Corporate Overview - htgmolecular.gcs-web.com
Transcript of Corporate Overview - htgmolecular.gcs-web.com
This presentation contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, contained in this presentation, including statements regarding the benefits and capabilities of our transcriptome panel and the timing of its commercial launch, possible companion diagnostic and HTG Molecular Diagnostics, Inc. (“HTG”) diagnostic products, potential addressable markets and the size of those markets, including new markets and opportunities expected as a result of our full transcriptome technology, HTG being well positioned in the emerging field of RNA therapeutics, our timeline strategy, planned product development and our product and technology roadmap, prospects, and plans and objectives are forward-looking statements. The words ‘‘anticipate,’’ ‘‘believe,’’ ‘‘estimate,’’ ‘‘expect,’’ ‘‘intend,’’ ‘‘may,’’ ‘‘plan,’’ ‘‘predict,’’ ‘‘project,’’ ‘‘target,’’ ‘‘potential,’’ ‘‘will,’’ ‘‘would,’’ ‘‘could,’’ ‘‘should,’’ ‘‘continue,’’ and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in forward-looking statements, including due to risks and uncertainties associated with the development and commercialization of products, competition with new and existing technologies, the outcome of relationships with third parties, the COVID-19 pandemic and other factors as discussed under the heading “Risk Factors” in our quarterly report on Form 10-Q for the quarter ended June 30, 2021, as filed with the Securities and Exchange Commission. The forward-looking statements contained in this presentation reflect our views with respect to future events as of the date set forth on the first page of this presentation, and we assume no obligation to update any forward-looking statements as a result of new information, future events or otherwise as of such date.
This presentation also contains estimates, projections and other information concerning our industry, our business, and the markets for our products, product candidates and services, as well as data regarding market research, estimates and forecasts prepared by our management. Information that is based on estimates, forecasts, projections, market research or similar methodologies is inherently subject to uncertainties and actual events or circumstances may differ materially from events and circumstances reflected in this information. These statements are based upon information available to us as of the date of the presentation, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain, and you are cautioned not to unduly rely upon these statements
Forward-looking Statements
P R O P R I E T A R Y A N D C O N F I D E N T I A L2
P R O P R I E T A R Y A N D C O N F I D E N T I A L3
HTG is accelerating precision medicine - from diagnosis to treatment - by harnessing the power of transcriptome-wide profiling to drive translational research, clinical diagnostics andtargeted therapeutics across a variety of disease areas.
Building on more than a decade of pioneering innovation and partnerships with biopharma leaders and major academic institutes, HTG’s proprietary RNA platform technologies are designed to make the development of life science tools and diagnostics more effective and efficient and to unlock a differentiated and disruptive approach to transformative drug discovery.
P R O P R I E T A R Y A N D C O N F I D E N T I A L4
H T G M O L E C U L A R H T G T H E R A P E U T I C S
P R E C I S I O N M E D I C I N E
RNAdiagnostic services/tools RNA-targeted small molecule
drug discovery
The Power of RNA and Gene Expression Profiling (GEP) in Precision Medicine
P R O P R I E T A R Y A N D C O N F I D E N T I A L5
RNA
Transcriptome
DNA Protein
Proteome
Making PrecisionMedicine More Precise
MH S V I D
Genome
RNA is what is happening Proteins are the working molecules …but are very difficult to multiplexDNA represents the blueprint
Mutations are a powerful element of precision medicine but many patients
do not have an actionable mutation
In many disease areas, DNA
mutations are not relevant to disease
Pathway and gene analysis are excellent
biomarkers to understand disease and mechanism of
action (MOA)
Transcript abundance is often superior to
protein analysis, and easier
to multiplex
Protein analysis represents the gold
standard of understanding what is happening biologically
Structure and multiplexing are two significant
barriers inhibiting protein analysis
What Differentiates HTG for RNA Analysis?
