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GENETIC TECHNOLOGIES LIMITED — Investor Presentation 2018
Oct 22, 2018
65022_rns_2018-10-22_f1933cc2-ccc3-4033-86a5-c734ec82fa1c.pdf
Investor Presentation
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GENETIC TECHNOLOGIES LIMITED DISEASE RISK ASSESSMENT ON A GLOBAL SCALE
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 occur. Any changes in such assumptions or expectations could cause actual results to differ materially from current expectations.
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Revolutionising genetics.
Listed on the ASX (GTG) in 2000 and Nasdaq (GENE) in 2005, Genetic Technologies has been a leader in the development and commercialisation of genetic risk assessment technology for 20 years.
Our patented tests are designed to predict an individual’s risk of developing chronic disease, empowering them to make informed decisions about their health.
Our lead product, BREVAGen plus ®, is a clinically validated risk assessment test for non-hereditary breast cancer and is first in its class.
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Global healthcare spending is expected to reach $8.7 trillion by 2020.
Chronic disease accounts for 84% of healthcare spending.
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By 2020, 50 percent of Cancer global health care ~~Cardiovascula~~ r expenditures will be Respiratory spent on these diseases:
The number of diabetes sufferers globally is expected to rise from 415 million to 642 million by 2040.
Urbanization Chronic disease is fueled Sedentary by: lifestyles Changing diets
https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Life-Sciences-Health-Care/gx-lshc-hc-outlook-2018.pdf
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Targeted screening reduces the cost of healthcare.
Early detection of disease reduces the need for expensive, late-stage care. Limited screening resources must be targeted to individuals who are at increased risk of developing disease.
Our flagship test, BREVAGen plus ®, predicts a woman’s risk of developing breast cancer in the next 5 years. Even with no family history.
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More frequent
mammograms
Screening
MRIs
BREVAGen plus ®
allows providers
to target limited
Selective estrogen
resources to receptor modulators
Medication (SERMs)
Aromatase inhibitors
women who are
(Ais)
most likely to
develop breast
cancer.
Reduced alcohol
Lifestyle consumption
Weight loss
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Colon Cancer – Early Diagnosis
CRC is the 3rd leading cause of cancer-related deaths in the United States.
Most mortality cases are preventable through early detection and the removal of precancerous polyps.
Solving the Compliance Problem
The main challenge with colon cancer screening is compliance. Screening methods are often confronting and unpleasant.
The US National Cancer Institute estimates that lack of compliance may reduce the impact of screening on colon cancer mortality by as much as 50%. GTG’s simple, cheek-swab sample has the potential to improve compliance among those patients most at risk of developing CRC. When a patient understands their genetic risk profile, they are more willing to follow screening guidelines as recommended by their primary care physician.
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http://www.beseengetscreened.com/blog/colon-cancer-stages
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Additional screening tests are in development.
An enhanced breast cancer test is undergoing final validation. Our colon cancer test will be available early in 2019. Additional tests will be introduced soon after.
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1Q 2019
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3Q 2019
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1Q 2020
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Respected collaborators accelerate development and validate clinical use of our tests.
The University of Melbourne is Australia’s peak research university. Our collaboration with Professor John Hopper led to our NHMRC Grant. The National Health and Medical Research Council is Australia's peak funding body for medical research.
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Professor John Hopper
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PhD in Mathematical Statistics
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NHMRC Senior Principal Research Fellow
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Director (Research) of the Centre for Epidemiology and Biostatistics in the School of Population Global Health at The University of Melbourne
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Published more than 700 papers
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Most genetic tests on the market are limited to non-clinical applications.
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Consumers are willing to purchase genetic testing kits for genealogy, paternity and nutrition.
GTG is in a unique position to capitalize on this trend with first-to-market clinical applications.
MIT Technology Review - https://www.technologyreview.com/s/610233/2017-was-the-year-consumer-dna-testing-blew-up/
Global Opportunity – US and Australia
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GTG operates a CLIA-approved laboratory, providing clinically actionable test results to the US market.
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Through our US subsidiary Phenogen Sciences, more than 6,000 BREVAGenplus®, test kits have been sold into the clinical market over the past 5 years.
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More than 240,000 cases of breast cancer are diagnosed in the US every year.
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Colon cancer is the 3rd most common cancer in the US, with over 97,000 new cases diagnosed so far this year (American Cancer Society).
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Every year, more than 15,000 Australians are diagnosed with colon cancer.
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https://www.cancer.org/cancer/colon-rectal-cancer/about/key-statistics.html https://www.bowelcanceraustralia.org/latest-news/so-much-to-live-for-bowel-cancer-australia
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Global Opportunity - China
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GTG has been invited to enter the market in China through the Hainan Medical Pilot Zone.
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Opportunity to deliver large-scale population health initiatives that will dramatically increase the effectiveness of existing screening and treatment programs
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Over 4 million new cases of cancer are diagnosed in China each year.
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Heads of Agreement in place with Chinese in-country partner Beijing Zishan Health Consultancy Limited
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Chinese healthcare market is valued at more than $800 billion USD.
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Breast cancer in China is increasing at a rate of 3.5% per year.
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https://www.sciencedaily.com/releases/2017/07/170706071915.htm
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Part of the Hainan Free Trade Zone Initiative
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Bring together best-in-class medical care, physicians, treatments, technology, conferences and cutting-edge medical product development via a mix of government institutions, and local and foreign companies
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Allows foreign companies to safely introduce IP and repatriate profits
Through our partnership with Zishan Health, GTG has been invited to participate.
Hainan Medical Pilot Zone
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~~Chinese Central Government’s comprehensive~~ healthcare plan for 1.5 billion people
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Disease prevention is a means of controlling costs
Healthy China 2030
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Chinese government can enforce penalties for non-compliance with preventive healthcare protocols (i.e. travel or other personal restrictions)
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• GTG genetic tests can be used to predict an individual’s risk of developing disease.
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Screening and other healthcare resources can be directed to people most at risk.
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This allows for early intervention and less costly treatment.
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For example, screening every female for breast cancer may be too costly, but it may be costeffective to screen those with a mid-to-high 5-year risk score.
Zishan Health Consultancy
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Fast-track access to the Chinese Food and Drug Administration, an institution with long product review and approval times
Well-connected in the Chinese healthcare sector, including medical devices and diagnostics
Track record of successfully introducing non-Chinese companies into the Hainan Free Trade Zone
Structures in place for Chinese in-country sales and marketing, both in Hainan and other provinces
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Redirected funding to
Refreshed board for an Transitioned from direct
R&D to develop a pipeline
entrepreneurial focus and salesforce to an
of additional tests for
global expertise ecommerce platform
chronic disease
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Entered into key
partnerships for global
expansion
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While these initiatives impacted our ability to generate
short-term revenue, we eliminated the cost of an ineffective
sales force, focused on R&D and initiated the partnerships
that will secure our global future.
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2018: Aligning Structure with Strategy
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Join the Community of GTG Shareholders
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We recognise that a critical element of our success is the continued support of our shareholders. We appreciate their confidence in us during this period of intense R&D and realignment.
To support our continued execution of these initiatives over the course of the coming fiscal year, Kentgrove Capital Pty Ltd, a Melbourne-based investment management firm, has been engaged to assist in strengthening our funding position through an A$20m placement facility.
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Thank You
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Paul Kasian Chairman and CEO Email: [email protected] Web: www.gtgcorporate.com
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