Personalized Medicine “Disruptive Technology?”

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Transcript of Personalized Medicine “Disruptive Technology?”

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Personalized Medicine“Disruptive Technology?”

David LoganSenior Vice President, Commercial Genomic Health Inc

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Safe Harbor Statement

This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements related to future periods, can be identified by words such as “believes,” “anticipates,” “plans,” “expects,” “will,” “intends” and similar expressions, and may include our future plans and prospects and our product pipeline. Forward-looking statements are subject to risks and uncertainties which may cause actual results to differ materially. For a discussion of the factors that may cause our results to differ, please refer to our filings with the Securities and Exchange Commission, including our [Annual Report on Form 10-K for the year ended December 31, 2008] [Quarterly Report on Form 10-Q for the quarter ended March 31, 2009]. These forward-looking statements speak only as of the date hereof. Genomic Health disclaims any obligation to update these forward-looking statements.

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What is Personalized Medicine?

“Personalized medicine…is when disease happens to you!”

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Focused on Fundamentals…Proving the Value of Personalized Medicine

Leader in genomic

analysis of tumor biopsies

TurningValue

into Profit

Improve the quality of treatment

decisions for patients with cancer

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Personalized Medicine Moves to Center of Global Healthcare Solution

“We spend far more on treating illnesses that could have been managed for far less.”

– President Barack Obama

Personalized Medicine

Economy in Crisis

Economy in Crisis

Healthcare Spending

Soaring

Healthcare Spending

SoaringHealthcare

Reform Healthcare

Reform

TechnologyAccelerating

TechnologyAccelerating

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Sequencing the Genome was Just the Beginning of an Information Wave…

Information

DNA

Complexity

TheGeneticCode

PathwaysProteinRNA

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22 24 26 28 30 32 34 36 38 40Cycle Threshold (CT)

123 456 789 101112 131415 161718 192021 222324 252627 282930 313233 343536 373839 404142 434445 464748 495051 525354 555657 585960 616263 646566 676869 707172 737475 767778 798081 828384 858687 888990 919293 949596 979899 100101102 103104105 106107108 109110111 112113114 115116117 118119120 121122123 124125126 127128129 130131132 133134135 136137138 139140141 142143144 145146147 148149150 151152153 154155156 157158159 160161162 163164165 166167168 169170171 172173174 175176177 178179180 181182183 184185186 187188189 190191192

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= Personalized Medicine

Moore’s LawTechnology is

miniaturizing -- cost per gene analyzed is down

and increasing information is available

Metcalfe’s LawThe utility of genomic

information is accelerating as researchers, patients and physicians begin to

network

Finite BiologyNumber of genes involved in disease are finite… and the time required to fit the

pieces into a finite puzzle is decreasing rapidly

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Genomics today is tracking like the computer industry in the 1970s -- at the beginning of a consumer revolution...

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• Chemotherapy benefit is modest in the adjuvant setting (~4%)*

• Oncotype DX®

- predicts the likelihood of breast cancer recurrence in women with newly diagnosed, early stage invasive breast cancer - assesses the likely benefit from both hormonal therapy and chemotherapy

• Independent studies verify that Oncotype DX® use impacts treatment decisions

• Genomic information is shifting the treatment paradigm for breast cancer…

The Oncotype DX® Breast Cancer Assay Addresses Critical Clinical Question for Non-Metastatic Patients

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*Lancet 1996 Apr 20;347(9008):1066-71

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The Oncotype DX® Recurrence Score is a Continuous Predictor of Recurrence Risk

Dotted lines represent 95% CI

Dis

tant

Rec

urre

nce

at 1

0 Ye

ars

What is the 10-year probability of distant recurrence for a patient with a Recurrence Score of 30?

Recurrence Score

RS 30 = 20% risk of

distant recurrence at 10 years

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Oncotype DX® Breast Cancer Assay

• Oncotype DX® provides valuable information on:– Clinical prognosis– Predicted chemo benefit– Quantitative data on

ER / PR / HER2– Node positive patients

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Annual Oncotype DX® Worldwide Test Results Delivered

Key Milestones

• NSABP B14 Publication

• NSABP B20 Presentation

• Kaiser Presentation

• Medicare Coverage• NSABP B20, Kaiser

Publications

• Aetna, United, Cigna Coverage

• ASCO and NCCN Guidelines

• SWOG 8814 Presentation

• HER2, ER and PR Scores• Node + Report• Aromatase Inhibitors• 95% U.S. Coverage

Rapidly Growing Adoption

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14,500

24,500

7,000

500

39,600

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

2004 2005 2006 2007 2008

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Investment in Delivering World Class Service

SARPCRM

SARPCRMGEMTools (LIMS)