P R O P R I E T A R Y A N D C O N F I D E N T I A L6
Faster…easier…higher expected success rate…lower sample requirement
INCREASED SENSITIVITY SIMPLIFIED WORKFLOW CUTTING-EDGE PERFORMANCE
• 5-10x less starting sample required
• Compatible with both liquid andtissue samples
• Maintain effectiveness with degraded samples
• Avoids complex and biased RNA-seq workflow steps
• Turn-around time of 3 days vs.7 days or more
• Bioinformatics in <1 hour vs.4-8 hours or more
• Excellent concordance with RNASeqand synthetic RNA spike in controls
• High assay success rate and large dynamic range
• High-plex (up to 20K) panels, including whole transcriptome mRNA and miRNA panels
Core Business – Gene Expression Profiling (GEP) in Three Segments
P R O P R I E T A R Y A N D C O N F I D E N T I A L7
Proprietary technology platform for NGS RNA gene-expression profiling (GEP)serving the full precision medicine value-chain
TRANSLATIONAL PROFILING
NGS GEP publications have doubled to >10K annually over
the last 5 years, immuno-oncology is a major driver
DRUG DEVELOPMENT
Leading biopharma customers using RNA biomarkers to drive
development of potential targeted therapies
CLINICAL DIAGNOSTICS
MDx companies are conducting massively scaled NGS GEP for
new test R&D and major cancer centers are building LDT’s
Data analysisSequencingLibrary prep
EDGESeq Workflow
P R O P R I E T A R Y A N D C O N F I D E N T I A L8
Low Sample Input No RNA / DNA Extraction Simplified Sequencing and Bioinformatics
Sequencer AgnosticIllumina
Thermo Fisher Scientific
HTG Reveal Data Analysis Suite
Sample prep
Patented andProprietary Chemistry
Core Business – RNA GEP Market Remains Large and Fast Growing
P R O P R I E T A R Y A N D C O N F I D E N T I A L9
2015 2020 2025F
CAGR in GEP tools supplier market15%
$0.5B
$1.0B
$2.0BMARKET SIZE
Source - DeciBio
Core Business – Seeing Recovery in Key Metrics
P R O P R I E T A R Y A N D C O N F I D E N T I A L10
2019 2020 YTD Q1 Q2 Q3 Q4 Q1 Q2
$2.0M$1.7M $1.7M
$2.5M
$1.4M
$2.1M
2020 2021
REVENUE
88
44
63
PHARMA PROGRAMS
Revenue is direct revenue from products and product related services
Momentum in Publications Referencing EdgeSeq
P R O P R I E T A R Y A N D C O N F I D E N T I A L11
2015 2016 2017 2018 2019 2020 2021
CUMULATIVE
2046
88
131
182
266
318
P R O P R I E T A R Y A N D C O N F I D E N T I A L12
Provides the mRNA transcriptome with the same value proposition as previous EdgeSeq targeted panels
• Smaller sample load• High success rate with FFPE• Simpler workflow• Faster turnaround time• Easy bioinformatics
Helping to enable the next round of growth
HTG’s new human mRNA transcriptome product, approximately 20,000 genes
P R O P R I E T A R Y A N D C O N F I D E N T I A L13
HTG Transcriptome Panel (HTP) White Papers
White paper # 1(November 2020) demonstrated equivalency to RNASeq
White paper # 2(February 2021) demonstrated superiority to RNASeq
White paper # 3(August 2021) demonstrated final assay configuration superiority to RNASeqand data integration into REVEAL software
ASSAY PASS RATE AND SAMPLE REQUIREMENTS vs RNASeq
P R O P R I E T A R Y A N D C O N F I D E N T I A L14
Technical Highlights – HTP System Performance
* Only 1 sample required 2 sections** RNA-Seq samples failed to generate sufficient extracted RNA to process samples.
HTG works with smaller samples, is less sensitive to sample age, has a faster turnaround timeand has a higher sample success rate than RNASeq
Comparison of HTG and RNA-Seq Platforms
HTG Panel RNA-Seq
Number of FFPE Slides Used 1-2 * 4-8
Sample Type Used FFPE(extraction-free)
FFPE(extracted RNA)
Overall Pass Rate 100% (24/24) 75% (18/24) **
Pass Rate for Samples Older than 10 years 100% (13/13) 63% (7/11)
Turn-Around Time 3 days 7 days
Sample Information
Cancer indication
Age of FFPE Block
Number of Blocks
Met RNA-Seq Input Requirement
Breast<5 years 2 2/2
>10 years 2 2/2
Prostate<5 years 2 2/2
>10 years 2 0/2
Lung<5 years 3 2/3
>10 years 2 0/2
Colorectal<5 years 3 3/3
>10 years 3 3/3
Melanoma<5 years 3 2/3
>10 years 2 2/2
HTG SHOWS HIGH ACCURACY vs SPIKED IN CONTROLS AND IS CONCORDANT WITH RNASeq
15
Technical Highlights – HTP Accuracy
Comparison of differential expression analysis results between the HTG panel and RNA-Seq for a representative set of breast and colorectal cancer FFPE samples. Log fold change values for RNA-Seq are plotted on the y-axis and log fold change values for the HTG panel are plotted on the x-axis. Blue dotted line is the unity line
Assay linearity and dynamic range using spiked-in ERCC transcripts. The predicted amount of log2 ERCC spike-in (X-axis) were correlated with the log2 transformed signal generated by the ERCC transcripts (Y-axis). Pearson correlation coefficients are in the upper left-hand corner of each plot.
