010
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US$600m per annum US market opportunity
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Attractive gross margin ‐cheek swab
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Launched in 8 initial US territories June2011
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High profile Key Opinion Leaders involved
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Experts at Stanford, Sloane‐Kettering, Dana Farber
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Substantial global opportunity
BREVAGen™: What does it Mean Clinically?
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BREVAGen™ classifies a woman’s 5 year & lifetime risk of non‐ familial breast cancer, the commonest variety
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Test combines population risk factors with 7 genetic biomarkers (SNPs) to give an integrated, individual breast cancer risk assessment allowing preventive interventions
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3,000 patient clinical validation studypublished JNCI Oct 2010
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Supports existing American Society of Clinical Oncology (ASCO) & American Cancer Society (ACS) treatment guidelines
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Target market 1m intermediate risk biopsy patients p.a., plus approx.
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2‐300k BRCA ineligible or
Reclassified 64% of all subjects with intermediate Gail scores
Product Portfolio
Target Discovery Clinical Regulatory Review and Validation Launch and Selection Studies or CLIA Release Marker Clinical Launch Claim Validation Utility Planning Extension Studies & Studies Publication
Licensing: Non‐Dilutive Funding Source
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Non‐coding DNA patent estate is one of GTG’s core assets
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60+ licenses, $65m+ revenue received to date
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� 9 Licenses granted FY2011 to date for total $14m
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� Contracted annuity stream of $5.5m in total to 2015
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Foundational patent families protecting the use of non‐ coding DNA for genetic analysis
| coding DNA for genetic analysis | |
|---|---|
| �‘179, “Intron Sequence Analysis” | 2010 |
| �‘762, “Genomic Mapping” | 2015 |
| �‘033, “Methods for Identifying Matched Groups” | 2022 |
| �‘589, “Methods for Genomic Analysis” | 2022 |
| �‘025, “Genetic Analysis Systems and Methods” | 2022 |
| �Assertion strategy US (series of formal patent infringement suits) �Single party negotiations EU & RoW also lucrative 9 |
Financial Snapshot June 2011
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Financials (12 months to Jun30)
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| (AUD millions) Revenue Operations Licensing Net income / (loss) Cash*ǂ |
2011 18.3 4.6 13.7 0.9 5.1 |
2010 8.7 4.9 3.8 (9.4) 3.3 |
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Share Register
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| � | Shares outstanding | 464.6m |
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| Top 20 shareholders | 76% | |
| Total shareholders | 2,850 | |
| � | Options outstanding** | 20.7m |
| � | Market cap (xxx) AUDxxm |
ǂ Institutional placement AUD12.7m July 11
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/** Following divestment $750k revenues
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** Employee options only
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Sales A$m – 5 years
Operations Licensing
13.7
10.8
11.3
5.4 3.7
3.1 3.9 4.6 4.9 4.5
2007 2008 2009 2010 2011
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