Material Manager

Data Services

OnBase EDI Services

Online Portal

EDI Services

Online Portal

Material Manager

HARP

PAS

Result GenerationService

Report DeliveryElectronic Claim

ORDER ENTRY INTAKE PATHOLOGY ANALYTICAL

LABORATORYREPORTS

FULFILLMENTMATERIAL RETURN

Order Entry

Insurance Provider

Benefits Investigation

Patient Information Retrieval

SpecimenRetrieval

SpecimenAccessioning

Pathology Review

Histopathology

Extraction

Quantitation

gDNA Detection

Reverse Transcription

Results Generation

Billing

Report Delivery

MaterialsReturn

Reimbursement

Online, Fax FedEx

QPCR

Fax PhoneFax

Request FedEx FedEx

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Online

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• Rapid growth in Oncotype DX® Breast adoption and revenue• >100,000 tests delivered• >8,000 Physicians have used Oncotype DX®

• Recommended in ASCO and NCCN clinical guidelines • >95% of U.S. insured lives covered by payors (BCBS Tec Approved)• Expanded utility of Oncotype DX®

– Node positive patients– ER, PR and HER2 single scores – Aromatase inhibitor-treated patients

• Over 4,000 patients in 13 clinical trials with validation studies conducted in the US, EU, and Japan.

• Breast Cancer tissues samples received from 40 countries

Genomic Health Accomplishments are Contributing to a New Standard of Care in Cancer Diagnosis and

Treatment Planning

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Long Road to Standard of Care

• We believe well designed clinical trials resulting in published (Peer Reviewed) meeting the needs of the patient, providers and payors will lead to Standard of Care

Clinical Validation

Reimburse

ment

Physician Adoptio

n

Publications

Guidelin

es

Stan

dard

of

Care

KOL’S / Advocates

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Bringing Personalized Medicine to the Forefront for Breast Cancer Patients…. Obstacles?

• Adoption driven by the Peer Review publications and accelerated with ASCO and NCCN guidelines

• Reimbursement acceptance ( 95% coverage for Node Negative, ER+ Breast Cancer) driven by Payor Tec Assessments.– Analytical Validity– Clinical Validity: “Prospective” vs. “Prospective End Points”– Clinical Utility and Actionability– Comparative Utility – Pathway to the Market for IVD/MIA tests – CLIA vs. the FDA– Billing and Coding – CPT codes vs. MISC and “S” Codes– Pharmacoeconomics - “Value Pricing” – Cost Effective or even Cost

Savings?

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Disruptive?

• Changing established Medical Oncology treatment patterns• Managing the impact of Provider revenue disruptions• Pathologists understanding of how Oncotype DX® fits into their

space?– Competing or Complementing? – Kits vs. Centralized Lab?– Tissue access, selection, ownership, and control– Turn Around Time for results and Time to Block return– Medicare Date of Service Rule for “Archival Specimens,” who is

responsible for billing?– Lab and Hospital Services facilitate “send outs” without compensation

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CAP 2008: Call to Action

• transFORMation of the specialty of pathology– “Understand that your value is beyond diagnosis & also should

center on influencing prevention, prognosis & treatment” - Dr. Jared Schwartz, President of CAP

• Oncotype DX® is a important piece of the puzzle that will assist providers and patients in making treatment decisions. It is not the whole puzzle.

• Pathologists play a critical role in completing the puzzle.– Continue to embrace personalize medicine– Be a source of expert on available clinically valid tests– Serve as interpreter & consolidator of results– Help guide & educate multidisciplinary breast oncology teams– Work with reference labs to streamline process– Insure appropriate payment for your services

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Collaboration

To facilitate a collaborative effort, Genomic Health provides:• Knowledge to assist in the patient treatment decision:

– We have 15 Physicians (11 Pathologist) interfacing on a regular basis with Pathologist, Surgeons and Medical Oncologist

– Our Pathologist use the Aperio digital pathology system

• Supporting the process and the patient: – Customer Service (65)– Reimbursement Support Services (90)– Field Genomic Liaisons (80) – Hospital contracting group (14)– Peer to Peer CME education support for Pathologist /Lab staff

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Collaboration

In the Future we are looking at:– Continuing to add value to Oncotype DX®

– Stronger collaboration with Pathologist and Labs • Miniaturization and/or Kits?• Streamlining: Treatment Pathways and EMR• Partnerships, research and commercial - Publications• More efficient ways to reimburse you for “your” services

– Ways to implement the Aperio system with our customers to improve the quality of our assay and result

– Continued work on billing and coding for “value”– Working with Hospitals, Societies, Advocates, CMS and Washington

to address the DOS or 14 day rule– Continued work with Pathologists, Lab associations and Trade

groups to provide input to the FDA and CLIA on the commercial pathways for IVD/MIA’s

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Node-Positive Breast Cancer

Aromatase Inhibitors (ongoing)

Anthracycline Chemotherapy

Benefit

Quantitative Single Gene Reporting

Tamoxifen Benefit

Oncotype DX®

N-, ER+ Breast Cancer Recurrence

Future Directions in Breast Cancer

CMF Chemotherapy Benefit

TaxaneResponse ER-Negative

Breast CancerOther Targeted

TherapiesTAILORx

Trial Results

DCIS

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Growing Product Pipeline 2009 - 2010

1MattsonJack DaVinci ©2004, 2007; 2Globocan 2002/ACS Cancer Facts & Figures, 2008.

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Vilma M.Oncotype DX Patient

Thank You!

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