Revenue Q2 Actual
$190K
HTP Commercialization Update
P R O P R I E T A R Y A N D C O N F I D E N T I A L16
EARLY ADOPTER PROGRAM
EAP Agreements• 18 fully signed (7 US / 11 EU)
• 28 in negotiation (11 US / 17 EU)
Project Status• 7 SOW complete – in process in Tucson
• 5 kits shipped – in process @ Customer
• 6 pending final SOW completed
MARKETING UPDATE
CompletedInitial Mailing Campaign
PlannedMultiple Targeted Campaigns
Banner Ads inGenomeWeb, LabRoots & GEN
Market Opportunities
P R O P R I E T A R Y A N D C O N F I D E N T I A L17
MAJOR DXCONTENT PROVIDERS*
MAJOR CANCER CENTERSIN THE US AND EUROPE
72 NCI centers in the US
42 OECI centers in Europe
Source – Cancer.gov, OECI.eu
* Examples of potential customers
FINANCING
PROPRIETARY TECHNOLOGY
CUSTOMERS/DISTRIBUTION
A Decade of Innovation at HTG
P R O P R I E T A R Y A N D C O N F I D E N T I A L18
2021201920172015<2013
JULY 2021
Drug Discovery Business
Unit Created
Whole transcriptome mRNA panel
EpiEdge Seq feasibility
Immuneresponse panel
MousemRNA panel
Immunooncology panel
Pan B-cell lymphoma
panel
Whole transcriptome miRNA panel
U.S. PatentNo. 8,741,564 -
June 3, 2014
Oncologybiomarker
panel
PDP 1 agreement
PDP 3agreement
Merck KGaACDx agreement
QIAGEN PDPCDx agreement
PDP 2agreement
QIAGENdistribution agreement
IPO Follow on financing
2nd follow on financing
DLBCL COO panel
RNA profiling:
Advanced MedicinalChemistry Platform
mRNA Transcriptome Epitranscriptome Novel RNA
Drug Discovery and Development Platform
Novel Drug Discovery, a Natural Extension of Our Business
P R O P R I E T A R Y A N D C O N F I D E N T I A L19
Leveragingour heritage
Adding new technology platforms
Enabling a powerful new capability
Targeted RNAtranscriptomic profiling:
RNA Opens Up Huge New Universe of Drug Targets
P R O P R I E T A R Y A N D C O N F I D E N T I A L20
TODAY’S PROTEIN PARADIGM(After 100 years of drug discovery)
POTENTIAL WITH RNA
~70%Non-coding
Non-diseaserelated 1.5%
~30%
Nature Reviews, August 2018
Could bedruggableas mRNA
Proteins(1.5%)
20x increase in new targets
~20,000coding genes
~1,000targeted by existing drugs
HumanGenome(100%)
48%
25%
21%
3% 3%
Two Big Problems in Clinical Development Persist: Efficacy & Safety
P R O P R I E T A R Y A N D C O N F I D E N T I A L21
55%
14%
14%
7%
10%• <12% of drugs entering clinical trials succeed*
• Approx $985M per drug approved*
* pharma.org
… we plan to improve on both.
REASON FOR FAILURE
PHASE
IIPHASE
III
69%73%
EfficacySafetyStrategyOperationalCommercial
OUR SOLUTION
The Value of Early Pre-clinical Insight
P R O P R I E T A R Y A N D C O N F I D E N T I A L22
Used too latein process
ClinicalTranscriptomic
profiling
Few levers:• Dosing• Post-facto patient selection
TODAY
Use early,during small moleculediscovery and design
PreclinicalFull system
transcriptomicprofiling
Medicinalchemistry
Many levers:• MOA / biology• Which patients respond → patient selection• Which pathways are activated → off-target effects
OPPORTUNITY
P R O P R I E T A R Y A N D C O N F I D E N T I A L23
Literature concurs that integrating big data expression profiling can improve therapeutic candidates
Early and often transcriptome profiling can disrupt drug development
Innovative Proprietary Technology
HTG Epi-EdgeSeq
Epitranscriptome
mRNA transcriptome
miRNA transcriptome
EdgeSeq
Assembling A Drug Discovery and CDx Powerhouse
P R O P R I E T A R Y A N D C O N F I D E N T I A L24
Nervous System Disease Cardiovascular
Diabetes
Liver Disease ImmunoOncology
Rare Disease
Infectious DiseaseImmunology
Genetic Disease Metabolic Disease
Disease state agnostic:
Precision Therapeutics
Patented Molecules
CompanionDiagnostics
and
HTG InformaticsInformatics
HTG ChemistryMachine learning
driven small molecule chemistry
Chemistry Platform
IP Strategy
P R O P R I E T A R Y A N D C O N F I D E N T I A L25
Epi-Transcriptome
miRNATranscriptome
mRNA Transcriptome
Our Comprehensive RNA ProfilingPlatform Technology
Enablingsimultaneous mRNA, miRNA and RNAmodification analysis
NEW
NEW
Ability to generate
~42,000data points from every
sample
Not All Transcriptome Profiling is Created Equal
P R O P R I E T A R Y A N D C O N F I D E N T I A L26
Generic Technology
OTHERS
Proprietary Technology
Powerful chemistry that uses less sample, is more robust and
is easier to use
Powerful technology but requiresa lot of very pure RNA and a
sophisticated workflow
ADVANTAGES
Large sample quantities required Increased Sensitivity 5-10x less starting sample required
1-2 week turnaround if a biostatistician is on-site Simplified Workflow 3 day turnaround
63%-75% assay success rate Cutting Edge Performance 96%+ assay success rate*
EdgeSeqTraditional RNA-Seq
*Source – Actual HTG internal service lab performance
Multiple Target Strategies for Drug Discovery Differentiates Us
P R O P R I E T A R Y A N D C O N F I D E N T I A L27
Target Agnostic ApproachRMP* Target Focused Approach
EdgeSeq –RMP panel informs efficacy• Potential for patient
stratification
• Abundance of transcriptome mods
RNA Target Focused Approach
EdgeSeq –on/off target profiles
EdgeSeq Published• Transcripts• Modifications
Preferred Profile Signatures• Tumorigenesis• Fibrosis• Neurodegeneration• Rare disease• Other
Proprietary
*RMP = RNA Modifying Proteins
THE PLATFORM THE BENEFITS
P R O P R I E T A R Y A N D C O N F I D E N T I A L28
Advanced Medicinal Chemistry, Powered by Machine Learning
Predictive Models to Accelerate Process
Multiple paths to design a multi-parameter optimization approach that maximizes the
probabilityof success.
Innovative Chemical Library Design
Advances in Chemical Space creation make it possible to
create novel compounds that can form the same types of
interactions with known RNA binding small molecules.
Data Driven Approachto Optimization
Analyzing historical data to optimize and update relevant
parameters creates an iterative approach to the entire process.
Streamlining DiscoveryThen Now
Rapid:Days – weeks
LibraryDesign
Lengthy:Months – years
Targeted:~150
compounds
#Compounds
Chaotic:~500,000
compounds
Easierto screen
and iterate
Harderto screen
and iterate
HTG Positioned for High Value-add throughout The Process
P R O P R I E T A R Y A N D C O N F I D E N T I A L29
DRUG DISCOVERY CDx DEVELOPMENT
NIH / Academia
profiling tools
Iterative Process
Potential royalties and
milestones or asset sale
Development candidate
out licensed or soldby HTG
CDx Development
TargetDiscovery Validation Library
DesignCell-basedScreening Hit to Lead
1 2 3 4 5Pre-IND Phase 1 Phase 2 Phase 3 Launch
1 2 3 4 5
Potential CDxrevenues
Approval
profiling tools
• Analyze disease vs normal with mRNA, miRNA, m6A and other modifications.
• Map disease states
• Identify potential targets
• Knock on/knock off
• CRISPR
• Target validation
• Profiling
• Pharmacophore, structure and ligand based structures
• Binding site assessments
• In silico screening
• Targets are screened with targeted libraries to identify hits
• Transcriptomic profiling to assess efficacy (return to normal) and tox and other off target effects
• Structure optimization
• Continued transcriptomic profiling to optimize efficacy
Target Discovery Validation Library Design Cell-based Screening Hit to Lead
1 2 3 4 5
HTG Drug Discovery Process – A Deeper Dive
P R O P R I E T A R Y A N D C O N F I D E N T I A L30
HTG Iterative Process
Developmentcandidate
HTG Iterative Process
HTG CDx Process – A Deeper Dive
P R O P R I E T A R Y A N D C O N F I D E N T I A L31
• Analyze disease vs normal with mRNA, miRNA, m6A and other modifications.
• Confirm mechanism
• Screen for off target and toxicity
• Using EdgeSeq profiling platform identify responder/non responders of patients via pathway analysis and sub-typing
• Confirm sub-type and/or pathway response and confirm biomarker strategy to accelerate drug development and registration
• Build IUO CDx
• Expand sub-types and indications to maximize market potential
• Expand CDx label
• Initiate commercialization seeking 1st line approval based on superior efficacy and lower toxicity
Pre-IND Phase 1 Phase 2 Phase 3 Launch
1 2 3 4 5
Approval
ONCOLOGY CLINICAL TRIALS LEVERAGING GEP REVENUE OPPORTUNITY FOR A CDx
P R O P R I E T A R Y A N D C O N F I D E N T I A L32
Significant Opportunity for Companion Diagnostics
Approved CDx
One front line CDx in a100k incidence rate cancer represents a potential$30M/yr revenue opportunity(assuming $300/test AUP)
3.1K
9%
2014
13%
2015
10% 15%
2016 2017 2019
18%
2018
20%
2.4K2.7K 2.9K
3.3K 3.4K 7%
3%
CAGROther oncology trials
Trials leveraging GEP*
Notes: * Only oncology (hematological and solid tumors) interventional trials measuring at least one drug (devices and surgery excluded), all sponsor types, with and without RNA / Gene expression biomarkersSource: Amplion; Contract Consultants
25%
Only ~50% of patients typically have actionable DNA mutation
Disease Area Drug ProgramRNA Targeted
MechanismTarget
DiscoveryTarget
Identification
Machine Learning Library
ConstructionCell Based Screening
Hit to Lead /Lead
Optimization
Oncology
Target 1 RMP
Target 2 RMP
Target 3 RMP
Target 4 Transcript Stability
Target 5 Multiple
Auto Immune Target 1 RMP
CNS Target 1 TBD
Rare Disease Target 1 TBD
Drug Discovery Pipeline
P R O P R I E T A R Y A N D C O N F I D E N T I A L33
Potential for 1st licensable
pre-INDasset by early
2023
In-license/public libraries
HTG CRO HTGSTRATEGY:
CHEM
ISTR
Y PL
ATFO
RM
Advanced
Classical
IntegratedGeneric
Differentiated from Traditional and Disruptive Competitors
P R O P R I E T A R Y A N D C O N F I D E N T I A L34
TARG
ET S
TRAT
EGIE
S
Novel
Validated
IntegratedGeneric
TRANSCRIPTOMIC PROFILING TECHNOLOGY TRANSCRIPTOMIC PROFILING TECHNOLOGY
TRADITIONAL RNA LANDSCAPE DISRUPTOR LANDSCAPE
Proven Team with Rich, Relevant Expertise
P R O P R I E T A R Y A N D C O N F I D E N T I A L35
Steve BaratSVP of Therapeutics
Marian NavratilSVP Research andDevelopment
Todd HuffmanVP of Strategy
Carl KaubVP of Chemistry
Des RaittVP of Business Development
Debra ThompsonPrincipal, Scientific Innovation
EXPERTISE
RNA profiling
Medicinal chemistry
Molecule design
Target /pipeline strategy
Licensing strategy
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S6THERAPEUTICS
P R O P R I E T A R Y A N D C O N F I D E N T I A L36
THERAPEUTICS
Deep expertise in RNA translational profiling• To understand mechanism of disease
Ability to unlock massive drug discovery potential• 20x increase in druggable targets
Disrupting the paradigm by moving earlier in the process• Improving efficacy/safety; reducing current 90% clinical failure
Highly differentiated in RNA drug discovery space• Comprehensive proprietary profiling and medicinal chemistry
Capturing significant value-add potential and control• Evolution from service provider to service provider and drug discovery / CDx developer
Summary
P R O P R I E T A R Y A N D C O N F I D E N T I A L37
H T G M O L E C U L A R
Life science tools and diagnostics based on proprietary transcriptomic
technologies and informatics
H T G T H E R A P E U T I C S
Therapeutic discovery integrating transcriptomic profiling and machine learning guided library construction
Leading transcriptomics company developing profiling diagnostics andnovel drug candidates to determine the right therapy for the right patient